Fertiglobe has a state-of-the-art asset base with facilities using the best available global technology. Approximately 50% of Fertiglobe’s combined urea and ammonia production capacity is under 10 years old. By comparison, nearly 80% of the world’s ammonia plants are at least 20 years old. Our asset base is young and well-maintained, resulting in low maintenance costs and high reliability, while allowing for a better environmental footprint versus the coal and older gas producing plants of our competitors. In addition, the markets in which we operate have clear benefits for incumbent operators, which are difficult to achieve for smaller, newer operators and therefore represent significant barriers to entry.

Our export-focused production facilities benefit from direct access to six key ports and distribution hubs by the Mediterranean Sea, Red Sea, and the Arabian Gulf. This strategic positioning allows Fertiglobe to easily access all major end markets for our products across the world, and to optimize volumes routing East and West of the Suez Canal, creating significant freight optimization and synergies. Our strategic location of assets and global distribution capabilities combined with duty-free access to key importing markets and direct-to-customer strategy drive structural netback advantages compared to typical exporters from the Arabian Gulf, Russia, and China.

We can leverage our geographic reach and flexible production assets to respond to market demand and price evolution to tap the highest netback price markets, at competitive freight charges, while benefiting from a low fixed cost base.

Driven by the global trend towards a higher focus on environmentally friendly production and consumption, and consequently a decrease of greenhouse gas (GHG) emissions, clean / low or no carbon hydrogen has recently emerged as an area of focus across various industries and regions. Ammonia has emerged as one of the most promising products to drive the hydrogen economy and enable this energy transition as it currently represents more than 40% of global hydrogen use today.

As such, clean ammonia and hydrogen will allow a broad range of decarbonization opportunities, including, among others, reductions in the emission from marine fuel, power generation, transportation, construction, and agriculture, sectors that currently account for around 80% of global GHG emissions.

Fertiglobe is well positioned to benefit from this potential paradigm shift in the industry and to play a role in the clean hydrogen value chain. As a global leader in merchant ammonia and early mover in clean ammonia projects, we are also uniquely positioned to capitalize on new demand for low-carbon ammonia as an efficient energy carrier and clean fuel as part of the energy transition.

In addition, Fertiglobe is well-positioned to work with its shareholders, OCI and ADNOC, on the execution and alignment of their own distinct hydrogen strategies. We believe that the strong position and unique knowledge of our shareholders in their respective domains constitutes a valuable source of support for Fertiglobe, and we will continue to work together to maximize the benefits and opportunities arising from the nascent clean hydrogen / ammonia economy for all parties.

With ammonia’s end markets covering food, fuel, and industrial feedstock, we believe that blue and green ammonia represent an opportunity to decarbonize a significant portion of today’s global greenhouse gas emissions across agriculture, industry and transportation.

Fertiglobe’s strong operational and commercial position generally allows it to generate cash in most pricing environments and points across the commodities cycle.

An attractive financial profile is demonstrated by cash flow from operating activities of USD 520.8 million and USD 482.0 million, respectively, for the year ended 31 December 2020 and for the six months ended 30 June 2021. During the same periods, the Company achieved Adjusted EBITDA Margins of 29.2% and 42.2%, respectively.

Fertiglobe’s ability to generate free cash flow is supported by its low capital expenditure, which for the year ended 31 December 2020 was USD 67.1 million and for the six months ended 30 June 2021 was USD 13.6 million. We benefit from low effective tax rates in countries where we operate; we have delivered healthy organic EBITDA growth; and we exercise a high level of capital discipline.

Fertiglobe benefits from multiple pathways to non-GDP driven growth levers, originating from the commercial set-up and strategy of the Company, and comprising continued realization of internal synergies amongst plants, best practice sharing, third party volume growth, downstream expansion, operational excellence initiatives, and strategic partnerships across the world.

As the largest seaborne exporter of urea and ammonia combined globally, Fertiglobe also benefits from being an early mover in clean ammonia with several established blue and green ammonia projects. We have strong shareholder support, benefitting from ADNOC’s experience in carbon capture and OCI’s global downstream ammonia infrastructure, as well as access to attractively priced abundant low cost solar and wind energy in all three countries we operate in and can leverage our existing ammonia infrastructure.

Fertiglobe was formed as a strategic partnership between OCI and ADNOC in 2019 and has benefitted from the support of both shareholders since. The Company can leverage logistics access to OCI’s inland presence in Europe and North America, for example through N-7, a 50/50 marketing joint venture between OCI and Dakota Gasification Company, which markets and distributes nitrogen products in North America, including offtake of Dyno Nobel’s products. We can also leverage key strengths and global reach from both shareholders complementary to Fertiglobe’s business, including ADNOC’s export relationships in key high growth Asian markets and carbon capture leadership in the region and OCI’s extensive global ammonia storage and distribution capabilities.

A strong nexus with our shareholders is expected to enhance our ability to continue to grow the opportunity set, including in the clean ammonia space as ammonia develops into a key enabler of the hydrogen economy over the medium and long term.