Tronox Holdings Plc · NYSE:TROX
Tronox — Q4 2024 Earnings Presentation
24 slides from Tronox's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full Year 2024 Conference Call
Fourth Quarter and Full Year 2024 Conference Call Tronox Holdings plc February 13, 2025 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 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 | © 2025 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: 2024 in Review
2024 in Review Enhanced focus on operations to drive cost improvements • Delivered solid fourth quarter results in line with expectations • Doubled down on safety efforts – reduced total recordables by 23% YoY • Avoided ~$17M in cost increases as a result of the conversion of ~40% of our power in So
Slide 5: Full Year 2024 Financial Highlights
Full Year 2024 Financial Highlights Improved volumes offset by unfavorable price / mix headwinds • Revenue increase driven primarily by higher volumes from 2024 2023 YoY % ∆ TiO2 and zircon, partly offset by unfavorable price/mix Revenue $ 3,074 $ 2,850 8% • Income from operations of $219M; Net Loss
Slide 6: Fourth Quarter 2024 Financial Highlights
Fourth Quarter 2024 Financial Highlights Fourth quarter performance in line with expectations Q4 ’24 Q4 ’23 YoY % ∆ Q3 ’24 QoQ % ∆ • Revenue decrease driven by lower average selling prices and unfavorable mix impact on TiO2 and zircon, and lower Revenue $ 676 $ 686 (1)% $ 804 (16)% sales volume from
Slide 7: Commercial Performance
Commercial Performance TiO2 volumes at high end of guided range; zircon volumes exceeded expectations Volume Q4’24 Q4 ’23 YoY % ∆ Q3’24 QoQ % ∆ • TiO2 volumes improved 4% YoY and declined 11% QoQ Revenue $ 676 $ 686 (1)% $ 804 (16)% – Demand stronger than expected in Asia Pacific and TiO2 533 519 3%
Slide 8: Operational Performance
Operational Performance Achieved significant production cost improvements Production Costs Q4 ’24 Q4 ’23 YoY % ∆ Q3 ’24 QoQ % ∆ • YoY: Improvement of $75M due to improved operating Adjusted EBITDA $ 129 $ 94 37% $ 143 (10) % performance driving favorable fixed cost absorption and non- Adjusted EBITD
Slide 9: Liquidity, Capital Expenditures & Cash Flow
Liquidity, Capital Expenditures & Cash Flow Strong balance sheet with ample liquidity • Total debt of $2.9B at the end of 2024; 4.8x net leverage • Total available liquidity of $578M as of December 31, 2024 on TTM basis – Includes $151M in cash and cash equivalents – Repriced 2024 term loan tranche
Slide 10: 2025 Capital Allocation Priorities
2025 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 – targeting
Slide 11: 2025 Outlook
2025 Outlook FY 2025E 2024 FY Actuals Low High Commentary Assumes TiO2 and zircon volumes increase; headwinds from non- Revenue $3.1B ~$3.0B ~$3.4B repeating “Other Products” sales in 2024 Anticipate 2H to be stronger than 1H; Non-repeating idle facility charges Adjusted EBITDA $564M ~$525M ~$625M a
Slide 12: Tronox's New Business Strategy
Tronox’s New Business Strategy BY LIVING OUR VALUES, WE WILL: Purpose Be the best at Grow our Why we exist what we do. future. Foster a high-performance culture in Build on our current offering by We responsibly transform the earth’s resources which we strive for zero harm and strategically aligning
Slide 13: Tronox's Cost Improvement Program $125-175M
Tronox’s Cost Improvement Program Focused on enhancing cost efficiency and optimizing asset performance across all aspects of our business to be the best at what we do Targeted Actions: Leveraging Operational Excellence $125-175M sustainable, run-rate cost Harnessing Technology to Drive Efficien
Slide 14: Q&A Session
Q&A Session Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 14
Slide 15: Appendix
Appendix Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 15
Slide 16: Tronox – A Diversified, Vertically Integrated Titanium Industry Leader
Tronox – A Diversified, Vertically Integrated Titanium Industry Leader TROX $3.1B $564M 85% ~6,500 ~1,200 NYSE 2024 Revenue 2024 Adj. EBITDA Feedstock Integration1 Global Employees Customers • Vertically integrated mining and inorganic chemical Sales by Sales by TiO2 Sales Volume company Region2 Pro
Slide 17: Tronox's Sustainability Goals & Targets
Tronox’s Sustainability 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 2050
Slide 18: 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 19: Consolidated Statements of Operations (U.S. GAAP)
Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net sales $ 676 $ 686 $ 3,074 $
Slide 20: 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 INCOME (LOSS) A
Slide 21: Consolidated Balance Sheets
TRONOX HOLDINGS PLC Consolidated Balance Sheets CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) December 31, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 151 $ 273 Restricted cash 1 — Accounts receivable (net of allowanc
Slide 22: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows TRONOX HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Year Ended December 31, 2024 2023 Cash Flows from Operating Activities: Net (loss) income $ (54) $ (314) Adjustments to reconcile net (loss) income to net cash provi
Slide 23: 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 MONTH ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Th
Slide 24: 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 months and year ended December 31, 2024: Year Ended Nine Months Ended Three Mo