Viva Energy Group Ltd. · ASX:VEA
Viva Energy — FY2022 Earnings Presentation
28 slides from Viva Energy's earnings presentation, Feb 21, 2023
Slide 1: Full Year Results
Full Year Results Year ended 31 December 2022 Helping people reach their destination
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Viva Energy Group representation or warranty, express or implied, is made as to differ materially from any future results, performance or Limited, ACN 626 661 032 (“Company” or “Viva Energy”). the fairness, accuracy, completeness
Slide 3: Contents
Contents Scott Wyatt 01 Group Highlights CEO Carolyn Pedic 02 Financial Performance CFO Scott Wyatt 03 Strategic Update and Outlook CEO 04 Appendix Viva Energy Group Limited – FY2022 Results 3
Slide 4: Group Highlights
Group Highlights Scott Wyatt Viva Energy Group Limited – FY2022 Results 4
Slide 5: Executive Leadership Team
Executive Leadership Team Recent changes support our long-term growth and transformation agenda Natasha Cuthbert Dale Cooper Carolyn Pedic Lachlan Pfeiffer Scott Wyatt Jevan Bouzo Amanda Fleming Denis Urtizberea Jennifer Gray Chief People and Executive General Chief Financial Chief Business Chief Ex
Slide 6: Safety and Environment
Safety and Environment Strong safety culture with 95% of employees responding positively to safety commitment survey Total Recordable Loss of primary Injury Frequency Rate2 Process safety events1 containment (>100KG) 4 3 6.7 29 6.0 24 2 4.6 19 19 3.6 2 1 1 1 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 F
Slide 7: FY2022 Highlights
FY2022 Highlights Record earnings and dividends through period of significant disruption of energy markets Sales volumes EBITDA (RC) Net cash FY2022 dividends +9% +122% $291M 27CPS1 To 14.3BL To $1.1BN +$386M on FY21 +270% on FY21 Retail Commercial Refining Geelong Energy Hub • Retail EBITDA +33% to
Slide 8: Retail, Fuels & Marketing (RFM) – FY2022 Highlights
Retail, Fuels & Marketing (RFM) – FY2022 Highlights Total sales back to 96% of pre-pandemic levels Retail fuel volumes (ML) Commercial fuel volumes (ML) 4,515 11,073 4,210 10,361 969 9,737 3,757 3,706 3,689 1,082 8,896 8,609 1,205 1,898 3,488 1,126 1,756 1,200 1,334 1,347 3,345 1,893 1,473 1,254 1,5
Slide 9: Retail, Fuels & Marketing (RFM) – FY2022 Highlights
Retail, Fuels & Marketing (RFM) – FY2022 Highlights Continuing to gain maintain/grow market share in Retail and Commercial National market share by fuel type Aus petrol and diesel sales (vs Dec-2019 baseline)2 20% Market VEA mkt share, VEA volume volume growth 1,2,3 growth growth 0% Premium petrol 1
Slide 10: Refining FY2022 Highlights
Refining FY2022 Highlights Focused on strong production in an elevated refining margin environment Refining margin cracks1, GRM2, Crude Premia3 Refining production (%) (US$/bbl) 58.0 FY2018 FY2019 FY2020 FY2021 FY2022 48.0 10% 14% 17% 18% Other 25% 16% 12% 3% 7% 4% 38.0 Jet 36% 39% 43% 39% 40% 28.0
Slide 11: Financial Highlights
Financial Highlights Carolyn Pedic Viva Energy Group Limited – FY2022 Results 11
Slide 12: FY2022 Financial Performance
FY2022 Financial Performance Outstanding performance across the segments supported 27 cps full-year dividend FY2022 Group Results FY2022 Group EBITDA (RC) bridge ($M) All financials in $M unless Change FY2022 FY2021 noted otherwise (%) (#) EBITDA (RC) 1,075.8 484.2 122% 591.6 NPAT (RC) 596.6 191.6 2
Slide 13: Retail Result FY2022
Retail Result FY2022 Stronger sales and margin conditions driving 33% increase in EBITDA FY2022 Retail EBITDA (RC) bridge ($M) Continued recovery in market and from new stores Increases in marketing and Higher lease costs, Improved margin sponsorships brand fees, general environment, to drive brand
Slide 14: Commercial Result FY2022
Commercial Result FY2022 Growth supported by procurement arrangements, spot opportunities and a continued focus on specialties and value led businesses FY2022 Commercial EBITDA (RC) bridge ($M) Favourable General cost customer increases Additional and product relating to Smoothed margin on mix infla
Slide 15: Refining Result FY2022
Refining Result FY2022 Refining benefited from reduced global refining capacity and tight energy markets FY2022 Refining EBITDA (RC) bridge ($M) US$17.1/BBL GRM vs. US$7.1/BBL in FY2021 Higher energy costs managed Shipping impacted through hedging by one-off Higher program No government disruptions
Slide 16: Cash Flow
Cash Flow Underlying free cash flow of $767M supports a record dividend in FY2022 and future investments Group net cash flow bridge ($M) Underlying free cash flow ($M) Release of working capital partially offset inventory loss Financials may not round. Viva Energy Group Limited – FY2022 Results 16
Slide 17: Capital Expenditure
Capital Expenditure Increase in FY2023 due to more investment in Retail, the Energy Hub and major refining maintenance Capex ($M) FY2022 FY2022 FY2023 guidance actual guidance 350 Retail, Fuels & Marketing 121 170 – 180 304 Retail 57 300 Supply and Corporate 65 250 241 92 Refining incl. turnaround1
Slide 18: Balance Sheet
Balance Sheet Net cash position provides the opportunity to pursue growth and distribute profits to shareholders Change in net cash ($M) • Returned $261.5M to shareholders through dividends in FY2022, and expect to distribute $206.1M through final dividend in March 2023. • Continue to target long-te
Slide 19: Dividends
Dividends Focused on distributing earnings to shareholders in a record year for the business 1H2022 2H2022 FY2022 • Determined a final, fully franked dividend of 13.3 cps to 4 Group RFM Refining Group Group reflect the exceptional performance from all parts of the $M $M $M $M $M business in FY2022.
Slide 20: Strategic Update, Outlook
Strategic Update, Outlook Scott Wyatt Viva Energy Group Limited – FY2022 Results 20
Slide 21: 2023 Outlook
2023 Outlook Trading conditions remain supportive as we progress our strategic objectives Retail Commercial Refining Energy Hub • Fuel demand continues to be • Continued strength in economic • Refining margins were strong in • Green hydrogen station targeted impacted by changes in mobility activity
Slide 22: Progressing our Transition and Growth Strategy
Progressing our Transition and Growth Strategy Leveraging the diversity in our three increasingly distinct businesses Today Pathway Future Leverage capability to develop Acquire capability to accelerate Outperform in our core businesses new growth pathways proven opportunities • Coles Express acquis
Slide 23: Appendix
Appendix Viva Energy Group Limited – FY2022 Results 23
Slide 24: Balancing Energy Security with the Energy Transition
Balancing Energy Security with the Energy Transition Maximise short-term earnings tailwinds, mitigate climate-related risks and seize new low carbon opportunities Energy security/domestic supply Energy transition Geelong Refinery Ultra Low Sulphur Strategic Conventional (reliability, maximise Gasoli
Slide 25: Coles Express Acquisition Highlights
Coles Express Acquisition Highlights Purchasing a convenience business with an established offering and pathway for further growth, on track for 2Q2023 completion Creates the largest fuel and convenience network under a single operator (706 sites), with pathway for further growth (Liberty Convenie
Slide 26: Refinery – Margin Analysis and Key Drivers
Refinery – Margin Analysis and Key Drivers Metric FY18 FY19 FY20 FY21 FY22 A: A$/US$ FX 0.75 0.69 0.69 0.75 0.70 B: Crude and feedstock intake mbbls 40.1 42.0 34.8 41.2 41.9 C: Geelong Refining Margin US$/bbl 7.4 6.6 3.1 7.1 17.1 D: Geelong Refining Margin = C / A A$/bbl 9.9 9.5 4.4 9.4 24.5 E: Geel
Slide 27: 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 The Geelong Refining Margin is a on a “replacement cost” (RC) basis. and amortisation adjusted to re
Slide 28: VIVA
VIVA EnergyAustralia