OCI (OCI) Investor Update summary

Strategic rationale and acquisition overview

• Entered binding agreement to acquire OCI's Clean Ammonia project in Beaumont, Texas, for $2.35 billion, with construction 70% complete and phase one production targeted for 2025.

• OCI will complete phase one construction, with cost, schedule, and performance guarantees in place; experienced OCI team to join and operate the facility.

• Acquisition positions the company as an early mover in the lower carbon ammonia industry, supporting a diversified, resilient portfolio aligned with energy transition goals.

• Project is capital-light, leveraging third-party feedstock supply and CCS partnerships with Linde and ExxonMobil, reducing execution risk and capital intensity.

• Phase one is expected to be free cash flow accretive from 2026 and EPS accretive from 2027, exceeding internal targets of 10% IRR and payback under 10 years.

Transaction overview

• OCI Global agreed to sell 100% of its equity in the 1.1 million metric tonne Clean Ammonia project in Beaumont, Texas to Woodside Energy for $2.35 billion on a cash-free, debt-free basis.

• Woodside will pay 80% of the purchase price at closing, with the remainder due upon project completion, defined by agreed terms.

• The transaction is subject to customary closing conditions and OCI shareholder approval, with expected closure in H2 2024.

Project details and market positioning

• OCI Clean Ammonia is the world's first large-scale, low-carbon intensity hydrogen-based greenfield ammonia facility, expected to produce first ammonia in 2025.

• Project location on the US Gulf Coast provides access to abundant feedstock, regulatory incentives, and proximity to key export markets in Europe and Asia Pacific.

• The project integrates Linde's low CI hydrogen and carbon capture technology, with CO2 sequestration infrastructure contracted with ExxonMobil.

• Phase one will capture and sequester 1.7 million metric tonnes of CO2 annually, meeting blue ammonia standards.

• The facility is designed for future expansion, with infrastructure in place to double capacity and permitting for a second line underway.