Viva Energy Group Ltd. · ASX:VEA
Viva Energy — UBS Australasia Conference 2018
34 slides from Viva Energy's conference presentation, Nov 12, 2018
Slide 1: UBS Australasia Conference Presentation
For personal use only 12 November 2018 UBS Australasia Conference Presentation Viva Energy’s presentation for the UBS Australasia Conference to be held on 12 and 13 November 2018 is attached. Further enquiries: Media Enquiries Investor Relations T: +61 438 954 729 Karla Wynne Head of Investor Relati
Slide 2: About Viva Energy
For personal use only About Viva Energy Viva Energy (ASX: VEA) is one of Australia’s leading energy companies and supplies approximately a quarter of the country’s liquid fuel requirements. It is the exclusive supplier of high quality Shell fuels and lubricants in Australia through an extensive netw
Slide 3: Viva Energy Australia - UBS Australasia Conference
Viva Energy Australia For personal use only UBS Australasia Conference 12 – 13 November 2018 Scott Wyatt CEO Jevan Bouzo CFO
Slide 4: Introduction to Viva Energy
Introduction to Viva Energy For personal use only
Slide 5: A significantly transformed established player
A significantly transformed established player For personal use only Entered into 10 year brand license agreement with Shell’s involvement Shell in Australia began - Acquisition of Shell bulk fuel facilities Coles Express Aviation Australia were commissioned Alliance by Shell Transport established a
Slide 6: Viva Energy ambition
Viva Energy ambition For personal use only To be one of Australia's most respected energy companies 1 Safe and reliable operations 2 Respect the environment and the communities where we operate 3 Expand and grow our markets to retain leading position 4 Premium offers and solutions for customers 5 Un
Slide 7: Commitment to Goal Zero
Commitment to Goal Zero For personal use only Personal Safety Process Safety Lost time injury frequency rate (LTIF) 1 Loss of containment (>1,000 KG) 1.5 5 4 4 1.0 3 0.4 0.4 GOAL ZERO 2015 2016 2017 1H2018 2015 2016 2017 1H2018 We believe every incident is preventable and we are committed to pursuin
Slide 8: A leading integrated downstream petroleum company
A leading integrated downstream petroleum company For personal use only Darwin Cocos Islands of the Australian downstream petroleum market 24% 1 1,215 2 service station sites nationwide in Viva Energy’s network 19 44 fuel import terminals and depots3 nationally to support operations 204 52 airports
Slide 9: Viva Energy business overview
Viva Energy business overview For personal use only RETAIL, FUELS AND MARKETING REFINING SUPPLY, CORPORATE AND OVERHEADS (RETAIL & COMMERCIAL) Viva Energy fuel volumes sold by product (ML) Gross Profit (RC) by Segment (2017A) Viva Energy Group Underlying EBITDA 14, 748 14, 557 14, 151 $m Replacement
Slide 10: High quality retail network and brands
High quality retail network and brands For personal use only Viva Energy Network Distribution Viva Energy Network Distribution by State Viva/ Partner Branded Total Controlled1 Wholesale2 2% 2% 7% Alliance 666 45 711 33% 13% NT Viva Energy 343 146 180 TAS SA Liberty Oil 41 230 271 WA 17% QLD Westside
Slide 11: Coles Alliance
Coles Alliance For personal use only Retail alliance with one of the country’s largest supermarket operators Coles has been the retail operator of Viva 1 Energy’s prime service station network Collaboration since 2003 High quality network with strong brands, 2 quality fuel and convenience offering a
Slide 12: Growing alternative retail channels
Growing alternative retail channels For personal use only Viva Energy Retail Agent model 1 Fills network gaps and access growth Retail upside to the core Alliance platform Agent - Network development - Short term commission based Participate more fully in retail value chain, contracts with third par
Slide 13: Diversified commercial and specialty business
Diversified commercial and specialty business For personal use only A VI A T I O N MARINE RESOURCES TRANSPORT S P E C I A LT I E S - 37% market share of - 48% market share of - Major distributor of fuel and - Bulk diesel to an BITUMEN Australian aviation1 marine2 lubricant products extensive blue-ch
Slide 14: Strategically positioned and profitable refinery
Strategically positioned and profitable refinery For personal use only The Geelong Refinery is embedded into the Victorian supply chain Flexibility of Crude Intake (2017)1 Production slate (2017) Operational availability (%) 1 1% 3% 120 kbbls/d capacity 94% 5% 93% 2 9.44 Nelson Complexity Index Othe
Slide 15: Viva Energy procurement operation
Viva Energy procurement operation For personal use only Advantages Viva Energy’s procurement team, based in Singapore, Geelong and Melbourne is responsible for sourcing of crude and refined product 1 One of the world's largest independent energy • Long-term security of supply of crude and products t
Slide 16: Industry Developments
Industry Developments For personal use only
Slide 17: Evolving fuels and convenience market
Evolving fuels and convenience market For personal use only Industry retail gross margins3 Australian Vehicles Registered by Fuel Type1 18 Total Distance Increased vehicle ownership Travelled2 (bn km) 232.5 CAGR: 2% 249.5 16 1 has offset efficiency and impact of EVs 14 (mm) 16.7 million CAGR: 3% 18.
Slide 18: Fuel specification changes
Fuel specification changes For personal use only Marine fuel sulphur specification change Petrol specification change • Implementation 1st January 2020 • Ministerial forum established in 2015 to coordinate Federal Government approach to reducing • IMO approved changes requiring ships to use fuel oil
Slide 19: 1H2018 Business Update
1H2018 Business Update For personal use only
Slide 20: Retail
Retail For personal use only Highlights Retail Underlying EBITDA (RC) $m • Continued growth of retail presence through Viva Energy controlled, Liberty, and Westside sites • Implementation of V-Power diesel continues, with strong penetration rates Period on • Continued expansion of Viva Retail Agent
Slide 21: Commercial
Commercial For personal use only Highlights Commercial Underlying EBITDA (RC) $m • Sales volumes remain robust • Commissioned new Jet tank to grow Cairns Jet market position Period on period growth 12% -1% • Commissioned new bitumen import facility in Townsville to support business in North Queensla
Slide 22: Refining
Refining For personal use only Refining Underlying EBITDA (RC) Highlights Geelong • 1H18 refinery performance was impacted by lower regional refining margins Refining Margin and severe weather event causing RCCU outage (US$/bbl) 11.8 7.9 10.2 7.3 8.3 • Geelong Refining Margin for 1H18 was US$7.3/BBL
Slide 23: Supply Chain, Corporate and Overheads
Supply Chain, Corporate and Overheads For personal use only Corporate and Overheads Supply Chain, Corporate and Overheads Underlying EBITDA • Head office and overhead cost savings • Insurance cost savings as a result of annual renewal and (RC) $m re-tendering • Lower than expected property maintenan
Slide 24: Proforma group financials
Proforma group financials For personal use only Underlying EBITDA $m Net Profit After Tax $m Historical Cost (“HC”) 483 394 626 284 246 207 212 355 144 115 Replacement 634 361 Cost (“RC”) 535 ($ m) 455 ($ m) 255 244 263 267 129 130 FY2015A FY2016A FY2017A 1H2018A 1H2018F FY2015A FY2016A FY2017A 1H20
Slide 25: Balance sheet and capital allocation
Balance sheet and capital allocation For personal use only Strong balance sheet provides financial flexibility Balance sheet Dividend policy3 Investments (equity accounted) Dividend Policy of $237.5m 60% Net debt (30 June for 12 month period to 2018)(1) 30 June 2019 50% 50% 38% Equity interest Equit
Slide 26: Key priorities
Key priorities For personal use only 1 Continue to extend company controlled network to fill network gaps (mix of operating platforms) and increase exposure to convenience retailing 2 Complete rollout of V-Power Diesel and build leading position in premium fuels 3 Consider opportunities for bolt-on
Slide 27: Appendix
For personal use only Appendix
Slide 28: Executive Leadership Team
Executive Leadership Team For personal use only Daniel Ridgway Scott Wyatt Jevan Bouzo General Manager, Retail Chief Executive Officer Chief Financial Officer Chief Operating Officer (from January 2019) Thys Heyns Denis Urtizberea Jodie Haydon General Manager, General Manager, General Manager, Geelo
Slide 29: Board of Directors
Board of Directors For personal use only Robert Hill Arnoud De Meyer Jane McAloon Sarah Ryan Dat Duong Hui Meng Kho Scott Wyatt Chairman Non-Executive Non-Executive Chief Executive Officer Director Director Independent Independent Independent Independent Non-executive Non-executive Non-executive Non
Slide 30: Our people and our culture
Our people and our culture For personal use only Number of Full Time Employees1 Employee Split by Business Units Gender Diversity The Viva Energy Culture 156 Centered on a high performance culture of being “driven by people” 1600 34% 81 380 Attract and retain a diverse range 1200 of employees with t
Slide 31: Refinery – margin analysis and key drivers
Refinery – margin analysis and key drivers For personal use only Metric FY2015A FY2016A FY2017A 3 Year Avg. A: AUD/USD FX 0.75 0.74 0.77 0.75 B: Crude and feedstock intake mmbbls 37.8 39.9 40.8 39.4 C: Refining Margin US$/bbl 11.8 7.9 10.2 10.0 D: Refining Margin = C / A A$/bbl 15.8 10.6 13.3 13.2 E
Slide 32: EBITDA (HC, RC and Underlying)
EBITDA (HC, RC and Underlying) For personal use only Historical Cost (“HC”) “Net inventory gain/(loss)” Represents the difference between the historical cost basis and Calculated in accordance with IFRS the replacement cost basis Cost of goods sold at the actual prices paid by the business using a f
Slide 33: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation has been prepared by Viva Energy whether in Australia or elsewhere, an invitation to information reflects Viva Energy’s intent, belief or trends, which are based on interpretations of current Group Limited, ACN 626 661 032 (“Viv
Slide 34: Thank you
For personal use only Thank you