II Congreso sobre Fertilización

Transcription

1 II Congreso sobre Fertilización Update on OCP developments and overview of the market Madrid September 26 th, 2018

2 AGENDA Quiénes somos? Overview of the market on the short term OCP in the European and the Spanish market 2

3 OCP AT A GLANCE #1 Phosphate producer #1 Phosphates producer/exporter Exclusive access to 70% of proven reserves worldwide* Most competitive phosphate rock cost position 31% Global trade market share** 43% North America 37% Latin America 69% *** Africa 37% Europe 24% South Asia East Asia 13% Oceania $5.0bn Revenues (2017) Turnover: USD ~5.0 billion EBITDA: USD ~1.3 billion Employees: ~21,000 $21bn Investment ( ) Doubling of mining capacity Tripling of fertilizer production capacity Massive cost reduction through value chain optimization * Source USGS; ** 2017, ** IFA 2017 statistics (Africa is including NPK s) 3

4 OCP IS AMONG THE LARGEST FERTILIZER COMPANIES IN THE WORLD AND THE LARGEST PHOSPHATE PURE PLAYER Top Global Largest P-Rock Capacity 2017, Million tons Top 10 Largest Global Capacity 2017, Million tons nutrients # N P2O5 K2O # OCP Mosaic YTH Nutrien JPMC MaadenPhosagro Kailin GCT 0 Nutrien Mosaic OCP Yara CF Ind.Belarus.Uralkali ICL K+S PhosAgro OCP is the leader in the phosphate industry and the 3 rd largest fertilizer company 1. Mosaic figures include Vale s capacities Source : Companies annual reports, presentations and websites, IFA Capacities. 4

5 OCP MINING AND CHEMICAL ASSETS IN MOROCCO Moroccan-based chemical JVs EMAPHOS/ JV OCP PRAYON BUDENHEIM (1998) Purified Acid: 140 kt P2O5 IMACID/ JV OCP ZUARI - TATA (1999) Phosphoric Acid: 430 kt P 2 O5 PMP/ JV OCP - FAUJI (1986) Phosphoric Acid: 375 kt P 2 O5 OCP phosphate deposits* Extraction and beneficiation (Mining) Chemical Hubs Ports *Sources: US Geological Survey (USGS), International Fertilizer Development Center (IFDC) Slurry pipeline Raw Mat & ACP Transport Axes Conveyor belt

6 OCP HAS AN EXCLUSIVE ACCESS TO THE LARGEST PHOSPHATE ROCK RESERVES GLOBALLY 6

7 OVER THE LAST DECADE, OCP HAS STRENGTHENED ITS LEADERSHIP THANKS TO ITS SIGNIFICANT INVESTMENT PROGRAM OCP has successfully delivered Phase 1 of its CAPEX program while strengthening its export market shares in all segments (1) ROCK CAPACITY TRANSPORT FERTILIZER CAPACITY MT MT Rock 45% 37% +47% MT X Phosphoric Acid 46% 46% x MT 4 Fertilizers 11% 22% Source: IFA (1) Data for 2017 cover the first 9 months only 7

8 In Ktons of products OCP GROUP IS CONTINUOUSLY INNOVATING TO PRODUCE CUSTOMIZED FERTILIZERS THAT ARE TAILORED TO FARMERS NEEDS Evolution of OCP specialty products production And more to come in the future 40 new formulas in the last 6 years E NP-S NP NPS S NPS S standard NPS S Amine NPS S NPS S NPK NPK NPK NPK S NPK NPK NPK NPK Micronutriments NPK S-0.1B-0.5Zn NPK S-1B NPK S-1B NPK S-1B NPK S NPK MgO NPS S 0.5Zn TAP NPS Zn NPS S 1Zn NPS S 1Zn TAP NPS 19-38_7S 0,1Zn MAP Zn Feeds DCP MDCP Engrais solubles MAP Feeds NPK Water Soluble Fertilizers NP-S Micronutrients Further expansion of new product portfolio with the introduction in 2019 of a new line of sulfur enhanced fertilizers Source: OCP

9 Selfsufficiency while meeting our sustainability policy commitments Wave I program A Energy self-sufficiency Jorf Port Capacity + 20 MT footprint WAVE I: A COMPLETE RECONFIGURATION OF OCP S VALUE CHAIN VIA SIGNIFICANT CAPACITY EXTENSIONS FROM THE MINE TO THE PORT Casablanca CO 2 STEP El Jadida 58% 70% 95% Desalination MP 3&4, & JVs 4 ODI ACP/ Fertiliz er Slurry pipeline Line E & 2 fertilizer lines Desalinati on Train Substation Head/Ter m. station + 38 MT Washing plant Water pipe 9 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER STEP Khouribga Mine STEP Beni Amir Dam Drying Beni Idir MEA COZ Daoui Sidi Chennane Ait Massoud Dam 30 km C B No more additional natural water consumption 1. Non-conventional water projects 25 MM 3 from desalination plants 10 MM 3 from recycling waste water 2. Optimizing water consumption 80% of the water used in the beneficiation process is recycled 3 Mm 3 /y of water saved thanks to the slurry pipeline 25% in water savings in the new fertilizer plants Preserving the phosphate resources New extraction techniques at the mines Preserving the phosphate resources Land rehabilitation

10 KHOURIBGA Merah washing plant 10 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

11 JORF LASFAR JFC II JFC III JFC I Africa Fertilizer Complex Pipeline Terminal station : Arrival station of the pipeline between Khouribga and Jorf Lasfar JFC I JFC IV : 4 integrated fertilizers units Ligne E : Phosphoric acid unit Desalination : Seawater desalination unit Drying : Drying unit of Phosphate rock pulp 11 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

12 PORT CAPACITY BEFORE UPGRADE Berth 1 Fertilizers Berth 2 Fertilizers Berths 4, 5, 6 and 7 Sulfur, Ammonia and Acid berths Existing before 2015 Not used 12 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

13 PORT CAPACITY AFTER UPGRADE Jorf Lasfar port : 6 berths dedicated for OCP s activities Berth 1 upgrade : Additional 2 Piers : 255m + 180m 2 additional loaders : 2000T/H each Berth 2 upgrade : Additional 2 Piers : 220m + 180m 2 additional loaders : 2000T/H each 13 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

14 AGENDA Quiénes somos? Overview of the market on the short term OCP in the European and the Spanish market 14

15 MARKET ABSORBED +6 MT OF NEW FERTILIZER CAPACITIES COMMISSIONED OVER THE LAST 3 YEARS Supply Demand increase 2014/ /17 Delta Demand (exl. China, in Mt P 2 O 5 ) Delta Supply (in Mt P 2 O 5 ) 3,4 0,4 1,6 42% of demand growth 1,6 1,1 0,5 All Excl. Africa Source: CRU, OCP for Africa figures Africa OCP Capacity Other Capacities Capacity closure/ reduction Ballance A strong demand growth over the last 3 years was not completely covered by new capacities and had to be supplied from additional Chinese exports

16 MAIN DEMAND DRIVERS DURING 9M 2018 Demand has been pulled by the strong Indian anticipation Solid fundamentals (crops stock-to-use ratios lower in 17/18) US: Tight supply and strong demand have pulled significantly imports Europe: bad weather condition affected demand (first cold in West in 1Q; Europe, then drought in Eastern Europe in 2Q) Fragile macro-economic context (tariff trade war & protectionism, FX) Higher Raw materials Brazil: Fundamentals are very positive (soybean prices, weaker Real supportive for exports ) However, during 9M Brazil imports lags Vs Catch-up started this summer and expected to continue till year end Africa: Consolidated growth India & Pakistan: Strong demand pulled by higher subsidy, good monsoon and lower local production

17 ON THE SUPPLY/DEMAND SIDE, ADDITIONAL CAPACITIES WERE OFFSET BY CLOSURES AND EXPORTS REDUCTIONS Phosphate S/D Incremental Changes*, H (MT product) Phosphate S/D Incremental Changes*, H (MT product) 0,2 0,2 0,1 0,3 0,4 0,6 0,6 0,5 0,6 0,4 0,6 0,4 0,2 0,0 0,2 OCP Ma aden Russians Chinese Exports Plant City Idling Others Incremental Supply Incr. Demand OCP Ma aden Russians Chinese Exports Plant Miscellanous Incr. City Supply Idling Incr. Demand Source: estimates OCP, eq DAP/MAP/NPS/TSP, companies websites

18 AGENDA Quiénes somos? Overview of the market on the short term OCP in the European and the Spanish market

19 P 2 O 5 CONSUMPTION IN WESTERN EUROPE WITNESSED GROWTH, STAGNATION AND THEN DECLINE P 2 O 5 consumption evolution in Europe, Mt 9 8 Growth Maturity Dependence Environmental concerns Decline Rationalization Recycling Higher volatility risk aversion, last minute purchasing decisions Climate change < Lower quotas and subsidies End of communism 2003: decoupled subsidies West Europe East Europe CAP creation 2013: Reduction in large farms subsidies Source: IFA, CRU, Press Review, European Commission, OCP analysis 19 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

20 OCP STRATEGY IN EUROPE: A STRONG BASE OF PARTNERS AND PRODUCT PORTFOLIO Customer portfolio Product Portfolio OCP customer Portfolio in Europe Product Portfolio diversification, in kt Farm Coop Producer Trader Distributer 6% 19% % E NPS NPK TSP Reduce Traders weight Better market knowledge and final consumer insights Differentiation with new products (NPK) and adapted ones (DAP euro, TSP Afcome) Field trials in Germany, France, Bulgaria 20 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

21 MOROCCO & SPAIN COMMERCIAL PARTNERSHIPS REFLECTED IN OCP BUSINESS Morocco Spain Trade balance OCP Business Evolution Natural commercial partners P 2 O 5 in all forms In KT % 251 (Phosphate rock, phosphoric acid & fertilizers) Spain 30,0% 21,0% Rest of EU Others Spain France 29,0% 21,0% Others Raw materials Procurement In KT % Moroccan exports (in value) Source: Morocco Office des changes 2017 Moroccan imports (in value) Sulfur Potash Ammonia Sulfuric Acid 21 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

22 IN PARTICULAR, LOGISTICAL PROXIMITY AND PORTFOLIO FLEXIBILITY ARE KEY DRIVERS OCP sales by product (kt Product) Freight leadtime % 45% 50% 2 days % % % 30% 1 day % 27% 44% 49% 54% ACIDS FERTILIZERS ROCK x OCP Market share in total imports 22 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

23 OCP SUPPORTED AND WILL CONTINUE TO SUPPORT WIDELY THE SPANISH AGRICULTURE OCP sales by customers OCP fertilizers sales by category of customers (kt of product) GALICIA ASTURIAS GIJON/AVILES BILBAO CANTABRIA PAIS VASCO PASAJES 272 6% 290 3% NAVARRA LA RIOJA 58% CASTILLA-LEON ARAGON CATALUNA TARAGONNE 56% MADRID CASTELLON Setubal ESTREMADURA CASTILLA-LA MANCHA VALENCIA SAGUNTO VALENCIA 80 39% 37% 37% 39% HUELVA SEVILLE ANDALUCIA MURCI A MALAGA MOTRIL CARTAGENA ALICANTE ROCK ACID 23% Wholesalers Producers & Wholesalers Traders 2017 FERTILIZERS Less traders favored a better insights on our customers needs 23 OCP II CONGRESSO SOBRE FERTILIZACION - ACEFER

24 Gracias por su atención