The Industrial Gas sector in North Africaa regional breakdown

Logie Mackay4th Middle East Industrial Gases Conference

Dubai, UAEDecember 3-5, 2013

Schilltron Group

Overview

Schilltron is a business development and consulting

company based in the UK and the U.A.E.

Our core business proposition is to offer skills,

knowledge and experience to companies and

organisations in the Oil, Gas, Chemical and Energy

industries. Industrial Gases form a core competency.

We operate on a global basis and are a totally

independent and impartial company.

Schilltron International Ltd

As an independent company based in the UK we assist

our clients in formulating their strategy and tactics. We

deliver to our customers by ensuring they have the

best solution and assets in place to solve their

specific issues.

Schilltron has a broad base of experience with global

businesses, both large and small.

Schilltron Middle East FZ LLC

Schilltron Middle East FZ LLC is a U.A.E. based

company and builds on a wealth of experience based

upon a portfolio of products and services within the oil

and gas , chemical, energy and process industries.

We are firmly focused on the M.E.N.A. , Central Asia

and South Asia regions. We work with companies and

contractors who are recognised experts in the services

that we offer to clients

North Africathe 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

Air Liquide41%

Linde20%

Maghreb Oxygène, Morocco

5%

COGIZ, Algeria

2%

Messer, Algeria

1%

Elhuria, Libya3%

Auf Fac-tories, Egypt

4%

Others23%

between +5% p.a (low) to +8.8% p.a. (high) in 2012-2020 timeframe

North Africa

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Gas Market Growth and Forecast by end-use sector (high)2000-2020

OthersGlassHealthcarePulp & PaperElectronicsFoodGen ManufacturingMetallurgyRefining & EnergyChemicals

$ M

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 AfricaFuture challenges and opportunities

Thank You!