Paz Retail And Energy Ltd · TASE:PAZ
Paz Retail And Energy — Paz Oil Company — Q3 2020 Earnings Presentation
26 slides from Paz Retail And Energy's earnings presentation, November 2020
Slide 1: Investors Presentation Q3 2020
Investors Presentation Q3 2020
Slide 2: Disclaimer
This presentation has been prepared by Paz Oil Company Ltd. ("the Company"). This presentation is intended to serve the public of the Company's investors and is intended solely to illustrate D I S C L A I M E R information contained in the Company's published reports. The presentation does not const
Slide 3: The Leading Fuel Company in Israel
The Leading Fuel company in Israel #1 ~4 Largest Convenience Largest Fuel station ~600K 240 Store Chain in Israel network in Israel Market Leader Fuel stations NIS billion Value of company real estate portfolio Pazgas, largest company in its field in Israel with over 570K households served Yellow 26
Slide 4: Key highlights
Adjusted EBITDA ) 1( LTM Yellow Revenue LTM ) 1( Annual Group Revenue Paz LTM ) 1 ( Key highlights 803 NIS million 953 NIS million 9.0 NIS billion Q3 2020 Q3 2020 Q3 2020 NIS 183 million NIS 271 million NIS 1.9 billion Q3/2020 30.09.2020 195 NIS million 3.1 NIS billion 70% Dividend Policy AA- Adjust
Slide 5: Paz's response to the COVID-19 impact on the Company
Paz’s response to the COVID-19 impact on the Company The financial strength and debt structure of Paz, along with the diversity of operating activities, enables the company to deal with the COVID-19 crisis in the best possible way. The effects of the second lockdown on fuel demand A gradual return t
Slide 6: Strategic acquisitions synergistic to Paz Group
Strategic Excellence in 2020-2025 acquisitions Retail synergistic to Paz Group STRATEGIC PLAN IMPLEMENTATION The MOU to purchase 50% of The potential acquisition of the EV-Edge , which specializes "Super Yuda“ supermarket charging electric vehicles: retail chain is a direct • Today EV-Edge has over
Slide 7: Operating Segments
OPERATING SEGMENTS
Slide 8: Retail and Wholesale
RETAIL AND WHOLESALE
Slide 9: R&W Operating Income and Revenue
R&W Operating Income | NIS millions Revenue | NIS millions RETAIL AND +6% WHOLESALE 271 110 256 72 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Despite a 20% decrease in transportation The Yellow Convenience Store Chain fuel consumption* in Q3/2020 compared recorded a 6% growth in revenue in to Q3/2019 due to th
Slide 10: Yellow
2.8 NIS million Average transactions per month (2019) Revenue (Yearly) | NIS millions Revenue per m2 | NIS thousands/month RETAIL AND WHOLESALE Record 6% quarter Yellow Average annual growth in sales between 2015-2019 2020 revenue for 2019 Recovery: return to growth of 6% in 2018 Yellow! Yellow reve
Slide 11: Industries and Services
INDUSTRIES AND SERVICES
Slide 12: Pazgas
INDUSTRIES AND Pazgas is the largest Pazgas Operating income (Yearly) | NIS millions SERVICES LPG supplier in Israel 140 128 122 Market share of approx. 26% Average for 2019 (excluding the 2018 2019 LTM 2020 )1( Palestinian National Authority) Direct sales+to over Pazgas Operating income (Quarterly)
Slide 13: Pazkar, Paz Aviation, lubricants
INDUSTRIES Increase in AND Industries & Services Operating income | NIS millions SERVICES profitability of Paz excluding Pazgas (Yearly) Lubricants and Pazkar offset the 84 83 decrease in profits of Paz Aviation Pazkar Paz lubricants 66 Services and Assets as a result of the decrease in demand Paz P
Slide 14: Refining and Logistics
REFINING AND LOGISTICS
Slide 15: Background
Supplies about 1/3 of distillate fuel REFINING consumption in Israel AND LOGISTICS Supplies about 45% of jet fuel in Israel* Over 1,000 acres (dunam) in strategic location in Ashdod Background Significant storage capacity Excess land that can be used for a variety of industrial and infrastructural a
Slide 16: Business environment
REFINING AND LOGISTICS Business environment Indicative product margins for the MED region ($/bl) Dtd Brent ($/barrel) Gasoline 10 PPM CIF MED Crack Jet CIF MED ULSD 10 PPM CIF MED Crack FO 1% FOB 25 90 Q3/19 Q3/20 20 80 $62 $43 15 70 10 60 5 50 0 40 -5 30 -10 20 -15 10 -20 0 Source: Platts Source: R
Slide 17: Operating Income and Adjusted EBITDA, Refining
Operating Income and Adjusted EBITDA Operating Income and Adjusted EBITDA REFINING Refining segment (Quarterly) | NIS millions Refining segment (Yearly) | NIS millions AND Adjustedמתואם EBITDA Adjusted מתואם תפעולי EBITDA מתואם Adjusted Adjusted מתואם תפעולי Operating LOGISTICS EBITDA EB
Slide 18: Production Output
Paz Ashdod Refinery | K tons REFINING Production Output AND LOGISTICS 1,187 Production 827 Output Q3 2019 Q3 2020 Breakdown of Paz Ashdod Refinery Production Output by product Q3 2019 Q3 2020 Fuel oil 6% Jet Fuel Other Other 4% 5% 5% Fuel oil 15% Gasoline Gasoline 38% 44% Jet Fuel 13% Diesel 41% Die
Slide 19: Real Estate
REAL ESTATE
Slide 20: Real Estate portfolio and operating income
~4.0 Fair value of real estate Real Estate portfolio* Operating income (Yearly) | NIS millions NIS billion 107 105 96 REAL ESTATE Real estate development projects of ~150K m2 Offices | 126,000 m2 Housing | 14,000 m2 2018 2019 LTM 2020 )1( Hotels | 10,000 m2 105 Owned Real Estate stations in Operatin
Slide 21: Financial Highlights for the Period
FINANCIAL HIGHLIGHTS FOR THE PERIOD
Slide 22: Key Consolidated Results
Paz Group Adjusted EBITDA Adjusted Reported Financial highlights by segment EBITDA EBITDA Q3.2019 Q3.2020 162 316 Key Consolidated Results | NIS millions 313 132 226 85 183 50 56 43 39 Q3.2019 Q3.2020 Q3.2019 Q3.2020 -26 -24-18 מ "& קו Retail ש "תעו Industries & זיקוק Refining & נדל"ן Re
Slide 23: Condensed Consolidated Balance Sheet
Paz Group Financial highlights NIS millions 30/09/2020 31/12/2019 Cash and cash equivalents 1,907 1,388 Condensed Inventories 748 959 Consolidated Trade Receivables 1,236 1,627 Balance Sheet | NIS millions Other current assets 206 202 Fixed Assets (PP&E and investment property), net 5,153 5,549 Righ
Slide 24: Operating Working Capital and Cash Flows
Paz Group Operating Working Capital Financial highlights Paz Group | NIS millions 982 896 Condensed 839 Consolidated 692 Balance Sheet | NIS millions 690 550 442 391 31.12.2018 31.3.2019 30.06.2019 30.09.2019 31.12.2019 31.3.2020 30.06.2020 30.09.2020 Operating Cash flows and FCF Q3/2020 | NIS milli
Slide 25: Share re-purchase program and Dividend distribution
Paz Group Financial highlights Dividend Distribution and buyback by year | NIS millions דיבידנד Dividend עצמית רכישה Buyback Share re-purchase program and Dividend distribution 45 The Company's Board of Directors decided on 25.5.2020 to approve a plan to repurchase the Company's shares in the
Slide 26: Thank you
Contact Information Thank Q3 Omri Arens Investor Relations and you 2020 Credit Risk Manager Investors Presentation 09-8631197 ir@paz.co.il