Investor Presentation Communication financière Publication semestrielle Octobre 2016
Company at a glance : the leading port operator in Morocco 36,3 millions of tons Traffic (2016) Mad 2 567 mn USD 254 mn Consolidated turnover (2016) 60% Moroccan state 30% free float 10% pool of 3 investors Shareholder structure Mad 1 155 mn USD 114 mn Consolidated EBITDA (2016) > 2 100 Employees (2016) Mad 580 mn USD 57 mn Consolidated Net Income (2016) 2
Morocco: a Growing Gateway Market Company overview : the leading port operator in Morocco Sound Financials Growth opportunities 3
Morocco: a Growing Gateway Market Evolution of traffic per port (1) In million of tons Nador Laayoune 76.6 Agadir 4 32 Safi Mohammedia 5 12 Tanger Med 9 Jorf Lasfar 18 84.2 81.3 3 4 6 4 23 6 11 8 8 10 22 23 90.3 3 5 6 6 13 Casablanca 23 25 25 28 26 74 % of national traffic The traffic generated by maritime trade has seen an average growth of 5.6% p.a. since 2013, reaching 90.3 MT in 2016; In 2015, the traffic decreased by 3.4% following the shutdown of of Moroccan refinery activities in August 2015; The traffic has know a growth of 11% in 2016. Evolution of port operators (1) market shares Hydrocarb Jorf Sosipo Mass Céréales Somaport Taqa Morocco Tanger Med OCP Marsa Maroc 3% 2% 3% 1% 4% 3% 2% 1% 3% 6% 5% 6% 4% 5% 5% 7% 7% 7% 6% 8% 10% 11% 28% 27% 27% 27% 49% 46% 44% 42% Marsa Maroc had a market share of 42% by the end of 2016. This fall is explained by the liquid bulk traffic decreased following the shutdown of SAMIR s activity in August 2015. OCP operates close to a third of the traffic, mainly in the ports of Casablanca and Jorf Lasfar; The Tanger Med operators have close to 10% of the national market share; Operators in the grains sector (Sosipo and Mass Céréales) had 5% market share by the end of 2016; OCP, Taqa Morocco, (industrial companies) etc. handle their own traffic on dedicated terminals without resorting to port operators. (1) Excluding transhipment Source : ANP Marsa Maroc 4
Morocco: a Growing Gateway Market Company overview : the leading port operator in Morocco Sound Financials Growth opportunities 5
Business model of Marsa Maroc GATEWAY Ships Dock Storage Truck unloading / loading Import flows Entry / exit of the port Export flows 1 Maritime services (towing, steering, boatage, etc.) 7% of turnover * 2 Handling (loading/unloading vessels and transfer of cargo to storage area.) Storage and Truck loading/ unloading 90% of turnover * 3 Other services : services to ships, weighing, etc. 3% of turnover * Financing contracts, subcontracts, etc. Concession agreements Port authorities Third parties Business contracts 9 ports via the concession contract with the ANP 1 terminal (TC3 Casablanca) conceded by the ANP 1 terminal (TC3 Tanger Med) conceded by TMPA Clients / suppliers 1 terminal (Quai Nord Agadir) conceded by ANP to a subsidiary controlled by Marsa Maroc (51%) (*) 2016 6
Concessions time line of Marsa Maroc Marsa Maroc has 30-year concessions for the main ports in the country, renewable for an additional 20 years Signature and start of the concession contract including the following ports: Casablanca, Mohammedia, Jorf Lasfar, Agadir, Safi, Nador, Al Hoceima, Laâyoune et Dakhla Start of the concession contract 2006 Signature of the concession contract for the port of Tanger Med II (1) 2009 Signature of the concession contract for the TC3, port of Casablanca Signature of the concession for the Terminal Nord, port of Agadir (2) and start of the concession contrat and the operation Commissioning of terminal TC3, port of Tanger Med 2 2016 2013 2019 Commissioning of terminal TC3, port of Casablanca 2042 2044 2046 2056 End period of TC3 concession contract, port of Casablanca 1) In 24 march 2016, an amendment to Tanger Med 2 contract was signed, thus changing the concession perimeter. 2) New subsidiary of Terminal Nord of the Port of Agadir : Signature by the consortium composed of Marsa Maroc (51%), SOMATIME, MANUSOUSS and INTERNAVI 3) Includes a 20-year renewal option (under the same conditions) End period of TC3 concession contract, Tanger Med II (3) as well as Terminal Nord, port of Agadir New concessions to be secured End period of the concession contract including the following ports: Casablanca, Mohammedia, Jorf Lasfar, Agadir, Safi, Nador, Al Hoceima, Laâyoune et Dakhla 7
Presentation of the scope of the concessions of Marsa Maroc Tanger Med I Mohammedia Casablanca Jorf Lasfar Hoceima Nador Safi Agadir Contribution of the ports to Marsa Maroc s traffic Laâyoune Miscellaneous Petroleum products Containers Ro-ro ships In % - 2016 figures Safi 6% Nador 8% Jorf Lasfar 14% Others ports 6% Casablanca 38% Dakhla Minerals Agadir 11% Mohammedia 16% A presence in 11 ports through: 9 ports granted via a concession contract with the ANP Two sub-contracting contracts in Tanger Med I (bulk and general terminal for TMPA) and in Tanger Ville (assistance to passengers, cruise passengers, and accompanied vehicles for the Société de Gestion du Port de Tanger Ville, the managing company of the Port of Tanger Ville). 8
A leader position in Morocco Evolution of the overall traffic handled by Marsa Maroc Evolution of container traffic handled by Marsa Maroc In 2015, liquid bulk traffic decreased by 23% following the shutdown of SAMIR s activity in August 2015, which also explains the 8.4% decline in the overall traffic handled by Marsa Maroc in 2015. 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 2013-2016 CAGR: +0.5% In thousand tons 2013-2016 CAGR: 7.9% In thousand TEUs 900 816 120% 38 366 35 770 800 35 159 36 306 694 707 100% 700 650 192 600 160 170 143 80% 500 60% 400 67% 62% 62% 62% 300 624 40% 505 533 537 200 20% 100 0 0% Casablanca Agadir Mkt share MM Evolution of bulk traffic Evolution of TIR and vehicle traffic 2013-2016 dry bulk CAGR : +9.2% 2013-2016 liquid bulk CAGR: -12.9% 2013-2016 conventional CAGR: +3.3% 29 647 3 040 31 801 2 835 11 120 13 780 28 086 In thousand tons 28 082 3 287 3 350 13 057 14 497 +2% +11% 2013-2016 CAGR: 9.1% 102 96 8 7 95 90 123 7 116 In number of units 65 7 125 15 487 15 186 11 742 10 235-13% Liquid bulk Dry bulk Conventional Vehicles and trucks TIR 9
Impact of the national port development project on estimated Marsa Maroc s traffics Tanger Med II The port Capacities reconfiguration as it is planned by the 2030 national port strategy adopted by the Ministry of Equipment, Transport and logistics should involve the construction of new terminals and port complexes. Hence, these new additional capacities could impact partially or totally by handling the Marsa Maroc historical traffic in the new facilities (new LPG and chemical terminal at the port of Mohammedia, new ports of Safi, Nador West Med and Kenitra, etc.). Casablanca Coal Jorf Lasfar LPG Jorf Lasfar Tanger ville Cereals Kenitra Atlantique Cattle Feed Cars (Peugeot Citroën) Mohammedia Refined oil products Refined oil products Coal Oil products Nador West Med Dakhla Laâyoune Agadir TanTan Nador Tanger Med I & II Nador Mohammedia Al Hoceima Casablanca Jorf Lasfar Safi Safi Safi Grand Vrac Agadir Sulfur ; Conventional Bulks Existing port Port extension New port The opening of new port infrastructures will lead to a new distribution of import/export traffics between the ports and will involve a risk of migration of some traffics currently handled in Marsa Maroc terminals, towards new infrastructure. 10
A new governance structure A shareholders agreement has been concluded between the Government and the 3 leading institutional investors. The initial public offering in july 2016 has allow Marsa Maroc to strengthen its governance whilst providing a strong signal to the market regarding the Moroccan State s will to strengthen the Company s governance. Hence, the new structure of the Supervisory Board include 12 board members : President of the Supervisory Board Ministry of Equipment, Transport and Logistics Ministry of Equipment, Transport and Logistics Ministry of Economy and Finance 3 Core investors (institutional) Independent Board Members * Pension funds ; MAD 111 bn assets under management** Pension funds ; MAD 98 bn assets under management** 1 Insurance company in morocco ; MAD 31 assets under management ** USD 1.3 bn market Capitalization (7 th october 2016) (*) not apppointed yet at this stage (**) end of June 2016 11
Morocco: a Growing Gateway Market Company overview : the leading port operator in Morocco Sound Financials Growth opportunities
Sound Financials 2016 was characterized by a significant improvement in the company s performance, thanks to a growth in turnover driven by containers and cereals trafics. Turnover In MAD mn 2013-2016 CAGR: +9.8% 2 567 2 171 +18% 70 182 1 939 2 023 38 37 42 151 153 158 2 314 1 750 1 822 1 981 Handling services Services to vessels Others services EBITDA 2013-2016 CAGR: +11% 1400 1200 1000 800 600 400 200 0 1 010 844 886 47% 44% 44% In MAD mn 60% 1 155 45% EBITDA Margin (%) 55% 50% 45% 40% 35% 30% Operating income Net income 900 800 700 600 500 400 300 200 100 0 2013-2016 CAGR: +20% In MAD mn 2013-2016 CAGR: +31% 700 In MAD mn 55% 830 60% 580 50% 600 55% 45% 622 50% 500 40% 45% 481 499 375 400 35% 40% 329 30% 35% 300 256 25% 30% 32% 200 20% 23% 29% 25% 15% 25% 25% 20% 100 16% 17% 13% 10% 15% 0 5% Operating income Margin (%) Net Income Margin (%) 13
Sound Financials Financial structure Breakdown of net debt In MAD mn 2 812 2 235 1 415 1 171 1 347 744 113 207 2015 2016 Total shareholder equity Net debt (excess of cash) 2015 2016-181 Cash Investment securities Corporate debt -633 Dividends 1 000 900 800 700 600 500 400 300 200 100 0 In MAD mn 882 740 587 488 398 272 294 181% 235 87% 74% 79% Net Income Dividend Pay out ratio 400% 350% 300% 250% 200% 150% 100% 50% 0% 14
Morocco: a Growing Gateway Market Company overview : the leading port operator in Morocco Sound Financials Growth opportunities
A growth strategic plan The business plan does not take into account the implementation of the Company's development strategy including securing new port concessions in Morocco and in the African continent. Leading port operator in Morocco 1 Concessions currently under development 2 Secure new concessions and authorizations Strong international presence, particularly in Africa Concessions and authorizations in Africa 3 4 Contribution to enhancement of logistics in Morocco Hinterland logistics and related activities Performance and agility Operational Performance 5 6 Sales approach Conditions for success and change management Organizational effectiveness and HR 7 9 Institutional governance 8 10 Strategic management Communication and change management 16
Q & A 19