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Oci Nv — Investor Presentation (February 2018)
23 slides from Oci Nv's investor presentation, February 2018
Slide 1: OCI N.V. Investor Presentation
OCI N.V. Investor Presentation February 2018
Slide 2: OCI N.V. Investment Highlights
OCI N.V. Investment Highlights Positive outlook: step-up of volumes and low capex requirement expected to result in significant cash generation ▪ OCI’s total capacity to reach 14.3 mtpa1) in 2018 Capacity Expansion Plan ▪ Iowa Fertilizer Company will have first full year of operations in 2018 98% Co
Slide 3: A 10-year Journey to Become a Globally Diversified Platform
A 10-year Journey to Become a Globally Diversified Platform 2008 2013 2019 run-rate1 Site locations 1 5 8 Capacity: 1.3mtpa Capacity: 7.5mtpa Capacity: 14.3mtpa USA North 13% Africa USA 28% 39% Capacity split by Europe geography 29% North North Africa Africa 58% 100% Europe 33% DEF Melamine 3% Sella
Slide 4: Global Positioning – Production Capacity Footprint
Global Positioning – Production Capacity Footprint OCI Partners LP (OCI Beaumont) – TX, US BioMCN – Netherlands OCI Nitrogen – Netherlands ▪ Acquired: 2011 ▪ Acquired: 2015 ▪ Acquired: 2010 ▪ MLP: OCIP listed on NYSE ▪ 100% owned ▪ 100% owned in 2013, 88.25% owned Product ktpa Product ktpa Product k
Slide 5: Global Positioning – Leader in Fertilizers and Industrial Chemicals
Global Positioning – Leader in Fertilizers and Industrial Chemicals OCI NV Overview ▪ Globally competitive cost positions ▪ Advantageous positioning in the US Midwest, access to European in-land premium and strategic ports in North Africa Fertilizers Industrial Chemicals #4 #2 54 #1 #5 #1 #1 Global
Slide 6: State-of-the-Art Assets – Young Asset Age Compared to Peers
State-of-the-Art Assets – Young Asset Age Compared to Peers OCI's capacity breakdown per vintage Global ammonia capacity breakdown ex-China (% of total capacity) (% of total capacity) OCI Nitrogen BioMCN EFC EBIC Sorfert OCIP2 IFCo Natgasoline ~75% of global capacity >20 years old Youngest asset bas
Slide 7: Strong Free Cash Flow Generation Directed Towards Deleveraging
Strong Free Cash Flow Generation Directed Towards Deleveraging Increasing production capacity (million mtpa) 1) … 14.3 +59% DEF Melamine 9.0 Methanol ▪ Completion of major capex programs UAN ‒ No remaining growth capex other than restart of CAN mothballed second production line at BioMCN Urea Net am
Slide 8: New Capacity Additions 2017 - 2018
New Capacity Additions 2017 - 2018 Iowa Fertilizer Co (IFCo) Natgasoline BioMCN ▪ Completion date: ▪ World-scale greenfield methanol plant: ▪ Doubling capacity: – Started production and sales in April 2017 – 1.8 mtpa capacity in Beaumont, Texas – Refurbishment of mothballed second plant – All produc
Slide 9: Egyptian Operations Returned to Normalized Run-Rates in 2017
Egyptian Operations Returned to Normalized Run-Rates in 2017 Egypt to again become self-sufficient in natural gas in 2018 given significant recent gas discoveries ▪ Production from new gas fields, particularly ENI’s Zohr and BP’s West Nile Delta (WND) is ramping up ‒ WND fields started production in
Slide 10: Fertilizer Prices Poised for Recovery in Tightening Market
Fertilizer Prices Poised for Recovery in Tightening Market Ammonia NW Europe CFR ($/t) Midcycle Average Ammonia Urea Granular Egypt FOB ($/t) 800 Midcycle Average Urea CAN CIF Germany (€/t) Midcycle Average CAN 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ▪ Current fertilizer benc
Slide 11: Tightening of Global Nitrogen Supply-Demand to Support Fertilizer Market
Tightening of Global Nitrogen Supply-Demand to Support Fertilizer Market New global urea capacity start-ups excl. China (mtpa) (millions of metric tons) ▪ Capacity additions peaked in 2016 / H1 2017 5.0 ▪ Total incremental supply outside China 2018 – 2021 estimated at ~8 4.2 Nigeria million tons, be
Slide 12: Industrial Chemicals Trajectory Highly Favorable
Industrial Chemicals Trajectory Highly Favorable 1,200 2,000 Methanol US ($/t) Methanol Midcycle Melamine NW Europe (EUR/t) Melamine Midcycle 1,800 1,000 1,600 1,400 800 Melamine (€/t) Methanol ($/t) 1,200 600 1,000 800 400 600 400 200 200 0 0 2007 2008 2009 2011 2012 2013 2015 2016 2018 ▪ Methanol
Slide 13: Robust and Growing Global Methanol Market
Robust and Growing Global Methanol Market ▪ 2017 global demand was c. 89 mt Global Methanol Capacity Additions 2017 - 2020 ▪ The main drivers of growing methanol demand include Company Plant Name/ Location Capacity (k MT) Startup Chinese chemical self-sufficiency, increased construction OCI N.V Natg
Slide 14: Significant Methanol Growth Expected from Multiple End-Use Applications
Significant Methanol Growth Expected from Multiple End-Use Applications MTO / MTP Demand Growth ▪ MTO / MTP demand grew at 34% CAGR from 2012-2017 and is forecasted to develop at an average rate of 13% through 2022 (mm t) 39.2 40.0 – China’s effort to be chemical self-sufficient has prompted the MTO
Slide 15: Fast-Growing DEF Segment in the US, Europe and China
Fast-Growing DEF Segment in the US, Europe and China ▪ Increase in DEF consumption on the back of Billion gallons environmental constraints on diesel in Europe and Forecasts the US 1.44 1.48 15% CAGR 1.37 1.41 ‒ Introduction of Greenhouse Gas standards in 1.31 the US 1.24 Historical and 1.15 1.05 fo
Slide 16: Growing Melamine Market at Stable Prices
Growing Melamine Market at Stable Prices Main melamine manufacturers outside China – % global capacity ▪ 13% market share in 2017 (1,525kt of demand in 2017) ▪ OCI Nitrogen is the global leader in melamine, with the largest 11% single line melamine plant in the world OCI Nitrogen 9% ▪ Although China
Slide 17: Appendix
Appendix OCI
Slide 18: Iowa Fertilizer Company | Aerial Site
Iowa Fertilizer Company | Aerial Site 18
Slide 19: Natgasoline | Aerial Site
Natgasoline | Aerial Site OCI 19
Slide 20: Global Distribution Network
Global Distribution Network Global trading platform capable of moving more than 2 mtpa creates additional volume security and room to grow market share Global Distribution and Logistics Infrastructure Port access both east and west of Suez Canal ▪ Arzew and Bethouia (Algeria), Sokhna (Egypt), Rotter
Slide 21: Production Capacity Overview
Production Capacity Overview Max. Proven Capacities¹ Total Total ('000 metric tons) Fertilizer For Fertilizer & Sale Chemicals For Sale Plant Country Ownership2 Ammonia Ammonia Urea UAN4 CAN Methanol Melamine5 DEF Gross Net3 Egyptian Fertilizers Company Egypt 100% 876 - 1,648 - - 1,648 - - - 1,648 E
Slide 22: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS DOCUMENT IS NOT AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN
Slide 23: 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