Slide 1: Q1 2023 Results Presentation
Q1 2023 Results Presentation 9 May 2023 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 2023 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 2023 • Achieve leadership in safety and occupational standards 0.24 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 50% Leading Nitrogen Fertilizer Exporter Globally 4 World-class Strategically of Assets Younger Located Production Facilities and Unique Ammonia Platform than 10 years Global In-House Distribution Early Mover in 50.0% Capabilities Sustainable including ~1,000kt Storage Capacit
Slide 6: Fertiglobe: A Strategic Partnership With Strong Shareholder Support
Fertiglobe: A Strategic Partnership With Strong Shareholder Support Partnership Geared Towards Growth and Value Creation, Supported by Shareholders with a Strong Track Record OCI Global 50%(1) 36%(1) ADNOC #3 global producer of nitrogen products(2) Leading integrated O&G company, entrusted to manage
Slide 7: Executive Summary
Executive Summary ► Q1 2023 results: Adjusted EBITDA $297 million, adjusted net profit $135 million, free cash flow $271 million, below Q1 2022 levels due to lower selling prices. ► Fertiglobe’s balance sheet positions it well to balance distributions while selectively pursuing value-creative growth
Slide 8: 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 9: Table of Contents
Table of Contents Highlights Q1 2023 Financial Performance & Updates Market Outlook Appendix 9
Slide 10: Q1 2023 Results Summary
Q1 2023 Results Summary Summary Key Financials1 and KPIs $ million unless otherwise stated Q1 2023 Q1 2022 %Δ Own-produced volumes up 9% in Q1 2023 vs. Q1 2022 Revenue 693.7 1,184.8 (41%) Gross Profit 269.1 587.8 (54%) 6% higher own-produced ammonia sales volumes Gross profit margin 38.8% 49.6% Ad
Slide 11: Q1 2023 Financial Summary
Q1 2023 Financial Summary Own-produced sales volumes (MT) Key Product Benchmark Prices, $/t Revenue ($m) -41% 1,4 00 Urea Egypt Ammonia Middle East 1.36 -31% 1,2 00 -51% 100 0 0% 1.6 0 1.6 0 1.4 0 1.25 900 1.4 0 -20% 1,0 00 0.24 800 -40% 0.22 1.2 0 1.2 0 700 -60% 800 1.0 0 1.0 0 600 -80% 600 1,185 8
Slide 12: Q1 2023 Free Cash Flow and Net Debt Build-Up
Q1 2023 Free Cash Flow and Net Debt Build-Up Reconciliation of Q1 2023 EBITDA to Free cash flow ($ million) & WHT Change in Net Debt from 31 Dec 2022 to 31 March 2023 ($ million) costs/income In FX 12
Slide 13: 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 Revenue Favourable geographical positioning and centralized commercial strategy ~$694m leveraging on unique distribution plat
Slide 14: Table of Contents
Table of Contents Highlights Q1 2023 Financial Performance & Updates Market Outlook Appendix 14
Slide 15: 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 Urea affordability +50% since Q1 2022, supporting demand recovery Crop price index, Jan 2006 = 100 Global grain and oilseed stocks: use ratio (ex-China), % Affordability Index, Jan 2006 = 1
Slide 16: Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics
Nitrogen Outlook Supported by Attractive Supply-Demand Dynamics Prior cycle Current cycle Drivers Support Demand Driven Environment (last 5-6 years) (started in 2022) 30% 25% Corn stocks-to-use ratio 2022 corn stocks-to-use ratio $3.7/bushel $5.6/bushel HIGH CROP PRICES and AFFORDABILITY SUPPORT NIT
Slide 17: Incremental Ammonia Demand From New Clean Energy Applications
Incremental Ammonia Demand From New Clean Energy Applications Accelerated demand growth potential post-2026 from new uses in power generation and marine fuels Outlook for incremental low-carbon ammonia demand by end-use to 2035, Million Mt Key Demand Drivers Emissions & carbon markets ~40 Mt 1 Devel
Slide 18: Low Carbon Ammonia Supply Will Be Slow To Commission
Low Carbon Ammonia Supply Will Be Slow To Commission Only <15% of announcements get built given hurdles, and <30% of announced projects realized on time Firm nitrogen projects in 2008 pipeline, ex-China, Million Mt Low carbon ammonia Similar trend in the US in 2014 – 2019: supply bottlenecks 35 9 pr
Slide 19: 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 20: Limited New Nitrogen Capacity, offset by Higher Demand
Limited New Nitrogen Capacity, offset by Higher Demand Limited new urea capacity with good visibility given ~5-year project lead Merchant ammonia market underpinned by robust demand growth time Global ammonia net capacity additions and demand growth, ex-China ex-urea, Mt Global urea net capacity add
Slide 21: Elevated Costs for Marginal Producers Supportive of Nitrogen Prices
Elevated Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2023F, $/MMBtu Cash Costs per ton of Ammonia 2017-2023F, $/t Spot ammonia pricing is below marginal costs and Global differentials between US, North further rationalization of capacity expected: In Europ
Slide 22: Lower Chinese Exports And Robust Indian Imports Supportive Of Nitrogen Prices
Lower Chinese Exports And Robust Indian Imports Supportive Of Nitrogen Prices 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 +30% 8.2 6.9 7.9 ~7 Mt 7.7 7.7 7.5
Slide 23: Table of Contents
Table of Contents Highlights Q1 2023 Financial Performance & Updates Market Outlook Appendix 23
Slide 24: Appendix: Q1 2023 Results
Appendix Q1 2023 Results
Slide 25: 31 March 2023 Leverage Position
31 March 2023 Leverage Position Fertiglobe Ends March 2023 with Net Cash of $564 million $ million 31-Mar-23 31-Dec-22 Cash and bank balances 1,678.0 1,442.0 Loans and borrowings - current 73.0 89.6 Loans and borrowings - non-current 1,040.8 1,065.6 Total borrowings 1,113.8 1,155.2 Net debt (cash) (
Slide 26: 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 Q1 2023 Q1 2022 Adjustment in P&L Operating profit as reported 227.8 557.6 Depreciation and amortization 67.4 62.0 EBITDA 295.2 619.6 APM adjustments for: Movement in pr
Slide 27: 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 2023 Q1 2022 EBITDA 295.2 619.6 Working capital 9.9 (79.4) Maintenance capital expenditure (11.0) (6.8) Tax paid (21.7) (56.4) Net interest paid (8.6) (11.
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: 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 33: 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 Milestones capacity 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 34: Appendix: Fertiglobe Strategic Positioning
Appendix Fertiglobe: Strategic Positioning
Slide 35: 4 World-Scale Assets Leveraging a Global Centralised Commercial Platform
4 World-Scale Assets Leveraging a Global Centralised Commercial Platform Total Fertiglobe Capacity (mtpa) (1) Gross ammonia 4.5 Urea 5.2 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 36: 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 37: 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 Netbacks GCC Baltic Black Sea Producer Producer Producer 10% global market share of combined No import duties int
Slide 38: Leading Nitrogen Fertilizer and Ammonia Exporter Globally
Leading Nitrogen Fertilizer and Ammonia Exporter Globally ~10% of Combined Ammonia and Urea Global Seaborne Exports Ammonia and Urea Combined Export Production Capacity(1) Significant Scale Advantages Mtpa 1 Large scale strategically located platform 6.7 with ability to direct volumes to highest 6.3
Slide 39: 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 40: 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 41: 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
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