A SUCCESSFUL CONCEPT IN MID / DOWNSTREAM ENERGY … · FUEL RETAILING Sale and marketing of fuels to end customers: Multi-segment positioning: Motor gas stations, fuel oil, LPG, bitumen,

A SUCCESSFUL CONCEPT IN

MID / DOWNSTREAM

ENERGY BUSINESS

March 2020

RUBIS IS ORGANISEDINTO THREE PROFIT CENTERS

FUEL RETAILING

Sale and marketing of fuels to end

customers: Multi-segment positioning:

Motor gas stations, fuel oil, LPG, bitumen,

aviation and marine fuel, lubricants

SUPPORT AND SERVICES

Midstream business in support

of the distribution : refining, trading/supply,

shipping, terminalling and services for

both its own account and third parties

TERMINALING & STORAGE

Bulk liquid storage : Petroleum products,

fertilizers, chemical, edible oil and

molasses.

Customers: oil companies, fuel retailers,

chemical industry, traders

and Government agencies

67% 23% 10%

Marketing business Support and Services business Services provider

2

2019 CONSOLIDATED DATA (IN €M)

+19%

SALES

5.228(1)

Sales

524(1)

EBITDA

307(1)

Net profit,

Group’s share 3,09(1)

EPS (€)

1,75(2)

DPS (€)

+18%

EBITDA

+19%

EBIT

+21%NET PROFIT,

GROUP’S SHARE

+11%

EPS

3

412(1)

EBIT

+9%

DPS

COMPOUND GROWTH OVER 10 YEARS TO 2019 – LONG-TERM GROWTH LEAD BY ACQUISITIONS (≈ TWO THIRDS)(3)

(3) Before IFRS 5 et IFRS 16 for FY2019

(1) After application of IFRS 5 (Rubis Terminal) “non-current assets held for sale” and IFRS 16 “leases”.(2) Amount to be proposed at the june 11, 2020 Shareholders’ meeting.

THINKING LONG TERM: THE ESSENCE OF RUBIS DNA

BUSINESS STRATEGIC POSITIONING

• Multi-local specialist & niche player enjoying leading market

positions: top 3 player – few participants – market share up to

80%

• High barriers to entry: regulation/capital intensive

• Full control of distribution channel securing competitive supply

and delivery to customers

GLOBAL BUSINESS CHARACTERISTICS

• Low exposure to business cycle – resilient business offering visibility

• Low tech content business – quality of service being a key factor of

differentiation

• Fragmented risk structure: multiple segments/geographically spread

• High potential for further acquisitions worldwide

FINANCE

• Solid free cash flow generation

• Low financial leverage

• Significant dividend pay-out and growth

• Cost Plus business – stable unit margin

ORGANISATION

• Autonomy of local management: quick decision making process

• Close to customers + capex adapted to local needs + efficiency

and market share gains

• Empowered and entrepreneurial local managers

4

RUBIS BENEFITS FROM STRONG LOCAL POSITIONS AND IS ABLE TO BUILD UP ITS COMPETITIVE OPERATIONAL LEVERAGE IN A MOVING GLOBAL ENVIRONMENT

FUEL SUPPLY AND RETAIL

• Supply cost at parity with oil major

• Ability to pass supply price volatility on to customers

• Efficiency gains attached to both organic development and

acquisitions

• Import logistic ownership in markets structurally dependent

on imports

TERMINALING & STORAGE

• Structural imbalances between supply and demand creates

new flows of products and new logistics requirements : jetty -

blending capacity

• Barriers to entry: capital intensive business and constraining

environmental regulation

• Changing oil spec, state policy of strategic reserves, global

refineries re-location

• New positive challenge: IMO 2020, new gasoline/diesel mix

5

FULL CONTROL OF SUPPLY CHAIN AND

MARGIN UP TO FINAL CUSTOMER

LOCATION, CUSTOMER BASE –

HIGH QUALITY ASSET BASE

RUBIS ÉNERGIE: 6 MILLION CBM ON A FULL YEAR BASIS

* Including Ethiopia,Ouganda, Rwanda, Zambia.6

LPG

(23%)

Fuel

(72%)

Bitumen

(5%)

❹ France

❸ Spain

❷ Portugal

❶ Channel Islands

❶ Switzerland

❶ Djibouti

❸Morocco

❷ Botswana

❷ Lesotho

❷ Swaziland

❶ Réunion

❶ Togo

❶ Senegal

❶Madagascar

❷ South Africa

❶ Nigeria

❶ Comoros

❶ Kenya*

16%42% 42%

Market position

USD

48%

€

22%Others

29%

39% 28% 32% Gross margin

Volumes breakdown

Net contribution

(RE&SS)

❶ Bermuda

❷Western Caribbean

❷ Eastern Caribbean

❷ Antilles – French Guiana

❷ Jamaica

❶ Haiti

❶ Suriname

❶Guiana

A LOW EXPOSURE TO OIL PRICE VOLATILITY

LPG quote Unit margin

7

50%

14% 14%

-13% -15%

-36%

-16%

43%

10%

-21%

-4%

5%-1% -2%

2%

15%

-2%1% 2%

9%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Annual change

This chart shows Rubis Énergie capability to pass on to final customers supply price volatility though maintaining margin stability in a volatile

commodity price environment.

RUBIS TERMINALSTORAGE CAPACITY: 3.5 MILLION CBM

8

Fuel

77%

Chemicals

10%Brest (131)

St-Priest (157)Villette-de-Vienne (63)

Salaise-sur-Sanne (20)

Village-Neuf (Mulhouse) (63)

Strasbourg Reichstett (867)

Dunkirk (475)

Rotterdam (216)

Antwerp (187)

Rouen (778)

Corsica (37)

Dörtyol (Turkey) (650)

Fertilizers

8%

Edible oils / Molasses

5%

AN ACQUISITIVEBUSINESS MODEL

9

• Since 1995 : some 40 acquisitions for a cumulative amount exceeding €2bn

• A deep reservoir for acquisition targets ahead: oil majors, privatization, family office,

government agencies, listed companies, …

• Range of EBITDA multiple paid: 5 - 7x

• Material earning improvement in year 3 post-acquisition through re-management, re-

positioning and specialist-mindset

e.g.: Shell in Southern Africa +50% 2006-08 2011-13 2017-19

Chevron in Caribbean +100% ROC/ACE* 11% 14% 15%

BP in Portugal +20% *ACE: Average Capital Employed

AN ACQUISITIVE BUSINESS MODELSince 1995: some 40 acquisitions for a cumulative amount exceeding €2bn

SES Strasbourg

€18m

96/99

GREENFIELD

DEVELOPMENTS

10

Morocco

€14m

EXTERNAL

GROWTH

Rubis Énergie

Propetrol

€15mFrench Antilles

€107m

2000 2001 2003 2005 2006 2007 2008 2009 2010

Senegal

€5m

Europe (5

countries) LPG

€44m

Bermuda

€32m

Corsica Dist.

€10mLPG Spain €8m

Channel Islands

€16m

South Africa

Switzerland

Spain Caribbean

€280mCorsica Storage

Madagascar

€14m

Frangaz

€25m

Rotterdam

€90m

Rubis Terminal

Antwerp

€80m

AN ACQUISITIVE BUSINESS MODELA deep reservoir for acquisition targets ahead: oil majors, privatisation, family office, government

agencies, listed companies

2011

GREENFIELD

DEVELOPMENTS

11

EXTERNAL

GROWTH

Bahamas

Botswana

Cayman Islands

Turks and Caicos

€82m

Reichstett

€36m

SARA Refinery

€47m (35,5%)

LPG Switzerland

€16m

2012 2013 2014 2015 2016 2017 2018 2019 2020

MultigasSwitzerland €9mPortugal €115mJamaica €60m

Bermuda Gas

USD18m

Rotterdam & Antwerp

Extension in progress

2015-2017

Rubis Énergie Rubis Terminal

Dinasa & Sodigaz

(Haiti) Galana

(Madagascar)

EG Retail (Corsica)

Total amount:

€380m

Rubis Terminal

Petrol (50%)

in Turkey

Djibouti €18mReunion Island

€100mEres USD350m

Delta Rubis (50%)

in Turkey

€72m

Repsol Portugal

€42m

KenolKobil

(Kenya)

€312m

Gulf Energie

Holdings

(Kenya)

CAPITAL EXPENDITURE

12

(IN €M) 2018 2019

RUBIS

ÉNERGIE

Safety, sustainable 46 64

Organic growth/development 71 46

TOTAL RUBIS ÉNERGIE 117 110

RUBIS

SUPPORT AND SERVICESTOTAL RUBIS SUPPORT AND SERVICES 60 57

RUBIS

TERMINAL

Safety, sustainable 31 18

New projects France 13 14

Extension (Rotterdam/Turkey) 12 31

TOTAL RUBIS TERMINAL 56 63

TOTAL 233 230

Free cash flow (after interest, tax, normalized change in WK and sustainable capex). 232 345

OPERATING PROFIT BY DIVISION (IN €M)

Fuel retailing Terminaling & Storage Support and Services* Holding

13

-50

0

50

100

150

200

250

300

350

400

450

500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019**

-5 -4 -8 -9 -11 -10 -13 -15 -15 -19 -18 -22

42 44 4778

98116

97

153199 254

275321

34.7 37.8 48.1

51.959.4

56.5 60.2

51.4

53.6

69.446.2

49

23

51

62

64 88

108

* In 2014, Fuel Retailing split into Support and Services and Fuel Retailing

** Before IFRS 5 et IFRS 16 for FY2019

RUBIS VERSUS SBF 120: CUMULATIVE TSR OVER 10 YEARS

14

154 151

186 180 188

245262

317300

321

10491

113

136 140153 161

175166

195

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Rubis SBF 120

A 65% outperformance compared to the SBF 120

RUBIS SHAREHOLDERS STRUCTURE

RUBIS IS A LISTED “PARTNERSHIP”

Partners bear unlimited liability exposure on the company debt

Partners compensation is directly linked to total shareholder return

Management stability secures long term strategic view

Free float ≈ 90 %

Founded: 1990

IPO: 1995

Market Capitalisation ± €4bn

15