Venator Materials Plc · OTC:VNTRF
Venator Materials — Q4 2018 Earnings Presentation
15 slides from Venator Materials's earnings presentation, Feb 20, 2019
Slide 1: Fourth Quarter and Full Year 2018 Results Presentation
Fourth Quarter and Full Year 2018 Results Presentation February 20, 2019
Slide 2: General Disclosure
General Disclosure This presentation includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning our pla
Slide 3: Fourth Quarter and Full Year 2018 Highlights
Fourth Quarter and Full Year 2018 Highlights Financial summary 4Q18 and Comparatives Full Year $ in millions, except per share amounts 4Q18 4Q17 3Q18 2018 2017 Revenues 484 528 533 2,265 2,209 Net (loss) income attributable to Venator (69) 68 (368) (163) 134 Adjusted EBITDA(1) 45 118 77 436 395 Dilu
Slide 4: Titanium Dioxide
Titanium Dioxide Softer volumes weigh on profitability Revenues Adjusted EBITDA $ in millions $ in millions 165 160 155 150 500 145 140 135 130 $119 $23 $387 $389 125 400 $366 120 115 110 105 100 $33 95 90 22% $75 300 85 80 75 70 65 60 31% 200 55 $52 50 45 19% 40 35 30 14% 100 25 20 15 10 5 0 0 4Q18
Slide 5: Performance Additives
Performance Additives Results impacted by destocking and customer shifts Revenues Adjusted EBITDA $ in210 millions $ in millions 205 200 195 190 185 180 16 $15 175 170 15 165 160 $144 14 155 150 $141 13 $12 145 140 135 130 $118 12 125 120 11 115 110 10 105 100 9 11% 95 90 8 85 80 7 75 8% 70 65 6 60
Slide 6: Delivery on Business Improvement Programs
Delivery on Business Improvement Programs Expect to deliver an additional ~$40mm annual EBITDA benefit 2017 Business Improvement Program 2019 Business Improvement Program $ in millions $ in millions ~$35 $52 $47 $41 $34 $24 ~$10 $12 $3 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2019 2020 2017 Program Highli
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Fourth Quarter 2018 4Q17 / 4Q18 $ in millions $118 $(24) $2 $(37) $(33) $5 $45 $14 (1) 4Q17 Adjusted Price/Mix Volume COGS Business Pori SGA/Other 4Q18 Adjusted EBITDA Improvement EBITDA Program 3Q18 / 4Q18 $ in millions $77 $(12) $(16) $(4) $45 3Q18 Adjusted EBITDA Price/Mix
Slide 8: Financial Profile
Financial Profile Attractive financial position $ in millions Net Debt Tax Rate Comment $497 $583 15-20% Liquidity of $424mm as of December 31, 2018 $(165) $(251) – $165mm of cash 10-15% – $259mm available of ABL borrowing base 15-20% 13% – Taking steps to increase liquidity 1.3x(1) 1.0x(1) 11%
Slide 9: Cash Uses
Cash Uses $ in millions Cash Uses 2018 2019E Comment Adjusted EBITDA $436 On-track with total combined project wind- down and estimated closure costs associated with Pori Capital expenditures(1) (114) ~(130) Cash interest (46) (40)-(45) Focused on transferring core specialty technology from Pori
Slide 10: Summary
Summary Fourth Quarter Headlines TiO2 selling prices in Europe and Asia impacted by a convergence of global pricing TiO2 volumes impacted by customer destocking although the pace decelerated in the quarter Captured $5 million of incremental EBITDA benefit from the 2017 Business Improvement Pro
Slide 11: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Income/(Loss) $ (162) $ (352) $ (77) $ 144 $ (157) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) Net income of discontinued operations – (10) (8) (8) – Interest 2 30 44 40
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) Per EBITDA Benefit(2) Net Income (Loss) Share(1) Three months ended Three months ended Three months ended Three months ended December 31, December 31, December 31, December 31, (In millions, except per shar
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (2) EBITDA (Expense) Benefit Net Income (Loss) (Loss) Per Share(1) Three months ended Three months ended Three months ended Three months ended September 30, September 30, September 30, September 30, (In millions, except per
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) Per EBITDA Benefit(2) Net Income (Loss) Share(1) Twelve months ended Twelve months ended Twelve months ended Twelve months ended December 31, December 31, December 31, December 31, (In millions, except per
Slide 15: Explanatory Notes
Explanatory Notes (1) Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax (benefit) from continuing operations, depreciation and amortization, and net income attributable to non-controlling interests