Slide 1: 2023 Half Year Results Presentation
AMPOL LIMITED Draft ACN 004 201 307 29-33 BOURKE ROAD ALEXANDRIA NSW 2015 ASX Release 2023 Half Year Results Presentation Monday 21 August 2023 (Sydney): Ampol Limited provides the attached Results Presentation for the half year ended 30 June 2023. Authorised for release by: the Board of Ampol Limit
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 15 15 15 10 10 10 5 5 5 0 0 0 2019 2020 2021 2022 1H 2023 2019 2020 2021 2022 1H 2023 2019 2020 2021 2022 1H 2023 Days Away from Work Injury Frequency Rate Days Away from Work I
Slide 4: 1H 2023 highlights
4 1H 2023 highlights First half Group RCOP1 EBITDA2 of $798 million, Group RCOP EBIT2 of $576 million, Continued strong financial Statutory NPAT2 of $79 million performance First half total sales volume of 14.4 billion litres Strong balance sheet Leverage at 1.8 times (LTM3 Basis); Net borrowi
Slide 5: 1H 2023 key Group metrics
5 1H 2023 key Group metrics Profit metrics Balance Sheet metrics Sales volume Capital management $798 m $2,380 m 14.38 BL 95 cps Group RCOP EBITDA Net borrowings Total sales volume Interim dividend declared $576 m 1.8 times 7.53 BL $97 m Group RCOP EBIT Leverage ratio Aust. sales volume Franking cre
Slide 6: Group financial result
6 Group financial result Greg Barnes CFO
Slide 7: Growing fuel sales to end customers
7 Growing fuel sales to end customers Ampol’s total fuel sales grew by 25% in the half through the recovery in jet demand in Australia, growth in international sales and full six months contribution from Z Energy Ampol Sales Volumes (BL) Australian wholesale volume 14.38 Ampol’s Australian wholesa
Slide 8: 1H 2023 Group financial performance
8 1H 2023 Group financial performance Strong growth in non-refining divisions has supported the strong Group earnings 1H 2023 1H 2022 % Δ 1H 2022 1H 2023 1H 2022 % Δ 1H 2022 Continuing1,2 Continuing1,2 Continuing1,2 Group ($M) Group1 ($M) Group1($M) ($M) ($M) ($M) Group RCOP EBITDA 798.0 927.3 (14%)
Slide 9: 1H 2023 Group RCOP EBIT result
9 1H 2023 GROUP RCOP EBIT result Strong Group result supported by growth in non-refining earnings 1H 2023 v 1H 2022 Group RCOP EBIT ($M) 877 51 Variance in 1Q 2023 798 184 6 Variance in 693 144 2Q 2023 (222) (396) 45 (6) 576 77 (345) 1H 2022 1H 2022 D&A 1H 2022 RCOP Lytton EBITDA F&I (Ex- Future Ene
Slide 10: Fuels & Infrastructure (F&I) result
10 Fuels & Infrastructure (F&I) result Strong F&I (Ex-Lytton) performance 1H 2023 v 1H 2022 F&I RCOP EBIT ($M) (51) 654 87 617 (345) 380 (6) 12 65 (77) 304 1H 2022 F&I 1H 2022 Gull 1H 2021 1H 2022 F&I Lytton EBITDA F&I Aust (Ex- Future Energy F&I Int EBITDA 1H 2023 F&I 1H 2023 1H 2023 F&I RCOP EBIT
Slide 11: F&I (Ex-Lytton and Future Energy) continuing operations
11 F&I (Ex-Lytton and Future Energy) continuing operations F&I (Ex-Lytton and Future Energy)1 RCOP EBIT ($M) continuing operations +35% F&I (Ex-Lytton and Future Energy) RCOP EBIT from continuing operations grew 54% 223 compared with 1H 2022 and is 35% higher than pre-COVID levels in 1H 2019 166 7
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 LFL fuel sales volume increased in line with market in an environment of improved fuel margins 1,911 ML 643 Strong sh
Slide 13: Convenience Retail key metrics
13 Convenience Retail key metrics Total Fuel & Shop Margin and RCOP EBIT ($M) Convenience Retail Fuel Volumes (BL) 400 2.42 1.1% 385 399 378 2.05 1.99 1.89 1.91 300 339 345 200 167 149 125 127 85 100 0 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2019 1H 2020 1H 2021 1H 2022 1H 2023 Total Shop Revenue
Slide 14: Convenience Retail result
14 Convenience Retail result Stronger fuel margins and continued strong shop performance improved earnings 1H 2023 v 1H 2022 Convenience Retail RCOP EBIT ($M) 2 (10) (7) 255 57 Recontracted 211 3 (89) Largely marketing, 167 83 returning to historic levels 127 post rebrand 1H 2022 CR 1H 2022 D&A 1H 2
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 (%) Delivered targeted benefits and synergies of NZ$60-80 million per annum — Business simplification on track Transition to Ampol supply completed Z Energy continues to gain mark
Slide 16: Balance sheet and cash flow
16 Balance sheet and cash flow Strong balance sheet maintained; maximising value and shareholder returns Movement in net borrowings1 ($M) (369) (160) 988 (190) (290) (2,359) (2,380) Includes favourable working capital movement of ~$200m reflecting lower inventories partly offset by an increase in re
Slide 17: Getting the balance right – disciplined capital allocation
17 Getting the balance right – disciplined capital allocation Capital management since 2015 (A$m) Capital Allocation Framework Ampol remains committed to its Capital Allocation Framework and is focused on “getting the balance right” between shareholder returns, core business optimisation and appro
Slide 18: Strategy update
18 Strategy update Matt Halliday Managing Director & CEO
Slide 19: We are delivering on our strategic objectives
19 We are delivering on our strategic objectives Growing and improving the mix of earnings while evolving the business for the longer term Purpose Powering better journeys, today and tomorrow Strategy • Network rebrand to Ampol completed; Amplify premium fuel volume increased to 53.2% of fuel BRING
Slide 20: A more resilient business
20 A more resilient business Operating divisions RCOP EBIT ($m) Lytton Ampol’s strategy to grow non-fuel earnings is well advanced F&I International (continuing operations) — Transition to company operated and network rationalisation essentially complete F&I Australia (Ex Lytton and Future Energy)
Slide 21: Australian and New Zealand passenger EV market growth
21 Australian and New Zealand passenger EV market growth Customers are transitioning from internal combustion engine (ICE) vehicles to battery electric vehicles (BEV) with BEV sales continuing to grow. Demand for on-the-go fast and ultra-fast charging expected to grow to ~40% of charge sessions1 BEV
Slide 22: Our key priorities for 2H 2023
22 Our key priorities for 2H 2023 We are clear on our key priorities for 2H 2023 ENHANCE Final investment decision on Lytton Ultra Low Sulphur Fuels Project expected once Australian fuel standard changes are the core business resolved Clear organic strategy to tactically grow our Australian Convenie
Slide 23: Outlook and closing remarks
23 Outlook and closing remarks Matt Halliday Managing Director & CEO
Slide 24: Well positioned to benefit from fuel demand recovery
24 Well positioned to benefit from fuel demand recovery Regional fuel demand Diesel demand has been most resilient tracking above pre-COVID levels in both Australia1 and New Zealand2 — Ampol has higher than industry share due to leading card offer and more than 110,000 B2B and SME customers Petr
Slide 25: Favourable global refining supply demand balance
25 Favourable global refining supply demand balance Looking ahead, limited refining capacity additions planned Global oil demand and CDU refining capacity (mmb/d)1 Significant structural refinery closures during COVID-19 and low refinery additions to 115 date Forecast Refinery additions have bee
Slide 26: Current trading conditions and outlook
26 Current trading conditions and outlook Strong start to the second half Lytton refinery Convenience Retail Realised Lytton refiner margin in July was US$15.31/bbl, above historical averages July fuel margins softened due to rising wholesale product prices and the lag in flowing with promising
Slide 27: Appendix
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Slide 28: Appendix
28 Appendix Our unique competitive strengths 29 Our integrated platform creates opportunities 30 Reconciliation of continuing operations 31 Product sales volumes 32 Fuels & Infrastructure – Financial highlights 33 Singapore Weighted Average Margins 34 Lytton refinery key metrics 35 Lytton refinery r
Slide 29: Our unique competitive strengths
29 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 30: Our integrated platform creates opportunities
30 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 Reporting segments Earnings are diversified by participation across
Slide 31: Reconciliation of continuing operations
31 Reconciliation of continuing operations 1H 2022 Financial results1 1H 2022 1H 2022 1H 2022 Group Continuing Discontinued Group RCOP EBITDA 927.3 876.8 50.5 Group RCOP D&A (193.2) (183.7) (9.5) RCOP EBIT – Lytton 443.9 443.9 - RCOP EBIT – F&I (ex-Lytton) 172.9 131.8 41.0 RCOP EBIT– Fuels & Infrast
Slide 32: Product sales volumes
32 Product sales volumes F&I (Australia) Volumes F&I (International) Volumes CR Fuels Volumes Z Energy Fuels Volumes1 BL BL BL BL 10.00 5.00 3.00 4.65 3.00 4.50 8.11 4.50 4.21 2.50 2.42 8.00 7.53 4.00 2.50 1.34 6.97 1.33 6.55 6.68 2.20 1.27 1.89 1.99 2.05 0.66 3.50 1.21 1.91 0.10 0.52 0.82 2.00 0.72
Slide 33: Fuels & Infrastructure – Financial highlights
33 Fuels & Infrastructure – Financial highlights 1H 20236 1H 20226 Change (%) Notes Total Sales Volumes (BL) (excluding Z Energy) 12.18 10.89 12% Australian Sales Volumes (BL) 7.53 6.68 13% 1. F&I Australia (Ex-Lytton) includes all earnings and costs associated (directly International Sales Volumes
Slide 34: Singapore Weighted Average Margins
34 Singapore Weighted Average Margins While Singapore product cracks have eased from the unprecedented levels of the first half of 2022, they remain above the historical average. Ampol Singapore Weighted Average Margin in April and May affected by FCCU outage Singapore Weighted Average Margin (US$/b
Slide 35: Lytton refinery key metrics
35 Lytton refinery key metrics Lytton Refiner Margin1 Operational performance LRM (US$/bbl and Acpl) BL High Value Production Volumes, Production Utilisation (%) 29.0 Impacted 3.50 84 87 86 86 % 79 78 76 by FCCU 3.00 80 outage 2.50 55 14.2 13.7 60 32.96 11.3 2.00 43 9.7 9.2 5.1 5.8 5.3 1.50 2.82 2.8
Slide 36: Lytton Refinery result
36 Lytton Refinery result 1H 2023 v 1H 2022 Lytton RCOP EBIT ($M) 476 0 444 32 (318) 17 (43) 131 (31) 100 1H 2022 1H 2022 D&A 1H 2022 RCOP Volume USD LRM Impact of Opex & other 1H 2023 RCOP 1H 2023 D&A 1H 2023 RCOP EBIT EBITDA (ex TRPP) AUD on LRM EBITDA RCOP EBIT
Slide 37: Convenience Retail – Financial highlights
37 Convenience Retail – Financial highlights 1H 20237 1H 20227 Change (%) Notes Period end COCO sites (#)1 639 660 (3.2%) Period end CORO sites (#) 4 8 (50%) 1. Includes 32 unmanned diesel stops down from 37 in 1H 2022 Total sales volumes (BL) 1.91 1.89 1.1% 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 2023 1H 20221 Retail sales volume (ML)2 734 230 Notes Commercial sales volume (ML) 1,159 329 1. 1H 2022 result represents the Ampol period of ownership from Supply terminal and export sales (ML) 305 44 May 2022 Total sales volumes (ML) 2,198 6
Slide 39: Our assets – Retail infrastructure
39 Our assets – Retail infrastructure Ampol Australian retail network Ampol Australian retail network Leased- Dealer Dealer Site rationalisation continues with site count down from 1,824 at 31 Owned Leased Total2 APT1 Agency owned December 2022 to 1,816 at 30 June 2023; 4 franchise sites remain to
Slide 40: Disciplined capital allocation
40 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 41: Capital Expenditure and Depreciation & Amortisation
41 Capital Expenditure and Depreciation & Amortisation Capital Expenditure1 RCOP Depreciation & Amortisation 1H 2023 1H 2022 1H 2023 1H 2022 ($M) ($M) ($M) ($M) Lytton 54.7 18.6 Convenience Retail 88.5 83.2 Fuels & Infrastructure (Ex-Lytton)2 21.5 16.3 Fuels & Infrastructure2 76.0 77.9 Future Energy
Slide 42: Strong funding and liquidity platform
42 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 flexibility 500 ꟷ $5.0 billion of committed debt facilities ꟷ
Slide 43: Significant Items
43 Significant Items 1H 2023 1H 2022 Notes ($M) ($M) Ampol rebranding expense1 - (21.8) 1. In 1H 2022, the Group had recognised an expense of $21.8 million relating to the rebranding program to remove Caltex signage and install Ampol branding at the Transaction Costs2 - (37.3) Group’s Australian sit
Slide 44: Transition strategy is mobility focused and customer led
44 Transition strategy is mobility focused and customer led Significant progress in deepening knowledge around key thematics. Focused on commercialising EV charging network with appropriately paced investment. Rationale Development phase Next steps Roll out of on-the-go EV charging networks in Austr
Slide 45: Glossary
45 Glossary $ - Australian Dollar k – Thousand 1H – The period from 1 January to 30 June in any year kWh – Kilowatt hour 2H – The period from 1 July to 31 December in any year LFL – Like for like ARENA – Australian Renewable Energy Agency LRM – Lytton refiner margin bbl – Barrel (equivalent of appro
Slide 46: Important Notice
46 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 2023; and • a high level overview of aspects of the operations of the Ampol Limited Group
Slide 47: Thank you
VA AMPOL Thank you