Venator Business Overview and Cost Savings Initiatives
Business over the Bridge
VENATOR
Venator will emerge as a leaner and stronger business, capable of generating
~$235m of EBITDA and ~$175m of operating cash flow (1) by 2027
We have undertaken a comprehensive strategic review of our business
The result of which is an action plan aimed at optimising our operations, enhancing our profitability, boosting cash flow
generation, and positioning the business for future profitability and growth
Together with our advisors, we have explored multiple options to address our legacy issues and have selected those that best
fit our future vision for Venator while minimising cash outlay
We are confident that these are in the best interest of the Company and its stakeholders, and have set out a clear path
towards implementation
The plan is underpinned by the following key initiatives – certain initiatives will require lender consent:
1 Separation of FAD production at Duisburg, transfer of Specialty grades to Uerdingen expected by the end of 2024
followed by an exit of Duisburg loss-making TiO2 business absent meaningful change in economic conditions;
2 Scarlino(2) site closure, if disposal permits not granted;
3
Pori site closure to limit cash leakage from the Group;
4 We expect actions to be in place to deliver the full cost reduction benefits of $50m by the end of 2025; and
5 Strengthening remaining TiO2 core assets with incremental ~50kt additional production and improving product mix to
more differentiated / specialty portfolio
Post completion of the operational restructuring plan, all remaining sites are EBITDA positive
(1)
37
(2)
EBITDA
Capex
Net current assets (excl. I/C balances) at Scarlino were c.$55m as of Dec-22View entire presentation