The Industrial Gas sector in North Africa a regional breakdown Logie Mackay 4 th Middle East Industrial Gases Conference Dubai, UAE December 3-5, 2013

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North Africa the picture today Industrial gas sector characterised by: Relatively undeveloped tonnage business – much remains captive Dominance of packaged supply – still relatively small volumes supplied to most end-users High pricing – high transport & production costs Mixed picture in terms of demand drivers – varies significantly by region

North Africa

between +5% p.a (low) to +8.8% p.a. (high) in timeframe North Africa

Hydrocarbon boom in Algeria and post-conflict Libya facilitating major infrastructure investments Not just oil & gas infrastructure, but also new hospitals, desalination plants, chemical & steel plants Egypt: onsite supply schemes spreading (Air Liquide), new investment from Arabian peninsula (acquisitions by Gulf Cryo and El Khaligiaa) Strong competitive pressure in Morocco: prices down, noticeable impact on heavy industry from recession in Europe

Investment in power and logistical infrastructure remains important – without it the industry will struggle to achieve sustainable growth and to operate efficiently Political and economic stability and reforms: obviously key to any business. However, parts of the continent suffer from inflated pricing and supply bottlenecks that are essentially artificial in nature Distances from producer to end-user remain high in most cases across the continent – sensible to move away from packaged gas supply where possible (!) North Africa Future challenges and opportunities

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