RUBIS RUBIS: Ongoing normalisation of the results - Growth drivers intact 09-Sep-2021 / 17:35 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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Paris, September 9, 2021, 5:35pm

ONGOING NORMALISATION OF THE RESULTS

GROWTH DRIVERS INTACT

Strong half-year results despite ongoing COVID restrictions:

-- H1 2021 volumes 2,650K m3, +7% vs H1 2020 and +2% vs H1 2019. Q2 2021 volumes 1,329K m3, +24% vs H1 2020,though 7% behind Q2 2019 at constant scope (-2% adjusted for aviation and at constant scope);

-- Stable unit margin[1] in the context of rising supply prices: +2% vs H1 2020 and -1% vs H1 2019 (atconstant scope);

-- H1 2021 EBIT EUR188m, +10% vs H1 2020, -12% vs H1 2019 given ongoing COVID restrictions;

-- Adjusted net income EUR132m, +33% vs H1 2020, -11% vs H1 2019 (excluding non-recurring items and excludingRubis Terminal)

-- Operational cash flow before changes in working capital[2] EUR238m, +21% vs H1 2020 and 8% above pre-COVIDH1 2019 (adjusted for Rubis Terminal).

-- Net debt EUR398m, 0.8x net debt/ EBITDA, vs EUR180m as of 31.12.2020 due to first tranche of the sharebuyback programme (EUR104m), EUR80m investment in HDF Energy, outflow from changes in working capital EUR178m givenincrease in oil price (inflow of EUR113m as of 31.12.2020)

-- ESG update: publication of CSR Roadmap 2022-2025; completing CDP climate questionnaire (with report dueend of 2021); adhesion to UN Global Compact.

Outlook

In the beginning of 2021, the Group anticipated an easing of restrictions linked to Covid in the second half of the year. While it is evident that the effects of the Covid will continue for the rest of the year, the good momentum of Rubis Énergie (Retail & Marketing and Support & Services) should nonetheless continue with growth of its in net operating result in 2021.

Paris, September 9, 2021 - Rubis today announces its 2021 half-year financial results.

The Group's condensed consolidated financial statements as of 30 June 2021 were reviewed by the Supervisory Board on 9 September 2021. The Group's Statutory Auditors have performed their review of these financial statements and their report on the half-yearly financial information was issued on the same date.

During the Supervisory Board meeting, the Management Board commented on the results: "The half-year report shows a good operational performance and results, particularly in the regions, which have seen an easing of restrictions due to Covid.

While a more rapid normalisation had initially been anticipated, the Group is confident that the current growth momentum will be maintained, with its medium and long-term growth drivers remaining intact thanks to its product and geographic diversification, the balance of its midstream/downstream activities and the strong development potential of East Africa, bitumen and LPG (transitional energy).

Supported by its strong financial position, the Group will continue to explore development opportunities, both through organic and external growth".

H1 2021 continued to be affected by Covid-19, the vaccination campaigns have not been harmonized on a global scale and the appearance of new variants have led to new restrictions with intensities different from country to country.

The period was marked by the sharp rise in oil prices (+ 40%), the deterioration of the situation in Haiti, which nevertheless opened up new prospects, the excellent performance of the bitumen business and the continuous improvement of indicators in Eastern Africa (volumes and profitability).

The Covid-19 effect measured in terms of loss of profit (EBITDA) compared to 2019 amounted to EUR18 million. This estimate was calculated by comparing the volumes achieved in the first half of 2021 with those of the first half of 2019, on a like-for-like scope, in the main segments affected by the pandemic.

In this context, 10% EBIT growth vs H1 2020 and decline limited to 12% vs H1 2019 (pre-Covid year) represent good performance. Net profit for the half year was down 2% on 2020, impacted by the increase (EUR7m) in the accounting charge (non-cash) for the benefits granted to the Group's employees in the form of share-based payments.

As a reminder, the net income for the first half of 2020 was impacted by significant non-recurring items[3]. Consequently, the comparison with 2019 results from continuing operations provides a more appropriate measure of performance, with a decline limited to 11% (excluding the contribution of Rubis Terminal and non-recurring items).

Operational cash flow before changes in working capital[4] reached EUR238 million (+21%) and exceeded the record level reached in 2019 (excluding Rubis Terminal at EUR220 million in H1 2019), confirming the quality of results.

CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2021 


(in millions of euro)                                                     2021  2020  2019  2021    2021 
                                                                                            vs 2020 vs 2019 
Revenue                                                                   2,051 2,051 2,583 0%      -21% 
EBITDA                                                                    257   240   271   7%      -5% 
EBIT, of which                                                            188   170   215   10%     -12% 
Retail & Marketing                                                        146   130   176   13%     -17% 
Support & Services                                                        61    52    51    18%     20% 
Net income, Group share, of which                                         136   139   157   -2%     -13% 
Net income from continuing operations,                                    136   39    143   250%    -5% 
Group share 
Net income from operations held for sale, 
                                                                          0     100   14    -100%   -100% 
Group share 
Net income, Group share, excluding non-recurring items and Rubis Terminal 132   99    148   33%     -11% 
Operational cash flow* excl. Rubis Terminal                               238   196   220   21%     8% 
Capital expenditure excl. Rubis Terminal                                  90    103   80

The Retail & Marketing division includes the distribution of fuels (gas station networks), liquefied gases, bitumen, commercial fuel oil, aviation, marine and lubricants in three geographic areas: Europe, the Caribbean and Africa.

Overall, volumes are +7% compared to H1 2020 and -6% vs H1 2019 on a like-for-like basis. The table below shows resistance of the LPG and service station network segments (70% of the division gross profit) to Covid, while aviation volumes remain particularly impacted. The bitumen sector reports a very strong growth momentum.

VOLUME DEVELOPMENT BY SEGMENT 


                 Breakdown H1 2021 by Volume change H1 2021 vs 
                 Gross profit Volumes H1 2020 H1 2019 
                                              (constant scope) 
LPG              43%          23%     2%      -4% 
Service stations 26%          36%     15%     -4% 
Bitumen          12%          10%     59%     58% 
Commercial       11%          22%     -3%     -3% 
Aviation         5%           7%      -12%    -58% 
Others           2%           2%      -23%    -45% 
TOTAL            100%         100%    7%      -6%

CHANGE IN VOLUMES SOLD BY REGION IN THE FIRST HALF OF 2021 


(in '000 m3)  2021  2020  2019  2021    2021 
                                vs 2020 vs 2019 (isoperimeter) 
Europe        439   402   465   9%      -6% 
Caribbean     983   966   1,138 2%      -14% 
Africa        1,228 1,111 1,006 11%     8% 
TOTAL         2,650 2,479 2,609 7%      -6%

Gross profit reached EUR324 million, up 9%, with a unit profit +2%, despite the sharp increase in the oil prices (+40%).

RETAIL & MARKETING GROSS PROFIT 


                                              2021 
              Gross profit           2021 
                           Breakdown          vs. 2019 
              (in EURm)                vs. 2020 
                                              (isoperimeter) 
Europe        102          32%       4%       +1% 
Caribbean     96           30%       -14%     -27% 
Africa        125          39%       43%      18% 
TOTAL         324          100%      9%       -6%

-- Europe, thanks to its strong LPG positioning, reported EBIT of EUR38m, up 8% vs H1 2020, almost back to thepre-Covid level in H1 2019 (EUR39m).

-- The Caribbean region, marked by the deteriorated situation in Haiti and the temporary decline in margins,recorded a 33% decline in EBIT to EUR33m (H1 2020: EUR49m, H1 2019: EUR68m), a level that nonetheless marked stabilitycompared to H2 2020.

-- Lastly, Africa reported an excellent performance with EBIT of EUR76m (+64% vs H1 2020 (EUR46m) and abovepre-Covid levels (H1 2019: EUR69m)), driven by (a) the robust development of the bitumen business in terms ofvolumes, with expansion in new markets, and in terms of profits, (b) improving volumes and profitability in Kenyathanks to the commercial investments and rebranding, as well as (c) strong rebound observed in the Indian Ocean(Madagascar and Reunion Island) penalised by the stock effects in 2020.

The Support & Services division posted a record result for the period with EBIT up 18% to EUR61m thanks to the good margins generated by the trading and shipping activities and the strong development of the bitumen sector (compared with EUR52m in H1 2020 and EUR51m in H1 2019).

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September 09, 2021 11:35 ET (15:35 GMT)