24 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Aug 4, 2023
Slide 1: H1 2023 Results Presentation
ADNOC Classification: Public H1 2023 RESULTS PRESENTATION INVESTOR & ANALYST CONFERENCE CALL 4 August 2023 ADNOC DISTRIBUTION
Slide 2: Agenda
ADNOC Classification: Public AGENDA 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 H1 2023 RESULTS 04 CLOSING REMARKS 2 © ADNOC Distribution
Slide 3: Disclaimer
ADNOC Classification: Public 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 fut
Slide 4: Executive Summary
ADNOC Classification: Public 01 EXECUTIVE SUMMARY SPEAKER: ATHMANE BENZERROUG CHIEF STRATEGY, SUSTAINABILITY & TRANSFORMATION OFFICER ADNOC DISTRIBUTION
Slide 5: ADNOC Distribution Unique Value Proposition
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix ADNOC DISTRIBUTION UNIQUE VALUE PROPOSITION FOCUS ON DELIVERING ATTRACTIVE AND VISIBLE CASHFLOW VISIBILITY & SMART GROWTH RETURNS FOR STRONG BALANCE SHEET SHAREHOLDERS Largest UAE fuel &
Slide 6: Future Proofing Our Business
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix FUTURE PROOFING OUR BUSINESS Growing while transforming with a focus on sustainability Decarbonization roadmap and Sustainability Pursuing leadership in mobility retail and Linked Loan u
Slide 7: H1 23 Key Achievements & Outlook
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix H1 23 KEY ACHIEVEMENTS & OUTLOOK Year-on-year growth in volumes and underlying earnings, coupled with robust cash generation Positive underlying financial Outlook: Focus on accelerating
Slide 8: Growth Strategy Update
ADNOC Classification: Public 02 GROWTH STRATEGY UPDATE SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 9: Embarking on our transformation plans
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix Embarking on our transformation plans - focus on innovation and upgrading the customer experience Enhance C-store experience Improving product mix (focus on F&B) and Invest in new mobili
Slide 10: Customer proposition
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix Customer proposition Enhancing customer experience and loyalty through innovation and personalized rewarding experience Industry Leading Innovations Hyper Personalized Rewarding Experien
Slide 11: Key Strategic Update: Fuel business
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix KEY STRATEGIC UPDATE Fuel business Highest half-year fuel volumes sold ever in the UAE and KSA after a 9% growth year-on-year (5.3bn liters sold) ✓ Retail fuel volumes up 8.3% Y-o-Y in H
Slide 12: Key Strategic Update: Non-fuel retail business
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix KEY STRATEGIC UPDATE Non-fuel retail business NFR segment accelerates growth in H1 23 ✓ Gross profit up 12% Y-o-Y, after 6.2% growth in 2022 ✓ UAE non-fuel transactions up 14% Y-o-Y, aft
Slide 13: H1 2023 Results
ADNOC Classification: Public 03 H1 2023 RESULTS SPEAKER: WAYNE BEIFUS CHIEF FINANCIAL OFFICER ADNOC DISTRIBUTION
Slide 14: Operating Performance
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix OPERATING PERFORMANCE Strong performance driven by volume growth million liters Q2 2023 Q2 2022 YoY (%) H1 2023 H1 2022 YoY (%) H1 2023 Retail (B2C) 1,781 1,601 11.3% 3,528 3,257 8.3% 5.
Slide 15: Financial Performance
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix FINANCIAL PERFORMANCE Positive underlying financial performance H1 2023 $m Q2 2023 Q2 2022 YoY (%) H1 2023 H1 2022 YoY (%) Revenue 2,214 2,352 -5.9% 4,392 4,186 4.9% $443million Gross pr
Slide 16: Gross Profit by Segment
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix GROSS PROFIT BY SEGMENT $m Q2 2023 Q2 2022 YoY (%) H1 2023 H1 2022 YoY (%) Retail (B2C) 293 340 -13.8% 559 623 -10.3% of which fuel 244 298 -18.0% 463 538 -13.8% of which non-fuel1 49 42
Slide 17: OPEX Update
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix OPEX UPDATE Committed to operational excellence Others1 13% Utilities Distribution 8% & marketing 1% H1 2023 cash OPEX split ($291m) 9% Repairs, Staff costs maintenance & 68% consumables
Slide 18: EBITDA by Segment
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix EBITDA BY SEGMENT $m Q2 2023 Q2 2022 YoY (%) H1 2023 H1 2022 YoY (%) Retail (B2C) 165 211 -21.9% 314 374 -16.2% Retail margin, % 10.7% 13.6% 10.6% 13.3% Commercial (B2B) 68 91 -25.8% 128
Slide 19: Net debt / EBITDA 1.13x
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix Net debt / Free cash flow: $333 million 1.13x 0.78x EBITDA -5 -110 -149 448 9 -68 -350 748 522 Cash at Dec Cash flow from Working capital CAPEX paid Acquisition cost Interest received Fi
Slide 20: Closing Remarks
ADNOC Classification: Public 04 CLOSING REMARKS SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 21: Closing Remarks
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix CLOSING REMARKS Key priorities: Accelerate sustainable growth and deliver incremental shareholder value Execute on our Deliver sustainable Attractive shareholder growth commitments growt
Slide 22: Q&A
ADNOC Classification: Public Q&A Bader Saeed Al Lamki Wayne Beifus Athmane Benzerroug Chief Executive Officer Chief Financial Officer Chief Strategy, Sustainability & Transformation Officer © ADNOC Distribution
Slide 23: Thank You
ADNOC DISTRIBUTION H1 2023 RESULTS PRESENTATION IR@ADNOCDISTRIBUTION.AE THANK YOU ADNOC DISTRIBUTION
Slide 24: Offering Attractive and Visible Shareholder Returns
ADNOC Classification: Public Executive Summary Strategy Update H1 2023 Financial Results Closing Remarks Appendix OFFERING ATTRACTIVE AND VISIBLE SHAREHOLDER RETURNS Min. Min. 75% (2) $700m $700m $700m $700m(2) payout H2 2022 dividend of $350 million paid in April $650m 2023 Attractive dividend poli