Slide 1: Corporate Presentation: Pure-Play Phosphate Fertilizer Company
Corporate Presentation “Pure-Play” Phosphate Fertilizer Company March 2018
Slide 2: Cautionary statements and forward-looking information
Cautionary statements and forward-looking information FORWARD-LOOKING INFORMATION This presentation contains forward-looking information (“FLI”) regarding future events or the future performance of the company (“Itafos”). Generally, FLI can be identified by expressions of belief, expectation or inte
Slide 3: Table of contents
Table of contents 1 Executive summary 2 Investment highlights A Appendix A: Phosphate highlights B Appendix B: Portfolio highlights 3
Slide 4: Executive summary
Executive summary ITAF@S
Slide 5: Company overview
Company overview Key highlights ▪ Itafos is a publicly traded (TSX-V: IFOS) vertically integrated phosphate based fertilizers and specialty products company with an attractive portfolio of long-term strategic businesses located in key fertilizer markets worldwide ✓ The Itafos Conda phosphate operati
Slide 6: Investment highlights overview
Investment highlights overview ▪ Industry leading board of directors with balanced mix of executive and board of directors 1. Industry leading level skillsets board of directors and experienced ▪ Experienced management team with extensive operations and commercial expertise management team relentles
Slide 7: Investment highlights overview (cont'd)
Investment highlights overview (cont’d) ▪ Vertically integrated producing asset base benefiting from consolidated operations and 4. Itafos Arraias … infrastructure and security of key raw material inputs a Brazilian vertically integrated phosphate ▪ Strategic position in one of the fastest growing f
Slide 8: Investment highlights
[2] Investment highlights ITAF@S
Slide 9: Industry leading board of directors
1 Industry leading board of directors Key highlights Name Role Experience Partner at Castlelake, responsible for the firm’s investments in emerging markets; Over 20 years of Brent de Jong Director and Chairman investment and asset management experience; Previous experience includes CEO of Zaff Capit
Slide 10: Experienced management team
1 Experienced management team Key highlights Name Role Experience Senior executive with over 20 years of hands-on and diverse corporate and business development, mergers and acquisitions, capital raising and investment management experience; Previous Brian Zatarain CEO experience includes senior rol
Slide 11: Owner and operator of attractive long-term and strategic phosphate businesses
2 Owner and operator of attractive long-term and strategic phosphate businesses located in key fertilizer markets worldwide Key highlights ▪ Current fertilizer production capacity of approx. 1.1Mt per year and total phosphate rock resources of 870.1Mt with contained P2O5 resources of 119.7Mt (note:
Slide 12: Itafos Conda: A North American vertically integrated phosphate fertilizer business
3 Itafos Conda … A North American vertically integrated phosphate fertilizer business Key highlights ▪ Located in Conda, Idaho, near Soda Springs, Idaho, approx. 50 miles southeast of Pocatello, Idaho ▪ Produces approx. 550kt per year of MAP, SPA, MGA and APP serving the North American fertilizer ma
Slide 13: Strategic position in attractive North American fertilizer markets
3 Strategic position in attractive North American fertilizer markets Key highlights <500kt JR Simplot Itafos Pocatello Conda 500-1,000kt JR Simplot Rock Springs 1,000-1,500kt >1,500kt Nutrien Aurora Nutrien White Springs Mosaic Itafos Conda Bartow JR Simplot Nutrien Geismar Mosaic Uncle Sam Mosaic M
Slide 14: Operational flexibility offers multiple options to deliver P2O5 value to market
3 Operational flexibility offers multiple options to deliver P2O5 value to market Key highlights Sales by customer size (US$mm)1 ▪ Itafos Conda’s products sold into the North American fertilizer markets US$26 ▪ Itafos Conda partners with leading crop services companies that have the trust of the gro
Slide 15: Itafos Arraias: A Brazilian vertically integrated phosphate fertilizer business
4 Itafos Arraias … A Brazilian vertically integrated phosphate fertilizer business Key highlights ▪ Located in Arraias, Brazil, in close proximity to the border of Goias and Tocantins states ▪ Produces approx. 500kt per year of SSP serving the Brazilian fertilizer markets ▪ Recommissioning completed
Slide 16: Strategic position in one of the fastest growing fertilizer markets in the world
4 Strategic position in one of the fastest growing fertilizer markets in the world SSP SSP domestic target region capacity andisdomestic in coastalcapacity /southern Phosphate fertilizer imports have less impact on SSP LEGEND Itafos Arraias 34% Yara 50% Timac Cibrafertill 89% 100% PA MA Galvani / Ya
Slide 17: Adds competitive domestic supply to SSP market with disciplined sales and marketing strategy
4 Adds competitive domestic supply to SSP market with disciplined sales and marketing strategy Target region Key highlights Upstream sales strategy LEGEND Itafos Arraias ▪ Strong relationship with main distributors ensures Blenders minimization of “seasonality” impact FOB Arraias 1 Low risks of cred
Slide 18: Itafos Farim: West African construction ready phosphate rock mining project
5 Itafos Farim … A West African construction ready high-grade and low cost phosphate rock mining project Key highlights Reserve and resources highlights1 ▪ Located near Farim, 120km northeast of Bissau Item Tons (Mt) Grade (%) P2O5 (Mt) ▪ Extensive geological deposit with potential to increase Reser
Slide 19: High quality phosphate rock is becoming more attractive
5 High quality phosphate rock is becoming more attractive Itafos Farim specification sheet Proposed changes to EU regulation on fertilizers Element Typical Range Maximum ▪ EU Parliament voted to reduce allowable Cadmium P2O5 34.0% +/- 0.5% - levels in fertilizers sold across the EU - Current level o
Slide 20: Compelling economic profile anchored by operating businesses and development pipeline
6 Compelling economic profile anchored by operating businesses and development pipeline Key highlights Item 2018 2019 2020 Notes EBITDA Itafos Conda US$35-45mm US$20-30mm US$40-50mm Drop in 2019 due to sulfuric acid contract re-pricing Itafos Arraias US$10-20mm US$15-25mm US$20-30mm 2018 reflects ra
Slide 21: Appendix A: Phosphate highlights
A Appendix A: Phosphate highlights
Slide 22: Phosphate is a critical nutrient
Phosphate is a critical nutrient Why phosphorus? Effect of phosphorus on plant and crop growth ▪ All life forms need the element Phosphorus (P), which is involved in photosynthesis, energy transfer, cell division and enlargement ▪ Important in root formation and growth that improves the quality of f
Slide 23: Phosphate supply/demand expected to stabilize in mid-term
Phosphate supply/demand expected to stabilize in mid-term Projected 5-year phosphate demand Global supply to be outpaced by demand growth Global Phosphate Capacity Additions and Demand India 2,000 Growth China (Mt P2O5) Europe & FSU 1,500 8% Saudi Arabia 0% Saudi Arabia 2% 1,000 North America 20% Mo
Slide 24: Traded phosphate rock market volumes have not grown significantly over last 20 years
“Traded” phosphate rock market volumes have not grown significantly over last 20 years Production per year Phosphate rock trade 1990 – 2019E 35 30 Other 25 20Mt 52.9Mt locked in 20 China supply Russia 100Mt agreements 15 10Mt 10 10Mt United States locked in Morocco 5 supply 27.1Mt 30Mt agreements 0
Slide 25: Appendix B: Portfolio highlights
B Appendix B: Portfolio highlights
Slide 26: Portfolio highlights
Portfolio highlights Key highlights Itafos Paris Itafos Farim Itafos Santana Itafos Araxá Itafos Mantaro Item Itafos Conda Itafos Arraias Hills Project Project Project Project Project Ownership ▪ 100% Itafos ▪ 100% Itafos ▪ 100% Itafos ▪ 100% Itafos ▪ 100% Itafos ▪ 100% Itafos ▪ 100% Itafos ▪ Tocant
Slide 27: Itafos Conda
Itafos Conda Operations Key highlights Location highlights ▪ Itafos Conda is a vertically integrated phosphate fertilizer (MAP, SPA, MGA, APP) operating business owned 100% by Itafos - Produces MAP, SPA, MGA and APP to be sold to Conda, ID wholesale and retail customers - Located in Conda, Idaho, U.
Slide 28: Itafos Arraias
Itafos Arraias Operations Key highlights Location highlights ▪ Itafos Arraias is a vertically integrated phosphate fertilizer (SSP) operating business owned 100% by Itafos - Produces SSP to be sold to blenders and farmers PA MA and excess sulfuric acid TO PI - Located in Tocantins, Brazil on a prope
Slide 29: Itafos Paris Hills
Itafos Paris Hills Near-term pipeline Key highlights Location highlights ▪ Itafos Paris Hills is a phosphate rock mine development project owned 100% owned by Itafos - Produces phosphate rock to be integrated with Conda Itafos Conda - Located in Idaho, U.S. on a property consisting of approx. 1,010
Slide 30: Itafos Farim
Itafos Farim Near-term pipeline Key highlights Location highlights ▪ Itafos Farim is a phosphate rock mine development project owned 100% by Itafos - Produces phosphate rock to be sold to producers of phosphate based fertilizers - Located in Farim, Guinea Bissau on a property consisting of approx. 3
Slide 31: Itafos Santana
Itafos Santana Mid-term pipeline Key highlights Location highlights ▪ Itafos Santana is a integrated phosphate rock mine and SSP production facility development project owned 100% owned by Itafos - Produces SSP to be sold to blenders and farmers MA - Located in Para, Brazil on a property consisting
Slide 32: Itafos Araxá
Itafos Araxá Mid-term pipeline Key highlights Location highlights ▪ Itafos Araxá is a rare earth oxide and other elements mine development project owned 100% owned by Itafos - Produces rare earth oxides to be sold to blenders PA MA and farmers PI - Located in Mina Gerais, Brazil on a property TO con
Slide 33: Itafos Mantaro
Itafos Mantaro Mid-term pipeline Key highlights Location highlights ▪ Itafos Mantaro is a phosphate rock mine development project owned 100% owned by Itafos - Produces phosphate rock to be sold to producers of phosphate based fertilizers - Located in Junin, Peru on a property consisting of approx. 1