TERPEL Results Q3/18 November 2018

Transcription

1 TERPEL Results Q3/18 November 2018

2 HIGHLIGHTS CONSOLIDATED RESULTS Q3/18 The accrued volume grew by 9.5% as compared with the same quarter of last year, jumping from 1,835 to 2,008 million gallons*. Q3/18 grew 12.3% with regard to the same quarter of last year, going from 628 to 705 million gallons. The consolidated YTD EBITDA** was COP$588 Billion, for a 9.5% growth rate. TERPEL CONTINUES TO STRENGTHEN ITS SERVICE STATION NETWORK IN COLOMBIA Terpel's own Service Station (SS) Network reached a historic maximum sales record of 37 MM gallons in August, with 236 SS. GAZEL IS PREPARED TO IMPLEMENT SICOM SICOM (Spanish abbreviation for Fuel Information System) entered into operation in October in all NGV SSs. This will allow us to adequately control and reduce illegal operations, and ensure that vehicles are up to date in their maintenance, thus improving safety at the time of filling up. IMAGE CHANGES CONTINUE IN ALL REGIONS In Peru, beginning in September, we began to change the image of the Service Stations, by implementing Terpel's new image, establishing a sound and unified network in all regions where Terpel is present. By the end of the year, we expect to have 5 SS with the new image. ACQUISITION PROCESS OF EXXONMOBIL IN COLOMBIA On July 3, Terpel acquired Exxon Mobil's lube assets in Colombia for COP$303.4 Billion and according to the conditions imposed by SIC (Colombian Superintendency of Industry and Trade), Terpel sold part of its lube assets (Bucaramanga plant and the Maxter and Maxter Progresa brands, together with the corresponding industrial agreements) to Exxon Mobil for COP$44.2 Billion. MOBIL LUBE PRODUCTION BEGAN IN THE CARTAGENA FACTORY Beginning in August, the Cartagena factory began production of Mobil and Terpel lubricants. *Excluding Mexico, the accruedvolume has grown by 10.36% as compared with the Q3/17 base figure. **Including the sales from the acquisition of the ExxonMobil operation: Ecuador and Peru since Q2, and Colombia since Q3. 2

3 HIGHLIGHTS After acquiring ExxonMobil's business on March 15, 2018, in Colombia, Peru and Ecuador, currently Terpel has the control of the operations. By the closing of September 2018, such operations have generated an EBITDA of USD$15MM. Ecuador Lubricants: 7% market share Fuels: 41 EDS (6% market share) Negocios adquiridos Colombia (beginning on July 3) Lubricants: 33% market share Fuels: 745 SS and 12 terminals (16% outlet share) Perú Lubricants: 30% market share. Fuels: distribution in Lima Airport. Fuels in Colombia: this business was sold to a provisional buyer (an independent trust). This independent trust is responsible for selling the asset to a third party. Source: Terpel and SICOM Acquisition price USD$ 714.7MM Funding: bridge loan from local banks Cash flow of acquired companies ~USD$ 230 MM in several jurisdictions Businesses to be retained Colombia: Lubricants Perú: Lubricants Aviation Fuels Ecuador: Lubricants, SS Fuels LUBE ASSET SWAP: Price of Mobil Assets: $303.4 Billion COP Price of Terpel Assets: $44.2 Billion COP 3

4 1 EXTENSIVE REGIONAL COVERAGE (*) Source: Terpel. Figures at Sep/18; Colombia Aug/18; Peru: Lima Market Share (**) 1917 Liquid fuel SS (236 own) and 257 NGV SS, of which 182 SS carry both NGV and liquid fuels (***) Including 41 ExxonMobil SS (***) 38 NGV SS, 16 liquid fuel SS and 18 LGP SS No. SS at Sep 17: Colombia-> 2010, Panama-> 131, Ecuador-> 59, Mexico-> 8, Peru-> 37 No. of Stores at Sep 17: Colombia-> 37, Panama-> 29, Ecuador-> 5, Peru-> 8 4

5 2 CONSOLIDATED RESULTS El Dorado SS (Bogotá, Colombia) Aviation operation in Dominican Republic Alto Store Javier Prado / Gohan Station Lurigancho (Lima) Guayacanes SS, Ecuador Pan American Travel Center SS in Panama 5

6 2 CONSOLIDATED RESULTS SALES VOLUME (Million Gallons) SALES VOLUME PER COUNTRY 1.834,49 72,37 0,47 106,15 13,48 15,09 4,02 +4,98% +0,26% +93,61% +49,59% -100% -9,11% Var: +9,45% 2.007,84 sep-17 Colombia Panamá Ecuador Perú México Rep. Dom sep-18 EBITDA (COP$ Billions) NOTE: Colombia's results include 4.3MM gallons of Mobil Lubricants (Q3) EBITDA GENERATION PER COUNTRY 28,89 10,26 537,41 35,14 3,25 4,20 3,59 $ 588,53 +7,88% -6,31% +64,37% +996,41% -100% -17,74% Var: +9,51% sep-17 Colombia Panamá Ecuador Perú México Rep. Dom sep-18 NOTE: Colombia's results include COP$9.1Billion of Mobil Lubricants (Q3). 6

7 3 OPERATIONS ACQUIRED FROM EXXONMOBIL IN ECUADOR AND PERU (Jul-Sept) Sales Volume Peru MM Gallons EBITDA Peru COP Billion Net Profit Peru COP Billion 21 68% Acquired Operations 10 32% Acquired Operations 30,61 97% Acquired Operations 24,39 114% (3,03) -14% 2T - 3T Sales Volume Ecuador MM Gallons Peru 0,83 3% EBITDA Ecuador COP Billion Net Profit Ecuador COP Billion 82 45% Acquired Operations 99 55% 5,13 59% Acquired Operations 3,58 41% 0,88 30% Acquired Operations 2,08 70% Sales Volume Colombia MM Gallons EBITDA Colombia COP Billion 3T % 158,11 95% Acquired Operations 4 1% Acquired Operations 9,15 5% %: Share Percentage 7

8 3 OPERATIONS ACQUIRED FROM EXXONMOBIL IN COLOMBIA (Q3) EXM Colombia Volume Share% EXM Colombia Gross Profit Share % Terpel Lubricants; 51% Mobil Lubricants; 49% Mobil Lubricants; 68% Terpel Lubricants; 32% Sales Volume Colombia MM Gallons EBITDA Colombia COP Billion % 158,11 95% Acquired Operations 4 1% Acquired Operations 9,15 5% %: Share Percentage 10

9 4 COLOMBIA Ziclos Highway SS (Cali, Colombia) Deuna La América SS (Medellín, Colombia) Altoque Store - Weighbridge SS (Bogotá, Colombia) Motorcycle Island, Acuarela SS (Pereira, Colombia) 11

10 4 COLOMBIA: OPERATIONAL RESULTS ACCRUED VOLUME COMPOSITION ACCRUED GROSS PROFIT COMPOSITION ** Aviation 17,60% +1,21% Industry 8,73% +9,11% Marine 0,31% -42,43% Fuel SS 68,53% +6,35% NGV SS 9,45% 23% Non-Oil Lubes 1,08% 7,60% 39% 23% Industry 4,41% 5% Aviation 10,45% 5% Lubricants 0,89% +86,92% NGV SS 3,95% -10,74% Fuel SS 54,89% 7% Others 11,94% Marine 0,18% 6% VOLUME = 1, Million Gallons (+4.98% vs Sep.17) GROSS PROFIT = COP$ Billion (+7.21% vs Sep.17) *Mobil Lubricants Q3/18: Volume: 4.3 MM gallons, *Mobil Lubricants Q3/18: Gross profit: $23.4 Billion COP +%: Accrued growth %: Gross Margin %: Share in Total 12

11 4 COLOMBIA: OPERATIONAL RESULTS $ 350 $ 300 $ 250 $ 200 $ 150 $ 100 $ 50 $ - EBITDA (COP$ BILLIONS) EBITDA $COP Billions $ 307 $ 315 $ 446 $ 481 Sep-17 NET PROFIT (COP$ BILLIONS) $ 26 $ 21 $ 9 172,1 $ 176,7 Sep-18 EBITDA/Gal $ 27 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $ - $ 99 The EBITDA grew 7.9% with regard to Q3/17. The inventory upward adjustment (*) contributed COP $18 Billion to the growth experienced with regards to last year. This, together with the growth in volume and the annual increase in the wholesalers' liquids margin, managed to offset the NGV's lower contribution. The production and sale of Mobil lubes in Colombia began during Q3/18. This business contributed COP $9.1 Billion to the company's EBITDA. The net profit was impacted by the expenses incurred to acquire Exxon Mobil's operations. Without the acquisition effect, the profit would have grown by 2.7%, due mainly to the good performance of the business in Colombia. 113,8 Sep-17 EBITDA growth Others growth Business Profit Lubes Col. Mobil EBITDA Ecuador & Perú Profit Acquisition net expenses Sep-18 (*) inventory upward adjustment: YTD: COP$56.7 Billion YTD 2017: COP$38.7 Billion Q3: COP$15.7 Billion Q2: COP $37.9 Billion 13

12 5 PANAMÁ Panamericana SS - Travel Center, Panama Wash n Go Panama Pacífico Quick Shop Panama Services in the SS in Panama Va&Ven, Inter-American Road, F South Avenue, Panama 14

13 5 PANAMA: OPERATIONAL RESULTS ACCRUED VOLUME COMPOSITION ACCRUED GROSS PROFIT COMPOSITION Marine 2,73% +6,76% Lubricants 0,21% +14,21% Non-Oil 12,91% 36% Industry 18,21% +0,78% Fuel SS 78,86% -0,11% Fuel SS 72,66% 13% Lubricants 2,35% 36% Industry 6,11% 5% Others 4,34% Marine 1,63% 9% VOLUME = Million Gallons (+0.26% vs. Sep.17) GROSS PROFIT = COP$ Billion (+5.23% vs. Sep.17) +%: Accrued Growth %: Gross Margin %: Share in Total 15

14 5 PANAMA: OPERATIONAL RESULTS EBITDA (COP$ BILLIONS) $ 300 $ 250 $ 200 EBITDA COP$ Billions $ 282 $ 263 EBITDA COP$/Gal $ 60 $ 50 $ 40 The EBITDA shrank by 6.3% due mainly to higher operational expenses incurred to open new points of sale (SS and convenience stores), which will offset the corresponding income once the operation is stabilized. $ 150 $ 100 $ 50 $ - $ 52 $ 48 sep-17 sep-18 $ 30 $ 20 $ 10 $ - The accrued inventory upward adjustment for Q3/18 reached COP$5.6 Billion, offsetting the increased expenses of the new operations. NET PROFIT (COP$ BILLIONS) $16 $ 1 $ 3 $ 3 $9 The Net Profit shrank by 42%, mainly due to the lower EBITDA, greater depreciation arising from the growth of the SS and store network, and increased financial expenses arising from a higher Libor rate. Sep-17 Financial Expenses EBITDA growth Depreciation growth Sep-18 *inventory upward adjustment: YTD: COP $5.6 Billion 2017 YTD: COP $2 Billion Q3: COP $0.113 Billion Q2: COP $3.9 Billion 16

15 6 NET WORTH SITUATION The closing price of the share in September 2018 was COP$9,400 17

16 6 CONSOLIDATED BALANCE SHEET ASSETS Deferred & Intangibles 21% Others 1% BALANCE SHEET (COP$ BILLIONS) Current Assets 48% Assets Equity Minority Interest Liabilities PP&E 30% Permanent Investments 0% $ LIABILITIES $ $ 0,11 $ Bonds issued 43% Long Term Debt 4% Others 5% Assets Laiabilities & Equity Short Term Debt 21% Current Liabilities 27% 18

17 6 CONSOLIDATED FINANCIAL DEBT GROSS DEBT* (COP$ BILLIONS) $ 241 $ 30 $ 0 $ $ Colombia Panama Peru Ecuador Consolidated Debt RATE COMPOSITION TERM COMPOSITION LIBOR 7% FIXED 12% ST 7% IPC 57% IBR 24% LT 93% 19

18 CONSOLIDATED DEBT PROFILE DEBT MATURITY PROFILE (COP$ BILLIONS) Colombia Panama Peru Ecuador $ 11 $ 83 $ 849 $ 1 $ $ 12 $ 0 $ 241 $ 5 $ 138 $ 151 $ 529 $ 194 $ 249 $ 97 $ 304 $ 321 DEBT / EBITDA=4,45x EBITDA / INTEREST=4,4x Debt mean life: 8 years *Increase of debt's mean life after the latest bond issue: 5 years. 20

19 6 CONSOLIDATED CAPEX % CAPEX PER COUNTRY CAPEX PER BUSINESS 2,40% 7,06% 2,33% 5,57% Service Stations 68,45% 2,40% 4,78% 0,45% NGV Conversions Non oil Industry 75,01% Lubricants Storage Plants 15,61% Aviation Corporative&IT 0,41% 1,02% 14,50% CAPEX COP$ 184 Billion *Peru includes US$8 Billion for acquisition of Bac Petrol S.A.C and Bac Thor S.A.C MAIN PROJECTS Expanding and strengthening the SS network. Investing in SS modernization and illumination, and development of supplementary services. Maintenance of plants and airport and expansion, and increasing the installed capacity. 21

20 CONTACTS Inversionistas/Estados-Financieros/ (1)