RUBIS: Q1 2023 Trading update

Paris, 4 May 2023, 17:45 CET

Q1 2023 TRADING UPDATE

• Group revenue up 18% in the context of decreasing oil price.
• Energy Distribution:
  • strong gross margin development (+29% yoy, +10% LFL[1]) in Retail & Marketing demonstrating the agility of the business model;
  • stable volume in Retail & Marketing after a record Q1 2022.
• Renewable Electricity Production: Further development of the assets in operation (+3% vs
  end-22) and pipeline (+6% vs end-22).

Q1 2023 Highlights

• Energy Distribution[2]:
  • Retail & Marketing:
    • revamp of the retail network and portfolio optimisation in Kenya bearing fruit (+19% retail volume in Kenya),
    • early-stage bitumen operations in South Africa delivering rapid growth, launch of Gabon and Liberia operations (2021) are also promising;
  • Support & Services:
    • improved shipping margin underpinned by better efficiency of the fleet supported by recent investment in vessels (delivery of a new bitumen vessel) and sound trading volume in the Caribbean region and in Africa,
    • acquisition of a new LPG vessel (previously time chartered) in the Caribbean.
• Renewable Electricity Production[3]:
  • Secured portfolio up 8% vs Dec-2022 at 542 MWp;
  • Pipeline up 6% vs Dec-2022 at 3.7 GWp.

Q1 2023 Group sales came in at €1,740m representing a +18% increase yoy, in the context of oil prices down 3% (-7% in €)[4]. This performance was supported by the agility of each of the affiliates, reactively adjusting margins in the context of slower volume growth.

Sales breakdown by segment and region is presented in the table below.

The Energy Distribution business line encompasses two activities: Retail & Marketing and Support & Services.

Retail & Marketing

The first quarter of 2023 has seen stable volume, after a strong Q1 2022. When excluding exceptional items and FX effects[5], margins grew at a dynamic pace (+10%), and still in positive territory (+2%) when taking into account FX potential risk in Kenya. Despite the soft growth in volume, affiliates managed to navigate the supply price volatility and seize relevant opportunities to grow margins.

VOLUME SOLD AND GROSS MARGIN BY PRODUCT IN Q1

LPG was overall slightly increasing (+1%) in Q1 2023 vs Q1 2022. Rising volume in the bulk business and autogas was partially offset by a decrease in the packed products.

On the fuel side:

• retail (service stations, representing 59% of fuel margin) volume overall continued to grow at a steady pace (+2% yoy) and gross margins increased faster (+26% excl. exceptional elements), driven by:
  • Kenya: the service stations revamping programme is bearing fruit and continues to add more sites (estimated achievement of the programme ~90%), generating a 19% growth in retail volume,
  • Caribbean region: volume grew by 4% yoy excluding Haiti, and gross margins by 23%,
  • Haiti: volume and margins in service stations decreased significantly yoy (-41% and -40% respectively), representing, however, a marginal share of overall performance (4% of the segment's overall gross margin contribution);

• as regards Commercial & Industrial customers (C&I) representing 22% of fuel margin, volume decreased (-11%) but gross margins remained stable underpinned by:
  • Kenya, where C&I volume decreased by 27% due to the floods caused by the rainy season, making the access to off-grid areas difficult,
  • Eastern Africa (outside Kenya) showed strong growth (all of them above +25% in volume), illustrating their dynamism and the strong potential of the region,
  • Haiti, where volume decreased by 50% due to the rationing of sales and the overall safety situation;
• growth was particularly strong (+27%) in the aviation segment (representing 13% of fuel margin), mainly in Kenya and in the Caribbean, driven by the resumption of aviation activities in Kenya, combined with the tourism season. Gross margins grew at a high pace (+12%), following the same trend as volume.

The bitumen volume was down 11% yoy. Nigeria saw a significant decrease in volume, on the back of a strong Q1 2022, and a slow take up after the elections. Start of activity in South Africa was very dynamic, volume was multiplied by 7, reaching a level close to Senegal or Togo after only one year of activity. Gabon and Liberia also delivered promising growth.

The table below provides volume and gross margin split by region for Q1.

VOLUME SOLD AND GROSS MARGIN BY REGION IN Q1