Fertiglobe Plc · ADX:FERTIGLB
Fertiglobe — Investor Presentation (May 2022)
32 slides from Fertiglobe's investor presentation, May 2022
Slide 1: Fertiglobe Investor Presentation April/May 2022
Fertiglobe Investor Presentation April/May 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 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 4: 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 50.0% 36.2% 13.8% including ~1,000kt Storage Capacity 6.7mt
Slide 5: A Strategic Partnership With Strong Shareholder Support
A Strategic Partnership With Strong Shareholder Support Partnership Geared Towards Growth and Value Creation, Supported by Shareholders with a Strong Track Record #3 global producer of nitrogen products #1 & #2 methanol producer in EU & US, respectively Leading integrated O&G company, entrusted to m
Slide 6: 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 7: 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 8: Nitrogen Markets
Fertiglobe ‘An ADNOC and OCI Company Nitrogen Markets
Slide 9: 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) Next cycle (starting in 2022) CROP PRICES SUPPORTIVE OF HIGHER
Slide 10: Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment
Nitrogen Fertilizer Pricing Supported by Demand-Driven Environment Strong support for nitrogen prices to reset above mid-cycle levels, given low global crop inventories, strong farm economics, higher marginal costs and recovering industrial demand Urea and Ammonia Prices (Monthly Averages, 2011 – Q1
Slide 11: Higher Costs for Marginal Producers Supportive of Nitrogen Prices
3 Higher Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2022F, $/MMBtu Cash Costs per ton of Ammonia 2017-2022F, $/t 45 1600 TTF futures are ~$31MMBtu for 2022 and 40 Marginal costs have escalated on high end of cost c.$23/MMBtu in 2023/2024 1400 curve and no
Slide 12: Fertiglobe is Well-Positioned to Provide Essential Goods in Changing Geopolitical Landscape
Fertiglobe is Well-Positioned to Provide Essential Goods in an Ever-Changing Geopolitical Landscape Recent Russia-Ukraine developments’ impacts on trade and commodity outlook Russian and Ukraine shares of global SANCTIONS: nitrogen and grain markets Fertilizer is exempt from some financial sanctions
Slide 13: Agricultural Fundamentals Support Robust Nitrogen Demand at Least Until 2024
Agricultural Fundamentals Support Robust Nitrogen Demand at Least Until 2024 Crop prices supported by stocks : use ratio at 10 year lows, requiring at Attractive fertilizer affordability as crop price increases outpace inputs least until 2024 to replenish Fertilizer affordability Index, January 2006
Slide 14: Attractive Nitrogen Dynamics with Demand Expected to Exceed Capacity Additions
Attractive Nitrogen Dynamics with Demand Expected to Exceed Capacity Additions Ex-China urea capacity additions slow relative to 2015-19, Mt Merchant ammonia market structurally tightening Global ammonia net capacity additions and demand growth, ex-China ex-urea, Mt 22.9 17.7 Capacity additions Dema
Slide 15: Supportive Dynamics In China And India
Supportive Dynamics In China And India With Chinese Urea Export Curtailments in 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 exports and
Slide 16: Hydrogen and Clean Ammonia Potential
Hydrogen and Clean Ammonia Potential
Slide 17: 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 18: 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 19: 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 20: 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 21: Fertiglobe Clean Ammonia Execution Roadmap
Fertiglobe Clean Ammonia Execution Roadmap ✓ ✓ ✓ Q2 2021 Q1 2022 Q3 2021 FID Blue Abu-Dhabi Blue Announcement Signed of Fertiglobe Production of collaboration Ammonia Ammonia plant participation first pilot batch agreement with Project in Abu start-up with a world-scale Blue of Blue Masdar and Dhabi
Slide 22: Appendix: FY & Q4 2021 Financial Performance
Appendix FY & Q4 2021 Financial Performance
Slide 23: Strong Q4 2021 Results Supported by Healthy Market Fundamentals
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 income increased to $376
Slide 24: Strong Earnings in Q4 2021 and Full Year
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 1.0 264 249 499 211 204 Q4 2020 Q4 20
Slide 25: 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 26: Appendix: About Fertiglobe
Fertiglobe ‘An ADNOC and OCI Company Appendix About Fertiglobe
Slide 27: 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 28: 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 1.5 DEF 0.5(3) UAE Egypt Algeria UAE Fertiglobe Distribution Fertil Egyptian Fertilizer Company Egypt Basic Industries Sorfert Distribution Business (1
Slide 29: Global In-House Commercial Capabilities in Ammonia & Urea
Global In-House Commercial Capabilities in Ammonia & Urea Strategy Focused on Selling Downstream to Customers and Limiting Role for Traders/Intermediaries, Leading to Structurally Higher Net-backs GCC Baltic Black Sea Producer Producer Producer No import duties into Europe/South America ✓ 10% global
Slide 30: 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 31: Profit Sharing Mechanisms – Sensitivity to Product Prices
Profit Sharing Mechanisms – Sensitivity to Product Prices Fertiglobe Has Profit Sharing Mechanisms that Provide the Egyptian and Algerian Governments with Greater Income Participation as Product Pricing Increases(1) Illustrative Impact of Product Prices on Reported EBITDA @ 2021A + Sensitized Pricin
Slide 32: Thank you
1 y | Thank you (33: > |