Slide 1: Citi Basic Materials Conference
Citi Basic Materials Conference November 28, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 of 1995. These forward-looking statements, which are subject to known and unknown risks,
Slide 3: Strong Performance - Strategically, Financially and Operationally
Strong Performance - Strategically, Financially and Operationally 3Q17 TiO2: Revenue +28%, Adj. EBITDA +79%, Adj EBITDA margin 31%; FCF $120m Sale of Alkali Chemicals for $1.325 billion Shareholder approval received to issue 37.58 million Class A Shares to Cristal Refinancing lowered cost of d
Slide 4: Tronox-Cristal Investment Highlights
Tronox-Cristal Investment Highlights 1 • Largest TiO2 production base with ~18% of industry capacity in 2016 Creates Largest Global • Global footprint with 11 TiO2 plants and 8 mineral sands facilities TiO2 Producer on 6 continents • Increased exposure to faster-growing emerging markets 2 • Large sc
Slide 5: Global Footprint
Global Footprint Stallingborough Botlek Thann Fuzhou UK the Netherlands France China Ashtabula 1 & 2 Capacity: 165 kMT Capacity: 90 kMT Capacity: 32 kMT Capacity: 46 kMT USA Capacity: 245 kMT Stamford USA Corporate Offices Snapper Australia Yanbu Hamilton KSA USA Capacity: 200 kMT Ginkgo Capacity: 2
Slide 6: Benefits of Integration
Benefits of Integration • Guaranteed demand from 11 TiO2 pigment plants enables smelting operations to run at Mineral Sands consistently high utilization rates and at low cost Can Maintain Consistently High • Low-cost position generates strong cash flow with reduced volatility Operating Rates • No l
Slide 7: Highly Synergistic Combination
Highly Synergistic Combination Components of Anticipated Synergies (1) One-time Costs to Achieve (1) ($ millions) ($ millions) ~$60 ~$230 Logistics Supply Chain Feedstock SG&A ~$30 ~$200 ~$20 ~$25 Operations ~$2 ~$160 Q4 17E 2018E 2019E 2020E 2021E Capex P&L Sources of Synergies ~$100 • Full utiliza
Slide 8: Pro Forma Tronox Overview
Pro Forma Tronox Overview New TiO2 Nameplate 465 kMT 858 kMT 1,323 kMT Capacity 220 400 180 Long Short 1,340 Short Feedstock 1,160 750 810 Balance 530 410 (kMT, TiO2 units) Demand Supply Demand Supply Demand Supply Pro Forma Sales $3,578 Annualized $2,034 ($ millions) $1,598 1H 2017 Run-rate 1H 2017
Slide 9: Free Cash Flow and Deleveraging Profile
Free Cash Flow and Deleveraging Profile Pro Forma EBITDA Strong EBITDA growth driven by multiple levers + Synergies Sizeable and achievable synergies from Cristal merger _ Refinancing lowered overall cost of debt and provided Interest additional pay down flexibility _ Taxes Leverage significant tax
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Capital expenditures to support business growth and debottleneck operations Reduce debt with target net leverage ratio range of 2.0-3.0x EBITDA Balance strategic investment flexibility and shareholder capital return 9
Slide 11: Q&A Session
TRONOX Q&A Session www.tronox.com
Slide 12: Appendix
TRONOX Appendix www.tronox.com
Slide 13: TiO2 Value Chain
TiO2 Value Chain Feedstock TiO2 Pigments Markets Natural Rutile Chloride •Higher Feedstock Costs •Lower Processing Costs Paints and Process Coatings Leucoxene •Environmentally Friendly Titanium- Bearing Mineral Synthetic Rutile Plastics Sands Ilmenite •Lower Feedstock Costs Sulfate •Higher Processin
Slide 14: Reconciliation of Non-U.S. GAAP Financial Measures
Reconciliation of Non-U.S. GAAP Financial Measures TRONOX LIMITED (UNAUDITED) (Millions of U.S. dollars, except share and per share data) RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO TRONOX LIMITED (U.S. GAAP) TO ADJUSTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TRONOX LIM
Slide 15: Condensed Statement of Free Cash Flows (non-U.S. GAAP)
Condensed Statement of Free Cash Flows (non-U.S. GAAP) TRONOX LIMITED CONDENSED STATEMENT OF FREE CASH FLOWS (UNAUDITED) (Millions of dollars, except share and per share data) Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 TiO2 Corporate Consolidated TiO2 Corporate Consol
Slide 16: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (non-U.S. GAAP)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (non-U.S. GAAP) TRONOX LIMITED RECONCILIATION OF NET INCOME (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, 2017 2016 2017 20
Slide 17: Reconciliation of Net Income (Loss) to Adjusted EBITDA (non-U.S. GAAP)
Reconciliation of Net Income (Loss) to Adjusted EBITDA (non-U.S. GAAP) TRONOX LIMITED RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) The following table reconciles income (loss) from operations, the comparable measure for segm