Slide 1: Q1 2022 Results Presentation
Fertiglobe Q1 2022 Results Presentation 12 May 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: Fertiglobe at a Glance
Fertiglobe at a Glance(1) 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
Slide 4: A Strategic Partnership With Strong Shareholder Support
A Strategic Partnership With Strong Shareholder Support Partnership Geared Towards Growth and Value Creation, Supported by Shareholders with a Strong Track Record #3 global producer of nitrogen products #1 & #2 methanol producer in EU & US, respectively Leading integrated O&G company, entrusted to m
Slide 5: 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 6: Fertiglobe Reports Strong Q1 2022 Results Supported by Healthy Market Fundamentals
Fertiglobe Reports Strong Q1 2022 Results Supported by Healthy Market Fundamentals Q1 2022 revenues increased to $1,185 million (+118%), adjusted EBITDA grew 171% to $625 million, driven by higher selling prices, more than offsetting lower sales volumes due to a rephasing of some deliveries to Q2 20
Slide 7: Q1 2022 Financial Performance
Q1 2022 Financial Performance
Slide 8: Fertiglobe is Committed to Maintaining the Highest Safety Standards
Fertiglobe is Committed to Maintaining the Highest Safety Standards 12-month rolling recordable incident rate to 31 March 2022 0.23 incidents per 200,000 manhours Total TRIR (Total Recordable Injury Rate)(1) Target Zero Injuries at All Facilities Achieve leadership in safety and occupational stand
Slide 9: Fertiglobe Reports Strong Q1 2022 Underpinned by Robust Markets
Fertiglobe Reports Strong Q1 2022 Underpinned by Robust Markets Summary Key Financials1 and KPIs $ million unless otherwise stated Q1 2022 Q1 2021 %Δ Revenue 1,184.8 543.4 118% Gross Profit 587.8 189.2 211% Own-produced volumes in Q1 ‘22 vs. Q1 ’21 down 8% as Gross profit margin 49.6% 34.8% a result
Slide 10: Fertiglobe Reports Strong Earnings in Q1 2022
Fertiglobe Reports Strong Earnings in Q1 2022 Own-Produced Sales Volumes (Mt) Key Product Benchmark Prices, $/t Revenue ($m) +118% 1.50 Urea Egypt Ammonia Middle East 1.25 0.42 0.22 +129% +179% 1,185 1.09 1.03 841 897 543 367 322 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Fertig
Slide 11: 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 ~$1.2bn Revenue Favourable geographical positioning and centralized commercial strategy Q1 2022 leveraging on unique distribu
Slide 12: Nitrogen Markets
Fertiglobe ‘An ADNOC and OCI Company Nitrogen Markets
Slide 13: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Supporting Strong Pricing Outlook For 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) CROP PRICES SUPPORTIVE OF HIGHER
Slide 14: 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, higher marginal costs and recovering industrial demand Urea and Ammonia Prices (Monthly Averages, 2011 – Q2
Slide 15: Higher Costs for Marginal Producers Supportive of Nitrogen Prices
Higher Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2022F, $/MMBtu Cash Costs per ton of Ammonia 2017-2022F, $/t 45 1600 TTF futures are ~$30MMBtu for 2022 and 40 Marginal costs have escalated on high end of cost c.$23/MMBtu in 2023/2024 1400 curve and not
Slide 16: Fertiglobe Positioned in the 1st Quartile of Urea and Ammonia Cost Curves
Fertiglobe Positioned in the 1st Quartile of Urea and Ammonia Cost Curves Fertiglobe Benefits From Attractively Priced, Long-term Fixed Feedstock Gas Contracts(1) and Low Conversion Costs, Positioning It in the 1st Quartile of the Ammonia and Urea Cost Curves(2) Long-term attractive gas supply agr
Slide 17: Geopolitical Landscape Tightens Markets Further
Geopolitical Landscape Tightens Markets Further Recent Russia-Ukraine developments’ impacts on trade and commodity outlook Russian and Ukraine shares of global SANCTIONS: nitrogen and grain markets Fertilizer is exempt from some financial sanctions, but transactions are difficult, and new 1 Inelasti
Slide 18: Agricultural Fundamentals Supports Robust Nitrogen Demand Until 2024
Agricultural Fundamentals Supports Robust Nitrogen Demand Until 2024 Crop prices supported by stocks : use ratio at 10 year lows, Attractive fertilizer affordability as crop price increases outpace inputs requiring at least until 2024 to replenish Fertilizer affordability Index, January 2006=100 Cro
Slide 19: High Farm Incomes Supportive Of Demand
High Farm Incomes Supportive Of Demand 1 Supportive farm incomes in 2022: Farm operating margins (revenue above operating costs), USD/ha Farm margins are very attractive in key grain exporting regions as rising input costs have US Brazil Brazil France been offset by higher crop prices, US Corn Soybe
Slide 20: 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, Mt Merchant ammonia market structurally tightening Global ammonia net capacity additions and demand growth, ex-China ex-urea, Mt 22.9 17.7 Capacity additions Dema
Slide 21: Lower Chinese Exports And Higher Indian Imports Supportive Of Nitrogen Prices
Lower Chinese Exports And Higher Indian Imports Supportive Of Nitrogen Prices • Lower Chinese exports as a result of: Chinese Exports Curtailed on Domestic Demand and Closures – Government implemented measures to curb China urea exports, Mt exports and prioritise domestic supply until H2 2022. Ongoi
Slide 22: Hydrogen and Clean Ammonia Potential
Hydrogen and Clean Ammonia Potential
Slide 23: Ammonia is Well Positioned to Capture the Hydrogen Opportunity
Ammonia is Well Positioned to Capture the Hydrogen Opportunity With >40% of Grey Hydrogen Use Today, Ammonia is a Building Block in the Emerging H2 Economy Acting As Its Best Carrier Hydrogen Production Conversion to Ammonia Ammonia End Uses Conventional Uses Conventional Grey Fertilizer Natural Gas
Slide 24: Significant Incremental Ammonia Demand from New Clean Energy Applications
Significant Incremental Ammonia Demand in the Medium-Term from New Clean Energy Applications Clean Hydrogen is Strongly Positioned to Lead the World’s Energy Transition, and Ammonia is the Key Enabler for Such Clean Hydrogen Energy Clean hydrogen use in energy applications will be a major contribu
Slide 25: Marine Fuel Represents a Substantial Market Opportunity for Fertiglobe
Marine Fuel Represents a Substantial Market Opportunity for Fertiglobe Shipping Accounts for ~3% of GHG Emissions Worldwide Ammonia as a marine fuel is one of the most practical alternatives to Heavy Fuel Oil (HFO) - burns cleanest when used as an energy source vs. other fuels (>50% reduction in G
Slide 26: Fertiglobe is Very Well Positioned to Capture the Hydrogen Potential
Fertiglobe is Very Well Positioned to Capture the Hydrogen Potential Located in Proximity to Renewable Energy Sources and Shipping Hubs Asset Base with Existing Access to the Entire Hydrogen Supply Chain Optimal solar/wind resources Upstream 3rd party providers Least Most Merchant Blue CO2 sequestra
Slide 27: Fertiglobe Clean Ammonia Execution Roadmap
Fertiglobe Clean Ammonia Execution Roadmap ✓ ✓ ✓ Q2 2021 Q1 2022 Q3 2021 FID Blue Abu-Dhabi Blue Announcement Signed of Fertiglobe Production of collaboration Ammonia Ammonia plant participation first pilot batch agreement with Project in Abu start-up with a world-scale Blue of Blue Masdar and Dhabi
Slide 28: Appendix: Q1 2022 Results
Fertiglobe ‘An ADNOC and OCI Company Appendix Q1 2022 Results
Slide 29: March 2022 Net Debt
31 March 2022 Net Debt H1 2022 Dividend Expected To Be At Least $700 million $ million 31-Mar-22 31-Dec-21 Cash and bank balances 1,339.5 899.1 Loans and borrowings - current 132.9 59.6 Loans and borrowings - non-current 1,204.2 1,326.1 Total borrowings 1,337.1 1385.7 Net debt (cash) (2.4) 486.6 Net
Slide 30: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income Reconciliation of reported operating income to adjusted EBITDA $ million Q1‘22 Q1 ‘21 Adjustment in P&L Operating profit as reported 557.6 167 Depreciation and amortization 62.0 63.8 EBITDA 619.6 230.8 APM adjustments for: Movement in provisi
Slide 31: 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 Q1‘22 Q1 ‘21 EBITDA 619.6 230.8 Working capital (79.4) (59.2) Maintenance capital expenditure (6.8) (7.5) Tax paid (56.4) (15.7) Net interest paid (11.7) (8.8
Slide 32: Appendix: About Fertiglobe
Fertiglobe ‘An ADNOC and OCI Company Appendix About Fertiglobe
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: 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 35: Global In-House Commercial Capabilities in Ammonia & Urea
Global In-House Commercial Capabilities in Ammonia & Urea Strategy Focused on Selling Downstream to Customers and Limiting Role for Traders/Intermediaries, Leading to Structurally Higher Net-backs GCC Baltic Black Sea Producer Producer Producer No import duties into Europe/South America ✓ 10% global
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 Volume 5
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: > |