CLH approves the update of its Strategic Plan 2012-2016 in view of the growth of the economy and its internationalisation

• CLH maintains its investment efforts in Spain and consolidates its international development in Oman and the United Kingdom with an investment plan in excess of 640 million euros in the 2012-2018 period.

The Board of Directors of CLH has approved the update of its Strategic Plan 2012-2016, including a projection to 2018, in order to adapt its key figures in view of the new scenario of economic growth in Spain and the internationalisation of the company’s activities. CLH has recently acquired GPSS (Government Pipeline and Storage System), the most important pipeline network in the United Kingdom, and it is continuing with the project for the construction of logistics infrastructures in Oman.

The updated Strategic Plan approved by the Board of Directors continues to focus on improvements in efficiency, with the objective of continue increasing the value of the company and conserving its long-term competitive position.

According to the new forecasts made by the Company, demand in Spain for clean oil products (gasoline, kerosene and diesel fuel) will see an average annual growth of 2.1% during the forthcoming years and deliveries of products from CLH facilities to the Spanish market will experience a similar growth rate, placing the volume of deliveries in 2018 at over 43.8 million cubic metres.

In view of this outlook of growing demand, the Company forecasts that the Operating Income of the CLH Group for the 2012-2016 period will reach 3,128 million euros. During the two years to which the Strategic Plan is extended, 2017 and 2018, it is forecast that operating income will be in the region of 700 million euros per annum.

At the same time, the Company will continue to implement the investment plan contemplated in the Strategic Plan 2012-2016, which will reach 500 million euros, of which close to 300 million euros will be for investments in Spain, and the rest for international projects in Oman and the United Kingdom. In the two years during which the Plan is extended, 2017 and 2018, investment will amount to around 140 million euros, most of it in our country.

Furthermore, the company will continue with the efforts it has made in recent years to limit expenses, leading to an accumulated figure for operating expenses for the whole 2012-2016 period of 1,951 million euros, including the new international projects. Deducting these new international projects, operating expenses will be 6.7% lower than the amount initially included in the Strategic Plan. This effort will also continue in 2017 and 2018, leading to a figure for operating expenditure of 429 million euros for 2017 and 428 million euros for 2018.

All things considered, it is forecast in the revised Strategic Plan that the EBITDA of the CLH Group will reach an accumulated figure between 2012 and 2016 of 1,607 million euros, taking into account the recent acquisition of the GPSS distribution network in the United Kingdom, which generates a 5.7% increase over the amount initially included in the Strategic Plan. Likewise, for 2017 and 2018, it is expected that the EBITDA of the CLH Group will be around 358 million euros in 2017 and a similar figure in 2018.

The after tax profit forecast for the 2012-2016 period amounts to 806 million euros, an 10.5% increase over the figure initially included in the Strategic Plan, with a result of 181 million euros in 2016 compared to the 157 million euros obtained in 2014. According to the forecasts included in the revised Strategic Plan, after tax profit will be 192 million euros in 2017 and 195 million euros in 2018.

In addition, the company expects to continue to maintain its Debt/EBITDA ratio below 3, after the incorporation of the new international projects of Oman and the United Kingdom, which will allow it to continue developing new business opportunities over the years to come.