Slide 1: Q1 2024 Results Presentation
Q1 2024 Results Presentation 14 May 2024 1
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 Q1 2024 Financial Performance & Updates Market Outlook Appendix 3
Slide 4: Safety First
Safety First Commitment to Zero Injuries Target Zero Injuries at All Facilities 12-month rolling recordable incident rate to 31 March 2024 • Achieve leadership in safety and occupational standards 0.14 incidents per 200,000 manhours across the operations • Fostering a culture of zero injuries at all
Slide 5: Fertiglobe at a Glance
Fertiglobe at a Glance Leading Nitrogen Fertilizer Exporter Globally 4 World-class Strategically Located Production Facilities and Unique Ammonia Platform Early Mover in Current Ownership Structure Sustainable Global In-House Distribution Ammonia 50.0% Capabilities including ~1,000kt Storage Capacit
Slide 6: Executive Summary
Executive Summary ► Q1 2024 results: Revenues of $552 million (-20% Y-o-Y), adjusted EBITDA of $223 million (-25% Y-o-Y), with adjusted net profit attributable to shareholders of $119 million (-12% Y-o-Y), driven by lower prices Y-o-Y. ► Q1 2024 own-produced sales volume up 5% Y-o-Y, driven by 22% a
Slide 7: A New Chapter in Fertiglobe's Journey
A New Chapter in Fertiglobe’s Journey ADNOC to Acquire OCI’s 50% stake in Fertiglobe ADNOC has agreed to acquire OCI’s 50% stake in Fertiglobe, making ADNOC the majority shareholder of Fertiglobe (86.2%) post closing, pending standard legal and regulatory approvals. The free float listed on ADX rema
Slide 8: Ammonia Prices Softer but Resilient at Start of 2024; Urea Prices Rangebound
Ammonia Prices Softer but Resilient at Start of 2024; Urea Prices Rangebound Ammonia prices stabilized at ~$460-$470/t CFR Europe despite cost correction; urea hovering at ~$295/t end of April Resilient prices backed by fundamental N demand Global ammonia trade recovery expected Healthy prospects fo
Slide 9: Fertiglobe's Key Investment Highlights
Fertiglobe’s Key Investment Highlights 1 Leading nitrogen fertilizer exporter globally and unique ammonia platform Strategically located asset base and global distribution capabilities driving structurally higher 2 realized prices High quality asset base at attractive cost curve position underpinned
Slide 10: Table of Contents
Table of Contents Highlights Q1 2024 Financial Performance & Updates Market Outlook Appendix 10
Slide 11: Q1 2024 Results Summary
Q1 2024 Results Summary Summary Key Financials1 and KPIs $ million unless otherwise stated Q1 2024 Q1 2023 %Δ • Fertiglobe’s total own-produced sales volumes were up 5% to 1,429kt in Q1 Revenue 551.9 693.7 (20%) Gross Profit 177.5 269.1 (34%) 2024 vs Q1 2023, driven by: Gross profit margin 32.2% 38.
Slide 12: Q1 2024 Financial Summary
Q1 2024 Financial Summary Own-produced sales volumes (MT) Key Product Benchmark Prices, $/t Revenue ($m) Ammonia Middle East 800 -20% 1.43 Urea Egypt 1.37 -45% 700 700 0.24 0.29 -9% 600 600 500 500 400 694 400 615 552 300 1.13 1.14 300 0.99 0.95 409 373 200 339 200 100 100 0 0 Q1 2023 Q1 2024 Urea E
Slide 13: Q1 2024 Free Cash Flow Build-Up
Q1 2024 Free Cash Flow Build-Up Reconciliation of Q1 2024 EBITDA to Free cash flow ($ million) Free Cash Flow before NCI & WHT 13
Slide 14: 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 Revenue Favourable geographical positioning and centralized commercial strategy ~$2,416m leveraging on unique distribution pl
Slide 15: Table of Contents
Table of Contents Highlights Q1 2024 Financial Performance & Updates Market Outlook Appendix 15
Slide 16: Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers
Nitrogen Markets Underpinned by Robust Upstream & Downstream Drivers Prior cycle Drivers Support Demand Driven Environment Current cycle (last 5-6 years) 30% 27% Corn stocks-to-use ratio 2023/24 corn stocks-to-use ratio $3.7/bushel $4.8/bushel HIGH CROP PRICES and AFFORDABILITY SUPPORT NITROGEN DEMA
Slide 17: Robust Agricultural Fundamentals
Robust Agricultural Fundamentals Grain stocks-to-use ratio below the 10-year average supports farm incomes and increased planted acreage to rebuild stocks and nitrogen demand recovery Crop prices supported by stocks:use ratio below 10-year average Urea affordability improving m-on-m since end-Feb/ea
Slide 18: Constrained Chinese Exports & Robust Indian Imports Supportive Of Nitrogen Prices
Constrained Chinese Exports & Robust Indian Imports Supportive Of Nitrogen Prices Indian New Capacity Does not Cover Shortfall in Supply. Imports Chinese Exports Curtailed on Tighter Governmental Policy lower y-on-y, but at ≤6 Mt India remains among top 3 urea China urea exports, Mt India imports, M
Slide 19: Limited New Nitrogen Capacity, Offset by Higher Demand
Limited New Nitrogen Capacity, Offset by Higher Demand Slower pace of new urea capacity additions with good visibility given ~5- Merchant ammonia market expected to be underpinned by demand recovery year project lead time. Robust nitrogen demand for ag & tech use. & cost curve economics Ammonia capa
Slide 20: EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs
EU Gas Costs Remain Elevated vis-à-vis Major Export Hubs & Production Centers Global Feedstock Prices 2017-2025F, $/MMBtu Cash Costs per ton of Ammonia 2017-202F, $/t Global differentials between US, North Africa and EU marginal costs remain wide 800 Arbitrage between international ammonia pricing 2
Slide 21: Fertiglobe Positioned on First Quartile of Nitrogen Cost Curves
Fertiglobe Positioned on First Quartile of Nitrogen Cost Curves Benefit from attractively priced, long-term gas contracts and low conversion costs Long-term attractive gas supply agreements with EGPC in Egypt, Sonatrach in Algeria, and ADNOC in Abu Dhabi supporting advantageous cost position You
Slide 22: Limited New Ammonia Supply More Then Offset by Demand Growth
Limited New Ammonia Supply More Then Offset by Demand Growth Global Merchant (grey + blue + green) ammonia supply and demand, Mt1 million tonnes ammonia Total grey merchant supply New project (Pre-FEED) 2024-26 New Project (FID) Total (grey + low carbon) demand Market balance: supply - demand • Merc
Slide 23: Accelerating Low Carbon Ammonia Demand Driven by New Applications
Accelerating Low Carbon Ammonia Demand Driven by New Applications Demand from Low Carbon Application is Materialising Rapidly in the Near Term Million tonnes ammonia 1• Maritime Fuels (21% of Total 2030 Low Carbon Demand) ~45 Mt ~24 Mt • Maritime sector increasingly incentivised to adopt clean fuels
Slide 24: Low Carbon Ammonia Supply will be Slow to Commission
Low Carbon Ammonia Supply will be Slow to Commission <25% of Project Announcements Get Built, and <30% Realized on Time Significant Low Carbon Ammonia Supply Bottlenecks Firm nitrogen projects in 2008 pipeline, ex-China, Million Mt Firm US nitrogen projects in 2018 pipeline, Million Mt Bottleneck De
Slide 25: Ammonia Bunkering Demand To Grow From 2026
Ammonia Bunkering Demand To Grow From 2026 Ammonia Newbuild Vessels And Retrofit Conversions To Accelerate Ammonia vessel adoption pathway Ammonia fuel uptake based on Lloyds 2023 estimates for ships (new build and retrofits) 1 Number of ammonia ready vessels on order/operational today 2 Dual Fuel A
Slide 26: Table of Contents
Table of Contents Highlights Q1 2024 Financial Performance & Updates Market Outlook Appendix 26
Slide 27: March 2024 Leverage Position
March 2024 Leverage Position Fertiglobe Ends March 2024 with Net Debt of $743 million $ million 31-Mar-24 31-Dec-23 Cash and bank balances 853.8 759.8 Loans and borrowings - current 124.2 174.9 Loans and borrowings - non-current 1,473.0 1,490.2 Total borrowings 1,597.2 1,665.1 Net debt 743.4 905.3 N
Slide 28: Reconciliation of Adjusted EBITDA and Adjusted Net Profit
Reconciliation of Adjusted EBITDA and Adjusted Net Profit Reconciliation of reported operating profit to adjusted EBITDA Adjustment in P&L $ million Q1 2024 Q1 2023 Operating profit as reported 146.3 227.8 Depreciation and amortization 68.9 67.4 EBITDA 215.2 295.2 APM adjustments for: Movement in pr
Slide 29: 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 Q1 2024 Q1 2023 EBITDA 215.2 295.2 Working capital 0.9 9.9 Maintenance capital expenditure (18.6) (11.0) Tax paid (15.8) (21.7) Net interest paid (29.6) (8.6)
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: » Fer
| - ‘ 3 » Fer lobe Compant