The Investment Case of Fertiglobe

[Music] just see if I can play with this right good to see you all thanks very much and thanks to adgm as well for inviting me uh it's it's a great opportunity to talk to you so there was a little nice introduction there on some of what we do what I'm really going to be talking about today is the fact that we are a ferti izer company but also a future Energy company and it's that pivot it's that transition I want you to join me on that Journey today so yes we're the largest in the UAE at uh fertilizer but we're also the largest nitrogen fertilizer exporter in the world and if I sort of focus on the food Security on that basically if you do not use nitrogen as a fertilizer every single year as a farmer you will see your yield drop 40% the next year yeah you will basically nitrogen fertilizer every year is keeping sort of upwards of 4 billion people nourished food security is incredibly important the growth the population growth continues we are the largest nitrogen fertilizer exporter and then we're moving to energy security I'll talk about energy uh security where ammonia one of our products is one of the best zero zero carbon uh products for storing and moving and burning uh uh as a future energy source and we'll talk a little bit more about that so very interesting to go from food to energy so who are we we have basically four world-class young strategically located production facilities through Mina we're already industry-leading margins of cash flow generation so we will up there again in the plus 40% I bit down margins our cash flow Generations are very very healthy and as a sector as a global international company against our peers we are one of the highest sector leading in terms of dividend yields we prioritize our shareholder value with maximization so since we ipoed in 201 21 we've dividend 2.4 billion we've got one of the leading total shareholder returns since IPO of any company here under adx a lot of this interested adnoc so a couple of uh months ago adnoc completed its acquisition of us adock now holds 86% of us and the rest of us are listed that is very exciting when I go forward because adock certainly from a food security piece but really why is adok doing this is as the Future Energy security and it gets exciting where you put together the largest nitrogen fertilizer exporter and bring it together with adnot the moment we do $6.6 million of net capacity and under adock with adnoc by the end of 2029 2030 will be up to 9 million tons of that 2 million tons will be low carbon ammonia uh in the UAE alone in was and there's also 350 in the US with one of our new partners Exxon so it's a little unusual you got a nitrogen fertilizer exporter working with Exxon an energy company what are we doing here it's a balance between as a shareholders giving you value Creation in terms of dividend but also positioning for the future growth so disciplined growth strategy we look at we kind of look to ourselves as an energy stewardship in terms of the economics of what we're basically doing here so you'll have read a lot of you know new Energy new energy but does it actually come to fruition for us we're already one of three green ammonia producers in the world we won through Germany a subsidy support we beat off all our competition for $400 million of green ammonia into Germany for them to move to the the next stage of their energy uh strategy we've fided 1 million tons of low carbon ammonia in the U are projects economically work now this 1 million ton project is high double digigit irr even on Gray ammonia before the low carbon pricing starts coming in and then margin optimization so we're really looking despite our young plants we're looking to see how can we get out more abitar through better operation that's $100 million we will deliver by the end of 2025 cost optimization through uh internal transformation greater use of digitization there'll be a $50 million run rate saving at the end of this year um all of this is that balance we will maintain our position in high dividend yields in the sector and indeed in the adx but also push with economic growth which makes sense so adock is taken an interest in us why is that so they look at us for that energy position we're really excited to bring this together we were an early mover in low carbon ammonia we've got our strong financial Capital discipline we're the largest at what we do when you start bringing adnot which needs no introduction together interesting things start happening um the Energy customer base is very interesting with that not the way they can bring our existing products to new energy markets basically their uh technology is also very supportive in carbon capture and if I move here you can basically see the ecosystem we have is the carbon capture the logistics and services you saw here on shipping Maritime energy because ammonia will be one of the most important Future Fuels to M uh ships around the world ADN distribution ad blue is basically reducing diesel exhaust fumes for this country and others adnoc has these customers and in terms of the collaboration opportunities that adnoc and the UAE with Mazda and others are bringing together we're one of those missing pieces in the jigsaw puzzle we essentially are allowing the movement of hydrogen generated here to the End Market in wherever it is in the globe and by bringing in these projects that adnoc has two in the UAE one in Texas we're really positioning us El for a very exciting future and that future is there so you can basically see by 2030 we're already the largest in the world up to nine mtpa and not only that you can see the Strategic locations of where we are basically being in Texas being in the UAE being in Egypt being in Algeria and being one of the largest Maritime uh distribution networks we can push this product to where we can find the best margins for our existing product and our future product and this demand is only growing so Maritime fuel is incredibly important so the fuel EU Maritime uh law just came regulations came out this year this is basically pushing a lot of the vessels a lot of the uh vessel owners logistics companies to start saying okay we need to start moving to a zero carbon fuel there's been others talked about but essentially ammonia is the one that doesn't have the carbon molecule and scales we're very excited to be a part of that also as a power generation with Japan and Korea co-firing as power stations and in China as well also looking at this there's a lot of growth that we're looking towards last one our existing business the market is strong the market continues to grow and have a very good strong support so I'd like to leave you talking about the exporter of nitrogen fertilizer and Future Fuels good margin now great growth capital allocations in the future as we take this journey from food security to energy security thank you very much [Music]