Investor Presentation September 2021
Important Notice
NON-GAAP MEASURE
ALTERNATIVE PERFORMANCE INDICATORS
With effect from Q4/19, the Group decided to update its accounting policy for the classification of derivative instruments in the reported results, classifying the realised and unrealised gains/losses on commodity and CO2 hedging derivatives within the Reported EBITDA, consistently with the entry of the purchase and sale of crude oil and products, against which they are realized and directly related, despite the recognition of the current value of the same as a counterpart of the income statement. In addition to the improvement objective mentioned above, this decision also stemmed from the options offered by IFRS 9.
In order to give a representation of the Group's operating performance that best reflects the most recent market dynamics, in line with the consolidated practice of the oil sector, the results at operating level and at the level of Comparable Net Result, non-accounting measures elaborated in this management report, are shown by evaluating the inventories on the basis of the FIFO method, however, excluding unrealized gains and losses on inventories deriving from scenario changes calculated by evaluating opening inventories (including the related derivatives) at the same unit values of closing inventories (when quantities rise in the period), and closing inventories at the same unit values of opening inventories (when quantities decrease in the period). Non-recurring items in terms of nature, materiality and frequency have been excluded from both the operating profit and the comparable net profit. The results thus calculated, which are referred to as "comparable", are not indicators defined
With effect from Q1/21 the Group decided to adopt a new segment reporting consistent with the change introduced by the transition from the CIP6 / 92 contract to the essentiality regime in the operating modes of the Sarlux plant, which takes into account the very high level of integration of the power plant with the refinery. The Group's activities are therefore represented in two segments: Industrial & Marketing, which includes integrated refining and power generation and Marketing, whose plants are highly integrated with refinery logistics. Also included in the segment are the activities previously included in the "Other Activities" segment, headed by the Group' companies Sartec and Reasar, whose technical services are also dedicated to refining. Renewable, which includes the activities previously included in the segment called "Wind", in line with the development plans in the field of photovoltaics and green hydrogen
In addition, in order to consistently represent the performance of the Group's activities, the historical financial results have been restated according to the new business segments identified as described above.
DISCLAIMER
Certain statements contained in this presentation are based on the belief of the Company, as well as factual assumptions made by any information available to the Company. In particular, forward-looking statements concerning the Company's future results of operations, financial condition, business strategies, plans and objectives, are forecasts and quantitative targets that involve known and unknown risks, uncertainties and other important factors that could cause the actual results and condition of the Company to differ materially from that expressed by such statements. This presentation has been prepared solely by the company.
SARAS - Investor Presentation | 2 |
Geographical footprint
Trading
Geneva, Switzerland
Headquarters
Milan, Italy
Storage
Arcola, Italy
Marketing Offices | |
Wholesale | Rome, Italy |
Madrid, Spain | |
Wind Farm | |
Ulassay, Italy | |
Industrial services | |
Industrial site | Assemini, Italy |
Sarroch, Italy |
Storage
Cartagena, Spain
SARAS - Investor Presentation | 3 |
Almost 60 years of stable strategic direction and committed shareholders
Saras history... | ... and shareholder structure1 | |||||
1962: Saras founded by
Mr. Angelo Moratti
'80s: Increase in conversion capacity
Early 2000s: Further investments in conversion and Power business
2006: Listing on Italian stock exchange
2013: Rosneft purchases a 21% stake in
Saras
Oct-14: merger by incorporation of
subsidiary Arcola in Saras
'70s: Third party Processing Agreements
'90s: Start up of Sartec and wholesale activity (marketing)
2005: Start of the Renewables business operation with the Ulassai wind farm
2007- 09: Upgrades for conversion, environmental and prod. quality purposes
Jul-13: Contribution in kind of Refining business from Saras SpA to its subsidiary Sarlux
Dec-14: Sarlux acquires majority of Versalis' petro-chemical plants in Sarroch
Angel Capital
10.005%
Management SpA
Stella Holding SpA 10.005%
Massimo Moratti Sapa 20.011%
Urion Holding Ltd
Jan-16: Saras Trading SA fully operational in
(Trafigura)
3.01%
Geneva
Feb-18: Chairman, Mr Gian Marco Moratti,
Jan-17: Rosneft sold the remaining 12%
stake in Saras
Platinum Investment
Management 5.21%
American Century
passed away
Aug-19: bunkering activities started in the Sarroch and Cagliari area
Inv. Management
1.47%
Oct-20: A plan for a leaner refinery adopted to mitigate the impact of the Covid-19 crisis
Mar-21: Renewable expansion plan announced with a target of up to 500MW of renewable capacity at 2024
Free Float | 50.289% |
1. As of September 1st, 2021
SARAS - Investor Presentation | 4 |
Strategy and Business Model
Maintain a leading position in the refining sector
Saras' unique business model has developed over time also in relation to
market scenarios and technological innovations
The size and complexity of the refinery is the result of a know-how developed in ˜60 years and of a path of continuous investment aimed at increasing capacity and efficiency, with constant attention to safety and respect for the environment
Integrated supply
chain
management
From Jan-2016 active in Geneva, one of the main international hubs for oil commodities trading, the subsidiary Saras Trading SA works in close cooperation with the refinery to better exploit its commercial strengths with market opportunities and all the synergies with the refinery, from technical process skills, to operational management expertise and planning skills
ContinuousDiversification
investments and | of supply and |
improvements | sale markets |
Sarroch refinery is capable of effectively processing different types of crude oils, including non- conventional ones. This is also eased by its geographical position in the middle of the Med where oil routes converge.
SARAS - Investor Presentation | 5 |
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Saras S.p.A. published this content on 08 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2021 13:51:02 UTC.