A LEADING PRODUCER OF NATURAL SODA ASH OCI RESOURCES LP INVESTOR PRESENTATION DECEMBER 2014 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…
Delivering Value to Unitholders Low cost position and production scale MLP characteristics support long-term stable cash flows 66+ year reserve life, significant cost inputs hedged, long-term customers Backlog of organic growth…
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…
Attractive Industry Structure Limited Natural Capacity Globally Global Demand by Volume (Production Method, by Percentage of Volume) (million of ST) 80 Other Synthetic 5% 58.3 59.3 60.6 51.7 53.6 53.6 49 49.4 Natural Hou…
Stable End-Markets with Broad Geographic Exposure Global Soda Ash Consumption U.S. Soda Ash Domestic / Export Split (By Percentage of Volume) by End Market (By Volume) Glass Products Flat Other 26% 19% Domestic 43% Metals…
Low-Cost Position Allows U.S. Producers to Serve Global Markets US soda ash producers using Trona have significant cost advantages from lower energy costs and raw material price exposures. U.S. Trona Solvay Hou Process Mining and…
OCI Wyoming Strong Market Position Situated in Worlds Most Abundant Well-Structured Industry (North America Soda Ash Market Share by Capacity) Trona Reserves United States represents the vast majority of the worlds Trona reserves…
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, 2013)…
Trona Beds Closest to the Surface Beds closest to the surface (OCIs 24 & 25) are the key for lower manufacturing costs as lower halite impurities and shallow beds are conducive to efficient mining. Schematic Section Green River…
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 263 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 39%) 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) 2.2 2.3 2.5 2.5 1.8 1.9 2009 2010 2011 2012 2013 2014 YTD Quarterly Coverage Ratio 1.32 1.31 1.24 1.27 Q4 2013 Q1 2014 Q2 2014 Q3 2014…
OCI Resources - Investment Highlights Compelling investment proposition provided through yield plus distribution growth Stable cash generation Organic and acquisition growth opportunities supporting recent 5% annual distribution…
Appendix
Process Overview Mining Process Flow Continuous Mining Haulage Crushing Surge Storage Hoisting OCIs Unique Process Refining Process Flow Screening & Crushing Calcining Dissolving Filtering Deca Rehydration…
Facilities Overview and Mining Assets Mining Assets Mining Lease Map Land Surface Area: approx. Mining Assets 880 Acres 2 mining beds (upper Mine Lease Area: & lower) 23,500 Acres 6 large continuous mining machines Water Supply 5…
Non-GAAP Reconciliation OCI Resources Pro Forma Quarter Ended 9/30/13 Quarter Ended 9/30/14 Net Income 13.9 21.6 Add Depreciation and Amortization 5.9 5.3 Interest Expense (net) 1.1 1.4 Loss on Disposal of Assets - 1.0…
Non-GAAP Reconciliation OCI Resources Pro Forma Year Ended 12/31/12 Year Ended 12/31/13 Net Income 101.0 70.6 Add Depreciation and Amortization 23.7 23.9 Interest Expense (net) 1.3 2.8 Provision for Income Taxes 16.4 7.1…
Non-GAAP Reconciliations The table below presents a reconciliation of the non-GAAP financial measures of EBITDA to the GAAP financial measures of net income: LTM 3Q- LTM 3Q- 4Q-2013 1Q-2014 2Q-2014 3Q-2014 2014 4Q-2013 1Q-2014…
Capital Structure Capitalization OCI Resources Available Liquidity As of Facility Available ( in millions) ( in millions) September 30, 2014 Size Liquidity Cash and Cash Equivalents 56.2 Revolving Credit Facility 10.0 10.0 Long…
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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