Applegreen plc 2016 Preliminary Results Presentation 14 th March 2017
Applegreen plc 2016 Preliminary Results Presentation | Page 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 2016 Preliminary Results Presentation | Page 3 Agenda 1. Introduction & Highlights 2. Estate Growth and Development 3. Financial Review 4. Outlook 5. Appendices 6. Q & A
2016 Preliminary Results Presentation | Page 4 1. Introduction & Highlights
Applegreen plc 2016 Preliminary Results Presentation | Page 5 Highlights • 16% increase in gross profit on 2015 (20% in constant currency) • Adjusted EBITDA increased 11% from €28.9m in 2015 to €32.0m in 2016 (14.5% constant currency). • Key factors: ○ Continued expansion of the estate ○ Strong LFL store performance in Ireland ○ Growth in food across Ireland and UK • Estate expanded to 243 sites at 31 December 2016 with capex of €60.3m in 2016 (2015 €58.8m) • Maiden dividend of 1.25c per share • Announced the proposed acquisition of 50% of the Joint Fuels Terminal in Dublin port, scheduled to complete Q2 • New franchise relationships developed with Freshii and 7-Eleven and a new Costa Café concept introduced to the UK market. 32 new food outlets opened • Net debt position at 31 December 2016 of €19m Adj. EBITDA Growth Site Growth 26% CAGR 243 18% CAGR 250 200 11 35 €32.0m 48 30 5 €28.9m 200 152 33 ROI PFS 25 33 €23.0m 8 25 150 UK PFS 20 18 71 60 Service Areas 15 54 100 Dealer 10 50 70 77 80 USA 5 0 0 2015 2016 Dec-14 Dec-15 Dec-16 2014 (1) EBITDA is defjned as earnings before interest, tax, depreciation, amortisation and impairment charges. Adjusted EBITDA refers to normalised trading EBITDA, being EBITDA adjusted for share based payments & non-recurring items
Applegreen plc 2016 Preliminary Results Presentation | Page 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 • Mix of own and international brands • Impulse/ ultra-convenience focus • Tailored offer by location 8 57 4 78 6 16 2 12 Number of Food Offers at 31 December 2016
2016 Preliminary Results Presentation | Page 7 2. Estate Growth and Development
Applegreen plc 2016 Preliminary Results Presentation | Page 8 Site Categories Service Area Sites Petrol Filling Stations (“PFS”) Motorway Service Areas (“MSA”) Company Owned • MSA’s are located on motorways with large facilities and • Traditional forecourt, store offer and food to go extensive parking and at least three food offers either own brand / Subway • MSA’s offer an own brand food and beverage offer • Relevant retail proposition built to reflect local (Bakewell & aCafé) and a range of internationally demographic recognised food brands - Burger King, Subway, Costa • Value offer in store built on own brand and Coffee, Greggs, Lavazza, Chopstix and Freshii promotion • Typically brown / green field developments • Ongoing rebrand / facility development Trunk Road Service Areas (“TRSA”) opportunities • TRSA’s are mid-size sites on trunk roads with seating Dealer areas and one to three food and beverage offerings • PFS owned by operator, 5 year fuel supply • High end stores with attractive ambiance agreements • Typically brown / green field developments • Fixed margin per litre to dealer MSA TRSA PFS
Applegreen plc 2016 Preliminary Results Presentation | Page 9 Republic of Ireland: Service Areas • 27 service areas in ROI including 9 MSA’s, 6 under 25 year Site Growth licence from Transport Infrastructure Ireland (“TII”) 30 27 • Four new TRSAs opened in ROI during 2016 25 23 • One new TRSA opened in February 2017 9 18 20 9 • Two new TRSAs to commence construction shortly (including one 15 redevelopment of an existing PFS) will open Q3 2017 8 10 • Strong pipeline of TRSAs in planning process 14 18 10 5 0 Dec-14 Dec-15 Dec-16 Birdhill MSA TRSA MSA Cap Ex ¤20.0 ¤18.5m ¤18.0 ¤16.0 ¤14.0 ¤12.9m ¤12.0 ¤10.0 ¤8.0 ¤6.9m ¤6.0 ¤4.0 ¤2.0 ¤0.0 2014 2015 2016
Applegreen plc 2016 Preliminary Results Presentation | Page 10 Republic of Ireland: PFS, Dealer and Fuelcard Petrol Filling Stations- company owned Site Growth • Five new PFS sites in ROI in 2016, one existing PFS upgraded to 140 a TRSA 128 120 110 • 70% of company owned estate in ROI now branded Applegreen 48 100 • 11 rebrands / upgrades completed during 2016 33 78 80 • One new PFS opened in 2017 and three additional PFS sites 8 24 27 60 subject to CCPC approval 30 40 • Healthy pipeline for 2017 56 50 20 40 0 Petrol Filling Stations - dealer owned Dec-14 Dec-15 Dec-16 • 15 new dealer sites opened in 2016 with four additional sites Applegreen Unbranded Dealer opened since year end • Dealer now accounts for 16% of ROI volumes Cap Ex ¤15.4m ¤16.0 ¤1.4m ¤14.0 Fuelcard ¤12.0 • Now accounts for 7% of ROI fuel volumes ¤4.2m ¤9.1m ¤10.0 • Positive and growing earnings ¤2.0m ¤8.0 ¤5.2m ¤6.0 • Extended to UK during 2016 ¤0.5m ¤4.1m ¤9.8m ¤4.0 ¤2.4m ¤2.0 ¤3.0m ¤2.3m ¤0.0 2014 2015 2016 New sites Rebrands Dealer
Applegreen plc 2016 Preliminary Results Presentation | Page 11 UK: Service Areas Service Areas Cap Ex and Year End Site Numbers • Six service areas in UK including two MSAs both in Northern Ireland • Award winning Lisburn site opened in March 2016 on M1 7 ¤15.0 ¤13.5m ¤13.1m Southbound in Northern Ireland 6 6 • Three TRSA sites opened in 2016 including two upgraded from 5 PFS sites ¤10.0 4 • Further MSA opened in Northern Ireland in February 2017 on M1 ¤6.5m 2 3 Northbound ¤5.0 2 • Good development of pipeline of both MSAs and TRSAs 0 ○ 1 Additional PFS upgraded to TRSA in February 2017 ○ Construction commenced on two TRSAs to open by Q3 ¤0.0 0 2014 2015 2016 2017. Further sites in planning process Capex- UK SA Capex- UK SA ○ Several potential MSA sites in the early stages of planning process Slade End TRSA Lisburn Southbound MSA
Applegreen plc 2016 Preliminary Results Presentation | Page 12 UK: PFS Petrol Filling Stations- Company Owned Site Growth • 13 new PFS sites in UK in 2016 with a balanced mix of leasehold and freehold sites 80 71 70 • Three new sites opened since 31 December 2016, good pipeline 60 54 60 • Seven rebrands/ upgrades completed during 2016 including two 50 47 upgraded to TRSAs 43 40 44 30 • 35% of the UK estate branded Applegreen at 31 December 2016 20 (up from 24% at IPO) 24 10 17 10 • Rebrand/ upgrade programme ongoing 0 Dec-14 Dec-15 Dec-16 Applegreen Unbranded Ipswich PFS Cap Ex ¤13.0m ¤14.0 ¤12.0 ¤4.5m ¤10.0 ¤8.6m ¤8.0 ¤2.8m ¤7.1m ¤6.0 ¤3.2m ¤8.5m ¤4.0 ¤5.8m ¤2.0 ¤3.8m ¤0.0 2014 2015 2016 New sites Rebrands
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