Ampol Limited · ASX:ALD
Ampol — H1 2024 Earnings Presentation
48 slides from Ampol's earnings presentation, Aug 19, 2024
Slide 1: 2024 Half Year Results Presentation
AMPOL LIMITED ACN 004 201 307 29-33 BOURKE ROAD ALEXANDRIA NSW 2015 ASX Release 2024 Half Year Results Presentation Monday 19 August 2024 (Sydney): Ampol Limited provides the attached Results Presentation for the half year ended 30 June 2024. Authorised for release by: the Board of Ampol Limited INV
Slide 2: Welcome and overview
2 Welcome and overview Matt Halliday Managing Director & CEO
Slide 3: Safety performance
3 Safety performance Fuels and Infrastructure personal safety Convenience Retail personal safety Z Energy personal safety1 10.1 4.6 4.2 4.6 6.2 3.5 3.8 5.7 1.9 2.2 1.9 2.5 3.3 3.8 2.2 2020 2021 2022 2023 1H 2024 2020 2021 2022 2023 1H 2024 2020 2021 2022 2023 1H 2024 Days Away from Work Injury Frequ
Slide 4: 1H 2024 highlights
4 1H 2024 highlights First half Group RCOP1 EBITDA2 of $737 million, Group RCOP EBIT2 of $502 million, Financial performance Statutory NPAT3 of $235 million First half total sales volume of 13.25 billion litres Balance sheet Leverage at 1.9 times (LTM4 Basis); Net borrowings of $2,555 million
Slide 5: 1H 2024 key Group metrics
5 1H 2024 key Group metrics Profit metrics Balance Sheet metrics Sales volume Capital management $737 m $2,555 m 13.25 BL 60 cps Group RCOP EBITDA1 Net borrowings Total sales volume Interim dividend declared $502 m 1.9 times 7.50 BL $61 m Group RCOP EBIT1 Leverage ratio Aust. sales volume Franking c
Slide 6: Group financial result
6 Group financial result Greg Barnes CFO
Slide 7: Fuel sales to end customers
7 Fuel sales to end customers Ampol Sales Volumes (BL) Australian wholesale volume 14.17 13.25 Ampol’s Australian wholesale volumes up1 1% 11.05 11.50 4.65 3.93 Good performance from commercial channels2 helped to offset softer retail volumes 9.60 9.94 1.49 4.50 4.21 Convenience Retail fuel sale
Slide 8: 1H 2024 Group financial performance
8 1H 2024 Group financial performance 1H 2024 1H 2023 Variance (%) Group1 ($M) Group1 ($M) Lytton production disruptions impacted 1H 2024 performance Group RCOP EBITDA (excluding Significant Items) 736.5 798.0 (7.7%) Group RCOP D&A (234.4) (221.7) 5.7% Resilient performance from retail and comme
Slide 9: 1H 2024 GROUP RCOP EBIT result
9 1H 2024 GROUP RCOP EBIT result Resilient Group result through a determined focus on what we can control 1H 2024 v 1H 2023 Group RCOP EBIT1 ($M) 798 (15) (61) 737 15 (9) (4) 13 222 (234) 576 502 1H 2023 1H 2023 D&A 1H 2023 RCOP Lytton EBITDA F&I (Ex-Lytton Energy Convenience New Zealand Corporate 1
Slide 10: Fuels & Infrastructure (F&I) result
10 Fuels & Infrastructure (F&I) result Resilient F&I Australia performance, broadly in line with 1H 2023 1H 2024 v 1H 2023 F&I RCOP EBIT1 ($M) 381 (15) (2) 77 (59) 304 300 (4) (74) 226 1H 2023 F&I 1H 2023 F&I D&A 1H 2023 F&I Lytton EBITDA F&I Aust (Ex- F&I Int EBITDA Energy Solutions 1H 2024 F&I 1H
Slide 11: F&I (Ex-Lytton and Energy Solutions)
11 F&I (Ex-Lytton and Energy Solutions) F&I (Ex-Lytton and Energy Solutions (Aus))1 RCOP EBIT2 ($M) F&I Australia RCOP EBIT broadly in line with 1H 2023 Wholesale volumes rose3 1.0% as growth in diesel volumes more than offset softer 223 retail volumes 166 79 161 5 145 F&I International RCOP E
Slide 12: Convenience Retail key metrics
12 Convenience Retail key metrics Strong growth in fuel margin and continued strong shop performance excluding the impact of tobacco sales decline Retail fuel volume Network KPIs Income from fuels increased due to favourable mix of premium fuels, up1 1.6 ppt 1,819 ML 633 Strong shop performance
Slide 13: Convenience Retail key metrics
13 Convenience Retail key metrics Total Fuel & Shop Margin ($M) Convenience Retail Fuel Volumes (BL) 396 414 383 376 2.42 338 342 2.05 1.99 1.89 1.91 1.82 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 Total Shop Revenue ($M)1 Shop Gross Margin %1,2 A
Slide 14: Convenience Retail result
14 Convenience Retail result Stronger fuel margins largely through improved premium fuel mix 1H 2024 v 1H 2023 Convenience Retail RCOP EBIT ($M) (2) 268 (4) 256 37 (18) (93) 89 175 167 1H 2023 CR 1H 2023 D&A 1H 2023 CR Fuel volume Fuel margin & mix Shop income Cost of doing 1H 2024 CR 1H 2024 D&A 1H
Slide 15: New Zealand (incl Z Energy)
15 New Zealand (incl Z Energy) Delivering on the acquisition business case New Zealand volume sold split by sector (%) RCOP EBIT from New Zealand segment was A$127.6 million, up 3.9% versus 1H 2023 — Benefit of diversification of channels to market and Ampol integrated supply chain — Achieving the
Slide 16: Z Energy retail key metrics
16 Z Energy retail key metrics Total Fuel & Shop Margin (NZ$M) Z Energy Fuel Retail Volumes2 (BL) 0.80 237.1 239.4 218.3 0.75 0.73 0.68 0.71 206.3 189.1 187.1 0.62 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 Total Shop Revenue (NZ$M) Gross Margin %
Slide 17: New Zealand result
17 New Zealand result Benefits of acquisition synergies support improved earnings 1H 2024 v 1H 2023 New Zealand RCOP EBIT (NZ$M unless otherwise noted) 203 6 188 2 7 (65) 55 138 133 1H 2023 NZ 1H 2023 D&A 1H 2023 NZ Fuel margin Non-fuel income Opex and exited 1H 2024 NZ 1H 2024 D&A 1H 2024 NZ RCOP E
Slide 18: Balance sheet and cash flow
18 Balance sheet and cash flow Payment of 2023 Final ordinary and Special dividends driving leverage back towards target range Movement in net borrowings1 ($M) (429) (185) 474 (32) (87) (100) (2,555) (2,195) Dec-23 opening Operating cashflow Tax Net Interest Other investing Net Capital FY 2023 Final
Slide 19: A disciplined approach to capital allocation
19 A disciplined approach to capital allocation Capital management since 2015 (A$m) Capital Allocation Framework 655 655 Ampol remains committed to its Capital Allocation Framework and is focused on “getting the balance right” between shareholder returns, core business optimisation and 119 143 app
Slide 20: Strategy update
20 Strategy update Matt Halliday Managing Director & CEO
Slide 21: We are delivering on our strategic objectives
21 We are delivering on our strategic objectives Improving the mix of earnings while evolving the business for the longer term Purpose Powering better journeys, today and tomorrow Strategy • Declared FID for Ultra Low Sulfur Fuels project. Project on track. Historically 10ppm gasoline has ENHANCE MA
Slide 22: Australian and New Zealand passenger EV market update
22 Australian and New Zealand passenger EV market update Ampol is growing its early position in on-the-go EV charging. Customers continue to transition to BEVs and we maintain flexibility to adjust to the pace of the transition. Ampol Group electric vehicle charging network Electric vehicle uptake (
Slide 23: Our key priorities for 2H 2024
23 Our key priorities for 2H 2024 We are clear on our key priorities for 2H 2024 ENHANCE Progress Lytton Ultra Low Sulfur Fuels Project, completion expected around 2H 2025 the core business Progress strategy to tactically grow our Australian Convenience Retail footprint and offer — New to industry b
Slide 24: Outlook and closing remarks
24 Outlook and closing remarks Matt Halliday Managing Director & CEO
Slide 25: Refining outlook positive over time
25 Refining outlook positive over time Despite short term refiner margin weakness, the outlook remains supportive of higher refiner margins over time Global Demand vs Refinery Supply and Utilisation1 Balance of long anticipated capacity additions to come on stream in 2024. Lower 120 90% capacity a
Slide 26: Current trading conditions and outlook
26 Current trading conditions and outlook Resilient performance in 1H 2024 underpins the full year result Current trading Capital Expenditure Lytton refiner margin in 3Q 2024 will be impacted by production mix during the Declared FID on Ultra Low Sulfur Fuels Project in 2Q 2024. Net spend1 of ~$
Slide 27: Why invest in Ampol
27 Why invest in Ampol Operating divisions RCOP EBIT3 ($m) A resilient and high-quality business mix Lytton — Owning and operating an integrated fuels value chain. Uniquely positioned refinery F&I International (continuing operations) — Growing Petrol and Convenience share of Group earnings F&I Au
Slide 28: <L oe) O
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Slide 29: Appendix
29 Appendix Our unique competitive strengths 30 Our integrated platform creates opportunities 31 Product sales volumes 32 Fuels & Infrastructure – Financial highlights 33 Singapore Weighted Average Margins 34 Lytton refinery key metrics 35 Lytton refinery result 36 Convenience Retail – Financial hig
Slide 30: Our unique competitive strengths
30 Our unique competitive strengths Ampol possesses qualities that are unmatched in the Australian and New Zealand transport fuels industries Strategic assets Supply chain expertise Deep customer base Iconic brands Decarbonisation Portfolio of privileged Australia’s and New Zealand’s Significant B2B
Slide 31: Our integrated platform creates opportunities
31 Our integrated platform creates opportunities The integrated value chain of the traditional fuels business provides fuel security for today and provides a pathway to pursue mobility energy for tomorrow B2B Integration benefits Earnings are diversified by participation across the full supply cha
Slide 32: Product sales volumes
32 Product sales volumes Z Energy Fuels F&I (Australia) Volumes F&I (International) Volumes CR Fuels Volumes Volumes1,2 BL BL BL BL 10.00 5.00 3.00 4.65 3.00 4.50 9.00 4.50 4.21 8.11 2.50 2.42 3.93 2.50 8.00 7.53 7.50 4.00 1.33 1.34 6.97 1.21 1.89 1.99 2.05 7.00 6.55 6.68 1.27 1.18 3.50 2.00 0.72 1.
Slide 33: Fuels & Infrastructure – Financial highlights
33 Fuels & Infrastructure – Financial highlights 1H 20245 1H 20235 Change (%) Notes Total Sales Volumes (BL) (excluding Z Energy) 11.42 12.18 (6.2%) Australian Sales Volumes (BL) 7.50 7.53 (0.5%) 1. F&I Australia (Ex-Lytton) includes all earnings and costs associated International Sales Volumes (BL)
Slide 34: Singapore Weighted Average Margins
34 Singapore Weighted Average Margins Weaker global demand conditions and increased supply have combined to weaken margins particularly in May and June. Singapore Weighted Average Margin (US$/bbl) MOPS Product Pricing and Dated Brent (US$/bbl) ~2 month lag of crude pricing US$/bbl US$/bbl
Slide 35: Lytton refinery key metrics
35 Lytton refinery key metrics Lytton Refiner Margin1 Operational performance LRM (US$/bbl and Acpl) BL High Value Production Volumes, Production Utilisation (%) 29.0 3.50 84 87 86 86 83 % Impacted 79 78 76 79 by FCCU 3.00 80 outage 2.50 55 19.0 60 14.2 2.00 43 13.7 9.7 9.2 32.96 11.3 10.2 11.3 8.4
Slide 36: Lytton Refinery result
36 Lytton Refinery result 1H 2024 v 1H 2023 Lytton RCOP EBIT ($M) 131 (17) 9 (8) 116 31 0 100 (26) 89 1H 2023 1H 2023 D&A 1H 2023 RCOP Volume USD LRM Impact of Opex & other 1H 2024 RCOP 1H 2024 D&A 1H 2024 RCOP EBIT EBITDA AUD on LRM EBITDA RCOP EBIT
Slide 37: Convenience Retail – Financial highlights
37 Convenience Retail – Financial highlights 1H 2024 1H 2023 Change (%) Notes Period end COCO sites (#)1 629 639 (1.6%) Period end CORO sites (#) 4 4 0% 1. Includes 30 unmanned diesel stops down from 32 in 1H 2023 Total sales volumes (BL) 1.82 1.91 (4.8%) 2. Excludes GST and excise (as applicable) -
Slide 38: New Zealand (incl Z Energy) – Financial highlights
38 New Zealand (incl Z Energy) – Financial highlights 1H 2024 1H 2023 Change (%) Notes Retail sales volume (ML)1 705 734 (3.9%) Commercial sales volume (ML) 1,124 1,159 LFL 4.9%/(3.0%) 1. Retail sales volume includes sales through Z Energy, Caltex and Foodstuffs branded sites Supply terminal and exp
Slide 39: Z Energy volume reconciliation
39 Z Energy volume reconciliation Million litres 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1H 2023 2H 2023 FY2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1H 2024 2H 2024 FY2024 Reported Total sales volume 1,091 1,107 1,052 1,139 2,198 2,191 4,389 1,107 864 1,971 Supply adjustment1 (117) (94) (138) (143) (211) (281) (
Slide 40: Our assets – Retail infrastructure
40 Our assets – Retail infrastructure Ampol Australian retail network Ampol Australian retail network Leased- Dealer Dealer Site rationalisation continues with site count down from 1,790 at 31 Owned Leased Total APT2 Agency owned December 2023 to 1,766 at 30 June 2024; four franchise sites Company
Slide 41: Disciplined capital allocation
41 Disciplined capital allocation Continued focus on operating and capital efficiency, governed by a well-defined Capital Allocation Framework Capital Allocation Framework Ampol is committed to maintaining a strong investment grade credit rating; currently Baa1 from Moody’s Stay-in-business capex
Slide 42: Capital Expenditure and Depreciation & Amortisation
42 Capital Expenditure and Depreciation & Amortisation Capital Expenditure1 RCOP Depreciation & Amortisation 1H 2024 1H 2023 1H 2024 1H 2023 ($M) ($M) ($M) ($M) Lytton 71.0 54.7 Convenience Retail 93.2 88.5 Fuels & Infrastructure (Ex-Lytton & Energy Solutions) 28.1 21.5 Fuels & Infrastructure (Ex En
Slide 43: Strong funding and liquidity platform
43 Strong funding and liquidity platform Underpinned by a strong investment grade credit rating of Baa1 from Moody’s Committed debt maturity profile (A$m) Prudent debt maturity profile to minimise refinancing risk and maintain financial (as at 30 June 2024) flexibility ꟷ $5.2 billion of committed
Slide 44: Significant Items
44 Significant Items 1H 2024 1H 2023 Notes ($M) ($M) Software-as-a-service1 (11.7) (4.7) 1. In the current period the Group has recognised an expense of $11.7 million (1H 2023: $4.7 million) relating to multi-year projects for IT customisation costs for Asset divestments2 4.2 3.3 software-as-a-servi
Slide 45: Transition strategy is mobility focused and customer led
45 Transition strategy is mobility focused and customer led Extending the public charging network and building electricity retail presence across Queensland, NSW and New Zealand Rationale Progress Next steps Battery Electric Vehicle (BEV) is Growing on-the-go EV charging networks in Australia and Ne
Slide 46: Glossary
46 Glossary $ - Australian Dollar k – Thousand 1H – The period from 1 January to 30 June in any year kb/d – Thousand barrels per day 2H – The period from 1 July to 31 December in any year kWh – Kilowatt hour bbl – Barrel (equivalent of approximately 159 litres) LFL – Like-for-like BEV or EV – Batter
Slide 47: Important Notice
47 Important Notice This presentation for Ampol Limited Group is designed to provide: • an overview of the financial and operational highlights for the Ampol Limited Group for the six-month period ended 30 June 2024; and • a high level overview of aspects of the operations of the Ampol Limited Group
Slide 48: Thank you
VA AMPOL Thank you