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VALHI PRESS RELEASE FOR IMMEDIATE RELEASE Valhi , Inc. Three Lincoln Centre 5430 LBJ Freeway , Suite 1700 Dallas , Texas 75240-2620 ( 972 ) 233-1700 CONTACT : Janet G. Keckeisen Vice President - Corporate Strategy and Investor Relations ( 972 ) 233-1700 VALHI REPORTS FIRST QUARTER 2021 RESULTS DALLAS , TEXAS . . May 6 , 2021. Valhi , Inc. ( NYSE : VHI ) reported net income attributable to Valhi stockholders of $ 14.8 million , or $ .52 per share , in the first quarter of 2021 compared to net income of $ 24.4 million , or $ .86 per share , in the first quarter of 2020. Net income attributable to Valhi stockholders decreased in the first quarter of 2021 as compared to the first quarter of 2020 primarily due to lower operating results from our Chemicals Segment and lower income from tax increment infrastructure reimbursement from our Real Estate Management and Development Segment in 2021 . The Chemicals Segment's net sales were $ 465.0 million in the first quarter of 2021 compared to $ 421.0 million in the first quarter of 2020. The Chemicals Segment's net sales increased in the first quarter of 2021 primarily due to higher sales volumes partially offset by lower average TiO2 selling prices . TiO2 sales volumes were 3 % higher in the first quarter of 2021 as compared to the first quarter of 2020 primarily due to higher demand in North American and Latin American markets partially offset by lower sales volumes in the European market . The Chemicals Segment's average TiO2 selling prices were 1 % lower in the first quarter of 2021 as compared to the first quarter of 2020 and TiO2 selling prices at the end of the first quarter of 2021 were 1 % higher than at the end of 2020. TiO2 selling prices will increase or decrease generally as a result of competitive market pressures , changes in the relative level of supply and demand as well as changes in raw material and other manufacturing costs . Fluctuations in currency exchange rates ( primarily the euro ) also affected net sales comparisons , increasing our Chemicals Segment's net sales by approximately $ 20 million in the first quarter of 2021 as compared to the first quarter of 2020. The table at the end of this press release shows how each of these items impacted net sales . The Chemicals Segment's operating income in the first quarter of 2021 was $ 37.7 million as compared to $ 46.8 million in the first quarter of 2020. The Chemicals Segment's operating income decreased in the first quarter of 2021 as compared to the first quarter of 2020 primarily due to the net effects of fluctuations in currency exchange rates , which decreased operating income by approximately $ 16 million in the first quarter of 2021 as compared to the first quarter of 2020 , lower average TiO2 selling prices , higher sales volumes and lower production costs . Due to the phase - out of sulfate production at one of its facilities in the fourth quarter of 2020 , the Chemicals Segment's TiO2 production volumes were 1 % lower in the first quarter of 2021 as compared to the first quarter of 2020. The Chemicals Segment's production facilities operated at overall average capacity utilization rates of 97 % and 95 % in the first quarters of 2021 and 2020 , respectively . The Component Products Segment's net sales were $ 35.9 million in the first quarter of 2021 compared to $ 32.3 million in the first quarter of 2020. The Component Products Segment's net sales increased primarily due to higher marine components sales to the towboat market and to a lesser extent higher security products sales . The higher marine components sales reflect the overall increase in demand in the recreational marine market which began in late spring 2020. Operating income attributable to the Component Products Segment was $ 5.8 million in the first quarter of 2021 compared to $ 5.0 million in the first quarter of 2020. The Component Products Segment's operating income increased in the first quarter of 2021 compared to the first quarter of 2020 due to the higher marine components sales as well as lower overall employee medical expenses for both security products and marine components , partially offset by higher cost of sales for security products . The Real Estate Management and Development Segment had sales of $ 8.1 million in the first quarter of 2021 , including $ 6.6 million in revenue on sales of land held for development , compared to sales of $ 6.0 million in the first quarter of 2020 , including $ 3.6 million in revenue on sales of land held for development . Land sales revenue is generally recognized over time based on cost inputs , and land sales revenues are dependent on spending for development activities as we balance development requirements with home builder output during the year . Land sales revenues are also impacted by the relative timing of when new land parcel sales are closed . Land sales revenues increased in the first quarter of 2021 as compared to the first quarter of 2020 primarily due to an increase in the amount of acreage sold in 2021 as compared to 2020. The Real Estate Management and Development Segment had operating income in the first quarter of 2021 of $ 7.8 million compared to operating income of $ 19.2 million in the first quarter of 2020. Operating income in the first quarter of 2021 includes income related to the recognition of tax increment reimbursement note receivables of $ 6.2 million ( $ 3.2 million , or $ .11 per share , net of income taxes and noncontrolling interest ) compared to $ 19.1 million ( $ 9.9 million , or $ .35 per share , net of income taxes and noncontrolling interest ) of such income recognized in the first quarter of 2020 . Page 1 of 5