Rubis Adr

Welcome to the Ruby 2025 half-year results presentation. For the first part of the conference, the participants will be in listen-only mode. During the questions and answers session, participants will be able to ask questions by filling in the form at the bottom of the live page or orally by clicking on the participation button in the player labeled as request to speak. Then you will be notified when to ask your question. Now I will hand the conference over to the speakers to begin today's conference. Please go ahead. Good evening, everyone.

I am Clémence Meunier-Perrault, Head of Investor Relations. I am here today for Euribus H1 2025 results. I am with Clarisse Goban-Zieznik, Managing Partner, and Marc Jacot, CFO. Clarisse will start the conference.

Ladies and gentlemen, good evening. To kick off this presentation of our H1 results, let me very quickly remind you what we do. Our business is about distributing energy while supporting mobility solutions. In Europe, we distribute and sell LPG and we also produce and sell photovoltaic power. In Africa, we distribute and sell bitumen to road contractors in West Africa and fuel and LPG in East Africa. In the Caribbean, we distribute and sell fuel and LPG. Those products reach a wide range of customers, both individuals and professionals, while the distribution is supported by a reliable and most of the time in-house logistics. For H1 2025, this diversified business model delivered a steady performance. In a global economic environment marked by uncertainty, Our results for the first half of 2025 stand out with growth in volumes and margins across all regions and product lines. Photosol continues to progress according to plan, on track towards 2027 objectives. Our group EBITDA grew by 3% and the net income group share by 26% driven by a strong operational performance, better FX management, and stable emerging currencies. Cash flow generation remains steady at 276 million euro for H1, which is a key highlight of this publication. All of this gives us confidence in reaching our full year guidance, even in a less favorable USA-Europe exchange rate environment in H2. The following slide highlights our balanced growth across product lines and geographies. It showcases the strengths of our commercial strategies, our agility, and seamless execution. Looking at our edge-front performance by business line, you can see that in retail and marketing, all products delivered both volume and margin growth. LPG was driven by a very strong commercial momentum in Europe. In fuel distribution, the expected pricing formula adjustment in Kenya took the first step in March. The second step implemented mid-July will show in our H2 performance. In bitumen distribution, demand in Nigeria is strongly picking up. The sharp decrease in unit margin is visible here. is surely a basis effect linked to the 2024 currency devaluation. We already mentioned it in Q1. Marc will elaborate further on this point. As for support and services, which covers supply to the distribution business and the SAVA machinery, performance remains overall stable. Finally, The renewable business is expanding as planned, with a sharp increase in both assets in operation and secured portfolio, in line with the roadmap we presented at last year's photosonding. In conclusion, these first half results are yet another demonstration of the group's ability to deliver consistent commercial and operating performance, cycle after cycle. And when you combine that resilience with discipline and proactive financial management, the outcome is clear, a strong and steady cash flow generation, fully in line with our historical standards.

Thank you, guys. Good evening to all. Let's start with the big picture for the first half. Our EBDA is up 3% year-on-year and flat on the comparable basis. As Clarisse already mentioned, this is driven by strong LPG performance in Europe, while in Africa, Kenya improved volumes and margins in the retail segment, and Bitumen returned to growth in Nigeria. Net income is up 26% to 163 million euros, reflecting the absence of FX losses. CAPEX related to the distribution business remains well under control, worthly stable at 73 million euros. while they are increasing in renewable to 85 million euros, which is a concrete and positive sign that our growth projects are now materializing and are being steadily erased. Nearly 85 megawatts were put in operation over H1 and 290 megawatts are now under construction. Corporate net debt is stable at 1.4 times despite the negative change in working capital over H1 which confirms our some financial position. And finally, cash flow from operations remains strong at 276 million euros for the first half year, supported by the good operating performance and the absence of FX losses. All in all, that's a solid performance. Now, let's take a closer look at our activities. Retail and marketing delivered a solid performance across the board, with EBITDA increasing by 3% year-on-year. In Africa, we have three things to highlight. First, retail. Retail is contributing well, and the impact of the new pricing formula in Kenya is expected to be fully visible in the second half. Second, aviation, which is more volatile, is facing higher pricing competition, leading us to reduce our volumes for the moment in Kenya. And the third one is bitumen. Bitumen margins increased less than volume, and this is the biggest effect from 2024 when neurite devaluation impacts. affecting the financial results below the FDA was fast through to customers. Now let's look at the Caribbean. The Caribbean region was broadly stable, which is in line with our expectations. Guyana slowed down a bit with the election coming up in September, creating some kind of wait and see behavior among our B2B customers. In Haiti, The measures we have taken in our logistic management are starting to pay off, even if volumes remain a bit soft. Jamaica is normalizing, with supply conditions slightly less favorable than last year. Now Europe. In Europe, the momentum is particularly good as a result of our challenger positioning combined with the excellent drive of our commercial teams and a colder winter this year. Looking at support and services, it remains stable, which is normal as this segment usually flexes with our retail and marketing activities. Now, the renewable electricity production. What we can say is that the power of EVDA stands at 22 million euros, which is up 38% year on year. In line with our roadmap, our development expenses have increased, reflecting the acceleration of the growth of this business, resulting in a consolidated EVDA at 10 million euros. In conclusion, this is a robust operating performance, adjusting the strengths of our product and geographical diversification. Let's have a look at our front-channel results. Let me highlight just a few items here. The net income group share is up 26%, or on the comparable basis, 18%. This is the result of lower expensive local debt levels and reduced FX exposure. When analyzing our income statements, let me remind you that the share of net income from Associates in H1 2024 included Q1 results from Rubis Terminal. Interest costs are done thanks to lower debt in Kenya and more favorable interest rates. As you know, last year we recorded significant FX losses, particularly in Kenya and Nigeria. In H1 this year, local currencies were more stable, and the strategies we put in place to mitigate the FX risk have proven efficient, and we didn't incur any FX loss. As for taxes, nothing major to flag, the OECD Global Minimum Tax is now fully integrated in our normal realm. Overall, Rudis demonstrated agility and delivered solid financial results, fueling its cash flow momentum and supporting its balance sheets. Now, a word on our financial debt. Total net distance at 1.4 billion euros with corporate debt at 910 million euros, maintaining a healthy leverage of 1.4 times at corporate level. Our liquidity level is high with more than 180 million euros unruh FTF in addition to our 530 million euros cash and balance sheets. The main variation of this date is how it came from the steady operational cash flow of 390 million euros, which is up 11%, reflecting the good operating performance combined with the absence of FX losses. A negative impact from change in working capital, of 68 million euros after a very positive effect in H224 as a consequence of lower trade payables. CAPEX of 164 million euros which is higher than last year with the rent up of Photosol and our usual June dividend that we pay to shareholders but also to minority interests and general partners. Non-recourse debt increased by 63 million euros in line with the renewable investments. All in all, our balance sheet remains solid with ample liquidity to support our future works.

Thank you Marc. Before we open the floor to Q&A, let me wrap up. So first, we saw robust commercial and operating performance. Second, our seamless execution and agility deliver reliable cash flows through the cycle. Finally, these H1 achievements make us confident we are on track to reach our 2025 targets, even in the less available EURUSD context in H2. With a healthy balance sheet and a stable leverage ratio, we confirm we are aiming at 710 to 760 million euros EBITDA within the framework of assumptions you have here on the slides. Thanks a lot for your attention. We are ready to take your questions.

If you wish to ask a question, please either fill in the form at the bottom of the live page, or click on the audio participation button in the player labeled as request to speak, and wait until you are notified to ask your question.

We have no audio questions for the moment. I propose you begin by the written questions on the webcast.

so we have two questions on the webcast from Auguste de Rix at Kepler question number one is group EBITDA was stable on a comparable basis despite 5% volume growth what are the key headwinds preventing stronger margin conversion

What we can say on the margins. As I mentioned, the LPG margins were stable over the first half. And in the fuel distribution business, the unit margin decreased by 1% in H1. And this decrease came exclusively from the Caribbean, especially from Jamaica. In Jamaica, the supply is not in Ruby's hands. And last year, we had very favorable conditions for this supply. And this semester, actually, those conditions normalized, I would say. So that's the first explanation. Second one is on the bitumen, bitumen distribution business. So the volume growth in Nigeria resumed, as we explained, and H1 2024 was high due to the FX pass-through, and the significant decrease in margin is explained by the basis effect after H1 2024 devaluation. After considering the guidance,

We have two questions considering on Euro-USD FX. So question number one is, but both questions have the same answer. Question number one is, what level of FX rate in hyperinflation assumptions underpin the guidance, the target of 710 to 760? And what contingency levers do you have if the macro backdrop worsens and Another question from Emmanuel Matou is, what is the dollar negative impact we can expect for 2025 on your IPTA?

So, regarding the guidance and the hyperinflation embedded in the guidance, we have the same level of higher inflation in the guidance than in 2024, meaning positive impacts of 25 million euros, 24 million euros on the EBITDA, 22 million euros on the EBIT and minus 10 million euros at the net income group share level. So this is our assumption, and this is something that we will know only at the closing, so there is a lot of uncertainty in the hyperinflation, so we cannot commit on this number. In terms of impact of USD and EUR, the initial assumption we had was the EURUSD level of the beginning of the year, meaning an exchange rate of 1.05 USD for 1 EUR. Now we are at 1.17. What we can say is that the good performance of the H1 will compensate the defavorable impact related to the US dollar impact. The margin we have in US dollar is concerned actually, I would say, two-thirds of our business. Okay, so you can calculate what is the impact yourself on that for H2.

As a reminder, if you wish to ask a question, please either fill in the form at the bottom of the live page or click on the audio participation button in the player and wait until you are notified to ask your question.

We have another question online from Jean-Luc Romain. Could you please give us an idea of what the renewable EBDA is before development costs?

So the renewable ABDA before development cost is what we call the power ABDA. The power ABDA amounted to 22 million euros in H1.

We have another question from Thomas Treeter saying about the aviation business. Are any of your markets showing activity in SAF, sustainable aviation fuel, and is that a market who this might get into? We are more or less agnostic to the type of fuel we distribute. We adapt to the demand of our customers. We would be able to distribute SAF and we do in some places, especially in the Caribbean. But it's mainly a question of offer and demand and there is not a lot of offer today. We are in any case adapting ourselves to the demand from our customers. Another question from Mr. Sass about Photoshop Portfolio Evolution. It is not on the slides you have here in the presentation, that is in the webcast, which you can find it on our website.

As a last reminder, if you wish to ask a question, please either fill in the form at the bottom of the live page or click on the audio participation button in the player and wait until you are notified to ask your question.

We have another question from Emmanuel Meadow at Udo online asking us if we have any impact of U.S. tariffs during the summer.

Revious geographic and operational model makes it largely insulated from the direct effects of tariffs. We are not present in the US nor in China, and we do not depend in any case on USAID or China-based suppliers in our distribution business. On the indirect side, the products and services we offer are essential, particularly in the energy space. As such, demand tends to be relatively inelastic, meaning it remains quite stable even during periods of price volatility or economic slowdown. So I would say we have no effect of tariffs on our TNL or results.

Another question from Roger Debris. Can you update us on the CAPEX plans and specific projects for the next year or two in the energy distribution business?

So Roger, what we can say on the photos on capex. This level, as you know, will increase in line with the ambitions communicated to the market that photos on day. So it is a 1.1 billion capex. in the 2024-2027 back-end model. And for 2025, it should be in the range of 150 to 160 million euros. Adr Adr Adr Adr Adr Adr Adr Adr

Another question on mine, can you give us an update on the shareholder structure? So the answer is public. The shareholder structure as of today is the largest shareholder is Mr. Patrick Mullis with a bit more than 9%. Then you have the Bolloré group through Plantation des Terres Rouges, a bit above five. Adr Adr Adr Adr Adr Adr

There are no more questions at this time, so I hand the conference back to the speakers for any closing remarks.

Thanks a lot for being here. We will be on the road on the days to come, so do not hesitate to reach out to us if you want to schedule a meeting or if you have questions, you know where to reach us. Thanks a lot and have a nice evening.