Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Investor Presentation (May 2020)
18 slides from Murphy Usa's investor presentation, May 20, 2020
Slide 1: Investor Presentation May 2020
Investor Presentation May 2020 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: Today's presenters
Today’s presenters Andrew Clyde, President and Chief Executive Officer • Appointed President and Chief Executive Officer of Murphy USA Jan 2013 • Leads development and execution of strategy for creating long-term shareholder value • Oversees corporate-wide strategic initiatives enabling Murphy USA’s
Slide 4: Raising the bar on shareholder value proposition
Raising the bar on shareholder value proposition MUSA High and Low Closing Share Price with Annual Set the Bar Raise the Bar Average by Year Since Spin Spin to 2018 2019 to 2023 As of 5/20/2020 TSR: 14% CAGR TSR: 15+% CAGR $130 2013 2018 2019 2023 $121 $120 $116 Adjusted $340 $412 $423 $500+ $110 EB
Slide 5: Creating value through a simple formula – and executing
Creating value through a simple formula – and executing MUSA Value Creation Drivers Strategy Levers Build/Rebuild • Build high-return 2,800 sq. ft. NTIs Organic in target markets Growth assets where • Convert high-performing kiosks to we have a 1,400 sq. ft. stores * right to win • Manage portfolio
Slide 6: Gaining momentum despite COVID-19 challenges
Gaining momentum despite COVID-19 challenges Differentiated Core Proof Points March April May(1) • LTD (1) Fuel Gallons (2) – MUSA ▼ 30% +17% ▼ 28% +17% ▼ 23% +15% – Market ▼ 47% ▼ 45% ▼ 38% • Distinct Customer Footprint Traffic • LTD Merch Transactions (2) – MUSA ▼ 17% +11% ▼ 11% +10% ▼ 8% +8% – Ma
Slide 7: Growing fuel volume/share profitably
Growing fuel volume/share profitably Retail Pricing Excellence Creating Customer Stickiness Through MDR . MDR Member Fuel Visits per Month • Provide consistent customer-value April 2019 – January 2020 proposition 7% • Tailor playbooks by store 11% 12% 13% 14% 13% 15% 13% 13% 14% • Leverage data and
Slide 8: Accelerating merchandise sales across categories
Accelerating merchandise sales across categories Creating Value For Customers and Suppliers Tobacco: Growing Same-Store Units Across Product Lifecycle Through MDR • Maximize funding through enhanced Nicotine Product Examples MDR capabilities • Align growth objectives with partners New Products . Cor
Slide 9: Maintaining cost leadership with integrity
Maintaining cost leadership with integrity Store Opex: Raising the Bar on Reducing Customer Friction and Creating Execution Despite Headwinds Operational Efficiencies Through MDR • Implement site and market specific performance plans • Maintain reputational integrity (e.g. age verification, safety,
Slide 10: Building high performing new stores
Building high performing new stores Building Bigger Stores Annual Square Footage Additions • Up to 30 NTI’s in 2020; 50 thereafter 2015/2016 82k sq. ft. • Primarily 2,800 sq. ft. stores Average from 70 stores • Doubling square footage with fewer 140k sq. ft. 2021e stores vs. WMT 200 program from 50
Slide 11: Rebuilding kiosks into even higher performing small stores
Rebuilding kiosks into even higher performing small stores Replacing High-performing Kiosks with 1,400 sq. ft. Walk-in Stores • Expanded merchandise offer • Enhanced customer experience • Reduced network age Premium Locations - High Returns • Completed 86 sites through 2019 • Realized gains in all k
Slide 12: Creating optionality through high cash flow operations
Creating optionality through high cash flow operations Cash Provided by Net Debt (MM) Operating Activities As of March 31, 2020 216 2015 298 Term Loan $250 337 Bonds: 2016 284 2017 5.625% 296 2019 4.750% 493 . 284 2017 321 Total Debt $1,039 399 (1) Less Cash (3) ( 200) 2018 346 Net Debt . $839 . Lev
Slide 13: Allocating capital strategically
Allocating capital strategically Capital Allocation ($MM) Capital Allocation 2015 – 2019 2015 – 2019 $2,250 Retail Growth Capital $587 $1,088 $464 $480 37% $323 $382 $206 $338 48% $248 $167 $144 $1,162 $264 $274 $216 $194 $215 8% Share Retail Repurchases 7% 2015 2016 2017 2018 2019 5 -Year Total Mai
Slide 14: Appendix
Appendix Murphy USA Inc. 14
Slide 15: 2020 guidance
2020 guidance 2019 Guidance Range 2019 Actual Results 2020 Guidance Range Organic Growth New Stores 15-20 17 Up to 30 Raze and Rebuilds 20-25 27 Up to 25 Fuel Contribution Retail fuel volume per store (K gallons APSM) 240 to 245 248 Withdrawn Fuel Breakeven Merchandise contribution ($ Millions) $410
Slide 16: Non-GAAP adjusted EBITDA reconciliation
Non-GAAP adjusted EBITDA reconciliation Year Ended December 31, (Millions of dollars) 2013 2014 2015 2016 2017 2018 2019 Net Income $ 235.0 $ 243.9 $ 176.3 $ 221.5 $ 245.3 $ 213.6 $ 154.8 Income taxes 100.1 116.4 80.7 130.5 (5.2) 60.3 47.6 Interest expense, net of interest income 13.4 36.4 31.4 39.1
Slide 17: Non-GAAP adjusted Cash Flow Reconciliation
Non-GAAP adjusted Cash Flow Reconciliation Year Ended December 31, (Millions of dollars) 2015 2016 2017 2018 2019 Net Cash Provided by Operating Activities $ 233.7 $ 337.4 $ 283.6 $ 398.7 $ 313.3 Net Change in Noncash Operating Working Capital 46.6 (53.7) 37.0 (2.3) 48.7 Net Cash provided by Disc-Op
Slide 18: Non-GAAP Adjusted EBITDA Reconciliation 2020 and 2023
Non-GAAP Adjusted EBITDA Reconciliation 2020 and 2023 – GAAP to non-GAAP Reconciliation (Millions of dollars) Calendar Year 2020 Calendar Year 2023 Net Income $162 $175 Income taxes $55 $59 Interest expense, net of interest income $51 $44 Depreciation and amortization $171 $221 Other operating and n