Slide 1: Q2 2024 Results Presentation
Q2 2024 Results Presentation 5 August 2024
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by OCI Global (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 s
Slide 3: Agenda
Agenda I. Strategic Review and Transactions Update II. Q2 2024 Performance III. Market Update IV. Appendices i. OCI Global Overview i. OCI Methanol ii. OCI Nitrogen iii. OCI Clean Ammonia ii. Industry Overview i. Methanol ii. Nitrogen iii. Financial Statements & Other 3
Slide 4: 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 5: Strategic Review and Transactions Update
Strategic Review and Transactions Update 5
Slide 6: OCI Clean Ammonia Project in Beaumont, Texas
OCI Clean Ammonia Project in Beaumont, Texas OCI is selling 100% of its equity interests in Clean Ammonia to Woodside Energy • OCI has entered into a binding equity purchase agreement for the sale of 100% of its equity interests in its Clean Ammonia project in Beaumont, Texas to Woodside Energy foll
Slide 7: Fertiglobe and IFCo
Fertiglobe and IFCo Both transactions on track to close in H2 20241 • OCI expects to return at least $3 billion of capital to shareholders during 2024 following closing of both transactions • EGM held on 25 April 2024 received unanimous shareholder approval for (i) the Fertiglobe transaction, and (i
Slide 8: Q2 2024 Performance
e Lara I Global Q2 2024 Performance
Slide 9: Q2 2024 Financial Summary
Q2 2024 Financial Summary Own Produced Sales Volumes (Mt) Ammonia NW Europe ($/t) Urea Egypt ($/t) Methanol US Contract ($/t) Nitrogen (discont.) Methanol +19% Nitrogen (cont.) -4% +16% 459 3.1 3.0 386 335 321 2.1 2.0 560 647 0.6 0.7 0.4 0.3 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2
Slide 10: Q2 2024 Cash Flow and Net Debt Movement (Total and Continuing Operations)
Q2 2024 Cash Flow and Net Debt Movement (Total and Continuing Operations) Change in net debt from 31 March 2024 to 30 June 2024 ($m) + 1,721 3,911 840 -21 881 2,212 93 (100) 2,190 12 48 (66) (8) Reported Operating FCF ($60m) Continuing Operating One-offs Growth capex Fertiglobe Cash Other Continuing
Slide 11: Continued Operational Improvements Offset Weaker Pricing Environment
Continued Operational Improvements Offset Weaker Pricing Environment Continuing operations adjusted EBITDA bridge YoY $ million OCI European Nitrogen: +$41m YoY OCI Methanol : +$6m YoY 54 2 9 2 4 17 Improved Melamine sales, higher operating 11 12 rates and the 16 decision to produce from 8 both ammo
Slide 12: OCI Methanol - Operational Improvement Underscores Mid-cycle Achievability
OCI Methanol - Operational Improvement Underscores Mid-cycle Achievability $ million 98 Lost volumes from Natgasoline TAR 28 5 26 39 70 Q2 2024 Adj EBITDA Realized gas hedge losses Natgasoline catalyst Q2 2024 Adj EBITDA degradation (addressed in TAR) before certain items Notes: Natgasoline catalyst
Slide 13: OCI European Nitrogen – Superior Product Flexibility and Diversified Exposure
OCI European Nitrogen – Superior Product Flexibility and Diversified Exposure Average sale price premium(1) over urea (last 5 years), €/t urea OCI European Nitrogen’s track record of portfolio enhancement continues with bio-melamine New products 614 Q2 2024 434 • Biogenic gas is replacing 20% of con
Slide 14: Significant Progress in OCI’s Manufacturing Improvement Plan
Significant Progress in OCI’s Manufacturing Improvement Plan Average asset utilization rates(1), % Q2 2023 Q2 2024 Natgasoline currently operating Reduced at nameplate capacity i.e. 100% 102 100 operating rates 96 reflecting import 89 92 substitution 89 Includes turnaround in Q2 2024 47 31 European
Slide 15: Market update
e FP Global ww. Market update 15
Slide 16: Methanol Pricing Expected to Benefit from Accelerating Demand and Tightening Supply
Methanol Pricing Expected to Benefit from Accelerating Demand and Tightening Supply Methanol is an attractive replacement bunker fuel for MGO, which creates a floor for grey methanol Approaching Mid-Cycle; US1 / Europe2 Spot Prices Maintain Premium to Supportive Drivers in the Methanol Market China3
Slide 17: Recent Price Increases Supported by Tighter Ammonia and Urea Markets
Recent Price Increases Supported by Tighter Ammonia and Urea Markets Ammonia prices at start of Q3 hit $500+/t CFR Europe due to limited supply, whilst CAN hovering at €270/t mid-July Resilient prices backed by fundamental N demand Global ammonia trade recovery expected Healthy prospects for nitroge
Slide 18: Appendices
e Lara I Global Appendices 18
Slide 19: OCI Global Overview
e Lara I Global OCI Global Overview 19
Slide 20: OCI Global Asset Profile Post Divestments
OCI Global Asset Profile Post Divestments *Announced agreement for sale to Woodside Energy OCI Global Methanol Business OCI European Nitrogen Business Texas Blue Clean Ammonia* First production 2025 OCI Beaumont Natgasoline OCI Nitrogen Rotterdam Import Terminal BioMCN/ OCI Delfzijl Distribution #1
Slide 21: Global Leader in Methanol with a Scalable Platform
Global Leader in Methanol with a Scalable Platform Leader in green US methanol Methanol Group Methanol Group #1 #2 methanol producer Today • 2.9Mtpa methanol production capacity of which 200ktpa is low carbon with an additional 365kt of ammonia capacity BioMCN • Global leader with secure access to l
Slide 22: Global Green Methanol Player Able to Capture Regulatory Green Premium
Global Green Methanol Player Able to Capture Regulatory Green Premium First mover advantage in growing road transportation and marine fuel markets 2016 2024 Future Green Volumes Sold <5kt Up to ~200ktpa ~400ktpa + #1 Green methanol producer globally 9 Years Leading market presence in green methanol
Slide 23: Large Scale and Diversified Premium European Downstream Nitrogen Portfolio
Large Scale and Diversified Premium European Downstream Nitrogen Portfolio Methanol OCI Nitrogen GroupNitrogen) (European #1 Global melamine producer Today Rotterdam Import Terminal • Leading integrated European nitrates producer with 2.6Mtpa fertilizer #3 CAN + UAN EU fertilizer capacity and 0.5Mtp
Slide 24: Premium Product Portfolio and Favourable Industry Trends
Premium Product Portfolio and Favourable Industry Trends AdBlue / CAN+S additions expand flexibility to switch between products and support margin improvement OCIN’s Portfolio of High Value-Added Products 1 Value-added downstream nitrates: demand and margin upside; MelaminebyOCI regulatory framework
Slide 25: Rotterdam will be Pivotal to Meeting EU Hydrogen Targets
Rotterdam will be Pivotal to Meeting EU Hydrogen Targets Ammonia cracking and marine bunkering support growth in ammonia imports through Rotterdam Rotterdam will be key to enabling EU H2 demand Upcoming EU H2 mandates will push industries to decarbonize OCI’s import terminal Industrial cluster • REP
Slide 26: The World’s First Large-scale Greenfield Blue Ammonia Facility
The World’s First Large-scale Greenfield Blue Ammonia Facility TexasMethanol Blue CleanGroup Ammonia Competitive Advantages World’s first large • World’s first large scale (1.1Mtpa) greenfield blue ammonia production #1 scale greenfield clean facility ammonia plant • First mover advantages including
Slide 27: Project Remains on Track for 2025 Start-up
Project Remains on Track for 2025 Start-up Project execution advanced with focus on steel erection and mechanical work Dec-22 OCI’s groundbreaking Natgasoline Facility 99% engineering completed(1) New Ammonia Storage $650m(2) OCI Methanol Loading Dock spent as of 30 Beaumont (Methanol June 2024 + Am
Slide 28: Industry Overview
e Lara I Global Industry Overview 28
Slide 29: Methanol
e Lara I Global Methanol 29
Slide 30: Global Methanol Demand Overview
Global Methanol Demand Overview Methanol has several benefits based on its unique chemistry, scale, ease of transport and cost profile 2023 Global Methanol Demand by End Use Positive Demand Outlook DME • Used in a variety of applications, including wood products, paints, Methanol-to-Olefins Fuel coa
Slide 31: Supply and Demand Dynamics Imply Significant Upside for Methanol
Supply and Demand Dynamics Imply Significant Upside for Methanol Methanol market demand driven by new energy applications Short-Term Moving Towards Mid-Cycle, Medium-term Outlook Methanol Supply & Demand Balance Inverting; Growing Demand in Marine Fuels Positive Methanol capacity vs. demand growth,
Slide 32: Methanol and Ammonia are Key Enablers of the Emerging Hydrogen Transition
Methanol and Ammonia are Key Enablers of the Emerging Hydrogen Transition Clean fuels offer material reductions in emissions versus conventionalfuels IMO revised strategy Carbon Footprint of Low Carbon Methanol & Low Carbon Ammonia vs. Conventional Fuels In July 2023, the IMO adopted an ambitious
Slide 33: Regulation Driving Growth in Green Methanol Demand
Regulation Driving Growth in Green Methanol Demand Road and marine fuels are growing rapidly, with aviation offering substantial future upside Green Methanol, Expected Market Expansion Regulatory Driven Demand • RED III will set advanced target of 5.5% by energy with 1% to >16Mt be met by RFNBO’s (e
Slide 34: Methanol Demand as a Marine Fuel Continues to Accelerate
Methanol Demand as a Marine Fuel Continues to Accelerate Methanol marine orderbook is ramping up due to increasing interest from the bulker segment and retrofits Current Confirmed Methanol DF Engines Orderbook1 Incremental Methanol Demand From Marine Fuels, Mt Other Bulk carrier 7% 7% Support ~8Mt 8
Slide 35: Ammonia
e Lara I Global Ammonia 35,
Slide 36: Accelerating Ammonia Demand Driven by Existing Uses & New Applications
Accelerating Ammonia Demand Driven by Existing Uses & New Applications Accelerated Demand Growth Potential Low-Carbon Ammonia Post-2026 Key Demand Drivers Incremental Low-Carbon Ammonia Demand by End-Use, Mt 1 Maritime Fuels (15% of Total 2030 Low Carbon Demand) ~45 Mt • Maritime sector increasingly
Slide 37: Ammonia Bunkering Potential Further Upside Based on Engine Orders and Retrofits
Ammonia Bunkering Potential Further Upside Based on Engine Orders and Retrofits Ammonia Newbuild Vessels and Retrofit Conversions To Accelerate Ammonia Vessel Adoption Pathway Ammonia potential fuel uptake based on Lloyds 2023 estimates for ships (new build and retrofits) 1 Number of ammonia ready a
Slide 38: Low Carbon Ammonia Supply Will Be Slow To Commission
Low Carbon Ammonia Supply Will Be Slow To Commission OCI’s Texas Blue Clean Ammonia project due to start production H1 2025 is ahead of the curve <25% of Project Announcements Get Built, and <30% Realized on Time Significant Low Carbon Ammonia Supply Bottlenecks Firm nitrogen projects in 2008 pipeli
Slide 39: Financial Statements
e Lara I Global Financial Statements 39
Slide 40: Q2 2024 Results – Key Financials & KPIs
Q1 2024 Results – Key Financials & KPIs Q2 '24 Q2 '23 %Δ Cont. Cont. Cont. Total Total Total Disc. Disc. Disc. $ million unless otherwise stated Revenue 494.9 716.4 1,211.3 516.8 855.3 1,372.1 -4% -16% -12% Gross profit / (loss) 58.7 290.1 348.8 (27.4) 226.9 199.5 nm 28% 75% Gross profit / (loss) ma
Slide 41: Sales Volumes by Segment (1/2)
Sales Volumes by Segment (1/2) '000 metric tons Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 FY 2023 Nitrogen US1 Own Product 516 580 415 681 454 250 1,800 Ammonia 46 50 16 65 25 85 192 Urea 9 13 42 23 26 24 115 UAN 290 337 182 411 219 53 865 DEF 171 180 175 181 185 89 629 Traded Third Party 262 429 193 473
Slide 42: Sales Volumes by Segment (2/2)
Sales Volumes by Segment (2/2) '000 metric tons Q1'24 Q2'24 Q1'23 Q2'23 Q3'23 Q4'23 FY 2023 3 Methanol Own Product 421 446 247 501 503 393 1,643 Ammonia4 69 102 25 99 75 87 285 Methanol 352 344 222 402 429 306 1,358 Traded Third Party 111 111 143 119 116 226 605 Methanol 77 90 130 96 86 199 511 Etha
Slide 43: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of Reported Operating Income to Adjusted EBITDA Q2 '24 Q2 '23 $ million Comment Cont. Cont. Total Total Disc. Disc. Operating profit / (loss) as reported (28.8) 249.4 220.6 (85.4) 194.2 108.8 Depreciation, amortization and impa
Slide 44: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of Reported Net Profit / (Loss) to Adjusted Net Profit / (Loss) Q2 '24 Q2 '23 $ million Adjustments in P&L Cont. Cont. Total Total Disc. Disc. Reported net profit / (loss) attributable to shareholders (106.1) 90.3 (15.8) (107.0
Slide 45: Financial Statements – Income Statement
Financial Statements – Income Statement Three-month period Three-month period Six-month period ended Six-month period ended $ millions ended 30 June 2024 ended 30 June 2023 30 June 2024 30 June 2023 Revenue 494.9 516.8 1,007.9 1,019.4 Cost of sales (436.2) (544.2) (932.4) (1,157.1) Gross profit / (l
Slide 46: Financial Statements – Cash Flow Statement (1/2)
Financial Statements – Cash Flow Statement (1/2) Three-month period Three-month period ended 30 June 2024 ended 30 June 2023 Six-month period ended Six-month period ended $ millions 30 June 2024 30 June 2023 Net profit / (loss) from continuing operations (106.7) (110.9) (204.4) (264.2) Adjustments f
Slide 47: Financial Statements – Cash Flow Statement (2/2)
Financial Statements – Cash Flow Statement (2/2) Three-month period Three-month period ended 30 June 2024 ended 30 June 2023 Six-month period ended Six-month period ended $ millions 30 June 2024 30 June 2023 Proceeds from borrowings 625.3 32.3 907.4 635.2 Repayment of borrowings (671.0) (49.0) (702.
Slide 48: Maximum Proven Capacities
Maximum Proven Capacities Max. Proven Capacities¹ ('000 metric tons) Total Total Total2 Ammonia Ammonia Plant Country Urea UAN CAN / CAN+S Fertilizer Melamine4 DEF/AdBlue Nitrogen Methanol OCI (Gross) (Net)3 Iowa Fertilizer Company5 USA 926 195 438 1,832 - - 1,240 3,704 - 3,704 2,465 OCI Nitrogen5 N
Slide 49: Other Appendices
e Lara I Global Other Appendices 49
Slide 50: Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers
Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers Drivers Support Demand Driven Environment Outlook 26% 2024/25 corn stocks-to-use ratio ROBUST CROP PRICES and AFFORDABILITY SUPPORT NITROGEN DEMAND and PRICE LEVELS $4.4/bushel corn futures Sep’24 –Dec’261 10-Y average (excl. excep
Slide 51: Agricultural Fundamentals
Agricultural Fundamentals Grain stocks-to-use ratio below the 10-year average maintaining farm incomes and increased planted acreage to rebuild stocks, supportive of nitrogen demand prospects Crop prices supported by stocks:use ratio below 10-year average Urea affordability rangebound, better vis-à-
Slide 52: Limited New Nitrogen Capacity, Offset by Higher Demand
Limited New Nitrogen Capacity, Offset by Higher Demand Slower pace of new urea capacity additions with good visibility given ~5-year Merchant ammonia market expected to be underpinned by demand recovery & project lead time. Robust nitrogen demand for ag & tech use. cost curve economics Global urea n
Slide 53: Limited Chinese Exports & Imports from Key Markets Supportive Of Urea Prices
Limited Chinese Exports & Imports from Key Markets Supportive Of Urea Prices Chinese Urea Exports Curtailed on Tighter Governmental Policy Indian New Capacity Does not Cover Shortfall in Supply. Imports lower y-on-y, but at ≈5 Mt China urea exports, Mt India imports, Mt India remains among top 3 ure
Slide 54: EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs & Production Centers
EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs & Production Centers Global Feedstock Prices 2017-2025F, $/MMBtu Cash Costs per ton of Ammonia 2017-2025F, $/t Global differentials between US, MENA and EU marginal costs remain wide 800 Arbitrage between international 20 TTF futures are ~$10-
Slide 55: Csi Global
Csi Global Csi Global