Tronox Holdings plc · NYSE:TROX
Tronox — BB&T Manufacturing & Materials Conference 2007
21 slides from Tronox's conference presentation, Mar 28, 2007
Slide 1: Tronox - BB&T Manufacturing & Materials Conference
TRONOX BB&T Manufacturing & Materials Conference March 22, 2007
Slide 2: Forward-Looking Statement
Forward-Looking Statement Tronox makes certain forward-looking statements in this presentation that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management and on information currently available to our management at the time of such stateme
Slide 3: Tronox Incorporated Snapshot
Tronox Incorporated Snapshot NYSE Listed: TRX, TRX.B 40 Years Operating Experience Market Capitalization: $620MM Debt: $549MM 2006 Sales Revenue: $1.4 Billion Primary Product: Titanium Dioxide (TiO2) 3rd largest global producer Electrolytic Chemicals Manganese dioxide Sodium chlorate Boron Headquart
Slide 4: TiO2 Pigment Quality-of-Life Product, No Effective Substitutes
TiO2 Pigment Quality-of-Life Product, No Effective Substitutes Unsurpassed Opacifying and Whitening Properties Paints & coatings, plastics, paper, consumer products and specialties Semi-specialty, differentiated and frequently customized customized customized customized customized customized customi
Slide 5: Global Producer / Strong Leadership Position
DuPont Millennium Tronox Huntsman Kronos Others East 0.2 0.13 0.12 0.1 0.1 0.35 Global Producer / Strong Leadership Position Highly Concentrated Industry - Top 5 Producers Account for ~65% of Global Production #3 global producer; #2 using higher-growth chloride-process technology Leading Supplier to
Slide 6: TiO2 Capacity Trends
TiO2 Capacity Trends CAGR 5% 1% Capacity Growth Rates Source: Company Estimates Chloride Proprietary technology Less labor and energy intensive Less waste 55% of global capacity Sulfate Readily available technology Labor and energy intensive More waste 45% of global capacity CAGR 5% 1% 1990 1991 199
Slide 7: Tronox Stand-Alone Focus
Tronox Stand-Alone Focus Little or No Focus on Cash Volume Oriented Grow Through Acquisition Lack of Capital Discipline Retain Stranded Assets Focus on Cash Market Segmentation Extract More From Existing Assets Capital Discipline Monetize Stranded Assets KM Chemical Tronox
Slide 8: Strategic Focus
Strategic Focus Move Tronox to Top-Quartile Performance Project Cornerstone Focus on Growth 3% per year Brownfield expansion to service high-growth Asian market Reduce Debt to Cap: Target = 35% - 40% Exploring opportunities to optimize value of Uerdingen plant Land sales Excess free cash flow Evalua
Slide 9: Project Cornerstone Execution
Project Cornerstone Execution Land Sales & Capital Program Inventory, Receivables & Payables Program * Does not include BMI land formerly contracted to Centex Status Summary Teams on track or ahead of schedule Remain committed to achieving target Realizing benefits 89 119 109 99 129 139 Cash Cost Re
Slide 10: TiO2 Global Demand
TiO2 Global Demand 4.9 MM Tonnes Americas Europe Asia/Pacific East 0.018 0.027 0.043 World Wide TiO2 Sales 0.029 0.029 0.029 Worldwide Average 2.9% Americas Europe Asia/Pacific East 0.3 0.35 0.35 2006 TiO2 Global Demand 5-Year Forward Growth Rates Source: Company Estimates
Slide 11: TiO2 Consumption
TiO2 Consumption Source: Company Estimates and U.S. Government Population Statistics
Slide 12: Global TiO2 Manufacturing Operations
Location M Tonnes Hamilton 225 Savannah 110 Western Australia 110 Botlek 90 Uerdingen (Sulfate) 107 Global Capacity 642 Global TiO2 Manufacturing Operations Nameplate Capacity (1) (1) Reflects 100% of the production capacity of the Kwinana pigment plant, which is 50% owned by Tronox and 50% by the j
Slide 13: Integrated Western Australia Operations
Integrated Western Australia Operations Integrated Western Australia Operations Chandala Synthetic Rutile Facility Cooljarloo Mine Kwinana Pigment Facility
Slide 14: European Production
European Production Uerdingen, Germany Sulfate Process World-Class Facility New HIF Process Annual Capacity = 107,000 MT Botlek, Netherlands Chloride Process Improved Uptime, Debottlenecking New Capacity Rating = 90,000 MT
Slide 15: Financial Highlights: Land Sales Programs
Financial Highlights Land Sales Programs Henderson, Nevada 2,200-acre development Tronox 100% owned land ~150 acres LandWell Company participation Tronox U.S. portfolio $250MM Target Over 3-5 Years on Track Cornerstone Target Achieved for 2006 2,200-Acre Development Tronox Net Equity Share 30% Trono
Slide 16: Financial Items
Financial Items Financial Items ($MM) 4Q 2006 FY 2006 2007 Outlook Cash Flow Provided by Operating Activities $49 $112 Interest Expense $13 $50 $48 to $52 Capital Expenditures $18 $90 $81 Effective Tax Rate 23% 48% 36% to 40%
Slide 17: Financial Items
Financial Items Financial Items ($MM) 4Q 2006 FY 2006 2007 Outlook SG&A Expense $29 $119 $125 to $129* *2007 Outlook Includes Employee Cash Incentive Program
Slide 18: Environmental Matters
Environmental Matters Environmental Items ($MM) FY 2006 2007 Outlook Gross Spend $57 Reimbursements $38* Net Cash Spend $19 $40 to $45 As of 12/31/06: Financial Reserves = $224MM Receivables For Reimbursements = $71MM Excludes anticipated future receivables of $41MM from DOE for West Chicago * Inclu
Slide 19: Legacy Sites Financial Summary
Legacy Sites Financial Summary ($MM) Historical Cash Spend 2001 2002 2003 2004 2005 2006 2007 (1) Additions to the reserves may be required as additional information is obtained that enables Tronox to better estimate its liabilities, including any liabilities at sites now under review. $40-45 Estima
Slide 20: TiO2 Supply / Demand
TiO2 Supply / Demand Supply / Demand is Tight 2007 Will be the Lowest Supply to Demand Ratio in Two Decades Capacity Rationalization of 218 MT or 11% of Sulfate Capacity Since 2001 Major Brown / Greenfield Efforts Needed Pre-2009 From 2005 to 2010, Minimum of 200 MT Needed Assuming 95% Capacity Util
Slide 21: Tronox
TRONOX BB&T Manufacturing & Materials Conference March 22, 2007
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