Venator Business Overview and Cost Savings Initiatives
TiO 2 Direct Cost Trends
Significant increase and expected to remain elevated
VENATOR
Energy
Other
Feedstock
0.74
0.88
1.05
1.10 1.10
Direct Costs (1)
1.14
0.97 0.98
1.00
0.22
0.15
0.16
0.84
0.83 0.19
0.77
0.37
0.32
0.33
0.35
1.60
1.57
1.58
1.60
1.56
1.53
0.34
0.34
0.43
0.38 0.35
0.39
0.49
0.49
0.48
0.48
0.50
0.46
0.76 0.77
0.73
0.68 0.69
0.69
0.53
0.55
0.49
0.44
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Commentary
Unprecedented cost inflation during
2022 was the main driver for the large
increase in direct costs
Significant increase in direct costs
■ Energy saw the relatively largest %
increase
Feedstock and Other saw smaller
increases
Direct costs are assumed to remain
elevated
☐
European energy recedes but other
raw materials higher grade
feedstocks increase
c.80% of 2023 European gas and
c.50% of 2023 European electricity
consumption is hedged at average
price of c.€70/MWh and c.€280/MWh,
respectively, as of April, 2023
Information from the
Intercontinental Exchange
European energy outlook forms the
basis for management's estimates
Business plans assumes European
energy costs gradually decrease to
c.€35/MWh by 2027
►Individual plant level direct costs/t can
vary +5% to (12)% from the
consolidated figure(2)
(1)
45
(2)
Rebased to TZMI 2021 Venator manufacturing cost estimate on a $/t basis (TZMI, 2022, Comparative Cost & Profitability Study)
Excluding Scarlino and DuisburgView entire presentation