Javno
Public
ANNUAL
REPORT
of the Petrol
Group and
Petrol d.d.,
Ljubljana,
2023
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
2
Javno
Public
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
3
Javno
Public
Petrol, Slovenska energetska družba, d.d., Ljubljana
Dunajska cesta 50, 1000 Ljubljana
Registration number: 5025796000
Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00
Share capital: EUR 52,240,977.04
VAT ID: SI80267432
Telephone: +386 (0)1 47 14 232
www.petrol.eu, www.petrol.si
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
4
Javno
Public
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 5
1. Business highlights of 2023 ................................................................................................6
2. Letter from the President of the Management Board ..........................................................8
3. Statement of the Management’s responsibility .................................................................. 12
4. Report of the Supervisory Board....................................................................................... 13
5. The Petrol Group in the region ......................................................................................... 17
BUSINESS REPORT ........................................................................................................... 18
6. Strategic orientation.......................................................................................................... 19
7. Plans for 2024 .................................................................................................................. 22
8. Corporate Governance Statement .................................................................................... 25
9. Non-financial statement .................................................................................................... 46
10. Performance analysis of the Petrol Group 2023 ............................................................. 73
11. Alternative performance measures ................................................................................. 93
12. Events after the end of the accounting period ................................................................. 94
13. Risk management .......................................................................................................... 95
14. Operations by product groups ...................................................................................... 107
15. Investments .................................................................................................................. 129
16. Share and ownership structure ..................................................................................... 132
17. Internal Audit ................................................................................................................ 138
18. Information technology ................................................................................................. 140
SUSTAINABLE DEVELOPMENT ...................................................................................... 143
19. Strategic orientations and goals for the sustainable development of the Petrol Group .. 144
20. Responsibility towards employees ................................................................................ 147
21. Responsibility towards customers ................................................................................. 154
22. Responsibility to the natural environment ..................................................................... 162
23. Quality control .............................................................................................................. 165
24. Social responsibility ...................................................................................................... 167
THE PETROL GROUP ....................................................................................................... 170
25. Companies in the Petrol Group .................................................................................... 171
26. The parent company ..................................................................................................... 172
27. Subsidiaries .................................................................................................................. 174
28. Jointly controlled entities .............................................................................................. 182
29. Associates .................................................................................................................... 182
FINANCIAL REPORT ........................................................................................................ 183
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
5
Javno
Public
INTRODUCTION
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
6
Javno
Public
1. Business highlights of 2023
The Petrol Group Unit 2021 2022 2023
Index
2023 / 2022
Index
2023 / 2021
Revenue from contracts with customers EUR million 4,960.1 9,456.7 6,982.7 74 141
Gross profit
1
EUR million 543.4 393.4 677.6 172 125
Gross profit
+ Net Derivative Financial Instruments
1
EUR million 577.6 357.8 730.8 204 127
Operating profit EUR million 151.1 -7.9 180.2 - 119
Net profit EUR million 124.5 -2.7 136.6 - 110
Equity EUR million 908.7 860.2 923.0 107 102
Total assets EUR million 2,403.8 2,740.6 2,635.3 96 110
EBITDA
1, 2
EUR million 238.1 96.3 277.1 288 116
EBITDA/Gross profit
1
% 43.8 24.5 40.9 167 93
EBITDA / (Gross profit
+ Net Derivative Financial
Instruments)
1
% 41.2 26.9 37.9 141 92
Operating costs/Gross profit
1
% 79.7 118.9 82.8 70 104
Operating costs / (Gross profit
+ Net Derivative Financial
Insruments)
1
% 75.0 130.8 76.8 59 102
Net debt/Equity
1
0.6 0.6 0.5 86 93
Net debt/EBITDA
1
2.1 5.4 1.7 32 81
Return on equity (ROE)
1
% 14.3 -0.3 15.3 - 107
Return on capital employed (ROCE)
1
% 10.8 -0.5 12.3 - 114
Added value per employee
1
EUR thousand 70.3 41.3 77.4 187 110
Earnings per share attributable to owners of the
controlling company
3
EUR 2.9 0.1 3.3 - 114
Share price as at last trading day of the year
3
EUR 25.4 20.0 23.3 117 92
Volume of fuels and petroleum products sold million tons 3.3 4.1 3.8 92 115
Volume of natural gas sold TWh 35.4 18.9 16.6 88 47
Volume of electricity sold TWh 13.8 12.0 12.8 106 93
Revenue from the sales of merchandise and services EUR million 469.5 520.1 571.2 110 122
1
Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
2
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
3
2021 - recalculated by taking into account the share split.
The Petrol Group Unit
31 December
2021
31 December
2022
31 December
2023
Index
2023 / 2022
Index
2023 / 2021
Number of employees 6,237 6,224 5,945 96 95
Number of service stations 593 594 594 100 100
Number of e-charging points operated by the Petrol Group 296 417 495 119 167
Number of electricity customers thousand 225 226 224 99 100
Number of natural gas customers (data for the Geoplin
Group are not included)
thousand 47 60 61 101 129
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
7
Javno
Public
EBITDA Net profit or loss
Net debt/EBITDA Structure of invested assets
Volumes of fuels and petroleum products sold Number of service stations
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
8
Javno
Public
2. Letter from the President of the Management Board
Dear shareholders, business partners and co-workers,
The Petrol Group was again faced with many challenges in 2023, but at the same time, it also
achieved important successes. As the economic growth slowed, we were faced with a loss of
purchasing power and the tightened financing conditions. Despite the inflation, energy price
regulation and geopolitical tensions, we stayed financially stable and continued expanding and
diversifying our activities as set out in our strategy for 2021–2025. The year 2023 was marked
by our continued commitment to the sustainable development and innovation and to providing
our customers with an excellent customer experience.
Stability and growth
Although the prices of energy commodities started to drop at the end of 2022, the government
measures related to the regulation of energy prices stayed present throughout 2023, which
had a profound impact on our business results. The margin cap on certain petroleum products,
which entered into effect in November, is a special challenge for the Petrol Group, although
the previously capped margins had already been substantially lower than in the comparable
countries of Western Europe. If margins are too low, they do not enable covering for all costs
and they lower the investment capacity, especially concerning investments in energy transition
projects. Having said that, I believe it is important to point out that the energy transition is not
only Petrol’s strategic focus, but it is a broader social and political objective.
Regardless of the complexity and dynamics of the business environment, the Petrol Group
demonstrated its ability to adapt and grow and maintained its stability in 2023. We showed that
we are able not only to adapt to the volatile circumstances but also thrive in them. This way,
we have laid sound foundations for the preparation of the Petrol Group’s new strategy for
2025–2030.
In 2023, the Petrol Group generated sales revenue of EUR 7.0 billion, a year-on-year
decrease of 26 percent, especially because of the lower prices of fuels and other energy
commodities on spot and futures markets. The Petrol Group sold 3.8 tonnes of fuels, a
decrease of 8 percent compared to the year before, while the sales of merchandise and
services increased by 10 percent to EUR 571.2 million. We also sold 16.6 TWh of natural gas,
12.8 TWh of electricity, and 143.4 thousand MWh of heat. The gross profit in 2023 was EUR
677.6 million, an increase of 72 percent compared to 2022. Operating costs increased by 20
percent to EUR 561.3 million, mostly due to the higher labour costs and the higher costs of
materials. EBITDA was EUR 277.1 million in 2023, a year-on-year increase of EUR 180.8
million. In the EBITDA structure, the share of the Energy and Solutions product group has been
increasing, which is in line with the strategic commitment related to the transition from
traditional energy sources to cleaner renewable energy sources. The net profit in 2023 stood
at EUR 136.6 million.
We successfully continued to pursue our debt management strategy and reduced the net debt
below the level from 2021. All key indicators have stayed at acceptable levels, providing the
Group with financially stable foundations for future operations. In December 2023, S&P Global
Ratings reaffirmed Petrol d.d., Ljubljana’s long-term BBB- and short-term A-3 rating with a
stable outlook.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
9
Javno
Public
Response to floods and support to communities
In August 2023, many parts of Slovenia, including our service stations and infrastructure, were
hit by devastating flooding. We immediately took action to help our employees and the
communities that were affected the most. In the spirit of solidarity, we provided electricity to
the affected households at a symbolic price until the end of 2023, which confirms our mission
to supply energy and support in difficult times.
Sustainability at the heart of our endeavours
Thanks to its sound financial basis, the Petrol Group is able to continue its path as the leading
player in the energy transition and prepare for the challenges and opportunities brought by the
future. In 2023, we earmarked EUR 82.9 million for net investments. Despite the challenges
brought by the energy crisis, energy transition and regulatory interventions and the uncertainty
regarding the reimbursement for the damage resulting from price regulation, which required
substantially decreasing CapEx in 2022, the Petrol Group successfully continued its key
development projects in 2023.
In the context of the strategic renovation of our sales network in Slovenia, two completely
reconstructed new-generation service stations stand out, namely Barje-North and Barje-South
on the Ljubljana ring road. In Croatia, we completed a comprehensive reconstruction of seven
service stations, constructed three replacement service stations, and newly built one service
station. We continued the Oil & Gas E2E supply chain digitalisation project which is aimed to
optimise logistics and will be completed in 2024. Furthermore, our investments have stayed
focused on renewable electricity generation. We completed the construction of one of the
largest solar power plants in the region which covers three locations surrounding our Ljubač
wind park in Croatia. We also continued developing the Dazlina wind power plant project. We
are connecting solar power plants to the grid in the context of the Petrol Green project; in
parallel, activities are in place to obtain documentation and the necessary licenses for the next
phase of the project in Slovenia and to expand to Croatia and Serbia. The Petrol Group’s
investment policy in 2024 will be focused on expanding its operations in the fields of renewable
electricity generation and the energy and environmental solutions, as well as on digitalisation.
Despite the limitations resulting from regulation, we plan to earmark EUR 130.0 million for
investments in 2024, of which 44 percent for energy transition projects.
Despite our commitment to, and progress made in, the green transition, we are faced with a
reality where our endeavours are limited by too low margins on petroleum products. The current
cap on margins in Slovenia does not enable covering for costs in fuel and petroleum product
operations and, as a result, does not allow us to adapt to the upcoming requirements of the
European Green Deal. In this context, we see market liberalisation as an adequate long-term
solution to the increasing needs for investments in a new, environmentally sustainable
business model. This is a path we cannot walk alone, and which requires understanding and
cooperation of all stakeholders – the government, business partners and each individual in our
community.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
10
Javno
Public
Glance forward
At Petrol’s Management Board, we are proud of our team’s achievements in 2023 and we look
forward to the future with optimism. Our results and endeavours in the field of sustainability
represent a sound basis for further growth and development. Together with our team of nearly
six thousand employees, we are committed to staying the leading corporation in the SEE
region in the fields of the energy transition, innovation and customer satisfaction.
We expect to face new challenges, but also opportunities for growth in 2024. We are committed
to improving our key financial indicators, all the while staying committed to our vision to become
an integrated partner in the energy transition with an excellent customer experience. Together,
we will continue developing and implementing sustainable solutions which not only meet but
also exceed the expectations of our customers and the community. In the 2021–2025 strategic
period, which will end next year, we have set a target for EBITDA to amount to EUR 336 million
in 2025. This goal is ambitious, but achievable. We are starting to prepare a new strategy for
the period until 2030, which is planned to be presented to the Supervisory Board for
endorsement in the last quarter of 2024. In the new strategic period, we will continue to
consolidate our leading position in the energy transition of the region.
In 2023, the Petrol Group once again demonstrated its financial efficiency and performance,
resulting in a high shareholder return. The return per share, which reflects its value growth,
was 16.5 percent, by comparing the closing share price as at the end of 2023 and 2022.
Combined with a 7.5 percent dividend yield, the total return per share stood at 24 percent in
2023, which clearly points to strong confidence and satisfaction of our investors.
I would like to thank everyone for the support and trust you continue to show to the Petrol
Group. We will do our best to ensure that the Petrol’s share stays stable and reliable and an
attractive investment opportunity, and that Petrol stays an attractive, interesting and safe
employer, known for excellence in business partnerships and customer experience.
At this place, I would especially like to stress the invaluable contribution of each Petrol Group
employee. Dear colleagues, thank you all for your effort, devotion and commitment. You are
the heart of our success. Together, we have and will continue to build a future which will exceed
the expectations of our customers, partners and the community.
I am sure that together, we will stay on this path of success and growth, explore new
opportunities and continue making positive changes in the world around us.
Here is to our future, full of energy for life.
Sašo Berger
President of the Management Board
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
11
Javno
Public
HIGHLIGHTS:
• In 2023, the Petrol Group continued carrying out the activities related to the sustainable
development and energy transition, which reflects our commitment to the environmental
protection and energy transformation.
• The financial indicators and dividend yield point to a high financial performance and
attractiveness for investors.
• We responded to the August flooding by helping the affected employees and communities,
thereby demonstrating our corporate social responsibility and willingness to extend a
helping hand to those in need.
• We are about to start preparing the new strategy until 2030. In the new strategic period,
we will further consolidate our leading role in the energy transition of the region.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
12
Javno
Public
3. Statement of the Management’s responsibility
Pursuant to Article 60a of the Companies Act, members of the Management Board and the
Supervisory Board of Petrol d.d., Ljubljana state that the Annual Report of the Petrol Group
and Petrol d.d., Ljubljana for the year 2023, including the corporate governance statement and
the non-financial statement, has been prepared and published in accordance with the
Companies Act, the Financial Instruments Market Act and the International Financial Reporting
Standards as adopted by the EU.
As provided in Article 110 of the Financial Instruments Market Act, members of the
Management Board of Petrol d.d., Ljubljana, comprising Sašo Berger, President of the
Management Board, Drago Kavšek, Member of the Management Board, Marko Ninčević,
Member of the Management Board, Jože Smolič, Member of the Management Board, Metod
Podkrižnik, Member of the Management Board and Zoran Gračner, Member of the
Management Board and Worker Director, declare that to their best knowledge and belief:
• the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2023 has
been drawn up in accordance with the International Financial Reporting Standards as
adopted by the EU and gives a true and fair view of the assets and liabilities, financial
position, financial performance and comprehensive income of the company Petrol d.d.,
Ljubljana and other consolidated companies as a whole;
• the business report of the Petrol Group and Petrol d.d., Ljubljana for the year 2023 gives
a fair view of the development and results of the Company’s operations and its financial
position, including a description of the material risks that the company Petrol d.d., Ljubljana
and other consolidated companies are exposed to as a whole.
Sašo Berger Drago Kavšek
President of the Management Board Member of the Management Board
Marko Ninčević Jože Smolič
Member of the Management Board Member of the Management Board
Metod Podkrižnik Zoran Gračner
Member of the Management Board Member of the Management Board and
Worker Director
Ljubljana, 11 April 2024
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
13
Javno
Public
4. Report of the Supervisory Board
Composition of the Supervisory Board in 2023
The Supervisory Board of Petrol d.d., Ljubljana has worked in its current composition since 22
April 2021. In 2023, the Supervisory Board was composed of the President, Janez Žlak, the
Deputy President, Borut Vrviščar, and the Members Mladen Kaliterna, Alenka Urnaut, Mário
Selecký, Aleksander Zupančič, Robert Ravnikar, Marko Šavli and Alen Mihelčič. The
composition is diverse in terms of education, work experience and personality traits, all of
which allow for an effective professional complementarity in the exchange of views and
opinions.
In 2023, all the Supervisory Board members attended meetings regularly and virtually all
decisions were taken unanimously. The Supervisory Board members thoroughly prepared
themselves for the topics discussed, gave constructive proposals, and adopted decisions in
line with the Rules of Procedure, internal regulations and legal powers. The work of the
Supervisory Board was effectively supported by the proposals of both Supervisory Board
committees and their substantive input. The Supervisory Board kept stakeholders informed on
a regular basis.
The Supervisory Board held 22 meetings in 2023 (compared to 17 meetings in 2022, which
was a year of the energy crisis, the war in Ukraine and management of Geoplin’s operations).
Of these, 11 were scheduled in the 2023 financial calendar, which already included 4 additional
meetings due to the delayed endorsement of the 2023 business plan (the financial calendar
normally foresees 7 regular meetings per financial year). In addition to the 11 regular meetings
scheduled according to the financial calendar in 2023, the Supervisory Board held 11
extraordinary meetings, mainly to manage costs and stabilise the Company financially in the
light of the energy price regulation and its impact on the operations.
Throughout the year, the Supervisory Board regularly monitored the Petrol Group’s operations
and development in a challenging global and economic environment, focusing on the
identification and management of business risks that are important to the future success of the
Group’s business.
The Most Important Topics Discussed at the Supervisory Board Meetings in 2023
In January 2023, the Supervisory Board held four meetings to approve the 2023 business plan.
The Supervisory Board met in February 2023 to supervise the operations in January 2023.
In March 2023, the Supervisory Board held two meetings to approve the unaudited Report for
2022 and to monitor operations in February 2023.
In April 2023, the Supervisory Board approved the audited Annual Report of the Petrol Group
and Petrol d.d., Ljubljana for 2022, discussed the proposal on the allocation of accumulated
profit, and approved the convening of the 37
th
General Meeting of Shareholders. It also took
note of the operations in March 2023.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
14
Javno
Public
In May 2023, the Supervisory Board discussed the report on the operations of the Company
and the Petrol Group in the first three months, as well as the operations in April 2023. The
Supervisory Board also discussed the progress of the renewable energy project. In May, an
additional correspondence meeting of the Supervisory Board was held to adopt amendments
and supplements to the financial calendar.
Two Supervisory Board meetings were held in June 2023 to discuss strategic topics (Geoplin
strategy, Petrol Group mobility strategy and a review of logistics opportunities).
One meeting was held in July 2023, at which changes were made to the Company’s
Management Board (two new members were appointed and one member resigned).
In August, the Supervisory Board discussed the report on the operations of the Company and
the Petrol Group in the first six months of 2023.
In October 2023, the Supervisory Board discussed strategic topics (application to the tender
for the installation of e-charging points, the Dazlina wind power plant project and the basis for
the preparation of the 2024 business plan).
Seven meetings were held in November and December 2023; in addition to two regular
meetings where the report on the operations for the first nine months of 2023 and activities
related to the independence and transparency of the members of the Supervisory Board were
discussed, five extraordinary meetings were held to discuss activities related to the preparation
of the 2024 business plan and to the change in the composition of the Management Board.
At least once a month, the Supervisory Board monitored the operations of the Company and
the Petrol Group over the previous month in order to stabilise operations and control costs.
The Supervisory Board, acting within its powers, reached responsible decisions and discussed
a number of other matters within its terms of reference:
• adopting the 2024 Internal Audit work programme;
• adopting the 2024 Audit Committee work programme;
• giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals;
• discussing the Workers’ Council reports concerning the involvement of workers in
management;
• managing potential conflicts of interest (the statements required under the applicable code
were signed by Supervisory Board members upon their appointment and also at the end
of the financial year, and published on the Company’s website);
• giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals.
All the working procedures of the Supervisory Board are geared towards ensuring the basic
rules that must apply in the effective operation of this body:
• compliance with the rules and guidelines stipulated in its Rules of Procedure;
• ongoing training of all persons involved in the functioning of the body and the adoption of
new best practices related to corporate governance;
• the transparent functioning of the Supervisory Board in relation to the Management Board
and vice versa, and with all external stakeholders;
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
15
Javno
Public
• a sufficient number of meetings to provide a thorough insight into the operations and
orientations of future development;
• full attendance of all Supervisory Board members and the proactive functioning of each
Supervisory Board member;
• training of members, acquaintance with new trends, learning about the structure of the
Company, the Petrol Group and its processes;
• self-assessment of the Supervisory Board with a view to the timely identification of the
necessary changes and implementation of the measures, and a number of other matters
that are the responsibility of the Supervisory Board in accordance with the law, the Statutes
and the Rules of Procedure.
Work of the Supervisory Board’s Committees
The Audit Committee of the Supervisory Board had thirteen meetings in 2023 (nine in 2022)
to discuss quarterly reports on the operations of the Petrol Group and Petrol d.d., Ljubljana,
and standard and other matters, such as:
• progress of the preliminary audit of the 2022 Annual Report;
• preparation of the 2024 Audit Committee work programme;
• management of credit, foreign exchange and price risks;
• risk management in the Petrol Group by quarter and its annual overview;
• briefing on the Internal Audit reports and the 2024 Internal Audit work programme;
• briefing on the report of authorised officers concerning the implementation of corporate
integrity guidelines;
• discussing and proposing to the Supervisory Board for adoption guidelines governing the
performance of non-audit services by the statutory auditor;
• briefing on and monitoring the expected changes in the International Financial Reporting
Standards on a regular basis and assessing the effect they may have had on the financial
statements;
• carrying out an interview with the Head of Internal Audit;
• monitoring and communicating the results of the external audit of internal audit work;
• discussing other topics falling within the competence of the Audit Committee.
The Committee also discussed the audited Annual Report for 2022 and submitted a proposal
for its endorsement to the Supervisory Board. It also dealt with topics related to the Supervisory
Board and the Annual General Meeting.
The Supervisory Board’s Human Resources and Management Board Evaluation
Committee held four meetings in 2023 (one meeting in 2022) to evaluate the work of the
Management Board in 2022 and to make proposals to the Supervisory Board on the
remuneration for its work in 2022. It also reviewed and approved the Remuneration Policy for
the Management Board and the Supervisory Board, which was submitted to the General
Meeting for adoption. Other activities were related to changes in the composition of the
Management Board in accordance with the Rules of Procedure of the Supervisory Board.
The Supervisory Board monitored the work of its committees based on their continuous
reporting to the Supervisory Board. Considering the implementation of all committee
resolutions, the review of their work and reports on the work of both committees presented at
the December meeting, the Supervisory Board – in the context of self-assessing its
performance – deemed the work of both committees to have been very good.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
16
Javno
Public
Unaudited business results of the Petrol Group in 2023
At its 49
th
meeting of 15 March 2024, the Supervisory Board discussed the unaudited business
results of the Petrol Group and Petrol d.d., Ljubljana, for 2023.
The Petrol Group’s sales revenue stood at EUR 7.0 billion in 2023, down 26 percent on the
year before. The gross profit stood at EUR 677.6 million, which was 72 percent more than in
2022. The EBITDA amounted to EUR 277.1 million and the net profit to EUR 136.6 million.
Endorsement of the 2023 Annual Report
At its 51
st
meeting of 18 April 2024, the Supervisory Board discussed the audited Annual
Report of the Petrol Group and Petrol d.d., Ljubljana for 2023. Having verified the Annual
Report, the financial statements and notes thereto, the Management Board’s proposal on the
allocation of accumulated profit, and the certified auditor’s report, the Supervisory Board
approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2023.
As part of the Annual Report adoption, the Supervisory Board also put forward its position
regarding the corporate governance statement and the statement of compliance with the
applicable code that are included in the business section of the Annual Report of the Petrol
Group and Petrol d.d., Ljubljana for 2023, and concluded that it is a true reflection of the
corporate governance in place in 2023.
Dr Janez Žlak
President of the Supervisory Board
Ljubljana, 18 April 2024
HIGHLIGHTS:
• In 2023, Petrol’s Supervisory Board continued to operate in a diverse composition, which
allowed for an effective complementarity of expertise and exchange of views.
• In 2023, the Supervisory Board held 22 meetings. This reflects its active role in
management and supervision in challenging times.
• The two Supervisory Board Committees carried out key tasks in 2023 to support an
effective supervision and the strategic direction of the Company.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
17
Javno
Public
5. The Petrol Group in the region
The Petrol Group has companies in the following countries:
• Slovenia
• Croatia
• Bosnia and Herzegovina
• Serbia
• Montenegro
• Kosovo
• North Macedonia
• Austria
• Romania
The Group also operates in other countries.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
18
Javno
Public
BUSINESS REPORT
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
19
Javno
Public
6. Strategic orientation
6.1 Our mission, promise, vision and values
Mission
Through a broad range of energy commodities, comprehensive energy solutions and a digital
approach, we are putting the user at the centre of our attention. We want to become the first
choice for shopping on the go. Together with our partners, we create solutions for a simpler
transition to cleaner energy sources. We are building a green energy future in a decisive and
active manner, increasing the value for our customers, shareholders and society in the long
run.
Promise
Through the energy transition, we create a green future and make a significant contribution to
protecting our environment.
Vision
To become an integrated partner in the energy transition, offering an excellent customer
experience.
Values
• Respect: We respect fellow human beings and the environment.
• Trust: We build partnerships through fairness.
• Excellence: We want to be the best at all we do.
• Creativity: We use our own ideas to make progress.
• Courage: We work with enthusiasm and heart.
At Petrol, we feel a strong sense of responsibility towards our employees, customers,
suppliers, business partners, shareholders and society as a whole. We meet their expectations
with the help of motivated and business-oriented staff, we adhere to the fundamental legal and
moral standards in all the markets where we operate, and we protect the environment.
6.2 Strategy of the Petrol Group for the 2021–2025 period
On 28 January 2021, the Supervisory Board of Petrol d.d., Ljubljana endorsed the Strategy of
the Petrol Group for the 2021–2025 period, which defines the path to a successful future
through a vision, objectives and strategic business plan. Ensuring business growth and
increasing the profitability of operations while maintaining the commitment to sustainable
development are the main principles underpinning the preparation and implementation of the
strategic plan.
The environment in which the Petrol Group operates is facing important changes. The energy
transition towards a low-carbon company and the development of new technologies are
transforming the established ways energy commodities are produced, sold and used. Petrol is
committed to making a transition to green energy and is dedicating a significant share of its
investments to achieve it. The strategy of the Petrol Group defines clear targets for
implementing our vision. While co-creating opportunities brought about by the energy
transition, we will also continue to supply the market with hydrocarbons. This helps us focus
on our principal activity, which is to supply energy commodities, as it is this area where we still
see great potential in connection with the energy transformation.
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2023
20
Javno
Public
We will continue to strengthen our sales network in the region. Thanks to new digital
channels, a broader range of energy commodities and a personalised offer, we are
following trends, getting closer to our customers, and helping them make a transition from
traditional energy sources to cleaner renewable energy. Our aim is to become a key link in a
broader ecosystem by offering energy sources that are adapted to and co-shape the market.
For this reason, we strengthen operational efficiency to free up additional funds for investments
in renewable energy production.
We understand the importance of sustainable development. The transition to a low-carbon
energy company, partnership with employees and the social environment, and the circular
economy constitute the Petrol Group’s commitments in this strategic period. As a partner to
industry, the public sector and households, Petrol is taking a leading role in achieving
environmental goals.
Through the continuous development of fuels, we will actively contribute to reducing emissions.
At the same time, we will help reduce the carbon footprint of both the Petrol Group and our
customers by pursuing clear sustainable policies.
We want to become the first choice for shopping on the go in our traditional segment of oil
products and merchandise and services.
In this strategic period, we will remain present in all markets, focusing on:
• Slovenia, where we will consolidate our position as a leading energy company and partner
in the energy transition;
• Croatia, where we will use our sales network to expand our portfolio of customers in the
field of energy commodities and energy transition services and invest in renewable
electricity generation; and
• Serbia, where we will increase our share in the energy commodities sales market.
We strive to remain the first choice for energy transition projects in the region by offering
integrated services with high added value. We develop and strengthen our presence in the
supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in
energy efficiency projects. Renewable electricity generation, of which we position ourselves to
become a major supplier in SE Europe, plays a particular role in the energy transition.
The development of new solutions in the field of electro-mobility and mobility services
shows a great potential for development. In doing so, the Petrol Group focuses on charging
infrastructure (the establishment, management and maintenance of charging infrastructure for
electric vehicles and the provision of charging services) and mobility services (e.g. operating
leasing, fleet electrification and fleet management services).
Strategic objectives for 2025:
• EBITDA of EUR 336 million;
• net debt/EBITDA less than 1;
• net profit of EUR 180 million;
• CapEx in the 2021–2025 period in total amounting to EUR 698 million, of which 35
percent in energy transformation and the rest mainly in the expansion and upgrade of the
retail network and the digitalisation of operations;
• renewable electricity output of 160 MW;