Murphy Usa Inc. · NYSE:MUSA
Murphy Usa — Raymond James Institutional Investor Conference 2022
19 slides from Murphy Usa's conference presentation, March 2022
Slide 1: Raymond James Institutional Investor Conference
Raymond James Institutional Investor Conference March 2022 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: Strong and sustainable record of delivering shareholder value
Strong and sustainable record of delivering shareholder value Since spin, consistent shareholder returns Cumulative Shareholder Returns driven by strategy and execution As of 12/31/2021 • Achieved zero-breakeven cost structure 417% • Reinforced every day low price position • Developed engaged staff
Slide 4: Simple formula drives earnings growth
Simple formula drives earnings growth MUSA Value Creation Drivers Strategy Enhanced Levers Build/Rebuild • Grow network of high return stores under Organic both Murphy and QuickChek brands Growth assets where • Enhance existing stores through rebuilds we have a * right to win • Expand future growth
Slide 5: Structural shifts favor our advantaged model
Structural shifts favor our advantaged model Pre-Covid fuel margins elevated slowly MUSA Historical Fuel Margin and Volumes Contribution Curves in Constant 2022 Store Months • Fuel margins steadily increased since 320 2000 as industry structure evolved 300 • MUSA all-in margins edged higher to APSM
Slide 6: Advantage: Low cost model retains higher residual margins
Advantage: Low cost model retains higher residual margins Cost pressures impacting retailers Incremental Margin Requirement From Labor Cost Scenarios (1) • Wage increases and broad-based inflation • Payment fees tied to higher prices • Rising interest rates and lease modifiers MUSA impacting over-le
Slide 7: Advantage: Low price position leads to profitable share growth
Advantage: Low price position leads to profitable share growth Reinforced every day low price position Quarterly Fuel Margin and Pricing Differential • MUSA’s pricing initiative built foundation to sustain essential capabilities Fuel Margin • Price volatility and expanded margins 38 28 27 28 created
Slide 8: Advantage: Engaged customers support future transitions
Advantage: Engaged customers support future transitions Transitioning to lower-risk nicotine products MDR Members Nicotine Category Participation • Tobacco manufacturers investing to migrate nicotine users to lower-risk products • Creates opportunity to grow margin contribution from a mature categor
Slide 9: QuickChek integration validates investment
QuickChek integration validates investment Transaction Logic Year-One Validation • All-in Merchandise Gross Profit 33% Leading Food & Beverage • F&B Gross Profit 63% C-Store Operator • Non-Tobacco 83% of Merchandise Contribution • Menu innovation and LTOs Innovative Customer • Low labor self-checkou
Slide 10: Integration focus delivers value today and growth in future
Integration focus delivers value today and growth in future Business transformation • Adopted Retail Pricing Excellence Tobacco Technology capabilities at every store AI Enabled Pricing Fuel Supply Integration • Applying analytical approach to decision Retail Food F&B making and operational efficien
Slide 11: QuickChek's network increases future optionality
QuickChek’s network increases future optionality Murphy USA Site Priority Matrix Most electric vehicles are priced within the premium and luxury vehicle segments Typical QuickChek site High has higher density, larger lots, greater crossover potential Implementation Almost 80% of EV charging occurs a
Slide 12: Strong organic growth returns support continued investment
Strong organic growth returns support continued investment Investments balanced across portfolio Expected Returns by Project (Unlevered Year 3 After-Tax ROIC) • Capital program diversifies growth across 23% brands, geographies and formats 22% • NTI activity supports new platforms and offers 21% • Ra
Slide 13: High cash flow generation supports growth and distributions
High cash flow generation supports growth and distributions Disciplined capital allocator since spin Capital Allocation 2021 (ex-acquisition, $M) • Balanced capital allocation strategy between growth and share repurchases 4% • Discounted valuation, transformation agenda and organic growth created un
Slide 14: Raising the bar as the advantaged value player
Raising the bar as the advantaged value player MUSA High and Low Closing Share Price with Annual Raise the Bar Average by Year Since Spin 2022 to 2026 As of 2/28/2022 $210 $199 $198 2026 2026 2022 Base Upside $190 $188 EBITDA $630 ~$800 ~$1,000 $170 $176 (M) $150 $143 $150 Shares 24.8 19.8 19.8 (M)(
Slide 15: Appendix
Appendix % eee rere eee e eee eee eee eee ee eee eee ee Murphy USA Inc. f
Slide 16: Management
Management Andrew Clyde, President and Chief Executive Officer • Appointed President and Chief Executive Officer of Murphy USA January 2013 • Leads the development and execution of our strategy for creating long-term shareholder value • Oversees corporate-wide strategic initiatives enabling Murphy U
Slide 17: 2022 guidance
2022 guidance 2021 Updated 2021 Actual Results 2022 Guidance Range Guidance Range Organic Growth New Stores 34 to 38 23 Up to 45 Raze and Rebuilds 31 27 Up to 35 Fuel Contribution Retail fuel volume per store (K gallons APSM) 232 to 238 229 235 to 245 Store Profitability Merchandise contribution ($
Slide 18: Non-GAAP adjusted EBITDA reconciliation
Non-GAAP adjusted EBITDA reconciliation Year Ended December 31, (Millions of dollars) 2017 2018 2019 2020 2021 Net Income $ 245.3 $ 213.6 $ 154.8 $ 386.1 $ 396.9 Income taxes (5.2) 60.3 47.6 123.0 125.0 Interest expense, net of interest income 45.4 51.4 51.7 50.2 82.3 Depreciation and amortization 1
Slide 19: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation 2022 and 2026 – GAAP to non-GAAP Reconciliation Calendar Year Calendar Year Calendar Year (Millions of dollars) 2022 2026 Base 2026 Upside Net Income $238 $344 $494 Income taxes $79 $115 $165 Interest expense, net of interest income $80 $74 $74 Depreciation an
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