Abu Dhabi National Oil Company For Distribution · ADX:ADNOCDIST
Abu Dhabi National Oil Company For Distribution — ADNOC Distribution — Q3 and 9M 2018 Earnings Presentation
21 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Nov 15, 2018
Slide 1: ADNOC Distribution Q3 and 9M 2018 Results Presentation
ADNOC DISTRIBUTION Q3 AND 9M 2018 RESULTS PRESENTATION INVESTOR AND ANALYST CONFERENCE CALL 15 November 2018 ADNOC Distribution
Slide 2: Agenda
AGENDA 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q3 AND 9M 2018 RESULTS 04 OUTLOOK 2 ADNOC DISTRIBUTION | Q3 AND 9M 2018 RESULTS
Slide 3: Disclaimer
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 future. These forward-looking st
Slide 4: Executive Summary
01 EXECUTIVE SUMMARY SPEAKER: SAEED MUBARAK AL RASHDI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 5: Introduction
INTRODUCTION Strong underlying performance and continued progress on strategic initiatives Operational and financial Strategic update 2018 outlook guidance performance Prioritization of safety remains Achieving OPEX and CAPEX On track to achieve core to our business savings driven by improved announ
Slide 6: Strategy Update
02 STRATEGY UPDATE SPEAKER: JOHN CAREY DEPUTY CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 7: Continued progress of our initiatives
STRATEGY UPDATE Continued progress of our initiatives Market context Implemented strategic initiatives Strong financial performance • Fuel retail volumes down 5.6% YoY in • Full roll-out of ADNOC Flex • Gross profit up 26.5% YoY in Q3 2018 Retail • Service station expansion Fuel Q3 2018 • Underlying
Slide 8: Continued expansion of our Fuel Retail business
KEY STRATEGIC UPDATE Continued expansion of our Fuel Retail business IPO – December 2017 January 2018 to date …up to year-end 2018 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Network expansion with expected • 5 new stations added in 9M 2018 • On track to open 13 new stations for the opening
Slide 9: Visible outcome from Non-Fuel Retail key initiatives
KEY STRATEGIC UPDATE Visible outcome from Non-Fuel Retail key initiatives IPO – December 2017 January 2018 to date …up to year-end 2018 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Opening of 5-7 new convenience stores in • 6 new convenience stores opened to date • Opening of 7 new convenien
Slide 10: Continued cost efficiency and CAPEX reduction
KEY STRATEGIC UPDATE Continued cost efficiency and CAPEX reduction IPO – December 2017 January 2018 to date …up to year-end 2018 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Cash OPEX savings of USD50m for 2018 • Cost focus • Cash OPEX savings above USD50m in 2018 on a like-for-like basis •
Slide 11: Q3 and 9M 2018 Results
03 Q3 AND 9M 2018 RESULTS SPEAKER: PETRI PENTTI CHIEF FINANCIAL OFFICER ADNOC Distribution
Slide 12: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Strong financial performance driven by core business EBITDA (USDm) Adjusted free cash flow1 (USDm) Margin (%) 10.5% 12.0% 11.4% 12.7% 587 444 440 265 194 137 141 88 Q3 2017 Q3 2018 9M 2017 9M 2018 Q3 20172 Q3 2018 9M 20172 9M 2018 • Resilient and strong increase in EBITDA as
Slide 13: Cash Movements During the Year
CASH MOVEMENTS DURING THE YEAR USD899m of cash generated pre dividend and finance costs in 9M 2018 Net debt / 1.7x1 0.1x 432 EBITDA (118) 1,402 586 (220) 723 Cash at Dec 2017 Cash flow from Working capital Cash flow from investing Finance costs and Cash at Sep 2018 operations movements dividends2 •
Slide 14: Financial and Operating Highlights
FINANCIAL AND OPERATING HIGHLIGHTS Strong financial performance driven by higher fuel margins combined with a more efficient cost base Key financial figures USDm Q3 2017 Q3 2018 YoY % change 9M 2017 9M 2018 YoY % change Gross profit 275 348 26.5% 848 1,058 24.7% Margin 21.0% 21.4% 21.9% 23.0% EBITDA
Slide 15: Gross Profit by Segment
GROSS PROFIT BY SEGMENT USDm Q3 2017 Q3 2018 YoY % change 9M 2017 9M 2018 YoY % change Fuel and non-fuel retail 170 228 33.7% 560 692 23.5% o/w Fuel Retail 151 208 37.6% 506 632 24.9% o/w Non-Fuel Retail 19 19 3.0% 54 59 9.8% Margin 19.1% 21.1% 20.5% 21.9% Corporate 54 59 9.1% 151 165 9.6% Margin 18
Slide 16: EBITDA by Segment
EBITDA BY SEGMENT USDm Q3 2017 Q3 2018 YoY % change 9M 2017 9M 2018 YoY % change Fuel and non-fuel retail 60 118 98.3% 235 362 54.0% Margin 6.7% 10.9% 8.6% 11.5% Corporate 47 46 -2.4% 124 125 0.5% Margin 16.4% 12.0% 16.1% 13.1% Aviation 27 21 -21.7% 65 70 7.7% Margin 24.6% 14.6% 20.7% 16.1% Other1 3
Slide 17: Outlook
04 OUTLOOK SPEAKER: SAEED MUBARAK AL RASHDI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 18: Guidance and Outlook
GUIDANCE AND OUTLOOK Outlook Strong Q3 2018 with more to come in Q4 Confident of achieving 2018 targets Continued delivery on key pillars of our strategy 18 ADNOC DISTRIBUTION | Q3 AND 9M 2018 RESULTS
Slide 19: Q&A
Q&A Saeed Mubarak Al Rashdi John Carey Petri Pentti Acting Chief Executive Officer Deputy Chief Executive Officer Chief Financial Officer ADNOC Distribution
Slide 20: ADNOC Distribution Business Model
ADNOC DISTRIBUTION BUSINESS MODEL Retail Commercial Business Fuel Retail Non – Fuel Retail Corporate Aviation Key Transportation fuel Transportation fuel Jet fuel Convenience stores Products / LPG LPG Fuelling, maintenance and other Services Car care Lubricants Lubricants services • Undisputed leade
Slide 21: Thank You
ADNOC DISTRIBUTION Q3 AND 9M 2018RESULTS PRESENTATION INVESTOR AND ANALYST CONFERENCE CALL 15 November 2018 IR@ADNOCDISTRIBUTION.AE THANK YOU ADNOC Distribution
ADNOC Distribution — Q3 and 9M 2018 Earnings Presentation on 6ix