Slide 1: Caltex Australia Limited Annual General Meeting 2018 Addresses
CALTEX AUSTRALIA LIMITED ANNUAL GENERAL MEETING 2018 ADDRESSES We would like to begin today by acknowledging the Gadigal people of the Eora Nation, the traditional custodians of this land, and we pay our respects to their Elders both past and present. Good morning and welcome to the 2018 Annual Gene
Slide 2: Chairman's address: director re-elections
Barbara is a valued and experienced member of the Board having extensive strategic, financial and executive leadership experience. I will now ask Barbara to speak to her re-election. (Barbara Ward addresses the meeting) Thank you Barbara. Prior to asking Trevor to speak, I would like to confirm that
Slide 3: Chairman's review of 2017 performance
I would also like to take this opportunity to thank Greg who retires by rotation as external audit partner and to welcome Julian McPherson who has been appointed as external audit partner. Before we open the floor to questions and ask you to vote on the resolutions proposed in the Notice of Meeting,
Slide 4: Strong financial result for 2017
As I mentioned, we had a strong financial result. I’ll report the top line figures to you and Julian will provide more detail. On a replacement cost of sales operating profit basis, we delivered a profit after tax of $621 million, up by 18% on the 2016 result, and marginally above the profit guidanc
Slide 5: Returning surplus funds to shareholders
The Board has taken positive steps with management to identify and eradicate this behaviour as soon as it became apparent it was taking place in the network, and continues to receive regular reports on the audit. With a view to Top Quartile Shareholder Returns we are currently reviewing options that
Slide 6: Thanks to employees and two core businesses going forward
83% of Caltex employees surveyed last year agreed that they have the flexibility to manage their work with their caring responsibilities. The Board is very pleased with this result and the well-deserved recognition of our team. We go forward in 2018 as two core businesses with emerging differences i
Slide 7: CEO address: acquisitions and Lytton refinery
We acquired 46 Milemaker sites in Victoria, and our Fuels & Infrastructure business expanded with our first international acquisition – Gull New Zealand. These acquisitions contributed $22 million to EBIT by year-end. Following these, we announced a new strategic partnership with SEAOIL in the Phili
Slide 8: Freedom of Convenience strategy and The Foodary
Let me now turn to our strategy. Our Freedom of Convenience strategy means being the market leader in complex supply chains and the evolving convenience marketplace, by delivering the fuel and other everyday needs of our diverse customers through our networks. In 2017, the most visible aspect of the
Slide 9: Franchisee wage underpayment audit
our network until expiry of their tenure. We expect discussions with franchisees will continue until mid 2018. In 2017 we continued to investigate the alleged wage underpayment in the Caltex franchisee network. Throughout the year, we continued to audit our entire franchise network in response to th
Slide 10: Caltex
ty CALTEX
Slide 11: Acknowledgement of Country
Acknowledgement of Country
Slide 12: Holding slide
HOLDING SLIDE
Slide 13: Board of Directors and Company Secretary
Board of Directors and Company Secretary Steven Gregg Julian Segal Trevor Bourne Melinda Conrad Chairman Managing Director & CEO Non-executive Director Non-executive Director Bruce Morgan Barbara Ward AM Penny Winn Mark Chellew Lyndall Stoyles Non-executive Director Non-executive Director Non-execut
Slide 14: Barbara Ward AM
Barbara Ward AM Experience and Qualifications • Strategic and financial expertise in senior management roles, including as CEO of Ansett Worldwide Aviation Services and General Manager Finance at TNT Limited • Served as a Senior Ministerial Adviser to the Honourable Paul Keating • Currently a direct
Slide 15: Trevor Bourne
Trevor Bourne Experience and Qualifications • Extensive management experience in industrial and capital-intensive industries, and a background in engineering and supply chain • 1999 to 2003, served as CEO of Tenix Investments. Prior to Tenix, spent 15 years at Brambles Industries, including six year
Slide 16: Mark Chellew
Mark Chellew Experience and Qualifications • International expertise in industry, strategy, governance and large capital projects with a background in manufacturing, mining and process industries • Was the CEO and MD of Adelaide Brighton. Prior to that, held executive positions at Blue Circle Indust
Slide 17: Caltex Leadership Team
Caltex Leadership Team Simon Hepworth Richard Pearson Louise Warner Andrew Brewer Chief Financial Officer Executive General Manager, Executive General Manager, Executive General Manager, Convenience Retail Fuels & Infrastructure Transformation Viv Da Ros Lyndall Stoyles Alan Stuart-Grant Joanne Tayl
Slide 18: Chairman
Chairman
Slide 19: Regional Strategy - Our Operations
Regional Strategy - Our Operations
Slide 20: Track record in sound decision making
11 We continue to demonstrate our track record in sound decision making in anticipation of the changing business environment
Slide 21: Slide 21
Slide 22: Replacement Cost of Sales Operating Profit (RCOP)
Replacement Cost of Sales Operating Profit (RCOP) 700 The RCOP net profit after tax (NPAT) of 628 621 $621m in 2017 is up 18% on the 2016 result 600 524 493 500 $millions 400 322 300 200 100 RCOP is our preferred measure as it excludes net inventory gains and losses and better represents the underly
Slide 23: Slide 23
Slide 24: Py P
~ a Py P ee 3) \ ~ ~
Slide 25: Caltex dividend history
Caltex dividend history* Final dividend of 61 cents per share (2016: 52cps) fully franked; pay-out ratio 50.8% Caltex dividend history* Cents per share Payout Ratio** 140 60% 117 121 120 50% 102 100 61 40% 80 70 70 52 60 30% 40 60 45 34 25 30 50 20% 40 28 60 23 17 47 50 10% 20 25 30 17 17 17 20 0 0%
Slide 26: < vy)
5 < vy)
Slide 27: Managing Director & CEO
Managing Director & CEO
Slide 28: Safe and well
19 Safe and well Total Recordable Injury Frequency Rate (TRIFR) for 2017 was 5.20 • a 8.6% improvement on the personal safety performance of 2016 • 9.4% improvement on TRIFR average for the previous three years Improvements in Days Away From Work Injury Frequency Rate (DAFWIFR) of 1.36 in 2017 • a 2
Slide 29: Good financial performance
20 Good financial performance In 2017 Caltex had Strong results from Supply & Marketing • EBIT up 3.4% to $733m • Underlying EBIT increased 5.1% to $776m Transport Fuel volumes grew • Commercial diesel volumes up 9.2% to 4.4BL • Total Australian transport fuel volumes grew 3.4% to 16.2BL • Jet volum
Slide 30: Caltex
w® “CALTEX,
Slide 31: Slide 31
Slide 32: Caltex
CALTEX
Slide 33: Formal business
Formal business
Slide 34: How to Cast Your Vote
How to Cast Your Vote Resolution 1 @For @ Against ® Withheld 4 s @y cartex
Slide 35: Items of Business
26 Items of Business Consider The Financial Report, Director’s Report and Auditor’s Report for the year ended 31 December 2017 Election of Directors 2a - Re-election of Barbara Ward AM as a Director 2b - Re-election of Trevor Bourne as a Director 2c - Election of Mark Chellew as a Director 3 - Adopt
Slide 36: Questions
Questions Join Queue John Smith
Slide 37: Proxy Votes Received Prior to the Meeting
Proxy Votes Received Prior to the Meeting For % Against % Open % Abstain Re-election of Barbara Resolution 2a 172,019,147 96.81% 5,240,341 2.95% 425,181 0.24% 258,731 Ward AM as a Director Re-election of Trevor Resolution 2b 172,331,397 96.99% 4,921,439 2.77% 427,656 0.24% 262,908 Bourne as a Direct
Slide 38: Voting Results
VOTING RESULTS
Slide 39: Proudly A Kestraitan
: a =< Proudly A Kestraitan