Venator Business Overview and Cost Savings Initiatives slide image

Venator Business Overview and Cost Savings Initiatives

2022A-2027E CFADS Build-up VENATOR Cash Flow ($m) 2022 2023E 2024E 2025E 2026E 2027E Total Revenue 2,173 1,901 2,083 2,066 2,182 2,262 1 Total EBITDA 53 (120) 104 175 219 237 2 Normal Course Capex (69) (55) (68) (62) (62) (60) Change in Working Capital (135) 18 28 28 (11) (11) (7) Other 152 115 (45) (18) (21) (25) CFADS (pre One-Off Expenses) 1 (41) 20 84 126 145 4 Operational Restructuring (36) (25) (39) (38) (15) (27) Project Volt Costs CFADS (post One-Off Expenses) (35) (81) (147) (19) 46 111 118 1 Reflects TiO2 business incl. operational restructurings, Performance Additives, corporate SG&A and annual contingencies 2 2023E capex limited to necessary maintenance expenditures with select growth investments from 2024E onwards 3 ■ Total capex spend on decoupling FAD business at Duisburg and specialty grade transfer to Uerdingen is c.$22m ☐ Following the sale of the Iron Oxide business, capital expenditures for TiO2 business expected to be approximately 75-85% of total company annual spend Includes net proceeds from sale of Iron Oxide business to Cathay Industries in Q1'23 of $130m(1), other investing & financing cash flows, cash income tax, pensions and other items 4 Reflects one-off costs to implement cost savings initiatives and address legacy issues in Germany and France (2) 52 52 Cash flow before debt service expected to be negative c.($145m) in July 2023 before turning positive Aug-23 ABL borrowing base forecasted at c.$230m, decreasing to c.$208m at 2023 Y/E Note: (1) (2) CFADS is defined as change in cash pre-debt service (both interest and principal repayment/drawdown); net ECO income / cost is captured in COGS ABL borrowing base reduced by approximately $85m as a result of the transaction Includes $6m of restructuring costs for Calais from H2'23E onwards
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