Tronox Holdings plc · NYSE:TROX
Tronox — Q4 2006 Earnings Presentation
18 slides from Tronox's earnings presentation, Feb 27, 2007
Slide 1: Fourth-Quarter Preliminary Results
TRONOX Fourth-Quarter Preliminary Results February 22, 2007
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: Agenda
Agenda Perspective and Key Initiatives Tom Adams - Chairman and Chief Executive Officer Fourth-Quarter Performance Robert Gibney - Vice President Investor Relations and External Affairs Financial Highlights Mary Mikkelson - Senior Vice President and Chief Financial Officer Q&A
Slide 4: Strategic Focus
Strategic Focus Strategy: Focus on cash, returns & profit. Extract more from the existing assets. Grow with the market. Strategic Initiatives: Project Cornerstone Asset Management Manufacturing Excellence Market Segmentation Supply Chain Technology People / Change Management
Slide 5: Project Cornerstone Execution
Project Cornerstone Execution Land Sales & Capital Program Inventory, Receivables & Payables Program * Does not include BMI land formerly contracted to Centex Status Summary Teams on track or ahead of schedule Remain committed to achieving target Realizing benefits 89 119 109 99 129 139 Cash Cost Re
Slide 6: Global TiO2 Manufacturing Operations
Location M Tonnes Hamilton 225 Savannah 110 Western Australia 110 Botlek 90 Uerdingen (Sulfate) 107 Global Capacity 642 Global TiO2 Manufacturing Operations Nameplate Capacity (1) (1) Reflects 100% of the production capacity of the Kwinana pigment plant, which is 50% owned by Tronox and 50% by the j
Slide 7: Integrated Western Australia Operations
Integrated Western Australia Operations Integrated Western Australia Operations Chandala Synthetic Rutile Facility Cooljarloo Mine Kwinana Pigment Facility
Slide 8: European Production
European Production Uerdingen, Germany Sulfate Process World-Class Facility New HIF Process Annual Capacity = 107,000 MT Botlek, Netherlands Chloride Process Improved Uptime, Debottlenecking New Capacity Rating = 90,000 MT
Slide 9: 2007 Outlook
2007 Outlook Global TiO2 Market Regional Pricing Strong fundamentals in Asia-Pacific and Europe Cautiously optimistic for U.S. rebound in demand Ongoing Project Cornerstone Improvements Demand Growth 2007 vs. 2006 Capacity Utilization Inventory Levels 2.8% - 3.2% 90% - 95% Seasonal Norms
Slide 10: Tronox Fourth-Quarter Preliminary Results
Tronox Fourth-Quarter Preliminary Results ($MM) Net Sales Gross Margin Income From Continuing Operations Diluted EPS from cont. ops. 2006 2005 Fourth Quarter Ended December 31, $326.3 33.6 7.8 $ 0.19 $346.5 50.3 12.0 $ 0.30
Slide 11: TiO2 Pigment
TiO2 Pigment Good Volume Growth Primarily in Asia-Pacific Pricing Q3 to Q4 up 1% 2006 Seasonal Sales Profile: Extracting More From Existing Assets Increased Uptime Higher Process Chemical Costs Higher Production Costs as a Result of Tiwest JV 2005 2006 East 1267 1310 $MM $1267 $1310 Sales +3.4% 2005
Slide 12: Electrolytic
Electrolytic Increase Due to U.S. Navy Settlement of $20.5 mm Sodium Chlorate Sales Volumes and Pricing Improved Project Cornerstone Offset Higher Energy and Ore Costs 2005 2006 East -5.9 25.3 2005 2006 2005 2006 East 97 101.5 2005 2006 ($MM) Sales +4.6% Operating Profit $97 $102 $25 ($6) 2005 2006
Slide 13: Financial Items
Financial Items Financial Items ($MM) 4Q 2006 FY 2006 2007 Outlook Cash Flow Provided by Operating Activities $49 $112 Interest Expense $13 $50 $48 to $52 Capital Expenditures $18 $90 $81 Effective Tax Rate 23% 48% 36% to 40%
Slide 14: Financial Items
Financial Items Financial Items ($MM) 4Q 2006 FY 2006 2007 Outlook SG&A Expense $29 $119 $125 to $129* *2007 Outlook Includes Employee Cash Incentive Program
Slide 15: Environmental Matters
Environmental Matters Environmental Items ($MM) FY 2006 2007 Outlook Gross Spend $57 Reimbursements $38* Net Cash Spend $19 $40 to $45 As of 12/31/06: Financial Reserves = $224MM Receivables For Reimbursements = $71MM Excludes anticipated future receivables of $41MM from DOE for West Chicago * Inclu
Slide 16: Financial Highlights: Land Sales Programs
Financial Highlights Land Sales Programs Henderson, Nevada 2,200 acre development Tronox 100% owned land ~150 acres Landwell Company participation Tronox U.S. portfolio $250MM Target Over 3-5 Years on Track Cornerstone Target Achieved for 2006 Henderson, Nevada
Slide 17: Q&A
Q&A www.tronox.com
Slide 18: Fourth-Quarter Preliminary Results
TRONOX Fourth-Quarter Preliminary Results February 22, 2007