Vivo Energy plc Company Presentation May 2019
Legal disclaimer IMPORTANT: Please read the following before continuing. No offer or solicitation This presentation is provided for informational purposes only and is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities of Vivo Energy plc (the “Company”) or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Neither the contents of the Company’s website, nor the contents of any other website accessible from hyperlinks on such websites, is incorporated herein or forms part of this presentation. Forward-looking statements This presentation includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the Directors’ current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as: “believe”, “expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned”, “anticipates” or “targets” or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other things, the future results of operations, financial condition, prospects, growth, strategies of the Group and the industry in which it operates. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements. Such forward-looking statements contained in this report speak only as of the date of this report. The Company and the Directors expressly disclaim any obligation or undertaking to update these forward-looking statements contained in the document to reflect any change in their expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. 1
Introduction to Vivo Energy 2
Introduction Number of Retail Sites Established in December 2011, we are a leading Pan-African fuel retailer, operating under the Shell 2,130 and Engen brands, in high growth markets We source, distribute, market and supply high 230 68% quality fuels and lubricants to retail and commercial customers in 23 countries Operate under the Shell-brand in 15 countries and from March 2019, began to operate under Engen- 1,269 brand in 8 new markets Strong growth track record – retail portfolio 1,900 grown by over 65% since 2012 One of Africa’s largest retailers with over 800,000 1,269 customers served daily in 2018 Experienced management team, with a proven track record of delivery Strong performance-driven culture 2012 Current 1 3 (1) As at December 2018, pro-forma for Engen sites. Engen number of retails sites based on Engen management information reporting
Vivo Energy today A leading pan-African business 23 countries MOROCCO TUNISIA SENEGAL RWANDA CAPE VERDE UGANDA Access to over 450 million consumers TANZANIA MALI KENYA GUINEA MALAWI 2,130 1 retail sites BURKINA FASO MOZAMBIQUE CÔ TE D’IVOIRE MADAGASCAR GHANA REUNION +10 billion litres of fuel GABON volumes in 2018 2 MAURITIUS ZAMBIA ZIMBABWE NAMIBIA BOTSWANA +1 billion litres of storage 3 Shell brand Engen brand Source UN Population Prospects 2018 Note: Information as of December 2018 (1) Engen number of retails sites based on Engen management information reporting (2) Pro-forma to include Engen management information reported volumes in 2018 4 (3) Represents fuel storage capacity and includes equity share of storage capacity in joint ventures. It excludes bitumen and LPG. Includes Engen storage based on management information
We operate an integrated business across three core segments 57% 13% 30% Retail Lubricants Commercial Second largest retailer in Africa Integrated manufacturing, Integrated offering to 5,000+ outside South Africa, in terms of distribution and marketing customers across long term site numbers operations contracts, tenders and spot sales Retail fuels Retail Lubricants Core Commercial Sale of petrol and diesel fuels at Providing products to Supplying mining, construction, 2,130 1 Shell and Engen-branded consumers at retail sites, as well transport, power and industrial service stations in 23 countries as through a network of companies. We also supply LPG, across Africa distributors primarily to consumers Non-fuel retail Commercial Lubricants Aviation and Marine Multi-branded Convenience Supplying specialist lubricants to Supplying aviation fuel, plus Retail and Quick Service mining companies, B2B bunkering for marine traders Restaurant offering customers and export sales and other shipping companies Source: Company information. (1) As at December 2018, pro-forma for Engen sites. Engen number of retails sites based on Engen management information reporting 2018 Adj. EBITDA split 5
Our integrated model provides a sustained competitive advantage Vivo Energy ownership / operational control Retail customers: Terminals / storage: c.5.8.bn litres (3) +1 billion litres of capacity across Retail sites: 20 countries (1) 2,130 sites (2) Fuel supply (domestic refineries & tenders, Vivo Energy +150,000 km driven daily own imports) to deliver our products Commercial customers: c.4.4bn litres (3) Access to 6 lubricants blending plants (4) (1) Represents fuel storage capacity only and includes equity share of storage capacity in joint ventures, excluding bitumen and LPG. JV storage is included on a pro rata basis based on ownership %, pro-forma for Engen markets (2) As at December 2018, pro-forma for Engen sites. Engen number of retails sites based on Engen management information reporting (3) Fuel and lubricants sales in 2018 pro-forma for Engen markets 6 (4) Via 50% SVL joint venture. Vivo Energy either owns or has operational control of 5 of the 6 plants
Our key strategic objectives 1 Remain a responsible and respected business in our communities 2 Preserve lean and agile organisation and performance-driven culture 3 Maximise the value of our existing business 4 Pursue value-accretive growth 5 Maintain attractive returns through disciplined financial management 7
Favourable African macro trends underpin our growth STRONG POPULATION STRONG GDP GROWTH GROWTH IN VIVO ENERGY COUNTRIES 1.2 billion more people by 2050 (1) 5.1% CAGR 2018 – 2023 57% of global population growth INCREASING CONSUMER YOUNG POPULATION SPENDING Median age of 19 vs. 30 and 38 in Asia 4% household consumption CAGR and USA, respectively (2) 2015 – 2025 RAPID URBANISATION RAPID VEHICLE GROWTH Urban population to grow from 40% to 7% CAGR 2016 – 2021 (3) 56% from 2015 – 2050 66 vehicles per 1,000 people vs. 560 in Europe (3) STRONG INFRASTRUCTURE GROWING MIDDLE CLASS DEVELOPMENT 376 million to 582 million people from $150bn of annual infrastructure 2013 – 2030 spending required by 2025 Source: BMI, UN World Population Prospects 2017, UN World Urbanization Prospects 2014 , McKinsey Global Institute: “Lions on the move II: realizing the potential of Africa’s economies”, Deloitte: “The Deloitte Consumer Review Africa: A 21 st century view ” (1) As compared to 2015 population 8 8 (2) As of December 2015 (3) Includes motorbikes
In markets with resilient and growing fuel demand FUEL DEMAND HAS KEPT GROWING DESPITE A FLUCTUATING OIL PRICE (Indexed demand (1) ) ($/bbl) 200 140 + 83% 180 120 160 100 140 80 120 60 100 40 80 20 60 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Demand in Vivo Energy countries (left hand side axis) Demand in Europe and US (left hand side axis) Brent (right hand side axis) AFRICAN FUEL DEMAND CHARACTERISTICS Few public transport alternatives Staple product Car parc growth, lower vehicle efficiency and expanding Roads are the primary transport route road network Source: BMI, CITAC, FactSet (1) Demand indexed to 100 9
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