Improving Oil Logistics

CLH Group Corporate Presentation

2

Agenda

CLH's shareholder Activities and services Logistic resources and infrastructure Pricing system Main figures Future perspectives

3

Agenda


4

CLH's equity ownership

CLH's shareholder base is very diversified, guaranteeing independent management

Operators with refining capacity in Spain

Operators Financial investors

CLH Group's management according to two main principles

• Service quality with competitive prices

• Profitability and efficiency

In accordance with the Hydrocarbon Sector Act, the shareholding position of operators with refining capacity should never exceed 45%

Composition of CLH's

shareholders fosters price

competitiveness and profitability

Limits on CLH's shareholder composition guarantee its independence

5.00

10.00

Others

10,00

5,00

5,00

5,00

5,00 5,00

0,85

5,00

14,15

10,00

BP Oil

Repsol

Cepsa

Galp

AMP Capital Investors Limited

NCG Banco

Deutsche Bank

Kutxabank

Public Sector Pension Investment Board

Stichting Pensioenfonds Zorg en Welzijn

Her Majesty the Queen In Right of Alberta

Global Salamina

5,00

10,00

Marthilor Oman Oil

10,00

5,00

5,00

5,00

5

Agenda


6

CLH offers its customers 5 main services lines

Storage and transport logistics services

Security stock storage

Value-added services in logistics

Storage and loading in airports

International services

1

2

3

5

4

• Reception, storage, transportation from delivery point to customer-chosen facility and loading oil products into tanker trucks on the Peninsula and the Balearic Islands

• Bunker and fuel-oil services

• Strategic oil reserve storage for European countries’ central institutions and operators

• Storage and into-plane services of aviation lubricants and fuel

• Quality additivation, introduction of fiscal tracers and biofuel blending • Product control analysis in own labs • Maintenance of service stations

• Technical and consulting support

• Management of hydrocarbon logistics assets

7 7

CLH provides logistics services to top level companies

8

Lowers investment necessities and optimizes transportation costs, decreasing operator's logistics costs

Lower costs

CLH's logistics system integrates storage and transportation

Advantages of CLH's integrated logistics system

Simplifies product transportation scheduling for operators

Enables optimizing product movements • Reducing emissions • Reducing risk of leaks

Reduces the stocks needed for transportation and ensures supply by minimizing the transportation time

Sustainability

Easy scheduling

Stock optimization

9

CLH offers to its clients an instantaneous accreditation service for their products Instant Accreditation: Visual example of how

the system works Features of how CLH's logistics system works

Product enters on day X

Product is withdrawn on day X

A Coruña-Puerto

Rota

Zaragoza

Instant accreditation allows clients to access their products from any point on CLH's logistics network immediately after it has been delivered into CLH system

Integrated system

Instant accreditation

Integrated management of primary logistics services (transportation and storage) eliminates clients need to own logistics assets

Geographic coverage

CLH offers its services throughout all of the Peninsula and the Balearic Islands

10

CLH's Environmental Management System was

awarded the ISO 14001 certificate

CLH is a company committed to caring for the environment

Truck Train Barge Pipeline

CLH prevents 360,000 Tn of CO2 emissions a year in Spain

(kgCO2/Tn/300 Km)

Specific CO2 emissions by type of transportation

• Implies active and responsible commitment to minimizing possible environmental impacts associated with CLH's activity

Infrastructures adapted to handle and

blend biofuels

• In 2011, CLH transported through its facilities:

– 1,484,339 m3 of biodiesel + HVO

– 321,900 m3 of bioethanol in ETBE

– 28,923 m3 of bioethanol

10.0

8.0

6.5

2.2

0

3

6

9

12

11

CLH provides emergency stocks storage services

Product quality guarantee Online control of quantity and location of the stored stocks

Product delivery and withdrawal at any point in the system

CLH is CORES’s main emergency stocks storage provider

CLH offers its facilities to operators as well as European countries' central institutions to store strategic reserves

Long-term storage contracts (5 to 20 years) and flexible contracting volume

with no full tank requirements

12

CLH's value-added logistics services adapt to the sector's current needs

Including quality additives to fuels to improve product quality or including fiscal tracers Blending biofuels with conventional fuels

Analyzing fuel and biofuel quality control in own labs Environmental testing of additives and materials: behavior and characterization

Offering technical assistance for the integral maintenance of service stations Refurbishing and improving service stations to comply with legislation Sales of equipment required by Service Stations

1

2

1

2

1

2

3

Biofuel additivation and blending Control analysis in labs Maintenance of service

stations

13

CLH provides storage and loading services at major Spanish airports

Logistics services available CLH Aviación is present in 28 Spanish

airports

Aviation fuels Aviation lubricants

Storage Loading

Airports with CLH services

CLH has hydrant networks at the top 4 Spanish airports in terms of passengers

Supplying airplanes via dispenser vehicles at airports where CLH has a hydrant network

Refueling units at all airports

Logistic resources and infrastructure

Santiago Vigo

Salamanca

Badajoz

Sevilla

Jérez Málaga

Córdoba

Cuatro Vientos Torrejón

Barajas

Asturias

Santander Bilbao

La Rioja

Pamplona

Zaragoza

Girona

El Prat

Manises

Altet

San Javier

Almería

Ibiza

Son Bonet

Palma

Mahón

A Coruña

14

CLH Group is fostering the internationalization of its logistics activities

Management of oil product logistics assets

Consulting and technical advice

• Strategic design of logistics networks

• Operating efficiency

Value-added services in logistics

Helping other logistics companies reach excellence in management and operations

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Agenda


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CLH possesses modern logistics resources and infrastructures to offer its clients best-in-class services

Infrastructures Logistics resources

38 storage facilities

7.8 million m3 storage capacity

4,006 km of pipelines

28 airport facilities

4 hydrant networks at major airports

2 chartered tanker ships

52 aviation fuel dispensers

133 refueling units

14 fixed and 22 mobile workshops to cover service station technical services

1,451 people(1) with extensive experience and know-how

• 1,142 basic logistics and others • 309 airport services

Storage facilities

Storage capacity

Pipelines

Airport facilities

Hydrants

Tanker ships

Dispensers

Refuelers

Service station maintenance workshops

Human resources

(1) Fixed staff + reliefs

17

•Almodóvar

•Coria

•Poblete

•Mora

•San Adrián •Palencia

•Barajas

•R. A Coruña

•R. Puertollano

•R. Huelva

•R. Cartagena

•R. Castellón

• R. Somorrostro

•R. Tarragona

•Palma •Badajoz

•Almería •Jerez

•Cuatro Vientos

•Santovenia

•Santiago

•Motril

•Malaga • Rota

•Huelva •Sevilla •Cartagena

•Alicante •Mérida

•Adamuz

•Altet

•San Javier

•Alcázar de San Juan

•Albuixech

•Manises

•Loeches •Villaverde

•Torrejón •Salamanca

•Burgos

•Vigo

•A Coruña-Bens

• A Coruña-Puerto

•León

•Asturias •Gijón

•Santander

•Rivabellosa

•La Rioja

•Pamplona

•Zaragoza •Lleida

•Girona

•Mafumet

•Pallejá •El Prat

•Tarragona

•Ibiza

•Mahón

• Porto Pi •Son Banya

•Son Bonet

•San Roque

•Barcelona

• Bilbao

•Algeciras

•R. San Roque

•Ballobar •La Muela

•Ariza

• Santurce

•Córdoba

• Arahal

17

4,006 km of pipelines

38 storage facilities

28 airport facilities

8 refineries connected to CLH's network

14 port facilities

France

Mediterranean Sea

Atlantic Ocean

CLH’s logistics system guarantees product supply in the Spanish peninsula and the Balearic Islands

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CLH has advanced management and control systems

Customers CLH Customers

Online information

Control center

Satellite

Logistics network

Orders Product output

• Applications that allow clients to:

– Load orders automatically – Real time monitoring

• Available immediately anywhere in CLH network • One dispatching for the entire country • Simplification of movements • Multiproduct pipelines • Integration of storage, transportation and management

systems

• Lower cost for operators • Efficient loading process • Quality, quantity and fiscal

guarantees

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Agenda


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CLH's logistics system is open to any operator, with objective, transparent and non-discriminatory prices

Free access

Transparency

Objective prices

Non-discriminatory

prices

• One single origin-destination price for all of the services offered by CLH: from the delivery of the product to CLH to its dispatch at its final destination

• All contracts communicated to National Energy Commission (CNE) who publishes all prices

• Prices are established based on international references and respond to the service given

• Prices, for the same service, are equal for all the operators

• Any operator or company interested can access CLH services

CLH system is the most open and transparent in Europe and contributes to competition in the sector

21

Reception Storage Transportation Others

Delivery of products to CLH via tanker ship or through pipelines from the refinery or storage facility

Storage rights included in the price: • 6 days in facilities

next to refineries • 15 days in the rest of

facilities Possibility of contracting additional storage in facilities with enough capacity

Transportation from the point of delivery to CLH and the facility where the customer would like to withdraw the product Instantaneous service: from the time of delivery at the origin the product can be withdrawn at the desired destination

Loading tank trucks for shipment, quantity control and quality guarantee, insurances and access CLH's online systems

CLH includes different services in one origin-destination shipment price

+ + +

22

CLH transfers the continual improvement in its operations to end prices

Index (Price2005 = 100)

2011

99

2005

CLH service price index

CLH has maintained prices practically constant since 2005

CLH's services repercussion on end prices is less than 1.0%

Weight of CLH's logistics in gas oil A and gasoline 95 end prices in Spain

Nominal terms

Real terms

%

Gasoline 95 Gas oil A Real average price in 2011 for basic gasoline and gas oil logistics was €8,16/m3 (equal to €0.82 c/liter)

0.6 0.6

0,0

0,5

1,0

1,5

100

0

50

100

150

112

97

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Agenda


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Operating revenue (€M)

Net operating result (€M)

EBITDA (€M)

Net profit (€M)

231.9

324.6

2011 vs. 2010

5.1%

2.6%

7.7%

615.7

162.8

226.0

310.0

585.9

151.2

2011 2010

4.7%

In 2011 CLH improved its EBITDA 4.7% vs. 2010

25

CLH product outputs reflect the Spanish market slower activity in 2011

Gas oil (M m3)

Automotive gasoline (M m3)

Aviation fuel (M m3)

Others (M m3)

5.6

6.1

XXX

2011 vs. 2010

-7.0%

-8.4%

12.8%

-4.3%

28.8

Total (M m3) 42.6

2.1

6.1

5.6

XXX

31

44.6

1.9

2011 2010

9.5%

26

Operating revenue (€M)

Net operating result (€M)

EBITDA (€M)

Net profit (€M)

2012 vs. 2011 2012 2011

In 2012 January – June Ebitda decreased 7.5 % in comparison to the same period of the previous year

102.8

144.4

-1.5%

-5.1%

-7.1%

282.2

69.3

108.3

156.1

286.6

74.6

-7.5%

27

The downward trend of activity in the January – June 2012 period continues

Diesel (M m3)

Automotive gasoline (M m3)

Aviation fuel (M m3)

Others (M m3)

XXX

2012 vs 2011

Total (M m3) XXX

2012 2011

2.7

2.5

14.1

20.5

1.2

2.7

2.9

14.5

21.1

1.0

-2.7%

+1.0%

+21.7%

-2.5%

-13.0%

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Agenda


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CLH has carried out an ambitious plan in order to guarantee service quality

Investment plan 2012 €673 M invested in the Strategic Plan

2007-2011

Expansion of 1,200,000 m3 in net storage capacity

Adaptation of 13 facilities for the provision of services for blending with biodiesel and 9 for bioethanol

Upgrading of infrastructures at airport facilities

Pipeline extended by 523 kilometres. Main projects: Zaragoza - Torrejón de Ardoz by 290 kilometres and Arahal – Adamuz by 150 kilometres

Inauguration of the new central laboratory in Torrejón de Ardoz

Significant investments

Storage facilities Environment and Others Modes of transport

65%

23%

Total €673 M

23%

65%

Total €98 M

25%

58%

Main projects

Connecting up of the storage facility in Torrejón with Barajas airport

New storage facility in Salamanca

New storage facility in Almodóvar

Pipeline integrity

12% 17%

30

CLH is a solid and responsible company with an attractive future outlook

Stable results with low risk levels

Sustained growth

High shareholder returns

Corporate Social Responsibility

• Quality services with competitive prices • Solid financial position

• Payout around 100% over the last few years

• Development and implementation of social responsibility policies – Quality – Environment – Safety – Social action

• Investments in pipeline network and storage capacity • New products (biofuels) • International expansion

Thank you

Improving Oil Logistics

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