27 slides from Abu Dhabi National Oil Company For Distribution's earnings presentation, Nov 10, 2023
Slide 1: Q3/9M 2023 Results Presentation
ADNOC Classification: Public Q3/9M 2023 RESULTS PRESENTATION INVESTOR & ANALYST CONFERENCE CALL 10 November 2023 ADNOC DISTRIBUTION
Slide 2: Agenda
ADNOC Classification: Public Agenda 01 EXECUTIVE SUMMARY 02 STRATEGY UPDATE 03 Q3 2023 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, SUSTAINABILITY & TRANSFORMATION OFFICER ADNOC DISTRIBUTION
Slide 5: ADNOC Distribution equity story
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix ADNOC Distribution equity story Track record of shareholder Focus on delivering Solid performance and value creation sustainable growth cashflow visibility Transforming the largest UAE f
Slide 6: Future proofing our business
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Future proofing our business Pursuing leadership in sustainable mobility EV Charging ✓ EV strategy promotes clean mobility solutions and unlocks new business revenue streams ✓ 40+ fast E
Slide 7: Focus on sustainability
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Focus on sustainability Significant progress made in integrating sustainability and future proofing across our value chain Executing on our decarbonization roadmap ✓ Decarbonization road
Slide 8: Q3 key achievements & outlook
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Q3 23 key achievements & outlook Delivering one of the strongest quarterly results driven by a significant growth in volumes and non-fuel transactions, with additional OPEX savings Outlo
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 Q3 2023 Financial Results Closing Remarks Appendix Committed to 100% HSE Strong HSE performance ✓ ADNOC Distribution is committed to maintaining the highest standards of safety in delivering its product and services 0.03 mmhrs Zero Zero
Slide 11: Delivering on our transformation plans
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Delivering on our transformation plans Focus on innovation and upgrading the customer experience Non-Fuel Retail - C-store journey Improving product mix (focus on F&B), bringing Oasis st
Slide 12: ADNOC Rewards
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix ADNOC Rewards Enhancing customer experience and loyalty through innovation and personalized rewarding experience Introduced a new system of Tiers > 1.8 MEMBERS ENROLLED MILLION each deli
Slide 13: Key strategic update: fuel business
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Key strategic update Fuel business Significant increase in fuel volumes sold in the UAE and KSA (GCC) in Q3 23 with a 21% growth year-on-year to 2.8 bn liters ✓ Retail fuel volumes up 14
Slide 14: Key strategic update: non-fuel retail business
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Key strategic update Non-fuel retail business Double-digit growth in non-fuel retail segment in Q3 23 ✓ Non-fuel retail gross profit up 19% Y-o-Y ✓ UAE number of non-fuel transactions up
Slide 15: Q3/9M 2023 Results
ADNOC Classification: Public 03 Q3/9M 2023 RESULTS SPEAKER: WAYNE BEIFUS CHIEF FINANCIAL OFFICER ADNOC DISTRIBUTION
Slide 16: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Operating performance Supported by mobility, ongoing economic growth and network expansion Number of retail stations - at the end of Fuel volumes (mL) quarter / 9M Quarterly 9M 8,113 828
Slide 17: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Financial performance Driven by volume growth, higher contribution from international operations and efficiency EBITDA ($m) Underlying EBITDA1 ($m) Quarterly 9M Quarterly 9M 779 667 746
Slide 18: Gross profit by operating segment
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Gross profit by operating segment $m Q3 2023 Q3 2022 YoY (%) 9M 2023 9M 2022 YoY (%) Retail (B2C) 344 276 24.4% 903 900 0.4% of which fuel 291 232 25.4% 754 770 -2.0% of which non-fuel1
Slide 19: OPEX update
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix OPEX update Significant progress towards like-for-like 2023 OPEX savings target after achieving $20m savings in 9M 23 Other1 14% Utilities 13% Q3 23 cash OPEX split ($153m) Distribution
Slide 20: EBITDA by operating segment
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix EBITDA by operating segment $m Q3 2023 Q3 2022 YoY (%) 9M 2023 9M 2022 YoY (%) Retail (B2C) 214 170 26.2% 528 544 -3.0% Retail margin, % 13.0% 10.7% 35.4% 11.4% 12.4% Commercial (B2B) 90
Slide 21: Robust cash generation
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Robust cash generation Net debt / 0.67x 0.78x Free cash flow of $ 727 million EBITDA 156 -179 -149 16 -103 749 -361 878 748 Cash at Cash flow from Working capital Capex Paid Acquisition
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 Q3 2023 Financial Results Closing Remarks Appendix Closing remarks Focusing on sustainable mobility and smart growth, doubling down on non-fuel business and delivering incremental shareholder value Execute on our growth Deliver sustainab
Slide 24: Q&A
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Q&A Bader Saeed Al Lamki Wayne Beifus Athmane Benzerroug Chief Executive Officer Chief Financial Officer Chief Strategy, Sustainability & Transformation Officer © ADNOC Distribution
Slide 25: Q3 2023 Results Presentation
ADNOC DISTRIBUTION Q3 2023 RESULTS PRESENTATION IR@ADNOCDISTRIBUTION.AE ADNOC DISTRIBUTION
Slide 26: Operating performance
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Operating performance million liters Q3 2023 Q3 2022 YoY (%) 9M 2023 9M 2022 YoY (%) Q3 23 Retail (B2C) 1,812 1,583 14.5% 5,340 4,839 10.3% 2.8 billion liters Fuel volumes Commercial (B2
Slide 27: Financial performance
ADNOC Classification: Public Executive Summary Strategy Update Q3 2023 Financial Results Closing Remarks Appendix Financial performance Performance supported by volume growth, higher contribution from international operations and efficiency $m Q3 2023 Q3 2022 YoY (%) 9M 2023 9M 2022 YoY (%) Q3 23 Re