ANNUAL REPORT 2017 - Greenergy

1 ANNUAL . ANNUAL . REPORT . REPORT . 20172017. STRATEGIC REPORT . OVERVIEW. Our business model 2. Our mission 4. Strategic summary 6. CHIEF EXECUTIVE'S REVIEW 8. HEALTH AND SAFETY. Safety record 16. Approach 18. MARKET REVIEW. Global markets 22. UK market 24. Brazil 26. Canada and Middle East 27. STRATEGY IN ACTION. UK Fuels 30. International Fuels 36. Biofuels 46. Infrastructure 52. Haulage 56. KEY PERFORMANCE INDICATORS. Financial KPIs 62. Operational KPIs 63. Environmental KPIs 64. Service quality KPIs 65. CHIEF FINANCIAL. OFFICER'S REVIEW 66.

2 MANAGING OUR RISKS. Risk overview 71. Risk register 72. PEOPLE AND ENVIRONMENT. Executive Directors 82. Employment 83. Biofuel sustainability 86. Carbon emissions 88. STRATEGIC REPORT 89. DIRECTORS' REPORT 90. FINANCIALS. Independent auditors' REPORT 94. Consolidated income statement 96. Consolidated statement of comprehensive income 97. Consolidated and Company balance sheets 98. Consolidated statement of changes in equity 100. Consolidated and Company statements of cash flows 102. Notes to the financial statements 103. Officers and professional advisors 139.

3 Registered offices 140. OVERVIEW. THE LAST + 18bn FY17. highlights 25 YEARS. litres per year group sales This is our 25th year in business. IMPORTS. We have grown from a bedroom INTO BRAZIL. start-up in 1992 to become the We have established ourselves as a trusted importer of diesel UK's only national fuel supplier. in a rapidly changing market. We are now building on our UK. experience to grow internationally. EXPANSION. + 10bn IN CANADA. Further sales growth resulted litres per year from supply chain diversification group sales and infrastructure investment.

4 MIDDLE. EAST. Our strategic collaboration in Bahrain + 1bn began commercial operation, blending and supplying petrol to the local market. litres per year 2012. group sales We start up our new fuel BIODIESEL. supply business in Canada EXPANSION. 1992 1994 1996 2005 2008 2010 2015 2016. We increased biodiesel production and Greenergy We start First major retail We complete our Purchase of We invest in Purchase of the Our first diesel Creation of reduced unit costs through capacity founded in selling the first contract in UK first infrastructure the Plymouth petrol blending former Coryton imports are Navigator expansion and operational efficiencies.

5 Sweden ultra-low sulphur investment and start fuel terminal at Teesside and North Tees made into Brazil Terminals diesel in the UK manufacturing refineries biodiesel OPENING OF. THAMES OILPORT. We prepared to open Thames Oilport, giving us scope for expansion in a region of demand growth. KPI. EBITDA. (excluding exceptionals).. FY16. Chief Executive's Review p11. 2017 Greenergy ANNUAL REPORT 1. OVERVIEW. OUR BUSINESS. MODEL. We have created a unique supply chain Customer sales to enable us to source fuel products We supply all key customer segments in the UK, including from the lowest-cost global producers supermarkets, major oil companies, independently owned forecourts and move that fuel in the most efficient and commercial users.

6 Our low-cost, way to our customers' forecourts. resilient fuel supply chains earn long-term customer loyalty. Global origination We source from around the world in order to find the lowest-cost petrol, diesel and biofuel products. We maintain flexibility and optionality in our purchasing, using our understanding of complex market structures and reacting quickly to market opportunities to source fuel products at minimum cost. Manufacturing and infrastructure Logistics We continue to invest in fuel We manage the fuel supply import terminals in order to access chain for many of our customers, world markets and provide supply taking care of stock management resilience for customers.

7 We blend and delivery as well as fuel supply. petrol at three state-of-the art petrol In our in-house haulage operation, locations and own and operate two we continually optimise our of Europe's largest waste-to-biodiesel operations to improve service manufacturing facilities, giving us for customers and deliver from a low-cost and sustainable supply the lowest-cost location. of biofuel with which to meet our UK biofuel supply obligations. 2 2017 Greenergy ANNUAL REPORT 3. OVERVIEW Navigator Terminals | Thames, UK. OUR To deliver long-term customer partnerships by being the fuel MISSION provider with the: Lowest cost Highest reliability Best systems and control Easiest people to deal with Most transparency.

8 4 2017 Greenergy ANNUAL REPORT 5. OVERVIEW. STRATEGIC. SUMMARY. UK Fuels International Biofuels Infrastructure Haulage Fuels Our aim: Develop low-cost and Our aim: Acquire, resilient fuel supply Our aim: Expand Our aim: Create regenerate and Our aim: Make reliable chains to earn the by replicating value from biofuel operate assets that and cost-efficient long-term loyalty our UK success manufacturing support our supply fuel deliveries of our UK customers in other markets and supply chain objectives to customers Highlights Highlights Highlights Highlights Highlights Opening of Thames Oilport 33% sales growth in Canada, Increased biodiesel Use of Thames Oilport Continued focus on safety.

9 For diesel supply shortly after with particularly strong sales manufacturing output and Teesside facilities with increased resourcing year-end, creating capacity from our first rail-to-road as a result of a 28% for diesel storage, giving of driver training, more tailored for further growth in the supply location expansion in capacity significant margin in training and a growing safety busy South East region New tankage agreements and operational efficiencies contango market conditions awareness amongst drivers Further growth in sales in Quebec and Toledo, Further extension of our raw Completion of refurbishment Expansion in our driver to independent forecourt further diversifying our material supply chains to allow works at Thames Oilport workforce to maximise the operators.

10 Including under supply chains into Canada for sourcing of waste oils with in preparation for diesel volume of fuel delivered by our branded wholesaler Significant expansion of particular quality characteristics throughput and supply our in-house logistics operation agreement with Esso our diesel import operations or in smaller containers Continued works to integrate and to increase fleet utilisation Continued development into Brazil Growth in sales of biofuel our Teesside facilities to create and profitability of our import capability Start of commercial operations and UK Renewable Transport cost and operating efficiencies In-sourcing of vehicle to allow us to receive fuel by our petrol blending Fuel Certificates to other and supply chain value.