Slide 1: Q2 2021 Results Presentation
Q2 2021 Results Presentationxx 02 August 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: Record earnings, free cash flow accelerating, net debt reduced by a further $390 million in Q2
Record earnings, free cash flow accelerating, net debt reduced by a further $390 million in Q2 Record adjusted EBITDA of $535 million (+144%) achieved in Q2 2021, resulting in accelerated Free Cash Flow Deleveraging of $390 million during Q2, resulting in a total reduction of $697 million since 31 D
Slide 4: Table of Contents
Table of Contents H2 Q2 2021 Financial Fertiglobe Market Outlook Capitalizing on the Appendix Performance performing as the Hydrogen leading global Opportunity nitrogen exporter 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: Q2 2021 results: accelerating earnings and strong FCF
Q2 2021 results: accelerating earnings and strong FCF Summary Key Financials1 and KPIs $ million unless otherwise stated Q2 2021 Q2 2020 %Δ H1 2021 H1 2020 %Δ Own-produced volumes sold were flat in Q2 2021 vs. Q2 2020 Revenue 1,462.9 875.4 67% 2,582.5 1,686.5 53% Gross Profit 404.6 126.7 219% 745.0
Slide 7: Accelerated deleveraging in 2021
Accelerated deleveraging Accelerated deleveraging in 2021 ✓ C.$700 million deleveraging in H1 2021 and we expect a drop in net Focus on deleveraging towards 2x net leverage through the cycle leverage to below our target of 2x through the cycle by end of 2021 Net Debt1 (US$ m) Lower interest costs De
Slide 8: Table of Contents
Table of Contents H2 Q2 2021 Financial Fertiglobe Market Outlook Capitalizing on the Appendix Performance performing as the Hydrogen leading global Opportunity nitrogen exporter 8
Slide 9: Fertiglobe performs as the leading global nitrogen exporter
Fertiglobe performs as the leading global nitrogen Fertiglobe unique competitive exporter strengths Own-Produced Sales Volumes (Mt) Revenue ($m) 1 Largest seaborne export platform of 6.2 2,073 nitrogen products globally 1.4 1.0 1,551 1.2 1,238 1,260 2 Strategically located, high quality assets 2.9 2
Slide 10: Largest nitrogen fertilizer exporter globally
Largest nitrogen fertilizer exporter globally ~10% of Combined Ammonia & Urea Global Seaborne Exports Significant scale advantages 2020 Ammonia and Urea Combined Export Production, Mtpa1,2 1 Large scale strategically located platform with ability to direct volumes to highest 6.6 6.3 netback markets
Slide 11: High quality asset base with 50% of capacity younger than 10 years
High quality asset base with 50% of capacity younger than 10 years Asset Base Age(1) vs. Industry Average(2) Young Assets allow for: EBITDA FCF 50% Higher reliability and onstream time ✓ ✓ Better gas conversion ✓ ✓ 41% Lower maintenance capex ✓ 25% 23% 15% 12% 13% 11% 10% -- 0 - 10 years 11-20 years
Slide 12: Fertiglobe structurally benefits from an attractive cost curve position
Fertiglobe structurally benefits from an attractive cost curve position Fertiglobe benefits from attractively priced, long-term feedstock gas contracts and low conversion costs, positioning it in the 1st quartile of the cost curve ✓ Long-term gas supply agreements with EGPC in Egypt, Sonatrach in Al
Slide 13: Table of Contents
Table of Contents H2 Q2 2021 Financial Fertiglobe Market Outlook Capitalizing on the Appendix Performance performing as the Hydrogen leading global Opportunity nitrogen exporter 13
Slide 14: Supportive nitrogen outlook and pricing expected to be sustained
Supportive nitrogen outlook and pricing expected to be sustained Nitrogen markets reach inflection point Bull market drivers support higher nitrogen prices Ammonia, Urea, CAN and UAN Pricing ($/t) CROP PRICES Strong Chinese demand, lower corn production from Brazil Ammonia FOB Middle East Urea FOB E
Slide 15: Demand driven pricing environment as fundamentals set to remain positive
Demand driven pricing environment as fundamentals set to remain positive Crop prices supported by low stocks:use ratio, vs ’08 and ’15 peaks Chinese corn imports expected higher tightening global corn markets Crop price index, Jan 2006 = 100 Global grain and oilseed stocks:use ratio (excluding China
Slide 16: Limited New Supply and Higher Urea Demand from China and India
Limited New Supply and Higher Urea Demand from China and India Merchant ammonia market expected to significantly tighten Urea capacity additions slow relative to 2015-19 Global ammonia capacity additions ex-China ex-urea, Million Mt Global urea capacity additions ex-China, Million Mt Capacity additi
Slide 17: 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 USGC Contract USGC Spot Prices China2016-2021F CFR Main Ports Methanol capacity vs demand growth, Million Mt Capacity D
Slide 18: 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 16 700 Marginal costs have escalated 14 600 on high end of cost curve 12 500 10 400 8 300 6 4 200 2 100 0 0 Jul-17 Jan-17 Apr-17 Jan-18 Apr-18 Jul-18 Jan
Slide 19: Table of Contents
Table of Contents H2 Q2 2021 Financial Fertiglobe Market Outlook Capitalizing on the Appendix Performance performing as the Hydrogen leading global Opportunity nitrogen exporter 19
Slide 20: Green Hydrogen Is Expected to Grow 10x by 2030
Green Hydrogen Is Expected to Grow 10x by 2030 In a Decarbonized World by 2050, Hydrogen Demand Could Grow up to 10-fold, Supported by Drop in Production Costs and Regulatory Push to Address Climate Change Global Energy Demand Supplied with Hydrogen(1) Supportive Regulatory Environment EJ 78 Power ▪
Slide 21: 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 22: Fertiglobe is Ideally Positioned to Capitalize on the Hydrogen Opportunity
Fertiglobe is Ideally Positioned to Capitalize on the Hydrogen Opportunity Established exporter globally of seaborne merchant ammonia with trading expertise and infrastructure Green ammonia Ability to serve European import demand for clean ammonia for Strategically located East and West of the Suez
Slide 23: 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% 29% 31% 36% 38% 166 182 129 145 26 40 24 26 22 129 138 140 142 68 19 58 44 23 Today 2025 2030 203
Slide 24: Zero carbon shipping needs ammonia and methanol: exponential potential demand
Zero carbon shipping needs ammonia and methanol: exponential potential demand Grey and blue ammonia and methanol pathways close to cost parity1 Ammonia and methanol shipping demand by 20502 € mn per annum Metric ton xx CO2 cost required to break even with HFO, EUR/ton 4 – 5x 6 – 7x xx Additional pri
Slide 25: Appendix: About OCI
OcI Appendix About OCI 25
Slide 26: 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 27: 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 28: 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 29: 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