Oci Nv · EURONEXT:OCI
Oci Nv — Investor Day (March 2021)
37 slides from Oci Nv's investor day presentation, Mar 8, 2021
Slide 1: ESG Strategy Investor Day
ESG Strategy Investor Day xx Building a sustainable company for the future 8 March 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: Today's Presenters
Today’s Presenters Nassef Sawiris Ahmed El-Hoshy Hassan Badrawi Maud de Vries Bart Voet Heike van de Kerkhof Executive Chief Executive Chief Financial Chief Legal and Vice President Independent Non- Chairman Officer Officer Human Capital Manufacturing Executive Director Officer 3
Slide 4: Capitalizing on the Hydrogen Opportunity
Capitalizing on the Hydrogen Opportunity OCI’s unique strategic geographic and product footprint will drive the hydrogen transformation through value enhancing opportunities to decarbonize food, fuel, and feedstock Focus on value creation and maintaining strong capital discipline when pursuing decar
Slide 5: Agenda
Agenda H2 Capitalizing on Decarbonizing Fulfilling customer Focus on value Accelerating Building on our the Hydrogen the transport demand to creation and operational strong governance Opportunity sector using decarbonize OCI’s capital discipline excellence and sustainability ammonia and value chain
Slide 6: Hydrogen Economy is the largest value accretive opportunity for OCI
Hydrogen Economy is the largest value accretive opportunity for OCI OCI opportunities: ammonia and methanol are the only hydrogen carriers capable of decarbonizing our key sectors Growth in hydrogen demand driven key OCI sectors1 Ammonia and methanol form ~50% of grey hydrogen use and are key produc
Slide 7: OCI's strategic footprint will capture the hydrogen potential
OCI’s strategic footprint will capture the hydrogen potential We are uniquely positioned to drive the hydrogen economy through our geographic OCI’s unique advantages presence & product mix Optimal solar/wind resources • One of the largest ammonia and Least Most methanol producers in the world OCI pr
Slide 8: OCI's MENA assets ideally positioned to capitalize on abundant renewable energy
OCI’s MENA assets ideally positioned to capitalize on abundant renewable energy and supply Europe’s hydrogen shortfall Capitalizing on execution track record with strong public and private partnerships in place OCI’s MENA assets • Existing ammonia facilities and infrastructure represent ideal platfo
Slide 9: 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 FUREC Renewable methanol from Carbon Capture and Storage Bio-fuels and
Slide 10: OCI will drive decarbonization through a 20% emission reduction target
OCI will drive decarbonization through a 20% emission reduction target1, achieved with value enhancing operational and environmental initiatives Transition pathway ~5-7.5% emission reduction through ~12.5-15% emission reduction through new Green Other solutions Blue operational excellence strategic,
Slide 11: Agenda
Agenda H2 Decarbonizing Fulfilling customer Focus on value Accelerating Building on our Capitalizing on operational strong governance the transport demand to creation and the Hydrogen sector using decarbonize OCI’s capital discipline excellence and sustainability Opportunity policies ammonia and val
Slide 12: OCI's products are key to decarbonizing the maritime sector
OCI’s products are key to decarbonizing the maritime sector Emissions, CO2 / MJ (indicative) More practical/available Less practical/available Shipping makes up 3% of global Grey/ brown Blue Green GHG emissions and is one of the hardest sectors to decarbonize Fuel oil Ammonia and methanol will likel
Slide 13: Ammonia and methanol expected to be the cheapest zero-carbon fuel for container ships
Ammonia and methanol expected to be the cheapest zero- carbon fuel for container ships in 2030 EUR M p.a. for container ship1 and bunkering location in the Middle East, 2030 Capex3 O&M xx CO2 cost required to break even with HFO, EUR/ton xx Additional price per jeans, EUR Fuel xx Fuels OCI can produ
Slide 14: Strong demand pull and willingness to pay from end customers
Strong demand pull and willingness to pay from end customers offsets small increase in end-product price Added cost to Relative price Vessel type Transported end product1 increase of end Typical shipping and owner good Typical route End-product USD product1 end client Container 1 pair of jeans Jeans
Slide 15: Marine fuel demand potential presents a large opportunity for OCI
Marine fuel demand potential presents a large opportunity for OCI IMO aims to reduce carbon emissions from shipping by >50% by 2050 and 2050 outlook potential for ammonia and methanol as a substitute for HFO1, Mt2 this cannot be achieved without ammonia and methanol One container ship’s annual route
Slide 16: OCI's global distribution network is strategically located at key bunkering hubs
OCI’s global distribution network is strategically located at key bunkering hubs on major shipping lanes OCIN/OTE Terminal Rotterdam is next to the busiest bunker hub in the world OCI has production plants located along the busiest trading routes in the world OCI Beaumont Houston OCI is located at o
Slide 17: Adoption of grey and blue ammonia and methanol; marine value chain MOUs
Low carbon attractiveness of green ammonia and methanol by 2050 will drive adoption of grey and blue demand in the 2020s OCI has signed MOUs to create a marine value chain and start the commercialization of ammonia and methanol as shipping fuels by 2023/24 1. OCI, MAN Energy Solutions (MAN) and Ha
Slide 18: OCI's existing premium priced green products are underpenetrated and fast growing
OCI’s existing premium priced green products are underpenetrated, fast growing and are key to decarbonizing the road transport sector OCI’s bio-methanol will help decarbonize the transport sector and is key to meeting US, UK and EU renewable fuel targets Feedstocks include: Bio-methanol is a fast-
Slide 19: DEF eliminates NOx from diesel exhaust emissions and improves fuel efficiency
DEF1 eliminates NOx from diesel exhaust emissions and improves fuel efficiency in SCR equipped engines DEF demand is expected to grow by more than 15% DEF is priced at a premium to urea and is one of OCI’s over the medium-term fastest-growing products • Growth driven by regulations in the US and EU
Slide 20: Agenda
Agenda H2 Decarbonizing Leveraging Focus on value Accelerating Building on our Capitalizing on operational strong governance the transport customer demand creation and the Hydrogen excellence and sustainability sector using to decarbonize capital discipline Opportunity ammonia and OCI’s value chain
Slide 21: OCI fulfills customer demands to reduce emissions in the value chain
OCI fulfills customer demands to reduce emissions in the value chain Example industries and end markets Demand is materializing as OCI growth opportunities ESG trends accelerate Sustainability push is a major catalyst for demand for OCI’s decarbonized products Scope 3 targets of customer Fertilizers
Slide 22: Case Study: Decarbonizing AnQore's acrylonitrile value chain
Case Study | Decarbonizing AnQore’s acrylonitrile value chain has begun with green ammonia production at OCI Nitrogen Low carbon ammonia Scope 3 reduction of Significant scope 3 Scope 1 reduction of 50% over from OCI decarbonizes 60% over grey reduction for OCI and grey ammonia Acrylonitrile1 AnQore
Slide 23: Agenda
Agenda H2 Decarbonizing Fulfilling customer Focus on value Accelerating Building on our Capitalizing on operational strong governance the transport demand to creation and the Hydrogen sector using decarbonize OCI’s capital discipline excellence and sustainability Opportunity policies ammonia and val
Slide 24: We have developed a strong value creation logic to evaluate our sustainability projects
We have developed a strong value creation logic to evaluate our sustainability projects Full focus on deleveraging towards 2.0x net leverage through the cycle Net debt, $m 7.0x Net debt Net debt / adj. EBITDA 4,500 4.4x 5.4x 4,000 4.3x 3,500 <3.0x 2x 3,000 2,500 2,000 2017 2018 2019 2020 2021 Guidan
Slide 25: Operational excellence drives quick wins in the short-term
Operational excellence drives quick wins in the short-term, coupled with value-enhancing initiatives in the long-term As part of our hydrogen strategy, OCI is developing numerous projects at various stages of maturity, with final we have developed a strong investment decision dependent on regulati
Slide 26: Capital Allocation Targets
Capital Allocation Targets Maintaining strong capital discipline We can achieve a large proportion of our targets and generate positive returns with limited incremental capital spend : Total Capex Spend (US $m) Total Capacity (Mtpa) o 45% of our GHG reduction commitment is zero to low capital expe
Slide 27: Agenda
Agenda H2 Decarbonizing Fulfilling customer Focus on value Accelerating Building on our Capitalizing on operational strong governance the transport demand to creation and the Hydrogen sector using decarbonize OCI’s capital discipline excellence and sustainability Opportunity policies ammonia and val
Slide 28: Young age and state-of-the-art asset base give us a strong starting point
Young age and state-of-the-art asset base give us a strong starting point OCI has state-of-the-art new facilities and we Youngest asset base relative to peers with have invested heavily in our older plants significant improvement in conversion rates • $500M invested in OCIN since 2010 to improve con
Slide 29: OCI's commitment to safety is a key enabler for manufacturing excellence
OCI’s commitment to safety is a key enabler for manufacturing excellence Relentless focus on process safety is a key OCI’s incident rate has materially improved enabler for manufacturing excellence OCI is implementing the highest international safety standards to Following a period of capital-intens
Slide 30: OCI's Global Manufacturing Excellence Program is founded on 3 key pillars
OCI’s Global Manufacturing Excellence Program is founded on 3 key pillars Process safety enables reliability, which in turn enables energy efficiency to achieve lower GHG emissions Process Safety Reliability Energy Efficiency Leading process safety design elements Site-led improvement programs r
Slide 31: Agenda
Agenda H2 Decarbonizing Fulfilling customer Focus on value Accelerating Building on our Capitalizing on operational strong governance the transport demand to creation and the Hydrogen sector using decarbonize OCI’s capital discipline excellence and sustainability Opportunity policies ammonia and val
Slide 32: Strong governance framework underpins decarbonization strategy
Decarbonization and a sustainable value creation strategy are underpinned by a strong governance framework OCI’s governance set up to oversee the decarbonization strategy… …while driving best practices across our value chain Dedicated Board oversight Executive compensation Governance and compliance
Slide 33: OCI is committed to meaningful social development
OCI launched a Diversity & Inclusion program at both the board and group levels to drive female representation Increased female representation on the board to OCI is committed to 23% in 2020 versus 17% in 2019, with continuing meaningful social commitment prioritizing diversity development by Board
Slide 34: Sustainable Value Creation
Sustainable Value Creation 34
Slide 35: OCI is uniquely positioned to benefit from the energy transition
OCI is uniquely positioned to benefit from the energy transition, building its product portfolio and geographic positioning Geographic reach Strategic presence in geographies with abundant renewable resources, with excellent execution track record with local stakeholders Logistics advance Value crea
Slide 36: OCI's commitment to a sustainable world
OCI’s commitment to a sustainable world Driving decarbonization with a focus on sustainable value creation and contributing to the UN OCI’s contribution to the Sustainable Development Goals (SDGs) SDGs Environmental Driving Committed to 20% GHG intensity reduction by 2030 and carbon 90% 76% sustai
Slide 37: 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 37