Venator Business Overview and Cost Savings Initiatives
TiO2 Revenue ($m)
Situation Summary
1
VENATOR
Significant European presence impacted Venator more than competitors.
2
Rapid and
dramatic TiO2
industry downturn
Unprecedented
energy and
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■
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1.0
1.5
601
2H22
1.6
3
4
cost dynamics
in Europe
Weak current
operating
performance
Unsustainable
balance sheet and
tightening liquidity
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■
Functional TiO2 ("CPI") volume decreased -40% YoY in 2H
2022 with modest recovery expected in H2 2023
Inventory de-stocking intensified impact of weaker demand
Direct costs increased ~50% compared to FY18-21A
average
Cost increase largely attributable to energy (impact of war
in Ukraine on European prices) and feedstocks
EBITDA expected to be negative ($120m) in 2023
Negative free cash flow excluding debt service and ABL
drawdowns of ($186m) in 2023
FY22A leverage of c.18x to deteriorate further in light of
negative ($120m) EBITDA in FY23E
Current liquidity down to c. $33m as of 12-May with
expected further tightening
996
1H22
TiO2 Direct Cost (1)
FY18A
FY22A
FY23E
Adj. EBITDA (2) ($m)
185
53
FY21A
FY22A
(120)
FY23E
Leverage (Adj. EBITDA / Net Debt)
4x
FY21A
18x
FY22A
Significant operational restructuring will be implemented to right-size Venator's manufacturing footprint and position the
Company for future growth
A comprehensive recapitalization agreement has been reached with the Company's creditors to significantly reduce
debt and secure $275m of "DIP" new-money financing
(1)
Rebased to TZMI 2021 Venator manufacturing cost estimate on a $/t basis (TZMI, 2022, Comparative Cost & Profitability Study)
(2)
Reported adjusted EBITDA; includes Iron Oxide EBITDA of $25m, $16m and negative ($4m) for FY21A, FY22A, and 1Q FY23E, respectivelyView entire presentation