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Corporate Presentation Organización Terpel S.A. April 2019
Corporate
Presentation
Organización Terpel S.A.
April 2019
2
Organización Terpel, so much more than fuels!
1stFuel distributor in
Colombia
44.3% Market Share*
1stService Station
Network in
Colombia
2,015Liquid fuel + NGV
Service Stations (SS)
5Countries
where Terpel is
present
$19$COP Trillion
Consolidated
Revenues Dec. 2018
2.7Billion
Gallons
Consolidated
VolumeDec. 2018
$741$COP Billion
Consolidated
EBITDADec. 2018
(*) Source: Central Bank estimates based on the volume reported by the Fiscal Support Directorate (DAF) of the Ministry of
Finance and Public Credit, taken from the overall fuel surcharge collection data. It includes the volume for Non-Intermediary
Large Consumers (GCNI for its Spanish abbreviation) and imports. Figures at Dec. 2018.
AAATerpel Bonds
Risk Rating Fitch Ratings
S & P
$1.7$COP Trillion
Market
Capitalization Dec. 2018
At your serviceAt your service
3
Terpels’ Merger & Gazel
Acquisition
.
Over 50 years mobilizing Colombia
Founding of "los Terpeles«, 1st
lube factory, and kick-off of
aviation & marine businesses
Creation of Organización Terpel
(OT) & incorporation of SIE
Acquisition of Ecomex & Lutexsa
Acquisition of Petrolera
Nacional & Repsol YPF Chile
COPEC acquires control
OT – Gazel merger & entry into
Dominican Republic
1st Bond Issue, Reorganizational
merger, Terpel shares listed in
Colombian Stock Exchange - BVC
2nd Bond Issue
1972
1993
2000
2001
2004
2006
2007
2008
2009
2010
2011
2012
2013
2014
2018
1968
2015
2016
Sale in Mexico
2017
Acquisition of Exxon Mobil’s fuel operations in
Peru & Ecuador, and lubricants in Colombia.
3rd bond issue
Founding of
Terpel
4
Corporate structure
Corporate structure at 31 December 2018
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COPEC, one of the largest Chilean companies, its main
shareholder and long-term player
39,79%
FORESTRY FUELS FISHING OTHER INVESTMENTS
6
Best Infrastructure
Best PriceBest Service
Pillars of our corporate strategy
Placing people at the heart of our strategy has enabled us to continue
spearheading the transformation of the fuel sector. We generate
memorable experiences in all our business lines to continue being the
number one brand in the heart of our customers.
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(*) Source: Terpel. Market Share in Colombia at Nov/18; Peru: Lima Market Share(**) Figures at Dec. 18: 1,927 Liquid fuel SS (242 own) and 252 NGV SS, of which 164 SS carry both NGV and liquid fuels(***) Including 40 SS acquired from ExxonMobil(***) 38 NGV SS, 16 liquid fuel SS and 18 GLP SSNo. of SS at Dec. 17: Colombia-> 2008, Panama-> 131, Ecuador-> 58, Peru-> 37No. of Stores at Dec. 17: Colombia-> 40, Panama-> 33, Ecuador-> 5, Peru-> 11
Extensive national and regional coverage
No. No. No. Ranking% Market
Share**
Business
Lines
40% SS & IND
46% NGV
81% Aviation
48% Lubes
141 -- 36 2 25%
-- 5 -- 2 29%
14%
7% Lubes
12% NGV NGV-Liq Fuels-LPG
30% Lubes
2.015* 20 46 1
2
-- 5
40**** 1 13
4100***
* *
TERPEL IN
COLOMBIA
9
Terpel continues to be leader in the Colombian market
(*) Source: Central Bank estimates based on the volume reported by DAF, using the overall fuel surcharge collection data. Figures from SS,
Industry & Aviation at December 2018. Homologous historic series based on the current market metrics, which include Non-Intermediary Large
Consumers (GCNI for its Spanish abbreviation) and imports.
(**) Source: Central Bank estimates. In equivalent gallons at December 2018.
TERPEL MARKET SHARE *
Liquid fuels sales volume 2018
TERPEL VOLUME GROWTH vs. MARKET*
GAZEL MARKET SHARE**
NGV sales volume 2018
GAZEL VOLUME GROWTH vs. MARKET**
Others
Others
10
• Market leader with 46.2% share in NGV, 41.5% in
Gasoline and 39.1% in Diesel.*
• 164 SS were added to the renewed image
project. 1,405 SS have this new format. 73% of
the network is now endowed with the new
image.
• Largest liquid fuel & NGV distribution network in
Colombia (2,015 SS**).
• Broad national coverage: presence in 30
departments.
• Financing program for conversion to NGV in
exchange for consumption.
• Its Fleet card program (Rumbo) is a pioneer in
the decentralized supply and centralized billing
model installed through a chip in an
interconnected network of 823 SS.
• It represents 73% of the volume and 69% of the
CAPEX in Colombia.
Service stations (SS)
* Source: Central Bank estimates based on the volume reported by DAF, using the overall fuel surcharge collection data. Figures at
December 2018. Non-Intermediary Large Consumers (GCNI for its Spanish abbreviation) and imports included.
** 1,927 liquid fuel SS (242 own) and 252 NGV SS, of which 164 carry both NGV and liquid fuels.
VOLUME (MM GALLONS)
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Bathrooms, broad ATM network, tire air-
filling and vacuum cleaning equipment, tire
service centers and additives to supplementTerpel’s service portfolio.
Supplementary services
The Convenience Store network with greatest coverage in the country.
The convenience store model was consolidated, offering a unique experience to
our customers, with a touch of local flavor depending on where they are
located. Broad range of services (food, bathrooms, Wi-Fi, and playground &
relaxation areas).
13 Ziclos: A modern, fast and novel car-wash
system.
50 Deuna: Kiosks located in the service islands provide a quick and
efficient service where customers, from the comfort of their vehicles,
can use tablets to buy snacks and other products while they fill up.
46 AltoqueStores
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Lubricants
• Market leader with a 48% market share.
• Terpel acquired ExxonMobil´s Lubes assets in 2018 and signed
a distribution agreement. Mobil lubes are intended to
supplement Terpel’s value proposal by offering top quality
products, unique in the market.
• Production plant located in the city of Cartagena, with a
capacity of 2MM gallons. Production of Mobil and Terpel
lubricants began in August 2018.
• Terpel acquired one of the most advanced technological labs
in the region -MobilServ, ExxonMobil’s registered trademark
for the used oil analysis program.
• It represents 1% of our volume and 2.7% of our CAPEX in
Colombia.
VOLUME (MM GALLONS)
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Industrial customers
• The industry operation focuses on the mining, transportation,
construction and agribusiness sectors.
• Supply of fuel for industrial customers’ in-house facilities.
• Portfolio of integrated products and services focused on safety
and on preventing environmental impacts as well as optimizing
the customers’ operations.
• Close to 402 customers are serviced.
• It represents 8% of our volume and 3% of our CAPEX in Colombia.
VOLUME (MM GALLONS)
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Aviation
(*) Source: Central Bank estimates based on information provided by Ecopetrol at December 2018.
• Market leader, with an 80.5% market share*.
• We provide JET A1 and Avgas to 20 airports in
Colombia.
• Main supplier of Bogota’s El Dorado airport,
through its operator -Allied.
• Thanks to its high operating standards, it now
operates in its capacity as strategic partner of
IATA (International Air Transportation
Association).
• Pioneers in Latin America, integrally certified in
quality, safety and environment. Furthermore,
it has been certified with NORSOK S-006, the
Norwegian standard for safety, occupational
health and environmental management.
• It represents 17% of our volume and 4% of our
CAPEX in Colombia.
VOLUME (MM GALLONS)
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Marine
Colombian Seaports
• Terpel participates in the supply of bunker
fuels for large cargo vessels arriving at
Colombian seaports.
• By the end of 2018, this line represented
0.5% of the total volume.
VOLUME (MM GALLONS)
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Terpel: committed to sustainable development
Terpel upholds it commitment to instill dynamics in each of the elements of its sustainable
management model, to set goals, and to constantly strive to meet them.
INITIATIVES / PROGRAMS / CERTIFICATIONSSUSTAINABLE MANAGEMENT MODEL
Colombia:
Lubricants &
Aviation.
Peru: Aviation
Aviation
Rating 90%
Colombia:
Lubricants &
Aviation.
Peru: Aviation
Colombia:
Lubricants &
Aviation.
Peru: Aviation
Colombia: Plant operations rated 97%
Aviation
Terpel ranked 8th among
72 global retail companies,
according to RobecoSam’s
Sustainability Yearbook,
positioning itself for the
second consecutive year
among the ten most
outstanding companies in
the field of sustainability in
the Global Retail Sector.
Terpel Training Schools:
TERPEL’S
SUSTAINABLE
MANAGEMENT
MODEL
REFLECTS THE
FACT THAT ITS
STRATEGY IS
CENTERED
AROUND
PEOPLE
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Terpel’s senior management background in the Industry
Daniel PereaVP, Corporate & Legal
12 years
Sylvia EscovarCEO
15 years
Maria Mercedes CarrasquillaVP, HR & Administrative
5 years
Tony QuinteroVP, Marketing
21 years
Oscar BravoVP, Corporate Finance
13 years
Johand PatiñoCommercial VP, Fuels
16 years
Liliana TovarVP, Aviation & Marine
26 years
José Carlos BarretoVP, Operations & Logistics
12 years
Organizational structure at 31 December 2018
Rodrigo FerreiraVP, Lubricants
20 years
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Corporate Governance Structure
Audit &
Corporate
Governance
Committee
Compensation
& Benefits
Committee
7 Main Members
Lorenzo Gazmuri Schleyer
Jorge Andueza Fouque
Ramiro Méndez Urrutia
Leonardo Ljubetic Garib
Jorge Alberto Bunster Betteley
José Oscar Jaramillo Botero
Bernardo Dyner Rezonzew
GENERAL SHAREHOLDERS ASSEMBLY
PRESIDENT
Tax
Auditor
Internal
Auditor
Colombian Financial
Superintendence
BOARD OF DIRECTORS
Control Bodies
Our Governance structure is based
on processes that ensure good
governance and back our
committment to ethical self-
regulation.
External
Auditor
Compliance
Auditor
Board of Directors as of December 31, 2018
FINANCIAL
INFORMATION
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Consolidated operational results
SALES VOLUME PERFORMANCE
Million Gallons
2018 SALES VOLUME
% PER COUNTRY
EBITDA PERFORMANCE COP$ Billion
2018 EBITDA BREAKDOWN - % PER COUNTRY
NOTE: The results of the operations acquired from EXM in Peru and Ecuador were consolidated beginning on April 18, while
those acquired in Colombia were consolidated as of July.
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Value generation by region
EBITDA vs. VOLUME
COP$ Billion vs. Million Gallons
NOTE: The results of the operations acquired from EXM in Peru and Ecuador have been consolidated beginning
on April 18, while those acquired in Colombia have been consolidated as of July.
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Expansion has enabled Terpel to strengthen its position
CONSOLIDATED CAPEX
$COP Millones
CAPEX SHARE PER COUNTRY CAPEX SHARE PER SEGMENT
• Expansion and strengthening of the service
station (SS) network.
• SS network upgrade and development of
supplementary services.
• Maintenance, acquisition and expansion of
plants and airports.
• Investments in NGV conversions.
$ COP Billion
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Consolidated debt indicators
DEBT INDICATOR PERFORMANCE* INTEREST COVERAGE INDICATOR PERFORMANCE
* Gross debt
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Contacts
Caveats on the financial and operational information
The financial information and the operational results presented herein correspond to Organización Terpel and its affiliates in
compliance of the International Financial Reporting Standards (IFRS). Information on affiliates is reported without the
intercompany eliminations, which is why the sum of the individual results may not match the consolidated results.
Given the merger process conducted in August 2014, the Consolidated Financial Statements prior to that date included Sociedad
de Inversiones en Energía. Therefore, for December 2013 the Consolidated Financial Statements are taken from Sociedad de
Inversiones en Energía, comparable to Terpel’s consolidated Financial Statements at December 2014, where Terpel already
appears merged with SIE, Proenergía and Terpel Centro.
The information contained in this document does not commit or suggest any investment decision whatsoever.
(1) 317 53 53
Investors’ Contact
