A LEADING PRODUCER OF NATURAL SODA ASH OCI RESOURCES LP INVESTOR PRESENTATION August 2015 OCI Resources LP 1
OCI Resources LP - At A Glance Fixed-distribution Master Limited Partnership IPO in September 2013 One of the largest and lowest cost producers of natural soda ash in the world Soda ash, an essential raw material used in the…
OCIs Competitive Advantages Most efficient soda ash producer in Green River Basin Amongst lowest cost producers in the world Uniquely configured asset footprint Strong safety and environmental records Excellent workforce…
2014 Accomplishments Financial & Operating Distribution Growth & Performance Shareholder Return Coverage Ratio of 1.29 Distribution Growth Since IPO EBITDA Growth of 15.4% 6.3% (currently 0.5445/qtr) Net Sales Growth of 5.2% Total…
Delivering Value to Unitholders Low cost position and production scale MLP characteristics support long-term stable cash flows 68+ year reserve life, significant cost inputs hedged, long-term customers Backlog of organic growth…
Transaction Overview On July 20, 2015, OCI Enterprises Inc. announced its intent to sell its interest in OCI Resources LP to Park Holding A.S. (Park Holdings), a subsidiary of Ciner Group of Istanbul, Turkey. The transaction includes:…
About Ciner Group Established in 1978, Ciner Group is primarily active in energy, mining, shipping and media and is one of the largest conglomerates in Turkey Energy, Mining and Media Shipping Glass Coal & Copper Mining…
About Eti Soda Eti Soda, produces natural soda ash and sodium bicarbonate from the worlds second largest trona reserve Etis trona mine is located in the Beypazar district of Ankara and utilizes solution mining The trona solution…
Transaction Rationale Provides OCI Enterprises the capital to continue to develop its solar photovoltaics business in North America Significantly expands Ciner Groups Soda Ash business and market share. Combined entity will be 2nd…
Situated in Worlds Most Abundant Trona Reserves The Green River Basin is Home to the Most Prolific Trona Deposits in the World OCI WY Reserves OCI Natural Soda Ash Reserves (millions of tons) Wyoming Tronox Granger Bridger Power…
Essential Raw Material Soda ash is refined from mined Trona and is an essential raw material used in the production of glass, chemicals, and detergents. Trona Soda Ash End Markets Trona Sodium Carbonate Glass Sodium Sesquicarbonate…
Growing Global Demand Diverse End-Market Uses Significant Consumption Growth Expected (Global Soda Ash Consumption by End Market, By volume, 2014) (Global Soda Ash Consumption, millions of tons) 84.5 Others 19% Flat Glass Pulp & 25%…
Amongst the Lowest Cost Producers in the World Trona Based Production is Significantly Cost Lowest-Cost Production Process Advantaged U.S. Trona Solvay Hou As a producer of natural soda ash from trona, OCI Wyoming has a significant…
Most Efficient Soda Ash Producer in Green River Basin OCI has the highest soda ash production per employee. We have the most efficient soda ash production facility in the Green River Basin. Production Per Employee (x10 ST, 2014)…
Trona Beds Closest to the Surface Beds 24 & 25 (closest to surface) are the key for lower manufacturing costs as lower halite impurities and shallow beds are conducive to efficient mining. Schematic Section Green River Basin OCI…
Unique Pond Network Lowers Ore to Ash Ratio Wider pond surface area and a unique pond network facilitate the minimization of soda ash lost in processing Trona. Advantageous Facility Layout Ponds enable OCI to recover soda ash via deca…
Strong Safety Record and Environmental Responsibility Consistent safety recognition to date is a testament to our commitment. Long Tradition 2009, 2010 and 2011 IMA-NA / MSHA Top Safety Achievement Award (National) of Excellence…
Significant Reserve Life Reserve Life Summary LOWER BED UPPER BED Ore Layout Summary Upper Bed 800ft Lower Bed 1,100ft Reserve Life Calculation (Hollberg) 8ft. minimum Basis 85% Grade Recoverable Reserves 271 mn ST Projected…
Stable Customer Relationships Approximately 70% of OCIs domestic sales were made to customers with which OCI has had relationships in excess of 10 years. Sales Breakdown by Revenue Domestic Customers ( in millions) Majority export…
Organic and Acquisition Growth Opportunities OCI will capitalize on organic expansion & make accretive acquisitions to drive growth. Capitalize on organic expansion opportunities Emerging Market Growth Debottlenecking, Deca and…
FINANCIAL SUMMARY
Strong Financial Position and Financial Strategy Maintain conservative balance sheet (current Debt to Capitalization of 34%) Available liquidity under existing credit facilities to fund multi-year organic expansion capital plans…
Stable Operating and Financial Results Soda Ash Volume Sold (millions of ST) 2.3 2.5 2.5 2.55 2.2 1.3 2010 2011 2012 2013 2014 2015 1H Quarterly Coverage Ratio 1.27 1.35 1.27 1.11 Q3 2014 Q4 2014 Q1 2015 Q2 2015 OCI…
Non-GAAP Reconciliation OCI Resources Year Ended 12/31/14 Year Ended 12/31/13 Net Income 91.9 70.6 Add: Depreciation, depletion and amortization 22.4 23.9 Interest expense (net) 5.2 2.8 Loss on disposal of assets (net) 1.0 -…
Non-GAAP Reconciliation Coverage Ratio Rolling Non-GAAP Reconciliation Schedule C umulative Four Q uarte rs e nde d Q 2-2015 Q 2-2015 Q 1-2015 Q 4-2014 Q 3-2014 Q 2-2014 ( in millions, e xce pt pe r unit data) Re conciliation of…
Capital Structure Capitalization OCI Resources Available Liquidity As of Facility Available ( in millions) ( in millions) June 30, 2015 Size Liquidity Cash and Cash Equivalents 19.2 Revolving Credit Facility 10.0 10.0 Long Term…
IDR Structure and Subordination Period OCIR IDR Structure Marginal Percentage Distribution per Unit Range Interest in Distributions (expressed as % of MQD) LP Share GP Share From To Initial Split 98% 2% 0% -- 115% 2nd Split 85%…
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