OCI (OCI) Investor Update summary

Strategic review and divestment progress

• Four major transactions since December 2023 are expected to generate $11.6 billion in tax-free gross proceeds, supporting the goal of closing the share price discount to intrinsic value and unlocking shareholder value.

• OCI plans to return approximately $3.4 billion to shareholders by November using a tax-efficient capital repayment mechanism, following the closing of Fertiglobe and IFCO deals.

• OCI has announced the redemption of 2025 bond notes and repurchase of minority partner stakes in OCI Methanol.

• OCI expects to achieve a net cash position by year-end, with further extraordinary cash distributions possible.

• Further strategic clarity is expected around the Q3 results.

Sale of OCI Methanol to Methanex

• OCI agreed to sell 100% of its Global Methanol Business to Methanex for a $2.05 billion enterprise value in a cash and stock deal.

• OCI will receive $1.15 billion in cash and $450 million in Methanex stock, becoming the second largest Methanex shareholder (~13%).

• Net proceeds to OCI are expected to be about $1.2 billion after adjustments for debt, minority interests, and other items.

• The deal covers all US and European methanol assets, including a 50% stake in Natgasoline, subject to resolution of a lawsuit by Proman.

• Transaction closing is expected in H1 2025, pending regulatory and legal approvals.

Strategic rationale and implications

• The transaction is positioned as a transformative step to crystallize value for shareholders and enhance Methanex's portfolio with attractive assets.

• OCI leverages its green methanol expertise and gains exposure to Methanex's low-carbon capabilities.

• OCI's new stake in Methanex offers potential upside from operational improvements and industry cycles.

• Methanol and ammonia are key to the hydrogen economy and decarbonizing hard-to-abate industries.

• OCI HyFuels is a first-mover in renewable and low-carbon fuels for road, marine, power, and industrial sectors.