TOGETHER WE AREVIVO ENERGY PLC STRONGER ANNUAL REPORT & ACCOUNTS 2020 TOGETHER THROUGH ADVERSITY These are exceptional times, and this has been an extraordinary year. As soon as the pandemic became apparent, our markets in Africa took swift action to restrict mobility in order to help prevent the spread of COVID-19. This effective closure of parts of the economy led to a dramatic reduction in travel which tested the resilience of our business. Its underlying strength has enabled Africa to deal with threats in the past and to bounce back, energised by a youthful population and a growing middle class. As a young, energetic company with a growing network, we have pulled together during this crisis. We played our part, not just as a business, but with our partners and as a pillar of our local communities. The future of Vivo Energy is inseparable from the bright future of our continent. Whatever the immediate future brings, we look forward with confidence. The Board and I are proud of how our teams across the Group quickly responded to the impact of COVID-19 – keeping the business running, supporting each other and our stakeholders, and demonstrating true resilience.” JOHN DALY CHAIRMAN VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 2020 HIGHLIGHTS – Played our part by prioritising the safety REVENUES VOLUME GROSS CASH PROFIT of our people, our customers and our US$ million Million litres US$ million communities throughout the pandemic. – Took swift action at the start of the pandemic, maintaining the resilience of our business and the strength of our balance sheet. 6,918 9,637 697 – Raised $350 million in new long-term debt through completion of our inaugural -17% -7% -6% bond transaction. – Delivered an industry-leading safety record ADJUSTED EBITDA NET INCOME RECOMMENDED DPS during the year. US$ million US$ million Cents per share – Achieved a fast pace of recovery as mobility restrictions were eased, with H2 performance broadly in line with H2 2019. – Further integrated sustainability 360 90 3.8 into our long-term thinking. -16% -40% 0% – Continued to deliver against our strategy, Final dividend in respect of full despite the pandemic – expanding our 12 months of 2020 and in line with network, growing Non-fuel retail and FY proposed dividend for 2019. embracing digital. COMMUNITY SERVICE STATIONS HSSEQ – INVESTMENT SPEND ADDED TOTAL RECORDABLE US$ million Net total CASE FREQUENCY Per million exposure hours 4 104 0.10 Non-GAAP measures are explained and reconciled on pages 40 to 41. CONTENTS STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 2020 highlights 01 Chairman’s statement 72 Independent Auditors’ Report 118 Together we are stronger 02 Board Leadership and Company Purpose 74 Consolidated statement of comprehensive income 128 Who we are 08 Board of Directors 78 Consolidated statement of financial position 129 Where we operate 10 Senior Executive Team 80 Consolidated statement of changes in equity 130 Chief Executive Officer’s statement 12 Division of Responsibilities 82 Consolidated statement of cash flows 131 Investment case 16 Composition, Succession and Evaluation 86 Notes to the consolidated financial statements 132 Business model and value creation 18 Nominations and Governance Committee Report 87 Company statement of financial position 172 Market overview 20 Audit and Risk Committee Report 90 Company statement of changes in equity 173 Strategic objectives 22 Directors’ Remuneration Report 94 Notes to the Company financial statements 174 Key performance indicators 24 Directors’ Report 113 Segment review – Retail 26 Statement of Directors’ responsibilities 116 OTHER INFORMATION Segment review – Commercial 28 Shareholder information 184 Segment review – Lubricants 30 Historical financial information 186 Financial review 32 Glossary 188 Resources and relationships 42 Key contacts and advisers 190 Non-financial information statement 59 Cautionary statement 191 Risk management 60 Long-term viability and going concern 70 VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 01 STRATEGIC REPORT TOGETHER WE ARE STRONGER TOGETHER WE ARE RESILIENT WE ARE LIVING IN UNPRECEDENTED TIMES. BUT TOGETHER WE ARE RESILIENT AND I KNOW THAT BY CONTINUING TO STAY CALM, RESOURCEFUL AND FOCUSED ON SUPPORTING EACH OTHER WE WILL OVERCOME THIS TOGETHER.” CHRISTIAN CHAMMAS CHIEF EXECUTIVE OFFICER 02 VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION SUPPORTING OUR PARTNERS From the earliest days of the pandemic, we rapidly took action to protect our people and our partners. Thanks to the fast response and dedication of our innovative and quick‑thinking teams we were able to keep our business running and to support our customers throughout the lockdowns. Protecting the health and safety of our people and customers remained our number one priority – adapting our service stations, depots and facilities to make them safe and secure. We implemented a range of projects to help our local communities – including supporting many of our host governments’ COVID‑19 funds, providing free fuel for healthcare workers, blending hand sanitisers at our lubricant blending plants, supporting e‑learning applications for children whose schools had closed, and providing supplies to those most in need through local NGOs. And we protected jobs – working closely with our dealer network and our transport partners to protect the jobs of the front line staff employed by them while volumes were low. Throughout the pandemic, we supported and protected our stakeholders – playing our part, and demonstrating that together we are resilient. COMMUNITY INVESTMENT $4M 130+ donated to community Community investment projects investment and host governments’ projects COVID-19 funds VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 03 0 STRATEGIC REPORT TOGETHER WE ARE STRONGER CONTINUED TOGETHER WE ARE MORE SUSTAINABLE New electric vehicle charging point in Reunion 60,000tonnes of CO savings 2 over 10 years MWP 3.9solar photovoltaic power plant 04 VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 0 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION ENSURING LONG-TERM SUSTAINABILITY Our vision is to become the most respected energy business in Africa and, since our inception in 2011, we have embedded sustainability practices into our business. We aim to be good stewards of the environment, while developing our people and supporting our communities. As part of the Group’s progress we have continued to evolve and enhance our sustainability practices to ensure we can achieve our vision. We are now more formally embedding climate change into our governance and strategy. This will enable us to play our part in meeting environmental policy commitments, while at the same time satisfying the growing demand for fuel on the African continent in the years ahead. We are particularly proud of securing our first commercial solar contract, which will provide a hybrid solar/fuel energy solution to the Nampala gold mine, in Mali. The plans and actions we initiate today are shaping our future – ensuring that together we are more sustainable. THE NAMPALA PROJECT UNDERLINES OUR COMMITMENT TO DEVELOPING INNOVATIVE PRODUCTS, SERVICES AND PRACTICES THAT REDUCE IMPACT ON THE ENVIRONMENT.” ERIC GOSSE EXECUTIVE VICE-PRESIDENT BUSINESS DEVELOPMENT, SUPPORT AND INDIAN OCEAN ISLANDS VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 05 STRATEGIC REPORT TOGETHER WE ARE STRONGER CONTINUED TOGETHER AFRICA WILL EMERGE STRONGER 5.1%expected average 23African countries annual GDP growth with a Retail footprint in our markets from 2021 to 2025 06 VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION A RESILIENT BUSINESS ON A VIBRANT CONTINENT Although 2020 was an unprecedented year, the macro drivers behind continued growth in fuel demand in our markets remained unchanged. We expect this to continue as Africa emerges from the impacts of the pandemic. We’re a highly resilient business, integral to the lives of our millions of customers who rely on our products to move around the continent. And we operate in a highly resilient continent, with an exceptionally young and growing population, with more vehicles on the road every year. We are excited about future opportunities ahead of us and will continue to adapt in order to capitalise on them. The long-term growth opportunities across the continent remain undimmed, and together Africa will emerge stronger. 60%of Africa’s population are younger than 25 years old THE MACRO DRIVERS FOR INCREASING FUEL DEMAND – AND VIVO ENERGY’S GROWTH – REMAIN STRONG.” JOHAN DEPRAETERE CHIEF FINANCIAL OFFICER VIVO ENERGY PLC | ANNUAL REPORT & ACCOUNTS 2020 07 STRATEGIC REPORT WHO WE ARE RETAIL Retail is the engine that powers our growth. At the A COMPANY end of 2020, our network comprised 2,330 service stations across the continent – making us the second largest retailer in Africa outside South Africa, in terms of site numbers. ON THE MOVE RETAIL FUEL NON-FUEL RETAIL We’re a market-leading, pan-African retailer Sale of petrol and diesel fuels at Multi-branded convenience retail Shell and Engen-branded service shops, quick service and fast casual and distributor of high-quality Shell and stations, across 23 countries. restaurants, and other services Engen-branded fuels and lubricants to including lubricant bays, car washes Retail and Commercial customers across and ATMs. the continent, with a growing