Slide 1: 2021 Full Year Results Presentation
AMPOL LIMITED ACN 004 201 307 29-33 BOURKE ROAD ALEXANDRIA NSW 2015 ASX Release 2021 Full Year Results Presentation Monday 21 February 2022 (Sydney): Ampol Limited provides the attached 2021 Full Year Results Presentation for the year ended 31 December 2021. Authorised for release by: the Board of A
Slide 2: Welcome and overview
2 Welcome and overview Matt Halliday Managing Director & CEO
Slide 3: Safety performance – Continued improvement & focus
3 Safety performance – Continued improvement & focus Fuels & Infrastructure personal safety Process safety and spills1 Convenience Retail personal safety 15 15 15 10 10 10 5 5 5 0 0 0 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 Days Away from Work Injury Frequency Rate Spills >1bbl a
Slide 4: 2021 highlights – Foundations for the future
4 2021 highlights – Foundations for the future Delivered highest RCOP EBIT since FY 2018 against the COVID-19 backdrop Strong financial performance Record total sales volumes of 22.04 billion litres Strong Lytton performance and record international earnings Strong balance sheet and cash flows
Slide 5: Ampol rebranding – Re-establishing iconic Australian brand
5 Ampol rebranding – Re-establishing iconic Australian brand 2H 2020 1H 2021 2H 2021 2022 Timeline Pilot launch Network rollout commenced Multi-channel brand campaign Brand transition complete 880 stores rebranded to Ampol1 Rebranded sites outperforming2 Transactions Premium petrol3 491 +1.9% +1.8%
Slide 6: 2021 key Group metrics
6 2021 key Group metrics1 Strong improvement in financial performance in second COVID-19 impacted year Profit metrics Balance Sheet metrics Sales volume Capital management $1,003 m $724 m 22.04 BL 93 cps Group RCOP EBITDA up 23% Net borrowings Total sales volume up 9.7% Total dividend declared $631
Slide 7: Group financial result
7 Group financial result Greg Barnes CFO
Slide 8: Growing fuel sales to end customers
8 Growing fuel sales to end customers Total fuel sales growth underpinned by international growth strategy Australian fuel demand Australian Fuel Demand (vs 2019 baseline)4 Resilient diesel demand; Ampol has higher than industry share due to leading card offer and more than 80,000 B2B customers
Slide 9: FY 2021 Group financial performance
9 FY 2021 Group financial performance Successful execution of our strategy supported a return to pre-COVID financial performance FY 20211 FY 20201 % Δ FY2020 Strong Group financial performance with RCOP EBITDA of $1.0 billion and RCOP EBITDA - Group $1003.3m $812.9m 23% RCOP EBIT of $631 million G
Slide 10: Key drivers of profitability gaining momentum
10 Key drivers of profitability gaining momentum Post lockdown customer traffic improved during Q4, returning to pre-COVID levels in December LRM (US$/bbl) Convenience Retail RCOP EBIT ($M) 11.24 75 78 72 71 6.29 6.76 5.13 5.48 33 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 20
Slide 11: FY 2021 GROUP RCOP EBIT result
11 FY 2021 GROUP RCOP EBIT result Delivered highest Group earnings since FY 2018 against the COVID-19 backdrop FY 2021 v FY 2020 Group RCOP EBIT ($M) (38) (68) 1,003 (4) 300 Impact of lower import volumes, 813 post 2020 Lytton (372) T&I, partially offset by international growth Includes 631 412 TRPP
Slide 12: Fuels & Infrastructure result
12 Fuels & Infrastructure result Significant improvement in Lytton and international earnings; investing in Future Energy FY 2021 v FY 2020 F&I RCOP EBIT ($M) (75) 555 (7) 29 260 (182) 418 45 308 40 Largely relates to lower imports compared to FY 2020 183 154 (30) FY 2020 F&I FY 2020 FY 2020 D&A FY
Slide 13: Lytton Refinery result
13 Lytton Refinery result Returned to profitability through increased reliability in a strengthening refiner margin environment FY 2021 v FY2020 Lytton RCOP EBIT ($M) 224 40 (66) (37) 25 159 160 Includes benefit from non- recurring crude costs incurred in FY 2020 (T&I related) 111 (76) 69 (145) FY 2
Slide 14: Retail key metrics
14 Retail key metrics Post lockdown customer traffic returned to pre-COVID levels in December Retail fuel volume Network KPIs Strong growth in like for like (LFL) fuel volume and shop sales in 1H 2021, 5.1% and 6.3% respectively 3,905 ML 684 COVID-19 lockdowns in 2H 2021 caused declines in LFL f
Slide 15: Convenience Retail result
15 Convenience Retail result Focus on waste, shrinkage, and other costs delivering benefits FY 2021 v FY 2020 Convenience Retail RCOP EBIT ($M) 498 (35) 430 (66) 22 (1) 10 4 210 (176) Largely relates to 287 the movement of crude price on diesel 254 margins in FY 2021 FY 2020 CR FY 2020 D&A FY 2020 C
Slide 16: Balance sheet and cash flow
16 Balance sheet and cash flow Strong balance sheet maintained; maximising value and shareholder returns Includes adverse working capital movement of ~$520m reflecting higher crude and product prices (300) (724) (179) (434) 635 (324) $479m returned to shareholders (121) Dec-20 opening Operating cash
Slide 17: Capital allocation
17 Capital allocation $1.1 billion returned to shareholders since 2019 Shareholder returns Shareholder returns declared since 2019 ($M) $300 million Off Market Buy Back (OMBB) completed in 1H 2021 – 11.4 million shares (4.6% of issued capital) repurchased at $26.34 per share 522 41 cps ($98 mill
Slide 18: We have delivered on our 2021 strategic priorities
18 We have delivered on our 2021 strategic priorities Building a track record for doing what we say Bring back Ampol 880 sites rebranded by end 2021 KPIs for rebranded sites outperforming control sites1 Maximise Lytton value Reduced earnings downside risk while retaining full benefit to refiner marg
Slide 19: Strategy update
19 Strategy update Matt Halliday Managing Director & CEO
Slide 20: Our energy transition strategy aligns to pace of adoption
20 Our energy transition strategy aligns to pace of adoption Illustrative road transport transition (Energy consumption)1 Illustrative road transport fleet penetration1,2 1200 100% 1000 80% 800 60% 600 40% 400 200 20% 0 0% 2019 2025 2030 2035 2040 2045 2050 2019 2025 2030 2035 2040 2045 2050 Oil Ele
Slide 21: Our 'test and learn' approach will step up in 2022
21 Our ‘test and learn’ approach will step up in 2022 Simplifying the energy transition for our mobility customers Future energy solution Rationale Next steps BEV a solution for passenger vehicles. Government and Corporate EV CHARGING fleets likely “first movers”; Market leading AmpolCard, relations
Slide 22: Z Energy acquisition progressing well
22 Z Energy acquisition progressing well Unique opportunity for Ampol to acquire the market leader in New Zealand and deliver strong financial returns for shareholders Unanimous approval from Z Energy Board of directors, Scheme Implementation Agreement signed NZCC and OIO regulatory clearance applic
Slide 23: Outlook and closing remarks
23 Outlook and closing remarks Matt Halliday Managing Director & CEO
Slide 24: FY 2022 Outlook and key priorities – Gaining momentum
24 FY 2022 Outlook and key priorities – Gaining momentum Key profitability drivers gained momentum in 4Q 2021 supporting optimistic outlook despite early COVID related demand weakness1 Emergence of Omicron has impacted recent trading. January fuel volume down 8% and shop sales down 7% versus same
Slide 25: Q&A
a P j Q&A
Slide 26: Appendix
26 Appendix Our integrated platform creates opportunities 27 Product sales volumes 28 Fuels & Infrastructure – Financial highlights 29 Lytton refinery – Highlights 30 Convenience Retail – Financial highlights 31 Convenience Retail – Key drivers 32 Our assets – Retail infrastructure 33 Capital alloca
Slide 27: Our integrated platform creates opportunities
27 Our integrated platform creates opportunities Integration delivers diversified earnings, a strong base for growth off existing business activities and skills to evolve into new areas Australian Reporting segments Integration benefits wholesale Manufacturing customers Australian F&I (ex Lytton)
Slide 28: Product sales volumes
28 Product sales volumes Fuels & Infrastructure (Total) Volumes (BL) Fuels & Infrastructure (Australia)1 Volumes (BL) Convenience Retail Volumes (BL) 22.04 4.76 21.08 20.09 2.58 0.08 0.98 4.10 3.90 3.28 2.40 1.47 16.29 - 1.44 0.06 1.37 0.05 2.68 13.58 5.73 13.05 1.31 0.01 1.31 1.19 0.08 6.70 5.38 1.
Slide 29: Fuels & Infrastructure – Financial highlights
29 Fuels & Infrastructure – Financial highlights FY 20215 FY 20205 Change (%) Total Sales Volumes (BL) 22.04 20.09 9.7% Notes Australian Sales Volumes (BL) 13.05 13.58 (3.9%) 1. F&I Australia (ex Lytton) EBIT includes all earnings and costs International Sales Volumes (BL) 8.99 6.51 38% associated (
Slide 30: Lytton refinery – Highlights
30 Lytton refinery – Highlights Lytton Refiner Margin1 Operational performance LRM (US$/bbl and Acpl) BL High Value Production Volumes, Production Utilisation (%) % 3.50 84 87 9.7 79 78 3.00 80 2.50 55 5.8 60 5.1 2.00 43 4.4 4.5 11.24 1.50 2.82 2.88 3.01 40 2.66 6.29 6.76 1.00 1.97 5.13 5.48 1.45 20
Slide 31: Convenience Retail – Financial highlights
31 Convenience Retail – Financial highlights FY 20217 FY 20207 Change (%) Notes Period end COCO sites (#)1 676 695 (2.7%) Period end CORO sites (#) 8 13 (38%) 1. Includes 38 unmanned diesel stops down from 40 in FY 2020 Total sales volumes (BL) 3.905 4.105 (4.9%) 2. Excludes GST and excise (as appli
Slide 32: Convenience Retail – Key drivers
32 Convenience Retail – Key drivers Dated Brent (US$/bbl) and Industry monthly average gross retail margins (Acpl) Steeply rising crude and product prices impacted margins, particularly diesel margins that take longer to respond US$/bbl On average, gross industry Acpl product margins were lower
Slide 33: Our assets – Retail infrastructure
33 Our assets – Retail infrastructure Australian retail network Dealer Australian retail network Owned Leased-APT1 Leased Total2 owned Company operated 134 197 307 0 638 First full year of company operated model with franchisee transition substantially complete; 8 franchise sites remain to be prog
Slide 34: Capital allocation – Increased balance sheet capacity
34 Capital allocation – Increased balance sheet capacity Continued focus on operating and capital efficiency, governed by a well-defined framework Capital Allocation Framework Ampol is committed to maintaining a strong investment grade credit rating; Stay-in-business capex currently Baa1 from Mood
Slide 35: Capital Expenditure and Depreciation & Amortisation
35 Capital Expenditure and Depreciation & Amortisation Capital Expenditure1 RCOP Depreciation & Amortisation FY 2021 FY 2020 FY 2021 FY 2020 ($M) ($M) ($M) ($M) Lytton 52.1 91.4 Convenience Retail 176.3 210.2 Fuels & Infrastructure (ex Lytton) 87.4 43.7 Fuels & Infrastructure 182.3 183.4 Future Ener
Slide 36: Strong flexible funding platform
36 Strong flexible funding platform Committed debt maturity profile ($M) (31 December 2021) $3.6 billion of committed funding facilities at 31 December 2021 ꟷ Excludes $1.3 billion of facilities available to fund the Z Energy transaction Prudent debt maturity profile to minimise refinancing risk
Slide 37: Significant items
37 Significant items Notes Full Year Ending December FY 2021 FY 2020 ($M) ($M) 1. $51.3 million Ampol rebranding expense comprises $42.4 million for rebranding program and $8.9 million accelerated depreciation compared to $65.6 million recognised at full year 2020 comprising obligations to 3rd party
Slide 38: Decarbonising our operations
38 Decarbonising our operations Ampol is taking tangible steps to decarbonise its operations Lytton supports the Federal Government’s dual objectives of fuel security and an orderly CO2-e Emissions1 (Million Tonnes) energy transition. Helping our customers manage the energy transition Inaugural
Slide 39: Glossary
39 Glossary A$ - Australian Dollar ICE – Internal combustion engine bbl – Barrell (equivalent of approximately 159 litres) k – thousand BL – Billion litres m - million B2B – Business to business ML – Million litres BEV – Battery electric vehicle NAM – Net Available Margin CFPS – Cash flow per share
Slide 40: Important Notice
40 Important Notice This presentation for Ampol Limited Group is designed to provide: • an overview of the financial and operational highlights for the Ampol Limited Group for the 12-month period ended 31 December 2021; and • a high level overview of aspects of the operations of the Ampol Limited Gr
Slide 41: Thank you
VA AMPOL Thank you