Rubis Sca · EURONEXT:RUI
Rubis Sca — Rubis — Investor Presentation (January 2023)
51 slides from Rubis Sca's investor presentation, January 2023
Slide 1: Rubis Overview: Delivering Multi-Energy
RUBIS OVERVIEW T DELIVERING MULTI-ENERGY January 2023
Slide 2: Agenda
AGENDA SNAPSHOT GROUP PRESENTATION OPERATIONS CSR APPROACH INVESTMENT CASE APPENDIX ▪ Historical financial performance (incl. H1 2022) ▪ Retail & Marketing by region ▪ Photosol ▪ Glossary CONTACT DETAILS & FINANCIAL CALENDAR 2
Slide 3: Snapshot: Distributing Energy for Everyday Life
SNAPSHOT DISTRIBUTING ENERGY FOR EVERYDAY LIFE Rubis is specialised in the distribution of fuels, liquefied gases and bitumens from supply to end customer WELL-ESTABLISHED COMPANY RESILIENT BUSINESS MODEL OUR VALUE CREATION A balanced geographical footprint CONTRIBUTION TO LOCAL DEVELOPMENT (gross p
Slide 4: Group Presentation
GROUP PRESENTATION
Slide 5: Rubis' DNA: Thinking Long Term
RUBIS’ DNA THINKING LONG TERM STRATEGIC POSITIONING FINANCE ● Multi-local specialist & niche player enjoying ● Solid free cash flow generation leading market positions: top 1-3 player, ● Strong balance sheet market share up to 80% ● Significant dividend payout with attractive yield ● High barriers t
Slide 6: Cash Generative Business, Focus on External Growth and Shareholders
CASH GENERATIVE BUSINESS FOCUS ON EXTERNAL GROWTH AND SHAREHOLDERS SOLID CASH FLOW GENERATION MAINTAINING STRONG BALANCE SHEET €400m cash flow from operations per year over 2015-2021 ▪ Corporate net debt/EBITDA <2x ● To support GROWTH ▪ Financing of the capacity expansion in the ▪ Organic growth (≈€
Slide 7: Sustainability Framework and Risk Mitigation Factors
SUSTAINABILITY FRAMEWORK RISK MITIGATION FACTORS FINANCIAL STABILITY MANAGING CARBON FOOTPRINT ● Foreign exchange ● LPG accounts for ≈45% of gross profit of Retail & Marketing ▪ Balanced footprint with net income exposure 44% to USD, 35% to ▪ Transitional energy with low-carbon emissions EUR/GBP/CHF
Slide 8: Rubis' Structure and Shareholders
RUBIS’ STRUCTURE AND SHAREHOLDERS 1990 1995 2022 Company founded IPO (Euronext Paris) €2.5bn(1) market cap Part of the SBF 120 index MAIN BREAKDOWN OF THE CAPITAL AS OF 30/06/2022 CHARACTERISTICS ● Partnership Limited by Shares 5.72% Groupe Industriel Marcel Dassault ● General Partners bear unlimite
Slide 9: Operations
OPERATIONS
Slide 10: Activities and Joint-Venture
ACTIVITIES AND JOINT-VENTURE STRATEGY EVOLUTION RETAIL & MARKETING - SUPPORT & SERVICES RENEWABLE ENERGY RUBIS TERMINAL(1) (JV) FOCUS ON CONTINUING DEVELOPMENT AND ACCELERATING DEVELOPMENT OF EXPANSION AND PORTFOLIO OPERATIONAL EXCELLENCE/DECARBONISATION RENEWABLE ENERGY SEGMENT OPTIMISATION ● Distr
Slide 11: Retail & Marketing (70% of EBIT)
RETAIL & MARKETING (70% OF EBIT) 5 MILLION CBM OF ANNUAL VOLUMES Rubis Énergie’s Retail & Marketing division is specialised in the distribution of energy and bitumen across 39 countries STRONG MARKET POSITION RESILIENT ▪ Full logistics chain to final user thanks to Rubis’ own infrastructure ▪ Basic
Slide 12: Retail & Marketing: Resilient Business Model with Growth Potential
RETAIL & MARKETING (70% OF EBIT) RESILIENT BUSINESS MODEL WITH GROWTH POTENTIAL Rubis Énergie’s Retail & Marketing division is specialised in the distribution of energy and bitumen across 39 countries KEY PERFORMANCE INDICATORS ▪ Per-unit profit at constant ▪ Working capital scope – indicator of und
Slide 13: Support & Services (30% of EBIT)
SUPPORT & SERVICES (30% OF EBIT) TRADING/SUPPLY AND SHIPPING KEY FIGURES ▪ Niche segments − Bitumen in Africa (FY 2021) Trading and shipping − Fuels in the Caribbean region mostly ▪ 6 owned and 9 chartered vessels EBITDA EBIT €165m €123m LOGISTICS AND REFINERY ▪ SARA refinery (71% stake) − Sole supp
Slide 14: Retail & Marketing and Support & Services: Integrated Infrastructure & Logistics
RETAIL & MARKETING AND SUPPORT & SERVICES INTEGRATED INFRASTRUCTURE & LOGISTICS PORTFOLIO DIVERSIFICATION Gross profit by product (1) LPG 15% Fuel CRUDE OIL 6% Bitumen 43% For SARA – North Sea 10% Aviation Other 26% EUROPE LPG Bitumen LPG Spain, 17% From US to Africa of group EBIT Mostly local suppl
Slide 15: Diverse Regions with Different Opportunities
RETAIL & MARKETING AND SUPPORT & SERVICES DIVERSE REGIONS WITH DIFFERENT OPPORTUNITIES AFRICA CARIBBEAN EUROPE EBIT Developing market EBIT Fragmented EBIT Mature market where 45%(1) with growing population 38%(1) market with strong 17%(1) Rubis is exposed mostly and increasing energy disparities to
Slide 16: New Division - Renewable Energy: Photosol as a Pillar
NEW DIVISION - RENEWABLE ENERGY PHOTOSOL AS A PILLAR WITH EXCELLENT GROWTH OPPORTUNITIES A leading independent photovoltaic energy producer Photosol roadmap in France and overseas territories • 330 MW operating capacity and ≈ 150 MW under 330 MW construction/ awarded of photovoltaic energy capacitie
Slide 17: Photosol: Leading French Photovoltaic Player
PHOTOSOL LEADING FRENCH PHOTOVOLTAIC PLAYER WITH BUOYANT GROWTH AHEAD Key figures PROJECT PIPELINE – STRONG GROWTH AHEAD ● 476 MW of secured portfolio(1) and >3 GW project >3 GW pipeline pipeline ● 100% success rate of the submitted CRE tender offers(2) 2.3 GW ● >50% of installed capacities with agr
Slide 18: Rubis Terminal JV: Storage Capacity of 4 Million CBM
RUBIS TERMINAL JV STORAGE CAPACITY OF 4 MILLION CBM EVOLVING PRODUCT EXPOSURE - STORAGE SALES FY 2019 REVENUES FY 2021 REVENUES Rotterdam (253) €168M(1) €222M(1) Antwerp (225) Dunkirk (475) Fuels 60% Fuels 45% Rouen (778) Chemicals 31% Chemicals 39% Strasbourg / Reichstett (867) Brest (131) Village-
Slide 19: Rubis Terminal JV: Bulk Liquid Storage
RUBIS TERMINAL JV BULK LIQUID STORAGE A key link in the energy chain ▪ Strategic positioning: infrastructure quality & geographical position ▪ Bespoke services for demanding clients KEY FIGURES ▪ Strong safety standards with a zero-incident policy (proforma December 2021) Business characteristics ▪
Slide 20: CSR Approach
CSR APPROACH
Slide 21: Our CSR Trajectory
OUR CSR TRAJECTORY From regulatory obligation to firm commitment 2011 2015 2018 2020 2021 1st CSR report Incorporation of CSR Integrity line Creation of the Commitment to the criteria into the annual and comprehensive Climate Committee UN Global Compact variable compensation of anti-corruption/sanct
Slide 22: A Responsible and Committed Group
A RESPONSIBLE AND COMMITTED GROUP ENVIRONMENT SOCIAL GOVERNANCE ● LPG: transitional energy promoted ● Gender equality ● Committed Managers: variable by governments in emerging countries ▪ Group Management Committee already compensation integrating CSR criteria with parity (definition of the internal
Slide 23: Our CSR Roadmap 2022-2025
OUR CSR ROADMAP 2022-2025 REDUCING OUR ENVIRONMENTAL PROVIDING A SAFE CONTRIBUTING TO A MORE FOOTPRINT AND STIMULATING ENVIRONMENT VIRTUOUS SOCIETY FOR OUR TEAMS 3 Reducing the discharges from our operations Ensuring the safety of our employees Operating with integrity PILLARS 9 Building on our trad
Slide 24: Our CSR Roadmap 2022-2025: Examples and Key Objectives
OUR CSR ROADMAP 2022-2025 EXAMPLES AND KEY OBJECTIVES REDUCING OUR ENVIRONMENTAL PROVIDING A SAFE CONTRIBUTING TO A MORE FOOTPRINT AND STIMULATING ENVIRONMENT VIRTUOUS SOCIETY FOR OUR TEAMS Reduce CO2 emissions Promote diversity Operate from our activities within our teams with integrity 30% reducti
Slide 25: A Commitment Aligned with the UN Sustainable Development Goals
A COMMITMENT ALIGNED WITH THE UN SUSTAINABLE DEVELOPMENT GOALS For a sustainable and responsible growth 8 sustainable development goals for Rubis Through our mission to provide energy Our commitment to fight to as many people as possible, climate change caters particularly in areas where a large pri
Slide 26: Climate Focus: The Climate Committee
CLIMATE FOCUS THE CLIMATE COMMITTEE Clarisse GOBIN-SWIECZNIK Sophie PIERSON Managing Director, CSR Director & Chief Rubis, Chair Compliance Officer, Rubis ITS MISSIONS consist in: MONTHLY Jean-Pierre HARDY REPORTS Alexandre BOCQUILLON ▪ Monitor the Climate Action Plan, Deputy Managing Director, CLIM
Slide 27: Climate Focus: Examples of Less Carbon-Intensive Solutions
CLIMATE FOCUS EXAMPLES OF LESS CARBON-INTENSIVE SOLUTIONS PRODUCT OFFERING BUSINESS BUSINESS DIVERSIFICATION TO CUSTOMER TO BUSINESS Increase of biofuels and biogas LPG replacing charcoal LPG or hybrid solar systems replacing fuel oil ● Up to 90% reduction in CO2 emissions ● Reduction of CO2 emissio
Slide 28: CSR Performance: Non-Financial Rating Agencies
CSR PERFORMANCE HOW RUBIS IS RATED BY NON-FINANCIAL RATING AGENCIES Rating agency Current Rating Relative Performance Comments Rubis’ AA ESG rating is in the top 7% of the “Oil & Gas Refining, Marketing, Transportation & Storage” universe. Our High strongest performance are on “Corporate governance”
Slide 29: Investment Case
INVESTMENT CASE
Slide 30: Investment Case: Rubis Value Proposition
INVESTMENT CASE RUBIS VALUE PROPOSITION RESILIENCE STRATEGY ▪ Solid track record, EPS* CAGR* 9% over the last decade Among top players in niche markets and benefiting from ▪ ▪ Non-cyclical products meeting basic needs (mobility, growing demand for energy cooking, heating) M&A optionality with consis
Slide 31: Capital Allocation
CAPITAL ALLOCATION SUSTAINING DIVIDEND POLICY, INVESTING IN ORGANIC AND EXTERNAL GROWTH RETAIL & MARKETING - SUPPORT & SERVICES PHOTOSOL EBITDA > €1.7bn ≈ €0.5bn ≈ €0.9bn ≈ €0.3bn (1) 2022 2025 2030 ● Strong cash generation at Rubis Énergie ● Photosol EBITDA to grow 40% p.a. 2022-25 ▪ >100% cash con
Slide 32: Solid Balance Sheet and Low Leverage
SOLID BALANCE SHEET AND LOW LEVERAGE SUPPORTING SELECTIVE ACQUISITION STRATEGY External growth <3.0x >€2bn spent over the last decade <2.5x ● Contributed 2/3 of historical earnings growth of 9% EPS CAGR ● €200m-€300m financial firepower for bolt-on acquisitions ≈1.5x ● Strategic criteria ▪ HISTORICA
Slide 33: Appendix
APPENDIX
Slide 34: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE SUMMARY – P&L, BALANCE SHEET AND CASH FLOW INCOME STATEMENT 2015 2016 2017 2018 2019 2020 2021 BALANCE SHEET 2015 2016 2017 2018 2019 2020 2021 Sales 2,913 3,004 3,933 4,754 5,228 3,902 4,589 Total assets 3,526 3,715 4,412 4,652 5,747 4,929 5,263 EBITDA 345 411 496 5
Slide 35: Historical Financial Performance: Change in Working Capital
HISTORICAL FINANCIAL PERFORMANCE CHANGE IN WORKING CAPITAL – NEUTRAL IMPACT ON CASH FLOW OVER LONG-TERM 200 140 150 120 Change in working capital (€m) 100 Oil price (USD per barrel) 100 50 0 80 -50 60 -100 40 -150 20 -200 -250 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 FY 2022 2023
Slide 36: Historical Financial Performance: Retail & Marketing Division
HISTORICAL FINANCIAL PERFORMANCE RETAIL & MARKETING DIVISION (≈ 70% OF GROUP EBIT) RETAIL & MARKETING 2015 2016 2017 2018 2019 2020 2021 RETAIL & MARKETING AFRICA 2015 2016 2017 2018 2019 2020 2021 Volumes 549 907 1 128 1 320 2 296 2 269 2 459 Volumes 2,871 3,363 3,995 4,460 5,494 5,049 5,401 yoy 99
Slide 37: H1 2022 Results
H1 2022 RESULTS KEY FIGURES SHOW SOLID PERFORMANCE H1 H1 2022 2022 2022 2021 vs 2021 vs 2019(1) ● All regions and segments with solid performance VOLUMES (‘000 m3) 2,826 2,650 +7% +8% ● Main contributors – aviation in the Caribbean region and service stations in East Africa ● Excellent unit margin i
Slide 38: H1 2022 Results: Consolidated P&L and Regional Development
H1 2022 RESULTS CONSOLIDATED P&L AND REGIONAL DEVELOPMENT (RETAIL & MARKETING) H1 H1 % H1 H1 % RECONCILIATION NET INCOME H1 H1 H1 INCOME STATEMENT RETAIL & MARKETING TOTAL TO ADJUSTED NET INCOME 2019 2021 2022 2021 2022 yoy 2021 2022 Yoy Sales 2,051 3,290 60% Volumes (‘000 m3) 2,650 2,826 7% Net inc
Slide 39: Focus on Retail & Marketing: Africa
FOCUS ON RETAIL & MARKETING AFRICA MAIN REGIONAL ACTIVITIES VOLUME BREAKDOWN MARKET POSITIONS Aviation #1 #2 #3 10% Djibouti Lesotho Morocco Service- stations Togo Botswana (LPG only) Bitumen 34% Kenya 19% Senegal Eswatini Madagascar South Africa Nigeria (LPG only) GPL 18% C&I (Bitumen only) 18% Com
Slide 40: Focus on Retail & Marketing: Africa Challenges and Opportunities
FOCUS ON RETAIL & MARKETING AFRICA CHALLENGES OF THE REGION OPPORTUNITIES FOR RUBIS ▪ Emerging market ▪ Promote LPG − Growing population but poor quality of life and A cleaner energy alternative for: low energy consumption per capita − Cooking instead of wood, charcoal − Limited access to electricit
Slide 41: Focus on Retail & Marketing: Caribbean
FOCUS ON RETAIL & MARKETING CARIBBEAN MAIN REGIONAL ACTIVITIES VOLUME BREAKDOWN MARKET POSITION Aviation #1 #2 #3 GPL 9 % 6% Stations- Bermuda Eastern/ Suriname service Haiti Western Guyana 47 % Caribbean French Antilles French Guiana Jamaica Commercial 35 % LPG Rubis' Caribbean Haiti Jamaica Guyana
Slide 42: Focus on Caribbean: Challenges and Opportunities
RETAIL & MARKETING FOCUS ON CARIBBEAN CHALLENGES OF THE REGION OPPORTUNITIES FOR RUBIS Very disperse region: income inequality ▪ Developing less carbon-intensive ▪ Electricity mostly from fossil fuels solutions for our clients ▪ High costs of electricity production − Projects with HDF Energy − Hybri
Slide 43: Focus on Retail & Marketing: Europe (Mainly LPG)
FOCUS ON RETAIL & MARKETING EUROPE (MAINLY LPG) VOLUME BREAKDOWN ● LPG as most convenient solution LPG VS OTHER FUELS for rural, off-grid areas ● Lower CO2 emissions LPG 0% France, Spain, Portugal, ● LPG as replacement for fuel ● No black carbon/soot 16% Switzerland boilers for residential heating ●
Slide 44: Focus on Photosol: Photovoltaic Energy Producer
FOCUS ON PHOTOSOL PHOTOVOLTAIC ENERGY PRODUCER YEARLY SUM OF GLOBAL IRRADIATION (KWH/KWP) KEY STATISTICS OF OPERATING & SECURED PORTFOLIO AS OF NOVEMBER 2021 <1,200 1,400 1,600 1,800 2,000 462 MWp €33m 100% in annual revenue Installed & secured capacity of plants directly owned from the resale of el
Slide 45: Photosol 2008-2021: From Scratch to 313 MW
2 100% 2 2008-2021 FROM SCRATCH TO 313 MW CRE 4 Ranked #2 independent Success rate on CRE Capacity operated in France Ranked #2 independent Strong differentiation factors Significant assets in operation and pipeline increase as a result of solid and well implemented strategy 1. Focus on strategic ar
Slide 46: A Strong and Resilient Business Model
A STRONG AND RESILIENT BUSINESS MODEL ● All plants in operation and under construction benefit from secured financing at least over the term of their power purchase agreement SECURING FINANCIAL (20 years) with fixed rate EXPOSURE ● Projects under development: electricity selling price (CRE tender or
Slide 47: Best Positioned to Seize Market Opportunities in Agrivoltaism
BEST POSITIONED TO SEIZE MARKET OPPORTUNITIES IN AGRIVOLTAISM • FIRST DEVELOPER HAVING DEVELOPED LARGE-SCALE • PHOTOSOL’S KPIs AGRIVOLTAISM PROJECTS ▪ Land and equipment made available free of charge 93 1 2,500 ▪ The developer grants farmers free access and can also MWp 85% pole finance equipment ▪
Slide 48: Overview of Photosol Typical Portfolio Phasing in France
OVERVIEW OF PHOTOSOL TYPICAL PORTFOLIO PHASING IN FRANCE 12-15 months 10-20 months 3 months 2-3 months 3-6 months 10-18 months Submission Authorisations file Permitted Connectable Land secured of the authorisations considered complete project to grid Tariff Financing COD DEVELOPMENT ENGINEERING PRE-
Slide 49: Glossary
GLOSSARY aA ACE CAGR Average capital employed Compound annual growth rate g DPS Dividend per share EPS Earning per share EV Entreprise value FCF Free cash flow IRR Internal rate of return ROCE Return on capital employed tT RoE Return on equity 49
Slide 50: Contact Details
CONTACT DETAILS Please visit our website www.rubis.fr or CONTACT US Head of Investor Relations CSR Director & Chief Compliance Officer Governance Director Anna PATRICE Sophie PIERSON Eva CHAUVET Clémence MIGNOT-DUPEYROT csr@rubis.fr governance@rubis.fr investors@rubis.fr 📱 +33 1 44 17 95 95 📱 +33…
Slide 51: Next Events and Disclaimer
NEXT EVENTS Q4 2022 trading update: 7 February 2023 FY 2022 results: 16 March 2023 DISCLAIMER This presentation does not constitute or form part of any offer or solicitation to purchase or to sell Rubis’ securities. Should you need more detailed information on Rubis, please consult the documents fil