Viva Energy Group Ltd. · ASX:VEA
Viva Energy — FY2024 Earnings Presentation
34 slides from Viva Energy's earnings presentation, Feb 25, 2025
Slide 1: Full Year Results
Full Year Results Full Year ended 31 December 2024 Helping people reach their destination
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Viva Energy Group Limited, fairness, accuracy, completeness or correctness of the information, information contained within this presentation may be unreliable given ACN 626 661 032 (“Company” or “Viva Energy”). opinions and conc
Slide 3: Group Highlights
Group Highlights Scott Wyatt Viva Energy Group Limited – FY2024 Results Presentation 3
Slide 4: Health, Safety and Environment
Health, Safety and Environment Steady performance with focus on managing increased exposure to retail environment Injury frequency rates1 Loss of primary containment Process safety events1 (>100KG)1 Total Recordable Injuries2 7.6 6.7 6.6 6.0 4 3 28 2 24 19 19 1 1.0 1.2 1.1 1.0 1 1 1 1 High Severity
Slide 5: Group Overview
Group Overview Significant progress on our strategic agenda • Completed OTR acquisition with substantial progress on integration Convenience • Obtained regulatory approval to acquire Liberty Convenience and Mobility • Converted first Express stores to OTR offer, with strong early sales uplifts (C&M)
Slide 6: FY2024 Key Operating Metrics and Group Financial Overview
FY2024 Key Operating Metrics and Group Financial Overview Strong sales performance given difficult trading conditions, with year-on-year growth in earnings Key operating metrics Group financial overview 16.8BL $749M Group fuel sales EBITDA (+4% y/y)1 (+5% y/y) C&I fuel sales 11.7BL EBIT $508M C&M fu
Slide 7: Financial Performance by Segment
Financial Performance by Segment Earnings up 5% supported by continued growth in C&I and improved E&I operating performance Figures are in $M unless stated Change otherwise FY2024 FY2023 (%) (#) EBITDA (RC) contribution ($M) EBITDA (RC) 748.6 712.8 5.0% 35.8 EBIT (RC) 508.3 517.6 (1.8%) (9.3) NPAT (
Slide 8: FY2024 C&M Result
FY2024 C&M Result Both Express and OTR negatively impacted by sales pressure, rising operating costs (inflation-linked) and transition costs (pre-integration) FY2024 C&M EBITDA (RC) bridge ($M)1 • Fuel and convenience sales growth impacted by cost-of- living pressures (lower market demand) Viva Ener
Slide 9: FY2024 C&I Result
FY2024 C&I Result Acquisitions and strong sales growth supported higher earnings in FY2024 C&I sales volumes (ML) FY2024 C&I EBITDA (RC) bridge ($M)2 27.2 11,735 469.9 10,965 (3.1) 1,258 9.6 (11.3) 9,737 447.5 8,896 1,333 1,205 3,212 1,126 2,670 1,254 1,893 5,850 5,986 6,400 6,663 666 653 562 603 FY
Slide 10: FY2024 E&I Result
FY2024 E&I Result Stronger production offset softer refining margin environment in 2H2024 Refining production (%) FY2024 E&I (RC) bridge (A$M)1 FY21 FY22 FY23 FY24 123.9 12% 20.2 Other 18% 18% 25% 3% 7% 10% 10% (54.1) Jet 37% 18.9 94.3 43% 39% 25% Diesel 65.4 (80.0) Gasoline 36% 36% 40% 41% FY2023 P
Slide 11: Financial performance
Financial performance Carolyn Pedic Viva Energy Group Limited – FY2024 Results Presentation 11
Slide 12: FY2024 Cash Flow
FY2024 Cash Flow Positive underlying free cash flow during a period of significant investment Group net cash flow bridge ($M) 748.6 165.7 556.1 (9.0) (349.1) 1,387.8 (482.8) (22.8) Includes $52.1M of C&M acquisition integration costs Includes $45.7M of C&M acquisition integration capex (1,054.7) (12
Slide 13: Capital Expenditure
Capital Expenditure Capex to reduce from FY2026 as refinery investment program concludes FY2024 2025 2026 2027 actual ($M) Convenience & Mobility 106.5 Sustaining ~$250M – 300M p.a. (on average) Commercial & Industrial 85.7 Capital3 Energy and Infrastructure 130.2 ULSG & Aromatics Base capital expen
Slide 14: Balance Sheet
Balance Sheet Gearing post acquisitions within target range (1.0 – 1.5x trailing 12-month EBITDA) Change in net debt (debt) ($M) • OTR Group acquisition financed through a new A$1BN Term Loan Facility • Net debt position ($1.8BN as at 31 Dec 2024) includes RCF, which is 1,387.8 2.9 1,793.5 used as a
Slide 15: Dividends
Dividends Determined fully franked dividends of 10.6 CPS in FY2024 1H2024 FY2024 • Determined final fully franked dividend of 3.87 cps, representing a 50% payout ratio of C&M and C&I NPAT (RC) All financials in $M unless Group C&M C&I E&I Group • No dividend payable for E&I, with NPAT assessed annua
Slide 16: C&M Strategic Update
C&M Strategic Update Jevan Bouzo Viva Energy Group Limited – FY2024 Results Presentation 16
Slide 17: C&M Operating Update
C&M Operating Update OTR and Express similarly impacted by challenging trading conditions 1,270 stores nationwide1 Gross margin contribution2 Convenience margin avg. per store 100% (after wages, excl. QSR)3 33 -2.0% 90% $700 -12.1% 92 After 80% $600 divestments 70% -18% +4.4% $500 107 Operated QSRs
Slide 18: Store Conversions
Store Conversions Positive early signs from first 4 conversions ahead of larger scale OTR rollout Old New • 4 re-model conversions (3 NSW, 1 SA) completed in Nov/Dec24 (avg. capex ~$1.6M including forecourt upgrades) • Initial results suggest that returns will materialise significantly faster than o
Slide 19: Store Conversions & Network Growth
Store Conversions & Network Growth Become Australia’s largest fuel & convenience retailer with the highest quality convenience offering ~50% of Express stores converted to OTR by 2028 1,200 • Expect to add 40-60 OTR stores in FY2025 through store conversions & pipeline sites, weighted to 2H2025 1,00
Slide 20: C&M Synergies
C&M Synergies Expect to deliver $90M+ of annualised synergies by end 2026 (run-rate basis) • Implementation of enterprise systems will enable consolidation 2025 2026 and alignment of activities across the C&M business Above- Rationalise ~$250M of total overheads store (restructuring, marketing, abov
Slide 21: Liberty Convenience (LOC) Acquisition
Liberty Convenience (LOC) Acquisition Acquisition targeted to complete 31 March 2025, providing C&M with a differentiated fuel offering for price-led customers • Established in 2019 as 50/50 non-controlled JV to provide a lower priced, diesel-focused fuel brand, complementing the Shell premium offer
Slide 22: Industry Conditions
Industry Conditions Cost of living pressures slowed growth during FY2024, with recovery expected in FY2025 Industry convenience sales1 Industry fuel volume vs margin2 20% 20.0 18.2 26 18.0 16.8 17.0 15.2 10% 14.1 14.3 Fuel volumes (BL) 16.0 13.3 12.9 13.6 13.8 14.0 12.8 24 11.1 10.3 10.7 12.0 0% 10.
Slide 23: Short-term Actions to Manage Current Environment
Short-term Actions to Manage Current Environment Sound long-term strategy but taking clear actions in short term to manage current conditions ► Deliver system and functional support integration across Retail in 2025 ► Accelerate delivery of transaction synergies to support short-term earnings ► Cost
Slide 24: Group Outlook
Group Outlook Scott Wyatt Viva Energy Group Limited – FY2024 Results Presentation 24
Slide 25: C&M and C&I Outlook
C&M and C&I Outlook Expect to deliver $270M to $330M EBITDA (RC) from C&M and C&I in 1H2025, with accelerated program to realise synergies (~$30M) and reduce operating costs by $50M (delivery weighted to 2H2025) 2H uplift 1H2025 EBITDA (RC) (C&M and C&I) 2H2025 growth driver opportunity1 400 Synergi
Slide 26: Supportive Refining Outlook
Supportive Refining Outlook Changes in fuel specifications amidst tighter demand and supply balance is supportive of GRM Refining margin cracks1, GRM2, Crude Premia3 Regional refining margins (US$/bbl) • GRM post-pandemic averaging ~US$11/BBL4 compared with ~US$8/BBL before, 60 driven by tighter sup
Slide 27: Appendix
Appendix Viva Energy Group Limited – FY2024 Results Presentation 27
Slide 28: Well Positioned for Energy Transition
Well Positioned for Energy Transition Supporting customers’ transition to low-carbon fuels across our industry exposure Resources Transport Agriculture Industry Aviation Defence Shipping • Diesel • Jet fuel • Diesel • Marine diesel Current fuel • Avgas • Military grade • MFO, VLSFO fuels Low carbon
Slide 29: Commercialising Lower Carbon Energy Options for Customers
Commercialising Lower Carbon Energy Options for Customers Building capability in a disciplined manner, supported by partnerships and government funding EV Charging Hydrogen • Premium, fast charge solution to be installed at • Public green hydrogen refueling station under OTR/Express convenience stor
Slide 30: Gas Terminal Project
Gas Terminal Project Project could deliver gas for winter 2028 to meet projected gas shortfall Projected gas shortfall – Southern Regions2 Regulatory approval as priority Targeted Geelong Gas - Proceeding with supplementary EES1 Terminal delivery date 500 450 400 Final Investment Decision (end-2025)
Slide 31: C&M Operating Metrics and Re-Segmented Financials
C&M Operating Metrics and Re-Segmented Financials Metric 1H22 FY22 1H23 FY23 1H24 FY24 Convenience and fuel sales3 Company-operated stores # - - 706 706 1,280 1,280 Company-operated F&C stores # - - 706 706 890 890 Express # - - 706 706 680 676 OTR F&C # - - - - 210 214 Integrated QSR # - - - - 80 8
Slide 32: Refinery – Margin Analysis and Key Drivers
Refinery – Margin Analysis and Key Drivers Metric FY19 FY20 FY21 FY22 FY23 FY24 A: A$/US$ FX 0.69 0.69 0.75 0.70 0.67 0.66 B: Crude and feedstock intake mbbls 42.0 34.8 41.2 41.9 31.6 40.1 C: Geelong Refining Margin US$/bbl 6.6 3.1 7.1 17.1 9.8 8.7 D: Geelong Refining Margin = C / A A$/bbl 9.5 4.4 9
Slide 33: Glossary
Glossary Replacement Cost (“RC”) EBITDA (RC) Historical Cost (“HC”) Geelong Refining Margin Viva Energy reports its performance Profit before interest, tax, depreciation Calculated in accordance with IFRS The Geelong Refining Margin is a on a “replacement cost” (RC) basis. and amortisation adjusted
Slide 34: VivA
VivA EnergyAustralia