Slide 1: Q4 2019 Results Presentation
Q4 2019 Results Presentation 25 February 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 ▪ We are 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, 2019 Safety Scorecard communities, assets or the environment ▪
Slide 4: Our Commitment to a More Sustainable World
Our Commitment to a More Sustainable World ▪ We seek to provide sustainable solutions to our agricultural and industrial customers. We are committed to investing in a greener future to create value for our communities, our customers, our employees and our shareholders 4
Slide 5: Investing in Sustainable Fuel Solutions
Investing in Sustainable Fuel Solutions Investing in developing products and initiatives to provide cleaner and more sustainable solutions to our customers ▪ DEF is one of OCI’s fastest-growing products, becoming a major product for our US operations: ‒ Doubling of volumes in 2019 compared to 2018 ‒
Slide 6: Overview Q4 2019 Results
Overview Q4 2019 Results Highlights Summary Key Financials1) and KPIs Q4 2019 Q4 2018 %Δ 2019 2018 %Δ Revenue 847.8 941.5 (10%) 3,031.7 3,252.5 (7%) Own-produced volumes sold +19% in Q4 2019 vs. Q4 2018 Gross Profit 89.3 155.5 (43%) 322.8 622.1 (48%) • First contribution to volumes from Fertiglobe c
Slide 7: OCI Build and Transition Phases Complete
OCI Build and Transition Phases Complete 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 +$5bn Capex Program Deleveraging ▪ Completed 3 greenfield expansi
Slide 8: Key Highlights | OCI at a Glance
Key Highlights | OCI at a Glance What Differentiates OCI Performance Drivers 2019 - 2020 ▪ Substantial reduction in execution risk, expect strong volume ramp-up for nitrogen and methanol Global leader in nitrogen and methanol with excellent ✓ Growth capex program completed diversification – product
Slide 9: Capacity Ramp-up Driving Volume Growth
Capacity Ramp-up Driving Volume Growth 2008 2017 2020 End-2019 Site Site locations locations 1 5 Key Drivers of OCI Growth 9 Capacity: 1.3mtpa Capacity: 11.6 mtpa ▪ 2019: Capacity: 16.1 mtpa ❑ OCI Beaumont debottlenecking (>12% UAE increase in capacity); Europe 13% 24% North ❑ Start-up BioMCN M2 (0.
Slide 10: OCI N.V. – ADNOC Partnership (Fertiglobe) | Strengthening Competitive Position
OCI N.V. – ADNOC Partnership (Fertiglobe) | Strengthening Competitive Position First-of-its Kind Export Platform Urea and Ammonia Global Seaborne Export League Table1 Sellable Ammonia and Urea Export League Table (mtpa) ▪ OCI N.V. and ADNOC have created Fertiglobe: 6.5 o Combining ADNOC’s fertilizer
Slide 11: Favourable Positions on the Global Cost Curve for Fertilizers
Favourable Positions on the Global Cost Curve for Fertilizers… Urea global export cost curve (2019) IFCo well-positioned on the cost curve2 300 Total ocean/rail freight1 cfr urea costs, 2019 basis ($/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: Excellent Position on Methanol Global Cost Curve
Excellent Position on Methanol Global Cost Curve with State-of-the-Art Facilities, Robust Conversion Efficiencies Methanol global cost curve – Jan 2020 Low cost position attributable to advantageous Delivered cash cost to coastal China main ports (net available capacity)1 access to feedstock and dis
Slide 13: 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 ▪ In October 2019, OCI successfully completed a c.$1.4 billion equivalent re
Slide 14: Details of Q4 2019 Results
OCI Details of Q4 2019 Results 14
Slide 15: Financial Highlights - Consolidated Statement of Income
Financial Highlights - Consolidated Statement of Income*) $ million Q4 2019 Q4 20181) 2019 20181) Net revenue 847.8 941.5 3,031.7 3,252.5 Cost of Sales (756.3) (786.0) (2,708.9) (2,630.4) Gross profit 89.3 155.5 322.8 622.1 SG&A (75.2) (51.1) (219.1) (177.6) Other Income 1.0 36.5 5.8 62.6 Other expe
Slide 16: Financial Highlights – Reconciliation of Adjusted EBITDA
Financial Highlights – Reconciliation of Adjusted EBITDA Reconciliation of reported operating income to adjusted EBITDA $ million Q4 ‘19 Q4 ‘18 2019 2018 Adjustment in P&L Operating profit as reported 13.1 141.4 105.0 504.3 Depreciation and amortization 187.0 107.4 544.7 424.9 EBITDA 200.1 248.8 649
Slide 17: Financial Highlights – Net Income Bridge to Adjusted Net Income
Financial Highlights – Net Income Bridge to Adjusted Net Income Reconciliation of reported net income to adjusted net income $ million Q4 2019 Q4 2018 2019 2018 Adjustment in P&L Reported net income attributable to shareholders (90.8) (18.7) (334.7) (48.7) Adjustments for: Adjustments at EBITDA leve
Slide 18: Financial Highlights – Free Cash Flow
Financial Highlights – Free Cash Flow Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt $ million Q4 2019 Q4 2018 2019 2018 EBITDA 200.1 248.8 649.7 929.2 Working capital (21.2) 145.0 (38.3) 83.9 Maintenance capital expenditure1) (46.5) (21.1) (169.8) (136.1) Tax paid (3.5) (1.2) (59
Slide 19: Product Sales Volumes ('000 metric tons)
Product Sales Volumes (‘000 metric tons) Q4 2019 Q4 2018 %Δ 2019 2018 %Δ Own Product Ammonia 490.3 450.7 9% 1,907.1 2,013.1 (5%) Urea 1,187.2 749.4 58% 3,110.8 2,960.8 5% Calcium Ammonium Nitrate (CAN) 258.7 253.5 2% 1,140.8 1,063.8 7% Urea Ammonium Nitrate (UAN) 411.2 464.7 (12%) 1,489.6 1,538.4 (3
Slide 20: Segment Information
Segment Information Segment overview Q4 2019 $ million Nitrogen Nitrogen Fertiglobe* Total Methanol Methanol Elim. Total Other Total US Europe Nitrogen US Europe Methanol Segment revenues 134.1 194.2 357.8 686.1 115.8 71.3 9.8 196.9 - 883.0 Inter-segment revenues - - (13.6) (13.6) (7.8) (13.8) - (21
Slide 21: Segment Information
Segment Information Segment overview 2019 $ million Nitrogen Nitrogen Fertiglobe Total Methanol Methanol Elim. Total Other Total US Europe Nitrogen US Europe Methanol Segment revenues 541.1 812.1 1,055.5 2,408.7 547.6 251.1 - 798.7 - 3,207.4 Inter-segment revenues - (0.5) (89.1) (89.6) (66.9) (19.2)
Slide 22: Appendix
OCI Appendix 22
Slide 23: 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 24: 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 24