Ampol Limited · ASX:ALD
Ampol — Shareholder Meeting (February 2016)
81 slides from Ampol's shareholder meeting presentation, Feb 11, 2016
Slide 1: ASX Announcement – 2014 AGM Addresses & Presentation
BY ELECTR RONIC LOD DGEMENT A ASX ANNOU UNCEMENT CALTEX A AUSTRALIAA LIMITED CN 004 201 307 AC LEVEL 24 4, 2 MARKET T STREET SYDNEY NNSW 2000 AUSTRALIA A 8 May 2014 Company A Announcem ments Office e Australian Securities Exchange E CALTEX A AUSTRALIA A LIMITED 2014 ANNUAL GENE ERAL MEET TING – AD D
Slide 2: 2014 AGM Addresses – Welcome & Opening
CALTEX AUSTRALIA LIMITED ACN 004 201 307 ANNUAL GENERAL MEETING – 8 MAY 2014 2014 AGM ADDRESSES WELCOME & OPENING (SLIDE 1 – CALTEX AUSTRALIA LIMITED) Good morning everyone, and welcome to the 2014 Annual General Meeting of Caltex Australia Limited. We have a quorum of shareholders in attendance, so
Slide 3: AGM – Addresses
AGM – Addresses (SLIDE 6 – GREIG GAILEY) Greig Gailey Greig Gailey is seated next to Julian. Greig joined the Board in December 2007. He is the Chairman of the Board’s Human Resources Committee. (SLIDE 7 – BARBARA BURGER) Barbara Burger Next to Greig is Barbara Burger. Barbara joined the Board in Ju
Slide 4: AGM – Addresses
AGM – Addresses • Bruce Rosengarten: General Manager – Marketing. Bruce was recently appointed to his role in December last year and this is his first AGM with Caltex. Bruce is responsible for the brand, marketing and sales of all finished products for Caltex across all distribution channels. Bruce
Slide 5: AGM – Addresses
AGM – Addresses If you wish to change your vote while the item is still open, you can submit a new vote by pressing button one to vote “for” or button two to vote “against” the resolution. Your original vote will be cancelled and your new selection will be counted. If you decide to abstain after you
Slide 6: AGM – Addresses
AGM – Addresses (SLIDE 23 – FATALITY FREE FRIDAY 2014) Since 2011, Caltex has been sponsoring the Australian Road Safety Foundation which runs Fatality Free Friday. This sponsorship enables Caltex to combine our unwavering focus on safety with Australia’s largest community-based road safety program.
Slide 7: AGM – Addresses
AGM – Addresses In particular, the closure of the Kurnell refinery, the sale of Shell’s business in Australia to Vitol, one of the world’s largest trading companies, the announcement of BP to close its refinery at Bulwer Island in Brisbane, and the entry of other trading companies such as Trafigura
Slide 8: AGM – Addresses
AGM – Addresses excellent work in 2013. However, a characteristic of our short term incentive scheme is that a profit hurdle must be met and, if that is not achieved, then the scheme does not pay out. (SLIDE 32 – SHAREHOLDER RETURNS) Our measure of success continues to be to safely and reliably deli
Slide 9: AGM – Addresses
AGM – Addresses (SLIDE 36 – SAFETY MEASURES) One of those leading metrics is spills greater than 160 litres or any marine spills. In 2013, Caltex recorded 15 spills. This is our best result to date and compares favourably with 17 spills in 2012. While this is an improvement year on year, our aim is
Slide 10: AGM – Addresses
AGM – Addresses year on year and sales of Vortex Diesel grew 24% over the prior year. This was primarily driven by the continuing shift in customer trends to more efficient vehicles requiring premium fuels. Caltex acquired the Queensland Fuel Group and associated entities in October 2013 for a purch
Slide 11: AGM – Addresses
AGM – Addresses Chevron to assist with the procurement and supply of these imported refined fuels, with associated shipping services. (SLIDE 41 – Q1 2014 UNAUDITED PROFIT RESULTS) Caltex’s unaudited 2014 first quarter profit after tax is $96 million on a replacement cost of sales operating profit ba
Slide 12: AGM – Addresses
AGM – Addresses Caltex’s values of care, own, trailblaze, move, serve and win are embedded and inherent across our organisation. We acknowledge that achievement of our goals requires a highly capable organisation. This need spans our entire workforce, which is diverse in occupation and dispersed thr
Slide 13: 2014 Annual General Meeting
2014 Annual General Meeting 10am (AEST), Thursday 8 May 2014
Slide 14: Board of Directors
Board of Directors Elizabeth Bryan, Chairman 2
Slide 15: 2014 Annual General Meeting
2014 Annual General Meeting 10am (AEST), Thursday 8 May 2014
Slide 16: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 4
Slide 17: Board of Directors
Board of Directors Julian Segal, Managing Director & CEO 5
Slide 18: Board of Directors
Board of Directors Greig Gailey, Independent, Non-Executive Director 6
Slide 19: Board of Directors
Board of Directors Barbara Burger, Non-Executive Director 7
Slide 20: Board of Directors
Board of Directors Trevor Bourne, Independent, Non-Executive Director 8
Slide 21: Board of Directors
Board of Directors Richard Brown, Non-Executive Director 9
Slide 22: Board of Directors
Board of Directors Peter Lim, Company Secretary and General Counsel 10
Slide 23: Board of Directors
Board of Directors Ryan Krogmeier, Non-Executive Director 11
Slide 24: Board of Directors
Board of Directors Bruce Morgan, Independent, Non-Executive Director 12
Slide 25: Caltex Senior Management
Caltex Senior Management Simon Hepworth Chief Financial Officer Bruce Rosengarten General Manager – Marketing Mike McMenamin General Manager – Strategy, Planning & Development Simon Willshire General Manager – Human Resources Andrew Brewer General Manager – Supply Chain Operations 13
Slide 26: External Auditor
External Auditor Greg Boydell KPMG Partner 14
Slide 27: Voting process
Voting process Electronic voting process using handsets. John Smith A plastic card should have been inserted into your handset when you registered this morning. Cancel Send Vote 15
Slide 28: How to cast your vote
How to cast your vote When the poll opens, the handset will display the voting options being: John Smith 1 to vote for For x Against 2 to vote against Cancel Send Vote Press the appropriate button on the handset to submit your vote. The word “received” will appear briefly on your screen and an ‘X
Slide 29: How to cancel or change your vote
How to cancel or change your vote To change your vote, simply enter your new choice (1 or 2) while the poll is open. John Smith For x Against If you wish to cancel your vote, press the red triangle button . Cancel Send Vote 17
Slide 30: Practice resolution
Practice resolution Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution that the retirement age should be raised to 70 years of age. The poll on this resolution is open – please cast your vote 1 to vote FOR the resolution 2 to vote AGAINST the resolution 18
Slide 31: Practice resolution
Practice resolution Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution that the retirement age should be raised to 70 years of age. The poll on this resolution is now closed. 19
Slide 32: Notice of meeting
Notice of meeting * CALTEX Notice of Annual General Meeting
Slide 33: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 21
Slide 34: Item 1 – Operational Excellence Moment
Item 1 – Operational Excellence Moment 22
Slide 35: Fatality Free Friday 2014
Fatality Free Friday 2014 Caltex has been a proud sponsor since 2011. Fatality Free Friday is Australia’s only national community based road safety program. Road safety is a complex issue. It is impossible to find one single key to reduce road trauma. The aim is to make Fatality Free Friday a realit
Slide 36: Fatality Free Friday 2014
Fatality Free Friday 2014 Video presentation - 24
Slide 37: Fatality Free Friday 2014
Fatality Free Friday 2014 The clear message is that “the key to road safety is in your hands.” The Caltex pledge – “Arrive home safe.” Take the pledge with us – online or in the foyer of today’s AGM. 25
Slide 38: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 26
Slide 39: Item 2 – Addresses
Item 2 – Addresses 27
Slide 40: Chairman's Address
Chairman’s Address 28
Slide 41: Caltex is proud of its history and ongoing commitment to Australia
Caltex is proud of its history and ongoing commitment to Australia 29
Slide 42: Key safety measures
Key safety measures Total treated injury frequency rate Total treated injury frequency rate reduced to a record 1.36 per million hours worked. 4.57 50% improvement year on year. 3.04 2.83 Lost time injury frequency rate broadly in line 2.53 with 2012 at 0.63 per million hours worked. 1.36 Results wo
Slide 43: Results
Results Historic Cost of Sales Operating Profit Replacement Cost of Sales Operating (HCOP) ($ million)* Profit (RCOP) ($ million)# 530 458 314 317 324 318 332 264 57 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 * Including # Excluding significant items -714 significant items 31
Slide 44: Shareholder Returns
Shareholder Returns i att a bs , Wa ite ey a y" F “ght y ‘ ; a 1 SS op cartex
Slide 45: Our people
Our people Po cartex
Slide 46: Managing Director & CEO's Address
Managing Director & CEO’s Address 34
Slide 47: Key safety measures
Key safety measures Process safety Personal safety 35
Slide 48: Key safety measures
Key safety measures Total treated injury frequency rate Spills > 1 barrel (160 litres) 4.57 26 26 22 3.04 2.83 17 2.53 15 1.36 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 36
Slide 49: Our strategy is clear
Our strategy is clear CALTEX’S VISION Outright leader in transport fuels across Australia MEASURE OF SUCCESS Safely and reliably deliver top quartile total shareholder returns KEY STRATEGY PILLARS Comprehensive targeted offer to customers across Superior supply chain products, channels and geographi
Slide 50: 2013 Marketing and Distribution – another record year
2013 Marketing and Distribution – another record year Operational earnings up 4% to $764 million. $10 million negative impact of the Sydney premium petrol supply interruption and fall in the Australian dollar. Gross transport fuel margin 4.41 cents per litre, consistent with 2012. Retail fuel sales
Slide 51: Refining and Supply – impacted by key externalities
Refining and Supply – impacted by key externalities 2013 result materially impacted by externalities. Caltex Refiner Margin of US$9.34 per barrel, compares unfavourably to US$11.83 per barrel in 2012 Improved refinery reliability led to near record production volumes in line with 2012. 39
Slide 52: Kurnell conversion
Kurnell conversion & CALTEX F ~
Slide 53: Q1 2014 unaudited profit results
Q1 2014 unaudited profit results Q1 net profit after tax 2013 vs 2014 Q1 segmented earnings 190 before tax and interest 146 189 200 121 96 ($ million) ($ million) 2013 1Q 2014 1Q 43 2013 2014 -14 -13 -41 RCOP HCOP Marketing & Distribution Refining & Supply Corporate 41
Slide 54: Outlook
Outlook 42
Slide 55: Our people
Our people Pp cartex
Slide 56: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 44
Slide 57: Item 3 – Shareholder Issues
Item 3 – Shareholder Issues 45
Slide 58: Shareholder questions
Shareholder questions If you would like to ask a question or make a comment, please press the green John Smith square button to enter the queue. Queue Available Join Queue 46
Slide 59: Shareholder questions
Shareholder questions If you are in the queue, an orange icon will appear on the display screen. John Smith In Queue Queue If you decide not to ask a question, Available press the red triangle button to leave the queue. Leave Queue When the Chairman calls your name, please make your way to the neare
Slide 60: Item 3 – Shareholder Issues
Item 3 – Shareholder Issues 48
Slide 61: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 49
Slide 62: Item 4 – Financial Reports
Item 4 — Financial Repo TANKAGE Lt
Slide 63: Voting matters
Voting matters Items of business to be put to a vote of shareholders – Item 5 - Remuneration report – Item 6 a. Re-election of Greig Gailey b. Election of Bruce Morgan 51
Slide 64: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 52
Slide 65: Item 5 – Remuneration Report
Item 5 – Remuneration Report Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution adopting the Remuneration Report (which forms part of the Directors’ Report) for Caltex (and the Caltex Australia Group) for the year ended 31 December 2013. Note: The vote on this re
Slide 66: Item 5 – Remuneration Report
Item 5 – Remuneration Report Millions - Proxy voting directions Millions – Voting directions (including Chevron) 100 250 96.46% 98.60% Chevron currently holds 135 million 80 200 shares in Caltex (or 50% of shares). 60 150 Chevron’s direction to its Body Corporate Representative is to 40 100 vote for
Slide 67: Item 5 – Remuneration Report
Item 5 – Remuneration Report Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution adopting the Remuneration Report (which forms part of the Directors’ Report) for Caltex (and the Caltex Australia Group) for the year ended 31 December 2013. Note: The vote on this re
Slide 68: Item 5 – Remuneration Report
Item 5 – Remuneration Report Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution adopting the Remuneration Report (which forms part of the Directors’ Report) for Caltex (and the Caltex Australia Group) for the year ended 31 December 2013. Note: The vote on this re
Slide 69: Agenda
Agenda Item 1 – Operational Excellence Moment Item 2 – Addresses Item 3 – Shareholder Issues Item 4 – Financial Reports Item 5 – Remuneration Report Item 6 – Election of Directors 57
Slide 70: Item 6 – Election of Directors
Item 6 – Election of Directors Shareholders will be asked to consider and, if thought fit, pass ordinary resolutions to: a. re-elect Mr Greig Gailey as a director, and b. elect Mr Bruce Morgan as a director in accordance with, and on the terms set out in, Caltex’s Constitution. Note: Each election w
Slide 71: Item 6a – Re-election of Greig Gailey
Item 6a – Re-election of Greig Gailey Greig joined the Board in December 2007. Greig brings extensive Australian and international oil industry experience, and broad management expertise from industrial and capital intensive industries to the Board. He is the Chairman of the Board’s Human Resources
Slide 72: Item 6a – Re-election of Greig Gailey
Item 6a – Re-election of Greig Gailey Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to re-elect Greig Gailey as a director, in accordance with and on the terms set out in Caltex’s Constitution. 60
Slide 73: Item 6a – Re-election of Greig Gailey
Item 6a – Re-election of Greig Gailey Millions - Proxy voting directions Millions – Voting directions (including Chevron) 100 250 95.74% 98.31% Chevron currently holds 135 million 80 200 shares in Caltex (or 50% of shares). 60 150 Chevron’s direction to its Body Corporate Representative is to 40 100
Slide 74: Item 6a – Re-election of Greig Gailey
Item 6a – Re-election of Greig Gailey Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to re-elect Greig Gailey as a director, in accordance with and on the terms set out in Caltex’s Constitution. The poll on this resolution is open – please cast your vote – 1
Slide 75: Item 6a – Re-election of Greig Gailey
Item 6a – Re-election of Greig Gailey Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to re-elect Greig Gailey as a director, in accordance with and on the terms set out in Caltex’s Constitution. The poll on this resolution is now closed. 63
Slide 76: Item 6b – Election of Bruce Morgan
Item 6b – Election of Bruce Morgan Bruce joined the Board in June 2013. Bruce is a chartered accountant and brings expertise to the Board in accounting, financial and business advisory services, as well as risk and general management. He is the Chairman of the Board’s Audit Committee. The Board supp
Slide 77: Item 6b – Election of Bruce Morgan
Item 6b – Election of Bruce Morgan Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to elect Bruce Morgan as a director, in accordance with and on the terms set out in Caltex’s Constitution. 65
Slide 78: Item 6b – Election of Bruce Morgan
Item 6b – Election of Bruce Morgan Millions - Proxy voting directions Millions – Voting directions (including Chevron) 100 98.81% 250 99.53% Chevron currently holds 135 million 80 200 shares in Caltex (or 50% of shares). 60 150 Chevron’s direction to its Body Corporate Representative is to 40 100 vo
Slide 79: Item 6b – Election of Bruce Morgan
Item 6b – Election of Bruce Morgan Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to elect Bruce Morgan as a director, in accordance with and on the terms set out in Caltex’s Constitution. The poll on this resolution is open – please cast your vote – 1 to vot
Slide 80: Item 6b – Election of Bruce Morgan
Item 6b – Election of Bruce Morgan Shareholders will be asked to consider and, if thought fit, pass an ordinary resolution to elect Bruce Morgan as a director, in accordance with and on the terms set out in Caltex’s Constitution. The poll on this resolution is now closed. 68
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