Sabic Agri-nutrients Co. · TADAWUL:2020
Sabic Agri-nutrients — Investor Day (November 2022)
27 slides from Sabic Agri-nutrients's investor day presentation, Nov 1, 2022
Slide 1: SABIC Agri-Nutrients Investor Day
SABIC AGRI-NUTRIENTS INVESTOR DAY 01 NOV 2022
Slide 2: EHSS
EHSS 2
Slide 3: EHSS and Cyber Security Compliance
Classification: General Business Use EHSS AND CYBER SECURITY COMPLIANCE 1.26 SHER CYBER SECURITY 0.47 0.32 0.22 0.09 2018 2019 2020 2021 YTD 2022 SHER The plotted graph represents the number of all safety incidents weighted by severity per every 200,000 man-hours worked. 3
Slide 4: Investment Thesis
INVESTMENT THESIS 4
Slide 5: Investment Thesis
Classification: General Business Use INVESTMENT THESIS Growth Strategy Sustainability and Innovation • Growth oriented strategy targeting • Strong focus on EHSS goals and clear leadership in Nitrogen roadmap for Carbon neutrality • Foster the development of low carbon • Increased Market share in hig
Slide 6: SABIC Agri Nutrients Strategy
SABIC AGRI NUTRIENTS STRATEGY 6
Slide 7: SABIC Agri Nutrients Strategy
Classification: General Business Use SABIC AGRI NUTRIENTS STRATEGY COST LEADERSHIP GROWTH INNOVATION PEOPLE ESG Target first quartile Expand geographically Focus on value added Keep Safety as the highest Establish clear Roadmap reliability and costs with diversified product products through priority
Slide 8: Transformation
TRANSFORMATION 8
Slide 9: SABIC Agri-Nutrients: History and Development
Classification: General Business Use SABIC AGRI-NUTRIENTS: HISTORY AND DEVELOPMENT Evolution of SABIC Agri-Nutrients over Last 60 years (Growth & Position) MMT Global 2022 Growth SAFCO IV ETG JV – SAFCO III Ammonia/Urea Dist. SAFCO II Ammonia/Urea Africa SAFCO I Al Baroni IBB Plan IBB PK Ammonia/Ure
Slide 10: SABIC Agri-Nutrients - Transformation
Classification: General Business Use SABIC AGRI-NUTRIENTS - TRANSFORMATION How did we TAKAMOL FUSION TRANS-FUSION Aspiration start..? 2015 2018 2019 2021 2022 Integration project for all Agri- Acquisition project to merge all New Operating Model for SABIC Nutrients Affiliates (SAFCO / IBB & SABIC Ag
Slide 11: Production – Our Major Manufacturing Capabilities Milestones
Classification: General Business Use PRODUCTION – OUR MAJOR MANUFACTURING CAPABILITIES MILESTONES National champion and global leader in Agri-Nutrient industry 8,439 8,140 7,537 Over the past years, our focus was to (KMT) Secure competitive basic nutrients and maintain a strong Cost 5,147 L eaders
Slide 12: Business Profile
Classification: General Business Use BUSINESS PROFILE 7 MMT 9 MMT Europe Greater China Sales Volume Capacity Asia Volume Americas Middle East & Africa +200 145 6 Customers Routes Oceana 300+ Patents North & South Africa MENA India region South East region region Asia region America Global Distributi
Slide 13: Market Fundamentals
MARKET FUNDAMENTALS 13
Slide 14: We Are Living the Largest Food Crisis in a Decade
Classification: General Business Use WE ARE LIVING THE LARGEST FOOD CRISIS IN A DECADE FAO Food Price Index Global Stocks-to-Use Ratio of Major Grains 160 150 Soybean Wheat 40% 40% 140 130 38% 120 35% 110 36% 100 30% 90 34% 80 25% 70 32% 60 20% 30% 50 2021-2022 2018-2019 2020-2021 2019-2020 2017-201
Slide 15: Developing Solutions to Address Global Agriculture Challenges
Classification: General Business Use SABIC AGRI-NUTRIENTS IS DEVELOPING SOLUTIONS TO ADDRESS GLOBAL AGRI-CULTURE CHALLENGES Agri-Nutrients / Agriculture Industry Megatrends Carbon Food Security / Self- Environmental Farming Efficiency Neutrality Sufficiency Impact & Smart Farming Reduce Emissions an
Slide 16: Current Agri-Nutrients Prices and Growth Outlook
Classification: General Business Use CURRENT AGRI-NUTRIENTS PRICES AND GROWTH OUTLOOK AN Commodity prices S&D Outlook 2027 1100 300 2.0% CAGR = 1.70% CAGR = 1.60% 250 900 24 4 1.5% 233 227 200 21 9 207 700 1 89 191 1 74 CAGR = 0.90% 150 1.0% CAGR = 0.70% 500 100 0.5% 300 50 100 0 0.0% 2018 2019 2020
Slide 17: Innovation, Sustainability & Carbon Neutrality
INNOVATION, SUSTAINABILITY & CARBON NEUTRALITY 17
Slide 18: Devoted to Science: Our Technology Focus Areas
Classification: General Business Use DEVOTED TO SCIENCE: INGENUITY DRIVEN BY TECHNOLOGY AND INNOVATION OUR TECHNOLOGY FOCUS AREAS 01 02 03 04 Capability – Plant & Product Disruptive Digitalization Sustainability Differentiation Technologies 18 18
Slide 19: SABIC Agri Nutrients Sustainability Efforts
Classification: General Business Use SABIC AGRI NUTRIENTS SUSTAINABILITY EFFORTS DECARBONIZATION UPDATE CARBON DIOXIDE RECOVERY PROJECT (SAFCO-V) SABIC Agri-Nutrients has significantly reduced CO2 emission by converting it to Urea since 2017-18 2010* 2019* 2022 Gre e n House Gas Reduction (%) 4.9 mM
Slide 20: Sustainability Snapshot
Classification: General Business Use SUSTAINABILITY SNAPSHOT GHG Intensity ENERGY Intensity 27.78% 26 % Reduction from Reduction from 2010 Baseline 2010 Baseline 2014 2011 2013 2017 2019 2010 2012 2018 2015 2016 2021 2020 2022 2017 2012 2013 2015 2019 2010 2011 2014 2016 2018 2022 2020 2021 WATER In
Slide 21: SABIC Agri-Nutrients Specialty Products Portfolio
Classification: General Business Use SABIC AGRI-NUTRIENTS SPECIALTY PRODUCTS PORTFOLIO 1 2 3 Urea Plus Products Biodegradable Controlled Release Bio-Enhanced Fertilizer (Differentiated & Specialty Products) Fertilizer Enhancing Urea Combining Bio & Chem Designing Nutrients Release Lowering loss of n
Slide 22: Next Gen. Fertilizers: The Miracle Microbes
Classification: General Business Use NEXT GEN. FERTILIZERS : THE MIRACLE MICROBES THAT COULD FIX PLANET PREPARING FOR FUTURE – Developing Cutting-Edge Technology MINERAL FERTILIZER LIVE BACTERIA THE NEXT BIG THING IS REALLY SMALL! 22
Slide 23: Financial Performance
FINANCIAL PERFORMANCE 23
Slide 24: Capital Allocation
Classification: General Business Use CAPITAL ALLOCATION VALUE CREATION THROUGH BALANCED, DISCIPLINED AND CAREFULLY REVIEWED & PLANNED CAPITAL ALLOCATION • Zero EHSS incidents in 2022 To Finance Operating Activities to Achieve Safe & • High EHSS & Cybersecurity Maturity Reliable Operations • All oper
Slide 25: Strong Earnings and Cash Flow
Classification: General Business Use STRONG EARNINGS AND CASH FLOW EBITDA Earning Per Share (EPS) Free Cash Flow (FCF) US$ Million US$ per share US$ Million 4.4 2,218 2,464 1,836 2.9 1,185 522 496 0.8 2020 2021 Sep 2022 2020 2021 Sep 2022 2020 2021 Sep 2022 Generated exceptional earnings and cash fl
Slide 26: Competitive Cost Structure, Efficient Capital Employment
Classification: General Business Use COMPETITIVE COST STRUCTURE, EFFICIENT CAPITAL EMPLOYMENT Continuous upward trend of Return on Capital 72% Employed (ROCE) post COVID impact. 63% Historically stable, high EBITDA margin. 63% Powered by strong portfolio of products 60% 59% produced in reliable
Slide 27: Thank You
THANK YOU