Slide 1: OCI N.V. Investor Presentation
OCI N.V. Investor Presentation September 2016
Slide 2: OCI N.V. Profile
OCI N.V. Profile Summary Overview Leading global natural gas-based fertilizer & chemicals producer ‒ Production facilities in the United States, the Netherlands, Egypt and Algeria complemented by global distribution network ‒ Current total sellable fertilizer & chemical capacity of 8.4 million met
Slide 3: 6 Operating Facilities in 4 Countries and 2 Under Construction
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 Planned capacity: 350 ktpa of UAN − 195 ktpa of se
Slide 4: Ramp-up of Production Capacity 2016 - 2017
Ramp-up of Production Capacity 2016 - 2017 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 - - 1,550 - - - 1,550
Slide 5: Global Distribution Network
Global Distribution Network Global distribution network with strong presence in Europe and the Americas Majority of OCI sales direct to customers Sales to more than 35 countries Port access in Europe, US Gulf Coast, and North Africa Global warehousing capacity (ex. FITCO JV in Brazil) in e
Slide 6: OCI is One of the Lowest-Cost Producers Globally
OCI is One of the Lowest-Cost Producers Globally Netherlands Natural Gas Spot Prices 2014 – 2016 YTD* European natural gas prices down to sustainably low levels: 12 ‒ Reaching a record low of ~$3.45 / MMBtu in August 2016 10 ‒ Futures suggest natural gas prices will continue to remain low - TTF 8
Slide 7: Deleveraging 2017 - 2018
Deleveraging 2017 - 2018 In the second and third quarters of 2016, OCI N.V. received cash proceeds in excess of $1.3 billion: ‒ Significantly strengthening balance sheet, settling all due short-term obligations and providing financing for pursuit of growth initiatives ‒ Monetised shareholder loans
Slide 8: Fertilizer Assets - Overview
Fertilizer Assets - Overview
Slide 9: OCI Nitrogen (Netherlands) – Highly Competitive Position in Europe
OCI Nitrogen (Netherlands) – Highly Competitive Position in Europe One of the largest global single sites o Highly integrated ammonia / nitrate production o On-site facilities / utilities shared with DSM, SABIC, Lanxess and others Located near NW Europe customer base o Majority of sales in key E
Slide 10: IFCo Can Benefit from Significant US Midwest Price Premium over Gulf Coast
IFCo Can Benefit from Significant US Midwest Price Premium over Gulf Coast UAN Pricing: Protective US Midwest Premium (US$ / st) 350 300 250 200 150 Nitrogen production 100 facility 50 0 Iowa Fertilizer Company Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Cornbelt NOLA Premium MW over NOLA Iowa
Slide 11: US Expected to Remain Import Market, Tightening Global Supply-Demand Balance
US Expected to Remain Import Market, Tightening Global Supply-Demand Balance Since 2012, at least 24 new North American ammonia plants have been announced, however, at least 17 projects have been cancelled / delayed or construction has not started ‒ No further additions expected until at least 202
Slide 12: China Exports Have Declined, Costs Going Up
China Exports Have Declined, Costs Going Up Chinese urea exports have declined 25% from January – July 2016 compared to same period in 2015 Input costs (coal prices) have increased in recent months Urea selling prices currently below break-even costs of many producers, mostly in China Chinese
Slide 13: Iowa Fertilizer Company – Greenfield Project
Iowa Fertilizer Company – Greenfield Project Overview Greenfield nitrogen fertilizer and industrial chemical production facility Located in Wever, Iowa Technology is supplied by KBR (ammonia), Stamicarbon (urea solution), and Uhde (urea granulation and UAN) EPC Progress IFCo now in commissio
Slide 14: Iowa Fertilizer Company – Construction Progress
Iowa Fertilizer Company – Construction Progress 14
Slide 15: Iowa Fertilizer Company – Construction Progress
Iowa Fertilizer Company – Construction Progress 15
Slide 16: Upside Potential from Egyptian Operations
Upside Potential from Egyptian Operations Improving Gas Supply in Egypt Upside Potential Egyptian government ramps up LNG imports Improved gas supply from November 2015 ‒ EFC has been operating at utilization rates in excess of 70% in ‒ Lower global LNG pricing and availability of LNG H1 2016 an
Slide 17: 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 – first production complex in Algeria dividend of $63
Slide 18: Methanol Assets - Overview
Methanol Assets - Overview OCI
Slide 19: Methanol – Robust and Growing Global Market
Methanol – Robust and Growing Global Market 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 Excluding CTO/CTP, 2015 methanol demand is estimated to be 7
Slide 20: US Expected to Remain Net Importer of Methanol
US Expected to Remain Net Importer of Methanol In 2015, the U.S. imported approximately 3.7 million metric tons of methanol to meet its supply deficit (57% of consumption) ‒ The U.S. sources a majority of its imports from Trinidad, which is facing structural shortages in natural gas reserves and g
Slide 21: OCI Partners - Overview
OCI Partners - Overview Facility Overview OCI’s facility near Beaumont, TX (“OCI Beaumont”) is an integrated methanol and ammonia facility strategically located on the Texas Gulf Coast OCI N.V. acquired the Beaumont plant from Eastman Chemical Company in May 2011. Previously the Beaumont plant w
Slide 22: Natgasoline – Greenfield Scheduled for Completion in 2017
Natgasoline – Greenfield Scheduled for Completion in 2017 Natgasoline LLC Overview World scale greenfield methanol production complex currently under development, located in Beaumont, Texas Expected to produce approximately 1.75 million metric tons of methanol per year Well positioned in the U
Slide 23: Natgasoline – Strategic Partnership with Consolidated Energy
Natgasoline – Strategic Partnership with Consolidated Energy 50% Strategic Partner: ‒ In April 2016, OCI and CEL entered into definitive agreements for an investment by CEL in a 50% stake in Natgasoline in participation with OCI CEL adds expertise across the value chain: ‒ One of the world’s lar
Slide 24: Natgasoline: Aerial Site
natgaso(fine 24 Natgasoline: Aerial Site OCI
Slide 25: Natgasoline: Site Photos
Natgasoline: Site Photos Reformer Box Erection Intermediate Methanol Storage Tanks Pipe Rack Erection Columns and ASU 25
Slide 26: BioMCN (Netherlands) - Unlocking Strategic Value
BioMCN (Netherlands) - 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
Slide 27: OCI N.V. History
OCI N.V. History OCI
Slide 28: 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 29: Listing Information
Listing Information OCI
Slide 30: 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 (Euronext: OCI) Number of shares: 210,306,101 Demerger of Construction business effective 9 March 2015: ‒ $ 1.4 bn repayment of capital to OCI N.V.
Slide 31: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS DOCUMENT IS NOT AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN
Slide 32: 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