Ciner Resources LP Investor Presentation June 2016
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 11, 2016, 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 § 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 ~3% annually, or ~ 1.8M tons per year § Over 2.6 million short tons annual soda ash production § ~475 employees § 67+ years of mining reserves § 2015 Revenue: $486.4 million § 2015 Adjusted EBITDA: $133.9 million 3
Ciner Resources - Competitive Advantages Most efficient soda ash producer in North America § Amongst lowest cost producers in the world § Uniquely configured asset footprint § Strong safety and environmental records § Excellent workforce relationship; non-union § Stable end markets and customer relationships § Experienced management and operational team § 4
Headlines 2015 Earnings Per Unit § Earnings per unit $2.58 increased 15.7% § Volumes sold and produced both increased more than 100,000 ST § Both site records § Cash from operations increased from $106M in 2014 to $150M in 2015 § Working capital initiative § Completed sale to Ciner by OCI § Distributable Cash Flow increased from Distributable Cash Flow $53.1M in 2014 to $55.7M in 2015 $ Millions 2016 § Volumes forecast to increase 2% - 4% § Continue to examine acquisition opportunities 5
Delivering Value to Unitholders § Long-term stable cash flows support MLP Quarterly Distribution Per Unit model – 67+ year reserve life, significant cost inputs hedged, long-term customers § Organic growth projects identified that would allow production volume growth at 2%-4% per year through 2019 § Strong financial position at less than 1X leverage ratio § 1.23X trailing 12 month distribution coverage ratio Quarterly Coverage Ratio § Compelling investment proposition through yield plus potenitial distribution growth – ~8% current yield with ~5% distribution growth in last 12 months 6
Growing Global Demand Diverse End-Market Uses Significant Consumption Growth Expected (Global Soda Ash Consumption by End Market, By volume, 2015) (Global Soda Ash Consumption, millions of tons) Demand = 61 million short tons Ample Room for per Capita Consumption to Grow Major Producer of Low-Cost Natural Soda Ash (2015, kg / person) (2014 Soda Ash Production) Other Consumption per Capita Synthetic Other Hou Region (kg / person) 5% Global Searles 25% Ciner Natural 9.0% 19.5% 6% U.S.A. 16 Tata 19.5% Middle East 7 U.S. Natural 19% Tronox Latin America 5 Solvay 32.0% 20.0% Solvay Asia Ex-China 3 45% Africa 1 7 Source: IHS and USGS Soda Ash.
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 Mining and Synthetic Synthetic Process advantage compared to synthetic producers refining trona production production around the world Salt (brine), – Trona-based production consumes Salt (brine), Raw Ammonia, Trona Limestone, less energy and produces fewer Materials Carbon Ammonia undesirable by-products than Dioxide synthetic production Energy 4 – 6 10 – 14 10 – 14 – Synthetic producers incur additional Usage MMBtu / ton MMBtu / ton MMBtu / ton costs associated with the storage, disposal, or attempted resale of by- Deca Calcium Ammonium products By- (able to process Chloride Chloride Products into soda ash) (waste product) (co-product) • Even accounting for higher freight and logistics costs, Ciner Resources is cost 1/2~3/4 cost of competitive with synthetic soda ash competing processes 1 2.0x producers to most export markets around 1.4x 1.3x Relative the world 1.0x Soda Ash Production U.S. Trona European China • Ciner Resources consistently operates at China Hou (Natural Gas) Costs Solvay Solvay high utilization rates and routinely sells 100% of its production Trona-based production is one-half to three-quarters the cost of synthetic production 8 Source: IHS and Ciner estimates
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 Producer ( MMBtu/ton, 2014) (x10 ST, 2014) 591 548 Peer 1 482 Peer 2 458 Peer 3 9 Source: State of Wyoming Mining Report, Wyoming Department of Environmental Quality. Annual Report State Inspector of Mines of Wyoming. Bessemer Wyoming estimates.
Trona Beds Closest to the Surface Beds 24 & 25 (closest to surface) are the key for lower manufacturing costs as lower halite impurities and shallow beds are conducive to efficient mining Schematic Section – Green River Basin 10
Unique Pond Network Lowers Ore to Ash Ratio Wider pond surface area and a unique pond network facilitate the minimization of soda ash lost in processing Trona Advantageous Facility Layout · Ponds enable Ciner to recover soda ash via deca rehydration otherwise lost in processing Trona · Technological innovation enables Ciner to be more cost efficient Ore to Ash Ratio (1) 1.80 1.74 1.61 1.60 1.59 1.56 1.52 1.52 2008 2009 2010 2011 2012 2013 2014 2015 11 (1) Amount of short tons of Trona ore required to produce one short ton of soda ash/liquor
Ability to Execute on Growth Opportunities Ciner has the balance sheet flexibility to capitalize on organic expansion & acquisition opportunities to drive growth Balance Sheet Flexibility to Support Growth Ciner Resources Leverage and Liquidity · Approximately ~$97 million in current available revolver capacity ($ in millions) Ciner Resources LP 3/31/2016 · Conservative leverage profile with <1.0x Net Debt / EBITDA Cash & Cash Equivalents $22.9 Revolving Credit Facility Capacity - CINR 10.0 · Well-capitalized sponsor to support growth with deep Revolving Credit Facility Capacity - Ciner Wyoming 190.0 operational and industry expertise Less: Revolver Borrowings (103.5) Available Liquidity $119.4 Capitalize on Organic Expansion Opportunities · Emerging Market Growth Total Revolver Borrowings $103.5 · Debottlenecking, deca and efficiency enhancements Term Loan – driving approximately 2-4% annual production volume Total Debt $103.5 growth Net Debt 80.6 Pursue Accretive Acquisitions Total Debt / FY2015 EBITDA 0.8x · Natural Resources / Industrial Minerals Total Net Debt / FY2015 EBITDA 0.6x · Logistics Assets · Assets currently existing or to be developed at Ciner Enterprises Note: Adjusted EBITDA is a non-GAAP measure. For a description of Adjusted EBITDA and a reconciliation to the most comparable measures 12 calculated in accordance to GAAP, see the Appendix to this presentation.
Stable Operating and Financial Results Soda Ash Volume Sold (millions of ST) 2.66 2.55 2.5 2.5 2.3 2011 2012 2013 2014 2015 Ciner Wyoming EBITDA ($ in millions) 142.4 133.9 126.0 120.5 104.4 2011 2012 2013 2014 2015 13
Market Trends Asia pricing affected by environmental shutdown § Largest producer in China had a complete shutdown in Q1, which tightened the Asian market. As a result, we saw spot prices rise $20 - $30/ MT. Plant should be back to full production sometime this summer. Other international markets § South America demand weak, offset by strong demand in Mexico § Europe supply is tight in 2016 Domestic market share growth § Continued share growth strategy should see domestic volume rise by 4 – 6 % Confidential 14
Ciner Resources - Investment Highlights § Compelling investment proposition provided through yield plus distribution growth § Stable cash generation § Organic and acquisition growth opportunities supporting annual distribution growth § Conservative coverage ratio § Lowest cost soda ash production § Significant mining reserve life § Operational advantages § Strong safety record and environmental responsibility § Stable customer relationships § Proven management and operational team 15
APPENDIX Confidential 16
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