Venator Materials Plc · OTC:VNTRF
Venator Materials — Q3 2022 Earnings Presentation
16 slides from Venator Materials's earnings presentation, Nov 14, 2022
Slide 1: Third Quarter 2022 Results Presentation
Third Quarter 2022 Results Presentation November 14, 2022
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters 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 statemen
Slide 3: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Financial summary $ in millions, except per share amounts 3Q22 3Q21 2Q22 Revenues 506 557 642 Net (loss) income attributable to Venator (50) (47) 93 Adjusted net (loss) income attributable to Venator(1) (36) 3 14 Adjusted EBITDA(1) (8) 48 61 Diluted (loss) earnings per
Slide 4: Titanium Dioxide
Titanium Dioxide EBITDA decrease driven by demand decline Revenues Adjusted EBITDA $ in millions $ in millions 600 60 $54 55 $49 $486 50 500 13% $430 45 40 400 $361 35 30 10% 300 25 20 200 15 10 5 $(5) 100 0 -5 0 -10 NM 3Q22 3Q21 2Q22 3Q22 3Q21 2Q22 Titanium Dioxide Adjusted EBITDA margin Third Quar
Slide 5: Performance Additives
Performance Additives Strong year on year improvement Revenues(a) Adjusted EBITDA(a) $ in millions $ in millions $156 20 $19 18% $145 19 18 16% $127 17 16 14% 15 14 12% 13 12 12% 11 10% 10 $9 9 8% 8 7 $5 6% 6 5 6% 4% 4 3 4% 2 2% 1 0 0% 3Q22 3Q21 2Q22 3Q22 3Q21 2Q22 Performance Additives Adjusted EBI
Slide 6: Targeting $50 million Cost Reduction Program
Targeting $50 million Cost Reduction Program Taking strong actions to reduce our cost structure $ in millions Cost Reduction Program Cost Reduction (1) $50mm Reduction in SG&A costs to align structure to the operational business Reduction in manufacturing fixed costs Manufacturing improvement
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Third Quarter 2022 $ in millions Q/Q Y/Y 7 See Appendix for reconciliations and important explanatory notes
Slide 8: Cash Flow Considerations
Cash Flow Considerations Adequate liquidity $ in millions Free Cash Flow 3Q22 Cash provided by operating activities (74) Capital expenditures (16) Total free cash flow (90) Liquidity and Debt Other Cash Flow Considerations Total liquidity(a) of $278mm as of September 30, 2022 Expected 2022 capit
Slide 9: Strategic Value Creation
Strategic Value Creation Near Term Priorities Operational Cost Reduction Liquidity Optimization Underpinned by Long Term Focus Focus on Customer- Enhance Improve Environmental specialty & tailored competitive free cash flow Social differentiated approach position generation Governance products 9
Slide 10: Appendix
VENATOF Appendix
Slide 11: Pro Forma Adj. EBITDA Reconciliation
Pro Forma Adj. EBITDA Reconciliation $ in millions 2017 2018 2019 2020 2021 3Q22 3Q22 LTM Net (Loss) / Income $ 144 $ (157) $ (170) $ (105) $ (74) $ (48) $ 60 Net income attributable to noncontrolling interests (10) (6) (5) (7) (3) (2) (6) Net income of discontinued operations (8) – – – – – – Intere
Slide 12: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 12
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 13
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 14
Slide 15: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures See Appendix for reconciliations and important explanatory notes 15
Slide 16: Footnotes
Footnotes (1) Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income/loss before interest income/expense, net, income tax expense/benefit, depreciation and amortization, and net income attributable to noncontrolling interests, as well as elimina