OST UPDATES APSDI Meeting August 14, 2013
AGENDA Q2 Performance RBA Renewal RBA Contract Changes 2014 Business Plan Timelines AOB 2
Q PERFORMANCE 3
Q2 has been the best performing quarter since And the trend looks likely to continue in Q % of Retailers are hitting at least 95% of their Targets. Strong performance will likely continue in Q3. OST will review with Districts the sustainability of the volume increase w/o Coke 4 40% of Retailers are above 110% as of Q2.
RBA RENEWAL 5
PROCESS FOR RENEWAL Assessment on Performance was done taking in numerical and qualitative factors, and discussed between OST, the Districts, and the GM Full year RPI General Compliance Overall performance and potential Decision for Renewal Direction and priority for renewal will be given to performing Retailers. Borderline assessed performers will be given 1-year term renewal.
TIMELINE for RENEWAL 7 Aug : Collection of COR, Business Permit, Retailer Contract Data Wk of Aug 26: Release of Batch 1 contracts Wk of Sept 9: Release of Batch 2 contracts Wk of Sept 23: Release of Batch 3 contracts
REQUIREMENTS for Release of Contract NAME on BIR Certificate of Registration Mayor’s / Business Permit For all sites 8 GSAP Name = No unreturned amendments from 2012 and 2013 NO RENEWAL for Retailers with UNRETURNED AMENDMENTS.
Contract Management There will be six (6) copies of the RBA Contract SENT TO RETAILER for signing: Retailer copy District Copy OST copy Legal copy Shell Notary copy Retailer Notary copy Five (5) copies should be RETURNED BY RETAILER for Shell side notary and signature. Retailer copy will be given after Shell side notary and signatures are finished. 9
RBA CONTRACT CHANGES 10
The RBA contract remains largely the same except for a few major changes concerning HSSE, General Business Principles, and customizations for the PH market. 1. Specific Start and End dates on the cover page. 2. Additional clauses and section on Anti-Bribery and Corruption. 3. Additional sections (6.1 and 20) on Shell General Business Principles, Shell Code of Conduct, and Child Labor. 4. Additional section (13.9) on Audit Rights, Internal Controls, and Records Keeping 5. Additional clause on Red Card offenses – breach of Anti-bribery laws, Competition laws, Fast Food Offering schedule. 6. Additional clause ( ) on Insurance coverage. 7. Additional clause (21.3.2) on validity of Communications sent between Shell and the Retailer. 11
8. Update of Schedule 3: Items of Equipment, Ownership, and Maintenance Obligations to align with latest JCI/Retailer Scope of Work. 9. Update of Schedule 4: Remuneration – to use the new format of PDF business plans; and add the Select Royalty per product group table. 10. Update of Schedule 6: Transaction Cards – no merchant fees for Fleet card; and requirement to have a credit card facility on site where applicable. 11. Added Schedule 9: Anti-Bribery Laws Compliance Statement. 12. Added Schedule 10: Life-saving Rules 13. Updated Schedule 11: Current product names 14. Update Schedule 12: Price for Motor Fuel and Additional Arrangements – Summary of Delivery Promise 12
Updated Delivery Promise for Fuels OLD NEW
Updated Delivery Promise for Lubes 14 OLD NEW
2014 BUSINESS PLAN TIMELINES 15
Target Setting for 2014 September 1 to 30 Benchmark Review with APSDI September 11 Release of Draft 2014 BPs October 21 Submission of Negotiated BPs November 6 16 Approvals for 2014 BP November 15 Printing and Release of BPs for signing November 25 Return of signed BPs to Shell December Business Plan will not be ACTIVATED and no FSA will be run until the 2014 Business Plan Amendments have been returned.