Fertiglobe Plc · ADX:FERTIGLB
Fertiglobe — Q3 2024 Earnings Presentation
34 slides from Fertiglobe's earnings presentation, November 2024
Slide 1: Fertiglobe Q3 2024 Results
Fertiglobe Q3 2024 Results November 2024 Investor Presentation
Slide 2: Table of Contents
Table of Contents 0101 Highlights Fertiglobe’s 05 Next Chapter Q3 Financial Performance & Frequently Asked 02 06 Updates Questions (FAQ) Market Outlook & Low- 03 Carbon Ammonia Potential 07 04 Appendix 2
Slide 3: Safety First
Safety First Commitment to Zero Injuries 12-month rolling recordable incident rate to 30 September 2024 was 0.05 incidents per 200,000 manhours Total TRIR (Total Recordable Injury Rate)(1) Target zero injuries across all facilities 1.0 • Achieve leadership in safety and occupational standards across
Slide 4: Executive Summary
Executive Summary • Fertiglobe becomes a global powerhouse and ADNOC's vehicle for low-carbon ammonia, with the consolidation of its existing and future projects in the space 1, including: • ADNOC’s equity stakes in the two 1 mpta low-carbon ammonia projects in the UAE • ADNOC’s 35% equity stake in
Slide 5: Executive Summary
Executive Summary Financial results • Q3 2024 revenues and adjusted EBITDA were of $496 million and $176 million, respectively, while 9M 2024 revenues and adjusted EBITDA were $1,543 million and $496 million. • Q3 2024 and 9M 2024 reported net profits attributable to shareholders were impacted by a
Slide 6: Fertiglobe at a Glance
Fertiglobe at a Glance 4 world-class, young & Industry-leading margins and strategically located production Leading Nitrogen Fertilizer Exporter Globally facilities cash flow generation and Unique Ammonia Platform Q3 2024 9M 2024 Revenue $496m $1,543m Excellent Freight and Transport Advantaged, Duty
Slide 7: Fertiglobe and ADNOC
• World class nitrogen platform • Low-cost positioning on the global cost curve • Strong financial and capital discipline • Existing customer base spanning fertilizers and industrials • Strategic access to key import markets incl. Europe & Asia Fertiglobe • Early mover in low-carbon ammonia Fertiglo
Slide 8: Fertiglobe's vision and strategy
• Creating ammonia platform via value-accretive projects • Leveraging ADNOC’s network for CCS1, energy customer Disciplined engagement, infrastructure and ammonia consolidation growth Fertiglobe’s vision . • Existing FID’d 1mtpa low-carbon ammonia project underway in the strategy UAE with attractive
Slide 9: Fertiglobe is ADNOC's vehicle for low-carbon ammonia
Fertiglobe is ADNOC’s vehicle for low-carbon ammonia Fertiglobe to consolidate ADNOC’s existing and future investments in low-carbon ammonia ADNOC to transfer its stakes in low-carbon ammonia projects Significant opportunity to leverage the ADNOC to Fertiglobe at cost when ready for start-up, leadin
Slide 10: Creating a global powerhouse in low-carbon ammonia by 2029
Creating a global powerhouse in low-carbon ammonia by 2029 … by adding 2.4mt of net capacity upon respective project start-up Net ammonia and urea production capacity, 2024 (1) Expanded footprint to provide unparalleled global platform and reach Fertiglobe’s total net ammonia and urea 9.0 capacity,
Slide 11: Key investment highlights
Fertiglobe x ADNOC Key investment highlights 01 03 05 Leading global exporter of Energy transition opens new Superior margins and cash flows nitrogen fertilizers and applications, complementing bolstered by ongoing future fuels strong nitrogen markets optimization initiatives 02 04 06 Uniquely posit
Slide 12: Table of Contents
Table of Contents Fertiglobe’s 01 Highlights 05 Next Chapter Q3 Financial Performance & Frequently Asked 02 06 Updates Questions (FAQ) 03 Market outlook 07 04 Appendix 12
Slide 13: Q3 & 9M 2024 results summary
Q3 & 9M 2024 results summary $ million unless otherwise stated Q3 2024 Q3 2023 % Δ 9M 2024 9M 2023 %Δ Summary Revenue 495.6 525.1 (6%) 1,543.2 1,770.3 (13%) Gross profit 79.3 153.8 (48%) 376.0 597.3 (37%) • Driven by unplanned shutdowns and turnarounds, Fertiglobe’s Q3 2024 own- Gross profit margin
Slide 14: Q3 & 9M 2024 Free Cash Flow Build-Up
Q3 & 9M 2024 Free Cash Flow Build-Up Reconciliation of Q3 2024 EBITDA to Free cash flow ($ million) Reconciliation of 9M 2024 EBITDA to Free cash flow ($ million) 14
Slide 15: Q3 2024 financial summary
Q3 2024 financial summary Own-produced sales volumes (MT) Key Product Benchmark Prices, $/t Revenue ($m) Adjusted for impact of non- Urea Egypt Ammonia Middle East 1.47 controllable external events -6% 1.36 450 0.32 400 -15% +15% 0.31 350 300 250 525 496 200 422 1.14 1.06 357 357 0.99 150 310 0.95 1
Slide 16: Table of Contents
Table of Contents Fertiglobe’s 01 Highlights 05 Next Chapter Q3 Financial Performance & Frequently Asked 02 06 Updates Questions (FAQ) Market Outlook & Low- 03 Carbon Ammonia Potential 07 04 Appendix 16
Slide 17: Tight nitrogen markets support recent price increases
Tight nitrogen markets support recent price increases Ammonia prices hit ~$600+/t CFR Europe in Q3 amid supply shortages; tighter urea market fundamentals caused by Chinese export restrictions and a flurry of Indian tenders Resilient prices backed by tighter N demand fundamentals Healthy prospects f
Slide 18: Strength in nitrogen markets underpinned by robust upstream & downstream drivers
Strength in nitrogen markets underpinned by robust upstream & downstream drivers Crops and Gas Urea Decarbonization affordability fundamentals Support Fundamental shift towards driver Robust crop prices and Gas prices at a higher structural Tighter nitrogen market emissions reduction, with fertilize
Slide 19: Agricultural fundamentals remain positive
Agricultural fundamentals remain positive Improved crop prices and affordability stocks to use ratios support nitrogen demand Current global grains stock-to-use ratios of 16.9% are below the 10-year average (18.8%), supporting farm income, increased acreage to rebuild stocks and therefore nitrogen d
Slide 20: Regional market dynamics support urea pricing sentiment
Regional market dynamics support urea pricing sentiment Global urea trade expected to grow by 0.5m tons in 2024, markets tightened by lack of Chinese exports, strong imports from Brazil and solid Indian buying supporting tender activity China Brazil India 2024 - record imports 16 7.8 7.8 12 8 Averag
Slide 21: Strong nitrogen outlook underpinned by robust supply & demand fundamentals
Strong nitrogen outlook underpinned by robust supply & demand fundamentals Slower pace of new urea capacity additions with good visibility given Merchant grey ammonia market will be underpinned by robust demand ~5-year project lead time coupled with robust nitrogen demand growth from existing uses,
Slide 22: Highly attractive global ammonia industry trends
Highly attractive global ammonia industry trends Multiple pathways creating new opportunities in ammonia for energy diversification Significant incremental low-carbon ammonia 1. S u p p o r t i v e r e g u l a t o r y f r a m e w o r k demand expected to outstrip supply additions Development of ETS
Slide 23: Demand from low-carbon applications materializing rapidly in the near-term
Demand from low-carbon applications materializing rapidly in the near-term Developing regulations in Europe and Asia accelerate low-carbon ammonia demand growth Low-carbon ammonia demand to more than Demand drivers: double current traded market by early 2030’s Maritime fuels m tons ammonia L o ng t
Slide 24: Strategically located to serve emerging ammonia demand as a marine fuel
Strategically located to serve emerging ammonia demand as a marine fuel • Direct access to key low-carbon ammonia markets in Europe and Asia • Ideally located near the world’s largest bunkering hubs on the busiest shipping lanes • Ammonia vessel adoption is in motion with dual fuel ships under order
Slide 25: Interest in low emission ammonia projects is significant, but project bottlenecks prevail
Interest in low emission ammonia projects is significant, but project bottlenecks prevail Electrolyzer technology Costly permitting High construction costs Supply chain lead time Renewable hydrogen technology needs proven commercial viability to scale, to 3+ years for CCS permitting and Long lead ti
Slide 26: Fertiglobe's asset base enjoys existing access to the entire hydrogen supply chain
Fertiglobe’s asset base enjoys existing access to the entire hydrogen supply chain Upstream 3rd party providers 1. Fertiglobe is plug-and-play for low-carbon ammonia development Low-carbon CO2 Ammonia sequestration 2. Unique global expertise in production, sales and network Merchant Ammonia handling
Slide 27: Low-carbon ammonia project in the UAE
Low-carbon ammonia project in the Construction contract awarded to Tecnimont S .p.A. in UAE 2024, with operations scheduled to commence in 2027 Final Investment Decision (FID) taken in 2024 Fertiglobe’s partners include TA’ZIZ and a consortium of local World-scale 1 mtpa low-carbon ammonia productio
Slide 28: Renewable hydrogen and ammonia project in Egypt
2 8 Renewable hydrogen and ammonia Commissioning of first phase during COP 27 in 2022 and completed shipment of first ISCC Plus -certified renewable project in Egypt ammonia in 2023 Renewable hydrogen will serve as feedstock for production of Securing first ever renewable ammonia offtake worth ~74kt
Slide 29: Table of Contents
Table of Contents Fertiglobe’s 01 Highlights 05 Next Chapter Q3 Financial Performance & Frequently Asked 02 06 Updates Questions (FAQ) Market Outlook & Low- 03 Carbon Ammonia Potential 07 04 Appendix 29
Slide 30: September 2024 Leverage Position
September 2024 Leverage Position Fertiglobe Ends September 2024 with Net Debt of $957 million $ million 30-Sep-24 30-Jun-24 Cash and bank balances 668.7 726.2 Loans and borrowings - current 182.8 149.6 Loans and borrowings - non-current 1,442.8 1,457.2 Total borrowings 1,625.6 1,606.8 Net debt 956.9
Slide 31: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Reconciliation of reported operating profit to adjusted EBITDA $ million Q3 2024 Q3 2023 9M 2024 9M 2023 Adjustment in P&L Operating profit as reported 38.1 119.3 269.3 495.5 Depreciation and amortization 70.7 72.5 209.0 208.8 EBITDA 108.8 191.8 478.3 704.3 APM adju
Slide 32: Reconciliation of Adjusted Net Profit
Reconciliation of Adjusted Net Profit Reconciliation of reported net profit to adjusted net profit $ million Q3 2024 Q3 2023 9M 2024 9M 2023 Adjustment in P&L Reported net (loss) profit attributable to shareholders (10.4) 39.5 120.2 254.4 Adjustments for: Adjustments at EBITDA level 66.7 7.2 17.7 10
Slide 33: 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 2024 Q3 2023 9M 2024 9M 2023 EBITDA 108.8 191.8 478.3 704.3 Working capital 77.2 5.1 80.3 (1.7) Maintenance capital expenditure (36.9) (28.8) (71.7) (70.5)
Slide 34: Thank You
Thank You fertiglobe.com fertiglobe.com 34