21 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Feb 14, 2019
Slide 1: ADNOC Distribution Q4 and FY 2018 Results Presentation
ADNOC DISTRIBUTION Q4 AND FY 2018 RESULTS PRESENTATION INVESTOR AND ANALYST CONFERENCE CALL 14 February 2019 ADNOC Distribution
Slide 2: Agenda
AGENDA 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q4 AND FY 2018 RESULTS 04 OUTLOOK 2 ADNOC DISTRIBUTION | Q4 AND FY 2018 RESULTS
Slide 3: Disclaimer
DISCLAIMER This communication includes forward-looking statements which relate to, among other things, our plans, objectives, goals, strategies, future operational performance and anticipated developments in markets in which operate and in which we may operate in the future. These forward-looking st
Slide 4: Executive Summary
01 EXECUTIVE SUMMARY SPEAKER: SAEED MUBARAK AL RASHDI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 5: Introduction
INTRODUCTION Resilient full year performance delivering on all IPO milestones Operational and financial Strategic update 2019 outlook performance Positive underlying EBITDA Delivery of all targets Focus on volume growth in performance in FY 2018 despite announced for 2018 UAE and international marke
Slide 6: Strategy Update
02 STRATEGY UPDATE SPEAKER: JOHN CAREY DEPUTY CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 7: Continued progress of our initiatives
STRATEGY UPDATE Continued progress of our initiatives Market context Implemented strategic initiatives • Fuel volume down 7.7% YoY and up 0.6% QoQ • Roll-out of ADNOC Flex in Abu Dhabi and Fuel Retail supported by a 5.9% push in Retail fuel volumes in Q4 Northern Emirates 2018 • Entry to Dubai and K
Slide 8: Key Strategic Update: Fuel Retail
KEY STRATEGIC UPDATE Fuel Retail update IPO – December 2017 Full year 2018 achievements …2019 and beyond ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Network expansion with expected • In UAE: 14 new stations added in Abu • 25–30 stations across the UAE, with a openings of 13 new stations in
Slide 9: Key Strategic Update: Non-Fuel Retail
KEY STRATEGIC UPDATE Non-Fuel Retail update IPO – December 2017 Full year 2018 achievements …2019 and beyond ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Opening of 5-7 new convenience stores • Opened 15 new convenience stores in • Our convenience store network to in 2018 UAE, well exceeding
Slide 10: Key Strategic Update: OPEX and CAPEX efficiencies
KEY STRATEGIC UPDATE OPEX and CAPEX efficiencies update IPO – December 2017 Full year 2018 achievements …2019 and beyond ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED OUTLOOK • Cash OPEX savings of USD 50m for • OPEX savings • Up to USD300m CAPEX planned in 2019 2018 − Total OPEX savings of USD 53m in
Slide 11: Q4 and FY 2018 Results
03 Q4 AND FY 2018 RESULTS SPEAKER: PETRI PENTTI CHIEF FINANCIAL OFFICER ADNOC Distribution
Slide 12: Overview of 2018 Performance
OVERVIEW OF 2018 PERFORMANCE Robust financial performance in 2018… FY 2017 FY 2018 Change YoY (%) Revenue (USDm) 5,379 6,233 15.9% Financial Gross profit (USDm) 1,205 1,380 14.5% Performance EBITDA (USDm) 621 755 21.6% Net income (USDm) 491 579 18.0% …despite decrease in fuel volumes… FY 2017 FY 201
Slide 13: Strong Cash Generation in 2018
STRONG CASH GENERATION IN 2018 Cash flow bridge Dec-2017 vs. Dec-2018 (USDm) USD1,338m of net operating cash flow Net debt / 1.7x1 0.0x EBITDA 578 (165) (41) 760 1,4552 (400) 2 723 Cash at Dec 2017 Cash flow from Working capital Cash flow from Finance Cost Dividends Cash at Dec 2018 operations movem
Slide 14: Financial and Operating Highlights
FINANCIAL AND OPERATING HIGHLIGHTS USDm Q4 2017 Q4 2018 Change YoY (%) FY 2017 FY 2018 Change YoY (%) Revenue 1,507 1,626 7.9% 5,379 6,233 15.9% Gross profit 357 322 -9.6% 1205 1380 14.5% Key Margin 23.7% 19.8% 22.4% 22.1% financial figures EBITDA 181 168 -7.1% 621 755 21.6% Margin 12.0% 10.3% 11.5%
Slide 15: Gross Profit by Segment
GROSS PROFIT BY SEGMENT USDm Q4 2017 Q4 2018 Change YoY (%) FY 2017 FY 2018 Change YoY (%) Fuel and non-Fuel Retail 221 209 -5.6% 781 900 15.3% o/w Fuel 203 189 -6.8% 709 821 15.9% o/w non-Fuel 18 20 8.0% 72 79 9.4% Margin 21.9% 18.7% 20.9% 21.1% Corporate 59 48 -18.5% 210 214 1.7% Margin 18.0% 14.5
Slide 16: EBITDA by Segment
EBITDA BY SEGMENT USDm Q4 2017 Q4 2018 Change YoY (%) FY 2017 FY 2018 Change YoY (%) Retail 106 84 -20.8% 341 446 30.8% Margin 10.5% 7.6% 9.1% 10.4% Corporate 39 51 32.6% 163 177 8.2% Margin 11.8% 15.4% 14.8% 13.7% Aviation 30 23 -24.9% 95 93 -2.7% Margin 20.3% 14.0% 20.6% 15.5% 1 Other 6 10 n.m. 21
Slide 17: Outlook
04 OUTLOOK SPEAKER: SAEED MUBARAK AL RASHDI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 18: Outlook: Key strategic pillars
OUTLOOK • Low single digit volume growth in light of significant announced investments in the Market region • Expansion of our network both in UAE and internationally − 25 – 30 new openings in UAE with a focus on Dubai Fuel Retail − 5 – 10 new openings in KSA • Signed MoU in KSA to further expand ou
Slide 19: Q&A
Q&A Saeed Mubarak Al Rashdi John Carey Petri Pentti Acting Chief Executive Officer Deputy Chief Executive Officer Chief Financial Officer ADNOC Distribution
Slide 20: ADNOC Distribution Business Model
ADNOC DISTRIBUTION BUSINESS MODEL Retail Commercial Business Fuel Retail Non – Fuel Retail Corporate Aviation Key Transportation fuel Transportation fuel Jet fuel Convenience stores Products / LPG LPG Fuelling, maintenance and other Services Car care Lubricants Lubricants services • Leader in the UA
Slide 21: Thank You
ADNOC DISTRIBUTION Q4 AND FY 2018 RESULTS PRESENTATION INVESTOR AND ANALYST CONFERENCE CALL 14 February 2019 IR@ADNOCDISTRIBUTION.AE THANK YOU ADNOC Distribution