Venator Business Overview and Cost Savings Initiatives
5 Year Current Outlook
Key Drivers & Assumptions Summary
Market
Production
Direct Costs
Performance
Additives
Indirect
Costs
Key Drivers & Assumptions
VENATOR
Demand recovers in Europe and Asia through 2023 and sales volumes are constrained by production capacity thereafter
Reduction in TiO2 sites from 7 to 5 by closing Duisburg TiO2 and Scarlino
Incremental production increase of ~50kt from operational efficiency and selective capacity investment in remaining core
assets (Greatham, Huelva, Uerdingen, Teluk Kalong and Lake Charles) compared to 2021 levels
Direct costs peak in 2023 with expected moderation but remain at elevated levels (~2x 2017)
Feedstock prices in line with TZMI forecast from H2'23 onwards
Energy costs based on hedge position in 2023 and returning to normalised energy prices in the future
UMB business growing at 3% from 2025 onwards and driers to recover to historic levels of >$2m from 2025
Timber treatment outlook based on new industrial products and demand growth of ~4% p.a. from 2025 onwards
2023 EBITDA margin is forecasted to drop to the mid to high single digits before reverting back to the 9-10% range thereafter
Inflation applied at 2.5% p.a. from 2024 outlook
Reduction for Duisburg as TiO2 operations cease
Individual plant level fixed costs/t of capacity can vary +40% to (40)% from the consolidated figure1
SG&A
Corporate SG&A decreasing from ~$52m in 2023E to ~$38m from 2025 onwards (incl. pensions)
UK pension buyout completed in 2024
Capex
Working Capital
2023 growth capex associated with optimization of FAD business and transfer of part of specialty TiO2 to Uerdingen together with
investments necessary to maintain operations and necessary EHS and safety expenditures (~$55m total 2023E capex)
c.$75m improvement in inventory in 2023 as part of liquidity initiatives that are currently being implemented
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1.
Excluding Scarlino and Duisburg; Uerdingen c.25% above averageView entire presentation