28 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Aug 8, 2024
Slide 1: Q2 / H1 2024 Results Presentation
ADNOC Classification: Public Q2 / H1 2024 RESULTS PRESENTATION INVESTOR & ANALYST CONFERENCE CALL 8 August 2024 ADNOC DISTRIBUTION
Slide 2: Agenda
ADNOC Classification: Public Agenda 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q2 / H1 2024 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, TRANSFORMATION & SUSTAINABILITY OFFICER ADNOC DISTRIBUTION
Slide 5: Focus on sustainable growth and transforming our service stations into destinations of choice
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Focus on sustainable growth and transforming our service stations into destinations of choice ADNOC Distribution equity story Track record of shareholder Solid performance and Focus
Slide 6: Q2 / H1 2024 key achievements & 2024 outlook
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Q2 / H1 2024 key achievements & 2024 outlook Strong quarter driven by double-digit growth in non-fuel retail and volumes and higher Rewards customers Double-digit growth in key Q2’2
Slide 7: AI & Digital Strategy
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix AI & Digital Strategy Delivery of use cases provides support to new growth strategy execution Operations Convenience stores Customers Fuel Demand prediction Intelligent assortment P
Slide 8: Sustainability is at the core of our day-to-day operations
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Sustainability is at the core of our day-to-day operations Explore our 2023 Key strategic initiatives 2023 achievement ESG Report Energy optimization Reduce energy use across our as
Slide 9: Growth Strategy Update
ADNOC Classification: Public 02 GROWTH STRATEGY UPDATE SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 10: Committed to 100% HSE
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Committed to 100% HSE H1 2024 HSE performance ADNOC Distribution is committed to maintaining the highest standards of safety in delivering its product and services 0.095 mmhrs TRIR(
Slide 11: Key strategic update: Fuel business
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Key strategic update Fuel business Growth in fuel volumes sold in GCC (UAE and KSA) H1’24: +7.0% Y-o-Y (Q2’24: +4.7% Y-o-Y) ✓ Retail fuel: H1’24: +5.4% Y-o-Y (Q2’24 +3.9% Y-o-Y) ✓ C
Slide 12: Key strategic update: Non-fuel retail business
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Key strategic update Non-fuel retail business Double-digit growth in non-fuel retail segment gross profit ✓ Supported by convenience stores, car wash and other car services: H1’24:
Slide 13: Future proofing our business
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Future proofing our business Leading mobility and energy transition EV charging infrastructure ✓ EV strategy promotes clean mobility solutions and unlocks new revenue streams ✓ ADNO
Slide 14: ADNOC Rewards
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix ADNOC Rewards A key driver for incremental growth through enhanced customer experience and loyalty 2.1m Tier system with 350k members personalized enrolled in the past rewarding exp
Slide 15: Q2 / H1 2024 Results
ADNOC Classification: Public 03 Q2 / H1 2024 RESULTS SPEAKER: WAYNE BEIFUS CHIEF FINANCIAL OFFICER ADNOC DISTRIBUTION
Slide 16: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Operating performance Momentum continues in fuel and non-fuel businesses Total fuel volumes (mL) Fuel volumes, UAE and KSA (mL) Number of service stations 816 847 7,222 5,682 6,539
Slide 17: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Financial performance Strong business growth coupled with OPEX optimization resulting in significantly higher EBITDA and Net profit, despite introduction of UAE Corporate Tax in 202
Slide 18: Double-digit growth in gross profit across all operating segments
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Double-digit growth in gross profit across all operating segments $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) Retail (B2C) 325 293 10.7% 636 559 13.6% of which fuel 269 244 1
Slide 19: OPEX update
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix OPEX update OPEX pressures from increasing network footprint fully offset via ongoing Optimization Program Other1 11% Utilities 8% Q2 2024 cash OPEX split Distribution 3% ($154m) &
Slide 20: EBITDA by operating segment
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix EBITDA by operating segment $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) Retail (B2C) 201 165 21.4% 374 314 19.4% Retail margin, % 12.2% 10.7% 11.6% 10.6% Commercial (B2B) 67
Slide 21: Cash generation
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Cash generation Robust cash generation driven by Strong EBITDA and Working Capital Management Net debt / 0.62x Free cash flow of $488 million 0.53x EBITDA 121 (148) 22 (104) 515 (35
Slide 22: Closing Remarks
ADNOC Classification: Public 04 CLOSING REMARKS SPEAKER: BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
Slide 23: Closing remarks
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Closing remarks Deliver incremental growth with a focus on operational excellence and futureproofing our business Strong execution Deliver incremental and Attractive shareholder mom
Slide 24: Q&A
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Q&A Bader Saeed Al Lamki Wayne Beifus Athmane Benzerroug Chief Executive Officer Chief Financial Officer Chief Strategy, Transformation & Sustainability Officer © ADNOC Distribution
Slide 25: ADNOC Distribution Q2 / H1 2024 Results Presentation
ADNOC Classification: Public ADNOC DISTRIBUTION Q2 / H1 2024 RESULTS PRESENTATION IR@ADNOCDISTRIBUTION.AE ADNOC DISTRIBUTION
Slide 26: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q2 &Q1 H12024 2024Financial FinancialResults Results Closing Remarks Appendix Operating performance million liters Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) H1 2024 Retail (B2C) 1,851 1,781 3.9% 3,720 3,528 5.4% Commercial (B2B) 93
Slide 27: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q2 &Q1 H12024 2024Financial FinancialResults Results Closing Remarks Appendix Financial performance $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) H1 2024 Revenue 2,392 2,214 8.0% 4,774 4,392 8.7% Gross profit 420 378 11.0% 823 722 1
Slide 28: Our Share Ownership Structure
ADNOC Executive Classification: Internal Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Our Share Ownership Structure ADNOC Distribution shares are listed on the Abu Dhabi securities Exchange (ADX) under the symbol “ADNOCDIST” ADNOC Distribution Share ownership struc