7.1 2020 consolidated financial statements and notes

 

Consolidated balance sheet

 

ASSETS

 

(in thousands of euros) Note 12/31/2020 12/31/2019
Non-current assets      
Intangible assets 4.3 31,000 31,464
Goodwill 4.2 1,219,849 1,245,020
Property, plant and equipment 4.1 1,148,302 1,067,911
Property, plant and equipment – right-of-use assets 4.1 178,542 182,622
Investments in joint ventures 9 316,602  
Other financial assets 4.5.1 72,408 169,493
Deferred tax assets 4.6 14,405 15,778
Other non-current assets 4.5.3 10,762 34,360
Total non-current assets (I)   2,991,870 2,746,648
Current assets      
Inventory and work in progress 4.7 333,377 526,628
Trade and other receivables 4.5.4 467,850 611,335
Tax receivables   33,463 21,871
Other current assets 4.5.2 20,472 16,598
Cash and cash equivalents 4.5.5 1,081,584 860,150
Total current assets (II)   1,936,746 2,036,582
Total group of assets for disposal (III) 3.3   963,856
TOTAL ASSETS (I + II + III)   4,928,616 5,747,086

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 206
   
 

EQUITY AND LIABILITIES

 

(in thousands of euros) Note 12/31/2020 12/31/2019
Shareholders’ equity – Group share      
Share capital   129,538 125,222
Share premium   1,593,902 1,480,132
Retained earnings   777,611 841,726
Total   2,501,051 2,447,080
Non-controlling interests   119,282 146,547
Shareholders’ equity (I) 4.8 2,620,333 2,593,627
Non-current liabilities      
Borrowings and financial debt 4.10.1 894,015 1,130,395
Lease liabilities 4.10.1 141,122 148,117
Deposit/consignment   127,894 122,335
Provisions for pensions and other employee benefit obligations 4.12 60,189 56,611
Other provisions 4.11 142,893 129,236
Deferred tax liabilities 4.6 51,103 52,001
Other non-current liabilities 4.10.3 3,975 4,993
Total non-current liabilities (II)   1,421,191 1,643,688
Current liabilities      
Borrowings and bank overdrafts (portion due in less than one year) 4.10.1 367,297 366,881
Lease liabilities (portion due in less than one year) 4.10.1 30,072 34,696
Trade and other payables 4.10.4 459,618 643,256
Current tax liabilities   22,819 25,894
Other current liabilities 4.10.3 7,286 17,582
Total current liabilities (III)   887,092 1,088,309
Total liabilities related to a group of assets for disposal (IV) 3.3   421,462
TOTAL EQUITY AND LIABILITIES (I + II + III + IV)   4,928,616 5,747,086

 

    207
   
 

Consolidated income statement

 

(in thousands of euros) Note Chg. 12/31/2020 12/31/2019
Sales of merchandise     2,889,661 3,974,959
Revenue from goods and services     1,012,342 1,253,528
NET REVENUE 5.1 -25% 3,902,003 5,228,487
Purchases consumed 5.2   (2,702,708) (3,949,764)
External expenses 5.4   (376,893) (420,496)
Payroll expenses 5.3   (200,948) (199,279)
Taxes     (115,867) (134,952)
EBITDA   -4% 505,587 523,996
Other operating income     1,196 8,654
Net depreciation and provisions 5.5   (140,058) (122,942)
Other operating income and expenses 5.6   (862) 1,940
EBIT   -11% 365,863 411,648
Other operating income and expenses 5.7   (77,919) (7,007)
Operating income before profit/loss from joint ventures   -29% 287,944 404,641
Share of net income from joint ventures     4,268  
Operating income after profit/loss from joint ventures   -28% 292,212 404,641
Income from cash and cash equivalents     2,597 5,414
Gross interest expense and cost of debt     (19,396) (22,614)
Interest expense on lease liabilities     (9,188) (7,552)
Cost of net financial debt 5.8 5% (25,987) (24,752)
Other financial income and expenses 5.9   (11,234) (9,919)
Income before tax   -31% 254,991 369,970
Income tax 5.10   (59,470) (75,503)
Net income from assets held for sale 3   101,383 31,795
Total net income   -9% 296,904 326,262
Net income, Group share   -9% 280,333 307,227
of which net income from continuing operations, Group share     180,046 279,257
of which net income from assets held for sale, Group share     100,287 27,970
Net income, minority interests   -13% 16,571 19,035
of which net income from continuing operations, minority interests     15,475 15,210
of which net income from assets held for sale, minority interests     1,096 3,825
Earnings per share (in euros) 5.11 -12% 2.75 3.12
of which earnings per share from continuing operations, Group share     1.77 2.84
of which earnings per share from assets held for sale, Group share     0.98 0.28
Diluted earnings per share (in euros) 5.11 -12% 2.72 3.09
of which diluted earnings per share from continuing operations, Group share     1.75 2.81
of which diluted earnings per share from assets held for sale, Group share     0.97 0.28

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 208
   
 

Statement of other comprehensive income

 

(in thousands of euros) 12/31/2020 12/31/2019
TOTAL CONSOLIDATED NET INCOME (I) 296,904 326,262
Foreign exchange differences (excluding joint ventures) (153,362) (33,754)
Hedging instruments 1,674 955
Income tax on hedging instruments (600) (318)
Items recyclable in P&L from joint ventures (2,528)  
Items that will subsequently be recycled in P&L (II) (154,816) (33,117)
of which items that will subsequently be recycled in P&L – Continuing operations (159,908) (36,058)
of which items that will subsequently be recycled in P&L – Assets held for sale 5,092 2,941
Actuarial gains and losses (3,339) (7,437)
Income tax on actuarial gains and losses 382 1078
Items not recyclable in P&L from joint ventures (113)  
Items that will not subsequently be recycled in P&L (III) (3,070) (6,360)
of which items that will not subsequently be recycled in P&L – Continuing operations (3,070) (6,030)
of which items that will not subsequently be recycled in P&L – Assets held for sale   (330)
COMPREHENSIVE INCOME FOR THE PERIOD (I + II + III) 139,018 286,785
Share attributable to the owners of the Group’s parent company 126,975 266,858
Share attributable to non-controlling interests 12,043 19,927

 

Consolidated statement of changes in shareholders’ equity

 

  Shares
outstanding
of which
treasury
shares
  Share
capital
Share
premium
Treasury
shares
Conso-
lidated
reserves and
earnings
Translation
differences
Shareholder’s
equity
attributable to
the owners of
the Group’s
Non-
controlling
Interests
(minority
interests)
Total
consolidated
shareholders’
equity
  (in number of shares)   (in thousands of euros)
SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2018 96,813,744 36,128   121,017 1,350,696 (1,677) 772,684 (45,926) 2,196,787 137,230 2,334,017
Impact of the first-time application of IFRS 16             (2,306)   (2,306) (13) (2,319)
SHAREHOLDERS’ EQUITY AS OF JANUARY 1 2019 96,813,744 36,128   121,017 1,350,696 (1,677) 770,378 (45,926) 2,194,481 137,217 2,331,698
Comprehensive income for the period             302,012 (35,154) 266,858 19,927 286,785
Change in interest                      
Share-based payments             5,382   5,382   5,382
Capital increase 3,363,688     4,205 129,436   408   134,049 3,900 137,949
Treasury shares   (14,890)       569 269   838   838
Dividend payment             (154,522)   (154,522) (14,497) (169,019)
Other changes             (6)   (6)   (6)
SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2019 100,177,432 21,238   125,222 1,480,132 1,109 923,915 (81,080) 2,447,080 146,547 2,593,627
Comprehensive income for the period             278,555 (151,580) 126,975 12,043 139,018
Change in interest             (665)   (665) (26,526) (27,191)
Share-based payments             8,799   8,799   8,799
Capital increase 3,453,245     4,316 113,770   397   118,483 (765) 117,718
Treasury shares   36,849       (925) (555)   (1,480)   (1,480)
Dividend payment             (197,965)   (197,965) (12,007) (209,972)
Other changes             (176)   (176) (11) (187)
SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2020 103,630,677 58,087   129,538 1,593,902 (2,034) 1,012,305 (232,660) 2,501,051 119,282 2,620,333

 

    209
   
 

Consolidated statement of cash flows

 

(in thousands of euros) 12/31/2020 12/31/2019
TOTAL CONSOLIDATED NET INCOME FROM CONTINUING OPERATIONS 195,521 294,467
NET INCOME FROM ASSETS HELD FOR SALE 101,383 31,795
Adjustments:    
Elimination of income of joint ventures (6,712) (4,170)
Elimination of depreciation and provisions 189,105 198,127
Elimination of profit and loss from disposals (84,172) (6)
Elimination of dividend earnings (578) (622)
Other income and expenditure with no impact on cash and cash equivalents(1) 54,304 3,962
CASH FLOW AFTER COST OF NET FINANCIAL DEBT AND TAX 448,851 523,553
Elimination of tax expenses 69,259 89,407
Elimination of cost of net financial debt 28,788 30,546
CASH FLOW BEFORE COST OF NET FINANCIAL DEBT AND TAX 546,898 643,506
Impact of change in working capital* 132,232 (78,097)
Tax paid (88,142) (67,494)
CASH FLOWS RELATED TO OPERATING ACTIVITIES 590,988 497,915
Impact of changes to consolidation scope (cash acquired – cash disposed) (29,955) 64,189
Acquisition of financial assets: retail & marketing division(2) 8,513 (264,131)
Disposal of financial assets: Rubis Terminal division(2) 175,360  
Investment in joint ventures (96,261)  
Acquisition of property, plant and equipment and intangible assets (245,396) (229,775)
Change in loans and advances granted (28,445) (419)
Disposal of property, plant and equipment and intangible assets 4,984 6,919
(Acquisition)/disposal of other financial assets (18,104) (139,126)
Dividends received 679 1,455
Other cash flows from investment operations(2) 232,489  
CASH FLOWS RELATED TO INVESTMENT ACTIVITIES 3,864 (560,888)

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 210
   
 

Consolidated statement of cash flows (continued)

 

(in thousands of euros) Note 12/31/2020 12/31/2019
Capital increase(6) 4.8 118,483 134,050
(Acquisition)/disposal of treasury shares   (925) 568
Borrowings issued 4.10.1 147,020 601,230
Borrowings repaid 4.10.1 (360,583) (313,696)
Repayment of lease liabilities 4.10.1 (38,188) (21,845)
Net interest paid(3)   (29,223) (28,641)
Dividends payable(6)   (197,965) (154,522)
Dividends payable to non-controlling interests   (11,732) (14,603)
Acquisition of financial assets: Rubis Terminal division   (1,654)  
Other cash flows related to financing operations   2,160 972
CASH FLOWS RELATED TO FINANCING ACTIVITIES   (372,607) 203,513
Impact of exchange rate changes   (35,127) (2,043)
Impact of change in accounting policies      
CHANGE IN CASH AND CASH EQUIVALENTS   187,118 138,497
Cash flows from continuing operations      
Opening cash and cash equivalents(4) 4.5.5 860,150 755,969
Opening cash and cash equivalents of groups of assets held for sale(5)   34,316  
Change in cash and cash equivalents   187,118 138,497
Reclassification of cash and cash equivalents in assets held for sale(5) 3.3   (34,316)
Closing cash and cash equivalents(4) 4.5.5 1,081,584 860,150
Financial debt excluding lease liabilities 4.10.1 (1,261,312) (1,497,276)
Cash and cash equivalents net of financial debt   (179,728) (637,126)

 

(1) Including change in fair value of financial instruments, goodwill (impairment see note 4.2), etc.
(2) The impact of changes in consolidation scope is described in note 3 to the consolidated financial statements.
(3) Net financial interest paid includes the impacts related to restatements of leases (IFRS 16).
(4) Cash and cash equivalents net of bank overdrafts.
(5) See note 3 on the impact of the application of IFRS 5 from December 31, 2019.
(6) Including the payment of the dividend in shares in the amount of €115 million.

 

* Breakdown of the impact of change in working capital:    
Impact of change in inventories and work in progress 4.7 188,794
Impact of change in trade and other receivables 4.5.4 133,147
Impact of change in trade and other payables 4.10.4 (189,709)
Impact of change in working capital   132,232

 

    211
   
 

Notes to the consolidated financial statements
for the year ended December 31, 2020

 

NOTE 1. General information

 

1.1 ANNUAL FINANCIAL INFORMATION

 

The financial statements for the year ended December 31, 2020 were finalized by the Management Board on March 10, 2021 and approved by the Supervisory Board on March 11, 2021.

 

The 2020 consolidated financial statements have been prepared in accordance with the international accounting standards issued by the IASB (International Accounting Standards Board) and adopted by the European Union. These standards include IFRS (International Financial Reporting Standards) and IAS (International Accounting Standards), as well as the interpretations of the IFRS Interpretations Committee.

 

1.2 OVERVIEW OF THE GROUP’S ACTIVITIES

 

The Rubis Group operates two businesses in the energy sector:

 

the retail & marketing activity, which specializes in the distribution of fuels (in gas stations or to professionals), lubricants, liquefied gases and bitumen;
   
the support & services activity, which houses all infrastructure, transportation, supply and services activities that support the development of downstream distribution and marketing activities.

 

Since April 30, 2020 (see note 3.2.2), the Rubis Terminal business has been consolidated in the Group’s financial statements using the equity method. The Rubis Terminal Infra joint venture specializes in the storage of bulk liquid products (petroleum products, chemicals and agrifood products) for commercial and industrial customers.

 

The Group is present in Europe, Africa and the Caribbean.

 

NOTE 2. Accounting policies

 

2.1 BASIS OF PREPARATION

 

The consolidated financial statements are prepared based on historical costs with the exception of certain categories of assets and liabilities, in accordance with IFRS rules. The categories concerned are specified in the notes below.

 

To prepare its financial statements, the Group’s Management must make estimates and assumptions that affect the book value of assets and liabilities, income and expenses, and the data disclosed in the notes to the financial statements .

 

The Group’s Management makes these estimates and assessments on an ongoing basis according to past experience as well as various factors that are deemed reasonable and that constitute the basis for these assessments.

 

The amounts that will appear in its future financial statements may differ from these estimates, in accordance with changes in these assumptions or different conditions.

 

The main estimates made by Group Management relate to the fair values of business combinations, the recoverable amount of goodwill, intangible assets and property, plant and equipment, changes in employee benefit obligations, the valuation of other provisions, and leases (term of the lease and borrowing rates, described in note 4.1.2).

 

The consolidated financial statements for the year ended December 31, 2020 include the financial statements of Rubis and its subsidiaries.

 

The financial statements of foreign subsidiaries are prepared in their functional currency.

 

The results and financial position of all Group subsidiaries whose functional currency differs from the reporting currency (i.e. the euro) are translated according to the following principles:

 

assets and liabilities are translated at the exchange rate prevailing as of the balance sheet date;
   
income and expenses are translated at the average exchange rate for the period;
   
these exchange differences are recognized in other comprehensive income, under “Foreign exchange reserves”;
   
cumulative translation differences are reclassified to profit or loss in the event of the disposal or liquidation of the investment to which they relate.

 

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 212
   
 

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the exchange rates prevailing as of the balance sheet date.

 

All significant transactions conducted between consolidated companies as well as internal profits are eliminated.

 

Foreign exchange differences arising from the elimination of transactions and transfers of funds denominated in foreign currencies between consolidated companies, are subject to the following accounting treatment:

 

foreign exchange differences arising from the elimination of internal transactions are recorded as “Foreign exchange differences” in shareholders’ equity and as “Non-controlling interests” for the portion attributable to third parties, thereby offsetting their impact on consolidated income;
   
foreign exchange differences on fund movements for reciprocal financing are classified under a separate heading in the consolidated statement of cash flows.

 

The consolidated financial statements are denominated in euros and the financial statements are presented in thousands of euros.

 

2.2 ACCOUNTING STANDARDS APPLIED

 

STANDARDS, INTERPRETATIONS AND AMENDMENTS APPLICABLE AS OF JANUARY 1, 2020

 

The following standards, interpretations and amendments, published in the Official Journal of the European Union as of the closing date, were applied for the first time in 2020:

 

Standard/Interpretation       Date of mandatory application
Amendments to IFRS 3   Definition of a business   January 1, 2020
Amendments to IFRS 16   Covid-19-related rent concessions   June 1, 2020
Amendments to IAS 1 and IAS 8   Definition of “material”   January 1, 2020
Conceptual framework   Revised conceptual framework for financial reporting
(replacing the 2010 framework)
  January 1, 2020
Benchmark interest rate reform (IBOR) – phase 1   Amendments to IFRS 9, IAS 39 and IFRS 7   January 1, 2020

 

The first-time application of these standards, interpretations and amendments did not have a material impact on the Group’s financial statements.

 

IFRS IC decision of November 2019 (IFRS 16)

 

The IFRS IC decision on the determination of the term of certain leases and the depreciation period for fixtures and fittings that cannot be separated from the leased assets has led the Group to review the term of certain leases. The impact on right-of-use assets and lease liabilities amounted to €12 million and was recognized as of January 1, 2020, insofar as it was not material on the 2019 balance sheet (opening and closing positions) or income statement.

 

STANDARDS, INTERPRETATIONS AND AMENDMENTS FOR WHICH EARLY APPLICATION MAY BE CHOSEN

 

The Group has not opted for the early adoption of the standards, interpretations and amendments whose application is not mandatory as of December 31, 2020 or which have not yet been adopted by the European Union.

 

Specific information on the Covid-19 pandemic

 

The Group’s performance was penalized by the Covid crisis in 2020. 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).

 

The impact on reported EBITDA and EBIT as of December 31, 2020 was estimated at -€63 million (compared with -€46 million estimated at the end of the first half). This estimate is calculated by comparing volumes achieved in 2020 with those achieved in 2019 over the period from April to December, independent of the growth initially forecast in the business plans.

 

The most severely affected activity was aviation, while the LPG activities (residential and agrifood) held up very well. The bitumen market in Africa was largely immune to the global pandemic.

 

The Rubis Terminal JV showed considerable resilience throughout the year, thanks in particular to the return of contango, which generated strong demand for storage capacity.

 

None of the Group’s subsidiaries has made use of government support schemes.

 

    213
   
 

NOTE 3. Scope of consolidation

 

  Accounting policies  

 

Since January 1, 2014, the Group has applied the new standards relating to the scope of consolidation (IFRS 10, 11, 12 and amended IAS 28).

 

Full consolidation

 

All companies in which Rubis exercises control, i.e. in which it has the power to influence the financial and operating policies in order to obtain benefits from their activities, are fully consolidated.

 

Control as defined by IFRS 10 is based on the following three criteria that must be met simultaneously in order to determine the exercise of control by the parent company:

 

the parent company has power over the subsidiary when it has effective rights that give it the ability to direct the relevant activities, i.e. activities that have a significant impact on the subsidiary’s returns. Power may be derived from voting rights (existing and/or potential) and/or contractual arrangements. The assessment of power depends on the nature of the relevant activities of the subsidiary, the decision-making process within it and the breakdown of the rights of its other shareholders;
   
the parent company is exposed or entitled to variable returns due to its ties with the subsidiary, which may vary depending on its performance;
   
the parent company has the ability to exercise its power to influence returns.

 

Joint arrangements

 

In a joint arrangement, the parties are bound by a contractual agreement giving them joint control of the Company. Joint control is deemed to exist when decisions regarding the relevant activities require the unanimous consent of the parties that collectively control the business.

 

Joint arrangements are classified in one of two categories:

 

joint operations: these are partnerships in which the parties exercising joint control over the business have direct rights to the assets, and obligations for related liabilities, of the business. Joint operations are accounted for according to the percentage interest held by the Group in the assets and liabilities of each joint operation.
   
joint ventures: these are partnerships in which the parties exercising joint control over the business have rights to the net assets of the enterprise. The Group accounts for its joint ventures using the equity method, in accordance with IAS 28.

 

3.1 SCOPE OF CONSOLIDATION

 

The consolidated financial statements for the year ended December 31, 2020 include the Rubis financial statements and those of its subsidiaries listed in the table below.

 

      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
Rubis  46, rue Boissière               
   75116               
   SIREN: 784 393 530  Parent  Parent  Parent  Parent   
Rubis Patrimoine  46, rue Boissière               
   75116 Paris               
   SIREN: 319 504 106  100.00%  100.00%  100.00%  100.00%  FC
Coparef  46, rue Boissière               
   75116 Paris               
   SIREN: 309 265 965  100.00%  100.00%  100.00%  100.00%  FC
Cimarosa  46, rue Boissière               
   75119 Paris               
   SIREN: 844 648 691  100.00%  100.00%  100.00%  100.00%  FC
RT Invest  33, av. de Wagram               
   75017 Paris               
   SIREN: 879 569 531  55.00%     55.00%     JV (EM)
Rubis Terminal Infra  33, av. de Wagram               
   75017 Paris               
   SIREN: 879 860 245  55.00%     55.00%     JV (EM)
Rubis Énergie  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 552 048 811  100.00%  100.00%  100.00%  100.00%  FC
Vitogaz France  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 323 069 112  100.00%  100.00%  100.00%  100.00%  FC

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 214
   
 
      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
Sicogaz  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 672 026 523  100.00%  100.00%  100.00%  100.00%  FC
Sigalnor  Route du Hoc               
   76700 Gonfreville l’Orcher               
   SIREN: 353 646 250  65.00%  65.00%  65.00%  65.00%  FC
Starogaz  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 418 358 388  100.00%  100.00%  100.00%  100.00%  FC
Norgal  Route de la Chimie               
   76700 Gonfreville l’Orcher               
   SIREN: 777 344 623  20.94%  20.94%  20.94%  20.94%  JO
Frangaz  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 491 422 127  100.00%  100.00%  100.00%  100.00%  FC
Vito Corse  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 518 094 784  100.00%  100.00%  100.00%  100.00%  FC
Rubis Restauration and  Tour Franklin               
Services  100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 793 835 430  100.00%  100.00%  100.00%  100.00%  FC
Vitogaz Switzerland AG  A Bugeon               
   CH – 2087 Cornaux               
   Switzerland  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energia Portugal SA  Avenida Conde Valbom 96-98               
   1050-070 Lisboa               
   Freguesia das Avenidas Novas               
   Concelho de Lisboa               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Rubis II Distribuição  Avenida Conde Valbom 96-98               
Portugal SA  1050-070 Lisboa               
   Freguesia das Avenidas Novas               
   Concelho de Lisboa               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Sodigas Seixal Sociedade  Avenida Vinte e Três de Julho 1833               
de Distribuição de Gàs  Flor da Mata               
SA  2840-263 Seixal               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Sodigas Açores  Avenida Vinte e Três de Julho 1833               
   Flor da Mata               
   2840-263 Seixal               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Sodigas Braga  Rua Rio Mau, N06               
Sociedade de Distribuição  4 700-760 Panoias               
de Gàs, SA  União de Freguesias de Merelim               
   (São Paio), Panoias e Parada de               
   Tibães, Concelho de Braga               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Spelta – Produtos  Rua Achada Diogo Dias, No. 2               
Petrolíferos, SA  9135-401 Santa Cruz, Funchal               
   Portugal  100.00%  100.00%  100.00%  100.00%  FC
Vitogas España SA  Avda. Baix Llobregat 1-3, 2A               
   Poligono Industrial Màs Blau II               
   08820 El Prat de Llobregat               
   Barcelona               
   Spain  100.00%  100.00%  100.00%  100.00%  FC
Fuel Supplies Channel  PO Box 85               
Islands Ltd (FSCI)  Bulwer Avenue, St Sampson               
   Guernsey GY1 3EB               
   Channel Islands  100.00%  100.00%  100.00%  100.00%  FC
La Collette Terminal Ltd  La Collette               
   Saint Helier               
   Jersey JE1 0FS               
   Channel Islands  100.00%  100.00%  100.00%  100.00%  FC

 

    215
   
 
      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
St Sampson Terminal Ltd  Bulwer Avenue, St Sampson               
   Guernsey GY1 3EB               
   Channel Islands  100.00%  100.00%  100.00%  100.00%  FC
Vitogaz Maroc  Immeuble No.7 Ghandi Mall               
   Boulevard Ghandi               
   20380 Casablanca               
   Morocco  100.00%  100.00%  100.00%  100.00%  FC
Lasfargaz  Immeuble No.7 Ghandi Mall               
   Boulevard Ghandi               
   20380 Casablanca               
   Morocco  82.89%  82.89%  82.89%  82.89%  FC
Kelsey Gas Ltd  1st Floor Standard Chartered Tower,               
   19 Cybercity Ebene               
   Republic of Mauritius  100.00%  100.00%  100.00%  100.00%  FC
Vitogaz Madagascar  122, rue Rainandriamampandry               
   Faravohitra – BP 3984               
   Antananarivo 101               
   Madagascar  100.00%  100.00%  100.00%  100.00%  FC
Eccleston Co Ltd  1st Floor Standard Chartered Tower,               
   19 Cybercity Ebene               
   Republic of Mauritius  100.00%  100.00%  100.00%  100.00%  FC
Vitogaz Comores  Voidjou BP 2562               
   Moroni               
   Union of the Comoros Islands  100.00%  100.00%  100.00%  100.00%  FC
Gazel  122, rue Rainandriamampandry               
   Faravohitra – BP 3984               
   Antananarivo 101               
   Madagascar  49.00%  49.00%  49.00%  49.00%  FC
Rubis Antilles Guyane  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 542 095 591  100.00%  100.00%  100.00%  100.00%  FC
Stocabu  L’avenir du Morne Caruel               
   Route des Abymes               
   97139 Abymes (Guadeloupe)               
   SIREN: 388 112 054  50.00%  50.00%  50.00%  50.00%  JO
Société Industrielle de Gaz  Voie principale ZI de Jarry               
et de Lubrifiants  97122 Bay – Mahaut (Guadeloupe)               
   SIREN: 344 959 937  100.00%  100.00%  100.00%  100.00%  FC
Société Anonyme de la  California               
Raffinerie des Antilles  97232 Lamentin (Martinique)               
(SARA)  SIREN: 692 014 962  71.00%  71.00%  71.00%  71.00%  FC
Société Antillaise des  Tour Franklin               
Pétroles Rubis  100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 303 159 875  100.00%  100.00%  100.00%  100.00%  FC
Rubis Guyane Française  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 351 571 526  100.00%  100.00%  100.00%  100.00%  FC
Rubis Caraïbes Françaises  Tour Franklin               
   100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 428 742 498  100.00%  100.00%  100.00%  100.00%  FC
Société Réunionnaise de  Tour Franklin               
Produits Pétroliers (SRPP)  100, Terrasse Boieldieu               
   92800 Puteaux               
   SIREN: 310 837 190  100.00%  100.00%  100.00%  100.00%  FC
Société d’importation et de  Tour Franklin               
distribution de Gaz liquéfiés  100, Terrasse Boieldieu               
dans l’océan Indien (Sigloi)  92800 Puteaux               
   SIREN: 310 879 598  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Bermuda Ltd  2, Ferry Road               
   Saint Georges’s GE 01               
   Bermuda  100.00%  100.00%  100.00%  100.00%  FC
Sinders Ltd  2, Ferry Road               
   Saint Georges’s GE 01               
   Bermuda  100.00%  100.00%  100.00%  100.00%  FC
Bermuda Gas & Utility  2, Ferry Road               
Company Ltd  Saint Georges’s GE 01               
   Bermuda  100.00%  100.00%  100.00%  100.00%  FC

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 216
   
 
      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
Rubis Eastern Caribbean  One Rubis Plaza Welches               
SRL  St James BB 23027               
   Barbados  100.00%  100.00%  100.00%  100.00%  FC
Rubis Caribbean  One Rubis Plaza Welches               
Holdings Inc.  St James BB 23027               
   Barbados  100.00%  100.00%  100.00%  100.00%  FC
Rubis West Indies Ltd  10 Finsbury Square               
   London EC2A 1AF               
   United Kingdom  100.00%  100.00%  100.00%  100.00%  FC
Rubis Guyana Inc.  Ramsburg, Providence               
   East Bank Demerara               
   Guyana  100.00%  100.00%  100.00%  100.00%  FC
Rubis Bahamas Ltd  H&J Corporate Services               
   Ocean Centre, Montagu               
   Foreshore, East Bay Street               
   PO Box SS 19084 Nassau               
   Bahamas  100.00%  100.00%  100.00%  100.00%  FC
Rubis Cayman Islands Ltd  c/o HSM Corporate Services               
   & Management Ltd.,               
   68 Fort Street,               
   George Town,               
   PO Box 31726               
   Grand Cayman KY1 – 1207               
   Cayman Islands  100.00%  100.00%  100.00%  100.00%  FC
Rubis Turks & Caicos Ltd  Caribbean Management               
   Services Ltd 122 Blue               
   Mountain Road               
   PO Box 127, Providenciales,               
   Turks and Caicos Islands TKCA 1ZZ  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Jamaica Ltd  236 Windward Road               
   Rockfort, Kingston 2               
   in the Parish of Kingston               
   Jamaica  100.00%  100.00%  100.00%  100.00%  FC
Easigas (Pty) Ltd  Gate 5, Hibiscus Road               
   Alrode 1451 Gauteng               
   South Africa  55.00%  55.00%  55.00%  55.00%  FC
Easigas Botswana (Pty) Ltd  Acumen Park, Plot 50370,               
   Fairground Office Park,               
   PO Box 1157, Gaborone               
   Botswana  55.00%  55.00%  55.00%  55.00%  FC
Easigas Swaziland (Pty) Ltd  PO Box 24 Mbabane H100               
   Swaziland 7441  55.00%  55.00%  55.00%  55.00%  FC
Easigas Lesotho (Pty) Ltd  2nd Floor, Metropolitan Life Building               
   Kingsway               
   PO BOX 1176 Maseru               
   Lesotho  55.00%  55.00%  55.00%  55.00%  FC
Ringardas Nigeria Ltd  49 Mamman Nasir Street               
   Asokoro Abuja               
   Nigeria  100.00%  100.00%  100.00%  100.00%  FC
European Railroad  Zone des Hydrocarbures               
Established Services SA  Port Autonome de Dakar Mole 8               
(Eres Sénégal)  BP 844 – Dakar               
   Senegal  100.00%  100.00%  100.00%  100.00%  FC
European Railroad  Zone Industrielle               
Established Services  du Port Autonome de Lomé               
Togo SA (Eres Togo)  Route C4 – BP 9124               
   Lomé Togo  100.00%  100.00%  100.00%  100.00%  FC
Eres Cameroun  Zone des Professions Maritimes               
   Base Oilfield               
   “Bolloré Transport               
   & Logistics Cameroun”               
   BP 3891               
   Douala – Cameroon  100.00%  100.00%  100.00%  100.00%  FC
Eres Libéria Inc.  1st Floor, City Builders Plaza,               
   Freeport Area Bushrod Island               
   Monrovia               
   Republic of Liberia  100.00%  100.00%  100.00%  100.00%  FC
REC Bitumen SRL  One Rubis Plaza Welches               
   St James BB 23027               
   Barbados  100.00%  100.00%  100.00%  100.00%  FC

 

    217
   
 
      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
Bahama Blue Shipping  One Rubis Plaza Welches               
Company  St James BB 23027               
   Barbados  100.00%  100.00%  100.00%  100.00%  FC
Pickett Shipping Corp.  Via España No.122               
   Torre Delta               
   Piso 14 Apartado 0823-05658               
   Panama               
   Republic of Panama  100.00%  100.00%  100.00%  100.00%  FC
Blue Round Shipping Corp.  Via España No.122               
   Torre Delta               
   Piso 14 Apartado 0823-05658               
   Panama               
   Republic of Panama  100.00%  100.00%  100.00%  100.00%  FC
Saunscape International Inc.  Via España No.122               
   Torre Delta               
   Piso 14 Apartado 0823-05658               
   Panama               
   Republic of Panama  100.00%  100.00%  100.00%  100.00%  FC
Biskra Shipping SA  Via España No.122               
   Torre Delta               
   Piso 14 Apartado 0823-05658               
   Panama               
   Republic of Panama  100.00%  100.00%  100.00%  100.00%  FC
Atlantic Rainbow Shipping  c/o Rosas Y Rosas               
Company SA  Via España No.122               
   Torre Delta               
   Piso 14 Apartado 0823-05658               
   Panama               
   Republic of Panama  100.00%  100.00%  100.00%  100.00%  FC
Woodbar Co Ltd  1st Floor Standard Chartered Tower,               
   19 Cybercity Ebene               
   Republic of Mauritius  85.00%  85.00%  85.00%  85.00%  FC
Rubis Énergie Djibouti  Avenue Georges Pompidou               
   BP 153               
   Djibouti               
   Republic of Djibouti  85.00%  85.00%  85.00%  85.00%  FC
Distributeurs Nationaux SA  2 rue Jean Gilles               
(Dinasa)  Route de l’aéroport Delmas               
   Port-au-Prince               
   Haiti  100.00%  100.00%  100.00%  100.00%  FC
Chevron Haïti Inc.  c/o Coverdale Trust Services               
   Limited               
   30 De Castro Street               
   PO BOX 4519               
   Road Town Tortola               
   British Virgin Islands VG 1110  100.00%  100.00%  100.00%  100.00%  FC
Société de Distribution  2 rue Jean Gilles               
de Gaz SA (Sodigaz)  Route de l’aéroport Delmas               
   Port-au-Prince               
   Haiti  100.00%  100.00%  100.00%  100.00%  FC
Terminal Gazier de  Route de Varreux               
Varreux SA  Port-au-Prince               
   Haiti  50.00%  50.00%  50.00%  50.00%  JO
RBF Marketing Ltd  236 Windward Road               
   Rockfort, Kingston 2 in the Parish               
   of Kingston               
   Jamaica  100.00%  100.00%  100.00%  100.00%  FC
Galana Distribution  1st Floor, Standard Chartered Tower,               
Pétrolière Company Ltd  19, Cybercity, Ebene,               
   Republic of Mauritius  100.00%  100.00%  100.00%  100.00%  FC
Galana Distribution  Immeuble Pradon Trade Centre,               
Pétrolière SA  Antanimena, 101 Antananarivo               
   Madagascar  90.00%  90.00%  90.00%  90.00%  FC
Galana Raffinerie Terminal  1st Floor, Standard Chartered Tower,               
Company Ltd  19, Cybercity, Ebene,               
   Republic of Mauritius  100.00%  100.00%  100.00%  100.00%  FC
Galana Raffinerie  Immeuble Pradon Trade Centre,               
et Terminal SA  Antanimena, 101 Antananarivo               
   Madagascar  90.00%  90.00%  90.00%  90.00%  FC
Plateforme Terminal  Immeuble Pradon Trade Centre,               
Pétrolier SA  Antanimena, 101 Antananarivo               
   Madagascar  80.00%  80.00%  80.00%  80.00%  FC

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 218
   
 
      12/31/2020  12/31/2019  12/31/2020  12/31/2019  Consolidation
Name  Registered office  % control  % control  % interest  % interest  method*
Rubis Middle East Supply  Unit No: AG-34-L,               
DMCC  AG Tower, Plot No: JLT-PH1-L1A               
   Jumeirah Lake Tower, Dubai               
   United Arab Emirates  100.00%  100.00%  100.00%  100.00%  FC
RAME Rubis Asphalt Middle  Unit No: AG-34-L,               
East DMCC  AG Tower, Plot No: JLT-PH1-L1A               
   Jumeirah Lake Tower, Dubai               
   United Arab Emirates  100.00%  100.00%  100.00%  100.00%  FC
Recstar Middle East DMCC  Unit No: AG-26-L, AG Tower,               
   Plot No: JLT-PH1-I1A,               
   Jumeirah Lake Tower, Dubai               
   United Arab Emirates  100.00%  100.00%  100.00%  100.00%  FC
Maritec Tanker  Office No G-501               
Management Private Ltd  Lotus Corporate Park, Off Western               
   Express Highway, Near Jaicoach               
   Signal, Goregaon (East)               
   Mumbai MH 400063               
   India  100.00%  100.00%  100.00%  100.00%  FC
Gulf Energy Holdings Ltd  Geminia Insurance Plaza,               
   Kilimanjaro Avenue, Upperhill               
   LR No 209/6523               
   PO Box 21707-00100               
   Nairobi, Kenya  100.00%     100.00%     FC
Rubis Energy Kenya PLC  Avenue 5 Building               
   Rose Avenue, Kilimani               
   PO Box 44202 or 30322, 00100               
   GPO               
   Nairobi               
   Kenya  100.00%  100.00%  100.00%  100.00%  FC
Kobil Petroleum Limited  c/o The Corporation Trust Company               
   Corporation Trust Center               
   1209 Orange Street               
   Wilmington, DE 19801               
   New Castle County               
   United States  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Ethiopia Ltd  Addis Ababa               
   Kirkos Sub City               
   Woreda 04 – House number 030               
   Ethiopia  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Uganda Ltd  Byumba Road               
   Gatsata               
   BP 6074 – Kigali               
   Rwanda  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Uganda Ltd  Plot No. 4 Wankulukuku Road               
   Nalukulango, Industrial Area               
   PO Box 27478 – Kampala               
   Uganda  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Zambia Ltd  Plot No. 1630               
   Malambo Road               
   PO Box 320089 – Lusaka               
   Zambia  100.00%  100.00%  100.00%  100.00%  FC
Rubis Energy Zimbabwe  Kudenga House               
(Private) Ltd  3 Baines Avenue, Harare               
   Zimbabwe  55.00%  55.00%  55.00%  55.00%  FC

 

* FC: Full consolidation; JO: joint operation; JV: joint venture (equity method); EM: equity method.

 

Rubis Antilles Guyane holds a minority interest in five economic interest groupings (EIG) in the French Antilles; as these entities are not material, they are not consolidated.

 

Rubis Energia Portugal currently holds non-material and non-consolidated investments.

 

In view of the political and monetary problems in Burundi, the Group has decided since 2019 not to consolidate Kobil Burundi due to the lack of effective control over this activity. The corresponding shares were fully impaired. The political and monetary situation did not improve in 2020.

 

    219
   
 

3.2 CHANGES IN THE SCOPE OF CONSOLIDATION

 

The changes in the scope of consolidation concerned business combinations as defined by IFRS 3 and the acquisition of groups of assets.

 

Only the most material transactions are set out below.

 

3.2.1 ACQUISITION DE GULF ENERGY HOLDINGS LIMITED

 

In December 2019, KenolKobil finalized the acquisition of Gulf Energy Holdings Limited, a company housing all the petroleum product distribution activities of Gulf Energy Limited.

 

The securities were included in “Other financial assets” in the amount of €139 million as of December 31, 2019. The final price was €129 million following the application of a price adjustment clause.

 

Contribution as of the date of first consolidation (in thousands of euros)  January 1, 2020
Goodwill  82,883
Fixed assets (including right-of-use assets)  28,679
Inventories  19,209
Trade and other receivables, and other current assets  14,267
Borrowings (including lease liabilities) and bank overdrafts  3,105
Provisions  473
Deferred tax liabilities  1,197
Trade and other payables  10,198

 

Goodwill amounted to €82.9 million, calculated as the difference between the final price paid and the net assets acquired. The fair value of the assets acquired and liabilities assumed was finalized within 12 months of the takeover, i.e. before December 31, 2020.

 

Gulf Energy’s contribution to the Group’s consolidated revenue amounted to €108 million.

 

3.2.2 DISPOSAL OF 45% OF RUBIS TERMINAL

 

On January 21, 2020, the Group and private equity fund I Squared Capital signed an agreement, effective April 30, under which I Squared Capital indirectly acquired 45% of Rubis’ 99.8% stake in Rubis Terminal.

 

Following the transaction, the Group still held nearly 55% of the share capital of Rubis Terminal.

 

The governance arrangements set out in the shareholders’ agreement entered into with I Squared Capital involve joint control. The Group’s interest in the Rubis Terminal joint venture has been accounted for using the equity method since April 30, 2020.

 

The transaction can be analyzed as the full disposal of Rubis SCA’s interest in Rubis Terminal, followed by the recognition of a new investment corresponding to the 55% interest kept by Rubis SCA.

 

In the year ended December 31, 2020, income from assets held for sale amounted to €101.4 million, corresponding to:

 

€83.2 million in capital gains on disposals, net of corporate income tax, commissions and other expenses;
   
€18.2 million reflecting Rubis Terminal’s earnings for the period from January 1, 2020 to April 30, 2020, recognized in accordance with the provisions of IFRS 5.

 

As part of the transaction, Rubis Terminal reimbursed the current account and part of the issue premium in a total amount of €232 million (see line “Other cash flows from investment operations” in the statement of cash flows).

 

As of April 30, 2020, the Group recognized the residual 55% interest retained in Rubis Terminal at its fair value of €218.7 million, presented in the “Investments in associates” line.

 

Income from investments in associates for the eight-month period between May 1 and December 31, 2020 is presented in the “Share of net income from joint ventures” line in the amount of €4.3 million.

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 220
   
 

3.3 GROUP OF ASSETS HELD FOR SALE

 

  Accounting policies  

 

In accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, a fixed asset (or group of assets and liabilities directly linked to it) is considered as held for sale if its book value will mainly be recovered through its sale rather than through continued use. To meet this condition, the asset must be available for immediate sale and its sale must be highly probable. Such assets or groups of assets held for sale are measured at the lower of their book value and their estimated selling price less selling costs. A discontinued operation or an operation classed as held for sale is considered as significant for the Group if it was a cash-generating unit (CGU) and is either sold or classed as an asset held for sale. The income statement and balance sheet items relating to these discontinued operations or activities held for sale are presented on specific lines of the consolidated financial statements.

 

As of December 31, 2019, activities held for sale corresponded to the Rubis Terminal business.

 

In accordance with IFRS 5:

 

the groups of assets and liabilities held for sale were presented on separate lines of the balance sheet as of December 31, 2019;
   
the net income of the Rubis Group reported for the year ended December 31, 2019 includes the net contribution of the Rubis Terminal entities on a single line of the income statement, “Net income from assets held for sale”;
   
the contribution to the Group’s consolidated earnings and cash flows up to the date of loss of control is presented below.

 

INCOME STATEMENT ITEMS – ASSETS HELD FOR SALE
(RUBIS TERMINAL CONTRIBUTION, JANUARY 1 TO APRIL 30, 2020)

 

      12/31/2020       12/31/2019  
(in thousands of euros)     (4 months)       (12 months)  
Sales revenue     104,711       305,688  
EBITDA     25,321       88,120  
EBIT     25,206       49,874  
Share of net income from joint ventures     2444       4,170  
Cost of net financial debt     (2,801)       (6,045)  
Corporate income tax     (6,261)       (13,904)  
Net income     18,185       31,795  

 

CONSOLIDATED CASH FLOWS – ASSETS HELD FOR SALE

 

      12/31/2020       12/31/2019  
(in thousands of euros)     (4 months)       (12 months)  
Cash flows related to operating activities     38,165       76,016  
Cash flows related to investing activities     (56,043)       (69,897)  
Cash flows related to financing activities     (16,885)       (15,788)  
Change in cash and cash equivalents     (34,316)       (9,277)  

 

    221
   
 
NOTE 4. Notes to the balance sheet
 

 

4.1  PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS

 

4.1.1 PROPERTY, PLANT AND EQUIPMENT

 

    Accounting policies    
       
  The gross amount of property, plant and equipment corresponds to its acquisition cost.  
       
  Maintenance and repair costs are recorded as expenses as soon as they are incurred, except for those, posted as fixed assets, incurred to extend the useful life of the property.  
       
  Depreciation is calculated according to the straight-line method for the estimated useful life of the various categories of fixed assets, as follows:  
       
    Duration  
  Buildings 10 to 40 years  
  Technical facilities 10 to 20 years  
  Equipment and tools 5 to 30 years  
  Transportation equipment 4 to 5 years  
  Facilities and fixtures 10 years  
  Office equipment and furniture 5 to 10 years  
  Borrowing costs are included in fixed asset costs when significant.    

 

No indication of impairment was identified as of December 31, 2020, as property, plant and equipment continued to be used throughout the year.

 

Gross value   Change     Reclassifi- Translation  
(in thousands of euros) 12/31/2019 in scope Acquisitions Disposals cations differences 12/31/2020
Other property, plant and equipment 286,175 1,258 15,807 (4,416) 4,319 (13,164) 289,979
Prepayments and down payments on property, plant and equipment 1360   6,079 (287) 595 (663) 7,084
Assets in progress 132,054   104,521 (544) (74,835) (3,223) 157,973
Machinery, equipment and tools 1,566,219 12,807 59,660 (29,390) 50,368 (45.034) 1,614,630
Land and buildings 530,233 12,164 25,838 (9,246) 17,078 (12,497) 563,570
TOTAL 2,516,041 26,229 211,905 (43,883) (2,475) (74,581) 2,633,236

 

Depreciation   Change     Reclassifi- Translation  
(in thousands of euros) 12/31/2019 in scope Increases Disposals cations differences 12/31/2020
Other property, plant and equipment (146,388) (2,405) (14,458) 3862 358 5,302 (153,729)
Facilities and equipment (1,051,003) (5,272) (68,055) 27,813 513 20,812 (1,075,192)
Land and buildings (250,739) (947) (15,239) 8,826 (870) 2,956 (256,013)
TOTAL (1,448,130) (8,624) (97,752) 40,501 1 29,070 (1,484,934)
NET VALUE 1,067,911 17,605 114,153 (3,382) (2,474) (45,511) 1,148,302

 

The main changes in scope correspond as follows:

 

the acquisition of Gulf Energy in the gross amount of €25.5 million and €8.6 million in depreciation;
   
the downward revision of the fair value of the assets acquired and liabilities assumed of the KenolKobil Group in the gross amount of €0.8 (adjustment made during the price allocation period).

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 222
   
 

4.1.2  RIGHT-OF-USE ASSETS (IFRS 16)

 

Accounting policies
 
IFRS 16 defines the right of use conveyed by a lease as an asset which represents the lessee’s right to use the underlying asset for a given period. This right-of-use asset is recognized by the Group as of the effective date of the lease (when the asset becomes available for use).
The Group adopted the following exemptions under the standard:
   leases with a remaining term of less than 12 months did not give rise to the recognition of an asset or liability;
   leases related to low-value assets were excluded.
The discount rates used to value rights of use were determined based on the Group’s incremental borrowing rate, plus a spread to reflect the specific economic environments of each country. These rates are defined according to the asset service lives.
The right-of-use asset is measured at cost, which includes:
   the initial amount of the lease liability;
   the advance payments made to the lessor, net of any benefits received from the lessor;
   the significant initial direct costs incurred by the lessee for the conclusion of the lease, i.e. the costs that would not have been incurred if the lease had not been entered into;
   the estimated cost of any dismantling or restoration of the leased asset in accordance with the terms of the lease, where appropriate.
The depreciation is booked on a straight-line basis over the term of the lease and is recognized as an expense in the income statement. The right-of-use asset is impaired if there is any indication of loss in value.
The lease term is the non-cancelable period during which the lessee has the right to use the underlying asset, after taking into account any renewal or termination options that the lessee is reasonably certain to exercise.
Fixed assets financed through finance leases (signed before January 1, 2019) are now presented as “Right-of-use assets”. The corresponding liability is now recognized as a “Lease liability”.

 

Gross value   Change     Translation  
(in thousands of euros) 12/31/2019 in scope(1) Acquisitions(2) Disposals differences 12/31/2020
Other property, plant and equipment 358   311   (40) 629
Transportation equipment 47,773   10,023 (6,837) (3,437) 47,522
Machinery, equipment and tools 19,314   1,070 (1,325) 733 19,792
Land and buildings 144,490 12,126 26,567 (2,397) (11,071) 169,715
TOTAL 211,935 12,126 37,971 (10,559) (13,815) 237,658

 

Depreciation   Change     Translation  
(in thousands of euros) 12/31/2019 in scope Increases Disposals differences 12/31/2020
Other property, plant and equipment (175)   (197) (15) 23 (364)
Transportation equipment (8,193)   (20,984) 4,097 (392) (25,472)
Machinery, equipment and tools (6,312)   (2,418) 1,304 999 (6,427)
Land and buildings (14,633) (486) (14,505) 1,251 1,520 (26,853)
TOTAL (29,313) (486) (38,104) 6,637 2,150 (59,116)
NET VALUE 182,622 11,640 (133) (3,922) (11,665) 178,542

 

(1) Including €12.1 million related to the consolidation of Gulf Energy.
(2) Including a gross amount of €12.2 million relating to the application of the IFRIC decision of November 2019.

 

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4.2 GOODWILL

 

Accounting policies
 
Business combinations prior to January 1, 2010
Business combinations carried out prior to January 1, 2010 have been recognized according to IFRS 3 unrevised, applicable from that date. These combinations have not been restated, as revised IFRS 3 must be applied prospectively.
On first consolidation of a wholly controlled company, the assets, liabilities and contingent liabilities have been valued at their fair value in accordance with IFRS requirements. Valuation discrepancies generated at that time have been recorded in the relevant asset and liability accounts, including the non-controlling interests’ share, rather than solely for the proportion of shares acquired. The difference between the acquisition cost and the acquirer’s share of the fair value of the identifiable net assets in the acquired company is recognized in goodwill if positive and charged to income under “Other operating income and expenses” if negative (badwill).
Business combinations subsequent to January 1, 2010
IFRS 3 revised and IAS 27 amended modified the accounting policies applicable to business combinations carried out after January 1, 2010.
The main changes with an impact on the Group’s consolidated financial statements are:
   recognition of direct acquisition costs in expenses;
   revaluation at fair value through profit and loss of interests held prior to the controlling interest, in the case of an acquisition via successive securities purchases;
   the possibility of valuing non-controlling interests either at fair value or as a proportional share of identifiable net assets, on a case by case basis;
   recognition at fair value of earn-out payments on the takeover date, with any potential adjustments being recognized in profit and loss if they take place beyond the assignment deadline;
    adjustments of the price recorded on acquisitions made by the Group are recognized in cash flows from investing activities on the same basis as the initial price.
In accordance with the acquisition method, on the date of takeover, the Group recognizes the identifiable assets acquired and liabilities assumed at fair value. It then has a maximum of 12 months with effect from the acquisition date to finalize recognition of the business combination in question. Beyond this deadline, adjustments of fair value of assets acquired and liabilities assumed are recognized directly in the income statement.
Goodwill is determined as the difference between (i) the transferred counterpart (mainly the acquisition price and any earn-out payment excluding acquisition expenses) and the total non-controlling interests, and (ii) the fair value of assets acquired and liabilities assumed. When positive, this difference is recognized as an asset in the consolidated balance sheet or, when negative (badwill), under “Other operating income and expenses”.
After the adoption of the revised IFRS 3, an option exists for the measurement of non-controlling interests as of the acquisition date: either at the fraction they represent of the net assets acquired (the partial goodwill method) or at fair value (the full goodwill method). The option is available on a case-by-case basis for each business combination.
For the purpose of allocating goodwill generated during the various business combinations, the groups of cash-generating units (CGUs) used by Rubis are:
   the retail & marketing business (Europe);
   the retail & marketing business (Africa);
   the retail & marketing business (Caribbean);
   the support & services business.
This allocation was calculated based on the General Management’s organization of Group operations and the internal reporting system, enabling not only business oversight, but also monitoring of the return on capital employed, i.e. the level at which goodwill is monitored for internal management purposes.

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 224
   
 
Accounting policies (continued)
 
Goodwill impairment
Goodwill is subject to an impairment test at least once per year, or more frequently if there are indications of a loss in value, in accordance with the requirements of IAS 36 “Impairment of assets”. Annual tests are performed during the fourth quarter.
Impairment testing consists of comparing the recoverable amount and the net carrying amount of the CGU or group of CGUs, including goodwill. A CGU is a uniform set of assets (or group of assets) whose continued use generates cash inflows that are largely independent of cash inflows generated by other groups of assets.
The recoverable value is the greater of the fair value less costs of disposal and value in use.
Value in use is determined on the basis of discounted future cash flows.
The fair value minus disposal costs corresponds to the amount that could be obtained from the disposal of the asset (or group of assets) under normal market conditions, minus the costs directly incurred to dispose of it.
When the recoverable value is lower than the net book value of the asset (or group of assets), an impairment, corresponding to the difference, is recorded in the income statement and is charged primarily against goodwill.
Impairments recorded in relation to goodwill are irreversible.

 

    Change in Translation    
(in thousands of euros) 12/31/2019 scope differences Impairment 12/31/2020
Retail & marketing business (Europe) 266,731 320 (120)   266,931
Retail & marketing business (Africa) 493,701 83,011 (61,586)   515,126
Retail & marketing business (Caribbean) 370,531   6,864 (46,000) 331,395
Support & services business 114,057   (7,660)   106,397
GOODWILL 1,245,020 83,331 (62,502) (46,000) 1,219,849

 

Changes in the scope of consolidation correspond to the first-time consolidation of Gulf Energy (see note 3.2.1). The finalization of purchase price allocations in 2019 did not give rise to any material adjustments.

 

An impairment loss of €46 million was recognized as of June 30, 2020, reflecting changes in the political and economic environment specific to Haiti in the first half of 2020, which could have a lasting impact on the Group’s operating conditions in that country.

 

Impairment tests as of December 31, 2020

 

As of December 31, 2020, Rubis systematically tested all of its goodwill.

 

Recoverable amounts are based on the value in use calculation. Value in use calculations are based on cash flow forecasts using the financial budgets approved by Management at year-end, covering a period of three years. The main assumptions made concern volumes processed and unit margins. Cash flows beyond the three-year period are extrapolated at a growth rate of 2%.

 

The business plans drawn up by Management reflect the economic and financial effects of the pandemic. 2021 is again seeing a greater or lesser decline in volumes depending on the business. The following years reflect a level of performance generally comparable with that observed before the health crisis.

 

The discount rate used, based on the concept of weighted average cost of capital (WACC), reflects current market assessments of the time value of money, and the specific risks inherent in each CGU.

 

The following discount rates are used:

 

CGU group 2020 rate 2019 rate
Retail & marketing business (Europe) 4.8% 5.4%
Retail & marketing business (Africa) between 4.8% and 12.7% between 4.9% and 13.6%
Retail & marketing business (Caribbean) between 4.8% and 14.1% between 4.9% and 14.0%
Support & services business between 4.8% and 8.7% between 4.9% and 9.3%

 

Tests as of December 31, 2020 did not reveal any additional impairment compared with June 30, 2020.

 

Sensitivity of recoverable amounts as of December 31, 2020

 

A 1-point increase in the discount rate or a 1-point reduction in the growth rate would not result in the impairment of goodwill as of December 31, 2020.

 

Similarly, a 5% reduction in discounted future cash flows would not call into question the findings of the tests as of December 31, 2020.

 

Finally, a one-year delay in the assumptions made by the Group as regards the end of the pandemic (return to normal) does not call into question the findings of the tests as of December 31, 2020. The value in use of the groups of CGUs tested would remain higher than their net carrying amount.

 

    225
   
 

4.3  INTANGIBLE ASSETS

 

Accounting policies
 
Intangible assets are accounted for at their acquisition cost.
Intangible assets with a finite useful life are amortized according to the straight-line method for the periods corresponding to their expected useful lives and are subject to an impairment test whenever events or changes in circumstances indicate that their book values may not be recoverable.
In accordance with IFRS 15, the costs of obtaining contracts related to liquefied gas distribution in France are capitalized as “Other intangible assets” and depreciated over the average useful life of the corresponding contracts (10 years).

 

Gross value   Change     Reclassifi- Translation  
(in thousands of euros) 12/31/2019 in scope Acquisitions Disposals cations differences 12/31/2020
Other concessions, patents and similar rights 23,751 1,270 1830 (277) (159) (1,209) 25,206
Leases 1,687         (149) 1,538
Other intangible assets 36,720   2,503 (8,740) 294 (714) 30,063
TOTAL 62,157 1,270 4,333 (9,017) 135 (2,072) 56,807

 

Depreciation   Change     Reclassifi- Translation  
(in thousands of euros) 12/31/2019 in scope Increases Disposals cations differences 12/31/2020
Other concessions, patents and similar rights (9,622) (1,075) (1,551) 141   987 (11,120)
Other intangible assets (21,071)   (2,355) 8,493   246 (14,687)
TOTAL (30,693) (1,075) (3,906) 8,634   1,233 (25,807)
NET VALUE 31,464 195 427 (383) 135 (839) 31,000

 

Changes in the scope of consolidation relate to the consolidation of Gulf Energy.

 

4.4  INVESTMENTS IN ASSOCIATES

 

Information about non-controlling interests, investments in joint operations and investments in joint ventures is given in notes 7 to 9.

 

  RUBIS – 2020 UNIVERSAL REGISTRATION DOCUMENT 226
   
 

4.5  FINANCIAL ASSETS

 

Accounting policies
 
Financial assets are recognized and measured in accordance with IFRS 9 “Financial instruments”, which replaces IAS 39 “Financial instruments: recognition and measurement”.
Classification and measurement
Financial assets are recognized in the Group balance sheet when the Group is a party to the instrument’s contractual provisions.
The classification proposed by IFRS 9 determines how assets are accounted for and the method used to measure them. Financial assets are classified based on two cumulative criteria: the management model applied to the asset and the characteristics of its contractual cash flows.
Based on the combined analysis of the two criteria, IFRS 9 distinguishes between three categories of financial assets, which are specific to each category:
•  financial assets at amortized cost as of the closing date;
•  financial assets at fair value through other comprehensive income;
•  financial assets at fair value through profit or loss.
Financial assets at amortized cost mainly include bonds and negotiable debt securities, loans and receivables.