Ciner Resources LP Investor Presentation August 2017
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 6, 2017, 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 2.65 million short tons annual soda ash production ~475 employees 66+ years of mining reserves 2016 Revenue: $475.2 million 2016 Adjusted EBITDA: $116.5 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
Delivering Value to Unitholders 40% total unit holder return in 2016 Long-term stable cash flows support MLP model 66+ year reserve life, significant cost inputs hedged, long-term customers Organic growth projects identified that would allow production volume growth at 1%-4% per year through 2019 Strong financial position at approximately 1X leverage ratio 1.07X trailing 12 month distribution coverage ratio Compelling investment proposition through yield plus potential distribution growth ~8.5% current yield Quarterly Distribution Per Unit Quarterly Coverage Ratio 6
Growing Global Demand Diverse End-Market Uses (Global Soda Ash Consumption by End Market, By volume, 2016) Alumina & Others Metals/Mining 16% 6% Chemicals 9% Other Glass 5% Significant Consumption Growth Expected (Global Soda Ash Consumption, millions of tons) 57.9 58.7 58.9 60.2 61.0 61.9 2016 2026 CAGR: 2.1% 74.4 STPP & Soaps/Deterge nts 15% Container Glass 21% Hou 22% Pulp & Paper 1% Major Producer of Low-Cost Natural Soda Ash (2016 Soda Ash Production Capacity) Other Sythetic 8% Other Global Natural 2% US Natural 20% Demand = 62 million short tons Tata 20% Flat Glass 27% Searles 10% Solvay 23% Ciner 19% Tronox 28% 2011A 2012A 2013A 2014A 2015A 2016E 2026E Ample Room for per Capita Consumption to Grow (2016, kg / person) Region Consumption per Capita (kg / person) U.S.A. 16 Middle East 7 Latin America 5 Asia Ex-China 3 Solvay 48% Source: IHS and USGS Soda Ash. Global Production Capacity = 72 million short tons US Production Capacity = 14 million short tons Africa 1 7
Amongst the Lowest Cost Producers in the World Trona Based Production is Significantly Cost Advantaged As a producer of natural soda ash from trona, Ciner Resources has a significant cost advantage compared to synthetic producers around the world Trona-based production consumes less energy and produces fewer undesirable by-products than synthetic production Synthetic producers incur additional costs associated with the storage, disposal, or attempted resale of byproducts Even accounting for higher freight and logistics costs, Ciner Resources is cost competitive with synthetic soda ash producers to most export markets around the world Ciner Resources consistently operates at high utilization rates and routinely sells 100% of its production Lowest-Cost Production Process Process Raw Materials Energy Usage By- Products Relative Soda Ash Production Costs U.S. Trona Solvay Hou Mining and refining trona Trona 4 6 MMBtu / ton Deca (able to process into soda ash) 1/2~3/4 cost of competing processes 1 1.0x U.S. Trona (Natural Gas) Synthetic production Salt (brine), Limestone, Ammonia 10 14 MMBtu / ton Calcium Chloride (waste product) 1.4x European Solvay 1.3x China Solvay Synthetic production Salt (brine), Ammonia, Carbon Dioxide 10 14 MMBtu / ton Ammonium Chloride (co-product) 2.0x China Hou Source: IHS and Ciner estimates 8
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. Production Per Employee (x10 ST, 2016) Green River s Most Energy Efficient Producer (MMBtu/ton, 2016) 640 Peer 1 568 Peer 2 482 Peer 3 414 Source: State of Wyoming Mining Report, Wyoming Department of Environmental Quality. Annual Report State Inspector of Mines of Wyoming. Bessemer Wyoming estimates. 8
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 1.56 1.59 1.52 1.52 1.50 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) Amount of short tons of Trona ore required to produce one short ton of soda ash/liquor 11
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 New $235M revolver with ~ $100 million in current available revolver capacity closed August 1st Ciner Resources Leverage and Liquidity Conservative leverage profile with ~ 1.0x Net Debt / EBITDA Well-capitalized sponsor to support growth with deep operational and industry expertise Capitalize on Organic Expansion Opportunities Emerging Market Growth Debottlenecking, deca and efficiency enhancements driving approximately 1-4% annual production volume growth Pursue Accretive Acquisitions Natural Resources / Industrial Minerals Logistics Assets Assets currently existing or to be developed at Ciner Enterprises Note: Adjusted EBITDA is a non-gaap measure. For a description of Adjusted EBITDA and a reconciliation to the most comparable measures calculated in accordance to GAAP, see the Appendix to this presentation. 12
Stable Operating and Financial Results Soda Ash Volume Sold (millions of ST) 2.5 2.55 2.66 2.74 1.30 2013 2014 2015 2016 2017 Ciner Resources EBITDA ($ in millions) 104.4 120.5 133.9 116.5 56.0 2013 2014 2015 2016 2017 13
Market Trends China prices still strong China export prices expected to be up slightly in Q3. Government environmental inspections ongoing, which are expected to result in temporary shutdowns, leading to a reduction in soda ash supply China exports YTD through May at lowest level since 2004 Other international markets South America and Middle East pricing under pressure Expansion in Turkey pushed European synthetic producers to offer tons into other markets at lower prices Domestic prices flat so far in 2017 Ciner Turkey expansion caused a drop in prices as global market adjusts to new capacity coming online Confidential 13
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
Refining Process Flow Mining Process Flow Process Overview Continuous Mining Haulage Crushing Surge Storage Hoisting Ciner s Unique Process Screening & Crushing Calcining Dissolving Filtering Deca Rehydration Shipping Storage Drying Evaporation 17
Ciner Organizational Structure Ciner Enterprises (100.0% Ownership) Ciner Resources Corporation (100.0% Ownership) Public ~25% LP Interest Ciner Wyoming Holding Co. 73% LP Interest 14.551 million common units Natural Resource Partners L.P. (100% Ownership) 5.10 million common units Ciner Resource Partners LLC 2% GP Interest & IDRs 0.399 million units NRP Trona LLC (49% Member Interest) Ciner Resources LP (51% Member Interest) Ciner Wyoming LLC 18
About Ciner Group Established in 1978, Ciner Group is primarily active in energy, mining, shipping and media and is one of the largest conglomerates in Turkey Energy, Mining and Glass Coal & Copper Mining Soda Ash and Sodium Bicarbonate Production (Eti Soda) Glass manufacturing Electricity Generation Media Newspapers & Printing Movie & TV Production TV & Radio Broadcasting Online media Shipping Owns a fleet of 26 Bulkers, Containers, and Tankers which are managed by time charters 19
Non-GAAP Reconciliation Ciner Resources LP Quarter Ended 6/30/17 Quarter Ended 6/30/16 Net Income $17.5 $21.8 Add: Depreciation, depletion and amortization 6.5 6.4 Interest expense (net) 0.8 0.9 Equity Based Compensation 0.5 0.3 Restructuring Charges 0.3 - Adjusted EBITDA 25.6 29.4 Less: Adjusted EBITDA attributable to non-controlling interest 13.1 15.1 Adjusted EBITDA Attributable to Ciner Resources LP $12.5 $14.3 Non-GAAP Financial Measures We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation and amortization and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Adjusted EBITDA is a non-gaap supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess: our operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis in the case of Adjusted EBITDA, or financing methods; the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; our ability to incur and service debt and fund capital expenditures; and the viability of capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of Adjusted EBITDA in this investor presentation provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA are net income and cash flow from operations. Our non-gaap financial measure of Adjusted EBITDA should not be considered as an alternative to net income or cash flow from operations. Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income and cash flows from operations. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies, including those in our industry, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. 20
Non-GAAP Reconciliation Ciner Resources LP Year Ended 12/31/16 Year Ended 12/31/15 Net Income $86.3 $106.2 Add: Depreciation, depletion and amortization 26.1 23.7 Interest expense (net) 3.6 4.0 Loss on disposal of assets (net) - - Restructuring Charges 0.5 - Adjusted EBITDA 116.5 133.9 Less: Adjusted EBITDA attributable to non-controlling interest 59.3 67.7 Adjusted EBITDA Attributable to Ciner Resources LP $57.2 $66.2 Non-GAAP Financial Measures We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation and amortization and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Adjusted EBITDA is a non-gaap supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess: our operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis in the case of Adjusted EBITDA, or financing methods; the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; our ability to incur and service debt and fund capital expenditures; and the viability of capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of Adjusted EBITDA in this investor presentation provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA are net income and cash flow from operations. Our non-gaap financial measure of Adjusted EBITDA should not be considered as an alternative to net income or cash flow from operations. Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income and cash flows from operations. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies, including those in our industry, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. 21
Non-GAAP Reconciliation Coverage Ratio The following table presents a reconciliation of the non-gaap financial measures of Adjusted EBITDA to GAAP financial measure of net income for the periods presented: 22
Capital Structure Capitalization Ciner Resources Available Liquidity ($ in millions) As of June 30, 2017 ($ in millions) Facility Size Available Liquidity Cash and Cash Equivalents $15.8 Long Term Debt Ciner Wyoming Credit Facility $109.0 Revenue Bonds due 2017 8.6 Revenue Bonds due 2018 11.4 CINR Revolving Credit Facility 0.0 Total Long Term Debt $129.0 Total Equity $249.8 Total Capitalization $378.8 Revolving Credit Facility $10.0 $10.0 Ciner Wyoming Credit Facility 190.0 61.0 (1) Total $200.0 $71.0 (1) Includes outstanding borrowing of $78.0 mn and $20 mn of revenue bonds. 23
IDR Structure CINR IDR Structure Marginal Percentage Interest in Distributions Distribution per Unit Range (expressed as % of MQD) LP Share GP Share From To Initial Split 98% 2% 0% -- 115% 2nd Split 85% 15% 115% -- 125% 3rd Split 75% 25% 125% -- 150% 4th Split 50% 50% 150% -- above 24