Paz Retail And Energy Ltd · TASE:PAZ
Paz Retail And Energy — Paz Group — Q2 2022 Earnings Presentation
37 slides from Paz Retail And Energy's earnings presentation, Dec 5, 2022
Slide 1: Paz Group Investors Presentation Q2 2022
Paz Group Investors Presentation Q2 2022
Slide 2: Disclaimer
DISCLAIMER This English version of the investors presentation has been prepared solely for the convenience of the reader. The Hebrew version of the investors presentation is the binding version This presentation has been prepared by Paz Oil Company Ltd. ("the Company" or "Paz"). It is designed to se
Slide 3: Key Highlights for the Quarter
Key Highlights for the Quarter • Record quarter with EBITDA of NIS 436 million and net income of NIS 130 million • At the beginning of June, the periodic renovation began at the refinery. The renovation took about 45 days, in accordance with the plan • Before the renovation commenced, the refinery b
Slide 4: Main Results
Main Results Revenues EBITDA Net Income Adjusted Net Income )NIS billion( )NIS million( )NIS million( )NIS million( +90% +133% 139 5.3 436 130 2.8 186 -32 -35 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 4
Slide 5: Energy for Transportation
Energy for Transportation Fuels in filling stations, wholesale of fuels, Aviation Services, Aviation Assets, Paz Lubricants and EV Charging
Slide 6: Energy for Transportation: Fuel sales continue to grow
Energy for Transportation Fuel sales continue to grow Gross Profit Total Fuel Sales* (NIS million) (million liters) +10% 258 +16% 785 236 677 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Fuels in filling stations, wholesale of fuels, Aviation Services, Aviation Assets, Paz Lubricants and EV Charging * Not includ
Slide 7: EV Charging
EV Charging Deploying the most innovative electric charging network in Israel • Establishment of a fast and accessible electric charging grid • Some 20 ultra-fast EV charging posts have been installed at Paz stations • Paz offers EV charging solutions at stations, homes and offices • The most innova
Slide 8: Energy for Transportation - segment results
Energy for Transportation - segment results Continued growth in the profitability of the energy for transportation segment EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 108 105 +3% 70 68 -3% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Increase in rent expense paid to the real estate segment (c
Slide 9: Food Retail
Food Retail Yellow convenience stores and Freshmarket’s and Super Yuda’s neighborhood supermarkets
Slide 10: Food Retail: key growth engine of the group
Food Retail The food retail sector is positioned as one of the group’ key growth engines • A growing division that maintains high gross margins relative to the industry • 300+nationwide convenience stores and supermarkets of various brands with total area of c.56 thousand sqm • Paz’s food retail bus
Slide 11: Food Retail growing faster than the market
Food Retail Paz’s food retail business is growing at a faster pace than the market FMCG Market Growth April-June 7.9% 6.0% +1.9% Total FMCG Market Total Paz's Food Retail Yellow convenience stores and Freshmarket’s and Super Yuda’s neighborhood supermarkets *FMCG market without cigarettes, Storenext
Slide 12: Food Retail: leading player in the market
Food Retail Becoming one of the leading players in the food retail market Sales Turnover* Monthly Sales per sqm** (NIS million) (NIS thousand) 728 6.4 +170% 4.6 270 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Decline in sales per sqm is due to change in stores mix (Freshmarket was not included in the same quart
Slide 13: Food Retail: Gross margins among the highest in industry
Food Retail Gross margins are among the highest in the industry Gross Profit* Gross Margin** (NIS million) 37.3% 36.7% 245 +206% 80 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Decline in gross margin is due to change in stores mix (Freshmarket was not included in the same quarter last year) * In accordance with
Slide 14: Nationwide retail presence, strength in high demand areas
Food Retail Nationwide retail presence, strength in high demand areas • Accelerated new openings of local supermarkets in city centers and neighborhoods • Expansion of the Super Yuda brand outside the borders of Tel Aviv: in the past years Super Yuda branches were opened in Herzliya, Ra’anana, Ramat
Slide 15: Food Retail - segment results
Food Retail - segment results The segment’s EBITDA surpassed the NIS 100 million mark in the current quarter EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 102 75 +168% +168% 38 28 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Yellow convenience stores and Freshmarket’s and Super Yuda’s neighborh
Slide 16: Gas and Renewables
Gas and Renewables Om Pazgas
Slide 17: Gas and Renewables: High sales, sharp increase in LPG cost
Gas and Renewables High sales alongside a sharp increase in LPG cost LPG Cost at Refinery* Sales (NIS thousand per ton) (NIS million) 272 +60% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 170 Q2 2021 Q2 2022 -1.3 -1.4 -1.5 -1.7 -2.0 -2.0 -2.0 Gross Profit -
Slide 18: Gas and Renewables - segment results
Gas and Renewables - segment results EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 29 27 -45% -44% 16 15 Q2 2021 Q2 2022 Q2 2021 Q2 2022 The decline in EBITDA is mainly due to continuing rise in LPG cost in the current quarter as well as increase in operating costs 18
Slide 19: Real Estate
Real Estate
Slide 20: Investment Property
Investment Property High-end real estate complexes with leading tenants income-producing properties 88 Leased to third parties, mostly owned and the rest Total NOI from Third Parties leased and subleased* (NIS million) 14 25 plots and other properties** 12 28Ksqm built and leasable area*** Addition
Slide 21: Properties for Own Use as Service Stations
Properties for Own Use as Service Stations Largest number of owned service stations in Israel Total NOI from properties for own use as service stations** 104 owned properties* For own use as service stations (NIS million) 32 28 NIS 1.8B fair value* NIS 1.1B book value* Q2 2021 Q2 2022 NIS 0.7B exces
Slide 22: Real Estate - segment results
Real Estate - segment results Increase in revenues from third parties and other segments in the group EBITDA Adjusted EBITDA exc. (NIS million) IFRS 16 (NIS million) 44 41 38 +16% 32 +28% Q2 2021 Q2 2022 Q2 2021 Q2 2022 22
Slide 23: Refining
Refining
Slide 24: Refining - Outputs and Product Mix
Refining - Outputs and Product Mix Refinery’s Output Refinery’s Production Mix (thousand tons) (Q2 2022) Other, 5% 910 Fuel oil, 14% 762 Gasoline and -16% Naphtha, 38% Jet fuel, 13% Q2 2021 Q2 2022 Diesel fuel, 30% • During the second quarter the refinery operated for about two months, as the refine
Slide 25: Refining - Product Margins ($ per barrel)
Refining - Product Margins ($ per barrel) Mediterranean Basin product margin in determining dates* Gasoline Jet Fuel Diesel Fuel 51.6 60.7 68.7 51.1 39.9 47.0 49.2 40.5 41.7 42.7 37.8 40.2 24.8 19.9 14.2 15.1 16.3 15.2 15.9 10.5 7.0 8.3 8.6 8.6 3.8 6.2 2.3 Daily average - past years Monthly determin
Slide 26: Refining - Paz Ashdod Weighted Margin
Refining - Paz Ashdod Weighted Margin • Extraordinary refining margins environment ◼ Refining during the quarter has ◼ Electricity and Distribution 14.4 led to the sharp increase 1.7 in the segment’s profit, despite the renovation • As of June 2022, the 8.6 methodology of the 8.1 7.4 IEA/KBC margin
Slide 27: Refining - Hedging of the Refining Margin
Refining - Hedging of the Refining Margin August-December 2022 • During the second quarter, the refinery ~20-25% entered into transactions to hedge the refining Hedged at margins c.$20 • c. 380 thousand tons were hedged for the period between August-December 2022 (c.20- 25% of the expected productio
Slide 28: Refining - segment results
Refining - segment results Record results for the refinery despite the renovation Reported EBITDA Adjusted EBITDA (NIS million) (NIS million) 172 161 -27 -30 Q2 2021 Q2 2022 Q2 2021 Q2 2022 28
Slide 29: Other: Pazkar's Operation
Other Pazkar’s Operation
Slide 30: Other (Pazkar)
Other (Pazkar) Sales Adjusted EBITDA exc. IFRS 16 (NIS million) (NIS million) 121 5 +75% 4 +25% 69 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Mainly due to an increase in raw material costs and an increase in quantitative sales 30
Slide 31: Financial Results and Summary
Financial Results and Summary
Slide 32: Q2 Main Results
Q2 Main Results NIS, million EBITDA Operating profit Net finance expense* Shareholders net Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 income 278 Q2 2021 Q2 2022 436 447 267 139 130 186 183 39 36 -70 -32 -35 -94 Reported Adjusted Reported Adjusted Reported Adjusted * The increase in finance expe
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights NIS, million 30.6.2022 31.3.2022 Cash and cash equivalents 1,459 1,359 Trade receivables 2,508 2,178 Inventories 1,447 1,590 Property, plant and equipment 4,953 4,845 Investment property 548 548 Right-of-use asset 1,751 1,760 Other assets 2,986 2,924 Total assets 15,652 15,2
Slide 34: Reported EBITDA by Segments
Reported EBITDA by Segments NIS, million Q2 2022 Q2 2021 Energy for Transportation 108 105 Food Retail 102 38 Real Estate 44 38 Gas and Renewables 16 29 Other 5 3 Total - without refining 275 213 Refining 161 (27) Total 436 186 34
Slide 35: Adjusted EBITDA without the effect of IFRS 16
Adjusted EBITDA without the effect of IFRS 16 NIS, million Q2 2022 Q2 2021 Energy for Transportation 68 70 Food Retail 75 28 Real Estate 41 32 Gas and Renewables 15 27 Other 5 4 Total - without refining 204 161 Refining 165 )36( Total 370 125 Net debt *4,169 *2,629 * Loans and bonds less cash and ca
Slide 36: Cash Flows
Cash Flows NIS, million Q2 2022 Q2 2021 CFO in the quarter 452 327 Less: changes in working capital, net* )64( )150( Less: effect of IFRS 16 )77( )60( Adjusted CFO 311 117 Less: capital expenditure and others** )206( )63( Adjusted FCF 105 54 Add: changes in working capital, net 64 150 FCF 169 204 *
Slide 37: Thank You
Thank You Paz Group PAZ