Organizacion Terpel Sa · BVC:TERPEL
Organizacion Terpel Sa — Q1 2023 Earnings Presentation
43 slides from Organizacion Terpel Sa's earnings presentation, May 2023
Slide 1: Terpel Results 1Q23
Terpel Results 1Q23 May 2023
Slide 2: Quarterly Results
Quarterly Results Figures in COP $Bn EBITDA* During the first quarter of 2023, in spite of a EBITDA COP $B NET PROFIT COP $B *358 challenging regional context, we managed a 383 335 positive growth momentum of the EBITDA without an inventory adjustment, driven by 133 the recovery of the lube margins
Slide 3: Highlights: Organización Terpel
Highlights Organización Terpel Among the most ESG-responsible companies In its most recent publication, Merco, the business reputation monitor, recognized Terpel as one of the most responsible companies regarding Environment, Social and Corporate Governance. We ranked 32 and consolidated 32 ourselve
Slide 4: Highlights: Terpel Panama
Highlights Terpel Panama Recognition to General Manager The fifth edition of Merco’s Panama Leaders recognized Gustavo Rodríguez, General Manager of Terpel Panama, as one of the country’s 25 most relevant business leaders. Gustavo ranked 23 among the 100 most important business leaders in 2022. He 2
Slide 5: Highlights: Innovation & Technology Center
Highlights Innovation & Technology Center Recognized by the Ministry of Science Our Innovation & Technology Center was recognized by the Colombian Ministry of Science, Technology & Innovation for contributing to the country’s competitiveness and promoting innovation. This center, located in the muni
Slide 6: Highlights: LATAM Pass
Highlights LATAM Pass Traveling is now done with ViveTerpel and Latam In alliance with Latam Airlines, our customers will now be able to convert their ViveTerpel loyalty points into Latam Pass miles. Latam Pass is the region’s No.1 loyalty program and the world’s No. 4 air travel program, with 2.4 m
Slide 7: Highlights: Sbarro is now in Panama
Highlights Sbarro is now in Panama Sbarro / Terpel Alliance We inaugurated the first two Sbarro Pizza shops in our convenience stores in Panama. 2 CS CS in Villa Catalina (City) Panamericana CS (Travel Center) Sbarro is the leading NY style pizza shop and our objective is to complete 15 pizza shops
Slide 8: Highlights: IFRS 15
Fuente: Unsplash Highlights IFRS 15 Revenues from contracts Beginning this year, we adopted standard IFRS 15, which establishes an integral framework to recognize revenues from ordinary activities under contracts with customers. Impact 1Q23: EBITDA $333 billion 3.1x Debt/EBITDA EBITDA w/o IFRS 15 $3
Slide 9: Sustainability
Sustainability Progress in sustainability management Relationships with our Progress of material stakeholders issues
Slide 10: Relationships with our Stakeholders
Relationships with our Stakeholders Initiatives, measurements & participation in Sustainability-related external events Sustainability GENDER EQUITY FORUM – ACP (Colombian Petroleum RECOGNITION BY BOGOTA’S MAYOR’S OFFICE Association) Within the framework of the celebration of We participated in the
Slide 11: Our material issues
Our material issues Sustainability Corporate Governance Health & Safety Quality Products & Diversity, Equity & & Transparency Services Human Talent Supply Chain Alternative Energies & Community Affairs Management Climate Change
Slide 12: Progress of our material issues: Community Affairs
Sustainability Progress of our material issues COMMUNITY AFFAIRS SOCIAL INVESTMENT COUNTRY ALLY We ratify our alliance with the Colombian Terpel chipped in and helped mobilize and Civil Air Patrol (PAC), which performs aid passengers who were left stranded by medical and surgical trips throughout th
Slide 13: Progress of our material issues: Alternative Energies & Climate Change
Sustainability Progress of our material issues ALTERNATIVE ENERGIES & CLIMATE CHANGE SUSTAINABLE MOBILITY CONSERVATION OF BIODIVERSITY We have a standing alliance with Fundación With our GAZEL brand, in alliance with the Verde Profundo (Deep Green Foundation), Expreso Brasilia bus company, we mobili
Slide 14: Progress of our material issues: Corporate Governance & Transparency
Sustainability Progress of our material issues CORPORATE GOVERNANCE & TRANSPARENCY MEASURING SUSTAINABILITY MANAGEMENT REPORT For the seventh consecutive year, Terpel This past March 24, the General made it into S&P Global’s Corporate Shareholder’s Meeting approved our 2022 Sustainability Assessment
Slide 15: Evolution of our business lines
Evolution of our business lines
Slide 16: Extensive Regional Coverage
Extensive Regional Coverage Dominican Republic 5 Panama 172 143 3 3 Colombia 2,076 390 21 13 Ecuador 103 14 2 Peru 38 30 1 Consolidated Total 2.389 577 30 18 Market Leaders vs. 1Q22 SSs CCSS Airports Voltex SS & Industry Lubes 2,357 526 30 0
Slide 17: Market Share
Market Share Dominican Republic 37% 34% 32% 17% Panama Colombia 45% 23% 47% 79% 39% 5% Ecuador 10% 16% 8% Peru 7% 10% 32% Market Share 1Q22 28% Aviation: DR 39% SSs / 23% Industry / 5% Aviation; Panama 44% SSs / 23% Industry / 79% Aviation / 47% NGV / 36% Lubes: Colombia 11% SSs / 20% Industry / 11%
Slide 18: Consolidated Quarterly Results – Regional Affiliates
Consolidated Quarterly Results – Regional Affiliates EBITDA Distribution* (Share % 2023) Volume 23% 791 MM gallons 0.5% vs 1Q22 EBITDA 11% $358 billion -7% vs 1Q22 62% $424 EBITDA/gallon 2% 2% Volume Volume and EBITDA* Evolution (Millons gallons) (Millions gallons & billion COP$) +9 +1 $ 383 $ 429 $
Slide 19: Consolidated Quarterly Results – Business Lines
Consolidated Quarterly Results – Business Lines Volume per afilliate Volumen per line Volume SSs & Industry (Share % 2023) (Share % 2023) 2% vs 1Q22 656 MM gallons Volume Aviation & Marine -4% vs 1Q22 124 MM gallons 11% 9% Volume Lubes 3% 12 MM gallons -4% vs 1Q22 75% 72% 16% Ventas SS.CC. 10% $94 b
Slide 20: Service Stations
Service Stations Consolidated Volume 570 2% 60% Cons. GP Consolidated Gross Profit $448 19% Colombia Panama 451 295 2076 SSs 51 120 214 SSs 443 vs. 1970 1Q22 50 vs. 204 1Q22 256 97 8% Gross Margin vs. 7% 1Q22 16% Gross Margin vs. 16% 1Q22 Volume Gross Profit Volume Gross Profit Q1-22 Q1-23 Q1-22 Q1-
Slide 21: Industry
Industry Consolidated Volume 85 -1% 4% Cons. GP Consolidated Gross Profit $29 2% Colombia Ecuador 47 16 28 4 46 16 5% Gross Gross Margin vs.5% 1Q22 26 3 2% Margin vs. 2% 1Q22 Volume Gross Profit Volume Gross Profit Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Gr. 2% Gr. 5% Dr. -8% Gr. 29% Panama
Slide 22: Lubes
Lubes Consolidated Volume 12 0% 22% Cons. GP Consolidated Gross Profit $163 48% Colombia Peru 7 83 4 4 68 6 24% Gross Gross 66 Margin vs.26% 1Q22 40 23% Margin vs. 20% 1Q22 Volume Gross Profit Volume Gross Profit Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Dr. -4% Gr. 26% Dr. -3% Gr. 71% Ecuador
Slide 23: Aviation & Marine
Aviation & Marine Consolidated Volume 124 -6% 10% Cons. GP Consolidated Gross Profit $73 -82% Colombia Dominican Republic 10 115 21 Airports 5 Airports vs. 21 1Q22 15 29 vs. 5 1Q22 3 14 1% Gross Gross 89 Margin vs.8% 1Q22 26 10% Margin vs. 13% 1Q22 24 Volume Gross Profit Volume Gross Profit Q1-22 Q1
Slide 24: Convenience Services
Convenience Services Consolidated Sales $94 40% 5% Cons. GP Consolidated Gross Profit $34 11% Colombia Panama 24 387 CCSS 23 143 CCSS 9 vs. 352 1Q22 61 vs. 132 1Q22 36% Gross Gross 17 6 Margin vs.39% 1Q22 43 16 38% Margin vs. 36% 1Q22 Sales Gross Profit Sales Gross Profit Q1-22 Q1-23 Q1-22 Q1-22 Q1-
Slide 25: Financial Results
Financial Results
Slide 26: Consolidated Financial Results
Consolidated Financial Results Revenues EBITDA vs. EBITDA* w/o Inv. Adj. $9.150 trillion 22% vs 1Q22 (Billion pesos) EBITDA* $358 billion -7% vs 1Q22 383 358 355 $452 EBITDA*/gallon 297 EBITDA* w/o inventory adjustment 23% vs 1Q22 $358 billion Net Profit Q1-22 Q1-23 -71% vs 1Q22 $44 billion EBITDA*
Slide 27: Colombia
Financial Results Colombia
Slide 28: Financial Results: Colombia
Financial Results 59% Cons. EBITDA Colombia Revenues $6.907 trillion 14% vs 1Q22 • Volume shrank due to Aviation segment strategy and EBITDA* the impacts generated by some airline shutdowns. $221 billion -21% vs 1Q22 • Results improved in the Lube & SS segments. $372 EBITDA/gallon • Positive quarter
Slide 29: Panama
Financial Results Panama
Slide 30: Financial Results: Panama
Financial Results 25% Cons. EBITDA Panama Revenues $1.331 trillion 39% vs 1Q22 • New Aviation customers(+8 MM Gallons vs 1Q22). EBITDA* • Unit sales margin favored by fuel procurement $83 billion 16% vs 1Q22 negotiations. $1.138 EBITDA*/gallon • Negative quarterly inventory adjustment due to fuel EB
Slide 31: Peru
Financial Results Peru
Slide 32: Financial Results: Peru
Financial Results 12% Cons. EBITDA Peru Revenues $631 billion 83% vs 1Q22 • Sales volume grew as wholesale distributor. EBITDA* • New Aviation customers (+1 MM Gallons vs 1Q22). $39 billion 136% vs 1Q22 • Unit margin dropped due to sales mix, since $1.457 EBITDA*/gal. wholesale sales leave a lower m
Slide 33: Ecuador
Financial Results Ecuador
Slide 34: Financial Results: Ecuador
Financial Results 2% Cons. EBITDA Ecuador Revenues • Volume impacted by SSs leaving the network, less $782 billion 20% vs 1Q22 business from the shrimp sector in the Industry EBITDA* segment, and the dynamics of the lube market. $7 billion -9% vs 1Q22 • Gradual recovery of lube margins thanks to pri
Slide 35: Dominican Republic
Financial Results Dominican Republic
Slide 36: Financial Results: Dominican Republic
Financial Results 2% Cons. EBITDA Dominican Republic Revenues $309 billion 48% vs 1Q22 EBITDA • Volume grew thanks to increased flight frequencies $9 billion -12% vs 1Q22 in operated airports. $579 EBITDA/gallon • Negative quarterly inventory adjustment due to fuel EBITDA w/o inventory price drop. a
Slide 37: Corporate Financial Ratios
Corporate Financial Ratios
Slide 38: Cash Flow
Cash Flow Consolidated Cash Flow Consolidated Cash Flow Evolution (Billion pesos) (Billion pesos) Initial Balance (Dec-22) 583 720 706 654 EBITDA NIIF 15 358 564 583 443 Leases IFRS 16 32 376 395 304 Working Capital 294 Taxes 47 Capex 91 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Free Cas
Slide 39: Financial Debt
Financial Debt Financial Liability Composition Term Breakdown Rate Breakdown 8% 5% 4% 59% 21% 4.6 21% 3.6 50% 3.6 $COP $COP $COP 8% Trillion Trillion Trillion 62% 41% 21% Colombia Panama Ecuador Peru Leases FIXED CPI SOFR IBR ST LT Debt Maturity Profile Peru $168 (COP$ Billion) $93 Ecuador Panama Co
Slide 40: Financial Ratios
Financial Ratios Deuda/EBITDA vs 2.3x 1Q22 EBITDA vs. Interests Evolution 2.9x 4.3x 6.7x 8.0x 7.5x 6.8x 6.4x 4.9x 4.2x 3.3x EBITDA/Interests vs 6.8x 1Q22 3.3x Debt Mean Life vs 8.6años 1Q22 31 34 38 45 53 70 87 103 121 6.0Years Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Interests (Billion
Slide 41: Consolidated CAPEX
Consolidated CAPEX New New Manteinance 67% SS CCSS CAPEX 25% 10% 6 4 52% % Capex per % Capex per 64% Country Segment puntos puntos del total 9% 5% 5% 6% 0% 3% CAPEX COP$ 91 Billion 1%2%3% Accrued Capex (Billion pesos) 578 o Investments amounting to COP $69 billion were made during the quarter, aimed
Slide 42: Thank You
Gracias Thank You Carolina Ferro Bernal Manager, Financial Planning e-mail: inversionistasIR@terpel.com Telephone: (57 1) 326 7878 Ext. 1529 https://www.terpel.com/Accionistas/Relacion-con- Inversionistas/Resultados-Financieros/
Slide 43: Adjusted EBITDA vs EBITDA
Adjusted EBITDA vs EBITDA In order to make historic information comparable in our quarterly results reports, we have been showing an EBITDA (adjusted EBITDA) discounting the right-of-use leases, per IFRS 16. And the capital premiums per IFRS 15. Beginning in 2021, we will refer to the EBITDAs listed