#1CLASSIFICATION: CO - NON-CONFIDENTIAL صناعات قطر Industries Qatar Industries Qatar Investor Relations Presentation 31 March 2022 "One of the region's industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products."#2CLASSIFICATION: CO - NON-CONFIDENTIAL DISCLAIMER The Companies in which Industries Qatar Q.P.S.C. directly and indirectly owns investments are separate entities. In this presentation, "IQ" and "the Group" are sometimes used for convenience in reference to Industries Qatar Q.P.S.C. This presentation may contain forward-looking statements concerning the financial condition, results of operations and businesses of Industries Qatar Q.P.S.C. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the Group to differ materially from those expressed or as may be inferred from these statements. There are a number of factors that could affect the realization of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the Group's products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. All forward-looking statements contained in this presentation are made as of the date of this presentation. Industries Qatar Q.P.S.C., its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Industries Qatar Q.P.S.C., its subsidiary, joint ventures and associated companies are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Industries Qatar Q.P.S.C. does not guarantee the accuracy of the historical statements contained herein. GENERAL NOTES IQ's accounting year follows the Gregorian calendar year. No adjustment has been made for leap years. Where applicable, all values refer to IQ's share. Values expressed in US $'s have been translated at the rate of US $1 = QR3.64. DEFINITIONS Adjusted Free Cash Flow: Cash Flow From Operations - Total CAPEX - Dividends CAGR: Compound Annual Growth Rate Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100⚫ Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100⚫ Dividend Yield: Total Cash Dividend Closing Market Capitalisation × 100 ⚫ EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation calculated as (Net Profit + Interest Expense + Depreciation) • EPS: Earnings per Share (Net Profit / Number of Ordinary Shares outstanding at the year end) • Free Cash Flow: Cash Flow From Operations - Total CAPEX ⚫ HBI: Hot Briquetted Iron ⚫ mmBTU: Million British Thermal Units ⚫ Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings (Closing market capitalisation / Net Profit) ⚫utilization: Production Volume / Rated Capacity x 100 2 Industries Qatar, IR Presentation, 1Q-22#3CLASSIFICATION: CO - NON-CONFIDENTIAL Table of Content Competitive strengths 1. About IQ 2. 3. A. 5. 6. 7. Regional peer review Macroeconomic updates Group results (For the three-month period ended 31 March 2022) Segment results (For the three-month period ended 31 March 2022) CAPEX and Cash flows (2022F - 2026F) 8. Dividends and market capitalization 9. Historical performance (2015-2021) 10. 11. Governance structure Sales and marketing 3 Industries Qatar, IR Presentation, 1Q-22#4CLASSIFICATION: CO - NON-CONFIDENTIAL 4 About IQ i صناعات قطر Industries Qatar#55 сл CLASSIFICATION: CO - NON-CONFIDENTIAL IQ at a Glance • Overview Industries Qatar (IQ) was incorporated and listed on the Qatar Exchange in 2003. IQ is the second largest company at Qatar Exchange by Market Capitalization. IQ is credit rated by Standard & Poor's (A+; stable) and Moody's (A1; stable). IQ's shareholding structure 9.4% 0.3% 8.1% ■QatarEnergy ■Other Qatari Institutions and Funds ■Foreign Institutions and Funds ■Retail investors - Qatar . QatarEnergy provides most head office functions through a comprehensive service- level agreement. The operations of subsidiaries and joint ventures remain independently managed by their respective Boards of Directors and senior management teams. Core values Operational excellence 31.2% 51.0% ■Retail investors - Foreign FOL: 100%* Max. single shareholder limit: 2% Note: Shareholder data as of 31-Mar-22 * Board of Directors approved to increase the FOL to 100%, implementation is subject to regulatory approvals. HSE Shareholder value creation Cost optimization maximization Cashflow Industries Qatar, IR Presentation, 1Q-22#6CLASSIFICATION: CO - NON-CONFIDENTIAL IQ business segments at a glance Business segments overview Through its group companies, IQ operates in three distinct business segments: Petrochemical, Fertilizer and Steel; Production facilities are principally located in the State of Qatar. Industries Qatar Segment size by Revenue ■Petrochemicals 18.3% 25.8% ■Fertilizers ■Steel 55.9% Petrochemicals Fertilizers Steel Segment size by Net Profits 0.9% 9.7% 24.9% QAPCO* (80%) QAFCO (100%) Qatar Steel (100%) QAFAC* (50%) *Joint venture stake 6 64.5% ■Petrochemicals ■Fertilizers ■Steel H.O. & others Note: Revenue and net profit data as of 31-Mar-22 Industries Qatar, IR Presentation, 1Q-22#7CLASSIFICATION: CO - NON-CONFIDENTIAL 7 Competitive strengths i صناعات قطر Industries Qatar#8CLASSIFICATION: CO - NON-CONFIDENTIAL Competitive strengths 8 Low cost producer • Strong financial position Market leader- ship Experi -enced team • · Assured feedstock supply Economies of scale and operationally diversified Synergy benefits Solid liquidity position, with no long-term debt Strong cash flow generation with stable EBITDA margins Sound dividend record Major steel producer in the region World's largest single site urea producer Dedicated marketing support in form of Muntajat Industry experts in the senior management team Reputable JV partners Industries Qatar, IR Presentation, 1Q-22#9CLASSIFICATION: CO - NON-CONFIDENTIAL 6 Regional peer review i صناعات قطر Industries Qatar IQ ranked #28 among "2021 Forbes List of Top 100 Companies in the Middle East"#10CLASSIFICATION: CO - NON-CONFIDENTIAL Competitive positioning versus regional peers Market Cap. (USD' billion) Total Assets (USD' billion) Peer 1 104.8 Peer 1 84.8 IQ 31.6 IQ ranks #2 IQ 11.6 IQ ranks #2 Peer 2 20.2 Peer 2 8.7 Peer 3 11.3 Peer 3 6.5 Peer 4 10.5 Peer 4 5.3 Note: Data as of 31-Mar-22 Note: Data as at 31-Dec-21 Net profit (USD' million) EBITDA (USD' million) Peer 1 6,150 13% Peer 1 11,756 25% IQ 2,222 40% IQ ranks #2 IQ 2,809 51% IQ ranks #2 IQ ranks #5 in terms Peer 2 1,394 Peer 2 55% 1,779 70% of Net profit margins IQ ranks #6 in terms of EBITDA margins Peer 3 Peer 3 958 36% 1,460 55% Peer 4 637 19% NP margin (%) Peer 4 1,398 41% EBITDA margin (%) Note: Data as of YE-21 Note: Data as of YE-21 10 Note: Regional peers data include all listed companies in MENA region involved in production of Petrochemicals, Fertilizers, Specialty Chemicals & Hybrids (Petchem, Fertlizers & Metals). Industries Qatar, IR Presentation, 1Q-22#11CLASSIFICATION: CO - NON-CONFIDENTIAL 11 Macroeconomic updates i صناعات قطر Industries Qatar#12CLASSIFICATION: CO NON-CONFIDENTIAL Macroeconomic updates Petrochemicals 1650 LDPE ($/MT) LLDPE ($/MT) 1150 650 Jan'20 Dec'20 Dec 21 Mar'22 Fertilizers 1100 Urea ($/MT) 600 100 Jan'20 Dec'20 Dec 21 Mar'22 Steel . • Demand for most of the petrochemicals slightly inched downward, as buyers remained cautious hoping for lower prices after reaching its peak in last year. Also, seasonal effects weighed on most of the commodities' demand, mainly during early parts of the year. Supply side was affected amid Russia-Ukraine conflict enforcing sharp rise in energy prices; specifically during latter part of 1Q-22, challenging plant economics. • During first two months of 2022, fertilizer prices demonstrated bearish trends; while starting from March'22 the prices started to demonstrate strength on account of higher energy prices and Russian sanctions posing uncertainty of supply interruptions. 950 Rebar ($/MT) 750 550 350 Jan'20 12 Dec'20 . • Dec 21 Mar'22 Steel prices continued its positive trajectory since Q4-20, underpinned by increase in steel demand linked to elevated construction activity, coupled with higher raw material costs internationally. However, prices during second half of 2021 have slightly softened after peaking until mid of 2021. Recently the prices again slightly started to pick-up. Prices within the domestic steel market remained aligned with international market trends. Note: Market prices have been sourced from Bloomberg with Asian benchmarks and may not reflect actual prices realized by IQ Industries Qatar, IR Presentation, 1Q-22#13CLASSIFICATION: CO - NON-CONFIDENTIAL 13 Group results (For the three-month period ended 31 March 2022) i صناعات قطر Industries Qatar#14CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results at a Glance Revenue QR 7.1 billion Growth vs. 1Q-21 EBITDA Net profit 69% 67% 87% QR 3.2 billion QR 2.7 billion EBITDA Margin: 46% EPS: QR 0.45 ROAE: 26.9% Prices across most of the product range slightly declined after peaking during last year on a quarter-on-quarter basis; while year-on-year price trajectories remained elevated Qatar Steel decides to mothball a smaller DR facility and switching back to a larger DR facility. 14 Return on Av. Equity (ROAE): TTM net earnings / Av. equity Industries Qatar, IR Presentation, 1Q-22#15CLASSIFICATION: CO - NON-CONFIDENTIAL Operational performance review Production (MT' 000) 3,741 +5% 3,945 +9% 3,624 . 1Q-22 vs 1Q-21: production volumes increased, mainly driven by higher volumes from fuel additives facilities (commercial shutdown during first half of 2021) and higher steel volumes due to restart of DR-2 facilities while mothballing DR-1 facilities. 1Q-22 vs 4Q-21: production levels improved, driven by higher PE volumes (largescale shutdown in 4Q-21) and higher steel volumes (DR-2 restart), partially offset by lower fertilizer production. 1Q-21 1Q-22 4Q-21 Sales volume (MT' 000) 2,464 1Q-21 +9% +25% 2,685 1Q-22 2,147 4Q-21 Selling prices ($/MT) 481 +55% 747 -5% 790 1Q-21 1Q-22 4Q-21 15 • 1Q-22 vs 1Q-21: sales volumes increased mainly due to higher fuel additives volumes and higher fertilizer volumes, partially offset by lower steel volumes. 1Q-22 vs 4Q-21: sales volumes significantly improved due to higher PE volumes (largescale shutdown in 4Q-21), higher fertilizer volumes on account of timing of shipments carried forward from 4Q-21 and higher steel volumes due to restart of DR-2 facilities. • 1Q-22 vs 1Q-21: year-on-year price trajectories remain elevated with continued support from heightened economic activity, persistent GDP growth and limited supply. • 1Q-22 vs 4Q-21: prices inched downward due to cautious approach from buyers, along with seasonal effects weighed on most of commodities' demand. However, higher energy prices, coupled with supply side disruptions linked to Russia-Ukraine conflict creating a new layer of supply deficits. Industries Qatar, IR Presentation, 1Q-22#16CLASSIFICATION: CO - NON-CONFIDENTIAL Financial performance review Revenue (QR' million) +18% • 16 4,218 1Q-21 +69% 7,116 1Q-22 6,018 4Q-21 Net profit (QR' million) 1,443 1Q-21 +87% +10% 2,704 1Q-22 2,451 4Q-21 Net cash (QR' billion) 1Q-22 vs 1Q-21: Group revenue increased significantly, mainly on account of overall increase in blended selling prices and higher sales volumes. • 1Q-22 vs 4Q-21: Group revenue improved mainly due to higher sales volumes, slightly offset by lower selling prices. 1Q-22 vs 1Q-21: results were significantly improved due to: Better price trajectory across the product range; and Higher sales volumes. Partially offset by higher variable cost on account of increased sales volumes and end-product price indexed raw material cost. 1Q-22 vs 4Q-21: profitability improved with higher revenues. -21% -21% 16.0 12.6 14.1 11.1 Dec-21 • Mar-22 IFRS 11 Mar-22 Dec-21 IAS 31 • • Total cash across the Group stood at QR 12.6 billion (under IAS 31). Cash decreased from last year mainly due to payment of 2021 dividends partially offset by improved free cash flow generation during the current period (QR 2.6 billion). • There is no long-term debt across the Group. Industries Qatar, IR Presentation, 1Q-22#17CLASSIFICATION: CO - NON-CONFIDENTIAL Net profit variance analysis 17 1Q'22 vs 1Q'21 IQ continue to benefit from higher product prices reflected in Group's bottom-line profitability +87% Amounts in QR 'millions 2,771 216 72 2,704 1,443 -1,798 1Q-21 Price Volume OPEX Others 1Q-22 1Q'22 vs 4Q'21 Higher sales volumes reflected positively on Group's earnings, while prices across most of the product range slightly declined after peaking during last year +10% 1,648 2,451 87 -958 -524 4Q-21 Price Volume OPEX Others Amounts in QR 'millions 2,704 1Q-22 Industries Qatar, IR Presentation, 1Q-22#18CLASSIFICATION: CO - NON-CONFIDENTIAL IQ cash flow generation IQ's free cash flow generation capability continue to remain robust 18 Amounts in QR 'millions 2,704 409 15,977 -331 -214 109 -6.050 Dec-21 IAS 31 12,604 Net income Dep- Working reciataion capital changes CAPEX I 2021 Dividends Other Cashflow movements Mar-22 IAS 31 Free cash flows generated during three-month period ended 31 March 2022: QR 2.6 billion Industries Qatar, IR Presentation, 1Q-22#1919 Oil price (USD/bbl), brent CLASSIFICATION: CO - NON-CONFIDENTIAL Robust EBITDA margins Despite the volatile trends in commodity prices, IQ's EBITDA margins continue to remain robust 12888 140 120 100 37% 80 28% 27% 22% 60% 53% 52% 51% 46% 46% 50% 41% 40% 39% 40% 30% 20% 40 20 0 2Q-19 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 10% 0% Source: Oil price (USD/bbl), brent - Bloomberg; EBIDTA margins - company data - Oil price (USD/bbl), brent IQ EBIDTA Margins (%) Industries Qatar, IR Presentation, 1Q-22 IQ EBIDTA Margins (%)#2020 20 61.4% 93.9% 86.5% 98.1% 99.7% 106.3% 91.8% 86.8% CLASSIFICATION: CO - NON-CONFIDENTIAL IQ's plant operating rates IQ's plant operating rates remained stable 102.9% 99.4% 92.2% 80.0% 99.5% 70.6% 93.3% 99.1% 105.1% 100.9% 102.3% 99.1% 2Q-20 3Q-20 4Q-20 ■ QAPCO 1Q-21 QAFAC ■ QAFCO 2Q-21 3Q-21 4Q-21 1Q-22 ■Qatar Steel* Note: With effect from 01 April 2020, management decided to mothball certain facilities of Qatar Steel, hence, the nameplate capacity was accordingly adjusted to reflect the new capacity levels post mothballing. Also, from 1Q-22, Qatar Steel decides to switch mothballing of DR facilities by restarting a DR facility with larger capacity. as the segment restarted DR-2 facility during 1Q-22, as against DR-1 which was operational until the end of 2021. DR-2 has a production capacity of 1,500k MT's per annum compared to DR-1 that has an annual capacity of 800k MT's per annum. Industries Qatar, IR Presentation, 1Q-22 99.0% 113.5% 95.8% 98.9% 56.6% 109.6% 97.6% 89.0% 95.5% 109.1% 93.1% 97.1%#21CLASSIFICATION: CO - NON-CONFIDENTIAL Geographic analysis – IQ Group revenue - Asia remained Group's largest market, while its presence in Americas and Middle East continued to be substantial North America 21 21 9% South America 4% Europe 4% Qatar Middle East 9% Asia, ex. ISC 12% 37% Africa Indian sub-continent 6% 19% Industries Qatar, IR Presentation, 1Q-22#22CLASSIFICATION: CO - NON-CONFIDENTIAL 22 22 Segment results (For the three-month period ended 31 March 2022) i صناعات قطر Industries Qatar#23CLASSIFICATION: CO - NON-CONFIDENTIAL Segmental Details: Petrochemicals The companies in the Petrochemical segment (Qapco, Qatofin, Qafac and QVC) are engaged in the production of: Product (in 000 MT PA) Capacity1 Ethylene 920 LDPE 600 LLDPE 280 Methanol 500 MTBE 305 Total 2,605 The segment's primary feedstocks are methane gas (which is used for the production of methanol), ethane gas (ethylene) and butane gas (MTBE); 23 23 perion SIONING CAR 1 Production capacity reflect IQ's share in the respective entities TRASPORTO CALFER 700 0 Industries Qatar, IR Presentation, 1Q-22#24CLASSIFICATION: CO - NON-CONFIDENTIAL ◉ 1Q-22 results: Petrochemicals Analysis of production & selling prices Production: Production volumes up by 9% compared to 1Q-21, as MTBE facilities reported better plant utilization, while the same was on a commercial during 1Q-21. This was partially offset by slightly lower volumes from PE facilities; 1Q-22 production volumes significantly increased by 39% versus 4Q-21, as PE facilities reported better plant utilization, while the same was on a largescale turnaround during 4Q-21. Fuel additives volumes remained flat on a quarter-on-quarter basis. Selling Prices: Up on 2021 by 18%, against the backdrop of firm demand and higher energy prices, coupled with supply deficits. 1Q-22 selling prices improved compared to 4Q-21, mainly due to higher MTBE prices, while PE prices were muted during 1Q-22 versus 4Q-21. Production (MT' 000) +9% 732 739 656 Selling prices ($/MT) +39% +8% +18% 713 940 979 904 828 854 513 Industries Qatar, IR Presentation, 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 24 24#25CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Petrochemicals Analysis of segment revenue & net profit Revenue: QR 1.9 billion, up by 33% compared to 1Q-21. This increase in revenue was mainly linked to higher product prices (+18%), and better sales volumes (+13%). Growth in sales volumes was linked to higher production volumes; ■ Revenue for the current quarter was up by 42% versus 4Q-21. This increase was primarily driven by improved sales volumes (+31%), as the Group's polyethylene segment was on a major planned shutdown during 4Q-21, which significantly lowered segment's sales volumes for 4Q-21. Net profit: QR 673 million, up by 11% compared to 1Q-21. Improvement was mainly due to the overall growth in segmental revenue. 1Q-22 net profit increased by 120% compared to 4Q-21 mainly due to higher revenues versus last quarter. Revenue (QR' billion) +33% 1.74 1.57 1.38 1.29 +42% 1.84 608 Net profit (QR' million) +120% +11% 886 678 306 673 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 25 Industries Qatar, IR Presentation, 1Q-22#26253 27% 315 CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Petrochemicals Analysis of segment EBITDA margins Segment's EBITDA margins continue to remain strong 455 54% 47% 44% 42% 575 750 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 1,017 828 26 26 EBITDA (QR 'millions) EBITDA margins (%) Industries Qatar, IR Presentation, 1Q-22 460 4Q-21 1Q-22 58% 53% 36% 830 45%#27CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Petrochemicals Geographical analysis of segment revenue Asia remains a main market for IQ for Polyethylene (LDPE and LLDPE) and MTBE Indian sub-continent remains a key market for Polyethylene (LDPE & LLDPE) and Methanol 1Q-22 Segment Revenue (%) 1Q-21 Segment Revenue (%) 6% 3% 7% 8% 11% 27 27 37% 10% 12% 4% 4% 7% 28% Asia, ex. ISC Indian sub-continent Europe Africa Middle East Qatar Americas 24% PARKKKARAR 39% Note: The geographic analysis is based on the geographic location of the customer, to whom the sale is actually made by IQ's entities directly or via Sales & Marketing partner. Industries Qatar, IR Presentation, 1Q-22#28CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Petrochemicals LDPE (contributed -44% of the segment revenue in 1Q-22) Key segment products analysis LLDPE (contributed -17% of the segment revenue in 1Q-22) 823 940 1,124 1,397 1,609 1,480 1,551 1,547 1,083 1,292 1,180 1,262 1,222 722 811 900 159 160 167 151 160 140 106 147 46 65 66 66 66 60 54 72 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Sales volumes improved during 1Q-22 as the plants came back from largescale turnaround carried out during 4Q-21. Selling prices slightly inched downward, on the back of cautious demand. 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Sales volumes improved during 1Q-22, with better plant operating rates as the plants were on a largescale shutdown during 4Q-21. Selling price trajectory slightly moved downward during 1Q-22, with slow demand and seasonal effects. MTBE (contributed -17% of the segment revenue in 1Q-22) Methanol (contributed ~8% of the segment revenue in 1Q-22) 398 994 330 330 350 640 710 722 780 231 175 397 382 141 210 37 85 46 4 68 87 76 92 130 372 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Sales volumes slightly improved during 1Q-22. Selling prices continued its elevated trajectories on account of contractive macro drivers. 125 102 135 117 115 110 106 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Sales volumes slightly declined during 1Q-22 versus 4Q- 21. Selling prices also declined on account of slightly slower demand, after peaking in 4Q-21. 28 Sales Volumes (MT '000) Selling price ($/MT) i Industries Qatar, IR Presentation, 1Q-22#29CLASSIFICATION: CO - NON-CONFIDENTIAL Segmental Details: Fertilizers Qatar Fertiliser Company has six ammonia and six urea production trains all of which are located in Qatar. Product (in 000 MT PA) Capacity1 Ammonia 3,840 Urea 5,957 Melamine 60 Total 9,922 . The segment's primary feedstock is methane gas (which is used for the production of ammonia) and ammonia (which is used for production of urea). 29 29 the 1 Production capacity reflect IQ's share (100% stake in QAFCO) in the respective entities Industries Qatar, IR Presentation, 1Q-22#30CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Fertilizers Analysis of production & Production: 1Q-22 production volumes remained flat versus same period of last year; selling prices 1Q-22 production declined by 5% compared to 4Q-21, due to lesser no. of operating days during 1Q-22 versus 4Q-21, amid planned maintenance shutdowns. Selling Prices: Prices significantly up by 113% compared to 1Q-21, as a result of persistent restricted supply from key exporting economies, together with inflationary pressures amid higher crop and energy prices. ☐ Prices decreased by 11% during 1Q-22 compared to 4Q-21, mainly due to lowered demand, amid cautious approach from buyers, during first two months of 1Q-22. However, prices of fertilizers again started to climb from the latter part of the reporting period, owing to higher energy prices and Russian sanctions posing uncertainty of supply interruptions. Production (MT' 000) -5% Selling prices ($/MT) -11% 30 30 0% 2,529 2,306 2,367 2,411 2,300 +113% 781 695 481 388 326 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Industries Qatar, IR Presentation, 1Q-22#31CLASSIFICATION: CO - NON-CONFIDENTIAL ◉ 1Q-22 results: Fertilizers Analysis of segment revenue & net profit Revenue: QR 3.98 billion, up by 147% compared to 1Q-21, mainly due to positive growth in product prices (+113%) and sales volumes (+16%); Revenue increased by 6% during 1Q-22 compared to the 4Q-21, mainly on account of higher sales volumes (+19%) linked to timing of shipments carried forward from 4Q-21. This was partially offset by lowered selling prices (-11%). Net profit: QR 1.7 billion, up by 194% compared to 1Q-21, due to overall increase in segmental revenues; Net profit declined by 24% during 1Q-22 compared to 4Q-21, due to higher variable cost on account of increased sales volumes, sales of expensive inventories carried forward from previous period and end-product price indexed raw material cost. This was partially offset by higher revenues. Revenue (QR' billion) Net profit (QR' million) +147% +6% 3.98 3.75 2.69 2.23 1.61 -24% +194% 2,288 1,745 1,280 943 595 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 31 4Q-21 1Q-22 Industries Qatar, IR Presentation, 1Q-22#3232 32 457 441 1Q-20 2Q-20 3Q-20 4Q-20 496 692 CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Fertilizers Analysis of segment EBITDA margins Segment's EBITDA margins continued to remain robust 68% 53% 57% 53% 50% 49% 47% 44% 847 1,191 EBITDA (QR 'millions) EBITDA margins (%) Industries Qatar, IR Presentation, 1Q-22 1,538 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 2,546 2,004 50%#3333 33 CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Fertilizers ■ ◉ Americas remains a main market for fertilizer segment Asia is another key market for fertilizers along with Indian sub-continent 7% 30% 5% 1Q-22 Segment Revenue (%) 8% 29% 2% 19% Asia, ex. ISC Indian sub-continent Europe Africa Middle East North America Geographical analysis of segment revenue 1Q-21 Segment Revenue (%) 12% 21% O 43% 6% 18% South America Note: The geographic analysis is based on the geographic location of the customer, to whom the sale is actually made by IQ's entities directly or via Sales & Marketing partner. Industries Qatar, IR Presentation, 1Q-22#34CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Fertilizers Urea (contributed -88% of the segment revenue in 1Q-22) Key segment products analysis 1,408 1,474 1,281 1,407 1,501 1,171 1,043 828 714 773 661 227 7221 249 316 361 446 Δ Δ A 240 A Δ Δ Δ Δ 1Q-20 2Q-20 2Q-21 3Q-21 4Q-21 1Q-22 3Q-20 4Q-20 1Q-21 Sales volumes increased during 1Q-22 mainly linked to timing of shipments carried forward from 4Q-21. Product prices declined during 1Q-22 versus Q4-21, mainly due to lowered demand, amid cautious approach from buyers, during first two months of 1Q-22. However, prices of urea again started to climb from the latter part of the reporting period, owing to higher energy prices and Russian sanctions, posing uncertainty of supply interruptions. Ammonia (contributed ~8% of the segment revenue in 1Q-22) 834 683 593 495 226 66 184 13 218 236 280 139 164 178 108 1Q-20 2Q-20 3Q-20 162 4Q-20 104 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Sales of ammonia depends on the availability of excess ammonia, as most of the ammonia production is used for Urea production. Sales Volumes (MT '000) Selling price ($/MT) 34 34 Note: Quarterly figures for the year 2020 have been restated to show the effects of acquisition of Qafco's 25% stake retrospectively, with effect from 01 January 2020. Industries Qatar, IR Presentation, 1Q-22#35CLASSIFICATION: CO - NON-CONFIDENTIAL Segmental Details: Steel • • Qatar Steel Company Q.S.C. produces a number of intermediate steel products. The production capacity of the plants are: Product (in 000 MT PA) Capacity1 DRI / HBI 2,300* Rebar 1,800* Billets 2,520* Coil 240 Total 6,860 1 Production capacity reflect IQ's share in the respective entities The segment's primary raw material is oxide pellets and scraps. * Note: Based on the recent decision to mothball certain facilities of Qatar Steel, wef 01 April 2020, the name plate capacities have resized with current target capacities at: DRI/ HBI: 1,500k MT; Billets: 1,000k MT; Rebars: 1,100k MT per annum (incl. 300k 35 MT Rebars from UAE ops). Industries Qatar, IR Presentation, 1Q-22#36CLASSIFICATION: CO NON-CONFIDENTIAL 1Q-22 results: Steel Analysis of production & selling prices Production: Production increased by 20% compared to 1Q-21, as the segment restarted DR-2 facility during 1Q-22, as against DR-1 which was operational until the end of 2021. DR-2 has a production capacity of 1,500k MT's per annum compared to DR-1 that has an annual capacity of 800k MT's per annum; Production volumes increased by 33% during 1Q-22 in comparison to 4Q-21, as Qatar Steel decides to switch mothballing of DR facilities by restarting a DR facility with larger capacity. Selling Prices: improved by 18% versus 1Q-21, amid increase in demand underpinned by elevated construction activity carried forward from latter part of 2020, coupled with higher raw material costs internationally.; Prices declined during 1Q-22 by 4% compared to the 4Q-21, on the back on lower steel prices internationally. Production (MT' 000) Selling prices ($/MT) +33% +20% -4% +18% 932 781 694 702 673 779 779 777 700 571 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 36 Industries Qatar, IR Presentation, 1Q-22#37CLASSIFICATION: CO NON-CONFIDENTIAL ☐ 1Q-22 results: Steel Analysis of segment revenue & net profit Revenue: QR 1.30 billion, up by 6% on 1Q-21 amid increase in selling prices (+18%), offset by decline in sales volumes (-10%). Decline in sales volumes was mainly linked lower billet sales made during 1Q-22; ■ Revenue increased by 34% during 1Q-22 compared to 4Q-21 due to higher sales volumes (+39%) amid additional DR sales. This was partially offset by lowered selling prices (-4%). Net Profit: Net profit of QR 261 million for 1Q-22 with 1% growth compared 1Q-21, primarily due to growth in revenues, offset by higher operating cost. ■ Profitability improved by 199% during 1Q-22 compared to 4Q-21, due to higher revenues and higher contributions from Foulath Holdings in form of share of results which grew by 130% versus 4Q-21. Revenue (QR' billion) +34% +6% Net profit (QR' million) 259 237 1.30 1.23 1.00 0.97 0.70 +1% 133 48 87 +199% 261 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 37 Industries Qatar, IR Presentation, 1Q-22#3838 -16 CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Steel Analysis of segment EBITDA margins EBITDA margins recovered following segment's mothballing decision -1% -2% 71 13% 104 16% 300 24% 880 280 173 28% 24% 25% 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 128 EBITDA (QR 'millions) EBITDA margins (%) Industries Qatar, IR Presentation, 1Q-22 13% 313#39CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Steel ☐ Geographical analysis of segment revenue Starting from 2Q-20, the Group decided to temporarily resize capacity of domestic operations within the Steel segment to 0.8 million MT per annum of rebar (applicable to Qatar Operations) with an intent to primarily cater local sector demand, amid higher competition and declining margins internationally. However, due to the improvement in the international prices, the segment was also able to sell some of the quantities outside the domestic market. The segment restarted DR-2 facility during 1Q-22, as against DR-1 which was operational until the end of 2021. DR-2 has a production capacity of 1,500k MT's per annum of DR compared to DR-1 that has an annual capacity of 800k MT's per annum. Switch in mothballing of facilities would provide an opportunity of approximately 400k MT's of DR per annum to be sold directly in the market. 1Q-22 Segment Revenue (%) 40% 19% 0 1Q-21 Segment Revenue (%) 29% 37% 8% 33% Asia Middle East Qatar Africa 39 Note: The geographic analysis is based on the geographic location of the customer, to whom the sale is actually made by IQ's entities directly or via Sales & Marketing partner. 34% Industries Qatar, IR Presentation, 1Q-22#40CLASSIFICATION: CO - NON-CONFIDENTIAL 1Q-22 results: Steel Rebars (contributed-72% of the segment revenue in 1Q-22) 497 530 547 555 621 704 Key segment products analysis 781 719 724 551 228 235 1Q-20 2Q-20 3Q-20 244 4Q-20 342 307 220 250 356 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 Selling prices remained stable during 1Q-22, after slightly declining during 4Q-21. Sales volumes improved, on account of better plant operating rates. 40 40 406 Billets (contributed -5% of the segment revenue in 1Q-22) 480 511 608 608 646 619 109 99 190 0 0 43 48 48 32 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 1Q-20 Sales of billets remained opportunistic depending on the market conditions and availability of excess billets, where most of the production of billets is used for Rebar production. Sales Volumes (MT '000) Selling price ($/MT) ل Industries Qatar, IR Presentation, 1Q-22#41CLASSIFICATION: CO - NON-CONFIDENTIAL 41 CAPEX & Cash flows (2022F - 2026F) i صناعات قطر Industries Qatar#42CLASSIFICATION: CO - NON-CONFIDENTIAL CAPEX and Cash Flows (2022F - 2026F) Group CAPEX spend of QR 11.1 billion includes: ■ 7); ■ Other CAPEX include turnaround (QR 1.6 bn); ■ Investment projects (QR 3.3 bn). CAPITAL EXPENDITURE (in QR Billion) 2022 2023 2024 2025 2026 Capacity addition in fertilizer segment (QR 4.1 bn in Qafco Capital Spares 0.1 0.0 0.0 0.0 0.0 Catalysts 0.0 0.0 0.0 0.0 0.1 Turnaround CAPEX 0.3 0.7 0.2 0.3 0.2 Investments / PUD 0.9 1.3 0.8 0.7 0.5 0.8 2.0 0.6 0.5 0.3 IT/Technical 0.1 0.0 0.0 0.0 0.0 Other Routine CAPEX 0.1 0.1 0.1 0.1 0.1 Total CAPEX 2.2 4.1 1.9 1.6 1.2 Qapco (Capex of QR 1.6 billion) Operational projects - QR 0.9 billion (Refrigerator machine Qafco-7 replacement, flare improvement etc.); ■ Turnaround / reliability - QR 0.4 billion; ■ NO CAPEX related to PUD / Investments. Qafac (Capex of QR 0.3 billion) ■ Turnaround & annual maintenance - QR 0.1 billion; CASH FLOWS (in QR Billion) 2022 2023 2024 2025 2026 ☐ Other routine CAPEX - QR 0.2 billion; ■ No capacity related CAPEX. Qafco (Capex of QR 8.8 billion) ☐ • Qafco 7 - QR 4.1 billion including capitalized finance costs (QR 2.6 billion of borrowings to finance Qafco 7; 70% of project costs); Investment Projects - QR 3.3 billion (NZLD - QR 0.5 bn; SAP Hana project QR 0.2 bn; Sulphur Recovery Unit - QR 0.2 bn; Repair and replace bulk hall - QR 0.2 bn); - ■ Turnaround related CAPEX - QR 1.0 billion. Qatar Steel (Capex of QR 0.5 billion) ■ Turnaround related CAPEX - 0.2 billion; ■ IT related investments - QR 0.1 billion. Cash Flows: - Operating 4.5 +3.1 +3.9 +4.1 +3.4 - Investing -1.9 -3.8 -1.5 -1.2 -0.8 - Financing 0.4 +1.2 +0.3 +0.1 -0.0 FCFF FCFE 2.3 -1.0 +2.1 +2.6 +2.3 3.6 +2.2 +3.1 +3.2 +2.6 FCFE = FCFF +/- Net Debt - Finance Charges Note: The cash flow & CAPEX figures for the years 2021-25 are based on the 2021 approved budget and business plan, based on the expectations of the market conditions and commodity prices forecasted at the time of finalizing the 2021 budget & business plan. With current market conditions and commodity price trends, the forecasts as disclosed in the above table cannot be relied on with absolute certainty, where, the actual realization of these figures might significantly differ as compared to these projections, subject to the macroeconomic conditions, including, among other factors, business environment, market dynamics, The above forecasts do not include CAPEX relating to the product prices etc. prevailing in that specific year. The Board may defer, new PVC plant recently announced by QVC. delay or cancel projects based on market outlook and economics. 42 Industries Qatar, IR Presentation, 1Q-22#4343 43 CLASSIFICATION: CO - NON-CONFIDENTIAL Dividends and market capitalization i صناعات قطر Industries Qatar#44CLASSIFICATION: CO - NON-CONFIDENTIAL Dividends & Market Capitalization 2003 Payout Ratio (%) Dividend per share 83% 100% 75% 91% 94% 55% 89% 60% 52% 69% 70% 55% 54% 54% 82% 72% 67% 68% 1.10 40% 1.00 0.80 0.85 0.75 0.70 0.50 0.50 0.55 0.60 0.50 0.50 0.35 0.35 0.40 0.40 0.40 0.33 0.20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Market Capitalization (QR billion) QR 115.0 billion 119.0 93.4 108.8 101.6 93.7 81.5 84.7 75.9 73.2 56.0 60.5 59.3 69.6 64.1 62.2 65.8 42.0 39.1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q-22 To date, cash dividends totaling QR 61.4 billion have been distributed, equivalent to QR 10.8 per share; The Company was included on the MSCI Qatar Index in May 2014. 44 Industries Qatar, IR Presentation, 1Q-22#45CLASSIFICATION: CO - NON-CONFIDENTIAL Historical performance (2015-2021) 45 45 i صناعات قطر Industries Qatar#46CLASSIFICATION: CO - NON-CONFIDENTIAL Historical performance (2015-2021) Production (M MT's) CAGR -2% Sales Volumes (M MT's) CAGR +0.1% 17.4 17.2 17.2 17.2 17.2 9.5 9.8 9.4 9.3 9.5 9.5 15.8 15.3 7.9 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Volumes remained steady since 2015 till 2019 and declined in 2020. The decline in production in 2020 was mainly owed to mothballing decision of certain steel facilities, while sales volumes were also affected due to Qafco's temporary gas processing arrangement ▪ Selling prices were influenced by macroeconomic cycles Utilization (%) ☐ Selling Prices (USD / MT) CAGR +4% 597 CAGR -1.1% 103.1 103.1 103.2 102.8 100.7 93.3 96.2 465 406 423 444 385 379 2015 2016 2017 2018 2019 2020 2021 46 Note: CAGR refers to Compounded Annual Growth Rate 2015 2016 2017 2018 2019 2020 2021 Industries Qatar, IR Presentation, 1Q-22#47CLASSIFICATION: CO NON-CONFIDENTIAL Historical performance (2015-2021) Revenue (QR Bn) Net income (QR Bn) CAGR +10% 47 CAGR +4% 16.0 16.3 13.8 14.1 13.7 11.4 20.2 5.0 4.5 3.0 3.3 2.6 1 1.9* 8.1 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Revenue trends moved in line with the selling prices ▪ Movements in revenue together with operating costs affected the net income growth ▪ Cash flow generation for the Group remained robust, despite cyclical profitability. Net Cash (Debt) (QR Bn) under IAS31 Total Assets (QR Bn) CAGR +3% 42.3 35.8 34.9 35.2 37.1 35.9 35.9 III 2015 2016 2017 2018 2019 2020 2021 Note: CAGR refers to Compounded Annual Growth Rate * Normalized profits CAGR +15% 13.1 12.4 9.8 9.8 8.4 6.8 16.0 2015 2016 2017 2018 2019 2020 2021 Industries Qatar, IR Presentation, 1Q-22#4848 44 CLASSIFICATION: CO - NON-CONFIDENTIAL Governance Structure i صناعات قطر Industries Qatar#49CLASSIFICATION: CO - NON-CONFIDENTIAL Governance Structure • Board Structure IQ Board of Directors consists of eight (8) Directors, of whom seven (7) were appointed by the Special Shareholder, which is QatarEnergy and one (1) by General Retirement and Social Insurance Authority (GRSIA). QatarEnergy & GRSIA appoints only qualified and eligible Board Directors who are sufficiently experienced to perform their duties effectively in the best interest of the Company and dedicated to achieving its goals and objectives. Governance and Compliance . IQ is firmly committed to implementing the principles of good governance set out in the Governance Code for Companies Listed on the Main Market issued by Qatar Financial Markets Authority (QFMA), that are consistent with the provisions of the Company's AoA. • The Board of Directors always ensures that an organizational framework, that is consistent with the legal and institutional framework of the listed companies, is in place at the Company level. This is achieved through a process of reviewing and updating governance implementation whenever required. • Board Committees The Board of Directors established Board Committees and Special Committees to carry out specific tasks. The Board remains liable for all the powers and authorities so delegated. Currently, Board Committees are Audit Committee and Remuneration Committee. Authorities . No one person in the Company has unfettered powers of decision. Decision-making process is always done in accordance with the Company's Manual of Authorities and the relevant regulations. 49 49 Industries Qatar, IR Presentation, 1Q-22#50CLASSIFICATION: CO - NON-CONFIDENTIAL Governance Structure Remuneration Board of Directors • The Company has developed a periodically revisited remuneration policy for Board members. The policy has fixed component for Board membership and attending meetings and performance-related variable component. The proposed remuneration of Board members shall be presented to the General Assembly for approval. Executive Management All financial, administrative and head office services are provided by resources from QatarEnergy under a service-level agreement. Accordingly, the salary of the Company's Managing Director, who represents the Executive Management of Industries Qatar, is determined and approved by the Company's Board of Directors. IQ Managing Director do not receive remuneration in his capacity. Shareholders rights • The Company's Articles of Associations provide for the rights of shareholders, particularly the rights to receive dividends, attend the General Assembly and participate in its deliberations and vote on decisions, tag along rights as well as the right to access information and request it with no harm to the Company's interests. 50 • Disclosure and Transparency The Board ensures that all disclosures are made in accordance with the requirements set by regulatory authorities, and that accurate, complete and non- misleading information is provided to all shareholders in an equitable manner. Company's control system • The Company adopted an internal control system that consists of policies and operating procedures for risk management, internal and external audit, monitoring Company's compliance with the relevant regulations. Clear lines of self-control, and responsibility accountability throughout the Company are therefore set. The internal control framework is overseen by the senior Executive Management, the Audit Committee and the Board of Directors. Industries Qatar, IR Presentation, 1Q-22#51CLASSIFICATION: CO - NON-CONFIDENTIAL 51 Sales and Marketing i صناعات قطر Industries Qatar#52CLASSIFICATION: CO - NON-CONFIDENTIAL • Sales and Marketing Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C. ("Muntajat”), a wholly-owned company of the government of the State of Qatar, has the exclusive rights to purchase, market, sell and distribute the State's production of Petrochemical and Fertilizer regulated products. Marketing and distribution of Steel Products have been shifted to Muntajat in early 2018 after showing positive benefits to the other segments. Muntajat integration with QatarEnergy completed during 2020, only related to the operational level, where the marketing team would still be independently managed, hence, this integration will not have any impacts on Industries Qatar. Qatar Steel's marketing activities has now moved back to Qatar Steel with effect from 1st September 2020, in line with the new operational strategy, where there will be very limited international component. 52 52 Industries Qatar, IR Presentation, 1Q-22#53For further information, Industries Qatar can be contacted as follows: Telephone: (974) 4013 2080 Fax: (974) 4013 9750 Email: [email protected] or iq@ qatarenergy.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.iq.com.qa for the latest information, publications, press releases and presentations about Industries Qatar and group companies. 53 Industries Qatar, IR Presentation, 1Q-22