Valhi : 2025 Proxy Statement

About this update from Valhi, Inc.

VALHI, INC. Three Lincoln Centre 5430 LBJ Freeway, Suite 1700 Dallas, Texas 75240-2620 April 2, 2025 To Our Stockholders: You are cordially invited to attend the 2025 annual meeting of stockholders of Valhi, Inc., which will be held on Thursday, May 22, 2025, at 10:00 a.m., local time, at Three Lincoln Centre Conference Center, 5430 LBJ Freeway, Suite 350, Dallas, Texas 75240-2620. The matters to be acted upon at the meeting are described in the attached notice of annual meeting of stockholders and proxy statement. Whether or not you plan to attend the meeting, please cast your vote as instructed on your notice of internet availability of proxy materials or, if you have requested a paper copy, on the proxy card or voting instruction form, as promptly as possible to ensure that your shares are represented and voted in accordance with your wishes. Your vote, whether given by proxy or in person at the meeting, will be held in confidence by the inspector of election as provided in our bylaws. Sincerely, Loretta J. Feehan Chair of the Board Michael S. Simmons Vice Chairman of the Board, President and Chief Executive Officer VALHI, INC. Three Lincoln Centre 5430 LBJ Freeway, Suite 1700 Dallas, Texas 75240-2620 NOTICE OF ANNUAL MEETING OF STOCKHOLDERS To Be Held May 22, 2025 To the Stockholders of Valhi, Inc.: The 2025 annual meeting of stockholders of Valhi, Inc. will be held on Thursday, May 22, 2025, at 10:00 a.m., local time, at Three Lincoln Centre Conference Center, 5430 LBJ Freeway, Suite 350, Dallas, Texas 75240-2620, for the following purposes: to elect the seven director nominees named in the proxy statement to serve until the 2026 annual meeting of stockholders; to approve, on a nonbinding advisory basis, our named executive officer compensation; and to transact such other business as may properly come before the meeting or any adjournment or postponement thereof. The close of business on March 25, 2025, has been set as the record date for the meeting. Only holders of our common stock at the close of business on the record date are entitled to notice of and to vote at the meeting. A complete list of stockholders entitled to vote at the meeting will be available for examination during normal business hours by any of our stockholders, for purposes related to the meeting, for a period of ten days prior to the meeting at our corporate offices. You are cordially invited to attend the meeting. Whether or not you plan to attend the meeting, please cast your vote by following the instructions on the notice of internet availability of proxy materials or, if you have requested a paper copy, on the proxy card or voting instruction form, as promptly as possible to ensure that your shares are represented and voted in accordance with your wishes. By Order of the Board of Directors, Jane R. Grimm, Secretary Dallas, Texas April 2, 2025 Important Notice Regarding the Availability of Proxy Materials for the Annual Stockholder Meeting to Be Held on May 22, 2025. The proxy statement and annual report to stockholders (including Valhi's Annual Report on Form 10-K for the fiscal year ended December 31, 2024) are available at https://web.viewproxy.com/Valhi/2025 . TABLE OF CONTENTS TABLE OF CONTENTS Page i GLOSSARY OF TERMS ii GENERAL INFORMATION 1 QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING 1 CONTROLLING STOCKHOLDER 5 SECURITY OWNERSHIP 5 Ownership of Valhi 5 Ownership of Related Companies 6 PROPOSAL 1: ELECTION OF DIRECTORS 8 Nominees for Director 8 EXECUTIVE OFFICERS 10 CORPORATE GOVERNANCE 12 Controlled Company Status, Director Independence and Committees 12 2024 Meetings and Standing Committees of the Board of Directors 12 Audit Committee 12 Management Development and Compensation Committee 12 Risk Oversight 13 Identifying and Evaluating Director Nominees 13 Leadership Structure of the Board of Directors and Independent Director Meetings 14 Stockholder Proposals and Director Nominations for the 2026 Annual Meeting of Stockholders 14 Communications with Directors 14 Compensation Committee Interlocks and Insider Participation 15 Code of Business Conduct and Ethics 15 Corporate Governance Guidelines 15 Availability of Corporate Governance Documents 15 Insider Trading Policy 15 Employee, Officer and Director Hedging 15 COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS AND OTHER INFORMATION 16 Compensation Discussion and Analysis 16 Compensation Committee Report 18 Summary of Cash and Certain Other Compensation of Executive Officers 19 No Grants of Plan-Based Awards 20 No Outstanding Equity Awards at December 31, 2024 20 No Option Exercises or Stock Vested 20 Pension Benefits 20 Nonqualified Deferred Compensation 20 Pay Ratio Disclosure 21 Clawback Policy Analysis 21 Director Compensation 21 Pay Versus Performance 23 Compensation Policies and Practices as They Relate to Risk Management 25 Compensation Consultants 26 SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE 26 CERTAIN RELATIONSHIPS AND TRANSACTIONS 26 Related Party Transaction Policy 26 Relationships with Related Parties 27 Intercorporate Services Agreements 27 Risk Management Program 28 Tax Matters 29 Related Party Loans for Cash Management Purposes 30 Subordinated, Unsecured Term Loan from Contran to Kronos Worldwide 31 IT Data Services Program 31 Guarantees Provided by Valhi to Affiliates and Related Items 32 Office Sublease 32 AUDIT COMMITTEE REPORT 33 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM MATTERS 34 Independent Registered Public Accounting Firm 34 Fees Paid to PricewaterhouseCoopers LLP 34 Preapproval Policies and Procedures 35 PROPOSAL 2: NONBINDING ADVISORY RESOLUTION ON NAMED EXECUTIVE OFFICER 36 COMPENSATION 36 Background Say-on-Pay Proposal 36 Effect of the Proposal 36 Vote Required 36 OTHER MATTERS 37 2024 ANNUAL REPORT ON FORM 10-K 37 STOCKHOLDERS SHARING THE SAME ADDRESS 37 REQUEST COPIES OF THE 2024 ANNUAL REPORT AND THIS PROXY STATEMENT 37 -i- GLOSSARY OF TERMS " Alliance Advisors " means Alliance Advisors, LLC, our proxy management advisor who will act as inspector of election for the annual meeting of stockholders. " BMI " means Basic Management, Inc., a land management company that is a subsidiary of Tremont. " brokerage firm or other nominee " means a brokerage firm or other nominee such as a banking institution, custodian, trustee or fiduciary (other than our transfer agent, Computershare) through which a stockholder holds its shares of our common stock. " broker/nominee non-vote " means a non-vote by a brokerage firm or other nominee for shares held for a client's account for which the brokerage firm or other nominee does not have discretionary authority to vote on a particular matter and has not received instructions from the client. " Code " means the Internal Revenue Code of 1986, as amended. " Computershare " means Computershare Trust Company, N.A., our stock transfer agent and registrar. " CompX " means CompX International Inc., one of our publicly held subsidiaries that manufactures security products and recreational marine components. " Contran " means Contran Corporation, the parent corporation of our consolidated tax group. " Dixie Rice " means Dixie Rice Agricultural L.L.C., one of our parent companies. " Family Trust " means the Harold C. Simmons Family Trust No. 2, which was established for the benefit of Lisa K. Simmons and her late sister and their children. " independent directors " means the following directors: Thomas E. Barry, Terri L. Herrington, W. Hayden McIlroy, Gina A. Norris and Mary A. Tidlund, as applicable. " ISA " means an intercorporate services agreement between Contran and a related company pursuant to which employees of Contran provide certain services, including executive officer services, to such related company on an annual fixed fee basis. " Kronos Worldwide " means Kronos Worldwide, Inc., one of our publicly held subsidiaries that is an international manufacturer of titanium dioxide products. " LandWell " means The LandWell Company L.P., a real estate development company that is a subsidiary of Tremont. " LPC " means Louisiana Pigment Company, L.P., a wholly owned subsidiary of Kronos Worldwide, which prior to July 2024 was owned 50% by a wholly owned subsidiary of Kronos Worldwide and 50% by a subsidiary of Venator Materials PLC. " named executive officer " means any person named in the 2024 Summary Compensation Table in this proxy statement. " NL " means NL Industries, Inc., one of our publicly held subsidiaries that is a diversified holding company (i) of which CompX is a subsidiary and (ii) that holds a significant investment in Kronos Worldwide. " NLKW " means NLKW Holding, LLC, a wholly owned subsidiary of NL, which holds a significant equity interest in Kronos Worldwide. " NYSE " means the New York Stock Exchange. " PCAOB " means the Public Company Accounting Oversight Board, a private sector, non-profit corporation that oversees auditors of U.S. public companies. " PwC " means PricewaterhouseCoopers LLP, our independent registered public accounting firm. " record date " means the close of business on March 25, 2025, the date our board of directors set for the determination of stockholders entitled to notice of and to vote at the 2025 annual meeting of our stockholders. " RPT Policy " means the Valhi, Inc. Policy Regarding Related Party Transactions, as amended and restated effective March 3, 2022. " Say-on-Pay " means the second proposal in this proxy statement for a nonbinding advisory vote for the consideration of our stockholders to approve the compensation of our named executive officers as such proposal is described and as such compensation is disclosed in this proxy statement. " SEC " means the U.S. Securities and Exchange Commission. " Securities Exchange Act " means the Securities Exchange Act of 1934, as amended. " stockholder of record " means a stockholder of our common stock who holds shares in its name in certificate form or electronically with our transfer agent, Computershare. " Tall Pines " means Tall Pines Insurance Company, an indirect wholly owned captive insurance subsidiary of ours. " Tremont " means Tremont LLC, one of our wholly owned subsidiaries. " Valhi ," " us ," " we " or " our " means Valhi, Inc. -ii- VALHI, INC. Three Lincoln Centre 5430 LBJ Freeway, Suite 1700 Dallas, Texas 75240-2620 PROXY STATEMENT GENERAL INFORMATION We are providing this proxy statement in connection with the solicitation of proxies by and on behalf of our board of directors for use at our 2025 annual meeting of stockholders to be held on Thursday, May 22, 2025, and at any adjournment or postponement of the meeting. Holders of our common stock as of the close of business on March 25, 2025, are entitled to receive notice of and the right to vote at the annual meeting. We will begin distributing a notice of internet availability of our proxy materials to the holders of our common stock on or about April 8, 2025. Our proxy materials include: the accompanying notice of the 2025 annual meeting of stockholders; this proxy statement; our 2024 Annual Report to Stockholders, which includes our Annual Report on Form 10-K for the fiscal year ended December 31, 2024; and a proxy card or voting instruction form. We are not incorporating the 2024 annual report into this proxy statement, and you should not consider the annual report as proxy solicitation material. The accompanying notice of annual meeting of stockholders sets forth the time, place and purposes of the meeting. Our principal executive offices are located at Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2620. Please refer to the Glossary of Terms on page ii for the definitions of certain terms used in this proxy statement. QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING What is the purpose of the annual meeting? At the annual meeting, stockholders will vote on the following, as described in this proxy statement: Proposal 1 - the election of the seven director nominees named in this proxy statement; and Proposal 2 - the adoption of a nonbinding advisory resolution that approves the named executive officer compensation described in this proxy statement (Say-on-Pay). In addition, stockholders will vote on any other matter that may properly come before the meeting. How does the board recommend that I vote? The board of directors recommends that you vote FOR: the election of each of the nominees for director named in this proxy statement; and the approval and adoption of proposal 2 (Say-on-Pay). Who is allowed to vote at the annual meeting? The board of directors has set the close of business on March 25, 2025 as the record date for the determination of stockholders entitled to notice of and to vote at the meeting. Only holders of our common stock as of the close of business on the record date are entitled to vote at the meeting. On the record date, 28,294,793 shares of our common stock were issued and outstanding for voting purposes. Each share of our common stock entitles its holder to one vote. Why did I receive a notice regarding the internet availability of proxy materials instead of paper copies of the proxy materials? Pursuant to the SEC notice and access rules we furnish proxy materials over the internet to both our stockholders of record and our stockholders who hold our common stock through a brokerage firm or other nominee. We believe that taking advantage of these rules expedites our stockholders' receipt of proxy materials, while also lowering the costs associated with conducting our annual meeting. You can find instructions on how to access and review the proxy materials, and how to vote over the internet, on the notice of internet availability of proxy materials that you received. The notice also contains instructions on how you can receive a paper copy of this proxy statement, our 2024 Annual Report to Stockholders and a voting instruction form or proxy card. How do I vote if I am a stockholder of record? If you hold shares of our common stock in your name in certificate form or electronically with our transfer agent, Computershare, and not through a brokerage firm or other nominee, you are a stockholder of record. As a stockholder of record, you may: vote over the internet at www.AALvote.com/VHI ; vote by telephone using the voting procedures set forth on your proxy card; instruct the agents named on your proxy card how to vote your shares by completing, signing and mailing the proxy card in the envelope provided; or vote in person at the annual meeting. What are the consequences if I am a stockholder of record and I execute my proxy card but do not indicate how I would like my shares voted for one or more of the director nominees named in this proxy statement or proposal 2 (Say-on-Pay)? If you are a stockholder of record the agents named on your proxy card will vote your shares on such uninstructed nominee or proposal as recommended by the board of directors in this proxy statement. How do I vote if my shares are held through a brokerage firm or other nominee? If you hold your shares through a brokerage firm or other nominee, you must follow the instructions on your notice of internet availability of proxy materials or on your voting instruction form, on how to vote your shares. In order to ensure your brokerage firm or other nominee votes your shares in the manner you would like, you must provide voting instructions to your brokerage firm or other nominee by the deadline provided on your notice of internet availability of proxy materials or voting instruction form. Brokerage firms or other nominees may not vote your shares on the election of a director nominee or proposal 2 in the absence of your specific instructions as to how to vote. We encourage you to provide instructions to your brokerage firm or other nominee regarding the voting of your shares. If you do not instruct your brokerage firm or other nominee how to vote with respect to the election of a director nominee or proposal 2, your brokerage firm or other nominee may not vote with respect to the election of such director nominee or on proposal 2 and your vote will be counted as a "broker/nominee non-vote." "Broker/nominee non-votes" are non-votes by a brokerage firm or other nominee for shares held in a client's account for which the brokerage firm or other nominee does not have discretionary authority to vote on a particular matter and has not received instructions from the client. How we treat broker/nominee non-votes is separately described in -2- each of the answers below regarding what constitutes a quorum and the requisite votes necessary to elect a director nominee or approve proposal 2. If I hold my shares through a brokerage firm or other nominee, how may I vote in person at the annual meeting? If you wish to vote in person at the annual meeting, you will need to follow the instructions on your notice of internet availability of proxy materials or voting instruction form on how to obtain the appropriate documents to vote in person at the meeting. Who will count the votes? The board of directors has appointed Alliance Advisors to ascertain the number of shares represented, tabulate the vote and serve as inspector of election for the meeting. Is my vote confidential? Yes. All proxy cards, ballots or voting instructions will be kept confidential in accordance with our bylaws. How do I change or revoke my proxy instructions if I am a stockholder of record? If you are a stockholder of record, you may change or revoke your proxy instructions in any of the following ways: delivering to Alliance Advisors a written revocation; submitting another proxy card bearing a later date; changing your vote on www.AALvote.com/VHI ; using the telephone voting procedures set forth on your proxy card; or voting in person at the annual meeting. How do I change or revoke my voting instructions if my shares are held through a brokerage firm or other nominee? If your shares are held through a brokerage firm or other nominee, you must follow the instructions from your brokerage firm or other nominee on how to change or revoke your voting instructions or how to vote in person at the annual meeting. What constitutes a quorum? A quorum is the presence, in person or by proxy, of the holders of a majority of the outstanding shares of our common stock entitled to vote at the meeting. Shares that are voted "abstain" or "withheld" are counted as present and entitled to vote and are, therefore, included for purposes of determining whether a quorum is present at the annual meeting. As already discussed in the previous answer regarding how to vote shares held through a brokerage firm or other nominee, there are no proposals for the annual meeting that would allow a brokerage firm or nominee to vote uninstructed shares. If a brokerage firm or other nominee receives no instruction for the election of any director nominee and receives no instruction for proposal 2, such uninstructed shares will be counted as not entitled to vote and are, therefore, not considered for purposes of determining whether a quorum is present at the annual meeting. If a brokerage firm or other nominee receives instructions on the election of at least one director nominee or on proposal 2, such instructed shares will be counted as present and entitled to vote and are, therefore, included for purposes of determining whether a quorum is present at the annual meeting. -3- Dixie Rice directly held approximately 91.4% of the outstanding shares of our common stock as of the record date. Dixie Rice has indicated its intention to have its shares of our common stock represented at the meeting. If Dixie Rice attends the meeting in person or by proxy, the meeting will have a quorum present. Assuming a quorum is present, what vote is required to elect a director nominee? Under applicable state law and our governing documents, a plurality of affirmative votes of the holders of our outstanding shares of common stock represented and entitled to vote at the meeting is necessary to elect each director nominee. Our governing documents do not authorize cumulative voting. Accordingly, the seven candidates receiving the highest number of affirmative votes at the annual meeting will be elected as directors. Only shares that are voted in favor of a particular nominee will be counted toward that nominee's achievement of a plurality. There is no "against" option, and votes that are "withheld" or not cast, including broker/nominee non-votes, will not be counted toward that nominee's achievement of a plurality. Dixie Rice has indicated its intention to have its shares of our common stock represented at the meeting and to vote such shares FOR the election of each of the director nominees named in this proxy statement. If Dixie Rice attends the meeting in person or by proxy and votes as indicated, the stockholders will elect all of the nominees named in this proxy statement to the board of directors. Assuming a quorum is present, what vote is required to adopt and approve proposal 2 (Say-on-Pay)? The stockholder resolution contained in this proposal provides that the nonbinding affirmative vote of the holders of the majority of the outstanding shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will be the requisite vote to adopt the resolution and approve the compensation of our named executive officers as such compensation is disclosed in this proxy statement. Abstentions will be counted as represented and entitled to vote and will therefore have the effect of a negative vote. Broker/nominee non-votes will not be counted as entitled to vote and will have no effect on this proposal. Dixie Rice has indicated its intention to have its shares of our common stock represented at the meeting and to vote such shares FOR this nonbinding advisory proposal. If Dixie Rice attends the meeting in person or by proxy and votes as indicated, the stockholders will, by a nonbinding advisory vote, approve this proposal. Assuming a quorum is present, what vote is required to approve any other matter to come before the meeting? Except as applicable laws may otherwise provide, the approval of any other matter that may properly come before the meeting will require the affirmative votes of the holders of the majority of the outstanding shares represented and entitled to vote at the meeting. Abstentions will be counted as represented and entitled to vote and will therefore have the effect of a negative vote. If I am a stockholder of record, how will the agents named on my proxy card vote on any other matter to come before the meeting? If you are a stockholder of record and to the extent allowed by applicable law, the agents named on your proxy card will vote in their discretion on any other matter that may properly come before the meeting. Who will pay for the cost of soliciting the proxies? We will pay all expenses related to the solicitation, including charges for preparing, printing, assembling and distributing all materials delivered to stockholders. In addition to the solicitation by mail, our directors, officers and regular employees may solicit proxies by telephone or in person for which such persons will receive no additional compensation. Upon request, we will reimburse brokerage firms or other nominees for their reasonable out-of-pocket expenses incurred in distributing proxy materials and voting instruction forms to the beneficial owners of our common stock that hold such stock in accounts with such entities. -4- CONTROLLING STOCKHOLDER Dixie Rice is the direct holder of approximately 91.4% of the outstanding shares of our common stock as of the record date. Dixie Rice has indicated its intention to have its shares of our common stock represented at the meeting and to vote such shares FOR the election of each of the director nominees named in this proxy statement and FOR proposal 2. If Dixie Rice attends the meeting in person or by proxy and votes as indicated, the meeting will have a quorum present and the stockholders will elect all of the nominees named in this proxy statement to the board of directors and approve proposal 2. SECURITY OWNERSHIP Ownership of Valhi . The following table and footnotes set forth as of the record date the beneficial ownership, as defined by regulations of the SEC, of our common stock held by each individual, entity or group known to us to own beneficially more than 5% of the outstanding shares of our common stock, each of our directors, each of the named executive officers, and all of our current directors and executive officers as a group. See footnotes 3 and 4 below for information concerning the relationships of certain individuals and entities that may be deemed to own indirectly and beneficially more than 5% of the outstanding shares of our common stock. All information is taken from or based upon ownership filings made by such individuals or entities with the SEC or upon information provided by such individuals or entities. Valhi Common Stock (1) Amount and Nature of Percent of Name of Beneficial Owner Beneficial Ownership Class (2) 5% Stockholders Harold C. Simmons Family Trust No. 2 25,862,190 (3)(4) 91.4 % Lisa K. Simmons 25,862,190 (3)(4) 91.4 % Directors and Named Executive Officers Thomas E. Barry 10,282 (5) * Loretta J. Feehan 6,241 (5) * Terri L. Herrington 5,658 (5) * W. Hayden McIlroy 8,199 (5)(6) * Gina A. Norris 1,050 (5) * Michael S. Simmons -0-(5) -0- Mary A. Tidlund 5,991 (5) * Andrew B. Nace -0-(5) -0- Courtney J. Riley -0-(5) -0- Amy A. Samford 1,000 (5) * John A. Sunny -0-(5) -0- Current directors and executive officers as a group (17 persons) 41,171 (5) * * Less than 1%. Beneficial ownership as reported in the above table has been determined in accordance with Rule 13d-3 under the Securities Exchange Act, and is not necessarily indicative of beneficial ownership for any other purpose. Except as otherwise noted, the listed entities, individuals or group have sole investment power and sole voting power as to all shares set forth opposite their names. Except as noted in footnote 4 to this table, the business address for each listed person or entity is Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2620. The percentages set forth above and in the following footnotes are based on 28,294,793 shares of our common stock outstanding for voting purposes as of the record date. NL (including a wholly owned subsidiary of NL) and Kronos Worldwide own 1,197,746 shares and 143,743 shares, respectively, of our common stock. Since NL and Kronos Worldwide are majority owned subsidiaries of ours, pursuant to Delaware law we treat the -5- shares of our common stock that NL and Kronos Worldwide own as treasury stock for voting purposes. Pursuant to Section 13(d)(4) of the Securities Exchange Act, such shares are not deemed outstanding for the purposes of calculating the percentage ownership of the outstanding shares of our common stock as of the record date in this proxy statement. The shares reported in this table for the Family Trust and Ms. Simmons consist of the 25,862,190 shares of our common stock held directly by Dixie Rice. See footnote 4 to this table, below. The following is a description of certain related entities or persons that may be deemed to beneficially own outstanding shares of our common stock. A majority of Contran's outstanding voting stock is held directly by Ms. Simmons and by family stockholders (Thomas C. Connelly (the husband of Ms. Simmons' late sister), a family-owned entity and various family trusts established for the benefit of Ms. Simmons, Mr. Connelly and their children) who are required to vote their shares of Contran voting stock in the same manner as Ms. Simmons. Such voting rights are personal to Ms. Simmons and last through April 22, 2030. The remainder of Contran's outstanding voting stock is held by the Family Trust, for which Tolleson Private Bank, a third party financial institution, serves as trustee (the "Trustee"). Ms. Simmons can appoint qualifying successor trustees of the Family Trust if the Trustee resigns or otherwise decides not to serve as trustee. The business address of the Family Trust (and the Trustee) is 5550 Preston Road, Suite B, Dallas, Texas 75205. Ms. Simmons serves as chair of the board of directors of Contran, and two other members of Contran management also serve on the board of directors of Contran. Contran is the holder of the sole membership interest of Dixie Rice and may be deemed to control Dixie Rice. Ms. Simmons and the Family Trust are related to Valhi, which directly holds 82.7% of the outstanding shares of NL common stock. Ms. Simmons and the Family Trust are related to the following entities that directly hold the following percentages of the outstanding shares of Kronos Worldwide common stock: Valhi 50.4 % NLKW 30.6 % Contran Less than 1 % By virtue of the stock ownership of each of Kronos Worldwide, NL, Valhi, Dixie Rice and Contran, Ms. Simmons being a beneficiary of the Family Trust, the direct holdings of Contran voting stock by Ms. Simmons, the voting rights conferred to Ms. Simmons by a stockholders agreement relating to Contran stock, Ms. Simmons' position as chair of the Contran board, and the Family Trust's ownership of Contran voting stock, in each case as described above: Ms. Simmons and the Family Trust (and the Trustee, in its capacity as trustee of the Family Trust) may be deemed to control each of Contran, Dixie Rice, NL, Kronos Worldwide, CompX and us; and Ms. Simmons, the Family Trust (and the Trustee, in its capacity as trustee of the Family Trust), Contran, Dixie Rice, NL and Kronos Worldwide and we may be deemed to possess indirect beneficial ownership of shares of common stock directly held by such entities, including any shares of our common stock. Ms. Simmons disclaims beneficial ownership of all shares of our common stock except to the extent of her pecuniary interest in such shares, if any. The Family Trust (and the Trustee) disclaims beneficial ownership of all shares of our common stock except to the extent of its pecuniary interest in such shares, if any. Each of our directors or executive officers disclaims beneficial ownership of any shares of our common stock, except to the extent he or she has a pecuniary interest in such shares, if any. A family partnership of which Mr. McIlroy is a general partner holds 8,033 of these shares. We understand that Contran and related entities or persons may consider acquiring or disposing of shares of our common stock through open market or privately negotiated transactions, depending upon future developments, including, but not limited to, the availability and alternative uses of funds, the performance of our common stock in the market, an assessment of our business and prospects, financial and stock market conditions and other factors deemed relevant by such entities. We may similarly consider acquisitions of shares of our common stock and acquisitions or dispositions of securities issued by related entities. Ownership of Related Companies . Some of our directors and executive officers own equity securities of certain companies related to us. -6-

View stock analysis, news, and events for Valhi, Inc.