Slide 1: Q4 2020 Results Presentation
Q4 2020 Results Presentation 25 February 2021
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 Safety is Paramount
Safety First: Commitment to Safety is Paramount Industry leading safety performance with target of zero incidents at all facilities ▪ Goal to achieve HSE leadership by fostering culture of zero injuries at all production facilities 2020 Safety Scorecard ▪ 12-month rolling total recordable incident r
Slide 4: OCI's Commitment to a Sustainable World
OCI’s Commitment to a Sustainable World We are committed to ESG principles, with environmental, social and governance matters fully integrated into our strategic objectives. Leader in • Leading player in sustainable agricultural and fuel solutions 60% 6.9 MT Environmental Sustainable • Top priority
Slide 5: OCI is Industry-Leading Biofuels Producer
OCI is Industry-Leading Biofuels Producer 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 landscape OCI’s Bio-Methanol Business Bio-
Slide 6: Summary Q4 2020 Results and Recent Developments
Summary Q4 2020 Results and Recent Developments Financial, Operational and Strategic Highlights ▪ Healthy volume and EBITDA growth o Own-produced volumes up 15% in Q4 2020 YoY driving a 12% increase in Adjusted EBITDA to $266 million o $332 million reduction in net debt for the full year 2020 despit
Slide 7: Price Recovery to Accelerate Deleveraging
Price Recovery to Accelerate Deleveraging Key Themes Delivering New Capacity Ramp-up Benefit from Competitive Cost Positions Well Positioned for Market Upsides Volume growth in 2020 and 2021 Cash conversion metrics Price recovery o Ramp-up of all new capacities complete as o Globally competitive pos
Slide 8: Continue to Expect Healthy Step-up in Sales Volumes in 2021
Continue to Expect Healthy Step-up in Sales Volumes in 2021 Own-Produced Volume Sold Mt Methanol expected to drive volume growth in 2021 Methanol Nitrogen 12.2 9.9 Q4 2020: ▪ Total own-produced nitrogen product volumes increased 10%, driven by strong growth in all regions ▪ Total own-produced methan
Slide 9: 2021 Favourable Outlook for Nitrogen Fertilizers
2021 Favourable Outlook for Nitrogen Fertilizers Expected Strong Demand Supported by Farm Economics Attractive supply-demand fundamentals and steepening cost Outlook for 2021 significantly more positive than 2020 curve in 2021 Urea, CAN and UAN Pricing ($/t) Bull Market Drivers Expected to Support H
Slide 10: Global Agricultural Fundamentals expected to Remain Positive through 2021
Global Agricultural Fundamentals expected to Remain Positive through 2021 Global Crop Prices Rally setting the tone for a bullish 2021 China doubles corn imports with large purchases from the US Index, January 2020 =100 China corn imports by origin, Mt +95% 160 Ukraine USA Laos Myanmar Other Corn So
Slide 11: Methanol and Ammonia Prices Have Rebounded
Methanol and Ammonia Prices Have Rebounded Industrial Nitrogen Methanol Ammonia1 ($/t) Methanol1 ($/t) 800 600 700 Ammonia prices are still below historic 500 600 averages and have room to rise further as high cost producers shutdown and 500 market balance tightens 400 400 (15%) 300 300 200 200 Spot
Slide 12: Higher Costs for Marginal Producers Supportive of Prices
Higher Costs for Marginal Producers Supportive of Prices Global Feedstock Prices 2016-2021F Cash Costs per ton of Ammonia 2016-2021F USD/MMBtu USD/t 600 Marginal costs have 14 escalated on high end of 12 cost curve 500 10 400 8 300 6 4 200 2 100 0 0 May-18 Jul-18 May-19 Jul-19 May-20 Jul-20 Sep-18 S
Slide 13: Appendix Q4 2020 Results
Appendix Q4 2020 Results OCI
Slide 14: Overview Q4 2020 Results: Resilient Earnings and Volume Growth
Overview Q4 2020 Results: Resilient Earnings and Volume Growth Highlights Summary Key Financials1) and KPIs Q4 ‘20 Q4 ‘19 %Δ FY20 FY19 %Δ Own-produced volumes sold +15% in Q4 2020 vs. Q4 2019 Revenue 1,035.7 847.8 22% 3,474.1 3,031.7 15% Gross Profit 127.7 89.3 43% 412.1 322.8 28% • Nitrogen volumes
Slide 15: Segment Information
Segment Information Segment overview Q4 2020 Nitrogen Total Methanol Total $ million Europe Fertiglobe* Elim. Europe Elim.** Other Elim. Total US Nitrogen US Methanol Total revenues 149.4 190.5 498.4 (30.1) 808.2 137.8 127.0 (19.3) 245.5 0.3 (18.3) 1,035.7 Gross profit 10.7 4.5 101.5 (1.5) 115.2 (15
Slide 16: 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 Q4 ‘20 Q4 ‘19 2020 2019 Adjustment in P&L Operating profit as reported 56.4 13.1 187.0 105.0 Depreciation and amortization 153.5 187.0 592.1 544.7
Slide 17: Appendix Markets
Appendix Markets OCI
Slide 18: 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 Capacity additions over the next five
Slide 19: Chinese Urea Exports supportive of Robust Indian Import Demand
Chinese Urea Exports supportive of Robust Indian Import Demand Chinese urea exports reach new normal... … Indian Urea Sales Reach Record Highs leading to higher imports Indian urea imports, Mt Chinese urea exports, Mt 13.6 Indian tender volumes in 2021 expected > 5 and 13.7 Chinese exports to 10-Yea
Slide 20: Methanol Industry Supply and Demand Fundamentals
Methanol Industry Supply and Demand Fundamentals Prices Beneficiary of Return to Economic Growth and Capacity Rationalization 2020 Global Methanol Demand by Derivative (100% = 102 mt) 2021 Global Methanol Demand growth expected to be robust, Mt Others, 4% Formaldehyde, Historical correlation with co
Slide 21: Appendix About OCI
Appendix About OCI OCI
Slide 22: 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 23: 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 24: 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 25: 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 25