Slide 1: Fertiglobe Q3 2021 Results Presentation
Fertiglobe Q3 2021 Results Presentation 8 November 2021
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 13.8% including ~1,000kt Storage Capacity 50% 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 Q3 2021 Performance Underpinned by Robust Market Fundamentals
Fertiglobe Reports Strong Q3 2021 Performance Underpinned by Robust Market Fundamentals Revenues increased to $867 million (+175%) and adjusted EBITDA of $371 million (+257%) achieved in Q3 2021 Fertiglobe maintains robust capital structure with a net debt / EBITDA of 1.1x at the time of listing. St
Slide 6: Q3 2021 Financial Performance
Q3 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 30 September 2021 0.32 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 occupation
Slide 8: Fertiglobe Reports Strong Q3 2021 Underpinned by Robust Markets
Fertiglobe Reports Strong Q3 2021 Underpinned by Robust Markets Summary Key Financials1 and KPIs $ million unless otherwise stated Q3 2021 Q3 2020 %Δ 9M 2021 9M 2020 %Δ Own-produced volumes sold up in Q3 ‘21 vs. Q3 ‘20 Revenue 866.7 314.8 175% 2,126.7 1,052.3 102% Gross Profit 338.7 60.0 465% 780.7
Slide 9: Fertiglobe Reports Robust Earnings in Q3
Fertiglobe Reports Robust Earnings in Q3 Fertiglobe unique competitive Own-Produced Sales Volumes (Mt) Revenue ($m) +102% strengths +12% 1 Largest seaborne export platform of 4.3 3.9 1.0 nitrogen products globally 0.7 +175% +21% 2,127 1.2 2 Strategically located, high quality assets 1.4 3.3 0.3 3.1
Slide 10: 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 ~$2.6bn Revenue Favourable geography positioning and centralized commercial strategy LTM Sep-21 leveraging on unique distribu
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 2021 and Beyond as We Recover From a 5-year Downturn Bull Market Drivers Support Demand Driven Environment Prior cycle (last 5-6 years) 2021+ CROP PRICES SUPPORTIVE OF HIGHER AFFORDABILITY 30% 24% 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, Chinese corn imports expected higher tightening global corn markets Requiring at Least Two More Growing Seasons to Replenish Chinese corn imports, Mt Crop price index,
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 declining marginal urea exports
Supportive dynamics in China and India with declining marginal urea exports and stable Indian domestic production • Chinese market balances supported by: Chinese Exports Curtailed on Domestic Demand and Closures – Low-stocks to use ratio, high domestic crop China urea exports, Mt prices and governme
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 35 1200 TTF futures are ~$16/MMBtu for 2022 and Marginal costs have escalated on high 30 c.$10/MMBtu 2023/2024 end of cost curve and not expect
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 – Q4 2021(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 Announcement Q3 2021 FID Blue Abu-Dhabi Blue of Fertiglobe Production of Ammonia Production of Ammonia plant participation first pilot batch Project in Abu 70 ktpa of Blue start-up with a world-scale Blue of Blue Dhabi in Ammonia out of producti
Slide 25: Appendix
Fertiglobe ‘An ADNOC and OCI Company Appendix
Slide 26: Pro Forma 30 September 2021 Net Debt
Pro Forma 30 September 2021 Net Debt Robust capital structure and dividend outlook $ million 30 Sep ‘21 Recapitalization Pro forma 30 Sep ‘21 Cash and bank balances 627 (164) 463 Loans and borrowings - current 323 (86) 237 Loans and borrowings - non-current 248 1,091 1,339 Total borrowings 571 1,005
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 Q3 ‘21 Q3 ‘20 9M ‘21 9M ‘20 Adjustment in P&L Operating profit as reported 311.3 36.7 708.3 104.0 Depreciation and amortization 65.8 67.1 202.1 200.8 EBITDA 377.1 103.8
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 Q3 ‘21 Q3 ‘20 9M ‘21 9M ‘20 EBITDA 377.1 103.8 910.4 304.8 Working capital (119.0) (64.5) (123.7) 75.8 Maintenance capital expenditure (16.0) (19.1) (28.9) (3