Paz Retail And Energy Ltd · TASE:PAZ
Paz Retail And Energy — Q3 2022 Earnings Presentation
39 slides from Paz Retail And Energy's earnings presentation, December 2022
Slide 1: Paz Group Investors Presentation Q3 2022
Paz Group Investors Presentation Q3 2022
Slide 2: Disclaimer
DISCLAIMER This English version of the investors presentation has been prepared solely for the convenience of the reader. The Hebrew version of the investors presentation is the binding version This presentation has been prepared by Paz Oil Company Ltd. ("the Company" or "Paz"). It is designed to se
Slide 3: Key Highlights for the Quarter
Key Highlights for the Quarter • Record quarter with EBITDA of NIS 448 million • Net income of NIS 156 million excluding the effect of Paz Ashdod transaction* • Fuel activity continues to grow and improve profitability • Launch of Paz Charge, the most innovative EV charging network in Israel, deploy
Slide 4: The Spinoff of the Refinery and the Transaction with Shapir
The Spinoff of the Refinery and the Transaction with Shapir • Paz and Shapir signed an agreement according to which Shapir will invest NIS 247 million in Paz Ashdod for stocks and options • The investment will take place simultaneously while Paz Ashdod’s shares will be distributed as a dividend in k
Slide 5: Main Results
Main Results Revenues EBITDA Net Income* Adjusted Net Income )NIS billion( )NIS million( )NIS million( )NIS million( 156* 5.4 448 +79% +58% +160% +35% 58 284 3.0 60 154* 43 2 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 * The effect of Paz Ashdod’s transaction on Paz’s financial s
Slide 6: Main Results - Without Refining Segment
Main Results - Without Refining Segment EBITDA Net Income (NIS million) (NIS million) 289 -1% 244 +18% 84 83 Q3 2021 Q3 2022 Q3 2021 Q3 2022 6
Slide 7: Energy for Transportation
Energy for Transportation Fuels in filling stations, wholesale of fuels, Aviation Services, Aviation Assets, Paz Lubricants and EV Charging
Slide 8: Energy for Transportation: Fuel sales continue to grow
Energy for Transportation Fuel sales continue to grow Gross Profit Total Fuel Sales* (NIS million) (million liters) 274 809 253 +8% 745 +9% Q3 2021 Q3 2022 Q3 2021 Q3 2022 * Fuels sold in service stations and wholesale for fuels 8 8
Slide 9: EV Charging
EV Charging Launch of Paz Charge: the most innovative electric charging network in Israel • Deployment of EV charging points and launch of Paz Charge in a national campaign • There are currently 16 nationwide Paz stations equipped with EV charging points • Expected to reach approx. 22 stations with
Slide 10: Energy for Transportation - segment results
Energy for Transportation - segment results Continued growth in the profitability of the energy for transportation segment EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 124 113 +10% 87 79 +10% Q3 2021 Q3 2022 Q3 2021 Q3 2022 10 10
Slide 11: Food Retail
Food Retail Yellow convenience stores and Freshmarket’s and Super Yuda’s neighborhood supermarkets
Slide 12: Food Retail: Growing faster than the market
Food Retail Paz’s food retail business is growing at a faster pace than the market FMCG Market Growth July-September 4.5% 3.8% Total FMCG Market Total Paz's Food Retail *FMCG market and Paz’s data is according to Storenext’s categories. Data: Storenext 12
Slide 13: Food Retail: Becoming a leading player
Food Retail Becoming one of the leading players in the food retail market Sales Turnover* Monthly Sales per sqm** (NIS million) (NIS thousand) 754 7.0 +139% 4.7 315 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Decline in sales per sqm is due to change in stores mix (Freshmarket was not included in the same quart
Slide 14: Food Retail: Gross margins
Food Retail Gross margins are among the highest in the industry Gross Profit* Gross Margin** (NIS million) 37.7% 35.7% 239 +154% 94 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Decline in gross margin is due to change in stores mix (Freshmarket was not included in the same quarter last year) * In accordance with
Slide 15: Food Retail - segment results
Food Retail - segment results The food retail segment is becoming a leading branch of the Group EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 84 (NIS million) 64 +124% +121% 42 29 Q3 2021 Q3 2022 Q3 2021 Q3 2022 15
Slide 16: Gas and Renewables
Gas and Renewables Om Pazgas
Slide 17: Gas and Renewables: LPG cost and sales
Gas and Renewables High sales alongside a sharp increase in LPG cost LPG Cost at Refinery* Sales (NIS thousand per ton) (NIS million) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 +26% 221 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 175 Q3 2021 Q3 2022 -1.3 -1.4 -1.5 -1.7 -2.0 -2.0 -2.0 Gross
Slide 18: Gas and Renewables - segment results
Gas and Renewables - segment results EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 27 (NIS million) 25 -44% -44% 15 14 Q3 2021 Q3 2022 Q3 2021 Q3 2022 18
Slide 19: Real Estate
Real Estate
Slide 20: Investment Property
Investment Property High-end real estate complexes with leading tenants income-producing properties 88 Leased to third parties, mostly owned and the rest Total NOI from Third Parties leased and subleased* (NIS million) 15 25 plots and other properties** 13 28Ksqm built and leasable area*** 96% occup
Slide 21: Properties for Own Use as Service Stations
Properties for Own Use as Service Stations Largest number of owned service stations in Israel Total NOI from properties for own use as service stations** 104 owned properties* For own use as service stations (NIS million) 33 29 NIS 1.8B fair value* NIS 1.1B book value* Q3 2021 Q3 2022 NIS 0.7B exces
Slide 22: Real Estate - segment results
Real Estate - segment results Increase in profitability excluding capital gains* EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 58 52 49 46 19 3 19 3 +18% 39 +30% 46 33 43 Q3 2021 Q3 2022 Q3 2021 Q3 2022 * Increase in profits excluding capital gains (NIS 19 million in capital gains
Slide 23: Refining
Refining
Slide 24: Refining - Outputs and Product Mix
Refining - Outputs and Product Mix Refinery’s Output Refinery’s Production Mix (thousand tons) (Q3 2022) Other, 9% 976 Fuel oil, 6% Gasoline and Jet fuel, -24% 738 Naphtha, 37% 12% Q3 2021 Q3 2022 Diesel fuel, 36% • The renovation was completed at the end of July according to schedule • The refinery
Slide 25: Refining - Product Margins ($ per barrel)
Refining - Product Margins ($ per barrel) Mediterranean Basin product margin in determining dates* Gasoline Jet Fuel Diesel Fuel 51.6 60.7 68.7 56.0 59.6 56.7 46.9 37.8 39.6 39.0 42.7 19.9 17.3 12.7 12.6 15.2 15.9 15.1 16.3 10.5 8.6 8.6 6.2 7.0 8.3 3.8 2.3 Daily average - past years Monthly determin
Slide 26: Refining - Paz Ashdod Weighted Margin
Refining - Paz Ashdod Weighted Margin ◼ Refining ◼ Electricity and Distribution 18.1 1.8 11.0 8.6 2.2 8.1 7.4 16.3 6.3 5.9 6.0 2.0 2.3 5.4 2.2 1.6 4.3 4.5 4.0 2.1 2.3 2.5 8.8 1.7 1.6 1.8 6.3 5.2 6.1 4.7 3.8 2.9 3.7 2.3 2.7 2.7 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q
Slide 27: Refining - segment results
Refining - segment results Record results for the refinery despite the renovation Reported EBITDA Adjusted EBITDA* (NIS million) (NIS million) 159 42 +298% +110% 20 40 Q3 2021 Q3 2022 Q3 2021 Q3 2022 * The adjustments to profit include neutralizing the following effects: the timing differences betwe
Slide 28: Other
Other Pazkar’s Operation
Slide 29: Other (Pazkar)
Other (Pazkar) Sales Adjusted EBITDA exc. IFRS 16 (NIS million) (NIS million) 83 7 +73% 48 +75% 4 Q3 2021 Q3 2022 Q3 2021 Q3 2022 29
Slide 30: Financial Results and Summary
Financial Results and Summary
Slide 31: Q3 Main Results
Q3 Main Results NIS, million EBITDA Operating profit Net finance expense** Shareholders net Q3 2021 Q3 2022 before impairment Q3 2021 Q3 2022 income* Q3 2021 Q3 2022 Q3 2021 Q3 2022 448 273 156* 331 284 264 60 156 154* 58 128 43 108 -48 2 -77 Reported Adjusted Reported Adjusted Reported Adjusted * T
Slide 32: Balance Sheet Highlights
Balance Sheet Highlights NIS, million 30.9.2022 30.6.2022 Cash and cash equivalents 1,714 1,459 Trade receivables 2,321 2,508 Inventories 1,824 1,447 Property, plant and equipment 4,744 4,953 Investment property 555 548 Right-of-use asset 1,766 1,751 Other assets 2,966 2,986 Total assets 15,890 15,6
Slide 33: Reported EBITDA by Segments
Reported EBITDA by Segments NIS, million Q3 2022 Q3 2021 Energy for Transportation 124 113 Food Retail 94 42 Real Estate* 49 58 Gas and Renewables 15 27 Other 7 4 Total - without refining 289 244 Refining 159 40 Total 448 284 • The Real Estate segment results include capital gains (NIS 3 million in
Slide 34: Adjusted EBITDA without the effect of IFRS 16
Adjusted EBITDA without the effect of IFRS 16 NIS, million Q3 2022 Q3 2021 Energy for Transportation 87 79 Food Retail 64 29 Real Estate* 46 52 Gas and Renewables 14 25 Other 7 4 Total - without refining 218 189 Refining 35 13 Total 253 202 • The Real Estate segment results include capital gains (NI
Slide 35: Cash Flows
Cash Flows NIS, million Q3 2022 Q3 2021 CFO in the quarter 485 201 Less: changes in working capital, net* )222( 24 Less: effect of IFRS 16 )77( )58( Adjusted CFO 186 167 Less: capital expenditure and others** )176( )76( Adjusted FCF 10 91 Less: capital expenditure in the refinery during the 110 curr
Slide 36: Main Proforma Results Post Paz Ashdod Transaction
Main Proforma Results Post Paz Ashdod Transaction
Slide 37: Net Financial Debt
Net Financial Debt* 4.252 4.169 3.963 (1.1-1.3) 2.8-3.0 0.1 Q1 2022 Q2 2022 Q3 2022 Funds to be received from One-time investment in Estimated net debt after Paz Ashdod at spinoff** inventory at spinoff** spinoff * The aforementioned information regarding the expected changes in net debt after the s
Slide 38: Q3 Main Results: Post-Spinoff Proforma
Q3 Main Results: Post-Spinoff Proforma* NIS, million Proforma EBITDA Proforma Adjusted EBITDA Proforma Operating Profit exc. IFRS 16 273 101 448 159 253 35 8-10 208-210 8-10 8-10 162-164 279-281 EBITDA Less: refining Impact on Proforma Adjusted Less: refining Impact on Proforma Operating Less: refin
Slide 39: Thank You
Thank You Paz Group PAZ
Paz Retail and Energy — Q3 2022 Earnings Presentation on 6ix