Ciner Resources LP Investor Presentation November 2017 Safe Harbor - - PowerPoint PPT Presentation

Ciner Resources LP

Investor Presentation November 2017

Safe Harbor Statement

This presentation may contain “forward-looking statements.” All statements that address

• perating performance, events or developments that we expect or anticipate will occur in

the future are forward-looking statements. Caution should be taken not to place undue reliance on any such forward-looking statements because actual results may differ materially from the results suggested by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections. These risks and uncertainties include, but are not limited to, those described in the Risk Factors section of CINR’s 10-K dated March 6, 2017, and those described from time-to-time in

• ur periodic and other reports filed with the Securities and Exchange Commission.

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Ciner 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 production of glass, chemicals and detergents, is a well structured global industry with steadily growing demand of ~3% annually, or ~ 1.8M tons per year ▪ Over 2.65 million short tons annual soda ash production ▪ ~475 employees ▪ 66+ years of mining reserves ▪ 2016 Revenue: $475.2 million ▪ 2016 Adjusted EBITDA: $116.5 million

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▪ Most efficient soda ash producer in North America ▪ Amongst lowest cost producers in the world ▪ Uniquely configured asset footprint ▪ Strong safety and environmental records ▪ Excellent workforce relationship; non-union ▪ Stable end markets and customer relationships ▪ Experienced management and operational team

Ciner Resources - Competitive Advantages

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Delivering Value to Unitholders

▪ 40% total unit holder return in 2016 ▪ Long-term stable cash flows support MLP model – 66+ year reserve life, significant cost inputs hedged, long-term customers ▪ Organic growth projects identified that would allow production volume growth at 1%-4% per year through 2019 ▪ Strong financial position at approximately 1.05X leverage ratio ▪ 1.06X trailing 12 month distribution coverage ratio ▪ Compelling investment proposition through yield plus potential distribution growth – ~9% current yield

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Quarterly Distribution Per Unit Quarterly Coverage Ratio

0.20x 0.40x 0.60x 0.80x 1.00x 1.20x 1.40x 1.60x Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017

$0.450 $0.475 $0.500 $0.525 $0.550 $0.575

Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

2016 – 2026 CAGR: 2.1%

57.9 58.7 58.9 60.2 61.0 61.9 74.4 2011A 2012A 2013A 2014A 2015A 2016E 2026E

Diverse End-Market Uses

(Global Soda Ash Consumption by End Market, By volume, 2016)

Significant Consumption Growth Expected

(Global Soda Ash Consumption, millions of tons)

Ample Room for per Capita Consumption to Grow

(2016, kg / person) Region Consumption per Capita (kg / person) U.S.A. 16 Middle East 7 Latin America 5 Asia Ex-China 3 Africa 1

Source: IHS and USGS Soda Ash.

Major Producer of Low-Cost Natural Soda Ash

(2016 Soda Ash Production Capacity)

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Growing Global Demand

Demand = 62 million short tons

Alumina & Metals/Mining 6% Chemicals 9% Container Glass 21% Flat Glass 27% Pulp & Paper 1% STPP & Soaps/Deterge nts 15% Other Glass 5% Others 16%

Other Sythetic 8% Other Global Natural 2% US Natural 20% Solvay 48% Hou 22%

Ciner 19% Tronox 28% Solvay 23% Tata 20% Searles 10%

Global Production Capacity = 72 million short tons US Production Capacity = 14 million short tons

Historical Pricing / Volume Impact Since IPO

Confidential 7

$100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 $135,000 $140,000 $145,000 2013 2014 2015 2016 EBITDA - Peak to Trough Range EBITDA - Actual

U.S. Trona Solvay Hou

Process Mining and refining trona Synthetic production Synthetic production Raw Materials Trona Salt (brine), Limestone, Ammonia Salt (brine), Ammonia, Carbon Dioxide Energy Usage 4 – 6 MMBtu / ton 10 – 14 MMBtu / ton 10 – 14 MMBtu / ton By- Products Deca (able to process into soda ash) Calcium Chloride (waste product) Ammonium Chloride (co-product) Relative Soda Ash Production Costs

U.S. Trona (Natural Gas) European Solvay China Solvay China Hou 1.0x 1.4x 1.3x 2.0x

1/2~3/4 cost of competing processes1

Source: IHS and Ciner estimates

Lowest-Cost Production Process

• As a producer of natural soda ash from trona,

Ciner Resources has a significant cost advantage compared to synthetic producers around the world – Trona-based production consumes less energy and produces fewer undesirable by-products than synthetic production – Synthetic producers incur additional costs associated with the storage, disposal, or attempted resale of by- products

• Even accounting for higher freight and

logistics costs, Ciner Resources is cost competitive with synthetic soda ash producers to most export markets around the world

• Ciner Resources consistently operates at

high utilization rates and routinely sells 100%

• f its production

Trona Based Production is Significantly Cost Advantaged

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Amongst the Lowest Cost Producers in the World

414 482 568 640

Production Per Employee

(x10 ST, 2016)

Peer 1 Peer 3 Peer 2

Ciner has the highest soda ash production per employee and the best energy efficiency in the Green River Basin.

Most Efficient Soda Ash Producer in Green River Basin

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Green River’s Most Energy Efficient Producer (MMBtu/ton, 2016)

Source: State of Wyoming Mining Report, Wyoming Department of Environmental Quality. Annual Report State Inspector of Mines of Wyoming. Bessemer Wyoming estimates.

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

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Trona Beds Closest to the Surface

Advantageous Facility Layout

• Ponds enable Ciner to recover soda ash via deca

rehydration otherwise lost in processing Trona

• Technological innovation enables Ciner to be more cost

efficient

Ore to Ash Ratio(1)

1.80 1.74 1.61 1.60 1.56 1.59 1.52 1.52 1.50 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) Amount of short tons of Trona ore required to produce one short ton of soda ash/liquor

Wider pond surface area and a unique pond network facilitate the minimization

• f soda ash lost in processing Trona

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Unique Pond Network Lowers Ore to Ash Ratio

Pursue Accretive Acquisitions

• Natural Resources / Industrial Minerals
• Logistics Assets
• Assets currently existing or to be developed at Ciner

Enterprises

Capitalize on Organic Expansion Opportunities

• Emerging Market Growth
• Debottlenecking, deca and efficiency enhancements

driving approximately 1-4% annual production volume growth

Ciner has the balance sheet flexibility to capitalize on organic expansion & acquisition opportunities to drive growth

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• New $235M revolver with ~ $100 million in current

available revolver capacity closed August 1st

• Conservative leverage profile with ~ 1.05x

Net Debt / EBITDA

• Well-capitalized sponsor to support growth with deep
• perational and industry expertise

Balance Sheet Flexibility to Support Growth Ciner Resources Leverage and Liquidity

Note: Adjusted EBITDA is a non-GAAP measure. For a description of Adjusted EBITDA and a reconciliation to the most comparable measures calculated in accordance to GAAP, see the Appendix to this presentation.

Ability to Execute on Growth Opportunities

($ in millions)

Ciner Resources LP 9/30/2017

Cash & Cash Equivalents $13.8 Revolving Credit Facility Capacity - CINR 10.0 Revolving Credit Facility Capacity - Ciner Wyoming 225.0 Less: Revolver and IRB Borrowings (135.9) Available Liquidity $112.9 Total Revolver Borrowings $124.5 IRB Term Loan 11.4 Total Debt $135.9 Net Debt 122.1 Total Debt / FY2016 EBITDA 1.2x Total Net Debt / FY2016 EBITDA 1.0x

Soda Ash Volume Sold

(millions of ST)

Ciner Resources EBITDA

($ in millions)

2.5 2.55 2.66 2.74 2.00 2013 2014 2015 2016 2017 YTD 13

Stable Operating and Financial Results

104.4 120.5 133.9 116.5 85.3 2013 2014 2015 2016 2017 YTD

Market Trends

China prices still strong ▪ China domestic prices up sharply in Q3. ▪ Government environmental inspections resulted in temporary shutdowns, which led to a reduction in soda ash supply ▪ China exports down 24% YTD through August, which is the lowest level since 2004 ▪ Asia soda ash demand up 12% YTD Other international markets ▪ South America and Middle East pricing under pressure ▪ Expansion in Turkey pushed European synthetic producers to offer tons into other markets at lower prices Domestic prices down slightly in 2017 ▪ Ciner Turkey expansion caused a drop in prices as global market adjusts to new capacity coming online

Confidential 14

▪ Compelling investment proposition provided through yield plus distribution growth ▪ Stable cash generation ▪ Organic and acquisition growth opportunities supporting annual distribution growth ▪ Conservative coverage ratio ▪ Lowest cost soda ash production ▪ Significant mining reserve life ▪ Operational advantages ▪ Strong safety record and environmental responsibility ▪ Stable customer relationships ▪ Proven management and operational team

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Ciner Resources - Investment Highlights

APPENDIX

Confidential 16

Mining Process Flow Refining Process Flow

Continuous Mining Haulage Crushing Hoisting Surge Storage Deca Rehydration Screening & Crushing Calcining Dissolving Filtering

Ciner’s Unique Process

Shipping Storage Drying Evaporation

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Process Overview

Ciner Organizational Structure

Ciner Resource Partners LLC

2% GP Interest & IDRs

Public

~25% LP Interest

Ciner Resources Corporation

(100.0% Ownership)

Ciner Wyoming Holding Co.

73% LP Interest

Ciner Wyoming LLC Natural Resource Partners L.P.

(100% Ownership)

0.399 million units 5.10 million common units 14.551 million common units

Ciner Resources LP

(51% Member Interest)

NRP Trona LLC

(49% Member Interest)

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Ciner Enterprises

(100.0% Ownership)

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

• Coal & Copper Mining
• Soda Ash and Sodium

Bicarbonate Production (Eti Soda)

• Glass manufacturing
• Electricity Generation
• Newspapers & Printing
• Movie & TV Production
• TV & Radio Broadcasting
• Online media

Energy, Mining and Glass Media Shipping

• Owns a fleet of 26

Bulkers, Containers, and Tankers which are managed by time charters 19

Ciner Resources LP Quarter Ended 9/30/17 Quarter Ended 9/30/16

Net Income $19.3 $23.1 Add: Depreciation, depletion and amortization 7.0 6.6 Interest expense (net) 0.9 0.9 Equity Based Compensation 0.4 0.1 Restructuring Charges / Asset Impairment 1.6

• Adjusted EBITDA

29.2 30.7 Less: Adjusted EBITDA attributable to non-controlling interest 14.7 15.6 Adjusted EBITDA Attributable to Ciner Resources LP $14.5 $15.1

We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation and amortization and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Adjusted EBITDA is a non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• ur operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis in the case of Adjusted EBITDA, or financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
• ur ability to incur and service debt and fund capital expenditures; and
• the viability of capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA in this investor presentation provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA are net income and cash flow from operations. Our non-GAAP financial measure of Adjusted EBITDA should not be considered as an alternative to net income or cash flow from operations. Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income and cash flows from operations. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by

• ther companies, including those in our industry, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

Non-GAAP Financial Measures 20

Non-GAAP Reconciliation

Ciner Resources LP Year Ended 12/31/16 Year Ended 12/31/15

Net Income $86.3 $106.2 Add: Depreciation, depletion and amortization 26.1 23.7 Interest expense (net) 3.6 4.0 Loss on disposal of assets (net)

• Restructuring Charges

0.5

• Adjusted EBITDA

116.5 133.9 Less: Adjusted EBITDA attributable to non-controlling interest 59.3 67.7 Adjusted EBITDA Attributable to Ciner Resources LP $57.2 $66.2

We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation and amortization and certain other expenses that are non-cash charges

• r that we consider not to be indicative of ongoing operations. Adjusted EBITDA is a non-GAAP supplemental financial measures that management and external users of our

consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• ur operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis in the case of Adjusted EBITDA, or

financing methods;

• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
• ur ability to incur and service debt and fund capital expenditures; and
• the viability of capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA in this investor presentation provides useful information to investors in assessing our financial condition and results of

• perations. The GAAP measures most directly comparable to Adjusted EBITDA are net income and cash flow from operations. Our non-GAAP financial measure of Adjusted

EBITDA should not be considered as an alternative to net income or cash flow from operations. Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income and cash flows from operations. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of

• ur results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies, including those in our industry, our definition of Adjusted

EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

Non-GAAP Financial Measures 21

Non-GAAP Reconciliation

The following table presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA to GAAP financial measure of net income for the periods presented:

Non-GAAP Reconciliation Coverage Ratio

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Available Liquidity Capitalization – Ciner Resources

(1) Includes outstanding borrowing of $124.5 mn and $11.4 mn of revenue bonds. ($ in millions)

Facility Size Available Liquidity Revolving Credit Facility $10.0 $10.0 Ciner Wyoming Credit Facility 225.0 89.1 (1) Total $235.0 $99.1

($ in millions)

As of September 30, 2017 Cash and Cash Equivalents $13.8 Long Term Debt Ciner Wyoming Credit Facility $124.5 Revenue Bonds due 2018 11.4 CINR Revolving Credit Facility 0.0 Total Long Term Debt $135.9 Total Equity $245.3 Total Capitalization $381.2

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Capital 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% 15% 115%

• 125%

3rd Split 75% 25% 125%

• 150%

4th Split 50% 50% 150%

• above

CINR IDR Structure 24

IDR Structure