Slide 1: Q4 and FY 2018 Results Presentation
Q4 and FY 2018 Results Presentation February 2019
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: Key Highlights
Key Highlights A global leader in nitrogen and methanol with excellent diversification Favourable positioning on the cost curve with state-of-the-art asset base Substantial cash generation ability post end of capex program with volume ramp up Highly strategic locations for the fertilizer and methano
Slide 4: Overview Fourth Quarter and Full Year 2018 Results
Overview Fourth Quarter and Full Year 2018 Results Highlights Summary Key Financials1) and KPIs Q4 2018 Q4 2017 %Δ 2018 2017 %Δ Revenue 941.5 642.0 47% 3,252.5 2,251.5 44% Own-produced volumes sold +20% in Q4 2018 vs. Q4 2017 Gross Profit 155.5 63.2 146% 622.1 320.4 94% • Record 9.4 million tons own
Slide 5: Adjusted EBITDA Improves 102% in Q4 2018 Compared to Q4 2017
Adjusted EBITDA Improves 102% in Q4 2018 Compared to Q4 2017 ▪ Fourth quarter adjusted EBITDA increased 102% o An increase of 20% in own-produced volumes and on average higher realized selling prices o Result of the higher revenues and realization of higher margins o Strong increase in EBITDA at IFC
Slide 6: Strong FCF in Q4 2018 Results in $295 Million Lower Net Debt during Q4
Strong FCF in Q4 2018 Results in $295 Million Lower Net Debt during Q4 Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt Q4 2018 Q4 2017 2018 2017 EBITDA 248.8 122.7 929.2 479.2 Working capital 145.0 76.1 83.9 (60.5) Maintenance capital expenditure (21.1) (22.8) (136.1) (61.4) Tax pa
Slide 7: Assumptions for 2019
Assumptions for 2019 1 Volume drivers: ✓ Natgasoline: 2019 is first full year of production ✓ Iowa Fertilizer Company: • Full year run-rate contribution and benefit of permit changes in 2019 • Expected doubling in diesel exhaust fluid volumes ✓ BioMCN: start-up of second line in spring 2019 ✓ OCI Be
Slide 8: Limited New Capacity Additions Below Trend Demand Growth
Limited New Capacity Additions Below Trend Demand Growth Global urea capacity additions (ex-China) below demand growth Methanol demand growth expected to significantly outstrip supply Million mt Supply and Demand Figures are Cumulative Significant structural Bolivia Indonesia Iran Europe & CIS Egypt
Slide 9: Global Leader in Fertilizers and Industrial Chemicals
Global Leader in Fertilizers and Industrial Chemicals Global Nitrogen fertilizer capacity1 ✓ Globally competitive cost 30 23.4 23.0 14.8 13.11 12.3 9.4 positions 25 ✓ Advantageous selling price Fertilizers 20 mtpa 15 position in the US Midwest Corn 10 Belt and US Gulf Industrial Hub, 5 access to Eur
Slide 10: Production Capacity Footprint is Well-positioned Globally
Production Capacity Footprint is Well-positioned Globally1 Methanol Production Footprint Fertilizer Production Footprint BioMCN – Netherlands OCI Nitrogen – Netherlands Egyptian Fertilizer Co (EFC) – Egypt ▪ Acquired: 2015 ▪ Acquired: 2010 ▪ Acquired: 2008 ▪ 100% owned ▪ 100% owned ▪ 100% owned Prod
Slide 11: Strategic Locations for Fertilizer Facilities Allow Enhanced Netbacks for Products
Strategic Locations for Fertilizer Facilities Allow Enhanced Netbacks for Products A global production and distribution footprint with domestic-focussed assets as well as an export-focused platform, supported by a disciplined commercial approach A Stable customer base in domestic-focused regions Eur
Slide 12: Global Methanol Supply Platform with Efficient Distribution & Logistics Network
Global Methanol Supply Platform with Efficient Distribution & Logistics Network OCI Methanol Marketing (OMM) Natgasoline ▪ OMM, a wholly-owned subsidiary, markets ▪ OCI Beaumont and Natgasoline OCI’s equity methanol portfolio globally both strategically located at heart of ‒ 2.95 mtpa from 3 methano
Slide 13: Investing in Environmental Solutions
Investing in Environmental Solutions 4 Investing in products and initiatives to provide cleaner and more sustainable solutions to our customers Diesel Exhaust Fluid (AdBlue) Bio-Methanol as an Advanced Biofuel ▪ DEF, also known as AdBlue, is a urea solution that can be injected ▪ Leading bio-methano
Slide 14: Appendix – Q4 and FY 2018 Results
Appendix – Q4 and FY 2018 Results 14
Slide 15: Product Sales Volumes ('000 metric tons)
Product Sales Volumes (‘000 metric tons) Q4 2018 Q4 2017 %Δ 2018 2017 %Δ Own Product Ammonia 450.7 358.8 26% 2,013.1 1,477.8 36% Urea 749.4 696.0 8% 2,960.8 2,517.9 18% Calcium Ammonium Nitrate (CAN) 253.5 232.6 9% 1,063.8 1,189.3 (11%) Urea Ammonium Nitrate (UAN) 464.7 371.4 25% 1,538.4 752.4 104%
Slide 16: Net Income Bridge to Adjusted Net Income
Net Income Bridge to Adjusted Net Income $ million Q4 2018 Q4 2017 2018 2017 Adjustment in P&L Reported net income attributable to shareholders (18.7) (56.1) (48.7) (103.6) Adjustments for: Adjustments at EBITDA level 20.2 10.5 8.3 155.1 Add back: Natgasoline EBITDA adjustment (27.2) - (44.9) - Inco
Slide 17: Appendix – New Segment Information
Appendix – New Segment Information 17
Slide 18: Segment Information
Segment Information Segments 2018 $ million Chemicals Chemicals Fertilizers Fertilizers Fertilizer Other Elimination Total US Europe US Europe MENA Segment revenues 549.5 238.2 489.1 906.8 1,237.6 3.7 - 3,424.9 Inter-segment revenues (77.8) (1.1) - (0.4) (93.1) - - (172.4) Total revenues 471.7 237.1
Slide 19: Segment Information (Quarters 2018)
Segment Information (Quarters 2018) Chemicals Chemicals Fertilizers Fertilizers Fertilizer $ million Other Elimination Total US Europe US Europe MENA Q4 2018 Total revenues 140.2 66.7 147.7 255.0 331.9 - - 941.5 Gross profit 23.5 -19.7 35.7 27.7 99.1 -1.4 -9.4 155.5 Operating profit 0.5 -15.6 30.8 2
Slide 20: Segment Information (Quarters 2017)
Segment Information (Quarters 2017) Chemicals Chemicals Fertilizers Fertilizers Fertilizer $ million Other Elimination Total US Europe US Europe MENA Q4 2017 Total revenues 90.0 50.5 79.5 220.7 200.1 1.1 - 641.9 Gross profit 29.1 7.8 -16.8 16.3 26.7 0.1 - 63.2 Operating profit 20.8 6.5 -23.1 9.2 15.
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