Ciner Resources LP Investor Presentation March 2019
Safe Harbor Statement This presentation may contain “forward-looking statements.” All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. Caution should be taken not to place undue reliance on any such forward-looking statements because actual results may differ materially from the results suggested by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections. These risks and uncertainties include, but are not limited to, those described in the Risk Factors section of CINR’s 10-K dated March 8, 2019, and those described from time-to-time in our periodic and other reports filed with the Securities and Exchange Commission. 2
Ciner Resources LP At A Glance Ciner Resources LP – At A Glance Fixed-distribution Master Limited Partnership § – IPO in September 2013 One of the largest and lowest cost producers of natural soda ash in the world § – Soda ash, an essential raw material used in the production of glass, chemicals and detergents, is a well structured global industry with steadily growing demand of ~2.5% annually, or ~ 1.2M ~2.7 million short tons annual soda ash production § ~60 years of mining reserves § 488 employees § 2018 Revenue: $486.7 million § 2018 Adjusted EBITDA: $136.5 million § 3
Ciner Resources LP Competitive Advantages Our Competitive Strategies Strong safety and environmental records § § Amongst lowest cost producers in the world Synergies created from Ciner Group § ‒ Combined globally we are the largest natural soda ash producer in the world ‒ Sponsor making port investments on East and West Coast to improve supply chain efficiency ‒ Established shipping business and low-cost solution mining technology Approximately 60 years of reserve life § Operational advantages compared to other US trona-based producers § ‒ Mining beds are shallow and high purity Uniquely configured asset footprint § § Stable domestic customer relationships Experienced management and operational team § 4
Ciner Resources LP Business Strategies Business Strategies Ciner has terminated its membership in ANSAC and will begin selling directly to international § market January 1, 2022 Together Ciner Group will be the largest exporter of soda ash globally o Pursuing additional growth projects to increase production volume to at least 3.0MM § Will leverage distribution network with parent group to market soda ash directly to § international markets Plant locations on two continents allow for efficient logistics solutions to both local o and global customers Provides a unique competitive advantage as compared to peers § Ability to optimize our market share both domestically and internationally o Intend to continue a disciplined financial policy to maintain a conservative capital structure § Balanced approach of both operating cash flow and debt to fund investments § 5
Ciner Resources LP Co-Gen Project New Co-Generation infrastructure provides significant energy cost reduction Project Overview Current Electrical Energy Sources Ciner will invest $50 million in total to complete § the installation of a new gas turbine and associated co-generation infrastructure New turbine will produce ~1/3 of the – electricity currently purchased off the grid 100% – Cost savings will result in ~$7-$10 million of Public Utility annual EBITDA Pro Forma Electrical Energy Sources § Gas turbine exhaust heat is used to “co-generate” steam for use in surface operations 10% Currently Ciner purchases 100% of its electricity § off the grid – $30 million annual electricity spend 30% – ~90% surface 60% ~10% underground – Public Utility Gas Turbine Steam Turbine 6
Ciner Resources LP Delivering Results to Unitholders Value Proposition Quarterly Distribution Per Unit Focused on long term sustainable growth § $0.575 – ~60 year reserve life, significant cost $0.550 inputs hedged, long-term customers $0.525 Increasing maintenance capex to improve – $0.500 plant reliability $0.475 Organic growth projects identified to grow § $0.450 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 production volumes by 2%-4% in 2019 Quarterly Coverage Ratio Identified additional growth projects that § would increase production volume to at least 1.60x 3MM tons per year 1.50x Co-gen project to provide $7MM – $10MM § 1.40x per year in energy cost savings 1.30x 1.20x Evaluating new logistics opportunities § 1.10x concurrent with exit from ANSAC 1.00x 0.90x Strong financial position at approximately 0.7x § 0.80x net leverage ratio 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 7
Ciner Resources LP Growing Global Demand Significant Consumption Growth Expected Diverse End-Market Uses (Global Soda Ash Consumption, millions of tons) (Global Soda Ash Consumption by End Market, By volume, 2018) Metals/Mining Alumina STPP Lithium 71.6 4.2% 2018 – 2024 CAGR: 0.9% 1.8% Carbonate 1.7% 0.8% Flat Glass 64.8 64.7 28.7% Soaps/Detergents 61.9 60.9 60.3 11.8% 58.9 58.7 Chemicals 13.8% Other Container Glass 12.8% 19.5% 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2024E Pulp & Paper Other Glass Demand = 65 MST 0.7% 5.0% Ample Room for per Capita Consumption to Grow Major Producer of Low-Cost Natural Soda Ash (2018, kg / person) (2018 Soda Ash Production Capacity) Searles Ciner Consumption per Capita Other Sythetic 10% 20% Region (kg / person) 7% Other Global Hou Natural 22% Tata 7% U.S.A. 14 20% Middle East 7 Genesis US Natural 28% 19% Solvay Latin America 5 22% Asia Ex-China 4 Global Production Capacity = 76 MST Africa 1 Solvay 45% US Production Capacity = 15 MST Source: IHS and USGS Soda Ash. 8
Ciner Resources LP Amongst the Lowest Cost Producers in the World Trona Based Production is Significantly Lowest-Cost Production Process Cost Advantaged U.S. Trona Solvay Hou As a producer of natural soda ash from trona, § Ciner Resources has a significant cost advantage Mining and Synthetic Synthetic Process refining trona production production compared to synthetic producers around the world Salt (brine), Salt (brine), Raw Ammonia, Trona Limestone, Trona-based production consumes less – Materials Carbon Ammonia Dioxide energy and produces fewer undesirable by- products than synthetic production Energy 4 – 6 10 – 14 10 – 14 Usage MMBtu / ton MMBtu / ton MMBtu / ton Synthetic producers incur additional costs – associated with the storage, disposal, or Deca Calcium Ammonium By- attempted resale of by-products (able to process Chloride Chloride Products into soda ash) (waste product) (co-product) Even accounting for higher freight and logistics § Approx. 1/2 cost of costs, Ciner Resources is cost competitive with competing processes 2.2x synthetic soda ash producers to most export 1.9x 1.8x Relative markets around the world 1.0x Soda Ash Production U.S. Trona European China China Hou Ciner Resources consistently operates at high Costs § (Natural Gas) Solvay Solvay utilization rates and routinely sells 100% of its production Source: IHS and Ciner estimates 9
Ciner Resources LP Most Efficient Soda Ash Producer in Green River Basin Ciner has the highest soda ash production per employee and the best energy efficiency in the Green River Basin. Green River’s Most Energy Efficient Production Per Employee (x10 ST, 2017) Producer ( MMBtu/ton, 2017) 609 572 Peer 1 475 Peer 2 513 Peer 3 Source: State of Wyoming Mining Report, Wyoming Department of Environmental Quality. Annual Report State Inspector of Mines of Wyoming. Bessemer Wyoming estimates. 10
Ciner Resources LP Stable Operating and Financial Results Soda Ash Volume Sold (millions of ST) 2.66 2.71 2.61 2.74 2.55 2.50 2013 2014 2015 2016 2017 2018 Ciner Resources EBITDA ($ in millions) 136.5 133.9 120.5 120.1 117.1 104.4 2013 2014 2015 2016 2017 2018 11
Ciner Resources LP Investment Highlights Investment Highlights Strong safety record and environmental responsibility § Operational advantages, including strategic opportunities with Sponsor to leverage § both intellectual property and supply chain advantages Balance sheet flexibility to support both organic and inorganic growth opportunities § Stable cash generation and customer relationships § Most efficient producer in Green River § Low cost soda ash production § Significant mining reserve life § Proven management and operational team § 12
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