Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Goldman Sachs 27th Annual Global Retailing Conference 2020
19 slides from Murphy Usa's conference presentation, September 2020
Slide 1: Goldman 27th Annual Global Retailing Conference
Goldman 27th Annual Global Retailing Conference September 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: Management
Management Andrew Clyde, President and Chief Executive Officer • Appointed President and Chief Executive Officer of Murphy USA January 2013 • Leads the development and execution of our strategy for creating long-term shareholder value • Oversees corporate-wide strategic initiatives enabling Murphy U
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 8/31/2020 TSR: 14% CAGR TSR: 15+% CAGR $150 $143 2013 2018 2019 2023 Adjusted $130 $340 $412 $423 $500+ $121 EBITDA
Slide 5: Creating value through a simple formula – and executing
Creating value through a simple formula – and executing MUSA Value Creation Drivers Strategy Levers Build/Rebuild • Build high-return 2,800 sq. ft. NTIs Organic in target markets Growth assets where • Convert high-performing kiosks to we have a 1,400 sq. ft. stores * right to win • Manage portfolio
Slide 6: Emerging from COVID-19 with positive comps and momentum
Emerging from COVID-19 with positive comps and momentum August September R7 Proof Points Q2 Actuals July Actuals Estimates(*) Estimates(*) APSM Gallons ▼ 26.7% ▼ 12.8% ▼ 14.5% ▼ 7.9% Fuel Strength Total Fuel Contribution ($) ▲ 93.9% ▲ 0.0% ▼ 12.0% N/A APSM Tobacco Sales ▲ 15.4% ▲ 14.5% ▲ 6.8% ▲ 11.4
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 – August 2020 proposition • Tailor playbooks by store 7% 11% 12% 13% 14% 13% 10% 10% 11% 12% 13% 15% 13% 13% 14% 1
Slide 8: Leveraging long-standing partnerships to drive value
Leveraging long-standing partnerships to drive value Introducing Walmart+ How it works: Why it makes sense: • 5 CPG Fuel discount available to Walmart+ • 50% of Murphy USA customers are typically members at Murphy USA and Express sites traveling to or from Walmart in the same visit • The discount wi
Slide 9: 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 10: 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 11: 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 12: 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 13: Creating optionality through high cash flow operations
Creating optionality through high cash flow operations Cash Provided by Net Debt (MM) Operating Activities As of June 30, 2020 216 2015 298 Term Loan $ 238 337 Bonds: 2016 284 2017 5.625% 296 2019 4.750% 493 . 284 2017 321 Total Debt $1,027 399 (1) Less Cash (3) ( 404) 2018 Net Debt . $ 623 . 346 Le
Slide 14: 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 $215 8% Share 7% Retail Repurchases 2015 2016 2017 2018 2019 5 -Year Total Mai
Slide 15: Appendix
Appendix % eee rere eee e eee eee eee eee ee eee eee ee Murphy USA Inc. f
Slide 16: Updated 2020 guidance
Updated 2020 guidance Updated 2020 2019 Guidance Range 2019 Actual Results Guidance Range Organic Growth New Stores 15-20 17 25-27 Raze and Rebuilds 20-25 27 28-30 Fuel Contribution Retail fuel volume per store (K gallons APSM) 240 to 245 248 217.5 to 222.5 Fuel Breakeven Merchandise contribution ($
Slide 17: Non-GAAP adjusted EBITDA reconciliation
Non-GAAP adjusted EBITDA reconciliation Year Ended December 31, (Millions of dollars) 2013 2014 2015 2016 2017 2018 2019 2020 2Q 2020 July 2020 August Net Income $ 235.0 $ 243.9 $ 176.3 $ 221.5 $ 245.3 $ 213.6 $ 154.8 $ 168.9 $ 31.0 $ 19.9 Income taxes 100.1 116.4 80.7 130.5 (5.2) 60.3 47.6 54.1 9.9
Slide 18: 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 19: Non-GAAP Adjusted EBITDA Reconciliation
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
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