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 and new stores in the We adapted quickly to the COVID-19 communication and food options to a wide year. COVID-19 unavoidably changes and demands resulting We are focusing on a strong understanding were variable. range of fresh food and limited our ability to do this, from COVID-19. Safety was food service and hot beverages We were also very pleased to but we succeeded in our number one priority. We chilled drinks – offering offer. This is a key engine of support emergency workers completing 67, which was developed a very strong safety more than just fuels at growth and profit. It also adds operating in our markets by a great achievement under and hygiene programme in all to the ambience and customer offering them a complimentary our retail sites is the way the circumstances. our forecourts to ensure our experience, encouraging people beverage of choice every day. people, customers and the of the future. to stay longer and shop more. In the Americas, for example, in community were protected. Uninterrupted supply of spite of the pandemic we safely We are also expanding our dry This included a comprehensive groceries and other essentials completed 56 stores, so we goods offer, including fresh set of new operating was critical too. We made sure now have 65 of 170 Super 7 food and chilled beverages. procedures, training and our sites continued to receive stores with the fresh new look One innovation on this front in equipment, including plexiglass the deliveries they needed and feel. We are not stopping our larger-format Super 7s is partitions, alcohol gels and throughout the pandemic there, in the next three years the introduction of walk-in floor stickers for social by leveraging our contacts we plan to have close to 400 beer caves, giving customers distancing. Through our sites with key suppliers for critical

PUMA ENERGY ANNUAL REPORT 2020 RETAIL

items such as masks, gels We introduced home delivery be a significant source of Launching our PRIS loyalty but also basic drinks and in all our markets in Central revenue now that our stores programme We are using grocery products. America (except for Colombia have opened back up. This year we launched PRIS The launch of the PRIS technology and and Belize) as well as in Angola – our first-ever customer loyalty programme in Angola We were also quick to adapt This is a good example of how and South Africa. Working with programme – in Angola and pushing digitalisation our offer to cater for the needs we successfully implemented is the first of its kind in local, regional and global Panama. It is a great example of the communities. So when an enhancement we were to improve the delivery partners, our sites have of our truly customer-centric, the country and goes we had to close our food already planning for our customer experience been able to keep providing genuinely insights-led approach beyond those of other service offer for example, we customers sooner and quicker, customers in the community in action. and drive down costs focused on baking bread for in response to COVID-19. non-fuel retailers. with essentials. Home deliveries to get faster, better local people and expanding our PRIS rewards customers for PRIS is testament to accounted for a significant We also encouraged our assortment of basics such as their loyalty whenever they shop and cheaper at proportion of sales during customers to make the most of our determination rice and bottled water. or purchase fuel at participating lockdown and they continue to digital services such as mobile energising sites. Signing up is easy, either to become a leading payments. In Puerto Rico, the communities. in-store, online or via the PRIS customer-driven retailer convenient FastPay app that app. Through PRIS, customers 52 we had already developed for in our key markets. can redeem points for fuels customers provided an extra discounts, for offers at Super 7 We appreciate our benefit of safety. This quick, convenience stores and other customer loyalty easy and contactless way of participating merchants. They paying proved very popular and and the launch of get more for their money, as appropriate for the period – we PRIS is an excellent they earn points for fuel saw the number of registered purchased, and money spent opportunity to reward users increase by 40%. at Super 7 retail sites. They them in ways that are In addition, we bundled a Click can also accumulate points meaningful to them. and Collect app with FastPay, leading to a gold membership In true Puma Energy so customers could order from tier, where they will have Deborah Binks-Moore, style, with PRIS we 100 of the best-selling C-store the opportunity to receive Chief Customer Experience and wanted to draw on items, pay online and pick up exclusive rewards. Communications Officer at the site. customer insights to PRIS is the next step in our develop a best-in- Expanding FastPay and Click broader customer-led, digital and Collect beyond Puerto Rico strategy, where we optimise class global offer and to other high-potential consumer insights to increase tailor it dynamically countries is a key part of our customer satisfaction and so it really energises digital roadmap. We aim to roll deliver a better level of service. both out globally in 2021. It fits well with the rise in communities at mobile shopping, and today’s the local level.

PUMA ENERGY ANNUAL REPORT 2020 RETAIL demand for a seamless and a programme that connects in Zambia and Namibia. This create more insight into what We have identified more than engaging e-commerce with consumers and speaks advanced cloud-based system our customers need and inform 50 sites globally for these experience for consumers. to their passions through enables us to integrate just how we develop and offer a Our retail community retail villages. tailored loyalty propositions about everything, from better range of products and villages are a great PRIS was developed after Using our sites to the full in each country. scanning items to offering services and a better comprehensive market research way of showing that We have also identified over promotions for different parts experience to our customers. in order to understand what Introducing our Polaris system 500 opportunities to maximise of the day or cross-promotions It will be the backbone of our Puma Energy is here to consumers want and how best This year we introduced our the use of space across our between fuels and convenience customer-led, insight-driven energise communities to engage with them. Polaris point of sale (POS) sites. We are exploring how store products as well as to digital retail strategy and will system across 20 sites in in the most literal way best to use these spaces, We wanted to create something understand our customer be a key enabler of our Panama and a further five sites possible – by giving for example by adding our truly unique by creating basket. It will enable us to advanced category Quick Lubes car care service management process for more options at the offer, car wash services and our Super 7 Stores. neighbourhood level lockers for people to pick up Working on retail villages to our customers. pre-paid purchases. We continued to work on 53 Looking ahead our concept of retail villages. Next year, we plan to pilot This is an exciting opportunity self-service checkout in our for us to offer more products convenience stores and drive- and services to customers and through options, to speed up the local community, while also transactions, improve efficiency enabling us to make better use and help keep things quick, of our site footprints. It is a neat clean and safe – an even more combination of doing more for pressing requirement since our customers and optimising COVID-19. our property management. We will continue to rollout This year we concentrated Super 7 and Polaris upgrades at on design and development. pace. The idea is to create an integrated retail village with And we will rollout our PRIS different stores and services, loyalty programme to a further united around a strong eight countries in 2021 in an architectural concept. Wherever accelerated plan. possible, we will also include In addition, the development sustainable energy solutions of the retail villages and through our partnership with the optimisation of site our Future Energies business. space will continue.

PUMA ENERGY ANNUAL REPORT 2020 Highlights DOWNSTREAM • Segmenting customers into To excel for commercial 11 channels to understand customers, we are COMMERCIAL and meet their needs better putting them at the • Reorganising and equipping the business to develop centre of our business We transformed our Commercial business Champion teams and doing everything in 2020 to enable us to focus rigorously • Evolving our sales playbook we can to ensure we to continuously improve for really understand and commercial customers on providing bespoke fuels, lubricants meet their specific and other service solutions to our needs. By enhancing business customers. It was a year of great 30 our CVPs and change and of continuing to deliver Countries served developing Champion without fail for customers. teams, we want to be This key change enables us based on size and complexity. the preferred energy Our Commercial business other services, to deliver real, to focus on building a detailed This opens the way for us to From mining to transport, power lasting value for them. 11 understanding of the distinct be more organised, rigorous solutions partner for all 54 generation to agriculture – challenges, opportunities and and targeted in the way we We put the customer at the Channels served commercial customers. we want to be the preferred needs of our different manage and develop our centre of everything we do. energy solutions partner for all commercial customers, and customer relationships and Rodrigo Zavala, With this as our foundation commercial customers. To this their particular energy value creation. Head of West and Global stone for living our purpose of end, we have a relentless focus requirements. With this Commercial Centre of Excellence energising communities, we Identifying 10 core on adding value to customers’ understanding, we can tailor made a number of significant offer elements businesses by genuinely our products, services and changes in 2020. Building on this key step, understanding and meeting support to go beyond just fuels, we have developed a set of 10 their needs. Working closely Segmenting customers to provide energy solutions that core offer elements which form with businesses, we tailor our Rather than view and manage meet their needs and add the basis for our customer- energy solutions to their specific commercial customers through greater value. specific value propositions. needs for fuels, lubricants and the broad areas of B2B, We completed the The elements include security wholesale and bunkering, we segmentation in 2020, so each of supply, integrated energy are now focusing on 11 specific customer globally has been solutions, flexible logistics, channels: agriculture, mining, assigned to one of the 11 customised pricing solutions, transport, construction, power channels. In addition, we have dedicated salesforce, global generation, marine, industrial, carried out a further level of knowledge transfer, product government/state-owned Progress against ESG framework segmentation within each quality, asset management, enterprises (SOEs), non- and commitments channel, whereby we have bespoke credit solutions, and Puma branded retail, 7.2 profiled customers into groups leading with digital. branded distributors, and unbranded distributors.

PUMA ENERGY ANNUAL REPORT 2020 COMMERCIAL

Through our integrated energy developing new and existing and our business. We will solutions for example, we work relationships and growing the roll this training out in 2021. in partnership with customers business. The CRM tool is It focuses on: to provide both renewable designed to help them do this • Customer Value Proposition energy and traditional fuels – in a systematic way. We are also • Pricing to help them transition to providing dedicated training more sustainable energy for and introducing monthly • Future Energies their business. performance reviews. • Solutions selling Drawing on these elements, We piloted this new approach in • Fleet card we are now beginning to Nicaragua towards the end of • Customer Relationship communicate our value 2020. Drawing on the learnings Management (new ways propositions for each of from this pilot, we plan to roll of working) the 11 channels. out the new approach globally Looking ahead in 2021. Focusing on enablers We have big ambitions for 55 We focused on a number Implementing operational the Commercial business, of enablers through 2020 to improvements and are looking forward to support our sharpening of the In 2020, we implemented more effectively and also Capturing additional business achieving these ambitions improve the contribution of As well as continuing to deliver Commercial business. a number of operational Segmenting in the years ahead. improvements (OIs) in the commercial business. for existing commercial For example, we redesigned the commercial customers customers, we also had the To this end, in 2021 we will Commercial. Continuing to deliver roles of our territory managers resilience and agility to capture be focusing in particular and aligning our for customers (TMs), who play such a critical We developed a new fleet card additional business. In Puerto on five of our 11 channels: While transforming our on-the-ground part in our programme which we are business around their Rico for example, we won new mining, power generation, commercial business customer relationships. We piloting in Zambia and Panama. specific needs allows business from the power transport, construction and model, we also made sure combined this with the The pilots are scheduled to be generation authority by being agriculture. We will continue us to focus our energy we continued to deliver introduction of a Salesforce completed in Q1 2021 and we able to respond quickly to to refine our customer value and resources for for customers. CRM tool, which gives the TMs plan to roll it out more widely in its needs. propositions and aim to build a handy commercial dashboard Q2 2021. We designed the maximum effect. We helped commercial ever stronger partnerships Championing commercial and makes it easier and more programme based on detailed customers navigate through with commercial customers. excellence effective to manage and insights gathered from fleet extremely difficult times as We are developing a multi-day monitor customer interactions. owners, so we can offer a the pandemic took hold around commercial excellence training best-in-class solution. the world. Our strong track We want our TMs to channel programme to bring everything record of always being there and manage their time and We have also been working on together and give our people for customers with security of energy to interact with a consistent global approach the necessary understanding supply 24/7, 365 days of the customers in a different way, to managing our pricing. and skills to excel for customers with a strong emphasis on This will help us manage risks year was called upon like never before in 2020.

PUMA ENERGY ANNUAL REPORT 2020 Highlights DOWNSTREAM • Ensuring continued safe Our Aviation business operations for employees has a strong track AVIATION and customers record of growth and • Responding quickly and flexibly to changing delivery over the years. In a year when the whole aviation industry customer needs • Winning new business and was hit hard by the pandemic, we focused emerging stronger from on continuing to meet the needs of our the pandemic customers and ensuring we emerge a • eAviation rolled out to 100% of operations stronger, leaner, more agile and more profitable aviation business. 87 Airports served Our Aviation business bridging and transportation, Protecting people Responding to changing Taking on the We are proud to serve the to into-plane operations at our We reacted quickly to the customer needs challenges together 56 world’s leading airlines and own airport fuelling depots. COVID-19 crisis, ensuring the We were also quick and agile We also worked with our airports. Our customers know continued safety of our airport in responding to changing aviation customers to support Underlying strength 26 they can rely on us 24/7 to apron operations to protect customer needs. Our cargo liquidity challenges that Our Aviation business has a Countries served meet their needs – ensuring employees and customers. customers had to meet inevitably came when the skies strong track record of growth security of supply, high-quality We introduced a whole range increased demand and also our were closed to flights. As their and delivery over the years. As fuel approved to international of measures, from providing commercial airline customers long-term partners in aviation, we noted in last year’s report, in standards and fast turnaround personal protective equipment switched from carrying we wanted to provide as much many ways, it is the model for times. We are there for them on (PPE) to reducing shifts. passengers to just transporting help and flexibility as possible, the global consistency, quality the ground with our experts cargo. More broadly through the for example around credit. and customer-focused The global implementation of our and our infrastructure. We take year, there has been a radical solutions we are developing eAviation technology in advance Throughout, we continued our care of everything – from redrawing of flight schedules across all our different business of the pandemic helped us ensure rigorous quality and safety importation, handling, storage, across our network of airports, lines as we dedicate ourselves safe ways of working. Designed inspection regime, increasing with different airlines and to energising communities to to make it easy for our customers the frequency of our testing different aircraft flying to and help drive growth and to do business with us, eAviation where appropriate in order to from different airports. We have prosperity around the world. provides a digital platform for ensure the highest standards focused on adapting our service This underlying strength was pricing, delivery ticket and of fuel were maintained and and support so our customers critical in a year when the invoicing. Enabling contactless available as the lockdowns could make the most of the whole aviation industry was hit online transactions reduces the eased and flights resumed. highly volatile and fast-changing extremely hard by the need for physical contact – not aviation environment. COVID-19 pandemic. only increasing efficiency but also helping to keep everyone safe.

PUMA ENERGY ANNUAL REPORT 2020 AVIATION

Right-sizing the business Typically for our aviation Joint Inspection Group (JIG) Looking ahead Above all, we will continue to While living up to our customer business, this move was done compliant aviation fuelling We emerged stronger from the support our aviation customers focus and commitment successfully and at pace, While living up to facility there. This capability, pandemic in 2020, and aim as their needs change – throughout the crisis, at the resulting in reducing costs, our customer focus together with our excellent to build on our strengths. delivering for them reliably, same time we took quick and increasing simplicity and and commitment commercial relationship with We are open to opportunities safely, to the highest standards decisive action to adjust and gaining efficiencies. throughout the crisis, Airlink, made us the natural to grow our network of airport across our airports, evolving right-size the business. choice to support the locations further through our products and services, Winning new business We reduced costs. We were at the same time we expansion to Luanda. partnering or acquisitions. partnering with them in the In this exceptionally tough highly disciplined on capital world of aviation. environment, we are proud took quick and decisive Opening new airports We are also exploring expenditure, without ever to have gained significant action to adjust and Despite the pandemic, opportunities to commercialise compromising safety or new business wins. as planned we brought five sustainable aviation fuel in order maintenance. We stopped right-size the business. new airports into our network to support carbon reduction all discretionary spend. One of the main achievements In this exceptionally in 2020, bringing our total and more environmentally We reduced our headcount. in 2020 was to win the Frontier tough environment, number to 87. friendly transport. And we worked with our Airlines contract at San Juan 57 customers to ensure tight in Puerto Rico for three years. we are proud to have cash management and A low-cost airline, Frontier, gained significant credit control. based in Denver, Colorado, is new business wins. among the top 10 airlines in the Taking these hard measures USA. This contract represents Eghosa Oriaikhi Mabhena, quickly helped us focus on the substantial volume growth at Head of Global Lubricants, future steps towards recovery, the airport. Our competitive Aviation and Downstream so that we emerge a stronger, and reliable supply chain East Region leaner, more agile and more combined with our leading profitable aviation business. on-airport into-plane refuelling As demand shrank in 2020 due service were key in us winning to the pandemic, we continued this new business. to be profitable and are well poised for future success. We also increased our business with one of our longstanding Centralising aviation processes customers, Airlink. A regional in the Group's global shared carrier in Southern Africa, services hub located in Airlink recently expanded its Mumbai, greatly helped with flight services to Luanda. streamlining processes. We operate a state-of-the-art,

PUMA ENERGY ANNUAL REPORT 2020 Highlights DOWNSTREAM • Winning new commercial customers with bespoke, LUBRICANTS high performance solutions • Increasing sales and services for retail customers From industrial mines to individual • Focusing on continuing to build the lubricants business motorists – throughout 2020, we focused and brand on helping our many different customers use the right lubricants in the right way, so they could achieve better performance 26 at a competitive price. Countries served 71 Our Lubricants business leading technology to their OEM approvals consists of 700 products, Making sure we delivered or were significantly restricted. 58 We help businesses and needs to deliver measurable all backed by Puma Energy’s for our customers But our resilience, cost-saving consumers save costs and benefits. For consumers, we reach and security of supply Despite the supply chain and customer focus enabled enhance efficiency by using have a wide range of high and exceeding automotive and disruptions resulting from us to keep the reduction in the right lubricants in the right quality lubricants to meet industry specifications. They COVID-19, we drew on our volumes to 8% year-on-year, way. For businesses, our high their needs. include on-road and off–road strengths in supply to ensure while our underlying EBITDA performance lubrication automotive oils, heavy duty we delivered safely and reliably was on par with 2019. Building our business solutions inspire change. From industrial oils, marine oils, for all our customers We continue to build our Providing bespoke, high- mining companies to sugar hydraulic oils, coolants throughout the year. Our global strong global lubricants performance solutions mills, transportation businesses and greases. network of blending plants business. We sell our lubricants This year we began to to cement makers – we work proved to be a significant through retail, wholesale and We have invested in the latest implement our high- closely with our commercial advantage. Indeed, we gained industrial market channels, state-of-the-art molecular performance lubrication customers to adapt our world- business from new customers and indirectly through selected technology and our products solutions for business faced with supply challenges. distributors. We also have a are approved by all major customers. We are focusing on successful range of high- original equipment Delivering a meeting the different needs of performance lubricants. manufacturers (OEMs). resilient performance customers in key segments, The pandemic inevitably from mining to marine, power Our lubricants range has Our lubricants are produced impacted volumes across our generation, cement, sugar mills undergone a complete brand at a network of blending plants lubricants business, as countries and railways. This embodies our overhaul, with an attractive, in South Africa, Mexico, the across continents locked down vision to work in partnership fresh image reflecting the Netherlands and Singapore. and both movement and with our customers, so we can products’ quality and innovative industry either came to a halt understand their challenges properties. Our portfolio

PUMA ENERGY ANNUAL REPORT 2020 LUBRICANTS and provide the right bespoke mining houses, achieving an maintenance with high-quality represents a formidable solutions to improve additional gross margin of products and expert service. opportunity for us to build our operational efficiency and US$1.5m annually. We have invested in developing brand in these countries. We deliver immediate and long- a branded best-in-class Quick are looking forward to selling In Botswana, we are providing term sustainable savings. Lubes solution, including the our own brand of lubricants a combined high-quality fuels creation of a master plan and leveraging our advantages, Winning with and high-performance design and training employees notably our more complete high performance lubrication solution for to provide the best possible range of products, our blending In 2020, we secured and Debswana’s diamond mines. service for motorists. network, and our strong market solidified a number of In the Republic of the Congo, position in fuels. It is an exciting significant business wins To add to the convenience the state railway has chosen us opportunity, which we are with our high-performance and value, we are alerting to work with it as its partner to determined to make the lubrication solutions. In Zambia customers digitally via apps of meet all lubrication needs for most of. for example, we implemented offers and opportunities to its locomotive engines. The a tailored product and come for fuel, lubricants and In addition, we will be focusing quality of our lubrication Building on this success, we application approach for a maintenance for their vehicles. on building strong strategic 59 technology, our security of plan to implement the same copper mine. By moving to our From high- partnerships with selected supply and our customer best-practice programme in It is all part of our ongoing synthetic high performance distributors in key countries focus proved to be a winning performance other countries where we have commitment to provide a lubricant for vehicle and markets. We will develop combination. lubrication solutions brand leadership in our retail comprehensive, high-quality, transmissions, they are saving long-term, mutually beneficial business through fuels and a trusted service to customers US$955,000 per year due to Increasing our sales to for businesses to our commercial relationships with big opportunity to create at our sites – from fuel to improved machinery up-time retail customers quality partners who have the Quick Lubes offer similar success with lubricants. lubricants to tyre checks and and performance. We also We have also focused on required expertise and for drivers – we are In Zimbabwe for example, we other complementary services introduced a new grease for growing our business with our capabilities, so that together, committed to have a market share of 25% in where space and location allow. pins and bushes at the mine, retail customers. In Angola for fuels and 3% in lubricants. By we reach an array of customers delivering an estimated annual example, we implemented an meeting the needs implementing our programme, Looking ahead and grow our business in the saving of US$800,000. integrated programme across of all our customers. we intend to close that gap, Through 2021, we will continue most effective way. our 79 service stations. We to roll out Quick Lubes at At the Catoca Mine in and this is a key part of our improved our logistics to make strategic locations. We will also Angola, introducing our high plans for 2021. sure our best-selling products extend our integrated retail performance lubricant for were always available at sites; Offering more for motorists programme beyond Angola to articulated dump trucks has adjusted our pricing so it was In the Americas, we have begun other high-potential countries. also resulted in a material competitive; offered lubricants to roll out our Quick Lubes cost saving. We also plan a number of training and incentives to staff, solution, we have 71 locations other key moves in 2021. Across South Africa, we and nominated lubricants so far. A quick and convenient The migration from Castrol to delivered seven value ambassadors. As a result, stop for lubrication and other Puma Lubricants in Botswana, added projects to different we increased monthly sales vehicle care, Quick Lubes Namibia, Malawi and Tanzania by 80%. provides preventive

PUMA ENERGY ANNUAL REPORT 2020 Highlights DOWNSTREAM • Successfully serviced our growing customers' BITUMEN requirements bolstered by the world’s most advanced bitumen fleet In a year of great disruption, we grew • Continued our significant investment in advanced our Bitumen business by delivering production facilities and safely, efficiently and on time, every new, sustainable products time for our customers. 50+ Markets served Our Bitumen business Growing strongly We are a global market leader Building on the steady growth in the sourcing and supply of of previous years and despite bitumen. Our integrated the disruptions and challenges 29 Helping customers deal Capitalising on rising demand Investing for the future 60 bitumen solutions play a key of COVID-19, our Bitumen Bitumen storage with disruptions Our Downstream bitumen Reflecting our continued part in the construction and business grew strongly in terminals worldwide Our bitumen shipping fleet, one markets remained relatively commitment to leading in maintenance of roads that are 2020, volumes increased of the largest and most strong, particularly in the bitumen, in 2020 we made in turn essential to connecting 9% year-on-year. advanced in the world, proved second half of the year. significant investments in economies and communities to be an essential asset this When demand rebounded, upgrading our specialities A key international connector around the world. Drawing on year. Being able to transport our longstanding relationships offering in Australia. In a year In an exceptional year, we our unrivalled global reach, bitumen safely and reliably with customers allied to our when capital expenditure demonstrated our critical role, experience and expertise, along from producers to customers reputation for reliability and across the Group necessarily our resilience and the strength with our advanced technologies around the world really came to quality ensured that we were had to be reined in and highly of our relationships with our and customer focus, we supply the fore. We were able to meet able to capitalise on the upturn. selective, we saw this bitumen bitumen customers. As a global our customers with the high- the demand of all our existing investment as a critical part of market leader in the sourcing quality bitumen they need – customers in 2020 and also being able to meet the current and supply of bitumen, we are safely, efficiently and on time. helped new customers facing and future needs of our proud to go further for better disruptions with their markets. customers with the advanced performing roads. We act as a This in turn enabled us to bitumen solutions they are reliable international connector maximise the use and efficiency increasingly looking for. for bitumen producers of our shipping fleet while and customers. growing our customer base.

PUMA ENERGY ANNUAL REPORT 2020 BITUMEN

Focusing on advanced solutions 326K DWT Alongside the new production Ship carrying capacity facilities, we are investing in our Global Technology Centre in Melbourne, Australia, where we research and develop new 521KT solutions. We are also opening Bitumen storage capacity new quality assurance laboratories in Cadiz, Spain and Malaysia. It is all part of our ongoing focus on advancing our solutions and building ever stronger relationships with our bitumen customers. In the UK 61 for example, we are at the forefront of recycling bitumen – enabling our customers to take up an old road and combine it with our special bitumen product so they can relay it. Turning old tyres into Our OLEXOCRUMB® product new roads has been a huge success in Looking ahead One of the high performance Australia and investment in new Looking ahead we will keep products we are now production facilities will help us advancing – developing and offering our customers is meet rising demand for this and delivering the high-quality, OLEXOCRUMB®. An innovative other speciality products so we high-performance bitumen environmentally friendly can continue to lead in the products and support services product, it gives end-of-life market. The new facilities will our customers need. tyres a new lease of life in have the highest production the form of crumbed rubber capacity in Australia, with a modified bitumen. These superior production method tyres used to be disposed of unique to Puma Energy. internationally as waste. Now we’re turning them into state-of- the-art bitumen that’s better for roads and for the environment.

PUMA ENERGY ANNUAL REPORT 2020 DOWNSTREAM LPG STORAGE AND REFINING

Our LPG business continued to deliver We have a network of storage safely for customers around the world terminals supporting our Downstream – at a competitive price and on time. business. We also own and operate refining assets as part of our offer in Downstream markets.

Our LPG business Our priorities are to offer value Storage as part of our Downstream Our liquefied petroleum gas for money, quality of service Our Downstream storage business. Our customers (LPG) business offers and promote high safety terminals support our particularly value our ability significant benefits to standards. In some markets, Downstream segments – to leverage our sourcing, 62 consumers, including we are the partner of choice of helping us offer a seamless transportation and storage convenience, value for money national oil companies as they supply of refined oil capabilities to deliver high- and a carbon footprint that transition away from kerosene. products to customers. quality fuel products safely, is around 20% lower than reliably and cost-effectively. with a clear career path which Our Nicaragua refinery We continue to look for new Reliability and security of conventional heating oil or allows our employees to successfully carried out a major markets where LPG could play supply is a top priority for our kerosene and 50% lower Refining develop their careers. turnaround in 2020. Significant a role in creating a more secure, commercial customers across While refining is not a core part than coal. maintenance activity was sustainable and competitive In 2020, our Managua a broad range of industries, of our business, we own and undertaken on time without We specialise in the storage, energy model that will benefit refinery in Nicaragua such as power generation, operate local refining assets any injuries or incidents. bottling and distribution both business and domestic succeeded in improving the transport, mining, agriculture where they are an integral part The turnaround also included of LPG, with distribution customers in the coming years. efficiency of extracting value and construction. To help us of our Downstream markets. a major capex project to operations in Latin America, meet this critical need, we own out of each barrel without the Two refineries currently improve gasoline production the Caribbean and Africa. need for material investment. and operate storage terminals and site length run – one of operating are in Nicaragua and This was a great example the operational improvements Papua New Guinea. These are of innovative thinking and identified in 2019. In 2019, critical to each country's fuels superb multifunctional team we undertook a similarly logistics and needs. Moreover, collaboration coming together successfully turnaround at our they provide important for a creative solution with Papua New Guinea refinery. economic support and a high impact. More initiatives are also number of jobs for the local being developed and reviewed. communities in each location,

PUMA ENERGY ANNUAL REPORT 2020 INFRASTRUCTURE Overview 32 With the creation of our Infrastructure Major marine terminals business unit, we are intensifying our focus on strengthening and optimising our 2 world-class assets – so that we can create Major inland terminals greater value, serve our Downstream customers even better and attract additional customers and investment. 18 Countries

Americas: Over the years we have Our Infrastructure business • Belize • Panama Expertise, services Investing in and developing 63 invested a great deal in building Our Infrastructure business • El Salvador • Puerto Rico Infrastructure and technology our infrastructure a world-class network of unit owns and commercially Our services range from We continue to invest in and • Guatemala • US Virgin capabilities and infrastructure assets. It has operates a strategically located blending to complex logistics, develop our infrastructure – Islands been a core characteristic and global network of major • Honduras services handling and delivery. to improve efficiency, expand strength of the business, infrastructure assets, including • Storage capacity rental Our advanced Terminal into new energy solutions and enabling us to live up to our some of the newest, most Europe: and throughput Management System gives our be best positioned to support commitment to deliver high- efficient and best-in-class • UK • Finland customers direct, online and the energy transition. This quality and competitively terminals in service today. real-time access to their stored includes using more efficient • Estonia • Norway • Blending, additivisation priced energy products for our We enable our customers to and butanisation products, so they can track and decarbonised power in customers around the world – supply, import, export and stock movement. our assets. safely, reliably, without fail. trade energy products across Africa: • Vessel discharging, Key infrastructure hubs Building the business unit their markets. We are attracting • Ghana • Namibia loading and handling Our global network of import, We established the new customers and enhancing • Mozambique • Tanzania trading and transhipment Infrastructure leadership team, services for existing customers terminals plays a critical role strategy and structure in 2020. – maximising use of the • Rail, truck and pipeline for our customers – from being We are now defining discrete assets while operating to discharging and loading Middle-East & Asia-Pacific: a key part of the value chain business plans and growth the highest standards, safely • Australia supplying high-growth energy opportunities for Infrastructure. and responsibly. • Myanmar markets to providing storage These range from adding • United Arab Emirates capacity to facilitate global capability to the platform to trade flows. looking at new opportunities to grow the footprint.

PUMA ENERGY ANNUAL REPORT 2020 INFRASTRUCTURE

Capitalising on opportunities cost centres. Indeed, without highly skilled and committed Looking ahead We see many opportunities to the need for further investment, workforce, the highest Looking ahead, our focus grow further and create greater there is room for many of We see many standards of safety, and for Infrastructure will be to Setting up value. From day one as a our assets to handle more opportunities to a dedication to excellent, optimise our assets, maximise Infrastructure as standalone business unit, products and services, and grow further and efficient operations. This is a our return on invested capital, a standalone profit- Infrastructure is a world-class we will be looking to optimise fantastic foundation to build serve and win new business storage and services provider. this utilisation. create greater value. the business as we focus from customers, drive cost driven business unit We have a network of major on meeting the needs of efficiencies and explore how is an exciting step But it is not just about the high-quality assets which we our existing and new best to increase investment quality and capacity of our change for us. We are will manage as great value Infrastructure customers. for growth of the business. terminals. We also have a looking forward to generators, rather than Working with Future Energies, optimising our Infrastructure is developing and implementing on-site infrastructure assets renewable energy solutions, and capabilities to not only to provide green drive greater value 64 energy for our own business but also for local businesses for Puma Energy and and communities. Given our stakeholders. their size and location, our Jonathan Pegler, Infrastructure sites are ideal for Future Energies, Infrastructure, exploring these future-focused Global Bitumen options at the heart of our purpose to energise communities around the world.

PUMA ENERGY ANNUAL REPORT 2020 FUTURE ENERGIES Overview 5 We created the Future Energies Countries with Future Energies business unit to make the most of the projects implemented opportunities for Puma Energy to play a leading part in the energy transition across our high-potential markets. >3,000 The future in these countries is an exciting Potential sites identified mix of innovative, increasingly renewable, often decentralised energy solutions and strong underlying growth potential and Future Energies This is underpinned by our Capitalising on our we are determined to be at the heart of it. There has never been a greater best-in-class technology and unique strengths 65 need for affordable, reliable is confidently delivered in line Our customer focus has created and sustainable energy. Future with our high health, safety, strong and trusted relationships Making the most of a The energy transition now Energies is Puma Energy’s security and environment with local customers and key moment makes both financial and response to the energy (HSSE) standards. communities. Our relationships With the technology advances environmental sense. People, transition and our opportunity with investors, governments, In 2020, we established our and rise in demand for planet, profits – from whichever to expand our offering beyond technology providers, Future Energies organisation renewables in recent years, angle you look at it, we are fuels – bringing electrons to our businesses and communities and team and defined our the world has reached a key better off using renewable customers and communities. are helping to forge stronger strategy – clarifying our inflection point. More often energy. So the question is not partnerships that will support Our knowledge and position distinctive strengths and than not, it is cheaper to install whether, but when and how and accelerate energy transition in the energy supply chain, position in the energy renewables than any other form best to transition – and who to where we operate. Our proven together with our expertise in transition opportunity. of power generation. turn to for help. We are making ability to manage complex these high potential markets, our Future Energies business We are focusing on three supply chains, positions us well means that we can deliver unit a critical part of the answer core areas of opportunity: to deliver cost effective, reliable distributed power solutions and for customers and communities progressing our own energy and clean electricity. energy services. We are poised in our high-potential markets transition; working with our to capitalise on the shift from across Africa, Asia and retail and commercial large, centralised power the Americas. customers to create solutions Progress against ESG framework production and distribution to for their own sites; and and commitments smaller, modular, more diverse exploring standalone projects. 4.1, 4.2 and digitised energy systems.

PUMA ENERGY ANNUAL REPORT 2020 FUTURE ENERGIES

Progressing our own Building within our business For example, a large proportion Our core capabilities energy transition allows Puma Energy to not only of our pipeline is in Africa. In Future Energies is working reduce carbon in our operations recent years, despite growing Our strong customer Our geographical Our ability to direct very closely with our other but also reduce our energy demand and a solar-friendly focus, technical 1 footprint, local 3 finance towards two business units, Downstream costs, optimise our assets and climate, there has been little expertise and local expertise and network commercially viable and Infrastructure, to implement showcase our capabilities to investment in the energy of assets across high- projects with the projects that are starting the external customers. transition compared to OECD market knowledge potential markets greatest impact energy transition throughout countries. With our deep allow us to deliver Solar energy presents one of Puma Energy. Future Energies local presence, knowledge Our commercial and Our reputation for our biggest opportunities to energy solutions for will exclusively build, own and and relationships, we are retail customer base high quality solutions reduce CO2 emissions and in the high-potential 2 4 operate renewable energy ideally positioned to push for, provides an intimate turn, deliver ESG benefits. We solutions in our own assets – implement and ultimately markets in which knowledge of their have set ourselves the target of helping Puma achieve its goal champion the transition in and their local deploying solar and/or battery we operate. of net zero carbon in our Africa, and indeed across all communities’ needs storage in at least 75% or more operations by 2030. our high-potential countries. of our company owned and 66 operated retail sites, depots Creating solutions for our retail and terminals by 2023. We plan and commercial customers to drive economies of scale We are also focused on by combining individual sites delivering energy solutions for into single larger projects our Downstream commercial and coordinating projects and industrial customers, across geographies to drive so that for example our mining, down implementation costs. industrial and transport Alongside these developments, customers can benefit from we will gather and analyse data integrated energy solutions

to accurately calculate CO2 that will also support their emissions and track savings own energy transition. Electricity Access across our portfolio. Decentralised solutions are the least-cost way to provide power to more than half of the population gaining access by 2030.1

1 Source: IEA (2020), SDG7: Data and Projections, IEA, Paris

PUMA ENERGY ANNUAL REPORT 2020 FUTURE ENERGIES

Exploring standalone projects The work we are doing with Downstream and Infrastructure Future Energies is in is not the whole story. Our a unique and exciting aim is to work closely with position to make partners who share our vision and commitment to energy significant impact transition across our high- for customers and potential markets. We are communities in exploring a range of standalone regions with some Future Energies projects and partnerships with customers, of the world’s lowest governments, businesses and electrification rates. communities in both existing In 2020, we and new geographies. implemented the 67 Rolling out our projects first projects to build in stages We are phasing the rollout our capabilities and of projects so we can learn demonstrate the and improve as we go. We value creation that undertook Phase 1 in 2020: investing US$5m in five pilot is possible. projects to install solar and Mitchell Board, batteries at some of our Retail Head of Future Energies and Infrastructure assets. A total of 17 sites, including retail stations and terminals are due to be up and running by April 2021 in Ghana, Puerto Rico, Nicaragua and Honduras.

PUMA ENERGY ANNUAL REPORT 2020 OPERATING The Goal RESPONSIBLY Company performance We are deeply committed to operating Robust risk management Increased employee productivity Better strategic management responsibly throughout Puma Energy – working together to the highest standards to bring to life our purpose of energising communities. Programme Policies and Training and Third-Party ‘Speak Up’ and Remediation Discipline and Risk management structure, design procedures communication engagement investigations incentives and oversight process

Working together to energise Our culture is built on our Culture of integrity communities responsibly values and our values shape 68 We want to ensure that the way we behave. They guide everyone in Puma Energy acts and inform our principles, responsibly, from complying policies and processes – the with all laws and regulations ways we ensure we energise Operating in an ethical and to staying true to our four communities in the interests transparent way core values of customer focus, of all our stakeholders. We are deeply committed to The importance of lead by example, collaboration, operating in an ethical and operating responsibly Acting responsibly is not simply and agility. transparent way. This is led about making sure we do not goes to the heart of from the top, with our CEO do the wrong things. It is about the purpose of Puma and senior leadership team being front-footed in doing the driving regular company-wide Energy. It’s not just right things, so we take the lead engagement, greater in bringing positive change. about what we transparency and increased Our lubricants business, for do but also how we collaboration across the example, is actively working organisation. We are cultivating do it. We want to do with local governments to raise an inclusive culture where the right things in the product quality standards and we are all in it together and monitoring in countries where right way in energising encouraged to speak up and Progress against ESG framework there is currently relatively little constructively challenge communities. and commitments lubricants regulation. each other. 2.1, 10.2, 10.3

PUMA ENERGY ANNUAL REPORT 2020 OPERATING RESPONSIBLY

Introducing our new Code of Encouraging everyone in In addition, our Speak Up! Line Business Conduct gives everyone, both internally Living our purpose and values – Puma Energy to Speak Up Our Code reflects our After defining our purpose and the core of our code We see operating responsibly as and externally, a way to raise new values last year, it was a an active living commitment concerns about ethics, commitment to living natural and necessary next step taken on by everyone every day. compliance and the our purpose and our for us to review and update Our Code of Conduct guides how we do things in In line with this commitment, we requirements of our Code, values. It goes beyond our Code of Business Conduct 1 Puma Energy. It helps us to make the right decisions encourage everyone to Speak online or over the phone – to ensure it aligned with and regardless of whether we work for, with, or on behalf Up if they witness a Code 24/7, 365 days a year. being a set of rules reinforced the journey we are of Puma Energy. breach, or are simply unsure Supply chain and partners and legal compliance; on at Puma Energy as strongly about what to do or what they We undertook an assessment it defines the way and effectively as possible. have been asked to do. Obey applicable laws and regulations wherever we and review of third-party we energise our We launched the new 2 operate in the world; never avoid or circumvent them. In 2020, we focused on training relationships that posed the comprehensive Code of and awareness to further embed highest risk to the company, internal and external Business Conduct in 2020. our Speak Up culture in the ensuring that all risks were communities. It is It outlines the common Be honest, straightforward and trustworthy in all Puma organisation. We wanted to make identified, mitigated and therefore important 69 principles and standards 3 Energy activities; everyone, everywhere, every time. it clear and encourage everyone continuously monitored. expected of those who work who works for and with Puma everyone in Puma We also built and launched for and with Puma Energy. Energy to follow our Code and Energy lives the our new risk-based ‘know your If you’re not sure what to do, just ask – if you think report actual or suspected The Code governs how we work counterparty’ process and Code – every day, 4 something doesn’t seem right or conflicts with the law, breaches. The core message was: and helps everyone in Puma platform, in addition to hiring everywhere. regulations, policy, safety or this Code – have the this is the right thing to do – and Energy to uphold our values. a dedicated team tasked with courage to speak up. the safe thing to do. It sets the expectations of ensuring appropriate screening everyone who works for Puma We provide and promote of third-party relationships. Energy, and helps all of us work Never forget that demonstrating compliant and ethical a range of channels for our Data privacy consistently, to the same high behaviour is crucial to Puma Energy’s business, integrity colleagues to Speak Up, 5 Maintaining the privacy of all our standards. It is through our Code and reputation – and those impact our customers, including their line manager, data is an important aspect of that we set out what it means to colleagues, investors and shareholders alike. another member of line our responsible operations. We be part of the Puma Energy management, the People & undertook a global assessment family, what our values are, how Culture team, the legal of our data privacy risk, which we expect people to behave. department, the compliance will provide us with further department, a Code The Code has been produced clarity on any gaps in our Ambassador, compliance officer, in English, French, Spanish, operations. The findings of the or Global Head of Compliance. Portuguese and Burmese, and assessment will form part of our is available to download from 2021 ethics and compliance plan. the Puma Energy intranet and our corporate website.

PUMA ENERGY ANNUAL REPORT 2020 OPERATING RESPONSIBLY

Managing our business department that keeps track of internal audit, communications responsibly performance and product flows and Health, Safety, Environment We balance our We employ more than 7,100 at individual business units. and Communities (HSEC) are objectives with people from over 40 countries, also based centrally. Most strategic decisions are and have implemented a rigorous oversight. taken centrally. Commercial and Local general managers are structure of global, regional and operational decisions are made responsible for day-to-day This involves effective local offices to ensure we manage regionally and locally. The operations. Each country has information systems, our business responsibly. organisation favours short a local management team and comprehensive We empower local employees reporting lines, which encourage local staff and enters into and reporting and a fully to improve effectiveness in key a dynamic culture where swift manages the main contacts networked Internal markets. Local decision-makers decision-making is the norm. with our customers. Our understand the conditions on This in turn improves reporting relationships with suppliers, Audit department. the ground, which makes them clarity and every employee customers and local authorities best placed to respond understands the extent of their and governments are better appropriately to the challenges role and responsibilities. because we are permanently 70 they face on a day-to-day basis. present in local markets. Clarity promotes transparency, Our decentralised corporate as our clear reporting lines structure promotes operational reduce the scope for unsafe flexibility by giving Regional commercial practices to Non-financial reporting A summary of non-financial information Managers the ability to respond develop or take root. Roles, can be found throughout this report directly to customers and relationships, reporting lines as follows: stakeholders, and we balance and responsibilities are Stakeholder engagement this with rigorous oversight specified in a Delegation of Responding to COVID-19 through effective information Authorities document, which is Our People & Culture systems, comprehensive distributed internally and – Culture and values reporting and careful internal updated on a regular basis and – Learning and development – Wellbeing auditing. While we make approved by our Board. – Diversity and inclusion most commercial and Our finance, liquidity Communities operational decisions regionally management, risk management, – Road safety or locally, we set strategic – Volunteering controlling and consolidation – Donations and charitable causes direction centrally. teams are all based in our office Health and safety We balance our objectives with in Geneva to maintain strict Compliance training rigorous oversight. This involves control over our finances and Environment effective information systems, our exposure to risk. Other Risk management comprehensive reporting and a support teams, including Our ESG principles and commitments fully networked Internal Audit strategy, human resources,

PUMA ENERGY ANNUAL REPORT 2020 Overview In Puma Energy we see OUR PEOPLE Number of colleagues the People & Culture function in a true & CULTURE 2020: 7,155 partnership with the 2019: 9,302* Our people are the driving force behind businesses around the *The decrease in the number of world. To this end, we the growth and success of Puma Energy. colleagues is mainly due to the sale of our Australian commercial and retail are implementing our Their collaborative entrepreneurial spirit, fuels business in 2020. People & Culture diverse nationalities, cultures and strategy to help drive Investment in training (US$m) experiences flow into our culture and the business forward make Puma Energy a great place to 2020: 1.4 in living our purpose work, a great place for our customers 2019: 1 of energising Delivering our strategy diverse talent (cultivating communities and to develop long-lasting relationships We are delivering our strategy strategic roles that have a Highlights through strong business direct impact on our growth delivering on our 71 – a great place to energise communities. • Creating and aligning our partnering relationships across and success); and the P&C new People & Culture customer-led strategy. the regions, lines of business operating and delivery model strategy and operating plan and functions supported by (partnering closely, seamlessly Michael Schulz, to our five-year business plan Creating our People delivery of Puma Energy’s centres of expertise in and systematically with the Chief People & Culture Officer & Culture strategy plans and objectives. • Reinforcing our culture; organsational development Group and businesses at Building on the purpose and living our values It has been designed around including learning, reward, all levels). customer-led strategy • Supporting our people talent attraction and learning supporting the five-year It is supported by four established in 2019, in 2020 through the COVID-19 and development. Shared EBITDA target, the new foundations: a P&C organisation we created a People & Culture pandemic Services drive our overall operating model of three aligned to critical business (P&C) strategy and plan, colleague experience in support business units, the areas of interfaces; a colleague endorsed by the Board that of the business partners and all delivering the operational experience that drives aligns with and supports the colleagues around the globe. improvements, the customer- customer experience; strong led business transformation The strategy revolves around reward governance and for Retail and Commercial, four pillars: ensuring an philosophy; and digitalisation, the development of Future effective organisation (aligning notably automation of Energies, and the creation the hard and soft wiring of the management information of our new Infrastructure business); evolving our culture systems and the strengthening Progress against ESG framework business unit. (moving our cultural centre of of our predictive analytics. and commitments gravity so that we put our 10.1 customers at the heart of 110,500 everything); capability and Training hours

PUMA ENERGY ANNUAL REPORT 2020 OUR PEOPLE & CULTURE

Evolving the P&C strategy Reinforcing our culture; To further embed the values We are committed to living our values in the organisation, we have completely and seamlessly We are embedding a strong aligned the talent attraction aligning our purpose around Puma Energy culture to and interview process, created our colleagues and the support our core purpose of on-boarding videos and new commercial organisation, so energising communities. This joiner booklets to support the the strategy has changed purpose is a great galvaniser induction process. and evolved as the business for everyone in Puma Energy. We have also developed requirements have changed It drives us on together to grow e-learning courses for and evolved. and excel. Our culture, our own colleagues to become more distinctive way of living up to For example, to respond to the familiar with the values and and delivering our purpose, is COVID-19 pandemic we have have carried out leadership rooted in our positive, dynamic, invested in developing and training to ensure consistent can-do Puma Energy Spirit. implementing wellness and role modelling. working away from the office Our Puma Spirit is distilled 72 How colleagues behave against programmes. This has given us into our four values: the values is included in their the opportunity to ensure we • Customer focus KPIs, and we have hosted incorporate new polices, • Lead by example workshops for leaders to principles and learnings into ensure they are all clear on our long-term colleague value • Collaboration how to evaluate our colleagues propositions. Despite a hybrid • Agility against the values as part of or remote working environment We launched the values in 2019 the year-end process. during the pandemic, we have and during 2020, we continued ensured we maintain the human In addition, the values underpin to build on the foundations element and connection with all of the communications to through workshops across colleagues in what we do. colleagues, for example at the regions and the senior Global Town Halls. As we moved to three distinct leaders role modelling Our values help us place customers business units – Downstream, behaviours as they went Infrastructure and Future about their daily business. and communities at the heart of Energies – we worked with the everything we do and express organisation to ensure the our commitment to create value businesses have the resources and drive growth and prosperity they need to operate efficiently and effectively. through our unique blend of local market expertise and global capability.

PUMA ENERGY ANNUAL REPORT 2020 OUR PEOPLE & CULTURE

Engaging with our people improvement that will drive purpose of energising creating new digital channels We engage with our people our colleague experience and in communities. This year, we and upscaling our content to closely and dynamically, with a turn, our customer experience. gave out 15 GEM awards. reach all employees wherever strong emphasis on everyone they are. We increased our Recognising contributions Sharing the magic being open and transparent. regular communication with We are keen to recognise the We also introduced our Making We encourage people to our colleagues through virtual contributions of our colleagues. A Great Individual Contribution ask questions and make Town Halls and Energiser One of the key ways we do this (MAGIC) online recognition suggestions, to contribute newsletters as frequently as is through our annual Puma platform, designed to make to the conversation. daily at the height of the Energy Awards. Now in their it easy for colleagues to share pandemic. In this way, we kept To understand the issues that 5th year, the Awards honour instant appreciation of each our colleagues informed about matter most to our colleagues, Puma Energy people across six other. MAGIC has encouraged the pandemic, with updates, we engage in a number of categories: Customer-focused a culture of appreciation and education and information on ways. When colleagues began award, Leading by example recognition across teams, wellbeing, keeping safe and working from home at the start award, Team collaboration geographies and businesses. looking after each other. of the pandemic for example, award, Agile Puma award, Since launch, over 4,000 73 Through webinars, we also we sent out a pulse survey to Country of the year award, and badges have been awarded invited colleagues to share ask “How are you doing?” The CEO Spirit of Puma Energy by colleagues to colleagues to wellbeing ideas. consolidated responses helped award. There is also a special show appreciation for things us understand how best to award for the most compelling they have done that matter In addition, we provided access plans for continuous growth description of what energising engage with our colleagues as and improvement where we to the awarder. to globally recognised colleague they worked from home and Our People & Culture communities means. The awards wellness programmes where have identified gaps. get bigger and better each year. Supporting our people through also informed our development individuals can engage with strategy is a dynamic, This year, we had 1,453 entries the COVID-19 pandemic of wellbeing programmes and This allows us to create a experts on different personal living plan of action from Puma Energy colleagues We acknowledged immediately flexible working policies. baseline and focus on issues. Wellbeing programmes around the world, and a brilliant that the COVID-19 isolation which we look to included, for example, “dealing Our Colleague Value Proposition set of winners. measures across the world with stress” and “improving Ambassadors have provided us 'Your Voice' global employee optimise to support abruptly changed our Going the extra mile resilience” sessions. with a very useful measurement engagement survey our core purpose colleagues’ ways of working. We introduced our GEM system this year. In addition, We quickly equipped colleagues We focused on training line and ambitions at programme to recognise in November we launched our with the necessary technology managers to support them in Puma Energy. colleagues who were Going the first global employee to enable them to continue to leading and managing remote 75% Extra Mile to help and support engagement survey called work from home and actively teams. Leaders have been Engagement their colleagues, communities, 'Your Voice'. It gave us valuable encouraged the use of a range encouraged to carry out regular customers and stakeholders in insights into what matters to of collaborative tools. wellbeing checks with their dealing with the pandemic. It our colleagues and how they teams. Many markets have was a great way to shine a light In partnership with our rate us in these areas. This in distributed care packages to 89% on colleagues who were going Communications team we turn will enable us to develop their colleagues, for example Participation above and beyond in living our re-invented communications

PUMA ENERGY ANNUAL REPORT 2020 OUR PEOPLE & CULTURE one market distributed heaters We focused on three Ps: management skills and provided by Future Energies; of supporting, developing and for colleagues working at home people, platform and leadership skills; and the the platform and delivery encouraging their people. On during winter� productivity. Linked to that, ‘PumaWay’ of learning. Our move to flexible method is provided by People this front, we believe we are we had a number of different working, catalysed by & Culture; and Commercial well positioned and are actively Emphasising wellbeing PumaWay is the home to workstreams including the will spearhead the selling to reinforcing our attractiveness More and more, we are learning initiatives specifically COVID-19, is helping us office of the future and commercial customers. to top talent. emphasising wellbeing as aligned to our business model reinforce our culture collaboration tools. part of our culture� It is of and designed to support of being customer-led The quest for the best talent We have, for example, been paramount importance to us� In Panama, we are piloting a our drive for competitive With the technology revolution, working with the Remuneration We want our people to be design for the office of the advantage. Two key examples and performance climate crisis and this year’s Committee this year on healthy and happy, not least future, repurposing the office here are the development of driven. Rather than pandemic all coming together, introducing changes to because if they are they will be into a space of connectivity our Commercial Academy thinking primarily now more than ever, potential strengthen talent attraction in good shape to look after our and creative problem-solving. and Leadership Development about how much time colleagues are looking for and retention. We started to customers and the organisation programmes. companies with a clear sense of benchmark senior management Drawing on all our extensive as well as each other� To this we spend and where purpose, a strong commitment roles to ensure we maintain exploration and insights, we The impact of COVID-19 saw end, we launched a Company- to making a positive difference competitive advantage within 74 plan to evolve our ways of us reviewing our approach to we spend it, we are wide wellbeing campaign last in the world and a real culture the market place to support working over 2021. learning and development as putting the emphasis year� Find out more in our we tilted our delivery approach health and safety section on Learning and development on excellent output more towards digital and virtual page 76� Our continuous learning and platforms. Examples include the from wherever that development focuses on Making the most of Puma Learning speaker series, works best. enabling the delivery of our flexible working the Puma Learning pop-up customer-led business strategy We set up a working group sessions, the Accelerated and plans and we have early on in the crisis to look Leadership Development now created a capability at how we could support the programme and online virtual roadmap to drive our priority immediate need for colleagues Commercial Academy courses. segments namely retail, to work from home and also to commercial, Infrastructure Training our people on look ahead to explore what and Future Energies. Future Energies a flexible working policy may Our Future Energies, look like� The group included We have created a Commercial and People people from across the contemporary digital learning & Culture teams have been functions and business lines� platform and offer with an working together to develop emphasis on licence to operate training specifically to grow the skills such as HSSE, compliance, Future Energies business. It is information technology; general a great example of the new US$1.4M business skills including spirit of One Puma partnership Invested in learning technical skills, business and development in action. The content is

PUMA ENERGY ANNUAL REPORT 2020 OUR PEOPLE & CULTURE retention, and introducing Diversity Promoting inclusion Key achievements • A new job architecture Looking ahead a Long-Term Incentive and diversity Being inclusive is a core feature programme evaluates the job Looking ahead, our immediate Programme to ensure strong Total direct Puma We see inclusion and diversity of our Puma Energy culture. and its size without bias and priorities will be around Energy employees company, colleague and as a true source of positive Key achievements on this not referencing the job holder. supporting and further shareholder alignment in progress and performance front include: optimising the effective and Puma Energy Women’s the long term. differentiation and are now newly organised Downstream, • Our CEO hosts quarterly Initiative Network, WIN@ anchoring this into our Infrastructure and Future Attracting future energisers Town Halls at a global level Pumaenergy, plays a key role in Female Environment, Social and Energies business units and We want to ensure a strong Male and our regional leaders helping women throughout Governance Framework (ESG) the global functions in realising offer for the kinds of people host monthly Town Halls for Puma Energy to accelerate the and company approach. Our the benefits of our new we are looking for. Talented all colleagues to join in a development of their vision is to create conditions to operating model. team players who are curious, two-way conversation. capabilities and leadership empower our people with courageous, energetic and Senior management • Our Puma World intranet qualities, so they can fulfil their We will be working to ensure different backgrounds to performance-driven. Future lets colleagues know what's potential. The network also the organisation has the right connect, grow and belong. colleagues who are happy to going on and invites feedback provides support, including capability to excel in energising We want to attract and retain push the boundaries and see and opinion. mentoring opportunities so that communities and achieving our 75 the best diverse talent to change as an opportunity women have the confidence ambitious growth and value Female work together to innovate, • We have updated our Code rather than a threat. Above all, to grow and take on more creation targets. Male create competitive advantage of Business Conduct, which people who are galvanised and stretching assignments. In through diverse thinking so encourages speaking up, We want to ensure that we find deep meaning by the addition, WIN@Pumaenergy we energise our communities. being inclusive and are ‘Fit For Growth’ – in great opportunity that drives us all engages with the wider fair practices. shape to leap forward at pace. forward at Puma Energy – Executive Committee Our approach is to create an community and local women’s • In 2020 we consulted and This is so we can truly fulfil our energising communities inclusive and respectful initiatives where we operate, involved colleagues on a potential to give all our around the world. working environment and in the spirit of energising number of topics such as customers the best possible embed a philosophy of “we all communities and inspiring Formalising succession plans designing our Colleague products, services, solutions win together”. women everywhere. We are formalising our Female Value Proposition framework, and experience, to energise succession plans with a priority Male We ensure equal opportunities flexible working practices Respecting human rights communities as much as on those roles linked to our are available throughout the and wellbeing principles. We operate with a culture of possible, and in so doing, customer-led strategy and colleague lifecycle. • We have introduced a global respect for human rights not just to achieve our ambitious business plan execution and because it is the law, but because growth goals. Given our footprint in high- e–training platform for all will be communicating these it is the right thing to do. As potential countries around the colleagues to access. to colleagues, ready for when part of our Environmental, world, we have a naturally • We have ensured the new internal roles or new roles Social and Governance (ESG) diverse workforce in terms of variable compensation bonus become available. commitments, we are shaping race, ethnicity and nationality. framework is consistent and our new policy approach transparent, with clear upfront to human rights, including agreed KPIs. modern slavery.

PUMA ENERGY ANNUAL REPORT 2020 Overview We are looking to go HEALTH AND SAFETY Lost Time Injury Frequency Rate (LTIFR)* further in embedding our one best way of 2020: 0.47 We set, live up to and continuously HSSE excellence look to improve on the highest health 2019: 0.74 across Puma Energy, and safety standards. This is a core Total Recordable Case Frequency with our vision of zero part of staying true to our purpose Rate (TRCFR)* harm to people and the environment. of energising communities. 2020: 0.88

2019: 2.9 Living up to world-class Responding quickly and standards effectively to COVID-19 *On a constant perimeter basis, excluding our Australia fuels business Strong health and safety In 2020, we moved early in (from which we divested in June performance is fundamental response to COVID-19 – putting 2020), we saw a reduction in our focusing on safety of were working they still felt We worked hard throughout to our successful, responsible business continuity plans Lost Time Injury Frequency Rate employees and customers alike. connected to the Puma Energy the year to ensure that all the (LTIFR) from 0.74 to 0.47. Based on 76 operations and our sustainable, (BCPs) in place as soon as these same parameters, for TRCFR, family. Moreover, in certain appropriate mitigating steps We are proud to say, through our profitable growth. To this end, the pandemic started to we achieved 0.88 compared to 2.9 communities our guidance were taken to support and in 2019. collective efforts, everyone in we set and live up to world- make sure we mitigated the was used more widely to help protect our customers and Puma Energy worked together class health, safety, security and risks as effectively as possible. inform people about what to colleagues from COVID-19. By Work-related employee and directly closely and quickly to do the environment (HSSE) standards The impact of the pandemic do to stay safe. In keeping implementing and adhering to supervised contractor fatalities right thing in the face of this throughout Puma Energy. was felt at different times with the Puma Spirit of strong COVID-focused health 2020: 0 unprecedented global threat. and safety measures across the Every colleague is bound by around the world and so by 2019: 0 energising communities, our HSSE policies and we February we had established We implemented a rigorous we not only raised awareness Group, we have managed to expect our business partners, a crisis response, with crisis and intense campaign of through various campaigns keep our retail sites, terminals suppliers and contractors to teams in each region. During Highlights engagement and but also donated fuel and and, where required, our offices, implement them along the March, we implemented • Responding quickly communication to ensure sanitisers to essential services operating safely throughout the value chain. consistent global policies and effectively to the everyone was informed of in different countries. pandemic. This has enabled us and guidance across the essential safety measures such to keep serving our customers COVID-19 pandemic Over the course of the whole Group. as social distancing and mask- around the world, at times and • Continuing to embed pandemic, we have refined wearing. Throughout the in places when others have been Regardless of the inevitable health and safety further and improved our COVID-19 pandemic we have maintained unable to. variations in national policies communication, for example across Puma Energy the engagement and and approaches across our by bringing in an increasing • Delivering significant communication, for example footprint, we consistently emphasis on more direct improvements on key through our frequent “Puma Progress against ESG framework applied the same strict one-to-one communication health and safety measures Energiser” communications and commitments measures everywhere – always in addition to digital which set out the details of our 9.1, 9.2, 9.3 meeting, if not exceeding, communication response and aimed to ensure government regulations, for all colleagues. that wherever our colleagues

PUMA ENERGY ANNUAL REPORT 2020 HEALTH AND SAFETY

Making health and safety part Getting more granular ESG journey of partnering with was geared more to our terminal providing ongoing training to of our everyday culture Last year, we introduced entities that share the same and refinery infrastructure. all our sites, including dealers. Our HSSE strategy continues Throughout the detailed KPIs not just for all our world-class safety standards We are putting in place the Ensuring consistency across to focus on making health pandemic, we have regions, but also on a country- as ourselves. same HSSE foundation across our business and safety an active part of by-country basis. This year we focused on keeping Achieving significant our whole retail network, Consistency is key – we want everyone’s day-to-day culture went further in resetting our our employees and improvements including dealer-owned and the same high HSSE standards in Puma Energy. This applies KPIs, so we can monitor and We track standard industry operated sites. The aim is to and approach throughout to our employees, to any their families safe and measure our safety KPIs, such as the Lost Time have consistent, measurable Puma Energy and the same contractors working with us performance with greater well, on continuing Injury Frequency Rate (LTIFR), and auditable, HSSE metrics, intense day-to-day focus on and to everyone who visits and detail, and in turn make more to deliver for our the Total Recordable Case in order to manage our HSSE high HSSE performance. lives or works near our sites. precisely-informed decisions Frequency Rate (TRCFR) performance across our We extend our commitment commercial customers, and improvements. Embedding a culture of and fatalities, and empower network and put in place further into communities, for and on staying open reporting incidents, near We now split our KPIs between our teams across the countries action plans to improve quickly example, through our long- misses and non-compliance for our retail customers Puma Energy colleagues and to continuously make and effectively. running road safety campaigns. is fundamental. It helps prevent contractors, across for example, safety improvements. 77 and communities. Through 2020, we continued major incidents, and provides Improving our HSSE road traffic accidents and spills. We’re proud to have On a constant perimeter basis, to roll out the updated system quicker, richer information performance is a commitment We also split our road traffic excluding our Australia fuels across our retail network, to guide improvements. we make every day. For played our essential incidents KPI into light vehicles business (from which we engaging with teams and a number of years, we have and heavy vehicles. role safely and well. divested in June 2020), we saw been consolidating our HSSE In Retail, we have separate KPIs a reduction in our Lost Time processes and reporting for company-owned dealer- Injury Frequency Rate (LTIFR) culture. We encourage our operated sites, dealer-owned from 0.74 to 0.47. This people to step up and report dealer-operated sites and represents a more than 30% all HSSE incidents, to embed company-owned company- improvement in performance. safety in people’s day-to-day operated sites. activities as a bedrock Based on these same foundation of our work. With this greater granularity parameters, for TRCFR, and clarity, we can be far more we achieved 0.88 compared At the same time, we have rigorous and precise in to 2.9 in 2019. improved the reliability and analysing HSSE data, targeting accuracy of our information, Focusing on retail improvements and assessing to learn from that data and In 2019 we started developing their impact. The whole cycle of share that learning across the and implementing a specific continuous improvement – a organisation. This creates safety management system for key characteristic of our strong a virtuous circle of learning, our Retail business. It builds on HSSE culture – gets a big boost. using, and learning again, our established system which This positions us well on our to keep on improving.

PUMA ENERGY ANNUAL REPORT 2020 HEALTH AND SAFETY

We reinforce this culture example, all Puma Energy in, for example by carrying out our Be Puma Safe campaign – and our customers; property through processes and colleagues who drive light road safety awareness raising focusing the rules specifically and the environment. This is our practices such as our Five vehicles are encouraged to in local schools. on truck drivers� We are We are targeting a Vision Zero goal, which will Golden Rules and monthly install the Woocar app on their pleased to say that some of our step change in shifting guide everything we do. We have focused on improving HSSE reporting on even the smartphones to monitor their hauliers are using Be Truck Safe the reporting culture, increasing HSSE behaviours. It will require embedding our smallest incidents and near- driving performance. for their own training� the level of detail, knowing strong health and safety culture misses across our countries. The emphasis is on In addition, we have introduced more and more country by Supporting wellbeing in a collectively striving even more strongly throughout Continuing to prioritise a compulsory truck driver app country where things are tough year for all our people Puma Energy. It will mean making road safety for all our hauliers, so their happening and having country The pressures of having to live for zero harm to it an even more active part of We continue to prioritise road driving can be monitored in targets. So we can see, for with the COVID-19 crisis and colleagues, contractors people’s everyday lives, so that safety. In 2020, we set a real time. example, that we are improving also the demands of having to and communities; everyone truly owns health and stretched road safety target in terms of truck accidents. work from home were key safety. It will involve making more Our long-running Be Puma Safe business partners of 0.05 severe accidents per themes informing our wellbeing and better use of leading campaign is designed to raise We continued with the major million kilometres driven and initiatives in 2020� We put in and our customers; indicators – more granularity in awareness about road safety truck safety campaign launched achieved 0.06, compared to place additional measures to terms of near-misses, 78 and help influence and change last year targeting the drivers: property and the 0.10 in 2019. help people on both counts� nonconformances, unsafe behaviours. This campaign Be Truck Safe. Including environment. These were integrated into practices or conditions – so we We have been applying smart takes the message out targeted workshops and online the company-wide wellbeing can put in place more deliberate technology solutions to help beyond our operations to the training, Be Truck Safe builds campaign we launched in 2019� and targeted preventative improve road safety. For communities we live and work on the eight golden rules of This campaign raises awareness measures going forward. and provides help and support Vision Zero is our unequivocal on a number of issues, including ambition and we are looking malaria, drug and alcohol abuse, forward to making it real. lower back pain, hazards, hydration and heat illness and workplace ergonomics� Find out more in our People & Culture section on page 71� Looking ahead Looking ahead, we are targeting a step change in shifting HSSE behaviours� The emphasis is on collectively striving for zero harm to colleagues, contractors and communities; business partners

PUMA ENERGY ANNUAL REPORT 2020 Overview We continue to ENVIRONMENT Carbon emissions Scope 1 focus on minimising our environmental 2020: 393,140MTCOe We want to run our business in the most impact and are environmentally friendly way possible. 2019: 259,168MTCOe* increasingly looking We see this as a critical part of our (*Restated from 63,143MTCO₂e) to help our customers Scope 2 purpose and a long-term task where and communities we keep improving year-on-year. 2020: 52,043MTCOe to transition to 2019: 87,849MTCOe sustainable energy solutions. Scope 3 Stepping up our focus on Living up to our principles 2020: 200,474 MTCO₂e the environment and commitments GHG intensity With the introduction of our Our framework sets out 10 key environmental, social and principles with accompanying 2020: 12.8kg/m governance (ESG) framework commitments that guide our our data gathering, to create are generating as a company, expertise and investment on 79 this year, we stepped up and Group-wide actions going 2019: 9.5kg/m* a rich source of information which we report on quarterly. creating sustainable and formalised our focus on our forward. Four of the principles (*Restated from 3.7kg/m³) to set KPIs and target This will be the foundation for profitable energy solutions for more effective environmental KPIs and improvement actions our own business and for our environmental responsibilities have the environment at their We have improved our ability to and impact. This aspect of ESG heart: invest in technology measure and verify our GHG emissions improvement actions in coming years. customers and communities. is a natural evolution of our and solutions to support the in 2020. With better data quality and going forward. integrity, we are now in a position to We have begun to work on The high-potential markets we longstanding drive to be as equitable energy transition; restate our 2019 figures using 2020 Gathering full data on Scope 1 gathering data for our most operate in are growing fast but energy efficient as possible, to reduce greenhouse gas as a base year. and Scope 2 greenhouse significant Scope 3 emissions. have not as yet benefited in any reduce our carbon emissions, emissions across our operations gas emissions great measure from affordable, to use natural resources such by 2030; target net zero Spills above 160 litres Generating renewable energy In 2020, we implemented full reliable, sustainable energy. as water responsibly and to environmental loss; and connect 2020: 27% reduction compared to 2019 We are investing in solar data gathering for our Scope 1 We aim to change this for manage our waste well. communities to a secure, reliable installations in Puerto Rico, Highlights and Scope 2 greenhouse the better by playing a leading and sustainable power supply • Focusing on our Ghana, Papua New Guinea, emissions. In past years, we role in the transition across and unleash the transformational environmental principles Nicaragua and Honduras. reported a broad estimated these markets to cleaner, opportunities this brings. and commitments This will enable us to improve figure based on volumes sold. greener energy. energy efficiency, and reduce Living up to our newly • Increasing the breadth We now have specific data for environmental impact and We are in discussions with defined ESG principles and and depth of our data on all facilities, buildings, cars, reduce costs. a number of our commercial commitments is a multiyear greenhouse gas emissions everything that could create customers about how we can Progress against ESG framework task, where we will build our • Developing sustainable a GHG emission. As a result, It is the first stage in a new help them develop renewable and commitments positive impact over time. energy solutions for our we now have consistent, era for Puma Energy where 5.1, 5.2, 6.1, 6.3, This year, we focused on business, customers detailed data on the we focus a great deal of 6.4, 6.5 broadening and deepening and communities greenhouse emissions we

PUMA ENERGY ANNUAL REPORT 2020

ENVIRONMENT We will continue to focus on minimising energy solutions for their tanks close to where fuel is our environmental businesses, and we see this as needed to reduce the emissions an exciting, critical and growing caused by vehicles travelling impact. And we will part of living our purpose to long distances. For retail work closely with energise communities. customers, fuels such as our our customers and Pumamax Diesel and Pumamax Minimising our use of energy communities to help Premium Unleaded offer We have a number of initiatives superior economy, emit lower them move forward around the world to improve levels of exhaust hydrocarbons energy efficiency. These include in making the best and carbon monoxide and installing LED lights at sites use of sustainable help maintain excellent and reducing after-hours work, operational performance. We energy solutions. for example. continue to focus on our own In addition, for any new power operations to reduce our Scope project we install controllers on 1 and 2 emissions. Equally, we 80 motors so we minimise closely monitor Scope 3, value consumption – increasing chain emissions to inform future energy efficiency, bringing costs strategies with third parties. down and reducing emissions. and proactive approach we now separately identify the Looking ahead Updating our to managing our spills related to road traffic and In 2021, we aim to introduce Reducing carbon emissions environmental policy environmental impacts. site spills. By clearly identifying KPIs informed by the deeper Our improved country-by- We have updated our measurable site spills we can insights from the environmental The rollout of our Puma Energy country quarterly reporting environmental policy for the tackle any operational issues data we are gathering. Environmental Management provides greater granularity of Group using ISO 14001 and are associated with the spills, Systems (PEMS) will continue We will continue to focus on information that enables us to rolling this out throughout preventing any major incidents through 2021. minimising our environmental look for better ways to reduce Puma Energy. It will help us to and improving our operational impact. And we will work our greenhouse gas emissions. understand our environmental Reducing spills performance. closely with our customers Our carbon emissions in 2020 risks in every aspect of our In line with international Managing water and and communities to help were 28% higher than our 2019 business and facilities, so we standards, we target spills above waste responsibly them progress in making corrected figures, largely driven can implement mitigations 160 litres. In 2020, we continued We seek to manage water and the best use of sustainable by improved data collection to manage those risks across to reduce our spills – bringing waste responsibly throughout energy solutions. and quality. greenhouse gas emissions, them down by 27%, following Puma Energy. We do not report water, land, biodiversity and our 15% reduction in 2019. In the We deploy a number of figures on these issues as they waste. This is part of our spirit of our HSSE-wide strategies to reduce our carbon are not material in terms of our ongoing commitment to commitment to gain more footprint. We locate storage business operations. strengthen a disciplined granularity on our performance,

PUMA ENERGY ANNUAL REPORT 2020 Overview

COMMUNITIES The Puma Energy Foundation • US$1m spent in philanthropic activities Our purpose is energising communities • 7 programmes and around the world we focus on • 13 post-disaster relief and making a lasting positive difference COVID-19 operations • 13 countries of action to the communities we live and Total donated by the work with. Foundation and staff fundraising for COVID-19 action: circa US$145,000 Making a positive contribution security of fuel supply for In the countries where we businesses, so they can keep operate we play a key role in operating successfully and in enhancing local prosperity. We turn, contribute to local wealth create jobs and opportunities and prosperity. for local people and businesses; 81 Prioritising our investments around 90% of our employees To help us prioritise the long- are recruited locally, which in term investments we make in turn helps communities grow local communities around the and thrive. Our retail sites world, we have a Corporate provide essential services for Social Investment Policy. local communities, from a Supporting communities In 2020, across both our Group It enables us to focus on welcoming fuel stop to an We have two core routes to activities and Foundation projects with the greatest We believe we thrive attractive store to buy basics or supporting the communities we initiatives, the focus has been reach and deepest impact. enjoy a meal. We have a strong live and work in. First, as a on responding to COVID-19. when the communities track record of ensuring Our global Corporate Social Group, we invest directly in Much of the energy was we serve thrive. Investment Policy guides communities around the world devoted to help communities That’s why energising how we contribute to society in line with our global policy deal with the many critical and community, beyond our and pillars. Second, in needs created by the global communities and good regular business. It is based partnership with the Puma pandemic. Moreover, our corporate citizenship on five pillars: Energy Foundation our colleagues truly stepped up to is not just a duty, • Road safety awareness colleagues and offices provide the demands of the crisis by support for communities getting involved in many it is an opportunity • Environment and conservation through fundraising and different ways to help their for everyone. Progress against ESG framework • Education and commitments volunteering with various local communities. • Licence-to-trade initiatives charities and programmes. 8.1, 8.2, 8.3, 8.4, 8.5 • Emergency first response

PUMA ENERGY ANNUAL REPORT 2020 COMMUNITIES

Group-led community doing what we could to initiatives focused on provide these essentials for COVID-19 people and communities in The feeling of seeing Through the year there were acute need. We also looked someone receive a many different initiatives, large to offer less essential but, little help through us is and small, across the Group nevertheless, welcome, focused on supporting products and services, indescribable; it makes communities in the most such as free coffee for us happy to know that effective way during the emergency responders. they are benefiting at pandemic. We listened to the In Asia, we worked with the that moment from communities in which we National Level Central operated and provided the something good. Committee for Prevention, most practical help where it Control and Treatment of What keeps me doing was most needed. COVID-19 in Myanmar*, it is to see that no In the Americas for example, providing donations to matter how much 82 we donated grocery bags for support initiatives helping we do, a lot more is schools and communities to minimise the impact of Helping vulnerable children close due to COVID-19, the regular contact with parents, still to be done. where we knew people were in the pandemic. And in Papua in Angola children faced real difficulties. for example sharing desperate need of the basics to New Guinea, we focused For a number of years, the In response, Pumangol recommendations on Mónica Silva, live on. With lockdowns, many on donating fuel for the kindergarten in Benguela, provided food parcels for education and key Head of Corporate Social people faced no jobs or income emergency services, from the Angola, funded by Pumangol the parents of the children preventative measures, Responsibility programs to support themselves or their water police to the St John and managed by the DT and ran a health clinic to meet as needs evolve and arise. in Angola families and we stepped in to Ambulance Association. Foundation, has provided the immediate health needs “All the children have parents help on this front, for example education, sustenance of those in the community. In Continuing to focus who are unemployed or in Guatemala. Across the and medical care to 100 response, Pumangol provided on road safety working informally, with no region, we also donated fuel underprivileged three and food parcels for the parents We continued to prioritise assured income,” says Mónica and lubricants for key workers four-year-olds. This year, of the children to meet the road safety, engaging with Silva, Head of Corporate and organisations involved in COVID-19 meant the children immediate needs of those communities around the Social Responsibility the emergency response. and their families were even in the community. Children world through our programmes in Angola. more vulnerable. Ordinarily, were also given medical In Africa too, we provided fuel established and popular “COVID-19 and the swift the kindergarten provides check-ups, which is part of for the emergency services; Be Puma Safe campaign. lockdown that was imposed three meals a day for each the kindergarten programme. food for communities in need; One of the key strands to nationally devastated any child together with baths Kindergarten teachers and and water as well, for example this initiative is our work work opportunities and has and oral hygiene alongside keepers continue to be in Luanda. We also donated with schools, where we go made their situation worse.” personal hygiene products and in and raise the road safety education. So when it had to mobilised, maintaining *We have been providing support for communities in Myanmar for several years, medicines. We focused on awareness of students. and the activity described here predates the current situation in the country in 2021.

PUMA ENERGY ANNUAL REPORT 2020 COMMUNITIES

Working together with the In Myanmar*, the Puma Energy Puma Energy Foundation Foundation works with AIP to help communities Puma Energy people Foundation on comprehensive As part of its mission to all over the world have road safety interventions support trusted organisations raised funds, donated targeting the country’s most working on improving time and gone to great vulnerable road users, including livelihoods and making child passengers and young, meaningful changes to lengths to help those inexperienced drivers on people’s lives, the Puma Energy in need. The Puma motorcycles. The aim is to Foundation has worked in 2020 Energy Foundation has prevent road crash injuries more intensively than ever with and fatalities. To this end, people and offices across been at their side to the programme focuses on Puma Energy as we all rose help them have the improving road safety through to the challenge of the global greatest impact by four mutually reinforcing pandemic. The Foundation components: school-based 83 and Puma Energy staff forged providing the distribution of quality helmets strong bonds while working necessary resources and road safety education to together to help communities and expertise. students and teachers; public in need. It has set a standard awareness campaigns; road for their future action to Vincent Faber, safety educational workshops energise communities together. Executive Director, delivered at universities, The dynamics created in 2020 Puma Energy Foundation NGOs, governments, and can only grow further and private corporations; and the stronger in the years to come. development and launch of a road safety network and youth empowerment activities.

*We have been providing support for communities in Myanmar for several years, and the activity described here predates the current situation in the country in 2021. Image opposite: AIP Foundation, Myanmar

PUMA ENERGY ANNUAL REPORT 2020 COMMUNITIES

Responding to COVID-19 Foundation donated a total of amount raised, which was used The Puma Energy Foundation US$200,000 to ensure that to purchase much-needed food worked hand-in-hand with North Star Alliance could and personal protective US$145,000 our people in offices around continue to provide its usual equipment (PPE) for the Total donated by the the world to understand the healthcare assistance, as well as patients. The Johannesburg Puma Foundation and staff local needs of communities referral management of critical office also supported Children fundraising for COVID-19 action and plan and implement cases of COVID-19. of the Dawn, an organisation targeted support in response caring for vulnerable and In Johannesburg, the to COVID-19. orphaned children in some of Johannesburg Charity the poorest areas in South The focus was on helping those Committee fundraised for their Africa. Employees donated most in need in the most local charity of the year, the US$4,800 which the effective way. Quarantine and Impumelelo Self-Help Centre, Foundation matched. lockdown meant that lots of a facility for quadriplegic and people had very little or no paraplegic people. The In El Salvador, the Foundation income, and as a result of the Foundation doubled the donated US$15,000 to the 84 need to isolate, emergency movement “Unidos somos mas” shelters and urban social care that helps people in need hit by had to close temporarily. So the COVID-19 crisis and tropical providing food and essentials storm Amanda. became a priority. In Panama, the local office In Guatemala, the local office In Australia, the local team in Here are a few key highlights: supported the Panama Food organised a fundraising Brisbane fundraised for their Across Africa, North Star Bank. Employees organised a campaign to buy meals for the Charity of the Year, the Starlight Alliance works to provide fundraising campaign and the healthcare workers and people Children’s Foundation, to help healthcare access and services Puma Energy Foundation working on the COVID-19 them cope with their funding to mobile communities (such as pledged a donation; together response in three local gap. Starlight mainly raises truck drivers) and remote they raised US$10,895. hospitals. The Foundation funds through events, which populations. With clinics along matched the funds raised by were unavoidably disrupted by In Puerto Rico, the Foundation the main transport corridors of the staff for a total donation COVID-19. The Foundation supported United Ways of ten sub-Saharan countries, the of US$10,000. matched the funding and Puerto Rico’s “Bags of Hope” NGO is perfectly placed to altogether, circa US$20,000 campaign with a donation of In Honduras, the Foundation provide information and was raised for Starlight. US$20,000. The campaign donated US$10,000 to the medical services to the truck distributed food and hygiene Honduran Red Cross to drivers and communities they Image top left: kits to disadvantaged support the local COVID-19 connect with during the Cruz Roja Hondurena, Honduras communities during the response, including improving Image bottom left: pandemic. The Puma Energy COVID-19 pandemic. ambulances’ radio equipment. North Star Alliance, Sub-Saharan Africa Foundation and the Trafigura Image top right: Unidos Somos Mas, El Salvador

PUMA ENERGY ANNUAL REPORT 2020 FINANCIAL REVIEW

In an unprecedented year characterised Serving our customers in a Receiving support from our core challenging environment shareholder suppliers 3 by great uncertainties and volatility After a strong start to the year, the pandemic- In order to mitigate the impact of COVID-19 20,118K M resulting from the global COVID-19 related lockdowns in the markets we operate related disruptions to demand and the impact Sales volumes in had a significant impact on our sales volumes of a volatile oil price environment, our two core pandemic, we continued to serve our in the second quarter of the year, bringing shareholder suppliers agreed to an interim price customers with the reliable supply of them 18% below the same quarter of last year adjustment under their supply arrangements. on a comparable perimeter basis, recovering This interim price adjustment resulted in US$82m US$533M fuels at competitive prices. somewhat during the third and fourth quarters. of support that helped us minimise the impact of EBITDA (excl IFRS 16 and unfavourable trading conditions in the second During the full year of 2020, we sold 20.1 million m3 including discontinued quarter of the year. of product – 10% less than the previous year. operations) With the closure of airports and cancellation of Maintaining stable EBITDA flights around the globe, our aviation sales were One of the financial indicators we closely track impacted significantly, with volumes 55% below is our EBITDA (earnings before interest, tax, US$143M 85 the prior year. Excluding aviation sales, our depreciation, amortisation and impairment). Organic Capex volumes remained relatively resilient, showing In our calculation of this indicator, we exclude a 6% reduction compared to the prior year. the impact of the IFRS 16 implementation but we do include the contribution of discontinued All of our terminals remained operational operations (e.g. the divested Australian fuels throughout the year – facilitating 14.5 million m3 US$355M business). As a result of the increasing unit of throughput of fuels for our customers. Proceeds from the margins, which were underpinned by core divestment of operations, Right sizing our cost base shareholder supplier price support in Q2, and assets and investments While making sure that we were able to address reduction in fixed costs, our EBITDA remained demand recovery in the third and fourth quarters broadly stable in 2020, at US$533m, compared of the year, we continued to right size our cost to US$530m in 2019, despite the COVID-19 Through the year we base across the Group. Our total fixed cost related reduction in volumes. Excluding also the amounted to US$533.4m for the year compared limited contribution of the divested Australia navigated the challenges to US$598.7m for the previous year. We are fuels business and the divested Paraguay to deliver a solid financial confident that costs are sustainable at this level, operations from our 2019 results, our EBITDA for performance while post the sale of our Australian commercial and 2020 would be US$524m, compared to retail fuels business. US$510m in 2019. continuing to focus on creating a strong Andrew Kemp, Chief Financial Officer foundation for our growth and success.

PUMA ENERGY ANNUAL REPORT 2020 FINANCIAL REVIEW

Applying impairment charges and mainly focused on investment in our retail Deleveraging and maintaining strong liquidity As a result of the global pandemic and the networks. This included constructing new retail In April 2020, despite a difficult credit related economic uncertainty, we decided to US$242M stations and upgrading existing ones for an environment, we successfully refinanced our apply impairment charges to tangible and Impairment expanded offering and improved customer one-year revolving credit facility in excess of intangible non-current assets in two countries, experience. Our total investment in Downstream US$310m with two one-year extension options. Puerto Rico and Ghana, for US$96.2m and operations, including retail, amounted to For the remainder of the year one of our US$90.0m respectively. We have also posted US$113.5m. We also continued to allocate priorities was to continue to service our debt and additional US$55.7m of impairment charges as US$245M considerable amounts to maintaining and deleverage our balance sheet. The results of our fair value adjustments on assets that are part of Cash flows from operations developing our world-class network of major efforts are reflected in the reduction of our gross the ongoing divestment programme of non-core terminals as part of the new Infrastructure debt to US$2,737m at the end of 2020 from operations and some minor asset impairments. business unit. Investments in renewable energy US$3,027m at the end of 2019. Net of cash and generation projects managed by our new Future Streamlining our portfolio inventories our debt amounted US$1,349m, 2.5 Energies business unit were limited in 2020, but We continued our efforts to streamline our allowing for a net debt to EBITDA ratio of 2.5 Leverage ratio with a clearly defined project pipeline, we expect portfolio to allow us to simplify our operations, times, in line with the prior year and well below 86 (Net debt/EBITDA a healthy ramp-up in 2021. to focus on core assets and contribute to the 3.5 times limit set by our debt covenants. excluding IFRS 16) deleveraging our balance sheet. As announced Cash flow We succeeded in reducing our net debt and in December 2019, at the end of June 2020 we Cash flow from operations remained positive maintaining our leverage while also ensuring divested our Australian commercial and retail but the cash generated in our EBITDA was partly that the business preserved strong liquidity in fuels operations to Chevron, allowing for a net offset by unfavourable working capital a challenging environment. Our cash balance at cash inflow of US$274.2m. Besides this movements driven by COVID-19 related price the end of the year was US$507.5m, compared significant divestment classified as discontinued movements and demand disruptions. We have to US$619.0m at the end of the previous year. operations in our financial statements, we temporarily adjusted our inventory to the We also maintained our focus on the portion of successfully divested our aviation refuelling reduced demand, followed up with our our debt maturing in 2021. Specifically, we made operations in Russia and and we have also customers on their payments and temporarily several repayments throughout the year on our received the outstanding amount of US$45.4m adjusted payment terms with our suppliers. three-year term loan maturing in May 2021. As a related to our Paraguay activities divested in We continued our As a result, we have generated US$245m cash result of these repayments totalling US$300m, 2019. We expect to continue streamlining our from our operations (2019: US$794m). Cash flow efforts to streamline the outstanding portion of the term loan stood portfolio with further transactions in 2021. from investing was also positive at US$203m our portfolio to allow at US$550m at the end of 2020. Another (2019: US$32m) as the proceeds from Maintaining capital discipline prepayment of US$50m occurred in February us to simplify our divestments continued to offset our focused We sustained our focus on efficiently allocating 2021, bringing down the total amount operations, to focus capital expenditure programme. Our cash flow our capital investments in the businesses that outstanding for this term loan to US$500m. from financing activities of US$(659)m have demonstrated the highest levels of return on core assets (2019: US$(738)m) continues to reflect our and that allow us to grow in line with our and contribute to declared aim to repay debt and deleverage customer-led strategy. At US$142.5m, our capital deleveraging our our balance sheet. expenditure was slightly higher than last year balance sheet.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT Applying our risk management principles We align our risk management closely to We have a clear and established set of risk management principles our purpose and strategy and the world which we apply throughout the business: we live and work in. We see this a core part of being a dynamic and responsible high-growth business committed to Governance energising communities. and culture

To this end, we take a rigorous Our Risk Management aligned with strategy; we put and robust approach to Framework enables us to our strategy into practice managing our risks, including deploy our mitigation strategy, through our business ensuring that we not only have helping us deliver financial objectives, which serve as a Information, strong structures and processes targets, enhance our reputation, basis for identifying, assessing, Strategy and 87 communication in place but also a clear and safeguard our employees and and responding to risk. objective-setting up-to-date view of our current assets, and protect future and reporting Performance risk landscape. financial security. We need to identify and assess Ensuring strong risk Governance and culture risks that may affect the governance Governance sets the Group’s achievement of our strategy Ensuring Our risk governance structure tone, reinforcing the and business objectives. Risks is designed to ensure we importance of, and establishing are prioritised by severity and strong risk continue to provide clear oversight responsibilities for, we then select the appropriate governance business ownership and our risk management. Culture risk responses. The results oversight, helping us make the describes our ethical values, of this are reported to key right decisions at the right time. desired behaviours and the risk stakeholders. Regional and Country Risk understanding of risk in our Review and revision Champions provide support to business entities. By reviewing the performance leaders in embedding the risk Strategy and objective-setting of our business entities, the management programme. They We combine enterprise risk Group can consider how well Review and also provide risk advice, as well Performance management, strategy and the risk management revision as coordinating, facilitating and objective-setting during our components are functioning periodically reviewing the risk strategic planning process. Our over time, against a backdrop management process. risk appetite is established and of what can be substantial changes, and assess what revisions are needed.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Information, communication Continuing to enhance Puma Energy this year, we have Governance and the ‘Three lines of defence’ and reporting our approach reorganised and sharpened our Risk management requires a We continue to enhance our focus on the most important Risk Management is a proactive process that is an integrated part of continual process of obtaining approach to risk management issues and activities to live the Internal Control Environment Framework – ‘Three Lines of Defence’: and sharing necessary in the interests of the Group our purpose and deliver on information, from both internal and all our stakeholders. our strategy. and external sources. This This year we further To arrive at the 18, we worked Governance Oversight information flows up, down and strengthened our structure hand in hand with the business across the organisation. with the creation of a separate lines and global functions to Rigorous and robust Enterprise Risk Management make sure we reflected all the Risk, Ethics and risk management function. Formally part of the key issues and changes across External Audit Senior Management Audit Committee Assurance Committee Our Risk Management Internal Audit Team, it is now Puma Energy. As a result, we Framework is structured around a distinct function streamlined redefined and consolidated the classic three lines of defence under the second line of some risks, for example people, 88 endorsed by the Institute of defence. Its responsibilities organisation and culture. We Compliance Internal Auditors (IIA). The include risk management, also added two new risks which first line of defence involves maintenance of a robust have come through strongly in operational management internal controls framework, 2020: pandemics and energy Enterprise Risk Local Internal Controls Field Internal Audit directly assessing, controlling delegation of authority and transition. COVID-19 has of Management and mitigating risks. The second critical access processes. course shone the light on line of defence is provided by pandemics and we have been Streamlining and aligning Company Internal compliance and enterprise risk working hard with the business Management Certification Continuous Internal Audit our risks Control Policies management expertise and lines to address this specific The other key change this year internal controls specialists with risk and ensure business was to streamline our risks from internal audit forming the third continuity. We are becoming Continuous Internal Audit Group DOA 29 to 18. We wanted to focus line of defence. more and more involved more intensely on the core risks in energy transition, as The aim is to apply best practice to the business in line with our exemplified by the creation to ensure we have the most purpose, strategy and risk First Line of Defence Second Line of Defence Third Line of Defence of our new Future Energies robust and effective framework appetite, and the fast-changing rests on controls provided by corresponds to controls is provided by the business unit. Therefore it is for managing our risks, as we world we live and work in. local line staff and provided by Group internal audit functions. important we monitor and grow and transform This is another example of operational management. Management, Risk Management, mitigate the risks surrounding Group Policies and Procedures, the business. how, in many ways across and any other oversight this increasingly critical part functions and tools. of our business.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Puma Energy Group Risk Chart Actively monitoring our risks Local Management reduces risk While undertaking this directly wherever possible, for 5 sharpening of our risk example through improved fire landscape we continued to prevention and better personal ertain rigorously monitor all our risks protective equipment. For risks through the year. Again, it was that cannot be fully prevented, 4 Likelihood a story of delivering to the they have mitigation plans in Almost c highest standards while place: for example, currency transforming Puma Energy hedging, property insurance, for the better. bank guarantees and disaster recovery planning. 3 Identifying our key risks 4 To ensure we stay up-to-date The maturity of our Risk 12

with our risk landscape, we Management enables us to le 5 17 carried out a comprehensive report on the basis of Net Risk 89 14 1 15 10 11 9 2 3 2 enterprise risk review in 2020. – i.e. risk ratings take into Possib 13 6 16 7 This included running a series of consideration the risk mitigation 18 interviews with the Executive initiatives adopted in response Committee, business leaders and to risks as they were initially 8 stakeholders at country level in identified and defined. The 1 order to gain grassroots feedback Group Risk Chart therefore and understanding of our risks. reflects Net Risks for The outcomes of the review each category.

Impact have enabled us to identify and

Rare 0 prioritise our top five enterprise 0 1 2 3 4 5 risks so we can focus on Low Moderate Critical mitigating them effectively.

Counterparty risks 6 Working capital 10 Physical security, Strategic risks 1 Customer credit management health and safety 14 People, organisation management 7 Financial reliability and culture 2 Business support and reporting Political, country and 15 Business portfolio 3 Currencies exposure regulatory risks management risks 11 4 Sales pricing Operational risks Geopolitical, authorities 16 Reputation, brand 8 Digital infrastructure and communities and trademarks Economic/Financial risks 12 and cyber security Standards and regulation, 17 Pandemics 5 Supply of oil and fuels 9 Environment protection legal and taxation risk 18 Energy transition and commodity prices and remedies 13 Ethics and compliance

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

There are some key themes underlying our risk landscape:

1. Counterparty risks: 2. Operational risks: Response Ltd, an organisation react promptly to local we operate, and have Pandemics Sales pricing Environment protection that shares effective responses challenges and opportunities. consequently not suffered Pandemics is clearly one of Sales pricing is of critical and remedies risks to oil spills worldwide. ISO In some jurisdictions, we from any material losses the key risks faced in 2020. importance to our business We strive to operate in line accreditation: 60% of our operate through subsidiaries due to these risks. We have been successful performance. Indeed, inability with international best practice, terminals hold ISO 9001 and joint ventures that are at keeping the risk under 4. Strategic risks: to position pricing by including where this exceeds certification and 60% hold partially owned by state- control through effective Business portfolio segment correctly may result local expectations. We apply ISO 14001 certification. In 2020, backed organisations – both a and timely implementation management risk in lost market share and the same strict health, safety 94% of our operations were constraint in terms of operating of our Business continuity The Group has a proven volume-margin imbalance. and environmental standards API 650-compliant. autonomy and an opportunity protocols while also track record of successful across our operations around in terms of political risk following Government and We ensure the risk is well Furthermore, we continuously acquisitions and completion the world – from manufacturing management. We engage in Public Health instructions. under control by providing promote Puma Energy’s Safety of major construction 90 right through to distribution dialogue with relevant expert We worked hard at high standards of service, Management System to projects. An accurate and and delivery. We invest in third parties and local minimising the negative building the Puma Energy improve industrial safety. proper management of the modern equipment, and have authorities continually, to impact on health and safety brand and introducing integration process and the well-defined IT security, 3. Political, country and promote high standards across of our key stakeholders customer loyalty initiatives. continuous monitoring of business continuity and disaster regulatory risks: our operations and ensure – employees, customers and We also ensure tight costs effectively limit the recovery plans in place. We also Standards and regulation, readiness to conform with suppliers and ensured the management on the supply potential financial losses. use common ERP (Enterprise legal and taxation risk the legal norms and tax execution of Puma Energy’s side; together with cost- Lately, strategic decisions Resource Planning) and The markets we focus on tend requirements globally. In strategic objectives was not control policies and also led the Group to divest terminal management to be highly regulated and can addition, we are well diversified compromised even during procedures on local certain non-performing applications. We use a bespoke feature political instability as in terms of geographies, lines of these unprecedented times. overheads, we lower the businesses. Additionally, safety management system, well as geopolitical risks such business and customers and break-even point. We actively Puma Energy mitigates SAPS (Systems, Application as possible international have a unique expertise in monitor our competitors strategic business portfolio and Products), at all our sanctions. We actively monitor sourcing and supplying a wide and the market and have risks that may arise from the terminals to monitor the financial, regulatory and range of products, all of which strategies in place to react loss of key customers, frequency and severity of political developments, both mitigate our political risks. to pricing fluctuations. through a large and accidents and lost-time at an international level and Since our foundation in 1997, diversified customer base incidents. This helps us assess through our local businesses, we have built a successful track and long-term relationships safety levels and identify and put in place measures to record of managing regulatory, with customers. potential risk factors. We are mitigate these risks. Our local public infrastructure and an active member of Oil Spill employees are well placed to communities risks where

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Counterparty risks

• We offer very limited credit Lost business, lower margins, • We do not place reliance on Potential impact or delayed payment terms inefficiencies caused by a single source of supply. Currency volatility may result to high risk customers or corrections and replacements, • In-depth analysis to purchase in financial losses for the Customer credit risky sectors. Business product returns and at the right time and at the Company. Currency fluctuations management • We can structure specific support commercial disputes. lowest possible cost. on international markets may affect us at both Group and credit conditions and Mitigating factors • Close interaction with Sales subsidiary levels. We have substantial programs for partner We do not get what we pay • We adopt a careful and and Pricing to align with distribution businesses, making customers. for, we pay and receive nothing considered approach in their strategies. Significant amounts of cash are held in countries with us vulnerable to risks relating • For industrial companies or something we do not the vetting of our business • Cost verification with data non-convertible currencies, to the creditworthiness of and international airlines, require, unauthorised partners. We use our KYC provided by Finance to remaining out of reach for our customers. We may be we establish credit limits, transactions take place; we process, an approach that ensure compliance and 91 Group financing purposes unable to collect receivables engage in ‘know your employ poor suppliers. helps us ascertain the enable pricing team to from customers due to but exposed to local inflation customer’ (KYC) processes, Inadequate tools and legitimacy and compliance perform margin analysis. inadequate market intelligence, and/or devaluation. invest in advanced processes mean customer of all major prospective guarantees and decision- management systems and expectations are not fulfilled, customers, suppliers and Mitigating factors making on customer credit. maximise geographic and or insufficient logistics service providers. KYC also • Puma Energy has limited Potential impact customer diversification to planning causes supply helps us ensure that new exposure to foreign trading Significant effects to cash minimise credit losses. delays and stock-outs at providers will be reliable Currency activities and these are fully customers’ sites. and diligent over time. flow that could ultimately • We actively monitor credit exposure hedged. We do not hedge result in bad debts, write-offs risk, and minimise our Potential impact • We ensure optimised inventory the equity translation risk and lost revenue. exposure by targeting and Suppliers perform poorly management through from subsidiary earnings achieving an average of 15 to monitoring of sales forecasts Inability to identify exposures and assets. Mitigating factors delaying or halting operations 20 days of sales outstanding. to effectively execute product in currencies other than the • We undertake a full risk and delivery of projects; • We have a policy of tapping purchases and transfers US Dollar and subsequent lack analysis for all prospective • We take credit insurance suppliers actions damage local funding sources in each between terminals. of hedging. customers and have training or use factoring systems our reputation with our operational region. When and internal procedures in whenever this makes sense stakeholders; we lose money • Effective product sourcing (The Company operates in exposed to local currency risk, place to limit our credit risk. in terms of costs/benefits. if fraud is committed; we have management through multiple currencies not pegged the Company hedges monitoring of market trends, to the US Dollar and some of accordingly. • We mitigate our open account to undertake costly/lengthy implementation of purchase our business entities operate risk, by asking bank guarantees litigation to redress. strategies and controlling of in countries with no freely of our customers, via credit the risk exposure. convertible currency.) insurance policies, or via other possible approaches.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Counterparty risks Economic/financial risks

due to pricing errors or pricing capacity in place to meet Mitigating factors conditions not adhering to changing global needs. • We actively manage contracted conditions. • We also source products from cash flows through accurate forecasting. Sales Mitigating factors Supply of oil and fuels a large range of suppliers, Working capital pricing • Tight management on and commodity prices minimising the risk of supply management • We work with local banks the supply side, together chain failures. to provide funding to cover Inability to position pricing by with cost-control policies Inability to have the right supply • We systematically hedge Unavailability of sufficient cash, working capital requirements, segment to achieve the best and procedures on of product at the right quantity, all physical products so that in the right place and at the our investment plans and market share/profit balance. local overheads, lower price, time and place to meet we are not exposed in free right time, to meet our financial opportunities. We monitor the the break-even point. Retail and Commercial customer markets or semi-regulated commitments. Inadequate maturity dates of existing debt In particular, Puma Energy has a demands. Inability to push oil markets. planning and stock-keeping and aim to maintain a balance substantial number of customers, • Diversification into 92 price volatility to the end- practices lead to excess stock, between continuity of funding both under contract and spot. addressable markets opens • In regulated markets, customer through pricing – shortages or scheduling issues. and flexibility using overdrafts Pricing conditions (formulas, up economic opportunities distribution margins are where retail prices are not and bank loans. timing, validity) vary from in less competitive sectors fixed by the government elastic, commodity price Potential impact customer to customer and (such as aviation fuels and and usually linked to return • Our liquidity risk is mitigated fluctuations pose a threat to Cash flow problems can bring market to market creating the lubricants). on investment formulae. our business to a halt (short as part of our borrowing short- and medium-term activities are related to risk of errors as well as the risk • We are winning customer • Therefore, even when term – local inability to pay profitability. the financing of refined oil of inadequate decision making loyalty by providing high prices are volatile, our unit debt) and curtail future around proper balance of products – products which standards of service, Potential impact margins are protected and investment plans (medium/long volume and margin. Where by their nature are readily building the Puma Energy Failure to have stock/supply disconnected from oil term – failure to comply with pricing is government-regulated, convertible into cash. brand and introducing of the product required to price fluctuations. liquidity commitments made to the risk is related to inability to customer loyalty initiatives. satisfy subsidiary’s business investors). Lost business owing • We have clear procedures maintain a competitive edge • We operate refineries in requirements. Improper to shortages, excess and relating to physical stock through our marketing. • We actively monitor our Papua New Guinea and management of subsidiary’s obsolete inventories. takes, stock reconciliations competitors and the market pricing exposure. Crude oil Nicaragua that provide crucial Potential impact Reduced margins in case and daily controls covering and have strategies in place price volatility immediately sources of fuel to service our The risk of lost customer loyalty, of price movements, excess all inventories. to react to pricing fluctuations. affects the costs of refined needs and those of local sales volumes, depressed customers in these markets. third-party storage costs • We have formal tendering margins and market share petroleum products. Flat price and ordering processes, • We actively manage and and demurrage. when being unable to stay and FX risks are unhedged. and distribution contracts report our stock balances competetive on the market. Mitigating factors where required. Lost commercial opportunities daily, which limits our • We have sufficient supply potential exposure in infrastructure and storage volatile markets.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Economic/financial risks Operational risks

Mitigating factors Improper handling could also be organised from • Puma Energy has a formal lead authorities to force closure neighbouring depots process in place to review and of operations temporarily or and subsidiaries. Financial reliability control our financial reporting. Digital infrastructure Environmental permanently, or to reject • We monitor public health and reporting • The internal control system for and cyber security protection and remedies permit applications. concerns in the countries financial reporting operates to There can be significant where we operate and carry Inability to produce compliant provide reasonable assurance Breach or failure of our or third Inability to receive, store, financial impact relating out public awareness-raising and reliable financial figures, against material misstatement. parties’ digital infrastructure transform, consume, dispatch to the remediation of exercises where necessary. at local entity level as well • External and internal audits or cyber security results in loss and dispose of oil products environmental incidents. as at Group level. provide verification in the or misuse of information in a way that preserves Harm to persons, destruction financial reporting and risk sensitive to Puma Energy Group. and protects people and and/or loss of facilities and 93 Potential impact monitoring process. the environment. equipment. Loss of credibility with Potential impact the financial community IT system control failures lead (Puma Energy stores, blends, Loss of business in the short Physical security & (including investors and to the loss of records or data refines and sells hazardous, term, but also in the medium health and safety the banking sector). manipulation, misuse of flammable and toxic materials.) term if alternative facilities are not deployed quickly enough. Costly audit procedures sensitive data and therefore Inability to make operations Insufficient prevention and lead to restatements with potential harm to our resilient to extreme natural Mitigating factors solutions to conditions and potential tax implications. operations, increased costs conditions (whether regular • We conduct natural and events affecting the health and and damaged reputation. physical integrity of employees, Fines and penalties for failing or exceptional), or to react industrial risk assessments appropriately and in a business partners and of any to file timely and compliant Mitigating factors on each new activity timely manner. we undertake. person expected to access Company accounts. • Across the business, we Company sites, facilities employ common daily Potential impact • The Company has corporate and operations. reporting practices. Spills or seepage of polluting insurance for natural disasters. Inability to establish and • There are strict access substances from site operations • We have Emergency maintain adequate storage controls to our data, we and/or in transit may harm Response plans and Crisis and throughput facilities. employ high levels of virus employees, contractors and Management plans at all protection and have robust local communities. our locations. Insufficient prevention and solutions to malicious actions back-up procedures. Puma It may also damage air • Most Puma Energy entities that affect the integrity of Energy’s networks are quality, water purity, located in countries with people and assets in Company constantly monitored. land and marine life. a high natural risk are custody or within our perimeter. in ‘regional clusters’, so emergency responses can

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Operational risks Political/country/regulatory risks

Potential impact • We work with transporters • Our quality testing of fuel Disruptions to day-to-day Injuries and health issues, to improve their own HSEC adheres to standards laid operations; hostility to the fines and penalties, liability performance and encourage down by the American Society Company and its employees to employees or third parties them to train their drivers for Testing Materials (ASTM). Geopolitical, authorities and business partners; adverse Standards and regulation, and harm to Puma Energy’s properly, control driving • We have access controls and communities media coverage and damage legal and taxation risk reputation. hours and educate drivers and alarms at our depots, to our public image; inability on fatigue management. to expand existing sites or Authorities could force the facilities and offices. Our business may be affected The standards, regulations and open new ones. closure of our operations • We train our employees in line • We have CCTV at depots and by political developments legal risk involves inability to temporarily or permanently, with the highest international retail sites to deter potential in any of the countries Mitigating factors conform to the increasingly or reject permit applications. standards and actively promote intruders and actively monitor and jurisdictions in which • Puma Energy seeks to stringent legal norms, Non-compliant storage and a highly safety aware culture. and safeguard our employees Puma Energy operates. maintain a politically regulations, regulatory 94 transfer equipment could lead • We run campaigns across our and assets. Governmental instability could neutral stance in all our framework and agreements that to product downgrading, markets promoting greater • We monitor and control adversely affect economies in operating jurisdictions. govern Puma Energy business. corresponding markets and spills or losses. safety awareness both at our in-transit product losses. • Puma Energy’s geographic Puma Energy does not adhere hence the Company’s business, Breakdowns could complicate operations and among the diversification limits the to applicable local and financial conditions and results. receipts and/or deliveries, with wider community. overall risk to the business. international tax law in the increased costs and lost business. • We provide and mandate the Failure to manage relationships • We work proactively with countries where it operates, Inadequate security measures use of personal protective with local communities, interest communities, empowering including legislation on transfer groups and NGOs leading pricing. Changes in the may result in harm to our equipment (PPE). and encouraging managers to business disruptions. application of tax legislation, employees, destruction and/or • Puma Energy always looks for at a local level to engage in differences in interpretation loss of material and/or solutions to avoid bottlenecks continuous dialogue with Potential impact of the profit level of the financial assets. – for instance, by identifying Political instability may lead to our communities. underlying business operating multiple logistics routes and the suspension of operations, Mitigating factors • The Puma Energy model as well as one-off supply schemes to any major enforced divestment, • One of our major risks is fire in Foundation supports local transactions may create tax location and maintaining solid expropriation of property, our terminals, which we seek community projects and risks and uncertainties. By relationships with third-party cancellation of contract rights, to mitigate by implementing shows our dedication and failing to effectively and transport companies. additional taxes, import and regular operational controls, commitment to Corporate efficiently manage export restrictions, foreign and by installing effective • Sufficient supply infrastructure/ Social Responsibility. transactional, operational, exchange constraints and fire-fighting systems. We also storage capacity is in place and • We promote initiatives to compliance and financial sudden changes in industrial accounting tax risks tax contract top industry experts strategically located to service hire people from surrounding regulations or laws. disputes with tax to help on the ground should our customers. local communities. administrations may arise. a major incident occur.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Political/country/regulatory risks Strategic risks

Potential impact countries in which we and imprisonment; reputational • Continuous auditing allows The middle management The risk translates into: do business, we maintain damage; inability to solicit us to manage our operations resistant to change will block a. legal penalties related appropriate intelligence. investors seeking ethical proactively by providing the behavioural change that to inability to fulfil legal • We engage in dialogue investment opportunities. management with real-time People organisation will enable the operational insights and alerts, transformation to take place. obligations, financial with relevant expert third Mitigating factors and culture highlighting any anomalies. loss due to litigation and parties and local authorities • Puma Energy has clear Lack of strong employer reputational damages. continually to promote principles governing the way • We have proper segregation Having the optimum model in brand and reward gap in b. inability to enter or remain high standards across our it conducts its business and of duties throughout our place to deliver the strategy relation to “new capability” in certain markets. global operations. expects all employees to act business processes and a clear across all Lines of Business. predominately for Delegation of Authority. the Retail and Future c. lost competitive advantage • In the interests of industrial in accordance with its Code Having the right people in place Energies organisations. due to increased cost of safety, we also continuously of Business Conduct. ready to step up to the next 95 running the business and promote Puma Energy’s • This requires a zero-tolerance level in the ExCom and ExCom The large amount of time to comply with the Safety Management System. approach to corruption and – 1 roles. transformational change regulatory requirements. encourages employees, Having the right culture in place affecting engagement and motivation to stay with Puma The group could be subject suppliers and other that will motivate and inspire Energy in the long term if the to economic double-taxation, stakeholders to notify us if people to positively invest reward proposition around being denied tax claim they believe the Code is at their energy into delivering Long-Term Incentive Plan isn't refunds as well as be subject Ethics and risk of being contravened. and having a positive focus sufficiently attractive. to fines and penalties resulting compliance • We have policies and for the benefit of Puma Energy's stakeholders. in financial losses and/or awareness programmes in Mitigating factors significant misstatements in Failure to prevent activities place to ensure consistent The ability to attract and • Remuneration, reward and its annual accounts. contrary to our Code of understanding of the retain the right talent. benefit levels at Puma Energy Company’s expectations. are regarded as competitive Mitigating factors Conduct, such as illicit acts of It takes a certain type of talent within the market. • Puma Energy adheres fraud, bribery, corruption or • The Group’s internal control to turn around an organisation to applicable local and anti-competitive behaviour, environment is regularly so we need to attract talented • As a growing business, international standards which has financial and reviewed by an internal audit people that go the extra mile. we can offer attractive reputational impacts. team to provide assurance career opportunities. in all the countries in Potential impact that controls are designed which we operate. Potential impact A lack of "ready now" talent • We offer local operational and operating effectively. • By positioning ourselves Fines and penalties, such as available to promote into autonomy and empower our as a market leader (or at the loss of business licences ExCom and ExCom -1 roles. employees at a local level. least a top contender) in all and trading rights; prosecution

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Strategic risks

• We invest in employee training contaminations, tax, staff with business partners, • We actively manage our Potential impact and career development. benefits and litigations. unexpected tax claims and relationships with our key Erosion of our reputation, Employee on-boarding b. Execution risk, delays and property conflicts. customers to ensure their brand and licence to operate workshops help new employees additional costs in closing Missed targets in terms of sales long-term business. could impact our ability to joining the Company. the transaction. and margins lead to direct deliver our strategy, reduce • We maintain constructive c. Risks associated with financial losses and indirect consumer demand for our dialogue with unions and integrating new businesses, damage to credibility in the branded and non-branded Pandemics worker representatives. as they may not effectively eyes of investors. Need to lay products, harm our ability to secure new resources and Inability to respond in an • We invest in programmes that and efficiently adopt Puma off or redeploy the staff Reputation, brand contracts; limit our ability to effective and timely manner support educational Energy’s tools and dedicated to said customer. and trademarks processes. access capital markets; damage to the pandemic effects has achievement among young Mitigating factors 96 d. Risk related to acquiring new key stakeholder trust in us a negative impact on health people by sponsoring them • We always ensure the timely businesses and being unable Damage to Puma Energy’s and our ability to attract and and safety of key stakeholders through university. integration of acquired to integrate them efficiently reputation and brand could be keep colleagues. (i.e. employees, customers, • We have detailed succession due to lack of due diligence. businesses into the Puma caused by real or perceived suppliers) and halt in execution plans and talent management Energy network, operating failures of governance; Mitigating factors of Puma Energy's strategic programmes. Business becomes so systems and organisation. regulatory compliance; • We have built our reputation objectives. concentrated locally that the by being a reliable supplier • Detailed integration/ under investment in brand; loss of a key customer or of quality products at a Potential impact disintegration plans are drawn or a perceived lack of contract causes the associated understanding of how our competitive price. 1. Stakeholders' death or any up and specific responsibility adverse health effect of the business model (revenue operations affect surrounding • Our investments in is given to dedicated people pandemic results in both forecast, return on investment) communities and wider society. infrastructure ensure we Business portfolio to fail. in our existing organisation. personal and company level can maintain consistent management risk • We offer mentoring and Many other factors, including distress. Unforeseen costs or performance across all the Potential impact coaching at all levels within failure to address the risks losses related to litigation, Internally, failed integration and discussed in several of the countries in which we operate. the acquired businesses, as reputation losses and lost We continue executing our divestment lead to missed other risk areas could also • Our retail sites are distinctly strategy through acquisitions well as detailed on-boarding business opportunities are business opportunities, affect our reputation branded, and we aim to and partnerships as well as plans for all people involved of concern. excessive staff turnover, negatively. rebrand sites acquired strategic divestments. in our acquisitions. 2. Lower demand for oil compliance issues, inaccurate through acquisitions The Group takes on risks accounting records and • We have a large and and non-oil Puma Energy associated with these within the first year. increased finance costs. diversified customer base, products related to lock- transactions, including: • Comprehensive stakeholder Externally, they lead to with contracts in place with downs, higher mortality and reputation management a. The transfer of liabilities commercial disputes, lawsuits our major customers. in-countries and change in related to environmental activities are led by the behavioural attitude of Corporate Affairs Team.

PUMA ENERGY ANNUAL REPORT 2020 RISK MANAGEMENT

Strategic risks

consumers (fear to be in Mitigating factors Governance matters. As a • We are actively working public space). It all • A crisis management team result the company incurs lost with Governments and contributes to the long-term provides central governance financial opportunities, market businesses to meet their rising decline in economic growth and process management Energy transition share and investors' support. demand for "green energies" and direct depression of covering critical areas of across mining, transport Mitigating factors sales/margins of Puma business (i.e. brand and and retail. Failure to introduce and deploy • Our newly created business Energy Group. communication, people, new products and solutions in unit Future Energies is focused • We continuously monitor finance, supply chain, legal, 3. Higher costs of running order to address the changes on delivering sustainable decarbonisation initiatives commercial and operational business and end products: in the oil market within energy generation projects and regulations in countries activities etc.). Business temporary closures of sites/ allocated resources. This that reduce both oil where Puma Energy is continuity plans activation limiting the number of staff implies cheaper sources of dependency and operating; global and local 97 is in place to ensure available on site or any energy than existing options, carbon footprint. teams make sure these additional measures taken to sustainability of Puma climate change concerns, are being addressed and • We are investing in solar ensure safety of employees Energy operations. market demand of "green complied with accordingly. installations at service stations translate into unavailability • Adherence to Government energies", and regulation in five Puma Energy countries. or delays in service or and Public Health instructions towards lower carbon Our experience and expertise product supplied by in order to limit the spread economy. dealing with customers’ Puma Energy or possible of the pandemic. Keeping Potential impact in-country ensures readiness higher price of the service. the employees informed Increased costs related to to provide tailored solutions of the latest developments 4. Supply chain disruptions non-compliance with laws for every business, of the pandemic and reflects inability to source and regulation, litigation and community or nation that subsequent limitations. the product/service to project delays/cancellations seeks renewable solutions. ensure Puma Energy • Department-by-department whenever Climate Change customers' demand is met. risk-based monitoring Protocols (local/global rules 5. Limited access to financing/ and analysis to guarantee and laws) are not followed. raising capital arising effective responses to Decrease in demand of Puma from the worsening of pandemic challenges Energy products: switch in economic situation. (e.g. supply chain disruptions stakeholders' preferences addressed through diversified towards sustainable suppliers' base). investments: i.e. companies that excel at Environment, Social,

PUMA ENERGY ANNUAL REPORT 2020