Annual Report 2020 Energising Contents

ANNUAL REPORT 2020 ENERGISING CONTENTS

1 Group overview COMMUNITIES Financial and operational highlights ��3 What we do �� 4 Business model ��6 In an extraordinarily challenging year for everyone, we Where we operate ��7 Chairman’s statement ��8 stayed true to our purpose of energising communities to Chief Executive’s strategic review �� 11 help drive growth and prosperity by sustainably serving Responding to COVID-19 �� 17 Case studies ��19 our customers’ needs in high-potential countries around Market context �� 25 the world. We continued to focus with ever-greater Our strategy �� 32 intensity on transforming our business in line with our Our ESG principles and commitments �� 37 Stakeholder engagement ��39 customer-led strategy, while responding quickly and Key performance indicators ��43 effectively to the upheavals and uncertainty of 2 Performance review COVID-19. At all times, in all situations – we are Business review ��48 dedicated to energising communities. Operating responsibly ��68 Our People & Culture �� 71 Health and safety �� 76 Environment �� 79 Communities �� 81 Telling our story in a connected way Financial review ��85 Risk management �� 87

3 Governance Financial Our people Customers and Physical assets Our products Natural resources Interactive report ESG Board of Directors ��99 strength The skills, communities Our retail and brands The natural resources This year’s report Throughout the Our Executive Committee �� 101 The financial development, The relationships stations, The Puma Energy we have an impact has interactive report, we use this Chairman’s governance report �� 103 funds and assets opportunities we build with terminals, other brand together on, for example, the functionality icon to highlight across the Group. and wellbeing of customers and buildings and with our product fuel we store and to bring to life progress against our Committee reports �� 108 our employees communities. equipment. and service distribute, the energy key elements environment, social and contractors. brands, for we use and the water through video and governance 4 Financial statements example Super 7. we conserve. and animation. (ESG) framework. Financial statements ��119 In line with best practice for integrated reporting, we report on the six capitals that together provide a true picture of value across Independent auditor’s report �� 164 the Group. This way of telling a comprehensive, connected story fits well with our holistic view of value and our focus on energising communities to create sustainable value for long-term good.

PUMA ENERGY ANNUAL REPORT 2020 OUR PURPOSE ENERGISES US ALL

At Puma Energy, our purpose is energising As a business, we take pride in our role; communities to help drive growth and listening, learning and sharing to raise prosperity by sustainably serving our standards, earn trust and help economies customers’ needs in high-potential run better; solving problems and offering 1 countries around the world. solutions that our customers need. It is our reason for being, now and in the future; We know it takes courage to make brave a sense of shared ambitions and beliefs that choices and lasting commitments. And our explains why we do what we do, and so shapes commitment, as an independent partner is how and what we do. Importantly, our purpose to be close to you, bringing products and has a social dimension. services that allow communities to flourish. Whether helping to get planes in the air Our world is an exciting place of great or offering a safe haven on the road, we opportunities, where quality and secure energise communities around our world. energy sources help us to grow, prosper Sometimes this means doing the remarkable and truly achieve potential. and sometimes it is simply doing the little We are Puma Energy, and our spirit is as things that matter to our customers, and vibrant as the world that we share. doing them well, time after time. Everywhere we work, we are energising What makes us special is that which defines communities, transforming the lives of us – the diversity and expertise of our local local people. For us, it’s personal as we seek people, but above all, our vibrant, energising to team up with them to create and deepen spirit, working to make a positive difference opportunities wherever we serve and operate. to you and for all of us. GROUP OVERVIEW

GROUP OVERVIEW 2

Financial and operational highlights ...... 3 What we do ...... 4 Business model ...... 6 Where we operate ...... 7 Chairman’s statement ...... 8 Chief Executive’s strategic review ...... 11 Responding to COVID-19 ...... 17 Case studies ...... 19 Market context ...... 25 Our strategy ...... 32 Our ESG principles and commitments ..... 37 Stakeholder engagement ...... 39 Key performance indicators ...... 43

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

FINANCIAL AND

OPERATIONAL HIGHLIGHTS Financial highlights Operational highlights Two years into our five-year transformation plan, we delivered a US$2.8M 14,533K M3 75% solid financial performance and achieved Operating profit Throughput volumes Engagement with 3 key operational improvements as we (2019 US$-327m) (2019 14,195k m ) employee survey continued to transform our business while dealing with the unprecedented challenges of COVID-19. US$533M US$1,205M US$1.4M EBITDA (including discontinued Gross profit Invested in learning operations and excluding IFRS 16 (2019 US$1,265m) and development 3 impact) (2019 US$530m) Delivering on our commitments • Protecting customers and employees during US$143M US$78.9M the pandemic Organic capital expenditure, net Operational improvements 20,118K M3 (2019 US$146m) in 2020 • Continuing to deliver high-quality and Sales volumes competitively priced fuels, lubricants and (2019 22,441k m3) other products for customers 0.47 • Supporting communities US$2,037M Lost Time Injury Net tangible fixed assets Frequency Rate (LTIFR) • Completing AU$425m divestment of Australia US$9,944M (2019 US$2,421m) fuels business on time Net sales (2019 US$14,598m) • Generating a total of US$355m net cash inflow from divestments • Delivering US$65m costs savings • Prepaying US$300m 3-year term loan maturing in May 2021

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

WHAT WE DO

1 Marine storage 10 Energy accessibility for communities From giving the people who visit our retail sites 2 Inland storage 11 Renewable and hybrid power a great experience to working closely with 3 Retail generation for industry 4 Commercial 12 Energy storage and management industrial businesses to help them optimise 5 Lubricants their operations – we focus on delivering 6 Aviation 7 Bitumen the very best for our customers. Video link to: 8 LPG What we do animation 6 9 Refining

10 3 4 1 2 7 9

8 12 11 5 4

Infrastructure Downstream Future Energies

Working as their trusted partner, we meet the needs of our From great shopping destinations for local communities to fuel We are energising communities in new ways. To support the energy Infrastructure customers through our world-class global and lubricants for global businesses – we provide a wide range transition, we are powering our own assets with renewables and network of storage facilities on five continents. of energy solutions to our retail and commercial customers. working with our industrial and commercial customers to develop more reliable and sustainable energy solutions for their businesses.

Supported by global functions

Our global functions provide best-practice support and guidance for our business units, aligned to our purpose and customer-led strategy.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

WHAT WE DO 44 7,100+ Countries in Employees and which we operate contractors To meet the current and future energy needs of our different customers, we are organised into three core business units: Infrastructure, Downstream and Future Energies.

Infrastructure Downstream Future Energies

Our Infrastructure business unit To this end we serve our Our Downstream business solutions for businesses in Our Future Energies business Through Future Energies we is the home for our world-class Downstream business unit, unit focuses wholeheartedly different segments. focuses on the new world of aim to play a leading part in the network of major storage providing essential security on providing the very best sustainable energy – for our transition to renewable energy • Retail terminals. In Infrastructure, of supply. We also look to energy solutions for retail, business, for our Downstream solutions across our chosen we focus on making the most maximise opportunities to commercial and industrial • Commercial and Infrastructure customers high-potential markets. of these assets in order to attract new customers customers in our chosen high- • Lubricants and for the communities in 5 Read more here optimise value creation. from around the world. potential countries. To grow and • Aviation which we live and work. lead here, we develop and • Bitumen Read more here deliver compelling customer value propositions – from an • Storage and Refining outstanding end-to-end retail Read more here experience to targeted energy

18 5.5M M3 34 2,545 922 87 5 US$5M >3,000 Countries Storage Terminals Retail sites Convenience Airports Countries with Future Invested to install Potential sites capacity stores served Energies projects solar assets and identified implemented batteries in 2020

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

BUSINESS MODEL Our way of creating value for our stakeholders

Guided by Taking into account Creating value by For all our stakeholders Our purpose Our six capitals • Generating revenues - Future Energies, • Making social Customers We are guided and inspired Together the six capitals and profits from: e.g. solar investments We deliver high-quality, by our purpose of provide a full picture of - Fuel products and - Transportation • Contributing to competitively priced products energising communities value across the Group. services, e.g. oil, and storage communities and services to our customers to help drive growth and – quickly and reliably. We add lubricants, bitumen • Recruiting, training, prosperity by sustainably value by ensuring we are always - Non-fuel products developing and serving our customers’ there for our customers and are and services, e.g. rewarding our people needs in high-potential easy to do business with. countries around the world. convenience retail Read more here Communities We contribute significantly to our Our market context Financial Our people strength communities, through local taxes We live in an exciting, and employment. We also add fast-changing world in value as a long-term, responsible 6 need of the right energy partner engaging in many social, solutions. Read more here environmental and educational Customer-led strategy programmes. We have a clear three-part Employees transformation plan to Our people are well rewarded Customers and Physical deliver our customer- communities assets and enjoy the opportunity focused strategy. to develop their skills and entrepreneurship to achieve Underpinned by our values their full potential. They OPERATIONAL FOCUSED NEW BUSINESS We live our values every day. contribute in many ways to EXCELLENCE GROWTH DEVELOPMENT They get to the heart of our Customer Lead by our diverse, collaborative, Collaboration Agility Read more here way of energising communities focus example customer-focused company. around the world. Our ESG framework Natural Our products Shareholders and commitments resources and brands Financial stability and We are embedding our sustainable business practices Environmental, Social are critical to our success. We and Governance (ESG) aim to create long-term value for framework across all Key strengths drive us forward our shareholders by managing our operations. Our customer focus Our presence in high- Our energetic Our great our business growth carefully and maximising returns Read more here and relationships potential countries spirit people on investment.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

Downstream Infrastructure 3 ) WHERE WE OPERATE

Retail Convienience Storage Airports Lubricants Bitumen Terminals stations stores capacity (m In exciting, fast-changing parts of the world, we West Americas Belize 15 3 1 • Belize 1 26,000 provide the energy solutions our customers need Chile – – – • El Salvador 2 318,000 Colombia 103 – 2 • Guatemala 4 298,600 to succeed. We organise Downstream into two core El Salvador 101 33 1 • • Honduras 2 133,800 Guatemala 284 32 1 • Panama 1 86,700 regions: West (the Americas) and East (Africa and Honduras 216 25 – • • Puerto Rico 2 395,200 Asia). Infrastructure is organised globally. Future Nicaragua 52 36 1 • • US Virgin Islands 1 4,700 Panama 74 20 1 • Europe Energies operates in the Americas, Africa and the Puerto Rico and US Virgin Islands 322 286 4 • Estonia 2 894,600 Spain – – – • Finland 1 250,000 Middle East and Asia-Pacific. United Kingdom ––– • Norway 1 95,100 East United Kingdom 4 1,625,300 Angola 79 79 4 • • Africa Benin 16 – 1 • • Ghana 4 168,700 Botswana 41 21 4 • Mozambique 2 276,700 Republic of the Congo 34 4 – • • Namibia 2 122,200 7 Congo DRC – – 1 • Tanzania 2 85,900 Eswatini 24 – 1 Middle East & Asia-Pacific Ghana 84 16 1 • Australia* 1 240,500 Ivory Coast 34 1 – • • Myanmar 1 91,000 Lesotho 34 11 – • United Arab Emirates 1 412,100 Malawi 61 60 2 • 34 5,525,100 Mozambique 30 24 8 • *Under construction, planned capacity. Namibia 61 53 3 • Nigeria – – 1 • Senegal 5 5 2 • South Africa 110 92 8 • Tanzania 57 13 8 • Future Energies Zambia 58 32 3 • • Zimbabwe 89 45 5 • Australia – – – • Solar energy China – – – • Americas India – – – • Honduras • Malaysia – – – • Nicaragua • Myanmar – – 11 • Puerto Rico and US Virgin Islands • Pakistan 470 13 – • Africa Papua New Guinea 91 18 11 • • Ghana • Vietnam – – – • Middle East & Asia-Pacific 2,545 922 87* 26 19 Papua New Guinea • *We are resellers of fuel to airports in Paraguay and Burundi, Where we operate which are included in this total.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHAIRMAN’S STATEMENT We live in a world that needs reliable, Confronting COVID-19 Capitalising on the energy 2020 was an exceptional year dominated by transition opportunity affordable and increasingly sustainable the global COVID-19 pandemic. The human The energy transition is a core part of this story energy solutions – nowhere more so than and economic impact around the world was and in recent years, we have seen a significant immense. We faced many significant challenges, acceleration of commitment to and investment in the fast-growing parts of the world notably turmoil in the oil market, lockdowns in in renewable energy. Again, looking at it through where Puma Energy is an established the countries where we operate and a collapse our lens, much of the investment so far has of the aviation market. been in areas of the world where we tend not presence. This is an exciting opportunity to operate. In our countries of focus by contrast, When I look at the year for Puma Energy as a from Puerto Rico to Ghana to Papua New at the heart of our current business, whole, I would say that, because of the diversity Guinea, there is a growing need for sustainable of our portfolio, many of the countries and future growth and success. energy solutions. We believe we are well placed markets in which we operate have been less 8 to play a leading role in meeting this need. Our impacted than others in the industrialised world. strategy makes this a central pillar of our future. That is not to underplay the pandemic, which of Indeed, with the creation of our Future Energies course has been a major event for everyone, our business unit in 2020, we have taken a big step Video link to: business included. It is simply to put it in a more René Médori’s forward in this direction. Chairman’s statement Puma Energy-focused context. That context is one of an increasingly customer-led Company Enhancing our governance dedicated to fulfilling its core purpose of When I joined Puma Energy as Chairman on In an extraordinary year, energising communities in selected high- 3 March 2020, I highlighted one of my key potential countries around the world. responsibilities as ensuring we continue to we took on the challenge enhance our governance structures. This is We are not everywhere, nor do we do a fundamental aspect of delivering on our of COVID-19 and emerged everything. Our strategy and the focus of our strategy and achieving sustainable and investment, commitment and capabilities is stronger. We are accelerating profitable growth that benefits all stakeholders. to provide the right energy solutions for our with greater focus and customers and their communities in some In this spirit, the Board was very active in 2020. conviction along our path very particular parts of the world. Ordinarily we have four Board meetings a year. However, 2020 saw us hold two extraordinary of energising communities Board meetings, six meetings in all, as we in high-potential countries focused on major issues and changes in a around the world. remarkable, transformative year for our business. René Médori, Chairman

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHAIRMAN’S STATEMENT

We strengthened and expanded the role of Downstream, Infrastructure and Future Energies I do believe Puma Energy is increasingly well the Audit Committee. We now have a more – supported by global functions. We slimmed placed to navigate these risks and challenges We also took a major step systematic view of the entire audit landscape. down our Executive Committee by a third, through decisive leadership and an appropriate to create a leadership structure designed for strategy and plan. forward in enhancing our The Remuneration Committee continued its agile, efficient and effective management. focus on aligning the compensation of Puma Leading us through governance with the launch We accelerated the refocusing of our portfolio Energy’s senior leadership to the strategic Our CEO Emma and her team have done a onto key markets, with divestments of assets of our environmental, social goals and performance of the business. tremendous job in leading Puma Energy through within non-core countries. and governance (ESG) Through the year, there was a particular all the challenges and uncertainties. They were emphasis by its shareholders and Board We now have a clear strategic plan endorsed very quick to accelerate the strategy together framework. We are now on supporting Puma Energy’s ongoing by the Board and the organisation and with a substantial programme of cost reductions, ensuring it is embedded transformation and the related imperative leadership to implement it. backed by the Board. The highly transparent, to retain and attract the very best talent. collaborative and dynamic style of the senior 9 Engaging closely with our shareholders in every facet of Puma leadership team and the high degree of We also took a major step forward in enhancing The level of engagement with our two main engagement with both the Board and employees Energy’s operations and our governance with the launch of our shareholders was also very high, as indeed have been key in enabling Puma Energy to bring environmental, social and governance (ESG) was their support for the business. I would like gathering examples and stakeholders with them on their journey and framework. We are now ensuring it is embedded to take this opportunity to thank Trafigura achieve ongoing buy-in and support. data from across our in every facet of Puma Energy’s operations and and Sonangol for their strong and continued business to show that gathering examples and data from across our backing of Puma Energy. In particular, we Starting to see the benefits business to show that commitment in action. greatly appreciate the price adjustment support We are starting to see the benefits of the commitment in action. our core supplier shareholders Trafigura and acceleration. It is about much more than just Accelerating our transformation Sonangol provided in the second quarter of driving down and managing our costs. The focus Alongside dealing with the unprecedented 2020. This was key in enabling us to weather is on driving up, in a concerted way, how we challenges of COVID-19, we also pressed on the worst of the COVID-19 storm. choose to work with partners, customers and with, and indeed accelerated, our strategy. We communities to energise them in the short implemented change at a faster pace across the Looking on the bright side, the rollout of and long term. We now have a simpler, three pillars of our transformation framework: vaccines makes the future for everyone less sharper operating model focused on excelling operational excellence, focused growth and new perilous and uncertain. However, I do not for our customers and growing value for business development. We undertook a major underestimate the extent of the crisis and our stakeholders. We are emerging from reorganisation of our operating model to form its impact that we faced this year, nor the COVID-19 stronger, leaner and fitter. three customer-focused business units – risks that remain in 2021 and beyond, but

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHAIRMAN’S STATEMENT

Board changes With my fellow Board members, I have been During 2020, José Larocca stepped down from evaluating a range of options to address the We are starting to the Board and I would like to thank him for his weakness of our balance sheet and expect to see the benefits of contribution and wish him well for the future. determine a course of action during the first We welcomed Hadi Hallouche as a new Board quarter of 2021. the acceleration of member and look forward to continuing to Looking ahead work closely with him. our strategy. It is about I am proud to say we are a business that plays a much more than just Recognising our great people critical part in the lives of people, businesses and The whole team at Puma Energy has been communities around the world. Looking ahead, driving down and outstanding. I would like to thank all our people we are intent on playing an increasingly valuable managing our costs. who have shown such resilience, verve and and welcome role as we continue to accelerate dedication in continuing to deliver for our our strategy and go further, faster in energising 10 The focus is on driving customers, while facing often extremely tough communities around the world. up how we energise challenges, and at the same time doing so much to keep transforming Puma Energy partners, customers for the better. and communities. Strengthening our balance sheet In June 2020, we completed the sale of our René Médori, Australian fuels business for AU$425m and we Chairman continue to target further proceeds from non- core divestments during 2021. This along with significant cost reductions and a range of operational improvements means that during 2020, we were able to prepay US$300m of the three-year term loan that falls due in May 2021.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW We started 2020 strongly – forging ahead In the first two months of the year, we delivered Stable performance and strong strong growth on all fronts. Nevertheless, shareholder backing with our customer-led strategy, driven on when COVID-19 hit, we saw an extreme and COVID-19 inevitably put a brake on our by our purpose of energising communities unprecedented change in our markets and growth trajectory. Nevertheless, we succeeded sector and rapid social change in the in delivering an EBITDA for 2020 broadly to help drive growth and prosperity by communities we serve. Our strategy switched similar to 2019, a significant achievement in sustainably serving our customers’ needs from driving focused growth to creating the the circumstances. This outcome was achieved foundations around which we built our quick with the strong support of our core supplier in high-potential markets. and effective response to the global pandemic. shareholders who agreed a discount to the Throughout, we continued to deliver for our purchase price which we paid for shareholder- customers around the world, and reorganised supplied oil products during the early months ourselves to be fitter, sharper and more agile of the crisis. This ensured that the impact of 11 in living our purpose. the sharp decline in demand did not have a material effect on our overall gross margins. Living our purpose It also gave us the breathing space to position Through an extraordinarily tough and tumultuous the business correctly for the duration of the Video link to: 2020, our purpose of energising communities Emma FitzGerald’s pandemic. In Q2 2020, Puma Energy benefited was key. It really was our unifying glue, which Strategic Review from core supplier shareholder price adjustments kept us all together and gave us the energy to amounting to US$82m. move forward in the face of extreme challenges.

2020 has been about staying true to our purpose, trusting Key events In this extraordinary year dominated by the COVID-19 our customer-led strategy, crisis, we ensured we protected our people, customers of the year and communities, and pressed on with energising learning quickly and improving communities around the world. We highlight some as we go to navigate the of the key events of the year here. unknown, to emerge stronger so we can accelerate our COVID-19 To add context, we highlight some of the milestones growth trajectory. in the COVID-19 story through the year.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW

Reorganising and accelerating of Paraguay and Australia as our key deleverage In order to address the significant balance COVID-19 was also a catalyst for us to bring actions and at the end of June 2020 we completed sheet leverage and the debt maturity in 2021, We now have a Downstream forward the timescales for creating a simpler, the sale of our Australian fuels business for the Board, chaired by René Médori our newly business that is focused clearer, more focused organisation. We now AU$425m. Throughout the year we have appointed Independent Chairman, has been have three distinct business units – Downstream, generated a total of US$355m of net cash inflow evaluating a range of options for recapitalisation entirely around delivering Infrastructure and Future Energies – supported by from divested operations, assets and investments. of Puma Energy. The preferred route for solutions for our Retail and global functions. We accelerated our programme We also carried out standard impairment testing of recapitalisation is expected to be determined of cost reductions. These actions were always the carrying value of all assets, which resulted in in Q1 2021. Commercial customers in part of the strategic plan. We simply did them impairments of US$236m in the third quarter with Innovating sooner, and we are all the stronger for it. the two largest adjustments made for Puerto Rico priority growth markets. Throughout 2020, we were called upon to do and Ghana. Strengthening our balance sheet things differently, faster, better – from finding Since the beginning of 2019, the restructuring Addressing the capital structure of and securing new routes to market to continuing 12 of the Puma Energy balance sheet has been one the company to deliver essential services for our commercial of my top priorities in order to materially reduce In October 2019, Sonangol announced its customers, to ensuring our retail sites could the unsustainable leverage on the balance sheet intention to sell its stake in Puma Energy safely provide communities with fuel and caused by the historic acquisition programme. as part of its ongoing privatisation process. convenience retail services our customers most We continue to explore a number of options needed. Throughout we demonstrated our We selectively reduced fixed costs by US$65m and to enable Sonangol to exit its position in innovative can-do Puma Energy Spirit like never pressed on with streamlining our portfolio. During Puma Energy whilst at the same time achieving before. The pandemic called for quick, decisive 2019 and into 2020 we prioritised the divestment further deleveraging of the balance sheet.

JANUARY FEBRUARY MARCH APRIL Completion of sale of Paraguay business to New retail stations in South Africa, Malawi René Médori appointed Chairman of the Board Successfully closed a one-year revolving credit facility Impala for US$200m across 2019 and 2020 and Mozambique open in excess of US$310 million Thousands of Puma Energy colleagues start to work from home The Puma Energy Foundation and Trafigura Foundation donate US$200,000 to ensure the North Star Alliance Shareholding restructuring announced: Cochan is continues to provide healthcare and COVID-19 support no longer a significant shareholder Donation of 20 shipping containers to support the COVID-19 relief effort in Papua New Guinea

The World Health Organization (WHO) declares COVID-19 WHO announces the disease caused by the novel WHO declares COVID-19 a pandemic as more than Over one million COVID-19 cases reported worldwide, a public health emergency of international concern coronavirus is to be named COVID-19 100 countries report cases a more than tenfold increase in less than a month

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW

action and we rose to that challenge around 2020 and will be rolled out to a further eight Responding quickly and effectively to COVID-19 the world in many different ways across countries in 2021. This is a good example of our We responded very quickly to the pandemic, In many ways, the pandemic our businesses. more insight-led, strategic approach to projects, in terms of business continuity planning (BCP), where we make the best use of data to inform adopting new ways of home working for office- brought out our resilience We innovated for customers. In Retail the creation of pilots, implement, learn and based staff and evolving our procedures at for example, we pushed ahead with our and creativity and improve – then rollout at pace and scale. our front-line locations to protect our employees development of community hubs, and fast- and customers as they ensured we could encouraged us to be laser tracked our introduction of convenience retail We innovated in our ways of working, too. continue to deliver our essential services. We services like Click and Collect and home delivery, For example, we continued to roll out ePuma, focused on what’s really also moved very quickly to right size our cost which will now be core aspects of our offering. our customer-focused IT platform, entirely base, in anticipation of the situation. That was important – from protecting We also developed high-performance lubrication virtually, without missing a beat. A project of this accelerated later in 2020 with the operating solutions tailored to the needs of different size, importance and complexity would formerly our people, customers and model changes. As a management team, we business segments for our mining and other have involved a great deal of time, teams and 13 immediately controlled what we could control. communities to investing industrial segment customers. travel to implement physically. Another major change implemented virtually was the setting Throughout, we prioritised our people and in the strongest sources In addition, we introduced our first-ever up of our shared service centre in Latin America. our customers. I’m proud to say, we have been customer loyalty programme – a best-in-class of value to create safe and We carried this out smoothly, efficiently and on congratulated in many places around the world programme rooted in extensive customer time, in the midst of the pandemic. for the standards that we set for safety on sites. affordable energy solutions. insights. Called PRIS, the programme was We were in many cases the industry leader in launched in Angola and Panama in December setting the bar for that.

MAY JUNE JULY AUGUST Going the Extra Mile (GEM) winners announced, Completion of sale of the Australian fuels business The Chilimbulu site in Lusaka opens – one of 58 sites Puma Energy delivers operational improvements of recognising their exceptional contribution to for AU$425 million in Zambia to be rebuilt in line with the new retail US$37m in the first half of 2020, in line with the Puma Energy’s COVID-19 effort visual identity Company’s commitment to operational excellence Six new Super 7 stores open in the Americas and ahead of budget Launch of a new Click and Collect option in the Puma Protect, a branded sanitiser spray and gel, is Puma FastPay app in the Americas Westerleigh Terminal, UK, achieves 1,000 days announced by the Lubricants Supply Chain Team without a Lost Time Injury (LTI)

Cases of COVID-19 surpass six million globally WHO welcomes initial clinical trial results from the WHO experts begin work with their Chinese counterparts The COVID-19 global death toll reaches 700,000 UK showing dexamethasone could be lifesaving for to ascertain how the disease jumped between animals patients critically ill with COVID-19 and humans

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW

Supporting communities Embedding the highest We aim to further strengthen and embed our I am also extremely proud of how much support health and safety standards strong health and safety culture throughout We have a highly we gave to the communities we live and work A great example of our focus on global Puma Energy. We are building upon the platform collaborative can-do with, both as a Group and through the dedication excellence is in the all-important area of health we’ve created, to drive for continuous and efforts of our people to raise funds and safety. Safety is a critical enabler that will improvement. To this end, our Head of Health, Puma Energy culture and volunteer to help those most in need. help us to deliver successfully in the future Safety, Security and Environment (HSSE) reports – it’s a fantastic place In communities around the world, Puma Energy and is at the core of our commitment to our directly to me. We are also reframing the global people went the extra mile on the ground to people and to our customers. We are committed Safety Steering Committee to be truly where people really help. Playing this active, responsible role in to setting and living the highest standards, representative of key safety change leaders in can make a difference, communities goes right to the heart of our and I am pleased to report a strong safety the organisation – key people in critical positions purpose – it really is a big part of what performance across the Group in 2020. with the passion to champion and drive individually and energising communities is all about. behavioural change across the Puma Group. On a constant perimeter basis, excluding 14 collectively. Excelling globally Australia, we saw a reduction in our Lost Time Making the most of our global-local difference Another core Puma Energy characteristic we Injury Frequency Rate (LTIFR) from 0.74 to Our goal is to create global cohesion while emphasised and accelerated in 2020 was our 0.47. That is a more than 30% reduction and retaining a degree of local autonomy to tailor commitment to global excellence. We develop consistent with the reduction we saw in the prior our offerings to the local context, so that we and share best practice through our global year too. So it’s a continuing trend that we will connect with, and excel in serving our customers centres of excellence, provide expert support focus on improving further. and communities. Our local teams in each and guidance to the lines of business to help country are the ones who really bring our them deliver our customer-led strategy locally.

SEPTEMBER OCTOBER NOVEMBER DECEMBER Puma Energy Distribution Ghana wins first prize in New operating model goes live Pumangol voted by consumers as a national Superbrand PRIS loyalty scheme launches in Angola and Panama four categories at the Health Environment Safety for 2020 and Security Awards The Altona Bitumen Terminal, Australia, achieves 1,000 Winners of Puma Energy Awards 2020 announced incident-free days A super-sized, deluxe service station, the largest, most advanced Approximately 80 women in Papua New Guinea have now and innovative facility of its kind, prepares for opening in graduated from business training courses, supported by Puma Bitumen Australia supplies first consignment of Papua New Guinea the Puma Energy Foundation OLEXOCRUMB®, a brand new product in the portfolio The 2nd annual Customer Week campaign launches, incorporating 10% recycled tyre rubber championing customer service, retail excellence and health and safety

The world surpasses 1 million COVID-19 deaths Confirmed COVID-19 cases surpass 50 million globally Pfizer-BioNTech and Moderna both announce successful First person receives Pfizer vaccine in UK trials of vaccines

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW purpose alive and deliver the global priorities reinforcing our culture and building our people’s We are focusing on three angles. First, we are to build the right relationships on the ground skills, capabilities and opportunities to grow, solarising our own assets, to increase our energy with our stakeholders. There is an important and creating an employee experience that is efficiency, drive down our carbon emissions, Puma Energy is serving our global-local difference to the way we do things attractive for future talent – all in the service of demonstrate our commitment and capabilities, customers with sustainable here at Puma Energy, which we are keenly our purpose and our customer-led strategy. and learn and improve as we go. Second, we are focused on optimising. We will continue to nurture and channel our working closely with our Downstream customers and profitable energy energies as One Puma to push on at a higher to help them develop their own sustainable Valuing and encouraging our people solutions in high-potential pace along our chosen path. energy solutions. We are having many 2020 drove the point home intensely – without productive conversations with our commercial markets – as we help to any doubt, our people really are our key asset. Leading in the energy transition customers and anticipate this will accelerate in It is the quality and commitment of our people ESG and our Future Energies business are drive growth and prosperity. 2021. Third, Future Energies is exploring to deliver for our customers, our communities critical enablers for our success, and our standalone power generation and battery and our stakeholders that makes all the ambition is exciting and full of great In addition, the energy 15 projects with governments and power difference. So of course, the calibre of the people opportunities. Puma Energy is serving our generators in some of our key markets to transition presents us with we attract, retain and develop and reward could customers with sustainable and profitable accelerate the supply of electricity to rural areas. not be more important. When I say calibre, energy solutions in high-potential markets – a unique opportunity to I don’t just mean core skills, capabilities and as we help to drive growth and prosperity. In The sky really is the limit here – especially when create the most relevant experience – important though these are. I also addition, the energy transition presents us with you consider the great need and demand for mean a passionate mind-set and the adaptability a unique opportunity to create the most relevant reliable, affordable, increasingly off-grid, and affordable energy and ability of our people to really contribute and affordable energy solutions for customers. sustainable energy solutions in the high-potential solutions for customers. towards and thrive in our distinctive and countries we focus on and care so much about. Our Future Energies business is our way of dynamic Puma Energy culture. To date these countries have not yet had the supporting customers, governments and investment in energy transition they deserve. Nurturing our culture communities in the countries that we serve to We want to be a catalyst and leader in changing We are immensely proud of our Puma Energy thrive in the context of the energy transition. this for the better. Working with key partners Spirit. We have distilled it down to our four To this end, we are building on the strong local who share our vision of energising communities core values: customer focus, lead by example, relationships and trust established through in the most sustainable way, we will make the collaboration and agility. These values are at the providing essential services to customers and most of this great Future Energies opportunity. heart of how we go about living our purpose of communities over many years. We aim be the energising communities. Through our People partner of choice in their transition to sustainable and Culture function, we are focusing on energy solutions.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CHIEF EXECUTIVE’S STRATEGIC REVIEW

To share just one example of the potential, take and reduce CO2-eq by 284MT. All of these Committee. I would like to take this opportunity Looking ahead Papua New Guinea, where we have the capability projects mark the start of an exciting new phase to thank my former ExCom colleagues for their I am proud of the agility and resilience we have to meet pretty much 100% of the energy needs in our purpose of energising communities. outstanding contributions over the years. They shown, proud of the outstanding contributions of the country. Yet currently only around three have been instrumental in getting Puma Energy our people have made to the business and to our Launching our environmental, social and million of the nine million population are on to where it is today and it has been a pleasure communities. I am also hungry for growth and governance (ESG) framework mains electricity. There is a huge opportunity to work with them since becoming CEO. I look creating value across all parts of our business. Future Energies is a central tenet of our wider to close that gap with more innovative and forward to taking Puma Energy on to new We have a great deal more to do in bringing commitment to strong environmental, social and sustainable energy solutions. heights with the streamlined ExCom team. alive our purpose of energising communities. governance (ESG). We launched our ESG The focus now is for us to continue to deliver We are starting small so that we can framework in 2020 and have begun to embed Coming together to deliver for our customers at pace – for ourselves, for our business, for all demonstrate best practice before we scale up. its principles and commitments throughout and communities our stakeholders. To this end in 2020, we invested US$5m in Puma Energy. This is a pivotal part of our future 2020 really was extraordinary – an exceptional Papua New Guinea, Ghana, Honduras, Nicaragua and we are identifying and focusing on our year of challenge and change. A year where we 16 and Puerto Rico. For example, our 1,200kW most pressing ESG issues, updating our Code have all come together to create a sustainable project in Bayamon Puerto Rico terminal is under of Business Conduct, and establishing platform for medium term growth – our construction and will generate 2,050MWh per measurement protocols. We have also engaged colleagues, our customers, our communities, annum, displacing 92% of the terminal’s energy the Carbon Disclosure Project (CDP) and we our shareholders and investors. I’d like to thank Emma FitzGerald, consumption and reducing CO2-eq by 1,449MT. are participating in the S&P Global Corporate all my colleagues in Puma Energy who have Chief Executive Officer Smaller rooftop projects in Nicaragua and Sustainability Assessment (CSA) to support our demonstrated such dedication and commitment Honduras are providing proof of concept, implementation, ensuring we focus on the right to our purpose. They have been truly magnificent producing 98MWh and reducing CO2-eq by actions to maximise our impact in our business whilst also juggling unprecedented personal 70MT per annum. In Ghana, 10 of our retail and in the communities that we serve. pressures created by the pandemic. I would stations and four of our terminals and depots also like to thank our shareholders and investors Streamlining our Executive Committee will serve as proof of concept. In addition, in who have continued to believe in us and back To complement our strategy refresh and the Papua New Guinea, the Speybank and Aircorps us throughout very testing times. Without all our implementation of our new operating model in Terminals in Lae will have 278kW of rooftop solar stakeholders, we would not be here; and indeed, October 2020, we streamlined the Executive we are here for our stakeholders.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

RESPONDING TO We had a number of projects and COVID-19 improvements in the pipeline, for example We were quick off the mark when COVID-19 Click and Collect for first appeared and throughout the pandemic our retail customers. COVID-19 brought the focused on ensuring our people, our customers introduction of many and the communities we live and work in of these initiatives were kept as safe and supported as possible. forward. The crisis This was a massive, multi-faceted task that proved to be a catalyst constantly shifted and changed as the for improving the way pandemic escalated and evolved. It’s a we serve and excel for challenge that continues to this day. our customers. 17

We set high global standards Adapting to changing In response we focused retail spaces destinations 6. The further development of crisis management and customer needs on seven key work streams within their communities of a highly effective business continuity planning in retail: 3. The development of the e-commerce platform for and applied them in the most and priorities B2B and B2C customers 1. The further development mini-market concept appropriate and tailored way COVID-19 has changed our of forecourt sales 4. The creation of 7. The further development across our various operations retail customers’ needs and a truly contactless and growth of Click and offices around the world. 2. The creation of service priorities. They are now very customer journey and Collect It was an example of the global- conscious of hygiene and how hubs, offering postal local ‘Puma Way’ at its best; to protect themselves from services, remittances, 5. The implementation a testament to the great disease transmission in public insurance, laundry and of home delivery agility and dedication of places. They want to limit their more, all within our Puma our people everywhere. contact with strangers, Energy retail villages – reduce their travel and providing a one-stop-shop We highlight some of the for all our customers’ daily standout stories here. wherever possible they are looking for contactless service. needs and making our

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

RESPONDING TO COVID-19

We are committed Continuing to deliver Protecting Transforming to accelerating our for our customers employees our business customer-led strategy. COVID-19 created major Our first priority was to In the midst of the global disruptions and difficulties ensure Puma Energy people pandemic when many If one thing came out around the world. We know across our sites and offices countries were locked of the COVID-19 crisis, how critical it is for us to were properly protected down, we pressed on with it is that we don’t keep delivering for our and looked after. We setting up our shared customers and communities implemented a rigorous service centre in Latin need to change our and we have built a strong and intense campaign America; transferring all strategy – we need to track record of security of engagement and the relevant operations accelerate it. And of supply over the years. communication to ensure and data. This major we’ve been doing that Throughout the pandemic Supporting local everyone was informed of Working flexibly undertaking was done we continued to deliver, and communities essential safety measures, smoothly, efficiently and in a number of ways. indeed this commitment such as social distancing and We quickly set up and supported on time – completely and reliability won us new Our essential role in the mask-wearing. Throughout our people around the world virtually. Our finance and 18 business from commercial community didn’t end when the pandemic we have so they could work from home. customer service functions customers who valued a the crisis began – it adapted to maintained colleague This was a necessity during transferred seamlessly to strong, proven partner in continue to serve the people and engagement and the pandemic, but we took the the new shared service. times of real need. places we care so much about. communication, for example opportunity for it to be the start We could have postponed For example, when our retail through “Puma Energiser” of a reassessment of the way we it until 2021; many would restaurants and cafes had to emails and microsite access work – a more flexible way of have seen this as the close, we turned a number of for all Puma Energy working, rooted in mutual trust wise thing to do. But we them into bakeries for the colleagues detailing the and a shared focus on great saw the need and the community, where people could latest global information, output in support of our purpose opportunity to get on safely obtain their daily bread. focusing on their wellbeing, and strategy. It’s about high- and do it. This is just one Moreover, our people played health and safety and quality, productive endeavour, example of how, in true a big part in raising funds and keeping them informed as to rather than simply hours spent ‘let’s do it’ Puma Energy donating their time to help how we are working together at a place of work. At Puma Spirit, we undertook major Read more about how those most in need across the Energy our colleagues have found we responded to COVID-19: to serve our communities. transformations while communities we live and work in. that ‘work has become the place dealing with the pandemic. Chairman’s statement to meet, rather than just a place to Chief Executive’s strategic review work’ and whilst obeying the local Business review restrictions to protect people, we Our People & Culture have all appreciated returning to Health and safety the office to see our colleagues as Financial review restrictions have eased. Risk management

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

CASE STUDIES ENERGISING COMMUNITIES IN ACTION 19 In this section of the report we highlight a few key stories of how, in different ways around the world, we have been living up to our purpose of energising communities.

From delivering for our customers without fail to building customer loyalty by listening closely, from providing essentials for communities throughout the pandemic to playing our part in the future of energy – we’re proud of the positive impact we make.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

These craft and the people who operate them are the unsung heroes of the story. Over the DELIVERING FOR years, we have been proud to provide the fuel so they can continue carrying out their vital role – and with our help, this exceptionally OUR CUSTOMERS challenging year was no exception. As a safety measure during the pandemic for example, WITHOUT FAIL we were happy to deliver fuel from our storage terminal to our various customers’ facilities using our trucks. This meant customers no We take pride in delivering longer had to have their own trucks and time and time again with a drivers coming to our terminal to pick up fuel. We were also able to keep physical contact super-reliable high-quality to the minimum and customer service to the service for our customers maximum with the help of our ePuma tool. Launched in Panama in 2018, ePuma means around the world. we can work closely with our customers 20 electronically, for example to manage upcoming Over the years we have built up a strong orders. It’s quicker, more efficient, and in these track record on this front and despite the days of COVID-19, safer too. extreme challenges of COVID-19 in 2020, we were determined not to let any of our customers down. Take for example, the complex operations of the various Puma Energy customers around the Panama Canal. If you picture the Canal, the chances are you see great big cargo ships This is one of those moving slowly and steadily along this vital artery situations where the focus connecting the Pacific and Atlantic oceans. is on ensuring we provide Indeed, every year thousands of ships carry essential service and billions of dollars’ worth of cargo along support day after day, the Canal. so that our customers But look a little more closely and you will see can concentrate on their tugboats, large cranes, dredgers and other small boats carrying out critical tasks that core operations. keep international trade flowing. Enrico Ferrari, Commercial

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

So for example, we’ve made it super easy to sign up and use. And we also enable BUILDING customers to get more for their money, as they can earn points for fuel discounts, PRIS is testament to our for offers at Super 7 convenience stores and determination to become CUSTOMER other participating leading merchants from the communities where we operate. a leading customer-driven retailer in our key markets. LOYALTY BY Launched in Angola and Panama this year and set to be rolled out to a further eight We appreciate our customer countries in 2021 – PRIS is proving very loyalty and the launch of PRIS LISTENING popular. It’s a great example of excelling is an excellent opportunity through engagement. to reward them in ways that CLOSELY are meaningful to them. Deborah Binks-Moore, Chief Customer Experience and We are doing everything we 21 can to put our customers at Communications Officer the heart of our business.

It starts with listening more intensely to what they really want and need, so we can come up with products and services that truly make them smile. Call it data-driven delight. The launch of PRIS – our brand new customer loyalty programme – is a good case in point. We took a truly customer-centric, genuinely insights-led approach, creating a best-in-class programme rooted in deep customer insights gathered through extensive qualitative and quantitative research. We listened closely to what people really want and like when it comes to loyalty and built our unique programme around this.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

a complex river system to multiple intermediate The relationship between storage and then more than 140km of road Ok Tedi and Puma Energy WINNING freight to supply the mine. The region receives 10-12m of rainfall a year which both complicates is a really valuable one. and facilitates the supply chain through Knowing that we have a BUSINESS WITH adequate river levels for the safe passage of supplier we can rely on to fuel vessels. deliver consistently to meet OUTSTANDING Our in-country refining capability of PNG made a highly complex supply fuel, superior storage infrastructure and flexible customer-focused approach helped us retain chain and help us manage END-TO-END this key strategic partner. Our solution combines our fuel after it has been managing the highly complex supply chain delivered, gives me the with technical advice beyond the supply of SOLUTIONS confidence I need to the product, including helping with product stewardship, which is particularly important in support operations. Rather than simply sell a remote and challenging location like Ok Tedi. products, we look to Once delivered, it is essential to Ok Tedi that this Puma Energy has a really 22 build strong long-term critical material is stored and managed, so it is flexible team and they available at the right quality, every time. So we understand us and the partnerships with our not only promise to deliver the fuel without fail but also advise on how best to store it and get constraints within which commercial customers. the best use out of it. we work. We focus on really The Manager of OTML’s Supply Department, Cameron McGregor, understanding their needs Cameron McGregor, understands the value of Supply Manager, Ok Tedi Mining Ltd effective partnerships. “The relationship between and delivering outstanding Ok Tedi and Puma Energy is a really valuable end-to-end solutions. one. Knowing that we have a supplier we can rely on to deliver consistently to meet a highly Ok Tedi Mining Ltd (OTML) were looking for complex supply chain and help us manage our a partner they could trust to provide fuel they fuel after it has been delivered, gives me the needed for their mining operations in Papua confidence I need to support operations. New Guinea. The fuel is used to generate power Puma Energy has a really flexible team and for its processing mills, keeping its mining they understand us and the constraints within fleet operating, and providing electricity to its which we work.” Tabubil township, and the local neighbouring It is a great example of bringing together communities. But getting the fuel there is not security of supply, flexibility and excellent easy, starting with an 11-12 day round trip in service for our customers.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

competitive advantage by enabling us to motivate and retain our colleagues and attract PLAYING OUR ADOPTING talent from a very diverse range of industries. It is also to equip our colleagues, and help us remain on track to execute our strategy and PART IN THE NEW WAYS five-year business plan. We have set out the future of in our New Ways of FUTURE OF OF WORKING Working White Paper, and are beginning to invest across our Platform, Productivity and People The pandemic has accelerated framework. And we are looking forward to ENERGY accelerating these changes for the better, so that many changes, not least in the together we can create more value, more flexibly Decarbonised, decentralised ways many of us work – how and enjoyably, across Puma Energy. and digitised – the future of building out the first phase of this pipeline of we work, where we work, our projects in Puerto Rico, Ghana, Papua New The 3Ps energy is full of change and Guinea, Nicaragua and Honduras. work culture. At Puma Energy, 23 opportunity. At Puma Energy, We have set ourselves the target of deploying we are embracing this change we are determined to play a solar and/or battery storage at 75% or more of by focusing on new ways of our company owned and operated retail sites, leading part in this across our Productivity Platform depots and terminals by 2023, saving up to working and adopting a future New high-potential markets. 12,000MT CO₂ per annum. One of these sites is of work framework centred ways of El Carrizal, Honduras where Future Energies working With the creation of our Future Energies installed a 35kW rooftop solar solution. around Platform, Productivity business unit, we are playing a key role in Together with solar installations in our own and People – the 3Ps. the energy transition across Africa, Asia People & Culture assets, we have engaged with our commercial and the Americas. The opportunities for customers to offer solutions that will help Platform focuses us on providing the tools Future Energies to increase energy access, with their energy transition. We are working for flexible work, for example interactive responsibly, are immense. We will help alongside governments to support them as workspaces. Productivity is about ensuring customers and communities enjoy affordable, resilience in the new normal, for example by they prepare their energy transitions with reliable and sustainable energy. strengthening people’s remote learning skills. emerging policies and regulatory frameworks. People puts the emphasis on transforming We are investing in solar projects within our By removing barriers, we aim to promote wellbeing, for example through various own assets, focusing on reducing the carbon investment in clean, distributed energy solutions Together, the 3Ps are the basis education, awareness and support initiatives. footprint of our operations, reducing energy that will increase electrification rates sustainably. for a key change in focus from costs and most importantly, showcasing our Together, the 3Ps are the basis for a key change This is just the beginning – for our customers, activity to productivity – from time capabilities to external customers, learning in focus from activity to productivity – from time our communities and our company, the and improving as we go. In 2020, we began spent in a fixed place to value created from spent in a fixed place to value future of energy is bright. wherever works best. The aim is to give us a created from wherever works best.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

Our Sandino Marine Terminal is located around operational improvements and cost savings. 60 km from the Refinery. It receives and stores A key part of the process was to work closely EXCELLING IN crude transported to the Refinery by pipeline, TAILORING OUR with the mine’s engineers to identify where to then be transformed into finished products. we could really add value to the business. By moving to our synthetic, high-performance Our Corinto Marine Terminal is located 150 HEALTH AND SOLUTIONS lubricant for vehicle transmissions for example, km from Managua, Nicaragua’s capital city. our customer is improving machinery up-time It serves as an important logistical site and performance. SAFETY where clean products and fuel oil vessels TO DELIVER are received, stored and dispatched to By focusing in this way on adding value to Our Corinto Maritime Terminal complement refinery production and meet businesses we are going further in creating Nicaragua’s growing demand. REAL BUSINESS greater value for our own business – so in Nicaragua has achieved an everybody wins. As our CEO Emma FitzGerald says: “I am so incredible 58 years without a proud of all my colleagues working at the BENEFITS Lost Time injury (LTI). Corinto Maritime Terminal. This is a remarkable achievement from a team who have demanded From saving money to the highest safety standards from themselves Throughout Puma Energy, we’re dedicated to 24 setting and achieving the highest health and and each other. There is no secret to best-in- increasing efficiency – safety standards, and Corinto is a standout class health and safety – it is about rigorous we focus on helping our example of living up to this commitment, not process, well-communicated protocols and just here or there or now and then – but colleagues feeling empowered to take commercial customers constantly, without fail, for close to six decades. responsibility for applying them to keep achieve real business everyone safe.” This outstanding performance is the result benefits. of the team’s consistent hard work and diligent commitment to applying systems, To this end, we organise ourselves around application and products guidelines, and serving the needs of key customer segments safety policies (SAPS). It takes every member – from mining to agriculture, transportation to of the team committing to uphold the power generation and marine. Across these highest standards in safety, every single day, segments, we work closely with each and support from our Managua Refinery and customer, especially with end-users of our Sandino Terminal operations staff to achieve products to build our understanding of their such a safety record. particular needs and objectives, so we can tailor our solution and help their business All three locations work as a team in order to as much as possible. achieve Puma Energy’s goals and to pursue new challenges every day – they are always In Zambia for example, we created a committed to maintaining a safe environment combined fuels and lubricants solution for for our team, contractors and customers. a copper mine, which is delivering significant

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT THE WORLD WE LIVE IN Our world of energising communities in high- potential countries is changing fast and we are changing with it. As we help to drive sustainable growth and prosperity across the Americas, Africa and Asia we believe we are well positioned to thrive in this world in the interests of all our stakeholders. 25 The world we live in is characterised by a number of key trends. We outline them here, focusing on what is happening, what it means for Puma Energy and how we are responding.

Following the extreme challenges of a year Key trends inevitably characterised by COVID-19, we see new opportunities opening up. Exciting opportunities for high-potential countries to grow faster and The advent of a The continued The growing power The criticality of The continuing better, to forge ahead with new sustainable new growth cycle rise of renewables and importance environmental, social demand for fuels of customers and governance energy solutions, to advance and prosper like (ESG) issues never before. We are looking forward to being at the heart of this future as we continue to pursue our purpose of energising communities.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

The advent of a new growth cycle High-potential countries are set to grow faster If we focus on Puma Energy’s core high-potential In the run-up to 2020, we saw the peak of the countries, the growth prospects are even more last cycle of global growth in 2018, followed by a promising. Non-OECD countries are set to grow period of slowing growth through much of 2019, faster than OECD countries. There are a number characterised by the trade war between the US of strong drivers for growth here including and China. However, towards the end of 2019 internal factors such as population growth, this began to turn around. Tensions eased; urbanisation, income growth and in turn, growth picked up. The prospects for increased disposable income. Rising commodity 2020 were looking good. prices are also good news for commodity-rich Then COVID-19 hit. This had a devastating impact countries, as is a weakening US dollar, which on societies and economies around the world. increases purchasing power. Continued low Countries were affected in different ways and to interest rates will also be favourable for debt- different degrees. Looking at the year as a whole, financed investment. From China to Japan, from the US to Europe – as the rest of the world many of the high-potential countries we focus on 26 were relatively less hard hit. Moreover, turning returns to growth, our high-potential countries towards 2021 and beyond, the future for global will be major beneficiaries. growth looks positive, particularly if the global High levels of debt effort to control COVID-19 remains on track. Global debt reached unprecedented levels in Beginning to rebound 2020. It was set to exceed US$277tn, equivalent Many economies started to rebound from the to 365% of global gross domestic product middle of 2020, led by strong growth in China (GDP), according to a report by the Institute of and the rollout of vaccines is another major International Finance in November 2020. High boost. The new administration in the US has levels of personal, corporate and national debt indicated strong support for global efforts to do create significant risks which need to be mitigate climate change. So Puma Energy is managed carefully. Indeed, there have been well set for a new cycle of global growth in major issues, with Zambia for example becoming the years ahead. the sixth developing country to default or restructure debts in 2020. But broadly speaking, we see debt levels as sustainable, provided they are closely monitored and well managed, not least because interest rates are likely to say lower for longer. 10% The OECD forecasts that by the end of 2021 China’s economy will be 10% larger than at the end of 2019.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

A dynamic market attracting So, the big players are increasingly in action here The continued rise many different players and there are plenty of small players, too. In this of renewables Against the broader backdrop of a global busy market full of opportunity, Puma Energy’s recovery, downstream energy in high-potential unique blend of global capabilities and expertise A green recovery countries offers a particularly compelling story and deep-rooted local experience and know-how The new phase of global growth will not of dynamic change and great growth. So it is no stands out. simply be a repeat of growth that has gone surprise that it is attracting traditional and new before. This time, it will be driven in great What this means for Puma Energy players and prompting continued M&A activity. measure by investment in energy, With our geographical footprint, experience International Oil Companies (IOCs) continue to infrastructure and development across the and capabilities, strong local presence and expand into emerging markets and to extend Americas, Africa and Asia – the parts of the relationships, we are well positioned to their offer beyond oil, to both the fast-growing world where Puma Energy operates. Moreover, benefit from the growth in high-potential world of convenience retail and the world of in many ways it will be a green recovery countries. Our five-year strategy focuses us renewables, which is at an earlier stage of focused on sustainable energy solutions. on sustainable growth, notably by excelling development in those markets. At the same time, for retail and commercial customers in these The opportunity is to build back better. And the major retailers are expanding and acquiring high-potential countries. time to get involved is now – at the start of the 27 convenience stores and petrol stations. new growth cycle, to catch the full energy of the rising wave, particularly in emerging markets. Electricity Access Innovative, distributed, sustainable Under the Stated Policies To meet the future energy demands of this Scenario, there are still growth new, sustainable solutions will be around 560 million people required. These solutions will draw on without access in 2030 in innovative technologies, such as digital sub-Saharan Africa, in the energy management systems and apps. face of rapid population They will be increasingly distributed, more local and smaller in scale, with for example growth and increased 1 micro-grids coming to the fore. difficulties due to COVID-19.

Individual consumers can become both 1 Source: IEA (2020), SDG7: producer and user of energy by combining Data and Projections, IEA, Paris solar panels on their roofs with batteries in their homes or cars and so largely manage their own power needs. Puma Energy is in active discussions with commercial customers to develop smart, new hybrid energy solutions for their businesses.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

The solar boom This in turn puts a premium on local presence, The new world of energy will be a mix. Natural knowledge and expertise. It takes a great deal of 80% gas, for example, has a role to play in helping commitment and investment over time to build According to the International to provide security of supply. Wind is growing this advantage on the ground. It is at the heart Energy Agency’s World in popularity, for example in the UK, where of the local relationships we have developed Energy Outlook 2020, there is a major commitment to offshore wind. over the years in the countries we focus on. renewables are expected to But the real star of the story, particularly in our The opportunity to leap ahead account for 80% of energy predominantly sunny parts of the world, is solar. In high-potential countries, where there are fewer demand by 2050, with solar Super-clean and increasingly cheap, solar is now entrenched traditional energy supply networks being the “king” technology often not just a competitive option but the most and established interests, there is an opportunity in the mix. cost-effective choice. The economics are aligned to leap ahead with sustainable energy. Just as the with the environment here. Moreover, this is only lack of a fixed telecoms infrastructure in Africa the beginning – as the technology continues to encouraged the take-up of mobiles in previous improve and take up increases, the costs will decades, so the lack of a widespread, reliable come down further still. energy grid leaves the field open for the new 28 Solar is being rolled out at an increasing pace world of distributed, renewable energy solutions. across the developed world, but the biggest The commodity boost from energy transition untapped potential is in emerging markets where The transition to renewables will also increase there is a real demand for renewable solutions and, I firmly believe that 2021 can demand for commodities such as copper, nickel, to date, little development to meet this demand. zinc and lithium. So looking ahead, commodity- be a new kind of leap year – Partnerships are key rich countries are set to gain on both counts – the year of a quantum leap Partnerships with technology experts, finance from the transition to more sustainable energy towards carbon neutrality. providers, governments, regulators, customers and from the demand for materials that go into and communities are key for the energy this transition. In a sense, it is a double boost to António Guterres, Growth in Electricity transition. Public private partnerships, for the growth and development of these countries. UN Secretary-General Generation from example, will be increasingly important, where What this means for Puma Energy governments provide financing and companies Renewables 2020- With the creation of our Future Energies business 1 provide the expertise, scale and technology. 2030 (excluding Hydro): unit, we are helping customers, governments Partnerships with customers will also be critical. and communities to reap the benefits of the Sub-Saharan Africa: 589% The energy transition puts greater emphasis renewable energy transition. We aim to be the Americas: 131% on customers, as choosers and consumers partner of choice in this transition in the countries of energy, and increasingly as producers. and sectors that we serve. Asia-Pacific: 327% Take a mine for example, deciding to produce its own solar energy and feeding excess energy 1 Source: Bloomberg New Energy Finance (BNEF) back into the local grid.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

Commercial customers The impact of COVID-19 What this means for Puma Energy From mines to cement makers, construction as a change accelerator We have embraced the opportunities to companies to transport businesses – accelerate change for the better in Puma commercial customers increasingly need COVID-19 has led to fundamental changes Energy. From fundamentally organising our and demand value-adding, tailored solutions, to many aspects of life but it has also operating model to introducing trust-based rather than just products. This calls for accelerated and reinforced trends that flexible working that changes the focus from relationship building and a genuine focus have been developing around the world time spent in a fixed place to value created on delivering business benefits. Rather than for some time. from wherever works best. We looked for just be sold fuel or lubricants for example, Accelerating technology every opportunity to create meaningful businesses want to buy energy solutions that Take the rise of technology. From ubiquitous positives from the crisis. help them save, make money and succeed. smartphones to the growing internet of things Retail customers – tech was well and truly there beforehand, Really getting to know what customers but COVID-19 turbocharged it. In our personal want and need is also at the core of retail and professional lives, we are all avid video excellence. It’s the foundation for insight- conferencers now. 29 driven value propositions that win customers Accelerating innovation for customers and build loyalty. COVID-19 has encouraged innovation for What this means for Puma Energy customers, too – for example Click and Collect We are wholeheartedly customer-led. and home delivery services. These new products The growing power and As a company, we are increasing our focus on and services were in the Puma Energy pipeline; importance of customers data gathering and analysis, so we can make but the pandemic brought them forward, as we better-informed decisions and develop more focused on responding to the changing needs The consumerisation of energy compelling, insight-driven products, services of customers in the midst of the crisis. In the new world of energy, consumers will be and experiences for our customers. Examples Accelerating flexible working much more involved and powerful. Whether here include the launch of our PRIS loyalty that is customers being able to choose between Confronting a global pandemic in a technology scheme for retail customers, the rollout of our age in turn added impetus to another change different providers, or managing their energy use new Super 7 convenience stores and our via an app, or taking part in energy generation that was already growing: flexible working. detailed segmenting and profiling of corporate With COVID-19, almost overnight in 2020 it through their own solar panels. Call it the customers in our Commercial business, all of consumerisation of energy. This is where getting became the new norm as working from home which helps us to extract more value from the was the only option for many. close to customers, really trying to understand energy solutions we deliver. them and being much more responsive and flexible to meet their needs becomes paramount.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

The criticality of environmental, In September 2020, five global organisations, social and governance (ESG) issues whose frameworks, standards and platforms guide the majority of sustainability and Another key trend that gained significant integrated reporting, announced a shared momentum in 2020 was the rise of vision of what is needed for progress towards environmental, social and governance (ESG) comprehensive corporate reporting. Going as a core consideration for companies, forward, Carbon Disclosure Project (CDP), the investors, employees and indeed all stakeholders. Climate Disclosure Standards Board (CDSB), ESG is closely allied to energy transition, of course. the Global Reporting Initiative (GRI), the It also aligns with the UN SDGs and UN-supported International Integrated Reporting Council (IIRC) Principles for Responsible Investment (PRI). and the Sustainability Accounting Standards Moreover, it complements and strengthens the Board (SASB) will be working together on this. broader groundswell behind the acceptance that A must-have for long-term strong, purpose-led, values-based companies will competitive advantage thrive now and in the long term. So, strong ESG is not an optional add-on. It is a 30 A focus for increasing regulation must-have. Indeed, it is becoming a signature, From new rules surrounding low sulphur fuels to and a key source of long-term competitive mounting requirements on disclosing greenhouse advantage. Whether you look at it from the gas emissions – much of the increasing regulation point of view of reinforcing relationships with in our sector is focused around ESG. We make shareholders, or accessing new opportunities sure we stay on top of and abide by all the for funding, or attracting and retaining top regulation, and support all moves to strengthen talent, or increasing customer loyalty, or simply environmental, social and governance best practice. doing the right thing for its own sake – ESG is We partner with our commercial customers, for a critical factor. It is here to stay – here for good, example in the marine and transportation sectors, in both senses of that phrase. to help them operate successfully in line with What this means for Puma Energy Looking ahead, there will be a premium changing regulation. We also play an active part We are committed to ensuring we embed strong in working with governments to help raise ESG throughout Puma Energy. To this end, we for companies that have higher standards standards. Our Lubricants business, for example, created and launched our ESG framework this around ESG. This is the name of the game engages with governments to ensure quality in year. The framework is designed to integrate now. It is a source for growth, for new capital, 61% In 2019, 61% of global countries which are not currently highly best practice ESG into our everyday action for sustaining business, for innovation, regulated for lubricants products. throughout Puma Energy, and to create a institutional investors for attracting, retaining and developing top increased their investment Towards standardised assessments bold and ambitious set of principles and accompanying commitments against which talent, for reaching new customers. You need allocation to companies In a mark of its growing maturity, ESG excelling in ESG factors.1 assessments are becoming more rooted and to hold ourselves accountable. to embrace it and say: this is a catalyst, not recognised, and indeed more coordinated. 1 Source: 2019 Edelman Trust Barometer, a cost – take it to heart and grow with it. Special Report, Institutional Investors.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

MARKET CONTEXT

The continuing demand A strengthening oil market for fuels High levels of volatility, with demand and price plunges at the beginning of 2020, gave Fuels are here to stay, for the time being way to a relatively more stable period in In our high-potential countries, energy the latter half, followed by a strengthening transition is undoubtedly a big opportunity of both demand and prices at the tail end. for the future. But at the same time, as these countries grow their populations and This upward trend in prices is likely to continue economies, there will still be major demand in 2021 and beyond. This will be due not only for traditional road transport fuels for some to growing demand from countries such as time to come. Peak oil demand in these China, India and Puma Energy’s high-potential countries will almost certainly come later countries. It will also be fed by limits on the than in the developed world, where regulation supply side due to under-investment in and demographics will hasten its arrival. new capacity. Having said this, around the world COVID-19 What this means for Puma Energy 31 has increased people’s wariness of using For Puma Energy, this means a growing public transport and their preference for demand from both people and businesses for using their own cars, which is in turn fuelling fuel and lubricants, alongside the increasing the demand for petrol and diesel, at least in desire for sustainable energy solutions. the short-term. It also increases the importance of offering customers the fuels they want, such as lower- sulphur and higher-performance fuels. We are well positioned to serve both the immediate needs of retail and commercial customers for reliable, affordable fuels and the future needs of communities for renewable energy. We are looking forward to pressing on with meeting We see a growing demand from all these needs in our world of energy. both people and businesses for fuel and lubricants, alongside the increasing desire for sustainable energy solutions.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR STRATEGY

Our transformation is driven through We have a clear strategy which puts focusing on three pillars our customers at the heart of our business. We have accelerated the implementation of our strategy and transformed our business EBIT growth to drive greater growth and value.

Focusing intensely on In addition, we established OPERATIONAL FOCUSED NEW BUSINESS our customers an arm’s-length cooperation The customer-led strategy and agreement with Trafigura to EXCELLENCE GROWTH DEVELOPMENT transformation framework we manage our supply and trading established in 2019 remains the activities. This will enable us to same. By relentlessly focusing extract more value in supporting 32 on implementing our strategy our Downstream business – and making the most of our optimising our working capital opportunities to transform requirements and leveraging through the three pillars of Trafigura’s global scale and the framework – Operational expertise. We have created Excellence, Focused Growth a Value Chain Optimisation Improving Optimising business presence Finding new and New Business Development organisation to work closely performance and product portfolio sources of value – we are operationalising our with Trafigura in ensuring we purpose to energise deliver the best possible fuel Objectives Improve management and Attract new customers and New products in existing control of existing assets increase turnover geographies communities. Achieve operational Expand Puma Energy’s New businesses in existing Refreshing our strategy improvements target product portfolio geographies During the year we took of US$67.8m In 2019 we defined Optimise network presence Market entry into new the opportunity to refresh a clear purpose Improve our value proposition and continue to target geographies our strategy and structure. to customers non-core asset disposals On 1 October 2020, we Exploring opportunities to and strategy; in 2020 Embed our ESG framework renegotiate contract terms implemented our new across all business lines with suppliers operating model: creating we focused on delivering three distinct business units and accelerating it. – Downstream, Infrastructure Enablers Alan McGown, Operational model Culture Digitalisation and Future Energies – Chief Transformation Officer, supported by global functions. Value Chain Optimisation & Procurement

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR STRATEGY quality and the lowest country. A focused governance possible cost-to-serve for process kept momentum Our strategic journey our customers. and ensured delivery of an Our new operating incremental gross margin of We are on an exciting journey to unlock ever-greater customer value by being at the heart model is a step change We are also working closely approximately US$78.9m of energising communities with sustainable solutions. with the Trafigura portfolio from these programmes. for us. It ensures we team to execute our portfolio are fit for growth and Portfolio Transformation: From managing assets to unlocking customer value strategy as quickly and We completed two major in the best possible effectively as possible. transactions, Paraguay EBIT shape to create the Creating more value – faster (divested in 2019) and Australia SERVING most value for our The changes further sharpen fuels (divested in June 2020), and align our leadership, as well as some non-core COMMUNITIES stakeholders. It will structure, processes, systems market divestments, generating WITH SUSTAINABLE enable us to drive US$466m of net cash inflow and capabilities to our strategy, SOLUTIONS sustainable profit values and purpose. Our new in 2019 and 2020. UNLOCKING growth in the medium 33 streamlined organisational Organisational model CUSTOMER VALUE model provides better Downstream is capitalising on its term, and to live our accountability, faster and more simplified structure, continuing to purpose to energise focused decision-making, and build capability and supporting communities in the greater efficiencies. Our aim the transformation programme, MANAGING is to intensify and accelerate years ahead. to create a more competitive and ASSETS “Digitalisation and the implementation of our sustainable market position. the future of energy” strategy to become even more customer-led, more Infrastructure will provide cost-effective and to target enhanced operating performance. “Gaining a deeper resources and investment Future Energies is an avenue understanding of our where it will have most impact. for growth through the energy customers to offer transition. We are leveraging Through 2020 we made good “Building a more compelling progress in implementing the the Puma Energy footprint to deliver affordable, reliable and Downstream and value propositions” strategy despite the tough Midstream network” operating environment. sustainable energy solutions that serve our customers Transformation Programme and communities. We delivered above budget in 2020 on the two pillars – Operational Excellence and 2010 2019 2023 Time Focused Growth – across all We are here lines of business and in each

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR STRATEGY

Making operational • Implementing a Vendor OPERATIONAL improvements Management Inventory Communication, Key operational Despite the challenges of (VMI) model improvements COVID-19, we made substantial cooperation and EXCELLENCE It was a true team effort progress on several operational • Transport optimisation including people from a range of teamwork have been improvements (OIs). We focused different areas such as business on optimising our operations, at the heart of our support, credit, procurement, • Optimising returns from differentiating ourselves from success in delivering sales and transport. It enabled our Retail-owned others, increasing the size of our us to generate US$4m of value strong results through portfolio current business, and generating in 2020. our operational sustained performance. • Developing a lubricants Looking ahead improvements. In total, we achieved US$78.9m distributor network We have a strong pipeline of of benefits from our OIs OIs to support our business We are working in 2020, beating our target • Enhancing partner transformation. Key initiatives together on a of US$67.8m. capability to deliver 34 focused on improving standardised best our customer offer Spotlight on transport Operational Excellence include: way that helps us optimisation method of site operation • Increasing lubricants We implemented several (MOSO) best practices, transform our volume in Africa through actions to optimise our transport optimisation, processes and our high-performance transport and logistics procurement optimisation, mind-set – in order lubrication solutions process to be more efficient and cost reduction and process and reduce our transport improvement initiatives in to be more efficient costs. These include: Finance and IT. and more profitable. • Negotiating lower In addition to improving our The key is to apply transport rates own operations, other strategic these global best ways • Enforcing more efficient initiatives are improving the in the right way locally distribution rules, for example customer experience and cut-off time for ordering and adding value to our business across our footprint. payment, delivery windows too. These include our Loyalty and order size programme, convenience retail • Optimising delivery development projects, global scheduling and the utilisation fleet card and optimum retail of trucks network planning. US$78.9M • Streamlining the loading Value generated from process in terminals operational improvements in 2020

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR STRATEGY

Divesting our non-priority impacted by this transaction Key divestments markets and we will continue to invest FOCUSED In line with our strategy, Streamlining our to enhance our service to GROWTH we continued to divest from portfolio allows us bitumen customers. These noncore countries in order to to focus, simplify two key transactions help us US$200M Completion of sale streamline our Downstream and accelerate where demonstrate our commitment portfolio so that we can increase to focus on core growth of Paraguay business our focus on our core countries we believe we can markets. They have also given to Impala during 2019 where we have the strongest make the greatest our former operations in and 2020 foundation and potential to difference and deliver Paraguay and Australia a bright grow and excel as the No1 or new future of investment and No2 Downstream energy the most value. growth under new ownership. business. By concentrating on AU$425M In total we have generated core high-potential countries, Sale of our Australian US$355m net cash inflow from we gain the twin advantage of Streamlining our commercial and retail divestments in 2020, which we 35 greater simplicity and greater Downstream portfolio fuels business will use primarily to invest in our impact, which in turn will help Closing our transactions core high-potential countries. us to accelerate our growth in Paraguay and Australia and success. In January 2020, we successfully Looking ahead completed the sale of our Our portfolio prioritisation While exploring the options to business operations in Paraguay is underpinning the focused secure the best possible future to Impala Terminals Group, growth pillar and is for our operations in non-core a joint venture between complemented by our strategic countries, we have continued Trafigura and the IFM Global investment programmes. to manage and maintain them Infrastructure Fund. This to the highest standards. Our transaction generated priority is always to ensure safe, US$200m in 2019 and 2020. secure operations and to keep delivering for our customers. Despite the challenges of In addition, throughout the COVID-19, we also successfully divestment process we engage closed on time on 30 June closely with the Puma Energy 2020, the sale of our Australian employees in the affected commercial and retail fuels operations, keeping them business to Chevron Australia informed and supported all Downstream Pty Ltd, for the way. AU$425m. Our bitumen business in Australia is not

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR STRATEGY

Forging ahead with • Putting the customer at the Future Energies heart of everything we do. Our Phase 1 projects NEW BUSINESS Our Future Energies business • Incorporating commercial and unit is a key engine driving the Puerto Rico Status: Under construction risk management into our Enhancing the • 1,200kW ground mounted solar DEVELOPMENT third pillar of our strategic daily activities to drive supply security • 2,050MWh generation per annum transformation framework: shareholder value. of our energy • 92% grid consumption displaced per annum

New Business Development • Deploying creative solutions at Bayamon • 1,449MT reduction in CO2-eq emissions Finding New Sources of Value: across our value chain. terminal with per annum 1. Saving costs and enhancing • Implementing projects solar power Puma Energy’s commitment in a safe, disciplined and to sustainability by supplying timely manner. Ghana Status: Under construction our assets with renewable • Operating with our purpose at Solarising our • 10 retail stations plus 4 Terminals/Depots energy delivering cleaner, the heart of everything we do. retail stations • 421kW rooftop solar cheaper and more and aviation • 227kWh battery storage reliable electricity We are implementing our depot • 524MWh generation per annum 36 2. Developing projects Future Energies projects in • 35% grid and diesel consumption alongside our existing phases to showcase our skills displaced per annum and expertise to our core customers in existing • 370MT reduction in CO2-eq emissions per annum Puma Energy geographies markets and customers. For Phase 1, we are investing in 3. Developing new customers, Papua New Status: Under construction solar projects across assets new partnerships and new Guinea • Speybank and Aircorps terminals in Lae in some of our key markets projects in existing and Implementing • 278kW rooftop solar including Puerto Rico, Ghana, new geographies. solar systems • 401MWh generation per annum Papua New Guinea, Nicaragua across our • 79% grid and diesel generator Future Energies: and Honduras. terminals consumption displaced Our vision is to enable energy Looking ahead • 284MT reduction in CO2-eq emissions per annum equity for all as the leading Building on the success of energy services provider in Phase 1, we have approval to Nicaragua and Status: Completed in March* high-potential markets. embark on Phase 2, where Honduras • Two retail stations in Nicaragua and Honduras We will achieve this by: we will continue to invest in Working with • 66kW rooftop solar • Improving energy access as implementing more projects in best-in-class • 53MWh generation per annum (Honduras) We are implementing our Future a trusted supplier of clean our selected countries in 2021. local providers • 45MWh generation per annum (Nicaragua) energy to our customers to bring solar • 18% grid and diesel consumption Energies projects in phases to Read more in the Future and local communities. solutions displaced per annum Energies section on page 65. showcase our skills and expertise to • 70MT reduction in CO2-eq emissions per annum our core markets and customers. * Out of period: completed March 2021.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

OUR ESG PRINCIPLES AND COMMITMENTS Looking ahead Ensuring strong governance ESG is a key energiser for us. We make sure we listen to all our stakeholders but we Our commitment to corporate responsibility is It helps us sharpen our long- lead our ESG from the top, with oversight from both held commitment to the Board and the Executive Committee. rooted in our purpose, values and culture. We responsibility and delivering know our commitment to robust environment, a sustainable positive impact for all our key stakeholders. ESG framework governance social and governance (ESG) principles is Looking ahead, our aim is and accountability essential to the sustainable growth and success to optimise and further operationalise ESG throughout of our business and to the communities we serve. Puma Energy. We want to Board Level Excom make it part and parcel of our Accountability Accountability everyday operations, helping to Creating our ESG framework In creating our framework, Assessing our guide our decisions, set targets, 37 for energising communities we embedded best practice ESG performance assess our performance and Taking a responsible approach insights and considered the key Since launching our ESG colour our future. to providing reliable, affordable, needs of all our stakeholders. framework in 2020, we have Excom/Excom -1 high-quality energy solutions for Just as our values guide us all Read more about our ESG framework at been focusing on the right local people and businesses in https://pumaenergy.com/en/ in living our purpose, our ESG Steering Committee responsibility/esg actions to achieve maximum often remote and underserved principles and commitments impact. To help us with this task, communities has always been at Focusing for maximum provide the blueprint for action. we have engaged the Carbon the heart of our business, as has positive impact To this end, in 2021 we will Disclosure Project (CDP) and our passionate, agile, can-do Our aim is to focus where we enhance our ESG governance are participating in the S&P ESG Core Working Group spirit. Building on this strong can make the biggest positive and embed our ESG principles Global Corporate Sustainability chaired and supported by Head of ESG foundation of enterprise and difference long-term. In this and commitments so they Assessment (CSA). We are also responsibility, we created and spirit, we are concentrating inform the things we do, assessing our material KPIs and launched our ESG framework our efforts to drive substantial and don’t do, to energise will be implementing our strategy in 2020. and tangible impact on the UN communities around the world. Sustainable Development Goals and plan to drive the most impact The framework is designed to (SDGs) where we can make on these key areas in 2021. integrate best practice ESG into the biggest impact. So we are Continuing to evolve our everyday action throughout focusing above all on goal 7: and enhance Puma Energy, and to create a ensuring access to affordable, We continue to evolve and Named individuals from within the business units and functions bold and ambitious set of reliable, sustainable and enhance our ESG governance, tasked with embedding policy, delivering campaigns and ensuring principles and accompanying adherence to the framework. modern energy for all. management and accountability. commitments against which to hold ourselves accountable.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

ESG link: OUR ESG PRINCIPLES AND COMMITMENTS Throughout the report, we use this icon to highlight progress against our ESG framework.

1. Assess all 2. Apply good 3. Promote 4. Invest in 5. Achieve zero 6. Target net zero 7. Connect 8. Keep local 9. Provide our 10. Promote equal business activities, industry practice transparent technology carbon in our environmental communities to prosperity employees and opportunities strategy and an ethical and participatory and solutions operations loss a secure, reliable at our heart business partners and foster developments, approach engagement to support the by 2030 and sustainable with a safe and a just and and new investment wherever on key ESG equitable energy power supply healthy working inclusive culture and offset decisions we operate issues with all transition and unleash the environment Our principles against ESG stakeholders transformational principles opportunities this brings

1.1 Achieve robust 2.1 Operate in 3.1 Actively 4.1 Grow our 5.1 Optimise our 6.1 Achieve zero 7.1 Improve access 8.1 Enhance local 9.1 Achieve zero 10.1 Ensure equal 38 baseline ESG an ethical and engage with local energy transition energy use and major spills to reliable, economic harm for our opportunities assessments and transparent way communities on all offer for customers move to renewable 6.2 Create sustainable power prosperity, employees and throughout the data across all 2.2 Respect relevant ESG issues 4.2 Partner with energy sources biodiversity supply in high- especially in business partners employee life cycle (material) ESG international best 3.2 Galvanise peers, trusted local 5.2 Reduce our management plans potential markets, high-potential 9.2 Meet world- 10.2 Create an issues and regions practice principles convene expertise entities to develop scope 1 and 2 for sensitive areas and beyond markets class standards inclusive and 1.2 Develop the 2.3 Report our and support energy transition emissions intensity and all new 7.2 Support local 8.2 Protect and on emergency respectful work internal capacity ESG performance governments and solutions and year-on-year developments markets and create jobs and preparedness environment to effectively annually, in line regulators to drive capacity, with 5.3 Embed 6.3 Improve our governments to businesses 9.3 Set the industry 10.3 Champion implement the with international ESG progress a focus on high- decarbonisation water usage at enable the highest 8.3 Invest in the benchmark for human rights ESG framework good practice 3.3 Join, and potential markets ambition into our all sites and fuel quality communities in road safety across our business and deliver on our standards where appropriate, supply chain and retail stations standards possible which we operate and supply chain commitments and investor lead industry build capacity to throughout the 6.4 Take a circular transition journey 8.4 Understand 1.3 Apply our expectations dialogue and best enable this shift approach to social impact in ESG framework practice business activity, our communities to all investment programmes in maximising and mitigate decisions and ESG application, recycling and accordingly business activities decarbonisation minimising waste and reporting 8.5 Align social Our commitments 6.5 Align to good investment with international local development industry priorities and environmental achievement of practice principles the UN SDGs and standards

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

STAKEHOLDER Our business thrives on close engagement with ENGAGEMENT our key stakeholders. In 2020, not least due At Puma Energy, building a strong, to the extraordinary sustainable business means energising demands of COVID-19, we increased the communities through positive economic, intensity of our social and environmental impact. engagement to ensure everyone was kept fully informed and involved. In a very challenging To do this well, we work closely respond appropriately. year, we emphasised with a diverse range of partners This section highlights who and stakeholders. We take time our key stakeholders are, and strengthened 39 to engage with all our key what they tell us matters to our key stakeholder stakeholders, not just to tell them and how our business relationships more them what we are doing but responded in 2020. also to listen to them and than ever.

Our key stakeholders are:

Retail customers Commercial customers Employees Business partners Local communities Governments and Investors Our products and Our commercial Our employees are We build strong We aim to support regulators Our shareholders and services are used by customers rely on us at the heart of our relationships with all and empower the As a responsible debt providers play an millions of people to provide them with success. We aim to our business partners communities where business, we are important long-term around the world. high-quality tailored create a safe, trusting, to ensure we are we live, work and sell. committed to engaging part in our business. The continued strong energy solutions to respectful and collectively energising By ensuring we make constructively with We maintain close and performance of our support their growth inclusive culture so communities. Our a positive contribution, governments and supportive relationships business would not and success. our colleagues can business partners include we can help build regulators in the characterised by be possible without be proud of their suppliers, contractors, thriving communities and countries in which openness, transparency understanding our work and empowered franchisees and dealers. strengthen our business. we operate. and mutual understanding. customers’ needs to succeed. and expectations.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

STAKEHOLDER ENGAGEMENT

Retail customers How we responded in 2020 Commercial customers • Direct support for communities and How we engage customers during the pandemic How we engage • We conduct regular market research to • We have regular dialogue and meetings • Keeping our retail outlets open, providing understand what our consumers think with commercial customers security of supply of fuel and other essential • Feedback from our Puma Energy colleagues items in safe, clean convenience stores • We attend industry events and conferences who serve customers every day • Acceleration of digital offers such as Click What mattered most to them in 2020 What mattered most to them in 2020 and Collect and online deliveries, reducing • Price and quality of products and services • Price and quality of products and services COVID-19 risks and giving customers • Security of supply • Security of supply of fuel and other more choice in how they shop • Trust essential products • Global Customer Week, a week-long • Data privacy • Safety and security during the pandemic celebration including customer engagement • Climate change and the environment • Climate change and the environment and rewards to outstanding dealers, retailers and business partners How we responded in 2020 40 Development of the retail offer, including: • Further rollout of our eAviation technology • Launching the PRIS loyalty programme • Research and development and testing • Boosting convenience retailing through the for new products in bitumen Super 7 refurbishment programme • Implementation of high-performance • Developing Super 7 online to drive category lubrication solutions for businesses management and execution • Exploring renewable energy solutions to support the energy transition and meet the future energy needs of our customers

See the Business review from page 50 See the Business review from page 54

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

STAKEHOLDER ENGAGEMENT

Employees Business partners How we engage How we engage • We know that employee experience drives • We work closely with business partners customer experience – that engaged and to share our plans and policies, provide energised colleagues deliver for our information and support, and develop customers and energise communities joint initiatives for mutual gain • We have an open, collaborative and inclusive What mattered most to them in 2020 management culture and structure • Clear standards and policies • We engage regularly with our employees, • Support for their aims and ambitions through site visits, regular town hall meetings, email, safety briefings and team meetings How we responded in 2020 together with the intranet and our regular • Dedicated dealer training and smart Energiser emails/notes to all employees support tools • We have a new ‘Your Voice’ annual • New risk-based policies for agents 41 employee engagement survey and intermediaries • We support career development and • Set up a new Shared Service Centre progression through training programmes • Appointing P&C business partners to work • Recognising and celebrating success with in Latin America and the appraisal process closely with the business segments the Puma Awards, Going the Extra Mile What mattered most to them in 2020 • Creating a contemporary digital learning (GEM) and Making a Great Individual • Opportunities for development and progression platform with an emphasis on licence-to- contribution (MAGIC) programmes • Opportunities to share ideas and make operate skills, general business skills and • Provided access to wellbeing programmes a difference dedicated Pumaway learning (e.g. Commercial and encouraging leaders to carry out • Providing a safe place to work Academy and Leadership Development wellbeing checks with their teams programmes) • Diversity and inclusion • Established a working group to make the • Developing training to grow the Future most of flexible working for employees How we responded in 2020 Energies business • Working with the Remuneration Committee • Developing a new People & Culture (P&C) • Enhancing safety tracking to provide to introduce changes to strengthen talent strategy that aligns closely with the purpose better granularity to identify risks and attraction and retention and Group strategy improve performance • Launching the Women’s Initiative Network • More regular communication with employees • Embedding the Puma Values through the talent to help female colleagues accelerate the including pulse surveys throughout the attraction and onboarding process as well as development of their capabilities and pandemic and the first company-wide the performance management process leadership qualities, and engage with the ‘Your Voice’ survey of employees, which wider community and local women’s initiatives achieved an engagement rate of 75% in 2020 See the People & Culture section on page 71

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

STAKEHOLDER ENGAGEMENT

Local communities Governments and regulators Investors How we engage How we engage • We have deep links with the communities • We have regular dialogue with our we serve and are part of. In many cases these shareholders. In doing so we ensure that relationships have been built up over a number shareholder views are brought into our boardroom of years through our ongoing local presence and considered in our decision-making • Our links are further strengthened through • We arrange debt facilities from a diverse group targeted community development of providers. We engage with these providers programmes, for example on road safety and credit ratings agencies through regular meetings, presentations and webcasts to What mattered most to them in 2020 ensure that they remain fully informed on • Maintenance of fuel supply, including during all relevant areas of our business incidences of pandemics or natural disasters What mattered most to them in 2020 • Environment and climate change • Openness and transparency 42 • Behaving in an ethical and responsible manner • Financial performance • Road safety • Business resilience during the pandemic How we responded in 2020 • Capital structure and debt profile • Support throughout the pandemic • Strategy and business model • Be Puma Safe: road safety campaign • Credit rating • Ongoing community initiatives to support • ESG performance local communities where we can make How we engage How we responded in 2020 most difference How we responded in 2020 • We build strong relationships with governments • Ongoing dialogue to ensure security • More active and regular dialogue with and regulators through ongoing communication of supply during the pandemic shareholders and banks and information sharing and regular face-to- • Stakeholder mapping exercise across • Launched our ESG framework face meetings, including senior level contact our markets • Engaged the Carbon Disclosure Project (CDP) What mattered most to them in 2020 • Publication of our ESG framework showing and are participating in the S&P Corporate • Security of energy supply all our stakeholders how we will approach Sustainability Assessment (CSA) • Post COVID-19 recovery and growth the energy transition, corporate governance • Successful sale of Australian fuels business in and social responsibility June and completion of Paraguay sale during • Supporting the transition to lower- 2019 and into 2020 carbon economies • Prepaid US$300m of the 3-year term loan • Road safety maturing in May 2021 • Appointment of our independent Chairman, Image above: See the Communities section on page 81 Donation to Botswana police René Médori

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

KEY PERFORMANCE INDICATORS We assess our performance across a range of financial and non-financial measures. In 2020, we added two new KPIs: operational improvements and talent.

Financial and operational KPIs 43 Rationale and performance Sales volumes (k m3) This figure is a strong indicator of the Group’s In 2020 volumes have declined by about 10% versus 2020: 20,118 Downstream market share. Management targets the prior year across most of our countries due to Volume of oil products sold to Puma Energy growth in sales volumes that exceeds growth COVID-19 related lockdowns and reduced demand. 2019: 22,441 customers from the retail, wholesale, in target markets. B2B, aviation, LPG, bitumen and 2018: 22,171 lubricant sub-segments. 2017: 22,794

2016: 21,968

Rationale and performance Throughput volumes (k m3) This figure reflects the level of Midstream business In 2020 our throughput volume has shown a slight 2020: 14,533 done with third-party customers, through increase with reduced activity mainly at our terminals Volume of oil products handled on behalf throughput agreements. in Estonia and Ivory Coast, which was offset by 2019: 14,195 of third-party customers. This figure includes increased throughput at our terminals in the UAE A large part of storage revenues are generated 2018: 13,435 neither storage volumes for our own and Angola. Downstream business, nor volumes stored by capacity rental agreements (not reflected in 2017: 16,634 for third-party customers under capacity throughput volumes). At the same time, a large share of our terminals is used to support our Downstream rental agreements. 2016: 19,693 activities, and is therefore not reflected in this statistic.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

KEY PERFORMANCE INDICATORS

Financial and operational KPIs continued…

Rationale and performance Gross profit (US$m) This figure provides a top-line view of our profitability, Gross profit in 2020 was impacted by the decline in our 2020: 1,205

especially in Downstream markets. We optimise sales sales volume as a result of COVID-19 related restrictions 2019: 1,265 Revenue from sales, less the cost of purchase performance by increasing sales volume and/or partly compensated by US$82m of support from our and delivery of products. adjusting pricing to increase unit margin. Gross profit core shareholder suppliers in the form of an interim 2018: 1,280

shows the effectiveness of these two strategies price adjustment in the second quarter of the year. 2017: 1,672 in combination. 2016: 1,601

Rationale and performance Unit margin (US$/m3) This measures pricing performance in free markets Unit margins have increased in 2020 as a result of 2020: 52 and is usually the key factor to determine profitability reduced volumes, but gross margin benefiting from 2019: 48 44 Downstream gross profit divided by sales and the return on investments in regulated markets. core shareholder suppliers support in the second volumes. This is the main indicator of basic quarter of the year. 2018: 52 profitability after deducting the purchase price 2017: 66 and variable costs from the sales price. 2016: 66

Rationale and performance EBITDA (US$m) (including discontinued EBITDA is a key measure of profitability. It EBITDA is largely unchanged when compared to the 2020: 533 operations and excluding IFRS 16 impact) demonstrates the ability to generate cash flow that prior year as the reduction in gross margin has been 2019: 530 Earnings before interest, tax, depreciation can be reinvested to stimulate future growth and is offset by swift measures to adjust our cost base. and amortisation. used as a base for the valuation of a company. 2018: 554

2017: 740

2016: 755

Rationale and performance Operating profit (US$m) Operating profit was impacted by lower gross profit, 2020: 2.8

and non-recurring impairment expenses recorded on 2019: -327 Profit after depreciation and amortisation goodwill and fixed assets mainly on our operations but before interest and tax. in Ghana and Puerto Rico but also as fair value 2018: 161

adjustments on assets which are part of the ongoing 2017: 322 divestment programme of non-core operations. 2016: 383

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

KEY PERFORMANCE INDICATORS

Financial and operational KPIs continued…

Rationale and performance Net tangible fixed assets (US$m) Indicative total value of our underlying asset base. The decrease in fixed assets is due to both 2020: 2,037

Fixed assets are kept at historic costs less depreciation expenses and negative foreign 2019: 2,421 Total value of property, plant and equipment accumulated depreciation. currency translation effects, while capex was less cumulative depreciation. maintained at reduced levels as a result of 2018: 3,159 a focused investment programme. 2017: 3,614

2016: 3,329

Rationale and performance Consolidated net worth (US$m) This gives an indicative value for the business. It is not The decrease in net worth mainly reflects the loss for 2020: -387 a proxy for fair market value as no allowance is made the year of US$348m as a result of impairments and 2019: 447 45 Consolidated value of shareholders’ equity. for future growth, but it does give shareholders an also US$58m of foreign currency translation effects This reflects the net book value of Puma indication of the minimum value of the business. as part of other comprehensive income from the 2018: 1,581 Energy’s assets at the year end. devaluation of some of the Group’s currencies against the US Dollar. The consolidated net worth was also 2017: 2,263

reduced by US$403m repurchase of shares. 2016: 1,900

Rationale and performance Compound annual This measure is used to monitor medium-term After significant growth up to 2016 we have been 2020: -10%

growth rate (CAGR) sustainable growth. Three-year averaging limits experiencing lower EBITDA due to compressed 2019: -11% the distorting effect of a specific, major transaction unit margins in some of our key markets such Annualised overall gain in EBITDA averaged in a single 12-month period. as Angola and Australia. 2018: -6% across a three-year period. 2017: 4%

2016: 11%

Rationale and performance Operational improvements Our operational improvements include optimising returns Despite the challenges of COVID-19, we made New KPI for 2020 from our Retail portfolio by upgrading our network and substantial progress on several operational US$78.9M Our key operational improvements focused enhancing our customer offer with a greater number of improvements (OIs). In total, we achieved Value generated from on improving and optimising our business convenience outlets; optimising transportation costs; US$78.9m of benefits from our OIs in 2020, operational improvements processes, differentiating ourselves from others enhancing partner capability to deliver our customer beating our target of US$67.8m. in 2020 and generating sustained performance. offers and increasing lubricants market share in Africa by providing high-performance lubrication solutions.

PUMA ENERGY ANNUAL REPORT 2020 GROUP OVERVIEW

KEY PERFORMANCE INDICATORS

Non-financial KPIs

Rationale and performance Work-related fatal injuries We monitor Puma Energy’s safety procedures both 2020 0 2017 0 within our own direct operations and within our dealer 2019 0 2016 0 Total number of direct work-related retail network. We had zero fatalities at both fatalities among Puma Energy’s employees employee and directly supervised contractor levels 2018 1 and directly supervised contractors. in 2020, reinforcing our vision of zero harm.

Rationale and performance Lost Time Injury Frequency Rate This is an absolute measure of safety levels in facilities. On a constant perimeter basis, excluding our Australia 2020: 0.47

We acknowledge that any injury resulting in an fuels business, we saw a reduction in our LTIFR from 2019: 0.74 Number of lost time injuries multiplied by employee or directly supervised contractor being off 0.74 to 0.47. This represents a more than 30% 1,000,000 divided by total man-hours worked. 2018: 1.6 work for any length of time comes at both a huge improvement in performance. 46 Also known as LTIFR. personal cost and considerable business impact. 2017: 1.9 Management closely monitors LTIFR trends to inform 2016: 0.9 corrective measures that must be applied and to continuously improve safety performance.

Rationale and performance Workforce (by continent) This indicates the total employees managed by Our workforce comprises 54% African, Africa Puma Energy, both permanent and temporary, on the 15% Latin American, 10% European and Europe The number of employees directly managed payroll and employed through agencies. Monitoring 21% Asia-Pacific employees. LATAM by Puma Energy, broken down by continent. headcount is key to ensuring effective control and MEAP efficiency of the organisation.

Rationale and performance Talent New KPI for 2020 Retaining our most talented colleagues, especially In 2020, we retained 98% of our critical and strategic those in strategic roles is a key metric for us. In 2020, talents and regrettably lost under 2%. Succession People are at the heart of our purpose of serving we equipped our leaders to become better remote plan was reviewed and put in place for all target our customers and energising communities. We managers, offered an employee assistance senior leadership roles. We constantly measure our understand the critical role the right people in programme and conducted a global employee survey internal versus external appointment ratio which the right positions play in helping us deliver our – YOUR VOICE, to gain insights into what matters partially contributes to measuring our ability to strategy. We therefore focus our investment most to our colleagues. We retained employment attract and develop the right talent and set targets on succession and capability development for and pay during the peak of the pandemic. for our business. highly-valued individuals in strategic positions.

PUMA ENERGY ANNUAL REPORT 2020 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 GOVERNANCE

Board of Directors ��99 Our Executive Committee �� 101 Chairman’s governance report �� 103 Committee reports �� 108

PUMA ENERGY ANNUAL REPORT 2020 OUR BOARD OF DIRECTORS

(i) Audit Committee Our Board of Directors brings together diverse (ii) Ethics and Compliance Committee (iii) Finance and Investment Committee energy industry professionals from around the world, (iv) Health, Safety, Security, Environment Committee who are committed to practising and promoting (v) Remuneration Committee good governance throughout the Group.

Emma FitzGerald (ii) Hadi Hallouche Pierre Lorinet (iii) (v) Baltazar Agostinho Chief Executive Officer Co-Head of Oil Trading, Trafigura Director, Trafigura Gonçalves Miguel (i) (iii) 2 years at Puma Energy. In October 2019 Hadi was appointed Co-Head 16 years at Puma Energy. Executive Board Member, Sonangol EP Emma joined Puma Energy in January 2019. of Trafigura’s Oil Trading Division. This follows Pierre is a non-executive Director of Trafigura. He 3 years at Puma Energy. Previously, she spent many years running his two-year tenure as Head of Oil Singapore holds other independent non-executive Director where he was responsible for managing the Baltazar joined Sonangol in 1997 and has held downstream Retail, Lubricants and LPG roles including with Cofco International Limited and various senior management positions in Accounting, businesses for Shell around the world. Before company’s oil and gas trading activity across Singapore government agencies such as Enterprise the Asia Pacific region. Hadi joined Trafigura Finance and Human Resources for Sonangol joining, Emma was immersed in the UK utility Singapore and the National Art Council of Singapore. Distribuidora SA and Sonangol Refinaria de Luanda industry running gas and water and waste in 2011 as an LNG Trader. Prior to joining Until September 2015 Pierre was the Chief Financial Trafigura, Hadi spent seven years in Royal SA. He was a member of the Executive Committee networks for National Grid and Severn Trent Officer and Managing Director Asia-Pacific for of the Board of Directors of Sonangol Luanda Water. She has served on boards in both an Dutch Shell. Hadi, an Algerian national, Trafigura. Pierre joined Trafigura in 2002 and became holds a PhD in Economics. Refinery between 2009 and 2012 and Chairman of Executive and Non Executive Director capacity CFO and Board Director in January 2007. In August the Executive Committee of Sonangol Academia including Severn Trent plc, Cookson Group plc, 2012 he also became MD for the Asia-Pacific region. between 2014 and 2017. In November 2017, he was Alent plc and DCC plc. She sits on the advisory Before joining Trafigura, Pierre worked for Merrill appointed to the Executive Board of Sonangol EP. board of Oxford Science Innovation. Emma Lynch and at Banque Indosuez. Pierre graduated Baltazar holds a BSc in Business Economics from holds a doctorate in Surface Chemistry from from Ecole Supérieure de Commerce de Paris in the University of Salford and an MA in Money, Oxford University and an MBA from France and holds an MSc in Finance with distinction Banking and Finance from the University of Manchester Business School. from Lancaster University in the UK. He is a French Sheffield/Sheffield Management School. citizen and resides in Singapore.

PUMA ENERGY ANNUAL REPORT 2020 OUR BOARD OF DIRECTORS

(i) Audit Committee (ii) Ethics and Compliance Committee (iii) Finance and Investment Committee (iv) Health, Safety, Security, Environment Committee (v) Remuneration Committee

100

Filomena Maria Gamboa Carvalho René Médori Graham Sharp (i) (iii) Mike Wainwright (iii) (v) dos Santos e Oliveira (v) Non-Executive Chairman, Puma Energy Non-Executive Board Member, Puma Energy Director, Trafigura Executive Board Member, 1 year at Puma Energy. 8 years at Puma Energy. 13 years at Puma Energy. Sonangol Hidrocarbonetos Internacional René joined the Puma Energy Board as Graham joined the Puma Energy Board Mike was appointed Chief Operating Officer 3 years at Puma Energy. Non-Executive Chairman on 3 March 2020. on 27 May 2012 as its independent Non- and Trafigura Management Board member Filomena serves as a member of the Executive René holds dual French and British nationality. Executive Chairman, handing over to in January 2008. His principal focus is the Committee of Sonangol EP subsidiary for upstream He brings significant experience to the Board René Médori on 3 March 2020. He spent his management of the middle and back office activities. Her previous roles include serving as from his executive roles in the energy and early career advising multinational clients support teams for the trading division, direct a member of the Sonangol Hidrocarbonetos natural resources sectors. He also has such as Shell. Following a period trading clean responsibility for the Group’s P&L and Internacional Executive Committee, as coordinator invaluable direct experience of international petroleum products worldwide, Graham was responsibility for the Finance function at of the Sonangol EP Regeneration Program, as best practice in corporate governance and a co-founding Board member of Trafigura. Board level. Mike joined Trafigura in 1996. a member of the Sonangol Pesquisa e Produção operating responsibly in emerging markets. Upon his retirement in 2007, Graham continued He has held various roles within the Group, Executive Committee, as a Development and René was previously Chief Financial Officer of to advise Oliver Wyman Associates and covering accounting, deals desk and middle Operations Manager of Sonangol EP, and as Anglo American, and Group Finance Director Galena Asset Management, among others. office IT development. Mike holds a BSc in Head of Reservoirs Department for the National of The BOC Group. He currently holds Non- He holds a first-class honours degree in Mathematics and Actuarial Studies from Concessionaire. Filomena joined Sonangol EP Executive Directorships at Newmont and Vinci engineering, economics and management Southampton University. in 1982. Filomena holds a Mining/Petroleum and he is also Chairman of Petrofac. from Oxford University. Engineering degree from Agostinho Neto University, Angola.

PUMA ENERGY ANNUAL REPORT 2020 OUR EXECUTIVE COMMITTEE

(i) Audit Committee Our highly experienced Executive (ii) Ethics and Compliance Committee (iii) Finance and Investment Committee Committee works closely together (iv) Health, Safety, Security, Environment Committee to set the strategy and lead the (v) Remuneration Committee transformation of Puma Energy.

101

Emma FitzGerald (ii) Andrew Kemp (ii) (iii) Deborah Binks-Moore (iv) Jonathan Pegler (ii) (iv) Chief Executive Officer Chief Financial Officer Chief Customer Experience and Communications Officer Future Energies, Infrastructure, Global Bitumen 2 years at Puma Energy. 1.5 years at Puma Energy. 1.5 years at Puma Energy. 5 years at Puma Energy. Emma joined Puma Energy in January 2019. Andrew joined Puma Energy in June 2019. Deborah joined Puma Energy in October 2019. Before joining Puma Energy in 2015, Jonathan Previously, she spent many years running Previously, he was the Group Director of Deborah started her career as a research scientist was global co-head of crude trading and head downstream Retail, Lubricants and LPG Finance at VEON Ltd and has held a number at Royal Dutch Shell, and worked in various of oil Asia for Trafigura based in Singapore. businesses for Shell around the world. Before of senior finance roles in telecommunications commercial and technical roles before specialising Prior to Trafigura, he worked for four years joining, Emma was immersed in the UK utility over 20 years, in addition to experience in the in Brand and Communications, leading her at Amerada Hess and nine years at BP, industry running gas and water and waste logistics, travel and property sectors. Most function in building trust and reputation for managing manufacturing facilities, logistics networks for National Grid and Severn Trent recently he was Regional CFO for VEON’s the Global Technology and Retail businesses assets, and trading portfolios for oil products Water. She has served on boards in both an operating companies in Pakistan, Bangladesh respectively. After leaving Shell, Deborah also and derivatives. Jonathan graduated from Executive and Non Executive Director capacity and Algeria. Prior to that Andrew was CFO worked in other industries and spent five years in City University in London with a BSc including Severn Trent plc, Cookson Group plc, of Jazz in Pakistan for three years where he the technology sector. She joined us from Alibaba in aeronautical engineering. Alent plc and DCC plc. She sits on the advisory played an instrumental role in the merger with Group, where she was Head of International board of Oxford Science Innovation. Emma Warid Telecom and the broader turnaround Corporate Affairs EMEA, and prior to that was holds a doctorate in Surface Chemistry from of Jazz’s operations. Before joining the VEON at eBay. She brings her experience in digital Oxford University and an MBA from Group, Andrew held a number of senior customer, marketing and communication skills Manchester Business School. positions, including CFO of Etisalat Nigeria. to Puma Energy. Deborah holds a BSc (Hons) and PhD from the University of Dundee, UK.

PUMA ENERGY ANNUAL REPORT 2020 OUR EXECUTIVE COMMITTEE

(i) Audit Committee (ii) Ethics and Compliance Committee (iii) Finance and Investment Committee (iv) Health, Safety, Security, Environment Committee (v) Remuneration Committee

102

Alan McGown (ii) Eghosa Oriaikhi Mabhena (iv) Rodrigo Zavala (iv) Michael Schulz (ii) (iv) Chief Transformation Officer, Value Chain Head of Global Lubricants, Aviation and Downstream Head of West and Global Commercial Chief People & Culture Officer Optimisation & Procurement East Region Centre of Excellence 1 year at Puma Energy. 2 years at Puma Energy. 1.5 years at Puma Energy. 9 years at Puma Energy. Michael joined Puma Energy in March 2020. Alan is Chief Transformation Officer at Puma Eghosa joined Puma Energy in July 2019. Previously, Rodrigo joined Puma Energy in 2011 to lead the Prior to Puma Energy, Michael held various Energy and is leading the work to develop and Eghosa was an Executive Director at Baker Hughes, merger of Exxon’s Centam storage facilities. He positions at Lafarge SA Building Materials/ implement the strategy to create value from leading business units across Europe, Africa, Russia then became our General Manager in Paraguay Cement Industry as Legal Counsel, Germany; Puma’s existing businesses and to position the Caspian, Middle East and Asia Pacific. Eghosa also before becoming COO for the Americas in 2014. Human Resources Director, UK; Vice President company for future sustainable growth. Alan spent almost 10 years with Schlumberger across the He started in finance at Shell before spending – Organisation Effectiveness, Paris; Vice USA and Europe. Her expertise spans corporate and was previously Chief Marketing Officer at 11 years at Petrobras in M&A, refinery logistics President Human Resources Middle East and commercial strategy, business development, Nayara Energy in India (formerly Essar Oil). planning and marketing. Rodrigo has sat on the North Africa, Cairo. Michael most recently led operational and financial leadership, operations Prior to Nayara, Alan was the director of retail International Board of the North American the HR function for Petrofac’s global Oil & Gas strategy for the downstream Retail business management, contract management, engineering Convenience Stores Association (NACS) since and technology, supply chain and manufacturing. EPC and Engineering Services business lines at Rosneft in Russia and before that he had a 2014 and has been a member of the Coca-Cola/ as Senior Vice President Human Resources long career at BP. Among his many roles at BP, Eghosa has a Global Executive MBA, Masters and NACS Retail Council since 2019. He also sits on Bachelors in Mechanical Engineering and Project based in Dubai. He has also provided he was VP of business development and the board of agricultural companies in Argentina Management Professional Certification. She serves independent Business and Board Advisory marketing for BP retail in China, global fuels and Paraguay. Rodrigo has an economics degree on boards and her passion is in helping to shape Services in strategic human capital solutions strategy manager and general manager of from Universidad de Belgrano and an MBA from diverse work cultures, which enable women to for clients in the retail and energy sectors. retail in Poland. thrive in senior positions within organisations. Universidad del CEMA in Argentina.

PUMA ENERGY ANNUAL REPORT 2020 CHAIRMAN’S GOVERNANCE REPORT We are deeply committed to building Advancing our governance in 2020 stakeholders such as current and potential We undertook a number of steps in 2020 to commercial and financial partners� Through 2021, on our good governance. This is a core advance best in class governance. Our objective we plan to gather more data to demonstrate, foundation for excelling in energising was to ensure we had the strongest possible and work with partners to inform and enhance foundation for pursuing our purpose and our implementation and management of ESG communities around the world. customer-focused strategic transformation. across Puma Energy� Launching our Environmental, Social and Enhancing our committees Governance (ESG) framework We strengthened and expanded the role of We launched our Environmental, Social and the Audit Committee� We now have a more Governance (ESG) framework and have begun systematic review of the entire audit landscape� to embed it throughout Puma Energy. We More information can be found in the Audit recognise that this is an important aspect of our Committee report on page 108� 103 good governance, not only as a foundation for The Remuneration Committee continued its our own responsible business operations but focus on aligning the compensation of Puma also, increasingly, as a requirement of other key Energy’s senior leadership to the strategic goals

Our governance principles

Having the appropriate balance of skills, experience, independence and knowledge of the Company and industry Effectiveness to discharge duties and responsibilities effectively.

Clarifying the conduct and accountability of management, its roles and responsibilities and ensuring the alignment Accountability In 2020, we continued of management and shareholders’ interests. Having a transparent approach to corporate reporting, risk management and internal control principles and maintaining to enhance our good Transparency an appropriate relationship with the Company’s auditors. governance – notably Conducting corporate governance in a professional way without conflict of interest and free from any internal and external Independence by introducing and influence or pressure. beginning to embed Fairness Ensuring the protection and equal treatment of shareholders’ rights, including minority and foreign shareholders’ rights. our new environmental, Determining the nature and extent of risks to take in achieving the Group’s strategic objectives while maintaining sound René Médori, Non-Executive social and governance Responsibility Chairman, Puma Energy risk management and internal control systems. (ESG) framework.

PUMA ENERGY ANNUAL REPORT 2020 CHAIRMAN’S GOVERNANCE REPORT

and performance of the business� Through the Reinforcing our culture from the top Our strong, diverse leadership year, there was a particular emphasis by its Under our CEO Emma FitzGerald’s leadership, shareholders and Board on supporting Puma we have continued to build our culture of strong Across our Board and Executive Committee, we have a great range of Energy’s ongoing transformation and the related governance� This includes enhancing stakeholder experienced people with diverse backgrounds and skills. Together, our imperative to retain and attract the very best engagement� Interaction at a committee level senior leaders are focused on ensuring good governance and delivering talent� More information can be found in the has increased, with a higher number of meetings� our strategy successfully for our stakeholders. Remuneration Committee report on 116� In addition, Emma conducts monthly calls with the Board as well as regular scheduled meetings� Introducing our new Code of Business Conduct Tenure Nationality Emma also holds monthly shareholder We introduced a new Code of Business Conduct information sessions� to reinforce the behaviours needed to live our purpose and values and have rolled it out across One of the things I’ve really seen coming through Executive Executive the Group� In our new Code, we make a strong with Emma’s leadership has been transparency Board Board 104 Committee Committee and clear connection from our purpose through and truthfulness� That builds trust and engenders to the day-to-day behaviours of everyone in a sense of shared endeavour� It’s the necessary Puma Energy� More information can be found bridge between having high standards and in the Ethics and Compliance Committee report policies and having them implemented and < 1 year 3 to 5 Algerian French on page 110� borne out across the business� 1 to 2 > 5 Argentinian German Streamlining and aligning our risks Streamlining the Executive Committee 2 to 3 Angolan Nigerian British In 2020, we further strengthened our risk In 2020, as part of our strategy refresh and management structure with the creation of a reorganisation of our operating model, we Experience Diversity separate Enterprise Risk Management function� streamlined the Executive Committee to We also streamlined our risks from 29 to 18, to ensure we had the right size and mix of highly focus more intensely on the core risks to the experienced, expert leaders to take Puma business in line with our purpose, strategy and Energy forward� More information can be found Executive Executive Board Board risk appetite, and the fast-changing world in on page 101� Committee Committee which we live and work� More information can be found on page 87�

Oil & Gas/Energy Marketing & Male Engineering Communications Female Technology HR Economics Mining Finance Trading Telecommunications

PUMA ENERGY ANNUAL REPORT 2020 CHAIRMAN’S GOVERNANCE REPORT

Robust governance structure Ensuring good governance • Approving Puma Energy’s annual budget Our governance is strong and well established and five-year business plan, including its We have a robust governance In the last quarter of 2020, we at Puma Energy. investment programme It doesn’t matter structure. At its core, this includes also established a non-Board level our Board of Directors which brings Supply Committee with Trafigura. Governance objectives • Approving investments, divestments, loans what you put in together diverse energy industry The Committee has been Our approach is driven by three overriding or financing equivalent to more than 3% place in terms professionals from around the established to ensure we can benefit objectives. We seek: (but less than or equal to 25%) of the total world; our highly experienced and from Trafigura’s scale and expertise net assets of the Puma Energy Group, 1. To support a performance-driven global of corporate motivated Executive Committee to get access to the high-quality whether or not the projected amount is setting the strategy and leading the product customers expect from business focused on growth. governance – it transformation of Puma Energy; Puma Energy at the most part of an announced strategy 2. To maximise our commercial flexibility and five committees focused on competitive price. The Committee • Reviewing information on significant events won’t work if by light-touch central management that key areas at the heart of good reviews the performance of the related to the Company’s affairs governance: Audit; Ethics and arm’s length agreement between empowers individual employees at a you don’t have 105 Compliance; Finance and Puma Energy and Trafigura and local level. Key issues our Board discussed during the right culture. Investment; Health, Safety, Security, has a robust set of KPIs which are 2020 included: Environment (HSSE) Committee; reviewed frequently. 3. To balance the previous two principles by And this culture and Remuneration. promoting a strong culture of governance and • Safely delivering the business plan using effective information systems to ensure • Refreshing the five-year strategy plan has to be set right transparency and accountability. • Reorganising the operating model from the top. Board The Board of Directors • Streamlining the Executive Committee The Board comprises a Non-Executive Chairman, • Financial performance, capital structure the Chief Executive Officer and five other Board and liquidity. Read more here members who represent our major shareholders. Our Board meets at least four times a year to, Finance and among other matters, set our strategy and Executive Audit Investment oversee implementation. Committee Committee Committee The Board’s main duties and responsibilities include: Read more here Read more here Read more here • Approving the nominations of Executive Health, Safety, Committee members and such other Ethics and Security, Remuneration specialised committees as deemed necessary Compliance Environment Committee Committee • Defining Puma Energy’s strategic orientation Committee

Read more here Read more here Read more here

PUMA ENERGY ANNUAL REPORT 2020 CHAIRMAN’S GOVERNANCE REPORT

Roles and responsibilities of our Chairman Our Chief Executive, Emma FitzGerald, chairs our The main duties and responsibilities of the and CEO Executive Committee. Emma is responsible for: executive team include: Good governance is Puma Energy has had separate Chair and • Managing the Company • Implementing the strategic vision defined Chief Executive functions since 2012. at the core of Puma • Reporting the Company’s results and outlook by the Board of Directors Energy. It gives us Our Chairman, René Médori, is responsible for: to shareholders and the financial community • Providing organisational direction on behalf • Leading our Board and ensuring it makes • Overseeing the strategic direction of the Company. of the Board strength, it reinforces effective decisions • Advising the Board on decisions and business Executive team matters, ranging from strategy planning and our relationships with • Maintaining good relations between our Our highly experienced executive team, which policy to investment and risk stakeholders and Board and shareholders was streamlined in 2020, takes decisions to grow • Representing us in high-level discussions with our business effectively and profitably. Puma • Setting financial plans, monitoring and provides the foundation evaluating the implementation of these plans governments and other important partners Energy has a lean and agile management 106 and ensuring that any necessary adjustments for fulfilling our core • Chairing the Board’s activities and our Finance, structure that enables us to make quick, robust are made if required purpose: to energise Supply and Audit Committees decisions in a transparent way. communities to serve our customers’ needs Areas of focus in 2020 and drive sustainable Strategy acceleration People and Culture During the year, the Board paid • Reorganising the operating model • Setting a new People & Culture strategy growth. particular attention to the • Streamlining the Executive Committee • Further embedding our purpose and values following activities: • Pressing on with operational improvements

Executive Committee

Environmental, social and Financial strength governance (ESG) • Cost reductions • Launching the ESG framework • Deleveraging • Consolidating ESG principles • Liquidity and commitments • Trafigura support

PUMA ENERGY ANNUAL REPORT 2020 CHAIRMAN’S GOVERNANCE REPORT

• Ensuring that systems and structures are in Subsidiaries and joint ventures Trafigura’s primary trading businesses are and their derivatives. Sonangol gives us crucial place to provide effective management and In most countries, we operate through a local involved in the supply and transport of crude oil, expertise and knowledge of Sub-Saharan support for employees subsidiary. We have more than 200 companies petroleum products, renewable energies, coal, African markets. in more than 60 jurisdictions around the world. refined metals, ferrous and non-ferrous ores and • See our executive team section on page 101 Change in shareholding structure Most subsidiaries are either wholly owned or concentrates. It is the world’s second-largest for details of our leadership team� In March 2020 a shareholding restructuring majority owned. In some countries, we have joint independent non-ferrous trading company and transaction was initiated between Trafigura and Our committees ventures with local or state-owned businesses. the third-largest independent oil trader. Cochan Holdings to reduce Cochan Holdings We have appointed the following committees A General Manager oversees each local business, We are one of Trafigura’s largest suppliers of stake in Puma Energy by selling shares in our to ensure the smooth and effective running of supported by regional and central functions, Midstream services, such as storage and Group to Trafigura. Hereafter, Puma Energy our business: and they are accountable to their regional bunkering, which in turn provides Puma Energy bought back and cancelled these shares. We • Audit Committee Chief Operating Officer. with stable cash flows. Trafigura is a preferred funded the repurchase with a subordinated • Ethics and Compliance Committee Unless contrary to local requirements, each supplier of petroleum products to Puma Energy shareholder loan amounting to US$390m from 107 • Finance and Investment Committee subsidiary’s Board includes at least one member and accounts for roughly two-thirds of our supply. Trafigura with an initial tenor of seven years. of the executive team. The General Manager is • Health, Safety, Security, Environment This special relationship provides Puma Energy with As a result of this transaction, Cochan Holdings not normally on the Board, unless there is a local (HSSE) Committee preferential access to the international markets. ceased to be a significant shareholder in Puma requirement. For our investments in associates, • Remuneration Committee Energy and Trafigura’s shareholding in Puma the executive team chooses a Puma Energy For more information about Trafigura, Energy increased to 55.6 percent. Based on • Supply Committee (Q4 2020). representative on a case-by-case basis. visit: www.trafigura.com agreement between the shareholders, the power .anaging our business responsibly Ownership and shareholders Sonangol to direct the relevant activities of Puma Energy We employ more than 7,100 people from We operate independently of our main Established in 1976, Sonangol is ultimately lies solely with its Board of Directors, and over 40 countries, and have implemented a shareholders and strategic partners, Trafigura a state-owned company whose mission is shareholders’ rights are only protective in nature. structure of global, regional and local offices to and Sonangol; however, we can draw on their the management of hydrocarbon resource Trafigura appoints three out of eight directors, ensure we manage our business responsibly� management expertise and market knowledge. exploration and production in Angola. Sonangol and decisions by our Board of Directors are Holdings Lda, the direct shareholder of the taken by simple majority. Trafigura therefore We are committed to diversity and inclusion� Trafigura Puma Energy Group, is governed as a private does not have the majority of decision-making Our approach is to create an inclusive and Trafigura is one of the world’s leading company and has strict standards to ensure power in our Board of Directors. The transaction respectful working environment and embed international commodity traders, specialising in efficiency and productivity. did not alter the existing shareholder agreement. a philosophy of “we all win together”� the oil, minerals and metals markets, with 8,619 Therefore, the increase in Trafigura’s employees across 48 countries. In this context, Sonangol works to become Find out more in our section on operating shareholding did not result in Trafigura gaining a reference in the international market. responsibly on page 68� Founded in 1993, Trafigura is owned by its control over Puma Energy. Regulatory approval The company’s activities include exploration, management and employees. It has achieved for the restructuring was granted in June 2020. substantial growth in recent years, growing development, marketing, production, turnover from US$18bn in 2004 to US$147bn transportation and refining of hydrocarbons in 2020.

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE AUDIT COMMITTEE We apply strong audit controls and The main activities rise to a Remuneration .thics and compliance Key responsibilities through the year Committee review� The focus The Committee reviewed processes across the Group as part of • Overseeing the financial The Audit Committee met of this review was on the and approved the new Code our ongoing commitment to robust risk reporting and disclosure five times in 2020. design and implementation of of Business Conduct for a share-based compensation implementation throughout the process of the Group The Committee plays an management and good governance. scheme that is more tailored Group� It also discussed the • Monitoring the effectiveness integral part in Puma Energy’s and aligned to the Puma review of the Speak Up policy of the Group’s Internal governance framework by Energy requirements and and training throughout the Audit function and providing oversight of the recognises the tax and business� Discussions were reviewing any Group’s financial reporting, accounting implications of held concerning the compliance material findings risk management and internal any such approach� This is risk assessment with areas controls and internal and • Overseeing the relationship discussed in the Remuneration recommended for further external audit. The main focus with the external auditors, Committee report on page 116� review and implementation in 108 of the Committee through the including agreeing their 2021 including modern slavery, year was to review the key Enterprise risk management fee and assessing anti-bribery and corruption internal audit findings for A review of the Group’s risk their independence and data privacy� For more 2020 and the 2020 balance framework identified five and effectiveness information see the Ethics and sheet review. The Committee key risk areas which could • Establishing procedures Compliance Committee report also reviewed the 2020 particularly impact 2020 for receipt, retention and on page 110� deliveries� This cluster forms The Committee meets at least treatment of complaints internal audit plan and Members of the the basis on which Puma twice a year. received by the Company discussed updates. committee Energy will focus its risk regarding accounting, The meetings are also attended The 2019 financial management� The Committee Chair: Graham Sharp internal controls or by the Chairman, Chief statements and audit recognised the importance auditing matters The 2019 financial statements Christophe Salmon Executive, Chief Financial of not just reporting risk adopted IFRS 16 for the first CFO, Trafigura Officer, General Counsel and • Engaging independent but its management too� advisers as it deems time and while no material Mark Irwin the lead partner from EY. Consequently, the Committee necessary to carry out deficiencies were noted by Director, Trafigura Others who attend on a regular established Executive basis by invitation include the its duties the auditors, the accounting Committee sponsorship for Baltazar Agostinho Head of Internal Audit and the • Providing Board treatment for the share-based managing risk and created Gonçalves Miguel Global Head of Compliance oversight of the Ethics compensation scheme gave better alignment between the Executive Board Member, together with other members and Compliance regions� Sonangol EP of the finance function. Committee activities

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE AUDIT COMMITTEE

Internal audit recommend that the Company Future focus It became clear in March 2020 take CEND (Confiscation, The Committee discussed the that the fieldwork component Expropriation, Nationalisation audit strategy for 2021 and is of Internal Audit was being and Deprivation) insurance for looking forward to resuming curtailed by severe travel a limited number of countries. usual fieldwork patterns in the restrictions worldwide as second half of the year. Delegation of authority (DoA) a result of the COVID-19 The Committee approved a The plan for 2021 and beyond pandemic. The Committee reshaped DoA based on Puma is for the Audit Committee to mandated alternative audit Energy’s new operating model. keep meeting four times a year. approaches (particularly The aim is to empower the continuous auditing) to business to a greater extent compensate for this and also while still keeping an adequate identified key areas of focus. 109 balance in terms of control and Insurance programmes oversight. It also includes an The Committee reviewed the amendment relating to fixed- insurance arrangements across price contracts with a term the Group. Considerations exceeding three years. included the new operating Other areas model, potential divestments, Other areas reviewed over the cost of premiums and the the year included legal and claims history. It was agreed to tax risks.

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE ETHICS AND COMPLIANCE COMMITTEE Across Puma Energy around the world, Our approach Key areas of focus in the year Key responsibilities We take a robust and rigorous We undertook a number of we are embedding a strong ethics and • Reviewing, approving and approach to ethics and key ethics and compliance We made great compliance culture so that it is part of our overseeing the Company’s compliance – championing initiatives through the year, progress this year programme for ethics one best way throughout focused on our core areas: everyday way of doing business – a core and compliance. Puma Energy. programme structure design in ensuring that and oversight; policies and part of the way we energise communities. • Reviewing significant ethics We recognise that our long- strong ethics and procedures; training and and compliance risks and term success relies not only on communication; third-party compliance is an confirming that appropriate conducting business in a legally engagement process; risk management activities compliant, safe and ethical integral part of Speak Up and investigations; and plans are in place. manner, but also in going Remediation; Discipline and everyone’s daily further, indeed as far as we • Monitoring the overall ethics incentives; and risk 110 can go, to consistently set working lives in and compliance performance management. in the Company. the highest standards and act Puma Energy. Introducing our new Code of • Reviewing the systems in with the greatest integrity to Business Conduct We are making place to enable staff to energise communities. All of We introduced our new Code speak up about potential which is in line with, and it central to the of Business Conduct, reflecting breaches of the Code of supported by, our ESG the purpose and values we way we all work Members of the Jonathan Pegler Business Conduct. framework. defined last year. In our new Future Energies, Infrastructure, Our ongoing commitment together to live committee • Reviewing significant Code, we make a strong and Global Bitumen investigations and outcomes to enhancing the rigour and our purpose. Chair: Emma FitzGerald clear connection from our to identify lessons learned structure of our ethics and Chief Executive Officer Alan McGown purpose through to the day-to- Rhibetnan Yaktal, and opportunities for compliance is in line with our Chief Transformation Officer, day behaviours of everyone in Global Head of Compliance broader focus across Puma Andrew Kemp Value Chain Optimisation systemic remediation. Puma Energy. Chief Financial Officer & Procurement • Reviewing and resolving Energy to strengthen and Our purpose of energising significant ethics and sharpen the way we live Michael Schulz Rhibetnan Yaktal communities is lived through our compliance matters that our purpose. Chief People & Culture Officer Global Head of Compliance four values: customer focus, lead have the potential to Meetings and attendees by example, collaboration, and The Committee meets at least adversely and materially The Committee met four times agility. We bring our values to life twice a year. impact the Company’s during the year. in the way we conduct ourselves, reputation. every day, everywhere, and that conduct is set out clearly in our new Code.

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE ETHICS AND COMPLIANCE COMMITTEE

We want the Code to be a daily the everyday essential nature of Setting up regional Ethics and Updating policies lived experience for our people, Spreading the word around the business ethics and compliance. Compliance Committees We updated a number of rather than an occasional Through the year we produced a series of posters linking To further strengthen our policies through the year, Focusing on risk management reference. So we have integrity to different business lines, in order to reinforce oversight, we set up regional including the conflicts of We conducted a detailed produced a handy pocketbook the message across every aspect of Puma Energy. So for Ethics and Compliance interest policy and the gifts compliance risk assessment, version of the Code, a Z-card example, for aviation the message was: Keep integrity Committees to support the and entertainment policy. carrying out hundreds of for all our people, available in flying high. For lubricants, it was: Operating smoothly global Ethics and Compliance granular interviews across the Future focus English, French, Spanish, and with integrity. Committee. This adds a layer of Group. This enabled us fully Through 2021, we will carry on Portuguese and Burmese. rigour giving us more granular to understand our compliance building our team and expertise oversight of what is happening Encouraging our people to risks and pinpoint the critical across ethics and compliance. on the ground in our countries Speak Up areas, so we could share these SPEAK UP. and communities. Drawing on the learnings and We put a lot of focus through valuable insights with 111 insights from our compliance the year on encouraging WE’LL LISTEN. the business. Enhancing Know Your risk assessment, we will focus everyone in Puma Energy to Counterparty (KYC) We have focused the risk on key priority areas and Speak Up. This included We built and launched globally assessment on five areas: implement further improvement training on the policy, so people a new risk-based Know Your KNOW OUR CODE KNOW YOUR • Anti-bribery and corruption initiatives. are clear on what they are Live our purpose and values CODE AMBASSADOR Counterparty (KYC) process

You can raise concerns through Contact us through the anonymous the following channels: channels below: Are you aware of a potential ethical legal or business • Your line manager www.PumaEnergySpeakUp.com If you hear or see something • Anti-money laundering NAME GOES HERE conduct violation? expected to speak up about, • Another manager that seems wrong, you must and platform. We also hired Above all, we will continue our • Your Code Ambassador Call your local hotline number: E-mail: [email protected] Contact us through the anonymous channels below: • Your Compliance representative +44 0000000000 speak up. www.PumaEnergySpeakUp.com • Your Legal representative Phone number: +44 0000000000 • Your People and culture representative Call your local hotline number: how to do it, as well being +44 0000000000 • Modern slavery a dedicated KYC team. journey to embed ethics and assured that we will not tolerate compliance throughout Puma • Data privacy Declaring conflicts of interest any retaliation. Energy – so it truly is an active • Third-party engagement We rolled out conflicts of everyday part of our people’s Speak Up was the highlight of interest certification to all Refreshing our network of quest to energise communities. our first-ever Compliance Day, BOUND KEEP OPERATING employees online. This gives Code Ambassadors held on 17 November 2020. This SMOOTHLY everyone a clear and easy way BY OUR INTEGRITY We refreshed our network of virtual event engaged everyone AND WITH to declare any conflicts of FLYING Code Ambassadors to ensure in Puma Energy. It featured a INTEGRITY INTEGRITY interest, enhances oversight we had the best possible dance video bringing to life HIGH and enables us to manage and people from across the how, by everyone taking the mitigate conflicts effectively. business helping to champion right steps together, we can ethics and compliance We also designed and launched You can raise concerns through Contact us through the You can raise concerns through Contact us through the You can raise concerns through Contact us through the the following channels: anonymous channels below: the following channels: anonymous channels below: the following channels: anonymous channels below: build a good rhythm of • Your line manager www.PumaEnergySpeakUp.com • Your line manager www.PumaEnergySpeakUp.com • Your line manager www.PumaEnergySpeakUp.com • Another manager • Another manager • Another manager • Your Code Ambassador Call your local hotline number: • Your Code Ambassador Call your local hotline number: • Your Code Ambassador Call your local hotline number: • Your Compliance representative +44 0000000000 • Your Compliance representative +44 0000000000 • Your Compliance representative +44 0000000000 • Your Legal representative • Your Legal representative • Your Legal representative alongside our functional a gifts and entertainment • Your People and culture • Your People and culture • Your People and culture compliance across Puma representative representative representative experts. We also provided register towards the end of Energy. It was a fun and training for the Ambassadors. the year. engaging way to emphasise

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE FINANCE AND INVESTMENT COMMITTEE From reviewing our financial structure The main activities In addition, the Committee Future focus Key responsibilities through the year supervised the establishment of In 2021, the Committee will to optimising our portfolio, we are The key responsibilities of The main priority of the the Infrastructure business unit, focus on completing the dedicated to managing our finance the Finance and Investment Committee in 2020 was to which includes 32 marine and Group’s global assets sale Committee include: ensure sufficient liquidity for two inland terminals. programme; establishing the and investments in line with our Puma Energy in the face of the Infrastructure business unit as • Reviewing and making The Committee also allocated COVID-19 crisis, which saw a an investable platform for new customer-led growth strategy. recommendations in resources to launch the Future significant drop in petroleum investors; and ensuring Puma relation to matters affecting Energies business unit, which products consumption in our Energy has an appropriate our capital structure and in 2020 started to equip retail markets, especially during capital structure to realise its financing, on tax and stations with solar panels in Q2 2020. customer-led strategy. treasury aspects a number of countries. The Committee also maintained The Committee will also • Validating our external The Committee also 112 its focus on portfolio supervise and approve the financing principles successfully supervised Puma management and supervised implementation of an updated • Reviewing KPIs and Energy’s programme to reduce the sales of our Australian Treasury Policy for the Group. monitoring rating policies costs. Initiatives on this front in commercial and retail fuels 2020 included reorganising the • Overseeing the governance business; shares in a real estate Group’s operating model, staff and activities of our programme in Australia; the rationalisation, renegotiation of treasury functions Rostov aviation business in Members of the committee lease contracts, and the • Overseeing portfolio Russia, lands in Nigeria, and reorganisation of the Chair: Graham Sharp management other small terminals. The procurement team. Committee also advanced the Andrew Kemp Chief Financial Officer portfolio optimisation of our non-core countries with more Pierre Lorinet to come in 2021. In the course Director, Trafigura of 2020, the Company used US$300m from assets disposal Mike Wainwright Director, Trafigura to prepay bank term debt and also organised a small bonds Baltazar Agostinho buy back in April to support Gonçalves Miguel Puma Energy’s bonds Executive Board Member, The Committee met four times trading performance. Sonagol EP during the year.

PUMA ENERGY ANNUAL REPORT 2020 HEALTH, SAFETY, SECURITY, ENVIRONMENT COMMITTEE

We focus on ensuring consistently Key responsibilities high HSSE standards and performance • Establish the appropriate throughout Puma Energy in line with governance framework for health, safety, security and our vision of zero harm to people and environment (HSSE) at the environment. Puma Energy • Entrench a culture of HSSE compliance within the business • Provide strategic direction and leadership 113 • Develop HSSE policies and plans • Review global HSSE performance and set targets • Decide and approve HSSE Members of the Carlos Garcia Christophe Dantcikian⁴ Rodrigo Zavala⁴ Composition of committee initiatives, campaigns committee Operations and HSEC Manager, Global Head of Retail Head of West and Global changed in line with new • Recommend to the Americas Commercial Centre operational structure with Executive Committee Daniel Duffau Chair: Antonio Mawad¹ ³ of Excellence effect from 1 October 2020. on reporting Global Head of HSE Stylianos Tzaferis Group Security Consultant Operations Manager, Asia-Pacific Jonathan Pegler⁴ Notes • Advise the business on and Operations Deborah Binks-Moore⁴ ¹ Chair until 1 October 2020 Future Energies, Infrastructure, specific sustainability/ESG Jose A. Alfaro³ Chief Customer Experience ² Chair from 1 October 2020 Chair: Ivan Govender² Global Bitumen ³ Committee member until 1 October 2020 matters Global Head of HSSE and Retail Manager, Americas and Communications Officer ⁴ Committee member from 1 October 2020 Roy Brooke⁴ GLADE Operations Ciro Izarra Eghosa Oriaikhi Mabhena⁴ Africa & UK infrastructure The Committee meets at least Aviation Operations Manager Head of Global Lubricants, Michael Schulz Regional Operations Manager four times a year. Aviation and Downstream Chief People & Culture Officer Priit End East Region Operations Controller Charlotte Dauphin³ Erick Cabrera⁴ Corporate Affairs, Marketing Philippe Roux³ West Downstream and Sustainability Director Global Head of Transport Operations Manager

PUMA ENERGY ANNUAL REPORT 2020 HEALTH, SAFETY, SECURITY, ENVIRONMENT COMMITTEE

During the year, the .nvironmental data Puma Energy Environmental • Reduce costs of negative Committee’s membership At Puma Energy, we manage Management System (PEMS) environmental impacts COVID-19 response and roles and responsibilities our business to ensure that we The Puma Environmental through continual changed better to align comply with our environmental Management System (PEMS) improvements attained The health and safety of Puma Energy people, customers and with Puma Energy’s new obligations, maintain our social is a framework that helps us through the ISO 14001 communities has been of paramount importance during the organisational structure, licence to operate and position achieve our environmental EMS Framework pandemic. In the initial months this was led by the business continuity plan team (BCP). the strategy and continued ourselves for a sustainable future� goals through consistently • Where appropriate, gain focus on the highest reviewing, evaluating, and In recognition of the very real ISO 14001 certification safety performance. improving our environmental risks that climate change performance in areas of our Key documentation is The HSSE Committee met presents to humanity, the business where we do not complete, and training has been four times in 2020. Committee implemented already conform to ISO 14001 completed in most countries� detailed greenhouse gas (GHG) 114 The main activities standards. Through PEMS we Environmental audits have data collection for each country through the year follow a rigorous, risk-based commenced in some segments – applying similar principles to Through the year the approach in managing of our business� calculate Scope 1 and Scope 2 Committee undertook a environmental risks. quarterly GHG emissions� Data ESG number of key activities. These was also collected for Scope 3 The PEMS project continued In keeping with our included defining Puma Energy emissions� Analysing the data through the year. The purpose commitment as a responsible HSSE yearly goals; reviewing collected, we will develop KPIs is to: company, the Group adopted a and approving new guidelines and measures for the effective new environmental, social and on Puma Energy HSSE policies; • Increase compliance with mitigation of our GHG governance (ESG) framework following up with each region environmental legislation emissions� For details of our to help drive investment and on their implementation of • Reduce negative environmental GHG emissions, please see decision-making� These these policies; reviewing Group impact by controlling page 79� important non-financial metrics and regional HSSE metrics, environmental aspects reaffirm our commitment to performance KPIs and results; • Increase the competitiveness positive social impact in all reviewing major incidents of Puma Energy aspects of our business� A copy investigation reports; defining • Leverage better environmental of the policy can be found improvements and action plans management of processes, on the corporate website and based on lessons learned from activities and functions further details are provided these incidents, and planning on page 37� and reviewing HSSE campaigns.

PUMA ENERGY ANNUAL REPORT 2020 HEALTH, SAFETY, SECURITY, ENVIRONMENT COMMITTEE

Safety performance Security PEMS training in the remaining Our holistic approach to Vision Zero The Committee uses data We are acutely aware that the countries will also be completed. analysis and insights to prioritise very nature of our business Once training is complete, the efforts to improve HSSE exposes us to certain security PEMS implementation phase will performance, both through risks. We have taken reasonable start, beginning with Puma technology and culture change. measures to ensure that our Energy terminals followed by Through 2020, the Committee employees, customers, the Retail business. noted improvement in a number stakeholders and our assets are Vision Zero continues to be Culture of metrics across the Group. not exposed to such threats. Shift developed and embedded We continuously review our Key safety-focused matters across Puma Energy, to drive security protocols and through the year included: culture change and a further implement strategies to mitigate Benchmarks, • Improving our reporting step in improving performance. 115 against security breaches. standards, Leading practices, systems and continuous Indicators analysis tools following Future focus improvement a comprehensive review of The Committee plans to meet peer companies and best in monthly as part of the Group’s End state class approaches. continued focus on further ZERO • Implementing the Woocar improving and embedding HARM driving safety app to improve HSSE excellence throughout driver security and safety. Puma Energy. • Reviewing all our safety More detailed metrics will be Continuous Behavioural campaigns to strengthen and developed to analyse safety monitoring Based embed our safety culture in performance across the and reporting Safety line with our commitment to business, particularly in the retail Vision Zero – making each business and for contractors. Policy & day free of incidents, where regulatory our people, customers and requirements contractors go home safely to their families and communities energised by our safety culture.

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE REMUNERATION COMMITTEE We set and review remuneration for Puma Main activities companies across a range 2020 was an exceptional and Key responsibilities The Remuneration Committee of company types and target unprecedented year, requiring Energy’s Executive Committee and other • Setting the reward (RemCo) met four times sectors to create better an agile and accelerated shift senior personnel to support the ongoing architecture for Puma during 2020 in March, June, alignment with the strategy of focus and prioritisation in Energy’s remuneration October and December, and plan in 2021 and beyond. response to the COVID-19 growth and success of the Group. and had an extraordinary pandemic. This resulted in and reward policies The committee redesigned meeting in August to review major work on New Ways of the governance framework • Advising the Board on the remuneration impact of Working, with a White Paper for current and future Sign-on the annual and long-term restructuring Puma Energy’s setting out three pillars: People, Awards, from an existing remuneration and reward Executive Committee (ExCom). Productivity and Platform, Restricted Share Plan into a structure for the to support our employee The main agenda for 2020 was two-year cash restricted award Executive Committee value proposition to existing to align shareholder and and carried out a full buyout of and new talent. 116 • Supporting the imperative management’s short and long- Puma Energy’s existing employee to attract, retain, motivate term interests and goals linked to shareholders within the Employee Incentive Plan 2020 and reward great talent in the company strategy, business Restricted Stock Plan. Based on the Company’s a competitive environment plan and goals. In addition, it performance in 2019, the total The RemCo started 2020 with was to enable Puma Energy to 2019 STIP pool was paid on a focus on the STIP pay-out compete more effectively for top target vs budget. The STIP 2019 based on the 2019 results. talent from a range of different awards were paid in March Members of the Plus Puma Energy invitees: This was followed by a review industries such as the broader 2020 to eligible employees. of the ExCom’s remuneration remuneration René Médori energy sector, retail and architecture, to align to The Company was also able to committee (“RemCo”) Non-Executive Chairman consumer goods. defined market practice and award long-term incentive cash Chair: Pierre Lorinet Emma FitzGerald During the year, the RemCo shareholder, executive and awards to 72 senior leadership Director, Trafigura Chief Executive Officer covered a number of strategic senior management goals, team members. and operational topics with objectives and targets Mike Wainwright Michael Schulz Personal goals are cascaded recommendations endorsed regarding in-year and long- Director, Trafigura Chief People & Culture Officer from CEO to ExCom members by the Board: term incentive strategies. The and further into the organisation Filomena Maria Gamboa Nicolas Egger momentum was built further Reviewing key elements of the to create a close line of sight Carvalho dos Santos e Oliveira Global Head of Rewards with the arrival of Puma compensation framework for between the Company targets Executive Board Member, (Secretary) Energy’s newly appointed the ExCom and senior and personal targets, to support Sonangol Hidrocarbonetos Chairman of the Board as well The committee meets at least management, including delivery on these. Internacional as the Chief People & Culture four times a year, which was reviewing and benchmarking Officer in March 2020. the case in 2020. pay practices with other

PUMA ENERGY ANNUAL REPORT 2020 REPORT OF THE REMUNERATION COMMITTEE

Employee shareholder Executives were converted Restructuring the ExCom Future focus share buy backs to cash with a vesting period The restructuring of the The Company is now As a result of a number of reduced from three years to Company into the new operating embarking on a Gender Pay In 2020, the Remuneration internal and external factors two years, taking into account model to support and execute Index in accordance with Swiss Committee continued to including a change in the the nature of other long-term its business strategy came regulations in 2021. In 2021, Company valuation method incentive and value creation into effect in October 2020. this study will be extended to focus on aligning the with a corresponding impact plans. This policy came into This resulted in a restructuring of capture the different countries compensation of Puma on share price, the RemCo effect from January 2021. the ExCom team from 12 to eight Puma Energy operates in, as decided in December 2020 members. For the remaining part of the Group’s long-term Energy’s senior leadership This affected 14 employees in to undertake a full buyback eight members no amendments ESG commitments. It will also 2020, with new Sign-On cash to the strategy, goals and of employee shareholdings, were made to base pay but place more emphasis on awards to be delivered-on or and replace them with deferred variable compensation was reviewing Puma Energy’s performance of the business. after 1 January 2021. 117 cash pay-outs linked to the reviewed in light of the ExCom position and potential Through the year, there was share-vesting period of Recognition at Puma Energy compensation benchmarking adjustment in relation to its each grant/tranche. The Company has put exercise, gearing and aligning Colleague Value Proposition a particular emphasis by its significant effort into variable pay towards the new (CVP). This will include many As Puma Energy is a privately shareholders and Board on recognition programmes for all goals set out by the Board. elements as part of competitive held company, the RemCo colleagues worldwide, notably remuneration and overall in its supporting Puma Energy’s decided that a cash long-term ExCom compensation the Puma Energy Awards, priority markets. incentive would be more industry benchmark ongoing transformation and Making A Great Individual appropriate given the turnaround In August 2020, in partnership Contribution (MAGIC) and the related imperative to and transition Puma Energy is with Hay/Korn Ferry, the Global Going the Extra Mile (GEM). currently undergoing. Rewards team conducted a retain and attract the very Particularly through March to full review of the overall total Sign-On Awards July 2020 at the height of the best talent. compensation of each of the Sign-On Awards granted in past pandemic, this kept the Puma Pierre Lorinet, ExCom members. years under the Puma Energy Energy spirit alive and helped Chair of the Remuneration Committee Restricted Stock Plan to newly to bring everyone in the joining ExCom and Senior Company closer together.

PUMA ENERGY ANNUAL REPORT 2020 FINANCIAL STATEMENTS 118

Financial statements ��119 Independent auditor’s report �� 164

PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT CONSOLIDATED STATEMENT OF OF INCOME COMPREHENSIVE INCOME For the years ended 31 December For the years ended 31 December

in US$’000 Notes 2020 2019 in US$’000 2020 2019 Continuing operations Loss for the year (348,464) (791,783) Revenue from contracts with customers 10.1 9,943,649 14,597,831 Other comprehensive income/(loss) Cost of sales (8,738,931) (13,333,021) Exchange differences on translation of foreign operations, net of tax (57,673) (329,955) Gross profit 1,204,718 1,264,810 Profit/(loss) on assets at fair value through other comprehensive income (925) 3,021 Selling and operating costs 10.2 (970,860) (1,481,978) Net other comprehensive loss to be reclassified to profit or loss in subsequent periods (58,598) (326,934) General and administrative expenses 10.3 (154,341) (166,591) Remeasurement gains/(losses) on defined benefit plans, net of tax (1,021) 1,835 Other operating income 10.4 3,146 81,124 Net other comprehensive income/(expense) not to be reclassified (1,021) 1,835 Other operating expenses 10.4 (84,153) (31,666) to profit or loss in subsequent periods Share of net profits and losses of associates 9.2 4,263 6,831 Total other comprehensive loss (59,619) (325,099) Operating profit/(loss) 2,773 (327,470) Total comprehensive loss for the year, net of tax (408,083) (1,116,882) Finance income 10.5 21,134 30,286 119 Finance costs 10.6 (247,140) (323,176) Attributable to: Net foreign exchange gains/(losses) 10.7 (50,924) 9,946 Owners of the parent (394,935) (1,108,537) Loss before tax (274,157) (610,414) Non-controlling interests (13,148) (8,345) Income tax expense 11.1 (59,268) (77,427) Loss after tax from continuing operations (333,425) (687,841) Loss after tax from discontinued operations 12.1 (15,039) (103,942) Loss for the year (348,464) (791,783)

Attributable to: Owners of the parent (333,064) (780,531) Non-controlling interests (15,400) (11,252)

PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the years ended 31 December

in US$’000 Notes 2020 2019 in US$’000 Notes 2020 2019 Assets Non-current liabilities Non-current assets Interest-bearing loans and borrowings 23 2,070,886 2,724,934 Property and equipment 13 2,037,194 2,420,519 Lease liabilities 24 557,991 591,189 Intangible assets and goodwill 14 546,321 606,124 Retirement benefit obligations 1,367 294 Right-of-use 15 627,743 682,257 Other financial liabilities 26 7,236 4,528 Investments in associates 9.2 19,669 27,643 Deferred tax liabilities 11.5 44,648 50,997 Other financial assets 18 54,233 89,455 Provisions 25 45,420 43,042 Deferred tax assets 11.5 49,924 52,384 Total non-current liabilities 2,727,548 3,414,984 Other assets 19 150,860 101,123 Current liabilities Total non-current assets 3,485,944 3,979,505 Trade and other payables 27 2,061,605 2,619,443 Current assets Interest-bearing loans and borrowings 23 1,044,766 284,733 120 Inventories 17 861,309 1,022,175 Lease liabilities 24 89,883 79,890 Other assets 19 196,895 341,684 Other financial liabilities 26 140,079 57,860 Income tax receivable 11.4 16,344 14,993 Income tax payable 11.4 43,894 36,739 Trade receivables 20 521,708 619,724 Provisions 25 19,927 21,430 Other financial assets 18 141,504 31,587 Total current liabilities 3,400,154 3,100,095 Cash and cash equivalents 21 507,192 619,023 Liabilities directly associated with the assets classified as held for sale 43,087 526,353 Total current assets 2,244,952 2,649,186 Total liabilities 6,170,789 7,041,432 Asset classified as held for sale 52,861 860,117 Total equity and liabilities 5,783,757 7,488,808 Total assets 5,783,757 7,488,808 Equity and liabilities Equity Share capital 22 1,657,067 2,060,035 Retained earnings (327,141) 52,256 Foreign currency translation reserve (1,811,418) (1,794,559) Other components of equity 4,545 5,568 Equity attributable to owners of the parent (476,947) 323,300 Non-controlling interests 89,915 124,076 Total equity (387,032) 447,376

PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the parent Attributable to owners of the parent Foreign Foreign currency Other Non- currency Other Non- Share Retained translation components controlling Total Share Retained translation components controlling Total In US$’000 capital earnings reserve of equity Total interest equity In US$’000 Notes capital earnings reserve of equity Total interest equity At 1 January 2020 – restated 2,060,035 52,252 (1,794,555) 5,568 323,300 124,076 447,376 At 1 January 2019 – 2,054,166 854,150 (1,461,944) 3,980 1,450,352 135,502 1,585,854 Loss for the period – (333,064) – – (333,064) (15,400) (348,464) restated Other comprehensive loss – (925) (59,923) (1,023) (61,871) 2,252 (59,619) Loss for the year – (780,531) – – (780,531) (11,252) (791,783) Total comprehensive loss – (333,989) (59,923) (1,023) (394,935) (13,148) (408,083) Other comprehensive – 3,021 (332,615) 1,588 (328,006) 2,907 (325,099) Dividends – – – – – (21,003) (21,003) income/(loss) Share capital reduction (402,968) – – – (402,968) – (402,968) Total comprehensive loss – (777,510) (332,615) 1,588 (1,108,537) (8,345) (1,116,882) Mandatorily redeemable – (43,060) 43,060 – – – – Dividends – – – – – (5,998) (5,998) preference shares Acquisitions/disposals of 6.5 – (2,555) – – (2,555) 2,917 362 121 cancellation (Australian non-controlling interests divestment) Issue of new shares 10,869 10,869 10,869 Reclassification to share – (4,663) – – (4,663) – (4,663) Deemed distribution to – (10,869) – – (10,869) – (10,869) based payment payable shareholders(i) from employees Reclassification to share – (15,139) – – (15,139) – (15,139) Reclassification to employee – (1,167) – – (1,167) – (1,167) based payment payable long term incentive plan from employees Share-based payments – 3,347 – – 3,347 – 3,347 Share buy-back (5,000) (2,466) – – (7,466) (7,466) Other – 139 – – 139 (10) 129 Share-based payments(ii) – 6,645 – – 6,645 – 6,645 At 31 December 2020 1,657,067 (327,141) (1,811,418) 4,545 (476,947) 89,915 (387,032) At 31 December 2019 2,060,035 52,256 (1,794,559) 5,568 323,300 124,076 447,376 (i) The line deemed distribution reflects buy–backs of shares made in relation to the Group’s employee share plan and the financing of the acquisition of Puma Energy Holdings Pte Ltd shares by its shareholder PE ESP Ltd for the share based payment scheme. (ii) The line share–based payments, includes the costs accrued during the year for the employee share plan.

PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF CASH FLOWS

in US$’000 Notes 2020 2019 in US$’000 Notes 2020 2019 Operating activities Financing activities Loss before tax from continuing operations (274,157) (610,414) Loans (granted)/reimbursed 18,429 (22,022) Loss before tax from discontinued operations (15,039) (52,896) Proceeds from/(repayment of) borrowings (289,288) (303,008) Loss/(profit) before tax (289,196) (663,310) Interest paid (182,551) (227,328) Non-cash adjustments to reconcile profit before tax to net cash flows: Lease payments (157,837) (172,657) Depreciation and impairment of property and equipment 10.2, 13 429,828 405,813 Dividends paid (21,003) (5,998) Amortisation and impairment of intangible assets 10.2, 14 66,280 575,555 Deemed distribution to shareholder (26,816) (7,466) Amortisation and impairment of lease right-of-use 15 132,226 146,074 Net cash flows used in financing activities (659,066) (738,479) Tangible and intangible assets written off – 493 Net increase in cash and cash equivalents (210,844) 87,684 Gain on disposal of assets and investments 10.4 56,008 (79,315) Effects of exchange rate differences 96,858 (110,661) Net interest expense 10.5, 10.6 183,009 211,142 Cash and cash equivalents under continuing operations at 1 January 619,023 644,496 122 Lease financial costs 7.2, 12.2 56,889 68,634 Cash and cash equivalents under assets held for sale at 1 January 2,496 – Dividend income 10.5 (1,686) (3,769) Cash and cash equivalents at 1 January 21 621,519 644,496 Share of net profit of associate 9.2 (4,529) (7,132) Cash and cash equivalents at 31 December 21 507,533 621,519 Provisions 2,957 12,404 Less: cash and cash equivalents under assets held for sale at 31 December 341 2,496 Changes in value of derivative financial instruments (31,265) 115,469 Cash and cash equivalents under continuing operations at 31 December 507,192 619,023 Effect from hyperinflation adjustment 10.6 1,175 10,602 Working capital adjustments: Increase/(decrease) in trade, other receivables and prepayments 74,207 112,243 Decrease/(increase) in inventories 105,345 (226,858) Increase in trade, other payables and accrued expenses (501,567) 149,730 Interest received 10.5 15,413 26,507 Dividends received from associates 1,000 1,970 Income tax paid (50,866) (62,330) Net cash flows from operating activities 245,228 793,922 Investing activities Net proceeds from sale of subsidiaries and investments 6.6 329,384 136,499 Proceeds from sale of assets 3,237 39,177 Purchase of intangible assets 14 (9,251) (8,242) Purchase of property and equipment 13 (143,616) (137,817) Acquisitions of subsidiaries, net of cash acquired 6.3 (2,530) – Divestment of long-term financial investments 18 22,418 – Dividends received from investments 10.5 3,352 2,624 Net cash flows from/(used in) investing activities 202,994 32,241

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Corporate information Also included in the current liabilities are US$550 million of the 3-year term loan repayable on 3rd May Puma Energy Holdings Pte Ltd (the ‘Company’) was incorporated in Singapore as a private company 2021 (see note 30.2). The Company shareholders have been in active dialogue with the Puma Energy limited by shares on 2 May 2013. The registered office of the Company is 1 Marina Boulevard #28-00, Board regarding various options to strengthen the Company’s capital structure. In that context, an One Marina Boulevard, Singapore 018989. Extraordinary General Meeting held on Thursday 18 February 2021 gave authority to the Company’s Directors to proceed with a rights issue of up to US$1.5bn envisaged by mid-April 2021. The principal business activities of the Company and its subsidiaries (the ‘Group’) are the ownership and operation of storage facilities for, and the sale and distribution of, petroleum products. Should either the revolving credit facility not be renewed, or the rights issue not proceed, there would be uncertainty over the Company’s ability to continue as a going concern. The Group is owned by Trafigura PE Holding Ltd (49.37%), Sonangol Holdings Lda (31.73%), TPE Holdings 2 LLC (6.66%), PE Investments Limited (6.65%), Cochan Holdings LLC (5.04%) and other However, based on the support of the current, largest shareholders and their stated intention to investors (0.55%). subscribe to the rights issue the Company considers that the going concern assumption remains appropriate for these financial statements. 2. Accounting methods 123 2.1 Basis of preparation 2.3 Basis of consolidation The consolidated financial statements of the Group have been prepared in accordance with The consolidated financial statements comprise the financial statements of the Company and its International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting subsidiaries at 31 December 2020. Control is achieved when the Group is exposed, or has rights, to Standards Board (‘IASB’). variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group The consolidated financial statements have been prepared on a historical cost basis, except for has all of the following: derivative financial instruments that have been measured at fair value and those inventories that qualify • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant for fair value accounting using the IAS 2 Inventories exemption. activities of the investee). 2.2 Going concern • Exposure, or rights, to variable returns from its involvement The company has positively assessed going concern and has taken adequate measures to ensure the with the investee. going concern assumption is met. • The ability to use its power over the investee to affect its returns. The Group incurred losses of US$(348) million (2019: US$(792) million) and at the year-end the Group When the Group has less than a majority of the voting or similar rights of an investee, the Group had a negative equity position of US$(387) million (2019: US$447 million). The Group had current considers all relevant facts and circumstances in assessing whether it has power over an investee, assets of US$2,245 million and current liabilities of US$3,400 million at 31 December 2020 (2019: including: current assets of US$2,649 million and current liabilities of US$3,100 million). As mentioned in Note 23, • The contractual arrangement with the other vote holders of the investee. current liabilities include US$1,045m (US$285m in 2019) of interest bearing loans and borrowing with a • Rights arising from other contractual arrangements. maturity of less than one year. The current liabilities include US$50 million relating to amounts drawn • The Group voting rights and potential voting rights. on the 1-year revolving credit facility (out of US$310 million available) and no amount drawn on the The Group reassesses whether or not it controls an investee if facts and circumstances indicate that 3-year revolving credit facility (out of US$286 million available) (see note 23). Both revolving credit there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins facilities are due for renewal respectively on 4th May 2021 and 13th May 2021. The Company expects when the Group obtains control over the subsidiary and ceases when the Group loses control of the that both revolving credit facilities will be renewed for another 12 months for similar amounts. subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

year are included in the consolidated financial statements from the date the Group gains control until 2.4 Summary of significant accounting policies the date the Group ceases to control the subsidiary. a) Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration Profit or loss and each component of other comprehensive income are attributed to the equity holders transferred in a business combination is measured at fair value, which is calculated as the sum of the of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to interests having a deficit balance. When necessary, adjustments are made to the financial statements of the former owners of the acquiree and the equity interests issued by the Group in exchange for control subsidiaries to bring their accounting policies into line with the Group accounting policies. All intra- of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred. Group assets, liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. At the acquisition date, the identifiable assets acquired, and the liabilities assumed, are recognised at their fair value, except that: A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an • Deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are equity transaction. If the Group loses control over a subsidiary, it: recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits Derecognises the assets (including goodwill) and liabilities of the subsidiary. • respectively. 124 • Derecognises the carrying amount of any non-controlling interests. • Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Derecognises the cumulative translation differences recorded in equity. • Assets Held for Sale and Discontinued Operations are measured in accordance with that standard. • Recognises the fair value of the consideration received. • Recognises the fair value of any investment retained. Non-controlling interests that are present ownership interests and entitle their holders to a • Recognises any surplus or deficit in profit or loss. proportionate share of the entity’s net assets in the event of liquidation may be initially measured either • Reclassifies the parent’s share of components previously recognised in other comprehensive income at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by- disposed of the related assets or liabilities. transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. Subsidiaries whose functional currencies have experienced a cumulative inflation rate of close to 100% over the past three years apply the rules of IAS 29 Financial Reporting in Hyperinflationary Economies. When the consideration transferred by the Group in a business combination includes assets or liabilities Gains or losses incurred upon adjusting the carrying amounts of non-monetary assets and liabilities for resulting from a contingent consideration arrangement, the contingent consideration is measured at its inflation are recognised in the income statement. The subsidiaries in Angola and Zimbabwe restate acquisition-date fair value and included as part of the consideration transferred in a business non-monetary items in the balance sheet in line with the requirements of IAS 29. combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. The only hyperinflationary economy applicable to the Group is Zimbabwe. The hyperinflationary Measurement period adjustments are adjustments that arise from additional information obtained treatment previously applicable to Angola was ceased at 31 March 2019. For Zimbabwe the during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts hyperinflationary treatment has been applied starting with 1 January 2019. The financial statements of and circumstances that existed at the acquisition date. the major subsidiaries in Zimbabwe are first adjusted for the effect of inflation with any gain or loss on the net monetary position recorded in the related functional lines in the consolidated income statement When a business combination is achieved in stages, the Group’s previously held equity interest in the and then translated into US Dollars. acquiree is remeasured to fair value at the acquisition date (e.g. the date when the Group obtains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

comprehensive income are reclassified to profit or loss where such treatment would be appropriate if shareholders’ equity. On disposal of a foreign operation, the component of other comprehensive that interest were disposed of. income relating to that particular foreign operation is recognised in profit or loss. If the initial accounting for a business combination is incomplete by the end of the reporting period in c) Non-current assets held for sale which the combination occurs, the Group reports provisional amounts for the items for which the Non-current assets and disposal groups classified as held for sale are measured at the lower of their accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified additional assets or liabilities are recognised, to reflect new information obtained about facts and as held for sale if their carrying amounts will be recovered principally through a sale transaction rather circumstances that existed at the acquisition date that, if known, would have affected the amounts than through continuing use. This condition is regarded as met only when the sale is highly probable recognised at that date. and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale b) Foreign currency translation within one year from the date of classification. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets 125 and liabilities of that subsidiary are classified as held for sale when the criteria described above are Transactions and balances met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary Transactions in foreign currencies are initially recorded by the Group entities at their respective after the sale. functional currency spot rates prevailing at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are converted at the exchange rate in d) Investment in associates and joint ventures An associate is an entity over which the Group has significant influence and that is neither a subsidiary effect at the closing date of each reporting period. These items are recorded, according to their nature, nor an interest in a joint venture. Significant influence is the power to participate in the financial and either as components of finance income or finance costs in profit or loss. operating policy decisions of the investee but is not control or joint control over those policies. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated A joint venture is a type of joint arrangement whereby the parties that have joint control of the using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed value in a foreign currency are translated using the exchange rates at the date when the fair value is sharing of control of an arrangement, which exists only when decisions about the relevant activities determined. The gain or loss arising on translation of non-monetary items is recognised in line with the require unanimous consent of the parties sharing control. Interest in joint operations are recorded gain or loss of the item that gave rise to the translation difference (translation differences on items according to IFRS 11 Joint Arrangements: whose gain or loss is recognised in other comprehensive income or profit or loss are also recognised in • Assets, including its share of any assets held jointly. other comprehensive income or profit or loss, respectively). • Liabilities, including its share of any liabilities incurred jointly. Group companies • Revenue from the sale of its share of the output arising from the joint operation. The presentation currency of the Group is the US Dollar. Consolidated statement of financial position • Share of the revenue from the sale of the output by the joint operation. items are translated into US Dollars at the exchange rate applicable on the date of closure of the • Expenses, including its share of any expenses incurred jointly. reporting period, and consolidated statement of income items are translated using the average The results of associates are incorporated in these consolidated financial statements using the equity exchange rate over the reporting period. Foreign exchange differences arising on translation for method of accounting, except when the investment is classified as held for sale, in which case it is consolidation are recognised in other comprehensive income and included in consolidated accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Operations. Under the equity method, an investment in an associate is initially recognised in the e) Goodwill consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s Goodwill is measured as being the excess of the aggregate of the consideration transferred, the share of the profit or loss and other comprehensive income of the associate. When the Group’s share of amount recognised for any non-controlling interest and the acquisition-date fair values of any losses of an associate exceeds the Group’s interest in that associate (which includes any long-term previously held interest in the acquiree over the fair value of the identifiable assets acquired and interests that, in substance, form part of the Group’s net investment in the associate), the Group liabilities assumed at the acquisition date. discontinues recognising its share of further losses. Additional losses are recognised only to the extent At the acquisition date, any goodwill acquired is allocated to each of the cash-generating units (CGUs) that the Group has incurred legal or constructive obligations or made payments on behalf of the or group of CGUs expected to benefit from the combination’s synergies. associate. Following initial recognition, goodwill is measured at cost less any impairment losses. Goodwill is The requirements of IAS 39 Financial Instruments: Recognition and Measurement are applied to reviewed for impairment annually or more frequently if events or changes in circumstances indicate determine whether it is necessary to recognise any impairment loss with respect to the Group’s that the carrying value may be impaired. Impairment is determined by assessing the recoverable investment in an associate. When necessary, the entire carrying amount of the investment (including amount of the CGU or group of CGUs to which the goodwill relates. Where the recoverable amount of 126 goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by the CGU or group of CGUs is less than the carrying amount, an impairment loss is recognised. An comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its impairment loss recognised for goodwill is not reversed in a subsequent period. For the impairment carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. test, see note 16. Any reversal of that impairment loss is recognised in accordance with IAS 36 Impairment of Assets to the extent that the recoverable amount of the investment subsequently increases. Goodwill may also arise upon investments in associates, being the surplus of the cost of investments in associates. Goodwill is included in the carrying amount of the investment in an associate and is neither Upon disposal of an associate that results in the Group losing significant influence over that associate, amortised nor individually tested for impairment. any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with IAS 39 Financial Instruments: f) Intangible assets Recognition and Measurement. The difference between the previous carrying amount of the associate Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible attributable to the retained interest and its fair value is included in the determination of the gain or loss assets acquired in a business combination is their fair value at the date of acquisition. Following initial on disposal of the associate. In addition, the Group accounts for all amounts previously recognised in recognition, intangible assets are carried at cost less accumulated amortisation and accumulated other comprehensive income in relation to that associate on the same basis as would be required if that impairment losses, if any. The useful lives of intangible assets are assessed as either finite or indefinite. associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously Intangible assets with finite lives are amortised according to the straight-line method for the periods recognised in other comprehensive income by that associate would be reclassified to profit or loss on corresponding to their expected useful lives. Intangible assets are mainly comprised of software the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit licences (useful lives ranging from three to five years) and certain long-term concession rights related or loss (as a reclassification adjustment) when it loses significant influence over that associate. to land usage (useful lives ranging from 33 to 99 years). When a Group entity transacts with its associate, profits and losses resulting from the transactions with Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, the associate are recognised in the Group’s consolidated financial statements only to the extent of either individually or at the CGU level. The assessment of indefinite life is reviewed annually to interests in the associate that are not related to the Group. determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Gains or losses arising from derecognition of an intangible asset are measured as the difference derecognition of the asset (calculated as the difference between the net disposal proceeds and the between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or carrying amount of the item) is included in profit or loss in the period in which loss when the asset is derecognised. the item is derecognised. g) Property and equipment h) Impairment of non-financial assets Property and equipment is stated at cost, less accumulated depreciation and accumulated impairment The Group assesses its non-financial assets at each reporting date for possible impairment if there are losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly events or changes in circumstances that indicate that carrying values of the assets may not be attributable to bringing the asset into operation, the initial estimate of any decommissioning obligation, recoverable and, as a result, charges for impairment are recognised in the Group results from time to if any, and, for qualifying assets, borrowing costs. The purchase price or construction cost is the time. aggregate amount paid and the fair value of any other consideration given to acquire the asset. The Such indicators include changes in the Group business plans, changes in commodity prices leading to capitalised value of a finance lease is also included within property and equipment. Land and buildings sustained unprofitable performance, an increase in the discount rate, low asset utilisation, evidence of are accounted for under the cost model. Hence no revaluation is carried out, in line with IAS 16 physical damage and, for petroleum-related properties, significant downward or upward revisions of 127 Property, Plant and Equipment. estimated volumes. Depreciation is provided on a straight-line basis over estimated useful lives of the respective assets, The assessment for impairment entails comparing the carrying value of the asset or CGU with its taking into account the residual value. The estimated useful lives are: recoverable amounts being the higher of fair value less costs to sell and value in use. A CGU is the Buildings 33 years smallest group of assets whose continued use generates cash inflows that are largely independent of cash inflows generated by other groups of assets. Value in use is usually determined on the basis of Machinery and equipment 3 to 20 years discounted estimated future net cash flows. When the carrying amount of an asset or a CGU exceeds Other fixed assets 1 to 5 years the recoverable amount, the asset or CGU is considered impaired and is written down to its recoverable amount. Determination as to whether and how much an asset is impaired involves management estimates on highly uncertain matters such as future commodity prices, the effects of inflation on The expected useful lives of property and equipment are reviewed on an annual basis and, if necessary, operating expenses, discount rates and the outlook for global or regional market supply and demand changes in useful lives are accounted for prospectively. conditions for petroleum products. The Group bases its impairment calculation on detailed budgets and The carrying value of property and equipment is reviewed for impairment whenever events or changes forecast calculations, which are prepared separately for each of the Group’s CGUs to which the in circumstances indicate the carrying value may not be recoverable. individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. When significant parts of property and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Goodwill and intangible assets with an indefinite useful life are subject to an annual impairment test or, Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the more frequently, if there are indications of a loss in value. property and equipment as a replacement if the recognition criteria are satisfied. All other repair and For assets, excluding goodwill and intangible assets with an indefinite life, an assessment is made at maintenance costs are recognised in profit or loss as incurred. each reporting date of whether there is an impairment and if such an indication exists, an impairment An item of property and equipment is derecognised upon disposal or when no future economic test is carried out. If such indication exists, the Group estimates the asset’s or CGU’s recoverable benefits are expected to arise from the continued use of the asset. Any gain or loss arising on amount. A previously recognised impairment loss is reversed only if there has been a change in the

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled recognised. The reversal is limited so that the carrying amount of the asset does not exceed its to profit or loss. recoverable amount, nor exceed the carrying amount that would have been determined, net of Financial assets designated at fair value through OCI (equity instruments) depreciation, had no impairment loss been recognised for the asset in prior years. Impairment losses Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity relating to goodwill cannot be reversed in future periods. instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 i) Financial assets and are not held for trading. The classification is determined on an instrument-by-instrument basis. Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised value through other comprehensive income (OCI), and fair value through profit or loss. The as other income in the statement of profit or loss when the right of payment has been established, classification of financial assets at initial recognition depends on the financial asset’s contractual cash except when the Group benefits from such proceeds as a recovery of part of the cost of the financial flow characteristics and the Group’s business model for managing them. asset, in which case, such gains are recorded in OCI. The subsequent measurement of financial assets depends on their classification as follows: 128 Financial assets at fair value through profit or loss Financial assets at amortised cost (debt instruments) Financial assets at fair value through profit or loss include financial assets held for trading, financial The Group measures financial assets (debt instruments) at amortised cost if both of the following assets designated upon initial recognition at fair value through profit or loss, or financial assets conditions are met: mandatorily required to be measured at fair value. Financial assets are classified as held for trading if • The financial asset is held in order to collect contractual cash flows, and, they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely separated embedded derivatives, are also classified as held for trading. Financial assets with cash flows payments of principal and interest on the principal amount outstanding. that are not solely payments of principal and interest are classified and measured at fair value through They are subsequently measured using the effective interest (EIR) method and are subject to profit or loss, irrespective of the business model. impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified Financial assets at fair value through profit or loss are carried in the statement of financial position at or impaired. fair value with net changes in fair value recognised in the statement of profit or loss Financial assets at fair value through OCI (debt instruments) Derecognition The Group measures debt instruments at fair value through OCI if both of the following conditions are A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial met: assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial • The financial asset is held with the objective of both holding to collect contractual cash flows and position) when: selling, and • The rights to receive cash flows from the asset have expired, or • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation payments of principal and interest on the principal amount outstanding to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement and either (a) the Group has transferred substantially all the risks and rewards of the For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and asset, or (b) the Group has transferred control of the asset impairment losses or reversals are recognised in the statement of profit or loss and computed in the ; same manner as for financial assets measured at amortised cost. The remaining fair value changes are When the Group has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

extent of its continuing involvement. In that case, the Group also recognises an associated liability. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. The transferred asset and the associated liability are measured on a basis that reflects the rights and Financial liabilities designated upon initial recognition at fair value through profit or loss are designated obligations that the Group has retained. at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at Loans and borrowings the lower of the original carrying amount of the asset and the maximum amount of consideration that This is the category most relevant to the Group. After initial recognition, interest-bearing loans and the Group could be required to repay. borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are Impairment of financial assets recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held process. at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or due in accordance with the contract and all the cash flows that the Group expects to receive, costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the discounted at an approximation of the original effective interest rate. The expected cash flows will 129 statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. include cash flows from the sale of collateral held or other credit enhancements that are integral to the For more information, refer to Note 23. contractual terms. Derecognition For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance expires. When an existing financial liability is replaced by another from the same lender on substantially based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is different terms, or the terms of an existing liability are substantially modified, such an exchange or based on its historical credit loss experience, adjusted for forward-looking factors specific to the modification is treated as the derecognition of the original liability and the recognition of a new liability. debtors and the economic environment The difference in the respective carrying amounts is recognised in the statement of profit or loss. j) Financial liabilities k) Derivative financial instruments All financial liabilities are recognised initially at fair value plus, in the case of loans and borrowings, The Group utilises derivative financial instruments (shown separately in the consolidated statement of directly attributable transaction costs. The subsequent measurement of financial liabilities depends on financial position under other financial assets and other financial liabilities) to economically hedge its their classification as follows: primary market risk exposures, primarily risks related to commodity price movements, and to a lesser Financial liabilities at fair value through profit or loss extent, related to exposure to foreign currency exchange and interest rate movements. For some of Financial liabilities at fair value through profit or loss include financial liabilities held for trading and these derivative transactions, the Group will enter into positions through Trafigura Pte Ltd and Trafigura financial liabilities designated upon initial recognition at fair value through profit or loss. Derivatives Ltd. The Group has an agreement in place with Trafigura Pte Ltd and Trafigura Derivatives Ltd whereby those derivative transactions entered into on behalf of the Group by Trafigura Pte Ltd and Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing Trafigura Derivatives Ltd are contractually binding to the Group and therefore any gains or losses in the near term. This category also includes derivative financial instruments entered into by the Group arising from such transactions are strictly for the account of the Group. that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective Derivatives, including separated embedded derivatives, are classified as held for trading at fair values hedging instruments. and related gains and losses are recorded in profit or loss unless they are designated as effective

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

hedging instruments as defined by IFRS 9 The Group does not generally apply hedge accounting as Net realisable value of petroleum products is based on the estimated selling price in the ordinary course defined by IFRS9. of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost includes all costs incurred in the normal course of business in bringing each product to its present Offsetting of financial instruments location and condition. Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the Any write-off is recognised when the probable realisable value is lower than the net book value. recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle With respect to inventories held for trading purposes, the Group accounts for them at fair value less the liabilities simultaneously. costs to sell and any changes in value are recognised in profit or loss. Trading activities include Fair value of financial instruments optimisation of the Group’s supply cycle and the supply of petroleum products to business-to-business The fair value of financial instruments that are traded in active markets at each reporting date is and wholesale clients. Further details are provided in Note 17. determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. m) Leases 130 The Group as lessee For financial instruments not traded in an active market, the fair value is determined using appropriate The Group recognises a right-of-use asset and a lease liability at the lease commencement date. valuation techniques. Such techniques may include: using recent arm’s length market transactions; Both are presented as separated items in the statement of financial position under the note 15 and reference to the current fair value of another instrument that is substantially the same; a discounted the note 24. cash flow analysis; or other valuation models. The right-of-use assets is measured at cost, which comprises the initial amount of the lease liability Current versus non-current classification adjusted for any lease payments made at or before the commencement date, plus any initial direct Derivative instruments that are not designated as effective hedging instruments are classified as current costs incurred and an estimated of costs for dismantling less any lease incentive received. or non-current or separated into current and non-current portions based on an assessment of the facts and circumstances (e.g. the underlying contracted cash flows). The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the right-of-use asset is periodically • Where the Group will hold a derivative as an economic hedge (and does not apply hedge accounting) for a period beyond 12 months after the reporting date, the derivative is classified as non- reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability (ex: current (or separated into current and non-current portions) consistent with the classification of the escalations). At implementation of the norm, we included any lease prepayment pending to amortise as underlying item. of 31st December 2018 in the right-of-use. • Embedded derivatives that are not closely related to the host contract are classified consistent with The lease liability is initially measured at the present value of the lease payments that are not paid at the the cash flows of the host contract. commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental l) Inventory Inventories, other than inventories held for trading purposes, are stated at the lower of cost and net borrowing rate as the discount rate. realisable value. Cost is determined by the weighted average method and comprises direct purchase Lease payments included in the measurement of the lease liability comprise the following: costs, cost of production, transportation and manufacturing expenses. Borrowing costs are not • Fixed payments, including in-substance fixed payments; included in the cost of inventory. • Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

• Amounts expected to be payable under a residual value guarantee; and When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub- • The exercise price under a purchase option that the Group is reasonably certain to exercise, lease lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use payments in an optional renewal period if the Group is reasonably certain to exercise an extension asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short- option, and penalties for early termination of a lease unless the Group is reasonably certain not to term lease to which the Group applies the exemption described above, then it classifies the sub-lease as terminate early. an operating lease. The lease liability is measured at amortised cost using the effective interest method. It is remeasured If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the when there is a change in future lease payments arising from a change in an index or rate, if there is a consideration in the contract. change in the Group’s estimate of the amount expected to be payable under a residual value Rental income from operating leases is recognised on a straight-line basis over the term of the relevant guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or lease. Initial direct costs incurred in negotiating and arranging an operating lease are subtracted from termination option. lease on a straight-line basis over the lease term. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying 131 The accounting policies applicable to the Group as a lessor in the comparative period were not different amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of- from IFRS 16. However, when the Group was an intermediate lessor the sub-leases were classified with use asset has been reduced to zero. reference to the underlying asset. Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of n) Cash and short-term deposits Cash and short-term deposits in the consolidated statement of financial position comprise cash at machinery, vehicles, vessels and IT and office equipment that have a lease term of 12 months or less and banks and on hand and short-term deposits with a maturity of three months or less. For the purpose of any kind of leases nature when low-value assets are concerned. The Group recognises the lease the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term payments associated with these leases as an expense on a straight-line basis over the lease term. deposits as defined above. The Group as lessor When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease o) Provisions Provisions are recognised when the Group has a present obligation as a result of a past event, it is or an operating lease. probable that the Group will be required to settle the obligation, and a reliable estimate can be made of To classify each lease, the Group makes an overall assessment of whether the lease transfers the amount of the obligation. The amount recognised as a provision is the best estimate of the substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the consideration required to settle the present obligation at the end of the reporting period, taking into case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the account the risks and uncertainties surrounding the obligation. When a provision is measured using the Group considers certain indicators such as whether the lease is for the major part of the economic life cash flows estimated to settle the present obligation, its carrying amount is the present value of those of the asset. cash flows (when the effect of the time value of money is material). Amounts due from lessees under finance leases are recognised as receivables at the amount of the When some or all of the economic benefits required to settle a provision are expected to be recovered Group net investment in the leases. Finance lease income is allocated to accounting periods so as to from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will reflect a constant periodic rate of return on the Group net investment outstanding in respect of the be received and the amount of the receivable can be measured reliably. leases.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

p) Revenue recognition q) Taxes Revenue is measured at the fair value of the consideration received or receivable, taking into account Current income tax contractually defined terms of payment and excluding taxes or duty. Revenue is reduced for estimated Current income tax assets and liabilities are measured at the amounts expected to be recovered from customer returns, discounts and other similar allowances. The Group assesses its revenue arrangements or paid to the taxation authorities. The tax rates and tax laws used to compute the amounts are those against specific criteria in order to determine if it is acting as principal or agent. The Group has that are enacted or substantively enacted, at the reporting date in the countries where the Group concluded that it is acting as a principal in all of its revenue arrangements. Revenue is recognised to the operates and generates taxable income. Current income tax relating to items recognised in other extent that it is probable that the economic benefits will flow to the Group and the revenue can be comprehensive income is also recognised in other comprehensive income and not in profit or loss. reliably measured, regardless of when the payment is being made. The following specific recognition Deferred tax criteria must also be met before revenue is recognised: Deferred tax assets and liabilities are recorded on temporary differences between the tax bases of Sale of goods assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of and for operating loss and tax credit carry forwards. Deferred tax liabilities are generally recognised for 132 the goods have passed to the buyer, usually on delivery of the goods. all taxable temporary differences. Rendering of services Deferred tax assets are generally recognised for all deductible temporary differences to the extent that Revenue from a contract to provide services is recognised by reference to the stage of completion of it is probable that taxable profits will be available against which those deductible temporary the contract. The stage of completion of the contract is determined as follows: differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Such • Servicing fees included in the price of products sold are recognised by reference to the proportion of deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or the total cost of providing the servicing for the product sold. from the initial recognition (other than in a business combination) of other assets and liabilities in a • Revenue from time and material contracts is recognised at the contractual rates as labour hours and transaction that affects neither the taxable profit nor the accounting profit. direct expenses are incurred. Deferred tax liabilities are recognised for taxable temporary differences associated with investments in Dividend and interest income subsidiaries and associates, and interests in joint ventures, except where the Group is able to control Dividend income from investments is recognised when the shareholder’s right to receive payment has the reversal of the temporary difference and it is probable that the temporary difference will not been established (provided that it is probable that the economic benefits will flow to the Group and the reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences amount of income can be measured reliably). associated with such investments and interests are only recognised to the extent that it is probable that Interest income from a financial asset is recognised when it is probable that the economic benefits will there will be sufficient taxable profits against which to utilise the benefits of the temporary differences flow to the Group and the amount of income can be measured reliably. Interest income is accrued by and they are expected to reverse in the foreseeable future. reference to the principal outstanding and at the effective interest rate applicable, which is the rate that The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the exactly discounts estimated future cash receipts through the expected life of the financial asset to that extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of asset’s net carrying amount on initial recognition. the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year consolidated financial statements. Estimates and assumptions are continuously evaluated and are when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been based on management’s experience and other factors, including expectations of future events. enacted or substantively enacted at the reporting date. The effect on deferred tax assets and liabilities Changes in these assumptions may materially affect the consolidated financial position or performance of changes in tax rates is recognised in profit or loss in the period of the enactment of the change in tax reported in future periods. rates. Impairment of assets Tax exposure In accordance with IAS 36 Impairment of Assets, the Group performs an assessment at each reporting In determining the amount of current and deferred tax, the Company takes into account the impact of date to determine whether there are any indications of impairment at each reporting date. If indications uncertain tax positions and whether additional taxes and interest may be due. The Company believes of impairment exist, an impairment test is performed to assess the recoverable amount of the assets. that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many Goodwill impairment factors, including interpretations of tax law and prior experience. This assessment relies on estimates Determining whether goodwill is impaired requires an estimation of the value in use of the CGUs to and assumptions and may involve a series of judgements about future events. New information may which goodwill has been allocated. The value in use calculation requires management to estimate the 133 become available that causes the Company to change its judgement regarding the adequacy of future cash flows expected to arise from the CGU, and a suitable discount rate, in order to calculate existing tax liabilities and such changes to tax liabilities will impact tax expense in the period that such a present value. Details of the Group goodwill impairment assessment at 31 December 2020 and 2019 are determination is made. described in Note 16. r) Share-based payments Useful lives of intangible assets and property and equipment Employees of the Group receive remuneration in the form of share-based payments, whereby Intangible assets and property and equipment are depreciated on a straight-line basis over the employees render services as consideration for cash (cash-settled transactions). Cash-settled share estimated useful lives of the assets. The useful lives are estimated by management at the time the based payments result in recognition of a liability, which is an obligation to make a payment in cash or assets are acquired and are reassessed annually, with the estimated useful lives being based on other assets, based on the price of the underlying equity instrument. historical experience with similar assets, market conditions and future anticipated events. Employee services received in a cash-settled share based payment are measured indirectly at the fair Provision for expected credit losses value of the liability at the grant date. The initial measurement of the liability is based on the fair value of For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. the underlying instrument. Market and non-vesting conditions are taken into account in determining the Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance fair value of the liability. based on lifetime ECLs at each reporting. The Group has established a provision matrix that is based on At each reporting date, and ultimately at the settlement date, the fair value of the recognised liability is its historical credit loss experience date (taking into account the ageing of trade receivables, and re-measured so that the ultimate liability equals the cash payment on settlement date. Re- geographical risk as a proxy for counterparty risk), adjusted for forward-looking factors specific to the measurements during the vesting period are recognised immediately to the extent that they relate to debtors and the economic environment. future services. Re-measurements after the vesting period are recognised immediately. The provision matrix is initially based on the Group’s historical observed default rates. The Group will 3. Significant accounting judgements, estimates and assumptions calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At The preparation of the Group consolidated financial statements in conformity with IFRS requires every reporting date, the historical observed default rates are updated and changes in the forward- management to make judgements, estimates and assumptions that affect the reported amounts of looking estimates are analysed. revenues, expenses, assets and liabilities, as well as the contingent liabilities at the date of the

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The assessment of the correlation between historical observed default rates, forecast economic liabilities and contingent liabilities recognised at the acquisition date are recognised at fair value. In conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in determining fair value the Group has utilised valuation methodologies including discounted cash flow circumstances and of forecast economic conditions. The Group’s historical credit loss experience and analysis market value assessments or replacement value by third parties for, in particular, acquired forecast of economic conditions may also not be representative of customer’s actual default in the property and equipment. The market value of property and equipment is the estimated amount for future. which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length. The assumptions made in performing these valuations include assumptions as Environmental costs to discount rates, foreign exchange rates, commodity prices, the timing of development, capital costs, Costs associated with environmental remediation obligations are provided for when the Group has a and future operating costs. Any significant change in key assumptions may cause the acquisition present obligation and the provision can be reasonably estimated. Such provisions are adjusted as accounting to be revised including the recognition of additional goodwill or a discount on acquisition. further information develops or circumstances change. Recovery of deferred tax assets 4. Significant events Refinancing of and existing revolving credit facility Judgement is required in determining whether deferred tax assets should be recognised in the 134 In April 2019 the company successfully closed a 1-year US$310 million Revolving Credit Facility, with consolidated statement of financial position. Deferred tax assets, including those arising from unutilised two 1 – year extension options, to refinance the Company’s existing 1-year US$350 million revolving tax losses, require management to assess the likelihood that the Group will generate sufficient taxable credit facility dated April 2019. earnings in future periods, in order to utilise recognised deferred income tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These Disposal of Australia fuels business estimates of future taxable income are based on forecast cash flows from operations (which are In December 2019 the company announced the sale of its Australian commercial and retail fuels impacted by production and sales volumes, oil and natural gas prices, reserves, operating costs, business to Chevron Australia Downstream Pty Ltd. The transaction completed on 30 June 2020. The decommissioning costs, capital expenditure, dividends and other capital management transactions) operation under this disposal transaction was classified as discontinued operation and presented and judgement about the application of existing tax laws in each jurisdiction. accordingly in the consolidated financial statements for years 2019 and 2020. To the extent that future cash flows impacting the taxable income differ significantly from estimates, Change in shareholding structure the ability of the Group to realise the net deferred tax assets recorded at the reporting date could be On 10 June 2020, Cochan Holdings LLC transferred 11,834,721 ordinary shares to Trafigura PE Holding impacted. In addition, future changes in tax laws in the jurisdictions in which the Group operates could Limited for a consideration of US$390.0 million. Further, Trafigura PE Holding Limited transferred limit the ability of the Group to obtain tax deductions in future periods. 5,300,000 ordinary shares to TPE Holdings 2 LLC for a consideration of US$102.2 million. Pursuant to a Director’s Resolution passed on 9 July 2020, additional 1,000,000 ordinary shares were transferred by Contingencies Trafigura PE Holding Limited to TPE Holdings 2 LLC. By their nature, contingencies will only be resolved when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently On 10 June 2020, the Company re-purchased 11,834,721 ordinary shares held by Trafigura PE Holding involves the exercise of significant judgement and the use of estimates regarding the outcome of future Limited for a consideration of US$390.0 million. The Company entered into a Subordinated Loan events. Agreement with Trafigura PE Holding Limited in order to fund the payment of purchase consideration pursuant to repurchase. All repurchased shares were immediately cancelled. The initial subordinated Determination of fair values in business combinations Loan Agreement between the Company and Trafigura PE Holding Limited of US$390.0 million was The Group has applied estimates and judgements to determine the fair value of assets acquired and novated to Trafigura Pte Ltd (new lender). liabilities and contingent liabilities assumed by way of a business combination. The value of assets,

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Business unit reorganization • Amendments to IAS 37 – Onerous Contracts: —Cost of Fulfilling a Contract (effective for annual On 20 August 2020, the Company announced a reorganization of its business into three business units: periods on or after 1 January 2022) the core ‘Downstream’ business, an ‘Infrastructure’ business and a ‘Future Energies’ business applicable • Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use (effective for from the 1st of October 2020: annual periods on or after 1 January 2022) • The core ‘Downstream business unit’ consists of five customer-focused lines of business: retail, • AIP (2018-2020 cycle): IFRS 1 First-time Adoption of International Financial Reporting Standards – commercial lubricants, bitumen, and aviation. Subsidiary as a First-time Adopter (effective for annual periods on or after 1 January 2022) • The ‘Infrastructure business unit’ is organized around 35 Marine & Inland terminals and storage • AIP (2018-2020 cycle): IFRS 9 Financial Instruments – Fees in the ‘10 per cent’ Test for Derecognition facilities. It focuses on safe storage and operation of assets. of Financial Liabilities (effective for annual periods on or after 1 January 2022) • The ‘Future Energies business unit’ focuses on delivering lower carbon alternatives for Downstream • AIP (2018-2020 cycle): IAS 41 Agriculture – Taxation in Fair Value Measurements (effective for annual customers in the context of the energy transition. periods on or after 1 January 2022) Amendments to IFRS 3 – Reference to the Conceptual Framework (effective for annual periods on or 5. Changes in accounting standards • New and amended standards and interpretations after 1 January 2022) 135 In 2020, the Group adopted the following new or amended standards and interpretations for the first • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase time: 2 (effective for annual periods on or after 1 January 2021) • Amendments to References to the Conceptual Framework in IFRS Standards (effective for annual The adoption of these issued or amended standards and interpretations is not expected to have a periods on or after 1 January 2020) material impact on the consolidated financial position or performance of the Group. • Amendments to IAS 1 and IAS 8 – Definition of Material (effective for annual periods on or after 1 January 2020) • Amendments to IFRS 3 – Definition of a Business (effective for annual periods on or after 1 January 2020) • Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform (effective for annual periods on or after 1 January 2020) • Amendment to IFRS 16 – COVID-19-Related Rent Concessions (effective for annual periods on or after 1 June 2020) Standards issued but not yet effective The standards and interpretations that have been issued or amended but not yet effective, up to the date of issuance of the Group’s consolidated financial statements are disclosed below. The Group intends to adopt the following standards, interpretations and amendments when they become effective, to the extent they are relevant to the Group. • Amendments to IAS 1 – Classification of Liabilities as Current or Non-current (including Amendment to IAS 1 – Classification of Liabilities as Current or Non-current –) (effective for annual periods on or after 1 January 2023)

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6.1 Business combinations and acquisition of non-controlling interests 6.3 Cash flow on acquisitions 6.1a Subsidiaries acquired in 2020 6.3a The cash flow on acquisitions made in 2020 is summarised below: Proportion of voting equity interests acquired in US$’000 Midstream segment Subsidiaries acquired Principal activity Date of acquisition % Purchase consideration 2,530 Kotka Tank Storage Oy, Finland Fuel storage 24.11.2020 50.1% Net cash outflow (2,530)

6.1b Subsidiaries acquired in 2019 6.3b There were no businesses acquired during 2019. There were no new subsidiaries acquired in 2019. 6.4 Pro forma impact of acquisitions on the results of the Group 6.2 Assets and liabilities recognised at date of acquisition 6.4a There were no businesses acquired during 2020 with a material impact on sales and 6.2a Assets and liabilities recognised at date of acquisition in 2020 operating profit of the Group. The fair value of the identifiable assets and liabilities of the entities acquired at the date 136 of acquisition was: 6.4b There were no businesses acquired during 2019 with a material impact on sales and operating profit of the Group. in US$’000 Midstream segment Assets 6.5 Non-controlling interests acquired Property and equipment 412 6.5a Non-controlling interests acquired in 2020 Right-of-use 2,284 There were no non-controlling interest acquired during 2020. Other current assets 3 Liabilities 6.5b Non-controlling interests acquired in 2019 Trade and other payables (36) There were no non-controlling interest acquired during 2019. Total identifiable net assets acquired at fair value 2,663 Non-controlling interest measured at the proportionate share (133) of the acquiree’s net assets Net assets acquired 2,530 Purchase consideration 2,530

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6.6 Sale of assets and investments 6.6b Sale of assets and investments in 2019 6.6a Sale of assets and investments in 2020 During 2019 the Group disposed activities in Indonesia on 1st July 2019 and Paraguay on On the 30 June 2020 the Group disposed of its commercial and retail fuels business in Australia and on 30th September 2019 as reflected by the figures below. the 31 December 2020 of the aviation refuelling operations in Yuzhny Airport, Rostov-on-Don, Russia. in US$’000 Downstream segment On 29 December 2020 we have also received the outstanding amount related to our Paraguay Assets activities divested in 2019. The impact of these transactions is presented in the table below. Cash and cash equivalents (2,545) in US$'000 Downstream segment Inventories (23,078) Receivables (17,954) Assets Property and equipment (51,542) Cash and cash equivalents (15,671) Goodwill and intangible assets (14,911) Inventories (74,062) Other long term assets (434) Receivables (88,841) 137 Property and equipment (207,319) Liabilities Goodwill and intangible assets (61,015) Trade and other payables 27,528 Right-of-use (395,684) Other current liabilities 3,443 Other long term assets (18,959) Non-current liabilities 2,003 Total net assets disposed of (77,490) Liabilities Trade and other payables 154,579 Accumulated translation gains/(losses) (35,321) Other current liabilities 42,526 Sales proceeds 182,922

Non-current liabilities 393,215 Gain on disposal 70,111

Total net assets disposed of (271,231) in US$'000 Downstream segment Sales proceeds 183,121 CTA reclassified to profit and loss (87,394) Cash and cash equivalents exit (2,545) Gain on assets transferred 1,810 Receivables (44,077) Transaction costs (16,101) Net cash inflow 136,499 Sales proceeds 315,693 Loss on investment disposal (57,223) Sales proceeds 315,693 Proceeds received on prior year transaction 45,378 Paid transaction costs (16,032) Cash on deconsolidated perimeter (15,671) Net cash inflow 329,368

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. Leases As a lessor As a lessee The Group does not have any material financial lease. Concerning operational leases, the Group leases The Group as lessee has around 1,500 leases of different natures, mostly related to: or subleases out to third and related parties some of its owned terminals’ capacity, jetty rights, services • Lands: either for service stations, terminals or office buildings. stations and office space. The Group has classified these leases as operating leases, because they do • Services stations: the lease comprises a mix of land, building and equipment on the site. not transfer substantially all of the risks and rewards incidental to the ownership of the assets. • Storage capacity for fuel and bitumen inventory. in US$'000 2020 2019 • Buildings, mainly office space and shops in service stations. Operating Lease income 119,470 121,153 • Vessels for bitumen transport. Thereof sublease income 12,641 18,286 In addition, the Group leases some equipment and machinery, mainly for our terminals, as well some cars and IT and office equipment. 8. Segment and geographic information

8.1 Segment information in US$'000 2020 2019 For management purposes, the Group is organised into business units based on products and services 138 Amortization expense of right-of-use assets (128,811) (143,780) and has two reportable segments as follows: Interest expense on lease liabilities (56,889) (68,633) • Midstream business activities that include refining and storage of oil and gas products internationally. Expense relating to short-term lease (9,221) (13,532) • Downstream business activities that include distribution, wholesale and retail sales of refined Expense relating to leases of low-value assets (899) (895) products. Variable lease expenses (recognised in cost of goods sold) (28,272) (25,248) Variable lease expenses (selling and operating expenses) (4,912) (4,569) No operating segments have been aggregated to form the above reportable operating segments. Variable lease expenses (recognised in general and administrative exp.) (1,158) (722) The Group Executive Committee monitors the operating results of its business units separately for the Variable payments purpose of making decisions about resource allocation and performance assessment. Segment It is frequent to have variable payments for terminal leases based in volume of the terminal used performance is evaluated based on operating profit or loss and is measured consistently with operating (throughput), as well as a variable lease payments for service stations leases based on volumes sold. profit or loss in the consolidated financial statements. However, Group financing (including finance These are considered as variable payments and recognised in the income statement under cost of costs and finance income) and income taxes are managed on a Group basis and are not allocated to goods sold. operating segments. Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. Short-term leases and low-value assets The Group applies the short-term lease recognition exemption to leases of machinery, vehicles, vessels and IT and office equipment whenever they have a lease term of 12 months or less. It also applies the low-value recognition exemption to leases of any nature that are considered low-value: leased assets below $5,000. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. The amount of lease expense recognised in the statement of profit or loss under short-term recognition exemption is US$8.6 million (2019: US$13.5 million), and the amount of lease expense under low-value recognition exemption is US$0.9 million (2019: US$0.9 million).

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year ended 31 December 2020 Year ended 31 December 2019 in US$’000 Downstream Midstream Consolidated in US$’000 Downstream Midstream Consolidated Revenue from contracts with customers 9,700,451 243,198 9,943,649 Revenue from contracts with customers 14,295,347 302,484 14,597,831 Gross profit 1,047,716 157,002 1,204,718 Gross profit 1,078,847 185,963 1,264,810 Selling and operating costs(i) (765,999) (204,861) (970,860) Selling and operating costs(ii) (1,259,661) (222,317) (1,481,978) General and administrative expenses (143,894) (10,447) (154,341) General and administrative expenses (154,309) (12,282) (166,591) Other operating income/(expenses), net (102,234) 21,227 (81,007) Other operating income/(expenses), net 28,448 21,010 49,458 Share of net profits of associates 3,335 928 4,263 Share of net profits of associates 5,067 1,764 6,831 Operating loss 38,924 (36,151) 2,773 Operating profit (301,608) (25,862) (327,470) Finance income 21,134 Finance income 30,286 Finance costs (247,140) Finance costs (323,176) Net foreign exchange losses (50,924) Net foreign exchange losses 9,946 139 Loss before tax from continuing operations (274,157) Profit before tax (610,414)

Total non-current assets (excluding other financial, 2,726,672 504,255 3,230,927 Total non-current assets (excluding other financial, 3,100,987 635,556 3,736,543 deferred tax and other assets) deferred tax and other assets) Total current assets 2,159,130 85,822 2,244,952 Total current assets 2,501,543 147,643 2,649,186 Total current liabilities 3,237,518 162,636 3,400,154 Total current liabilities 3,029,135 70,960 3,100,095 (i) Selling and operating costs include: (ii) Selling and operating costs include: – depreciation and amortisation of US$349.4 million thereof US$300.0 million on the Downstream and US$49.4 million on the Midstream segment. – depreciation and amortisation of US$284.9 million thereof US$234.4 million on the Downstream and US$50.5 million on the Midstream segment. – impairment charge of US$238.7 million thereof US$143.1 million on the Downstream and US$95.6 million on the Midstream segment. – impairment charge of US$656.9 million thereof US$559.4 million on the Downstream and US$97.5 million on the Midstream segment.

Selling and operating costs and general and administrative expenses that are not specifically linked to a segment operating entity are allocated on a pro–rata basis according to the relative weighting of gross profit for each segment. Finance income/(costs), net foreign exchange losses and income tax expenses are not allocated as they do not relate to a specific segment and are managed on a Group basis. These accounts do not form part of the review of the operating segment performance monitored by management.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8.2 Geographic information Year ended 31 December 2019 The Group is organised in four main regions: in US$’000 Americas Asia–Pacific Africa Europe Consolidated • Americas (mainly composed of Latin America and Caribbean) Revenue from contracts with customers 4,966,034 2,030,601 5,268,255 2,332,941 14,597,831 • Asia–Pacific (including Middle East and Australia) Gross profit 485,021 243,060 453,182 83,547 1,264,810 • Africa Selling and operating costs (321,961) (584,097) (456,811) (119,109) (1,481,978) General and administrative expenses (41,762) (28,221) (89,068) (7,540) (166,591) • Europe (including Russia) Other operating income/(expenses), net 71,606 (8,423) (20,172) 6,447 49,458 2020 2019 Share of net profits of associates 973 488 6,287 (917) 6,831 in K m3 (unaudited) Downstream Midstream Downstream Midstream Operating profit/(loss) 193,877 (377,193) (106,582) (37,572) (327,470) Throughput volumes (Midstream) Total non-current assets (excluding other 1,163,984 942,766 1,321,512 308,279 3,736,541 Americas – 478 – 662 financial, deferred tax and other assets) Asia–Pacific – 4,862 – 4,245 Africa – 4,785 – 3,453 Selling and operating costs and general and administrative expenses that are not specifically linked to 140 Europe – 4,407 – 5,835 an operating region are allocated on a pro–rata basis according to the relative weighting of gross profit Total – 14,532 – 14,195 for each region. The Group has no material commercial operations and no material non-current assets in its country of Sales volumes (Downstream and Midstream) incorporation, Singapore. Americas 8,265 – 9,221 – Asia–Pacific 3,031 120 3,203 140 Non-current assets for this purpose consist of investments in associates, property and equipment, Africa 6,103 – 7,371 – intangible assets and goodwill (Notes 9, 13 and 14). Europe 2,599 – 2,506 –

Total 19,998 120 22,301 140

Year ended 31 December 2020 in US$’000 Americas Asia–Pacific Africa Europe Consolidated Revenue from contracts with customers 3,270,301 1,463,414 3,348,540 1,861,394 9,943,649 Gross profit 505,884 194,652 389,441 114,741 1,204,718 Selling and operating costs (359,476) (162,978) (367,093) (81,313) (970,860) General and administrative expenses (39,339) (24,558) (81,892) (8,552) (154,341) Other operating income/(expenses), net (3,075) (53,823) (26,947) 2,838 (81,007) Share of net profits of associates 1,493 136 4,435 (1,801) 4,263 Operating profit/(loss) 105,487 (46,571) (82,056) 25,913 2,773 Total non-current assets (excluding other 1,027,635 907,657 999,923 295,712 3,230,927 financial, deferred tax and other assets)

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9. Investments in associates 9.2 Associates summarised financial information The following table summarises the Group’s investments in associates for the years ended 31 December The following table illustrates summarised financial information of the Group’s investments 2020 and 2019. None of the entities included below is listed on any public exchange. in associates: 9.1 List of investments in US$’000 2020 2019 Proportion of voting interests Associates’ assets and liabilities held at 31 December Current assets 66,305 102,988 2020 2019 Non-current assets 68,334 85,176 Associate name Activity Location % % Current liabilities (48,239) (82,083) Empresa Cubana de Gas Fuel marketing Caribbean 50% 50% Non-current liabilities (59,622) (35,733) Puma Energy Belfast Ltd Storage United Kingdom 50% 50% Sakunda Petroleum (Pvt) Ltd Fuel marketing Zimbabwe 49% 49% Equity 26,778 70,348 Total carrying amount of the investments 19,669 37,634 Bitumen Storage Services (WA) Storage Australia 50% 50% 141 Pty Ltd (Australia) Less: discontinued operations – 9,991 RAM Petroleum (Pvt) Ltd Fuel supply Zimbabwe 48% 48% Carrying amount of the investments 19,669 27,643 High Heat Tankers Pte. Ltd. Shipping of high heat Singapore 50% 50% liquid products Associates’ revenues and net profits: Emoil Petroleum Storage FZCO Storage United Arab – 20% Revenues 270,474 428,110 Emirates Profits net of tax 8,958 1,366 Oil Malal SA Storage Chile – 33% Total group’s share of net profits of associates 4,529 7,132 Fuel Distributors of Western Australia Fuel supply and cartage Australia – 50% Less: discontinued operations 266 301 Pty Ltd Group’s share of net profits of associates 4,263 6,831 (i) considered as part of discontinued operations 10. Consolidated statement of income 10.1 Net sales in US$’000 2020 2019 Net sales of goods(i) 10,595,736 16,742,934 Rendering of services 399,930 447,974 Total revenue from contracts with customers 10,995,666 17,190,908 Less: discontinued operations 1,052,017 2,593,077 Revenue from contracts with customers from continuing operations 9,943,649 14,597,831 (i) Sales of goods are net of any sales taxes, value–added taxes, petroleum taxes and discounts.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.2 Selling and operating costs in US$’000 2020 2019 in US$’000 2020 2019 Employee benefit expenses (165,482) (189,869) Loss on disposal of assets (1,402) – Operating expenses (270,058) (343,628) Loss on disposal of investments (56,811) – Depreciation (Note 13) (231,304) (291,334) Provision for doubtful accounts (4,073) (9,737) Amortisation (Note 14) (26,177) (33,128) Movements in other provisions (7,719) (22,541) Amortisation of lease right-of-use (128,811) (143,780) Other non-operating expenses(i) (11,828) (8,791) Impairment (Notes 13/14)(i) (238,627) (656,906) Foreign exchange losses on operations (4,132) – Impairment assets right-of-use (3,415) (2,294) Total other operating expenses (85,965) (41,069) Total selling and operating costs (1,063,874) (1,660,939) Less: discontinued operations (1,812) (9,403) Less: discontinued operations (93,014) (178,961) Other operating expenses from continuing operations (84,153) (31,666) (i) Includes the value of the US$(10.3) million write-off of insurance receivable in Puerto Rico Selling and operating costs from continuing operations (970,860) (1,481,978) 142 (i) The line impairment includes the write–down of various tangible and intangible assets in the Downstream segment following the yearly impairment testing process (Note 16). 10.5 Finance income in US$’000 2020 2019 10.3 General and administrative expenses Interest income on loans to third parties 12,587 26,607 in US$’000 2020 2019 Interest income on loans to related parties 2,826 – Employee benefit expenses (101,108) (109,897) Bond buy-back 4,044 – Operating expenses (57,953) (67,355) Dividend income 1,686 3,769 Total general and administrative expenses (159,061) (177,252) Total finance income 21,143 30,376 Less: discontinued operations (4,720) (10,661) Less: discontinued operations 9 90 General and administrative expenses from continuing operations (154,341) (166,591) Finance income from continuing operations 21,134 30,286

10.4 Other operating income/(expenses) 10.6 Finance costs in US$’000 2020 2019 in US$’000 2020 2019 Gains on disposal of operating assets 3,146 9,148 Interest on loans and borrowings from third parties (177,131) (224,668) Gains on disposal of investments(i) – 70,111 Interest on loans and borrowings from related parties (21,291) (13,081) Foreign exchange gains on operations – 2,921 Interest on lease liability (56,889) (68,634) Total other operating income 3,146 82,180 Loss on hyperinflation (1,175) (10,602) Less: discontinued operations – 1,056 Unwinding of discount (1,099) (1,059) Other operating income from continuing operations 3,146 81,124 Other financial costs (706) (28,433) (i) 2019 mainly driven by the disposal of Paraguay and Indonesia for US$71.6 million Total finance costs (258,291) (346,477) Less: discontinued operations (11,151) (23,301) Finance costs from continuing operations (247,140) (323,176)

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.7 Net foreign exchange gains/(losses) 11.3 Reconciliation of accounting profit to income tax expense in US$’000 2020 2019 The Group’s effective tax rate differs from the Company’s statutory income tax rate in Singapore, which Financial FX gains/(losses) (47,152) (25) was 17% in 2020 (2019: 17%) due to the Group operating in several jurisdictions. A reconciliation Net gain/(loss) on FX derivatives (3,793) 9,954 between tax expense and the product of accounting profit multiplied by the Group’s statutory blended Net foreign exchange gains/(losses) (50,945) 9,929 income tax rate of jurisdictions the Group operates in for the years ended 31 December 2020 and 2019 Less: discontinued operations (21) (17) was as follows: Net foreign exchange gains/(losses) from continuing operations (50,924) 9,946 in US$’000 2020 2019 11. Income tax Accounting (loss) before income tax (274,157) (610,414) Share of net profits in associates 4,263 6,831 11.1 Current income tax expense The major components of income tax expense for the years ended 31 December 2020 and 2019 were: Accounting (loss) before tax net of share of net profits in associates (278,420) (617,245) Income tax (expense)/benefit at expected statutory rate 20,316 44,164 in US$’000 2020 2019 Permanent differences 143 Current income tax Non-deductible expenses (16,129) (27,556) Current income tax charge 55,210 63,831 Other non–taxable income 5,739 2,896 Adjustments in respect of current income tax of previous year 2,173 1,761 Capital gains or losses (363) 38 Provision for tax contingencies 1,882 – Income exempt or subject to specific tax holidays 2,717 1,872 Current income tax 59,265 65,592 Other permanent differences (31,915) (20,048) Deferred tax Relating to origination and reversal of temporary differences (2,051) 615 Adjustment for countries not based on net taxable income 1,705 351 Withholding tax Adjustments recognised in the current year in relation to (2,173) (1,779) Applicable withholding tax in the current year 2,054 11,220 current income tax of previous years Adjustments recognised in the current year in relation to (6,231) (362) Income tax expense reported in the consolidated statement of income 59,268 77,427 deferred income tax of previous years Impact of rate differences on deferred tax items 9 (622) 11.2 Income tax recognised directly in other comprehensive income Effect of unrecognised and unused tax losses not recognised as deferred tax assets (29,555) (56,048) Income tax totalling US$(0.4) million (2019: US$(0.4) million) was recognised directly in other Withholding tax (2,054) (11,220) comprehensive income. The entire amount recognised is related to the actuarial losses recognised Minimum tax and surtax (4,886) (5,449) during the year from the Group’s various defined benefit plans. Rate difference impacts 3,136 1,569 Other adjustments 416 (5,233) At the effective income tax rate of -22% (2019: -13%) (59,268) (77,427) (i) Income exempt or subject to specific tax holidays is mainly the result from tax–specific incentives granted by certain national authorities to the Group given certain investments made by the Group that resulted in the development of local infrastructure.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Group operates in a multitude of jurisdictions and adheres to applicable local and international tax Reconciliation of net deferred tax assets/(liabilities) law in the countries in which it operates, including legislation on transfer pricing. The Group’s tax policy in US$’000 2020 2019 is to pay appropriate tax according to work carried out in each jurisdiction, as determined by a functional Opening balance at 1 January 1,387 3,414 analysis of operations using standard measures wherever possible, underpinned by reports prepared to Tax income recognised in profit or loss during the year 2,052 (616) fulfil local transfer pricing requirements. The Group’s effective tax rate – the average rate at which Change in tax rate recognised in profit or loss during the year – – consolidated pre-tax profits are taxed – varies from year to year according to circumstances, but in Other movements during the year 1,837 (1,411) 2020 it was -20% (2019: 19%), excluding Australia discontinued operations the ETR is -22% (2019: -13%). Closing balance at 31 December 5,276 1,387 The difference in effective tax rate between the two years is explained, by non-recognition of deferred At 31 December 2020, the Group had unrecognised tax loss carry forwards amounting to US$543.8 tax assets relating to tax loss carry forwards. million excluding the impact of Australia discontinued operations (2019: US$516.7 million). These losses 11.4 Current tax assets and liabilities relate to subsidiaries that have had historical losses, which have an expiry date of more than four years. Current income taxes are computed on the profit before tax presented in the consolidated statement These losses may not be used to offset taxable income elsewhere in the Group and where the 144 of income adjusted to taxable profit in accordance with local tax legislation. Current income tax assets subsidiaries have no taxable temporary differences nor any tax planning opportunities available that and liabilities for the current and prior periods are measured at the amount expected to be recovered could partly support the recognition of these losses as deferred tax assets. from or paid to the tax authorities. Current tax assets mainly relate to overpaid tax. Current tax liabilities At 31 December 2020, the Group had unrecognised other temporary differences amounting to US$1.7 relate to income tax payable. million (2019: US$2.7 million). These temporary differences have no expiry date. If the Group was able 11.5 Deferred tax assets and liabilities to recognise all unrecognised deferred tax assets, profit would increase by US$113.6 million (2019: Consolidated statement Consolidated statement US$69.1 million). of financial position of income in US$’000 2020 2019 2020 2019 11.6 IFRIC 23 – Uncertainty over income tax treatment Accelerated depreciation for tax purposes (19,148) (12,496) (2,936) (11,797) The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty Revaluations (16,296) (27,078) (4,294) (3,180) that affects the application of IAS 12 Income Taxes. Due to its global reach, including operating in high- Losses 71,835 98,206 (24,018) (29,492) risk jurisdictions, the Group is subject to enhanced complexity and uncertainty, which may lead to Other temporary differences (31,115) (57,245) 29,196 96,131 uncertain tax treatments and the corresponding recognition and measurement of current and deferred Deferred tax expense/(income) (2,052) 51,662 taxes. The judgements and estimates made to separately recognise and measure the effect of each Deferred tax assets/(liabilities), net 5,276 1,387 uncertain tax treatment are re-assessed whenever circumstances change or when there is new Reflected in the consolidated statement of financial position as information that affects those judgments. The Group has re-assessed its global tax exposure and the follows: key estimates taken in determining the positions recorded to adopt IFRIC 23. As of 1 January 2020, the Deferred tax assets 49,924 52,384 global tax exposure has been determined by referencing to the uncertainty that the tax authority may Deferred tax liabilities (44,648) (50,997) not accept the Group’s proposed treatment of tax positions. The interpretation does not have a Deferred tax assets/(liabilities), net 5,276 1,387 material impact on the Group.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. Discontinued operations and assets held for sale 12.1 Statement of income from discontinued operations In December 2019 the company announced the sale of its Australian commercial and retail fuels in US$’000 2020 2019 business. The operation was part of the Downstream segment and the Asia-Pacific region of the group. Revenue from contracts with customers 1,052,017 2,593,077 The transaction was completed on 30 June 2020. The operation has been classified as a disposal group Cost of sales (956,613) (2,425,077) held for sale for the first six month of 2020 and for the full year 2019. Gross profit 95,404 168,000 Selling and operating costs (93,014) (178,961) Throughout 2020 the management of the Group has reaffirmed its intention to continue divesting General and administrative expenses (4,720) (10,661) assets in order to simplify operations and contribute to the deleveraging of the Group. To this extent at Other operating income – 1,056 the end of 2020 a number of assets have been declared as held for sale. These include the Bedworth Other operating expenses (1,812) (9,403) terminal in the United Kingdom, a plot of land in Nigeria, fuel distribution operations in Pakistan and Share of net profits and losses of associates 266 301 storage operations in Ivory Coast, all part of the Downstream segment. All these assets are available for Operating profit (3,876) (29,668) immediate sale and discussions with specific buyers are at an advanced stage with the sale expected to Finance income 9 90 145 occur within the next 12 month. These assets have been classified as held for sale on the balance sheet Finance costs (11,151) (23,301) of the Group but are not ring-fenced as discontinued operations on the statement of income due to Net foreign exchange gains/(losses) (21) (17) their limited size when compared to the total Group or the geographies and business units which they Loss before tax (15,039) (52,896) form part of. Income tax expense – (51,046) Loss for the year from discontinued operations (15,039) (103,942)

Attributable to: Owners of the parent (15,039) (103,942) Non-controlling interests

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12.2 Net sales from discontinued operations 12.5 Other operating income/(expenses) from discontinued operations in US$’000 2020 2019 in US$’000 2020 2019 Net sales of goods(i) 951,847 2,428,298 Gains/(losses) on disposal of assets – 971 Rendering of services 100,170 164,779 Foreign exchange gains on operations – 85 Revenue from contracts with customers 1,052,017 2,593,077 Other operating income – 1,056 (i) Sales of goods are net of any sales taxes, value–added taxes, petroleum taxes and discounts. in US$’000 2020 2019 12.3 Selling and operating costs from discontinued operations Loss on disposal of assets (518) – in US$’000 2019 2020 Provision for doubtful accounts (123) (5,113) Employee benefit expenses (33,655) (53,354) Movements in other provisions (959) (958) Operating expenses (22,829) (46,953) Other non-operating expenses (192) (3,332) Depreciation (Note 13) (16,596) (35,710) Foreign exchange losses on operations (20) – Amortisation (Note 14) (672) (3,873) 146 Other operating expenses (1,812) (9,403) Amortisation of lease right-of-use (19,350) (39,071) Impairment (Notes 13/14) 88 – 12.6 Finance income from discontinued operations Selling and operating costs (93,014) (178,961) in US$’000 2020 2019 Interest income third parties 9 90 12.4 General and administrative expenses from discontinued operations Finance income 9 90 in US$’000 2020 2019 Employee benefit expenses (2,090) (6,684) 12.7 Finance costs from discontinued operations Operating expenses (2,630) (3,977) in US$’000 2020 2019 General and administrative expenses (4,720) (10,661) Interest on loans and borrowings from third parties (820) (2,283) Interest on loans and borrowings from related parties (2,016) (3,622) Lease financial costs (8,315) (17,396) Unwinding of discount – – Finance costs from continuing operations (11,151) (23,301)

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12.8 Statement of financial position from discontinued operations/assets held for sale in US$’000 2020 2019 in US$’000 2020 2019 Assets Non-current liabilities Non-current assets Interest-bearing loans and borrowings 1,449 – Property and equipment 20,431 216,383 Lease liabilities 3,416 401,168 Intangible assets and goodwill 29 63,036 Retirement benefit obligations – – Right-of-use (IFRS16) 3,577 418,890 Other financial liabilities 1,142 294 Investments in associates – 9,992 Deferred tax liabilities 11 3,085 Other financial assets – – Provisions 330 2,192 Deferred tax assets – 3,085 Total non-current liabilities 6,348 406,739 Other assets 33 218 Current liabilities Total non-current assets 24,070 711,604 Trade and other payables 14,592 86,418 147 Current assets Interest-bearing loans and borrowings 19,539 69 Inventories 19,428 65,835 Lease liabilities 412 29,274 Other assets 5,242 5,389 Other financial liabilities – – Income tax receivable – – Income tax payable 279 – Trade receivables 3,780 74,791 Provisions 1,917 3,853 Other financial assets – – Total current liabilities 36,739 119,614 Cash and cash equivalents 341 2,496 Total liabilities 43,087 526,353 Total current assets 28,791 148,511 Net assets associated with the disposal group 9,774 333,762 Total assets held for sale 52,861 860,115 12.9 Statement of cash flows from discontinued operations in US$’000 2020 2019 Net cash flows from operating activities (1,300) 38,261 Net cash flows used in investing activities 14,591 (35,587) Net cash flows from financing activities 5,809 (3,337) Net increase/(decrease) in cash and cash equivalents 19,100 (663) Effects of exchange rate differences (5,925) (444) Cash and cash equivalents at the beginning of the period 2,496 3,603 Cash and cash equivalents on deconsolidated perimeter (15,671) – Cash and cash equivalents at the end of the period – 2,496

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

13. Property and equipment Total depreciation and impairment at (418,336) (1,400,796) (89,803) (76,571) – (1,985,506) Machinery Office Fixed 31 December 2019 Land and and Motor and IT assets Less: assets held for sale 21,483 90,652 28,749 14,348 – 155,232 in US$’000 buildings equipment vehicles equipment in progress Total Depreciation and impairment at (396,853) (1,310,144) (61,054) (62,223) – (1,830,274) Cost 1 December 2019 At 1 January 2019 1,345,356 3,224,989 173,935 96,159 111,331 4,951,770 Depreciation (Note 10.2) (38,106) (158,121) (11,405) (6,784) – (214,416) Additions 7,164 47,386 6,937 4,278 72,052 137,817 Disposals 1,947 3,839 2,196 1,222 – 9,204 Sale of interest in subsidiary (40,232) (56,679) (1,814) (2,892) (1,690) (103,307) Impairment (Note 10.2) (85,137) (116,699) (169) (285) – (202,290) Disposals (21,964) (12,259) (11,669) (1,448) 1,256 (46,084) Write–offs – 1,264 546 20 – 1,830 Write–offs (1,284) (1,739) (77) (366) – (3,466) Reclassifications 13,405 (4,771) 192 336 – 9,162 Reclassifications 22,803 48,681 2,043 5,851 (86,095) (6,717) Exchange adjustment, other(i) 26,448 40,212 500 1,135 – 68,295 Exchange adjustment, other(i) (105,324) (192,867) (2,764) (2,808) (3,844) (307,607) Classified as held for sale 245 67,438 109 999 176 68,967 148 Total costs at 31 December 2019 1,206,519 3,057,512 166,591 98,774 93,010 4,622,406 Depreciation and impairment at (478,051) (1,476,982) (69,085) (65,580) 176 (2,089,522) Less: assets held for sale (71,462) (222,089) (57,526) (19,641) (896) (371,614) 31 December 2020 Cost at 31 December 2019 1,135,058 2,835,423 109,065 79,133 92,114 4,250,793 Depreciation and impairment assets (245) (67,438) (109) (999) (176) (68,967) Additions 9,681 17,208 1,523 1,068 103,786 133,266 held for sale at 31 December 2020 Disposals (9,428) (7,090) (3,190) (951) 5,353 (15,306) Write–offs – (1,264) (546) (20) – (1,830) Net book value Reclassifications 22,065 37,385 5,342 2,194 (76,199) (9,213) At 31 December 2020 614,021 1,239,471 40,998 12,868 129,836 2,037,194 Exchange adjustment, other(i) (53,113) (90,497) (2,002) (1,625) 4,784 (142,453) At 31 December 2019 738,205 1,525,279 48,011 16,910 92,114 2,420,519 Classified as held for sale (12,191) (74,712) (109) (1,351) (178) (88,541) (i) Includes the impact from hyperinflation adjustment in Angola and Zimbabwe, for a net amount of US$(0.9) million (2019: US$8.7 million). (ii) Cost at 31 December 2020 1,092,072 2,716,453 110,083 78,448 129,660 4,126,716 Certain items included in property and equipment are pledged as collateral for the third–party loans Cost of assets held for sale at 13,049 74,711 109 1,351 178 89,398 31 December 2020 granted to certain of the Group’s affiliates amounting to US$75 million (2019: US$53 million). The Group does not hold any property for investment purposes. (i) includes a total of US$412k related to acquisitions with US$11k under machinery and equipment, US$3k under office equipment and US$398 k under fixed assets in progress Exchange rate adjustments reflect the translation effects from movements in foreign currencies against the US Dollar. Depreciation and impairment At 1 January 2019 (399,159) (1,245,271) (82,967) (65,127) (526) (1,793,050) All property, plant and equipment is valued at historic cost, and no revaluations are made, in line with Depreciation (Note 10.2) (46,548) (210,530) (20,254) (14,002) – (291,334) Group policy. Sale of interest in subsidiary 11,633 36,462 1,214 2,456 – 51,765 Disposals 3,608 4,198 8,660 1,416 – 17,882 Impairment (Note 10.2) (33,996) (75,787) (869) (3,827) – (114,479) Write–offs 791 1,739 77 366 – 2,973 Reclassifications (4,149) 1,488 2,814 (952) – (799) Exchange adjustment, other(i) 49,484 86,905 1,522 3,099 526 141,536

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14. Intangible assets and goodwill

Other Other in US$’000 Goodwill Licences intangibles Total in US$’000 Goodwill Licences intangibles Total Cost or valuation Amortisation and impairment At 1 January 2019 997,354 99,931 420,067 1,517,352 At 1 January 2019 (67,102) (57,045) (120,197) (244,344) Additions – 5,852 2,390 8,242 Amortisation charge for the year (Note 10.2) – (14,752) (18,376) (33,128) Sale of interest in subsidiary (Note 6.6) (9,229) (389) (33,341) (42,959) Impairment (Note 10.2) (542,336) (41) (50) (542,427) Disposals – (387) (2,042) (2,429) Sale of interest in subsidiary (Note 6.6) 9,228 326 21,525 31,079 Exchange adjustment, other(i) (3,108) (628) (24,393) (28,129) Disposals – 386 165 551 Reclassifications – 431 2,950 3,381 Exchange adjustment, other(i) (2,787) 650 4,108 1,971 Total cost or valuation at 31 December 2019 985,017 104,810 365,631 1,455,458 Total amortisation and impairment at 31 December 2019 (602,997) (70,476) (112,825) (786,298) Less: assets held for sale (49,419) (14,181) (46,971) (110,571) Less: assets held for sale – 13,740 33,795 47,535 149 Cost or valuation at 31 December 2019 935,598 90,629 318,660 1,344,887 Amortisation and impairment at 31 December 2019 (602,997) (56,736) (79,030) (738,763) Additions – 8,927 324 9,251 Amortisation charge for the year (Note 10.2) – (12,888) (12,618) (25,506) Sale of interest in subsidiary (409,570) – – (409,570) Impairment (Note 10.2) (5,967) (94) (30,363) (36,424) Disposals – – (34) (34) Sale of interest in subsidiary 409,570 – – 409,570 Write-off – – (349) (349) Disposals – 4 14 18 Reclassifications 4,422 77 963 5,462 Write-off – – 349 349 Exchange adjustment, other(i) (8,531) (591) (7,289) (16,411) Reclassifications (1,993) – 378 (1,615) Less: assets held for sale – (915) (187) (1,102) Exchange adjustment, other(i) 6,690 677 (1,882) 5,485 Cost or valuation at 31 December 2020 521,919 98,127 312,088 932,134 Less: assets held for sale – 886 187 1,073 Amortisation and impairment at 31 December 2020 (194,697) (68,151) (122,965) (385,813)

Net book value: At 31 December 2020 327,222 29,976 189,123 546,321 At 31 December 2019 332,601 33,893 239,630 606,124 (i) Includes the impact from hyperinflation adjustment in Angola and Zimbabwe, for a net amount of US$0.3 million (2019: US$(0.4) million).

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

15. Right-of-use

Equipment Equipment Equipment Equipment Service Storage and and IT Service Storage and and IT in US$’000 Land Buildings stations facilities machinery Vehicles Vessels material Total in US$’000 Land Buildings stations facilities machinery Vehicles Vessels material Total Cost Amortisation and At 31 January 2019 – – – – – – – – – impairment Additions 260,562 260,211 404,341 93,957 21,330 3,497 207,104 156 1,251,158 At 31 January 2019 – – – – – – – – – Decrease (5) (3) (18) – – – – – (26) Amortization (22,607) (25,095) (46,293) (11,071) (1,477) (1,202) (35,964) (71) (143,780) Write-off (370) (611) (981) (9) – (195) – – (2,166) Impairment (1,499) (149) – (235) (411) – – – (2,294) Reclassification 633 – – – – – – – 633 Write-off 371 611 981 8 – 195 – – 2,166 Sale of interest in (3,104) – (68) (541) – – – – (3,713) Sale of interest in 349 – 7 324 – – – – 680 subsidiaries subsidiaries Exchange adjustment, (5,121) 1,255 450 1,788 117 26 – (1) (1,486) Exchange adjustment, 282 (77) 4 (199) (28) (8) – – (26) other other 150 Total cost at 252,595 260,852 403,724 95,195 21,447 3,328 207,104 155 1,244,400 Total amortisation (23,104) (24,710) (45,301) (11,173) (1,916) (1,015) (35,964) (71) (143,254) 31 December 2019 and impairment at Less: assets held (26,467) (222,266 (200,416) (8,949) (58) – – – (458,156) 31 December 2019 for sale ) Less: assets held for sale 1,712 17,086 20,122 340 7 – – – 39,267 Cost at 226,128 38,586 203,308 86,246 21,389 3,328 207,104 155 786,244 Amortisation and (21,392) (7,624) (25,179) (10,833) (1,909) (1,015) (35,964) (71) (103,987) 31 December 2019 impairment at Additions 35,850 14,636 21,886 4,859 2,939 2,069 248 7 82,494 31 December 2019 Decrease (17,902) (1,871) (2,647) (601) (771) (138) – (30) (23,960) Amortization (19,640) (9,706) (25,879) (12,796) (2,102) (1,179) (38,106) (42) (109,450) Reclassification from – 371 – 8,052 – – – – 8,423 Reclassification from – (21) – (435) – – – – (456) assets held for sale assets held for sale Write-off (2,755) (3,108) (641) (916) (216) (602) (169) (62) (8,469) Impairment 179 – (4,463) – 869 – – – (3,415) Reclassification (165) 2,492 (2,326) – – – – – 1 Write-off 2,756 3,108 641 916 216 601 169 63 8,470 Exchange adjustment, (141) 85 (4,609) 1,491 209 (20) – (2) (2,987) Reclassification (60) (462) 515 – – – – – (7) other Exchange adjustment, (515) (231) 228 (929) (121) (13) – – (1,581) Less: assets held for (3,520) (358) (390) (242) – (28) – – (4,538) other sale Less: assets held for sale 617 169 97 53 – 25 – – 961 Cost at 237,495 50,833 214,581 98,889 23,550 4,609 207,183 68 837,208 Amortisation and (38,055) (14,767) (54,040) (24,024) (3,047) (1,581) (73,901) (50) (209,465) 31 December 2020 impairment at 31 December 2020

At 31 December 2020 199,440 36,066 160,541 74,865 20,503 3,028 133,282 18 627,743 At 31 December 2019 204,736 30,962 178,129 75,413 19,480 2,313 171,140 84 682,257

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. Impairment testing of goodwill and intangible assets with indefinite lives the implied yield on the Group’s Senior Notes, and a cost of equity for each country. The most Goodwill acquired through business combinations and intangible assets with indefinite lives have been significant impairment amounts have been take on Ghana (US$90.0 million) and Puerto Rico (US$91.8 allocated to two cash–generating units (CGUs), which are also operating and reportable segments, for million) driven mainly by the increase in the weighted average cost of capital for these two countries. impairment testing as follows: Cash flow projections during the budget period are based on the same expected gross margins and • Midstream CGU. raw materials price inflation throughout the budget period. The cash flows beyond that five–year period • Downstream CGU. have been extrapolated using a steady 2.0% per annum growth rate (2019: 2.0%). The carrying amount of goodwill (other than goodwill relating to discontinued operations) was allocated to CGUs as follows: 16.1 Key assumptions used in value in use calculations Gross profits – Gross profits are based on average values achieved in the three years preceding the in US$’000 2020 2019 start of the budget period, adjusted for any new investments or change in market dynamics. These are Midstream unit 41,005 41,084 volume–driven and are increased over the budget period according to the expected gross domestic Downstream unit(i) 286,217 340,936 product growth and applicable local petroleum regulations of each country where the units operates. 151 Total carrying amount of goodwill 327,222 382,020 Less: discontinued operations – 49,419 Discount rates – Discount rates represent the current market assessment of the risks specific to each Carrying amount of goodwill in continuing operations 327,222 332,601 CGU, regarding the time value of money and individual risks of the underlying assets that have not been (i) During the year, the Group took an impairment of US$5.9 million of goodwill on operations in Ghana and Senegal. (2019: US$542.3million of goodwill mainly on incorporated in the cash flow estimates. The discount rate calculation is based on the specific operations in Australia) circumstances of the Group and its operating segments and derived from its weighted average cost of Midstream CGU: capital. The weighted average cost of capital takes into account both debt and equity. The cost of The Midstream CGU relates to entities with refining and storage facilities. The recoverable amounts of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is the net assets tested under this cash–generating unit have been determined based on a value in use based on its Interest-bearing loans and borrowings that the Group is obliged to service. Segment– calculation which uses cash flow projections based on financial budgets approved by the Board of specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually Directors covering a five–year period, and an average post–tax discount rate of 9.26% per annum (2019: based on management’s knowledge of the particular markets in which it operates. 8.66%). The discount rate is calculated as a weighted average cost of capital, based on the implied yield Petroleum product prices – Forecasted commodity prices are publicly available. on the Group’s Senior Notes, and a cost of equity for each country. Market share assumptions – These assumptions are important because, as well as using industry data Cash flow projections during the budget period are based on the same expected gross margins and for growth rates (as noted below), management assesses how the unit’s position, relative to its raw materials price inflation throughout the budget period. The cash flows beyond that five–year period competitors, might change over the budget period. Management expects the Group’s share of the have been extrapolated using a continuous 1.0% per annum growth rate (2019: 1.0%). petroleum product market to be stable over the budget period. Downstream CGU: Growth rate estimates – Rates are based on management’s estimates. The Downstream CGU pertains to entities that include distribution of refined oil and gas products. The recoverable amount of the net assets tested under this CGU have been determined based on a value in use calculation. This method uses cash flow projections based on financial budgets approved by the Board of Directors covering a five–year period, and an average post–tax discount rate of 8.87% per annum (2019: 8.92%). The discount rate is calculated as a weighted average cost of capital, based on

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17. Inventories 19. Other assets in US$’000 2020 2019 in US$’000 2020 2019 Petroleum inventories at fair value(i) 427,745 468,506 Prepayments, deposits and guarantees(i) 74,824 88,666 Petroleum product inventories at lower of cost and net realisable value, net 425,826 545,246 Other tax receivables(ii) 210,411 236,951 Merchandise inventories, net 7,738 8,423 Other receivables 62,520 117,190 Total inventories, net 861,309 1,022,175 Total other assets 347,755 442,807 (i) As indicated in Note 2.3.l, inventories held for trading purposes are stated at fair value less costs to sell and any changes in net fair value are recognised in profit or Of which due from related parties (Note 28) 14,264 56,534 loss. Certain of the Group’s subsidiaries engage in commodity trading activities for which the exemption stipulated in IAS 2 Inventories for commodity broker–traders applies. Trading activities undertaken include optimisation of the Group’s supply cycle and the supply of petroleum products to business–to–business and wholesale clients. Current 196,895 341,684 Non-current 150,860 101,123 The cost of inventories recognised in cost of sales in 2020 amounted to US$9,445million (2019: 347,755 442,807 US$13,134 million). Out of the total net inventories held US$19.2 million have been pledged at 31 (i) Prepayments, deposits and guarantees mainly include payments made for the purchase of equipment and construction materials, capital expenditure prepayments, December 2020 (2019: US$22.2 million). as well as other guarantees and deposits. 152 (ii) Other tax receivables include non–income tax related items such as VAT and petroleum tax receivables. 18. Other financial assets in US$’000 2020 2019 20. Trade receivables Financial assets carried at fair value through profit or loss(i) 141,025 47,732 Trade and other accounts receivable include the short-term portion of trade accounts receivable and Finance lease receivable(ii) 3,500 2,652 related accounts. Loans to other entities(iii) 49,489 52,658 in US$’000 2019 Financial assets (equity) at fair value through OCI(iv) – 16,287 2020 Other financial assets(v) 1,723 1,713 Trade receivables 521,708 619,724 Of which due from related parties (Note 28) 91,864 149,118 Total other financial assets 195,737 121,042 Of which due from related parties (Note 28) 160,160 34,124 Trade receivables are non–Interest-bearing and are generally on cash to 30 day terms. At year–end

Group days of sales outstanding amounted to 15.4 days (2019: 12.4 days). Current 141,504 31,587 Non-current 54,233 89,455 The impairment recognised represents the difference between the carrying amount of the trade 195,737 121,042 receivables and the present value of the expected proceeds. The Group does not hold any collateral (i) All held for trading derivatives are swaps and commodity futures. Besides trading derivatives the account also includes a bond held in Angola and an equity over these balances. As illustrated below, there were no significant movements in the allowance for instrument in Senegal. impairment of receivables (see credit risk disclosure in Note 30.3 for further guidance). (ii) The Group has a finance lease arrangement for petroleum storage equipment. (iii) The Group makes a limited number of loans to third and related parties. Management believes that none of these loans should be impaired however they are subject to loss provisions in line with IFRS 9. (iv) Includes the investment in APN Retail Property Fund in Australia for December 2019, this was sold in June 2020. (v) Includes the investment in a storage company, and debt securities.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The movement in the allowance for doubtful debts was as follows: At 31 December, the ageing analysis of trade receivables from third parties (net of allowance for doubtful debts) was as follows: in US$’000 2020 2019 Balance at beginning of the year (16,480) (18,864) Neither past Past due but not impaired Impairment losses recognised on receivables(i) (5,902) (2,439) due nor < 90 days 90 -180 days 180 – 360 days >360 days in US$’000 Total impaired Amounts written off during the year as uncollectible 3,343 920 2020 429,844 354,331 55,484 3,394 6,489 10,146 Amounts recovered during the year 1,189 514 2019 470,516 390,236 65,659 14,621 – – Disposal of subsidiary (9) (635) Foreign exchange translation gains and (losses), other – 128 20.1 Receivables sold without recourse Balance at end of the year (17,859) (20,376) At 31 December 2020, trade receivables of US$171.4 million (2019: US$283.7 million), related to the (i) Includes additional provision of US$1.7 million (2019: US$1.1 million) recorded, to reflect expected credit losses, in accordance with IFRS 9. United Kingdom, Australia, Guatemala and our aviation operations had been sold without recourse. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a 153 provision matrix at 31 December, in line with IFRS 9: 21. Cash and cash equivalents in US$’000 2020 2019 Days past due Cash at banks and on hand 292,505 388,108 (i) At 31 December 2020 – in US$’000 Total Current < 90 days 90 -180 days 180 – 360 days >360 days Restricted cash(i) 94,377 5,418 Expected credit loss rate – – – – 35% 70% Short-term deposits 120,310 225,497 Gross carrying amount 360,981 59,576 3,857 6,983 23,847 455,244 Cash and short-term deposits 507,192 619,023 Expected credit loss (19,137) – – – (2,444) (16,693) (i) The increase in restricted cash in 2020 is due to bank-guarantees related to the disposal of the Australian Fuel operations

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are Days past due made for varying periods of between one day and three months, depending on the immediate cash At 31 December 2019 – in US$’000 Current < 90 days 90 -180 days(i) 180 – 360 days >360 days Total requirements of the Group, and earn interest at the respective short-term deposit rates. Expected credit loss rate – – – – 35% 70% Gross carrying amount 485,058 375,615 81,631 6,810 9,887 11,115 22. Capital and reserves Expected credit loss (11,241) – – – (3,460) (7,781) The registered share capital of the group at 31 December 2020 was US$1,657,067 thousand (2019: (i) No provision has been recorded on receivables due between 90 and 180 days. Based on past experience, the Group has grounds to believe that these receivables US$2,060,035 thousand) divided into 94,540,435 issued ordinary shares (2019: 107,198,555 ordinary should not be impaired. shares). Please see Note 4 for changes in registered share capital. Receivables from related parties are neither past due nor impaired and are therefore excluded from the table above.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23. Interest-bearing loans and borrowings Loan maturity schedule 2020 2019 in US$’000 2020 2019 in US$’000 Unsecured – at amortised cost Not later than one year 1,044,766 284,733 Senior notes(i) 1,556,467 1,576,168 Later than one year and not later than five years 1,668,841 1,974,934 Bank overdrafts 87,515 98,783 Later than five years 402,045 750,000 Obligations under finance leases 25 52 Total Interest-bearing loans and borrowings 3,115,652 3,009,667 Accrued interest 29,962 37,324 Unsecured bank loans(ii) 964,135 1,272,949 In addition to the aforementioned debt facilities, the Group entered into a US$1.5 billion loan with Related parties(iv) 419,895 16,155 Trafigura Pte Ltd. This loan was not drawn at 31 December 2020 and 2019, and consists of a US$500 3,057,999 3,001,431 million committed revolving credit facility and a US$1.0 billion uncommitted revolving credit facility. Secured – at amortised cost This loan is not secured and bears interest of 8.0% per annum (2019: 8.0% per annum). The loan will (ii)(iii) mature on September 2023. Secured bank loans 57,653 8,236 154 57,653 8,236 24. Lease liabilities Total Interest-bearing loans and borrowings 3,115,652 3,009,667 in US$’000 2020 2019 Of which due to related parties (Note 28) 419,895 16,630 Lease liabilities – non-current (3rd parties) 451,542 452,532 Lease liabilities – non-current (related parties) 106,449 138,656 Current 1,044,766 284,733 Lease liabilities – current (3rd parties) 57,675 50,578 Non-current 2,070,886 2,724,934 Lease liabilities – current (related parties) 32,208 29,313 3,115,652 3,009,667 Total lease liabilities 647,874 671,079 Of which due to related parties (Note 28) 138,657 167,969 (i) Includes US$600 million of 5.125% Senior Notes maturing in 2024, US$750 million of 5% Senior Notes maturing in 2026, a 2.65% private placement of EUR 200 million, repayable in instalments and maturing in 2024, and a 5.87% private placement of US$100 million, maturing in 2023. (ii) Secured and unsecured bank loans consist of fixed and floating rate loans, for which the weighted average effective interest rate (including arrangement fees) was 5.1% for the year ended 31 December 2020 and 6.7% for the year ended 31 December 2019. The Group economically hedges a portion of the loans for interest rate Current 89,883 79,890 risk via an interest rate swap, exchanging variable rate interest for fixed rate interest. The fair value of Interest-bearing loans and borrowings for disclosure purposes is Non-current 557,991 591,189 based on quoted prices in an active market for similar liabilities. These financial instruments are fair valued, based on Level 2 measurement. 647,874 671,079 (iii) Bank loans are secured by mortgages over certain of the Group’s assets (mainly inventories, qualifying receivables, shares of certain subsidiaries and other long-term assets). The total value of the pledged assets at 31 December 2020 was US$104.3 million (2019: US$156.3 million). Lease liability maturity (iv) In June 2020 the Group entered into a US$390 million subordinated loan agreement maturing in January 2027 with Trafigura PE Holding Limited which was subsequently novated to Trafigura Pte Ltd. The loan bears an interest of 5.45% per annum and was used entirely to re-purchased ordinary shares held by Trafigura Within one year 89,883 79,890 PE Holding Limited. After one year, but less than 5 years 285,000 311,366 More than 5 years 272,991 279,823 647,874 671,079

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. Provisions 26. Other financial liabilities Provisions for in US$’000 2020 2019 Employee– contingencies Financial liabilities carried at fair value through profit or loss(i) 140,079 57,860 related and Provision for in US$’000 provisions(i) expenses(ii) remediation(iii) Total Vendor loan – third parties 150 352 Other liabilities 7,086 4,176 At 1 January 2020 6,074 35,308 23,090 64,472 Arising during the year 5,024 8,610 691 14,325 Total other financial liabilities 147,315 62,388 Utilised – (6,066) – (6,066) Of which due to related parties (Note 28) 139,774 – Unused amounts reversed (201) (4,895) (38) (5,134) Foreign exchange translation gains and losses (52) (736) 785 (3) Current 140,079 57,860 Assets held for sale (384) (1,863) – (2,247) Non-current 7,236 4,528 At 31 December 2020 10,461 30,358 24,528 65,347 147,315 62,388 (i) Derivative positions include commodity futures, commodity swaps and interest rate swaps used to economically hedge certain of the Group’s financial risks. A substantial portion of the derivatives are transacted with Trafigura Pte Ltd and Trafigura Derivatives Ltd. 155 Current 8,175 11,504 248 19,927 Non-current 2,286 18,854 24,280 45,420 27. Trade and other payables 10,461 30,358 24,528 65,347 in US$’000 2020 2019 At 31 December 2019 Trade payables 1,626,444 2,263,859 Current 3,714 17,356 360 21,430 Other payables and accrued liabilities 239,760 208,181 Non-current 2,360 17,952 22,730 43,042 Other liabilities(i) 195,401 147,403 6,074 35,308 23,090 64,472 Total trade and other payables 2,061,605 2,619,443 (i) Employee–related provisions mainly reflect holiday accruals, provision for employee benefits as well as provisions for long service leave mainly in Papua New Guinea, Of which due to related parties (Note 28) 1,320,005 1,615,267 Nicaragua and Australia. (i) Other current liabilities include mainly tax, social security and VAT payables. (ii) Provisions for contingencies and expenses mainly relate to operations in El Salvador, Congo DRC and Papua New Guinea. They also include the claims provisions created in the captive insurance company of the group. (iii) Remediation provisions mainly relate to the UK business acquired in 2015. Terms and conditions of the above liabilities: • Trade payables are generally non–interest–bearing. • Interest payable is normally settled on a monthly basis throughout the financial year.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

28. Related parties disclosures 28.1 Related party transactions Balances and transactions between the Company and its subsidiaries have been eliminated on Group entities entered into the following transactions with related parties that are not members of consolidation and are not disclosed in this note. Details of transactions between the Group and other the Group: related parties are disclosed below. Sales and finance income Purchases, management fees Related parties not part of the Group include the following: related parties and finance cost related parties in US$’000 2020 2019 2020 2019 % equity interest in the Trafigura Group 572,268 777,589 (4,238,667) (6,979,748) Group Sonangol Group 20,768 2,054 (195,509) (370,994) Entity name Country of incorporation 2019 2020 Others 17,145 131,593 (4,615) (9,626) Trafigura PE Holding Limited Malta 49.37% 49.42% Total 610,181 911,236 (4,438,791) (7,360,368) Sonangol Holdings Lda Angola 31.73% 27.99%

TPE Holdings 2 LLC Marshall Islands 6.66% – Amounts owed by Amounts owed to 156 PE Investments Limited Malta 6.65% 5.86% related parties(i) related parties(ii) Cochan Holdings LLC Marshall Islands 5.04% 15.48% in US$’000 2020 2019 2020 2019 Global PE Investors PLC Malta 0.25% 0.22% Trafigura Group 202,159 146,402 (1,957,881) (1,745,668) PE SPV Limited Malta 0.13% 0.45% Sonangol Group 6,952 209 (29,321) (35,462) PE ESP LLC Marshall Islands 0.17% 0.58% Others 57,177 93,165 (31,128) (18,736) Total 266,288 239,776 (2,018,330) (1,799,866) (i) Includes trade and other receivables, loans to related parties and other assets. (ii) Includes trade and other payables, lease liabilities, and loans from related parties. In order to mitigate the impact of COVID-19 related disruptions to demand and the impact of a volatile oil price environment, our two core shareholder suppliers agreed to an interim price adjustment under their supply arrangements. This interim price adjustment resulted in US$82,245 thousand of support which helped us minimise the impact of unfavourable trading conditions in the second quarter of the year.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

28.2 Related party loans 29. Commitments and contingencies The Group has acquired, by virtue of its various acquisitions, certain legacy loans made to employees of Off balance sheet commitments: acquired entities. These loans are, individually and in aggregate, immaterial to the Group. Furthermore, in US$’000 2020 2019 the Group entered into a US$1.5 billion loan with Trafigura Pte Ltd, which was not drawn at 31 Storage and land rental 1,920 1,690 December 2020 and 2019. This loan is not secured, and bears interest of 8.0% per annum (2019: 8.0% Assets under construction 7,422 8,484 per annum) and is meant to support the Group in its investment activities. Supply contract 1,146 429 Other commitments 38,425 81,148 In June 2020 the Group entered into a US$390 million subordinated loan agreement maturing in Total 48,913 91,751 January 2027 with Trafigura PE Holding Limited which was subsequently novated to Trafigura Pte Ltd. The loan bears an interest of 5.45% per annum and was used entirely to re-purchased ordinary shares in US$’000 2020 2019 held by Trafigura PE Holding Limited. Within one year 47,896 90,596 28.3 Key management personnel compensation After one year but not more than five years 187 251 157 Key management personnel compensation amounted to US$16.3 million (including US$1.7 million More than five years 830 904 severance payments) in 2020 (2019: US$11.7 million). Total 48,913 91,751

Contingent liabilities: in US$’000 2020 2019 Letters of credit(i) 560,170 618,074 Guarantees(ii) 21,832 100,748 Legal and other claims(iii) 50,702 53,410 Total 632,704 772,232 (i) The Group utilises standby letters of credit and documentary credits, where appropriate, where certain of the Group suppliers or underwriting banks require such facilities to be put in place. (ii) Guarantees issued by the Group are mostly related to performance bonds for performance on specific contracts. No liability is expected to arise from these guarantees. (iii) Legal and other claims includes existing legal cases for which the Group believes no further charge will arise in the future as the Group believes it has the legal grounds to eventually conclude the cases favourably.

Excluded from the contingent liabilities listed above are those mortgages and assets pledged as collateral on certain financing transactions. These items are disclosed in Note 13.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30. Financial risk management objectives and policies 30.1 Market risk The Group Executive Committee oversees the management of financial risks and reviews and agrees The Group operates in various national markets where petroleum prices are predominantly regulated policies for managing these risks, which are defined in the Group Risk Management Framework. The and, therefore, in many of its markets it has limited market risk in terms of price exposure. Furthermore, Group Risk Management Framework is a comprehensive management tool utilised by the Group where the Group operates in unregulated markets, the Group is typically able to price its products so as Executive Committee to assess potential risks facing the Group. With the support of the Group internal to reflect increases or decreases in market prices on a timely basis and thereby substantially mitigate its audit team, the Group Risk Management Framework provides a context through which the Group is price exposure. Despite the Group selling into markets where price exposure is largely mitigated, the able to continuously monitor external risks. The Group Risk Management Framework is reviewed on a Group does economically hedge its physical supply. The primary purpose of the economic hedging quarterly basis by the Group Executive Committee. activities is to protect the Group against the risk of physical supply transactions being adversely affected by changes in commodity prices. The Group systematically enters into economic hedging The Group is primarily a Midstream and Downstream business with a strong risk management contracts to cover price exposures in its physical supply activities. In particular, substantially all supply philosophy. The Group manages its exposure to key financial risks in accordance with the Group Risk stock is at all times either pre–sold or the commodity index price risk is economically hedged. By virtue Management Framework. The objective of the policy is to support the delivery of the Group’s financial of the nature of the markets in which the Group operates and given the economic hedging conducted 158 targets while protecting future financial security. The main risks that could adversely affect the Group’s in the Group’s supply activities as per the Group Risk Management Framework, the Group faces limited financial assets, liabilities or future cash flows are: market risks, comprising commodity price risk, cash market risk. flow interest rate risk and foreign currency risk; liquidity risk; and credit risk. As a rule, commodity price risk relating to the physical supply activities is systematically economically hedged, with the support of The following table provides an overview of the derivative contracts at the year–end. All commodity Trafigura Pte Ltd and Trafigura Derivatives Ltd. All derivative activities for risk management purposes derivatives had maturities of less than one year at each year–end. are carried out by specialist teams that have the appropriate skills, experience and supervision. Fair value of derivatives It is the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken as all in US$’000 2020 2019 derivative transactions are entered into for the purpose of managing the Group’s physical inventory Commodity futures and swaps (682) (37,372) exposure. At this stage, the Group does not currently apply any form of hedge accounting. Currency swaps (8,102) (2,295) Total (8,784) (39,667) Furthermore, the Group, through the Group Risk Management Framework, has established conservative consolidated risk limits and closely monitors the Group’s risk positions to ensure that the Currency risk Group’s risk exposure remains well within these limits. The Group has exposures to foreign currency risk on its activities, and movements in currency exchange rates may have a material negative effect on our financial condition and result of operations. The Group reduces its exposure to changes in foreign currency exchange rates by borrowing in local currencies and entering into currency hedges. The Group does not use financial instruments to hedge the translation risk related to equity and earnings of foreign subsidiaries and non–consolidated companies. Refer to the consolidated statement of changes in equity to see the impact of changes in foreign currencies on the Group’s equity.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Interest rate risk US$524 million (2019: US$1,089 million) of undrawn fair value borrowing facilities. In addition, the Group Interest rate risk of the Group is mainly applicable on the long-term funding of the Group. Please refer had US$500 million of undrawn committed shareholder loans. to the comments below for further details on the Group’s funding. The Group has entered into certain 34% of the Group’s debt will mature in less than one year at 31 December 2020 (2019: 9%) based on the interest rate swap transactions in order to limit its exposure to floating interest rates. balances reflected in the consolidated financial statements. The maturity profile of the Group’s debt is Effect on profit before summarised in Note 23 and below. The Group liquidity risk is further mitigated as a large part of the tax for the year ended borrowing activities of the Group are related to the financing of petroleum stocks and by their nature, in US$’000 2019 2020 these stocks are easily convertible into cash. The table below summarises the maturity profile of the + 1.0 percentage point (5,533) (6,626) Group’s financial liabilities based on non–discounted contractual payments: – 1.0 percentage point 5,533 6,626 Less than in US$’000 1 year 1–5 years 5+ years Total The carrying amount of all financial assets and liabilities except for Interest-bearing loans and At 31 December 2020: 159 borrowings approximated the estimated fair value, due to the short-term nature of the financial Interest-bearing loans and borrowings(i) 1,122,376 1,926,366 529,575 3,578,317 instruments. The following table summarises the fair value of Interest-bearing loans and borrowings: Lease liabilities 89,883 285,000 272,991 647,874 Trade and other payables 2,061,605 – – 2,061,605 Carrying amount Fair value Financial derivatives 140,079 – – 140,079 in US$’000 2020 2019 2020 2019 Other financial liabilities – 7,236 – 7,236 Interest-bearing loans and borrowings(i) 3,115,652 3,009,667 2,629,116 2,484,346 Total 3,413,943 2,218,602 802,566 6,435,111 Total 3,115,652 3,009,667 2,629,116 2,484,346

(i) For the purpose of the above disclosure, fixed rate Interest-bearing loans and borrowing have been discounted using the actual cost of debt of the Group. The fair value of Interest-bearing loans and borrowings for disclosure purposes is based on quoted prices in an active market for identical liabilities. These financial At 31 December 2019: instruments are based on a Level 2 fair value measurement (refer to Note 30.7). Interest-bearing loans and borrowings(i) 415,659 2,325,534 768,750 3,509,943 30.2 Liquidity risk Trade and other payables 2,619,443 – – 2,619,443 The Group, by virtue of the nature of its operations, has demonstrated a consistent ability to generate Financial derivatives 57,860 – – 57,860 cash through its ongoing daily operations. The Group generates stable cash flows as the Group’s assets Other financial liabilities – 4,528 – 4,528 are utilised to deliver an essential product to customers in specific, national markets and the Group is Total 3,092,962 2,330,062 768,750 6,191,774 therefore not entirely exposed to international commodity market movements. At the same time, the (i) includes also interest cash flows

Group has the flexibility to decide whether to invest or not in capital expenditures as its ability to generate cash flows is not bound, in the short term, by significant capital commitments or significant mandatory capital asset maintenance. Furthermore, the Group monitors its risk to a shortage of funds by monitoring the maturity dates of existing debt. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank loans. At 31 December 2020, the Group had

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30.3 Credit risk The Group, when chartering vessels, applies a strict vessel vetting procedure that complements The Group has a formalised credit process, with credit officers in the key locations around the world. insurance requirements and focuses on the vessel age, classification, protection, indemnity and Strict credit limits are established for each counterparty on the basis of detailed financial and business pollution insurance cover. Similar vetting procedures are also applied for both rail, car and truck analyses. These limits are constantly monitored and revised in light of counterparty or market movements. The Group also has a storage procedure which involves full due diligence being developments and the amount of exposure relative to the size of the Group’s consolidated statement of undertaken of every proposed storage location – including a site visit to the storage location, the tank financial position. The Group conducts transactions with the following major types of counterparties: or warehouse. Regular stock analysis is undertaken to avoid losses such as theft and contamination, and • Physical commodity counterparties spread across the vertical chains for oil (e.g. resellers and end– each approved location is checked annually to evaluate the ongoing situation. users). Sales to counterparties are made on open terms up to internally approved credit limits. Exposures above such limits are subject to independent payment guarantees. By virtue of the Group’s relationship with its significant shareholder, Trafigura PE Holding Limited, the • Payment guarantee counterparties (e.g. prime financial institutions from which the Group obtains Group does have a risk of supplier concentration as the Trafigura group of companies accounts for payment guarantees). around 49% (2019: 53%) of all purchases made by the Group. The Group is present in different geographic regions. Wherever appropriate, guarantees, insurance and 30.5 Capital management 160 letters of credit are used to reduce payment or performance risk. The Group’s maximum exposure to The primary objective of the Group’s capital management is to ensure that it maintains a strong capital credit risk is equivalent to the amounts of financial assets presented in the consolidated statement of structure and healthy capital ratios in order to support its business and maximise shareholder value. financial position. The Group has no significant concentrations of credit risk and no single customer The Group manages its capital structure and makes adjustments to it in light of changes in economic accounts for more than 3% of the Group’s sales volumes. In addition, a significant part of the activity of conditions in order to ensure a sound capital structure. the Group’s Downstream business (mainly retail sites) is on a cash or prepayment basis.

Refer to Note 20 for an ageing analysis of trade receivables. 30.4 Operational risk The operations department has representatives in key locations around the world and is responsible for a number of tasks including contract insurance and logistics management. The operations department is also responsible for ensuring that industry, environmental safety, and internal policies and procedures are complied with at all times. Detailed procedures manuals are implemented throughout the Group and all operations personnel receive regular and adequate training covering the relevant subjects according to their specific functions within the operating activities of the Group. This ensures that operations staff are kept up to date with all applicable procedural, legal, regulatory and industry changes.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30.6 Changes in liabilities arising from financing activities All financial assets and liabilities, and inventories measured at fair value, at 31 December 2020 and 2019, Financial Lease Finance Vendor fall under the Level 2 category described above, and include financial derivatives for a net amount of (i) in US$’000 debt liabilities leases loans Dividends Total US$(8.8) million (2019: US$(39.7) million) and inventories for US$427.7 million (2019: US$468.5 million). At 1 January 2019 3,284,857 478 30,469 – 3,315,804 There have been no transfers between fair value levels during any of the reporting periods. Cash flows (500,726) (329) (29,281) (5,998) (536,334) Non-cash movement (558) – – – (558) 31. Events after the reporting period Acquisitions/Disposals (1,035) – – – (1,035) PE ESP share repurchase Interest expense 237,749 – – – 237,749 On 14 January 2021, the Company repurchased 162,218 ordinary shares held by PE ESP LLC for a Dividends declared during the year – – – 5,998 5,998 consideration of USD 4,682,165. All repurchased shares were immediately cancelled. PE ESP LLC no New leases – 3 – – 3 longer holds any shares of the Company. FX movements (10,551) (11) (836) – (11,398) Myanmar minority repurchase Reclassification – (89) – (89) On 5 February 2021, Puma Energy Irrawaddy Pte Ltd purchased the 20% minority share in Puma Less: discontinued operations (69) – – – (69) 161 Energy Asia Sun Co Ltd from Asia Sun Energy Co Ltd. There was now change of control and from the At 31 December 2019 3,009,667 671,080 52 352 – 3,681,151 Cash flows (475,193) (132,234) (13) (202) (21,003) (628,645) buyback Puma Energy Irrawaddy Pte Ltd owns 100% of the Puma Energy Asia Sun Co Ltd. Interest expense 198,422 198,422 Myanmar operations Shareholder loan 390,000 390,000 On 1 February 2021, a military coup occurred in the Union of the Republic of Myanmar, due to the Dividends declared during the year 21,003 21,003 evolution of the situation, it was decided on 10 February 2021 to suspend operations to protect the New leases/increase 181,900 2 181,902 safety and security of employees and partners with immediate effect until a time that it is safe for our Lease reassament (70,851) – – – (70,851) staff to resume operations. Our shareholders and partners have been informed. We will continue to FX movements 13,744 1,806 (16) 15,534 closely monitor and assess the situation. The financial impact of this event cannot be estimated at this Less: debt associated to assets held for sale (20,988) (3,827) (24,815) point in time. At 31 December 2020 3,115,652 647,874 25 150 – 3,763,701 (i) For the purpose of the above disclosure, current and non-current Interest-bearing loans and borrowings have been grouped together. Rights issue At 31 December 2020 the balance sheet of the group discloses also US$647.9 million of lease liabilities (2019: US$671.1 million). The Company shareholders have been in active dialogue with the Puma Energy Board regarding 30.7 Fair value hierarchy various options to strengthen the Company’s capital structure. In that context, an Extraordinary General The Group uses the following hierarchy for determining and disclosing the fair value of financial Meeting held on Thursday 18 February 2021 gave authority to the Company’s Directors to issue new instruments, which are measured at fair value by valuation technique: shares in the Company, and the Company envisages a rights issue of up to US$1.1bn to conclude by • Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. mid-April 2021. Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair • value are observable, either directly or indirectly. • Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

32. Significant consolidated subsidiaries and participating interests The consolidated financial statements for the year ended 31 December 2020 include the Company’s financial statements and those of the following operating entities listed in the table below:

Proportion of ownership Proportion of ownership interest held by the Group interest held by the Group at 31 December for the at 31 December for the year ended year ended Place of Place of Name of subsidiary incorporation 2020 2019 Legal relationship Name of subsidiary incorporation 2020 2019 Legal relationship Puma Energy Holdings Pte Ltd Singapore 100% 100% Parent company PE Petroleum Cote d’Ivoire SA Ivory Coast 56% 56% Subsidiary Puma Energy Pakistan (Private) Ltd PE Swaziland (Pty) Ltd Swaziland 100% 100% Subsidiary (Admore) Pakistan 51% 51% Subsidiary PE Tanzania Services Assets Ltd Tanzania 100% 100% Subsidiary Alexela Slovag AS Norway 95% 95% Subsidiary Pervyi Murmanskiy Terminal(i) Russia 47% 47% Subsidiary Angobetumes Lda Angola 100% 100% Subsidiary Petrobeira Lda(ii) Mozambique 49% 49% Subsidiary 162 AS Alexela Logistics Estonia 95% 95% Subsidiary Puma El Salvador SA de CV El Salvador 100% 100% Subsidiary AS Alexela Sillamäe Estonia – 95% Subsidiary Puma Energia España SLU Spain 100% 100% Subsidiary AS Alexela Terminal Estonia – 95% Subsidiary Puma Energy (Australia) Bitumen Puma Aviation Europe OU Estonia 100% 95% Subsidiary Pty Ltd Australia 100% 100% Subsidiary Bitumen Storage Services (WA) Puma Energy (Australia) Kwinana Pty Ltd (Australia) Australia 50% 50% Equity investment Pty Ltd Australia 100% 100% Subsidiary Comercial el Hogar SA Honduras 100% 100% Subsidiary Puma Energy (Aviation) SA Switzerland 100% 100% Subsidiary DP Drakensberg Properties Pty Ltd South Africa 100% 100% Subsidiary Puma Energy (Malaysia) Sdn Bhd Malaysia 100% 100% Subsidiary Drakensberg Oil Pty Ltd South Africa 100% 100% Subsidiary Puma Energy (Moçambique) Lda Mozambique 100% 100% Subsidiary United Arab Puma Energy (Namibia) (Pty) Ltd Namibia 100% 100% Subsidiary Emoil Petroleum Storage FZCO Emirates – 20% Equity investment Puma Energy (Singapore) Pte Ltd Singapore 100% 100% Subsidiary Empresa Cubana de Gas Cuba 50% 50% Equity investment Puma Energy Procesing Services LLP India 100% 100% Subsidiary Gulf Refining Company NV Curaçao 64% 64% Subsidiary Puma Energy (UK) Ltd United Kingdom 100% 100% Subsidiary High Heat Tankers Pte Ltd Singapore 50% 50% Equity investment Puma Energy Asia Sun Co Limited Myanmar 80% 80% Subsidiary Hull Ocean Going Barges UK Ltd United Kingdom 100% 100% Subsidiary Puma Energy Bahamas SA Bahamas 100% 100% Subsidiary Kpone Marine Services Ltd Ghana 100% 100% Subsidiary Puma Energy Belfast Ltd United Kingdom 50% 50% Equity investment Federal Territory Puma Energy Benin SA Benin 100% 100% Subsidiary Mazen Global Insurance Ltd of Labuan 100% 100% Subsidiary Puma Energy Bitumen (Vietnam) Ltd Vietnam 80% 80% Subsidiary National Energy Puma Aviation Services Puma Energy Bitumen Supply SA Panama 100% 100% Subsidiary (i) Co Ltd Myanmar 34% 34% Subsidiary Oil Malal SA Chile – 33% Equity investment

PC Puerto Rico LLC Puerto Rico 100% 100% Subsidiary PE Bitumen Resources Nigeria Ltd Nigeria 60% 60% Subsidiary

PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

32. Significant consolidated subsidiaries and participating interests continued Proportion of ownership Proportion of ownership interest held by the Group interest held by the Group at 31 December for the at 31 December for the year ended year ended Place of Place of Name of subsidiary incorporation 2020 2019 Legal relationship Name of subsidiary incorporation 2020 2019 Legal relationship Puma Energy Botswana (Pty) Ltd Botswana 80% 80% Subsidiary Puma Energy South Africa (Pty) Ltd South Africa 100% 100% Subsidiary Puma Energy Caribe LLC Puerto Rico 100% 100% Subsidiary Puma Energy Supply & Trading Pte Ltd Singapore 100% 100% Subsidiary Puma Energy Colombia Combustibles Colombia 100% 100% Subsidiary Puma Energy Tanzania Ltd(ii) Tanzania 50% 50% Subsidiary SAS Puma Energy Zambia PLC Zambia 75% 75% Subsidiary Puma Energy Colombia Holdings AG Switzerland 100% 100% Subsidiary Puma International Congo SA Congo 100% 100% Subsidiary Puma Energy Cote d’Ivoire SA Ivory Coast 75% 75% Subsidiary Puma International Financing SA Luxembourg 100% 100% Subsidiary 163 Puma Energy Distribution Benin SA Benin 100% 100% Subsidiary Puma Overseas Projects Pte Ltd Singapore 100% 100% Subsidiary Puma Energy Distribution Côte d’Ivoire Ivory Coast 70% 70% Subsidiary Pumangol Bunkering Lda Angola 100% 100% Subsidiary Sarl Pumangol Industrial Lda Angola 100% 100% Subsidiary Puma Energy Guatemala SA Guatemala 100% 100% Subsidiary Pumangol Lda Angola 100% 100% Subsidiary Puma Energy Honduras SA de CV Honduras 100% 100% Subsidiary RAM Petroleum (Pvt) Ltd Zimbabwe 48% 48% Equity investment Puma Energy International BV, Netherlands 100% 100% Branch Redan Petroleum (Pvt) Ltd Zimbabwe 60% 60% Subsidiary Geneva Branch Refineria Petrolera de Acajutla SA de CV El Salvador 100% 100% Subsidiary Puma Energy International SA Switzerland 100% 100% Subsidiary Rutile Investments Ltd Mauritius 100% 100% Subsidiary Puma Energy Irrawaddy Pte Ltd Singapore 100% 100% Subsidiary Sakunda Petroleum (Pvt) Ltd Zimbabwe 49% 49% Equity investment Puma Energy Johannesburg Supply SA Panama 100% 100% Subsidiary Tema Offshore Mooring Ltd Ghana 100% 100% Subsidiary Puma Energy LS (Pty) Ltd Lesotho 100% 100% Subsidiary Total Lesotho (Pty) Ltd (Lesotho) Lesotho 100% 100% Subsidiary Puma Energy Ltd (FZE) Nigeria 100% 100% Subsidiary Tropifuels SA Panama 100% 100% Subsidiary Puma Energy Luxembourg Sàrl Luxembourg 100% 100% Subsidiary UBI Group Ltd(ii) Ghana 49% 49% Subsidiary (ii) Puma Energy (Malawi) Ltd Malawi 50% 50% Subsidiary Presented below are explanations for those entities that are consolidated despite the Group having less than 50% interest in those entities: Puma Energy PNG Ltd Papua New 100% 100% Subsidiary (i) The Group retains effective control over these entities, despite the fact that it does not hold clear majority of the shares, by virtue of the fact the Group is exposed to, Guinea or has rights to, variable returns from its involvement with the entities and has the ability to affect those returns through its power over the entities. (ii) Management believes that the Group retains effective control over this entity as a result of there being both a shareholder and an investment agreement stipulating Puma Energy PNG Refining Ltd Papua New 100% 100% Subsidiary that the Group has 100% economic control over the entity. Guinea Puma Energy PNG Supply Ltd Cayman Islands 100% 100% Subsidiary The Group does not have any non-controlling interests exceeding 5% of the Group’s long-term assets Puma Energy Senegal SA Senegal 80% 80% Subsidiary or 20% of the Group’s operating profit. Puma Energy Services (Singapore) Singapore 100% 100% Subsidiary Pte Ltd Puma Energy Services South Africa South Africa 100% 100% Subsidiary (Pty) Ltd

PUMA ENERGY ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT Report of the independent Opinion We believe that the audit evidence we have US$2,037m, intangible assets amounting to We have audited the consolidated financial obtained is sufficient and appropriate to provide US$219m and goodwill amounting to US$327m. auditor with consolidated statements of Puma Energy Holdings Pte Ltd a basis for our opinion. The assessment of the recoverable value of these and its subsidiaries (the ‘Group’), which comprise assets for property and equipment and financial statements Key audit matters the consolidated statement of financial position intangible assets, or of the relevant cash- Key audit matters are those matters that, in our at 31 December 2020 of at 31 December 2020 and the consolidated generating unit for goodwill, incorporates professional judgment, were of most significance statement of income, the consolidated statement significant judgement in respect of factors such Puma Energy Holdings Pte Ltd in our audit of the consolidated financial of comprehensive income, the consolidated as gross profits, discount rates, petroleum statements of the current period. These matters statement of changes in equity, and the product prices, market shares and growth rates 4 March 2021 were addressed in the context of our audit of the consolidated statement of cash flows for the which are affected by expected future market or consolidated financial statements as a whole, year then ended, and notes to the consolidated economic conditions in many different countries. and in forming our opinion thereon, and we do financial statements, including a summary of not provide a separate opinion on these matters. The Group’s disclosures about property and 164 significant accounting policies. For each matter below, our description of how equipment, intangible assets and goodwill, are In our opinion the accompanying consolidated our audit addressed the matter is provided in included in Notes 13, 14 and 16 of the financial statements give a true and fair view of that context. consolidated financial statements. the consolidated financial position of the Group We have fulfilled the responsibilities described in Our audit response at 31 December 2020, and its consolidated the Auditor’s responsibilities for the audit of the We performed the following procedures: financial performance and its cash flows for the consolidated financial statements section of our year then ended in accordance with International • We reviewed the Group’s calculation of value report, including in relation to these matters. Financial Reporting Standards (‘IFRS’). in use or fair value less costs of disposal. Accordingly, our audit included the performance • We involved our valuation specialists to Basis for opinion of procedures designed to respond to our evaluate methodologies and key assumptions, We conducted our audit in accordance with assessment of the risks of material misstatement such as cash flow forecasts included in the International Standards on Auditing (‘ISA’). Our of the consolidated financial statements. impairment assessment for each cash responsibilities under those provisions and The results of our audit procedures, including generating unit or asset tested on a stand-alone standards are further described in the Auditor’s the procedures performed to address the basis, and discount rate assumptions. responsibilities for the audit of the consolidated matters below, provide the basis for our audit financial statements section of our report. opinion on the accompanying consolidated • We assessed whether the Group’s disclosures financial statements. about the sensitivity of the outcome of the We are independent of the Group in accordance impairment assessment to changes in key with the International Ethics Standards Board for Valuation of property and equipment, assumptions reflected the risks inherent in Accountants’ Code of Ethics for Professional intangible assets and goodwill the valuation. Accountants (‘IESBA Code’) and we have fulfilled Risk our ethical responsibilities in accordance with At 31 December 2020, the Group’s balance sheet Our audit procedures did not lead to any material the IESBA Code. includes property and equipment amounting to reservations regarding the impairment testing.

PUMA ENERGY ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

Recoverability of deferred tax assets with these exposures along with claims or statements, management expects that the Other information in the annual report Risk assessments made by tax authorities to date. shareholders will contribute up to US$ 1,100 Management is responsible for the other At 31 December 2020, the Group had deferred • We analysed the tax risk provision and the million towards the share capital increase and information in the annual report. The other tax assets on deductible temporary differences related business tax risks. that the revolving credit facility will be renewed. information comprises all information included in of US$72 million (2019: US$98 million), which the annual report, but does not include the • We reviewed documentation of tax audits and Our audit response were recognized and relate to tax losses carried consolidated financial statements and our considered whether exposures raised by the We performed the following procedures: forward. In addition, the Group had unrecognised auditor’s reports thereon. Our opinion on the tax authorities have been considered. tax loss carry forwards amounting to US$ 544 • We obtained evidence supporting the capital consolidated financial statements does not cover million excluding the impact of Australia • We analysed these with involvement of increase approved by the Shareholders on the other information in the annual report and discontinued operations (2019: US$517 million). our internal tax experts, and assessed the 18 February and due in April 2021, including we do not express any form of assurance The analysis of the recognition and recoverability tax risk provision. documents indicating the willingness of conclusion thereon. of the deferred tax assets was significant to our • We tested the calculation of deferred tax assets the majority of the current shareholders In connection with our audit of the consolidated 165 audit because the amounts are material, the and liabilities and analysed the management to subscribe and/or underwrite this financial statements, our responsibility is to read assessment process is complex and judgemental estimates relating to the recoverability of capital increase the other information in the annual report and, in and is based on assumptions that are affected by deferred tax assets. • We enquired of management and obtained doing so, consider whether the other information expected future market or economic conditions. evidence and written representation as to the • We analysed the offsetting and presentation of is materially inconsistent with the consolidated status of the renegotiations and likelihood of The Group’s disclosures about deferred tax deferred tax positions. financial statements or our knowledge obtained the extension of the revolving credit facility. assets are included in Note 11 of the consolidated Our audit procedures did not lead to any in the audit, or otherwise appears to be • We reviewed the Group’s cash flow forecasts financial statements. material reservations regarding the recoverability materially misstated. If, based on the work we through to March 2022, including the have performed, we conclude that there is a Our audit response of deferred tax assets. above items material misstatement of this other information, We performed the following procedures: Cash Flow forecast • We evaluated the assumption applied by we are required to report that fact. We have • We evaluated the Group’s process for the Risk management for preparing its liquidity forecast. nothing to report in this regard. identification and evaluation of uncertain tax The Group has prepared its cash flow forecasts We did this evaluation with reference to Responsibility of management for the positions and other tax risks as well as for considering various assumptions. These budgets and the underlying substantiations. the assessment of the recoverability of assumptions were made taking into consolidated financial statements • We assessed the adequacy of the disclosures deferred tax assets. consideration the ongoing discussions with the Management is responsible for the preparation related to the going concern assumption in the of the consolidated financial statements that • We also considered the Group’s process for the Group’s shareholders to contribute towards the notes to the financial statements. give a true and fair view in accordance with IFRS, recording and continuous re-assessment of the share capital increase to be paid in April 2021 as and for such internal control as management related (contingent) liabilities and provisions as approved by the shareholders meeting of 18 Our audit procedures did not lead to any determines is necessary to enable the well as deferred taxes. February 2021; and the current negotiations with material reservations regarding cash flow the Group’s major lending banks to extend the forecast and related disclosures. preparation of consolidated financial statements • We reviewed tax exposures estimated by existing credit lines due to expire in May 2021. that are free from material misstatement, management and the risk analysis associated As disclosed in note 2.2 to these financial whether due to fraud or error.

PUMA ENERGY ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

In preparing the consolidated financial design and perform audit procedures auditor’s report. However, future events or From the matters communicated with statements, management is responsible for responsive to those risks, and obtain audit conditions may cause the Group to cease to management, we determine those matters that assessing the Group’s ability to continue as a evidence that is sufficient and appropriate to continue as a going concern. were of most significance in the audit of the going concern, disclosing, as applicable, matters provide a basis for our opinion. The risk of not • Evaluate the overall presentation, structure financial statements of the current period and related to going concern and using the going detecting a material misstatement resulting and content of the consolidated financial are therefore the key audit matters. We describe concern basis of accounting unless management from fraud is higher than for one resulting from statements, including the disclosures, and these matters in our auditor’s report unless law either intends to liquidate the Group or to cease error, as fraud may involve collusion, forgery, whether the consolidated financial statements or regulation precludes public disclosure about operations, or has no realistic alternative but to intentional omissions, misrepresentations, or represent the underlying transactions and the matter or when, in extremely rare do so. Management is responsible for overseeing the override of internal control. events in a manner that achieves fair circumstances, we determine that a matter the Group’s financial reporting process. • Obtain an understanding of internal control presentation. should not be communicated in our report because the adverse consequences of doing so Auditor’s responsibilities for the audit of relevant to the audit in order to design audit • Obtain sufficient appropriate audit evidence would reasonably be expected to outweigh the the consolidated financial statements procedures that are appropriate in the regarding the financial information of the 166 public interest benefits of such communication. Our objectives are to obtain reasonable circumstances, but not for the purpose of entities or business activities within the Group assurance about whether the consolidated expressing an opinion on the effectiveness to express an opinion on the consolidated Ernst & Young Ltd financial statements as a whole are free from of the Group’s internal control. financial statements. We are responsible for the material misstatement, whether due to fraud or • Evaluate the appropriateness of accounting direction, supervision and performance of the error, and to issue an auditor’s report that policies used and the reasonableness of Group audit. We remain solely responsible for includes our opinion. Reasonable assurance is a accounting estimates and related disclosures our audit opinion. Mark Hawkins, high level of assurance, but is not a guarantee made by management We communicate with management regarding, Swiss licensed audit expert that an audit conducted in accordance with ISA • Conclude on the appropriateness of among other matters, the planned scope and (Auditor in charge) will always detect a material misstatement when management’s use of the going concern basis timing of the audit and significant audit findings, it exists. Misstatements can arise from fraud or of accounting and, based on the audit evidence including any significant deficiencies in internal error and are considered material if, individually obtained, whether a material uncertainty exists control that we identify during our audit. or in the aggregate, they could reasonably be related to events or conditions that may cast Didier Lequin, expected to influence the economic decisions of significant doubt on the Group’s ability to We also provide management with a statement Swiss licensed audit expert users taken on the basis of these consolidated continue as a going concern. If we conclude that we have complied with relevant ethical financial statements. As part of an audit in that a material uncertainty exists, we are requirements regarding independence, and to accordance with ISA, we exercise professional required to draw attention in our auditor’s communicate with them all relationships and judgment and maintain professional scepticism report to the related disclosures in the other matters that may reasonably be thought throughout the audit. We also: consolidated financial statements or, if such to bear on our independence, and where • Identify and assess the risks of material disclosures are inadequate, to modify our applicable, related safeguards. misstatement of the consolidated financial opinion. Our conclusions are based on the statements, whether due to fraud or error, audit evidence obtained up to the date of our

PUMA ENERGY ANNUAL REPORT 2020 ANNUAL REPORT 2020

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