Tor Minerals International, Inc. · OTC:TORM
Tor Minerals International — Investor Presentation (June 2011)
22 slides from Tor Minerals International's investor presentation, Jun 23, 2011
Slide 1: NASDAQ: TORM June 2011
NASDAQ: TORM June 2011
Slide 2: Forward-Looking Statement
Forward‐Looking Statement Certain portions of this presentation contain forward‐looking statements about the business, financial condition and prospects of the Company. The actual results of the Company could differ materially from those indicated by the forward‐looking statements because of various
Slide 3: What We Do...
What We Do... • 28 year operating history Specialty Aluminas TiO 2 Color Pigments • High performance industrial minerals Approx. 40% to 45% Approx. 40% to 45% Color titanium dioxide (TiO 2) Specialty hydrated aluminas (ATH, AMH) • Primary applications - Pigments and engineered fillers for use in pla
Slide 4: Investment Considerations
Investment Considerations Investment Data (As of 3/31/11) NASDAQ: TORM • 15% to 20% targeted growth for next 3‐5 years - Recent Price (6/10/11) $14.58 Current products present opportunity to grow 52‐Week Range $5.30‐$24.50 revenue from $30 million to $60 million+ in annual Shares Outstanding 1.9 MM
Slide 5: Historical Revenue Trends
Historical Revenue Trends Key Growth Drivers 1)Cyclical recovery 2)TiO 2 market conditions 3)Geographic Expansion 4)New product introduction 20% ‐ total revenue growth during 2010 15% to 20% annual growth target for next three to five years . 23% 4‐year CAGR* in specialty alumina drives greater dive
Slide 6: TiO2 Color Pigments
40% to 45% TiO 2 Color Pigments of Revenue Unique Production Process TiO 2 Color Pigments Synthetic Rutile: HITOX® & TIOPREM® Ilmenite: FeTiO 3 95% TiO 2 95% TiO End Products Master Batch PVC Pipe Paint Plastics Plastics
Slide 7: TiO2 Color Pigment Customers
40% to 45% TiO 2 Color Pigment of Revenue Customers
Slide 8: Specialty Aluminas
40% to 45% of Revenue Specialty Aluminas Industrial Catalysts Composites HALTEX® ALUPREM® OPTILOAD® Electrical Insulators Solid Surface
Slide 9: Specialty Aluminas Customers
40% to 45% Specialty Aluminas of Revenue Customers BROLL BUNTPIGMENTE GMBH and CO KG
Slide 10: Key Growth Drivers
Key Growth Drivers 1) Cyclical Recovery in End Markets 2) TiO 2 Market Conditions Drives Substitute Affect 3) Geographic Expansion Opportunity 4) New Product Introduction ‐ Expand Addressable Markets
Slide 11: Cyclical Recovery in End-Markets
Cyclical Recovery in End‐Markets TiO 2 Supply/ Demand Imbalance TiO 2 Supply TiO 2 Demand Shortage of TiO supply Worldwide demand recovery ‐Idling of plants using old production ‐Primary markets for paint and plastics technology markets have stabilized and are ‐$100’s of millions of investment and 3
Slide 12: TiO2 Market Conditions Drive Substitute for TOR's TiO2
TiO 2 Market Conditions Drive Substitute for TOR's TiO 2 Color Pigment HITOX ® TIOPREM® Commodity Versus TOR Minerals ’ White TiO TiO Color Pigments Annual Production 4. 5 million tons 12,000 tons TiO Content 86% to 98% 88% to 95%+ Particle Size 0.3 micron 0.3 to 1.5 micron Increased 30% during Pric
Slide 13: Geographic Expansion Opportunity
Geographic Expansion Opportunity Hattem, Netherlands Corpus Christi, Texas Ipoh, Malaysia Leverage Manufacturing Presence on Three Continents to Increase Sales Outside U.S. 2010 Sales in Asia Increased 64% Americas Asia Europe & Africa
Slide 14: New Product Introduction
New Product Introduction Specialty Alumina Successful Track Record of Introducing New Specialty Hydrated Alumina Products •From its introduction in 2001 ALUPREM® has become a leading fire retardant filler for solid surface applications all across Europe •Successfully introduced new specialty alumina
Slide 15: New Product Introduction
New Product Introduction TIOPREM ® • TIOPREM ® “heat stability” greatly expands the addressable market into plastics, specialty coatings and other select markets • Potential to more than double the addressable market longer term with current and new product developments in progress • High value‐adde
Slide 16: Efficiencies & Operating Leverage
Efficiencies & Operating Leverage • New manufacturing processes • Think global / act local - Manage global logistics - Apply technologies across product lines/ geographies - Exploit cost advantages in each geography • Drive utilization - 2011 Plant expansion will double ALUPREM ® production capacity
Slide 17: Efficiencies & Operating Leverage
Efficiencies & Operating Leverage % 3-5 Year Change Targets 15% to 20% Net Sales $24.2 MM $31.0 MM +28% annual growth Gross Margin 15.8% 21.8% 600 bp 25% to 28% Operating Margin 1.5% 8.7% 720 bp 10% to 12% Net Margin (0.6%) 7.1% 770 bp 8% to 10%
Slide 18: Quarterly Performance
Quarterly Performance Total Revenue (in millions) Trailing Twelve Month (TTM) Revenue - 33.1% increase to $33.7 million • TTM TiO 2 Color pigments revenue increased - 26.1% increase • TTM specialty alumina increased - 41.6% increase
Slide 19: Quarterly Performance
Quarterly Performance Gross Margin Trailing Twelve Month Gross Margin - 21.3% increase 300 basis points y‐o‐y • Increased efficiencies / Product shift / Greater plant utilization • Partially offset by raw material cost increases Target 25% ‐ 28%
Slide 20: Quarterly Performance
Quarterly Performance Net Margin Trailing Twelve Month Net Margin - 6.9% increase 420 basis points y‐o‐y • Increased efficiencies / Product shift / Greater plant utilization • Partially offset by raw material cost increases
Slide 21: Balance Sheet
Balance Sheet 1Q11 1Q10 Details Cash $2.4 MM $1.1 MM Accounts Receivable $4.9 MM $3.8 MM Days Sales Outstanding 46 Days 50 days Target ‐ 55 to 60 days Inventory $11.5 MM $9.5 MM Turns 2.6x 2.2x Target ‐ 3.0 to 3.5 turns per year Long‐Term Debt $5.3 MM $5.0 MM Return on Equity * 8% 3% Target ‐ 15% *
Slide 22: Investment Considerations
Investment Considerations Investment Data (As of 3/31/11) NASDAQ: TORM • 15% to 20% targeted growth for next 3‐5 years - Recent Price (6/10/11) $14.58 Current products present opportunity to grow 52‐Week Range $5.30‐$24.50 revenue from $30 million to $60 million+ in annual Shares Outstanding 1.9 MM
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