27 Jul - 10 min read

2021 Half Year Results

2021 Half Year Results

Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56

This short form announcement is the responsibility of the Directors and represents only a summary of the information
contained in the full announcement. Consequently, it does not contain full or complete details. Any investment decisions
made by investors and/or shareholders should be based on consideration of the full announcement as a whole and
investors and/or shareholders are encouraged to review the full announcement.

The full announcement is accessible on the Company's website at https://investors.vivoenergy.com/results-centre and on
           the JSE website at https://senspdf.jse.co.za/documents/2021/jse/isse/VVOE/VivoHY21.pdf.
  Copies of the full announcement may be requested by contacting Investor Relations at investors@vivoenergy.com.

27 July 2021

                                                   Vivo Energy plc
                                                  (LSE: VVO & JSE: VVO)

                                               2021 Half Year Results

Vivo Energy plc, the pan-African retailer and marketer of Shell and Engen-branded fuels and lubricants, today
announces its consolidated financial results for the six months ended 30 June 2021.

Christian Chammas, CEO of Vivo Energy plc, commented: “Our strong performance during H1 2021
further demonstrates the strength of our business and the resilience of the African continent. There is real
momentum in the business and we delivered adjusted EBITDA of $220 million, 57% above H1 2020, and notably
4% above H1 2019. My thanks go out to all our teams for their efforts in staying safe whilst driving the business
forward in the face of the continuing uncertainty created by COVID-19. We have shown once again that we can
adapt to the changing operating environment whilst simultaneously supporting future earnings growth, opening
81 net new sites in the first half and continuing to broaden our customer offerings. As we move into the second
half we are watchful of the potential impacts of COVID-19, but still expect Retail to lead the recovery and are
demonstrating our confidence in our business by both investing in growth and delivering growing returns to

                                                                             Six-month       Six-month
                                                                           period ended    period ended
 ($ in millions), if not otherwise indicated                               30 June 2021    30 June 2020         Change
 Volumes (million litres)                                                         5,009           4,618            +8%

 Revenues                                                                         3,989           3,375           +18%

 Gross Profit                                                                       343             261           +31%

 Gross Cash Unit Margin ($/’000 litres)                                              77              65           +18%

 Gross Cash Profit                                                                  385             300           +28%

 EBITDA                                                                             219             136           +61%

 Adjusted EBITDA                                                                    220             140           +57%

 Net Income                                                                          76              13          +485%

 Diluted EPS (US cents)                                                               6              1           +500%
    Adjusted Net Income                                                              77              16          +381%

  Adjusted Diluted EPS (US cents)                                                     6              1           +500%
 Refer to the non-GAAP financial measures definitions and reconciliations to the most comparable IFRS measures on pages 11 and 12.

Financial Highlights
     • Revenues increased by 18% to $3,989 million (H1 2020: $3,375 million)
     • Gross cash profit was higher at $385 million (H1 2020: $300 million) as both volumes and unit margins
         rebounded from the initial impacts of COVID-19 lockdowns in H1 2020
     • Volumes sold rose 8%, as mobility restrictions eased compared to H1 2020
     • Gross cash unit margin of $77 per thousand litres (H1 2020: $65), remained strong
     • Adjusted EBITDA was $220 million, 57% higher than H1 2020, with EBITDA of $219 million
     • Net income increased to $76 million (H1 2020: $13 million)
     • Adjusted diluted EPS and basic headline EPS were both 6 US cents
     • Interim dividend per share of 1.7 US cents declared, in line with enhanced policy
     • Net debt / adjusted EBITDA ratio decreased to 0.77x at 30 June 2021 (FY 2020: 0.86x)

Strategic and Operational Highlights
     • Enhanced measures to keep our employees protected from COVID-19
     • Actively supporting the vaccination of our staff where possible
     • Maintained safety focus, with Total Recordable Case Frequency (TRCF) of zero
     • Expanded Retail footprint by a net total of 81 new retail service stations
     • Expanded Non-fuel retail offerings by a net total of 11 QSRs and 44 convenience retail shops
H1 2021 Review
The Group delivered a strong start to the year, with gross cash profit of $385 million, well ahead of H1 2020
and 10% ahead of H1 2019. This was driven by volume growth of 8% compared to H1 2020 and continuing unit
margin strength. The volume recovery was led by the Retail segment, with volumes 18% ahead of H1 2020, as
mobility restrictions eased and we saw the impact of the accelerated site roll-out programme and a range of
marketing initiatives. Commercial volumes were 4% behind H1 2020, but excluding the impact of the supply
contract that ended in Q3 2020, were 4% ahead. Lubricant volumes were also very strong, up 14% on both
H1 2020 and H1 2019. Unit margins of $77 per thousand litres benefitted from the positive supply and pricing
environment, particularly in Q1 2021, and from the strong performance in the Retail and Lubricants segments
creating a higher margin product mix.
The operational recovery drove a significant improvement in financial performance, with adjusted EBITDA of
$220 million, 57% ahead of H1 2020 and 4% ahead of H1 2019. This led to earnings per share of 6 US cents,
compared to 1 US cent in H1 2020 and in line with H1 2019. The Group also continued to deliver strong cash
flows, even with increased investments into the Retail network, delivering adjusted free cash flow of $90 million
during H1 2021.
COVID-19 Update
We continue to adapt to the uncertainties that COVID-19 has created across our operating countries with
demand for fuel continuing to recover and remaining very resilient during the period. During the period, many
of our markets experienced a further wave of infections, but unlike in Europe, the reported health impact
remained limited and our markets generally kept their economies open. Over the last six months, our host
governments have regularly evolved their mobility restrictions in response to changes in local case numbers,
preferring to use curfews of varying durations, and temporary restrictions on regional movements in countries
as their primary response. These measures naturally have an impact on mobility and therefore fuel demand but
are significantly less disruptive than the full lockdowns experienced in Q2 2020. Borders have, however, largely
remained closed which has both affected our Aviation business and meant that countries with large tourism
industries have seen a slower recovery in retail fuel demand.
In June, a number of our markets began to experience a third wave of rising case numbers and in response,
amongst other measures, some governments have once again extended curfews and closed schools. To date,
these actions have had a limited impact on the Group volumes in aggregate, although in Uganda, which imposed

a full lockdown until the end of July, volumes have been more materially affected. Our experiences over the past
year mean that as a business, we are well prepared for the continuing evolution of restrictions. We have
continued to take a proactive approach to managing our operations and working practices through COVID-19,
with a hybrid working system in a number of offices and depots and where possible, are actively supporting
vaccinations of our staff. We will provide support to the nascent vaccination programmes where we can as we
move through H2 2021, and are ensuring we are prepared for the recovery as restrictions evolve.

The Group continues to place significant focus on sustainability matters and our climate change response. Whilst
sustainability is already integrated into our operations, we took the decision to form an ESG and Climate
Management Committee, chaired by the CEO, to guide our future approach and support the deeper integration
of climate change considerations into the business. A key focus has been preparing for our first TCFD disclosures
at the end of the year. The Group continues to implement initiatives to reduce its environmental impact, and in
Ghana has signed a contract to retrofit 20 sites with solar power. These will both reduce operating costs and
provide over 500 tonnes of CO2 savings per annum once installed.
The Board has approved an interim dividend of 1.7 US cents per share amounting to approximately $21.5 million.
This is in line with the Group’s progressive dividend policy that was enhanced at the 2020 full year results. The
interim dividend is expected to be paid on 10 September 2021. Due to the pandemic, the Group did not declare
an interim dividend in respect of H1 2020, but declared a final dividend in respect of the full twelve months of

The Group had a strong first half, and we enter H2 2021 from a position of strength. As expected, performance
was led by the recovery in our Retail business as mobility restrictions eased across our markets, with margins
also returning towards more normalised levels in Q2 2021. We are navigating the uncertainty created by
COVID-19, and subject to any major change in mobility restrictions, our expectations for the full year remain
unchanged. As we move into the second half, we expect margins to complete their normalisation, with volumes
continuing their steady recovery, led by the positive momentum in the Retail segment. This has been supported
by the excellent progress we have made on network expansion and we now believe we will comfortably be at
the top end of our original guidance range of 90-110 net new sites by the end of the year. We will continue to
support our employees, customers and communities as we deliver against our key focus areas for the year in
order to capture the long-term structural growth opportunities in our markets and create sustainable value for
all of our stakeholders.


Results presentation
Vivo Energy plc will host an audio webcast for analysts and investors today, 27 July 2021 at 09.00 BST, which
can be accessed at https://webcasting.brrmedia.co.uk/broadcast/60ddc2aa0bb2806642d68f86

Participants wishing to ask a question should dial in to the event by conference call:
Dial-in:                    +44 330 336 9127 (UK) / +27 11 844 6054 (SA)
Participant access code:    227087

The replay of the webcast will be available after the event at https://investors.vivoenergy.com

 Media contacts:                                               Investor contact:
 Vivo Energy plc                                               Vivo Energy plc
 Rob Foyle, Head of Communications                             Giles Blackham, Head of Investor Relations
 +44 20 3034 3740 / +44 7715 036 407                           +44 20 3034 3735 / +44 7714 134 681

 rob.foyle@vivoenergy.com                                  giles.blackham@vivoenergy.com

 Tulchan Communications LLP
 Harry Cameron, Suniti Chauhan
 +44 20 7353 4200

JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

Notes to editors:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The
Group has a network of over 2,400 service stations in 23 countries operating under the Shell and Engen brands
and exports lubricants to a number of other African countries. Its retail offering includes fuels, lubricants, card
services, shops, restaurants and other non-fuel services. It provides fuels, lubricants and liquefied petroleum gas
(LPG) and solar energy solutions to business customers across a range of sectors including marine, aviation,
mining, construction, power, transport and manufacturing. The Company employs around 2,700 people and has
access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell and Vivo Lubricants
B.V., that sources, blends, packages and supplies Shell-branded lubricants.
Vivo Energy plc has a primary listing on the London Stock Exchange, and is a member of the FTSE 250 index,
with a secondary inward listing on the Johannesburg Stock Exchange.

For more information about Vivo Energy please visit www.vivoenergy.com

This announcement includes forward-looking statements. These forward-looking statements involve known and unknown
risks and uncertainties many of which are beyond the Company's control and all of which are based on the Directors'
current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of
forward-looking terminology such as: "believe", "expects", "may", "will", "could", "should", "shall", "risk", "intends",
"estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "anticipates" or "targets" or the negative
thereof, other variations thereon or comparable terminology, but are not the exclusive means of identifying such
statements. These forward-looking statements include all matters that are not historical facts. They appear in a number
of places throughout this report and include statements regarding the intentions, beliefs or current expectations of the
Directors or the Group concerning, among other things, the future results of operations, financial condition, prospects,
growth, strategies of the Group and the industry in which it operates. No assurance can be given that such future results
will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such
risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied
in such forward-looking statements.
Such forward-looking statements contained in this report are current only as of the date of this report. The Company and
the Directors do not intend, and will not update any forward-looking statements set forth in the document. You should
interpret all subsequent written or oral forward-looking statements attributable to the Group or to persons acting on the
Group’s behalf as being qualified by the cautionary statements in this report. As a result, you should not place undue
reliance on such forward? looking statements. This announcement may contain references to Vivo Energy’s website. These
references are for convenience only and Vivo Energy is not incorporating into this announcement any material posted
on www.vivoenergy.com.


Date: 27-07-2021 08:00:00
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