Viva Energy Group Ltd. · ASX:VEA
Viva Energy — FY2023 Earnings Presentation
29 slides from Viva Energy's earnings presentation, Feb 21, 2024
Slide 1: Full Year Results
Full Year Results Full Year ended 31 December 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Viva Energy Group Limited, fairness, accuracy, completeness or correctness of the information, information contained within this presentation may be unreliable given ACN 626 661 032 (“Company” or “Viva Energy”). opinions and conc
Slide 3: Contents
Contents 01 Group Highlights Scott Wyatt – CEO 02 Financial Highlights Carolyn Pedic – CFO 03 Strategic Update, Outlook Scott Wyatt – CEO 04 Appendix 3
Slide 4: Group Highlights
VIVA ENERGY: MOST CONFIDENTIAL Group Highlights Scott Wyatt Viva Energy Group Limited – Presentation Title 4
Slide 5: Safety and Environment
Safety and Environment Successfully meeting new challenges following Coles Express acquisition and addition of ~6,000 retail employees Total Recordable Injury Loss of primary containment Process safety events2 Frequency Rate1 (>100KG)2 4 3 6.7 6.6 29 2 6.0 24 1 4.6 19 19 19 3.6 2 1 1 1 1 FY19 FY20 F
Slide 6: FY2023 Highlights
FY2023 Highlights Strong underlying performance and significant progress on our strategic agenda Performance Group fuel sales Group EBITDA (RC) Net debt FY2023 dividends +9% $713M $380M 15.6 CPS To 15.5BL +16% excl. Refining +$671M on FY2022 +9% excl. Refining Strategy • Completed Coles • Announced
Slide 7: Convenience & Mobility (C&M)
Convenience & Mobility (C&M) Resilient convenience and fuel sales in face of cost-of-living pressures Fuel and convenience sales1 C&M EBITDA (RC)2 5.0 1.6 1.6 1.6 1.6 4.5 1.5 250 4.0 0.8 0.8 235 232 0.8 3.5 0.5 0.7 188 Fuel Sales (BL) 0.7 0.4 0.5 3.0 1.0 2.5 149 2.0 1.5 2.9 2.9 3.0 3.0 0.5 1.0 0.5 0
Slide 8: Commercial & Industrial (C&I)
Commercial & Industrial (C&I) Sales and earnings growth driven by strong demand across most sectors and new business C&I fuel volumes (ML) C&I EBITDA (RC)1 10,361 11,073 10,965 500 969 9,737 1,333 448 1,082 450 8,609 8,896 1,205 400 3,488 1,126 2,670 335 1,200 3,345 1,893 350 1,254 1,525 300 250 217
Slide 9: Energy & Infrastructure (E&I)
Energy & Infrastructure (E&I) FY2023 impacted by extended major maintenance during Q2 and Q3 Refining production (%) E&I EBITDA (RC)1 518 FY2019 FY2020 FY2021 FY2022 FY2023 14% 17% 18% Other 25% 25% 12% 3% 7% 4% 10% Jet 39% 43% 39% 40% 25% Diesel 103 79 65 36% 32% 36% 36% 40% Gasoline Intake (MBBLs)
Slide 10: Financial Performance
VIVA ENERGY: MOST CONFIDENTIAL Financial Performance Carolyn Pedic Viva Energy Group Limited – FY2023 Results Presentation 10
Slide 11: FY2023 Financial Performance
FY2023 Financial Performance Strong underlying growth of both Convenience & Mobility and Commercial & Industrial FY2023 Group Results All financials in $M unless noted Change otherwise FY2023 FY2022 (%) (#) FY2023 Group EBITDA (RC) bridge ($M) EBITDA (RC) 712.8 1,075.8 (33.7%) (363.0) NPAT (RC) 318.
Slide 12: FY2023 Convenience & Mobility (C&M)
FY2023 Convenience & Mobility (C&M) Significant shift in operating metrics since completing acquisition of Coles Express FY2023 C&M EBITDA (RC) bridge ($M) Coles Express Convenience Business from 1 May 2023 (+$0.2M) • Captured convenience sales ($762M) and eliminated fuel commission to Coles • Offse
Slide 13: FY2023 Commercial & Industrial (C&I)
FY2023 Commercial & Industrial (C&I) Record earnings driven by robust demand from most sectors, new business wins and continued recovery FY2023 C&I EBITDA (RC) bridge ($M) Pass-through of inflationary Led by impacts and supply FY2022 optimisation initiatives New business and International procuremen
Slide 14: FY2023 Energy & Infrastructure (E&I)
FY2023 Energy & Infrastructure (E&I) Insurance recovery partially offset significant impacts from extended major maintenance, compressor incident FY2023 E&I (RC) bridge ($M) Normalisation of Major maintenance turnaround & compressor incident regional refining • Impacted intake (to 31.6MBBLs) and GRM
Slide 15: FY2023 Cash Flow
FY2023 Cash Flow Underlying cash conversion remains strong despite extended maintenance turnaround Group net cash flow bridge ($M) Higher tax due to catch-up instalments relating to FY2022 period Includes $26.7M of C&M acquisition integration costs Includes $15.4M of C&M acquisition integration cape
Slide 16: Capital Expenditure
Capital Expenditure Focused on capital discipline with FY2023 in line with expectations, FY2024 guidance unchanged FY2023 FY2023 FY2024 FY2024 1 guidance1 ($M) actual ($M) guidance ($M) guidance ($M) Convenience & Mobility 44 35 – 45 85 – 90 Sustaining 265 – 275 Commercial & Industrial 73 75 – 85 95
Slide 17: Balance Sheet
Balance Sheet Substantial capacity to pursue strategic growth objectives Change in net cash (debt) ($M) Borrowings to fund working capital obligations during extended • Returned $337M to shareholders (net of dividends paid on turnaround treasury shares) from the final FY2022 and 1H2023 dividends • C
Slide 18: Dividends
Dividends Determined fully franked dividends of 15.6 CPS in FY2023 1H2023 FY2023 All financials in $M Convenience Commercial & Energy & Group Group • Determined final fully franked dividend of 7.1 cps, unless noted otherwise & Mobility Industrial Infrastructure at top end of dividend policy for C&M
Slide 19: Strategic Update, Outlook
VIVA ENERGY: MOST CONFIDENTIAL Strategic Update, Outlook Scott Wyatt Viva Energy Group Limited – Presentation Title 19
Slide 20: Convenience & Mobility (C&M) Strategy Update
Convenience & Mobility (C&M) Strategy Update Interim Reddy Express rollout has commenced, OTR completion expected 1H2024 Reddy Express re-branding commenced • In-store experience and customer offer remains largely unchanged • Small refurbishments in selected stores in preparation for OTR transformat
Slide 21: Sustainability
Sustainability Good progress on the development of sustainability agenda during 2023 Convenience & Mobility Commercial & Industrial Energy & Infrastructure • Entered co-funding agreement with • Expanded carbon solutions offering to • Progressed ultra-low sulphur gasoline NSW government to develop a
Slide 22: FY2024 Outlook
FY2024 Outlook Diversity of three businesses and growth initiatives to support earnings • Market fuel demand growth subdued due to higher prices and cost-of-living pressures Convenience • Focus on driving continued growth in non-tobacco convenience sales and margin mix & Mobility • OTR to contribute
Slide 23: Appendix
Appendix Viva Energy Group Limited – FY2023 Results Presentation 23
Slide 24: Re-Segmented Financials
Re-Segmented Financials 2021 2022 2023 Group C&M C&I E&I Group C&M C&I E&I Group C&M C&I E&I Revenue 15,900.0 5,758.5 10,141.5 - 26,432.6 7,975.8 18,456.8 - 26,741.1 10,101.1 16,640.0 - COGS (RC) (14,273.9) (5,022.0) (9,537.3) 285.5 (23,846.7) (7,111.5) (17,610.0) 874.8 (24,134.3) (8,897.0) (15,611.
Slide 25: Convenience & Mobility – Sales Analysis and Key Drivers
Convenience & Mobility – Sales Analysis and Key Drivers 2H2023 represents the first full reporting period as an integrated fuel and convenience business Metric 2H2023 Company operated stores (Coles Express/Reddy Express) # 706 Liberty Convenience stores # 101 Dealer Owned stores # 508 Diesel sales M
Slide 26: Refinery – Margin Analysis and Key Drivers
Refinery – Margin Analysis and Key Drivers Metric FY18 FY19 FY20 FY21 FY22 FY23 A: A$/US$ FX 0.75 0.69 0.69 0.75 0.70 0.67 B: Crude and feedstock intake mbbls 40.1 42.0 34.8 41.2 41.9 31.6 C: Geelong Refining Margin US$/bbl 7.4 6.6 3.1 7.1 17.1 9.8 D: Geelong Refining Margin = C / A A$/bbl 9.9 9.5 4
Slide 27: Refining Margin Cracks
Refining Margin Cracks Regional refining margins remain elevated compared to historical averages, while GRM was impacted by major maintenance and elevated crude premia Refining margin cracks1, GRM2, Crude Premia3 (US$/bbl) 58.0 48.0 38.0 28.0 18.0 8.0 -2.0 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 J
Slide 28: Glossary
Glossary Replacement Cost (“RC”) EBITDA (RC) Historical Cost (“HC”) Geelong Refining Margin Viva Energy reports its performance Profit before interest, tax, depreciation Calculated in accordance with IFRS The Geelong Refining Margin is a on a “replacement cost” (RC) basis. and amortisation adjusted
Slide 29: VIVA ENERGY: MOST CONFIDENTIAL
VIVA ENERGY: MOST CONFIDENTIAL