Slide 1: Q3 2021 Results Presentation
Q3 2021 Results Presentationxx 08 November 2021 1
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by OCI N.V. (the "Company"). By accessing and reading the Presentation you agree to be bound by the following limitations: This Presentation does not constitute or form a part of, and should not be construed as, an offer for sale or sub
Slide 3: Transformational year reaping the rewards of our growth strategy and competitive business model
Transformational year reaping the rewards of our growth strategy and competitive business model Adjusted EBITDA of $501 million (+161%) and trailing net debt / adjusted EBITDA was 1.7x as of 30 September 2021 Outlook: Expect a drop in net leverage to below 1.3x by year-end 2021 and to below 1.0x dur
Slide 4: Table of Contents
Table of Contents H2 Q3 2021 Financial Market Outlook Capitalizing on the Appendix Performance Hydrogen Opportunity 4
Slide 5: Safety first: commitment to zero injuries
Safety first: commitment to zero injuries OCI is committed to providing a safe and healthy workplace for all employees and stakeholders by implementing the highest international safety standards to avoid any potential risks to people, communities, assets or the environment Conversion intoQ4 FCF2019
Slide 6: Q3 2021 results: accelerating earnings and strong FCF
Q3 2021 results: accelerating earnings and strong FCF Summary Key Financials1 and KPIs $ million unless otherwise stated Q3’21 Q3’20 %Δ 9M’21 9M’20 %Δ Own-produced volumes sold were lower in Q3 ‘21 vs. Q3 ‘20 Revenue 1,537.3 751.9 104% 4,119.8 2,438.4 69% Gross Profit 272.7 80.4 239% 1,017.7 284.4 2
Slide 7: Q3 2021 adjusted EBITDA up 161%
Q3 2021 adjusted EBITDA up 161% Own-Produced Sales Volumes (Mt) Key Product Benchmark Prices, $/t Revenue ($m) +69% Methanol US contract Methanol Nitrogen Urea Egypt 4,120 +100% 1.3 1.4 +87% 558 +104% 2,438 484 1,537 7.5 7.3 279 0.6 484 558 0.3 752 2.3 2.2 259 279 Q3 2020 Q3 2021 9M 2020 9M 2021 Q3
Slide 8: Strong balance sheet achieved
Strong balance sheet achieved Returning capital to shareholders Expect to start returning capital to shareholders starting April 2022 and positions us well for future growth through targeted projects ✓ In 2022, OCI intends to adopt a semi-annual dividend distribution policy, with a first dividend ex
Slide 9: OCI records 15% growth in DEF volumes in 9M 2021
OCI records 15% growth in DEF volumes in 9M 2021 Attractive Fundamental Drivers for DEF Demand DEF is priced at a premium to urea and is one of OCI’s • Diesel Exhaust Fluid (DEF) is a combination of 32.5% urea and 67.5% de-ionized fastest-growing products water. DEF is used in Selective Catalytic Re
Slide 10: Table of Contents
Table of Contents H2 Q3 2021 Financial Market Outlook Capitalizing on the Appendix Performance Hydrogen Opportunity 10
Slide 11: Nitrogen outlook supported by attractive supply-demand dynamics
Nitrogen outlook supported by attractive supply-demand dynamics Supporting Strong Pricing Outlook For 2022 and Beyond as We Recover From a 5-year Downturn Bull Market Drivers Support Demand Driven Environment Prior cycle (last 5-6 years) 2021+ CROP PRICES SUPPORTIVE OF HIGHER AFFORDABILITY 30% 24% C
Slide 12: Agricultural fundamentals supports robust nitrogen demand at least until H2 2023
Agricultural fundamentals supports robust nitrogen demand at least until H2 2023 Crop Prices Supported by “Stocks : Use” Ratio at 7 Year Lows, Chinese corn imports expected higher tightening global corn markets Requiring at Least Two More Growing Seasons to Replenish Chinese corn imports, Mt Crop pr
Slide 13: Attractive nitrogen dynamics with demand expected to exceed capacity additions
Attractive nitrogen dynamics with demand expected to exceed capacity additions Ex-China urea capacity additions slow relative to 2015-19, Mt Merchant ammonia market structurally tightening Global ammonia and net capacity additions ex-China ex-urea, Mt ✓ Demand growth expected to exceed supply growth
Slide 14: Supportive dynamics in China and India with Chinese urea export curtailments
Supportive dynamics in China and India with Chinese urea export curtailments to at least H2 2022 and robust Indian import demand • Chinese market balances supported by: Chinese Exports Curtailed on Domestic Demand and Closures – Low-stocks to use ratio, high domestic crop prices China urea exports,
Slide 15: Nitrogen fertilizer pricing supported by demand-driven environment
Nitrogen fertilizer pricing supported by demand-driven environment Strong Support for Current Nitrogen Price Levels from Low Global Crop Inventories, Strong Farm Economics, Continued Strong Fertilizer Demand and Recovering Industrial Demand Urea, Ammonia, CAN and UAN Prices (Monthly Averages, 2011 -
Slide 16: Methanol prices have rebounded and market fundamentals remain supportive
Methanol prices have rebounded and market fundamentals remain supportive Methanol prices benefit from demand recovering Methanol supply & demand balance tightening Global Feedstock Prices 2016-2021F USGC Contract Methanol capacity vs demand growth, Million Mt USGC Spot Capacity Demand 700 Demand exp
Slide 17: Higher costs for marginal producers supportive of prices
Higher costs for marginal producers supportive of prices Global Feedstock Prices 2017-2022F, $/MMBtu Cash Costs per ton of Ammonia 2017-2022F, $/t 35 1200 TTF futures are ~$16/MMBtu for 2022 and Marginal costs have escalated on high end of cost 30 c.$10/MMBtu in 2023/2024 curve and not expected to c
Slide 18: Table of Contents
Table of Contents H2 Q3 2021 Financial Market Outlook Capitalizing on the Appendix Performance Hydrogen Opportunity 18
Slide 19: Significant incremental ammonia demand from new clean energy applications
Significant incremental ammonia demand from new clean energy applications Clean Hydrogen is strongly positioned to lead the world’s energy transition, and ammonia is the key enabler ▪ Clean hydrogen use in energy applications will be a major contributor to emission reduction across industries where
Slide 20: OCI will capture the transition potential with numerous key initiatives underway
OCI will capture the transition potential with numerous key initiatives underway Strategic partnerships with industry leaders on announced projects in Europe, and lower carbon projects being developed across our global asset base Blue ammonia Blue and green ammonia Bio-fuels and bio- FUREC Renewable
Slide 21: Clean ammonia market expected to experience substantial growth
Clean ammonia market expected to experience substantial growth Global clean ammonia demand is expected to reach 40mt by 2035 driven by Europe and Asia Europe Global Asia(1) <1% 5% 19% 28% <1% 5% 22% 28% 166 183 29% 31% 36% 38% 129 145 8 26 40 26 129 138 140 142 68 22 24 58 19 Today 2025 2030 2035 44
Slide 22: Marine fuel represents a substantial market opportunity for OCI
Marine fuel represents a substantial market opportunity for OCI ▪ Ammonia and methanol are the only practical alternatives for long-distance shipping, even without decarbonization technologies, they have a lower environmental footprint than HFO o Ammonia burns cleanest when used an energy source vs
Slide 23: Appendix Q3 2021 Results
OcI Appendix Q3 2021 Results 23
Slide 24: Reconciliation Of Adjusted EBITDA And Adjusted Net Income
Reconciliation Of Adjusted EBITDA And Adjusted Net Income Reconciliation of reported operating income to adjusted EBITDA $ million Q3 ‘21 Q3 ‘20 9M ‘21 9M ‘20 Adjustment in P&L Operating profit as reported 205.2 22.7 828.1 130.6 Depreciation and amortization 316.2 149.0 626.8 438.6 EBITDA 521.4 171.
Slide 25: Reconciliation Of EBITDA to Free Cash Flow and Change in Net Debt
Reconciliation Of EBITDA to Free Cash Flow and Change in Net Debt $ million Q3 ‘21 Q3 ‘20 9M ‘21 9M ‘20 EBITDA 521.4 171.6 1,454.9 569.2 Working capital (98.7) (92.0) (61.7) (85.7) Maintenance capital expenditure (64.6) (46.5) (150.0) (189.0) Tax paid (29.6) (5.5) (66.4) (12.9) Interest paid (10.1)
Slide 26: Appendix About OCI
OcI Appendix About OCI 26
Slide 27: Nitrogen production capacity and commercial footprint
Nitrogen production capacity and commercial footprint Nitrogen Footprint Iowa Fertilizer Company (IFCo) - Iowa, US Egyptian Fertilizer Co (EFC) – Egypt ▪ Production and sales ▪ Acquired: 2008 started April 2017 Product ktpa Product1 ktpa Urea 1,714 Ammonia (net) 195 DEF 350 UAN 1,832 Urea 438 DEF 1,
Slide 28: Methanol production capacity and commercial footprint
Methanol production capacity and commercial footprint United States Global OCI Beaumont (Texas, US) OCI Methanol Marketing Product ktpa ✓ Wholly owned subsidiary marketing OCI’s 3.0Mt of methanol Methanol 1,0041 Ammonia 356 portfolio globally ✓ The distribution platform’s global footprint and distri
Slide 29: Flexible production capabilities to maximize returns
Flexible production capabilities to maximize returns Max. Proven Capacities¹ ('000 metric tons) Total Total Total2 Ammonia Ammonia Plant Country Urea UAN CAN Fertilizer Melamine4 DEF Nitrogen Methanol OCI NV (Gross) (Net)3 Iowa Fertilizer Company5 USA 926 195 438 1,832 - 2,465 - 1,019 3,484 - 3,484
Slide 30: For OCI N.V. investor relations enquiries contact
For OCI N.V. investor relations enquiries contact: Hans Zayed hans.zayed@oci.nl T +31 (0) 6 18 25 13 67 OCI N.V. corporate website: www.oci.nl