Oci Company Ltd. · KRX:456040
Oci — Investor Presentation (June 2023)
25 slides from Oci's investor presentation, June 2023
Slide 1: Introduction to OCI Holdings & Key Issues Related to Transition to a Holding Company
Introduction to OCI Holdings & Key Issues Related to Transition to a Holding Company Investor Relations June 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for the sole purpose of providing information to shareholders and investors in relation to OCI Holding’s transition to a holding company and cannot be interpreted as a solicitation for securities offering, sales, trading, or subscription. The Company do
Slide 3: Transition to Holding Company; Strategies of Major Subsidiaries; Shareholders' Value Creation
1 Transition to Holding Company 2 Strategies of Major Subsidiaries 3 Shareholders’ Value Creation 3
Slide 4: Transition to OCI Holdings
Transtion to OCI Holdings ▪ OCI Holdings, spun off as of May 1, 2023, aims to focus on the management of investment assets and to provide strategic directions to strengthen expertise of each business ▪ Investment portfolio includes subsidiaries in Chemicals, Energy Solutions, Urban Development, and
Slide 5: Spin-off and Transition Overview
Spin-off and Transition Overview ▪ Transition Process [ Spin-off ] [Tender Offer & Investment in Kind [Investment in Kind of OCI Shares ] of Subsidiaries] Board approval Spin-off Listing change & Board approval Listing of Holding company Holding Company re-listing complete for capital increase new s
Slide 6: OCI Holdings Key Initiatives
OCI Holdings Key Initiatives ▪ Efficient capital allocations for company-wide growth while maximizing returns to shareholders ▪ Strengthening and expanding ESG management1) across portfolios Portfolio Portfolio Value Development Enhancement Creation ✓ Establishing a growth strategy ✓ Examine the gro
Slide 7: Strategies of Major Subsidiaries
1 Transition to Holding Company 2 Strategies of Major Subsidiaries 3 Shareholders’ Value Creation 7
Slide 8: Energy Solutions: OCI in Solar Value Chain
Energy Solutions : OCI in Solar Value Chain ▪ Enhancing the capabilities of each solar value chain as to strengthen the position as a global solar company High-purity (10N+) Polysilicon Ingot/Wafer Cell/Module Solar PV Projects OCI Solar-grade Polysilicon Customers Module Korea: Inverter, EPC, O&M B
Slide 9: Energy Solutions: OCIMSB
Energy Solutions : OCIMSB ▪ OCISMB’s SoG poly-si target capacity to be 65,000 MT, preparing for expansion by phase in time for additional electricity utilizing idle facilities ▪ Only upstream producer located in Southeast Asia at the heart of new production base for non-China solar value chain, with
Slide 10: Energy Solutions: Mission Solar Energy
Energy Solutions : Mission Solar Energy ▪ Mission Solar Energy (MSE), module production capacity expansion from 210MW to 1GW ▪ Expecting a fast payback period for the investment due to Advanced Manufacturing Production Credit (AMPC) of Inflation Reduction Act (IRA) ▪ Establishing partnership with su
Slide 11: Energy Solutions: OCI Solar Power, etc
Energy Solutions: OCI Solar Power, etc ▪ Strategic focus on early-stage solar PV developments and sales for high profitability amid strong market demands for solar projects in the US ▪ Expansion of ESS related business and regional expansion based on successful project experiences US Solar PV Pipeli
Slide 12: Energy Solutions: OCI SE
Energy Solutions : OCI SE ▪ SE cogeneration plant, only energy supplier in the Seamangeum Industrial Complex, in operation since 2016 ▪ With the application of Best Available Technology, SE’s air emission permit standard is significantly lower than that of other power plants, and transition to 100%
Slide 13: Urban Development: DCRE
Urban Development : DCRE ▪ Started recognizing sales and operating profits based on construction progress for the 2021 pre-sold complexes ▪ Negotiations underway after submitting a new development plan considering noise countermeasures to the city ▪ Strong demand for coming pre-sales expected due to
Slide 14: Shareholders' Value Creation
1 Transition to Holding Company 2 Strategies of Major Subsidiaries 3 Shareholders’ Value Creation 14
Slide 15: Improvement in Financial Position
Improvement in Financial Position ▪ Financial performances improved with the turnaround from polysilicon market starting from 2H 2020 ▪ Balance sheet stability achieved with continued reduction in debt and net borrowings Key Investment Indications Net Debt Ratios 순차입금 Net Debt 순차입금비율 Net Debt to Equ
Slide 16: ESG and Shareholder Return
Shareholder Return ▪ Strengthening ESG management of the holding company and promoting sustainable growth by adopting advanced governance structure ▪ Active shareholder return policies to be pursued such as dividends, share buybacks and strengthening communication with market stakeholders Shareholde
Slide 17: Appendix
Appendix 17
Slide 18: Solar PV Installation Outlook
Solar PV Installation Outlook ▪ Due to achievement of solar grid parity and supportive renewable energy policies by governments, the solar installation market is expected to grow structurally as to meet the goal of carbon neutrality ▪ Intensified dependence on Chinese solar value chain has led to th
Slide 19: Non-China Value Chain
Non-China Value Chain ▪ Since the release of US guidance on domestic content requirements for renewable subsidies under the IRA, production expansion in the US, which had been limited to modules, is expanding by value chain, and Europe’s Ne-Zero Industry Act is expected to foster the solar industry
Slide 20: OCIMSB Financials
OCIMSB Financials ▪ Since the acquisition of OCIMSB in 2017, business turned around by gradual capacity expansion and production efficiency ▪ Leading the non-China poly-si market with cost competitiveness and realizing stable margins along with the growth of global solar market OCIMSB Operating Inco
Slide 21: Appendix. Financial Position
Appendix. Financial Position Summary of Consolidated (Unit: KRW bil) Summary of Consolidated (Unit: KRW bil) Income Statement Mar. 2023 Financial Position Mar. 2023 Current Assets 5,368 Sales 719.6 Cash & ST Financial Assets 1,411 Cost of Goods Sold 477.5 Account Receivables & Others 392 Gross Profi
Slide 22: Appendix. Financial Position
Appendix. Financial Position Summary of Consolidated (Unit: KRW bil) Summary of Consolidated (Unit: KRW bil) Income Statement Mar. 2023 Financial Position Mar. 2023 Current Assets 4,390 Sales 1,195.0 Cash & ST Financial Assets 1,657 Cost of Goods Sold 868.3 Account Receivables & Others 706 Gross Pro
Slide 23: Appendix. Historical Performance by Division
Appendix. Historical Performance by Division (Unit: KRW bil) 2019 2020 2021 2022 Sales 2,605.1 2,002.5 3,244.0 4,671.3 Basic Chemicals 1,211.0 851.4 1,333.6 1,803.6 Petrochemicals & Carbon Materials 1,133.0 904.8 1,374.5 1,910.9 Energy Solutions 388.6 328.5 444.8 708.5 Urban Development 0.4 0.4 214.
Slide 24: Appendix. OCI Holdings' Board of Directors
Appendix. OCI Holdings’ Board of Directors Directors Title Profile Woo Sug Baik Inside Director • Chairman of Board of Directors, OCI Holdings Co, Ltd. Woo Hyun Lee Inside Director • Chairman & CEO, OCI Holdings Co, Ltd. • Non-standing Vice Chairman, Korea International Trade Association Jin Seok Se
Slide 25: Thank You
Thank You IR Contacts E-mail: [email protected] Address: OCI Building, 94 Sogong-ro Jung-gu Seoul 04532 Korea