2016 ANNUAL REPORT 2016

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OCP S.A. Head office : 2 - 4 , rue Al Abtal- - Hay Erraha 20200 - Casablanca, Morocco OCP GROUP - ANNUAL REPORT OCP GROUP - ANNUAL www.ocpgroup.ma Annual Report OCP His Majesty King Mohammed VI May God Glorify Him 2 Annual Report OCP 01

Interview with the Chairman & CEO OCP, COMMITTED 02 TO GLOBAL 2016 AGRICULTURE at a glance 03 As a key player in the fertilizer market, OCP actively strives to make progress OCP, committed and growth sustainable and continue to resilient and sustainable agriculture to create value for our clients, employees, partners and the neighbouring communities. 04

Leveraging This strategic approach is crucial strengths to OCP Group's ability to maintain to achieve solid fundamentals in a highly volatile results context and consolidate our leadership 05 through strong market positions. Focusing It also allows our Group to e ectively on African agricultural respond to an increasing international transformation demand for phosphate products. 06

A Group mobilized 07 for the climate 4 5 Enduring value through responsible performance Annual Report OCP Annual Report OCP Interview with 1 the Chairman & CEO

INTERVIEW WITH MOSTAFA TERRAB CHAIRMAN & CHIEF EXECUTIVE OFFICER OCP continues to increase The organization of the COP22 reality, specifically the growth Our strong resilience innovation and diversification. in November in Marrakesh in world population, the reduction Is the development of specialty represented an excellent of arable land and the growing through cycles enabled products with high added value opportunity for exchanging about need for fertilizers. All of them are intended to serve the Group’s new models of positive economics. indicators that encourage us to ambitions for Africa ? This occasion allowed us to show expect a sustained demand thanks a virtuous path towards how our Group combines economic to a stable agricultural activity Strongly committed to South- performance and protection and reduced raw material prices. South cooperation development, growth and innovation of resources through tangible we put Africa at the heart of our achievements. We presented seven Due to our new capacities and the growth plan using a personalized for our Group. innovative COP22 labeled projects expansion of our product range, approach, which led to the creation which affect the entire Group’s value with packages tailored to the needs of OCP Africa. The newly created chain, from mining to processing all of farmers, our export volumes subsidiary aims at meeting the the way to transportation. increased significantly in 2016: challenge of a structured, efficient the recovery of demand from Latin and sustainable agriculture. I am also thinking of the interactive America, and more specifically We already opened nine offices to and innovative «Climate-Smart from Argentina and Brazil, led to supply the continent with sufficient Agriculture,» developed to an increase in our exports with quantities of fertilizers and provide better address climate change. volumes growing by 0.9 million producers with all the means to This initiative originates from metric tons in 2016, while our succeed access to adapted and a partnership between the exports to Africa rose by 70%, up to affordable products, services How do you assess OCP Group’s in line with our investment program Mohammed VI Polytechnic 1.7 million metric tons. and support, as well as logistical performance in 2016 ? started in 2008 which aims to University and the Climate and financial solutions. We also double our mining capacity and Interactive NGO which aims to We are aiming today to pursue our The Group reported positive implemented key partnerships in triple our processing capacity by strengthen the capacity of African path towards growth and innovation, performance for all our business the most profitable markets, as in 2027. leaders to combat climate change through a co-construction activities. 2016 was full of Ethiopia where we signed a project and to prepare them to take part in approach, in every aspect of our challenges for OCP, characterized 2016 marks a crucial milestone with the government to build a climate negotiations. It also aims business, along with our partners by our strong resilience in a highly in the progress of OCP Group’s world-class fertilizer plant by 2022, to help develop a decision-making and all of our stakeholders. volatile market and by the success industrial transformation with a capacity of 2.5 million metric tool integrating the Climate-smart This ambition is what we are of our strategy mainly focused on program. What conclusions can tons per year, to reach 3.8 million Agriculture approach to reduce bringing forth today as part of the product portfolio value optimization. you draw ? metric tons in the near future. greenhouse gas emissions (the inauguration of Phase II of our This approach enabled us to achieve Other projects implemented this 2016 marked the end of Phase agricultural sector produces nearly industrial transformation program. our objectives and maintain the year include those in Nigeria with I in our industrial development 25% of global emissions) and Its success, which will be shared path towards growth, innovation and significant potential in the short program, completed in line with identify the most urgent issues by all our employees, will enable product diversification. term. our planned goals. Operational in Africa. Since the launch of the us to go a step further in our desire investment was 13,3 billion dirhams Thanks to our leadership position, COP22, the 22nd United Nations project in May 2016, many training to rally all stakeholders in the at year end 2016. This investment we were able to report profitability Framework Conference on Climate workshops were held in Morocco, agricultural sector that share OCP’s resulted in tangible results with an levels as planned despite the Change, was held in Marrakesh in Ethiopia, Ghana, Côte d’Ivoire, vision for resilient, responsible and difficult market environment. increase in our capacities, which November 2016. What role did OCP Nigeria and Kenya. ethical agriculture. While consolidated revenues will reach 12 million metric tons play in COP22 ? recorded a slight drop, our by the end of 2017 as planned. The Do you have anything to say about Climate change is one of the end-year EBITDA margin reached optimized use of our facilities in the Group’s ambitions for the most critical global challenges future ? 30%, remaining among the best Jorf Lasfar has further improved of our times. This issue is of in the industry. Facing a gloomy our fertilizer production capacity. immense importance for every The current outlook ensures market and seasonality effects, The opening of Jorf Fertilizer global citizen and institution. As a adequate and positive profitability OCP Group has been able to build Company II, the second integrated historical player fully committed levels for the Group. Although the on its fundamental assets and fertilizer plant in the Jorf Phosphate to environmental preservation, phosphate market approached its respond effectively to a constantly Hub, is effective since the second we embraced the climate change lowest point in 2016, we have seen changing market. Our continued half of 2016 and is expected to gain issue through a finely defined increased prices in the first 6 growth is supported by our momentum in 2017. 7 environmental strategy and that we quarter of 2016, thanks to increased operational excellence, our cost continue to implement throughout demand in key import markets. reduction policy and the new the years. The slurry pipeline The market will therefore continue capacities that we have developed, construction is of the best examples to be affected by the supply. in terms of reducing greenhouse Industry trends also affect this gas emissions. Annual Report OCP Annual Report OCP 02

2016 at a glance

8 9 Annual Report OCP Annual Report OCP 2016 2 at a glance

HIGHLIGHTS

2016 illustrates a year of growth for OCP, characterized by technological advances, new contracts, consolidated partnerships, new subsidiaries and continued awareness and training programs for farmers. A year during which OCP continued its Industrial LAUNCH OF THE Development Plan in Morocco and internationally, strengthening its presence in Africa INDUSTRIAL and its strategic agility in a context marked by the slowdown in global growth. DEVELOPMENT PROGRAM IN ROYAL INAUGURATION // This investment THE SOUTHERN program was launched by His Majesty King Mohammed VI, and covers the START OF REGIONS* entire phosphate value chain with the implementation of an integrated fertilizer THE JORF production platform with an annual capacity of one million metric tons and capacity FERTILIZER building in treatment and port logistics. COMPANY II

DEVELOPMENT // The operational launch INAUGURATION of the second integrated unit at Jorf Lasfar INAUGURATION (JFC II) is effective from the second half OF THE of 2016, following the launch of the first OF THE AFRICA fertilizer production plant for Africa in 2015 SEAWATER and inaugurated in 2016, with an additional FERTILIZER capacity of one million metric tons of DESALINATION fertilizer annually. This second unit is fully COMPLEX integrated and also has a phosphoric acid PLANT manufacturing unit producing 450,000 metric tons of P2O5 per year and a 1.4 million metric ton sulfuric acid unit. This new plant has ROYAL INAUGURATION // His Majesty King Mohammed VI inaugurated the Africa Fertilizer ROYAL INAUGURATION // His Majesty King a 62 MW thermoelectric plant and storage Complex, a fertilizer production plant which will support the growth of African markets Mohammed VI inaugurated the desalination infrastructure. by providing a continuous and regular supply of fertilizer. Fully integrated, the plant has a plant in Jorf Lasfar: the Group relies on the sulfuric acid unit with a capacity of 1.4 million metric tons per year, a phosphoric acid unit use of non-conventional resources to meet with a capacity of 450, 000 metric tons per year, a fertilizer unit which can produce one million its water needs for the Jorf Lasfar platform. metric tons of DAP equivalent per year, a 62 MW thermoelectric plant and different storage Planned in three phases, the commissioning infrastructures that can accommodate 200,000 metric tons of fertilizer, providing more than of the first desalination unit was effective two months of autonomy. during the first half of 2016. 1Mt fertilizer capacity per year LAUNCH OF DOWNSTREAM DEVELOPMENT // OCP launched drying operations at Jorf Lasfar, designed to treat 3 the rock coming from the Slurry Pipeline 1Mt 25Mm and commissioned the first drying line. fertilizer capacity annual capacity, The Downstream project linked to the per year adaptation of production processes for 10 currently operational the new Slurry Pipeline mode of transport 11 consists in building a filtration, drying and pelletizing plant at the Jorf Lasfar site, for the packaging of phosphate pulp transported from Khouribga by pipeline with the aim of producing 10.5 million metric tons of dry phosphate intended for export.

* Guelmim - Oued Noun, Laâyoune - Sakia El Hamra,

Annual Report OCP Dakhla - Oued Ed Dahab. Annual Report OCP 2016 2 at a glance

HIGHLIGHTS

MARKETS // OCP has had good results in the volume of fertilizer exports totalling 6.6 Mt of products, up by 55% compared to the previous year (4.3 Mt). OCP Group’s differentiation strategy, through an increasingly diversified and tailored specialty product portfolio (fertilizers and livestock supplies), boosted the volume of specialty product (NPS, NPK, DCP, and MCP) sales, COOPERATION which jumped by nearly 50%, from 1.2 million SIGNING OF AN INCREASE IN metric tons in 2015 to nearly 1.7 million AGREEMENT SIGNING OF A metric tons in 2016. The main areas in which AGREEMENT EXPORTS OF in fertilizer exports increased are Latin WITH THE MEMORANDUM OF America, Africa and North America. WITH KRIBHCO FERTILIZERS ETHIOPIAN COOPERATION // OCP and the Ethiopian UNDERSTANDING Ministry of Public Industry signed a strategic IN INDIA AND SPECIALTY GOVERNMENT partnership for the construction of a world- WITH RWANDA class fertilizer plant in Ethiopia in November PRODUCTS 2016. This platform will produce ammonia, urea and fertilizer using local Ethiopian gas and Moroccan phosphate. Production should INVESTMENT // OCP Group and Kribhco, COOPERATION // In October 2016, the begin in 2022, with a capacity of 2.5 million the largest Indian cooperative, finalized Rwandan Ministry of Agriculture and Animal metric tons of fertilizer per year to reach a 50/50 joint venture dedicated to the Resources and OCP signed a memorandum 7Mt 3.8 million metric tons in the near future. construction of an NPK fertilizer production of understanding on an industrial investment of fertilizer produced A capacity of unit at Krishnapatnam in Andhra Pradesh in local blending units for the production in 2016 for an annual production capacity of 1.2 of fertilizers suited to crops and soil. By million metric tons. This alliance will enable strengthening Rwanda’s blending capacity, 2.5Mt a continuous supply of high-quality NPK this «win-win» partnership will provide of fertilizer per fertilizer to Indian farmers. added value for the local population and local year by 2022 farmers and improve crop yields. % An annual increase70 in fertilizer production of exports to Africa 1.2Mt of NPK fertilizer in India

CREATION OCP PROJECTS OF OCP AFRICA IN NIGERIA

OUTREACH // The launch of OCP Africa, a wholly-owned subsidiary of OCP Group, 12 COOPERATION // Under the chairmanship of His Majesty King Mohammed VI and the will contribute to the development and transformation of African agriculture and greater 13 President of Nigeria Muhammadu Buhari, two phosphate and fertilizer agreements were outreach to the continent’s small farmers. OCP Africa intends to use African raw materials signed on Friday, December 2 in Abuja. The first relates to a strategic agreement with and to process them on the continent in order to provide the right fertilizer at the right place, Dangote to build a fertilizer production platform, supplied by Moroccan phosphate and at the right time and at the right price. This strategy has four main components : Nigerian natural gas. The second is a protocol agreement with the Fertilizer Producers agronomy, production, logistics, and marketing & distribution. 2016 was marked by the and Suppliers Association of Nigeria (FEPSAN). This agreement aims to achieve a production opening of nine OCP Africa subsidiaries for a greater outreach with its African clients. volume of 1 million metric tons of NPK per year by 2019 and secure a supply of phosphate fertilizer for Nigerian farmers. Annual Report OCP Annual Report OCP 2016 2 at a glance

HIGHLIGHTS

SIGNATURE WITH SHELL FOR THE OPENING OF NEW CREATION OF THE ACQUISITION REPRESENTATIVE OFFICE OF THE OF THE SHELL OFFICES AND SEVEN COP 22 OMBUDSMAN THIOGRO LABELED SUBSIDIARIES TECHNOLOGY PROJECTS MEDIATION // To maintain good relations with its business environment, the Group PRODUCTS // The Group signed a strategic INTERNATIONAL DEVELOPMENT // OCP sets up in North America, represented by OCP launched the Office of the Ombudsman, agreement with Shell for the acquisition of an impartial body representing neither INNOVATION // OCP Group presented seven innovative projects that have obtained the «COP Research Services LLC. The new subsidiary will strengthen contacts with current and its Shell technology, Thiogro. Implemented the Group nor involved stakeholders and 22» endorsement during the world event which took place from November 7 to 18, 2016 in potential clients and will enable strategic monitoring of the phosphate market and world on the OCP Jorf Lasfar platform, it will designed to provide amicable resolutions Marrakech. These projects cover the Group’s entire value chain, from extraction to processing prices. In Beijing, opening the office through OCP S.A Beijing Representative Office aims to enable sulfur-enriched fertilizer production to disputes, while strictly respecting to transport. Beyond the industrial process, they also drive development in terms of the better identify the needs of the Chinese market. Finally, international expansion continued which promotes sustainable agriculture. principles of confidentiality and impartiality. capacity-building of local territories and populations. The Group also provided a platform for with the creation of SAFTCO in Geneva for trading activities and OCP Support Services Private In addition to supporting the diversification The work of the Ombudsman conforms to discussion and debate about Climate topics and issues, including future challenges such as Limited in the State of Haryana in India. of the Group’s products portfolio, this international standards in the matter and smart agriculture, the 4.0 industry and climate justice. agreement will provide end-users with the enables file investigation following a careful opportunity to increase their crop yields examination of the different parties while while protecting soil health. respecting the realities of a given situation.

LARGEST THREE BOND ISSUE NEW SITES ON THE CERTIFIED BY MOROCCAN FINANCING // The Group issued a bond worth 5 billion dirhams on the A historic bond issue of THE IFA MARKET domestic market, in the form of perpetual subordinated bonds divided into three installments, to fund its Industrial 5 Development Program. The offering was billion dirhams 14 twice oversubscribed and represents the 15 CERTIFICATION // After Safi and Gantour in 2014, the Khouribga, Jorf Lasfar and IFA P&S Certificate largest bond issue to date on the Moroccan Phosboucraa sites obtained the “PROTECT & SUSTAIN” certification issued by the market. of Excellence with International Fertilizer Industry Association (IFA). This international recognition allows the a score above Group to join the circle of 22 P&S certified industrial companies. As part of this certification, six fields of activity were examined: management system, product development and planning, sourcing and contractor management, production, customer supply chains and marketing & commercial aspects. By adopting the 12 P&S principles, the entire phosphate value chain 95% is affected by requirements for product quality and facility safety and security. Annual Report OCP Annual Report OCP 2016 2 at a glance

HIGHLIGHTS

reduction96% in SO emissions 2 4,900 soil samples analyzed IMPLEMENTATION OF THE SULFACID 5TH OCP TECHNOLOGY AGRICULTURAL TO IMPROVE THE CARAVAN ENVIRONMENT // OCP began the SUPPORT FOR FARMERS // The OCP ENVIRONMENTAL implementation of the SULFACID technology IN MOROCCO Agricultural Caravan took place for the fifth consecutive year and visited seven 5,800 on a second sulfuric acid production line at FOOTPRINT Jorf Lasfar, among the five lines planned. cereal- and legume-producing regions farmers In addition, the deployment of this technology over two months, with each leg lasting two benefited from training also started on the Safi site. This process days. A campaign of 4,900 soil analyses was is an innovative solution to reduce the launched and nearly 5,800 farmers received environmental footprint and significantly training in best agricultural practices. reduce sulfur dioxide emissions. It marks a historic turning point where emissions went from values above 600 ppm to values below 15 ppm. In addition to its significant environmental impact, this project improves productivity as stack gases are converted to acid and recovered in production.

AN AGRICULTURAL AN OCP SCHOOL A PARTNERSHIP DEVELOPMENT LAB PILOT AGREEMENT WITH PROGRAM FOR PROJECT IN CÔTE ND THE MOROCCAN 2 PHOSBOUCRAA MADAGASCAR D’IVOIRE ENTREPRENEURSHIP 1,000 AGRICULTURAL farmers CARAVAN NETWORK were beneficiaries COOPERATION // The Group through its foundation organized a cycle of technical TRAINING // The «OCP School Lab» training for the 11 Madagascan agronomist agricultural development pilot program executives within the framework of OCP was launched in Côte d’Ivoire in partnership The 2016 Phosboucraa Agricultural Caravan, Foundation’s Agricultural Development ENTREPRENEURSHIP // OCP Group and the Morocco Entrepreneurship Network signed with the National Centre for Agricultural organized by the Phosboucraa Foundation, Program. The latter is an integral part of the a partnership agreement to provide technical and financial support for 440 project developers Research, the Rural Development Council reached 700 small livestock raisers and agricultural cooperation program launched and create 2,200 jobs by 2018. This partnership is backed by the OCP Entrepreneurship and the Coffee-Cocoa Board. With the aim farmers in the Es Smara and Birgandouz with the Republic of Madagascar’s Ministry Network and is part of efforts by the OCP Foundation to support the development of the of increasing yields and income of small regions. It is part of OCP and its Foundations’ 16 of Agriculture, Livestock and Fisheries. The Moroccan entrepreneurial ecosystem. farmers in strategic African crops, the OCP 16 17 training, which focused on soil fertilization, School Lab visited 16 villages and reached villages involved continued support for the Green Morocco geographic information systems and nearly 1,000 farmers. The latter benefited Plan. For its second edition, this outreach monitoring of fertilizer quality, provided from a package of agricultural services work aims to disseminate effective Madagascan agronomists with the scientific including training in good agricultural agricultural production techniques and and technical capacities required to deploy practices and a mobile laboratory giving develop the camel breeding sector through the cooperation program, which includes farmers access to the latest soil analysis its four phases: genetics, nutrition, health organizing an agricultural caravan and technologies. and development & marketing. elaborating a fertility map in Madagascar. Annual Report OCP Annual Report OCP KEY FIGURES

PHOSPHATE ROCK 20,980 PRODUCTION MARKET SHARE ** EMPLOYEES * 26.9Mt 30% EMPLOYEE BREAKDOWN EXPORTS 7.9Mt

57.3% 31.7% 11% PHOSPHORIC ACID Workers Technicians, Managers and employees supervisors and administrative managers PRODUCTION MARKET SHARE **

(P 0 ) 4.9Mt 2 5 47% EXPORTS Revenues were boosted by a 50% increase (P 0 ) 1.8Mt 2 5 in fertilizer sales.

PHOSPHATE FERTILIZERS PRODUCTION MARKET SHARE ** 42,471 million MAD 7Mt 20% CONSOLIDATED REVENUES***

EXPORTS CONSOLIDATED EBITDA*** NET PROFIT GROUP INVESTMENT*** REVENUES*** (in million MAD) SHARE*** (in million MAD) 6.6Mt (in million MAD) (in million MAD) 47,747 17,659 8,011 19,504 5,077 3,779 14,264 41,436 42,471 11,402 12,777 13,261 The Group recorded strong performance and good profitability levels despite di cult conditions. 18 19

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

* Millions of metric tons ***Figures in IFRS standards ** IFA 2016 Annual Report OCP Annual Report OCP 2016 REVENUE BREAKDOWN BY CATEGORY 2016 REVENUE BREAKDOWN BY REGION MOROCCO PRESENCE

Casablanca ~43% Khouribga Khouribga Jorf Lasfar Youssoufia An integrated Safi ~37% Group throughout Benguerir Gantour the value chain : ~18% 4 mining sites Meskala % Distribution of reserves 50% Phosphate fertilizer Africa in Morocco (%)* 25% 2 processing Laayoune 22% Phosphate rock 17% Latin America ~2% Mining site platforms Boucraa 19% Phosphoric acid Southern Europe Boucraa 14% 4 phosphate ports Slurry Pipeline 9% Other 13% India Conveyor * USGS, January 2017 12% North America Railway Other 11% Processing complex 8% Western Europe Phosphate port

INTERNATIONAL PRESENCE The Group benefits from its geographical 8% diversification and EAST commercial agility ASIA Amsterdam 30% with significant market 46% EUROPE NORTH Engis Paris shares in Africa, North AMERICA Geneva Chicago New York 24% Beijin America, Latin America, etc. Les Roches Istanbul SOUTHWEST Washington ASIA Augusta Morocco 52% Abu Dhabi Gurgaon Senegal AFRICA Benin Paradeep

Ivory Coast Nigeria Ethiopia Ghana 27% Kenya Singapore SOUTH Cameroon AMERICA Rwanda Tanzania Exports to Africa São Paulo Zambia Mozambique 23% OCEANIA increased by 70% this OCP Presence Paranaguã 20 year. 21 OCP market share % Source: IFA 2016 Buenos Aires Based on P2O5 trade volumes including rock, acid, and DAP/ MAP/ TSP - excluding NPK Annual Report OCP Annual Report OCP 03 OCP, committed to resilient and sustainable agriculture

22 23 Annual Report OCP Annual Report OCP OCP, committed to resilient 3 and sustainable agriculture

OCP is the privileged partner of Moroccan agriculture and exports its model Industry leader internationally. The Group works increasingly to apply its know-how and expertise, within Supporting committed the framework of a participatory approach, and through several mechanisms and high- global food performance programs to develop agricultural to developing activities and promote entrepreneurship and security innovation among farmers, both in Morocco global and throughout the African continent. Because it provides elements essential to soil fertility, plant growth and A GLOBAL PLAYER agriculture increased agricultural yields, OCP contributes to feeding a growing OCP Group is a key player in the phosphate global population, in an cost-effective and phosphate derivatives market. It is and sustainable manner. Throughout OCP is a major contributor to global the main supplier of this mineral essential its rich history spanning almost a to the agricultural fertilizer industry and century, the Group has seen the world agriculture and an African company an agriculture that is capable of feeding population grow swiftly, from less than the planet, while respecting lands and two billion in 1920 to more than seven committed to developing the agricultural communities. Because of this responsibility, billion today, and approximately nine the Group is committed to a proactive billion by 2050. This population growth ecosystem on the continent. The Group strategy based on anticipation, adaptability requires a 77% increase in global and knowledge of its clients and their need agricultural production, just to meet is the top producer and exporter of for customized services. Also, based on world population food demands. To this experience stretching over nearly a century end, it is imperative to triple crop yields phosphates in all its forms with 28%* of the and the largest phosphate reserves in the OCP contributes by 2050 and double phosphate nutrient world*, OCP Group works actively to make to feeding a consumption. Fertilizer production is global market share and is a key participant progress and growth sustainable and continue therefore crucial. in the fertilizer market. to create value for its clients, employees, growing global partners and the communities surrounding it. population in a With this in mind, the Group launched This strategic approach enables the Group to an industrial processing strategy in be present throughout the value chain : cost-effective 2008, requiring an investment of With almost a century of history and it extracts, processes and markets phosphate nearly 200 billion dirhams. From and its derivatives in a historic commitment and sustainable mining the rock to transporting it exclusive access to the largest phosphate to support small farmers, protect the manner. and processing it into fertilizer, the environment and energize the market. aim of this approach is to promote reserves in the world**, OCP is a major sustainable agriculture by doubling the Group’s mining capacity and tripling contributor to agricultural development, its processing capacity by 2027, while reducing its environmental footprint. providing innovative responses to major OCP fertilizers issues like agricultural productivity, the for precision use of fertilizers to perfectly suit the needs of different types of soils & crops, and an agriculture Increasing agricultural productivity and unfailing commitment to preserve the the potential of farmers is not limited only environment and natural ecosystems. to distributing fertilizers. It also involves creatingintegrated solutions that respond to the challenges faced by the small farmers in the world. In addition to technological solutions for precision agriculture, optimizing the management of plots by adjusting intake to be closest to the plant’s needs, 9 billion * Source: IFA 2016, excluding purified acid for technical use from China reducing the impact of agriculture on the global population ** USGS, January 2017 environment, and R&D initiatives to develop fertilizers adapted to different specific needs, by 2050 and -21% the Group’s action also includes support of arable land per st measures for farmers (Fertility Maps, OCP 1 Caravans, School labs, etc.). capita** 24 phosphate 25 producer and exporter*

* Known to date, 73% according to USGS.

Annual Report OCP ** Source: FAO Annual Report OCP OCP, committed to resilient 3 and sustainable agriculture Competitive advantages

Exclusive access to the largest phosphate reserves in the world, i.e. approximately 73% of total reserves according to the USGS*.

Vertical integration across the entire value chain and leading industrial & technological facilities, including transport of the rock by Slurry Pipeline.

One of the best production cost structures in the phosphate and phosphate derivatives industry.

A diversified product portfolio and a strategic international presence.

An agile and flexible industrial & commercial strategy, allowing the Group to gear its production and sales towards products offering the highest added value.

Almost one century of expertise and know-how in the phosphate industry.

Revenues EBITDA An agile Key figures margin and flexible 42.5 industrial billion MAD 30% & commercial OCP enjoys robust strategy competitive benefits that CAPEX of nearly Vertical integration, reduction of operational The ability to quickly adapt its product mix Market costs, economies of scale, etc. OCP has a to produce different volumes of minerals, address a cyclical share** unique position in the industry through a acids and fertilizers and to adapt to market 200 significant presence in the three segments of volatility and seasonality represents a real market while billion MAD the value chain (rock, acid and fertilizer). competitive advantage. Diversification of the drawing maximum (2008-2027) 28% An ambitious and modular investment product portfolio/region/client, the Group’s program of nearly 200 billion dirhams for strong industrial presence and sales force benefit from the upstream and downstream activities adopted allow for maximum agility and flexibility while the agricultural by the Group for the 2008 to 2027 period, to strengthening its leadership. industry’s sound 26 respond to a growing global food demand. 27 OCP aims at expanding operations in Morocco OCP has therefore developed business fundamentals. More than through increasing its mining and processing models that are more appropriate to the capacities and consolidating its positionning specific needs of certain regions, such as in 30 in the fertilizer industry. Africa where, through its dedicated subsidiary, * Known to date according to USGS, 160 Subsidiaries «OCP Africa», the Group is expanding its clients presence in the downstream value chain to be January 2017. & Joint Ventures closer to African farmers. ** Share of the world phosphate market worldwide in all its forms, IFA 2016 - excluding purified acid and acid for technical use coming

Annual Report OCP from China. Annual Report OCP OCP, committed to resilient 3 and sustainable agriculture

Fundamentals Appropriate responses that guarantee to the planet’s long-term growth major challenges

Given the volatility of the economy and its rapid changes, OCP capitalizes on fundamentals to effectively respond to a constantly changing market. OCP’s sustainable growth occurs through several drivers. When combined, they promote synergy and help create value throughout the value chain.

Financial Social The Group’s robust financial position The Group’s operational activities facilitates access to diversified serve as catalysts to make positive sources of funding and helps support and sustainable contributions within Population growth Productivity of the land Price volatility the investment program for years communities where OCP operates, while to come, as well as a progressive working in partnership with NGOs, civil The world population quickly reached 7 billion Intensive agricultural practices have a direct Continued population growth during the and effective rollout of resources society and other partners. The Group acts people and will exceed 9 billion by 2050. Being impact on soil fertility. Soil erosion and loss of coming decades will lead to an increased and capital. with full integrity and seeks to maintain able to feed a growing world population is topsoil effectively lower the nutrient content demand for food. Climate change and the partnerships with its stakeholders, therefore one of the main challenges facing of soils. In this context, only the balanced depletion of natural resources will dampen prioritizing respect and dialogue. the world. But this challenge is compounded use of fertilizers, based on the principle of the supply in terms of average production by the threat of climate change, an increasing proper nutrient dosage, or the appropriate and production volatility. Increasing prices shortage of water, reduced arable land, etc. product at the right time and place, is able to could be the main problem for global food In this context, the Group works every day improve soil fertility to reach the crop system markets. Given these challenges, the use to improve soil fertility using appropriate productivity, profitability and sustainability of more appropriate and effective fertilizers fertilizers and helping farmers increase their goals and maintain a productive biophysical while implementing tools for management Linked to activity Natural yields. A fair balance between better crop environment. Another major challenge, and precision agriculture helps reduce doses, productivity and social and environmental the demand for agricultural water in most and therefore costs, and improve productivity OCP is the largest phosphate* producer The Group has a portfolio of varied, objectives is now a prerequisite for a lasting countries should increase to over 70% of the while minimizing the environmental footprint. and exporter and is a major contributor high-quality reserves and resources. response to global demand. current level if land productivity and water use to agricultural development, providing According to the USGS study, Morocco are not improved. innovative responses to major issues has the largest phosphate deposits in the like agricultural productivity, the use world with nearly 50 billion metric tons, of appropriate fertilizers for soil i.e. more than 73%. The estimated & crops, and above all, to the relentless commercial deposits represent several quest for solutions that preserve the hundred years of global phosphate

environment and natural ecosystem. consumption. The average P2O5 content The global challenge of food security of the rock currently mined by the Group encourages our R&D efforts to achieve is estimated at approximately 31%, based major advances in specialty products on IFA estimates. and promote sustainable agricultural practices.

Changing Development Climate change Manpower Linked to governance consumption habits of bioenergy Climate change increases the pressure on OCP Group employees are a pool OCP’S goal is to become the industry the agricultural production system. There is a of talent with technical and very leader, with long-term performance The demand for food will continue to increase Combating climate change encourages stark increase in the frequency and intensity specialized expertise in all areas and responsible action. The principles not only due to population growth, but also research for new sources of renewable of droughts and floods in certain regions of related to the mining and processing of effective and transparent governance to rising incomes and different eating habits energy that emit less greenhouse gas. the world. This has an impact on the scale business. Nearly 21,000 OCP employees are essential to ensure stakeholder for the more prosperous, with increased Demand for biomass energy is growing and and productivity of irrigated and non-irrigated 28 work in Morocco every day and across confidence in the supervision, management consumption of meat, meat derivatives and its recuperation for non-food uses creates 29 crops and , in turn, food prices and price the world for resilient and sustainable and operations of the Group. dairy products. tension relating to their environmental volatility. agriculture. footprint. The development of bioenergy leads to changes in soil use and has an impact on fertilizer demand.

* IFA 2016 Annual Report OCP Annual Report OCP 04

Leveraging strengths to achieve results

30 31 Annual Report OCP Annual Report OCP Leveraging strengths 4 to achieve results

PHOSPHATE ROCK CHANGES IN MARKET Targeted 2016 MARKETABLE PRODUCTION BY SITE PRODUCTION (in Mt) 26.9 With an extensive portfolio of more than industrial 26.3 26.3 160 clients worldwide, the Group is present performance on all major markets and is attentive to the needs of producers and operators. OCP is 2016 was a challenging year the leading global producer of phosphate for all OCP Group activities : 70% Khouribga 18.9 MT 23% Gantour 6.3 MT rock, with a production of 26.9 million production levels were 7% Phousboucraa 1.8 MT +2% metric tons in 2016, and focuses its activities perfectly aligned with 2014 2015 2016 operational forecasts for on six mining sites* in Khouribga, Gantour mining and processing PHOSPHORIC ACID CHANGES IN PRODUCTION 2016 PRODUCTION BY SITE (in Mt P O ) and Phosboucraa. and the launch of the Group’s 2 5 new projects. The focus was 4.9 put on the development 4.5 Integrated throughout its value chain, 4.4 of specialty products for the Group is also a key global player in high added-value markets. phosphoric acid and fertilizer production. The growth of production

This activity aims for a stronger integration volumes in 2016 compared Jorf Lasfar 1.86 MT P O 38% 2 5 of finished products, and was initiated very to the previous year boosted (OCP S.A) the Group’s business agility 30% Safi 1.51 MT P2O5 +9% early, either in local development, or within in a context characterized by 2014 2015 2016 Jorf Lasfar (JVs) 1.56 MT P O the framework of partnerships with foreign a strong demand for niche 32% 2 5 manufacturers. products.

FERTILIZER CHANGES IN PRODUCTION This performance was 2016 PRODUCTION BY PRODUCT (in Mt) OCP’s successful strategy enabled the Group reflected on the business and to hold a leading position in phosphoric acid financial levels as the Group 7.0 and fertilizer production with respective completed yet another year 5.1 5.2 volumes of 4.9 million metric tons of P O of steady growth with some 2 5 of the best margins in the and 7 million metric tons produced in 2016. industry and profitability that Main processing activities are concentrated met all expectations, despite 31% MAP 2.19 MT 29% DAP 2.02 MT on the industrial sites of Jorf Lasfar and Safi. a slight drop in sales. 16% TSP 1.08 MT +33% OCP plans to triple processing production 24% Others 1.67 MT 2014 2015 2016 to reach 12 million metric tons of fertilizer FERTILIZER - SAFI 2016 PRODUCTION BY PRODUCT FERTILIZER - JORF LASFAR capacity in 2017, which will position the 2016 PRODUCTION BY PRODUCT Group as a leader across the three segments 90% TSP 0.83 MT of the value chain. 41% MAP 1.91 MT 10% Others 0.09 MT 25% DAP 1.14 MT 32 34% Others 1.58 MT 33

*Daoui, Merah El Ahrach, Sidi Chennane, Beni Amir, Benguerir, Bouchane, Mzinda, and Boucraâ. > Mt : millions of metric tons > DAP : Di-Ammonium Phosphate, most common binary fertilizer. > MAP : Mono-Ammonium Phosphate, binary fertilizer composed of two fertilizer agents - phosphorus and nitrogen.

Annual Report OCP > TSP : Triple Super Phosphate, concentrated phosphate fertilizer, highly water-soluble. Annual Report OCP Leveraging strengths 4 to achieve results

In 2016, record-breaking production was achieved in Khouribga in extraction tonnages, destoning and beneficiation volumes, as well as in sales volumes. Khouribga

Remarkable The new Beni Amir Positive impact on the operational Performance washing plant on stream carbon footprint with a

in Khouribga The Beni Amir washing facility was reduction of approximately commissioned for a first phase in March Extraction tonnages increased from 21.4 2015. It was designed to supply the Slurry million metric tons in 2015 to 22.2 million 300,000 Pipeline’s head station with a treatment metric tons in 2016, reaching a marketable capacity of 12 million metric tons. The metric tons of CO2 eq. production of 18.9 million metric tons, up 1% commissioning of facilities continued in compared to 2015. Operational performance 2016 with operations starting on the Beni 2016 results for greenhouse gas emissions was supported by several measures, Amir TSM1 destoning-screening tremie and (GHG) were 880,000 metric tons of CO2 including repairing and upgrading industrial service tests on the Low Grade line. equivalent. Efforts to roll out the GHG facilities with the aim of maintaining emissions policy continued with the Mt production capacities: dragline rebuilding, implementation of CO analyzers installed 18.4 2 Phosphate truck and excavator acquisitions, start of in drying ovens. OPM mining at the Merah El Ahrach mine rock sales* and the introduction of generalization in the other mines on the Khouribga site.

More than IFA Protect & Sustain 22.2Mt 100,000 certification with a Metric tons mined trees planted 95% on the mining site score 60% of additional As part of the mining rehabilitation program, volume transported by over 200 people representing the entire New reward for efforts in operational Slurry Pipeline population of the Khouribga site planted excellence and management of the quality 110,000 trees on an area of 300 ha. of industrial assets, with the IFA Protect & Sustain certificate of excellence obtained In terms of transport, the gradual with a score of 95%. introduction of transport by Slurry Pipeline began to produce results. 10 million dry and marketable metric tons passed through the Slurry Pipeline in 2016, compared to 6.5 million metric tons a year earlier. 10 MILLION DRY AND MARKETABLE METRIC Objective to reduce fuel consumption by TONS TRANSPORTED BY SLURRY PIPELINE IN 50% 2016 COMPARED TO 6.5 MILLION METRIC TONS As part of the Energy Program, the gradual abandonment of drying resulted in a 50% TRANSPORTED IN 2015 reduction in fuel consumption. 34 > Positive impact on the carbon footprint 35

Mt: million metric tons * Including phosphate rock sales for Safi and Jorf Lasfar sites. Annual Report OCP Annual Report OCP Leveraging strengths 4 to achieve results

The record-setting trend in Khouribga also carried over to the The Phosboucraa site’s production activities have extraction activity at the Gantour site, which includes the maintained a steady extraction rhythm, reaching 1.9 million Benguerir and Youssoufia mines : a total of 7.4 million metric metric tons of extracted phosphate up from 1.6 in 2015. Gantour tons were extracted in 2016, up from 7.3 million metric tons Phosboucraa Marketable production increased by 30% to reach 1.8 million the previous year. Local shipments of G10 phosphate totaled metric tons at year end 2016. 4.2 million metric tons of dry & marketable phosphate, setting a record compared to 2015.

Continued exploration Maintenance work on work industrial equipment Continuation of Mine and facilities 11KM Rehabilitation Work Exploration work continued with the completion of several wells in the areas link between the Mzinda Improved reliability of machines and dragline bordering the former mines at the 7.4Mt In addition to the deployment of 1.9 Mt excavators, reinforced electrical installations, mine and the washing plant Phosboucraa site. At mine A, the box cut was Phosphate extracted environmental standards and the actions new control systems, new heap leach Tonnage extracted successfully carried out in the interest of undertaken as part of the Environmental conveyor line, etc. In addition, the washing in Gantour resuming operations, with 80,000 metric tons Initiated in 2015, constuction works of Excellence Program, other advances took plant was inaugurated by His Majesty King of dry and marketable phosphate projected in 11-km system of conveyors to link the place at the Gantour site, including: Mohammed VI in February 2016, and work the medium-term. Mzinda mine and the washing plant in continued on the project to restore the wharf Youssoufia continued in 2016. The project 1.8 Mt - Soil survey and study of appropriate species in anticipation of future increased production is 75% complete, in line with progress for 400 ha of former mining sites at the Phosphate rock capacities. projections. Youssoufia mining site. marketable production Several improvement - Development and rehabilitation of 400 ha of former mining sites at the Youssoufia projects initiated mines. These achievements took place in parallel - Launch of operation to plant fruit trees, to the work carried out to prepare the forest trees and fodder shrubs. site for the industrial projects that will IFA «Protect & Sustain» be commissioned in accordance with the Certification with - Continuation of work to rehabilitate the Industrial Development Plan. Benguerir mining site: 240 ha developed 31% and 67,000 trees planted. Increase in % score shipments of rock 97 phosphate A new reward for operational excellence efforts, the Group earned the IFA Protect & Sustain certificate of excellence with a score of 97%.

PROGRESS IN LOCAL COMPLIANCE WITH SHIPMENTS SET THE DIFFERENT A NEW RECORD FEASIBILITY, PROCESS IN 2016. AND ENVIRONMENTAL IMPACT STUDIES. 36 37

Annual Report OCP Mt : million metric tons Annual Report OCP Leveraging strengths 4 to achieve results

In 2016, production in Jorf Lasfar registered several records.

Jorf Lasfar Increased production Reinforced capacities Airborne emissions volumes - Royal inauguration of the Africa Fertilizer By modifying two other phosphoric acid Complex in February 2016. production lines to use pulp in July 2016, - Annual production of fertilizer reached stack fluorine emissions dropped below 4.63 Mt, up from 3.91 Mt produced in 2015. - Start of JFC II production units in July 5 mg/Nm3. Discontinuing dry milling of 2016. phosphate has eliminated dust emissions - NPK production volume rose to 0.78 Mt, completely. up from 0.56 in 2015. - Africa Fertilizer Complex production units reached nominal pace. - Liquid sulfur production reached 3.22 Mt, up from 2.97 Mt in 2015. - Production of phosphoric acid at the PMP

plant rose to 443 Kt P2O5, up from 427 Kt Committed to the highest in 2015. standards New desalination The structuring project involving the plant with construction of a new Environmental a capacity of New formulas Management System for the entire Jorf Lasfar platform was launched in 3 Mt P O of adapted fertilizers accordance with the new ISO 14001: 2015 25Mm /year 1.86 2 5 standards. Phosphoric The year 2016 marked the culmination acid production* of OCP’s efforts to develop new formulas Inaugurated in February 2016, the tailored to each region’s specific needs. new seawater desalination plant has These 30 different fertilizer grades, including a processing capacity of 25 million m3 3 new formulas of NPK, marked processing in its first phase. operations. Production of NPK grades saw a 30% rise in productivity. 1.91Mt MAP production**

1.14Mt DAP production**

MORE THAN 30 FERTILIZER GRADES WERE DEVELOPED IN 2016.

38 39

* Production of phosphoric acid from Maroc Phosphore III and IV (excluding Joint Ventures and Jorf Fertilizer Companies). ** Excluding Joint Ventures and Jorf Fertilizer Companies.

Annual Report OCP Mt: million metric tons Annual Report OCP Leveraging strengths 4 to achieve results

Production at the Safi site set several historic records.

Safi Increase in volumes Key actions produced - 60% of environmental standards deployed: Waste Management, EKPIs, Secondary - Phosphoric acid production reached Materials. 1.5 Mt P2O5, beating the previous record

set in 2015 of 1.4 Mt P2O5. - Use of the gaseous effluent dispersion model to minimize the environmental - Production of TSP fertilizer rose to 832 Kt. impact of the sulfuric units. - Production volumes of sulfuric acid - Launch of the SULFACID gas scrubbing reached 4.6 Mt, up from 4.4 Mt in 2015. projects, fluorinated gas scrubbing, Maroc - Production of sulfuric acid on Line H at Phosphore II discharge pipe and study Maroc Phosphore I reached 1.23 Mt TMH, to measure the impact on the marine up from 1.18 Mt TMH in 2015. environment. - Maroc Phosphore I broke a 25-year record for phosphoric acid production, with

591.1 Kt P2O5.

- Maroc Phosphore II produced 516 Kt P2O5,

up from 514 Kt P2O5 in 2015. 1.5Mt P2O5 Phosphoric acid production

832.6Kt Production of TSP fertilizer

SUSTAINED EFFORTS TO MAINTAIN THE PACE AND BREAK PRODUCTION RECORDS.

40 41

Mt : million metric tons

Annual Report OCP Kt : thousands of metric tons Annual Report OCP Leveraging strengths 4 to achieve results

The industrial program : in line with Overview of the industrial OCP Group’s plan for objectives 2008 - 2027 Mining Transport Port Processing & Beneficiation & Utilities infrastructures In 2016, the Group continued Increased Tripling Enhanced the implementation of its Doubling industrial of fertilizer logistics capacities Industrial transformation efficiency capacities capacities program launched in 2008, this strategy involves an Khouribga - Jorf lasfar 2 new mines Khouribga-Jorf Lasfar Slurry Pipeline: 4 new plants (1 Mt DAP each), including Port of Jorf Lasfar: ≥ 38 Mt/year capacity Africa Fertilizer Complex investment of nearly 200 2 new washing plants ≥ New docks 1.5 km in length 2 new granulation units (0.85 Mt DAP Adaptation of 2 existing washing plants ≥ billion dirhams and aims each) Rehabilitation and deepening of for the Slurry Pipeline existing docks to promote sustainable 3 new granulation units (1Mt DAP each) 1 new downstream phosphate rock ≥ Installation of new loading/unloading agriculture - from extracting drying plant at the Jorf Lasfar site 2 new phosphoric acid (JFC eq.) areas the rock to transporting it to (exportation) processing it into fertilizer 2 new sulfuric acid (JFC eq.) - by doubling the Group’s mining capacity and tripling its processing capacity by 2027, while mitigating its environmental impact.

A number of flagship projects were commissioned in Gantour - Safi Increased mining capacity in Gantour Gantour-Safi Slurry Pipeline New integrated processing platform New port at safi : 2016, and the ongoing Beneficiation unit in Benguerir ≥ Construction of new docks with 8 loading berths development projects Adaptation of the Youssoufia washing plant for the Slurry Pipeline ≥ Installation of new loading/unloading advanced according to plan. areas

Boucraa – Laayoune New storage and handling capacities New processing platform : Laayoune Wharf : New washing plant with integrated ≥ New fertilizer plant (1Mt equivalent ≥ New port for processing operations flotation unit DAP) New drying plant dedicated to exportation 42 43

Doubling mining Slurry World class Expansion capacity Pipeline processing platforms of port infrastructures Annual Report OCP Annual Report OCP Leveraging strengths 4 to achieve results

2016 key achievements

Adaptation of Infrastructure 4 lines of the Africa Desalination and superstructure JFC II phosphoric unit Downstream Fertilizer Complex Plant of new docks C, D, X & Y at Jorf Lasfar MP III & IV Inaugurated by H.M. King Mohammed VI Inaugurated by H.M. King Mohammed VI Commissioned in 2016 Commissioned in July 2016 Commissioned in 2016 Commissioned in 2016 in February 2016 in February 2016

Capacity of Desalination Capacity of Capacity Capacity Capacity of capacity 1Mt (1st phase) 1Mt fertilizer/year Mt P O /year in the Mt/year Mt/year in term 2 5 35 fertilizer/year 2 10 medium term 25 Mm3/year 5.7 BMAD 3.6 BMAD 3.2 BMAD st investment BMAD (1 phase) investment investment** 6.2 of desalination investment plant 0.8 BMAD investment 2016 was marked by several commissioned projects and achievements including :

44 additional 1 Mt/year of fertilizer, 45 25 Mm3/year of water desalinated, and 10 Mt/year of ore packaged for export...

Annual Report OCP Mt: million metric tons Annual Report OCP Leveraging strengths 4 to achieve results

Major projects planned in 2017

Adaptation of 2 phosphoric Expansion of Merah Expansion of the JFC III & IV El Ahrach washing lines A&B plant Jorf Lasfar port MP III & IV

Commissioning planned in 2017 Revamping and adaptation work on lines Commissioning planned in 2017 Commissioning planned in 2017 AB and ZU planned in 2017 2017 will be Capacity Capacity Capacity Capacity Mt/year Mt P O /year in the Mt/year Mt/year just as full of 1 2 2 5 3 35 challenges... medium term

46 47

Mt : million metric tons

Annual Report OCP BMAD : billion dirhams Annual Report OCP Leveraging strengths 4 to achieve results

Solid business performance in 2016

Despite difficult market conditions characterized by over-supply, 8% EAST OCP Group was able to capitalize on its competitive strengths ASIA Amsterdam 30% combining industrial flexibility, reduced operational costs 46% EUROPE NORTH Engis Paris and business agility to achieve strong results, particularly by AMERICA Geneva Chicago New York 24% Beijin strengthening its market positions for finished and specialty % Les Roches 40 Istanbul SOUTHWEST products with higher added value. increase in specialty Washington ASIA Augusta Morocco product sales Abu Dhabi 52% Gurgaon Senegal AFRICA Benin Paradeep

Strengthening Ivory Coast Nigeria Ethiopia Ghana 27% Kenya Singapore of the Group’s SOUTH Cameroon AMERICA Rwanda Tanzania

market positions São Paulo Zambia Mozambique 23% OCP Presence OCEANIA for finished 70% Paranaguã increase in fertilizer % OCP market share fertilizers Source: IFA 2016 exports in Africa Based on P O trade volumes including rock, acid, Buenos Aires 2 5 and DAP/ MAP/ TSP - excluding NPK In 2016, surplus supply on the fertilizer their exports. market put a damper on international prices, On the demand side, the lower prices of despite growing demand and stabilized inputs, combined with a series of reforms grain prices compared to 2015. On the in favor of the agricultural sector in some macroeconomic front, all commodities countries such as Turkey, Argentina and were less volatile, including agricultural Romania, boosted phosphate fertilizer A diversification commodities. Furthermore, currency consumption, particularly in India, Pakistan, stability in the major emerging economies Brazil and Europe. strategy that including Brazil, India and China, minimal OCP continues weather disturbances and an improving In this context, the Group continued its to develop higher produces results political climate in nations like Argentina strategy focused on optimizing the value and Brazil resulted in renewed confidence of its portfolio to achieve solid results, The Group achieved excellent results in OCP’s international presence upheld its added value products, SPECIALTY PRODUCTS in the agricultural sector. Grain prices were particularly by strengthening its market allowing it to diversify 2016 in fertilizer export volumes : 6.5 million robust performance in 2016. The Group’s EVOLUTION OF SALES stable, with a slight increase in the price of positions for finished fertilizer. OCP metric tons of products in total. OCP met achievements are increasingly diversified (in Kt) soy (agricultural production) and a slight continues to develop higher added value and strengthen its commitment to sustainable African across different regions including Africa, decrease in the price of corn (grain supplies) products, allowing it to diversify and enter agriculture by supplying the continent Latin America and North America where OCP Feeds compared to 2015. new markets, particularly the African and its position in its with sufficient and appropriate quantities holds significant market shares. NPS 1,678 American markets. of fertilizer, enabling farmers to improve markets, particularly NPK However, the eased Chinese export tax, their yields and protect their soils. Fertilizer 2016 was therefore characterized by OCP Micronutrients which led to increased export opportunities In addition to «product» diversification, the in Africa and Latin exports in Africa have increased by nearly Group’s continued approach to develop 1,194 and an abundance of supply from stockpiles Group’s business agility is also a major America. 70%: a total of 1.7 million metric tons, up finished and innovative products to meet the built at the end of 2015, particularly in India, asset for geographical diversification and to from 1 million in 2015. Similarly, growth needs of farmers. OCP’s commitment to high resulted in a strong decline in phosphate strengthen its market shares: 52% in Africa, recovery in Latin America led to increased added value specialty products was achieved 796 fertilizer prices from October 2015, with the 27% in Latin America, 24% in Southwest export volumes in that region. Finally, with an through the production and exportation decline worsening from January 2016 on. Asia, 46% in North America, etc. increasingly diversified and adapted fertilizer of more than 34 formulas. Other sulfur- 393 The DAP prices dropped from $480 to a portfolio, OCP’s differentiation strategy has enriched specialty products will eventually Take-off range of between $330 and $340. In this enabled the Group to grow its specialty strengthen the Group’s portfolio, in part 140 context, the least competitive Chinese product (NPS, NPK, DCP, MCP) sales thanks to a partnership between OCP and 0 producers were forced to significantly reduce volumes by more than 40%, increasing from Shell for the acquisition of the Shell Thiogro 2011 2012 2013 2014 2015 2016 1.2 million metric tons in 2015 to nearly technology 1.7 million metric tons in 2016.

48 49

> NPS : phosphate and sulfur-enriched nitrogen based fertilizer. > NPK : ternary fertilizers composed of three elements: phosphorus, nitrogen, and potassium. > DCP / MCP: Dicalcium Phosphate / Monocalcium Phosphate: phosphorous and calcium-based nutrient supplements used

Annual Report OCP to manufacture mixed feed for farm animals. Annual Report OCP Leveraging strengths 4 to achieve results

Positive growth International outlook in a development : volatile context opening new offices

The phosphate market should remain and consolidation saturated in 2017 with the improved competitiveness of Chinese products, linked in Africa to the abolition of the export tax, the likely devaluation of the yuanband the impact of The Group continued its international new capacities in Saudi Arabia, China, and expansion by opening a representative office Morocco. in Beijing with the aim of strengthening business intelligence and knowledge of the Nevertheless, some less competitive, old Chinese market. capacities could be closed for economic and/or environmental reasons, while the In addition, OCP realized its strategic vision availability of products for export from by securing the cornerstones of development the second quarter 2017 will be the main in Africa and opening 14 new African factor affecting prices. Demand should also subsidiaries, including nine created to date continue to increase, encouraged by low in Côte d’Ivoire, Senegal, Cameroon, Benin, input prices. In India, the reinstatement of Nigeria, Tanzania, Zambia, Ghana and Kenya. the Indian Government’s grant policy for 2017/2018 bodes well for strong growth in What’s more, OCP continued its international demand. development through partnerships in the most profitable markets, paving the way Furthermore, the stability of the dollar to reconciling its offering with the needs compared to the currencies of emerging of local farmers. Thus, the Group and economies, mainly Brazil and India, OCP continued the Ethiopian government invested in the should also encourage African imports. Demand should its international construction of a fertilizer plant (by 2022), Growth should continue in these countries, with a capacity of 2.5 million metric tons constituting another growth driver for the continue to grow development through per year and ultimately 3.8 million metric Group. tons per year. OCP Group also signed in a volatile, partnerships in the most partnership agreements for the construction over-supplied market profitable markets, paving of blending units in Rwanda and a fertilizer production platform in Nigeria. In India, affected by Chinese the way to reconciling its OCP and Kribhco, a major local agricultural export levels. offering with the needs cooperative, completed the creation of a 50/50 joint venture dedicated to building of local farmers. an NPK fertilizer production unit in Krishnapatnam, with a production capacity of 1.2 million metric tons per year.

50 51 Annual Report OCP Annual Report OCP 05

Transforming Africa’s agriculture

52 53 Annual Report OCP Annual Report OCP Transforming Africa’s 5 agriculture

OCP, driving Meeting the Boosting the In 2016, OCP Group an agricultural challenge of phosphate fertilizer strengthened its African vision for sustainable demand engagement through OCP Africa is working concrete actions aimed Africa development to remove constraints and boost the demand for at contributing to the OCP is convinced that Africa has the potential to ensure its own food security if with OCP Africa phosphate fertilizers on the the continent adopts effective agricultural continent’s agricultural Supporting the development of the African African continent across development strategies. It is for this reason continent is one of OCP Group’s strategic the entire agricultural value that OCP actively strives to increase fertilizer development. This priorities. To this end, OCP is striving to use while ensuring the long-term stability chain. This comprehensive develop a sustainable agricultural ecosystem of the African market’s phosphate fertilizer approach is reinforced by a commitment is part of that enables farmers to move from supply. This in turn makes it possible for traditional agriculture to modern farming sector-specific approach. As a OCP Group’s larger vision African farmers to count on getting the right methods that generate greater value. result, OCP Africa’s activities fertilizers for their soils and crops and leads OCP Group’s approach makes use of locally of helping African farmers to bigger yields. are not limited to fertilizer processed African raw materials to provide distribution only; they also the appropriate fertilizers at the right time, prosper. Africa’s central In order to illustrate this commitment, place, and price. This in turn increases crop involve the provision OCP Group has seamlessly integrated yields and contributes to the responsible use of comprehensive solutions role in the new Moroccan an ambitious project into our 2008-2027 of resources. for farmers, including training cooperation strategy and industrial development plan. This initiative includes new integrated fertilizer production and funding. This long-term the continent’s enormous units in the context of our Industrial commitment is supported by Development Program. These new units are a large network of local, potential for growth are essential for attaining the critical size that allows OCP to create value for clients and pan-African, and international behind OCP Group’s interest stakeholders while effectively serving our partners who share OCP supply network. Africa’s vision for agricultural in adopting a proactive development in Africa. The stable supply of fertilizers dedicated to approach to developing African farmers and the establishment solid partnerships with the continent’s fertilizer sustainable African stakeholders will also provide support for agriculture. OCP Group’s continued growth in Africa. This expansion will require progressive KEY FIGURES OF AFRICAN deployment of resources and capital. AGRICULTURE OCP Africa was launched after the inauguration of the first new fertilizer production unit (Africa Fertilizer Complex). By establishing an integrated presence in 70% many African countries, OCP is looking to of the population 80% expand the industrial program for sub- are farmers of unused Saharan Africa through the establishment arable land of similar structures built in proximity to consumer markets. These major agricultural development projects also drive African economies by creating local jobs and value 60% during the construction and operational phases. of global arable land reserves 01% of world fertilizer use

54 21kg/ha 55 of fertilizer use (world average: 120 kg/ha) Annual Report OCP Annual Report OCP Transforming Africa’s 5 agriculture

A wealth of projects Building fertilizer blending units for 2016 in Rwanda

In October 2016, the Rwandan Ministry Promoting growth of Agriculture and Animal Resources in Africa through and OCP Group signed a memorandum The synergy between of understanding on industrial investment in a stable supply OCP Group and its African local blending units designed for producing of fertilizers fertilizers specially adapted to soils and partners has led to research crops. As part of OCP Africa’s development strategy, this agreement aims to combine In February 2016, His Majesty the King aimed at categorizing soils the efforts of both parties in order to Mohammed VI inaugurated the Africa improve local productivity while respecting Fertilizer Complex, a fertilizer production and developing new sustainable development concerns plant for African production aimed at tailor-made products. throughout the agricultural value chain. supporting the growth of the continent’s By strengthening Rwanda’s blending markets though a continuous and regular capacity, this «win-win» partnership will supply of fertilizers. The plant includes a provide added value to the local population sulfuric acid unit (1.4 million metric tons/ and farmers through specific fertilizers year), a phosphoric acid unit (450,000 adapted to their soil and crops. metric tons/year), a fertilizer unit (1 million metric tons DAP equivalent/year), a 62 MW thermoelectric power plant, and storage infrastructure with a capacity of 200,000 metric tons. The Africa Fertilizer Complex, which generated 1.35 million person-days of work during its construction phase, will create 380 jobs during its operational phase.

Contributing to Ethiopia’s Serving fertilizer fertilizer self-sufficiency professionals

On November 19, 2016, OCP Group and the The fertilizer production platform, which in Nigeria Ethiopian Ministry of Public Industry signed has been named the Dire Dawa Fertilizer On December 2, 2016, OCP Group signed The second is an agreement protocol a strategic partnership to build a fertilizer Complex, will produce fertilizers with 1Mt two phosphate and fertilizer agreements signed with the Fertilizer Producers & plant in Ethiopia. This investment is part Ethiopia’s potash and gas and OCP Group’s annual fertilizer in Abuja. The first involves a strategic Suppliers Association of Nigeria (FEPSAN) of OCP Group’s continued commitment phosphoric acid, thus taking advantage of the production partnership with the Dangote Group to build to implement fertilizer solutions tailored to developing a concrete South-South complementary nature of the two countries’ capacity in Nigeria a fertilizer production platform supplied by to Nigerian soils and crops, boost fertilizer partnership model. natural resources. The fully integrated Moroccan phosphate and Nigerian natural availability on the local market, and provide facility will also include all the necessary gas. In its first phase, the agreement will support to local farmers. The agreement The agreement is based on the two infrastructure and access to inputs, in result in the sharing of complementary involves: the stabilization of local fertilizer countries’ shared vision for the development addition to the requisite logistical, storage, production units already under construction market supply at competitive prices; the of sustainable agriculture in Africa and and transportation framework, allowing the at Jorf Lasfar in Morocco and in Nigeria’s exchange of expertise for the development stronger economic ties between Morocco and complex to provide appropriate fertilizers to Lekki Free Zone. These units will be merged of local blending units; the promotion of Ethiopia. The first phase of the investment local farmers at competitive prices. into a new structure with ownership shared innovation and R&D; the strengthening will involve the production of 2.5 million by OCP Group and Dangote Industries. In its of local distribution networks; and the 56 metric tons of fertilizer per year by 2022 57 second phase, an additional fertilizer plant development of existing agricultural systems. and 3.8 million metric tons per year upon in Nigeria with an initial annual capacity of completion of the project. Ultimately, the 1 million metric tons (by 2018) will be added initiative will enable Ethiopia to be fertilizer to the new shared structure. The complex’s self-sufficient while also creating export production capacity could eventually reach 2 opportunities. million metric tons. Annual Report OCP Annual Report OCP Transforming Africa’s 5 agriculture

A four-pillared community-based approach

Supporting African Focusing on local Ensuring the distribution Organizing sales and agronomy production of the right product at marketing to provide

In order to provide African farmers with Although OCP Group reserves part of its the right time and place the best service fertilizers specifically adapted to local Moroccan fertilizer production for Africa, conditions, OCP is implementing programs especially at the Jorf Lasfar plant, it is also The creation of strong distribution channels OCP’s organized distribution channels aimed at deepening our knowledge of the strengthening its value chain on the rest of in Africa is a key part of OCP Group’s contributes to the flexibility of the company’s continent’s different soils. OCP Group is the continent through the development of continental strategy. This focus allows OCP commercial offer, which includes a working with agronomy institutes to analyze local plants. Created in partnership with local to fully supply farmers with affordable, competitive pricing formula, nearby storage each environment. Innovation is thus at the businesses, these units use local resources quality products that are specifically adapted centers, and the use of containers. OCP’s heart of OCP’s approach, and the results are and actively support each country’s economic to their conditions. The use of a «package innovative commercial frameworks allow contributing to the development of a range and industrial systems. deal» model with African distributors allows the company to develop the fertilizer market of new fertilizer products. These tailored OCP Group to combine the sale of fertilizers and identify new opportunities. formulas include products which were These plants include mixing and bagging with the co-financing of agricultural specifically designed for corn production equipment, laboratories, and warehouses, development initiatives. OCP also offers integrated solutions that in Ghana or cocoa and cotton production while also offering training programs for address issues faced by all farmers. This 58 in Côte d’Ivoire. The same approach was regional professionals. offer gives them access to the best possible 59 used in Ethiopia, Kenya, Mozambique, service and places them on the road to and Tanzania, where fertilizers were efficient and sustainable agriculture. enriched with sulfur in order to improve their effectiveness. Annual Report OCP Annual Report OCP Transforming Africa’s 5 agriculture

OCP Group creates shared value by building on innovation Innovation at the heart of OCP Group’s and sustainable development. The commitment to these two strategy in Africa elements is a testament to OCP Group’s desire to establish increasingly structured and integrated programs designed for sustainable interaction with and for stakeholders, all through an approach based on participation and co-development. It also reflects OCP’s momentum and continuous action in both sectors.

Partnership with Partnership with the Fertilizer Initiative The AgriBooster Program OCP School Lab Farmer Field Schools

the University Bayero University, Kano, Program in Côte d’Ivoire This product and services bundle offered This agricultural development program aims The concept of Farmer Field Schools of Wageningen the International Institute by OCP Africa includes all the elements to increase the yields and incomes of small consist of programs aiming mutual learning OCP Group has been backing this program that allow farmers to boost their yields: producers through a travelling caravan. and dissemination of good practices for since 2013 with support from the National This partnership aims to create a platform of Tropical Agriculture, inputs (seeds, fertilizers, crop protection The program offers a complete range of an improved agricultural production. Center for Agricultural Research. The products, agricultural equipment, etc.), services, including soil analysis and training Different sessions were organized in for the management of soil fertility and plant and the Zaria Institute development of a cocoa crop soil fertility map nutrients, as well as the development new financial and insurance services, training, in agricultural best practice. The caravan Côte d’Ivoire and Nigeria for cocoa farming contributed to the development of six new soil preparation monitoring, and market is equipped with a mobile laboratory that pratices, as well as in Ghana for maize formulas. Initiated in late 2016, it will enable for Agricultural Research fertilizer formulas that will be tested in 2017. the development of innovative modelling connections for facilitated crop sales. gives small farmers access to the latest soil and Guinea for different crops, to meet tools designed to provide information and This partnership enabled the development The objective is to create an economically analysis technology. specific agricultural needs of each host recommendations for fertilizer use. Internet of new fertilizer formulas adapted to corn viable and sustainable virtuous cycle for all country. and mobile applications for farmers and production in north-central Nigeria. Other stakeholders in the value chain. The first The first program was launched in December other stakeholders in the agricultural sector formulas will be eventually be tested in pilot project was successfully implemented 2016 in Côte d’Ivoire, in partnership with will also be available. The pilot development Ghana, Côte d’Ivoire, Cameroon, in June 2016 in northern Côte d’Ivoire. the National Center for Agricultural phase for the platform will take place in Mali and Burkina Faso. Research (CNRA), National Agency for Rural and Senegal in 2017 and 2018. Development (ANADER), and the Coffee- Cocoa Board.

60 61 Annual Report OCP Annual Report OCP Transforming Africa’s 5 agriculture The creation of 9 subsidiaries is OCP Group’s Subsidiaries part of the Group’s in Africa strategy to reinforce its position in promising, rapidly-growing In 2016, OCP Group created 9 subsidiaries in several African countries to boost the fertilizer markets. market, all supported by OCP Africa. These initiatives are concrete actions of OCP Group’s African strategy.

These concrete actions of OCP Group’s African strategy are part of the company’s efforts to strengthen its position in promising, rapidly-growing markets. They represent a turning point in the Group’s development on the continent. OCP Senegal The target countries in West and Central Africa are Côte d’Ivoire, Senegal, the Democratic Republic of Congo, Benin, Cameroon, Nigeria, and Ghana.

In Eastern and Southern Africa, our OCP Nigeria subsidiaries will be established in Tanzania, Angola, Zambia, Zimbabwe, Mozambique, and Kenya.

Each new subsidiary will be allocated OCP Ethiopia* 1 million dirhams in capital and will use the same business model, allowing OCP to expand its distribution network and develop products adapted to specific crops and soils. In addition to fertilizer marketing and distribution activities, these additions will also provide services that contribute to the development of the African agricultural chain while meeting co-construction goals with various stakeholders in host countries. OCP Côte d'Ivoire Not all subsidiaries are operational as of yet. OCP launched 9 of them in 2016. The green OCP Kenya light having only been given in July 2016, the OCP Ghana process is still ongoing. OCP Benin OCP Cameroon

OCP Tanzania

OCP Zambia

62 African subsidiaries 63 already in operation in 2016

Annual Report OCP * Subsidiary of OCP S.A. Annual Report OCP 06

A Group Mobilized for the Climate

64 65 Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate A historic presence at COP22

On December 12, 2015, the first universal COP22 climate agreement was unanimously adopted at COP21 in Paris. A year later, the signatory COP22 OCP countries gathered in Marrakesh to ensure key figures at the COP COP22, held in Marrakesh the implementation of the commitments made in the agreement. from November 7 to 18, A number of topics were at at the heart of discussions, including global food security, 2016, was the high point of resilient cities, sustainable construction, innovative low-carbon solutions in various an eventful year. The event fields, and the sustainable preservation and 30,000 7 management of resources. participants COP22-labelled allowed OCP to display its projects, including OCP Group’s presence at the event allowed 4 industrial projects commitment and involvement the company to contribute to the discussion while educating the public and partners in environmental protection about its commitment to resilient and efforts and the fight against sustainable agriculture. OCP’s participation 8,000 also marked a new step in its innovative delegates from climate change. Seven approach to responsible, sustainable, and inclusive growth. Spanning nearly 500 m2 civil society 15 of our projects received the at the heart of the public area, OCP Group’s conferences and space was dedicated to informing visitors 8 workshops held COP22 label awarded by the and presenting the company’s seven COP22- labelled projects. These initiatives cover the event’s scientific committee. Group’s entire value chain, from extraction to More than processing and transport. They are a perfect symbol of OCP’s commitment to energy More than OCP also provided a platform transition and the fight against climate 3,000 change. international NGOs for discussing current and For twelve days, more than 120 employees represented 280,000 future climate concerns, took turns welcoming visitors and giving visitors during guided tours. A number of interactive media the event organizing several conferences terminals allowed the public and partners to better understand OCP Group’s activities. to discuss key climate issues, OCP also organized and participated in numerous conferences on the future of Africa 1,500 including the preservation of and on possible solutions for sustainable journalists More than water resources, food security, agriculture. industry 4.0, the low-carbon 100 requests related to the economy, climate justice, 196 Group’s participation and more. participating countries received and processed at the national and international level

A 25 More than hectare site 120 employees participated as hosts in the OCP booth 66 680 67 activities, conferences, and discussions Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate

COP22 Mining LABELLED 7PROJECTS A sustainable Rehabilitation vision for mining development

The Green Mine Project : 330 ha of rehabilitated facilities

Located northeast of Khourigba, the Green Mine project involves the rehabilitation of 330 hectares of old mine facilities. The goal of the sustainable urban 4.5 development initiative is to preserve ecosystems and million trees planted optimize resource use. This project will create a green and 4,500 hectares of land rehabilitated in Khourigba lung for the city, while also developing the equipment and Gantour necessary for effective protection of the environment and natural resources. A water treatment plant will process and recycle wastewater for optimized As part of its environmental approach, OCP Mine rehabilitation is also in line with irrigation. has affirmed its commitment to a new vision OCP’s vision of creating shared value for mine rehabilitation. Each extraction plan based on the upstream involvement of local includes a future program for rehabilitating populations, authorities, and associations. Moreover, the establishment of both an 11,000 m2 surrounding land, with the aim of limiting The establishment of an operational the impact of OCP Group’s mining activities ecosystem fosters a sense of ownership and media library and a central mall containing offices while adopting a sustainable development participation among stakeholders involved and shops will help foster the city’s economic 1,200 approach that benefits local residents of in rehabilitation programs. The crops and development and cultural life. hectares of land converted in the region. Mining rehabilitation is based activities are also chosen according to local Khourigba and Gantour over on a simple principle: collect and store the know-how, with additional reinforcement topsoil during the mine’s operation and through professional training and coaching 24 months, in keeping with reuse it later. New development projects provided by OCP. the integrated «Extraction - can then be established after the mining Rehabilitation» process. stage is completed. Programs focused on Mine rehabilitation process the farming or livestock sector are selected and developed at the local level depending on the region, climate, and soil composition of the site. This initiative is part of OCP Group’s efforts to promote innovation and entrepreneurship. The company pays special attention to innovative, job-creating projects. Creating parallel Eventually bringing trenches 5 meters in topsoil compatible apart with plant types New process Optimizing rehabilitation Grading intervention by pushing ridges into neighboring depressions only 68 69 ≥ Filling of depressions ≥ Leveling of ridges ≥ Creation of regular hills Breaking mining Planting areas into several suitable species islands Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate

Water The 3 pillars of the OCP water strategy COP22 LABELLED program 7PROJECTS 2 Optimized water use Optimal management Mobilization at mine sites across of freshwater resources of non-conventional the entire value chain water resources In support of the Green Morocco Plan and the National Water Plan, OCP promotes the use of Extraction surface water as a substitute for groundwater. Urban wastewater treatment Since 2010, the Group has gradually 80% of the water used in the enrichment abandoned groundwater extraction from the OCP has implemented an ambitious program process is recovered and recycled. This aquifers in Tadla and Bahira. Eventually, all to create urban wastewater treatment performance is the result of improvements of the Group’s water needs will be met by plants to reuse wastewater for industrial made to the process, the separation and surface water. To this end, OCP launched a applications. Three stations have already decanting equipment used and the control program that will use surface water from the been built in Khourigba, Youssoufia, and and monitoring system that was introduced. Aït Messaoud and Al Massira dams to meet Benguerir that treat more than 10 million the industrial needs of its mining sites. m3 of wastewater per year for reuse in the Transportation phosphate washing process. In addition, part This program also makes it possible to of the wastewater treated by the Benguerir The Slurry Pipeline (see p. 72), which conveys geographically reallocate the withdrawal of plant will also be used to irrigate green surface water to draw from the Oum Er-Rbia spaces in the Mohammed VI Green City. 3 washed phosphate in the form of pulp from Naturally, as OCP’s capacities grow, its Eventually, more than 160 million m will be watershed. This approach is the result of a need for water will grow as well. Socially needed annually. However, by implementing Khouribga to Jorf Lasfar, saves nearly More than 3 modified industrial process: the washing plant Moreover, biogas recovered from the responsible, the Group has taken its the water program, more than 60% of 3 million m of water per year. With the commissioning of the second Slurry Pipeline, now enriches the ore while preparing it for wastewater treatment process is used to increasing need for water into consideration OCP’s industrial water needs will be met transportation. generate electricity, covering up to 30% of and made preserving water resources a by non-conventional water sources (treated which will connect Gantour to Safi, this 3 the wastewater treatment plant’s energy 70% top priority. The challenge is to use water wastewater and desalinated seawater). figure will reach 4.5 million m of water per year. This mode of hydraulic transportation needs. Additional wastewater treatment plant of the Group’s industrial efficiently and fulfill the current and future projects are under study in other cities such water needs of its mining and industrial is particularly eco-friendly, as the pulp’s water needs will eventually movement through the pipeline is aided by as Kasbat-Tadla, Fkih Ben Saleh, El Jadida facilities. In 2010, these facilities required and Safi. be met by non-conventional 62 million m3 of water. natural gravity. The Slurry Pipeline conserves the pulp’s moisture, and all of the water water sources used for transport is reused in the phosphate Seawater desalination processing facilities. OCP’s industrial development has been Enrichment accompanied by an increased demand for water. To supply the water to meet By adopting more efficient technologies, this demand without having to resort the new industrial enrichment units have to conventional water resources, OCP reduced their specific water consumption is investing in seawater desalination. by almost 25%. To this end, a desalination station was More than Combining industrial recently commissioned at the Jorf Lasfar industrial platform. Its annual capacity, development and water in its first phase, is 25 million 3m . Another station is planned for Phosboucraa, also 80% resources preservation to meet the water needs of OCP’s industrial of the water used in the development program. In total, the Group has reduced its consumption of conventional enrichment process is water per metric ton produced by half. recycled 70 71 Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate

Energy COP22 LABELLED program 7PROJECTS

The 3 pillars of OCP Group’s energy Strategy 1 2 3 Develop of OCP’s Implementation of energy Increase the use of cogeneration capacity efficiency measures renewable energy in the

In order to respond to the electricity requirements that will accompany its ambitious industrial energy mix development program, OCP has implemented a responsible and innovative Energy Program to Cogeneration capacity development, The implementation of energy efficiency reduce its carbon footprint. OCP Group plans to achieve medium-term energy self-sufficiency or producing carbon emissions-free energy: measures across the value chain : In order Cogeneration involves the recovery of to reduce energy consumption on all its sites, Increasing the amount of renewable energy through a number of innovative measures aimed at diversifying its energy mix. As a result, in the Group’s energy mix: As part of its OCP has been making use of low carbon energy sources while also optimizing consumption heat released by sulfuric acid production OCP has an energy efficiency policy aimed (exothermic reaction) to produce electricity at streamlining consumption, optimizing sustainable development strategy, OCP has throughout its entire value chain. decided to use renewable energy, including without emitting CO2. OCP is banking on production processes, and changing the this approach to reach its goal of tripling fuel sources used in industrial processes. wind energy, to meet its energy needs. The processing capacity. Combined with The Slurry Pipeline is a perfect example of Group has developed an electricity supply renewable energy, the cogeneration process this approach. It has allowed OCP to reduce model through Power Purchase Agreements will enable OCP Group to cover more than its carbon footprint by 500,000 metric tons (PPA). This will allow the company to meet the 70% of its electricity requirements by 2017 of CO equivalent per year. Eventually, this growing energy needs of the Phosboucraa, By 2018, 2 Gantour, and Khouribga mining sites by 2019. and 95% by 2020. figure will reach 930,000 metric tons of CO2 equivalent per year. In total, 95% of the Phosboucraa site’s energy 400 GWh/year needs are currently supplied by wind energy. 70% of wind power will supply By 2018, wind power will provide 400 GWh to the mining sites every year. of the Group's electrical the Group's mining sites needs will come from cogeneration and wind energy in 2017

Achieving electricity 72 73 self-sufficiency Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate

Slurry COP22 LABELLED Annual emissions of CO2 Pipeline 7PROJECTS equivalent will eventually be reduced by at least 930,000 metric tons

3 million m3 of water saved 38 each year million metric tons 90% of phosphate pulp reduction transported per year in logistical costs

Complete integration

The Slurry Pipeline is the backbone of The pulp travels a distance of 235 km from OCP Group’s new industrial strategy and the Khourigba mining site to the Jorf Lasfar of the Khouribga - Jorf Lasfar has revolutionized phosphate transport. It processing plant. The Slurry Pipeline’s route 235km contributes to OCP’s sustainable industrial was optimized to reduce its length and value chain Total length of main performance while also responding to food incorporate natural slopes. As a result, the security concerns resulting from climate phosphate is largely transported by gravity. and lateral pipelines change. Launched in 2014, the Slurry The pipeline begins at an altitude of 775 Pipeline is the longest phosphate transport meters and ends at an altitude of 66 meters pipeline in the world. A true technological at its destination. This design is a first in and environmental achievement, it Morocco in the domain of ore transportation. 775 M ALTITUDE profoundly changed the operation of OCP 66 M ALTITUDE Group’s value chain. The project responds Ultimately, the Slurry Pipeline will transport to a three-pronged objective involving cost 38 million metric tons of phosphate to the optimization, increased transport capacity, Jorf Lasfar processing units every year. KHOURIBGA and environmental preservation. The idea is Previously, only 18 million metric tons could SIDI DAOUI to transport phosphate as a pulp composed be transported annually. WASHING of 60% ore and 40% water. Previously, PLANT EL JADIDA the phosphate was dried before being transported by railroad. MERAH LAHRACH WASHING PLANT HEAD STATION JORF PHOSPHATE TERMINAL BENI AMIR STATION OULED FARES WASHING PLANT A technological HUB WASHING PLANT revolution in the service of 74 sustainable development 75 Annual Report OCP Annual Report OCP A Group mobilized 6 for the climate

COP22 Researcher LABELLED Villas 7PROJECTS 9 Researcher Villas

19°C 27°C temperature temperature in winter in summer

Rainwater

Graywater Watering Blackwater The innovative and unique Researcher Villas, The bio-climatic architecture of the built by OCP in the Benguerir Mohammed Researcher Villas addresses the region’s VI Green City, are designed to accommodate climate without resorting to conventional the University’s researchers. heating and air-conditioning methods. The manifestation Combining local expertise with innovation, The natural air conditioning system uses a BIOCLIMATIC OPTIMAL AND they incorporate environmental concepts gravel bed that serves as a furnace in winter of an innovative CONSTRUCTION SUSTAINABLE through bio-climatic building designs and and a cooling unit in summer. MANAGEMENT sustainable water and energy management techniques. These models for sustainable development ecological and OF WATER RESOURCES were also designed with responsible water These 9 Researcher Villas are manifestations management principles in mind. In addition architectural of an innovative ecological and architectural to rainwater recovery, the graywater approach. They combine traditional produced in the buildings is separated and approach methods and materials with state-of-the-art processed through the wastewater treatment environmental practices. plant (STEP). The water is then used to water green spaces. The Researcher Villas boosted local production and mobilized many Benguerir These high-tech villas were designed with artisans, with the design of traditional TRNSYS software and are fully equipped Moroccan medinas inspiring solutions to with temperature probes and sensors to problems related to natural ventilation, manage energy storage in the gravel bed. sunlight, and wind resistance. The project Renowned for their innovation, they were the PASSIVE ENERGY also uses innovative technologies in its subject of research published by the Institute RENEWABLE approach to optimal resource management of Electrical and Electronic Engineers, a (THERMAL INSULATION ENERGY and insulation. Heat is stored through a wind professional association with over 400,000 AND STORAGE) tower connected to a gravel bed, and water is members and the world’s foremost authority heated with solar energy. in the field.

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Foum El Oued COP22 3 structuring LABELLED facilities during technology PROJECTS 7 phase 1 of the cluster project (by 2018) : Eco-construction Performance > The Laayoune Mohammed VI and sustainable development Polytechnic University, which will urban development eventually admit around 2,500 The Foum El Oued Technology Cluster is students. It will focus on research designed to be both efficient and pleasant. and development in fields relating The Foum El Oued Technology Cluster’s Clients can go there to learn, live, work, to agriculture in arid climates, architectural design is based on a sustainable and be entertained. The Technology urban development model. However, it was water, and the environment; Cluster is the ideal location for a balanced also inspired by the distinctive buildings and pleasant life. All its components are of the Southern regions* and the latest accessible, surrounded by nature, and > The School of Excellence technological innovations in water and equipped with state-of-the-art sustainable for secondary education and energy management. This delicate balance development technology, thus contributing between sophisticated urban infrastructure preparatory classes for higher to a new dynamic in the region. and the preservation of nature has allowed education, with a capacity the Technology Cluster set itself apart in the of 550 students; region. Estimated budget of > The Laayoune Industrial Expertise Center, with a training 1,200 capacity of 200 people per day, permanent jobs for OCP employees and partners. 2 BMAD in the operational phase The Foum El Oued Technology Cluster is a principles, especially those adapted to the new green city that has created a hub for Saharan environment. This approach also knowledge and sustainable technology. includes the innovative design of the Foum Located on the shores of the Atlantic El Oued wastewater treatment plant, as Ocean, it is built around a 50 hectare well as the use of cutting-edge systems lagoon on an area of 126 hectares. The for recycling wastewater, reusing organic 3 Cluster’s architecture is unprecedented waste, and producing algal biomass. The 1,200 m in the region, incorporating an innovative Technology Cluster is also at the forefront design that allows for the preservation of digital urban innovation. It incorporates a water treated by the of the local environment and biodiversity. large number of smart systems centered on Flexibility and reliability Liveable facilities wastewater treatment plant The city was carefully designed to meet four key themes: per day international environmental standards, and The development project incorporates other The Foum El Oued Technology Cluster’s a number of impact studies were carried ≥ Environmental technology (urban important principles beyond sustainability. was designed with the well-being of the out before construction in order to protect technology and renewable energy) It also distinguishes itself through its population as a priority. Each block includes the surrounding natural environment. The flexibility, with the inclusion of a number services and community facilities designed city represents a total investment of 2 billion ≥ Eco-Construction (sustainable buildings 60% and infrastructure) of adaptive features that contribute to to facilitate the movement of pedestrians. dirhams, with construction launched in 2016. environmental preservation in the Southern This in turn creates meeting points for of the School of Excellence’s The objective is to back industrial projects ≥ Eco-Mobility (transportation, accessibility, regions*. It protects the area’s natural residents and visitors and improves all hot water requirements at Phosboucraa through training, capacity and mobility) resources and promotes biodiversity by using aspects of social life. building, and support to new local and technology to manage sea level fluctuations, covered ≥ Urban Services (city, organization, regional businesses. produce renewable energy, and ensure management, and decision aid tools). reliable circulation. The urban development plan developed for the Cluster aims to produce low carbon footprint spaces through the use of a renewable energy mix, including photo- voltaic power, biomass power, wind energy, A city 2,500 etc. The Technology Cluster is a zero-waste students and researchers and zero-garbage area that also integrates of knowledge 78 and strengthens sustainable development and innovation 79 for the Southern regions*

* Guelmim - Oued Noun, Laâyoune - Sakia El Hamra,

Annual Report OCP Dakhla - Oued Ed Dahab Annual Report OCP A Group mobilized 6 for the climate

Building COP22 Africa’s LABELLED capacity to 7PROJECTS face climate 65 independent World Climate Almost change Simulations logged 17% of global greenhouse gas emissions are produced by agriculture Over 100,000 decision-makers throughout Africa targeted by the project

The Mohammed VI University partnered In addition to the promotion of the Climate- with the NGO Climate Interactive to build Smart Agriculture approach to reducing Africa’s capacity to fight climate change. greenhouse gas emissions, the partnership This fruitful partnership resulted in several aims define the most pressing issues in 16 «Train-the-trainers» Climate-Smart simulations of climate change negotiations Africa while taking local conditions into in different African countries and also led account. The objective is to have over 100,000 Agriculture workshops to train future to the development of a new Climate-Smart decision-makers across the continent, Agriculture decision-making tool. including leaders, policy makers, academics, scientists, and journalists, as well as a large trainers held in Morocco, Ethiopia, Ghana, This ambitious project aims to strengthen number of committed young leaders. the capabilities of African leaders in the Kenya, Nigeria, Senegal, South Africa, fight against climate change while also preparing them for participation in climate and Côte d’Ivoire. negotiations. The program offers training for future trainers and enables the use of the C-ROADS computer simulator across the continent.

A systemic approach for African leaders 80 81 Annual Report OCP Annual Report OCP 07

Responsible performance, first and foremost

82 83 Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost

Managing the

The Group’s objectives are environmental footprint part of a responsible approach centered on sustainable growth Each year, the Group makes significant green investments that are designed to save water, which drives its mining and energy, and mining resources in order to drastically reduce its environmental impact at all industrial development program levels of the value chain. and its desire to create value for all its stakeholders. Reducing fuel Cleaner production The first thermoelectric consumption by 50% in Jorf Lasfar power plant in Benguerir In the interest of sharing and in Khouribga To reduce sulfur dioxide emissions by The Group has invested in the development co-construction, the Group 96%, OCP has implemented an innovative of clean energy by constructing its first As part of the Energy Program, the gradual technology called «SULFACID» on a second thermoelectric plant. Located in Benguerir, contributes to supplying world abandonment of drying resulted in a 50% sulfuric acid production line in Jorf Lasfar. it has a 1MW capacity and uses CSP reduction in fuel consumption. This solution brings OCP a step closer to (concentrated solar power) technology agricultural needs, preserving CO analyzers are being installed in the 2 achieving its desired results. Adapting the combined with an Organic Rankine Cycle the environment and supporting drying ovens to continue the implementation site’s two phosphoric acid production lines turbine, and was designed in partnership of the plan to reduce greenhouse gas (GHG) and using the pulp conveyed by the Slurry with the Research Institute for Solar Energy the communities in which it emissions. Pipeline has reduced fluorine emissions and and New Energy (IRESEN). made it possible to completely eliminate dust operates. As such, in 2016, the emissions after dry milling of phosphate was discontinued. Targeted programs Group multiplied its initiatives to Carbon review : promote projects that generate for eliminating waste OCP was one of the first African State-of-the-art Building upon the expertise of partners companies to undertake a carbon review investments, skills and jobs that infrastructures to meet who are leaders in their field, OCP of its activities. A tool to calculate its implemented environmentally friendly waste carbon footprint was created, making it have enabled it to strengthen its water needs sustainably management through innovative methods. possible to track the impact of its projects The recuperation, recycling, recovery, and relationships with its business on the CO footprint. The tool, based on 2 Water is a primary concern for OCP. disposal of waste occur according to the the ISO 14064 standard, allows for the The Group’s water strategy relies on three regulations in effect and under the strictest network. identification of activities that emit the main components: optimized water use, conditions. Reducing the root cause of waste most carbon and of control actions. the optimal management of freshwater production, establishing dedicated areas The Group’s carbon footprint stands at resources, and the use of non-conventional with a controlled environmental impact for 3.2 million metric tons of CO equivalent. 2 water resources. For this purpose, the Group storage, and the elimination of industrial On the scale of industrial facilities, OCP commissioned a seawater desalination plant waste are also some of the responsible introduced a heat recuperation system in Jorf Lasfar. Inaugurated by His Majesty management actions led by the Group. (HRS) in its sulfuric units (in particular King Mohammed VI in February 2016, the In 2016, more than 95% of energy- or at Jorf Lasfar and Safi), allowing it 3 facility has a capacity of 25 Mm /year in its mineral-rich waste was processed or reused to recuperate the vapor generated first phase. for industrial purposes. Approximately 80% during the process and to apply it to the of industrial waste is eliminated through production of electrical energy, intended specialized waste disposal streams. to meet the needs of the site. In addition, the Group has implemented a by-product recuperation program through which 736,000 metric tons of useless components were processed at the Youssoufia washing plant in 2016.

84 85 Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost

An Ambitious Tree Planting Program Creating value

The objective of the Group’s strategic for Stakeholders rehabilitation plan is to rethink what happens to mines when they are closed. OCP has developed region-specific scenarios that take into account the area’s climate as well as Because of its deep local roots, the Group is profoundly aware of its responsibility to its stakeholders, and prioritizes the health local cultures and traditions. It was in this and safety of its employees and communities. The Group promotes job creation everywhere it operates, and, in a broader sense, supports context that OCP continued its ambitious the socio-economic development of the local populations. The Group’s programs, designed in partnership with local contributors, are run tree planting program in 2016: in Khouribga, by its foundations: the OCP Foundation and the Phosboucraa Foundation. Efforts to innovate focus mainly on developing adapted fertilizers, 300 ha developed and 110,000 trees planted; or specialized products in order to provide each farmer with products specifically suited to their soil and crops. in Gantour, 240 ha developed and 67,000 trees planted. Supporting and developing 95% Green Electricity talent in Boucraa When it comes to managing its human capital, the Group has a singular vision: In Boucraa, 95% of electricity is generated to build an agile, innovative company from renewable energy generated by the that is able to reinvent its partnerships recently-installed wind farm. by placing digital technology at the heart of transformations. The Group is also committed to providing a fulfilling work environment in which employees can grow in well-being. In 2016, OCP’s Corporate Training Institute received international accreditation. Also, new programs were established and existing programs were enhanced, employees were enrolled in the Mohammed VI Polytechnic University’s MBA program, and the Digital Learning approach progressed.

Customized and enhanced programs

Through an offering that covers the majority of the Group’s trades, the Corporate Training Institute promotes employees’ individual and collective learning throughout their careers and facilitates the exchange of know-how, the dissemination of good practices, and the development of synergies. This offering is co-developed by managers and experts, The CorpotateTraining and deployed internationally in collaboration An ambitious with major institutions. To put these learning Institute was awarded experiences in the context of OCP Group’s CLIP* international and standardized reality and to share its expertise, a body investment program of Internal Education Managers banks on accreditation by the internalized training. These managers prestigious EFMD**. is being implemented are called on to create content, conduct to meet the world’s or co-conduct training sessions, provide The Group was the first testimonials from practitioners, and develop company in Africa to growing demand and manage case studies. for food receive this distinction.

86 87

* Corporate Learning Improvement Process ** European Foundation for Management Development Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost Ensuring employee Employee safety : safety an absolute priority

One of the Group’s priorities is to safeguard Safety is one of the Group’s key values. the health of, and ensure the safety of, all Sharing good practices, through awareness- its employees. This requirement is reflected raising measures and training programs by a dual commitment: to earn the trust for teams and stakeholders, including of both employees and customers through suppliers and co-contractors as well as reliable and effective solutions, and to their subcontractors, is an integral part of 2016 news anticipate occupational hazards in order day-to-day management at every level of the to provide employees and subcontractors organization. Milestones for performance the best possible working conditions. In analysis and review, established as part 2016, the company continued to deploy the of the periodic meetings of the executive The HR Academy and its flagship program «Future OCP Zero Accident Program as well as and steering committees, are part of a the VOSE, GIASE, and EVEPS operational continuous improvement and systems HR Leaders», in partnership with the Université Paris and governance standards, ADRPT risk optimization approach. Dauphine. analysis, and standards involving confined spaces, work at heights, lockout-tagout, management of Individual Protective The multiple-stakeholder SR Academy, to stimulate CSR Equipment (IPE), etc. A vigilance culture within the Group. Risk prevention is an integral part of all the improvement initiatives undertaken by Structuring of the Learning component of the Discovery the Group. This vigilance culture has been adopted by all teams. The Group provides program. regular training and carries out staff-wide awareness-raising campaigns. Training sessions are also held to inform the Group’s The Train-the-Trainer program for HSE Safety subcontractors about field safety standards that they must follow. Strengthening synergies with the Mohammed VI Polytechnic University: some 40 participants in the General Management program, a collaborative effort between Mohammed VI Polytechnic University’s Africa Business School and Columbia University.

Virtual platforms

In 2016, the Corporate Training Institute continued to deploy its Digital Learning approach with the launch of the VIT (Virtual Immersive Tour). The VIT is a virtual platform that uses 360˚ spherical photography OCP strives for operational technology to provide virtual tours of facilities and descriptions of the Group’s industrial excellence, and trains processes, from geological prospecting to port activities, to give users an understanding all of its employees to play of the Group’s value chain. Designed in an active role in their own close collaboration with management, today the VIT is run by our Internal Education safety and that of their Managers in a blended learning format. The coworkers. Edumine platform also offers subscriptions that give users access to top-notch online mining and geoscience training programs as well as tools for simulation, conversion, and mine modeling.

88 89 Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost

≥ Launch of the «Sponsored Schools» 2016 in Brief Empowering communities The OCP Foundation’s program that provides 20 public schools a quality educational offering focused on Acting independently or in partnership with Programs ≥ Royal Inauguration of the Foum El student success. local organizations, the Group designs, Oued Technology Cluster: Launch of introduces, and develops programs to Education; health; youth employability; construction on the Foum El Oued ≥ Opening of the Coworking Space in support local communities. Its operational agricultural, entrepreneurial, and Technology Cluster, future city of Khouribga New Work Lab Khouribga) activities serve as catalysts and make sociocultural development; the fight against knowledge and innovation serving the (with networking and entrepreneur positive, lasting contributions to the poverty; etc. All projects developed by the Southern regions, presided over by His support events). communities in which the Group operates. OCP Foundation carry considerable social Majesty Mohammed VI. By working in partnership with NGOs significance. Whether acting alone or with ≥ Acceleration of more than 20 start- and civil society, the Group contributes to partners, the OCP Foundation is active ≥ Launch of the Women Innovation Circles, ups from the 2nd Class of the EMPACT creating jobs and providing training, while anywhere the Group is established, both in a program designed to help women in the acceleration program for social investing in infrastructure and access to Morocco and internationally. region develop their skills. entrepreneurship. basic services. Agricultural ≥ Health & Outreach: Deployment of a Development ≥ The Khouribga Media Library: Doors Mobile Hospital, 2,414 free services Committed, supportive opened to the public, with 1,700 rendered and medication distribution for memberships, 6,000 beneficiaries, and needy patients (El Marsa, Laayoune). programs OCP 340 workshops. Entrepreneurship Social Action and Network Youth Support ≥ Launch a second Learning Center in Run by its foundations, the Group’s human ≥ «Street Art Caravan» in Safi, Youssoufia, development programs are designed in Dakhla to train an average of 600 people and Benguerir: 15 mural paintings, a wall per year. accordance with each region’s specificities. for young local artists to collaborate on, Since its inception, the OCP Foundation «Graffiti Lab» educational workshops, etc. had been a means of showing the Group’s ≥ Innovation: Production of 500 metric tons commitment and mobilizing its efforts. of silage fodder from vegetable crop by- 5 ≥ Design Explore in Safi — 5 training products. It deploys OCP’s human development workshops and 25 young artisans trained programs in the country’s 16 regions, and its in the development and improvement of ≥ 400 ha in Foum El Oued mapped with geographical scope spans the entire African ceramics in Safi. continent and stretches into Asia, where the ICBA and INRA for soil salinity. OCP Foundation manages flagship projects ≥ LYDEX: Back to school 2016/2017 for the to meet local populations’ needs and works ≥ 23,630 small farmers benefit from the 198 students enrolled in CPGE (Higher program to rehabilitate the irrigation to strengthen the South-South Cooperation. Culture OCP POLICY CENTER School Preparatory Classes) and opening and Heritage networks in the provinces of Tata and of School of Excellence’s residences Guelmim.

Co-constructed initiatives The Phosboucraa ≥ 25,769 dromedaries treated under the 2016 in Brief camel health program in the Dakhla Oued The OCP and Phosboucraa Foundations Foundation’s Programs Eddahab region are long-term initiatives, and their ≥ International Conference on Pulses co- co-constructed measures create shared organised with the ICARDA, the INRA, and Since 2014, the Phosboucraa Foundation ≥ 42 Projects funded: Cooperatives & very value. To do this, they collaborate with the FAO in Marrakesh: 447 participants has been a means for the Group to express small businesses created and supported local contributors and stakeholders, and from 34 countries, including 11 African its societal commitment on a day-to-day coordinate joint actions with all those who countries. basis in Morocco’s three Southern regions. ≥ 200 young people passed the TFI & TOEIC identify with their values and rely on strategic It supports and initiates targeted community local and international partnerships. ≥ Cereals & Legumes Caravan: Launch of a and support measures to foster social and ≥ 159 Merit Scholarships awarded campaign to perform 4,900 soil analyses economic fabric offering strong potential. and disseminate good agricultural The Phosboucraa Foundation is committed ≥ 2,145 students introduced to practices to nearly 5,800 farmers. to developing the Southern regions’ most entrepreneurship in partnership with Injaz valuable asset: its men and women. It does ≥ Launch of the Cooperation in Africa so by supporting farmers, strengthening Programs targeting six countries, small business capacity building, facilitating including Togo, Benin, and Madagascar access to care and helping women and young (developing fertility maps and Agricultural people discover their skills. Caravan, training, etc.) Saharan agriculture ≥ In Ethiopia: Launch, in partnership and environmental protection with the Agricultural Transformation Agency (ATA) of the 3-year agricultural development project involving the teff Urban Social production value chain. development development

≥ Reached the milestone of 1,000 OCP Foundation scholarships awarded to 90 students from top schools based on merit 91 and need. 5 ≥ Skills centers : Deployment of a new model for youth employability that aims to provide enhanced support and individualized coaching for 240 young people from Youssoufia and Benguerir until they achieve positive results.

Annual Report OCP Culture Annual Report OCP and sport Entrepreneurship Responsible performance, 7 first and foremost

Staying ahead of the curve

Renowned worldwide for its know-how and expertise in the phosphate industry, OCP Group continues its innovation efforts to differentiate itself from its competitors, ncrease its competitiveness, reduce its costs, meet market demands and provide sustainable, high-performance agricultural solutions.

R&D serving responsible performance and innovation

Innovation is in OCP Group’s DNA. It is also key to maintaining an edge in the phosphate industry while meeting customers’ current and long-term needs and maintaining the The synergy between flexibility needed to better serve agriculture. This is why the Group’s policy is to OCP Group and its continually invest in R&D aiming at building African partners has further value creation and impact. This approach has added numerous allowed for research achievements to the 2016 to 2020 project to categorize soils and portfolio. In addition to the continued development of high-performance products develop new products and innovative biotechnology and agronomy perfectly suited to crop processes, the Group has made a number of major advances : production.

Innovative products and processes

The forming of a dynamic innovation Building a portfolio of more than a hundred 2016 was marked by exploration and - Ongoing development of granules made ecosystem to create an Open Innovation high impact project, including 40 operational advances in innovative products and from natural phosphate to treat water. processes : model through a collaborative approach with projects aiming at improving performance - Ongoing efforts to recover and recycle top-tier partners and multidisciplinary teams and product quality. waste and other valuable chemical (X-Teams). - Development of a purified acid manufacturing process that uses components in the phosphate value chain. membrane technology. - Development of several phosphate-based materials: thermal energy storage in 92 partnership with Prayon, etc. 93 - Recovery of sludge from phosphate washing plants through microhydrocycloning: commissioning Project to set up laboratories in joint The launch of a high level training program at the Khouribga site. partnership with best in class Research in biotechnology, in partnership with the centers. Mohammed VI Polytechnic University. Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost

An ecosystem of A center dedicated to An educational model An innovation fund innovation and research research and high-level for excellence to promote innovative

In 2016, the Group continued to deploy higher education Located at the heart of the green city Ville agricultural projects research programs with universities and Verte Mohammed VI at Benguérir, the Lycée specialized institutes in Morocco and around Founded for research purposes, the d’Excellence (LYDEX) is a top-level scientific OCP has also shown its commitment the world. Its main actions in this area Mohammed VI Polytechnic University based and technological private institution resulting to innovation by creating an investment included : in Benguerir is an exceptional environment from a partnership with the Ministry of fund called «OCP Innovation Fund for for state-of-the-art training and academic National Education, Professional Training, Agriculture,» an incentive framework that - Completion of engineering studies to excellence. Open to the business world, this Higher Education and Scientific Research. promotes innovative business projects. establish a biotechnology platform at the institution makes Morocco an international Aligned with international standards, LYDEX In addition to financial resources, this Mohammed VI Polytechnic University in platform for innovation to meet the African is the model for achieving educational fund is an asset and an opportunity for Benguerir; continent’s major challenges and issues. excellence based on meritocracy, social mix companies and entrepreneurs, as it places Based in Morocco, the University contributes and academic excellence. the Group’s assets at their disposal: the - Convergence of biotech organizations to developing the national knowledge national and international partner network, to develop shared expertise centers and ecosystem by creating synergies between the entrepreneurial momentum, and the privileged partnerships, notably with the different stakeholders. It has risen to the knowledge ecosystem. The fund has in Center for Protein Engineering at the rank of a world-class university through its portfolio several completed projects Université de Liège; several academic partnerships. Through in various sectors, including Big Data targeted research programs, the University technology for the agricultural world; dairy, - Development of partnerships with African aims to provide answers to the major cactus and agricultural product processing; universities, with particular focus on challenges facing the continent, such as and generating solar energy for the food developing agriculture across the continent; rational management of natural resources, industry. - Technical and financial structuring of development of human capital, sustainable 42 projects selected after OCP’s national industrialization, and adaptation of public solicitation for projects to benefit Moroccan policy. To accomplish this, the Mohammed universities; VI Polytechnic University focuses its teaching model entirely on innovation - Strong collaboration with Cadi Ayyad and experimentation. The Green City and The OCP University and Hassan II University, notably Mohammed VI Polytechnic University to develop new materials from Moroccan teaching sites are equipped with life-sized Agricultural phosphate. «Living Labs» where researchers can Fund supports experiment in real-world situations. the potential and current stakeholders of the agricultural patents3 world. A model for learning 17 and innovative publications research through experimentation, 2 ,100 90 the labs adopt indirect jobs, including million dirhams invested 7 a multifaceted 1,800 farmers by the end of 2016 statements partnership approach that promotes openness 400 6 semi-industrial pilots to the research direct jobs and 2 under development and knowledge ecosystem.

94 95 Annual Report OCP Annual Report OCP Responsible performance, 7 first and foremost

The OCP agricultural A fertilizer Supporting the caravan model for each region

agricultural world The Group provides support though concrete The fifth edition of the Agricultural Caravan, actions that demonstrate its solidarity dedicated to Cereals and Legumes, led to with the rural world. The OCP Agricultural the development of new fertilizers. For each Caravans are an example of these actions: of the seven regions visited, NPK formulas they are an outreach tool that promote the adapted to local agroclimatic conditions were Committed to an integrated approach that benefits best agricultural practices, in Morocco offered to farmers in the region. These new small farmers, the Group, through the OCP Foundation, and beyond. First launched in 2012, the fertilizers are the result of nearly 5,000 soil implements measures that strengthen farmers’ Agricultural Caravans were held for the fifth analyses carried out prior to the Caravan. consecutive year in 2016. Close to 5,800 farmers received training capacities and increase their productivity. In Morocco, on good agricultural practices at the same this support involves developing sustainable agriculture. They are a mobile educational platform time. The objective is to understand the This is a strategic priority for the Group, whose efforts designed to benefit farmers. Each leg is particularities of each region’s soil and organized over the course of two days, determine its physical and nutritional needs. helped raise the use of phosphate fertilizers in Morocco during which 700 farmers can attend. The to the level targeted in the Green Morocco plan’s goal practice of rotating cereals and legumes, which improves soil health, is at the top Excellent attendance for 2020. To achieve this task, the Group adopted of the agenda. Likewise, attendees are an integrated approach that involves many valuable extensively educated about the importance of for the agricultural agricultural stakeholders. The Agricultural Caravans in choosing appropriate fertilizers to ensure soil fertility and boost crop yields. Educational techniques workshops Senegal, Mali, Guinea and Côte d’Ivoire, as well as the workshops are held to discuss the benefits of schools in the field launched in Côte d’Ivoire, Nigeria, balanced fertilization, cultivation techniques, During each leg of the Caravan, workshops Guinea, Ethiopia and Kenya, perfectly illustrate the crop preservation and sustainable water led by experts welcomed groups of 50 management. The Caravans are supported by to 60 farmers. The attendees were Group’s commitment to promote efficient, sustainable the Ministry of Agriculture and Fisheries and taught about harvesting techniques, agricultural productivity across the African continent. all the national fertilizer distributors. balanced fertilization and sustainable water management, thereby raising their The success of the Caravans led the Group to awareness to good farming practices. duplicate them across the African continent. These workshops address technical crop Fertility : a key element Package contracts OCP Group is committed to improving access protocols, typical agricultural processes to appropriate fertilizers and optimizing and soil analyses with the mobile laboratory. Launched in 2010, the fertility map is a The Group offers its clients a contract that agricultural productivity through mutually A very popular attraction, the mobile lab geographical soil database. It provides enables them to bundle a volume of fertilizer beneficial cooperation. In an effort to enables farmers to learn about innovative better knowledge of soil composition and its with agricultural services. Thanks to package support farmers and promote the adoption technologies that can improve their yields. fertilizer needs to allow for balanced fertilizer contracts between the Group, the OCP of balanced fertilization, the Group shares its use, both in quality and quantity, that will Foundation, and its distributors, farmers know-how and its expertise with its African result in the highest productivity. To date, receive support from distributors in the field. partners. more than 6.7 million hectares of farmland have been mapped.

Innovative and appropriate fertilizers

The Group is committed to offering innovative, appropriate and high-performance fertilizers that support the balanced fertilization of Morocco’s soils. This approach has been ongoing since 2012, with the launch of the feed line of products, which are phosphorous- and calcium-based nutrient supplements for livestock. Also, the water-soluble MAP fertilizer, adapted to microirrigation systems, was released in 2013. 96 97 Annual Report OCP Annual Report OCP rinted on recycled pape r P 2016 ANNUAL REPORT 2016

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