Slide 1: Q1 2023 Results Presentation
Q1 2023 Results Presentation 9 May 2023
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 Conversion intoQ4 FCF2019
Slide 4: Executive Summary
Executive Summary Q1 ‘23 adjusted EBITDA $336 million, mainly due to lower selling prices and volumes, adjusted net loss $15 million, FCF $151 million, consolidated net leverage 0.3x Adj. EBITDA excluding events unrelated to the normal course of business is $585 million reflecting: • Realized gas he
Slide 5: LTM in numbers
LTM in numbers $8.8bn revenue $3.3bn adjusted EBITDA $1.5bn free cash flow 13.9m tons sold 4,059 employees 0.08 LTIR 2.42 GHG intensity 5 (1) LTM refers to last twelve months to Q1 2023
Slide 6: A Global Nitrogen and Methanol Producer with State-of-the-Art Assets
A Global Nitrogen and Methanol Producer with State-of-the-Art Assets US 46% Europe 15% Middle East 39% IFCo IFCo - US Sorfert EFC & EBIC OCIN Fertil BioMCN Fertil - AD Natgasoline OCIB Natgasoline - US OCIB - US BioMCN - NL OCIN - NL Sorfert - AL EFC & EBIC - EG x% = 2022 Proportionate EBITDA4 by Ge
Slide 7: Q1 2023 Financial Summary
Q1 2023 Financial Summary Own Produced Sales Volumes (million mt) Key Product Benchmark Prices ($/mt) Methanol Nitrogen Urea Egypt Methanol US contract 0.3 0.2 -51% -5% 2.3 2.1 841 616 583 409 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Net Revenue ($m) Adj. EBITDA ($m) Net Debt ($m) -65% -9% -4
Slide 8: Q1 2023 Adjusted EBITDA Bridge
Q1 2023 Adjusted EBITDA Bridge Adjusted EBITDA Q1 2023, $ millions ▪ Results impacted by material events unrelated to the normal course of business: 585 o Natural gas hedging losses $98 million 74 o Downtime at Methanol US with start-up issues 47 following Arctic freeze shutdown resulted in loss of
Slide 9: US Nitrogen Cash Conversion Consistently Among Highest in the Industry
US Nitrogen Cash Conversion Consistently Among Highest in the Industry IFCo achieves consistently higher EBITDA per nutrient ton and margins than US peers: US Midwest premium advantage Adjusted EBITDA margin, % IFCo cash conversion is among Adjusted EBITDA per nutrient metric ton highest in the indu
Slide 10: OCI Benefits From Structural Cost Advantages That Are Hard To Replicate
OCI Benefits From Structural Cost Advantages That Are Hard To Replicate Low-Cost Position Attributable to Advantageous Access to Feedstock, Young Age and Distribution Infrastructure Ammonia Global Cost Curve, FOB plant cash costs ✓ OCI gas consumption in Q1 23 Y axis: Ammonia FOB costs in 2023, $/t
Slide 11: Q1 2023 Free Cash Flow and Net Debt Build-up
Q1 2023 Free Cash Flow and Net Debt Build-up Reconciliation of Q1 2023 Reported EBITDA to Free Cash Flow ($ million) 249 35 (103) (16) 151 (20) (12) 17 Reported EBITDA Working Capital Maintenance Capex1 Lease Payments Tax Paid Interest Paid Other Free Cash Flow Change in Net Debt From 31 December 20
Slide 12: Tight Agricultural Fundamentals at least until 2025
Tight Agricultural Fundamentals at least until 2025 Crop prices supported by stocks: use ratio at 10-year lows Urea affordability +50% since Q1 2022, supporting demand recovery Crop price index, Jan 2006 = 100 Global grain and oilseed stocks: use ratio (ex-China), % Affordability Index, Jan 2006 = 1
Slide 13: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Drivers Support Demand Driven Environment Prior cycle (last 5-6 years) Next cycle (started in 2022) 30% 25% Corn stocks-to-use ratio 2022 corn stocks-to-use ratio HIGH CROP PRICES and AFFORDABILITY SUPPORT NITROGEN DEMAND RECOVERY $3.7/
Slide 14: Incremental Ammonia Demand From New Clean Energy Applications
Incremental Ammonia Demand From New Clean Energy Applications Accelerated demand growth potential post-2026 from new uses in power generation and marine fuels Outlook for incremental low-carbon ammonia demand by end-use to 2035, Million Mt Key Demand Drivers Emissions & carbon markets ~40 Mt 1 Devel
Slide 15: Low Carbon Ammonia Supply Will Be Slow To Commission, OCI's Texas Blue Ahead
Low Carbon Ammonia Supply Will Be Slow To Commission, OCI’s Texas Blue Ahead Only <15% of announcements get built given hurdles, and <30% of announced projects realized on time Firm nitrogen projects in 2008 pipeline, ex-China, Million Mt Similar trend in the US in 2014 – 2019: Low carbon ammonia 35
Slide 16: Methanol Market Fundamentals Are Supportive, with Significant Long-term Upside
Methanol Market Fundamentals Are Supportive, with Significant Long-term Upside Improving methanol affordability Methanol supply & demand balance tightening Methanol spot prices, USD per metric ton Methanol capacity vs. demand growth, Million Mt 550 Methanol market in structural deficit: Demand expec
Slide 17: Methanol As Marine Fuel Accelerating Exponentially
Methanol As Marine Fuel Accelerating Exponentially Methanol marine orderbook has increased dramatically recently, set to accelerate further, with >130 vessels on order and increasing interest from the bulker segment Current Confirmed Methanol DF Engines Orderbook Incremental Methanol Demand From Mar
Slide 18: Carbon Footprint of Low Carbon Methanol & Ammonia
Carbon Footprint of Low Carbon Methanol & Ammonia Carbon Footprint of Green Methanol & Green Ammonia vs. Conventional Fuels on a Well-to-Wake basis, gCO2eq/MJ E- Ammonia E-Methanol Bio Methanol LNG Marine Gasoil Ultra Low Sulphur Fuel Oil Heavy Fuel Oil Very Low Sulphur Fuel Oil 0 10 20 30 40 50 60
Slide 19: OCI is at the Forefront of the Global Energy Transition
OCI is at the Forefront of the Global Energy Transition Current Sustainable Portfolio and Transformational Growth Projects BioMCN Gasification Low carbon ammonia UAE IFCo CCS Texas Blue Ammonia Egypt Green Hydrogen Existing Sustainable Products / Operations Low Carbon Methanol Projects Low Carbon Am
Slide 20: Texas Blue Ammonia: On Track For Early 2025 and Ahead of Other Projects
Texas Blue Ammonia: On Track For Early 2025 and Ahead of Other Projects Milestones ❑ OCI’s 1.1 mtpa blue ammonia plant ✓ First greenfield blue ammonia facility of this scale to come onstream in the US and globally ❑ Well underway and in key construction phase: ✓ Piling is near completion ✓ Civil wor
Slide 21: Linde to Supply Clean Hydrogen and Nitrogen to OCI's Blue Ammonia Project
Linde to Supply Clean Hydrogen and Nitrogen to OCI’s Blue Ammonia Project ▪ Linde to supply 100% of facility's needs Blue NH3 Nitrogen ▪ Linde's total investment ~$1.8 billion Ammonia (NH3) - Connected to US Gulf Coast H2 pipeline network Blue H2 H2 Pipeline Air O2 Auto- ▪ Linde signed an agreement
Slide 22: OCI's Texas Blue Ammonia Economics
OCI’s Texas Blue Ammonia Economics Unparalleled Global Ammonia Logistical Capabilities and Export Platform Disciplined Commercial Strategy Focused on Maximising Netbacks Regulatory pressures1 increasing marginal cost pressure and capacity rationing Optimal location in Texas with key infrastructure i
Slide 23: Gasification Project in the Netherlands
Gasification Project in the Netherlands Addition of gasification complex to existing facility, utilizing waste feedstocks to produce renewable methanol, subject to regulatory incentives Milestones ✓ EU Innovation Fund application submitted in March Gasification 2023 Complex ✓ Discussions with the Du
Slide 24: Appendix
e Lara I Global Appendix 24
Slide 25: Q1 2023 Results
Q1 2023 Results Summary Key Financials1 and KPIs $ million unless otherwise stated Q1 '23 Q1 '22 %Δ Own-produced sales volumes sold in Q1‘23 vs. Q1’22: Revenue 1,371.3 2,327.8 (41%) Gross profit 197.4 863.5 (77%) ➢ Nitrogen volumes down 11% compared to Q1 2022 Gross profit margin 14.4% 37.1% Adjuste
Slide 26: Volumes by Segment
Volumes by Segment1 '000 metric tons Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 FY 2022 Nitrogen US Own Product 415 502 593 494 676 2,265 Ammonia 16 4 47 6 89 146 Urea 42 12 10 7 10 38 UAN 182 260 319 262 323 1,164 DEF 175 226 218 219 254 917 Traded Third Party 193 336 405 528 229 1,498 Ammonia 11 5 34 43 33 116
Slide 27: 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 Q1 '23 Q1 '22 Comment Operating profit as reported 99.7 789.7 Depreciation, amortization and impairment 149.4 146.0 EBITDA 249.1 935.7 APM adjustments for: Natgasoline 1
Slide 28: Lower Chinese Exports And Robust Indian Imports Supportive Of Nitrogen Prices
Lower Chinese Exports And Robust Indian Imports Supportive Of Nitrogen Prices Chinese Exports Curtailed on Domestic Demand and Closures Indian Imports Robust Despite New Capacity Commissioning China urea exports, Mt India imports, Mt 13.6 13.8 10.5 10.5 9.7 9.0 9.0 8.2 +30% 6.9 7.9 7.7 7.7 5.5 7.5 5
Slide 29: Limited New Nitrogen Capacity, offset by Higher Demand
Limited New Nitrogen Capacity, offset by Higher Demand Limited new urea capacity with good visibility given ~5-year project lead time Merchant ammonia market expected to be underpinned by cost curve economics Global urea net capacity additions and demand growth, ex-China, Mt1 Global ammonia net capa
Slide 30: Elevated Costs for Marginal Producers Supportive of Nitrogen Prices
Elevated Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2023F, $/MMBtu Cash Costs per ton of Ammonia 2017-2023F, $/t 80 Global differentials between US, North Africa and EU marginal costs remain wide 3,000 70 2,500 60 TTF futures are ~$16/MMBtu for 2023/2024
Slide 31: 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 3,483 - 3,483
Slide 32: Csi Global
Csi Global Csi Global