GLOBAL LEADING GREEN ENERGY

AND CHEMICAL COMPANY

IR Fact Book

Investor Relations
May 2019
Disclaimer

The following earnings release and the financial, business and other information contained herein are current only of
the date hereof and readers are cautioned that changes in general macroeconomic, business, financial and other
conditions may have occurred since such date and our financial condition and results of operations may have been
materially impacted as a result of such occurrences. Certain information contained herein may be considered
forward-looking in nature, which are based on certain assumptions and expectations of future events that are subject
to risks and uncertainties, including comments on trends in the global economy and duration of such trends, future
development and investment plans including market strategy and business plans. We disclaim any responsibility or
obligation to update or disseminate any revisions to any forward-looking statements contained in this document to
reflect any changes in assumptions or circumstances.

Actual future results and trends and statements regarding plans or expectations may change for various reasons
which management has not anticipated, including as a result of a further slowdown in global economic growth, further
weakening of customer demand for our products and the loss of major customers, pricing pressures, inability to
finance certain projects and capital expenditures on attractive terms, or at all, among others.

2
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

3
OCI at a glance Company Profile
• Foundation : August 5, 1959
• Headquarter : 94 Sogong-ro, Jung-gu, Seoul, Korea
• Representative directors: Woo Sug Baik (Chairman), Woohyun Lee (Vice Chairman)
TaekJoong Kim(CEO/President)
• Employees : 3,709(Consolidated basis at the end of 2018)
• Main Businesses : Basic chemical, Petrochemicals & Carbon Materials, Energy Solution
• Plants : Korea (Gunsan, Gwangyang, Pohang, Iksan and etc.),
China (Shandong, Hebei and etc.), US (Alabama, Texas and etc.)
• Subsidiaries : 40 companies(at the end of 2018, domestic: 6, overseas: 34)
• Market capitalization: KRW 2.1trillion(End of May 10, 2019 , ranked 106th in KOSPI)
• Stock Price(2014~May 10, 2019)
250,000
(Unit: KRW)
214,000
200,000 186,500

150,000
123,000
89,300
100,000
81,200
50,000 70,100
60,500

-
May-14

May-15

May-16

May-17

May-18

May-19
Mar-14

Jul-14

Mar-15

Jul-15

Mar-16

Jul-16

Mar-17

Jul-17

Mar-18

Jul-18

Mar-19
Nov-14

Nov-15

Nov-16

Nov-17

Nov-18
Jan-14

Sep-14

Jan-15

Sep-15

Jan-16

Sep-16

Jan-17

Sep-17

Jan-18

Sep-18

Jan-19
4
OCI at a glance
 Entered into Poly-Si business by successfully leveraging chemical engineering technology with more than
50-year of experiences. Looking ahead, OCI is leaping forward to the green energy company
Pioneer of Chemical
Industry
 1959 Established Oriental
Chemical Industries
 1968 Commissioned Incheon
Soda Ash Plant
 1974 Established Korea Steel
Chemical
 1976 -Commissioned Pohang Plant
-IPO on KOSPI
 1979 Commissioned Iksan
Hydrogen Peroxide Plant
*SD OCI: Shandong OCI
TS OCI: Tangshan OCI Chemical
MS OCI: Ma Steel OCI Chemical
OJCB: Shandong OCI-Jinyang Carbon Black
OCIMSB: OCIM Sdn. Bhd.
Entering the Global
Marketplace
 1983 Established Incheon
Central Research Center
 1987 Commissioned
Gwangyang Plant
 1991 Commissioned TDI plant
 1995 Acquired Wyoming
Soda Ash plant (US)
Stepping in the
Future
 2001 Established
DC Chemical (DCC)
 2006 Acquired
Columbian Chemicals
(Global Carbon Black)
 2008 Launched Poly-Si
production
 2009 -Acquired Sodiff Advanced
Materials (NF3, WF6)
-Completed P2 Poly-Si
plant and started
construction of P3
-Renamed as OCI
History
Leaping forward to
the Green Energy
Company
 2010 Completed SD OCI*
(Coal tar distillation)
Sold Columbian Chemicals
 2011 Acquired Cornerstone Power
Development and entered into
Solar PV project business
 2012 Signed an agreement for Alamo
project in the US
 2013 Listed OCI Resources on
NYSE (Soda Ash)
 2014 Commercialized TS OCI*
(Fumed Silica)
 2015 Sold OCI Resources
 2016 -Sold OCI Materials
-Completed OCI SE
cogeneration power plant
-Completed MS OCI*(coal tar
distillation) and OJCB* (Carbon
Black)
 2017 Acquired Tokuyama Malaysia
(OCI MSB*, Poly-Si) 5
OCI at a glance Global Footprints

7 countries, 28 business sites, 3,709 employees(1)

TS OCI CHEMICAL OCI ALABAMA

OCI CHINA

OCI COMPANY

OCI JAPAN
OCI Solar (CHINA)

DCRE

OCI VIETNAM OCI SOLAR POWER

OCI GLOBAL

MS-OCI MISSION SOLAR ENERGY

CHEMICAL

OCIMSB
SD OCI
OJCB

(1) Consolidated basis at the end of 2018

6
OCI at a glance Shareholders & Stock Price vs. KOSPI

Shareholders Stock Price Performance vs. KOSPI

(January 2014=100)

140
OCI
Company
related 120 KOSPI
Individuals
26.8% 22.4%
100
Number of
listed shares 80
23,849,371
60
Institions
Foreigners 26.6%
24.2% 40

20

(As of end of 2018) -

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

7
OCI at a glance Business Division
Petrochemicals &
Basic Chemical Energy Solution Others
Carbon Materials

Main products Poly-Si, Fumed Silica, Carbon Black, Benzene, Solar PV generation, EPC, Real estate
Hydrogen Peroxide, TDI, Pitch, Plasticizer and solar PV modules, development,
Soda Ash, etc. cogeneration power plant System
Sodium Percarbonate and integration and
etc. etc.

Main OCIMSB, OJCB, OCI Solar Power, DCRE,

Subsidiaries OCI Specialty, MS OCI, OCI Power, OCI I&C
Tangshan OCI, SD OCI and etc/ OCI(Wuxi) Solar Power, Bio
OCI Alabama and etc. Mission Solar Energy,
OCI SE and etc.

Main Plants • Gunsan: Poly-Si, Fumed • Pohang/Gwangyang: • Saemangeum:

Silica and etc. Coal Tar distillation, Cogeneration power
• Iksan: Hydrogen Carbon Black, Benzene, plant
Peroxide Pitch, Plasticizer and etc. • US: Solar PV generation,
• Gongju, Cheonan: Slim • Gunsan: TDI modules
Road • China: Coal Tar • China: Solar PV
• China: Fumed Silica distillation, Carbon Black, generation
• US: Sodium Pitch • Korea: EPC for solar PV
Percarbonate
• Malaysia: Poly-Si
8
OCI at a glance Earnings by Division
 Recorded sales revenue of KRW615billion and EBITDA of KRW37billion in Q1 2019
 Weak earnings continued due to weak prices of Poly-Si, TDI and Benzene as well as Poly-Si
maintenance despite the earnings improvement of Energy Solution Division

Sales Revenue(KRW bil) EBITDA(KRW bil)

베이직케미칼
Basic Chemical
석유화학 및 카본소재
Petrochemical & Carbon Materials
에너지솔루션
Energy Solution
587(16%)
기타/연결조정
Others 3,632

3,112
460(15%)
2,737 431(Margin 16%) 325
1,683
150
1,401
250
1,565
225
247
1,319 127
1,426 37(6%)
58 97 26
879 615 43 33
(5)
269 (4) (27) (11) (17)
811
431 483 317 EBITDA Margin 2016 2017 2018 Q1 2019
100
(138) (44) Basic Chemical 16% 19% 11% -6%
(182) (198)

2016 2017 2018 Q1 19 Petrochem&

14% 19% 16% 8%
Carbon Materials
Footnote: Not audited by outside auditors Energy Solution 13% 5% 20% 33%

9
OCI at a glance Sales Revenue by Region and Division

Sales Revenue by Region(1)(2) (2018) Sales Revenue by Divsion(2) (2018)

Others
Europe 2% Others 3% 1%

Energy
Solution
14%
Asia 20%

Basic Chemical
Korea 48%
42%

China 21% Petrochemicals

and Carbon
Materials
43%
US
6%

Footnote
(1) Korea revenue includes transactions through domestic letter of credit
(2) Before inter-company adjustment

10
 OCI at a glance Main Subsidiaries
Basic Chemical

Petrochemicals & Carbon Materials

Energy Solution

OCI Company (Korea)

100%

100%
OCIMSB OCI China OCI Enterprises OCI SE
100%
(Korea) 100% (China) (US) (Korea)

OCI Specialty OCI Global 100%

78.07% 80% 100%
Shandong OCI OCI Alabama (Hong Kong)
(Korea)

OCI Power
100%
60% Ma Steel OCI OCI Solar Power (Korea)
100%

DCRE
Mission Solar 100%
51% OJCB (Korea)
100% Energy

100% Tangshan OCI

Footnote: Consolidated basis at the end of 2018

11
OCI at a glance 2018 Highlights & 2019 Strategy

2018 Highlights 2019 Strategy

Operational  Reached effective capacity of Poly-Si to
Excellence 69,000MT
 Expanded shipment of high quality Poly-Si to
mono wafer makers
(42% in 2017  70% in 2018)
 MSE’s solar PV module plant reached full
operation in May on the successful shift to
distributed generation from utility
 Expanded specialty chemical product lines
including Hydrogen Peroxide
 To reduce cost of Poly-Si through capacity
expansion to 79,000MT
 To increase share of high quality Poly-Si
supply to mono wafer(70%~) and
semiconductor wafer companies
 To become total solution provider in solar
PV generation through the acquisition of
Kaco New Energy Korea
 To increase Carbon Black market share
through the expansion of HOC
(100150kMT in Q4 ‘19)
 To expand high value added chemical
products

Future  Entered into Bio industry by establishing a Bio  To invest in Bio venture companies with
Growth Business Division pipeline of oncology
Engine
 Site cleanup has been completed for DCRE  DCRE prepares for a partnership
city development business agreement to cooperate in the city
development and groundbreak

12
OCI at a glance Mid to Long-term Strategy

Strengthen Existing Business Presence

 To stabilize profitability of Poly-Si through development of semiconductor grade
products(5,000MT production and sales by 2022)
 To reduce cost and maintain market presence through minimum CAPEX
 Opportunities for Chemical business expansion utilizing unused site and energy
infrastructure at OCIMSB
 To supply value-added products including Carbon Black and electronic chemicals

New Leadership
 A highly-experienced management team will continue to execute OCI strategies and supervise
the operation
 Reshape the company model from centralized to distributed leadership, giving autonomy,
decision-making authorities and responsibilities to division heads of each business

New Business Development

 Invest 10% of cash flow from operation in new businesses every year
 Generate 1/3 of sales revenue from new businesses in 10 years

13
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

14
Basic Chemical Main Products
Product Capacities (MT) (At the end of 2018)

Poly-Si (Global Top 3) Hydrogen Peroxide (Korea Top 3) Fumed Silica (Korea No.1, Global No.5)

말레이시아
Malaysia 중국
China 한국
Korea
한국
Korea
한국
Korea
65,800 69,000
15,000 15,000 15,000
13,800 17,000
6,000 6,000 6,000

52,000 52,000 52,000 85,000 85,000 85,000

9,000 9,000 9,000

2016 2017 2018 2016 2017 2018 2016 2017 2018

*Based on nominal capacity

Business OCI Plant Competitors Regional Markets

Commencement Location
Poly-Si 2006 Gunsan, Korea Wacker (Germany), China, Taiwan, Korea
Samalaju, Malaysia GCL-Poly (China), Daqo
(China)
Hydrogen 1979 Iksan, Korea Hansol Chemical (Korea), More than 40 countries
Peroxide Evonik (Germany), Taekwang including Korea, Japan,
(Korea) Taiwan and Philippine
Fumed Silica 2006 Gunsan, Korea Cabot (US), Wacker Korea, China, Japan,
Hebei, China (Germany), Evonik (Germany), Taiwan, Asia, Europe,
Tokuyama (Japan) Americas, Middle East
and Africa
15
Basic Chemical Feedstock and Downstream

Feedstock OCI Products Downstream

Solar PV wafer, cell,

Quartz Metal Silicon Poly-Si module*
Semiconductor wafer

Coating, paint,
Fumed Silica
semiconductor

Naphtha, Hydrogen Pulp, paper, detergent,

H2
Natural Gas Peroxide semiconductor, display

* Solar PV module: OCI’s US subsidiary, MSE (Mission Solar Energy) operates the facility with 200MW capacity

16
Basic Chemical OCI in Solar PV Value Chain
 OCI focuses on both ends of Solar PV value chain, Poly-Si and Solar PV installation and generation

High-purity (10N+)

Poly-Si Ingot/wafer Cell/module Solar PV Projects

Effective capacity of OCI Customers Korea: EPC, O&M

OCI OCI Customers
69,000MT US, China: electricity
Business generation and
Global Top 3 developments

Related OCIMSB Mission Solar Energy OCI Solar Power

Subsidiaries US Solar PV module OCI Global
(200MW) OCI Power

17
Basic Chemical Long-term Perspectives on Solar PV
 Annual installation of Solar PV is expected to exceed 200GW beyond 2031
– Driven by improved economics, ESS technology, adoption of EVs and penetration of air conditioning
units in emerging markets including Indonesia, India, and Latin America

US LCOE(Solar PV vs. Conventional) Long-term Solar PV Market Outlook(GW)

(Unit: USD/MWh) Rest of the World
300.0
250 Thailand
Philippines
Malaysia
250.0 Indonesia
Australia
200
South Korea
Japan
200.0 India
China
150 Nuclear Other South/Central America
Mexico
150.0 Chile
Brazil
100 Coal Canada
United States
100.0 Sub-Saharan Africa
Natural Gas Middle East & North Africa
50 Turkey
Solar PV(Utility) Other Europe
50.0 North Europe
Wind
Iberia
Italy
0 United Kingdom
2010 2011 2012 2013 2014 2015 2016 2017 2018 0.0
France
2015 2020 2025 2030 2035 2040 2045 2050 Germany

Source: Lazards (Levelized Cost of Energy Analysis, November 2018), Bloomberg NEF(2018 Long-term PV Market Outlook, August 2018)
(1) LCOE (Levelized Cost of Energy): The average total cost to build and operate a power-generating asset over its lifetime divided by the total
energy output of the asset over that lifetime
(2) Nuclear LCOE does not include nuclear waste disposal and environmental impacts
18
Basic Chemical 2019 Solar PV Demand
 Weak Poly-Si prices, below most manufacturers’ cash costs, reflect the slump in demand and ramping up of
new capacities in 1H 2019
 The demand is expected to be stronger towards 2H 2019 with robust growth expectation in Europe, the US and
Japan due to policy changes and improved cost competitiveness
 More visibility on Chinese policy is expected to reduce market uncertainties

Solar PV Installation Demand(1H’18~2H’19) Key Drivers for Solar PV Demand

(Unit: GW)  Policy changes and improved cost competitiveness
75
China Non-China Region Key Drivers 2019
• Abolition of MIP(1) on Chinese cells and
29
modules since Sep. 2018
55 Europe • Price increase in CER(2) 18GW
52
50 • Coal and nuclear power phase-out in many
countries including Germany and France
20 10
24 • Developers to secure the 30% ITC(3) before
its ratcheting down from 2020
US 12GW
(30% by end of 2019, 26% by end of 2020,
22% by end of 2021, expired in 2022)
46
40
35 • Subsidy(FiT) cut by half for 11~17GW of
28 projects awarded before March 2015 but yet
Japan to start construction. Developers must build 9GW
plants by March 2020 to lock in the current
rate
1H 2108 2H 2018 1H 2019E 2H 2019E
(1) Minimum Import Price
(2) Certified Emission Reduction
Source: Annual forecast- BNEF(February 21, 2019) and OCI analysis
(3) Investment Tax Credit
19
Basic Chemical Mid-term Solar PV Market Forecast
 Solar PV Market in 2019 is expected to grow to 125GW driven by various regional markets including North
America, Europe, India as well as stable demand in China
 Non-Chinese markets will drive the demand growth further beyond 2019
‒ Annual growth rate(2017~2021E): global +9%, non-China: +22% vs. China: -7%

Global Solar PV Installation Forecast(GW)

Non-China market 46% 58% 69% 71% 72%

(% of total) ROW
146 Africa
136
125 Middle East
107 Japan
99 Latin America
Other Asia
North America
Europe
India

China

(kMT) 2017 2018 2019(E) 2020(E) 2021(E)

Poly-Si Demand 428 430 475 490 479
Solar 394 393 434 450 438
Semiconductor 34 37 39 40 41
Source: Global Solar PV installation actual and forecast by Bloomberg NEF(Central scenario, February 21, 2019)
Poly-Si demand forecast(OCI analysis)
Silicon usage(gram/watt): Bloomberg NEF(November 19, 2018) and OCI analysis
5.0(2016), 4.1(2017), 3.8(2018), 3.6(2019E), 3.4(2020E), 3.2(2021E)
20
Basic Chemical Strong Demand for High Purity Poly-Si
 Demand for high-purity Poly-Si rapidly increases as mono wafer companies expand their capacities. However,
only a limited number of Poly-Si manufacturers can supply high purity Poly-Si, thus increasing the price
premium

Mono Wafer Capacity Expansion(GW, year-end) Price Premium for High Purity Poly-Si
Poly-Si Price Premium
(USD/kg) (%)

CAGR 58%
25.00 프리미엄
Premium 40%
87 Poly-Si(9N+)
(2016~2019E) 35%
Poly-Si(6N-8N)
20.00
71 30%

15.00 25%

20%

36 10.00 15%

24 10%
5.00
5%

0.00 0%

May-14

May-15

May-16

May-17

May-18

May-19
Jan-14

Sep-14
Jan-15

Sep-15
Jan-16

Sep-16
Jan-17

Sep-17
Jan-18

Sep-18
Jan-19
2016 2017 2018 2019E

Source: Bloomberg NEF(January 22, 2019) based on company Source: PV Insights

announcements
21
Basic Chemical Poly-Si Business Strategy
 OCI adopts two-track strategy; Korea focuses on high quality Poly-Si for mono wafer and semiconductor
while Malaysia focuses on mono and high efficiency multi-wafer with cost competitiveness
 Target to increase share of high quality Poly-Si supply to mono wafer(70%~) and to produce and sell
5,000MT of semiconductor grades within 2022

Two-Track Strategy

High Quality
Mono wafers and
Korea Semiconductor wafers

Poly-Si
Malaysia
Competitive Cost
Mono and
High-efficiency multi wafers

22
Basic Chemical Poly-Si Capacity & Cost Roadmap
 Reached annual capacity of 79,000MT at the end of Q1 2019 through the successful completion of revamping at
Malaysian plants
 In 2019, cost reduction through minimum CAPEX of the expansions and process optimization is expected

OCI Effective Capacity Roadmap(MT) Poly-Si All-in Cost Roadmap

PS1(+10,000MT)
Completed Lower
PS2(+3,200MT) End of Q1’19
Malaysia Completed utilization
End of Q3’18 rate in Q3’18
Korea
79,000
100 99
97
69,000
65,800
27,000 89 82
17,000 100% 75
13,800
Utilization rate

52,000 52,000 52,000 52,000

2016 2017 2018 Q3 2019 Q1(E) 2016 2017 2018 2019 2020
Note: 2016~2018, actual data
2019E~2020E, assumed normal operation
23
Basic Chemical Value-added Product Develpment
 In 2019, we plan to expand the value-added products of Hydrogen Peroxide and Phosphoric Acid applied to
semiconductor industry

Long-term Strategy for Value-Added Product Expansion

 Hydrogen Peroxide(H2O2)  Phosphoric Acid(H3PO4)

- Increase in sales of electronic grade - Capacity expansion of Phosphoric
- Supply increase to overseas customers Acid used in semiconductor
for semiconductor grade - Launching the Etchant for 3D Nand Flash

Industrial Electronic Grade Industrial Semiconductor Grade

30% 22%
39%
57%

70% 78%
61%
43%

2018 2019 Future 2018 2019 Future

* Year-end capacity

24
Basic Chemical Quarterly Earnings

Sales Revenue EBITDA (RHS) Operating Income

Sales Revenue (LHS) Operating income (RHS)
(KRW bil) EBITDA
500 486 250
427 (KRW bil)
464
400 356 200
377 381 298 294
300 269 150
118
200 87 91 100
74
64 56 64
100 31 36 50
21
12
2
- -
(6) (8)
(17)
(100) (50)
(59) (62)
(200) (72) (100)

Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19

Operating
3% 0% 7% 13% 8% 6% -20% -21% -27%
Margin
EBITDA Margin 17% 16% 19% 24% 21% 19% -2% -3% -6%

25
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

26
Petrochemicals & Carbon Materials Main Products

Product Capacities (kMT) (At the end of 2018)

Coal Tar Distillation(Global Top 3) Carbon Black(Korea No.1, Asia No.10) Pitch(Global top 3)
중국
China 중국
China 중국
China
한국
Korea 한국
Korea 한국
Korea
1,180 1,180 1,180 350 350 350 531 531 531
80 80 80
730 730 730 329 329 329

270 270 270

450 450 450 203 203 203

2016 2017 2018 2016 2017 2018 2016 2017 2018

* Excluded HOC (Hyundai OCI Carbon Black) 100kMT * Assumed maximum production

TDI Benzene Plasticizer

Korea DOTP 가소제
Plasticizer
한국
Korea 65 65 65
15 15 15

50 50 50 260 260 260

50 50 50

2016 2017 2018 2016 2017 2018 2016 2017 2018

27
Petrochemicals & Carbon Materials Main Products
(At the end of 2017)

Business OCI Plant Competitors Regional Markets

Commencement Location
Coal tar distillation 1978 Pohang & Koppers (US), Middle East, China,
& Pitch (Acquisition: 2000) Gwangyang, Korea Rutgers (Germany) Australia, North
Shandong, Anhui, America, Africa
China
Carbon Black 1978 Pohang & Cabot (US), OEC Korea, Japan, China,
(Acquisition: 2000) Gwangyang, Korea (Germany), Birla Southeast Asia,
Shandong, Anhui, Carbon (India), Europe
China Black Cat (China)
BTX 1995 Gwangyang, Korea GS Caltex, Korea, US, China
Samsung Total,
LG Chemical,
Lotte Chemical
TDI 1990 Gunsan, Korea Hanwha Chemical, China, Turkey,
BASF Southeast Asia,
(Germany), Korea
Covestro(Germany)
Plasticizer 1991 Pohang, Korea Aekyung Korea, Turkey, Egypt
Petrochemical, LG
Chemcal

28
Petrochemicals & Carbon Materials Feedstock & Downstream

Feedstock OCI Products Downstream

Oil refiners FCC Slurry Oil

Distillation
Carbon Carbon Tire and industrial rubber,
Steel Coal tar plastic, paint, ink
Black Oil Black

Anodes for Aluminum smelting

Pitch
and other binding applications

Wire compounds, wallpaper,

P/A Plasticizer flooring, PVC film, automotive
sealant

Styrene Monomer
Coke Oven
BTX Intermediate for various plastic
Light Oil and electronic production

Polyurethanes
Toluene DNT TDI
Furniture, auto, paint, foam

29
Petrochemicals & Carbon Materials Carbon Black Value Chain
 OCI currently provides Carbon Black mostly to tire makers; however, it plans to expand the supply of
value-added products used for ink and plastic

Tire, MRG(2),
Carbon Black Automotive
Ink, Plastic
OCI Customers
350kMT Capacity Korean, Japanese and Annual growth rate of
OCI Business Korea No.1 2~3%(3)
Chinese
Asia No.10 tire makers
Mechanical Rubber Grade
(MRG)

Ink, paint, plastic

Related Manufacturer
OJCB(1)
Subsidiaries Value-added Products

(1) OJCB: OCI-Jinyang Carbon Black Co., Ltd.

(2) MRG: Mechanical Rubber Grade
(3) CAGR of global auto sales volume(2007~2017)

30
Petrochemicals & Carbon Materials Carbon Black Demand
 Global Carbon Black demand presented stable annual growth rate of 3% as emerging markets including
India and Thailand show rapid growth despite the slow growth of developed markets

Carbon Black Demand by Region Carbon Black Demand by Application(2018E)

(KMT)

15,250
14,415
Specialty
13,463
Market 7%
12,568
12,243
11,390 기타
Others Non-Tire
Rubber
동유럽
Eastern Europe 19% 2018
남미
South America
EU
Carbon Black
북미
North America Demand
중국 (ex.China)
Asia 외 아시아 13,463kMT
중국
China
Tire 74%

2012 2014 2016 2018(E) 2020(E) 2022(E)

Source: Notch Consulting Carbon Black Data Book 2018

31
Petrochemicals & Carbon Materials Carbon Black Strategy
 OCI expands its market share in Asia including Korea, China and Southeast Asia and targets to increase
the portion of value-added products
 HOC is expected to achieve 150kMT capacity by Q4 2019 through the expansion of 50kMT

Capaicites and Startegy of OCI and HOC

Site Company Sales Strategy & Update

: Existing Plant
Korea OCI • To expand market share in
: New Plant Southeast Asia utilizing the
sales volume increase from
HOC expansion
(HOC)
100kMT150kMT(Q4 2019)
• Increase the portion of
OCI-Jianyang
Pohang higher grade application in
Carbon Black Daesan
(OJCB) its sales
80kMT Zaozhuang Gwangyang

OCI China OJCB • Quality differentiation from

270kMT Chinese local competitors in
the carbon black market for
tires

32
Petrochemicals & Carbon Materials Business Expansion
 Enhance presence in Korean and Asian carbon material markets with JV partners which can supply stable
feedstock

Company Region Business Capacity OCI Share Commercialization

OJCB Carbon Black 80kMT 51% Q3 2016

MS OCI China 350kMT 60% Q3 2016

Pitch &
Carbon Black Oil
SD OCI 380kMT 80% Q2 2010

Hyundai-OCI
Carbon Korea Carbon Black 100kMT 49% Q1 2018
(HOC)

33
Petrochemicals & Carbon Materials TDI, Pitch price Trend

TDI Price Index Pitch Price Index

(Jan. 2016=100) (Mar. 2016=100)

300
350

300 250

250
200

200
Price adjustment due 150
Tight supply due to lower
150 to capacity expansions
utilization rate of coal tar
in Germany, China
100 distillation plants in China driven
100 and Middle East
by Chinese governments
environmental regulation
50 50

- -
May-16

Sep-16

May-17

Sep-17

May-18

Sep-18

May-19
Mar-16

Jul-16

Mar-17

Jul-17

Mar-18

Jul-18

Mar-19
Nov-16

Nov-17

Nov-18
Jan-16

Jan-17

Jan-18

Jan-19

Source: ICIS (CFR China Main Prot & HK) Source: Average price of Bai chuan, Zhong yu, and Zhuo chang
(EXW China)

34
Petrochemicals & Carbon Materials Carbon Black & Benzene Price

Carbon Black Price Index Benzene Price Index

(Jan 2016=100) (Jan 2016=100)

200
미국
US 200
180
중국
China 180
160
160
140
140
120 120
100 100
80 80
60 60
40 40

20 20

- -
Jan-16
Mar-16
May-16
Jul-16

Jan-17
Mar-17
May-17
Jul-17

Jan-18
Mar-18
May-18
Jul-18

Jan-19
Mar-19
May-19
Sep-16
Nov-16

Sep-17
Nov-17

Sep-18
Nov-18
Mar-16
May-16

Mar-17
May-17

Mar-18
May-18

Mar-19
Jul-16

Jul-17

Jul-18
Sep-16
Nov-16

Sep-17
Nov-17

Sep-18
Nov-18
Jan-16

Jan-17

Jan-18

Jan-19

Source: Notch Consulting Source: Platts (FOB Korea)

35
Petrochemicals & Carbon Materials Quarterly Earnings

Operating Income,
Sales Revenue Sales Revenue (LHS) Operating income (RHS) EBITDA (RHS) EBITDA
(KRW bil) (KRW bil)
500 250
450
410
400 200
352 367
342 340 343
350 317
306
300 286 150
250
200 100
78
150 67 63 68 63 63
57 60 57 54 54 54
47 50
100 50
21 26
50 12 17

- -
Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19
Operating
16% 15% 16% 16% 17% 15% 16% 4% 5%
Margin
EBITDA
20% 17% 19% 19% 19% 17% 18% 7% 8%
Margin

36
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

37
Energy Solution Businesses
 Stable sales revenue is expected from electricity generation from cogeneration power and solar PV plants,
and EPC for solar PV going forward
(At the end of October 2018)

EPC(1) IPP(3) Asset Monetization

Solar PV • Focus on Korean market • Operating 77.9MWdc of • Successfully monetized the

Projects Solar PV plants in the US, US Alamo projects
Korea and China (509.0MWdc including
• Stable sales are expected Alamo 3~7)
from EPC and O&M(2) • Divestiture of project Ivory
(66MWdc) was completed
in August 2018
Cogeneration None • Location: Korea None
Power (Saemangeum Industrial
Complex)
• Electricity generation:
303MW
• Steam: 860ton/hour
• Generates additional
revenue from the sales of
REC(4) acquired from fuel
mix with wood pallet since
Q3 ’17
(1) EPC: Engineering, procurement, construction
(2) O&M: Operation & maintenance
(3) IPP: Independent power producer
(4) REC: Renewable Energy Certificate
38
Energy Solution Solar PV Projects
 OCI pursues solar PV projects that meet at least 10% unlevered IRR

Size
Country Type Project Location OCI Share / Remarks
(MWdc)
US IPP Alamo1~2 and others 60.0 Texas and others 100%
Monetization Alamo 4 ~7 579.0 Monetized(Alamo 4, sold 80% shares)
Project Ivory

Total 639.0
Korea IPP KDI and others 1.4 Sejong 40%
Monetization Various projects 17.9 Seoul and others Sold with 15%< levered IRR
EPC Namhae and others 16.0 Namhae and others Completed in 2017and 2018
Total 35.3
China IPP Jiaxing and others 22.1 Zhejiang 100%
Total 22.1
Total IPP 83.5
EPC 16.0
Monetization
11
596.9
696.4

39
Energy Solution Solar PV Projects

Alamo Project(Texas, US) Namhea Project – EPC(Namhea, Korea)

40
Energy Solution OCI Power: Acquisition of KACO New Energy Korea
 To become total solution provider in Solar PV generation through the acquisition of PCS(1) technology essential
for ESS(2) and inverter manufacturing
 Expect synergy through experience in the successful execution of Alamo projects(564MWac) in the US together
with Kaco New Energy

KACO New Energy Korea Synergy with OCI Power Business

• Manufactures ‘central inverters’ based in Gunsan, Total

OCI Power KACO
Korea EPC Inverter Solution Provider
‒ Sales revenue: KRW 32bil (2017) O&M PCS technology for
Financing for ESS Solar PV
• Owns PCS technology, essential for ESS generation
• OCI Power also acquired an exclusive selling right of
‘string inverter’ made in Germany to Korea and Synergy with successful
Japan markets execution partner for the
US Alamo project
(564dc)

 To reinforce OCI Power’s position in Korean Solar PV

(1) PCS(Power Conditioning System): systems converting between generation business
direct current(DC) and alternating current(AC)
(2) ESS(Energy Storage System)  To expand ESS business utilizing the PCS technology

41
Energy Solution OCI SE
 Expects steady revenue and margin from electricity and steam sales

Overview OCI SE

Completion: Q2 2016

CAPEX: KRW557.6 billion

Capacity: Electricity (303MW), Steam

(860ton/hour)

Main fuel: coal

Guidance for Annual Sales Revenue

- Electricity sales: KRW180 billion
(Assumed SMP(1) of KRW 85/kWh)
- Generates additional revenue from REC
sales from fuel mix with wood pallet since 2H
2017
(1) SMP: System Marginal Price

42
Energy Solution SMP(1) & Coal price
 As SMP is generally determined by the cost of LNG power plants, the price tends to follow the natural gas
price

SMP and Natural Gas Price Coal Price

Natural Gas for Generation SMP

(KRW/GJ) (KRW/kWh) (USD/MT)
25,000 180 140
발전용
Natural천연가스
Gas
160
SMP 120
20,000 140
100
120
15,000
100 80

80 60
10,000
60
40
5,000 40
20
20

0 0 0 Apr-14
Jul-14

Apr-15
Jul-15

Apr-16
Jul-16

Apr-17
Jul-17

Apr-18
Jul-18

Apr-19
Oct-14

Oct-15

Oct-16

Oct-17

Oct-18
Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19
Apr-14
Jul-14

Apr-15
Jul-15

Apr-16
Jul-16

Apr-17
Jul-17

Apr-18
Jul-18
Oct-14

Oct-15

Oct-16

Oct-17

Oct-18
Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Korea Gas Corporation, Korea Power Exchange Source: Bloomberg (FOB Newcastle 6,000kcal)
(1) SMP: System Marginal Price
43
Energy Solution Quarterly Earnings

Sales Revenue Operating Income

(KRW bil) EBITDA
Operating income (RHS) EBITDA (RHS) (KRW bil)
Sales Revenue (LHS)

600 Alamo 6 Monetization 300

504 (447KRW bil)
500 250

400 Alamo 6+Monetization Project Ivory 200

(103KRW bil) Monetization
300 150

180
200 168 100
124
80 99 100
48 92
100
19 28 24 27 36 24 33 50
7 5 2 9 18 14 11 20
- -
(2)
(13) (4)
(100) (50)

Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19

Operating
4% -27% -1% 6% 10% 14% 16% 9% 23%
Margin
EBITDA Margin 5% -9% 4% 15% 19% 24% 21% 16% 33%

44
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

45
New Businesses Entering into Bio Industry
 OCI established 50:50 JV, BNO Bio, with Bukwang Pharmaceutical in July 2018. The JV will invest KRW
10bil per annum on average for next 5 years
 OCI organized Bio Business Division and appointed Dr. Soojin Choi as the head of the division to actively
promote new Bio business

Entering into Bio Industry Joint Venture Structure

• OCI enters into the new industry with an experienced • Establishment: July 2018
partner, Bukwang Pharmaceutical • CEO: Yu, Hee-won
(Current CEO of Bukwang)

• Purchased 3.09% stake of Bukwang to strengthen the

partnership
50% 50%
• Dr. Choi joined OCI in July 2018, who had worked in
bio industry for 18 years and developed various
JV: BNO Bio
material including Korea’s first CoQ10. Also worked for
the government as Bio MD (Managing Director) to set
R&D strategies for Bio industry in Korea

46
New Businesses Bio Business Strategy
 To become a leading Global Biopharma, with a focus on specialty technologies, by adopting “Acquisition &
Development(A&D)” strategy

Strategic Investments:
BIO Business Division - New drug pipelines to L/I(1) or acquire
to execute Strategic Investments - Creating potential M&A opportunities
Targeting Oncology

Financial Investments:
Early stage new drug pipelines focusing on
50:50 JV to execute various disease
Financial Investments

Business Roadmap of OCI BIO Business

2018 2019 2020 2021 2022

Investment & Screening Sorting & Execution Global Bio Pharma

(1) L/I (License-In): To obtain the rights of technology, product, patents, know-hows etc. from the originator

47
New Businesses First Investment in Bio Venture Company
 Invested in a bio venture company, SN BioScience with a pipeline targeting pancreatic cancer as a strategic
investor in Q1 2019
 To build various bio business models including license-out(L/O(1)), clinical trials, technical transfer and
manufacturing

Investment Overview Platform Tech.: Double Core-shell Nano Micelle

• Pipeline: SNB-101(pancreatic cancer, pre-clinical)

Drug Candidate
– Phase I of clinical trials to start at the end of 2019 in
the US and Korea
Amphiphilic compound 1

• Platform technology: Double core-shell nano micelle

– Synergy with OCI’s nano treatment technology

• OCI’s investment: KRW 5bil. for 29.3% shareholding Amphiphilic compound 2

 World’s 1st technology (

 Applicable to other cancer treatment, combo-therapy
 Patent exclusive use by 2037

(1) L/O(License Out): To grant the use of rights of technology, product, patents, know-hows etc. to a third party

48
New Businesses DCRE: City Development Progress
 In April 2019, DCRE selected a preferred bidder among potential partners, and targets to conclude the
partnership agreement in a few months
 Ground breaking of the city development will be followed accordingly

Project Overview Key Milestone

• Location : Yonghyeon/Hagik, Incheon, Korea

Oct 2017 Changed development plan was approved
• Size : 1,546,792m2(including 13,149 households)
Jun 2018 OCI and DCRE won the tax case

Dec 2018 Site cleanup has been completed

Jan 2019 Business briefing session for potential partners

April 2019 Selected a preferred bidder among the

potential partners

Prepares for a partnership agreement to

cooperate and ground breaking

49
1 OCI at a Glance

2 Basic Chemical

3 Petrochemicals & Carbon Materials

4 Energy Solution

5 New Businesses

6 Financial Performance

50
Financial Performance Capital Structure Improvement
 Local credit rating was upgraded to A+(stable) from A0(positive) on earnings recovery and stable financial
status
 Proactively manage financial structure in preparation for any change in the business environment

Debt and EBITDA Coverage Ratio Net Debt and Net Debt/EBITDA
(Unit: KRW bil) (Unit: KRW bil)

3,000 14.0 x 2,500 16.0 x

2,738 차입금
Debt 15.0 x
2,628
EBITDA Coverage 순차입금
Net Debt 14.0 x
EBITDA이자보상배수 12.0 x
2,500 Ratio (1) Net Debt/EBITDA(1)
2,244 2,000 2,167 순차입금/EBITDA
12.0 x
10.0 x
2,000 1,916
2,118 10.0 x
7.9 x 1,500 1,746
1,509 8.0 x
1,494
1,500 8.0 x

4.5 x 6.4 x 6.7 x 6.0 x 1,000

6.0 x
1,000 5.9 x 673
4.8 x 4.0 x 881
4.0 x 542 4.0 x
500
500 2.1 x
2.0 x 1.5 x 2.0 x
1.9 x 1.2 x

0 0.0 x 0 0.0 x
2014 2015 2016 2017 2018 Q1 19 2014 2015 2016 2017 2018 Q1 19

(1) Q1 19 EBITDA and interest expenses: Latest twelve months

51
Financial Performance Free Cash Flow
 Generated free cash flow after the completion of major projects in 2016 and improved earnings in 2016
and 2017
 2018 adjusted CF from Operating Activities includes cash inflow of KRW355.7billion related to winning
DCRE tax case

(1)
CAPEX
Adjusted CF from Operating Activities(2)
FCF (3) 306 350

418 632
349
102
-53 -47 -113
-93
-282
-419 -442
-698
-876
-472
-596

-923

2013 2014 2015 2016 2017 2018

(1) Acquisition of property, plant and equipment

(2) Adjusted CF from Operating Activities= CF from Operating Activities-Interest expense+Interest income
(3) Free Cash Flow=(2)-(1)

52
 Financial Performance
(KRW bil)
2014 2015 2016 2017 2018 Q1 19
Sales Revenue 2,420 2,302 2,737 3,632 3,112 642
Operating Income -76 -145 133 284 158 -40
% Sales Revenue -3% -6% 5% 8% 5% -6%
Depreciation Expense 444 285 300 303 302 77
EBITDA 368 141 433 587 460 37
% Sales Revenue 15% 6% 16% 16% 15% 6%
Net Income 42 182 219 233 122 -41
Cash & Short-term Financial
572 509 498 1,035 967 821
Instruments
Tangible Assets 4,869 4,259 3,463 3,291 3,257 3,258
Total Assets 7,419 7,299 6,249 6,078 5,668 5,610
Debt 2,738 2,628 2,244 1,916 1,509 1,494
Total Liability 4,163 4,057 2,984 2,662 2,167 2,156
Total Shareholders’ Equity 3,255 3,242 3,265 3,416 3,501 3,455
Net Debt 2,167 2,118 1,746 881 542 673
Net Debt/EBITDA(1) 5.9 x 15.0 x 4.0 x 1.5 x 1.2 x 2.1 x
ROE(1) 1.3% 5.6% 6.7% 7.0% 3.5% -0.3%
ROA(1) 0.6% 2.5% 3.2% 3.8% 2.1% -0.2%
Leverage Ratio 128% 125% 91% 78% 62% 62%
Net Debt Ratio 67% 65% 53% 26% 15% 19%
84% 81% 69% 56% 43% 43%
Interest Expenses
EBITDA to Interest Coverage(1) 81 74 68 74 69 15
(1) Net income, EBITDA and interest expenses are the figures of latest twelve months 53
Financial Performance Shareholder Return

Divident Trend (2013~2018)

Unit 2013 2014 2015 2016 2017 2018

Dividend per share KRW - 200 - 400 1,950 850

Average share price
KRW 179,375 81,400 78,675 77,120 129,250 108,875
during the last week of each year
Dividend yield % - 0.2% - 0.5% 1.5% 0.78%
KRW
Net income(1) -305,346 22,168 -191,075 347,625 168,896 70,724
mil
KRW
Total dividends - 4,770 - 9,540 46,506 20,272
mil
Dividend payout ratio % 0% 22% 0% 3% 28% 29%

Earnings per Share KRW -12,803 929 -8,012 14,576 7,082 2,965
(1) OCI stand-alone

54
Financial Performance FX Impact on Earnings
 Change of 10KRW/USD affected KRW20 billion of sales revenue and KRW8billion of gross profit in 2018

US Dollar Foreign Exchange Sales Revenue Exposure to FX(2018)

(KRW/USD) RMB Others
0.2% 0.4%
1,250
Average
2017 2017: 1,131
2018 2018: 1,100
1,200

1,150

KRW
1,100 35.1%

USD
1,050 64.3%

1,000

950
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

출처: Bloomberg

55
Appendix

56
Appendix. Historical Performance by Segment

(Unit: KRW bil)

2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1

Sales Revenue 857.0 785.1 765.6 704.4 641.8

Basic Chemical 427.5 380.8 298.1 294.1 268.5

Petrochemical & Carbon Materials 409.9 366.7 343.0 306.2 316.9

Energy Solution 92.1 98.6 168.4 124.3 100.3

Others and Adjustment -72.5 -61.0 -43.9 -20.2 -43.9

Operating Income 106.3 79.9 15.6 -43.2 -40.1

Basic Chemical 35.7 20.8 -59.2 -62.2 -71.9

Petrochemical & Carbon Materials 68.1 53.9 53.6 11.5 16.7

Energy Solution 8.9 14.1 27.2 11.5 23.5

Others and Adjustment -6.3 -8.8 -6.0 -4.0 -8.5

EBITDA 183.1 154.7 90.1 31.9 37.1

Basic Chemical 90.5 73.5 -6.0 -8.1 -17.3

Petrochemical & Carbon Materials 77.9 63.2 62.8 20.8 26.3

Energy Solution 17.6 23.8 35.0 20.2 33.1

Others and Adjustment -2.8 -5.8 -1.7 -1.0 -4.9

Note: Not reviewed by outside auditors

57
Appendix. Board of Directors(Inside Director & Non-executive Director)

Directors Title Tenure Profile

Woo Sug Baik Chairman / ~March 2021 • Non-standing member, Office of Strategic R&D Planning under the
Representative Ministry of Trade, Industry & Energy
Director • (Former) President and CEO, eTEC E&C
• Education: Bachelor’s degree in Business Administration, Yonsei
University

Woohyun Lee Vice Chairman / ~March 2021 • Non-standing Vice Chairman, Korea International Trade Association
Representative • OCI Enterprise Inc., President/CEO, Director
Director • OCIMSB, Director
• (Former) Vice President, CSFB (HK) and Capital Z Partners
• Education: The Wharton School of University of Pennsylvania (MBA)

TaekJoong President and ~March 2022 • Currently a director of OCIMSB

Kim CEO / • (Former) COO at OCI, OCI Head of R&D center at OCI
Representative Head of RE Business division
Director • Education: Bachelor’s degree in Chemistry, Korea University

SangYeol Kim Non-executive ~March 2021 • (Former) Advisor, OCI

Director Standing Commissioner, The Korea Trade Commission
Vice Chairman & CEO, The Korea Chamber of Commerce &
Industry
• Education: Masters degree in Economics, Missouri State University

58
Appendix. Board of Directors

Directors Title Tenure Profile

Ki Pung Yoo Outside ~March 2020 • (Former) 14th President of Sogang University
Director • Education: Doctor’s degree in Chemical Engineering, Connecticut
University

BooHwan Han Outside ~March 2021 • Attorney at Law Gangnam LLP

Director • (Former) 44th Vice Minister of Justice, Prosecutor
• Education: Masters degree in Law, Harvard Law School

KyungHwan Outside ~March 2021 • (Former) Partner-in-Charge, KPMG US Audit

Chang Director President & Representative Director, KPMG
• Education: Bachelor’s degree in Mathematics, Korea University

Mi Chung Ahn Outside ~March 2022 • Adjunct Professor, Yonsei University

Director • MD of New Convergence Industry of R&D Strategy Planning Team of
Ministry of Trade, Industry and Energy
• Managing Partner, ERUUM & LEEON Intellectual Property Law Firm
• Education: Masters degree, University of Illinois
Jina Kang Outside ~March 2022 • Professor, Seoul National University
Director • Bachelor’s degree, Korea Advanced Institute of Science and
Technology(KAIST)
• MBA, University of Pennsylvania(Upenn, The Warton School)
• Ph.D., University of California, LA(UCLA, The Anderson School)

59
Appendix. OCI Poly-Si CAPEX by Phase

Poly-Si CAPEX by Phase

Effective
CAPEX
Phase Completion Capacity
(MT/year) USD mil USD / Kg
GEN1 P1 Q1 2008 6,500 545 83.8
P2 Q3 2009 10,500 895 85.2
GEN2
P3 Q4 2010 10,000 761 76.1
Korea
P3.5 Q3 2011 8,000 320 40.0
Debottlenecking P3.7 Q4 2011 7,000 245 35.0
P3.9 Q1 2015 10,000 110 11.0
Acquisition of OCIMSB - Q2 2017 13,800 173 12.5
Malaysia PS2 Q3 2018 3,200 32.9 10.3
Revamping
PS1 Q1 2019 10,000 78.7 7.9
Total 79,000 3,161 40.0

60
 Thank you!

IR contacts
E-mail: ir@oci.co.kr
Tel: +82-2-727-9534~5
Address: OCI Building, 94 Sogong-ro Jung-gu Seoul 04532 Korea

61