Tronox Holdings Plc · NYSE:TROX
Tronox — Q3 2024 Earnings Presentation
23 slides from Tronox's earnings presentation, Oct 25, 2024
Slide 1: Third Quarter 2024 Conference Call
Third Quarter 2024 Conference Call Tronox Holdings plc October 25, 2024 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 1
Slide 2: Presenters
Presenters John Romano John Srivisal Chief Executive Officer Senior Vice President, Chief Financial Officer Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 2
Slide 3: 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 4: Tronox – A Diversified, Vertically Integrated Titanium Industry Leader
Tronox – A Diversified, Vertically Integrated Titanium Industry Leader TROX $2.9B $524M 85% ~6,500 ~1,200 NYSE 2023 Revenue 2023 Adj. EBITDA Feedstock Integration1 Global Employees Customers • Vertically integrated mining and inorganic chemical Sales by Sales by TiO2 Sales Volume company Region2 Pro
Slide 5: Key Messages from the Quarter
Key Messages from the Quarter Lower market demand drove results below guidance • TiO2 sales volumes continued recovery over 2023 levels, Q3 increase of 12% YoY or a decrease of 7% QoQ (outside the guided range of 2-4% decline versus Q2) – North America and Latin America met expectations, demand in E
Slide 6: Third Quarter 2024 Financial Highlights
Third Quarter 2024 Financial Highlights Q3 ’24 Q3 ’23 YoY % ∆ Q2 ’24 QoQ % ∆ • Revenue increase primarily driven by higher sales Revenue $ 804 $ 662 21% $ 820 (2)% volumes from TiO2, zircon and other products • Income from operations of $54M; Net Loss attributable Income from Operations $ 54 $ 32 69
Slide 7: Commercial Performance
Commercial Performance Continued recovery from 2023 trough levels Price/Mix Q3’24 Q3 ’23 YoY % ∆ Q2 ’24 QoQ % ∆ • TiO2 pricing improved 1% QoQ due to increases in regions Revenue $ 804 $ 662 21% $ 820 (2)% where pricing declined more in recent quarters TiO2 616 558 10% 653 (6)% • Zircon product mix
Slide 8: Operational Performance
Operational Performance Achieved Q3 average utilization targets Production Costs Q3 ’24 Q3 ’23 YoY % ∆ Q2 ’24 QoQ % ∆ • YoY: Improvement of $3M driven by improved operating Adjusted EBITDA $ 143 $ 116 23% $ 161 (11) % performance which drove favorable fixed cost absorption and Adjusted EBITDA margin
Slide 9: Liquidity, Capital Expenditures & Free Cash Flow
Liquidity, Capital Expenditures & Free Cash Flow Balance sheet remains strong • Total debt at the end of Q3 2024 of $2.8B; 5.0x net • Total available liquidity of $668M as of September 30, leverage on TTM basis 2024 – Refinanced existing TL due March 2029 with a new 7- – Includes $167M in cash and c
Slide 10: 2024 From Tronox's View
2024 From Tronox’s View Market Operations Growth • Demand across TiO2 and zircon • Achieved Q3 operating rates in • R&D efforts remain focused on has improved significantly the ~80% range as targeted product and process innovations compared to 2023 to enhance profitability • Expect operating rates t
Slide 11: Outlook
Outlook Q1 ’24A Q2 ’24A Q3 ’24A Q4 ’24E Full Year Uses of Cash FY 2024E ↓10-15% / TiO2 Volume QoQ / YoY 18% / 18% 8% / 16% (7%) / 12% Net Cash Interest Expense ~$140M Flat to ↑MSD Flat to slightly Net Cash Taxes ~$5M Zircon Volume QoQ / YoY 54% / 43% (4)% / 4% (12%) / 134% down / ↑ DD Working Capita
Slide 12: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities Our capital allocation strategy remains unchanged 1 Investing in projects that are critical to furthering our strategy and driving value from our vertically integrated portfolio 2 Bolstering our liquidity and as the market recovers, resume debt paydown 3 Maintainin
Slide 13: Q&A Session
Q&A Session Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 13
Slide 14: Appendix
Appendix © 2024 Tronox Holdings plc | All rights reserved. | tronox.com 14
Slide 15: 2023 Sustainability Report Goals & Targets
2023 Sustainability Report Goals & Targets ACHIEVE NET ZERO REDUCE SCOPE 3 ZERO WASTE TO ACHIEVE ZERO HARM BY FOSTER AND BUILD A BY 2050 EMISSIONS IN OUR EXTERNAL DEDICATED BUILDING CAPACITY IN WORKPLACE THAT SUPPLY CHAIN LANDFILLS OUR PEOPLE, PLANTS REFLECTS THE AND PROCESSES COMMUNITIES IN WHICH 2
Slide 16: Key Capital Projects to Sustain Vertical Integration
Key Capital Projects to Sustain Vertical Integration Fairbreeze Expansion Project Namakwa East OFS Project Life of mine finished Life of mine finished products: ~4,700kt products: ~6,480kt ilmenite, ~610kt zircon, ilmenite, ~935kt zircon, and ~325kt rutile and ~490kt rutile • South African mining pr
Slide 17: 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net sales $ 8
Slide 18: 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 ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP) TO ADJUSTED NET (LOSS) INCOME A
Slide 19: 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) September 30, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 167 $ 273 Restricted cash 1 — Accounts receivable (net
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Nine Months Ended September 30, 2024 2023 Cash Flows from Operating Activities: Net loss $ (24) $ (258) Adjustments to reconcile net loss to net cash provided by ope
Slide 21: Reconciliation of Net Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP)
Reconciliation of Net Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA, ADJUSTED EBITDA AS A % OF NET SALES AND NET DEBT TO TRAILING-TWELVE MONTHS ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) T
Slide 22: 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 provided by operating activities to free cash flow for the three and nine months ended September 30, 2024: Nine Months Ended Six Months Ended T
Slide 23: Reconciliation of Trailing Twelve Month Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Trailing Twelve Month Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF TRAILING TWELVE MONTH NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended Trailing Twelv