Slide 1: Q2 2020 Results Presentation
Q2 2020 Results Presentation 27 August 2020
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: 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 ▪ Goal to achieve leadersh
Slide 4: OCI N.V.'s Commitment to a More Sustainable World
OCI N.V.’s Commitment to a More Sustainable World We seek to provide sustainable solutions to our agricultural and industrial customers. We are committed to investing in a greener future to create value for our communities, our customers, our employees and our shareholders 4
Slide 5: Investment Highlights | OCI at a Glance
Investment Highlights| OCI at a Glance What Differentiates OCI Performance Drivers Global leader in nitrogen and methanol with excellent ▪ Substantial reduction in execution risk, expect healthy volume diversification – product & geographical ramp-up in 2020 ✓ Significant growth capex program comple
Slide 6: Overview Q2 2020 Results: Resilient Earnings and Deleveraging
Overview Q2 2020 Results: Resilient Earnings and Deleveraging Highlights Summary Key Financials1) and KPIs Q2 ‘20 Q2 ‘19 %Δ H1 ‘20 H1 ‘19 %Δ Own-produced volumes sold +6% in Q2 2020 vs. Q2 2019 Revenue 875.4 953.5 (8%) 1,686.5 1,550.0 9% • Nitrogen volumes +8%, inclusion of Fertil in consolidated re
Slide 7: Financial Highlights – Record Volumes, Prices Reach Trough Levels Q2
Financial Highlights – Record Volumes, Prices Reach Trough Levels Q2 Total own-produced volumes sold by product (million metric tons) Q2'20 vs Q2'19 +45% 1.24 +8% -41% +8% -11% 0.86 0.67 0% 0.59 0.62 -11% 0.46 0.50 0.40 0.35 0.35 0.13 0.13 0.03 0.03 Ammonia Urea CAN UAN Methanol Melamine DEF Benchma
Slide 8: Net Debt Reduced by $222 Million
Net Debt Reduced by $222 Million Net Debt bridge H1 ‘20 ($ million) -222 Net Debt Reported Net Operating Capex Net Financing Taxed Paid Cash Received Finance Other Net Debt 31 Dec 19 EBITDA Working Capital (Maintenance + Expense ADNOC Closing Lease 30 Jun 20 Change Growth) (Cash) Settlement Payments
Slide 9: Capital Expenditure and Production Capacity
Capital Expenditure and Production Capacity Capex and production capacity Capex and production capacity Conversion intoQ4 FCF2019 Total capex (US$ m) Total capacity (mtpa) End-2019 1,200 18 16 ▪ Growth capital expenditure program finalized in 1,000 2019 14 ▪ Production capacity has doubled from c.8m
Slide 10: OCI is Well-Placed to Benefit from Recovery of Selling Prices
OCI is Well-Placed to Benefit from Recovery of Selling Prices Key Themes Volume growth in 2020 End-2019 o Growth capital expenditure program complete o Ramp-up of new methanol capacities on-going o Inclusion of Fertil o Focus on operational excellence Significant upside from recovery in selling pric
Slide 11: OCI - Overview
OCI OCI - Overview cae
Slide 12: 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 started ▪ Acquired: 2008 April 2017 Product ktpa Product2 ktpa Urea 1,648 Ammonia (net) 195 UAN 1,757 Urea 438 DEF 1,019 Egyp
Slide 13: 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 1,0451 methanol portfolio globally Ammonia 356 ✓ The distribution platform’s global footprint and distri
Slide 14: Flexible Production Capabilities to Maximize Production of Most Profitable Products
Flexible Production Capabilities to Maximize Production of Most Profitable Products Max. Proven Capacities¹ ('000 metric tons) Total Total Total2) Plant Country Ammonia Ammonia Urea UAN CAN Fertilizer Melamine4 DEF Nitrogen Methanol OCI NV (Gross) (Net)3 Iowa Fertilizer Company5 USA 914 195 438 1,75
Slide 15: Q2 2020 Details
OCI Q2 2020 Details 15
Slide 16: Financial Highlights - Consolidated Statement of Income
Financial Highlights - Consolidated Statement of Income*) $ million Q2 2020 Q2 2019 H1 2020 H1 2019 Net revenue 875.4 953.5 1,686.5 1,550.0 Cost of Sales (748.7) (788.1) (1,482.5) (1,332.1) Gross profit 126.7 165.4 204.0 217.9 SG&A (52.1) (51.9) (109.2) (98.5) Other Income (0.4) (0.5) 13.4 2.8 Other
Slide 17: Financial Highlights – Reconciliation of Adjusted EBITDA and Adjusted Net Income
Financial Highlights – Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of reported operating income to adjusted EBITDA $ million Q2 ‘20 Q2 ‘19 H1 ‘20 H1 ‘19 Adjustment in P&L Operating profit as reported 73.9 110.1 107.9 119.0 Depreciation and amortization 147.5 111.5 289.6
Slide 18: Segment Information
Segment Information Segment overview Q2 2020 $ million Nitrogen Total Total Other Elim. Methanol US Total US Europe Fertiglobe* Elim. Nitrogen Europe Elim.** Methanol Total revenues 165.3 229.9 374.2 (21.6) 747.8 97.9 49.0 (9.4) 137.5 0.5 (10.4) 875.4 Gross profit 27.3 43.3 47.7 0.9 119.2 (3.4) (0.9
Slide 19: Segment Information
Segment Information Segment overview H1 2020 $ million Nitrogen Total Total Other Elim. Methanol US Total US Europe Fertiglobe* Elim. Nitrogen Europe Elim.** Methanol Total revenues 284.0 392.3 737.5 (33.5) 1,380.3 227.9 130.8 (29.7) 329.0 0.7 (23.5) 1,686.5 Gross profit 37.5 57.8 110.3 1.9 207.5 (4
Slide 20: Product Sales Volumes ('000 metric tons)
Product Sales Volumes (‘000 metric tons) Q2 2020 Q2 2019 %Δ H1 2020 H1 2019 %Δ Own Product Ammonia 346.8 592.1 (41%) 888.3 959.6 (7%) Urea 1,240.7 857.1 45% 2,357.0 1,305.3 81% Calcium Ammonium Nitrate (CAN) 670.6 618.1 8% 840.8 726.8 16% Urea Ammonium Nitrate (UAN) 496.1 459.2 8% 836.1 699.1 20% To
Slide 21: 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 21