Slide 1: Fertiglobe Q3 2022 Investor Presentation
Fertiglobe Q3 2022 Investor Presentation November 2022
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may or should be placed by any person for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or f
Slide 3: Table of Contents
Table of Contents Highlights Q3 and 9M 2022 Market Outlook Appendix Financial Performance 3
Slide 4: Safety First: Commitment to Zero Injuries
Safety First: Commitment to Zero Injuries 12-month rolling recordable incident rate to 30 September 2022 0.25 incidents per 200,000 manhours Total TRIR (Total Recordable Injury Rate)(1) Target Zero Injuries at All Facilities Achieve leadership in safety and occupational standards across the operat
Slide 5: Fertiglobe at a Glance
Fertiglobe at a Glance Leading Nitrogen Fertilizer Exporter Globally and Unique Ammonia Platform(2) 4 World-class Strategically Located Production Facilities 50% of Assets Younger Global In-House Distribution Capabilities, than 10 years 50.0% 36.2% 13.8% including ~1,000kt Storage Capacity 6.7mt Sel
Slide 6: Fertiglobe is a Strategic Partnership With Strong Shareholder Support
Fertiglobe is a Strategic Partnership With Strong Shareholder Support Partnership Geared Towards Growth and Value Creation, Supported by Shareholders with a Strong Track Record OCI NV 50%(1) 36%(1) Abu Dhabi National Oil Company #3 global producer of nitrogen products(2) Leading integrated O&G compa
Slide 7: Q3 2022 Results Highlights
Q3 2022 Results Highlights • Q3 2022 revenues increased 52% YoY to $1,318 million and adjusted EBITDA +64% YoY to $606 million, driven by higher selling prices. Adjusted net profit was $292 million in Q3 2022, +84% YoY. • Fertiglobe generated free cash flow (FCF) of $189 million in Q3 2022, a 237% i
Slide 8: Key Fertiglobe Investment Highlights
Key Fertiglobe Investment Highlights 1 Leading nitrogen fertilizer exporter globally and unique ammonia platform Strategically located asset base and global distribution capabilities driving structurally higher realized 2 prices High quality asset base at attractive cost curve position underpinned b
Slide 9: Table of Contents
Table of Contents Highlights Q3 and 9M 2022 Market Outlook Appendix Financial Performance 9
Slide 10: Q3 2022 Results Summary
Q3 2022 Results Summary Summary Key Financials1 and KPIs $ million unless otherwise stated Q3 2022 Q3 2021 %Δ 9M 2022 9M 2021 %Δ Revenue 1,317.9 866.7 52% 3,974.0 2,126.7 87% Earnings growth in Q3 2022 is driven by higher selling prices Gross Profit 583.9 338.7 72% 1,919.5 780.7 146% Gross profit ma
Slide 11: Q3 2022 Results
Q3 2022 Results Own-Produced Sales Volumes (Mt) Key Product Benchmark Prices, $/t Revenue ($m) 1.40 1.36 Urea Egypt Ammonia Middle East +52% 0.31 0.32 +54% +60% 1,318 1.09 1.04 923 867 775 484 599 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Fertiglobe - Ammonia Fertiglobe - Urea
Slide 12: Strong Revenue Profile Translating Into Robust EBITDA and Cash Flow
Strong Revenue Profile Translating Into Robust EBITDA and Cash Flow Generation Through Low Capex EBITDA Margin and FCF Conversion Advantages Result in Ample Dividend Capacity ~$1.3bn Revenue Favourable geographical positioning and centralized commercial strategy Q3 2022 leveraging on unique distribu
Slide 13: Table of Contents
Table of Contents Highlights Q3 and 9M 2022 Market Outlook Appendix Financial Performance 13
Slide 14: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Supporting Strong Pricing Outlook For H2 2022 and Beyond as We Recover From a 5-year Downturn Bull Market Drivers Support Demand Driven Environment Prior cycle (last 5-6 years) Next cycle (starting in 2022)(2) CROP PRICES DRIVING HEALTH
Slide 15: Attractive Nitrogen Dynamics with Demand Expected to Exceed Capacity Additions
Attractive Nitrogen Dynamics with Demand Expected to Exceed Capacity Additions Ex-China urea capacity additions slow relative to 2015-19 Merchant ammonia market structurally tightening Mt Global ammonia net capacity additions and demand growth, ex-China ex-urea, Mt 22.9 Capacity additions Significan
Slide 16: Higher Costs for Marginal Producers Supportive of Nitrogen Prices
Higher Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2023F, $/MMBtu Cash Costs per ton of Ammonia 2017-2023F, $/t 80 TTF futures are ~$38MMBtu for 2023 and 70 3,000 Marginal costs have escalated on high end of cost c.$30/MMBtu in 2024/25 curve and not expect
Slide 17: Table of Contents
Table of Contents Highlights Q3 and 9M 2022 Market Outlook Appendix Financial Performance 17
Slide 18: Appendix: Q3 2022 Results
Fertiglobe ‘An ADNOC and OCI Company Appendix Q3 2022 Results
Slide 19: 30 September 2022 Net Debt
30 September 2022 Net Debt H2 2022 Dividend Guided at a Minimum of $700 million $ million 30-Sep-22 31-Dec-21 Cash and bank balances 1,782.8 899.1 Loans and borrowings - current 63.9 59.6 Loans and borrowings - non-current 1,075.2 1,326.1 Total borrowings 1,139.1 1,385.7 Net debt (cash) (643.7) 486.
Slide 20: Reconciliation of Adjusted EBITDA and Adjusted Net Profit
Reconciliation of Adjusted EBITDA and Adjusted Net Profit Reconciliation of reported operating profit to adjusted EBITDA $ million Q3 2022 Q3 2021 9M 2022 9M 2021 Adjustment in P&L Operating profit as reported 549.2 311.3 1,814.0 708.3 Depreciation and amortization 60.1 65.8 184.9 202.1 EBITDA 609.3
Slide 21: Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt
Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt $ million Q3 2022 Q3 2021 9M 2022 9M 2021 EBITDA 609.3 377.1 1,998.9 910.4 Working capital (50.2) (119.0) (36.6) (123.7) Maintenance capital expenditure (18.4) (16.0) (
Slide 22: Appendix: Market Outlook
Fertiglobe ‘An ADNOC and OCI Company Appendix Market Outlook
Slide 23: Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment
Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment Strong support for nitrogen prices to reset above mid-cycle levels, given low global crop inventories, strong farm economics, and higher marginal costs Urea and Ammonia Prices (Monthly Averages, 2011 – Q4 20221, $/t Demand-driven Env
Slide 24: Agricultural Fundamentals Support Robust Nitrogen Demand At Least Until 2024
Agricultural Fundamentals Support Robust Nitrogen Demand At Least Until 2024 Crop prices supported by stocks : use ratio at 10-year lows, Tight grain stocks for corn and wheat at further risk given dry weather requiring at least until 2024 to replenish in the Northern Hemisphere supportive of demand
Slide 25: High Farm Incomes Supportive Of Demand
High Farm Incomes Supportive Of Demand 1 Supportive farm incomes in 2022: Farm margins are attractive in grain exporting regions as input costs have been offset by higher Farm operating margins (revenue above operating costs), USD/ha crop prices, incentivising farmers to plant more US Brazil Brazil
Slide 26: Lower Chinese Exports And Higher Indian Imports Supportive Of Prices
Lower Chinese Exports And Higher Indian Imports Supportive Of Prices • Chinese market balances supported by: Chinese Exports Curtailed on Domestic Demand and Closures – Government measures to curb exports until at least H2 2023 and prioritise domestic supply including China urea exports, Mt mandator
Slide 27: Fertiglobe Attractively Positioned on Urea and Ammonia Cost Curves
Fertiglobe Attractively Positioned on Urea and Ammonia Cost Curves Benefit from attractively priced, long-term feedstock gas contracts and low conversion costs Long-term attractive gas supply agreements with EGPC in Egypt, Sonatrach in Algeria, and ADNOC in Abu Dhabi supporting advantageous cost p
Slide 28: Significant Incremental Ammonia Demand From New Clean Energy Applications
Significant Incremental Ammonia Demand From New Clean Energy Applications Clean Hydrogen is strongly positioned to lead the world’s energy transition, and ammonia is the key enabler Clean hydrogen use in energy applications will be a major contributor to emission reduction across industries where
Slide 29: Appendix: Fertiglobe Strategic Positioning
Appendix Fertiglobe: Strategic Positioning
Slide 30: Ammonia is versatile and has a diverse set of end applications
Ammonia is versatile and has a diverse set of end applications Ammonia: End-Use Applications Examples Ammonia is primarily utilized in fertilizers, but also supports a diverse array of industrial applications. Nitrogen (ammoniated) fertilizers need to be applied every year unlike P & K. 2021 Amm
Slide 31: Appendix: About Fertiglobe
Fertiglobe ‘An ADNOC and OCI Company Appendix About Fertiglobe
Slide 32: 4 World-Scale Assets Leveraging a Global Centralised Commercial Platform
4 World-Scale Assets Leveraging a Global Centralised Commercial Platform (1) Total Fertiglobe Capacity (mtpa) Gross ammonia 4.4 Urea 5.1 Net ammonia 1.5 DEF 0.5(3) UAE Egypt Algeria UAE Fertiglobe Distribution Fertil Egyptian Fertilizer Company Egypt Basic Industries Sorfert Distribution Business (1
Slide 33: Strategically Located Asset Base and Global Distribution Platform
Strategically Located Asset Base and Global Distribution Platform Diversified Production Footprint in Geographically Advantaged Positions Sorfert Fertil (51%) (100%) Egyptian Egypt Basic Fertilizer Industries Company Corporation (100%) (75%) Unique production platform in export-focused locations wit
Slide 34: Leading Nitrogen Fertilizer and Ammonia Exporter Globally
Leading Nitrogen Fertilizer and Ammonia Exporter Globally ~10% of Combined Ammonia and Urea Global Seaborne Exports Significant Scale Advantages Ammonia and Urea Combined Export Production Capacity(1) Mtpa 1 Large scale strategically located platform with ability to direct volumes to highest 6.7 net
Slide 35: High Quality Asset Base with 50% of Capacity Younger than 10 Years
High Quality Asset Base with 50% of Capacity Younger than 10 Years Young Asset Base Drives Output, Cost and GHG Emission Advantages Asset Base Age(1) vs. Industry Average(2) GHG Young Assets allow for: EBITDA FCF 50% Emissions Higher reliability and onstream time ✓ ✓ ✓ 41% Better gas conversion ✓ ✓
Slide 36: Fertiglobe Gas Contracts Overview
Fertiglobe Gas Contracts Overview Attractively Priced Fixed Gas Contracts Ensure Fertiglobe is Competitive Through the Nitrogen Cycle (1) Gas Supplier ADNOC GASCO(2) EGPC(2) Sonatrach Contract Start Date 2019 2005 - 2006 2008 2013 Contract End Date 2044 2030 - 2031 2028 2033 Annual Contract 56.0 33.
Slide 37: Profit Sharing Mechanisms – Sensitivity to Product Prices
Profit Sharing Mechanisms – Sensitivity to Product Prices Fertiglobe Has Profit Sharing Mechanisms that Provide the Egyptian and Algerian Governments with Greater Income Participation as Product Pricing Increases(1) Illustrative Impact of Product Prices on Reported EBITDA @ 2021A + Sensitized Pricin
Slide 38: Thank you
1 y | Thank you (33: > |