Tronox Holdings Plc · NYSE:TROX

Tronox — Non-Deal Roadshow (March 2020)

49 slides from Tronox's roadshow presentation, Mar 11, 2020

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
Slide 3: Table of Contents
Table of Contents • Tronox – A Focused Titanium Industry Leader 4 • Strategy Driven by Changing Industry Dynamics 9 • A Single Unified Commercial Approach 15 • Capitalizing on the Strength of our Vertical Integration 24 • Strong Financial Position 32 • Australian Operations 39 • Appendix 43 © 2020 T
Slide 4: Tronox – A Focused Titanium Industry Leader
Tronox – A Focused Titanium Industry Leader • Tronox Holdings plc (NYSE:TROX) is a vertically integrated mining and inorganic chemical company domiciled under the laws of the United Kingdom, and World’s largest vertically integrated TiO2 producer headquartered in the United States in the New York Ci
Slide 6: Integration and Globalization Advantages
Integration and Globalization Advantages Vertical Integration Balanced Geographical Sales • Achieve and maintain first- quartile cost position • Greater stability in financial 26% performance 36% • Significant profitability and cash flow across varying 32% macro-economic conditions 6% A Global Footp
Slide 7: A Global Organization United by Our Core Values
A Global Organization United by Our Core Values Tronox has created a high-performance organization that transcends geographic and cultural boundaries Our Core Values Our Results Approach • We have an uncompromising focus on operating safe, reliable and responsible facilities. • We honor our responsi
Slide 8: Commitment to Sustainability is a Part of Tronox Culture
Commitment to Sustainability is a Part of Tronox Culture Corporate citizenship and sustainability is an integral part of our global business. We are continually challenging ourselves to promote sustainable growth, invest in green technologies, be transparent in all our business operations, and make
Slide 10: Strategy Driven by Changing Industry Dynamics
Strategy Driven by Changing Industry Dynamics Changes in TiO2 Market Increased competitive Structure intensity Implications Advantaged cost structure is Flattening of cost curve critical to remain competitive / relevant Chloride Process Industry consolidation and migration to public ownership Vertic
Slide 12: Tronox Vision for the Future
Tronox Vision for the Future Vision: To be the leading, responsible, and advantaged global integrated TiO2 company delivering safe, quality, low-cost tons to our customers and exceptional returns to our shareholders – by leveraging our outward-minded talent base Sources of Advantage Performance Char
Slide 13: The Emergence of the “Big 3”
The Emergence of the “Big 3” Exchange NYSE: TROX NYSE: CC SHE: 002601 NYSE: KRO NYSE: VNTR Global Headquarters Stamford, CT Wilmington, DE Henan, China Dallas, TX Wynyard, UK Incorporation UK Delaware China Delaware UK US, Brazil, UK, Global TiO2 Germany, Belgium, UK, Germany, Spain, Netherlands, Fr
Slide 14: Emergence of the “Big 3”: Defining Characteristics
Emergence of the “Big 3”: Defining Characteristics The leading TiO2 producers will, by end of 2019, all have production capacity over 1 mtpa • Largest vertically integrated position among TiO2 peers ‒ Increasing ability to use a variety of feedstocks ‒ Maximizing vertically integrated position with
Slide 16: Unified Commercial Approach
Unified Commercial Approach Guiding Principles Offering A World-Class TiO2 Product Portfolio • Offering a high value proposition to our customers; • Accelerating our bespoke margin stability initiatives across regions in both coatings and plastics markets; • Partnering with strategic customers that
Slide 17: TiO2 Customer Portfolio – Growth Trajectory Is Key
TiO2 Customer Portfolio – Growth Trajectory Is Key Revenue Growth of Strategic Global Customer ANNUAL REVENUE INDEXED 3.5 2.5 Attach ourselves to the customers who are growing faster than the market 1.5 0.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tronox Volume Growth at Strategic Account D
Slide 18: TiO2 Margin Stability Program – Changes from Previous Cycle
TiO2 Margin Stability Program – Changes from Previous Cycle Investor Day 2019 Monthly Volume, MT Price Index Price recovers as Much shorter downturn: Price rallies after Extended downturn due to: supply and demand  Limited inventory build severe pigment  Excess inventory built by customers due to
Slide 19: Early Signs of a Recovery in TiO2
Early Signs of a Recovery in TiO2 Indicators showing early signs of 10% cyclical recovery in TiO2 industry 160% Investor Day 2019 150% 5% 140% 0% 130% -5% 120% -10% 110% -15% 100% 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 40% 250% 2018 2019 30% 200% 20% Change in 3 mo. Moving Average 10% 15
Slide 20: Historic Price, Volume and Inventory Trends
Historic Price, Volume and Inventory Trends • Legacy Cristal significantly increased prices from Q2 2017 through Q1 2018, resulting in volume and share losses • Tactics changed in Q2 2018 as legacy Cristal rapidly decreased prices to regain share while building inventory Note: Legacy Cristal data ex
Slide 21: Value-Enhancing Benefits from Zircon & TiCl4
Value-Enhancing Benefits from Zircon & TiCl4 Tronox is the 2nd largest producer of zircon and the largest merchant seller and distributor of Metal Grade TiCl4 products globally Zircon • 2nd largest zircon producer with ~294,000 tons of capacity – Largest production capacity of our portfolio at Namak
Slide 22: Zircon Delivering Significant Profitability and Margin Enhancement
Zircon Delivering Significant Profitability and Margin Enhancement • Major applications  Ceramic tiles and glazes  Refractories and foundry  Zirconia chemicals • Market Dynamics  Margin Stabilization initiative precedes that in TiO2  Some near-term demand softening due uncertain outlook in Chin
Slide 23: Zircon Margin Stability Program
Zircon Margin Stability Program • Customer and industry focus Zircon Pricing – Indexed to 2000  Historical pricing was adjusted on spot, quarterly or monthly basis ⎼ Pricing now adjusted on a semi-annual basis  Provides customers with price predictability  Gives customers the ability to plan and
Slide 25: Our Operations Philosophy
Our Operations Philosophy SQLCT Operational Excellence Business Transformation Integrated Business Planning Operational Risk Organizational Management Effectiveness Project Asset Reliability Effectiveness Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns A
Slide 26: Tronox’s Vertically Integrated Network of Assets
Tronox’s Vertically Integrated Network of Assets Mining Operations Namakwa Gingko Existing Fairbreeze UMM Cooljarloo Wonnerup Paraiba East and West Snapper  Zircon  Pig Iron New Coolljarloo East OFS Atlas (Direct sales) (Extensions) Fairbreeze Extension Port Durnford West UMM Expansion Campaspe Do
Slide 27: Established Mining Operations
Established Mining Operations Namakwa, South Africa KZN, South Africa Australia • Largest HM Reserves at ~46m MT • Fairbreeze Mine HM Reserves at ~13m MT • ~20m MT of HM Reserves in our • 32k MT Rutile & leucoxene and 121k • 25k MT Rutile & leucoxene and 55k MT Western Operations; 7m MT of HM MT Zir
Slide 28: Smelting Operations to Produce High-Grade TiO2 Feedstock Material
Smelting Operations to Produce High-Grade TiO2 Feedstock Material for our Pigment Plants Namakwa, South Africa KZN, South Africa Chandala, Australia • Two smelting furnaces that produce • Two smelting furnaces that produce Ti Slag • Metallurgical site which includes a kiln titanium slag (“Ti Slag”)
Slide 29: Jazan Expected to Increase Total Ti Slag Production to >900k MT
Jazan Expected to Increase Total Ti Slag Production to >900k MT Producing high-grade feedstock for our pigment plants • Jazan is a key to further optimize vertical integration of Tronox • Jazan smelter comprised of two high-grade chloride slag furnaces with 500ktpa of combined capacity • Tronox is p
Slide 30: Nine Pigment Plants Across Six World Regions
Nine Pigment Plants Across Six World Regions North America Europe Australia • Tronox’s largest pigment plant is located • Stallingborough, U.K plant has a production • Kwinana, Western Australia plant (~40km in Hamilton, Mississippi and has a capacity of 165k MT (chloride process) from Perth) has a
Slide 31: Tronox Delivered $89 million of Synergies in 2019
Tronox Delivered $89 million of Synergies in 2019 Increased Synergy Targets on Q4 2019 Earnings Call Total Synergies $325 USD millions Increased $105mm EBITDA Synergies Achieved & Reflected in P&L YTD $275 EBITDA Synergies Achieved to be Reflected in P&L in Future Quarters Increased $100mm Non-EBITD
Slide 33: Fourth Quarter and Full Year 2019 Highlights
Fourth Quarter and Full Year 2019 Highlights Pro Forma Summary Financials Q4 ‘19 Q4 ‘18 % ∆ YoY 2019 2018 % ∆ YoY • Reported full year 2019 results in-line with or exceeded guidance issued in Q3 2019 Revenue $ 693 $ 728 (5%) $ 3,008 $ 3,339 (10%) • Adjusted EBITDA within guidance; Adjusted Net Incom
Slide 34: Strong Financial Position – 4Q19 & 2020 Guidance
Strong Financial Position – 4Q19 & 2020 Guidance as of Feb 26 • December 31, 2019 debt of $3.0 billion • Returned ~$315 million to shareholders in 2019  $2.7 billion net of cash and cash equivalents  Repurchased ~21.5 million shares  $100 million discretionary debt repayment made  Regular divide
Slide 35: 2020 Outlook & Key Focus Areas
2020 Outlook & Key Focus Areas • Preparing for a recovery in the markets in which we participate • Managing levers within our control ‒ Deliver on the increased synergy targets ‒ Continued disciplined approach to capex, investing in high-return projects ‒ Continued deleveraging of the balance sheet
Slide 36: Tronox has Significant Tax Attributes
Tronox has Significant Tax Attributes Attribute Est Tax Shield Tax Planning US $4.1B • Value Chain Analysis / Transfer Pricing Initiative Foreign $1.3B – Tronox moves from long to short feedstock position Total NOLs $5.4B – Mines / smelters / synthetic rutile plant now have guaranteed demand for all
Slide 37: Aligned with Our Shareholders and with Our Commitments
Aligned with Our Shareholders and with Our Commitments Long-term Equity Compensation Program Performance-based Integration RSUs • Aligns key management compensation to value created Time-based Performance- for shareholders from acquisition integration RSUs based RSUs • One-time grant of performance-
Slide 38: Managing FX Exposures from Global Manufacturing Platform
Managing FX Exposures from Global Manufacturing Platform Approximate Annual FX Philosophy FX Exposures By Country • Hedge known Balance Sheet exposures with forwards and caps/collars Adj EBITDA Impact Per Indicated Change in Functional Currency • Hedge significant capital expenditure exposures • Cas
Slide 40: Australian Locations
Australian Locations Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2020 40
Slide 41: Australian Operations Overview
Australian Operations Overview  Tronox is the only TiO2 producer in Australia  Tronox’s Australian sites have been owned by numerous organizations over the years  Bemax, Cable Sands, Cristal, Tiwest  Oldest sites are Northshore (1956) and Bunbury Pigment Plant (1961)  Australia is Tronox’s only
Slide 42: Australian Heavy Mineral Reserves
Australian Heavy Mineral Reserves VHM Assemblage (% of THM) Ore Average Grade In-Place THM Rutile and Mine / Deposit Type Reserve Category (million tonnes) (% THM) (million tonnes) Ilmenite Leucoxene Zircon Northern Operations Cooljarloo Dredge Proven 258 1.7 4.4 61.2 7.7 10.3 Probable 158 2 3.1 60.
Slide 44: Consolidated Statements of Operation (U.S. GAAP)
Consolidated Statements of Operation (U.S. GAAP) TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Net sales $ 693 $ 429 $ 2,642 $ 1
Slide 45: 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
Slide 46: 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 December 31, Year Ended December 31, 2019 2018 2019 2018 Net (loss) income (
Slide 47: Pro Forma Consolidated Statements of Operations (U.S. GAAP)
Pro Forma Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA 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 December 31, Year Ended December
Slide 48: Reconciliation of Pro Forma Net (Loss) Income from Continuing Operations
Reconciliation of Pro Forma 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
Slide 49: Adjusted EBITDA (non-U.S. GAAP)
Pro Forma Reconciliation of Net Income (Loss) from Continuing Operations to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX HOLDINGS PLC PRO FORMA RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Pro

Tronox Holdings — Non-Deal Roadshow (March 2020) on 6ix

Tronox — Non-Deal Roadshow (March 2020)

Slide 1: Tronox Holdings plc

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

Slide 3: Table of Contents

Slide 4: Tronox – A Focused Titanium Industry Leader

Slide 5: Global, Integrated Footprint Sets Tronox Apart

Slide 6: Integration and Globalization Advantages

Slide 7: A Global Organization United by Our Core Values

Slide 8: Commitment to Sustainability is a Part of Tronox Culture

Slide 9: Strategy Driven by Changing Industry Dynamics

Slide 10: Strategy Driven by Changing Industry Dynamics

Slide 11: © 2020 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 12: Tronox Vision for the Future

Slide 13: The Emergence of the “Big 3”

Slide 14: Emergence of the “Big 3”: Defining Characteristics

Slide 15: A Single Unified Commercial Approach

Slide 16: Unified Commercial Approach

Slide 17: TiO2 Customer Portfolio – Growth Trajectory Is Key

Slide 18: TiO2 Margin Stability Program – Changes from Previous Cycle

Slide 19: Early Signs of a Recovery in TiO2

Slide 20: Historic Price, Volume and Inventory Trends

Slide 21: Value-Enhancing Benefits from Zircon & TiCl4

Slide 22: Zircon Delivering Significant Profitability and Margin Enhancement

Slide 23: Zircon Margin Stability Program

Slide 24: Capitalizing on the Strength of our Vertical Integration

Slide 25: Our Operations Philosophy

Slide 26: Tronox’s Vertically Integrated Network of Assets

Slide 27: Established Mining Operations

Slide 28: Smelting Operations to Produce High-Grade TiO2 Feedstock Material

Slide 29: Jazan Expected to Increase Total Ti Slag Production to >900k MT

Slide 30: Nine Pigment Plants Across Six World Regions

Slide 31: Tronox Delivered $89 million of Synergies in 2019

Slide 32: Strong Financial Position

Slide 33: Fourth Quarter and Full Year 2019 Highlights

Slide 34: Strong Financial Position – 4Q19 & 2020 Guidance

Slide 35: 2020 Outlook & Key Focus Areas

Slide 36: Tronox has Significant Tax Attributes

Slide 37: Aligned with Our Shareholders and with Our Commitments

Slide 38: Managing FX Exposures from Global Manufacturing Platform

Slide 39: Australian Operations

Slide 40: Australian Locations

Slide 41: Australian Operations Overview

Slide 42: Australian Heavy Mineral Reserves

Slide 43: Appendix

Slide 44: Consolidated Statements of Operation (U.S. GAAP)

Slide 45: Reconciliation of Non-U.S. GAAP Financial Measures

Slide 46: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (NON-U.S. GAAP)

Slide 47: Pro Forma Consolidated Statements of Operations (U.S. GAAP)

Slide 48: Reconciliation of Pro Forma Net (Loss) Income from Continuing Operations

Slide 49: Adjusted EBITDA (non-U.S. GAAP)