Tronox Holdings plc · NYSE:TROX
Tronox — Lehman Brothers Small Cap Conference 2006
17 slides from Tronox's conference presentation, Nov 16, 2006
Slide 1: Lehman Brothers Small Cap Conference
TRONOX Lehman Brothers Small Cap Conference November 16, 2006 Tom Adams Chairman and CEO
Slide 2: Forward Looking Statement
Forward Looking Statement Tronox makes certain forward-looking statements in this presentation that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management and on information currently available to our management at the time of such stateme
Slide 3: Business Overview
Business Overview TiO2 Pigment Tronox Evolution TiO2 Market Review 5,500 5,500 5,250 5,000 Supply and demand 4,500 4,750 4,500 4,250 Macro-economic situation 4,000 3,750 Metric Tonnes (000's) 3,500 3,500 Hurricane impact 3,250 3,000 2,750 2,500 2,500 2,250 Balance 2,000 Tronox Global Operations 1,50
Slide 4: TiO2 Pigment
TiO2 Pigment Quality-of-life product used daily No effective substitutes Differentiated and frequently customized 2005 Global TiO2 Demand by End-Use Market Diverse Portfolio of End-Use Opportunities Plastics Differentiated Products Specialty Products Formulation based Customized 20% 20% Selective ma
Slide 5: Global Producer with Strong Market Leadership Position
Global Producer with Strong Market Leadership Position Highly concentrated industry with top five producers accounting for approximately 70% of global production #3 global producer; #2 using higher-growth chloride-process technology Leading supplier to global customers in multiple regions of the wor
Slide 6: Tronox Stand-Alone Focus
Tronox Stand-Alone Focus KM Chemical Tronox Little or no focus on cash Focus on cash Volume oriented Market segmentation Grow through acquisition Extract more from Lack of capital discipline existing assets Hold on to stranded Capital discipline assets Monetize stranded assets 6
Slide 7: TiO2 Supply / Demand
TiO2 Supply / Demand TiO2 Supply / Demand (M Tonnes) 5,500 5,500 5,250 5,000 Supply / Demand is Tight 4,750 4,500 4,500 2006 Will be the Lowest Supply to 4,250 Demand Ratio in Two Decades 4,000 3,750 Metric Tonnes (000's) 3,500 3,500 Capacity Rationalization of 218 MT 3,250 or 11% of Sulfate Capacit
Slide 8: TiO2 pounds per capita
TiO2 pounds per capita G U e 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 ni r m te a d ny St a C tes an ad Fr a an ce It a l Sp y a K Ta i n o U r e iwa ni a te , S n d o K ut in h gd A om us TiO2 Consumption t M rali al a ay s Po i a l T h a nd ai la n Tu d rk e B y ra M zil C ex ze i c
Slide 9: Current Macro-Economic Situation − GDP
Current Macro-Economic Situation − GDP Regional Health Gauge (major country proxy) North America 2005 2006 2007 Inflation risks Lukewarm job creation and waning Actual Forecast Forecast housing market Declining energy prices buoy future prospects 3.2% 3.3% 2.6% United States United States Europe Gro
Slide 10: Industry Inventory Position
Industry Inventory Position 15 Hurricane Katrina Impact Hurricane Days Inventory vs. Seasonal Norm High 10 Highinventories inventories impact Rapid decline in Q4 2005 and Q1 2006 5 High operating rates and restart of hurricane impacted 0 facilities increased inventories (5) Strong global demand Low
Slide 11: Global TiO2 Manufacturing Operations
Global TiO2 Manufacturing Operations Strategically located plants effectively serve global markets Experienced operational management and plant-level leadership Nameplate Capacity (1) Location M Tonnes Botlek, Hamilton 225 Netherlands Savannah 110 Kwinana 110 Hamilton, Botlek 72 MS Uerdingen (sulfat
Slide 12: Integrated Western Australia Operations
Integrated Western Australia Operations 12
Slide 13: Project Cornerstone Execution
Project Cornerstone Execution Status Summary $60 Cash CashCost CostReductions Reductions SG&A Teams on track or ahead of $45 Op Costs schedule $M M $MM Savings YTD + Forecast Remain committed to target $30 attainment $15 Beginning to realize benefits in the bottom-line $- 2006 2007 2008 Inventory, I
Slide 14: Case Study: Caustic Consumption
Case Study: Caustic Consumption Approach: Hamilton Plant Formed Cross-Sectional Caustic Consumption Employee Team 2005 2006 Identified top consumers Determined theoretical vs. actual usage Caustic / MT Developed equipment design and operating procedure strategies Educated operational teams Status 9
Slide 15: Legacy Sites Financial Summary ($MM)
Legacy Sites Financial Summary ($MM) Historical Cash Spend $150 $100 $50 $0 -$50 -$100 2001 2002 2003 2004 2005 2006E Total Spend (1) $137 $121 $98 $85 $61 Reimbursements (11) (10) (15) (50) (71) Net Pretax Spend $126 $111 $83 $35 ($10) $20-25 Estimate (1) Estimates are based on 9/30/06 reserve bala
Slide 16: Our Focus
Our Focus Move Tronox to Top-Quartile Performance Project Cornerstone Focus on Growth 3% per year Future brownfield to service high-growth Asian market Reduce Debt to Cap Target = 35% - 40% Land sales Excess free cash flow Evaluate External Opportunities Vertical and horizontal 16
Slide 17: TRONOX
TRONOX Lehman Brothers Small Cap Conference November 16, 2006 Tom Adams Chairman and CEO