Tronox Holdings Plc · NYSE:TROX

Tronox — Q3 2019 Earnings Presentation

20 slides from Tronox's earnings presentation, Nov 8, 2019

  1. Slide 1: Third Quarter 2019 Conference Call

    Third Quarter 2019 Conference Call November 8, 2019 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

  2. Slide 2: Safe Harbor Statement and Non-U.S. GAAP Financial Terms

    Safe Harbor Statement and Non-U.S. GAAP Financial Terms Cautionary Statement about Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking

  3. Slide 3: Third Quarter 2019 Highlights

    Third Quarter 2019 Highlights Pro Forma Summary Financials Q3 2019 • Strong execution on the many operating and Revenue $ 768 commercial initiatives that are within our control • Delivered total synergies of $45 million through Net Income from Continuing Operations $ 26 September 30, 2019 EPS $ 0.13

  4. Slide 4: Actions Taken Have Delivered $45 million of Synergies YTD

    Actions Taken Have Delivered $45 million of Synergies YTD Total Synergies USD millions EBITDA Synergies Achieved & Reflected in P&L YTD EBITDA Synergies Achieved to be Reflected in P&L in Future Quarters $220 Non-EBITDA Synergies Achieved Increased Synergy Target Target Stated at Investor Day $175 $

  5. Slide 5: Pro Forma 3Q19 vs 3Q18 Commercial Performance

    Pro Forma 3Q19 vs 3Q18 Commercial Performance USD millions 3Q19 3Q18 Change Volume and Price Changes Volume Price Revenue $ 768 $ 832 (8%) TiO2 3% (7%) Revenue ex-Electrolytic $ 768 $ 822 (7%) Local Currency N/A (5%) Pigment 603 629 (4%) Zircon (32)% (4%) Zircon 68 104 (35%) Feedstock & Other Produc

  6. Slide 6: Pro Forma 3Q19 vs 2Q19 Commercial Performance

    Pro Forma 3Q19 vs 2Q19 Commercial Performance USD millions 3Q19 2Q19 Change Volume and Price Changes Volume Price Revenue $ 768 $ 827 (7%) TiO2 (7%) (1%) Pigment 603 657 (8%) Local Currency N/A ↓ Less than 1% Zircon 68 89 (24%) Zircon (20%) (4%) Feedstock & Other Products 97 81 20% • TiO2 sales volu

  7. Slide 7: Pro Forma Adjusted EBITDA

    Pro Forma Adjusted EBITDA USD millions 3Q19 3Q18 Change 2Q19 Change Adjusted EBITDA $ 184 $ 215 (14%) $ 200 (8%) Adjusted EBITDA margin 24% 26% (2 pts) 24% -- • Lower TiO2 selling prices primarily due to legacy Cristal commercial approach in 2018 • Lower zircon sales volumes due to softer market dem

  8. Slide 8: Financial Position 3Q19 & Outlook

    Financial Position 3Q19 & Outlook • September 30, 2019 debt of $3.1 billion • Returned ~$309 million to shareholders YTD ▪ $2.8 billion net of cash and cash 2019 equivalents ▪ Repurchased ~21.5 million shares • Liquidity of $661 million ▪ Regular dividend payment ▪ Cash/cash equivalents of $305 mill

  9. Slide 9: Going Forward

    Going Forward • Current supply/demand fundamentals in TiO2 and zircon support a recovery should global macro-economic conditions even modestly improve • Many levers to increasing profitability and cash flow in our control • We continue to deliver the synergies we promised, with significant synergies

  10. Slide 10: Q&A session

    Q&A session © 2019 Tronox Holdings plc | All rights reserved. | tronox.com

  11. Slide 11: Appendix

    Appendix © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 11

  12. Slide 12: Condensed Consolidated Statements of Operation (U.S. GAAP)

    Condensed Consolidated Statements of Operation (U.S. GAAP) TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three months Ended September 30, Nine months Ended September 30, 2019 2018 2019 2018 Net

  13. Slide 13: Reconciliation of Non-U.S. GAAP Financial Measures

    Reconciliation of Non-U.S. GAAP Financial Measures TRONOX HOLDINGS PLC RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) (Millions of U.S. dollars, except share and per share data) RECONCILIATION OF NET (LOSS) INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. G

  14. Slide 14: Condensed Consolidated Balance Sheets

    TRONOX HOLDINGS PLC Condensed Consolidated Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) September 30, December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 305 $ 1,034 Restricted cash 11 662 Accounts r

  15. Slide 15: Consolidated Statements of Cash Flows

    TRONOX HOLDINGS PLC Consolidated Statements of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Nine Months Ended June 30, 2019 2018 Cash Flows from Operating Activities: Net (los s ) incom e $ (92) $ 24 Net incom e from dis continued operations , net of tax 5

  16. Slide 16: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (NON-U.S. GAAP)

    Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net (loss)

  17. Slide 17: Segment Information – Revenue, Operating Income and Free Cash Flow (NON-U.S. GAAP)

    Segment Information – Revenue, Operating Income and Free Cash Flow (NON-U.S. GAAP) TRONOX HOLDINGS PLC SEGMENT INFORMATION REVENUE, OPERATING INCOME AND FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following tables reconciles net sales and sales growth excluding Electrol

  18. Slide 18: Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP)

    Pro Forma Condensed Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Pro forma amounts Pro forma amounts Three months Ended September 30,

  19. Slide 19: Pro Forma Reconciliation of Net Income to Adjusted Net Income

    Pro Forma Reconciliation of Net (Loss) Income from Continuing Operations attributable to Tronox Holdings plc (U.S. GAAP) to Adjusted Net Income (Loss) from Continuing Operations attributable to Tronox Holdings plc (NON-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NON-U.S. GAAP FINANCIA

  20. Slide 20: Reconciliation of Net Income from Continuing Operations to EBITDA and Adjusted EBITDA

    Reconciliation of Net Income from Continuing Operations to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Pro forma amounts Pro forma

Tronox Holdings — Q3 2019 Earnings Presentation on 6ix