Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Shareholder Meeting (May 2019)
10 slides from Murphy Usa's shareholder meeting presentation, May 1, 2019
Slide 1: Annual Shareholder Meeting May 2019
Annual Shareholder Meeting May 2019 Murphy USA Inc. 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those express
Slide 3: Murphy USA's strategy since 2013 – Winning at our game
Murphy USA’s strategy since 2013 – Winning at our game Strength Strategy Overarching Objectives Strategic Increase productivity of existing stores Relationship with Grow Organically Walmart to grow competitive advantage Winning with Build/rebuild assets where MUSA has Diversify Value-Oriented the “r
Slide 4: Creating value by executing a simple formula
Creating value by executing a simple formula MUSA Value Creation Drivers 2013 – 2018 Highlights Increased total stores by 21% . Organic • 271 new sites Growth • 59 Raze & Rebuilds * Grew fuel contribution margin by 10% . Fuel • 11% total volume growth Contribution • 16.3 cpg average total margin + S
Slide 5: Value creation translating to shareholder returns
Value creation translating to shareholder returns MUSA Share Price By Year Average, Min, Max Drivers of Share Price $100 2013 2018 %Δ $89 $90 $86 EBITDA $340 $412 21% $81 $79 $80 $80 Shares $73 $76 46.8 32.3 (31%) $69 Outstanding $70 $70 $74 $67 EV/EBITDA 6 9 50% Multiple $61 $63 $60 $61 $50 $50 $54
Slide 6: Significant future opportunity to grow shareholder value
Significant future opportunity to grow shareholder value Examples of MUSA Opportunity Set for Store Productivity Past Present Future • CoreMark contract • Scan based trading for • Item level inventory to Doing general merchandise drive computer assisted Things ordering Differently • Store labor • Wa
Slide 7: Future portfolio changes
Future portfolio changes Approach Considerations • Limited good and available locations in attractive Walmart Supercenter Halo markets where we can win with small store format • Remaining states unattractive from demand or regulatory standpoint • Building pipeline for 30-40+ locations per year in mo
Slide 8: High class problem – Cash Flow Machine
High class problem – Cash Flow Machine Operating Sources of Future Net Debt (MM) Cash Flow Growth As of December 31, 2018 • Achieving Zero Fuel Term Loan $ 72 2013 357 Breakeven Bonds: • Murphy Drive Rewards 2013 6.000% 495 2014 306 • Retail Pricing Excellence 2017 5.625% 296 • Contribution from lar
Slide 9: Capital allocation considerations
Capital allocation considerations • Organic growth is flexible based on opportunity – Building In-fill NTI pipeline for 30-40+ potential stores in 2020 and beyond – Developing strategic alternatives for non-urban sister store where MUSA has a right to win – Raze and rebuilds are flexible based on ca
Slide 10: Winning at our game lets all our stakeholders win
Winning at our game lets all our stakeholders win Stakeholders What MUSA Delivers Customers • Commitment to deliver exceptional value in products they choose to buy • Trusted brand to ensure guaranteed products, safe facilities and secure personal information Suppliers • Commitment to share growth i