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TRANSCRIPT
Public
Follow OnCorporation
Follow OnPrivatization
Energy Transition
Turnaround
Equity Story Vibra
Vibra
State BR Privatization(BR Estatal)
most traded companieson Bovespa, above competitorsTOP 20
Success in follow-on completes VIBRA's path to becoming a corporation
Follow-On 2021
R$ 23 Bil in
investor demand,
2x the available lot
Highest offer
of shares in Brazilin 2021 up to now
+100 investors participated
in the offer,
with 5 placing orders >R$1B
28.75%
Free float
71.25%
@ IPO
62.5% 37.5%
@ Follow-on 2019
100% 0%
@ Follow-on 2021
True Corporation after Follow-On 2021 +40%
Continuous increase in liquidity
Volume (MM shares) Amount Traded (R$MM)
foreign shareholder base
Free float Free float
30 days before Follow
on 2021
Pre-Follow on
2019
After Follow on
2021
Pre-Follow
on 2019
30 days before
Follow on 2021After Follow
on 2021
Qty. of Shareholders
Total Shares %
67,963
2,621
Pessoa Física Pessoa Jurídica
57%43%
Nacional Estrangeiro
Individuals Companies
ForeignerNational
+R$4.6B +R$115/m³
Vibra Ebitda with robust growth
in recent years
Vibra has closed an efficiency gap and now has the largest unitary Ebitda margin in the
market
1.6x
Room forexpansion
with greaterleverage
EBITDA LTM (2T21)
EBITDA UNIT (2T21)
NET DEBT/EBITDA (AUG 21)
Absolute leaderin the Brazilian
market
MARKET SHARE (JUN 21)
28.9%
Vibra has posted consistent results, with vibrant Ebitda growth and low leverage
VIBRA HAS NOT ONLY CLOSED THE EFFICIENCY GAP OF THE PAST, BUT HAS BECOME A BENCHMARK
20182017 2019 2020
2.6
1H21
3.1 3.2
3.74.6
+24%
1H212017 2018 2019 2020
+55%
Adjusted Ebitda LTM(R$B)
Ebitda Margin(R$/m³)
Unit expenses(R$/m³)
2017 202020192018 1H21
-39%
Net Debt/Ebitda
2017
0.9
1.4
1H212018 20202019
1.31.2
1.4
Previous max leverage: 1.5x
Max approved: 2.5x
Space for organic expansion and M&A
To get here, we adopted different drivers to create value
Jul
F-On
2019 2020 2021
A NEW VALUE PROPOSITION
Integration ofBR Mania with Delivery
Platforms
LAME JV
Integration of payment platformsAgreement with Ame
Lubricant value creation program
Launch of Hangarar, new
aviation app
ITEMS FROM THE BALANCE
SHEET
Sale of CDGN
Acquisition of70% of Targus
Sale of Vibra's stake in Asfalto Stratura
Sale of Vibra's stake in thermoelectric power
plants
Debt term increased from 1.0 years
to 3.4 years
Follow-on of the remaining Petrobras
stake
F-On
OPERATIONALEFFICIENCY
Early settlementof Amazonas Energia's
R$1.4 billion debt
New procurement and hiring process
Vibra becomes the leadingfuel importer in Brazil in 2020
Final installment ofdebt of R$4.8B from
Eletrobras
Introductionof Zero-Based
Budgeting
New B2B2C/B2B pricing processes
Annual savings of R$200M from changes in
health plans
New model for contracting road
transport
New Pension Plan approved by the
boardNew Organizational Structure
Management of Expenses 2019
• Expressive cost efficiency gap compared to peers
• Rising cost, year-on-year, as a major drain on earnings
Management of Expenses 2020
•ZBB 2020: Contribution of BR$ 200+ million to Vibra earnings in 2020 alone, closing the cost efficiency gap
•Beginning of phase two of the ZBB seeking on more savings opportunities by comparing Vibra activities to market benchmarks
Management of Expenses 2021/22
• Over 200 action plans in progress, and more than 50% have now been completed
• ZBB under the Finance Department's leadership, with ZBB monitored monthly by the Executive Board (cascade report from the "Package Owners" to the "Sponsor Directors" and the Board)
TotalUtilitiesCorporateMaintenanceAviationBusiness
IT and Telecom
Equity Operations& Logistics
Operations& Logistics
- Others
Marketing Packaging and
Materials
Services Engineering OM Total Personnel- Direct
Personnel- Indirect
R$ 250MM+ of additional cost reduction, full on in 2022
• 2,840 cost centers, 1,591 ledger accounts, 3,557 contracts, 8,368 suppliers and all policies related to
expenses for: travel, telephone, laptops, taxi, food, benefits were evaluated. Over 1,500 hours of meetings
were held with more than 350 users and package owners
2019 Procurement and Contracting
Process
• Bidding in accordance with the Law of State-owned Companies
• 10-Step Bidding Process• 4-6 months to complete• Open to any supplier• Limited ability to
negotiate prices
2020 Procurement and Contracting
Process
• Simplified bidding process with reduced steps
• Completed on average in 41 days• Focus on top quality suppliers• Greater bargaining power - Better
technique, quality and price• Annual savings exceeding R$ 60 million• Total contracted value of
B$ 900 million
2021/22 Procurement and
Contracting Process
• Additional reduction in average term to 32 days
• Projected savings of around R$100 million• Total contracted value estimated at R$ 1,100
million• Savings on vehicle leasing contracts and
adoption of applications for sales force exceeding R$ 5 million
• Creation of catalogs for low value purchases
1Q19
1.9%
2Q19
14.4%
2020
8.3%
2Q21
11.4%
Average saving
180
2019 2020 2021
Average contraction time (days)
Transportation of Products 2019
• 157 Haulers
• Contracting processes similar tomid activities companies (under the Law of State-owned Companies)
• Low level of optimization
• Limited ability to negotiate prices and other contractual conditions
Transportation of Products 2020
• "Clusterization" and reduction in the number of freight haulers (light products) from 157 to 57
• Improved price and better quality, including enhanced on-board fleet technology
• Focus on top quality suppliers
• Annual savings of R$ 150+ million
Transportation of Products 2021/22
• Advancement of drivers for other modes (river transport) and products (QAV, OC, Lubricants)
• Implementation of the "Control Tower" to increase efficiency, logistical control and real-time security management
• Additional savings of R$ 95 million/year
contraction
lots
P3
P7
P1
P4
P6
P5
P254
RS+
SC
SC+
PR
MS+SP
MT
AC+RO
AM+RR
PA
PA+
AP
BA+SE
MG+
GO MG
AL+PE+PB
CE+RN
SP coast
RJ+ES
MA+PA
+TO+PI
contraction
lots
17
perimeters
of "Supply"
7 perimeters of
"Deliveries"
16
Supply
Deliveri
es
Sourcing 2019• Imports with marginal
contribution in volumes
• Imports with marginal contribution for earnings
• Ethanol procurement via reverse auction, with an absence of negotiations leading to low competitiveness in product costs
Sourcing 2020• Largest fuel importer in the country
• Shift in the ethanol sourcing process, adopting best market practices
• Recurring contribution of Sourcing to Vibra's results
• Increased domain of import activities, with direct sourcing of ships
• Logistic capacity and scale enable higher efficiency imports, capturing arbitrage opportunities
Sourcing 2021/22• Expansion of scope for coke and
fuel oil
• Development of derivatives trading activity, positioning Vibrato handle the distribution market
• Expanding imports of basic lubricating oils
Jan/2
0
Aug/2
0
22.8%
May/2
0
17.0%
23.8%
Mar/
20
June/2
0
Apr/
20
July
/20
Sep/2
0
Oct/
20
Nov/2
0
Dec/2
0
Jan/2
1
Mar/
21
Feb/2
1
Fev/2
0
May/2
1
3.2%
June/2
1
26.8%
17.7%16.4%
22.5%
12.0%14.4%
18.4%
8.9%
18.1%16.6% 16.2%
13.4% 12.8%
6.7%
Apr/
21
Imports/Sales(Gasoline and Diesel)
People Management 2019
• Hiring through competitive exam
• Approval by the Governance of compensation of the Executive Board
• High and mostly fixed compensation
• Complexity in the suitability of the workforce (under the State-owned Law)
• Rigid organizational structure
• High level of outsourcing of core activities and total number of employees (5,500+) well above peer numbers
People Management 2020
• New organizational structure that is flexible and follows the best market practices
• Workforce trimmed to around 3,400 employees, with an Optional Dismissal Program for employees with public exams and elimination of outsourcing for core activities
• Rollout of compensation practices in line with best market practices, including compensation for Senior Management
• Total compensation includes fixed salary and variable short and long-term incentives
• Annual savings of R$ 650+ million
People Management
2021/22
• Development of a new Organizational Culture designed to motivate the workforce towards the desired behaviors at Vibra
• Recruiting and retaining talent
• Definition of Purpose and Principles
• Introduction of new corporate brand
• Implementation of the PDCA methodology in Managing Goals
Portfolio Management 2019
• Portfolio Management Limited by the Law of State-Owned Companies
• Supervision by TCU
• Sale of assets/M&A process in 10 steps
• 12-14 months to complete
• After privatization, sale of CDGN
Portfolio Management 2020
• Sale of Stratura Asfaltos
• Acquisition of Targus
• Creation of ES Gás
Portfolio Management 2021/22
• JV with Americanas for the Convenience business is in the final stage of approval by Cade
• Sale of Vibra's stake in thermoelectric power plants
• Sale of Brasil Carbonos
• Approval of the Ethanol Trading JV
• Trading Structuring for derivatives
• Demobilization of 250 gas station assets, with a partner recently selected and in the final stage of due diligence for subsequent allocation of the properties in a fund, in addition to the direct sale of stations to resellers (6 stations sold so far in 2021)
• 25 logistical assets with potential for demobilization or sharing. Advanced negotiations for 3 assets, with the potential to generate R$130MM by the end of 2021, with an asset being traded and R$22MM in cash available
• ESGAS included in privatization program by the ES state government and an indication to be divested by Vibra in 2022
Financial Management 2019
•After privatization, negotiation for early repayment of Amazonas Energia's debt of R$ 1.4 billion
•Distribution of a total of R$ 1.15 billion in dividends and IOC for 2019
Financial Management 2020
• Liability Management with debt restructuring, lengthening the term from 1 to 3.4 years, diversifying creditors and reducing costs
• Additional funding of R$ 2 billion to reinforce cash during the Covid 19 crisis
• Distribution of dividends and IOC reaching R$2.3 billion related to 2020
• Approval of a new leverage range, which could reach 2.5x (Net Debt/LTM EBITDA)
• Recovery of tax credits totaling R$ 1.4 billion (PIS and COFINS overpaid between April of 2012 and February of 2020 due to the inclusion of ICMS in the base calculation of those taxes)
Financial Management 2021/22
• Receipt of the final payment of Eletrobras' debt, coming to R$ 4.8 bi
• Approval of the Share Buyback Program at a total of R$1.5 billion and 18-month term
• Distribution of early remuneration to shareholders in the form of IOC for 2021, reaching R$ 554 million
• Recuperation of tax credits reaching R$ 280 in 2H21 as a result of our success in ICMS-ST reimbursements
Improvement in the Debt Profile (R$MM)
Debt Amortization Schedule
Average Debt
Term: 1.5 years
4Q19
Average Debt
Cost: 6.0%
3.5 years
2Q21
5.5%
4Q19 2Q21
4.145
131
628162 277 456
2020 2021 2022 2023 2024 2025+
0
1,080 1,1771,011
1,826
3,130
2021 2022 2023 2024 2025 2026+
Health and Pension Plans 2019
• Self-managed health plan boasting high costs due to reduced scale and rules that are misaligned with market practices
• A pension plan with a significant defined benefit component, featuring an actuarial deficit with the need for equalization by sponsor and participants
• High actuarial liabilities, with interest expenses on liabilities heavily impacting the Company's Ebitda
Health and Pension Plans 2020
• Migration of the workforce to a market Health Plan by the end of 2020, resulting in a significant R$ 200 million/year reduction in the Company's expenses
• Early settlement of the actuarial deficit of the pension fund that the Company is responsible for
Health and Pension Plans 2021/22
• Structuring and internal approval of the new defined contribution FlexPrev Pension Plan
• New Plan has been structured and announced to the workforce, and is under analysis by PREVIC
• Enrollments are expected to begin in Jan/22
• Potential reduction of actuarial liability
2019
Pension
2020
5,211
Health
1,870183
-64.1%
64% reduction in actuarial liabilities
2,361
2,850
1,687
We are present in the lives of millions of customers across the country
30 million unique customers carry out
transactions throughout our service station chain each month
8,000+ service stations in +1,800
municipalities, in 27 states and FD, with an expectation for
600 more gas stations in 5 years
80 out of 100of the biggest companies in Brazil
38% of the fuel
used by companies in the country
+19,000 consumption pointsin customer companies
90 airports
R$1.1B/year transacted
in our convenience stores
7 out of 10 commercial flights
in Brazil are fueled by Vibra
Lubrax products for more than
80,000 customers across the country
Public
...but what brought us here doesn't guarantee tomorrow's success
50 GtCurrent policies1
57 Gt
Gap
1. Assuming implementation of Paris Agreement commitments 2. Other: Agriculture, Garbage 3. International aviation and shipping;
4. Land Use, Change in land use and Forestry. Sources: IEA, World Energy Outlook; WRI; IMF; World Bank; Climate Action Tracker
Climate change is a global concernand Vibra wants to play an active role in the solution
Scenario of 2°C
23 Gt
Global greenhouse gas emissions (Gt CO2e)
20152010 2050
Shifting the energy matrix to less polluting sources to curb climate change
Other Energies
Energy generation
Buildings
Industry
Transport
Bunkers3
Industrial processes
Others2
LULUCF4
Vibra will play an active role in Brazil's energy transition
Global trends
of consumers want companies to incorporate environmental thinking into products, services and operations
80%+
Growth in green bondsBetween 2015 and 2019, resulting in a market of $257.7B10x
Investors turning to investments for climate change resilient companies
Assets under management earmarked for ESG investment estimated at one third of the total under management for 2025
$53T+
Countries hoping to target net zero1; others are also expected to commit between now and COP26120
1. Climate Ambition Alliance Sources: United Nations; Nielsen; Luc Hoffman Institute, National Centers for Environmental Information; World Economic Forum; TFCD Status report 2020
Increase of carbon prices European carbon prices rose from EUR 8 in 2017 to EUR 54 in 20206x
Consumer, investor and corporate attitudes towards sustainable options
Global trends
The commitment to lower emissions is gaining speed
20122005 2006 200920082007 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020
28.8%
Fortune 500 Global Company with Carbon Neutral Commitments (%)
Global trends
1 in 4 Fortune 500 companies have made voluntary commitments to reduce emissions
Energy transition to electricity and renewable sources
World energy consumption by source - IEA (Mtoe - %)
FOSSIL FUELS REMAINS RELEVANT, BUT WILL GRADUALLY LOSE THEIR WEIGHTING IN THE WORLD ENERGY MATRIX BY 2040
Increase in environmental awareness
Regulations and public policies
Pressure from investors in ESG
16%
28-32%
54%
18%
16%
2019
54%
2010
20%
17%
52%
2030e
23-25%
10-12%
17-18%
47-48%
13-14%
38-42%
2040e
9.7
11%
9.4 – 10.1
2000
16%
12%
13%16-18%
6.8
8.6
8.9 – 10.4
Fossils Natural Gas Biofuels Electricity
Note: Fossil fuels include derivatives and coal. Source: IEA World Energy Outlook 2020, Vibra Analysis
Energy transition is a global reality and the world is heading towards a scenario with less reliance on fossil fuels
Global trends
EV's1 are expected to represent 75%of global sales by the end of 2030
108% vs. 27% higher growth than supermarkets over the last 5 years
Major retailers moving into convenience
CONVENIENCE
MOBILITY
...and accelerating changes in mobility and consumption: future gas stations and conveniences will havenew formats
+4,000 new public EV charging stations per day
Private cars will account for less than half of global urban travel by 2035
Consumer’s search for convenience (delivery and last-mile services)
GAS STATION OF THE FUTURE
Global trends
Public
In Brazil, energy transition will be influenced by the local climate, such as policies on electricity, gas and biofuels
Opening of the market for natural gas, complementary supply with renewable sources and increased energy security
Policies to encourage the use of biofuels (RenovaBio) and strengthening agribusiness
Enormous national potential for the use ofrenewable sources such as wind, solar and biomass
Continued liberalization of the market for energy, expanding the scope of the free market
Brazil Trends
18%
6%
28%
48%
7%
2010
28%
46%
0.24 – 0.27
2019
21-23%
30-33%18%
5-7%
40-41%
2030e
24-26%
34-39%
4-6%
30-36%
0.15
2040e
23%3%
56%
2000
20%0.21
0.230.23 – 0.25
17-18%
18%
13%16% 12%
52%
16%
54%
2000
16%
54%
23-25%
10-12%
47-48%
28-32%
13-14%
38-42%
16-18%
2040e2019 2030e
17%
11%
2010
20%
6.8
8.6
9.7 8.9 – 10.49.4 – 10.1
Fossils Natural Gas BiofuelsEnergy consumption by source
Total consumption in the world (Btoe - %) Consumption in Brazil (Btoe - %)
Note: Fossil fuels include derivatives and coal. Source: IEA World Energy Outlook 2020, Vibra Analysis
Electricity
Electricity and biofuels will gain ground, but fossil fuels will remain relevant up to 2040
ENERGY TRANSITION IN BRAZIL WILL ALSO RAMP UP. ENERGY CONSUMPTION CONTINUES TO CLIMB IN BRAZIL, EVEN WHILE STAGNATING WORLDWIDE
Brazil Trends
49
(46%)
55
(60%)
62
(72%)
33
(36%)
21
(24%)
2019 2030
45
(42%)
11
(10%)
2040
8793
107
Oil
Bioenergy
Electricity¹
Other Fuels
10 (13%)
9 (12%)
32
(42%)
82
18
(23%)
7 (10%)
2019
8 (10%)
33
(40%)
21
(26%)
12 (15%)
7 (8%)
37
(40%)
2030
7 (8%)
27
(29%)
3 (3%)
12 (13%)
6 (6%)
2040
76
92
Renewables¹Oil
Bioenergy
Electricity
Natural gas
Coal
15%
2019
18%
3%
17%18%
61%
8%2%
68%
6%
5%2%
2030
39
6%
71%
3%
2040
42
50
Renewables¹Oil
Bioenergy
Electricity
Natural gas
Coal
Transport Industrial
Commercial, Services
and Residential
Final consumption of energy - Mtoe (% total)
Electricity and biofuels will gain ground, but fossil fuels will remain relevant up to 2040
Brazil Trends
Derivatives drop in importance, but remain significant, with +30% of consumption in 2040
Faster decline in dirtier fuels (e.g.: OC)
Biofuels will gain momentumand become the main source for transportation in 2040 with ~50% of consumption
Gas will gain prominence, with 15% of industrial consumption by 2030 and great off-grid potential for Vibra.
Electricity will go from 20% to ~30% of consumption in 2040 with significant weighting in the industrial sector
Green H2 in early discussions. But comparative advantages can make Brazil a platform for green H2 development
EVs will become more relevant, representing +30% of sales and a +10% share in the fleet as of 2030
Our vision is one of relevant impacts on fuel distribution in Brazil...
Brazil Trends
Public
We're now beginning to define what the Vibra of the future will be
Big bets on the energy transition
Our positioning in the energy market
Facilitating elements: ESG, digitalization and culture
Perspective of creating long-term value
In light of the transforming market, we're now beginning to define what the Vibra of the future will be
To successfully navigate a transitioning market, we have decided where Vibra should position itself
Strengthening the current portfolio
Distributionof fuels
Lubricants
Aviation
Convenience
Trading of ethanoland derivatives
Saleand trading of electric energy
Gradual bets on spaces for innovation
Hydrogen and fuel cells
New types of biofuels and e-fuels
New solutions for mobility
Spaces of lesser interest
Production of fossil fuels and traditional biofuels
Scaled generation and distribution of electricity
Infrastructure for natural gas transport and distribution
New vectorsof growth
Off-grid and on-grid offer of natural gas and biomethane
Reinforcing the position in electrical energy - Self-production and GD
EV charging solutions
Relationship program
Expanded convenience
Big bets on the energy transition
Focus on the customer, tracking
their energy preferences and
challenges
Progressive bets in new energies with room to
accelerate/break through the uncertainties of the
energy transition
Neutral sales channel: provider of energy solutions among
competitive sources, regardless of asset
investments
Resilience to the uncertainties of an energy transition through a focus on customers, sales neutrality and progressive bets
Big bets on the energy transition
Vibra's integrated offering of the future provides an enhanced value proposition for customers
CLIENTS
• Digital relationship platform• Means of Payment
Relationship ecosystem
Convenience• BR Mania Chain
• JV LASA
Infrastructure/Logistics• Logistics and warehousing• Business enabler
(ex: Self-production and Distributed generation)
Solutions• Energy transition
services and other services for B2B clients
• Chain of service stations• EV Charging• Last-mile logistics• Advanced mobility
Mobility
Energy
• Liquid fuels• Natural Gas• Electricity• Derivatives and Ethanol Trading
Our positioning in the energy market
Public
+2%¹of VMM increase above market
1. Considering market growth of 20% 2. Considers lower average performance for incoming service stations 3. Does not consider improvements in the EBITDA/replacement profit ratio (i.e. costs) (corresponds to a ~1.2–1.5B gain in gross profit of repositioning) Source: Vibra Data; BCG Analysis
R$0.9B(+59%)Gain in
annual EBITDA3
1.8 p.p.(1.16)
Increase of
market share
R$ 30(+36%)
Increase in EBITDA/m³
Revised B2B2C value proposition has a potential upside of R$0.9B in annual EBITDA by 2025
+850delta of service stations in the network2
Main drivers impacted byvalue proposition (variations 20-25)
20 %increase from 11% to 20% penetration of additives
Public
...by improving key value drivers, promoting greater flow to points and greater consumer awareness
Legend: Current value (2020) Ambition value (base scenario)1. 2019 VMM was 217; 20% market growth has VMM to 236 2. 240 for existing stations, 200 for new stations (which have a 2-year ramp up)
Gain in Convenience
Relationship Program
Gain in Fuels
Penetrationof additives Size of the chain
Average Monthly Volume (m³)
Active users
Earningsmonthly
Gross Margin franchise
BR Mania Penetration
1971
2362
11%
20%8,022
8,872
14%
21%85k
140k35%
45%
1M
8M
Integrated implementation of the value proposition will enhance Vibra's perception of the future by customers and resellers
Vibra ecosystem• Cashback in fuels• Financial services• Mobility services
New channel of Businesses• CRM of Service Stations• Order handling
End Client Resellers Vibra
Convenience store• New assortment and food service• Fair prices
Quality service
Competitive price
Proper level of service with clear expectations
Economic equation• Higher VMM and % additives• Convenience income
Customer knowledgevia relationship program
Greater reseller satisfactionwith improved economic equation and business channel
Focus on strategic segments, allowing for greater operational efficiency
R$0.9BAdditional EBITDA
23%
25%Market Share
81
111EBITDA/m³
197
236
VMM
11%
20%
% Additives
14%
21%
% BR Mania
1M
8M
# of Users
B2B2C value proposition helps BR stem recent market share losses and reach a new position
Bridge mkt. share 20-25
Source: BR Data; BCG Analysis
0,9% 1,0%
0,2%
1,6%
2025 (full proposal)Chain expansion
23.1%
Consolidated 2020 Market growth (lag)
22.2%
"As is" baseline - 2025 Relationship program Convenience
24.9%
+ 1.8
p.p.
0.2%
0.9%
22.2%
1.0%
1.6%
Value proposition helps Vibra to stem market share losses that have occurred over the last few years
2024E
23.9%
1Q20 2023E
23.9%
2Q213Q20 2022E 2025E
23.7%23.8%
2Q20
21.9%
2021E1Q21
22.9%
24.9%
4Q20
Fuel market share – Reseller market (%)
Public
Value proposition also affects three value drivers for the reseller and their relationship with Vibra
Improving the economic equationof Vibra and the reseller through a number of value drivers (ex: VMM, % additives, resale margin and additional earnings)
Greater reseller satisfaction leading to lower renovation and re-branding costs and lower store churn
Vibra will focus on the most relevant segmentsin an attempt to reduce strategic and high-volume churn, with an increased effort into higher value relationships
Value proposition leads to an improved economic equation for the reseller
Fuels1
Increased VMM, resale margins and mix of additives
Convenience storeIncreased profitability in convenience
30kR$/month/store
63kR$/month/store
90kR$/month/service station
126kR$/month/service station
1. Gross margin on resale2. Gross margin on convenience stores, considering 35% current and 45% in the target via a LASA partnership, including stores that convert the format from standard to premium
Initiatives focused on ramping up penetration and improving BR Mania's offer to resellers, consumers and BR...Current challenges
nd hurdles
Store formatsNew store formats that can be adapted to the needs of the service station, the region and the retailer: from full service stores to stand-alone stores for greater brand penetration and attractiveness to the reseller
New image and new offer to the consumerNew image introduced in Jul/20, which included an overhaul of the store format with streamlined layout, simplified operation, review of the product mix and inclusion of a new 'food service' product, creating greater appeal to the final consumer and higher margin for the reseller (18% sales growth compared to previous results)
JV with Americanas S.AA new company that will combine the strength of the partners, adding greater scale and a supply and logistics structure to physical and digital stores, improving the economic equation for resellers and providing operational support in the activities, including access to technologies and innovation
Operating modelsExpansion of operational models to be implemented in stores (e.g. proprietary operation, master-franchise, professional franchises)
Key Initiatives
Low attractiveness to the franchisee
Low penetration of convenience
Complexity in operation
ConvenienceSolutions
Value to the consumer Value to the franchisee
...allow the stores to be adapted to the resale and to the consumer
Increased attractiveness to the consumerthrough the new image, portfolio of offerings (e.g. via food service,
assortment), pricing and adapting formats to consumer needs
1
Differentiated sourcing with lower costs to the franchisewith integration to the americanas sa supply chain (differentiated commercialconditions: “americanas sa purchase cost”)
2
Professionalization of the supply chainthrough the introduction of digital platforms such as market place offered via theamericanas sa partnership and improvements in the level of service
3
Introduction of omnichannel and higher brand valuefor the digital sale of products, with the support of innovation and technology offeredthrough a americanas sa partnership and a new image with greater appeal
5
Training individual stores and greatersupport for franchiseswith assistance from LASA to define the assortment and display of products, includingtraining of employees and support in defining the ideal store model
4
Key Initiatives...Convenience Solutions
~140kR$/mo
Turnover at BR Mania stores in 2026, versus
R$ 85k/month current
45%
Gross margin from the convenience store to the reseller, versus
35% current
Note: Figures subject to revision upon completion of the LASA agreement
~21%
Store Penetration in 2026 and 27% in 2030 vs.
14% current (~2,000 stores)
New store types
New image and offer
JV with Americanas S.A.
New operating models
Public
New Models
PREMIUM
Complete food service-intensive store..
For locations with a potential for high revenue and with a vocation for food outside the home.
STANDARD
Full service standard store. Layout recommended for most of the chain. Higher return with less investment. Our "done right basic". "Worlds" to plug in accordinglywith the general public.
COMPACT
Store with an optimized assortment and a simplified food service offering. Ideal for smaller spaces. Easy to operate and low cost.
PIT STOP
Format in partnership with Ambev focused on beverages, tobacco and snacks. Does not have food service. Suitable for cities in the interior with less than 300K inhabitants.
AUTONOMOUS
Technology-intensive store. Autonomous system that allows self ordering through totems, tablets or apps. Recommended for major hubs.
VENDING
Hybrid store offering products through vending machines. Low cost to operate. For large centers with logistical feasibility. Only 1employee per shift.
+ 60m²
+ 30m² + 20m²
25m²
+ 60m²+ 100m²
R$ 180,000
R$ 100,000
R$ 60,000
R$ 120,000
R$ 60,000
R$ 40,000
Restructuring of store profiles enables increased adaption to the needs of each service station
Note: Container-type stores as a construction alternativeExpected turnover (R$/month/store) Store footage
Partnershipdifferentiators
Supply Chain Solution•LASA transfer of the economic benefit of the supply chain to the JV• Commitment to supply the "LASA procurement cost" and direct logistics• Plug & Play operation
1
Retail expertise and own-store operation• Solution for own store operation in high-potential locations for uninterested resellers• Know-how in assortment, pricing, promotions, etc.
2
Access to the LASA Universe• AME/B2W commercial partnerships• Access to digital platforms, logistics solutions, payment methods and systems
3
Alliance Project - JV
Partnership withLASA via JV tocreatecompetitivenessin supply chain & store operation
+ 1,100 stores+ R$1,100M selloutFranchisees
+ 50 units+ R$60M revenueOwn stores
BP Project Aliança| Operationaland financials projections JVStory base - NewCo – Franchises and Vibra’s stores(# EoP) / Anual variation GMV and monthly sales per store (R$ MM; R$ k/store)
NET revenue
National coverage to serve current
and new customers
throughout Brazil
Off-grid offering
Sales of LNG to industrial customers who are in regions that are not connected to the distribution grid
On-grid offering
With the opening of the market, Vibra will also start selling to customers connected to the grid
20-30% Vibra 2030 EBITDA in
gas and electricity
+70% of current Vibra customers transitioning from OC to natural gas are off-grid
Infrastructure and logistics for LNG distribution
Offtaking contracts with producers
Complementing the offer with biomethane
Opening of the gas market
Alternative to Fuel Oil(~R$100M Vibra EBITDA)
More sustainable energy than derivatives
Growth in demand for gas
Vibra will complement its overall energy offering with a scalable positioning in natural gas
Energy
Our positioning in the energy market
Vibra and ZEG Biogás signed a cooperation agreement to offer sugar and ethanolproducers an integrated solution for producing biomethane and together to induce thegrowth ok biomethane market in Brazil
+
Downstream
Increasingly demanding market for renewables
Biomethane can replace many fossil fuels (diesel, natural gas,LPG)
Vibra & ZEG combine market intelligence, business modelingand competitive pricing for efficient product placement on themarket
Vibra has more than 8,000 service stations and 18,000 B2Bcustomers
Value Proposition
Renewable alternative, adding to the complete decarbonization ofthe sugar and ethanol industry value chain
Environmental solution for vinasse and improved soil productivity
Decentralized production throughout the entire agribusiness chain, with Vibra and ZEG playing a prominent role in complying with thelow carbon agenda (ESG)
Upstream
Vibra and ZEG have an excellentrelationship with the leading sugar andethanol producers in Brazil
ZEG has the best stillage biodigesteroption in the world
Potential market for biomethanein Brazil
superior to
10 billion m 3 per annum
Technology
ZEG's proprietary technologicaldevelopment and ongoing optimization
The production process developed byZEG for biomethane production is verycompetitive, particularly in terms ofoperating costs
Vibra is in a prime position for growth in trading electricity
We are reinforcing our current position to better support large-scale customers and expanding offer for future pulverized demand
+40%Of the total energy of the free market is consumedby B2B customers of Vibra
Distributed generation at service stations
Customized projects to tailor the energy supply to large-scale customers
Service to smaller-scale customers with progress in liberalization
Trading in the free market
47
2020 2030
20
2025
3546
583266
8094
Higher potential with the growth of ACL
Projected total load (GWm) 3x '30 vs. '20
Vibra will be among the top 5 electricity traders in the free market by 2025
Energy
Our positioning in the energy market
DIGITALIZATION IN ORDER TO SERVE A SCATTERED CUSTOMER BASE
Top 5Traders
of electricityas of 2025
20-30% Vibra 2030 EBITDA
in gas and electricity
TARGUS (2021)
500 MWm traded300 Clients served (energy sales + services)
DG plants under contract to serve 700+ customers by the
end of 2021
R$400MEBITDA in 2022
Fortifying the position as a
market leader
Ongoing projects to strengthen position in lubricants
Authorized distributor program
Strengthening of international position
Use of BI and analytics in integrated marketing and sales planning
Expansion of premium portfolio
Synergy with broad offering for B2B
customers
Completion of the expansion of the Lubrax plant in RJ
500,000 m³/yearNew capacity
Among the 5 largest manufacturers
of lubricants in the world
Integrated concept from factory to customer
Production Distribution Sales
Predictive planning Increased efficiency
The Lubricants business is about to embark on a new, even more prosperous stage
Energy
Our positioning in the energy market
In aviation, we are positionedto maintain leadership in the market recovery
20202019 2021 2025
>R$500MEBITDA expected to resume robust growth after COVID-19
Market ShareAirports
We have the relevance and penetration required to continue leading the aviation market
Sufficient infrastructure for additional growth without relevant investment
Reduction of business risk, with lower capital employed
65%
Energy
Our positioning in the energy market
+90
Creation of new onshore and offshore entities for derivatives trading and offices abroad
New independent trading company for the biofuels sector
Fuel trading will open opportunities in refining and is expected to become an independent business at Vibra
Energy
R$1Biin savings over the last 5 years
Largestimporter of fuels from Brazil,with
3.4 MM m³imported in 2020
Excellence in sourcing
Optimization of the value chain
Asset-backed trader
Trading has matured at Vibra and will increase value generation over and above optimizing sourcing
Vibra Vision1
2
3
Path to success
Our positioning in the energy market
4xAmbition to grow in the upcoming yearsDerivatives desk to mitigate the risk of
exposure
Partnership between VIBRA and Copersucar createsBrazil's leading Ethanol Trader andone of the largest in the world
Trader of Ethanol
• "Asset light" model• Alignment to the ESG agenda• National reach and presence• Synergies generate value for the business
and provide more efficiency to the market
Opportunities between harvest and off-season
Import and exports, in addition toworking in the domestic market
Scale gain and logisticaloptimization
Main drivers of value
Two solid Brazilian companies reinforcing theircommitment to the country through the reliable andcompetitive offer of biofuel to society
B2B solutions are an important part of Vibra's offering to its customers during the energy transition
Helping in carbon offsetting
Energy management and CCEE representation
Providing guidance on the transition to cleaner energy sources
Operations Inventory management and automatic resupply
Engineering and operation of customer sites
Closer relationship with customers and increased retention
Fleet
Fleet management
Shared garages
B2B Solutions
Energy
Non-exhaustive
Our positioning in the energy market
ESG, Innovation and Digitalizationare fundamental pillars of our business
Facilitating elements
Innovation will become even more important for Vibra in the energy transition, and we will pursue positions that ensure optionality
Investment for an even more active role in developing innovation
Focus on sectors that are related to Vibra's forward-looking vision and associated with improving the
consumer experience:
OTHER EMERGING TECHNOLOGIES
NEW SOURCESOF ENERGY
MOBILITY
OPEN INNOVATION: Partnerships with startups and companies for business development and joint go-to-market
INVESTMENT IN STARTUPS: Corporate Venture Capital Strategy connected with our proposition for the future.
R$140-160MM for investment in different domains of innovation in the upcoming years
Legal
People
HSE
Strategic focus on Energy and Mobility
Israel's Startup Ecosystem
30 connectedSTARTUPS+
We are launching our VIBRA INNOVATION HUB
Cooperation Agreements with:
INNOVATION GOVERNANCE: Alignment with BR's new strategy and tracking the results
The creation of the innovation hub will leverage connections and help speed up the delivery of innovative solutions to the market
Provide solutions to current problems in order to build a future and generate results along with new sources of revenue within the innovation ecosystem.
INNOVATION WITH RESULTS
A culture of mistakes with quick learning. Conception projects to make new opportunities feasible, including rapid experimentation and testing.
EXPERIMENTATION & RAPID PROTOTYPING
Core relationship competence used to exchange ideas with innovation entities, generating new business opportunities and providing a competitive advantage in the market.
CONNECTIONS
Promoting the innovation mindset. To be an agent for transforming the future. To be the brand desired by new talent and acquisitions.
INNOVATIVE POSITIONING
Facilitating elements
Public
Our digital transformation is in-line with VIBRA's strategy of optimizing the present and enabling the future
Facilitating elements
Digitalizer the
experience
of customers
Enabling
transformation
Digitalizer the
organizationDigitalizer the
operations
Digitization is one of our pillars, facilitating personalization and efficiency in large-scale customer care
Digital channels allow us to relate to the customer in an efficient and personalized way
Orders are transacted through the Business Channeland other apps from the Vibra network
95% of orders are made through the
Business Channel
Efficiency in serving customers, digitizing the way to do business
App + Business
App Hangarar
Franchisee Portal
Energy Portal has been used in Distributed Generation
Digital platforms for selling energy
Leveraging of the platform for efficient service to a more dispersed customer base
Digitalization of the sales funnel with new CRM Salesforce
Dynamic pricing
Customer service channel on Whatsapp
• View Orders
• View Invoices
• Check on Bank Payment Slips
…and much more!
Facilitating elements
A new Premium App that is lighter, incorporating tier logic while including integrated paymentLoyalty program
Payment in the app
Offers based on consumption and profile
ClosenessVibra - Final customer
Gamification
Benefits according to each level
Facilitating elements
Introduction of a digital supply chain solution and creation of the control tower
Facilitating elements
SAFETY INTEGRATED LOGISTICS CONTROL TOWER (SAVINGS OF R$ 95 MM)
Integrated view of operations
Maximizing fleet productivity
Digital programming and scripting
Monitoring and alerts in real
time Focus on safety 24 hours
DIGITAL SUPPLY CHAIN
Layer of analytics integrated into
planningwith KPIs that are relevant to logistics and
commercial areas
S&OP process supported by
a planning tool
Increased accuracy of sales
forecasting focusing on the bases with the highest deviations
Improved communication between
logistics and commercial areas with
structured meetings and well-defined indicators
More dynamic stocking policyallowing for a reduction in inventory levels
And adding efficiency to our activities through the use of robotics, with RPA and AI technologies
Facilitating elements
Robot based on an RPA tool
Robotic Process Automation
0503
0201
Jan/2021Campaign in areas
+ 25,000 hoursreturned
04
06
07
+ 15,000 hoursreturned
May/2021100-day plan
Dec/2020 2020 Results
+ 70,000 hoursreturned
Dec/2019Start of the pilot project
Apr/2020Project + CoE Governance
+10,000 hours returned
August / 2021 Strategic Initiatives+ 80,000 hours
returned
For 2022 Greater Investment.
Return of 10x + 200,000hours returned annually
- Automated Look Up on various external sites that do not offer integration
- Automatic execution of daily operational routines at headquarters and at 80 bases
- Elimination of repetitive tasks that have little added value
WHICH WAS ONLY POSSIBLE USING RPA
+ R$ 16Min potential earnings
How to optimize processes
for Vibra in 12 months
Working towards a healthy, pro-competitive and asymmetry-free regulatory environment
• Constructive dialog with the Executive, Legislative and Regulatory agencies• MP 1063, direct sale of ethanol: addressing the tax issue, seeking to eliminate any
asymmetries• MP 1063, "white bomb": retaining an express provision that favors exclusivity
contracts freely agreed upon between the parties
Active participation in the Legal Fuel Institute
Tracking regulatory changes that may have an impact on VIBRA's performance
350MM of
fuel apprehended
1250Denunciations done in the last 12 months
14BI Monetary loss
Cconstruction of an ethical and loyal environment in the fuel sector
3159employeesheard in the Barrett_2020 survey
Conversations with Customers, partnersShareholders and experts
100%of leadership
+100employeesDiscussion groups
Diagnosis performed in 2020, in which we heard: ACTIVE LISTENING as the CENTRAL FOCUS OF THE WORK
CULTURAL TRANSFORMATION
3300employeesheard in the PULSO Cultura_2021 survey
CurrentCulture
Workshop to define thePurpose, Behavior Principles
Desired Culture
x
Always ready to move Brazil with its best energy
Public
Always ready to move Brazil with its best energy.
at each time; present;in the daily lives of Brazilians;sense of urgency;continued improvement.
Public
It's about availability;convenience, securityand ease. To be presentwhere, when and howeverthe customer wishes.
Always ready to move Brazil with its best energy.
Public
Drive; evolve; breaking free from the same old place; it's about moving people and business. Moving is about getting closer and finding paths.
Always ready to move Brazil with its best energy.
Public
Our roots; our people, our collaborators. It reflects our presence, penetration and reach. It's about being within the lives of all Brazilians (people and businesses).
Always ready to move Brazil with its best energy.
Public
Always ready to move Brazil with its best energy.
Which is the employee, the customer, our partners, each of us.
Public
That it's cleaner, more affordable, more convenient; that it represents the best for society, for Brazil and for the planet.
Always ready to move Brazil with its best energy.
Public
What refuels us to keep us going; what allows us to go from one place to another; what moves us and pushes us forward.
Always ready to move Brazil with its best energy.
We are convinced that
our customer's bottom
line is ours as well, that's
why we're always
dedicated to fulfilling
their needs and
surpassing their
expectations.
MOVEDBY THE CUSTOMER
WE SIMPLIFY EVERYDAY LIFE
DARINGTO GO FURTHER
We look for solutions in a
simple and flexible way
and implement
processes as enablers. We adapt to the context
to deliver better results
with flexibility.
We ask questions to find
best practices and take
courageous and
responsible risks. We're a
step ahead in the search
for solutions to continue
leading the market.
OUR PRINCIPLES
COMMITTED TO A SUSTAINABLE FUTURE
We are driven by the desire to have a positive impact on society. We believe that the future of the company depends on the sustainable management of the business and involves the participationof each employee.
OUR PRINCIPLES
TEAM THAT "VIBRAS" TOGETHER
We encourage an environment of diversity and trust, where everyone is committed to achieving our goals. We "vibrate" in harmony with employees, customers and partners, because we all share the same energy, optimism and positivity.
ESG is essential to Vibra and is at the core of our priorities
Conviction of the importance of energy
transition and sustainability
Commitment to our surrounding communities
and to the social development of Brazil
Focus on diversity and inclusion
Facilitating elements
E
S
G
We currently have ESG impact initiatives recognized by leading institutions
• Reduction of GHG emissions in the transportation of our products
• Expanding the use of renewable energy• Reduction of effluents generation and water consumption
• Community engagement: Circo Crescer e Viver and Meta Educação partnership
• Volunteering: Entrepreneurial Trail• Initiative for fighting the Covid pandemic• Increased diversity: the percentage of women rose from 23.56%
to 27.03% and that of Afro-Brazilians from 29.53% to 40.21%
• Vibra became a true corporation
• CA with all independent members• Effective integrity program that prevents corruption and
builds credibility
Key ESG Initiatives
Top 15% in the industry by
the S&P Global 2021 Sustainability Yearbook
Listed for 2 consecutive yearsin ISE; included in ICO2 for the 1st time
Listed for 2 consecutive years on
the FTSE4Good Index of the FTSE, a division of the London Stock Exchange
Emphasis among national fuel
distributors
National and international recognition in ESG:
Facilitating elements
We'll takeESG to thenext levelwith Vibra Net Zero
Net ZeroScopes 1 and 2
up to 2025
Scope 1: direct emissions from activity (energy generators, boilers, trucks, forklifts)
Scope 2: indirect emissions from the purchase of energy (electricity and steam)
Net ZeroScope 3 up to,
at the maximum,
2050
Scope 3: indirect emissions
from the activity, such as the
use of the product sold and part
of the transport of products
Elementos facilitadores
We'll take ESG to the next level with Vibra Net Zero
Total emissions (thousand t CO2e, 2020)
Scopes 1 and 2
Scope 3
Commitments
146,000(0.2%)
75 million(99.8%)
Net Zero up to 2025
Intermediate intensity of reduction targets
Net Zero up to 2050
Main Initiatives
• Thermal plant deactivation • Increase in renewable energy• Increased operational efficiency in
the units and in the transport of products
• Compensation for emissions
• Investment in new fuels • Encouraging customers to change
their consumption variety • Carbon capture projects • Compensation for emissions
Investment estimated (R$/year)
To be estimated, given the variations in future
emissions and fluctuations in the
future price of carbon
~R$ 5M – 20M
Source: BCG Analysis
~R$190MAcquisition of CBIOS by BR
in 2020 (Renovabio)
Public
Today's strategic initiatives are focused on maintaining the company's value generation
We will continue to deliver robust earnings and new businesses will play a significant part
20252021 2030 20252021 2030
Revenue Ebitda
20-30% Vibra 2030 Ebitda
from new business
Electricity trading is expected to be
3-4xhigher in 2030
+50% growth +30% growth
Vibra Current Business New businesses (Natural gas, electrical energy expansion, EV charging, LASA JV)
Creation of value
Increased cash generation despite CAPEX in new businesses 2021 2025 2030
Vibra Current Business New businesses (Natural gas, electrical energy expansion, EV charging, LASA JV)
Operational cash flow
CAPEX
Investments in the service station chain
Logistics infrastructure in situations that are needed to make energy sales viable
+180% growth
~30% Vibra 2021-2030 CAPEX
intended for new businesses
70-80%+Operating cash flow due
to new business and higher leverage
POSSIBILITY OF HIGHER LEVERAGE FOR ADDITIONAL INVESTMENT AND M&A OPPORTUNITIES
Creation of value
Execution of the new strategy will result in higher total shareholder return
Three key drivers for TSR
MultiplesCapital structure
Operationalearnings
Greater weight of businessin growth, with strengthened convenience, digitizationand new energy sources
Leverage adequacy with reduced cost of capital and a dividend policy linked to indicators of liquidity and indebtedness
Revenue growth with strategyresilient to energy transition scenariosContinuity of earnings fromefficiency and strengtheningof current business
Creation of value
Public
Thank you!