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