Rubis Adr

Ladies and gentlemen, good afternoon and thank you for giving us some of your time. Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Let me at this point in time just give you a quick overview of how things have gone since over the last few years. 2019 is the last full year pre-COVID and that set a record high. Adr Adr Adr Adr Adr Adr Adr almost reached the 2019 record numbers as concerns 2022 well the environment isn't much more comfortable to operate in and we are producing very good results over H1 So I think it made sense to remind you of this. Over the last few years, what we've been trying to say is that our business model is particularly resilient. Adr Adr Adr Adr Moreover, we have made a very large acquisition, Photosol, that was integrated into our results over the second half of the second trimester, the second quarter of the first half. As you may know, Photosol specializes in renewables and maybe more specifically PV in France. and it's a very sizable business somewhere around 800 million very early on in the half year we sold off a large terminal in Turkey the conditions were good with a capital gain why did we do so why did we sell it well Adr Adr Adr Adr Can I also say that, again, the balance sheet is very robust. Corporate debt to EBITDA is 2.1, roughly, perfectly reasonable, despite the acquisitions. Lastly, we have further developed our ESG policies, we announced a carbon footprint reduction goals to minus 30% compared to 2019. So a 20 percentage points increase in the reduction.

But we'll come back to that later.

If you look at the figures for the period, as you can see, volumes are up 7%. This time we actually run a comparison with 2019. That's the extra column so that you can see what happened over this very important period. So unit margins has gone up 6% over last year. It's still down on 2019 however but over that fairly lengthy period there has been a change in the mix and other some of the unit margins are lower Adr Adr I would say that growth is particularly well particularly balanced in the three regions we operate in Europe Caribbean and Africa at least that part of Africa where we do business net income 170 million so up 25% on last year up 8% on 2019 we also offer here an adjusted net income quite simply because there are a number of non-recurring expenses, for instance, related to the high expenditure related to photosol. And conversely, selling off turkey has led to some additional income. All in all, it actually is a small difference, only about one million between net income and net adjusted income. It sort of comes out in the wash, but it was worth looking at. So adjusted net income, 169, up 17%. Adjusted earnings per share, up 20%. and we know that this is the ultimate criterion we know how significant that is for our shareholders so let's look at the group as it is well there are basically three business lines all in energy we have our traditional business of retail and support and services which make up a single consistent economic unit spread across 40 areas across three regions I mentioned. We're talking here about distributing LGP bitumen. It includes the petrol stations also. and also CNI the commercial oil and industrial so basically everything you can find in a standard petrol station business we also have a sizable renewable energies business which accounts for something like 20% of the group value so our recent investment is a massive significant investment Adr Adr and these are on the ground, not up on the roofs, and we have things that are as extensive as possible. And then, thirdly, we have Rubis Terminal, a joint venture on storage together with our American partners. You're familiar with that if you've been following us for some time. The Turkish terminal... Adr Adr Adr Adr and it recognized to be one indeed. And again, if you look at things since 2019, storage, so Rubis Terminal, has been enduring growth ever since 2019, namely 2020 and also 21 and 22. So a growth to the tune of 5%. Adr Adr We're mainly handling now chemicals, biofuels and foodstuffs. If you look at Europe, we're mainly handling LPG, which admittedly is fossil fuel, but widely acknowledged to be a transition fuel for rural and suburban areas and is difficult to substitute. we're also one of the leading PV electricity producers and we have this storage facility outside of Europe we're mainly handling standard fuels LPG and bitumen so products with a larger carbon content but products that are perfectly adjusted to economies that are very different from European economies before we delve into the figures a little more let me mention briefly Photosol which is really a key acquisition for the future on a par with the other two businesses I mentioned what you can see here is two sets of things on the right of the slide you can see our pipeline and our Adr Adr And we have 57 megawatts awarded, meaning that we have all the authorizations, the contracts have been awarded, and we have the green light from the CRE. We just need to get going and build it. On pipeline, so on the right, there's 65 megawatt for which we've secured the land and the building permits. and on that basis we can therefore put in a tender to secure contracts and implement these production capacities. Advanced development accounting for 1.1 gig that basically covers grounds or lands that have been signed so we're just missing basically the building permit. And the early stage, well, you've basically a gentleman's agreement with the owner of the plot or the land, a plot that is near enough the network. And what we need to do there is do the technical work and secure the authorizations and licenses before we can move on to production. As concerns the 57 megawatt awarded, I'm sure you've read the papers. And you can expect our subsidiary to have been heavily involved in this. But there's basically an issue now between the contracts that have been signed and will lead to construction and the upcoming inflationary phase with high inflation rates. So we are in talks with the government to get them to offset these additional costs that would challenge the forecasts. Things are going ahead fairly smoothly. It's quite obvious, isn't it, that we cannot come to final investment decisions if the economic model is knocked off kilter because of the significant increases in construction costs over the last few months. So what do we intend to do? Well we want to have high growth. From the very beginning we said that we were aiming for 40% growth on capacity over the next few years. We consolidated on April the first and we should get 20 percentage points for this year. We hope and we expect to see that increase over the next few years to now photo soul is all about agrovoltaic. So using farmland and as as a land for PV. Now, IRR is aimed quite high, obviously at 7% to 9%. The cost of capital is actually... Adr Adr so we will get growth and secure growth in France we'll be looking at other domestic markets in Europe look at other things that look that are close to photovoltaic we'll be looking at add-ons with hydrogen and stuff like that we'll also be branching out into the corporate market EDF is not the only one to buy green electricity. Other large corporations wish to do so and have reliable long-term expectations. So capital allocation.

Adr Adr so support and services we can expect cash flow from operation above 1.5 billion capex over the maintenance period can be assessed at 500 million expansion capex a bit less at the order of 300 million for a free cash flow of 900 million which means that after maintenance capex. And before expansion, we have 100% of the cash conversion. In other words, we're fully covering if we take a benchmark of 300 million for a net income, which was a result in the past that can serve as a benchmark. We're generating free cash flow that covers the full net Adr Adr Adr Adr Adr Adr Adr Lastly, final point that I wanted to mention is that of the balance sheet. All these transactions haven't in any way undermined the solidity of our balance sheet. You see on the right the multiples of net debt to EBITDA that was 0.9 in 21, which pro forma Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr which is that, of course, we have as a target to look at M&A, and we still have a strike force of the order of $200 million to $300 million after those acquisitions. And earlier, as we mentioned, profitability targets for Photosol. on the historical markets are profitability targets a double digit for simple reason we can obtain those in the cost of capital which is Adr Adr Adr Adr Adr subsidiary Rubis Energy concerns both distribution concerns retail and the downstream and support and services with refining storage and shipping but I wanted because of the Adr Adr Adr Adr Adr as to the availability and the supply of the group in terms of petroleum products, because we are buying about five to six million cubic meters of petroleum products. The map shown here indicates that there's absolutely no interaction with Eastern Europe, be it Russia or Ukraine, regarding those supplies, be it Russia, for crude from the North Sea or bitumen that is sourced in the Mediterranean between Spain and Turkey with Greece and Italy going straight to our facilities located in Togo. The more that we ship in our own vessels as to LPG in Europe, it's supplied, it's sourced largely locally, local North Sea supplies, and it's also possible that we receive cargoes in the U.S. to a major facility depot where we're a shareholder in Portugal, similarly in Africa, LPG. certain local refineries in South Africa. U.S. supply to our major Joffre facility in Morocco. Africa fuel coming either from Asia, Indian Ocean, or the Middle Asia, Middle East, Saudi Arabia, and the Caribbean area is supplied by the American continent close by, notably the East Coast, the Gulf of Mexico, and certain... Adr Adr Adr Adr Adr Adr split across the five segments, LPG, fuels, lubricants, aviation, operating income, Africa, Caribbean, Europe, Africa, currently representing 45% and other business risks to which we're exposed, forex. Adr Adr Adr Adr Adr Adr Adr moving on through the risk factors that we've already mentioned it's a business that's cost plus that is that we pass on the supply price to the end user be it upwards or downwards and the chart shown here Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr furthermore what we wanted to this is I think the slide that we've reached just to return to developments over the half terms of volume and margin you have volumes that are up 7% a union margin up 6% which overall is six plus seven, 13% of gross margin, 100 million euros. In addition, that is impacted directly on the Adr Adr Adr Adr Adr Adr Adr We need to know is the normalization gradually in the wake of COVID after four, five quarters improvements, but improvements returning to the normal level will continue. Adr Adr Adr Adr to note that the performance of 2022 is consistently higher than the two previous years in terms of level of unit margin. It's true except for the Caribbean, which in 2020 benefited from significant results from Haiti, which were declined sharply over the period. So let's continue into the geographic footprint here. In summary, Africa, a continent, and markets that are growing, Caribbean niche markets, as you know, in the islands. and Europe positioned essentially in LPG, a mature product in mature markets generating significant cash flow and this cash flow is used and recycled within the group to fund expansion in the Caribbean or even more so in Africa. So that's how the cash flows operate within the group. A word about the level of recurring operating income. EBIT, 104 million up, 26% over the period. You see Africa, Caribbean, Europe, all our markets, all our geographies are up, posting growth. both in terms of 2021 and 2019, except for Haiti, the Caribbean, because of the specific situation of Haiti. Africa, the highlight, was really on the half. was a sharp increase in results. Plus 30% Madagascar was slowed. The oil petroleum prices were capped by the government. That's been the case for 18 months so far. And Adr Adr in terms of cash generation in that area. Support and services, which is our upstream within Rubis Energy. This is a division that is strongly profitable, that once again, over the half-sore, its earnings grow 22%. The major contributor being the Caribbean economy, Adr Adr and we are engaged in trading activities to other continents, such as America, where we send cargoes to supply Canada and the US when those two areas are short of bitumen. So, very good climate for Rubis in that sector. Renewable

We've discussed renewables at length already, mentioning Photosol and Rubis Energy. We've discussed already this consolidation, first consolidation over the quarter with 7 million in energy Adr Adr Adr Adr Adr This would, of course, stem from the building or the construction of what is in the pipeline and its further growth. What we've also noticed is the success levels or the awards by the CRE following tenders. Adr Adr Adr Adr Adr to support the growth of the pipeline, supporting development teams and increasing them by a quarter precisely to handle and manage this growth. Adr Adr commercial contracts and this is a business that is picking up and will be significant over the next few years so we're getting ready for that to make sure that we have a decent position when this all happens by the end of 2022 we should have reached 440 installed megawatts So significant additions there. Our joint venture, Rubis Terminal, comes third in this list, but it is significant in the group. We're talking about 120 million contribution to EBIT. and that is a 4% increase on the previous EBITDA, that is. H1 was good. H2 was even better. Sorry, Q1 was good. Q2 was even better. Biofuels storage demand has gone up in France in Spain chemicals is also experiencing significant increase the usage levels is somewhere around 100% in almost 100% in northern Europe so everything we've built well we're already getting requests and demands to use them As concerns the fertilizers or vegetable oils segment, well, the situation on the market because of the situation in Russia and Ukraine has led companies to make purchases to be on the safe side. Adr Adr Adr Adr Adr Adr Adr Adr Adr We've almost also, and that's not where they have aged to, almost finished refinancing what was done two years ago in April 2020. It was a high yield instrument over five years with a times five factor. We've managed to increase the maturity to 7%. and increased leverage to times six, which really does establish Ruby Terminal in the infrastructure business. And despite the significant interest rate increase since the beginning of the year, we still enjoy interest rates lower than what we had on the previous paper that was high yield so it's cheaper over longer maturity with a higher leverage so quite significant and this will lead of course to additional dividends for shareholders I mean we've already commented the results but we could maybe review them briefly Here you have it from EBITDA to adjusted net income and Jacques has already spoken about this. Adr Adr Adr Adr This is due to the increase in the dollar rate and the scarcity of actual dollars in some markets, so Nigeria or Kenya, for instance, markets where we operate. And this is the sort of thing that explains the forex losses. up by something like 10 million compared to last year. Net income, adjusted net income, 169. Net income group share, 170 million. This clearly shows that any positive exceptionals are offset by negative exceptionals and that basically our results are of high quality. Now if you move on to cash flow, 7% increase in our ability to finance ourselves you remember that we showed you previously a graph about procurement and its impact on the working capital Adr Adr Adr So the change in working capital over time is in no small part related to the variations in oil prices. The significant drop in 2014-15 had led not so much to a need in additional working capital but in fact increasing working capital to the tune of 150 million but over 2021-22 you see that there's been an increase in oil prices which has led to a disbursement of cash and therefore an increase in the working capital requirement but over the long run as you can see over a decade or so we're basically at naught And finally, the change in net debt is what we have here. You have the bridge from January 1st to June 30th. Adr Adr I'd also say that the debt at 1.4 billion for the group is made up of very long-term debt from Photosol over 20-year maturity with variable at LIBOR plus 1.5%. and of course we bought out or secured swap that had enabled us to hedge against interest rate hikes as for the rest of the business on average the interest rate or the debt runs over three and a half years Adr Adr

Well, that's it.

I think that's all I wanted to discuss with you. Thank you. And I'll give the floor to Clarissa.

On this slide, just to remind you that our first CSR roadmap over the period 22 through 25 was published precisely a year ago. It concerns our main division, Rubis Energy, around the three major sustainable development prongs, such as all companies with CSR, environment, climate, social... Adr Adr Adr Adr Adr the production of solar power to identify the priority initiatives and charter roadmap available during 23. Our current roadmap, I'd just like to return to the three highlights of our roadmap, decarbonization of our activities, the role of women Adr Adr Adr Adr between 2020 and 2030 in the associated capex. The main levers for decarbonization that we've identified will concern Adr Adr The budgetary estimate of these action represents about 8% of capex for rubis energy between 2020 and 2030 per year. The place of women in management committees, our target is 30%. Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr will be trained in defensive driving in high-risk countries by next year. We're putting in place a tool to better detect and talent pool to secure the growth of talent over the long term. On the society front will be human rights risk mapping, development of a sustainable procurement approach, our initiatives 22 and 23 follow up on 2021 with an update the annual results governance and our supervisory board perhaps interesting to indicate that we've renewed our supervisory board for two years now by appointing four new independent Adr Adr Adr Adr Adr Adr Thank you for that. So final intervention, I won't go back on the results of H1-22 and full year we're expecting strong growth in earnings. We've really notched up a very good Adr Adr Adr Adr Adr Adr traveling to to work heating cooking these are basic needs with very little price elasticity I'm not saying there's zero elasticity but very price sensitive and then we have a range of geographies Adr Adr really is a constant that we've seen from day one a constant of these markets on the conventional fuels that we all know in terms of renewable energy one of the fundamentals of this business we're in France it's a French European business just look at the ambitions both French and European in this area. All it would take was a mere part of the targets to be reached so as to generate for operators very significant growth. Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr Adr so by way of a conclusion we renew our extraordinary confidence in the strength and growth of the group and the numbers have demonstrated that so far thus far thanks for your attention be happy to take your questions yes any questions yes sir

Have we a microphone for the gentleman? Good evening and thank you for this presentation. I have four questions. The first three Adr Adr as compared to 2021 I think on page 10 your illustration actually covers 2021 and not 2021 and not 2022 second question are there any governments that are subsidizing the price hikes in fuels for instance we've Adr Adr Adr Adr Adr Last question. You mentioned your outlook for that division, but could you maybe say a little more as to what we might expect in H2? Can we expect something similar to what we've seen in H1? Then, last question on Photosol. Can you tell us more about what the government is doing to offset inflation on solar panels, as you mentioned? product mix to address your first question on distribution on retail and distribution the illustration Adr Adr If we had only used the numbers for the half year, it wouldn't give you an honest representation of what happens over the whole year. Now, numbers and sales are fairly stable. Admittedly, there's a significant increase in airline-related sales, which were much lower last year. Adr Adr Adr Adr and in Europe well as you know winter happens during Q1 so seasonal factors second your second question referred to subsidies admittedly some countries for instance Nigeria does subsidize even though we're not active on the fuels market in Nigeria in Kenya the steep increase in prices over the last 12 months has led to the government capping prices But to offset that, there is a subsidy to compensate retailers for their losses. And the subsidy is meant to cover the whole of the expense or loss of income. But it's not that simple. Of course, there are it takes some time to get the payment from the government it was meant to be the following week and then it took two weeks three four six weeks two months those are the sort of issues we have to handle price formation is and remains what it is but there is a capping of prices and a simultaneous compensation. Can I maybe say something about M&A? M&A is and remains our goal. It's true that we didn't do any M&A over the last few years, bar a photo sold worth 800 million. now it's true that there was no M&A in the historic business now when we experienced the first few signs of COVID we expected acquisition opportunities to pop up that wasn't the case maybe because the cost of money was very low and there was much cash sloshing about and Adr Adr and this will also be true of PV but there our priority is mainly internal growth organic growth now the difficulties of some operators in Africa has indeed been useful in Kenya or Nigeria where some of our competition had lack of inventory but it did not trigger any M&A so so much for what I could say for the moment Would you take the floor on Rubis Energy H2? Well, for H2, what we can say about Rubis Energy is that we can have experienced a very good performance over H1. I think we can hope that over H2... Things will come back to normal for instance on volume with the tail end of the Covid impact. We were somewhere around 80% Adr Adr Adr Adr confident over the whole year what with 20% in H1 I think a significant part of that should be felt all through the end of the year Can I maybe address the question on government mechanisms to offset inflation? The CRE, the Energy Regulation Commission, authorised on 1 September electricity producers to sell Adr You also, I'm sure, heard that the European Commission aims at capping the price at 200 euro a megawatt. We can't say much more. For the moment, the spot price is 600 euro per megawatt compared to 60 euros a megawatt, the regulated price by the CRA. Well, as Clarissa said, we don't quite know what the mechanism will be, but the government in France at least is fairly reactive, very reactive indeed, and trying to address this issue. The issue is the difference in prices set at the time we sign the contract with CRE and the time the plant comes online. we as any other operators in the market are having to tackle inflation on the price of input for solar energy farms This is a one-off issue, I'm sure. I think we can expect that this will be handled and settled. But it is calling into question the economics of a project and having a 25-year project that would start its business on an uneven footing is surely something that everyone can understand is no good. We have another question. Question off mic, unfortunately. can you maybe give us an idea of the magnitude either volumes or margins of the products sold under retail and marketing that are subsidized answer this is Africa we're talking about Kenya and Madagascar something like 20% of the volumes in Africa Adr Adr Adr Adr So again, this is temporary. But apart from these occurrences, we avoid generally subsidized markets because we always have a bit of a problem getting the subsidies paid to us. Adr Adr Thank you so very much for your kind attention. I do hope that you will join us again at the next presentation. Thank you.