RUBIS_REGISTRATION_DOCUMENT_2017

RISK FACTORS, INTERNAL CONTROL AND INSURANCE 4

The Group’s operations are split into 3 divisions: bulk liquid storage (petroleum, chemicals and agrifood products), distribution of petroleum products, and support and services (refining, trading and shipping). These diverse activities and the type of products handled expose the Group to risks that are regularly identified, updated and monitored strictly, in accordance with applicable regulations, international standards and best professional practice.

Using mapping techniques, Rubis annually reviews the risks liable to have a material adverse effect on its business and financial position, including its earnings, reputation and outlook. They are described in this chapter (see section 4.1) and in the chapter on the Group’s corporate social and environmental responsibility (CSR policy) (see chapter 5). In order to avoid unnecessary repetition for the reader, this chapter contains frequent references to the chapter 5 “CSR”, which includes a detailed discussion of the Group’s management of its social and environmental risks. The Group also has internal control procedures (see section 4.2) that contribute to the control of its activities and the effectiveness of its risk management policy. Lastly, for risks that cannot be fully controlled or eliminated, the Group ensures, when they are insurable, that they are covered by adequate insurance policies (see section 4.3).

BULK LIQUID STORAGE: PETROLEUM, CHEMICAL AND AGRIFOOD PRODUCTS Through Rubis Terminal, the Group stores hazardous liquids, including petroleum and chemical products, as well as agrifood products including molasses and edible oils. Its facilities in Europe are therefore subject to stringent regulations, particularly, as a result of the Seveso directives. Rubis Terminal’s primary role is to return the products entrusted to it by its customers in the state in which they were received, with customers being responsible for transportation. These operations do not involve any industrial processing, thus, air discharges and energy consumption are limited. New services have also been developed to accompany the development of biofuels (blending or dilution of products), none of which are liable to generate significant pollution.

DISTRIBUTION OF LPG, AUTOMOTIVE FUEL AND BITUMEN

Through Rubis Énergie, the Group distributes butane and propane (LPG), fuel (gasoline, diesel, kerosene, fuel oil, etc.), notably through its gas stations network, facilities on customer premises and aircraft refueling facilities, and bitumen. The transportation, storage and handling of these different hazardous liquids require particular attention to safety and the environment, and this means implementing rigorous operating systems under strict regulations (such as Seveso in Europe). SUPPORT AND SERVICES ACTIVITY The Group’s support and services division, run by Rubis Énergie, comprises trading and shipping activities, as well as refining. The latter is the sole Group’s business involving industrial transformation; as such, it has a greater environmental impact than Rubis’ other subsidiaries.

2017 Registration Document I RUBIS 56