Venator Materials Plc · OTC:VNTRF
Venator Materials — Q1 2018 Earnings Presentation
15 slides from Venator Materials's earnings presentation, May 1, 2018
Slide 1: First Quarter 2018 Results Presentation
First Quarter 2018 Results Presentation May 1, 2018
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: First Quarter Highlights
First Quarter Highlights Financial summary $ in millions, except per share amounts 1Q18 1Q17 4Q17 Revenues $622 $537 $528 Net income (loss) attributable to Venator 78 (16) 68 Adjusted EBITDA 157 49 118 Diluted earnings (loss) per share 0.73 (0.15) 0.64 Adjusted diluted earnings (loss) per share 0.85
Slide 4: Titanium Dioxide
Titanium Dioxide Strong sequential EBITDA growth Revenues Adjusted EBITDA $ in millions $ in millions 500 $456 Y/Y +18% Q/Q +18% $143 Y/Y +198% Q/Q +20% 450 $385 $387 $119 400 350 300 29% 250 31% 200 $48 31% 150 100 12% 50 0 1Q18 1Q17 4Q17 1Q18 1Q17 4Q17 Titanium Dioxide Adjusted EBITDA margin First
Slide 5: Performance Additives
Performance Additives Improving EBITDA profile Revenues Adjusted EBITDA $ in millions $ in millions Y/Y +14% Y/Y +9% Q/Q +18% $24 Q/Q +60% $166 $21 $152 $141 $15 14% 15% 11% 1Q18 1Q17 4Q17 1Q18 1Q17 4Q17 Performance Additives Adjusted EBITDA margin First Quarter Highlights Outlook Second Quarter Y/Y
Slide 6: $90 Million EBITDA Improvement Program
$90 Million EBITDA Improvement Program $10 million of EBITDA benefit captured in 1Q18 Expected Run-rate Improvement Expected Annual EBITDA Capture $ in millions $ in millions $30 $30 $90 $30 $24 Facilities closures Fixed costs Volume EBITDA 2017 2018F 2019F Improvement Actual Budget Business Improve
Slide 7: Pori, Finland Update
Pori, Finland Update Estimated self-funded costs remain consistent with prior guidance We continue to make progress on the construction phase of the rebuild Our estimates for self-funding of the reconstruction and commissioning of Pori remain within the range of our previous guidance of $325 - $375
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges First quarter 2018 1Q18 / 1Q17 $ in millions $148 $2 $(61) $200 $157 $9 $10 $150 $100 $49 $50 $0 (1) (1) 1Q17 Adjusted Price/Mix Volume Costs Business FX/Other 1Q18 Adjusted EBITDA Improvement EBITDA Program 1Q18 / 4Q17 $ in millions $200 $(31) $157 $18 $41 $10 $1 $118 $150 $
Slide 9: Financial Profile
Financial Profile Attractive position $ in millions Net Debt Tax Rate Comment $519 $529 Liquidity of $486mm as of March 31, 2018 $(238) $(223) – $223mm cash 15-20% 19% – $263mm available of ABL borrowing base 1.3x (1) 1.1x (1) Received $236mm (€191mm) of insurance proceeds on April 13, 2018 $757 $75
Slide 10: Opportunistic Strategic Transactions
Cash Uses We expect to generate >$200 million of operating FCF in 2018 before Pori $ in millions Cash Uses 1Q18 2018E Adjusted EBITDA $157 Priority of Cash Uses 1. Earnings Growth Capital expenditures(1) (20) ~$(120) Opportunistic Strategic Transactions ̶ Pori reconstruction Cash interest (19) ~(35)
Slide 11: Summary
Summary First Quarter Headlines Strong TiO2 pricing momentum and seasonal volume improvement Generated $23 million of operational free cash flow excluding the impact of Pori Captured $10 million of incremental EBITDA benefit from ongoing Business Improvement Program Received remaining $236 million (
Slide 12: Appendix
VENATOF Appendix
Slide 13: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) (2) (1) EBITDA Benefit Net Income (Loss) Per Share Three months ended Three months ended Three months ended Three months ended March 31, March 31, March 31, March 31, In millions, except per share amounts 2
Slide 14: Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliation of U.S. GAAP to Non-GAAP Measures Income Tax (Expense) Diluted Earnings (Loss) (2) (1) EBITDA Benefit Net Income (Loss) Per Share Three months ended Three months ended Three months ended Three months ended December 31, December 31, December 31, December 31, In millions, except per sha
Slide 15: Explanatory Notes
Explanatory Notes (1) Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax (benefit) from continuing operations, depreciation and amortization, and net income attributable to non-controlling interests