OCI Partners LP Corporate Presentation September 2016 Safe Harbor - - PowerPoint PPT Presentation

OCI Partners LP

Corporate Presentation September 2016

2

Safe Harbor Provision

Unless the context otherwise requires, references in this presentation to “our partnership,” “we,” “our,” “us” and similar terms, when used in a historical context, refer to the business and

• perations of OCI Beaumont LLC, a Texas limited liability company (“OCIB”) that OCI USA Inc. will contribute to OCI Partners LP in connection with this offering. When used in the present

tense or future tense, those terms and “OCI Partners LP” and “OCIP” refer to OCI Partners LP, a Delaware limited partnership, and its subsidiaries, including OCIB. References to “our general partner” refer to OCI GP LLC, a Delaware limited liability company and a wholly owned subsidiary of OCI USA Inc. References to “OCI” refer to OCI N.V., a Dutch public limited liability company, and its consolidated subsidiaries other than us, our subsidiaries and our general partner. References to “OCI USA” refer to OCI USA Inc., a Delaware corporation, which is an indirect wholly owned subsidiary of OCI. References to “OCI Fertilizer” refer to OCI Fertilizer International B.V., a Dutch private limited liability company, which is an indirect wholly

• wned subsidiary of OCI.

This presentation may contain forward‐looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “will,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward‐looking statements. Statements concerning our current estimates, expectations and projections about our future results, performance, prospects and opportunities and other statements, concerns, or matters that are not historical facts are "forward‐looking statements," as that term is defined under United States securities laws. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward‐looking statements. Investors are cautioned that the following important factors, among others, may affect these forward‐looking statements. These factors include but are not limited to: risks and uncertainties with the respect to the quantities and costs of natural gas, the costs to acquire feedstocks and the price of the refined products we ultimately sell; management's ability to execute its strategy; our competitive position and the effects of competition; the projected growth of the industry in which we operate; changes in the scope, costs, and/or timing of capital projects; general economic and business conditions, particularly levels of spending relating to demand for methanol and ammonia; our ability to operate as an MLP; changes in the regulatory and/or environmental landscape; potential conflicts of interest between OCI USA and other unitholders; and other risks contained in our registration statement (including a prospectus) filed with the United States Securities and Exchange Commission (the “SEC”). Forward‐looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved. Forward‐looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. OCI Partners LP undertakes no obligation to update or revise any such forward‐looking statements. The Partnership has filed a registration statement (including a prospectus) with the SEC for the offering to which this presentation relates. Before you invest, you should read the prospectus in that registration statement and other documents the Partnership has filed with the SEC for more complete information about the partnership and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Partnership, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by emailing BofA Merrill Lynch at dg.prospectus_requests@baml.com or by calling either Barclays at (888) 603‐5847 or Citigroup at (800) 831‐9146. OCI Partners LP’s registration statement has not yet become effective and OCI Partners LP’s common units representing limited partnership interests may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The offering of the common units representing limited partner interests is being made by means of the prospectus only, copies of which may be obtained from the underwriters as noted above. This presentation is not, and under no circumstances is to be construed to be, a prospectus, offering memorandum, advertisement and is not an offer to sell securities. The SEC and state securities regulators have not reviewed or determined if this presentation is truthful or complete. Non-GAAP Financial Measures Disclosure Today’s presentation includes certain non‐GAAP financial measures as defined under Regulation G of the Securities Exchange Act of 1934, as amended. A reconciliation of those measures to the most directly comparable GAAP measures is available in the appendix to this presentation.

Partnership Overview

4

Partnership Overview

Organizational Structure

OCI N.V. (NYSE Euronext Amsterdam: OCI:NA) OCI USA Inc. 69,497,590 common units OCI Partners LP (NYSE: OCIP) OCI Beaumont LLC OCI GP LLC (our general partner) Public Unitholders 17,500,000 common units 20% limited partner interest 100% ownership interest 80% limited partner interest Non‐economic general partner interest 100% indirect ownership interest

___________________________________ (1) No excess distribution coverage and GP has non-economic interest and no incentive distribution rights

(1)

New Capital Injection New Shares Issued Capital Structure Common Units (mm) 3,502,218 OCI NV units (mm) 69,497,590 79.88% Share Price ($) 17.132 Public Unitholders units (mm) 17,500,000 20.12% Total Capital ($) 60,000,000 Total Shares Outstanding 86,997,590 100%

5

Partnership Overview

Asset History of OCI Beaumont

Key Milestones Plant Capacity (‘000 tpa)

DuPont builds 600 Ktpa methanol plant, largest in the world at the time Modernization of The methanol unit using Lurgi GmbH’s Low Pressure Methanol technology Terra adds a 250 mtpa ammonia synthesis loop to The methanol plant Start‐up of the ammonia plant built by Foster Wheeler with a Haldor Topsoe process design Terra shuts‐ Down methanol production OCI N.V. and its partner acquire the plant from Eastman Chemical OCI N.V. acquires minority stake securing 100%

• wnership of the

plant 2000 1967 2011 2004 2011 1997 1980s 600 600 600 730 913 250 250 265 331 600 850 850 995 1,244 1967 1997 2003 4Q 2012 1Q 2015 Total Capacity Methanol Ammonia

(Post‐Debottleneck)

Ammonia production at the facility begins in December Methanol production at the facility begins in July Debottlenecking process completed in 1Q 2015 2011 2015 2012

6

Partnership Overview

OCI Partners Summary

• 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 was owned by Terra

Industries and DuPont, and was shut down from 2004 until OCI’s acquisition in 2011

• Following a comprehensive upgrade, methanol and ammonia production commenced in July 2012 and December 2011, respectively
• Partnership has completed all work related to debottlenecking project in 1Q 2015, with ammonia and methanol lines restarted in 2Q

– Increased methanol production capacity by 25% to 912,500 mtpa – Increased ammonia production capacity by 25% to 331,000 mtpa

• Partnership recently implemented a state‐of‐the‐art methanol and ammonia truck loading facility on‐site and expects to sell 80,000 mtpa

via the new facility

Facility Overview

Ownership

• 100%

Natural Gas Supply

• Volumes contractually secured

and pricing based on spot market

Distribution •

Direct sales to customers by truck, pipeline, and barges

Product Pre – Debottlenecking Capacity Production During Full Year 2014 Current Production Capacity post- Debottlenecking Project Product Storage Capacity Metric Tons/Day Metric Tons/ Year (1) Metric Tons Metric Tons/ Day Metric Tons/ Year Metric Tons Methanol 2,000 730,000 617,031 2,500 912,500 42,000 (two tanks) Ammonia 726 264,990 259,214 907 331,000 33,000 (two tanks)

Capacity Key Information

(1)

___________________________________ (1) Assumes facility operates for a full year.

7

Partnership Overview

Superior Site with Strong Customer Relationships

45% 49% 6%

Barge Pipeline

Terms Delivery (2015) Contract Life: 2‐5 Years / Renewable Pricing: Jim Jordan Minus Payment Terms: 25‐30 Days Key Customers:

83% 11% 6%

Truck Barge

Contract Life: Monthly Pricing: Tampa CFR Minus Payment Terms: 30 Days Key Customers:

Methanol Customers Ammonia Customers

Terms Delivery (2015)

100%

Pipeline

Gas Suppliers

Suppliers Delivery (LTM)

Pipeline

Natural Gas Pipelines

OCI Beaumont Barges Methanol Storage Kinder Morgan DCP Midstream Florida Gas Transmission Ammonia Storage Methanol Pipelines Exxon Mobil Methanex Lucite Air Liquide

Nitrogen Pipeline

Air Products

Hydrogen Pipeline

Selected Methanol Customers

Ammonia Arkema Barges Houston Pipe Line Ammonia Pipeline Lucite DuPont Methanol Truck Terminal Ammonia Truck Terminal

Truck

8

Partnership Overview

Debottlenecking Project Drives Distribution Growth

• The Partnership delayed the planned debottlenecking to

January 2015 due to the holiday season to ensure all pre‐ turnaround construction activities are complete.

• Construction completed in 1Q 2015.
• Total cost was US$ 384 million for project; US$ 97.5 million

for debottlenecking, US$ 124.4 million to improving reliability and US$ 162.1 million for ensuring environmental compliance Overview

• Install a selective catalytic reduction unit
• Install an additional flare
• Modify the convection section and heat exchangers
• Increase the capacity of the synthesis gas compressor and

the refrigeration compressor on the ammonia production unit

• Replace and refurbish equipment that caused downtime
• Both methanol and ammonia production lines have been

running at or above design capacity since April 23, 2015 Processes Benefits

• Expands existing capacity
• Expected to maximize operational availability
• Increases efficiency of plant
• Increases margins; current headcount will be maintained

Capacity Increase

Previous Capacity Current Capacity Product Metric Tons/Day Metric Tons/Year Metric Tons/Day Metric Tons/Year % Increase Methanol 2,000 730,000 2,500 912,500 25% Ammonia 726 264,990 907 331,000 25%

9

Partnership Overview

Financial Overview and 2Q 2016 Results Summary

Three Months Ended Six Months Ended June 30 June 30 US$ thousand 2016 2015 Change 2016 2015 Change Revenues 56,278 79,568 ‐29.3% 126,219 117,313 7.6% Cost of Goods Sold 39,758 44,514 ‐10.7% 84,593 69,679 21.4% Depreciation Expense 15,513 12,648 22.7% 30,891 18,732 64.9% Selling, General and Administrative Expenses 6,442 4,912 31.1% 12,901 9,972 29.4% Income from Operations (before interest expense, other income (expense) and income tax expense) (5,435) 17,494 ‐131.1% (2,166) 18,930 ‐111.4% Interest Expense 9,973 1,785 458.7% 18,765 4,291 337.3% Interest Expense ‐ Related Party 51 51 0.0% 102 101 1.0% Gain (loss) on disposition of fixed assets (26) (1,982) ‐98.7% (448) 5 Other Income (9) 30 ‐130.0% 13 121 ‐89.3% Income (loss) from Operations (before tax expense) (15,494) 13,706 ‐213.0% (21,468) 14,664 ‐246.4% Income Tax Expense (47) 228 ‐120.6% 33 293 ‐88.7% Net Income (Loss) (15,447) 13,478 ‐214.6% (21,501) 14,371 ‐249.6% 30-Jun-16 31-Dec-15 Total Debt 448,838 450,193 ‐0.3% Net Debt 440,278 436,955 0.8%

*Net Debt is defined as Total Debt minus Cash and Cash Equivalents *Total Debt is the outstanding principal portion of our Term Loan B Credit facility and Revolving Credit Facility less the unamortized portion of the Deferred Financing Cost and Original Issue Discount associated with these facilities

Sales Volumes 000 Metric Tons H1 2016 Q2 2016 Q1 2016 H1 2015 Q2 2015 Q1 2015 Ammonia 166.6 69.9 96.7 84.6 49.1 35.5 Methanol 402.2 183.3 218.9 211.9 158.9 53.0

10

Partnership Overview

OCI Partners LP Long-Term Strategy

• Maximize utilization rates of the debottlenecked plants
• Leverage sponsor’s technical know‐how, expertise and track‐record in identifying value‐accretive projects

and new investment opportunities

• Evaluate potential downstream projects for both methanol and ammonia to diversify product portfolio
• Maximize and maintain distributions to OCIP unitholders of 100% of cash available for distribution
• Maintain strong customer relationships near Beaumont, TX

11

Partnership Overview

Investment Highlights

IA MO IL IN OH WI MN ND SD MT WA OR NV CA WY NE UT ID CO NM KS TX AZ OK AR AL LA GA FL MS TN KY SC NC WV PA VA NY ME VT NH MA CT NJ DC MI

Producer of essential, global products: methanol and ammonia Global low‐cost producer due to U.S. natural gas advantage US methanol and ammonia markets suffer from an import deficit, which is expected to continue through at least 2018 Key barriers to entry include high capital requirements, lengthy permitting process and proximity to customers / suppliers Advantageous access to feedstock, customers and infrastructure Strong cash flow generation and significant step‐up in projected revenue and EBITDA from debottlenecking project Supported by a technically strong sponsor, with an exceptional entrepreneurial track‐record

Industry Overview

13

Industry Overview

Robust and Growing Global Methanol Market

• Methanol, also known as methyl alcohol or wood alcohol is the simplest of all alcohols
• With its diversity of applications – from paints and plastics, furniture and carpeting, car parts and windshield wash fluid –

methanol is one of the world’s most widely used industrial chemicals – Global demand in 2014 was roughly 72 million tons with 51% attributed to GDP‐linked consumer and industrial products, while 37% is from fuel/energy related uses, and 12% is from methanol to olefins (“MTO”) / methanol to propylene (“MTP”) – Historical demand has been robust and is forecasted to remain so in the long term with China at the forefront

___________________________________ Source: Argus JJ&A

2014 Global Methanol Demand by Derivative China Leading Forecasted Industry Growth

Formaldehyde 27% Acetic Acid 9% Methyl Methacrylate 1% MTBE & TAME 11% Biodiesel 5% Fuel Applications 12% Dimethyl Ether 9% Captive MTO/MTP 7% Merchant MTO/MTP 5% All Other 14%

Note: Total demand = 72 million

Blues = GDP-core - 51% Purples = Fuel/Energy - 37% Grays = Methanol to olefins = 12%

mn t/%

50 100 150 200 250 300 2015 2020 2025 2030 2035 mn t China N/E Asia S/E Asia/India ME/Africa EU/Russia South America North America

CAGR = 6.2%

14

Industry Overview

Chinese MTO Changing Global Methanol Demand

World Demand Growth (2000 - 2035E) (1)

• Excluding CTO/CTP, 2015 methanol demand is estimated to be 78 million tons
• China is the world’s largest producer of MTO and in 2015, MTO accounted for almost 18% of the country’s merchant

methanol demand

• MTO/MTP is poised to drive methanol demand, but affordability in current global crude oil environment remains key

___________________________________ (1) Source: Argus JJ&A

50 100 150 200 250 300 2000 2005 2010 2015 2020 2025 2030 2035 mn t Core - GDP Fuel MTO/MTP CTO/CTP

CAGR = 6.3% CAGR = 6.2%

(Coal to Olefins / Coal to Propylene)

15

Industry Overview

Exponential Growth Expected From Fuel Applications & MTO/MTP

___________________________________ Source: Argus JJ&A

• Chinese gasoline blending will continue to grow with its expanding population and automobile demand

‒ Europe currently allows blending of up to 3% methanol in gasoline. Countries such as Australia, Israel, Ecuador, Mexico, Egypt, and Oman are actively exploring methanol as a blend component in gasoline. ‒ MTBE use has been growing constantly and has reached 20 mm t/yr, mostly from Asia which is not subject to ethanol blending programs ‒ Many countries are also advancing the use of biodiesel, which requires blending approx. 10% methanol

• Methanol’s attractive features as transportation fuel – easy blending, high octane, improved combustion– is

encouraging new potential demand uses ‒ Use of methanol as a marine fuel is a large potential new market. Stenna Line has converted one of its ferry’s to methanol fuel and Methanex has on order six new dual‐fueled methanol transport ships

Fuel Applications and Gasoline Blending China’s MTO/MTP Expansion

• Beginning in 2011, China redefined the methanol

industry with its implementation of methanol consumption for olefin production ‒ Historically, olefins were produced from naphtha, but coal to methanol to olefins provided an economic alternative

• Chinese MTO/MTP will significantly increase

forecasted global methanol demand in the near term ‒ Argus expects China to add 3.75 mm t/yr of MTO capacity from 2016 to 2019. By 2020, MTO use will consume 67 mm t/yr of methanol. ‒ Because 1 ton of olefins requires 3 tons of methanol, China’s capacity growth equates to

• ver 10 mm t/yr of merchant methanol demand

1 2 3 4 5 6 7 8 9 10 2016 2017 2018 2019 2020 mn t Core - GDP Fuel MTO/MTP

World Methanol Demand Growth (Year over Year)

16

Industry Overview

Attractive U.S. Methanol Market

US Methanol Supply & Demand

The majority of U.S. methanol demand is currently supplied by imports

• 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 currently facing a natural gas supply deficit

– Structural shortages in natural gas reserves have led to government rationing

• U.S. methanol demand is expected to increase at a CAGR of 6.3% between 2015 and 2020, driven by GDP

___________________________________ Source: Argus JJ&A

• 10,000
• 5,000

5,000 10,000 15,000 20,000 2009 2013 2017 2021 2025 ’000t Exports Imports Production

17

Industry Overview

China Cost Curve Setting Industry Floor

China Cost Curve

• Cost curve remains steep at the high

end with Chinese producers using coal or expensive natural gas as feedstock

• As the global marginal producer,

China’s cost curve sets a price floor for methanol market – In current lower energy price environment, the price floor is ~$200/metric ton

• China’s natural gas‐based cost

structure was reduced in Q4 2015; however, the cost curve is not expected to see significant change in 2016

___________________________________ Source: Argus JJ&A

18

Industry Overview

Attractive U.S. Ammonia Markets

50% 28.1% 21.9%

Three-Year Average U.S. Ammonia Use by End Market (1)

___________________________________ Source: CRU (formerly Commodities Research Unit). (1) Based on 2010-2012.

Fertilizer Feedstock Industrial Feedstock Direct Application as Fertilizer

A significant portion of current and future U.S. ammonia demand is expected to be supplied by imports

• In 2015, the U.S. imported 5.1 million metric tons of ammonia

– Represents 31% of total consumption

• Ammonia must be imported to the U.S. as approximately 20 ammonia plants were closed between 1999 and 2007, including

OCIP’s Beaumont facility – These plants had total annual capacity of more than 8.0 million metric tons

• The U.S. is expected to remain a net importer for ammonia for the foreseeable future as the majority of new capacity announced

has already been cancelled

19

U.S. Fertilizer-Crop Price Relationship (1)

(US$ / St) (US$ / Bushel)

• Historically, there has been a meaningful correlation between nitrogen fertilizer prices and crop prices

– High crop prices incentivize farmers to increase fertilizer application in order to maximize crop yields, thereby increasing fertilizer demand and resulting in higher ammonia prices

• Marginal producers in Eastern Europe (particularly the Ukraine), effectively set the price floor, with each region applying its
• wn premium based on a number of factors such as local supply/demand dynamics, transportation, logistics and government

policies

___________________________________ (1) Source: Bloomberg

Industry Overview

Ammonia Prices Remain Strong Along with Crop Prices

2 4 6 8 10 12 200 400 600 800 1,000 1,200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Ammonia Mid Cornbelt Wheat Kansas City Cash Corn Chicago Cash

20

Industry Overview

Declining Trinidad Natural Gas Reserves: Supportive of OCI Partners LP Story

Overview

• Trinidad faces fundamental gas deficit issues as

increased natural gas production has not been matched by new reserves, leading to a fall in reserve life to 8.8 years in 2013

• Natural gas production fell in 2011 and 2012 as existing

reserves have been depleted Appropriation

• f Natural Gas

Impact on Nitrogen Fertilizer Production

• Ammonia capacity utilization rates in Trinidad have been consistently declining since 2011 as gas supply

issues limited production

• The nitrogen industry in Trinidad was established when there was a gas cost‐based competitive advantage
• ver the U.S.; however, as U.S. gas costs have fallen, this advantage has eroded
• From 2013 to 2014, gas allocation to the production of ammonia dropped by 12%, and allocation to

methanol dropped by 1.2%.

• Fertilizer exports to the U.S. are expected to continue to fall, creating a more favorable environment for

domestic production

___________________________________ Source: CRU March 2013 Ammonia 10 Year Forecast, Trinidad Ministry of Energy, Wood Macknezie, Integer, EIA.

(TCf) (R/P Ratio)

9 18 27 36 45 0.5 1 1.5 2 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Natural Gas Production Reserve to Production Ratio

___________________________________ (1) Source: EIA, Annual Energy Outlook 2014.

21

Industry Overview

We Expect Our U.S. Natural Gas Advantage to Continue for the Foreseeable Future

Total U.S. Natural Gas Production and Consumption, 1990 – 2040 (1)

(Trillion Cubic Feet)

• The emergence of a U.S. “shale gas advantage” has led to an increase in natural gas supply
• Production from shale formations increasing to ~50% of total annual natural gas production by 2040 as

compared with 34% in 2011

• According to the Energy Information Association (the “EIA”) forecasts, increases in the supply of U.S. natural gas

are tracking to exceed increases in U.S. natural gas demand by 2019, leading to approximately 5.8 Tcf of net exports by 2040

Increased US natural gas production… …has lead to lower prices

• This abundance of U.S. natural gas has resulted in attractive domestic natural gas prices, often substantially

below natural gas prices in other global markets, such as Europe, Japan and Northeast Asia

• Having a low cost feedstock for the majority of our methanol and ammonia production gives us a significant

competitive advantage

• The EIA expects U.S. Henry Hub natural gas prices to remain low for the foreseeable future; natural gas forward

for 2015 is under US$ 3.00 MMBtu

‐10 10 20 30 40 2000 2005 2010 2015 2020 2025 2030 2035 2040 Production Consumption Net Imports

Sponsor Overview

23

Sponsor Overview

Overview of Our Sponsor – OCI N.V.

• OCI N.V. is a global natural gas‐based fertilizer and industrial chemicals producers with

production facilities in the Netherlands, USA, Egypt, and Algeria

• As of September 2015, the Sawiris family collectively owns 54% of the outstanding shares
• Currently employs approximately 3,000 people worldwide
• OCI N.V. is traded on the NYSE Euronext Amsterdam (OCI:NA)
• Approximately € 3.1 billion market capitalization as of September 2016

24

Sponsor Overview

Overview of Our Sponsor – OCI N.V.

Summary Overview

• Leading global natural gas-based fertilizer & chemicals producer

‒ Production facilities in The Netherlands, USA, Egypt and Algeria complemented by global distribution network ‒ Top 5 five global nitrogen-based fertilizer producer - sellable capacity of c.7.7 mtpa at end-2014 with competitive blended natural gas cost advantage over peers

• Natural gas monetization focus following demerger of Construction business as of 9 March

2015

‒ Pure play fertilizer & chemicals company offering distinct investment propositions

• Growth initiatives 2014 - 2016

‒ 2015: additional volumes from Sorfert Algeria, debottlenecking OCI Beaumont and Iowa Fertilizer Co start-up ‒ On track to increase sellable capacity by 60% to c.12 mtpa by end-2016 ‒ On June 12, 2015, OCI NV acquired BioMCN, a methanol and bio-methanol producer in the Netherlands with two methanol plants, of which one is operational (440 ktpa) and one mothballed (430 ktpa)

• Trading on Euronext Amsterdam since 25 January 2013 (NYSE Euronext: OCI)

‒ AEX Index constituent since March 2014

25

Sponsor Overview

OCI Fertilizer Highlights

• With the addition of Iowa

Fertilizer Company (IFCo), total design saleable capacity for nitrogen‐based fertilizers will increase to 8.7 million metric tons (10.4 million tons including merchant ammonium sulphate) by 2016

• OCI Fertilizer operates five production assets located in North

Africa (Egypt, Algeria), Europe (the Netherlands) and the U.S., with production capacity of nearly 7.0 million mtpa of nitrogen‐based fertilizer

• This capacity is expected to increase to 8.6 mtpa in 2016 with

the addition of IFCo and OCI Beaumont’s post‐expansion capacity

• Fertilizers produced include ammonia, urea, calcium ammonium

nitrate (CAN), urea ammonium nitrate (UAN) and other intermediary products; the business also sells ammonium sulphate (AS) out of the Netherlands and Belgium

• OCIP also produces methanol at OCI Beaumont with a capacity
• f 0.75 mtpa expanding to 0.9 mtpa
• OCI Fertilizer’s downstream product portfolio includes:
• Melamine production
• AS distribution
• North African facilities with attractive production costs
• Global in‐house distribution network with a presence in Europe

and strategic joint ventures in Brazil and the U.S.

Egyptian Fertilizers Co. Egypt Basic Industries Co OCI Nitrogen Sorfert OCI Beaumont Iowa Fertilizer

Appendix

27

Appendix

Board of Directors

OCI GP LLC

Chairman Director, President & CEO Director Director

Michael Bennett Frank Bakker Renso Zwiers Nassef Sawiris Background

Significant experience in the nitrogen industry, including serving as CEO of Terra Industries from 2001 to 2010 Served as vice president and general manager of OCIB from September 2011 to June 2013 Served as COO of OCI Fertilizer since January 2013 and has served as CEO of OCI Nitrogen since May 2010 Served as CEO and director of OCI N.V. and Orascom Construction Industries (“OCI SAE”) since its incorporation in 1998 Director

Francis Meyer

Served as Executive VP of Terra Industries from 2007 until April 2008 and as Senior VP and CFO from 1995 until 2007 Director

Dod Fraser

Served as President of Sackett Partners Inc. since its formation in 2000 upon retiring from a 27‐year career in Investment Banking CFO & Vice President

Fady Kiama

Served as corporate planning director and group controller of OCI SAE from 2001 until May 2013 Director

Nathaniel Gregory

Senior lecturer in finance at the MIT Sloan School of Management.

28

Appendix

Partnership Overview

Methanol Ammonia

• Methanol is a liquid petrochemical utilized in a variety
• f industrial and energy‐related applications
• The primary use of methanol is to make other

chemicals

• ~30% of global methanol demand is converted

to formaldehyde, which is used in various industrial applications

• Methanol is also used in the lumber industry, in paper

and plastic products, and various other paint and textile applications

• Outside of the U.S., methanol is used as a fuel in

several capacities:

• Direct fuel for automobile engines
• Gasoline blended fuel
• Octane booster in reformulated gasoline

Essential Building Blocks for Numerous End-Use Products

• Ammonia constitutes the base feedstock for nearly all of

the world‘s nitrogen chemical production

• Over 95% of global ammonia output is used as a

feedstock to produce other chemical forms of nitrogen, such as:

• Fertilizers
• Blasting/mining compounds
• Fibers and plastics
• NOx emission reducing agents
• Direct application to soil for agricultural purposes
• Ammonia is widely used in industrial applications,

particularly in the Texas Gulf Coast market

Heat from Natural Gas Combustion

29

Appendix

Product Process Overview

Optional H2N2 Natural Gas Desulphurization Reactor Steam Reformer Unit Heat Recovery Syngas Compression Methanol Synthesis Reactors Cooling Methanol Separation Methanol Distillation Barge / Pipeline Methanol Storage Syngas Steam Ammonia Separation Cooling NH3 Synthesis Syngas Compression PSA Hydrogen Recovery Liquid Pure Ammonia Liquid Pure Methanol H2 Recycle Ammonia Storage Recycle Ammonia Process Flow Methanol Process Flow

• Methanol production unit

is a 730,000 metric ton per year unit that is comprised

• f Foster Wheeler‐

designed twin steam methane reformers for synthesis gas production, two Lurgi‐designed parallel low pressure, water‐cooled reactors and four distillation columns

• Ammonia production unit

is a 264,990 metric ton per year unit with a Haldor Topsøe‐designed ammonia synthesis loop that processes hydrogen produced by the methanol production process as the feedstock to produce ammonia

Natural Gas Steam is also used to drive the compressors Purge Gas

30

Appendix

Site Facility Pictures

31

Appendix

The U.S. Natural Gas Outlook

Annual Average Henry Hub Spot Natural Gas Prices, 2001 – 2028 (1) Low U.S. natural gas prices contribute to the competitive position of U.S. methanol and ammonia producers relative to foreign producers

• Natural gas forwards project low Henry Hub Spot prices through 2028

– Below $4.00 per MMBtu until 2026 – Below $4.50 per MMBtu through 2028

___________________________________ (1) Source: Bloomberg

($/MMBtu)

$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 Historical Henry Hub Spot Price Projected Henry Hub Spot Price

32

Appendix

OCIP Realized Methanol Pricing History

($/metric ton)

150 250 350 450 550 650 2012 2013 2014 2015 2016 Methanex Contract Southern Chemical Contract Argus Contract OCIP Realized Price

33

Appendix

US Methanol Imports

___________________________________ (1) Source: Argus JJ&A

34

Appendix

Gulf Methanol Capacity

___________________________________ (1) Source: Argus JJ&A

35

Appendix

New Methanol Capacity

Start Year Methanol Facility (1) Location Production Capacity (MTPA) Technology/EPC Status 2015 Methanex – Geismar I Geismar, LA 1,000,000 Jacobs Engineering 1/24/15 Produced first methanol from Geismar 1 2015 Celanese – Fairway LLC Clear Lake, TX 1,300,000 WorleyParsons 10/16/15 Started production 2015 Pampa Fuels LLC Pampa, TX 65,000 ExxonMobil/Proman Group 6/1/15 Fully operational and completed first shipment of methanol 2016 Methanex – Geismar II Geismar, LA 1,000,000 Jacobs Engineering 12/29/15 Successfully produced first methanol 2017 OCI – Natgasoline Beaumont, TX 1,650,000 Lurgi/OEC Construction began in November 2014 2019 Yuhuang Chemical

• St. James Parish, LA

1,800,000 Lurgi/Amec Foster Wheeler 8/18/15 Yuhuang secures St. James site for methanol plant 2019 G2X ‐ Big Lake Fuels Lake Charles, LA 1,400,000 Johnson Matthey/Proman Group 1/15/16 G2X hosted ground breaking ceremony for construction

___________________________________ (1) Source: Argus JJ&A

36

Appendix

New Ammonia Capacity

Start Year Ammonia Facility (1) Location Production Capacity (STPA)* Sellable/Usable Capacity (STPA) (1) Technology/EPC Permitting Status 2015 Koch Enid, OK +350,000 ‐ KBR

• 8/16/14 Began construction in mid‐September; project will be

implemented over three years 2016 PotashCorp Lima, OH +110,000 ‐ KBR

• Expected start up in 2016

2016 OCI Wever, IA 850,000 100,000 KBR/OEC

• On schedule to complete by 2016

2016 CF Industries Donaldsonville, LA 1,275,000 185,000 ThyssenKrupp Uhde

• Urea production began in November 2015

2016 CF Industries Port Neal, IA 850,000 80,000 ThyssenKrupp Uhde

• On track for 2016 startup

2016 Dyno‐Cornerstone Waggaman, LA 850,000 850,000 KBR

• 8/05/13 Cornerstone breaks ground on project

2016 LSB Industries El Dorado, AR 375,000 375,000 Leidos/SAIC (for Nitric Acid)

• Nitric acid plant expected start up in early 2016

2016 Agrium Borger, TX +160,000 ‐ KBR

• 8/7/15 Urea project will be completed at end of 2016; cancelled

ammonia expansion 2017 Dakota Gasification Beulah, ND ‐ ‐ IHI E&C

• 1/28/14 Urea plant scheduled for completion in early 2017

‐ Koch (Invista) Victoria, TX 400,000 400,000 1/31/14 Invista has put project on hold ‐ Northern Plains Grand Forks, ND 850,000 100,000 5/02/15 Announces product list of UAN, urea, DEF, AN, ATS, and anhydrous ammonia; no construction progress to date ‐ Ohio Valley Resources Rockport, IN 850,000 350,000 KBR/SEI

• 12/19/13 Signed MOU with TEQSA for development, and selected

Sinopec (SEI) for FEED & EPC; no construction progress to date ‐ MFC (Fatima) IN 850,000 50,000

• 6/24/14 Signed MOU with Maire Tecnimont; no construction

progress to date ‐ CHS Spiritwood, ND 850,000 ‐

• 9/05/14 CHS approved final plans for construction of fertilizer plant;

no construction progress to date

___________________________________ (1) Source: Blue Johnson (2014).

* Production capacity with “+” indicates additional capacity expansion on existing facility

37

Appendix

Methanol and Ammonia Plant Closures

Year of Closure Ammonia Facility Location Production Capacity (MTPA) 1999 Potash Corp. Clinton, IA 281,000 1999 Potash Corp. La Platte, NE 231,000 1999 Solutia Lulling, LA 551,000 2000 Borden Chemicals & Plastics Geismar, LA 468,000 2000 Diamond Shamrock Dumas, TX 83,000 2001 Agrium Kennewick, WA 237,000 2001 Cytec Fortier, LA 485,000 2001 DuPont Beaumont, TX 540,000 2001 Farmland Lawrence, KS 518,000 2001 Vanguard Pollock, LA 568,000 2003 Koch Sterlington, LA 1,213,000 2003 Simplot Pocatello, ID 116,000 2003 Terra Yazoo City, MS 193,000 2004 Air Products Pace, FL 110,000 2004 Potash Corp. Memphis, TN 452,000 2004 Terra Blytheville, AR 496,000 2005 Agrium Kenai, AK 694,000 2005 Diamond Shamrock Dumas, TX 88,000 2005 Terra* Beaumont, TX 264,990 2007 Agrium Kenai, AK 777,000 Year of Closure Methanol Facility Location Production Capacity (MTPA) 1998 Georgia Gulf Plaquemine, LA 480,000 1999 Methanex Fortier, LA 570,000 1999 Ashland Plaquemine, LA 450,000 2000 Sterling Texas City, TX 450,000 2000 Borden Chemicals & Plastics Geismar, LA 990,000 2001 Delaware City Delaware City, DE 200,000 2001 Enron Pasadena, TX 375,000 2003 Air Products Pace, FL 120,000 2003 El Paso Cheyenne, WY 180,000 2004 Lyondell Channelview, TX 770,000 2004 Celanese Clear Lake, TX 600,000 2005 Beaumont Methanol * Beaumont, TX 730,000 2005 Celanese Bishop, TX 500,000

___________________________________ * Represents current OCI Beaumont facility.