Slide 1: OCI N.V. Investor Presentation
OCI N.V. Investor Presentation March 2016
Slide 2: OCI's Asset Portfolio – Fertilizer & Chemicals
OCI’s Asset Portfolio – Fertilizer & Chemicals 6 Operating Facilities in 4 Countries and 2 Under Construction Iowa Fertilizer Co. (IFCo) BioMCN (Netherlands) OCI Nitrogen (Netherlands) Under construction 440 ktpa of methanol 1.45 mtpa of CAN (operational) 350 ktpa of sellable ammonia Plann
Slide 3: Fertilizer & Chemicals – Current and Future Capacity Additions
Fertilizer & Chemicals – Current and Future Capacity Additions Design Capacities¹ Total Total Fertilizer & ('000 metric tons) Ammonia Fertilizer Chemicals Plant Country Ownership2 Gross Net3 Urea UAN4 CAN For Sale Methanol Melamine5 DEF For Sale Egyptian Fertilizers Company Egypt 100% 800 - 1,550 -
Slide 4: OCI Nitrogen (Netherlands) - Superior Position in Europe
OCI Nitrogen (Netherlands) - Superior Position in Europe Location and Branded Product Mix Provide Competitive Advantage One of the largest global single sites o Highly integrated ammonia/nitrate production; on-site facilities/utilities shared with DSM, SABIC, Lanxess and others Located near NW E
Slide 5: European Operations Benefit from Low Gas Price and High Nitrate Premium
European Operations Benefit from Low Gas Price and High Nitrate Premium Netherlands Natural Gas Spot Prices 2014 – 2016 YTD* 12 Natural gas prices were substantially lower in Q4 2015 11 $11.0/MMBtu and continued to decline in Q1 2016 : 10 9 $ per MMBtu Netherlands TTF natural gas prices: Q4 2015 d
Slide 6: North American Producers Expected to Remain Highly Profitable
North American Producers Expected to Remain Highly profitable Low and declining natural gas prices in the US: Recent rebound in urea prices in the US: ‒ US natural gas prices: down 44% on average compared ‒ Urea Granular NOLA prices to c. US$ 260 / st (from a to Q4 2014 and 23% compared to Q3 20
Slide 7: Producers in US Midwest Benefit from Significant Price Premium over Gulf Coast
Producers in US Midwest Benefit from Significant Price Premium over Gulf Coast UAN Pricing: Protective US Midwest Premium (US$ / st) 350 300 250 200 150 Existing nitrogen 100 production facility 50 0 New CF / OCI capacity Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Cornbelt NOLA Premium MW over
Slide 8: US Expected to Remain Import Market in Foreseeable Future
US Expected to Remain Import market in Foreseeable Future OCI/CF Only Agri Focused Expansions to Materialize Since 2012, at Least 24 new North American ammonia plants have been announced However, to date, only 3 new nitrogen fertilizer plants have proceeded to construction 1) Includes proposed n
Slide 9: Iowa Fertilizer Company – Greenfield Expansion Project
Iowa Fertilizer Company – Greenfield Expansion Project Iowa Fertilizer Greenfield nitrogen fertilizer and industrial chemical production facility Expected to produce over 2 million short tons of nitrogen fertilizer (Ammonia, UAN, Urea) and diesel exhaust fluid (DEF) per year Located in Wever,
Slide 10: Methanol – Robust Long-Term Demand Growth >6% Per Year Expected
Methanol – Robust Long-Term Demand Growth >6% Per Year Expected Methanol is one of the world’s most widely used industrial chemicals with diversity of applications – from paints and plastics, furniture and carpeting, to car parts and windshield wash fluid Historical demand growth has been robust
Slide 11: Methanol Demand Expected to Outstrip Supply Growth in the United States
Methanol Demand Expected to Outstrip Supply Growth in the United States In 2014, the U.S. imported approximately 4.8 million metric tons of methanol to meet its supply deficit (69% of consumption) U.S. methanol demand is expected to increase at a CAGR of 6.3% between 2015 and 2020, driven by GDP
Slide 12: Natgasoline LLC – Greenfield Scheduled for Completion in 2017
Natgasoline LLC Greenfield – Scheduled for Completion in 2017 Natgasoline LLC World scale greenfield methanol production complex currently under development Expected to produce approximately 1.75 million metric tons of methanol per year Located in Beaumont, Texas, within 2 miles of the OCI Bea
Slide 13: Natgasoline LLC Aerial Site
Natgasoline LLC Aerial Site 13
Slide 14: BioMCN – Unlocking Strategic Value
BioMCN Unlocking Strategic Value BioMCN Overview Strategic Location in The Netherlands OCI acquired BioMCN in June 2015 for EUR 15M BioMCN is one of Europe’s largest methanol producers and a pioneer in bio-methanol Consists of two plants, of which one operational (440 ktpa) and one mothballed
Slide 15: Upside Potential from Egyptian Operations
Upside Potential from Egyptian Operations Improved Gas Supply from November 2015 Improving Gas Supply in Egypt Upside Potential Egyptian government ramps up LNG imports Improved gas supply from November 2015 ‒ Lower global LNG pricing and availability of LNG ‒ EFC expected to operate at full uti
Slide 16: Sorfert Deleveraging Rapidly
Sorfert Deleveraging Rapidly Strong Cash Flow Generation Plant Overview Benefits from competitive low price long-term gas contract 1.26 mtpa urea and 1.8 mtpa gross ammonia export-focused Significant contributor to Consolidated Group EBITDA – expect production complex in Algeria first dividend
Slide 17: Combination with CF Industries
Combination with CF Industries
Slide 18: Combination with CF Creates the Global Nitrogen Leader
Combination with CF Creates the Global Nitrogen Leader Strong Strategic Logic Continues to Underpin CF Combination On 6 August 2015, OCI and CF announced the agreement to combine OCI’s North American, European and Global Distribution businesses with CF Industries’ global assets ‒ Closing estimated
Slide 19: CF - OCI Transaction Process Update
CF - OCI Transaction Process Update Milestones to Date Expected Future Milestones Aug Sept Oct Nov Dec Month Month Month Month 2015 2015 2015 2015 2015 1 2 3 4 Shareholder Dutch 60-Day Transaction 6 Nov 2015 23 Dec 2015 S-4 Notice Period Creditor Notice Announced S-4 Filed1) Amended Effective Period
Slide 20: Transaction Value Correlated to CF's Share Price
Transaction Value Correlated to CF’s Share Price Transaction Values at Different CF Share Prices ($ billion except share prices) 8.0 Total transaction Enterprise Value: 6.8 2.0 Net debt assumed by new CF 6.4 6.1 5.6 2.0 0.7 Consideration in cash/shares 5.2 2.0 2.0 0.5 45% Natgasoline equity sale 2.0
Slide 21: OCI N.V. Post-Transaction
OCI N.V. Post-Transaction OCI Post-Transaction: ‒ OCI will continue to own 51% of Sorfert, 100% of EFC and BioMCN, 60% of EBIC, 55% of Natgasoline ‒ OCI N.V. remains headquartered in Amsterdam and listed on Euronext Amsterdam OCI’s management team remains at helm of Company and fully committed t
Slide 22: OCI N.V. Post-Transaction Overview of Assets
OCI N.V. Post-Transaction Overview of Assets OCI Assets Post-Transaction Sorfert Sorfert: largest integrated nitrogen fertilizer producer in Africa (51%) Capable of producing 1.26 million tons urea and 1.6 million tons gross anhydrous ammonia per year Egyptian Fertilizers Company: 1.55 million
Slide 23: OCI N.V. Corporate Overview: History and Value Creation
OCI N.V. CORPORATE OVERVIEW History and Value Creation
Slide 24: Company History
Company History Established in the 1950s by Onsi Sawiris as a construction contractor in Egypt 1950 - Construction Present Developed into a leading industry player across the Middle East, Asia, USA and Europe 1996 - Developed cement group from a single production line in Egypt with capacity of
Slide 25: Investment Track Record
Investment Track Record Creating Shareholder Value OCI’s Shareholder Value Creation: > 40% IRR 1999 IPO – Present History of successful investments including: – Cement (1996 – 2007): became top 10 global cement producer primarily through greenfield investments; sold the cement business to Lafarg
Slide 26: Listing Information
Listing Information OCI
Slide 27: OCI N.V. Listing Information
OCI N.V. Listing Information Listing Information Headquartered in Amsterdam, The Netherlands Trading on Euronext Amsterdam since 25 January 2013 (NYSE Euronext: OCI) Number of shares: 210,113,854 Demerger of Construction business effective 9 March 2015: ‒ $ 1.4 bn repayment of capital to OCI
Slide 28: Disclaimer
Disclaimer Forward Looking Statements Certain statements contained herein are “forward-looking statements” that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address certain plans, activities or events which OCI ex
Slide 29: Disclaimer
Disclaimer Important Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transactions, the new holding company for the comb
Slide 30: 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