Venator Materials Plc · OTC:VNTRF
Venator Materials — Q2 2019 Earnings Presentation
15 slides from Venator Materials's earnings presentation, Aug 6, 2019
Slide 1: Second Quarter 2019 Results Presentation
Second Quarter 2019 Results Presentation August 6, 2019
Slide 2: General Disclosure
General Disclosure This presentation includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning our pla
Slide 3: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights Financial summary $ in millions, except per share amounts 2Q19 2Q18 1Q19 Revenues 578 626 562 Net income (loss) attributable to Venator 21 196 (3) Adjusted net income attributable to Venator 14 91 14 Adjusted EBITDA 61 157 60 Diluted earnings (loss) per share 0.20 1.84
Slide 4: Titanium Dioxide
Titanium Dioxide Stable sequential TiO2 price and a seasonal volume improvement Revenues Adjusted EBITDA $ in millions $ in millions 500 165 $455 160 155 $147 $439 150 145 450 $425 140 135 $23 130 125 120 115 400 110 105 100 95 90 22% (2) 85 27% 350 80 75 70 65 $55 $61 300 60 55 50 45 40 35 250 30 2
Slide 5: Performance Additives
Performance Additives Softer demand partially offset by restructuring benefits Revenues Adjusted EBITDA $ in millions $ in millions 200 195 190 185 25 $23 180 $171 175 170 165 160 155 150 $139 $137 20 145 140 135 130 $16 125 120 $15 115 110 15 105 100 13% 95 90 12% 85 80 11% 75 70 10 65 60 55 50 45
Slide 6: Delivery on Business Improvement Program
Delivery on Business Improvement Program Expect to deliver ~$40mm annual EBITDA benefit Expected Annual EBITDA Capture Areas of EBITDA Improvement $ in millions $ in millions $40 ~$30 >$10 2019 2020 TiO2 efficiencies Performance SG&A reduction EBITDA Additives costs Improvement and improvements 2019
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Second Quarter 2019 Year / Year EBITDA Bridge $ in millions $157 $23(1) $(64) $134 $7 $(18) $4 $61 $(6) $4 2Q18 Adjusted Price/Mix Volume COGS Carbon Credit 2019 Business SGA / FX 2Q19 Adjusted EBITDA Improvement EBITDA Program Quarter / Quarter EBITDA Bridge $ in millions $6
Slide 8: Capital Resources
Capital Resources Sequential moderation in cash uses in the second quarter Actual Estimate Financial profile $ in millions Cash Uses 2Q19 YTD 2019E Liquidity of $307mm as of June 30, 2019 – $50mm of cash and $257mm available under the Adjusted EBITDA 61 121 ABL Capital expenditures(1) (20) (48) (1
Slide 9: Summary
Summary Stable sequential TiO2 pricing and seasonally higher volumes Second Quarter Headlines Average TiO2 selling price was flat compared to the prior quarter TiO2 volumes increased due to sales of new products and higher availability of certain products Specialty TiO2 volumes and price remai
Slide 10: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q18 2Q19 2Q19LTM Net (loss) Income $ (162) $ (352) $ (77) $ 144 $ (157) $ 198 $ 22 $ (415) Net income attributable to noncontrolling interests (2) (7) (10) (10) (6) (2) (1) (4) Net income of discontinued
Slide 11: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 11
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 12
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 13
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures 14
Slide 15: Explanatory Notes
Explanatory Notes (1) Cost of goods sold for the three month period ended June 30, 2019 increased by $318 million from the same period in the prior year primarily as a result of the recognition of $325 million of insurance proceeds which was an offset to cost of goods sold in 2018. (2) Our managemen