22 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Feb 12, 2020
Slide 1: Q4 and FY 2019 Results Presentation
ADNOC Classification: Public Q4 AND FY 2019 RESULTS PRESENTATION 12 February 2020 INVESTOR AND ANALYST CONFERENCE CALL ADNOC Distribution
Slide 2: Agenda
ADNOC Classification: Public AGENDA 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q4 & FY 2019 RESULTS 04 OUTLOOK 2 ADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS
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
01 EXECUTIVE SUMMARY SPEAKER: AHMED AL SHAMSI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 5: Highlights
ADNOC Classification: Public HIGHLIGHTS Resilient Q4 and Full Year 2019 performance in both Fuel and Non-Fuel Businesses Operational and financial Strategic update 2020 Outlook performance Prioritization of safety remains Fuel Stations and Convenience Focus on superior customer core to our business
Slide 6: Strategy Update
02 STRATEGY UPDATE SPEAKER: MOHAMED AL HASHEMI CHIEF OPERATING OFFICER ADNOC Distribution
Slide 7: Key Strategic Update: Fuel Business
ADNOC Classification: Public KEY STRATEGIC UPDATE Fuel Business 2019 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED Last Exit Fuel Station in Dubai • Total fuel volumes up 2.9% YoY in 2H 2019 • Low single digit fuel volume growth in 2H and 0.7% in 2019 2019 Rebound in 2H19 retail fuel volumes (+1.2% Y
Slide 8: Key Strategic Update: Non-Fuel Business
ADNOC Classification: Public KEY STRATEGIC UPDATE Non-Fuel business 2019 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED New ADNOC Oasis C-store at Corniche • 14 new convenience stores in 2019 • Convenience store network to expand at a faster pace than retail fuel sites • Unveiled next generation ‘ADNOC
Slide 9: Key Strategic Update: OPEX and CAPEX
ADNOC Classification: Public KEY STRATEGIC UPDATE OPEX and CAPEX 2019 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED New Stations Under Construction • USD50m of OPEX savings in 2019 on a • Achieved USD46m OPEX savings on like- like-for-like basis for-like basis in 2019 • Over 2018-19, USD100m OPEX savin
Slide 10: Q4 & FY 2019 Results
03 Q4 & FY 2019 RESULTS SPEAKER: PETRI PENTTI CHIEF FINANCIAL OFFICER ADNOC Distribution
Slide 11: Q4 & FY 2019 Financial Performance
ADNOC Classification: Public Q4 & FY 2019 FINANCIAL PERFORMANCE Solid underlying financial results… USDm Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%) Revenue 1,477 1,626 -9.1% 5,809 6,233 -6.8% Gross Profit 342 322 6.0% 1,355 1,380 -1.8% Margin 23.1% 19.8% 23.3% 22.1% Key Financial EBITDA 179 168 6.5%
Slide 12: Q4 & FY 2019 Operating Performance
ADNOC Classification: Public Q4 & FY 2019 OPERATING PERFORMANCE mL Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%) Retail 1,705 1,685 1.2% 6,525 6,600 -1.1% Fuel Volumes Corporate 585 548 6.7% 2,373 2,239 6.0% Aviation 190 199 -4.3% 777 748 3.8% TOTAL 2,481 2,432 2.0% 9,674 9,611 0.7% Q4 2019 Q4 2018 YoY
Slide 13: Gross Profit by Segment
ADNOC Classification: Public GROSS PROFIT BY SEGMENT USDm Q4 2019 Q4 2018 YoY (%) FY 2019 FY 2018 YoY (%) Fuel and Non-Fuel Retail 223 209 7.0% 861 900 -4.4% Of which Fuel 201 189 6.7% 773 821 -5.9% Of which Non-Fuel 22 20 10.4% 89 79 11.8% Margin 22.1% 18.7% 22.1% 21.1% Corporate 55 48 12.6% 237 21
Slide 14: EBITDA by Segment
ADNOC Classification: Public EBITDA BY SEGMENT USDm Q4 2019 Q4 2018 YoY (%) FY 2019 FY 2018 YoY (%) Fuel and Non-Fuel Retail 110 84 31.0% 462 446 3.4% Margin 10.9% 7.6% 11.9% 10.4% Corporate 43 51 -15.6% 195 177 10.2% Margin 13.9% 15.4% 15.1% 13.7% Aviation 25 23 9.7% 100 93 7.7% Margin 18.2% 14.0%
Slide 15: Robust Cash Position & Low Net Debt to EBITDA Ratio
ADNOC Classification: Public ROBUST CASH POSITION & LOW NET DEBT TO EBITDA RATIO USD 475m of net cash generated Net debt / from operating activities EBITDA 0.00x 0.26x (272) 747 (126) 33 (55) 1,490 (525) 1,292 Cash at Cash flow from Working capital Capex Paid Interest Finance Cost Dividend Paid Cash
Slide 16: Outlook
ADNOC Classification: Public 04 OUTLOOK SPEAKER: AHMED AL SHAMSI ACTING CHIEF EXECUTIVE OFFICER ADNOC Distribution
Slide 17: 2020 Outlook
ADNOC Classification: Public 2020 OUTLOOK • Deliver accelerated domestic network expansion • Targeting to open at least 60 new stations in UAE, which includes mix of traditional and ‘ADNOC On the go’ stations • To open 20-25 new stations in Dubai, most of which would be traditional stations Fuel • L
Slide 18: Q&A
Q&A Ahmed Al Shamsi Mohamed Al Hashemi Petri Pentti Athmane Benzerroug Acting Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Investor Relations Officer ADNOC Distribution
Slide 19: Thank You
ADNOC DISTRIBUTION Q4 AND FY 2019 RESULTS PRESENTATION INVESTOR AND ANALYST CONFERENCE CALL 12 FEBRUARY 2020 IR@ADNOCDISTRIBUTION.AE THANK YOU ADNOC Distribution
Slide 20: Appendix
ADNOC Classification: Public 05 APPENDIX ADNOC Distribution
Slide 21: Distribution Business Overview
ADNOC Classification: Public ADNOC DISTRIBUTION BUSINESS OVERVIEW Retail Commercial Non-Fuel Retail Fuel Retail Corporate Aviation Convenience Stores Allied Services 2019A Gross Profit Split 2019A Fuel Volume Split Other(1) Other(1) 2019A EBITDA Split 2% Corporate 5% 25% Corporate 17% 25% Corporate
Slide 22: ADNOC Distribution in Numbers - 2019
ADNOC Classification: Public ADNOC DISTRIBUTION IN NUMBERS - 2019 0.10 9.7 billion liters 382 2 Total Reportable Total Fuel Volume Retail Fuel sites Retail Fuel sites Injury Rate* in the UAE in Saudi Arabia 264 159 million 47 million Convenience Fuel Non-Fuel Stores in the UAE Transactions Transacti