The Unimot Group has published its 2024-2028 strategy

Date of publication: 25.04.24

The Unimot Group has published its business strategy, outlining its development plans through 2028. The strategy responds to the challenges of the current situation and the future of the fuel and energy market, as well as the growing demands of environmental protection and climate change. During the strategy period, the goal of the Unimot Group is to maximize the potential of its existing key business segments and to strengthen their market position. In parallel, the Unimot Group assumes to actively participate in the energy transition and to increase its market share, and the resulting the value of the Group for all its stakeholders, while achieving climate neutrality by 2050. All the business goals set in Unimot Group’s business strategy are based on the goals set in the ESG area, and thus the Group emphasizes the importance of sustainable management.

In its strategy, the Unimot Group has set the mission to provide clean and affordable energy. Organizational agility, cost efficiency, openness to change and going beyond the horizon are expected to allow the Group to stay ahead of the competition by offering the best products and highest quality service in the market, thereby sustainably growing a diversified business.

The Unimot Group points to its awareness of the growing demand for energy and stresses that, using its own potential, it wants to work to meet demand today and play a significant role in building the energy system of the future. As indicated in the strategy, Unimot Group’s ambition is to actively participate in the the energy transition, which the Group intends to achieve by investing and expanding its offerings to provide customers with access to modern low-carbon energy products.

The Group wants to shape the market and have a positive impact on the environment, local communities and its employees. By growing responsibly and sustainably, the Group will increase its market share and consequently build its value for all its stakeholders.

“We have developed a strategy for 2024-2028 that takes into account the challenges of a transforming world, while placing great emphasis on maximizing the potential of the businesses on which our existing operations are based.Today we are an independent multi-utility group, in which each segment could be a separate, profitable company. During the transition period, which brings us successively closer to the Group’s target zero-carbon status in 2050, we want to take advantage of the multifaceted synergies of our business segments and build value for all our stakeholders by increasing market share. The strategy is our guidepost, but it should be noted that all our initiatives will be carried out based on the principles that have guided us since the beginning of Unimot Group’s operations in the market. Above all, these include the flexible response to current and identified future market challenges, dynamism in action and speed of decision-making that allow us to respond almost immediately even to very demanding changes in the market environment,” says Adam Sikorski, president of the management board of Unimot.

Unimot Group’s 2024-2028 strategy includes two-pronged activities:

Maintaining efficient operations in the areas of fuels, trading and logistics along with gradual expansion of the product portfolio and diversification of the customer portfolio towards fuels and energy with better emission performance.
Making investments in new developments, including in the areas of electric power and heating, in order to diversify revenue sources.

In line with the assumptions of the strategy, maintaining its position of the independent leader in the import and distribution of liquid fuels will allow the Group to finance the construction of a diversified investment portfolio. During the term of the strategy, Unimot will reduce its carbon footprint by using renewable energy, investments in sources and asset modernization.

In order to increase the efficiency of its operations, the Unimot Group intends to concentrate its key business activities in the energy transition area in one company – Unimot Energia i Gaz. This Unimot Group company will, as before, be responsible for RES investments (with plans to invest in electricity and heat sources), the RES implementation offer and component distribution to external customers, as well as the sale of electricity and natural gas. In addition, it will be responsible for supporting local communities in energy transition (energy clusters and cooperatives), which used to be concentrated in the Energy Cluster Operator (OKE), energy trading and balancing services to be handled by Tradea, and the production and sale of electricity and heat to be concentrated in RCEkoenergia. In this way, Unimot Group intends to achieve synergies in its energy transition activities.

The strategy sets out commitments that govern the Unimot Group’s approach to sustainable development, defining courses of action and goals for environmental and climate protection, concern for the society, and attention to the highest standards of corporate governance.

The identified strategic action directions and designated directions of development in the ESG area, allowed to define Unimot Group’s strategic goals for 2024-2028:

1. EBITDA growth to reach PLN 690 million in 2028.
2. Accumulated net profit of PLN 1 billion by 2028.
3. Share of transition and transformation segments in Group’s EBITDA (excluding terminals, logistics and gas stations) at 40% in 2028.
4. Investment in transformational business at 700 million PLN by 2028.
5. Payment of annual dividend of at least 30% of the net income.
6. EBITDA/net debt ratio (excluding debt from mandatory reserves) at 40%.

The Unimot Group’s 2024-2028 Strategy also identifies strategic development areas for energy transformation and defines goals for this area:

1. Investment in proprietary sources to support the development of Unimot Group’s offerings as well as energy transformation.
2. Using experience from the heating market and energy communities – RCEkoenergia and the energy cluster in Zywiec.
3. Declaration of investment of at least 50% of net income into energy transition
over 5 years, which will translate into investments of about PLN 700 million by 2028.
4. Achieving climate neutrality by 2050.

At the same time, the Group has set a specific strategic goal for each of its business areas, which has been broken down into detailed development and investment plans. Each segment also has a target level of the 2028 EBITDA earnings.

Strategic goals in each segment with a target 2028 EBITDA level:

Fuels and biofuels: further product diversification and increase in the share of high-margin products (assumed 2028 EBITDA: PLN 161.7 million)
AVIA and AVIA Card gas stations: doubling the fuel sales volume and non-fuel sales result (assumed 2028 EBITDA: PLN 34.2 million)
LPG: increase in market share by diversifying logistics, procurement and markets (assumed 2028 EBITDA: PLN 23.5 million)
Infrastructure and logistics – terminals: market opening – increase in the scale of operations (assumed 2028 EBITDA: PLN 98.9 million)
Infrastructure and logistics – railways: increase in the scale of operations – doubling the transported volume compared to 2023 (assumed 2028 EBITDA: PLN 48.4 million)
Bitumens: increase in volumes and maximization in profit (assumed 2028 EBITDA: PLN 114.9 million)
Solid fuels: further development of the current business and diversification of the product portfolio (assumed 2028 EBITDA: PLN 9 million)
Natural gas: development of the position of the largest independent seller of natural gas in Poland (assumed 2028 EBITDA: PLN 82.5 million)
Electricity: growth in sales volumes and increase in the share of the green energy offered (assumed 2028 EBITDA: PLN 73.9 million)
Photovoltaics: increase in the market share in implementation of RES installations and component sales (assumed 2028 EBITDA: PLN 14.8 million)
RCEkoenergia: increase in production of electricity and heat in a modernized source adapted to environmental requirements and active participation in the transformation of the heating market (assumed 2028 EBITDA: PLN 9.7 million)