Oci Nv · EURONEXT:OCI
Oci Nv — Q3 2020 Earnings Presentation
29 slides from Oci Nv's earnings presentation, Nov 6, 2020
Slide 1: Q3 2020 Results Presentation
Q3 2020 Results Presentation 06 November 2020
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: 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 4: Summary Q3 2020 Results and Recent Developments
Summary Q3 2020 Results and Recent Developments Financial, Operational and Strategic Highlights ▪ Healthy volume and EBITDA growth o Own-produced volumes up 30% in Q3 2020 YoY, driving a 79% increase in Adjusted EBITDA to $192 million ➢ Excluding Fertil, volume growth was 9% YoY o Volume growth and
Slide 5: Investing in Sustainable Fuel Solutions and Industrial Precursors
Investing in Sustainable Fuel Solutions and Industrial Precursors Investing in developing products and initiatives to provide cleaner and more sustainable solutions to our customers Product How this helps reduce our carbon footprint Our strategy in action Bio-Methanol as an ▪ Biogas (bio-methane) is
Slide 6: Case Study | Biofuels are a Key Contributor to Meeting the World's Emissions Targets
Case Study | Biofuels are a Key Contributor to Meeting the World’s Emissions Targets OCI is a global leader in bio-methanol production and provides an array of renewable products that help our customers reduce GHG emissions, lower their carbon footprint and remain compliant in an evolving regulatory
Slide 7: Volume Growth Delivered; Price Recovery to Accelerate Deleveraging
Volume Growth Delivered; Price Recovery to Accelerate Deleveraging Key Themes Delivering New Capacity Ramp-up Benefit from Competitive Cost Positions Well Positioned for Market Upsides Volume growth in 2020 and 2021 Cash conversion metrics Price recovery o Ramp-up of all new capacities complete as o
Slide 8: Nitrogen is a Main Driver of 2020 Volume Growth…
Nitrogen is a Main Driver of 2020 Volume Growth… Own-Produced Sales Volumes (Mt) Nitrogen main driver of growth in 9M 2020: Methanol expected to drive volume growth in 2021 ▪ Strong operational performance ▪ On like-for-like basis 9M 2020 total volumes improved 9% YoY ▪ Completion of Fertiglobe comb
Slide 9: … Methanol Demonstrating Ramp-Up with Record Production in Q3 2020
… Methanol Demonstrating Ramp-Up with Record Production in Q3 2020 Total Methanol Production Volumes1 (Kt) Conversion into FCF Record methanol production despite pre- 700 emptive shutdown for hurricane Laura 600 500 400 300 200 100 0 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2
Slide 10: Methanol and Ammonia Prices Have Rebounded Significantly into Q4
Methanol and Ammonia Prices Have Rebounded Significantly into Q4 Industrial nitrogen markets Methanol Ammonia1 ($/t) Methanol1 ($/t) 800 600 700 500 600 400 (19%) 500 (19%) 400 300 (34%) 300 200 200 Ammonia prices still near trough and Spot prices +50% since trough in June 2020 below cash cost of hi
Slide 11: Outlook for Global Nitrogen into 2021 Considerably More Favourable
Outlook for Global Nitrogen into 2021 Considerably More Favourable … Tightening Global Nitrogen Supply and Demand Balance Prices reached trough cycle levels in Q2 2020 and have limited Significant upside for prices: attractive from supply-demand downside fundamentals and steepening cost curve Urea,
Slide 12: … But US Markets Remain Challenged
… But US Markets Remain Challenged US Urea Prices are at Steep Discount to Global Benchmarks US urea prices collapse on contract imports US prices are below alternatives for Middle East exporters Urea prices,$/mt US discount/premium to Middle East, $/mt $/mt 300 Middle East exporters have significan
Slide 13: US UAN Prices are also at a Steep Discount to Global Benchmarks
US UAN Prices are also at a Steep Discount to Global Benchmarks Despite Higher Gas Prices Impacting Margins US UAN prices at a discount to the rest of the world US UAN prices disconnect from feedstock pricing fundamentals UAN prices,$/mt US discount/premium to RoW, $/mt UAN prices,$/mt Henry Hub Gas
Slide 14: Higher Costs for Marginal Producers Supportive of Prices
Higher Costs for Marginal Producers Supportive of Prices Global Feedstock Prices 2016-2020F Cash Costs per ton of Ammonia 2016-2020F USD/MMBtu USD/t Marginal costs are Futures indicate annual 700 16 expected to escalate averages HH expected to on high end of cost 14 stay below $3 per MMBtu 600 curve
Slide 15: Appendix Q3 2020 Results
Appendix Q3 2020 Results OCI
Slide 16: Overview Q3 2020 Results: Resilient Earnings and Volume Growth
Overview Q3 2020 Results: Resilient Earnings and Volume Growth Highlights Summary Key Financials1) and KPIs Q3 ‘20 Q3 ‘19 %Δ 9M ‘20 9M ‘19 %Δ Own-produced volumes sold +30% in Q3 2020 vs. Q3 2019 Revenue 751.9 633.9 19% 2,438.4 2,183.9 12% Gross Profit 80.4 15.6 415% 284.4 233.5 22% • Nitrogen volum
Slide 17: Segment Information
Segment Information Segment overview Q3 2020 $ million Other Elim. Nitrogen Total Total Methanol US Total US Europe Fertiglobe* Elim. Nitrogen Europe Elim.** Methanol Total revenues 114.5 170.1 314.9 (8.5) 591.0 100.0 81.3 (13.9) 167.4 0.3 (6.8) 751.9 Gross profit 5.9 13.4 59.8 (1.0) 78.1 9.1 5.8 (1
Slide 18: Financial Highlights – Reconciliation of Adjusted EBITDA and Adjusted Net Income
Financial Highlights – Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of reported operating income to adjusted EBITDA $ million Q3 ‘20 Q3 ‘19 9M ‘20 9M ‘19 Adjustment in P&L Operating profit as reported 22.7 (27.1) 130.6 91.9 Depreciation and amortization 149.0 132.9 438.6
Slide 19: Debt Maturity Profile – Pre and Post Refinancing October 2020
Debt Maturity Profile – Pre and Post Refinancing October 2020 Limited Debt Amortization and Ample Liquidity Reducing Refinancing Risk and Extending Maturity Profile Liquidity post refinancing @ 9 Oct 2020 (US$ m) Weighted Average Group Debt Maturity Profile: Extended by c. 0.5 years Cash 510 ▪ OCI N
Slide 20: Appendix Markets
Appendix Markets OCI
Slide 21: Limited New Supply Additions to Support Improving Prices
Limited New Supply Additions to Support Improving Prices Urea capacity additions slow relative to 2015-19 Merchant ammonia market expected to significantly tighten Global urea capacity additions ex-China, Mt Global ammonia capacity additions ex-China ex-urea, Mt 4 24.1 Capacity additions over the ne
Slide 22: Chinese Urea Exports Expected to Be Range Bound
Chinese Urea Exports Expected to Be Range Bound Chinese urea exports reach new normal... … originating from a high cost base Chinese urea exports, Mt Chinese urea costs and price, $/t 13.7 Anthracite Urea Cost to FOB FOB China Prills 13.6 Marginal exporter has proven to be 8.9 300 disciplined in 202
Slide 23: Robust Indian Demand and Imports
Robust Indian Demand and Imports Indian Urea Sales Reach Record Highs… …Leading to Higher Urea Import Demand Indian urea sales, 12 month moving average, Mt Indian urea imports, Mt 3-4 Mt expected 39 to be imported in Q4 Indian urea sales record consistent 12 37 long-term growth 10 35 8 33 31 6 29 4
Slide 24: Appendix About OCI
Appendix About OCI OCI
Slide 25: Diversified Global Leader in Fertilizers and Industrial Chemicals
Diversified Global Leader in Fertilizers and Industrial Chemicals Significant Investments in New Capacity Diversified Product Portfolio State of the Art and Young Asset Base Completed OCI’s Capacity Growth 2008 – 2020 (mtpa) 2020 Production Capacity by Product 56% Youngest asset base relative to glo
Slide 26: 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 Product1 ktpa Urea 1,648 Ammonia (net) 195 UAN 1,832 Urea 438 DEF 1,019 Egyp
Slide 27: 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 1,0041 methanol portfolio globally Ammonia 356 ✓ The distribution platform’s global footprint and distri
Slide 28: 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 29: 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 29