PERFORMANCE REVIEW 47 Business review ������������������������������������������������48 Operating responsibly ����������������������������������68 Our People & Culture�������������������������������������� 71 Health and safety �������������������������������������������� 76 Environment ������������������������������������������������������ 79 Communities ������������������������������������������������������ 81 Financial review ����������������������������������������������� 85 Risk management ������������������������������������������� 87 PUMA ENERGY ANNUAL REPORT 2020 BUSINESS REVIEW We aim to invest in, structure and operate our Operational highlights business in the most effective way to fulfil our Downstream Infrastructure We have a customer- core purpose of energising communities and • Enhancing our customer-led • Standing up our world-class led Downstream experience and offers for infrastructure assets as a business, an asset-rich our customer-led strategy to deliver growth retail customers standalone business unit Infrastructure business and create value for our stakeholders� • Segmenting our commercial • Continuing to deliver customers to create better, without fail for our and a renewables- more tailored solutions infrastructure customers focused Future Energies • Developing bespoke high- • Maintaining world-class business� Three distinct, To this end, we have three Downstream performance lubrication health and safety standards business units – Downstream, Excelling in providing high-quality, competitively priced energy solutions in the face of the pandemic yet, complementary, Infrastructure and Future solutions for people and businesses • Winning new aviation businesses that Energies – supported by Future Energies business and emerging together enable us Global Functions� This enables Retail Lubricants • Focusing on the energy 48 Putting retail customers Helping businesses and stronger from the pandemic us clearly to focus our energies transition across our high- to leap ahead in first to provide a great consumers save costs, and capabilities in distinct • Growing our bitumen potential markets all-round experience enhance efficiency and energising communities but complementary ways� business by delivering safely, • Implementing Phase 1 of all day, every day improve machinery life cycles and generating We excel for retail and efficiently and reliably for our plan – investing in solar by using the right lubricants commercial customers� Commercial our customers installations across a limited greater value� in the right way We optimise our global Partnering with commercial number of assets across five network of major terminals customers to provide tailored Bitumen countries: Puerto Rico, through Infrastructure� energy solutions Leading in the sourcing Ghana, Papua New Guinea, We develop sustainable Aviation and supply of bitumen Nicaragua and Honduras energy solutions through Serving the world’s airlines around the world Financial highlights Future Energies� and airports safely and reliably Storage and Refining Supporting our Downstream business with storage 3 terminals and refining assets 20,118K M US$1,205M Sales volume Gross profit Infrastructure Optimising our world-class network of major terminal assets Future Energies US$533M US$143M Playing a leading part in the energy transition for our business, EBITDA (including Organic capital customers and communities discontinued operations and expenditure, net excluding IFRS 16 impact) PUMA ENERGY ANNUAL REPORT 2020 DOWNSTREAM In the Downstream business we focus BUSINESS REVIEW purely and simply on our customers� Our Downstream business unit is We focus on thinking home to five customer-focused lines about customers, on thinking about of business: Retail, Commercial, providing great energy Lubricants, Aviation and Bitumen� solutions for them, Whether providing a great retail about how to drive convenience offer or meeting the creativity, innovation complex energy needs of different and simplicity in doing businesses – we’re here to excel for just that� Because all our customers� we’re wholly customer- 49 centric, we can channel our energies for positive impact much more effectively� Rodrigo Zavala, Head of West and Global Commercial Centre of Excellence From a great cup of coffee with Our Downstream business aims a full tank of petrol to a high- to be No1 or No2 in its core performance lubrication high-potential countries across solution for an industrial mine the Americas, Africa and Asia� – day in, day out around the Lubricants, Aviation and world, we work passionately Bitumen are global lines of and responsibly to provide business, while for Retail and energy solutions for our many Commercial customers we different customers� organise our Downstream markets into two core regions: West and East� West covers the Americas; East covers Africa and Asia� PUMA ENERGY ANNUAL REPORT 2020 Highlights DOWNSTREAM • Carrying out systematic We are putting the network planning to better customer at the heart RETAIL focus our energy and investment of all the decisions we • Accelerating the roll out of are making� We are In 2020 we continued to focus on our new Super 7 convenience thinking about the store concept giving our retail customers the very customer end-to-end • Launching PRIS – our first experience – everything ever customer loyalty best products, services and experience� from a contactless At the same time, we ensured all our programme • Rolling out our new Retail journey to how we customers and people stayed safe Site Operating System Polaris reward customers for in the face of COVID-19� • Piloting an enhanced Fleet their loyalty, how we card solution in Panama offer more for them and Zambia through our retail Our Retail business Reinforcing our retail centre make better, more informed Through the year, we We are evolving to provide of excellence decisions around what to offer completed network planning villages� It is all driven 50 high-quality, competitively- In 2020 we reinforced our and where and how to focus our for all our countries in the by what our customers priced fuels and lubricants, global centre of expertise 2,545 investment and development of Americas, except for Nicaragua, want and need, now supplementary services such for Retail, to support Retail sites sites across our network� which will be carried out in Q1 as car washes and ATMs, and implementation in local This included gaining a deeper, of 2021, and Colombia� We also and in the future� a growing range of great markets� We now have a group more granular understanding completed it in Zambia and Eghosa Oriaikhi Mabhena, products and services through of global experts dedicated to of our position in the market, kicked it off in Tanzania, with Head of Global Lubricants, our convenience stores, cafes category management; data site by site, understanding the many more countries in the Aviation and Downstream and restaurants – all at and digital; network planning; opportunities and challenges for pipeline for 2021� East Region welcoming, secure sites that operational excellence; each site and therefore the Convenience retail offer easy digital ways to pay� property management; new strategy for each one� In convenience retail we business development and This approach to network continued to develop the developing customer value planning gives us a stronger Super 7 brand in Africa and propositions for fuels, foundation for gaining and the Americas� Convenience convenience, food and non- retaining leading positions in retail will be at the heart of fuels offers� our core priority countries� growing the future Retail 26 Focusing on network planning It provides all-important clarity business� We are focusing on Markets served We made a step change in our on where we need to focus, creating great customer Progress against ESG framework network planning process in where we can invest for growth, experiences through and commitments 2020 by adopting a new more maintain things as they are, and competitive and compelling 7.2 rigorous and systematic where we should pull back� offers, excellent service and 922 approach� This allows us to Convenience stores PUMA ENERGY ANNUAL REPORT 2020 RETAIL creating more value for customers and the business through convenience� Our ambition is to be No1 or No2 in retail in 67 All the new or updated Super 7 Restaurants stores have a fresh, modern our core priority identity and layout designed countries� Our network to give our customers the best planning is helping us possible end-to-end Puma Energy retail experience� direct our energy and There are four global store investment to achieve formats (kiosk, ready to go, this ambition – faster� extended coffee, and meal That’s why we made break) which we tailor to local innovating and markets based on thorough country market assessment investing in our 51 conclusions� By implementing network our number an inviting way to browse and sites across the West Region and engagement with local our global best-in-class formats one Retail priority� From a great restaurant, locally, we increase impact, buy from a bigger selection of with the new Super 7� communities, we actively Rodrigo Zavala, chilled drinks� promoted awareness and good with real barista coffee, simplicity and efficiency and Adapting quickly to a Head of West and Global practice, which was particularly build brand loyalty with our Our plan was to roll out 135 COVID-19 world eat-in and take-away Commercial Centre of Excellence valuable in places where retail customers� retrofits