Rubis Adr

today's event. Please note this conference is being recorded and for the duration of the call, your lines will be in a listen only mode. However, you will have the opportunity to ask questions which will be addressed at the end of the presentation. You may submit questions via the webcast at any time. If you are connected via the audio presentation, you may press star one on your telephone keypad to register your question at any time. If you require assistance, please press star zero to be connected to an operator. I'll now hand the call over to Clemence Mignot, head of investor relations. Please go ahead.

Thank you, Melissa. Good evening, everyone. Thanks for being here with us tonight. I'm here with Clarisse Goebbels-Jazik, managing partner of Rubis, and Marc Jacot, CFO, will be handling the presentation, and I will moderate the questions at the end. Clarisse, the floor is yours.

Good evening. I'm on slide three. I don't know if you can see it from your computer. For those of you joining us today for the first time, I'm going to give a quick overview of the group. Ruby is a global group operating in the energy sector for more than 30 years. The group is providing and distributing safe, reliable and sustainable energy while handling most of the time the whole supply chain to B2C and B2B customers. We operate in three different geographies, Africa, Caribbean and Europe. All the countries in which we operate benefit from our expertise in the supply chain and we adapt our products and services to local needs and challenges. So for example, In Europe, we offer LPG and renewable energy through solar farms. In Caribbean, we distribute LPG, fuel, and soon solar energy to our customers. We used to own in a JV with an American infrastructure fund a bulk liquid storage, which is in the process of being sold to that fund. the closing of this operation is subject to one remaining CP, which would be waived shortly, likely a closing in Q4 2024. So let us dive directly into H1 2020 for highlights. So the first half was one of solid operating performance with an EBITDA stable on a comparable base. which is quite a performance considering that 2023 was particularly strong for the group. Ruby Photosol's secured portfolio passing a major threshold, reaching 1 gigawatt, representing an increase of 55% year-over-year. The cash flow continues to stand at a high level, illustrating the strength of our operations. So all these elements make us quite confident we will reach our guidance for 2024. So let's move on to slide six to go deeper in the operating highlights of each division. On the energy distribution side, so volume increased by 4% on the three continents, so Africa, Caribbean, and Europe. and adjusted gross margin remains stable over the first half with a unit margin remaining at 140 euros per cubic meter. Those results are explained by a strong performance of our operations in the Caribbean, both in our two activities, the retail and marketing activity and the support and services activity, which means globally that the last year momentum will continue. and Caribbean should continue to perform in the future well and be a strong contributor to the group's results in the future. Regarding LPG distribution in Europe, we are holding up well with volumes increasing by 3% and still gaining market shares in our different European markets. In Africa, the political and economic context remains difficult with poor weather conditions and protests. in Kenya in particular. As regards renewable electricity, development continues as planned. The secure portfolio of solar projects reaches one gigawatt in June 2024, meaning a 55% increase compared to June 2023. And the development portfolio continues to develop with a 23% increase since December 2023. ABG is growing. but at a slower pace than anticipated due to three main factors. The first one is bad weather in France this year, which impacted electricity production. The second one is the spot prices decrease. As a reminder, end of 2022, Sierra Eritrea benefited from a specific regime allowing sale of electricity at spot price for 18 months to compensate for the increase in interest rates and inflation. And the third one is development costs, which are needed to ensure future growth and a way on EBITDA generation. We remain, at the end, very enthusiastic about the development of Rebifotosol, and look forward to explain all the mechanism behind at the photos all day in 10 days. So on slide seven, I would like to come back to our investment criterion in each of our businesses, as it is a question we often get from the markets. So regarding the energy distribution division, strategy is to catch opportunities, organic or gross, to complement our existing businesses and locations in order to strengthen our competitive position. Considering the challenging we are facing in the energy sector towards the energy transition and the regulation, we focus on reasonable BPM multiples. We shot paybacks three to four years while assessing the inherent country risks and profile. The acquisitions in that business are half financed through debt. Regarding the renewable energy business, our strategy is to develop ground-mounted solar power plants rapidly and extensively in France and in other European countries where solar development ambitions are high and the legal framework is favorable and protective. Our financial criteria are the following. So we look at projects with 7% to 9% return, mostly finance with non-recourse debt at SPV level at least 80%. In France, it's more like 90%. And we secured income over long periods. So with the state, it's 20 years. and for the corporate PPA, it's between 10 years and 20 years. So Photosol is also working to develop the small-scale ground-mounted segment and storage. As was the idea when we acquired Photosol, the first synergies between OEB Energy, so the distribution division, and the renewable division of Photosol are developing particularly in France, the home, and in English Caribbean. with the deployment of joint offers for small power plants targeting our professional customers. In every investment decision we make, the criterion of the return it will generate is scrupulously studied. Our aim, of course, is to maintain the group's overall profitability.