A LEADING PRODUCER OF NATURAL SODA ASH OCI RESOURCES LP INVESTOR PRESENTATION March 2015 OCI Resources LP 1
OVERVIEW
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 Over 2.5 million short tons annual soda ash…
OCIs Competitive Advantages Most efficient soda ash producer in Green River Basin One of the lowest cost producers in the world Strong safety and environmental records Excellent workforce relationship; non-union Stable end…
Delivering Value to Unitholders Stable and Growing Distributable Cash Flow / EBITDA Stable cash flow with significant cost inputs hedged Quarterly distribution increases targeting 3% to 6% annual growth Spending 20-25 million capex…
2014 Accomplishments Financial & Operating Distribution Growth & Performance Shareholder Return Coverage Ratio of 1.29 Distribution Growth Since IPO EBITDA Growth of 15.3% 6.3% (currently 0.5315/qtr) Net Sales Growth of 5.2% Total…
Organizational Structure OCI Enterprises Inc. 100% Natural Resource OCI Chemical Corporation Partners L.P. 100% 100% OCI Wyoming Holding Co. NRP Trona LLC (Common and Subordinated units) 100% OCI Resource Public…
OCI Wyoming Overview Situated in Worlds Most Abundant Trona Reserves One of the largest and lowest cost producers of United States represents the vast majority of the worlds Trona reserves natural soda ash in the world, utilizing…
INVESTMENT HIGHLIGHTS
Strong Financial Position and Strategy 2.126 annual minimum distribution Capitalize on growing demand for soda ash and improving market fundamentals Distribution Increasing production capacity by 4% annually 2014-2016 through…
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 Well-Structured Industry (Production Method, by Percentage of Volume) (North America Soda Ash Market Share by Capacity) Other Synthetic Alcali 5% Searles 2% 10%…
Lowest Cost Soda Ash Production 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 refining Trona Synthetic production…
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 259 mn ST Projected…
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…
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)…
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…
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 Demand is mature in North America, so industry growth is coming from international markets, particularly Latin America. Historical U.S. Soda Ash Domestic / Export Split (By…
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
Fourth Quarter and Year End 2014 Financial Highlights Millions (except Per Unit and Volume 4Q14 4Q13 2014 2013 Amounts) Net Sales 126.0 117.6 465.0 442.1 Net Income 27.6 25.4 91.9 70.6 Adjusted EBITDA 34.8 32.3 120.5 104.4…
Operating and Financial Performance of OCI Wyoming LP Soda Ash Volume Sold Adjusted EBITDA & Margin(1) (millions of ST) ( in millions) 29.9% 30.8% 2.55 2.5 2.5 27.5% 25.9% 2.3 2.2 23.1% 143 23.6% 126 1.8 120 104 90…
OCI Resources Investment Highlights Stable cash generation Organic and acquisition growth opportunities generating quarterly distribution growth Conservative coverage ratio Lowest cost soda ash production in Green River…
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…
Stable and Growing Demand Global demand grew by 3% annually from 2009-2013. The growth in demand was primarily driven by China. Industry forecasts volume to grow 3% over the next 5 years with demand driven by emerging markets. Global…
Non-GAAP Reconciliation OCI Resources LP Quarter Ended 12/31/14 Quarter Ended 12/31/13 Net Income 27.6 25.4 Add: Depreciation, depletion and amortization 5.9 5.8 Interest expense (net) 1.3 1.1 Loss on disposal of assets - -…
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 OCI Resources LP Historical Year Ended December 31, 2008 2009 2010 2011 2012 Net Income 77.6 54.9 51.6 88.0 101.8 Add: Depreciation and amortization 22.7 22.6 23.2 22.2 22.9 Interest expense (net) 7.4…
Non-GAAP Reconciliation Coverage Ratio Rolling Non-GAAP Reconciliation Schedule Q 1-2014 Q 2-2014 Q 3-2014 Q 4-2014 YTD 2014 ( in millions, except per unit data) Reconciliation of Adjusted EBITDA to net income: Net income 21.6 21.1…
Capital Structure Capitalization OCI Resources Available Liquidity As of Facility Available ( in millions) ( in millions) December 31, 2014 Size Liquidity Cash and Cash Equivalents 31.0 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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