Slide 1: Citi 2019 Basic Materials Conference
Citi 2019 Basic Materials Conference Jeffry N. Quinn Chairman and CEO © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
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 safe harbor provisions of the U.S. Private Securities Litigation Reform Act o
Slide 3: Tronox is a Titanium Industry Leader
Tronox is a Titanium Industry Leader World’s largest vertically integrated TiO2 producer Second largest TiO2 pigment producer Second largest mineral sands producer Second largest zircon producer Unmatched global footprint on six continents Rich diversity of talent with deep expertise acr
Slide 4: Global, Integrated Footprint Sets Tronox Apart
Global, Integrated Footprint Sets Tronox Apart © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com 4
Slide 5: Vertical Integration and Globalization Serve as Competitive Advantages
Vertical Integration and Globalization Serve as Competitive Advantages Vertical Integration Balanced Geographical Sales • Achieve and maintain first- quartile cost position • Greater stability in financial 21% performance 30% • Significant profitability and cash flow across varying 30% macro-economi
Slide 6: 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 7: 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 8: Tronox Strategic Advantage and Vision for the Future
Tronox Strategic Advantage and 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 St
Slide 9: Unified Commercial Approach
Unified Commercial Approach Guiding Principles Offering A World-Class TiO2 Product Portfolio • Offering a high value proposition to our customers; • Partnering with strategic customers that are growing faster than the market; • Accelerating our bespoke margin stability initiatives across regions in
Slide 10: 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 ~270,000 MTPA of capacity – Largest production capacity in our portfolio at Namak
Slide 11: Our Operations Philosophy
Our Operations Philosophy SQLCT Operational Excellence Business Transformation Integrated Business Planning Operational Risk Organizational Management Effectiveness Project Effectiveness Asset Reliability Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns A
Slide 12: 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 13: Synergies – Actions Taken Have Delivered $45 million YTD
Synergies – Actions Taken Have Delivered $45 million 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 Non-EBITDA Synergies Achieved $220 Increased Synergy Target Target Stated at Investor Day $175 $1
Slide 14: Delivering Financial Results
Delivering Financial Results Strength in margin profile and cash generation abilities Tronox reported Revenue ($MMs) Adjusted EBITDA ($MMs) Cristal pre-acquisition $827 $200 $720 $768 $184 36 5 $141 330 791 61 195 390 80 Q1 2019 Q2 2019 Q3 2019 Q1 2019 Q2 2019 Q3 2019 Margin % 20 % 24 % 24 % Free Ca
Slide 15: Strong Financial Position
Strong Financial Position Strong cash flow provides full allocation optionality • Liquidity of $661 million (1) • Cash/cash equivalents of $305 million • Reinvesting in our business • $356 million under revolvers Tronox • Lowering our cost/ton • Net leverage of <4.0x on TTM basis (1) continuously •
Slide 16: Outperforming in the Current Market & Positioned for Growth
Outperforming in the Current Market & Positioned for Growth • Success of margin stabilization program translating into negligible pricing declines and strong margin generation during recent downturn TiO2 • Tronox is well-positioned to capitalize on a market rebound, supported by our vertically integ
Slide 17: Q&A Session
Q&A Session © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 18: Appendix
Appendix © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 19: Established Mining Operations
Established Mining Operations Namakwa, South Africa KZN, South Africa Australia • Largest HM Reserves at 41m MT • Fairbreeze Mine HM Reserves at 14m MT • 11m MT of HM Reserves at Cooljarloo • 32k MT Rutile & leucoxene and 119k • 22k MT Rutile & leucoxene and 53k MT and Dongara, additional reserves a
Slide 20: 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 21: Jazan Will Increase Total Ti Slag Production to >900k MT
Jazan Will 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 providin
Slide 22: 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 23: TiO2 Margin Stability Program – Changes from Previous Cycle
TiO2 Margin Stability Program – Changes from Previous Cycle 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 by customers re-ba
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
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)
Slide 30: Pro Forma Reconciliation of Net (Loss) 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
Slide 31: Reconciliation of Net Income from Continuing Operations to 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