Ampol Limited · ASX:ALD
Ampol — H1 2021 Earnings Presentation
36 slides from Ampol's earnings presentation, Aug 23, 2021
Slide 1: 2021 Half Year Results Presentation
ASX Release 23 August 2021 2021 HALF YEAR RESULTS PRESENTATION Ampol Limited (ASX:ALD) provides the attached revised 2021 Half Year Results Presentation. The version of the 2021 Half Year Results Presentation released to the market at 8.54 am this morning included an error caused by an incorrect cel
Slide 2: ASX Release
AMPOL LIMITED ACN 004 201 307 LEVEL 24 2 MARKET STREET SYDNEY NSW 2000 ASX Release 2021 Half Year Results Presentation Monday 23 August 2021 (Sydney): Ampol Limited provides the attached 2021 Half Year Results Presentation for the half year ended 30 June 2021. Authorised for release by: the Board of
Slide 3: Welcome and overview
2 Welcome and overview Matt Halliday Managing Director & CEO
Slide 4: Ampol's proposed acquisition of Z Energy
3 Ampol’s proposed acquisition of Z Energy1 Ampol has submitted a Non-binding Indicative Proposal (“Proposal”) to acquire Z Energy for a cash offer price of NZ$3.78 per share Offer price represents a 35% premium to last close on 26 July 2021 (the day prior to first press speculation in relation
Slide 5: Transaction rationale
4 Transaction rationale Ampol acquisition rationale Business overview1 Z Energy (ZEL : NZ) is a Wellington headquartered fuel distribution and retailing company that owns and manages 330 fuel stations and truck shops in New Zealand under the Z and Caltex brands, and supplies 3-4 Reporting year bil
Slide 6: Safety performance: Continued improvement & focus
5 Safety performance: Continued improvement & focus Fuels & Infrastructure Personal Safety Process Safety and Spills1 Convenience Retail Personal Safety 12 10 15 10 8 8 10 6 6 4 4 5 2 2 0 0 0 2018 2019 2020 1H 2021 2018 2019 2020 1H 2021 2018 2019 2020 1H 2021 Days Away from Work Injury Frequency Ra
Slide 7: Delivering today, positioning for the future
6 Delivering today, positioning for the future Improved performance in Lytton Refinery earnings Good progress in key Creating value for 1H 20211 de-risked strategic initiatives shareholders Strong recovery in Group RCOP EBIT Federal Government support Convenience Retail EBIT uplift on 52 cps
Slide 8: Growing fuel sales to end customers
7 Growing fuel sales to end customers Double digit growth in Fuels and Infrastructure volumes driven by strong International sales growth Wholesale Fuel Australian Fuel Demand (vs 2019 baseline)3 20% • Strong growth1 in International sales volume (see slide 8) 0% • Ampol Australian wholesale volumes
Slide 9: Strong progress on $195 million EBIT uplift by 2024
8 Strong progress on $195 million EBIT uplift by 20241 EBIT Uplift target to 2024 ($m)1 1H 2021 status update F&I International growth target1 International EBIT of $60 million in 1H 2021, up2 $8 million or 15% Delivered to end 1H 2021 — Gull (New Zealand) volumes exceeded 250ML in 1H 2021, up2 33
Slide 10: Ampol rebranding: Re-establishing iconic Australian brand
9 Ampol rebranding: Re-establishing iconic Australian brand 2H 2020 1H 2021 2H 2021 2022 Anticipated Pilot launch Network rollout commences Network scale achieved Brand transition complete timeline 389 stores rebranded to Ampol1 Brand strategy Network rollout gaining momentum with 389 rebranded st
Slide 11: Sustainability is an integral part of our strategy
10 Sustainability is an integral part of our strategy Ampol is taking a responsible and long-term view to deliver value for all stakeholders Ampol's Sustainability Strategy is based on four key pillars Solid progress so far in 2021 across several ESG initiatives Release of Future Energy and Decarb
Slide 12: Group financial result
11 Group financial result Greg Barnes CFO
Slide 13: 1H 2021 Group financial performance
12 1H 2021 Group financial performance RCOP EBIT improvement driven by improved Lytton Refinery earnings and successful execution of the EBIT uplift strategy 1H 2021 1H 2020 % Δ 1H 2020 F&I RCOP EBIT of $208 million up3 85%; including full half year production at Lytton EBIT - F&I $208m $112m 85%
Slide 14: 1H 2021 Group RCOP EBIT result
13 1H 2021 GROUP RCOP EBIT result 1H 2021 v 1H 2020 Group RCOP EBIT ($M) 340 (1) (12) 24 108 221 Includes impact of lower Australian trading volumes/margins compared to elevated Includes TRPP of levels in 1H 2020 to $40m in 1H 2021 substitute Lytton T&I 1H 2020 RCOP EBIT Lytton F&I (Ex-Lytton) Conve
Slide 15: Fuels & Infrastructure result
14 Fuels & Infrastructure result Substituting Lytton production in 1H 2021 contributed to the F&I Australia profit decline 1H 2021 v 1H 2020 F&I RCOP EBIT ($M) 208 183 25 (16) 8 40 Includes impact of 112 68 lower margin imports compared to 1H 2020 (29) 83 during the T&I 1H 2020 F&I 1H 2020 FX Gain 1
Slide 16: Lytton Refinery result
15 Lytton Refinery result 1H 2021 v 1H 2020 Lytton RCOP EBIT ($M) 49 40 (5) 9 55 Includes +$9m comparable benefit from non-recuring (18) crude costs incurred in 36 1H 2020 (T&I related) (59) 1H 2020 USD LRM Impact of Volume Opex & other 1H 2021 RCOP TRPP 1H 2021 RCOP RCOP EBIT AUD on LRM EBIT (ex TR
Slide 17: Convenience Retail result
16 Convenience Retail result 1H 2021 v 1H 2020 Convenience Retail RCOP EBIT ($M) 149 12 125 12 14 15 (56) 6 23 Largely relates to the movement of crude price on diesel margins 1H 2020 CR Fuel Volume Fuel Margin Shop CODB Other D&A 2 Gain/Loss 1H 2021 CR RCOP EBIT contribution one-offs 1 on site RCOP
Slide 18: Balance sheet and cash flow
17 Balance sheet and cash flow Strong balance sheet maintained; maximising value and shareholder returns (735) Includes working capital movements, interest and tax (300) outflows (434) (55) 208 (69) (85) Dec-20 opening Operating Capital Other financing Ordinary dividends OMBB Jun-21 closing Net Borr
Slide 19: Capital Allocation
18 Capital Allocation Committed to returning surplus capital and franking credits in line with our Capital Allocation Framework Capital Management Capital returns since 2015 (A$M) Ampol has released 43% of its franking credit balance since the start of 2019 and maintained a strong balance sheet 53
Slide 20: Outlook and closing remarks
19 Outlook and closing remarks Matt Halliday Managing Director & CEO
Slide 21: We are delivering on a clear set of 2021 priorities
20 We are delivering on a clear set of 2021 priorities 389 sites rebranded at end of June 2021, customer response positive; KPIs in line or slightly ahead Rebrand Bring back Ampol On track Chevron claims substantially dismissed by the Federal Court, with costs awarded in our favour Legal dispu
Slide 22: Outlook
21 Outlook Lytton Refinery earnings protected from low AUD margins Reduced earnings risk at Lytton Impact of sustained COVID-19 lockdowns on inventory and production levels continue to be monitored 10 new Gull sites to be rolled out in 2021 Targeted EBIT T&S USA office now operational, expec
Slide 23: <L oe) O
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Slide 24: Appendix
23 Appendix Significant items 24 Fuels & Infrastructure – financial highlights 25 Lytton refinery – Singapore Weighted Average Margin 26 Lytton refinery – highlights 27 Lytton refinery – Federal Government support package 28 Product sales volumes 29 Convenience Retail – financial highlights 30 Capit
Slide 25: Significant items
24 Significant items 1H 2021 1H 2020 Notes Half Year Ending June $M $M 1. $27 million Ampol rebranding expense comprises $20.8 million for rebranding program and $5.8 million accelerated depreciation compared to $57 million Ampol rebranding expense1 (27) (57) recognised at half year 2020 comprising
Slide 26: Fuels & Infrastructure – financial highlights
25 Fuels & Infrastructure – financial highlights 1H 2021 1H 2020 Change (%) Total Fuels Sales Volumes (BL) 11.1 9.9 11% Australian Volumes (BL) 6.5 7.0 (6%) Notes International Volumes (BL) 4.5 3.0 52% 1. Australian F&I (ex Lytton) EBIT includes all Lytton Total Production (BL) 3.0 2.0 50% earnings
Slide 27: Lytton Refinery – Singapore Weighted Average Margin
26 Lytton Refinery – Singapore Weighted Average Margin Challenging refining conditions further impacted by COVID-19 25 SWAM (US$/bbl) Notes 1H 2021 Singapore Weighted Average Margin (SWAM) impacted by sustained weakness in 20 global hydrocarbon demand 1H 2021 LRM1 of US$5.90/bbl and total 15 pro
Slide 28: Lytton refinery – highlights
27 Lytton refinery – highlights Lytton Refiner Margin1 Operational performance LRM recovering supported by lower landed crude costs High Value Transport Fuels Production Volumes, Production Utilisation (%) and Availability (%) BL 96 97 97 97 97 98 97 97 97 97 96 97 97 97 97 97 % 3.50 93 13.68 90 88
Slide 29: Lytton – Federal Government support package
28 Lytton – Federal Government support package Key benefits1 Fuel Security Services Payment (FSSP)3 Significantly reduces earnings volatility and downside risk as support is locked in until The FSSP is anticipated to provide: mid-20272 — Variable payment: a variable payment when the refining pri
Slide 30: Product sales volumes
29 Product sales volumes Fuels & Infrastructure (Total) Volumes Fuels & Infrastructure (Australia) Volumes Convenience Retail Fuels Volumes BL BL BL 12.00 11.05 9.00 3.00 8.11 9.94 8.00 0.01 9.60 1.38 2.42 10.00 1.34 6.97 2.50 0.20 1.23 0.60 7.00 0.00 6.55 0.04 1.34 0.66 0.05 1.99 2.04 0.69 0.52 0.0
Slide 31: Convenience Retail – financial highlights
30 Convenience Retail – financial highlights 1H 2021 1H 2020 Change (%) Notes Period end COCO sites (#)1 688 661 4% 1. Includes 39 unmanned diesel stops. Period end CORO sites (#) 9 83 (89%) 2. Excludes GST and excise (as applicable) - Total Fuel Revenue Total Sales volumes (BL) 2.05 1.99 3% relates
Slide 32: Capital Allocation – Increased balance sheet capacity
31 Capital Allocation – Increased balance sheet capacity Continued focus on operating and capital efficiency, governed by a well-defined framework Capital Allocation Framework Stay-In-Business Capex Ampol is committed to maintaining a strong investment grade credit Focused on safety and reliabil
Slide 33: Strong flexible funding platform
32 Strong flexible funding platform Committed Debt Maturity Profile (A$m) (30 June 2021) $2.8 billion of committed funding facilities at 30 June 2021 300 Prudent debt maturity profile to minimise refinancing risk and maintain financial flexibility, with weighted average maturity of 3.4 years 235
Slide 34: Our assets – retail infrastructure
33 Our assets – retail infrastructure Australian retail network Dealer Owned Leased Total 2 Owned Australian retail network Company Operated1 137 512 0 649 Franchisee transition substantially complete; 9 franchise sites to be Company Operated (Diesel Stop) 14 25 0 39 progressively transitioned; up
Slide 35: Important Notice
34 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 6-month period ended 30 June 2021; and • a high level overview of aspects of the operations of the Ampol Limited Group,
Slide 36: Thank you
VA AMPOL Thank you