OCP GROUP ANNUAL REPORT 2012 OCP GROUP ANNUAL REPORT 2012 His Majesty King Mohammed VI may God glorify Him. CONTENTS PREAMBLE 6 TAKING ACTION FOR A SUSTAINABLE AND POSITIVE MARK 9 THE OCP IDENTITY 11 1 - THE BIOMETRIC PORTRAIT OF OCP 12 2 - THE GENETIC CODE OF OCP 14 3 - VALUES WE COMMIT TO 23 PREAMBLE 4 - A STRATEGY OF EXCELLENCE 24 The present report covers the activities carried out by OCP from January 5 - INDICATORS IN THE GREEN 26 1st to December 31st 2012 and should be read in conjunction with our consolidated financial statements and accompanying notes for the year ended December 31st, 2012, included in this annual report 2012. TAKING ACTION TODAY… 33 Financial data has been prepared in accordance with Moroccan generally 1 - PRACTICING A RESPONSIBLE LEADERSHIP 36 accepted accounting principles, unless otherwise specified. All Dirham figures are Moroccan Dirhams, unless specified otherwise. 2 - CULTIVATING OUR HUMAN RESOURCES 40 3 - ANTICIPATING AND INNOVATING 46 4 - MASTERING AND DEVELOPING 52 … PavING THE WAY FOR A BETTER TOMORROW 59 1 - CONTRIBUTING TO GLOBAL FOOD SECURITY 62 2 - PROTECTING THE ENVIRONMENT 68 3 - SERVING THE COMMON GOOD 74 4 - MAKING ETHICAL BEHAVIOUR OUR CODE OF CONDUCT 94 TAKing Action for A sustAinAble and positive mark يرض A narrow reading of our activity can be misleading and would suggest that our value chain goes simply from phosphate mining to fertilizer production… Settling for such a description would mean missing out on who we really are, beyond what we make. The Group is a vibrant entity with its own personality, history, ambition and values. On our action depend millions of men and women worldwide. When feeding the planet is your mission, the responsibility that goes with it gives every sense to our commitment. Whether an employee, client, partner, farmer, artist, athlete, community actor or simply a citizen, in Morocco or elsewhere, the human being is at the very heart of OCP’s action. An action which is widely reflected in its contribution to the wealth of the country and the well being of the communities as well as in our will to conduct our business with respect to the environment. Because a lasting performance requires the creation of shared value, the Group commits. Wherever it goes, it leaves its mark. A sustainable, positive mark. Mostafa TERRAB Chairman and CEO THE OCP IDENTITY 1 - THE BIOMETRIC PORTRAIT OF OCP 2 - THE GENETIC CODE OF OCP 3 - VALUES WE COMMIT TO 4 - A STRATEGY OF EXCELLENCE 5 - INDICATORS IN THE GREEN 1- THE BIOMETRIC 50 billion dirhams PORTRAIT OF OCP invested in 2012 1 - ECONOMIC 25 % LEADERSHIP share in total value of goods exported by Morocco OCP, active across the entire phosphate value chain MINING CHEMICAL PROCESSING MARKETING billion dirhams Phosphoric Phosphate 59.4 Phosphate Exports & Mining Enrichment acid fertilizers of turnover reserves local sales production production st 27.1 3.25 4.48 Million tons Million tons Million tons 1 30 % Fertilizer exporter worldwide global market billion dirhams Volume of processed rock Rock Volume of Volume of phosphate of phosphates share 14.1 phosphoric acid fertilizers in all forms of net income 2 - ENVIRONMENT 3 - SociAL MANAGEMENT commitment 6 % of the national GDP in 2012 150 000 50 76 180 tons of recovered energy tons of paper collected Small businesses OCP Skills and mineral value waste for recycling created as part of OCP Skills projects-supported ( support programme 160 for young entrepreneurs ) clients worldwide 700 sqm 1/3 +200 1.2 billion dirhams of solar panels ( new flexible decrease of carbon foot- associations supported invested by OCP Foundation to sup- technology ) purchased for the print, mainly through the via the capacity-building port the local market, conditionnal 23 000 roofing of OCP buildings Slurry Pipeline project programme on development actions employees 85 % 36 690 15 000 15 of recycled used water soft Skills teaching hours Indian farmers benefiting subsidiaries and joint ventures provided to OCP Skills from the Agricultural participants in 2012 Extension Services programme THE BIOMETRIC 13 PORTRAIT OF OCP INTEGRATION, DIVERSIFICATION AND INNOVATION: KEY FACTORS OF THE GENETIC OCP’S LEADERSHIP 2 OCP is active in each link of the phosphate value chain: from the mining to the marketing of high CODE OF OCP added value products. OCP offers a wide range of products including phosphate rock, phosphoric acid, and phosphate fertilizers designed for different needs and uses. This allows the Group to diversify its clients’ portfolio and keep pace with the market’s evolutions. A leading actor in the world market of the determination and commitment of a Phosphates, OCP is both a Moroccan and global responsible leader. success story as the Group’s positive economic Underpinned by a clear, unifying and and financial indicators show. mobilizing strategic vision, the action of OCP Phosphate rock million tons million tons st 26.5 17 Building on nearly a century of industrial, draws into the gravitational pull of a culture OCP is the 1 exporter worldwide of exported and processed in commercial and social performances, of excellence and feeds on values shared by phosphate rock with 33 % of market shares. delivered locally OCP units the OCP Group looks to the future with every single associate. Phosphoric acid 27.1 million tons 9.4 million tons extracted and processed exported ENGRAVING OUR IMPRINT FOR NEARLY A CENTURY An intermediate product between phosphate rock and fertilizers, phosphoric acid is actually The Office Cherifien des the result of an enrichment of the original ore Phosphates is created obtained through a chemical reaction with dif- 3.3 million tons 1.1 million tons ferent acids at different concentration levels. P2O5 produced P2O5 exported As for purified phosphoric acid, it is produced in smaller quantities to supply different food Maroc Chimie The OCP is created Group is born and industrial applications. OCP is the 1st exporter worldwide of phosphoric acid, with a 46 % global market share. Various joint ventures are Phosphate fertilizers created with Indian and Pakistani partners Maroc Phosphore (MP) • MAP (a binary fertilizer consisting of two I starts operation in 1976, MP II in 1981, fertilizing agents: phosphorus and nitrogen) and MP III/IV in 1986 • DAP (a binary fertilizer consisting of two 4.5 million tons 4.0 million tons fertilizing agents, the most commonly used produced exported • TSP (trisodium phosphate) • NPK (a ternary fertilizer made of three JESA, a joint venture with elements: phosphorus, nitrogen and Jacobs engineering, is created, potassium). and OCP inaugurates offices in Office Chérifien Brazil and Argentina des Phosphates becomes OCP SA Launch of the social programme BSFT ( Black Sea Fertilizer Trading OCP Skills for fostering job creation Company ) joint venture is created THE GENETIC THE GENETIC CODE OF OCP 14 15 CODE OF OCP OCP also introduced a new range of phosphate • Animal Feeds: these are animal feed sup- A STRONG PRESENCE GLOBALLY AND LOCALLY products to the market, based on a high per- plements. These high-quality, nutritious formance, sustainable agricultural approach: products are intended for the manufactu- Since its inception in 1920, the Group has Finally, to ensure proactivity and client proxi- Performance Phosphate Products ( PPP ). ring of farmed animals ( livestock, poultry… ) significantly grown thus consolidating its glo- mity, OCP left its marks on all five continents • Direct Application - TERACTIVTM: it is an all- premixes. bal leadership position. opening offices and chemical sites while crea- in-one range, which includes both fertilizer Source of Phosphorus and Calcium, animal ting strategic alliances with local partners in and soil improver, and continuously releases feeds help reinforce animal bones and acce- Enabling a timely response to market needs its main clients’ countries. phosphate. Four formulas have been deve- lerate their growth. and changes, OCP orchestrated the expansion loped to meet the nutritional needs of acidic Two formulas have been proposed: Dicalcium of its four local historical sites, resulting in the The Group’s portfolio currently counts more and sandy soils or for cocoa and corn crops. Posphate ( DCP ) and Mono Dicalcium Phos- increase of the Group’s production. than 160 clients who benefit from a segmen- phate ( MCP ). ted, flexible commercial offer. Initiated in 1965 in response to market With a 21 %* participation to the global needs, the phosphate valorization activity The major logistics and port infrastructures nd production of phosphate, Morocco is the 2 resulted in the creation of chemical units initiated by the Group helped bolster intense largest producer, after the United States. located near ore deposits. These new units are commercial activities. either 100 % subsidiaries of the Group or joint Every year, several hundreds of ships and more ventures with major international players in than 14 million tons of goods ( rock, phos- the fertilizers sector. phoric acid and fertilizer ) transit through the four phosphate ports linked to the mines and chemical plants. mine sites * * KhouribgA 18 Mt YOUSSOUFIA 3.6 Mt PHOSPHATE ROCK phosphATE ROCK - dry AND MARKETABLE phosphATE * * BOUCRAÂ 2.4 Mt BENGUERIR 4.4 Mt PHOSPHATE ROCK phosphATE ROCK - dry AND MARKETABLE phosphATE chemical platforms * * JORF LASFAR 1.9 Mt SAFI 1.4 Mt P2O5 phosphoric ACID P2O5 phosphoric ACID 3.6 Mt* 0.8 Mt* phosphATE FERTILIZERS phosphATE FERTILIZERS phosphate ports SAFI JORF LASFAR Mine of Merah Lahrach in the Khouribga region