EXHIBIT 12.1
KRONOS INTERNATIONAL, INC.
AND SUBSIDIARIES
STATEMENTS REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES
FOR THE YEARS ENDED DECEMBER 31, 1997, 1998, 1999, 2000 AND 2001 AND
SIX MONTHS ENDED JUNE 30, 2001 AND 2002
(IN MILLIONS EXCEPT RATIOS)
<Table>
<Caption>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
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1997 1998 1999 2000 2001 2001 2002
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Earnings:
Income (loss) before income taxes $ (82.5) $ 63.4 $ 17.6 $ 123.0 $ 128.2 $ 58.4 $ 45.3
Fixed charges 75.2 75.1 58.8 48.7 153.0 28.7 98.8
Capitalized interest (1.9) (5.0) -- -- -- -- --
Amortization of capitalized interest 0.2 0.4 0.5 0.5 0.5 0.2 0.2
-------- -------- -------- -------- -------- -------- --------
$ (9.0) $ 133.9 $ 76.9 $ 172.2 $ 281.7 $ 87.3 $ 144.3
======== ======== ======== ======== ======== ======== ========
Fixed Charges:
Interest expense (includes
amortization of deferred
financing costs) 71.1 68.3 37.5 30.6 38.4 16.1 20.4
Interest portion of rent expense (a) 2.2 1.8 2.7 2.2 2.1 1.1 1.0
Capitalized interest 1.9 5.0 -- -- -- -- --
Preferred dividends and accretion (b) 0.0 0.0 18.6 15.9 112.5 11.5 77.4
-------- -------- -------- -------- -------- -------- --------
Total fixed charges $ 75.2 $ 75.1 $ 58.8 $ 48.7 $ 153.0 $ 28.7 $ 98.8
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Ratio of earnings to fixed charges --x 1.8x 1.3x 3.5x 1.8x 3.0x 1.5x
======== ======== ======== ======== ======== ======== ========
Deficiency of earnings to fixed charges (c) $ 84.2
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Pro Forma Earnings:
Income before income taxes $ 112.6 $ 17.2
Fixed charges 29.3 14.5
Capitalized Interest 0.5 0.2
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Fixed Charges: $ 142.4 $ 31.9
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Interest expense (includes
amortization of deferred
financing costs) 27.2 13.5
Interest portion of rent expense (a) 2.1 1.0
Preferred divdiends and accretion (b) -- --
-------- --------
Total fixed charges $ 29.3 $ 14.5
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Ratio of earnings to fixed charges
4.9x 2.2x
======== ========
</Table>
(a) 33% of rental expense is deemed representative of the interest factor.
(b) There is no adjustment to dividends and accretion on redeemable
preferred stock to obtain an equivalent pre-tax amount. Kronos
International, Inc. has a significant amount of net operating loss
carryforwards in Germany, the benefit of which has not previously been
recognized in accordance with accounting principles generally accepted
in the United States of America. Accordingly, the equivalent pre-tax
amount for such dividends and accretion would not differ from the
amount of such dividends and accretion.
(c) Kronos International, Inc.'s earnings were insufficient to cover total
fixed charges in 1997. The coverage deficiency was $84.2 million.