A SUCCESSFUL CONCEPT IN MID / DOWNSTREAM ENERGY … · •Changing oil spec, state policy of...
Transcript of A SUCCESSFUL CONCEPT IN MID / DOWNSTREAM ENERGY … · •Changing oil spec, state policy of...
A SUCCESSFUL CONCEPT IN
MID / DOWNSTREAM
ENERGY BUSINESS
March 2020
RUBIS IS ORGANISEDINTO THREE PROFIT CENTERS
FUEL RETAILING
Sale and marketing of fuels to end
customers: Multi-segment positioning:
Motor gas stations, fuel oil, LPG, bitumen,
aviation and marine fuel, lubricants
SUPPORT AND SERVICES
Midstream business in support
of the distribution : refining, trading/supply,
shipping, terminalling and services for
both its own account and third parties
TERMINALING & STORAGE
Bulk liquid storage : Petroleum products,
fertilizers, chemical, edible oil and
molasses.
Customers: oil companies, fuel retailers,
chemical industry, traders
and Government agencies
67% 23% 10%
Marketing business Support and Services business Services provider
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2019 CONSOLIDATED DATA (IN €M)
+19%
SALES
5.228(1)
Sales
524(1)
EBITDA
307(1)
Net profit,
Group’s share 3,09(1)
EPS (€)
1,75(2)
DPS (€)
+18%
EBITDA
+19%
EBIT
+21%NET PROFIT,
GROUP’S SHARE
+11%
EPS
3
412(1)
EBIT
+9%
DPS
COMPOUND GROWTH OVER 10 YEARS TO 2019 – LONG-TERM GROWTH LEAD BY ACQUISITIONS (≈ TWO THIRDS)(3)
(3) Before IFRS 5 et IFRS 16 for FY2019
(1) After application of IFRS 5 (Rubis Terminal) “non-current assets held for sale” and IFRS 16 “leases”.(2) Amount to be proposed at the june 11, 2020 Shareholders’ meeting.
THINKING LONG TERM: THE ESSENCE OF RUBIS DNA
BUSINESS STRATEGIC POSITIONING
• Multi-local specialist & niche player enjoying leading market
positions: top 3 player – few participants – market share up to
80%
• High barriers to entry: regulation/capital intensive
• Full control of distribution channel securing competitive supply
and delivery to customers
GLOBAL BUSINESS CHARACTERISTICS
• Low exposure to business cycle – resilient business offering visibility
• Low tech content business – quality of service being a key factor of
differentiation
• Fragmented risk structure: multiple segments/geographically spread
• High potential for further acquisitions worldwide
FINANCE
• Solid free cash flow generation
• Low financial leverage
• Significant dividend pay-out and growth
• Cost Plus business – stable unit margin
ORGANISATION
• Autonomy of local management: quick decision making process
• Close to customers + capex adapted to local needs + efficiency
and market share gains
• Empowered and entrepreneurial local managers
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RUBIS BENEFITS FROM STRONG LOCAL POSITIONS AND IS ABLE TO BUILD UP ITS COMPETITIVE OPERATIONAL LEVERAGE IN A MOVING GLOBAL ENVIRONMENT
FUEL SUPPLY AND RETAIL
• Supply cost at parity with oil major
• Ability to pass supply price volatility on to customers
• Efficiency gains attached to both organic development and
acquisitions
• Import logistic ownership in markets structurally dependent
on imports
TERMINALING & STORAGE
• Structural imbalances between supply and demand creates
new flows of products and new logistics requirements : jetty -
blending capacity
• Barriers to entry: capital intensive business and constraining
environmental regulation
• Changing oil spec, state policy of strategic reserves, global
refineries re-location
• New positive challenge: IMO 2020, new gasoline/diesel mix
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FULL CONTROL OF SUPPLY CHAIN AND
MARGIN UP TO FINAL CUSTOMER
LOCATION, CUSTOMER BASE –
HIGH QUALITY ASSET BASE
RUBIS ÉNERGIE: 6 MILLION CBM ON A FULL YEAR BASIS
* Including Ethiopia,Ouganda, Rwanda, Zambia.6
LPG
(23%)
Fuel
(72%)
Bitumen
(5%)
❹ France
❸ Spain
❷ Portugal
❶ Channel Islands
❶ Switzerland
❶ Djibouti
❸Morocco
❷ Botswana
❷ Lesotho
❷ Swaziland
❶ Réunion
❶ Togo
❶ Senegal
❶Madagascar
❷ South Africa
❶ Nigeria
❶ Comoros
❶ Kenya*
16%42% 42%
Market position
USD
48%
€
22%Others
29%
39% 28% 32% Gross margin
Volumes breakdown
Net contribution
(RE&SS)
❶ Bermuda
❷Western Caribbean
❷ Eastern Caribbean
❷ Antilles – French Guiana
❷ Jamaica
❶ Haiti
❶ Suriname
❶Guiana
A LOW EXPOSURE TO OIL PRICE VOLATILITY
LPG quote Unit margin
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Annual change
This chart shows Rubis Énergie capability to pass on to final customers supply price volatility though maintaining margin stability in a volatile
commodity price environment.
50%
14% 14%
-13% -15%
-36%
-16%
43%
10%
-21%
-4%
5%-1% -2%
2%
15%
-2%1% 2%
9%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
RUBIS TERMINALSTORAGE CAPACITY: 3.5 MILLION CBM
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Fuel
77%
Chemicals
10%Brest (131)
St-Priest (157)Villette-de-Vienne (63)
Salaise-sur-Sanne (20)
Village-Neuf (Mulhouse) (63)
Strasbourg Reichstett (867)
Dunkirk (475)
Rotterdam (216)
Antwerp (187)
Rouen (778)
Corsica (37)
Dörtyol (Turkey) (650)
Fertilizers
8%
Edible oils / Molasses
5%
AN ACQUISITIVEBUSINESS MODEL
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• Since 1995 : some 40 acquisitions for a cumulative amount exceeding €2bn
• A deep reservoir for acquisition targets ahead: oil majors, privatization, family office,
government agencies, listed companies, …
• Range of EBITDA multiple paid: 5 - 7x
• Material earning improvement in year 3 post-acquisition through re-management, re-
positioning and specialist-mindset
e.g.: Shell in Southern Africa +50% 2006-08 2011-13 2017-19
Chevron in Caribbean +100% ROC/ACE* 11% 14% 15%
BP in Portugal +20% *ACE: Average Capital Employed
AN ACQUISITIVE BUSINESS MODELSince 1995: some 40 acquisitions for a cumulative amount exceeding €2bn
SES Strasbourg
€18m
96/99
GREENFIELD
DEVELOPMENTS
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Morocco
€14m
EXTERNAL
GROWTH
Rubis Énergie
Propetrol
€15mFrench Antilles
€107m
2000 2001 2003 2005 2006 2007 2008 2009 2010
Senegal
€5m
Europe (5
countries) LPG
€44m
Bermuda
€32m
Corsica Dist.
€10mLPG Spain €8m
Channel Islands
€16m
South Africa
Switzerland
Spain Caribbean
€280mCorsica Storage
Madagascar
€14m
Frangaz
€25m
Rotterdam
€90m
Rubis Terminal
Antwerp
€80m
AN ACQUISITIVE BUSINESS MODELA deep reservoir for acquisition targets ahead: oil majors, privatisation, family office, government
agencies, listed companies
2011
GREENFIELD
DEVELOPMENTS
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EXTERNAL
GROWTH
Bahamas
Botswana
Cayman Islands
Turks and Caicos
€82m
Reichstett
€36m
SARA Refinery
€47m (35,5%)
LPG Switzerland
€16m
2012 2013 2014 2015 2016 2017 2018 2019 2020
MultigasSwitzerland €9mPortugal €115mJamaica €60m
Bermuda Gas
USD18m
Rotterdam & Antwerp
Extension in progress
2015-2017
Rubis Énergie Rubis Terminal
Dinasa & Sodigaz
(Haiti) Galana
(Madagascar)
EG Retail (Corsica)
Total amount:
€380m
Rubis Terminal
Petrol (50%)
in Turkey
Djibouti €18mReunion Island
€100mEres USD350m
Delta Rubis (50%)
in Turkey
€72m
Repsol Portugal
€42m
KenolKobil
(Kenya)
€312m
Gulf Energie
Holdings
(Kenya)
CAPITAL EXPENDITURE
12
(IN €M) 2018 2019
RUBIS
ÉNERGIE
Safety, sustainable 46 64
Organic growth/development 71 46
TOTAL RUBIS ÉNERGIE 117 110
RUBIS
SUPPORT AND SERVICESTOTAL RUBIS SUPPORT AND SERVICES 60 57
RUBIS
TERMINAL
Safety, sustainable 31 18
New projects France 13 14
Extension (Rotterdam/Turkey) 12 31
TOTAL RUBIS TERMINAL 56 63
TOTAL 233 230
Free cash flow (after interest, tax, normalized change in WK and sustainable capex). 232 345
OPERATING PROFIT BY DIVISION (IN €M)
Fuel retailing Terminaling & Storage Support and Services* Holding
13
-50
0
50
100
150
200
250
300
350
400
450
500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019**
-5 -4 -8 -9 -11 -10 -13 -15 -15 -19 -18 -22
42 44 4778
98116
97
153199 254
275321
34.7 37.8 48.1
51.959.4
56.5 60.2
51.4
53.6
69.446.2
49
23
51
62
64 88
108
* In 2014, Fuel Retailing split into Support and Services and Fuel Retailing
** Before IFRS 5 et IFRS 16 for FY2019
RUBIS VERSUS SBF 120: CUMULATIVE TSR OVER 10 YEARS
14
154 151
186 180 188
245262
317300
321
10491
113
136 140153 161
175166
195
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Rubis SBF 120
A 65% outperformance compared to the SBF 120
RUBIS SHAREHOLDERS STRUCTURE
RUBIS IS A LISTED “PARTNERSHIP”
Partners bear unlimited liability exposure on the company debt
Partners compensation is directly linked to total shareholder return
Management stability secures long term strategic view
Free float ≈ 90 %
Founded: 1990
IPO: 1995
Market Capitalisation ± €4bn
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