Vivo Energy plc Q1 Trading Update Presentation 30 April 2020 - PowerPoint PPT Presentation

Vivo Energy plc Q1 Trading Update Presentation 30 April 2020

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

Q1 Highlights KEY PERFORMANCE INDICATORS 1  Q1 Gross cash profit of $179 million, up 6% year- Three months ended 30 March on-year 2020 2019 Change Volumes 2,602 2,441 +7%  January and February saw +20% gross cash profit (million litres) growth 1 Gross Cash Unit Margin 69 69 - ($/’000 litres)  Volumes in last two weeks of March affected by Gross Cash Profit 179 169 +6% COVID-19 related measures ($ million)  Margins impacted in March primarily due to the impact of the reduction in demand and valuation of stocks (1) Includes benefit of 2 additional months of Engen contribution compared to 2019 2

COVID-19 Related Restrictions on Movement 1 Countrywide Lockdown Curfew / Partial Lockdown Social Distancing 3 REUNION BURKINA FASO MOZAMBIQUE 17 Mar – 11 May Curfew since 21 Mar State of emergency since 19 Mar MAURITIUS SENEGAL TANZANIA 18 Mar – 4 May Curfew since 23 Mar Schools closed 23 Mar MOROCCO CÔTE D’IVOIRE ZAMBIA 20 Mar – 20 May Curfew since 23 Mar Schools closed 25 Mar RWANDA MADAGASCAR GHANA 21 Mar – 30 Apr Curfew since 23 Mar Urban restrictions removed 20 Apr TUNISIA NAMIBIA 23 Mar – 4 May Partial lockdown since 24 Mar CAPE VERDE KENYA 27 Mar – 2 May Partial lockdown since 25 Mar ZIMBABWE MALI 27 Mar – 1 May Curfew since 26 Mar UGANDA GUINEA 31 Mar – 5 May Curfew since 1 Apr BOTSWANA GABON 2 Apr – 7 May Partial lockdown since 13 Apr MALAWI Partial lockdown since 18 Apr 2 Overall volume running at around half of expected levels, and will fluctuate dependent on restrictions in place (1) Subject to change and potential extensions (2) Full lockdown imposed on 18 April, but was delayed subject to a court process (3) Measures within each country vary and include closure of schools, borders, limitations on movement and large gatherings 3

What we are doing to respond Some examples of great innovative thinking PROTECTING OUR PEOPLE AND CUSTOMERS SUPPORTING OUR COMMUNITIES Kenya Produced & gifted thousands of  Travel ban imposed from January bottles of sanitiser for the Government of Kenya  Range of preventive and protective health and Morocco Funding production of 400 respirators safety measures implemented & providing free fuel for healthcare workers Zambia  Supporting dealer network to protect local jobs Donation of 60 boxes of sanitiser, and 2,000 litres of fuel to the Zambia National Public Health Institute  Rolling out new initiatives for customers Uganda Donated 5,000 litres to emergency medical care services Tunisia Partnering with a local organisation to offer innovation camp programmes online for students 4

Mitigating Actions PROTECTING OUR BUSINESS Our business model drives a lean cost base  Total headcount of ~2,700 people across 23 countries  Reducing discretionary spend around marketing and uncommitted capex   Reducing supply of fuels to balance lower demand  Closely monitoring credit exposures  Prudent decision to withdraw recommendation of the payment of the 2019 final dividend Will consider an additional dividend payment once more certainty in our markets  5

Liquidity  Strong balance sheet and access to liquidity  $1.6 billion of available liquidity as at the end of March Undrawn committed multi-currency revolving credit facility of $238 million  Total of $1.0 billion undrawn unsecured short-term bank facilities within our 23 operating entities  Cash balances of $353 million (spread between the HoldCo and the OpCos)   Average utilisation rates of short term facilities approximately 30% at the end of March  Long-term debt principal repayments of $82 million due in 2020 – covered by cash on hand in HoldCo 6

Context - COVID-19 in Africa 7

Reported COVID-19 Cases in Operating Units >1,000 cases 500-1,000 cases 1-500 cases (1) Source: John Hopkins University – 29 April 8

Governmental Responses – Major Operating Units 1 Fiscal Response Monetary Response Morocco Creation of a special fund dedicated to the management of The central bank reduced the policy rate by 25 bps to 2.0 the pandemic of ~2.7 percent of GDP. Supporting employees percent. Loan payments are suspended for small and medium- who become unemployed. All businesses can defer social sized businesses and self-employed people until June 30. contribution payments until June 30 and payments to Government suppliers will be accelerated. Tunisia A 2.5 billion TND emergency plan ($0.71 billion or 1.8 The BCT has reduced its policy rate in March by 100 bps and percent of GDP) announced included the postponement of announced a package to support the private sector, by asking CIT payments, other taxes and social contributions, VAT banks to defer payments on existing loans and suspend any fees exemptions, and others in order to provide liquidity to the for electronic payments and withdrawals. private sector, limiting layoffs and protecting the most vulnerable population. Kenya The government has earmarked Ksh40 billion (0.4 percent of On March 24, the central bank lowered its policy rate by 100 GDP) in funds for additional health expenditure, social bps to 7.25 percent. The central bank has also encouraged protection and cash transfers; food relief; and funds for banks to extend flexibility to borrowers’ loan terms based on expediting payments of existing obligations to maintain cash pandemic-related circumstances flow for businesses during the crisis. A package of tax measures has been proposed including tax relief and lower VAT. Cote The government announced a package of economic measures The regional central bank (BCEAO) for the West-African D’Ivoire for the most vulnerable segments of the population through Economic and Monetary Union (WAEMU) announced measures agricultural input support and expanded cash transfers, to pre-qualify1,700 private companies for refinancing and a provide relief to hard-hit sectors and firms, and support framework inviting banks to accommodate demands from firms public entities in the transport and port sectors to ensure with Covid19-related repayment difficulties continuity in supply chains. (1) Source: IMF – Policy Tracker 9