Oci Nv · EURONEXT:OCI
Oci Nv — Investor Presentation (October 2019)
31 slides from Oci Nv's investor presentation, October 2019
Slide 1: OCI N.V. Investor Presentation
OCI N.V. Investor Presentation October 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: Agenda
Agenda 1 Key Highlights 2 Company Overview 3 Summary of Key Financials 4 Appendix 3
Slide 4: Leading Global Producer and Distributor of Nitrogen Products and Methanol
Leading Global Producer and Distributor of Nitrogen Products and Methanol Nitrogen Products Methanol % of Jun-19 77% 23% LTM Revenue1 Products Ammonia, urea, CAN, UAN, DEF and melamine Methanol # of Plants 6 3 ▪ 3rd largest global producer of nitrogen fertilizers ▪ 5th largest global methanol produc
Slide 5: OCI Build and Transition Phases Complete | Run-Rate Starts During Q4-2019
OCI Build and Transition Phases Complete | Run-Rate Starts During Q4-2019 Debut ratings Current ratings Issuer rating Ba2 / BB- / BB Ba2 / BB / BB Transition to run- Platform build-up Run-rate rate Bond rating B1 / BB- / BB- Ba3 / BB / BB 2008 – 2017 2018 - 2019 2020 +$5bn Capex Program Deleveraging
Slide 6: Key Highlights | OCI at a Glance
Key Highlights | OCI at a Glance What Differentiates OCI Performance Drivers 2018 - 2020 ▪ Further double-digit volume ramp-up across both nitrogen Global leader in nitrogen and methanol with excellent ✓ Expect to achieve full run-rate during Q4 2019; 2020 first full diversification – product & geog
Slide 7: Capacity Ramp-up Driving Volume Growth
Capacity Ramp-up Driving Volume Growth 2008 2017 Q4 2019 End-2019 Site Site locations locations 1 5 Key Drivers of OCI Growth 9 Capacity: 1.3mtpa Capacity: 11.6 mtpa ▪ 2018: Natgasoline starts Capacity: 16.1 mtpa production, ramping up in 2019, and run-rate expected UAE in 2020 Europe 13% ▪ 2019: 24
Slide 8: Ramp-up in Volumes to Drive Trajectory of Deleveraging
Ramp-up in Volumes to Drive Trajectory of Deleveraging EBITDA Expansion Driven by Volume Growth… …Leading to Meaningful FCF and Deleveraging Volumes (mtpa) 937.5 Adj. EBITDA ($m) 634.3 9.4 9.1 x (78)% 466.5 7.4 7.0 x 6.1 5.9 x 4.6 4.8 4.4 x 3.4 x 2.0 x 1 2016 2017 2018 H1 2018 H1 2019 2015 2016 2017
Slide 9: Iowa Fertilizer Company | Continues to Push Maximum Capacity Higher
Iowa Fertilizer Company | Continues to Push Maximum Capacity Higher IFCo Reaches Record Utilization Rates IFCo Reaches Record Utilization Rates Ammonia (Production kst) ▪ IFCo reaches record utilization levels following 4-week 300 104% 109% 107% 110% 120% 103% debottlenecking in Q3 2019, and at bett
Slide 10: OCI N.V. – ADNOC Partnership (Fertiglobe) | Strengthening Competitive Position
OCI N.V. – ADNOC Partnership (Fertiglobe) | Strengthening Competitive Position First-of-its Kind Export Platform Urea and Ammonia Global Seaborne Export League Table1 Sellable Ammonia and Urea Export League Table (mtpa) ▪ OCI N.V. and ADNOC have created Fertiglobe: 6.5 o Combining ADNOC’s fertilizer
Slide 11: Favourable Positions on the Global Cost Curve for Fertilizers…
Favourable Positions on the Global Cost Curve for Fertilizers… Urea global export cost curve (2019) IFCo well-positioned on the cost curve2 300 Total ocean/rail freight1 cfr urea costs, 2019 basis ($/t) Urea ($/short ton) 250 Cost to FOB/FOT ExW cost 160 200 140 120 150 100 100 80 60 50 40 20 0 0 0
Slide 12: …and Also Strong Position on the Methanol Global Cost Curve
…and Also Strong Position on the Methanol Global Cost Curve Methanol global cost curve – Sep-2019 MeOH delivered cash cost to coastal Low cost position attributable to advantageous China main ports (net available capacity)1 access to feedstock and distribution infrastructure $600 2019E China ✓ Acces
Slide 13: State-of-the-Art and Young Asset Base
State-of-the-Art and Young Asset Base OCI’s capacity breakdown by vintage (% of total capacity) 56% Youngest asset base relative to global peers with 34% of production capacity under 5 years old 17% 11% 8% 7% >40 years 30-40 years 20-30 years 10-20 years 0-10 years ▪ Invested over $5 billion since 2
Slide 14: Structurally Low Gas Prices Enhance our Competitive Cost Position
Structurally Low Gas Prices Enhance our Competitive Cost Position TTF Gas Prices | Historical and Forward Curve ($/mmBtu) Henry Hub Forward Curve (NYMEX) Progression ($/MMBtu) 12.0 $6.00 $5.00 Gas Price ($/MMBtu) 10.0 $4.00 8.0 $3.00 $/mmBtu $2.00 6.0 $1.00 4.0 $0.00 ($1.00) 2.0 04/2027 10/2019 04/2
Slide 15: Structural Supply-Demand Imbalance Expected to Support Fertilizer Prices
Structural Supply-Demand Imbalance Expected to Support Fertilizer Prices Global urea capacity additions (ex-China) below demand growth ▪ Improved trajectory for nitrogen prices mainly due to: million mtpa 10.0 50% of estimated additional o Large capacity additions of 2015 – 2018 being absorbed capac
Slide 16: Structural Supply-Demand Imbalance Expected to Support Fertilizer Prices
Structural Supply-Demand Imbalance Expected to Support Fertilizer Prices Ammonia Market Tightening Expected after Difficult 2019 million mtpa 4 Ammonia markets have 3 been oversupplied since 2 early 2019 but no further major new merchant 1 supply expected until 2023, and demand 0 expected to strengt
Slide 17: New Merchant Global Methanol Supply Expected to be Below Demand Growth
New Merchant Global Methanol Supply Expected to be Below Demand Growth Methanol demand growth expected to outstrip supply 2018 Global Methanol Demand by Derivative (100% = 91 mt) million mtpa Blue = GDP Core – 43% Green = Fuel/Energy – 33% Formaldehyde 35.0 Gray = MTO – 24% 26% Methanol-to- 30.0 Ole
Slide 18: Agenda
Agenda 1 Key Highlights 2 Company Overview 3 Summary of Key Financials 4 Appendix 18
Slide 19: A Leading Global Provider and Distributor in Nitrogen Products and Methanol
A Leading Global Provider and Distributor in Nitrogen Products and Methanol Natgasoline is not a reportable segment of OCI’s Nitrogen Nitrogen Nitrogen MENA Methanol as the entity is Segment Methanol US US Europe (Fertiglobe: 58% owned JV w/ ADNOC) Europe not consolidated Brand FERTIL Ammonia Ammoni
Slide 20: 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 started ▪ Acquired: 2008 April 2017 Product ktpa Product2 ktpa Urea 1,648 Ammonia (net) 195 UAN 1,757 Urea 438 DEF 1,019 Egyp
Slide 21: 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 1,0451 methanol portfolio globally Ammonia 356 ✓ The distribution platform’s global footprint and distri
Slide 22: Agenda
Agenda 1 Key Highlights 2 Company Overview 3 Summary of Key Financials 4 Appendix 22
Slide 23: Product Sales Volumes ('000 metric tons)
Product Sales Volumes (‘000 metric tons) Q2 2019 Q2 2018 %Δ H1 2019 H1 2018 %Δ Own Product Ammonia 592.1 537.5 10% 959.6 1,061.5 (10%) Urea 857.1 806.5 6% 1,305.3 1,471.4 (11%) Calcium Ammonium Nitrate (CAN) 618.1 343.8 80% 726.8 566.8 28% Urea Ammonium Nitrate (UAN) 459.2 372.3 23% 699.1 714.1 (2%)
Slide 24: Overview Q2 2019 Results
Overview Q2 2019 Results Highlights Summary Key Financials1 and KPIs Own-produced volumes sold +25% in Q2 2019 vs. Q2 2018 Q2 2019 Q2 2018 %Δ H1 2019 H1 2018 %Δ • Quarterly record of 3.1 million metric tons Revenue 953.5 792.7 20% 1,550.0 1,537.5 1% • Total nitrogen fertilizer volumes +23% • Record
Slide 25: Prudent Financial Policy, with a Short-term Focus on Deleveraging
Prudent Financial Policy, with a Short-term Focus on Deleveraging ▪ Focus on deleveraging towards 2.0x net leverage ▪ Free cash flow will be prioritized to deleverage Capital structure ▪ Continue to optimise and simplify capital structure ▪ Reduce weighted average cost of debt and extend debt maturi
Slide 26: Agenda
Agenda 1 Key Highlights 2 Company Overview 3 Summary of Key Financials 4 Appendix 26
Slide 27: Compelling Combination with Robust Financial Profile
Compelling Combination with Robust Financial Profile Pro-forma FY 2018 consolidated financials based on 2019 ADNOC Fertilizers gas prices $ million except otherwise stated OCI - ADNOC Fertilizers JV Notes Pro-forma Pro-forma 1 Ammonia: 2.422 ▪ Pro forma figures exclude Sales Volume (millions of Ammo
Slide 28: Ramp-Up of Methanol Capacity 2018 - 2019
Ramp-Up of Methanol Capacity 2018 - 2019 BioMCN Production Capacity million mtpa Natgasoline OCI Beaumont 0.5 3.0 0.1 0.9 1.4 Ramped-up August 2019 Started production July 2019 Started production June 2018 2018 (OCI Beaumont + Natgasoline OCIB expansion BioMCN M2 2020 Current BioMCN M1) June 2018 Q4
Slide 29: Debt Maturity Profile – Pre and Post Refinancing October 2019
Debt Maturity Profile – Pre and Post Refinancing October 2019 Reduced short term refinancing risk and extended maturity profile Weighted Average Group Debt Maturity Profile: extended 6 months from 4.7 to 5.2 years $ million 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2019 2020 2021 2022 20
Slide 30: Flexible Production Capabilities to Maximize Production of Most Profitable Products
Flexible Production Capabilities to Maximize Production of Most Profitable Products Max. Proven Capacities¹ ('000 metric tons) Total Total Total2) Plant Country Ammonia Ammonia Urea UAN CAN Fertilizer Melamine4 DEF Nitrogen Methanol OCI NV (Gross) (Net)3 Iowa Fertilizer Company5 USA 914 195 438 1,75
Slide 31: 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 31