In a year marked by an unprecedented health crisis and high volatility in the price of petroleum products, in 2020 the Rubis Group demonstrated the formidable resilience of its economic and social model thanks to its entrepreneurial culture. Despite widespread uncertainty and constrained mobility, the Group has full confidence in its business model, continuing to invest to strengthen its market positions and ensure its long-term growth.

On the health front, the Group’s responsiveness demonstrated its effectiveness, and made it possible to protect the well-being of its employees without resorting to furlough schemes or government aid, across all of its subsidiaries.

From an economic perspective, the resilience of the business was remarkable, limiting the declines in EBIT and net income, Group share to 11% and 9% respectively.

Other than this economic, operational and social performance, 2020 was marked by major new developments aimed at ensuring the Group’s long-term viability:

The next few years promise to be particularly exciting for Rubis, with many opportunities in both our existing businesses and in branches of the emerging low- or no-carbon energy sector, whose development is vital for the preservation of our planet.

We are entering this period with two major strengths: on the one hand, our legacy business lines, which are profitable and generate robust cash flows, and on the other hand, an exceptional and totally debt-free financial position.

“A new balance needs to be struck; this will involve adding new, less carbon-intense activities, without hindering the development of our existing businesses, as a means of guaranteeing our sound health during the ecological transition.

We firmly believe that the products we currently distribute, and biofuels when they become widely available, will remain essential over the long term in the regions where we operate: the Caribbean, Africa, and even Europe with the predominance of liquefied gas (LPG/LNG) in this region.

That said, it is vital that we conduct our existing businesses with an awareness of our carbon footprint in order to manage and reduce it.

We are therefore maintaining our mobilization and initiatives in order to make progress on our Climate approach, as reflected in the following measures:

The Group is determined to make rapid progress and take a structured and measurable approach.

In the same spirit, we will seek to complement our traditional investments with low- or no-carbon activities. This is a new field of opportunities that is opening up.

Our investment projects dedicated to less carbon-intense activities will build on our Group’s existing strengths. They will have to be in the energy sector, located in countries where our operations are assets, be based on stabilized technologies and be profitable. A new balance needs to be struck; this will involve adding new, less carbon-intense activities, without hindering the development of our existing businesses, as a means of guaranteeing our sound health during the ecological transition.

While many uncertainties remain regarding the end of the pandemic, we are confident in the Group’s strategy, confident in the commitment of our employees and their remarkable professional qualities, and confident in the support and loyalty of our long-term shareholders.

Gilles Gobin and Jacques Riou

Managing Partners

Rubis, a company listed on Euronext Paris with market capitalization of nearly €4 billion at the end of 2020 (SBF 120), specializes in the distribution of energy and bitumen, from supply to the end customer, and, through its Rubis Terminal JV, in bulk liquid storage.

With revenue of €3.9 billion and distributed volumes of 5.1 million m³, the Group is recognized in the market for its expertise and the quality of its services. Thanks to its international development strategy, Rubis now occupies strong market positions in diversified products and segments in 41 countries in three regions: Africa, the Caribbean and Europe.

“With operations in 41 countries spanning three continents, Rubis distributes energy for everyday life.

DISTRIBUTING ENERGY FOR EVERYDAY LIFE

Through its business lines, by offering its customers regular and reliable access to everyday energy, thereby limiting its exposure to economic cycles and ensuring resilience and stability for its activities, Rubis meets basic needs:

For its retail & marketing and support & services activities, Rubis Énergie has 1.4 million m³ of storage capacity for fuels, liquefied gases and bitumen, owned directly or in partnership. The Rubis Terminal JV for its part has 4.6 million m³ of fully owned storage capacity, which it leases to its customers.

SAFETY AS A PRIORITY

The Group operates within a defined Quality, Health, Safety & Environment (QHSE) framework to prevent risks and limit the environmental impact of its activity. Its business lines are subject to regulatory and safety constraints requiring constant investments, making supply scarce while increasing the cost of entering the sector. As such, in 2020 the Group invested €131 million in the safety/maintenance and adaptation of its facilities.

Rubis Énergie’s retail & marketing business accounted for 85% of the Group’s 2020 sales revenue, and mostly targets individual customers (B2C) via a network of gas stations and direct sales.

The table below shows the breakdown of sales revenue by market segment.

In addition to individual customers, the Group supplies a wide range of commercial customers with fuels, lubricants, liquefied gases, bitumen and other by-products, mainly in the transportation, infrastructure, hotel, aviation, marine and public works sectors.

These products are essential for the economies of the countries where the Group operates, and Rubis generally controls the entire logistics chain. Indeed, through Rubis Énergie’s support & services business, which houses supply and transportation activities, Rubis favors dominant local positioning in which its competitive advantage is protected by control of logistics. This strategic choice guarantees its customers sustainable access to the energy they need on a daily basis.

POSITIONING

Oil trading and downstream activities remain largely dominated by the major oil companies (Shell, BP, Exxon, and Total) and traders (Vitol, Trafigura, Glencore, Mercuria). Nevertheless, these global players tend to focus on large markets, in order to benefit from economies of scale, and to forgo smaller markets. It is precisely in these latter markets that Rubis has chosen to develop, markets in which it can occupy leading positions while competing with major oil companies, regional operators (Parkland/Sol, Vivo Energy, Repsol) and local independent players (particularly in Africa).

Rubis has been built on an acquisition model, with niche product positions (liquefied gases in Europe, bitumen in West Africa) or geographical niches (island positions in the Caribbean or the Indian Ocean) where the Group has strong positions. Rubis’ success in these markets is ensured by a number of factors, including its leading position (No. 1 or 2 in many countries) combined with its control of import logistics facilities, to guarantee advantages in terms of costs and supply quality. This robust logistics (shipping, storage, refining) also allows it to be present in trading and supply vis-à-vis third parties.

Rubis aims to give as many people as possible access to reliable and sustainable energy while developing less carbon-intense solutions, thereby promoting sustainability.

The markets in which the Group operates are deep, and energy needs are essential and growing, particularly in the regions where Rubis has strengthened its presence in recent years (Africa and the Caribbean, representing 48% and 30% respectively of the retail & marketing division’s contribution to EBIT). In Europe, Rubis is positioned in sensitive markets, such as liquefied gases (butane and propane), synonymous with high barriers to entry, and where growth stems from efficiency, reactivity and market share gains.

For the past 30 years, Rubis has pursued an external growth strategy based on strict financial discipline, including modest acquisition multiples and financial leverage, and a clear strategic approach (niche positioning, strong market positions backed by control of resource access infrastructure, and prospects for earnings growth) to ensure value creation for all stakeholders.

With each acquisition, the implementation of a strategy, the provision of skills, capital and a new organization, not for-getting the Company’s flexibility, have made it possible to form a multi-local, decentralized and independent group with sound market positions protected by concrete assets, guaranteeing its long-term profitability.

Acquisition-led growth, the very core of the Group’s DNA, is one of the chief drivers of Rubis’ development, and would not have been possible without:

Its motto, “the will to undertake, the corporate commitment”, expresses this essential value underpinning the motivation, loyalty and engagement of its 4,142 employees.

“The corporate commitment” applies to Rubis’ relations with all stakeholders, primarily its employees, end customers, and the countries and environment in which Rubis operates, but also its shareholders.

Driven by “the will to undertake”, Rubis is constantly on the move, developing and positioning itself as a vector of progress in all areas (governance, social, environmental). From that point of view, 2020 will go down as an exceptional year in view of the sum of actions and initiatives undertaken.

GOVERNANCE

The legal form of Partnership Limited by Shares was adopted when the Company was founded, in keeping with a long-term strategic vision and the convergence of the interests of the two categories of partners. In 2020, this convergence of interests was strengthened by the introduction of a benchmark price (highwater mark) in the calculation of the Total Shareholder Return (TSR) used as a basis for the determination of the dividend per by-laws of the General Partners (see chapter 6, section 6.3.2).

In addition, the Company has set up a Group Management Committee (Rubis SCA) comprizing equal numbers of men and women. Rubis Énergie and its subsidiaries set themselves the goal of ensuring that men and women both represent more than 30% of membership of their Management Committees by 2025.

ENERGY TRANSITION

Rubis is approaching the energy transition confidently thanks to its role as a key link in the logistics chain, equally capable of storing, shipping and transporting new energy to the end consumer. Indeed, the Group’s facilities represent an opportunity for the promoters of these new products.

The products and services offered by the Group already reflect the shift towards this transition; liquefied gases, for instance, are a model for cleaner mobility enjoying fiscal incentives. In developing countries, this energy is actively recommended by public authorities and the WHO as a cooking method, rather than charcoal or kerosene, for health reasons and in order to fight against deforestation. A noteworthy development is that the liquefied gas and bitumen segments, products that emit less CO₂, accounted for half of the retail & marketing and support & services business lines’ gross margins in 2020.

The climate constraint can also be a source of innovation and business opportunities. For example, Rubis was one of Europe’s pioneers in the distribution of HVO, a second-generation biofuel that reduces CO₂ emissions by at least 50% compared to conventional diesel. The Group now aims to extend the development of biofuels to the 41 countries in which it operates, while continuing to be a driving force in Africa to popularize the use of liquefied gas, the transition energy par excellence.

Rubis has taken a new step in its transition strategy with the creation of a Climate Committee and the publication early in 2021 of a target to reduce Rubis Énergie’s CO₂ emissions (scopes 1 and 2) by 20% by 2030 (versus 2019).

This new, more proactive environmental ambition aims notably to:

* Data including the Rubis Terminal JV.

** Amount proposed to the Shareholders’ Meeting of June 10, 2021.

Data as of December 31, 2020.

€3,902

SALES REVENUE OF MILLION

“

In 2020, the Group remained fully confident in its business model, continuing to invest to strengthen its market positions and ensure its long-term growth.
The General Management

€449

MILLION IN CASH FLOW

RUBIS STOCK MARKET PERFORMANCE

RUBIS SHAREHOLDERS

(as of 12/31/2020)

The slight difference in the sum of the percentages is due to rounding.

FINANCIAL INFORMATION

2021 AGENDA

Rubis share

STOCK MARKET

Euronext Paris – compartment A

(since January 11, 1995)

ISIN CODE

FR0013269123

PAR VALUE

€1.25

AVERAGE PRICE IN 2020

€41.41

(average closing price, source: Euronext)

AVERAGE DAILY VOLUME TRADED

711,730 shares

(source: Bloomberg)

MARKET CAPITALIZATION

€3,933 million

(as of December 31, 2020)

MEMBER OF STOCK MARKET INDICES

SBF 120

CAC MID 60

OTHER

Eligible for share savings plans (PEA)

Rubis Énergie operates in Africa, the Caribbean and Europe, specializing in the distribution of energy and bitumen.

Our aim is to meet the basic needs of populations in terms of mobility, heating, cooking, electricity production, infrastructure construction and other areas, ensuring the long-term accessibility of our products, thanks to the control of the entire logistics chain from supply to the end user.

PRODUCTS

The Group offers a diversified matrix of products and offers:

MARKETS

Through its gas stations, Rubis Énergie supplies fuels, lubricants and liquefied gas cylinders, while offering its customers a range of additional services including car washing, convenience stores and fast food restaurants.

Rubis Énergie has a network of 1,015 gas stations, most of which are operated under the RUBiS and ViTO brands, and mainly located in Africa and the Indian Ocean (52%), and the Caribbean (39%). As 74% of our network is located in regulated markets, the stability of our margins is ensured.

Most of the retail sites are owned by the Group, and all fuel is supplied by Rubis Énergie. Retail customers’ primary concern is quality products and services, and we offer loyalty card programs in this respect.

We also distribute domestic heating oil and liquefied gas directly to our retail customers, offering a wide range of cylinders and tanks depending on their needs. Equipment maintenance and advice on energy saving are also part of the offer.

Lastly, Rubis Énergie supplies a wide range of commercial customers with fuels, lubricants, liquefied gases, bitumen and other by-products, mainly in the transportation, infrastructure, hotel, aviation, marine and public works sectors. These products are essential for the economies of the countries where the Group operates. Rubis generally controls the entire logistics chain, primarily through its support & services activity.

POSITIONING

The Group’s strength is its decentralized organization, each local subsidiary being a profit center in its own right. This system ensures that local Managers have a deep understanding of their region and provides for an appropriate investment policy.

This organization has been in place for many years within Rubis Énergie, and has consistently demonstrated its effectiveness. It results in motivated and responsible teams, flexibility allowing reactivity and efficiency, and market share gains.

STRATEGY

Our strategy is to:

EBITDA OF

€370

MILLION

€135

MILLION IN CAPITAL
EXPENDITURE

€308

MILLION
IN CASH FLOW

EBIT OF

€269

MILLION OF WHICH

€128 MILLION FOR AFRICA

€80 MILLION FOR THE CARIBBEAN

€61 MILLION FOR EUROPE

€627

MILLION EUROS
IN GROSS MARGIN

Breakdown of volumes

SALES REVENUE OF €3,334 MILLION

Rubis places its CSR commitments at the heart of its strategy

Providing access to energy for as many people as possible is a critical contribution to the development of the various geographies and the populations that live there.

Rubis aims to contribute to sustainable growth, in keeping with its corporate culture and values. To achieve this goal, the Group strives to operate in a responsible manner, taking into account both challenges in its sector and the expectations of its stakeholders.

The approach now revolves around four priorities that structure the Group’s CSR approach.

In view of the nature of the Group’s activities, respect for the environment is one of its priorities.

As a responsible company, Rubis takes care to limit its environmental footprint by implementing measures to:

ROLLING OUT OUR CLIMATE STRATEGY

To support the Group’s strategic thinking, a Climate Committee has been established and a Climate  & New Energies team now coordinates the operational efforts of the Rubis Énergie subsidiaries.

In 2020, the Group clarified its Climate strategy, which focuses on two pillars:

2030 ambition

20%

REDUCTION IN CO₂ EMISSIONS
(scopes 1 and 2 Rubis Énergie - versus 2019)

In a year marked by an unprecedented health crisis and exacerbated volatility in the price of petroleum products, Rubis demonstrated tremendous resilience, limiting the decline in operating income and net income, Group share to 11% and 9% respectively. Against this backdrop of widespread uncertainty and constrained mobility, the Group maintained full confidence in its business model, continuing to invest to strengthen its market positions and ensure its long-term growth.

2020 marked the implementation of new proactive ESG actions (Environmental, Social and Governance criteria), with, in particular, the announcement of a 20% reduction target for Rubis Énergie’s CO₂ emissions (scopes 1 and 2) by 2030 (versus 2019) and the by-law reform relating to the determination of the General Partners’ dividend (high-water mark) aimed at better aligning the interests of the two categories of partners.

While April 2020 saw a very significant drop in activity (-42%), the following months saw a steady return to normal, coupled with an increase in unit margins, enabling EBIT to stabilize in the second half of the year (following a decline of 21% in the first half). Excluding the Covid effect and on a like-for-like basis, EBITDA grew by 7% and EBIT by 3%, levels in line with historical organic growth.

CONSOLIDATED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2020

Overall activity showed exceptional resilience, with volumes down 8% on a reported basis and 16% on a like-for-like basis, thanks to the Group’s multi-country and multi-segment positioning and its dual midstream/downstream structure. The LPG segment (-5%), which serves the residential and agrifood sectors, held up very well, whereas jet fuel sales for aviation (-51%) were heavily affected. The balanced split between retail distribution and trading proved its cyclical complementarity, with strong growth in bitumen, as well as retail distribution (+20%), trading-supply (+7%) and storage (Rubis Terminal JV storage revenues: +10%), benefiting from the return of contango and stronger positioning in chemicals and agrifood products thanks to the transformative acquisition made in Spain (Tepsa).

The 2020 results include positive and negative non-recurring operating items: the disposal of 45% of Rubis Terminal resulted in a capital gain of €83 million and an operating profit of €17 million (for the period from January 1 to April 30, 2020), i.e. €100 million in net income, Group share from the activities sold. At the same time, a charge of €77 million was recorded in “Other operating income and expenses”, including a €46 million impairment recognized as of June 30, 2020 due to changes in the political and economic environment in Haiti during the first half of 2020, and a €25 million impairment on financial assets for which the Company has assessed a significant increase in credit risk based on a multi-factor analysis taking notably into account the local political and economic environment, leaving a positive balance of €6 million.

The Group’s year-end financial position was particularly sound, with a net debt to EBITDA ratio of less than 0.4, prompting Rubis to implement a share buyback and cancelation plan of €250 million with a view to increasing the intrinsic value of Rubis shares while preserving its capacity for action in terms of acquisitions.

Overall, in a particularly hostile environment, Rubis generated cash flow of €449 million, down 5% after adjustment for the contribution from Rubis Terminal. Taking into account the positive impact of the fall in petroleum product prices on working capital, operating cash flow was €591 million, up 19%.

As of December 31, 2020, financial debt, excluding lease liabilities, mainly consisted of borrowings from credit institutions for a total amount of €1,146 million, of which €268 million maturing in less than one year, and €96 million in bank overdrafts. Given the Group’s net debt to shareholders’ equity ratio as of December 31, 2020 and its cash flow, the repayment of this debt is not likely to be put at risk due to a breach of covenants. The net decrease in financial debt compared to December 31, 2019 is mainly explained by cash flows from operating activities and the disposal of the 45% stake in Rubis Terminal.

ANALYSIS OF CHANGES IN NET FINANCIAL POSITION SINCE THE BEGINNING OF THE FISCAL YEAR

Capital expenditure amounted to €245 million, mainly focused on future growth (including €131 million in safety/maintenance and facility adaptation investments) versus €230 million in 2019:

No significant events occurred after the balance sheet date.

The Group organizes its activities around two divisions:

Rubis SCA also owns 55% of the securities of the Rubis Terminal joint venture, which it controls jointly with its partner and which it consolidates using the equity method (see chapter 1, section 1.5).

The diversity of the Group’s activities and the nature of the products handled expose it to risks that are regularly identified, updated and monitored as part of a rigorous management process aimed at mitigating them as far as possible, in accordance with applicable regulations, international standards and best professional practice.

Rubis has identified 14 risk factors related to its activities, considered to be significant and specific (including risks related to Covid-19, which are subject to special monitoring), divided into four categories (section 3.1).

In addition, the Group has implemented for many years internal control procedures (section 3.2) that contribute to the control of its activities and the effectiveness of its risk management policy.

Finally, for residual risks that cannot be completely eliminated, the Group ensures that they are covered by appropriate insurance policies, whenever this is possible (section 3.3).

Using mapping techniques, Rubis annually reviews financial, legal, commercial, technological and maritime risks liable to have a material adverse effect on its business and financial position, including its earnings, reputation and outlook. In addition to risk mapping, an overall review of risks by all the relevant departments is organized in order to select the risks that should be included in this chapter. The risks selected are then presented to the Accounts and Risk Monitoring Committee, a specialized Committee of the Rubis SCA Supervisory Board.

Only those risks deemed specific to the Group and important for investors as of the date of this document are described in this chapter. Investors should take all the information contained in this document into consideration.

Risk factors are divided into four categories based on their nature:

The categories are not presented in order of importance. Within each category, the most important risk factor as of the date of the risk assessment is presented first. Note that the NFIS (Non-Financial Information Statement) contains a description of non-financial risks.

Depending on their importance, some of those risks are also included in the risk factors described in this chapter. To avoid unnecessary repetition for the reader and to present each risk factor concisely, this chapter contains references to chapter 4 “CSR”, which includes a detailed discussion of the Group’s management of its environmental, social and societal risks.

The description of Rubis’ main risk factors (see below) presents the possible consequences in the event of a risk occurring, and provides examples of measures implemented to reduce them. The assessment of the level of impact and probability of each risk mentioned takes into account the control measures implemented (net risk).

Probability

Low    Medium    High    

Impact

Low    Medium    High  

FRAMEWORK

For the following description of internal control procedures, Rubis referred to the French financial market authority (Autorité des Marchés Financiers - AMF) guide of July 22, 2010, which sets out a reference framework for risk management and internal control.

However, Rubis has adapted the general principles of the AMF framework to fit its business and characteristics.

OBJECTIVES

Rubis has put in place a certain number of procedures to ensure:

Like any internal control system, Rubis’ system cannot provide an absolute guarantee that the Company will be able to achieve its objectives and eliminate all risks.

SCOPE

The procedures described below are applicable to Rubis Énergie, which is wholly owned by Rubis SCA, and to its sub-subsidiaries.

The Rubis Terminal JV is managed jointly with the partner. The Management of the RT Invest joint venture is responsible for setting up and ensuring internal control (in accounting, financial and risk matters) in accordance with applicable standards and regulations and the expectations of its shareholders. Details of this joint venture are given in section 3.2.4 of this chapter.

SYSTEM COMPONENTS

Although it has acquired an international dimension, Rubis wishes to remain a decentralized organization close to the field in order to provide its customers with solutions adapted to their needs by retaining the capacity to take the necessary operational decisions quickly. Regular exchanges, conducted whenever necessary, between the General Management on the one hand, and the General and functional departments of Rubis Énergie and its foreign subsidiaries on the other hand, are the cornerstone of this organization.

This managerial model gives the Manager of each industrial site or subsidiary a large degree of autonomy in the management of his or her activity, although responsibilities delegated in this manner are heavily reliant on compliance with established procedures with regard to accounting and financial information and risk monitoring, as well as on regular monitoring of the relevant departments of Rubis SCA, and of the functional departments of Rubis Énergie (see sections 3.2.2.3 and 3.2.3.2).

Lastly, Rubis SCA’s Supervisory Board, through its Accounts and Risk Monitoring Committee, is informed by General Management of the essential characteristics of the Group’s internal control and risk management procedures. It ensures that the main risks identified have been taken into account in the Company’s management, and that systems designed to ensure the reliability of accounting and financial information are in place (see chapter 5, section 5.3.2).

In order to offset the financial consequences of a risk, the Group has taken out several insurance policies. The main policies cover both property damage and operating losses, and civil liability.

Specific policies have also been put in place for the Group’s newly-developed businesses.

Lastly, the Group has also taken out a policy covering its Senior Managers’ civil liability.

Insurance programs are taken out with leading international insurers and reinsurers. The Group believes that these are appropriate to the potential risks related to its businesses. Nevertheless, the Group cannot guarantee, in the event of a claim, in particular of an environmental nature, that all of the financial consequences would be covered by the insurers. Nor can the Group also guarantee that it will not suffer any losses that are uninsured.

International programs taken out by Rubis Énergie on behalf of itself and its subsidiaries have been renewed with leading insurers.

3.3.1.1 PROPERTY DAMAGE AND PARAMETRIC INSURANCE

The “All Risks except” policy was renegotiated for one year with modified guarantees and a significant increase in premiums.

The Damages guarantee in the event of fire and similar events provides compensation in the amounts of €200 million per claim for terminals and €15 million per claim for gas stations. The ceiling was calculated on the basis of the maximum amount of possible loss.

Our exposure to natural events, particularly in the Caribbean, is covered in the amount of €15 million per claim and per event.

As the deductibles for natural events have increased, a parametric hurricane insurance policy has been set up covering sites in the Caribbean, with compensation capped at €5 million.

In compliance with local laws, the Group’s international program is taken out, in subsidiaries located outside the European Union, with the local network of our lead insurer, with the Group policy providing coverage where there are differences in terms and limits.

3.3.1.2 CIVIL LIABILITY

The Group program covers operating liability and post-delivery liability. Coverage amounts to €150 million per claim, all damages included, and the program has been renewed with the same insurers.

In compliance with local laws, the Group’s first-line international program is taken out, in subsidiaries outside the European Union, with minimal coverage from our insurer’s local network, with the Group policy providing coverage where there are differences in terms and limits.

The Group’s Environmental Liability policy has been renegotiated for two years for Rubis Énergie and its subsidiaries. Compensation is capped at €40 million per claim, covering environmental liability, damage to biodiversity and clean-up costs.

Due to its refining activities, SARA has renewed specific first-line cover for two years in the amount of €20 million per insurance period, with the Master program in the second line.

The Group’s Global Aviation Liability coverage taken out for its subsidiaries distributing aviation fuel has been renewed under the same conditions in the amount of US$1 billion for risks related to damage caused to third parties during refueling.

3.3.1.3 SHIPPING

Charterer’s Civil Liability insurance has been taken out with a P&I Club, a member of the International Group, with guarantees of US$500 million and US$1 billion in the event of pollution for the entire Group. The five shipowning companies are covered by the same P&I Club belonging to the International Group, for their civil liability.

Group Master Cargo insurance has been renewed to cover damage to goods, capped at US$60 million for all Rubis Énergie subsidiaries.

A vessel Hull policy has been taken out to cover for damage and machinery breakdown.

3.3.1.4 OTHER RISKS

A Political Risk policy (excluding the mandatory pools) has been taken out in the amount of €80 million. A local policy was taken out in Haiti to cover our gas stations, which the insurers had excluded from international programs.

The Cyber policy has been renewed for European countries subject to the GDPR, including Switzerland.

Although it has acquired an international dimension, Rubis remains a company on a human scale that through a decentralized organization seeks to encourage the professionalism, experience and autonomy of its employees, who assume all the responsibilities related to their positions, including the management of non-financial risk.

Rubis believes that involving management in CSR issues at all levels of the organization is key to ensuring the sustainability of its activities (section 4.1.1). To better focus its efforts, the Group has carried out risk analysis that identified 13 risks as being the most material in terms of its activities (section 4.1.2).

These risks are grouped into four priority issues that underpin the Group’s CSR approach:

This section includes Rubis’ CSR strategy, in line with the Non-Financial Information Statement (NFIS) requirements as provided for by European Directive 2014/95/EU transposed by French Government Order 2017-1180 and implementing decree 2017-1265. The NFIS presents:

A diagram showing the Group's business model is available in chapter 1, section 1.2 of this document.

An independent player in the logistics and distribution of petroleum products, present in some 40 countries in Europe, the Caribbean and Africa, Rubis is structured around two divisions operated by Rubis Énergie:

A bulk liquid storage business (petroleum and chemical products, biofuels, fertilizers, agrifood products) on behalf of diversified industrial customers is also carried out by the Rubis Terminal JV.

Rubis’ development strategy is based on specialized market positioning, a robust financial structure and a dynamic acquisition policy. It also incorporates non-financial objectives that allow the Group to pursue sustainable growth in addition to these commercial and financial aspects. The regularity of the teams’ performance stems from a corporate culture that values the spirit of entrepreneurship, flexibility, accountability and the embracing of socially responsible conduct. Rubis conducts its activities in keeping with a CSR approach that contributes to the United Nations’ Sustainable Development Goals (SDG).

In keeping with its motto: “The will to undertake, the corporate commitment”, Rubis puts people at the heart of its organization. Empowering the individual men and women who contribute to its activities means promoting freedom of initiative as well as the ethical, social and environmental values that Rubis wishes to see respected by everyone.

Across its entire scope, the Group aims to act with professionalism and integrity. This requirement safeguards against any wrongdoing that could be harmful to the Group, to employees, to business relations or to any other external public or private stakeholder, and is reflected in the following principles, detailed in the Rubis Group Code of Ethics (see section 4.4.1):

The CSR policy is driven by Rubis SCA’s Managing Director, appointed in 2020, in conjunction with the General Management. She is supported by the CSR & Compliance Department, which is responsible for laying down the policy guidelines and leading the approach, in coordination with the various departments involved (Climate, HSE, Human Resources, Legal, and Social Engagement).

Since 2015, part of the Managing Partners’ annual variable compensation has been linked to ethical, social and environmental criteria (see chapter 5, section 5.4.2). These criteria are also included in the framework letters setting the annual objectives of Rubis Énergie’s Senior Managers.

A presentation of the initiatives taken and results obtained is made to the Supervisory Board’s Risk Committee each year.

The Rubis Terminal JV continues to implement the CSR policy it has defined to date, in line with Rubis’ general principles. In accordance with regulations, as a subsidiary 55% owned by Rubis SCA, the Rubis Terminal JV continues to report its annual CSR data to the Group so that they can be included in this Non-Financial Information Statement. However, as this entity is jointly controlled by Rubis SCA and its partner, the CSR policy is now steered and monitored by the joint venture’s Board of Directors, on which Rubis SCA is represented. The joint venture’s CSR objectives are adopted by its Board of Directors. As a shareholder, Rubis SCA ensures that the Rubis Terminal JV applies standards at least equivalent to its own in terms of CSR.

Lastly, the Rubis SCA Accounts and Risk Monitoring Committee monitors the analysis of the Group’s main ethical, social and environmental risks, as well as the corrective measures taken to prevent such risks (see chapter 5, section 5.3.2).

Since 2011, when Rubis issued its first CSR report, the Group has been committed to a continuous improvement process in structuring its CSR approach.

The Group aims to accelerate its trajectory, and took major initiatives to consolidate the foundations of its CSR approach in 2020. They included:

In 2021, the Group plans to finalize its first multi-year CSR roadmap, which will cover climate, social, environment and compliance issues. It will be rolled out in the subsidiaries, which will adapt it to their local challenges.

MONITORING OUR CSR PERFORMANCE

Rubis SCA wishes to continue its transparency efforts and to interact more proactively with non-financial rating agencies. MSCI renewed Rubis’ AA rating on December 14, 2020. Rubis is also included in the Ethical Sustainability Index (ESI) Excellence Europe.

Lastly, the Group is currently preparing its response to the 2021 CDP Climate Change questionnaire.

The use by Rubis in this document of any data produced by MSCI ESG Research LLC or its affiliates (“MSCI”), and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Rubis by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

Protecting people and the environment is everyone’s business and a priority for Rubis. As a committed and responsible company, the Group works continuously to protect its environment (section 4.2.2), and seeks to operate in complete safety (section 4.2.3). To manage this quality, health, safety and environmental approach, the Group has defined a general framework and governance implemented for each activity (section 4.2.1).

4.2.1.1 GENERAL PRINCIPLES

A general framework for quality, health, safety and the environment (QHSE) has been defined to prevent risks and limit the negative impacts of our activities.

The QHSE policy framework, referred to in the Group’s Code of Ethics, states that each employee must act responsibly when performing their duties, comply with the health, safety and environmental protection procedures on site, and pay particular attention to compliance by all parties (colleagues, suppliers, external service providers, etc.). This common framework is shared by all Group activities.

To take into account the specific challenges and risks of Rubis Énergie’s activities and those of the Rubis Terminal JV, they have each drawn up their own QHSE policy in line with the Group’s general principles. Dedicated governance has been set up for the implementation of these policies for each of the business lines, clarifying the Group’s principles by translating them into operational requirements.

The main objective of these QHSE policies is to prevent risks so as to better protect physical and environmental integrity and minimize the impacts of a major accident (see section 4.2.3). This is reflected in the implementation of the measures required to limit incidents as far as possible and thereby reduce the probability of a severe event occurring. In addition, the Group is also keen to mitigate its environmental footprint (see section 4.2.2).

4.2.1.2 MANAGEMENT SYSTEM

OVERSIGHT OF RISK MANAGEMENT

The implementation of QHSE policies is overseen by facility Managers, assisted by the Rubis Énergie and Rubis Terminal JV Industrial, Technical and HSE Departments. At larger sites, quality and/or HSE engineers are also involved in this approach. The Directors of Rubis Énergie subsidiaries and their functional departments report on their work in the field of HSE to Management Committee meetings held twice a year within each division, in the presence of Rubis SCA’s General Management. The Management of the Rubis Terminal JV reports on the implementation of its HSE policy and its results to its Board of Directors, on which Rubis SCA has representatives.

Rubis Énergie (retail  & marketing and support  & services activities)

As Rubis Énergie considers it vital to ensure the health and safety of people and property located in or near its facilities, Rubis Énergie has established a Health, Safety and Environment (HSE) Charter, which requires its affiliated companies to comply with HSE objectives considered fundamental, sometimes over and above regulations in force locally, as a means of preserving the safety of people and property and to heighten employee awareness on these issues.

These general objectives are to be achieved through the following key measures:

Depending on the activity, the following actions are also taken:

Rubis Terminal JV (storage activity)

The Management of the Rubis Terminal JV has circulated a document to all its subsidiaries setting out “the principles of Rubis Terminal’s safety culture.”

These principles note, through the commitments given by the joint venture’s Management, that:

The Rubis Terminal JV considers that protecting health and safety contributes to the success of the Company, and should therefore never be neglected, and that action must be taken upstream to avoid workplace injury or occupational illness. The Management of each Rubis Terminal JV industrial site has the obligation to ensure regular audits assessing compliance with safety principles and standards. Performance indicators have been set up in order to trigger and monitor a process of continuous improvement with respect to health and safety.

The Rubis Terminal JV’s Management and that of each facility make an annual commitment to employees, customers, suppliers, governments and local residents, pledging to apply a QHSE policy that incorporates safety improvement targets at each site. Managers also agree to adhere to recognized international QHSE standards, set out below.

Lastly, the Rubis Terminal JV has committed to a detailed multi-year program to reduce its energy consumption and its CO2 and atmospheric emissions, by circulating a document entitled “Group objectives for environmental impacts and energy consumption” to limit its environmental footprint. The document sets out objectives for reducing greenhouse gas emissions, energy and water consumption, and waste management in the years to 2020, the results of which are presented in the corresponding sections of this chapter (section 4.2.2.3 for the carbon intensity of the activity, section 4.2.2.4.1 for water consumption and section 4.2.2.4.2 for waste management).

The following actions are also implemented:

SITE CERTIFICATION

Certain sites operated are certified, particularly those classified as Seveso.

Mindful that employee commitment is key to the Group’s success, Rubis ensures that individuals have the opportunity for professional development with the aim of attracting, developing and retaining its talents. To do this, Rubis focuses its efforts on promoting diversity and equal opportunities (section 4.3.1), employee skills development (section 4.3.2), health, safety and well-being at work (section 4.3.3) and involving employees in the Group’s value creation (section 4.3.4).

Group risk mapping has identified the main social risks related to activities. These risks mainly concern the health and safety of employees and external service providers working on Group sites. Apart from these risks, a key challenge relating to human resource management was identified by the relevant departments in each division: attracting, developing and retaining talent while the Group grows and where human resources must be adapted to Rubis’ development strategy. This challenge is dealt with in this chapter.

To make the most of its human capital and better handle the specializations involved in the Group’s different activities, and in line with its corporate culture, its social policy roll-out has been decentralized. Rubis Énergie and its subsidiaries as well as the Rubis Terminal JV manage their human resources autonomously, in line with Rubis’ values, and implement local actions adapted to their needs and challenges.

Employee status and fluctuations in numbers

As of December 31, 2020, the Group’s headcount was 4,142, including 449 within the Rubis Terminal JV, an increase of 4.8% compared with 2019. This growth, observed across all regions where the Group operates, is largely attributable to the consolidation of Gulf Energy in Africa.

CHANGE IN NUMBER OF EMPLOYEES BY DIVISION AND BY REGION

Diversity and inclusion are part of the Group’s DNA. They represent an asset to the Company and a key to the effectiveness of its teams. The Group has committed to outlaw any discrimination based on origin, religion, gender or sexual orientation, state of health and/or disability, political opinions, religious beliefs or family status. These values are clearly stated in its Code of Ethics. To ensure that everyone is protected against potential discrimination, a workplace whistleblowing system (Rubis Integrity Line) has been rolled out across the whole Group so that any situation undermining the values of the Group and its subsidiaries can be flagged. The Integrity Line enables all Group employees, as well as external and temporary workers, to report any such situation in a secure way via a website (see section 4.4.1.1).

Since combating discrimination corresponds to a major social issue, the Group has set itself the target of zero discrimination in all cases reported, notably via its ethics hotline.

4.3.1.1 PROFESSIONAL EQUALITY BETWEEN MEN AND WOMEN

RISKS

In an industrial environment where most employees are assigned to operational tasks, with hours and working conditions that can sometimes be difficult, the headcount has historically been dominated by men. In line with its principles of non-discrimination and convinced that lack of diversity is damaging to value creation, the Group has set up initiatives to help talent to flourish without any gender distinction.

GENDER BREAKDOWN WITHIN THE GROUP AS OF 12/31/2020

MEASURES TAKEN TO IMPROVE GENDER EQUALITY IN THE WORKPLACE

Measures to improve professional equality between men and women are being phased in within the entities. For example, Rubis Énergie’s Jamaican subsidiary (Rubis Energy Jamaica) is one of the first English-speaking companies in the Caribbean to have committed, in March 2019, to the gender equality certification process devised by the United Nations Development Program (Gender Equality Seal for Public and Private Organizations). This certification includes the following objectives:

Company agreements promoting the inclusion of women and gender equality in the workplace have also been concluded in some of the Group’s subsidiaries, complementing existing measures in the fight against discrimination in hiring, the promotion of equal pay, career development, etc.

Vitogaz France, for example, renewed a company agreement aimed notably at facilitating the access of women to positions of responsibility, neutralizing the impact of periods of maternity or adoption leave on professional evaluation, fostering career development and, lastly, promoting measures aimed at ensuring an optimal balance between work and family obligations.

SRPP (Réunion Island) has concluded a company agreement with four objectives (monitored by defined quantitative indicators) aimed at promoting professional equality between men and women:

Communication campaigns were also launched to highlight women’s involvement in the Company and to help combat gender stereotyping in the workplace. For example, the Rubis subsidiary operating in the Eastern Caribbean (Rubis Caribbean) is actively involved in the international Women’s History Month campaign, which consists of putting the spotlight on women’s contributions to historical events and contemporary society, and publicly recognizing the work done by its female employees.

In 2019, SARA launched the “NO to Sexism” campaign at all of its sites. Since then, a series of actions have regularly reminded Group employees and employees of external companies that sexism in any form whatsoever will not be tolerated. A team of actors first helped everyone understand, through real-life scenes, what sexist behavior is and how serious it is. Articles are regularly published to address the subject. To go further, a leaflet has been distributed to remind everyone what the law says on the subject and the penalties incurred.

The Group’s subsidiaries encourage the hiring of women in our male-dominated professions and fight against all forms of discrimination and sexism, in particular by ensuring that their recruitment processes, compensation policies and career management give everyone the same opportunities.

A company agreement was renewed within the Rubis Terminal JV in 2017. It focuses on the areas of hiring, training and career development through the use of monitoring indicators. A report is presented each year to the central Economic and Social Council. The ongoing situation is positive, particularly in terms of training. The Rubis Terminal JV is currently considering setting a target for the number of women in the workforce, which will be submitted to its Board of Directors.

RESULTS

The number of women employed by the Group was up 3.24% year on year (1,053 female employees as of December 31, 2020, compared with 1,020 as of December 31, 2019). Women employees account for 25.35% of the total headcount.

Management positions (Senior Managers) in Rubis SCA (parent company) are mainly held by women.

At Group level, women hold 31.1% of positions of responsibility (senior executives and executives), higher than their representation as a percentage of the total headcount. The percentage of women holding executive or senior executive posts (21.2%) is markedly higher than the percentage of men with equivalent responsibilities (16.2%).

Increasing the number of women on management bodies

Objectives have been set in 2020 to increase the number of women on Rubis SCA’s management body, as well as on the Management Committees of Rubis Énergie and its subsidiaries, in order to continue improving the representation of women in management positions:

NB: The data include those of the Rubis Terminal JV. The details excluding the Rubis Terminal JV are shown in the table at the end of this section 4.3.

At the level of the governing bodies:

GENDER EQUALITY INDEX FOR FRENCH COMPANIES

To compare pay gaps between men and women in France, a professional equality index has been phased in by French law 2018-771 of September 5, 2018 on the freedom to choose one’s professional future, for French companies with more than 50 employees.

The index, expressed as a score out of 100, is calculated on the basis of four or five criteria, depending on the size of the Company’s workforce:

Rubis Énergie subsidiaries: thanks to action taken to eliminate gaps, the gender equality indexes of the three French companies concerned increased significantly between 2019 and 2020:

For the Rubis Terminal JV, its French subsidiary reported scores of 84/100 in 2020 relating to 2019 and 85/100 in 2021.

4.3.1.2 GEOGRAPHICAL DIVERSITY

Operating in over 40 countries around the world, and with more than 50 nationalities in its workforce, Rubis is keen to capitalize on the rich cultural diversity of its employees and make an impact in the regions in which it operates. Employees are split equally between Africa, the Caribbean and Europe in terms of activities. In order for this cultural diversity to be reflected in corporate culture and management, when acquiring foreign subsidiaries, the Group tries to retain and/or hire local employees, for their experience and knowledge of the country: more than 98% of Group employees are hired locally. Thus, only two positions are generally occupied by expatriates in subsidiaries, those of Chief Executive Officer and Chief Financial Officer. The rate of expatriates on the various Management Committees of the subsidiaries was thus 22.5% in 2020 (25% excluding the Rubis Terminal JV).

GEOGRAPHICAL BREAKDOWN OF EMPLOYEES

NB: The data include those of the Rubis Terminal JV. The details excluding the Rubis Terminal JV are shown in the table at the end of this section 4.3.

4.3.1.3 INTERGENERATIONAL DIVERSITY

The age structure shows that the Group maintains broad intergenerational diversity in its headcount, which greatly enhances the experience of its teams and the transfer of knowledge. Each age group is represented in a relatively homogeneous way, without any significant variations between business lines and regions. To anticipate the retirement of senior employees, the Group has set up an active training policy. Furthermore, the Group contributes to the integration of young people into the job market by recruiting interns, students on apprenticeship and professionalization contracts and new graduates.

BREAKDOWN OF EMPLOYEES BY AGE GROUP

To retain this intergenerational dynamic and maintain proximity between younger and older employees, Rubis Énergie and the Rubis Terminal JV in France have introduced practices favoring seniors.

Since intergenerational diversity is key to social cohesion between all the generations, Rubis Énergie prioritizes:

The Rubis Terminal JV is committed to:

For young employees, the Group encourages combined work-study programs, which it sees as a good way of bringing young people into the world of work.

4.3.1.4 DISABILITY

The Group has adopted a policy of openness in favor of disability, which includes funding associations and institutions working in healthcare as part of its social engagement activities (see section 4.4.3.2).

Within Rubis Énergie, several subsidiaries use supply, subcontracting or service contracts with establishments and services assisting disabled people through work (ESAT) or sheltered companies (EA). At the same time, recruitment companies are asked to ensure that each job opening is accessible to people with disabilities.

At Rubis Antilles Guyane, for example, hiring for various leave replacements is done through Cap Emploi, which manages people with disabilities. This allows integration into the Company and may lead to a permanent contract as needed, which was the case in 2020.

In South Africa, it is a legal requirement (Employment Equity Act) for companies to employ a minimum of 2% of people with disabilities in their workforce. People with disabilities account for over 4% of the Easigas workforce.

The Rubis Terminal JV has also signed partnership agreements with ESATs, medico-social establishments for disabled people and institutions operating in the sheltered sector.

For instance, for more than 20 years, the Rubis Terminal JV company headquarters has been sourcing office supplies and maintenance products from establishments employing workers with disabilities under the auspices of the Commission for Rights and Autonomy of People with a Disability (CDAPH).

Operating its businesses responsibly and with integrity is a key issue for Rubis in terms of fulfilling its commitments and protecting its image, its reputation and its employees. The Group is built on values that have fashioned its culture and driven its success: integrity, respect for others, professionalism and trust are all principles that the Group aims to apply across all its activities to ensure its sustainability. These internal principles, rooted in its strong corporate culture, also encourage employees to become involved in the social and economic fabric surrounding them, by adopting responsible and supportive behavior.

Due to the fact that it operates on an international level in over 40 countries in Europe, the Caribbean and Africa, the prevention of corruption is a major issue for the Group (section 4.4.1.1). The Group is also endeavoring to extend its principles of responsibility to its value chain and to gradually introduce a responsible purchasing policy with the aim of common standards of exemplary actions (section 4.4.1.2). Lastly, the Group’s subsidiaries attach great importance to dialog with stakeholders and encouraging momentum in the regions where they operate, both in terms of the economy and employment and in terms of culture and “living together” (section 4.4.2).

Ethics is seen as one of the Group’s assets, key to its reputation and loyalty. Integrity is one of the central pillars of the Group’s ethics approach (section 4.4.1.1), as is the Group’s commitment to respecting its employees’ fundamental rights (section 4.4.1.2).

4.4.1.1 FAIR PRACTICES

“Personal integrity is key to ensuring exemplary collective behavior. It is a safeguard against any wrongdoing that could be harmful to the Group, to employees, to business relations or to any other external public or private operator.”

Gilles Gobin and Jacques Riou,

Managing Partners
of the Rubis Group
Extract from the Code of Ethics

RUBIS’ CODE OF ETHICS

Collective and individual commitment is key to adopting ethical behaviors in line with the Group’s values. To ensure that the rules of conduct are shared and respected by all, Rubis has formalized in its Code of Ethics a common framework for all subsidiaries, including its Rubis Terminal JV, which places its actions within this same framework.

This Code of Ethics (accessible to the general public on the Group’s website: www.rubis.fr) lays down the values that Rubis considers fundamental: