September OCP Group Presentation

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1 September 2014 OCP Group Presentation

2 Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU ACKNOWLEDGE AND AGREE TO THE FOLLOWING: This presentation and its contents are confidential and proprietary to OCP S.A. and no part of it or its subject matter may be reproduced, redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person's professional advisers) or published in whole or in part for any purpose without the prior consent of OCP S.A., or its agents or representatives. If this presentation has been received in error then it must be returned immediately. This presentation has been prepared by OCP S.A., is only for discussion purposes, may be amended and supplemented and may not be relied upon for the purposes of entering into any transaction. The information contained in this presentation has not been independently verified by any agent or representative of OCP S.A. and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither OCP S.A. nor any of its agents or representatives is under any obligation to update or keep current the information contained in this document or in the presentation to which it relates and any opinions expressed in them is subject to change without notice. None of OCP S.A. or any of its respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection with this presentation. This presentation is not made to or directed at the public in the Kingdom of Morocco. This presentation and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States (within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")). The securities discussed in this presentation have not been and will not be registered under the Securities Act and may not be offered or sold in the United States except to QIBs, as defined in Rule 144A, in reliance on Rule 144A or another exemption from, or transaction not subject to, the registration requirements of the Securities Act. No representation can be made as to the availability of the exemption provided by Rule 144A for re-sales of any securities offered by OCP S.A. Any failure to comply with the foregoing restrictions may constitute a violation of U.S. Securities Laws. This presentation is being communicated in the United Kingdom only to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is only directed at relevant persons and any investment or investment activity to which the presentation relates is only available to relevant persons or will be engaged in only with relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents. The recipients of this presentation should not base any behaviour in relation to qualifying investments or relevant products (as defined in the Financial Services and Markets Act 2000 ("FSMA") and the Code of Market Conduct made pursuant to FSMA) which would amount to market abuse for the purposes of FSMA on the information in this presentation until after the information has been made generally available. Nor should the recipient use the information in this presentation in any way which would constitute "market abuse". This document is not a prospectus for any securities. Investors should only subscribe for any securities on the basis of information in a relevant prospectus and term sheet, and not on the basis of any information provided herein. This document does not disclose all the risks and other significant issues related to an investment in any securities/transaction. Prior to transacting, potential investors should ensure that they fully understand the terms of any securities/transaction and any applicable risks. No action has been taken or will be taken that would permit a public offering of any securities in any jurisdiction in which action for that purpose is required. No offers, sales, resales or delivery of any securities or distribution of any offering material relating to any such securities may be made in or from any jurisdiction except in circumstances which will result in compliance with any applicable laws and regulations. Before purchasing any securities, you should consider the suitability of the transaction to your particular circumstances and independently review (with your professional advisers as necessary) the specific financial risks as well as the legal, regulatory, credit, tax, accounting and other consequences. Certain analysis is presented herein and is intended solely for purposes of indicating a range of outcomes that may result from changes in market parameters. It is not intended to suggest that any outcome is more likely than another, and it does not include all possible outcomes or the range of possible outcomes, one of which may be that the investment value declines to zero. This presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipates", "believes", "estimates", "expects", "aims", "continues", "intends", "may", "plans", "considers", "projects", "should" or "will", or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding OCP S.A's intentions, beliefs or current expectations concerning, amongst other things, results of operations, financial positions, prospects, growth, strategies and expectations of the Moroccan phosphate industry. By their nature, forward looking statements involve risk and uncertainty, because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance, and the actual results, performance, achievements or industry results of OCP S.A.'s and its group's operations, results of operations, financial position and the development of the markets and the industry in which they operate or are likely to operate and their respective operations may, and often do, differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the operations, results of operations, financial position and the development of the markets and the industry in which OCP S.A. and its group operates are consistent with the forward looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, changes in regulation and currency fluctuations. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document reflect OCP S.A.'s and its group's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to OCP S.A.'s financial position, prospectus, operations, results of operations, growth, strategy and expectations of the Moroccan phosphate industry. Any forward-looking statement speaks only as of the date on which it is made. New factors will emerge in the future, and it is not possible for OCP S.A. to predict which factors they will be. In addition, OCP S.A. cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forwardlooking statements. 1

Deep industry knowledge backed by close to a century of phosphate production

offices in Brazil and Argentina 2013 2014 A global player present on 5

of the Safi chemical platform 2008 JV with DuPont de Nemours Creation of OCP

1932 1965 1976 1980 1984 Launch of Benguerir site Launch of capital

3 Deep industry knowledge backed by close to a century of phosphate production Launch of the Jorf Lasfar chemical platform Opening of rep. offices in Brazil and Argentina A global player present on 5 continents with 22,030 employees Acquisition of Phosboucraa Launch of the Safi chemical platform 2008 JV with DuPont de Nemours Creation of OCP as a Moroccan State office 1920 Start of mining operations in Khouribga Launch of Benguerir site Launch of capital expenditure programme JV with Jacobs Engineering Launch of Youssoufia site Source: Company information. 2

4 Exclusive access to the largest phosphate rock reserves globally Global Phosphate Rock Reserve Estimates Exclusive access to ~75% of currently known global phosphate reserves >10x larger than second largest base Economically exploitable phosphate reserves equivalent to several hundred years of global consumption * Global Reserves 67 Finland Russia 1.3 bn tonnes United States 1.4 Canada Peru 0.8 Brazil 0.3 Morocco 50 Senegal 0.2 Algeria 2.2 Israel 0.2 Jordan 1.5 South Africa 1.5 Syria 1.8 Iraq 0.5 KSA 0.8 China 3.7 Australia 0.5 Source: USGS, January * At current global consumption levels. 3

5 Low cost position supports profitability throughout cycles High-quality phosphate rock reserves minimise processing and production costs The slurry pipeline between Khouribga and Jorf Lasfar is in its pre-operational testing phase and is expected to further enhance OCP s cost advantage post-h Phosphate Rock Export Cash Costs Cash cost Mine to plant/port US$ per metric tonne of product Fertiliser Production Cash Costs (DAP) Cash cost Mine to plant/port US$ per metric tonne of product Price band of past 3 years Price band of past 3 years 0 4,000 8,000 12,000 16,000 20,000 OCP Rest of World 000 metric tonne of production 0 10,000 20,000 30,000 OCP 40,000 JVs OCP 1 Integrated Players Non-Integrated Players 000 metric tonne of production Source: CRU Backward integrated into phosphate rock. 4

6 A leading global fertiliser player and #1 in phosphate rock and processed phosphates 2012 Major Global Phosphate Players (mtpa) 1 27,1 4,3 13,2 3,9 JPMC 7,9 6,8 6,4 6,1 1,7 2,0 1,9 17FEB ,5 17FEB ,0 3,1 GCT 1,0 GCT 2,6 0,7 GECOPHAM 1,8 JPMC 0,4 Phosphate Rock Processed Phosphates Source: Companies annual reports, presentations and websites, IFA. Note: 2013 average MAD / USD exchange rate: Phosphate rock 2012 production in million tonnes. Processed phosphates 2012 production in P 2 O 5 equivalent million tonnes, includes Phosphoric Acid, DAP, MAP and TSP. 5

7 A unique strategic presence throughout the entire phosphate value chain Segment Mining Chemicals Value Chain Integration Rock Phosphoric Acid Fertilisers 2012 Global Trade Volumes Market Share 32% 43% 19% mt mt P 2 O 5 mt DAP/MAP/TSP 2012 Production Volumes #1 #1 #2 27,1 13,2 7,9 6,8 6,4 4,2 3,9 2,0 1,6 1,0 8,3 4,8 2,0 1,8 1,8 OCP Mosaic Phosagro PCS JPMC OCP Mosaic PCS Phosagro GCT Mosaic OCP Phos agro Euro Chem Ma'aden Source: IFA, Company information and publicly available data of competitors. 6

8 Strong international footprint and major exporter to key markets OCP is well-positioned to serve a global customer base at short notice % of Global Phosphate Imports Sourced from OCP 1 OCP s international footprint Serves all major markets in the northern and southern hemisphere Accounts for a significant share of imports in many regions OCP presence Upcoming OCP presence (Planned representation offices) Trading offices North America 47% South America Europe 29% Africa and West Asia 34% 39% South/West Asia 25% East Asia 11% Oceania 20% Source: IFA. 1. In 2012, based on P 2 O 5 volumes traded. 7

9 Strong long-term demand fundamentals Global Population is Steadily Increasing Global Fertiliser Demand has Grown Over the Long-Term bn ,9 7,7 8,4 9,0 9, E 2030E 2040E 2050E Africa Americas Asia Europe Oceania Available Arable Land per Capita is Declining Mt nutrients Phosphate 2.0% CAGR 1 Potash 3.7% CAGR 1 0,3 0,2 0,1 0,23 0,21 0,20 0,19 0, Disintegration of USSR Global Economic Crisis Nitrogen 2.3% CAGR 1 0, E 2030E 2040E 2050E 80% increase in global crop production required within next 40 years Agriculture yield improvement through the use of fertilisers is the major driver to address the imbalance between food demand and supply Nitrogen Potash Phosphate 2014E Source: FAO, IFA. 1. Long-term CAGR based on estimated production volumes in 1961 and 2014E. 8

10 MOROCCO Investments to strengthen leadership position and increase production flexibility 0 100km Northern axis: Casablanca Casablanca ATLANTIC OCEAN Jorf Lasfar Khouribga Safi (21,000) Safi Ben Guerir Youssoufia (4,800) Central axis: (3,800) Marrakech Agadir Capital Expenditure Programme Expanding phosphate rock production by ~20mt in Khouribga and Ben Guerir Development of three mines Construction of three beneficiation plants Two slurry pipelines to transport phosphate rock from Khourigba to Jorf Lasfar (234km length and annual capacity of 35mt) Gantour to Safi (155km length and annual capacity of 35mt) Expanding fertiliser and phosphoric acid production capacity at the Jorf Phosphate Hub Constructed two granulation plants with 1.7mt combined annual production Laayoune Southern axis: ALGERIA capacity Constructing four fully integrated fertiliser production units (expected to become operational starting 2014 through to 2016) o Each of these units are expected to have 1mt annual fertiliser production capacity Ports Mining sites Bou Craa (2,600) Chemical plants Slurry pipeline Railway Conveyor o Potentially six additional units in accordance with market demand Expanding port and storage facilities and water-related infrastructure to accommodate such increased production (xx) Capacity in thousand tonnes Capacity expansion and increased efficiency of vertically-integrated upstream, midstream and downstream operations to maintain OCP s position as a leading phosphate producer and increase its product flexibility Source: Company information. 9

11 Increased capacity to further enhance competitive positioning OCP is contractually committed to its expansion program until 2016 and has significant flexibility to continue expanding in line with expected growth in global demand Mtpa Planned Capacity Expansion by Products Mtpa P 2 O 5 Mtpa equiv. DAP 60 52, ,2 38, ,7 6,5 9, ,4 11,4 17, A 2016E 2025E 2013A 2016E 2025E 2013A 2016E 2025E Phosphate Rock Phosphoric Acid Phosphate-based Fertilisers I. Scale effect II. III. Slurry pipeline Production optimisation and flexibility Improved cash cost position to further increase profitability over the medium- to long-term Source: Company information. 10

EARNINGS & PERFORMANCE OVERVIEW

EARNINGS & PERFORMANCE OVERVIEW OCP Reports Earnings for Fourth Quarter and Full Year 2016 CASABLANCA - Morocco, 23 rd March, 2017 OCP S.A. ( OCP or the Group ), a global leader in the fertilizer industry, today reported results for