Venator Materials PLC · OTC:VNTRF
Venator Materials — FY2017 Earnings Presentation
16 slides from Venator Materials's earnings presentation, Feb 23, 2018
Slide 1: Fourth Quarter and Full Year 2017 Results Presentation
Fourth Quarter and Full Year 2017 Results Presentation February 23, 2018
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 2017 Highlights
Fourth Quarter and Full Year 2017 Highlights Financial summary 4Q17 and Comparatives Full Year $ in millions, except per share items 4Q17 4Q16 3Q17 2017 2016 Revenues $528 $491 $582 $2,209 $2,139 Net income (loss) attributable to 68 (6) 51 134 (87) Venator Adjusted EBITDA 118 39 134 395 77 Diluted e
Slide 4: Titanium Dioxide
Titanium Dioxide Review of fourth quarter 2017 Revenues Adjusted EBITDA $ in millions $ in millions 550 160 50% Y/Y +8% Q/Q (10)% 150 Y/Y +261% Q/Q (6)% 500 140 45% 130 119 127 450 431 40% 387 120 400 110 31% 35% 357 100 29% 350 90 30% 300 80 70 25% 250 60 200 50 20% 40 33 150 30 15% 9% 100 20 10% 1
Slide 5: Performance Additives
Performance Additives Review of fourth quarter 2017 Revenues Adjusted EBITDA $ in millions $ in millions 200 195 20 30% 190 185 Y/Y +5% Q/Q (7)% Y/Y +15% Q/Q n/m 180 175 170 165 151 15 25% 160 155 141 15 150 145 134 15 140 135 13 20% 130 125 120 115 110 105 100 95 10 15% 90 85 11% 10% 10% 80 75 70 6
Slide 6: $90 Million EBITDA Improvement Program
$90 Million EBITDA Improvement Program $24 million of EBITDA benefit captured in FY17 Expected Run-rate Improvement Expected Annual EBITDA Capture $ in millions $ in millions $30 $30 $90 $30 $24 Facilities closures Fixed costs Volume EBITDA 2017 2018F 2019F Improvement Actual Forecast Business Impro
Slide 7: Pori, Finland Update
Pori, Finland Update ► Construction for the specialty and differentiated products portion of the facility is on pace and we expect it to be complete by the end of 2018 ̶ Specialty and differentiated products represent 60% of site capacity and ~75% of site EBITDA on average ► Current TiO2 business co
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Fourth quarter 2017 4Q17 / 4Q16 $ in millions $200 $150 $97 $2 $(23) $(6) $9 $118 $100 $50 $39 $0 (1) (1) 4Q16 Adjusted Price/Mix Volume Costs Business FX/Other 4Q17 Adjusted EBITDA Improvement EBITDA Program 4Q17 / 3Q17 $ in millions $200 $26 $(31) $150 $134 $(9) _ $(2) $118
Slide 9: Financial Profile
Financial Profile Attractive Position $ in millions Net Debt Tax Rate Comment $565 $519 Liquidity of $481mm as of December 31, 2017 $(186) $(238) – $238mm cash 2 15-20% – $243mm ABL borrowing base 15-20% 15-20% 18% 1.6x(1) Net debt decreasing 1.3x(1) 1.5 Attractive tax profile $751 $757 – $1bn of Ne
Slide 10: Opportunistic Strategic Transactions
Cash Uses We expect to generate > $200 million FCF in 2018 before Pori $ in millions Priority of Cash Uses Cash Uses 2017 2018E 1. Earnings Growth Capital expenditures(1) $(103) ~$(120) Opportunistic Strategic Transactions ̶ Pori reconstruction Cash interest (28) ~(35)-(40) ̶ Capex projects targetin
Slide 11: Summary
Summary Fourth Quarter Headlines Strong earnings and cash generation TiO2 earnings driven by industry supply tightness, good underlying demand and price capture and our leading positions in specialty products and in Europe Accelerated delivery of our $90 million Business Improvement Program Outlook
Slide 12: Appendix
VENATOF Appendix
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (Loss) (2) (1) EBITDA (Expense) Benefit Net Income (Loss) Per Share Three months ended Three months ended Three months ended Three months ended December 31, December 31, December 31, December 31, In millions, except per sha
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (Loss) (2) (1) EBITDA (Expense) Benefit Net Income Per Share Three months ended Three months ended Three months ended Three months ended September 30, September 30, September 30, September 30, In millions, except per share
Slide 15: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax Diluted Earnings (Loss) (2) (1) EBITDA (Expense) Benefit Net Income (Loss) Per Share 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 16: 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