Viva Energy Group Ltd. · ASX:VEA
Viva Energy — H1 2018 Earnings Presentation
25 slides from Viva Energy's earnings presentation, Aug 30, 2018
Slide 1: Viva Energy Group 2018 Half Year Results Presentation
For personal use only Viva Energy Group 2018 Half Year Results Presentation 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Viva constitute in any jurisdiction, whether in performance. achievements to differ materially from any For personal use only Energy Group Limited, ACN 626 661 032 Australia or elsewhere, an invitation to apply To the extent that
Slide 3: Agenda and Presenting Today
Agenda and Presenting Today For personal use only 1 Safety 2 1H2018 Snapshot 3 Business Performance 4 Summary Financial Results 5 Balance Sheet and Capital Allocation 6 Conclusion and Q&A Scott Wyatt Jevan Bouzo Chief Executive Officer Chief Financial Officer 3
Slide 4: Strong Safety and Environmental Culture
Strong Safety and Environmental Culture Lost Time Injury Frequency Rate (LTIF) (1) Highlights 1H2018 For personal use only 1.5 • Successful renewal of Major Hazard 1.0 Facility licence at Geelong Refinery for a further 5 years • Secondary Distillation Unit (CDU3) 0.4 turnaround at Geelong free of 0.
Slide 5: 1H2018 Snapshot
1H2018 Snapshot For personal use only Consolidated Group performance n NPAT (HC) for 1H2018 was $144.6m compared with a Prospectus forecast driven by lower regional refining $112.3m margins in June, offset by performance n Underlying NPAT (RC) for 1H2018 was $129.4M compared with the $129.7m in Reta
Slide 6: Business Performance
For personal use only Business Performance 6
Slide 7: Retail, Fuels and Marketing
Retail, Fuels and Marketing A Leading Retail Network with Strong Brand Recognition Diversified Commercial and Specialty Businesses For personal use only Sales volumes and margins were relatively stable over the period Robust sales volumes and margins underpinned by relatively strong economic act
Slide 8: Refining
Refining For personal use only n R e fin e ry p e rfo rm a n ce w a s p re d o m in a n tly im p a cte d b y lo w e r re g io n a l re fin in g m a rg in s in J u n e , w h ic h h a ve sin ce O p e ra tin g FY2015 FY2016 FY2017 1H 2018 1H 2018 re co ve re d M e tric s F o re c a s t A c tu a l n F o
Slide 9: Supply Chain, Corporate and Overheads
Supply Chain, Corporate and Overheads Corporate and Overheads Supply Chain For personal use only Head office and overhead cost savings New Import Jet tank at Cairns to support the growing Aviation business (August) Insurance cost savings as a result of annual renewal and re- tendering Opened
Slide 10: Summary Financial Results
For personal use only Summary Financial Results 10
Slide 11: HY2018 Summary Financials
HY2018 Summary Financials For personal use only Key Performance Indicators 1H2018 Prospectus Performance Actual Forecast Total fuel and specialty product volume sold (ML) 6,955.0 6,898.3 56.7 Underlying EBITDA (RC) Reta i l , Fuel s a nd Ma rketi ng 474.4 465.0 9.4 Retail 308.0 299.0 9.0 Commercial
Slide 12: 1H2018 EBITDA Bridge
1H2018 EBITDA Bridge HY2018 versus Prospectus Underlying EBITDA Changes Bridge ($m) Retail, Fuels and Marketing For personal use only Retail volumes and margins relatively stable Supply, Corporate Lower marketing and retail & Overheads operating costs Lower overhead Network site additions an
Slide 13: Cash Flow Bridge
Cash Flow Bridge EBITDA to Net Cash Flow Bridge ($m) Working Capital For personal use only Net inventory gain due to 300.0 stock build and 25.2 movements in oil price 250.0 and foreign exchange on -88.2 inventory ($88.2m) Taxation adjustment Adjusted Net FCF before 200.0 -18.9 Settlement of FY17
Slide 14: 1H2018 Significant Items
1H2018 Significant Items For personal use only Reconciliation of Statutory Profit After Tax to Underlying NPAT (RC) (A$M) Statutory Profit After Tax 144.6 Less: Significant one-off items 0.2 Less: Net inventory gain net of tax at 30% 15.0 Underlying NPAT (RC) 129.4 Significant one-off items 1H2018 1
Slide 15: Balance Sheet and Capital Allocation
For personal use only Balance Sheet and Capital Allocation 15
Slide 16: Balance sheet and capital expenditure
Balance sheet and capital expenditure For personal use only Summary Balance Sheet 1H2018 FY2017 Performance (A$M) Actual Actual Net debt (30 June 2018) of $237.5m 1. Working capital 480.3 306.0 174.3 2. Property, plant and equipment 1,477.3 1,408.3 69.0 US$700mm Facility available to fund Intang
Slide 17: Dividend update and balance sheet flexibility
Dividend update and balance sheet flexibility For personal use only Dividend target for 12 month end June 2019 unchanged Strong Balance Sheet Provides Financial Flexibility 30 June 2018 Net Debt: • For the 12 month period to 30 June 2019, it is the current $237.5 mm intention to target a dividend pa
Slide 18: Key takeaways and Outlook
For personal use only Key takeaways and Outlook 18
Slide 19: Key takeaways
Key takeaways For personal use only Stable sales volumes and margins across both Retail and Commercial Good progress on network growth, and V-Power Diesel introduction Lower marketing and overhead costs driving strong performance Refining impacted by lower regional refining margins in June (
Slide 20: Outlook and subsequent events
Outlook and subsequent events For personal use only In May 2018, Viva Energy agreed to acquire a 50% non-controlling interest in Westside Petroleum, an independently owned and operated retail fuels business, with more than 50 retail sites across New South Wales, Victoria and Queensland, for $15 mi
Slide 21: Conclusion and Q&A
For personal use only Conclusion and Q&A 21
Slide 22: Appendix
For personal use only Appendix 22
Slide 23: Coles Alliance: Capital Light and Shared Risk Model
Coles Alliance: Capital Light and Shared Risk Model Retail Alliance with One of For personal use only Australia’s Largest Supermarket Operators (1) Collaboration on network development Coles owned by Pays fuel purchases + royalties (share of non-fuel margin) 1 Wesfarmers(2), and operates + site leas
Slide 24: A Leading Retail Network with Strong Brand Recognition
A Leading Retail Network with Strong Brand Recognition For personal use only Strategically Located Network of 1,187 Service Stations(1) Viva Energy Service Station Distribution by State Northern Territory TAS NT SA 2% 2% 19 7% Queensland WA Western Australia 206 13% NSW 32% 148 South Australia QLD N
Slide 25: Diversified Commercial and Specialty Businesses
Diversified Commercial and Specialty Businesses For personal use only Aviation Marine Resources Transport Specialties 37% market share of 48% market share of Major distributor of fuel Bulk diesel to an Bitumen Australian aviation(1) marine(2) and lubricant products extensive blue-chip custom