EX-99.2 4 ex99_2.htm EXHIBIT 99.2

Exhibit 99.2

 1  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 2  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com  Safe Harbor Statement and Non-U.S. GAAP Financial Terms  Statements in this presentation that are not historical are forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These and other risk factors are discussed in the company's filings with the Securities and Exchange Commission (SEC), including those under the heading entitled “Risk Factors" in our Annual Report on Form 10-K/A for the year ended December 31, 2018.Specifically, there can be no assurance that we will be able to integrate Cristal’s TiO2 business and realize any expected synergies or achieve any expected financial or other results of the acquisition.  Our estimates related to Cristal’s financial results may not be accurate and they and other pro forma measures may not be indicative of future performance.  Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information or future developments.With respect to Tronox’s historical results of operation, this presentation contains a reference to adjusted EBITDA for FY2018, a non-U.S. GAAP financial term that we use in the management of our business.  Reconciliation to its nearest U.S. GAAP term is provided in the Appendix of this presentation.  This presentation also contains estimates of Cristal’s FY2018 adjusted EBITDA and estimates of the combined entities FY2018 adjusted EBITDA, including with synergies.  Since all of these numbers are estimates we do not provide reconciliations to their nearest U.S. GAAP terms.   
 

   3  World’s largest vertically integrated TiO2 producerSecond largest TiO2 pigment producerSecond largest mineral sands producerSecond largest zircon producerUnmatched global footprint on 6 continentsRich diversity of talent with deep expertise across value chainGreater stability in financial performance and cash generationCreating sustainable, long-term value for our shareholders  Transformative and Highly Synergistic  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 4  UK re-domiciliation facilitates share repurchases, both direct from Exxaro and open market purchasesMineral Sands Completion Agreement provides for Exxaro’s orderly exit from 28.7 million TROX shares and preserves our $4 billion of NOLsSale of Cristal’s former North American TiO2 business to INEOS for $700 million scheduled to close on May 1, 2019Sale of 8120 Grade paper laminate grade to Venator expected to close imminently Strong cash position following closing of remedial transactionsMultiple value-enhancing options for use of proceeds, including direct purchase of any Tronox shares that Exxaro elects to sell   Enhancing Shareholder Value  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 Favorable market conditions in feedstock and co-productsZircon delivering significant profitability and margin enhancementSignificant and differentiating benefits derived from vertical integration  Global TiO2 pigment markets in transitionAnticipating return to normal customer demand and inventory levels as destocking runs its course by mid-yearAs we enter Q2, markets in Europe and Asia appear to be stabilizing and inventories normalizingNorth American market conditions resilient  5  Market Conditions across the TiO2 Value Chain   © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 6  TiO2 Pigment Revenue 2018  New Tronox (1)$2,537 million  Tronox$1,265 million  Cristal ex-Ashtabula (2)$1,272 million  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com  New Tronox on Pro Forma basisCristal Revenue and related percentages are estimates  
 

 Unmatched Global Footprint  7  KZN SandsSouth Africa    Namakwa SandsSouth Africa    KwinanaAustraliaCapacity: 150 kMT    CooljarlooAustralia    Bunbury/NorthshoreAustraliaCapacity: 110 kMT    SnapperAustralia    Botlekthe NetherlandsCapacity: 90 kMT    NYC and StamfordUSACorporate Offices    HamiltonUSACapacity: 225 kMT    Oklahoma CityUSAAdministration & Technical Center    ChandalaAustralia      CRISTALPigmentMineral Sands        TRONOXTronox CorporatePigmentMineral Sands        ParaibaBrazil      Salvador, BahiaBrazilCapacity: 60 kMT    StallingboroughUKCapacity: 165 kMT    ThannFranceCapacity: 32 kMT    FuzhouChinaCapacity: 46 kMT    WonnerupAustralia    GinkgoAustralia    YanbuKSACapacity: 200 kMT  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 Highly Synergistic Combination  Increasing efficiency and quality; unlocking pigment volumesFully utilizing mineral sands assets across the cycle to lower cost per tonOptimizing value in use of our feedstockSharing of best practices across complementary technologies, production facilities and production geographiesReducing average distance to customers through enhanced global footprintOptimizing combined supply chainConsolidating third-party spend and overlapping functions; eliminating redundant costs  Pre-tax run-rate synergy targets:$100m by Year 1$200m by Year 3    SOURCES OF SYNERGIES   (USD millions)  ~$230  ~$200  ~$160  ~$100  COMPONENTS OF SYNERGIES   8  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com  Note: Synergy targets are estimates and there can be no assurance that they will be achieved 
 

 9  Cash Sources and Uses  ($ Millions)  Pro FormaApril 10, 2019     Pro FormaMay 15, 2019              Source of Funds:           New South African Term Debt  223      0   New South African Revolving Credit Facility ($70M)  0      0   ABL Draw  117      0   Cash from Balance Sheet  1,456      0   Cristal Equity Consideration (1)  526     0   Cash from Ashtabula Sale (2)  0      690   Source of Funds  2,322      690               Use of Funds:           Repay Term Loan B (3)  95      100   Repay ABL Draw  0      117   Repay Old South African Revolving Credit Facility  28      0   Cristal Cash Consideration  1,673      0   Cristal Equity Consideration (1)  526      0   Cash to Balance Sheet  0      473   Use of Funds  2,322      690   Cristal equity consideration: 37.58 million shares at $14.00 per share; 163.3 million Tronox shares outstanding as of April 10, 2019 $700 million sale price net of $10 million estimated deal costs; Transaction structured as UK share sale qualifies for a participation exemption, so no capital gain taxRepayment schedule: $95 million to be paid within 10 days of South African Facility; $100M to be paid within 10 days of Ashtabula sale closing  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 10  Capitalization and Leverage Ratios  Tronox LTM Dec 31, 2019 Adj. EBITDA of $513 million plus Cristal ex-Ashtabula estimated LTM Dec 31, 2018 Adj EBITDA of $395 million plus estimated synergies of $100 millionLiquidity of $249 million on April 10, 2019 and $825 million on May 15, 2019; liquidity measures assume no Exxaro share repurchase within the time frame   © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 The NewTronox  Now brighter than ever  11 
 

 The NewTronox  Now brighter than ever  12  Q&A session 
 

 13  Appendix  © 2019 Tronox Holdings plc | All rights reserved. | tronox.com 
 

 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com  14  Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (non-U.S. GAAP)