Slide 1: Fertiglobe Q4 2022 Investor Presentation
Fertiglobe Q4 2022 Investor Presentation February 2023
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 Q4 and FY 2022 Financial Market Outlook Appendix Performance & Updates 3
Slide 4: Safety First: Commitment to Zero Injuries
Safety First: Commitment to Zero Injuries 12-month rolling recordable incident rate to 31 December 2022 0.27 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 operati
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: 2022 Results Highlights
2022 Results Highlights • Robust 2022 Performance: 2022 revenues increased 52% to $5,028 million YoY, while adjusted EBITDA was up 59% to $2,473 million, and adjusted net profit increased 75% to $1,287 million. • Balance sheet and cash generation position Fertiglobe well to pursue growth and offer a
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 Q4 and FY 2022 Financial Market Outlook Appendix Performance & Updates 9
Slide 10: Q4 2022 and 2022 Results Summary
Q4 2022 and 2022 Results Summary Summary Key Financials1 and KPIs $ million unless otherwise stated Q4 2022 Q4 2021 %Δ 2022 2021 %Δ Own-produced volumes down 3% in 2022 vs. 2021 Revenue 1,053.5 1,184.0 (11%) 5,027.5 3,310.7 52% Gross Profit 432.6 626.2 (31%) 2,352.1 1,406.9 67% 5% lower own-produc
Slide 11: Q4 2022 and FY 2022 Results
Q4 2022 and FY 2022 Results Own-produced sales volumes (MT) Key Product Benchmark Prices, $/t Revenue ($m) Urea Egypt Ammonia Middle East 5.57 +52% 5.43 6.00 +25% +85% -31% +43% 1.29 1.23 5.00 4.00 -11% 3.00 5,028 0.99 4.29 0.95 4.20 2.00 895 990 1.23 1.27 868 3,311 756 696 616 529 535 0.24 0.33 1.0
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 ~$5.0bn Revenue Favourable geographical positioning and centralized commercial strategy 2022 leveraging on unique distributio
Slide 13: Fertiglobe Makes Trial DEF Shipments, Diversifying Product Offering
Fertiglobe Makes Trial DEF Shipments, Diversifying Product Offering • Diesel Exhaust Fuel (DEF), also known as AdBlue® in Europe, is a urea solution used to reduce NOx and particulate emissions from diesel combustion • DEF has demonstrated a ~5% improvement in fuel economy • Demand is supported by i
Slide 14: Green Hydrogen and Ammonia Project in Egypt
Green Hydrogen and Ammonia Project in Egypt Milestones Africa’s first integrated green hydrogen plant Project started commissioning of the first phase during COP27 in November 2022 Evaluating engineering and technology choices for the full-scale 100 MW plant: Aim to reach Final Investment Deci
Slide 15: Ta'ziz Low Carbon Ammonia project in the UAE
Ta’ziz Low Carbon Ammonia project in the UAE World-scale 1mpa low-carbon ammonia production capacity Milestones 2021: Announced world scale 1 million tons low-carbon ammonia facility in partnership with ADNOC and ADQ (Ta'ziz), GS Energy Corporation and Mitsui & Co., Ltd Signing of Shareholders’
Slide 16: Table of Contents
Table of Contents Highlights Q4 and FY 2022 Financial Market Outlook Appendix Performance & Updates 16
Slide 17: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Prior cycle (last 5-6 Next cycle (started in Market Drivers Support Demand Driven Environment years) 2022) 30% 26%26% HIGH CROP PRICES and AFFORDABILITY SUPPORT NITROGEN DEMAND corn stocks-to-use ratio 22/23 corn stocks-to-use ratio $3.
Slide 18: Tight Agricultural Fundamentals at least Until 2025
Tight Agricultural Fundamentals at least Until 2025 Crop prices supported by stocks : use ratio at 10 year lows Fertilizer affordability +33% since Jan-22, supporting demand recovery Crop price index, Jan 2006 = 100 Global grain and oilseed stocks:use ratio (ex-China), % CRU Affordability Index, Jan
Slide 19: Marginal Costs Supportive of Nitrogen Prices
Marginal Costs Supportive of Nitrogen Prices Global Feedstock Prices 2017-2023F, $/MMBtu Cash Costs per ton of Ammonia 2017-2023F, $/t 80 Global differentials between US, North 3,000 Africa and EU marginal costs remain wide 70 2,500 60 2,000 TTF futures are ~$18MMBtu for 2023/2024 Marginal costs dec
Slide 20: High Farm Profitability Supportive Of Nitrogen Demand Recovery in 2023
High Farm Profitability Supportive Of Nitrogen Demand Recovery in 2023 Farm operating margins (revenue above operating costs), USD/ha France US Corn US Soybeans Brazil Soybeans Brazil Corn Cereals Farm returns on corn higher than soybeans and incentive to plant more corn in the US and Brazil in 2022
Slide 21: Lower Chinese Exports And Robust Indian Imports
Lower Chinese Exports And Robust Indian Imports Chinese Exports Curtailed on Domestic Demand and Closures Indian Imports Robust Despite New Capacity Commissioning China urea exports, Mt India imports, Mt 13.6 13.8 10.5 10.5 9.7 9.0 9.0 8.2 +30% 6.9 7.9 ~8 Mt 7.7 7.7 5.5 7.5 5.3 - 4.6 4.7 7.1 7.0 4.1
Slide 22: Table of Contents
Table of Contents Highlights Q4 and FY 2022 Financial Market Outlook Appendix Performance & Updates 22
Slide 23: Appendix: Q4 2022 and 2022 Results
Appendix Q4 2022 and 2022 Results
Slide 24: 31 December 2022 Net Debt
31 December 2022 Net Debt H2 2022 Dividends Announced at $700 million $ million 31-Dec-22 31-Dec-21 Cash and bank balances 1,442.0 899.1 Loans and borrowings - current 89.6 59.6 Loans and borrowings - non-current 1,065.6 1,326.1 Total borrowings 1,155.2 1,385.7 Net debt (cash) (286.8) 486.6 Net debt
Slide 25: 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 Q4 2022 Q4 2021 2022 2021 Adjustment in P&L Operating profit as reported 371.4 596.3 2,185.4 1,304.6 Depreciation and amortization 81.4 64.9 266.3 267.0 EBITDA 452.8 661
Slide 26: 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 2022 Q4 2021 2022 2021 EBITDA 452.8 661.2 2,451.7 1,571.6 Working capital 55.8 61.6 19.2 (62.1) Maintenance capital expenditure (63.4) (48.6) (101.6) (77.5
Slide 27: 2022 Free Cash Flow and Net Debt Build-up
2022 Free Cash Flow and Net Debt Build-up Reconciliation of 2022 EBITDA to Free cash flow ($ million) & WHT Change in Net Debt from 31 Dec 2021 to 31 Dec 2022 ($ million) costs/income In FX 27
Slide 28: Appendix: Hydrogen and Clean Ammonia Potential
Appendix Hydrogen and Clean Ammonia Potential
Slide 29: 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 30: 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 31: 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 32: Appendix: Fertiglobe Strategic Positioning
Appendix Fertiglobe: Strategic Positioning
Slide 33: 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 1.6 DEF 0.5(3) UAE Egypt Algeria UAE Fertiglobe Distribution Fertil Egyptian Fertilizer Company Egypt Basic Industries Sorfert Distribution Business (1
Slide 34: 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 35: 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 36: 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 37: 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 38: Thank you
1 y | Thank you (33: > |