Tronox Holdings Plc · NYSE:TROX
Tronox — Jefferies Industrials Conference 2021
21 slides from Tronox's conference presentation, Aug 3, 2021
Slide 1: Tronox Holdings plc
Tronox Holdings plc Jefferies Industrials Conference August 3, 2021 Tronox Holdings plc | © 2021 1
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: Tronox – A Focused Titanium Industry Leader
Tronox – A Focused Titanium Industry Leader • Tronox Holdings plc (NYSE:TROX) is a vertically integrated mining and World’s largest vertically integrated TiO2 producer inorganic chemical company domiciled under the laws of the United Kingdom, and headquartered in the United States in the NYC area Se
Slide 4: Nine TiO2 Pigment Plants, Six Mineral Sands Mines, and Five Upgrading Facilities on Six Continents
Nine TiO2 Pigment Plants, Six Mineral Sands Mines, and Five Upgrading Facilities on Six Continents • 1.1 million tons of nameplate TiO2 pigment capacity • 297,000 tons of zircon processing capacity • 220,000 tons of pig iron • 410,000 tons of titanium slag • 230,000 tons of synthetic rutile • 182,00
Slide 5: Balanced Geographic Footprint and End-Market Exposure Provides Significant Advantage Relative to Competitors
Balanced Geographic Footprint and End-Market Exposure Provides Significant Advantage Relative to Competitors Balanced Geographical Sales1 Sales by Product1 Feedstock and Other Products 29% 11% 32% Zircon 10% TiO2 79% 28% Plastic Paints & 13%2 Coatings 60%2 11% Paper & Specialty 6%2 A Global Footprin
Slide 6: Superior Competitive Position as Most Vertically Integrated TiO2 Producer
Superior Competitive Position as Most Vertically Integrated TiO2 Producer Namakwa Benefits of Integration Gingko Operations Existing Fairbreeze East and UMM Cooljarloo Wonnerup Paraiba Snapper West Mining ▪ Zircon ▪ Pig Iron ✓ Full utilization of mining and Atlas Coolljarloo (Direct sales) feedstock
Slide 7: Demand Recovery Boosted by Stimulus
Demand Recovery Boosted by Stimulus Stimulus Impact on Demand Two Primary Drivers I. Unprecedented stimulus injected in all major economies • ~ 10x the level in the GFC as a % of GDP II. “Homebody Economy” effect • Disposable income has shifted from restaurant and travel to home improvements • Resta
Slide 8: Tronox's Strategy is Best Aligned with the Changing TiO2 Industry Dynamics
Tronox’s Strategy is Best Aligned with the Changing TiO2 Industry Dynamics Evolving industry trends… …Coupled with reduced price volatility High Quality TiO 2 Price1 • Producer consolidation and migration to public ownership ($ per tonne delivered) • Higher probability of periods of feedstock and pi
Slide 9: Zircon Delivering Significant Value
Zircon Delivering Significant Value Zircon Demand1 By Geography • 2nd largest zircon producer with ~297,000 tons of production capacity Tronox Zircon • Largest production capacity of our portfolio at Namakwa Sands By Geography Assets • We estimate total zircon reserves of 4.6MT at Namakwa, 1.0MT at
Slide 10: Strong Free Cash Flow Provides Financial, Strategic and Operational Flexibility
Strong Free Cash Flow Provides Financial, Strategic and Operational Flexibility Adjusted EBITDA1 ($ millions) Adj. EBITDA1 – CapEx ($ millions) Adjusted EBITDA1 margin Free Cash Flow Conversion2 $681 78% 77% 28% $668 $483 $473 25% 24% 71% 71% $513 23% $396 62% $329 $420 15% $314 $195 2016 2017 3 201
Slide 11: Tronox's Liquidity, Capital Expenditures & Free Cash Flow
Tronox’s Liquidity, Capital Expenditures & Free Cash Flow Liquidity and Capital Resources CapEx, Free Cash Flow, and Cash to Shareholders • Capital expenditures in the second quarter were $60 million, (US$ in millions) June 30, 2021 totaling $118 million year-to-date through Q2 Cash and cash equival
Slide 12: newTRON Overview
newTRON Overview WHAT IS newTRON? “Unleashing the power of our combined businesses and digital technology to deliver safe, quality, low-cost, sustainable tons with an enhanced customer experience and inspire our people to unlock shareholder value” WHY ARE WE DOING newTRON? Protect Margin Improve thr
Slide 13: Capital Allocation Strategy
Capital Allocation Strategy Strategic capital investments to reduce costs and increase EBITDA per ton De-lever to achieve gross debt target of $2.5 billion and net leverage ratio range of 2.0-3.0x EBITDA by 2023 Balance strategic investment flexibility and shareholder capital return through dividend
Slide 14: Appendix
Appendix TRONOX 2
Slide 15: Annual Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA and Free Cash Flow Conversion
Annual Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA (Non-U.S. GAAP) and Free Cash Flow Conversion (Non-U.S. GAAP) ($ millions) Year Ended December 31, 2016 2017 2018 2019 2020 Net income (loss) (U.S. GAAP) $ (58) $ (272) $ 30 $ 41 $ 995 Income from discontinued operations, net of t
Slide 16: Consolidated Statements of Operations (U.S. GAAP)
Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales $ 927 $ 578 $
Slide 17: 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 INCOME ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP) TO ADJUSTED NET INCOME ATTRIB
Slide 18: Consolidated Balance Sheets
TRONOX HOLDINGS PLC Consolidated Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) June 30, 2021 December 31, 2020 ASSETS Current Assets Cash and cash equivalents $ 303 $ 619 Restricted cash 4 29 Accounts receivable (net of a
Slide 19: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Six Months Ended June 30, 2021 2020 Cash Flows from Operating Activities: Net income $ 103 $ 36 Adjustments to reconcile net income to net cash provided by operating
Slide 20: Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP)
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) (a) Represents non-cash share-based compensation. Three Months Ended Six Mont
Slide 21: Free Cash Flow (NON-U.S. GAAP)
Free Cash Flow (NON-U.S. GAAP) TRONOX HOLDINGS PLC FREE CASH FLOW (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles cash used in operating activities to free cash flow for the six months ended June 30, 2021: Consolidated Cash provided by operating activities $ 345
Tronox Holdings — Jefferies Industrials Conference 2021 on 6ix