CLH Group Corporate Presentation
Agenda
CLH's shareholder Activities and services
Logistic resources and infrastructure
Pricing system
Main figures
Future perspectives
2
Agenda
CLH's shareholder
Activities and services
Logistic resources and infrastructure
Pricing system Main figures
Future perspectives
3
CLH's shareholder base is very diversified, guaranteeing independent management
CLH's equity ownership
The shareholding structure of CLH includes some of the main infrastructure investment funds and other major investors
CLH Group's management according to two main principles
• Service quality with competitive prices
• Profitability and efficiency
Others
Kutxabank 0.85
Abanca Corporación Bancaria
5.00
5.00
Crédit Agricole Assurances S.A.
5.00
Workplace Safety and Insurance Board Her Majesty the Queen
In Right of Alberta
Limits on CLH's shareholder composition guarantee its independence
In accordance with Royal Decree‐Law 6/2000, of 23 June, no individual or legal entity may participate directly or indirectly in the company's body of shareholders in a proportion higher than 25% of the capital or of the voting rights of the company.
bcmIMC Investment
Partnership
14,15
25.00
5.00
Ardian 9,159,15
5,00
5,00
5.00
5.00
24.15
10.00
AMP Capital Investors
Limited
10.00
Borealis Spain Parent B.V.
Oman Oil
4
Agenda
CLH's shareholder
Activities and services
Logistic resources and infrastructure
Pricing system Main figures
Future perspectives
5
CLH offers its customers 5 main services lines
Storage and transport logistics services
• Reception, storage, transportation from delivery point to customer‐
chosen facility and loading oil products into tanker trucks on the Peninsula and the Balearic Islands
• Bunker and fuel‐oil services
Security stock storage
• Strategic oil reserve storage for European countries’ central institutions and operators
Value‐added services in logistics
• Quality additivation, introduction of fiscal tracers and biofuel blending
• Product control analysis in own labs
Storage and loading in airports
• Storage and into‐plane services of aviation lubricants and fuel
International services
• Technical and consulting support
• Management of hydrocarbon logistics assets
6
CLH provides logistics services to top level companies
7
7
CLH's logistics system integrates storage and transportation
Advantages of CLH's integrated logistics system
Lower costs
Sustainability
Easy scheduling
Stock optimization
Lowers investment necessities and optimizes transportation costs, decreasing operator's logistics costs
Enables optimizing product movements
•Reducing emissions
•Reducing risk of leaks
Simplifies product transportation scheduling for operators
Reduces the stocks needed for transportation and ensures supply by minimizing the transportation time
8
CLH offers to its clients an instantaneous accreditation service for their products Features of how CLH's logistics system works
Integrated system
Integrated management of primary logistics services (transportation and storage) eliminates clients need to own logistics assets
Instant Accreditation: Visual example of how the system works
A CoruñaPuerto
Zaragoza
Instant accreditation
Geographic coverage
Instant accreditation allows clients to access their products from any point on CLH's logistics network immediately after it has been delivered into CLH system
CLH offers its services throughout all of the Peninsula and the Balearic Islands
Rota
Product enters on day X
Product is withdrawn on day X
9
CLH is a company committed to caring for the environment
CLH prevents 370,000 Tn of CO2 emissions a year
in Spain
CLH's Environmental • Implies active and responsible Management commitment to minimizing possible System was awarded environmental impacts associated with the ISO 14001 CLH's activity
certificate
Specific CO2 emissions by type of transportation
(kgCO2/Tn/300 Km)
12
10.6
9
• In 2015, CLH transported through its facilities:
Infrastructures adapted to handle and blend biofuels
7.2
6
– 0.97 million m3 of biodiesel + HVO
3
– 273,642 m3 of bioethanol in ETBE
0
– 44,402 m3 of bioethanol 8.0
1.7
Truck
Train
Barge
Pipeline
10
CLH provides emergency stocks storage services
CLH offers its facilities to operators as well as European countries' central institutions to store strategic reserves
Product delivery and withdrawal at any point in the system
Long‐term storage contracts (5 to 20 years) and flexible contracting volume with no full tank requirements
Online control of quantity and location of the stored stocks
Product quality guarantee
CLH is CORES’s main emergency stocks storage provider
11
CLH's value‐added logistics services adapt to the sector's current needs
Biofuel additivation
and blending
Control analysis in labs
1 Including quality additives to fuels to improve product quality or including fiscal tracers
1 Analyzing fuel and biofuel quality control in own labs
2
2
Blending biofuels with conventional fuels
Environmental testing of additives and materials: behavior and characterization
12
CLH provides storage and loading services at major Spanish airports
Logistics services available
Storage
Loading
Aviation fuels
Aviation lubricants
Logistic resources and infrastructure



CLH Aviación is present in 28 Spanish airports
Asturias
A Coruña
Bilbao
Santander
Santiago
Vigo
Pamplona
Girona
La Rioja
Zaragoza
El Prat
Barajas
Salamanca
Torrejón
Cuatro Vientos
Mahón
Palma
Manises
CLH has hydrant networks at the top 5 Spanish airports in terms of passengers
Son Bonet
Badajoz
Altet
Ibiza
Córdoba
Supplying airplanes via dispenser vehicles at airports where CLH has a hydrant network
Refueling units at all airports
San Javier
Sevilla
Málaga
Almería
Jérez
Airports with CLH services
13
CLH Group is fostering the internationalization of its logistics activities
Iran
Saudi
Arabia
U.A.E.
Yemen
Joint Venture in Oman to develop new infrastructures Ireland: construction and
operation of a new Fuel
Farm at the Dublin Airport.
Storage of Ireland
strategic reserves in Spain
United Kingdom: purchase of a pipeline network of more than 2.000 km. 14
The Muscat Sohar Product Pipeline Project (MSPP) in Oman will be a multi product pipeline of 280 km.
Asset description
 Pipeline: 280 km of pipeline
 Facilities : 1 storage facility  Services provided: Transportation and storage services  Products transported: • Kerosene • Diesel
 Airports supplied:  Muscat international airport  Joint Venture: Orpic Logistics Company (OLC) (A joint venture between Orpic and CLH)
15
The GPSS network is composed of 2.000 km of pipeline and 16 storage facilities
Asset description
 Pipeline: 2.000 km of pipeline
 Facilities : 16 storage facilities  Services provided: Transportation and storage services for civil and military clients
 Products transported: • Kerosene • Diesel
 Airports supplied: • Heathrow • Gatwick
• Stansted • Manchester
• Others: 11 regional airports and 28 military air bases supplied by third party trucks 16
Construction and operation of a new fuel farm at Dublin Airport
Main project data
Airport
 Investment: Over 40 million euros
 Operation of the Storage Facility under a
concession scheme for 20 years
 Construction of a new plant
 3 new tanks with a capacity of 5,000 cubic metres each
 Pumping station
 Into‐plane base
 Fueller vehicle parking area
 Fire‐fighting and safety system and other ancillary facilities
 Construction of a hydrant system connected to the storage terminal
17
Agenda
CLH's shareholder Activities and services
Logistic resources and infrastructure
Pricing system
Main figures
Future perspectives
18
CLH possesses modern logistics resources and infrastructures to offer its clients best‐in‐class services
Infrastructures
Storage facilities
Storage capacity
Pipelines
Airport facilities
Hydrants
40 storage facilities
8 million m3 storage capacity
4,020 km of pipelines
28 airport facilities
Logistics resources
Tanker ships
2 chartered tanker ships
Dispensers
49 aviation fuel dispensers
Refuelers
123 refueling units
Human resources
1,299 people with extensive experience and know‐how
5 hydrant networks at major airports
19
CLH’s logistics system guarantees product supply in the Spanish peninsula and the Balearic Islands
Atlantic Ocean
• A Coruña‐Puerto
•Gijón
•
•R. A Coruña
•Asturias
•A Coruña‐Bens
R. Somorrostro
•Santander
Zierbena‐Puerto Bilbao
Santurce
France
• Bilbao
•León
•Santiago
•Pamplona
•Rivabellosa
•Vigo
•Burgos
•La Rioja
•San Adrián
•Girona
•Zaragoza
•Palencia
•El Prat
•Barcelona
•Tarragona
•R. Tarragona
•Mafumet
•Ballobar
•La Muela
•Santovenia
•Ariza
•Barajas
•Salamanca
•R. Castellón
•Torrejón
•Mahón
•Cuatro Vientos
•Albuixech
•Mora
•Poblete
28 airport facilities
8 refineries connected to CLH's network
14 port facilities
•Sevilla
•Huelva
•R. Huelva
• Rota
•
•Manises
•Ibiza
•Almodóvar
•Adamuz
40 storage facilities
•Alcázar de San Juan
Porto Pi
•Son Banya
•Palma
•Altet
•Mérida
4,020 km. of pipelines
•Son Bonet
•Loeches
•Villaverde
•Badajoz
•Pallejá
•Lleida
•Alicante
•R. Puertollano
•San Javier
•Cartagena
•Córdoba
Mediterranean Sea
•R. Cartagena
•Coria
•Arahal
•Jerez
•Málaga
•R. San Roque
•San Roque
•Motril
•Almería
•Algeciras
20
CLH has advanced management and control systems
Customers
CLH
Customers
Satellite
Product output
Orders
Online information
• Applications that allow clients to:
– Load orders automatically – Real time monitoring
Control center
Logistics network
•Available immediately anywhere in CLH network
•One control center for the entire country
•Simplification of movements
•Multiproduct pipelines
•Integration of storage, transportation and management systems
• Lower cost for operators
• Efficient loading process
• Quality, quantity and fiscal guarantees
21
Agenda
CLH's shareholder
Activities and services
Logistic resources and infrastructure
Pricing system
Main figures
Future perspectives
22
CLH's logistics system is open to any operator, with objective, transparent and non‐discriminatory prices
Open access
• Any operator or company interested can access CLH services
Transparency
• One single origin‐destination price for all of the services offered by CLH: from the delivery of the product to CLH to its dispatch at its final destination
• All contracts communicated to the National Commission of the Markets and Competence (CNMC) who publishes all prices
Non‐discriminatory prices
Objective prices
• Prices, for the same service, are equal for all the operators
• Prices are established based on international references and respond to the service given
CLH system is the most open and transparent in Europe and contributes to competition in the sector
23
CLH includes different services in one origin‐destination shipment price
Reception
Delivery of products to CLH via tanker ship or through pipelines from the refinery or storage facility
+
Storage
+
Transportation
Storage rights included Transportation from the point of delivery to in the price:
CLH and the facility •6 days in facilities where the customer next to refineries
would like to withdraw •15 days in the rest of the product
facilities
Instantaneous service: Possibility of from the time of contracting additional delivery at the origin storage in facilities with the product can be enough capacity
withdrawn at the desired destination
+
Others
Loading tank trucks for shipment, quantity control and quality guarantee, insurances and access CLH's online systems
24
CLH transfers the continual improvement in its operations to end prices
CLH's services repercussion on end prices is less than 1.0%
CLH has maintained prices practically constant since 2005
CLH service price index
Index (Price2005 = 100)
%
1,5
150
100
100
Weight of CLH's logistics in gas oil A and gasoline 95 end prices in Spain
2015 118
Nominal terms
1,0
0.7
100
50
Real terms
0.8
0,5
0,0
0
2005
2015
Gas oil A
Gasoline 95
Real average price in 2015 for basic gasoline and gas oil logistics was €8.57/m3 (equal
to €0.86 c/liter)
25
Agenda
CLH's shareholder
Activities and services
Logistic resources and infrastructure
Pricing system
Main figures
Future perspectives
26
In 2015 CLH increased its EBITDA 7.4% vs. 2014
2015
2014
2015 vs. 2014
Operating revenue (€M)
653.1
575.4
13.5%
Operating expenses (€M)
402.6
342,2
17.7 %
Net operating result (€M)
250.5
233.2
7.4%
EBITDA (€M)
339.0
314.5
7.8%
Net profit (€M)
174.2
156.9
11.0%
27
In 2015 the activity shows a growth 5.2% vs. 2014
2015
2014
2015 vs. 2014
5,262.5
5,209.5
+1.0%
22,686.2
21,525.6
+5.4%
6,525.6
6,142.4
+6.2 %
Aviation fuel (Thousands m3)
5,805.4
5,426.3
+7.0%
Others (Thousands m3)
1,918.0
1,793.9
+6.9%
Total (Thousands m3)
42,197.7
40,097.7
+5.2%
Gas oil (Thousands m3)
Automotive gasoline (Thousands m3)
28
Agenda
CLH's shareholder
Activities and services
Logistic resources and infrastructure
Pricing system
Main figures
Future perspectives
29
CLH is a solid and responsible company with an attractive future outlook
Stable results with low risk levels
Sustained growth
High shareholder returns
Corporate Social Responsibility
•Quality services with competitive prices
•Solid financial position
•Investments in pipeline network and storage capacity
•New products (biofuels)
•International expansion
•Payout around 100% over the last few years
•Development and implementation of social responsibility policies
– Quality
– Environment
– Safety
– Social action
30
CLH will invest more than €640M between 2012 and 2018
Group CLH investments (€M)
Review
PE 2012‐2016
Period
2017‐2018
 Investments in Spain
294.7
113.7
 Investments in Oman
29.6
0.2
 Investments in United Kingdom
175.4
24.7
 Total
499.7
138.6
31
Thank you