Slide 1: 2023 Full Year Results Presentation
AMPOL LIMITED ACN 004 201 307 29-33 BOURKE ROAD ALEXANDRIA NSW 2015 ASX Release 2023 Full Year Results Presentation Monday 19 February 2024 (Sydney): Ampol Limited provides the attached Results Presentation for the full year ended 31 December 2023. Authorised for release by: the Board of Ampol Limit
Slide 2: Welcome and overview
2 Welcome and overview Matt Halliday Managing Director & CEO
Slide 3: Safety performance
3 Safety performance Fuels and Infrastructure personal safety Convenience Retail personal safety Z Energy personal safety1 14.0 10.7 10.1 4.6 4.2 4.6 6.2 6.2 3.5 3.8 5.7 1.9 2.2 3.3 3.8 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Days Away from Work Injury Frequency Ra
Slide 4: FY 2023 highlights
4 FY 2023 highlights Full Year Group RCOP1 EBITDA2 of $1,756 million, Group RCOP EBIT2 of $1,297 Another strong financial performance million, Statutory NPAT of $549 million Full year total sales volume of 28.4 billion litres Strong balance sheet Leverage at 1.6 times (LTM3 Basis); Net borrowi
Slide 5: 2023 key Group metrics
5 2023 key Group metrics1 Benefits of integrated supply chain delivers another strong financial performance during year of heightened volatility and disruption Profit metrics Balance Sheet metrics Sales volume Capital management $1,756 m $2,195 m 28.44 BL 120 cps Group RCOP EBITDA Net borrowings Tot
Slide 6: The strategy is delivering improved earnings and mix
6 The strategy is delivering improved earnings and mix GROUP RCOP EBIT1 ($M) Ampol Sales Volumes (BL) +112% +35% 1,317 1,297 Includes $25.5m RCOP 28.44 EBIT from Gull in the months of May to July 362 24.33 overlapping with the 22.04 period of ownership of 687 21.08 20.09 Z Energy 611 587 70 371 159
Slide 7: Group financial result
7 Group financial result Greg Barnes CFO
Slide 8: Growth in fuel sales to end customers
8 Growth in fuel sales to end customers Total fuel sales grew by 17% with growth across Australian fuel sales, International and the 12 months’ contribution from Z Energy Ampol Sales Volumes (BL) Australian wholesale volume 28.44 Ampol’s Australian wholesale volumes up1 ~16% with growth across all
Slide 9: FY 2023 Group financial performance
9 FY 2023 Group financial performance Growth in non-refining divisions improved the quality of the earnings mix FY 2023 FY 2022 % Δ FY 2022 FY 2023 FY 2022 % Δ FY 2022 Continuing1 Continuing1,2 Continuing1,2 Group ($M) Group1 ($M) Group1($M) ($M) ($M) ($M) Group RCOP EBITDA 1,755.5 1,705.5 2.9% 1,75
Slide 10: FY 2023 GROUP RCOP EBIT result
10 FY 2023 GROUP RCOP EBIT result Strong Group result supported by growth in non-refining earnings FY 2023 v FY 2022 Group RCOP EBIT1 Continuing ($M) 1,756 1,706 Variance in (4) 18 2H 2023 158 (12) 16 (345) (459) 437 219 1,269 1,297 (327) Variance in 1H 2023 FY 2022 FY 2022 D&A FY 2022 Lytton EBITDA
Slide 11: Fuels and Infrastructure (F&I) result
11 Fuels and Infrastructure (F&I) result Strong F&I (Ex-Lytton) performance FY 2023 v FY 2022 F&I RCOP EBIT ($M) (59) 1,011 18 169 901 891 25 (12) (345) (155) 195 736 (327) Includes ~$75million impact of the FCCU outage with partial offsets in F&I (Ex-Lytton) FY 2022 F&I FY 2022 Gull FY 2022 FY 2022
Slide 12: F&I (Ex-Lytton and Future Energy) continuing operations
12 F&I (Ex-Lytton and Future Energy) continuing operations F&I (Ex-Lytton and Future Energy)1 RCOP EBIT ($M) continuing operations +112% F&I (Ex-Lytton and Future Energy) RCOP EBIT from continuing operations more than 419 doubled compared with FY 2022 and is 26% higher than pre-COVID levels in FY
Slide 13: Convenience Retail key metrics
13 Convenience Retail key metrics Strong growth in fuel margin and continued strong shop performance Retail fuel volume Network KPIs RCOP EBITDA was $538.0 million up 3.1% compared to FY 2022 3,780 ML 636 Strong shop performance considering material decline in tobacco sales (down 19%1) Total ret
Slide 14: Convenience Retail key metrics
14 Convenience Retail key metrics Total Fuel & Shop Margin and RCOP EBIT ($M) 1000 355 375 Convenience Retail Fuel Volumes (BL) 347 4.76 -1.6% 800 325 811 801 831 4.10 3.90 3.84 3.78 600 702 730 275 400 287 200 201 254 225 0 175 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Margin EBIT FY 2019 FY 2020 FY
Slide 15: Convenience Retail result
15 Convenience Retail result Stronger fuel margins and continued strong shop performance improved earnings FY 2023 v FY 2022 Convenience Retail RCOP EBIT ($M) (10) 538 (13) (7) 522 59 (14) Recontracted (183) 175 Largely 347 marketing, 355 returning to historic levels post rebrand FY 2022 CR FY 2022
Slide 16: New Zealand (incl Z Energy)
16 New Zealand (incl Z Energy) Delivering on the acquisition business case New Zealand volume sold split by sector (%) Delivered targeted benefits and synergies of NZ$60-80 million per annum — Business simplification on track Transition to Ampol supply completed; New Zealand segment includes gai
Slide 17: Z Energy retail key metrics
17 Z Energy retail key metrics Z Fuel & Shop Gross Margin and RCOP EBIT (NZ$M) 500 225 Z Energy Retail Fuel Volumes2 (BL) 2.3% 475 1.57 400 442 451 205 1.41 1.41 1.45 416 1.38 386 300 173 185 167 161 200 149 165 100 134 145 0 125 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Margin EBIT FY 2019 FY 2020 FY
Slide 18: Balance sheet and cash flow
18 Balance sheet and cash flow Strong balance sheet maintained; maximising value and shareholder returns Movement in net borrowings1 ($M) Includes favourable working capital movement (596) of ~$400m reflecting lower inventories (shipment timing) and 1,926 working capital initiatives (521) (2,359) (2
Slide 19: A disciplined approach to capital allocation
19 A disciplined approach to capital allocation Capital management since 2015 (A$m) Capital Allocation Framework 655 655 Ampol remains committed to its Capital Allocation Framework and is focused on “getting the balance right” between shareholder returns, core business optimisation and 119 143 app
Slide 20: Strategy update
20 Strategy update Matt Halliday Managing Director & CEO
Slide 21: We are delivering on our strategic objectives
21 We are delivering on our strategic objectives Purpose Powering better journeys, today and tomorrow Strategy • Amplify premium fuel at 53.7% of Convenience Retail fuel sales volumes BRING BACK AMPOL • Strong connection built with Australian consumers, with Brand Preference results demonstrating th
Slide 22: Australian and New Zealand passenger EV market growth
22 Australian and New Zealand passenger EV market growth Ampol is establishing an early position in on-the-go EV charging and maintains flexibility to adjust to the pace of the transition. Growth in BEV adoption has outpaced growth in the public fast charging network Ampol electric vehicle charging
Slide 23: Clear priorities for 2024
23 Clear priorities for 2024 ENHANCE Progress Lytton Ultra Low Sulfur Fuels Project; expect FID in 1Q 2024; increased refiner margin potential based on historical trends Investing in Lytton to ensure asset reliability and integrity for longer term including planned T&I program for 2024/25 the core b
Slide 24: Outlook and closing remarks
24 Outlook and closing remarks Matt Halliday Managing Director & CEO
Slide 25: Global refining supply demand balance remains tight
25 Global refining supply demand balance remains tight Refining utilisation rates are expected to remain high as demand growth and refining capacity additions are well matched Global Demand versus refinery supply and utilisation1 120 86% Global refining utilisation remains healthy with some new ca
Slide 26: Current trading conditions and outlook
26 Current trading conditions and outlook Strong start to the year Current trading Medium term Overall the Group has had a strong start to the year Geopolitical disruption likely to be a feature for some time Realised Lytton refiner margin in January was US$13.33/bbl, including the impact of
Slide 27: Why invest in Ampol
27 Why invest in Ampol Operating divisions RCOP EBIT ($m) Lytton A resilient and high-quality business mix F&I International (continuing operations) — Owning and operating an integrated fuels value chain. Uniquely positioned refinery F&I Australia (Ex Lytton and Future Energy) 362 Z Energy — Growi
Slide 28: <L oe) O
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Slide 29: Appendix
29 Appendix Our unique competitive strengths 30 Our integrated platform creates opportunities 31 Reconciliation of continuing operations 32 Product sales volumes 33 Fuels and Infrastructure – Financial highlights 34 Singapore Weighted Average Margins 35 Lytton refinery key metrics 36 Lytton refinery
Slide 30: Our unique competitive strengths
30 Our unique competitive strengths Ampol possesses qualities that are unmatched in the Australian and New Zealand transport fuels industries Strategic assets Supply chain expertise Deep customer base Iconic brands Decarbonisation Portfolio of privileged Australia’s and New Zealand’s Significant B2B
Slide 31: Our integrated platform creates opportunities
31 Our integrated platform creates opportunities The integrated value chain of the traditional fuels business provides fuel security for today and provides a pathway to pursue mobility energy for tomorrow B2B Integration benefits Earnings are diversified by participation across the full supply cha
Slide 32: Reconciliation of restatements and continuing operations
32 Reconciliation of restatements and continuing operations 2022 Financial results1 2022 2022 2022 Continuing Discontinued Group ($M) ($M) ($M) Group RCOP EBITDA 1,764.0 1,705.5 58.5 Group RCOP D&A (447.5) (436.5) (11.0) RCOP EBIT – Lytton 686.7 686.7 - RCOP EBIT – F&I (Ex Lytton and Future Energy)
Slide 33: Product sales volumes
33 Product sales volumes F&I (Australia) Volumes F&I (International) Volumes CR Fuels Volumes Z Energy Fuels Volumes1 BL BL BL BL 18.00 10.00 5.00 4.76 5.00 16.29 8.99 0.08 15.59 4.39 8.45 0.10 0.04 4.10 15.00 2.68 14.05 3.90 8.00 4.00 0.06 3.84 3.78 4.00 13.58 0.08 2.72 7.52 1.44 0.05 0.67 2.50 0.0
Slide 34: Fuels and Infrastructure – Financial highlights
34 Fuels and Infrastructure – Financial highlights 20236 20226 Change (%) Notes Australian Sales Volumes (BL) 15.59 14.05 11% International Sales Volumes (BL) (excluding Z Energy) 8.45 7.52 12% 1. F&I Australia includes all earnings and costs associated (directly or Lytton Total Production (BL) 5.97
Slide 35: Singapore Weighted Average Margins
35 Singapore Weighted Average Margins While Singapore product cracks have eased from the unprecedented levels of the first half of 2022, they remain above the historical average. Ampol Singapore Weighted Average Margin in April and May affected by FCCU outage Singapore Weighted Average Margin (US$/b
Slide 36: Lytton refinery key metrics
36 Lytton refinery key metrics Lytton Refiner Margin1 Operational performance LRM (US$/bbl and Acpl) BL High Value Production Volumes, Production Utilisation (%) Impacted 29.0 by FCCU 3.50 84 87 86 86 83 % 79 78 76 outage 3.00 80 19.0 2.50 55 14.2 13.7 60 32.96 11.3 2.00 43 9.7 9.2 10.2 1.50 3.01 3.
Slide 37: Lytton Refinery result
37 Lytton Refinery result FY 2023 v FY 2022 Lytton RCOP EBIT ($M) 750 (21) 687 64 (266) 32 (71) 424 (61) 362 FY 2022 FY 2022 D&A FY 2022 Volume USD LRM Impact of Opex & other FY 2023 FY 2023 D&A FY 2023 RCOP EBIT RCOP EBITDA AUD on LRM RCOP EBITDA RCOP EBIT
Slide 38: Convenience Retail – Financial highlights
38 Convenience Retail – Financial highlights 20238 20228 Change (%) Notes Period end COCO sites (#)1 632 640 (1.3%) Period end CORO sites (#) 4 5 (20%) 1. Includes 25 unmanned diesel stops down from 35 in FY 2022 Total sales volumes (BL) 3.78 3.84 (1.6%) 2. Excludes GST and excise (as applicable) -
Slide 39: New Zealand (incl Z Energy) – Financial highlights
39 New Zealand (incl Z Energy) – Financial highlights 2023 20221 Retail sales volume (ML)2 1,446 963 Notes Commercial sales volume (ML) 2,280 1,444 1. FY 2022 result represents the Ampol period of ownership from Supply terminal and export sales (ML) 663 356 May 2022. FY 2022 amended to reflect FY 20
Slide 40: Our assets – Retail infrastructure
40 Our assets – Retail infrastructure Ampol Australian retail network Ampol Australian retail network Leased- Dealer Dealer Site rationalisation is nearing completion with site count down from Owned Leased Total2 APT1 Agency owned 1,824 at 31 December 2022 to 1,790 at 31 December 2023; 4 franchise
Slide 41: Disciplined capital allocation
41 Disciplined capital allocation Continued focus on operating and capital efficiency, governed by a well-defined Capital Allocation Framework Capital Allocation Framework1 Ampol is committed to maintaining a strong investment grade credit rating; currently Baa1 from Moody’s Stay-in-business capex
Slide 42: Capital Expenditure and Depreciation & Amortisation
42 Capital Expenditure and Depreciation & Amortisation Capital Expenditure1 RCOP Depreciation & Amortisation 2023 2022 2023 ($M) 2022 ($M) ($M) ($M) Lytton Convenience Retail 183.4 174.8 218.2 93.3 Fuels and Infrastructure2 153.0 157.3 Fuels and Infrastructure (Ex-Lytton)2 64.3 59.3 Future Energy 1.
Slide 43: Strong funding and liquidity platform
43 Strong funding and liquidity platform Underpinned by a strong investment grade credit rating of Baa1 from Moody’s Committed debt maturity profile (A$m) (as at 31 December 2023) Prudent debt maturity profile to minimise refinancing risk and maintain financial flexibility ꟷ $5.0 billion of commit
Slide 44: Significant Items
44 Significant Items 2023 ($M) 2022 ($M) Notes (continued) Software-as-a-service1 (17.8) (7.8) 3. The Group has recognised a $17.6 million expense in the current period relating to an Commercial Settlements2 (4.5) (35.7) increase in environmental remediation provisions for a number of Fuels and Site
Slide 45: Transition strategy is mobility focused and customer led
45 Transition strategy is mobility focused and customer led Rationale Development phase Next steps Battery Electric Vehicle (BEV) is Moved to commercialisation Deployment of on-the-go EV charging networks in a solution for passenger and Australia and New Zealand underway EV CHARGING light commercial
Slide 46: Glossary
46 Glossary $ - Australian Dollar k – Thousand 1H – The period from 1 January to 30 June in any year kb/d – Thousand barrels per day 2H – The period from 1 July to 31 December in any year kWh – Kilowatt hour ARENA – Australian Renewable Energy Agency LFL – Like-for-like bbl – Barrel (equivalent of a
Slide 47: Important Notice
47 Important Notice This presentation for Ampol Limited Group is designed to provide: • an overview of the financial and operational highlights for the Ampol Limited Group for the twelve-month period ended 31 December 2023; and • a high level overview of aspects of the operations of the Ampol Limite
Slide 48: Thank you
VA AMPOL Thank you