Slide 1: Fertiglobe Q4 2021 Results Presentation
Fertiglobe Q4 2021 Results Presentation 15 February 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% 13.8% including ~1,000kt Storage Capacity 36.2% 6.6mt Se
Slide 4: 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 5: Fertiglobe Reports Strong Q4 2021 Results Supported by Healthy Market Fundamentals
Fertiglobe Reports Strong Q4 2021 Results Supported by Healthy Market Fundamentals Q4 2021 revenues increased to $1,184 million (+138%), while adjusted EBITDA grew 347% to $648 million, driven by higher selling prices, more than offsetting lower volumes due to planned turnarounds. Adjusted net incom
Slide 6: Q4 2021 Financial Performance
Q4 2021 Financial Performance
Slide 7: 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 December 2021 0.28 incidents per 200,000 manhours Total TRIR (Total Recordable Injury Rate)(1) Target Zero Injuries at All Facilities 1.5 ▪ Achieve leadership in safety and occupationa
Slide 8: Fertiglobe Reports Strong Q4 2021 Underpinned by Robust Markets
Fertiglobe Reports Strong Q4 2021 Underpinned by Robust Markets Summary Key Financials1 and KPIs Own-produced volumes sold down in Q4 ‘21 vs. Q4 ‘20 $ million unless otherwise stated Q4 2021 Q4 2020 %Δ 2021 2020 %Δ Revenue 1,184.0 498.5 138% 3,310.7 1,550.8 113% Gross Profit 626.2 101.6 516% 1,406.9
Slide 9: Fertiglobe Reports Strong Earnings in Q4 2021 and Full Year
Fertiglobe Reports Strong Earnings in Q4 2021 and Full Year Own-Produced Sales Volumes (Mt) Key Product Benchmark Prices, $/t Revenue ($m) +113% 5.5 5.6 Urea Egypt Ammonia Black Sea 0.9 1.3 +239% +304% +113% +172% +138% 3,311 1.6 4.6 4.3 0.1 1.2 895 852 0.2 1,551 529 555 1,184 1.4 1.0 264 249 499 21
Slide 10: Strong Revenue Profile Translating Into Robust EBITDA and Cash Flow Generation
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 ~$3.3bn Revenue Favourable geographical positioning and centralized commercial strategy LTM Dec-21 leveraging on unique distr
Slide 11: Nitrogen Markets
Fertiglobe ‘An ADNOC and OCI Company Nitrogen Markets
Slide 12: 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) 2022+ CROP PRICES SUPPORTIVE OF HIGHER AFFORDABILITY 30% 26% C
Slide 13: Agricultural Fundamentals Support Robust Demand At Least Until H2 2023
Agricultural Fundamentals Support Robust Demand At Least Until H2 2023 Crop Prices Supported by “Stocks : Use” Ratio at 7 Year Lows, Spot and Futures Crop prices supportive of strong fertilizer demand Requiring at Least Two More Growing Seasons to Replenish Corn and wheat prices, $ / bushel Crop pri
Slide 14: Markets Tightening With Demand Expected To Exceed Capacity Additions
Markets Tightening With Demand Expected To Exceed Capacity Additions Ex-China Urea Capacity Additions Delayed Relative to 2015-19, with Merchant Ammonia Market Expected to Significantly Tighten Utilization Rates Slow to Ramp Up Global ammonia and net capacity additions ex-China ex-urea, Mt ✓ Demand
Slide 15: Supportive Dynamics In China And India With Chinese Urea Export Curtailments
Supportive Dynamics In China And India With Chinese Urea Export Curtailments To At Least H2 2022 And Robust Indian Import Demand • Chinese market balances supported by: Chinese Exports Curtailed on Domestic Demand and Closures – The government has implemented measures to China urea exports, Mt curb
Slide 16: Higher feedstock costs for marginal producers supportive of prices
Higher feedstock costs for marginal producers supportive of prices Global Feedstock Prices 2017-2022F, $/MMBtu Cash Costs per ton of Ammonia 2017-2022F, $/t 45 TTF futures are ~$26/MMBtu for 2022 and Marginal costs have escalated on high 40 1400 c.$15/MMBtu in 2023/2024 end of cost curve and not exp
Slide 17: Structural Shift Into A Demand-Driven Pricing Environment
Structural Shift Into A Demand-Driven Pricing Environment Strong Support for Current Nitrogen Price Levels from Low Global Crop Inventories, Strong Farm Economics, Continued Strong Fertilizer Demand and Recovering Industrial Demand Urea and Ammonia Prices (Monthly Averages, 2011 – Q1 2022(1)), $/t D
Slide 18: Hydrogen and Clean Ammonia Potential
Hydrogen and Clean Ammonia Potential
Slide 19: 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 20: 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 21: Ammonia Expected to be the Cheapest Zero-carbon Fuel for Container Ships in 2030
Ammonia Expected to be the Cheapest Zero-carbon Fuel for Container Ships in 2030(1) $m p.a. for Container Ship(2,3) and Bunkering Location in the Middle East, 2030 Conventional Fuel Grey / Blue Ammonia Fuel(4) Zero-carbon Shipping Fuel ▪ From 2030, green shipping ~83 ~214 ~416 will be at cost parity
Slide 22: 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 23: Fertiglobe is Plug-and-Play for Low Carbon Ammonia
Fertiglobe is Plug-and-Play for Low Carbon Ammonia Huge Competitive Advantage in Low Carbon Ammonia Relative to Greenfields Fertiglobe competitive advantage, accessed through low CAPEX Blue Ammonia Merchant CO2 EOR(1) Ammonia position sequestration + network Ammonia Ammonia storage Ammonia import On
Slide 24: Fertiglobe Clean Ammonia Execution Roadmap
Fertiglobe Clean Ammonia Execution Roadmap ✓ ✓ ✓ Q2 2021 Q1 2022 Q3 2021 FID Blue Abu-Dhabi Blue Announcement Signed Production of of Fertiglobe Production of collaboration Ammonia Ammonia plant 70 ktpa of Blue participation first pilot batch agreement with Project in Abu start-up with a Ammonia wor
Slide 25: Appendix
Fertiglobe ‘An ADNOC and OCI Company Appendix
Slide 26: December 2021 Net Debt
31 December 2021 Net Debt H1 2022 Dividend Expected to Substantially Exceed $200 million Minimum Guidance $ million 31 Dec ‘20 PF 30 Sep ‘21 31 Dec ‘21 Cash and bank balances 535 463 899 Loans and borrowings - current 126 237 60 Loans and borrowings - non-current 545 1,339 1,326 Total borrowings 671
Slide 27: 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 Q4 ‘21 Q4 ‘20 2021 2020 Adjustment in P&L Operating profit as reported 596.3 77.6 1,304.6 181.6 Depreciation and amortization 64.9 67.2 267.0 268.0 EBITDA 661.2 144.8 1,
Slide 28: 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 Q4 ‘21 Q4 ‘20 2021 2020 EBITDA 661.2 144.8 1,571.6 449.6 Working capital 61.6 54.6 (62.1) 130.4 Maintenance capital expenditure (48.6) (20.7) (77.5) (53.5) Ta
Slide 29: Thank you
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