Slide 1: Q1 2024 Results Presentation
Q1 2024 Results Presentation 14 May 2024
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by OCI Global (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 s
Slide 3: Agenda
Agenda I. Strategic Review and Transactions Update II. Q1 2024 Performance III. OCI Global Overview i. OCI Methanol ii. OCI Nitrogen iii. OCI Clean Ammonia IV. Industry update V. Appendices 3
Slide 4: 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 5: Strategic Review and Transactions Update
Strategic Review and Transactions Update 5
Slide 6: Strategic Review and Transactions Update
Strategic Review and Transactions Update $7.2 billion expected gross cash proceeds crystallized from IFCo and Fertiglobe transactions in December 2023 • $6.2 billion net proceeds1/ ~€27 per share cash value2 • Fertiglobe and IFCo expected to close in 20241 • OCI expects to return at least $3 billion
Slide 7: Q1 2024 Performance
e Lara I Global Q1 2024 Performance
Slide 8: Q1 2024 Financial Summary
Q1 2024 Financial Summary Own Produced Sales Volumes (Mt) Ammonia NW Europe ($/t) Urea Egypt ($/t) Methanol US Contract ($/t) Nitrogen (discont.) Methanol -29% Nitrogen (cont.) -9% +2% 2.8 688 2.3 409 491 373 1.9 1.8 583 597 0.5 0.3 0.4 0.2 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1
Slide 9: Q1 2024 Free Cash Flow and Net Debt Movement
Q1 2024 Free Cash Flow and Net Debt Movement (Total and Continuing Operations) Change in net debt from 31st December 2023 to 31st March 2024 ($m) + 1,583 3,795 840 + 212 743 2,212 2,001 147 7 57 Continuing Net Debt Operating FCF Growth Capex Other Continuing Net Debt Fertiglobe IFCo Total Net Debt 3
Slide 10: Operational Improvements Offset Weaker Pricing Environment
Operational Improvements Offset Weaker Pricing Environment Continuing Operations Adjusted EBITDA Bridge YoY $ million European Nitrogen: +$77m YoY Methanol Group: +$5m YoY 25 25 33 47 11 8 24 5 92 80 127 -54 44 Q1 2023 Operational Lower Lower cost Lower gas Other Operational Lower Lower gas Q1 2023
Slide 11: Adjusted EBITDA on an Underlying Basis Moving Towards Mid-cycle
Adjusted EBITDA on an Underlying Basis Moving Towards Mid-cycle European Nitrogen Methanol Group $ million $ million 75 22 6 5 15 17 25 30 Q1 2024 Adj EBITDA Realized gas Q1 2024 Adj Q1 2024 Realized gas Winter freeze Other Q1 2024 Adj hedge losses EBITDA before Adj EBITDA hedge losses production EB
Slide 12: Methanol Group Reliability Improvement Initiatives
Methanol Group Reliability Improvement Initiatives Reduced operational losses on adjusted EBITDA Production benefiting from reliability improvements Losses included in Adjusted EBITDA, $ million Bars show production, ktpa Asset utilisation, % 93% 78% 90% OCI Beaumont 77 Ammonia Winter freeze product
Slide 13: 2024 Guidance
2024 Guidance Texas Blue Clean Special Dividend of Corporate cost target Ammonia at least $3bn $30-$40 million H1 2025 $1bn approved at EGM to be Run rate by 2025 Start-up(1) paid in H2 2024 2024 Growth Capex 2024 Maintenance Capex Net Cash by 2024 year-end; ~$600 million ~$125 million normalised le
Slide 14: OCI Global Overview
e Lara I Global OCI Global Overview 4
Slide 15: OCI Global Asset Profile Post Fertiglobe and IFCo Divestments
OCI Global Asset Profile Post Fertiglobe and IFCo Divestments OCI Texas Blue Clean Ammonia OCI European Nitrogen Business OCI Global Methanol Business First production H1 2025 OCI Beaumont Natgasoline OCI Nitrogen Rotterdam Import Terminal BioMCN/ OCI Delfzijl Distribution Leader in green #1 Global
Slide 16: Global Leader in Methanol with a Scalable Platform
Global Leader in Methanol with a Scalable Platform Leader in green US methanol Methanol Group Methanol Group #1 #2 methanol producer Today • 2.9Mtpa methanol production capacity of which 200ktpa is low carbon with an additional 365kt of ammonia capacity BioMCN • Global leader with secure access to l
Slide 17: Global Green Methanol Player Able to Capture Regulatory Green Premium
Global Green Methanol Player Able to Capture Regulatory Green Premium First mover advantage in growing road transportation and marine fuel markets 2016 2024 Future Green Volumes Sold <5kt Up to ~200ktpa #1 ~400ktpa + Green methanol producer globally 9 Years Leading market presence in green methanol
Slide 18: Large Scale and Diversified Premium European Downstream Nitrogen Portfolio
Large Scale and Diversified Premium European Downstream Nitrogen Portfolio Methanol OCI Nitrogen GroupNitrogen) (European Global melamine Today Rotterdam Import Terminal #1 producer • Leading integrated European nitrates producer with 2.6Mtpa fertilizer capacity OCI Nitrogen • Amongst the most energ
Slide 19: Premium Product Portfolio and Favourable Industry Trends
Premium Product Portfolio and Favourable Industry Trends AdBlue / CAN+S additions expand flexibility to switch between products and support margin improvement OCIN’s Portfolio of High Value-Added Products 1 Value-added downstream nitrates: demand and margin upside; MelaminebyOCI regulatory framework
Slide 20: Rotterdam will be Pivotal to Meeting EU Hydrogen Targets
Rotterdam will be Pivotal to Meeting EU Hydrogen Targets Ammonia cracking and marine bunkering support growth in ammonia imports through Rotterdam Rotterdam will be key to enabling EU H2 demand Upcoming EU H2 mandates will push industries to decarbonize OCI’s import terminal Industrial cluster • REP
Slide 21: The World's First Large-scale Greenfield Blue Ammonia Facility
The World’s First Large-scale Greenfield Blue Ammonia Facility TexasMethanol Blue CleanGroup Ammonia Competitive Advantages World’s first large • World’s first large scale (1.1Mtpa) greenfield blue ammonia production #1 scale greenfield clean facility – only greenfield blue ammonia project to reach
Slide 22: Project Remains on Track for Q2 2025 Start-up
Project Remains on Track for Q2 2025 Start-up Project execution advanced with focus on steel erection and mechanical work Piperack structure Dec-22 OCI’s groundbreaking Natgasoline Facility 96% engineering completed(1) New Ammonia Storage $561m(2) OCI Methanol Loading Dock spent as of 31 Beaumont (M
Slide 23: Texas Blue Clean Ammonia Competitive Advantages
Texas Blue Clean Ammonia MethanolCash Competitive GroupCosts StrategicMethanol Group Advantage for CBAM Methanol Revenue Stability andGroup Premium Upside • Inherent carbon advantage further enhanced by • Greenfield blue ammonia is the most cost- • Initially volumes sold into the US and Europe (with
Slide 24: Industry update
e Lara I Global Industry update 24
Slide 25: Methanol
e Lara I Global Methanol 25
Slide 26: Global Methanol Demand Overview
Global Methanol Demand Overview Methanol has several benefits based on its unique chemistry, scale, ease of transport and cost profile 2023 Global Methanol Demand by End Use Positive Demand Outlook DME • Used in a variety of applications, including wood products, paints, Methanol-to-Olefins Fuel coa
Slide 27: Methanol Pricing Expected to Benefit from Accelerating Demand and Tightening Supply
Methanol Pricing Expected to Benefit from Accelerating Demand and Tightening Supply Methanol is an attractive replacement bunker fuel for MGO, which creates a floor for grey methanol Moving Towards Mid-Cycle, US and Europe Prices Maintain Premium to Positive Existing Drivers in The Methanol Market C
Slide 28: Supply and Demand Dynamics Imply Significant Upside for Methanol
Supply and Demand Dynamics Imply Significant Upside for Methanol Methanol market demand driven by new energy applications Short-Term Moving Towards Mid-Cycle, Medium-term Outlook Methanol Supply & Demand Balance Inverting; Growing Demand in Marine Fuels Positive Methanol capacity vs. demand growth,
Slide 29: Methanol and Ammonia are Key Enablers of the Emerging Hydrogen Transition
Methanol and Ammonia are Key Enablers of the Emerging Hydrogen Transition Clean fuels offer material reductions in emissions versus conventional fuels IMO revised strategy Carbon Footprint of Low Carbon Methanol & Low Carbon Ammonia vs. Conventional Fuels ❑ In July 2023, the IMO adopted an ambitious
Slide 30: Regulation Driving Growth in Green Methanol Demand
Regulation Driving Growth in Green Methanol Demand Road and marine fuels are growing rapidly, with aviation offering substantial future upside Green Methanol, Expected Market Expansion Regulatory Driven Demand • RED III will set advanced target of 5.5% by energy with 1% to >16Mt be met by RFNBO’s (e
Slide 31: Methanol Demand as a Marine Fuel Continues to Accelerate
Methanol Demand as a Marine Fuel Continues to Accelerate Methanol marine orderbook is ramping up due to increasing interest from the bulker segment and retrofits Current Confirmed Methanol DF Engines Orderbook1 Incremental Methanol Demand From Marine Fuels, Mt Other Bulk carrier 7% 7% >7.5Mt +1,906%
Slide 32: Ammonia
e Lara I Global Ammonia 32
Slide 33: Ammonia Prices have Softened after Resilient Start to 2024; Nitrates Rangebound
Ammonia Prices have Softened after Resilient Start to 2024; Nitrates Rangebound Ammonia prices stabilized at ≈$460-470/t CFR Europe despite costs correction, whilst CAN hovering at €260/t end April Resilient prices backed by fundamental N demand Global ammonia trade recovery expected Healthy prospec
Slide 34: Limited New Ammonia Supply More Than Offset by Demand Growth
Limited New Ammonia Supply More Than Offset by Demand Growth Global merchant (grey + blue + green) ammonia supply and demand, Mt1 Total grey merchant supply New project (FEED) Total (grey + low carbon) demand 2023-26 New Project (FID) New project (Pre-FEED) • Merchant grey ammonia market is tight wi
Slide 35: Accelerating Low Carbon Ammonia Demand Driven by New Applications
Accelerating Low Carbon Ammonia Demand Driven by New Applications Accelerated Demand Growth Potential Low-Carbon Ammonia Post-2026 Key Demand Drivers Incremental Low-Carbon Ammonia Demand by End-Use, Mt 1 Maritime Fuels (21% of Total 2030 Low Carbon Demand) ~45 Mt • Maritime sector increasingly ince
Slide 36: Low Carbon Ammonia Supply Will Be Slow To Commission
Low Carbon Ammonia Supply Will Be Slow To Commission OCI’s Texas Blue Clean Ammonia project due to start production H1 2025 is ahead of the curve <25% of Project Announcements Get Built, and <30% Realized on Time Significant Low Carbon Ammonia Supply Bottlenecks Firm nitrogen projects in 2008 pipeli
Slide 37: Ammonia Bunkering Demand To Grow From 2026
Ammonia Bunkering Demand To Grow From 2026 Ammonia Newbuild Vessels And Retrofit Conversions To Accelerate Ammonia Vessel Adoption Pathway Ammonia potential fuel uptake based on Lloyds 2023 estimates for ships (new build and retrofits) 1 Number of ammonia ready and ammonia dual fuelled vessels on or
Slide 38: Appendices
e Lara I Global Appendices 38
Slide 39: Financial Statements
e Lara I Global Financial Statements 39
Slide 40: Q1 2024 Results – Key Financials & KPIs
Q1 2024 Results – Key Financials & KPIs Q1 '24 Q1 '23 %Δ Cont. Cont. Cont. Total Total Total Disc. Disc. Disc. $ million unless otherwise stated Revenue 513.0 711.3 1,224.3 502.6 868.7 1,371.3 2% -18% -11% Gross profit / (loss) 16.8 316.4 333.2 (110.3) 307.7 197.4 nm 3% 69% Gross profit / (loss) mar
Slide 41: Sales Volumes by Segment (1/2)
Sales Volumes by Segment (1/2) '000 metric tons Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 FY 2023 Nitrogen US Own Product 516 415 681 454 250 1,800 Ammonia 46 16 65 25 85 192 Urea 9 42 23 26 24 115 UAN 290 182 411 219 53 865 DEF 171 175 181 185 89 629 Traded Third Party 262 193 473 160 239 1,065 Ammonia 22 11 5
Slide 42: Sales Volumes by Segment (2/2)
Sales Volumes by Segment (2/2) '000 metric tons Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 FY 2023 Methanol1 Own Product 421 247 501 503 393 1,643 Ammonia2 69 25 99 75 87 285 Methanol 352 222 402 429 306 1,358 Traded Third Party 111 143 119 116 226 605 Methanol 77 130 96 86 199 511 Ethanol & Other 34 14 23 30 28
Slide 43: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of Reported Operating Income to Adjusted EBITDA Q1 '24 Q1 '23 Cont. Cont. Total Total Disc. Disc. $ million Comment Operating profit / (loss) as reported (40.4) 278.3 237.9 (158.7) 258.4 99.7 Depreciation, amortization and impa
Slide 44: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of Reported Net Profit / (Loss) to Adjusted Net Profit / (Loss) Q1 '24 Q1 '23 Cont. Cont. Total Total Disc. Disc. $ million Adjustments in P&L Reported net profit / (loss) attributable to shareholders (93.7) 119.4 25.7 (142.1)
Slide 45: Financial Statements – Income Statement
Financial Statements – Income Statement Three-month period Three-month period $ million Note ended 31 March 2024 ended 31 March 2023 Revenue (15) 513.0 502.6 Cost of sales (12) (496.2) (612.9) Gross profit / (loss) 16.8 (110.3) Other income 2.2 5.3 Selling, general and administrative expenses (12) (
Slide 46: Financial Statements – Cash Flow Statement (1/2)
Financial Statements – Cash Flow Statement (1/2) Three-month period Three-month period $ million Note ended 31 March 2024 ended 31 March 2023 Net profit / (loss) from continuing operations (97.7) (153.3) Adjustments for: Depreciation, amortization and impairment (12) 45.1 44.7 Interest income (13) (
Slide 47: Financial Statements – Cash Flow Statement (2/2)
Financial Statements – Cash Flow Statement (2/2) Three-month period Three-month period $ million Note ended 31 March 2024 ended 31 March 2023 Proceeds from borrowings (10) 282.1 602.9 Repayment of borrowings (10) (31.2) (108.8) Payment of lease obligations (7.0) (6.0) Newly incurred transaction cost
Slide 48: Maximum Proven Capacities
Maximum Proven Capacities Max. Proven Capacities¹ ('000 metric tons) Total Total Total2 Ammonia Ammonia Plant Country Urea UAN CAN / CAN+S Fertilizer Melamine4 DEF/AdBlue Nitrogen Methanol OCI (Gross) (Net)3 Iowa Fertilizer Company5 USA 926 195 438 1,832 - - 1,240 3,704 - 3,704 2,465 OCI Nitrogen5 N
Slide 49: Other Appendices
e Lara I Global Other Appendices 49
Slide 50: OCI Mid-Cycle Potential
OCI Mid-Cycle Potential OCI Mid-cycle Volume Upside ~$500m Mid-cycle Adjusted EBITDA (exc Texas Blue Clean Ammonia) Methanol, plus Ammonia-equivalent own-produced sold tons or MPC, Mt Blue Ammonia • Asset Utilization: Nitrogen products (Ammonia-equivalent tons) ✓ ~90% for ammonia and methanol (with
Slide 51: Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers
Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers Prior cycle Drivers Support Demand Driven Environment Current cycle (2015-2019) 30% 27% Corn stocks-to-use ratio 2023/24 corn stocks-to-use ratio ROBUST CROP PRICES and AFFORDABILITY SUPPORT NITROGEN DEMAND and PRICE $3.7/bushel $4
Slide 52: Robust Agricultural Fundamentals
Robust Agricultural Fundamentals Grain stocks-to-use ratio below the 10-year average supports farm incomes and increased planted acreage to rebuild stocks and nitrogen demand recovery Crop prices supported by stocks:use ratio below 10-year average Urea affordability improving m-on-m since end-Feb/ea
Slide 53: Limited New Nitrogen Capacity, Offset by Higher Demand
Limited New Nitrogen Capacity, Offset by Higher Demand Slower pace of new urea capacity additions with good visibility given ~5-year Merchant ammonia market expected to be underpinned by demand recovery & project lead time. Robust nitrogen demand for ag & tech use. cost curve economics Global urea n
Slide 54: Constrained Chinese Exports & Robust Indian Imports Supportive Of Nitrogen Prices
Constrained Chinese Exports & Robust Indian Imports Supportive Of Nitrogen Prices Chinese Exports Curtailed on Tighter Governmental Policy Indian New Capacity Does not Cover Shortfall in Supply. Imports lower y-on-y, but at ≤6 Mt China urea exports, Mt India imports, Mt India remains among top 3 ure
Slide 55: EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs & Production Centers
EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs & Production Centers Global Feedstock Prices 2017-2025F, $/MMBtu Cash Costs per ton of Ammonia 2017-2025F, $/t Global differentials between US, MENA and EU marginal costs remain wide 800 Arbitrage between international TTF futures are ~$10/MMB
Slide 56: Csi Global
Csi Global Csi Global