26 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Feb 7, 2024
Slide 1: Q4/FY 2023 Results Presentation
ADNOC Classification: Public Q4/FY 2023 RESULTS PRESENTATION INVESTOR & ANALYST CONFERENCE CALL 7 February 2024 ADNOC DISTRIBUTION
Slide 2: Agenda
ADNOC Classification: Public Agenda 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q4/FY 2023 RESULTS 04 CLOSING REMARKS 2 © ADNOC Distribution
Slide 3: Disclaimer
ADNOC Classification: Public Disclaimer This communication includes forward-looking statements which relate to, among other things, our plans, objectives, goals, strategies, future operational performance and anticipated developments in markets in which operate and in which we may operate in the fut
Slide 4: Executive Summary
ADNOC Classification: Public 01 EXECUTIVE SUMMARY SPEAKER: ATHMANE BENZERROUG CHIEF STRATEGY, TRANSFORMATION & SUSTAINABILITY OFFICER ADNOC DISTRIBUTION
Slide 5: ADNOC Distribution equity story
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix ADNOC Distribution equity story Track record of shareholder Focus on delivering Solid performance and value creation sustainable growth cashflow visibility Transforming the largest UAE f
Slide 6: Q4 & FY 2023 achievements & 2024 outlook
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Q4 & FY 2023 achievements & 2024 outlook Delivering on key commitments to capital markets Network expansion, record volumes, Outlook: disciplined growth through Record-breaking EBITDA in
Slide 7: Focus on sustainability
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Focus on sustainability Significant progress made in 2023 in integrating sustainability into our operations Sustainability achievements in 2023 First UAE fuel retailer to announce 2030 F
Slide 8: Future proofing our business
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Future proofing our business Leading mobility and energy transition EV charging rollout ✓ EV strategy promotes clean mobility solutions and unlocks new revenue streams ✓ Launched the fir
Slide 9: Growth Strategy Update
ADNOC Classification: Public 02 GROWTH STRATEGY UPDATE SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 10: Committed to 100% HSE
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Committed to 100% HSE Strong HSE performance ✓ ADNOC Distribution is committed to maintaining the highest standards of safety in delivering its product and services 0.03 mmhrs Zero Zero
Slide 11: Key strategic update: Fuel business in 2023
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Key strategic update Fuel business in 2023 Fuel volumes in the UAE and KSA hit new record: 11 bn+ liters, +12% Y-o-Y: ✓ Retail fuel volumes: +9.6% Y-o-Y ✓ Commercial volumes: +16.2% Y-o-
Slide 12: Key strategic update: Non-fuel retail business in 2023
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Key strategic update Non-fuel retail business in 2023 Double-digit growth in non-fuel retail segment ✓ Non-fuel retail gross profit: +20% Y-o-Y ✓ UAE number of non-fuel transactions up 1
Slide 13: ADNOC Rewards
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix ADNOC Rewards A key driver for incremental growth through enhanced customer experience and loyalty > 1.9M MEMBERS ENROLLED New Tiers system with personalized rewarding experience +c.350K
Slide 14: Q4/FY 2023 Results
ADNOC Classification: Public 03 Q4/FY 2023 RESULTS SPEAKER: WAYNE BEIFUS CHIEF FINANCIAL OFFICER ADNOC DISTRIBUTION
Slide 15: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Operating performance Robust growth in both fuel and non-fuel businesses driven by management initiatives, mobility and ongoing economic growth Total fuel volumes, UAE and KSA (mL) Numbe
Slide 16: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Financial performance Solid growth in underlying EBITDA and Net Profit supported by volume growth, higher contribution from NFR and international operations underpinned by efficiency imp
Slide 17: Gross profit by operating segment
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Gross profit by operating segment $m Q4 2023 Q4 2022 YoY (%) 2023 2022 YoY (%) Retail (B2C) 322 253 27.4% 1,225 1,152 6.3% of which fuel 263 209 26.0% 1,017 978 4.0% of which non-fuel1 5
Slide 18: OPEX update
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix OPEX update Delivered $28m like-for like OPEX savings in 2023, above market guidance ($25m) Other1 13% Utilities 9% 2023 cash OPEX split 4% ($604m) Distribution 9% & marketing 66% Repair
Slide 19: EBITDA by operating segment
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix EBITDA by operating segment $m Q4 2023 Q4 2022 YoY (%) 2023 2022 YoY (%) Retail (B2C) 193 109 77.5% 720 653 10.4% Retail margin, % 11.3% 7.5% 11.4% 13.5% Commercial (B2B) 67 69 -3.4% 285
Slide 20: Robust cash generation
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Robust cash generation Net debt / Free cash flow of $1,096 million 0.78x 0.62x EBITDA 370 -279 -149 27 -138 1,005 -714 748 870 Cash at Cash flow from Working capital Capex Paid Acquisiti
Slide 21: Closing Remarks
ADNOC Classification: Public 04 CLOSING REMARKS SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 22: Closing remarks
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Closing remarks Deliver incremental growth with a focus operational excellence and futureproofing our business Strong execution Deliver sustainable Attractive shareholder momentum in 202
Slide 23: Q&A
ADNOC Classification: Public Executive Summary Strategy Update Q4 2023 Financial Results Closing Remarks Appendix Q&A Bader Saeed Al Lamki Wayne Beifus Athmane Benzerroug Chief Executive Officer Chief Financial Officer Chief Strategy, Transformation & Sustainability Officer © ADNOC Distribution
Slide 24: Q4 2023 Results Presentation
ADNOC DISTRIBUTION Q4 2023 RESULTS PRESENTATION IR@ADNOCDISTRIBUTION.AE ADNOC DISTRIBUTION
Slide 25: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q4 Q42023 2023Financial FinancialResults Results Closing Remarks Appendix Operating performance million liters Q4 2023 Q4 2022 YoY (%) 2023 2022 YoY (%) 2023 Retail (B2C) 1,880 1,747 7.6% 7,220 6,586 44.9% 11 billion liters Fuel volumes
Slide 26: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q4 Q42023 2023Financial FinancialResults Results Closing Remarks Appendix Financial performance Performance supported by volume growth, higher contribution from international operations and efficiency $m Q4 2023 Q4 2022 YoY (%) 2023 2022