Ampol Limited · ASX:ALD
Ampol — FY2022 Earnings Presentation
43 slides from Ampol's earnings presentation, Feb 20, 2023
Slide 1: 2022 Full Year Results Presentation
AMPOL LIMITED ACN 004 201 307 29-33 BOURKE ROAD ALEXANDRIA NSW 2015 ASX/NZX Release 2022 Full Year Results Presentation Monday 20 February 2023 (Sydney): Ampol Limited provides the attached 2022 Full Year Results Presentation for the full year ended 31 December 2022. Authorised for release by: the B
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 2019 2020 2021 2022 2019 2020 2021 2022 Days Away from Work Injury Frequency Rate Days Away from Work Injury Frequency Rate Day
Slide 4: 2022 highlights – Record Group performance
4 2022 highlights – Record Group performance Group RCOP EBITDA of $1,764 million, RCOP EBIT2 of $1,317 million, Record full year financial Statutory NPAT3 of $796 million performance1 Record fuel sales volumes of 24.3 billion litres Deleveraging post acquisition Leverage at 1.7 times (LTM4 bas
Slide 5: 2022 key Group metrics
5 2022 key Group metrics1 Benefits of integrated supply chain delivers record financial performance during year of heightened volatility and disruption Profit metrics Balance Sheet metrics Sales volume Capital management $1,764 m $2,359 m 24.33 BL 105 cps Group RCOP EBITDA up 84% Net borrowings2 Tot
Slide 6: We have delivered on our 2022 strategic priorities
6 We have delivered on our 2022 strategic priorities Strategic pillar Key priority Achievements to date Complete network rebrand • Completed rebrand of the network (including EG network) to the iconic Australian ENHANCE and evolve the Ampol brand brand Ampol to over 1,800 sites the core business int
Slide 7: Group financial result
7 Group financial result Greg Barnes CFO
Slide 8: Growth in fuel sales to end customers
8 Growth in fuel sales to end customers Ampol’s total fuel sales grew by 10% on the addition of Z Energy and recovery in jet sales Ampol Sales Volumes (BL) Australian wholesale volume 24.33 Ampol’s Australian wholesale volumes up1 ~12% primarily due to growth in jet sales 21.08 22.04 2.76 20.09
Slide 9: 2022 Group financial performance
9 2022 Group financial performance The integrated supply chain allowed Ampol to benefit from the elevated volatility through the year to deliver record Group earnings 2022 2021 % Δ 2021 2022 2021 % Δ 2021 Continuing1,2 Continuing1,2,3 Continuing1,2 Group ($M) Group1 ,3($M) Group1($M) ($M) ($M) ($M)
Slide 10: 2022 GROUP RCOP EBIT result
10 2022 GROUP RCOP EBIT result Unprecedented refiner margins and strong 2H 2022 performance from Convenience Retail and Z Energy led to record earnings 2022 v 2021 Group RCOP EBIT ($M) (24) (15) 1,764 (27) 215 92 (448) 39 1,317 526 959 372 587 2021 RCOP 2021 D&A 2021 RCOP Lytton RCOP F&I (Ex- Conven
Slide 11: Fuels & Infrastructure result
11 Fuels & Infrastructure result Record result reflects benefits of integrated supply chain with refining margins and trading and shipping performances more than offsetting fixed price contract challenges in B2B diesel sales and aviation 2022 v 2021 F&I RCOP EBIT ($M) (27) 1,100 39 (169) (31) 900 52
Slide 12: F&I (Ex Lytton and Future Energy) continuing operations
12 F&I (Ex Lytton and Future Energy) continuing operations F&I (Ex Lytton and Future Energy)1 RCOP EBIT ($M) Continuing operations F&I (Ex Lytton and Future Energy) RCOP EBIT from continuing operations grew 28% compared with 2021 as it captured the opportunities presented by the prevailing market
Slide 13: Retail key metrics
13 Retail key metrics Non-fuel RCOP EBIT uplift target achieved 2 years ahead of schedule as the shop strategy delivered improved performance Network shop sales growth Network KPIs Retail RCOP EBIT up1 37% Rationalisation of retail network and focus on store 645 performance continued to deliver
Slide 14: Convenience Retail result
14 Convenience Retail result 37% growth in RCOP EBIT reflects continued in store performance improvement, network optimisation and strong second half fuel margins 2022 v 2021 Convenience Retail RCOP EBIT ($M) 522 4 16 28 430 55 (10) (175) 347 176 254 2021 CR 2021 D&A 2021 CR Fuel volume Fuel margin
Slide 15: Z Energy
15 Z Energy Acquisition completed on 10 May 2022 with contribution to Group earnings reflected from that month Total fuel sales of 2,763 million litres is up2 approximately 19% for the same period last year as transport fuels demand commenced recovery from COVID lows With the closure of the on
Slide 16: Balance sheet and cash flow
16 Balance sheet and cash flow Debt funded Z Energy acquisition, higher AUD fuel costs, increasing debtors and record dividend distribution 2022 v 2021 Net borrowings ($M) 471 Includes $94m for Z Energy Includes prior year tax $432m of liability acquired net (384) borrowings (2,217) 1,154 (407) 55 (
Slide 17: Getting the balance right – disciplined capital allocation
17 Getting the balance right – disciplined capital allocation Capital management since 2015 (A$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: Our unique competitive strengths
19 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 Significant B2B and B2C B
Slide 20: Energy transition strategy is mobility focused
20 Energy transition strategy is mobility focused Significant progress in deepening knowledge around key thematics. Focused on identifying viable commercial opportunities to appropriately pace investment Rationale Development phase Next steps Continue roll out of AmpCharge branded EV fast Completed
Slide 21: 2023 key priorities
21 2023 key priorities We are clear on our key priorities for 2023 Final investment decision on Lytton Ultra Low Sulphur Fuels Project expected once Australian fuel standard changes are resolved ENHANCE Leverage rebrand to continue growth in retail channels the core business Continue to derisk fixed
Slide 22: Current trading and outlook
22 Current trading and outlook Matt Halliday Managing Director & CEO
Slide 23: Current trading conditions and outlook
23 Current trading conditions and outlook Strong start to the year. Ampol is well positioned to manage the ongoing volatility in global energy markets Lytton refinery Macro Outlook Realised Lytton refiner margin in January was US$18.40/bbl, remaining above Uncertainty regarding Russian sanctions
Slide 24: Q&A
a P j Q&A
Slide 25: Appendix
Appendix 25 Our integrated platform creates opportunities 26 Reconciliation of restatements and continuing operations 27 Significant items 28 Product sales volumes 29 Fuels & Infrastructure – Financial highlights 30 Singapore Weighted Average Margins 31 Lytton refinery key metrics 32 Lytton Refinery
Slide 26: Our integrated platform creates opportunities
26 Our integrated platform creates opportunities The integrated value chain of the traditional fuels business provided the opportunity to benefit from significant volatility experienced in 2022 and provides a pathway to pursue mobility energy B2B Integration benefits Reporting segments Earnings ar
Slide 27: Reconciliation of restatements and continuing operations
27 Reconciliation of restatements and continuing operations 2022 2021 Previous RCOP Methodology Financial results1 2022 2022 2022 Restated 2021 2021 Less externalities Reported Continuing Discontinued 2021 Continuing Discontinued Group ($M) FX ($M) 2021 ($M) ($M) ($M) Group ($M) ($M) ($M) Group RCOP
Slide 28: Significant items
28 Significant items Full Year Ending December 2022 2021 Notes 1. $49.9 million expense relating to the rebranding of Ampol sites. (2021: $51.3 million) ($M) ($M) 2. A provision of $46.0 million was recognised in June 2020 relating to the rebrand of EG sites. At Ampol rebranding expense1 (49.9) (51.
Slide 29: Product sales volumes
29 Product sales volumes F&I (Australia) Volumes F&I (International) Volumes CR Fuels Volumes Z Energy Fuels Volumes1 BL BL BL BL 18.00 10.00 5.00 4.76 16.29 3.00 8.99 0.08 2.76 4.10 0.11 15.00 2.68 14.05 3.90 8.00 4.00 0.06 3.84 2.50 13.58 0.08 7.52 1.44 0.05 0.38 13.05 2.50 0.05 0.01 1.19 0.08 1.8
Slide 30: Fuels & Infrastructure – Financial highlights
30 Fuels & Infrastructure – Financial highlights 20226 20216 Change (%) Notes Australian Sales Volumes (BL) 14.05 13.05 7.6% International Sales Volumes (BL) (excluding Z Energy) 7.52 8.99 (16%) 1. F&I Australia includes all earnings and costs associated (directly or Lytton Total Production (BL) 6.1
Slide 31: Singapore Weighted Average Margins
31 Singapore Weighted Average Margins Product cracks reached unprecedented levels as post-COVID demand recovery coincided with supply shocks and low northern hemisphere inventory levels. Gasoline cracks recovered towards the end of the year Singapore Weighted Average Margin (US$/bbl) MOPS Product Pr
Slide 32: Lytton refinery key metrics
32 Lytton refinery key metrics Lytton Refiner Margin1 Operational performance LRM (US$/bbl and Acpl) BL High Value Production Volumes, Production Utilisation (%) 29.0 3.50 84 87 86 86 % 79 78 3.00 80 2.50 55 14.2 60 32.96 11.3 2.00 43 9.7 9.2 4.4 4.5 5.1 5.8 1.50 2.82 2.88 3.01 2.89 3.01 40 15.46 2.
Slide 33: Lytton Refinery result
33 Lytton Refinery result Unprecedented strength in Singapore product cracks delivered record LRM in the second quarter, lifting Lytton’s earnings 2022 v 2021 Lytton RCOP EBIT ($M) (27) 750 75 (64) 687 521 184 159 (3) (40) 66 2021 Lytton TRPP 2021 D&A 2021 Lytton Volume USD LRM Impact of Opex & othe
Slide 34: Convenience Retail – Financial highlights
34 Convenience Retail – Financial highlights 20227 20217 Change (%) Notes Period end COCO sites (#)1 640 676 (5.3%) Period end CORO (franchise) sites (#) 5 8 (38%) 1. Includes 35 unmanned diesel stops down from 38 in 2021 Total sales volumes (BL) 3.84 3.90 (1.6%) 2. Excludes GST and excise (as appli
Slide 35: Z Energy – Financial highlights
35 Z Energy – Financial highlights 20221 Retail sales volume (ML)2 963.0 Notes Commercial sales volume (ML) 1,444.0 1. 2022 result represents the Ampol period of ownership from May Supply terminal and export sales (ML) 356.0 2022 Total sales volumes (ML) 2,763.0 2. Retail sales volume includes sales
Slide 36: Our assets – Retail infrastructure
36 Our assets – Retail infrastructure Ampol Australian retail network Ampol Australian retail network Leased- Dealer Dealer Site rationalisation continues with site count down from 1,881 at 31 Owned Leased Total2 APT1 Agency owned December 2021 to 1,824 at 31 December 2022; 5 franchise sites remai
Slide 37: Capital Expenditure and Depreciation & Amortisation
37 Capital Expenditure and Depreciation & Amortisation Capital Expenditure1 RCOP Depreciation & Amortisation 2022 ($M) 2021 ($M) 2022 ($M) 2021 ($M) Lytton 93.3 52.1 Convenience Retail 174.8 176.3 Fuels & Infrastructure (Ex Lytton)2 59.3 46.1 Fuels & Infrastructure2 157.3 163.7 Future Energy 15.6 3.
Slide 38: Capital Allocation Framework
38 Capital Allocation Framework 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 Investors Service Stay-in
Slide 39: Strong funding and liquidity platform
39 Strong funding and liquidity platform Underpinned by a strong investment grade credit rating of Baa1 from Moody’s Investors Service Committed debt maturity profile (A$m) Prudent debt maturity profile to manage refinancing risk and maintain financial (as at 31 December 2022) flexibility ꟷ $5.1 b
Slide 40: EV fast charging public network rollout has commenced
40 EV fast charging public network rollout has commenced Ampol is moving with purpose to build a strong public charging network across Australia to meet customer charging needs 12 AmpCharge bays delivered in Australia in 2022, across 5 sites and 4 states 150kW DC fast charging capability ~114,000 kW
Slide 41: Glossary
41 Glossary A$, $ - Australian Dollar k – Thousand ARENA – Australian Renewable Energy Agency kb/d – Thousand barrels per day bbl – Barrel (equivalent of approximately 159 litres) kWh – kilowatt hour BL – Billion litres m – Million B2B – Business to business mb/d – Million barrels per day CEO – Chie
Slide 42: Important Notice
42 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 twelve-month period ended 31 December 2022; and • a high level overview of aspects of the operations of the Ampol Limite
Slide 43: Thank you
VA AMPOL Thank you