Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentationxx 12 May 2022 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: First Quarter Highlights and Outlook
First Quarter Highlights and Outlook Adjusted EBITDA of $970 million in Q1 2022 (+115%) and $3.0 billion LTM. Net debt declined $960 million to $1.26 billion as of 31 December 2021. Trailing net debt / adjusted EBITDA was 0.4x as of 31 March 2022 Outlook: Based on current visibility for volumes and
Slide 4: Table of Contents
Table of Contents H2 Q1 2022 Financial Market Outlook Capitalizing on the Appendix Performance Hydrogen Opportunity 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: Q1 2022 Results: Continued Strong Earnings And FCF
Q1 2022 Results: Continued Strong Earnings And FCF Summary Key Financials1 and KPIs $ million unless otherwise stated Q1’22 Q1’21 %Δ Revenue 2,327.8 1,119.6 108% Own-produced sales volumes sold in Q1 ‘22 vs. Q1 ’21: Gross Profit 863.5 340.4 154% Gross profit margin 37.1% 30.4% ➢ Nitrogen volumes dow
Slide 7: Q1 2022 Revenue Up 108% and Adjusted EBITDA Up 115%
Q1 2022 Revenue Up 108% and Adjusted EBITDA Up 115% Own-Produced Sales Volumes (Mt) Key Product Benchmark Prices, $/t Revenue ($m) Methanol Nitrogen +108% Urea Egypt Methanol US contract 0.5 2,328 0.3 +129% +25% 1,120 2.5 2.3 841 492 616 367 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1
Slide 8: Strong Balance Sheet Supports Consistent Capital Returns To Shareholders
Strong Balance Sheet Supports Consistent Capital Capital Allocation Priorities Returns To Shareholders OCI’s low net leverage allows a number of opportunities: Leverage targets achieved Net Debt1 (US$ m) 1 Flexibility to return capital to shareholders Net debt Net debt / adj. EBITDA Deleveraging des
Slide 9: Capital Allocation
Capital Allocation New capital returnPriorities policy Balance availability of funds and excess FCF Committed to a consistent base distribution + a variable component for dividend distribution while pursuing value based on surplus excess FCF1 accretive hydrogen / energy transition and other growth o
Slide 10: Q1 2022 Free cash flow and Net Debt Build-up
Q1 2022 Free cash flow and Net Debt Build-up Reconciliation of Q1 2022 EBITDA to Free Cash Flow 936 -196 -44 609 -57 -15 -10 -67 63 EBITDA Working Capital Maintenance Lease Payments Tax Paid Interest Paid Dividends Other Free Cash Flow Capex Paid to NCI Change in Net Debt from December 2021 to March
Slide 11: Table of Contents
Table of Contents H2 FY and Q4 2021 Market Outlook Capitalizing on the Appendix Financial Hydrogen Performance Opportunity 11
Slide 12: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Supporting Strong Pricing Outlook For 2022 and Beyond as We Recover From a 5-year Downturn Bull Market Drivers Support Demand Driven Environment Prior cycle (last 5-6 years) Next cycle (starting in 2022) CROP PRICES SUPPORTIVE OF HIGHER
Slide 13: Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment
Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment Strong support for nitrogen prices to reset above mid-cycle levels, given low global crop inventories, strong farm economics, higher marginal costs and recovering industrial demand Urea, Ammonia, CAN and UAN Prices (Monthly Averages,
Slide 14: Methanol Market Fundamentals Are Supportive, with Significant Long-term Upside
Methanol Market Fundamentals Are Supportive, with Significant Long-term Upside Methanol spot and contract prices Methanol supply & demand balance tightening Methanol contract and spot US prices, USD per metric ton Methanol capacity vs. demand growth, Million Mt USGC Contract US Gulf Coast Contract L
Slide 15: Higher Costs for Marginal Producers Supportive of Nitrogen Prices
Higher Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2022F, $/MMBtu Cash Costs per ton of Ammonia 2017-2022F, $/t 45 1600 TTF futures are ~$30MMBtu for 2022 and 40 Marginal costs have escalated on high end of cost c.$22/MMBtu in 2023/2024 1400 curve and not
Slide 16: Geopolitical Landscape Tightens Markets Further
Geopolitical Landscape Tightens Markets Further Recent Russia-Ukraine developments’ impacts on Russian and Ukraine shares of global trade and commodity outlook nitrogen, methanol and grain markets SANCTIONS: Export Fertilizer is exempt from some financial sanctions, Share but transactions are diffic
Slide 17: Agricultural Fundamentals Supports Robust Nitrogen Demand at Least Until 2024
Agricultural Fundamentals Supports Robust Nitrogen Demand at Least Until 2024 Crop prices supported by stocks : use ratio at 10 year lows, Attractive fertilizer affordability as crop price increases outpace inputs requiring at least until 2024 to replenish Fertilizer affordability Index, January 200
Slide 18: High Farm Incomes Supportive Of Demand
High Farm Incomes Supportive Of Demand 1 Supportive farm incomes in 2022: Farm operating margins (revenue above operating costs), USD/ha Farm margins are very attractive in key grain exporting regions as rising input costs have been US Brazil Brazil France US Corn offset by higher crop prices, incen
Slide 19: Attractive Nitrogen Dynamics With Demand Expected To Exceed Capacity Additions
Attractive Nitrogen Dynamics With Demand Expected To Exceed Capacity Additions Ex-China urea capacity additions slow relative to 2015-19, Mt Merchant ammonia market structurally tightening Global ammonia net capacity additions and demand growth, ex-China ex-urea, Mt 22.9 Capacity additions Demand Gr
Slide 20: Lower Chinese Exports And Higher Indian Imports Supportive Of Nitrogen Prices
Lower Chinese Exports And Higher Indian Imports Supportive Of Nitrogen Prices • Lower Chinese exports as a result of: Chinese Exports Curtailed on Domestic Demand and Closures – Government implemented measures to curb China urea exports, Mt exports and prioritise domestic supply until H2 Significant
Slide 21: Table of Contents
Table of Contents H2 FY and Q4 2021 Market Outlook Capitalizing on the Appendix Financial Hydrogen Performance Opportunity 21
Slide 22: Significant Incremental Ammonia Demand From New Clean Energy Applications
Significant Incremental Ammonia Demand From New Clean Energy Applications Clean Hydrogen is strongly positioned to lead the world’s energy transition, and ammonia is the key enabler ▪ Clean hydrogen use in energy applications will be a major contributor to emission reduction across industries where
Slide 23: Marine fuel represents a substantial market opportunity for OCI
Marine fuel represents a substantial market opportunity for OCI ▪ Ammonia and methanol are the only practical alternatives for long-distance shipping, even without decarbonization technologies, since they have a lower environmental footprint than HFO o Ammonia burns cleanest when used as energy sour
Slide 24: OCI is Very Well Positioned to Capture the Hydrogen Potential
OCI is Very Well Positioned to Capture the Hydrogen Potential Located in Proximity to Renewable Energy Sources and Shipping Hubs Asset Base with Existing Access to the Entire Hydrogen Supply Chain Optimal solar/wind resources Upstream 3rd party providers Least Most Merchant Blue CO2 sequestration OC
Slide 25: Key OCI Highlights
Key OCI Highlights Leading nitrogen and methanol producer with globally diversified asset base and highly attractive position 1 on industry cost curve High quality young asset base resulting in higher margins, potential to grow volumes and better 2 emissions profile Structural shift into a demand-dr
Slide 26: Table of Contents
Table of Contents H2 FY and Q4 2021 Market Outlook Capitalizing on the Appendix Financial Hydrogen Performance Opportunity 26
Slide 27: Appendix Q1 2022 Results
OcI Appendix Q1 2022 Results 27
Slide 28: 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 ‘22 Q1 ‘21 Adjustment in P&L Operating profit as reported 789.7 280.6 Depreciation and amortization 146.0 150.2 EBITDA 935.7 430.8 APM adjustments for: Natgasoline 37
Slide 29: Reconciliation of EBITDA to free cash flow and change in net debt
Reconciliation of EBITDA to free cash flow and change in net debt $ million Q1'22 Q1'21 EBITDA 935.7 430.8 Working capital (196.4) (20.3) Maintenance capital expenditure (44.2) (55.9) Tax paid (57.4) (15.9) Interest paid (14.7) (18.8) Lease payments (9.7) (9.3) Dividends from equity accounted invest
Slide 30: Appendix About OCI
OcI Appendix About OCI 30
Slide 31: 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 32: 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 33: Structurally Higher Realised Netbacks in OCI
Structurally Higher Realised Netbacks in OCI Structural advantage Low-freight Costs, Duty-free Access, Direct-to-customer Strategy and Inland supplemented by strong in-house Distribution in US and Europe Enables Structural Netback Advantages capabilities and trading platform GCC Baltic Black Sea Pro
Slide 34: 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 35: 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