2017 Preliminary Results Presentation 13 th March 2018
Applegreen plc 2017 Preliminary Results Presentation 2 Disclaimer This presentation (hereinafter “this document”) has been prepared by Applegreen plc (the “Company“) for information purposes only. This document has been prepared in good faith but the information contained in it has not been independently verifjed and does not purport to be comprehensive. This document is neither a prospectus nor an offer nor an invitation to apply for securities. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, offjcers or employees, any of its advisers or any other person as to the accuracy or completeness of the information or opinions contained in this document and no responsibility or liability whatsoever is accepted by the Company or any of its members, directors, offjcers or employees, any of its advisers nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Certain information contained herein may constitute “forward-looking statements” which can be identifjed by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “estimate”, “intend”, “continue”, “target” or “believe” (or negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those refmected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. A number of factors could cause results and developments of the Company to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, changes in regulation, currency fmuctuations, changes in its business strategy, political and economic uncertainty and other factors.
Applegreen plc 2017 Preliminary Results Presentation 3 Agenda 1. Highlights 2. Trading & Development Review 3. Financial Review 4. Outlook 5. Appendices
Highlights S.A. GOREY, IRELAND BK, Subway, Bakewell, Lavazza
Applegreen plc 2017 Preliminary Results Presentation 5 Highlights • 2017 was another year of strong performance as we continue to deliver on our growth strategy • Ongoing focus on non-fuel is delivering results: ■ Non fuel L4L gross margin growth of 7.4% ■ 77 new food offers opened across the estate • Larger scale service area developments are primary focus in ROI and UK • Accelerated our US expansion with 68 sites trading at year end • Ongoing enhancement of relationships with our franchise partners • Brandi and Carsley acquisitions completed in Q4 2017 and are trading in line with expectations • Strong Fuel performance with favourable margin environment in H1 and attractive returns from JFT investment in H2
Applegreen plc 2017 Preliminary Results Presentation 6 Distinctive convenience retail offering in the forecourt sector 1 2 3 “Low Fuel Prices, Always” “Better Value Always” Food and beverage focus • Local price promise • Tailored retail offer • 260 food outlets across the estate • Impulse/ ultra-convenience focus • Mix of own and international brands • Tailored offer to each location Number of Food Offers at 31 December 2017 (260 total)
Republic of Ireland S.A. GOREY, IRELAND
Applegreen plc 2017 Preliminary Results Presentation 8 Republic of Ireland Service Areas – Motorway & Trunk Road Service Areas RoI Site Numbers 88% of the ROI estate is now branded Applegreen (2016: 85%) • Continued market leading position in ROI including 9 MSA 200 sites 177 155 • Highly evolved food and retail offerings on national roads 30 150 133 27 • Three new TRSAs came on stream during the year 23 60 including one which has been upgraded from an existing 48 100 33 PFS site 50 • Strong pipeline of TRSA opportunities 87 77 80 • Tesla charge points opening at five of our MSA sites in ROI 0 Dec-15 Dec-16 Dec-17 Petrol Filling Stations – Company Owned PFS - Company Owned PFS - Dealer Owned SA • Seven new sites added in FY 2017 and seven PFS RoI Cap Ex rebrands completed €22.0m €22.7m €25.0 €22.3m Petrol Filling Stations – Dealer Owned €20.0 €6.9m • 12 new dealer sites opened during the year as we continue €12.0m €12.9m €15.0 to enhance our national coverage • 19% of ROI volumes in FY 2017 sold through dealer sites €10.0 €15.4m €10.7m Commercial Fuelcard €5.0 €9.1m • Continued growth in profitability and now accounts for 9% €0.0 2015 2016 2017 of ROI fuel volumes in FY 2017 PFS SA
U.K. SPALDING LINCOLNSHIRE Greggs, Subway and Costa Cafe
Applegreen plc 2017 Preliminary Results Presentation 10 UK Service Areas – Motorway & Trunk Road Service Areas UK Site Numbers 51% of the UK estate now branded Applegreen (2016: 39%) • One new MSA opened in Northern Ireland on M1 120 97 Inbound to Belfast in February 2017 – three MSAs now 100 77 11 operational in NI 62 80 • Focus on expanding in SA market in Great Britain. 6 2 • Three existing PFS sites upgraded to TRSAs during the 60 year and the first new build TRSA in GB opened in July 86 40 71 60 2017 20 • Carsley Group acquisition expands our service area 0 potential in GB Dec-15 Dec-16 Dec-17 • Four MSA sites are in the early stages of planning PFS - Company Owned SA process UK Cap Ex Capital Expenditure €44.4m Petrol Filling Stations – Company Owned €50.0 €45.0 • 15 new sites added in the period and seven PFS €7.4m €40.0 rebrands completed €35.0 €26.0m €30.0 • The seven Carsley sites have been successfully €22.1m €25.0 integrated and are trading in line with expectations €20.0 €13.0m €37.0m • Strong competition for new assets in the market €13.5m €15.0 €10.0 • Good LFL growth in non-fuel gross margin over the €13.0m €5.0 €8.6m course of FY 2017 €0.0 2015 2016 2017 PFS - Company Owned SA
USA HEMPSTEAD L.I.
Applegreen plc 2017 Preliminary Results Presentation 12 USA North East USA Site Numbers • 26 sites now trading – acquired through single site 80 68 opportunities or strategic partnership with CrossAmerica 70 60 Partners 50 • Significant fuel focus with strong margins particularly in 40 H2 2017 68 30 • 7-Eleven convenience store trading well and future 11 20 5 10 strategic relationship developing 11 5 0 • 15 sites added in FY 2017, 12 sites through Dec-15 Dec-16 Dec-17 CrossAmerica Partners and three single site acquisitions South East USA Cap Ex • 34 PFS sites and 8 stand alone Burger King restaurants • Brandi acquisition completed in October 2017 integrated €12.0 successfully and trading in line with expectations €10.0 • Applegreen resources transferred to the US to support €8.0 local management team €6.0 €10.5m €4.0 €2.0 €2.1m €1.0m €0.0 2015 2016 2017
FINANCIAL REVIEW
Applegreen plc 2017 Preliminary Results Presentation 14 • Adjusted EBITDA grew by 24% (26% on a Profit and Loss Account constant currency basis) FY 2017 FY 2016 %Var €m ¤m • S&D cost increase is driven by the 41% increase in site numbers in addition to the Revenue 1,428.1 1,177.6 21.3% impact of statutory wage increases Gross Profjt 181.7 145.8 24.6% Selling & Distribution Costs (100.1) (80.4) 24.5% • Increase in admin. expenses driven by Administrative Expenses (25.8) (20.8) 24.0% business growth and further investment in Other income 2.2 1.2 management capacity Adjusted EBITDAR 58.0 45.8 26.6% Rent (18.2) (13.8) • Increase in rent is partially driven by the Adjusted EBITDA 39.8 32.0 24.4% Brandi acquisition of 42 leasehold sites in Depreciation & Amortisation (14.1) (11.1) October 2017 Impairment 0.0 (0.4) • Adjusted PBT growth impacted by prior year Finance Costs, net (1.1) 0.5 finance costs which include a gain of €1.7m Adjusted PBT 24.6 21.0 17.1% on the retranslation of Sterling denominated Tax (3.3) (2.3) debt Adjusted PAT 21.3 18.7 13.9% • Non recurring costs are the net costs arising Adjusted EBITDA 39.8 32.0 24.4% from the acquisitions of the JFT, Brandi and Share Based Payments (1.6) (1.4) Carsley Non Recurring Costs (1.0) 0.0 Reported EBITDA 37.2 30.6 21.6% • Adjusted EPS growth impacted by higher number of shares now in issue following Adjusted Basic EPS (cents) 25.65 23.32 10.0% September placing
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