Applegreen plc 2015 Preliminary Results Presentation 14 th March 2016 Private and Confidential
This presentation contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of the preparation of this presentation. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward- looking statements. The Directors undertake no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise. 2
Agenda 1 Introduction & Highlights - Bob Etchingham 2 Development Review – Bob Etchingham 3 Financial Review – Paul Lynch 4 Outlook – Bob Etchingham 5 Q&A 3
1 Introduction & Highlights 4
Highlights 30% increase in gross profit on 2014 (26.5% in constant currency) Adjusted EBITDA 1 increased 26% from € 23.0m in 2014 to € 28.9m in 2015 Driven by: Continued expansion of the estate Strong LFL performance Further expansion in estate which has grown from 175 sites at 30 Jun 2015 to 200 at 31 Dec 2015 Continued investment in the development of the network with net capex of € 58.8m for full year Successful IPO raising € 66.3m for the company, net of expenses Net debt position at 31 Dec 2015 of € 4.7m Site Growth Adj. EBITDA Growth 35.0 26% CAGR 30% CAGR € 28.9m 250 30.0 200 5 € 23.0m 25.0 152 200 33 € 18.3m 2 119 20.0 25 150 8 18 15.0 14 60 100 54 42 10.0 50 77 5.0 70 63 0 0.0 2013 2014 2015 2013 2014 2015 Rep. of Ireland PFS UK PFS Service Areas Dealer USA (1) EBITDA is defined as earnings before interest, tax, depreciation, amortisation and impairment charges, Adjusted EBITDA 5 refers to normalised trading EBITDA, being EBITDA adjusted for share based payments, profit on disposal of assets, share of results of associates & non-recurring items
Applegreen Distinctive convenience retail offering in the forecourt sector “Low Fuel Prices Always” price promise “Better Value Always” tailored retail offer Food and beverage focus mix of own and international brands 43 15 10 4 8 1 tailored to suit location, time of day and customer types Number of Food Offers at 31 Dec 2015 6
2 Developments Review 7
Service Area Sites Overview Service Areas Service Area Sites fulfil at least 2 of the following 3 criteria: Located on a motorway or trunk road A seating area of at least 400 sq. ft. More than one food offering Motorway service Areas (MSA’s) Other Service Areas High end stores with attractive ambiance On motorway with large facilities and extensive parking Café environment with 1-3 food and beverage offerings – At least 3 food and beverage offerings – Own brand Subway, Burger King, Chopstix (Bakewell & aCafé), Costa Coffee, Burger King, Subway Typically brown / green field developments Greggs, Chopstix and Lavazza added in 2015 Birdhill, M7 Paulstown Motorway Service Area/M9 8
Service Area Developments UK Republic of Ireland 9 MSA’s operating in ROI First MSA in Northern Ireland opened in April 2015 on M2 north of Belfast, Crawley upgraded to Service Area in Q1 6 under 25 year licence from Republic of Ireland government Two additions since year end - MSA on M1 heading south of Belfast opened in March, Ballymena opened in January Opened Wicklow Service Area (M11) and Birdhill (M7) in 2014 as first company owned MSAs A further 2 MSA sites are expected to become operational in NI by the end of 2017 Latest MSA opened at Paulstown (M9) in December 2015 Developing pipeline, site secured subject to planning on 4 other service areas opened in ROI during 2015 A1(M), others in process Two further service areas since year end, good pipeline in planning process 30 Site Numbers - Service Areas Cap Ex - Service Areas 20 € 18.5m 25 25 18 16 20 18 € 13.5m 14 € 12.8m 15 Other Service Areas Millions 12 ROI 15 10 10 UK Motorway Service Areas 8 10 € 6.5m 6 4 5 10 8 2 0 0 2014 2015 2014 2015 9
Service Areas Sites M2 Templepatrick (NI) Tuam Road, Galway (ROI) Mountgorry (ROI) Paulstown, M9 (ROI) 10
Petrol Filling Stations Republic of Ireland Traditional forecourt and shop offer Food to go either own brand / Subway Relevant retail proposition built to reflect local demographic Value offer in shop built on own brand and promotion Significant rebrand / facility development opportunities Ballinteer (ROI) UK Tight retail proposition with focus on relevant product offer Limited grocery Alcohol a significant feature Continuing rollout of food offer (mainly Subway / Greggs) delivering strong incremental contribution Ipswich (UK) Significant rebrand / facility development opportunities U.S. 5 forecourts all based in Long Island with 3 added in 2015 3 sites now rebranded Applegreen Larger site opened in October, finalising plan for franchise partnership In discussion to extend trial to Massachusetts with partner Plainview (US) 11
Petrol Filling Station Developments Republic of Ireland UK Seven new PFS sites in ROI in 2015 Seven new PFS sites in UK in 2015 Three additions since year end, good pipeline Three new sites since 31 December 2015, strong pipeline 65% of estate in ROI now branded Applegreen 24% of the UK estate now branded Applegreen Ten rebrands completed during the year Seven rebrands completed during the year, one upgrade to Service Area 12
Dealer & Fuelcard Dealer Fuelcard Typically 5 year fuel supply agreements Targeting commercial customers using greater than 500 litres per month Fixed margin per litre to dealer Most competitive fuel card on the market – no card fees / Applegreen determines pump price hidden charges Increases the Applegreen footprint nationwide Online account management tool / Support team Now accounts for 9% of ROI fuel volumes Now accounts for 4% of ROI fuel volumes Positive contribution to EBITDA in 2015 Modest but growing earnings profile 13
3 Financial Performance 14
Profit and Loss Account 2015 2014 30.4% growth in gross profit €m €m % Var leading to 25.7% growth in Revenue 1,081.5 937.3 15.4% adjusted EBITDA Gross Profit 125.9 96.6 30.4% Selling & Distribution Costs (78.5) (61.5) Growth in S&D in line with scale Administrative Expenses (19.5) (13.1) of business Other income 1.0 1.0 Adjusted EBITDA 28.9 23.0 25.7% Finance costs include FX loss on Depreciation (8.6) (6.0) translation of Stg£ loan Finance Costs, net (2.5) (2.5) Adjusted PBT 17.7 14.5 22.1% Increase in admin largely Tax (Adjusted) (2.1) (1.5) reflects addition to support Adjusted PAT 15.6 13.0 20.0% functions in late 2014, early 2015 Adjusted EBITDA 28.9 23.0 25.7% Share Based Payments (2.7) (0.3) Non recurring charges in 2015 Non-recurring charges (1.1) 0.7 comprise shareholder payment Reported EBITDA 25.1 23.4 7.4% to staff and tax provision Adjusted EPS (cents) 22.22 21.73 2015 EPS calculated on expanded share capital (wtd. ave.) 15
Revenue and Gross Profit Analysis Total gross profit of € 125.9m reflecting L4L Growth growth of 30.4% from prior year 2015 2014 @ const curr. €m €m Growth % % LFL gross profit growth at constant currency of 4.6% Fuel Revenue 879.3 779.0 12.9% -12.1% Food Revenue 67.5 46.4 45.5% 15.9% Strong growth in food gross profit at Store Revenue 134.7 111.9 20.4% 0.0% 49.2% and strong LFL performance. Total Revenue 1,081.5 937.3 15.4% -9.2% LFL growth in non fuel revenue and gross profit at constant currency amounts to Fuel Gross Profit 49.0 38.6 26.9% 1.3% 4.5% and 6.8% respectively Food Gross Profit 37.9 25.4 49.2% 18.7% Store Gross Profit 39.0 32.5 20.0% -1.9% Fuel gross profit increased by 1.3% on a Total Gross Profit 125.9 96.5 30.5% 4.6% LFL constant currency basis 16
Geographical Revenue and Gross profit mix 2015 Revenue and Gross Profit by geography UK as a region accounts for 28% of total gross margin for the period Continued evolution of mix of gross profit Food accounts for 30% of gross profit 36% in ROI up from 32% in 2014 o 16% in the UK compared to 8% in the o prior year Gross Profit Mix - UK Gross Profit Mix - ROI 17
Gross profit- Fuel Continued volatility in oil prices creates challenges but net impact on margins is limited Oil price changes passed through to consumer Relative UK and ROI LFL gross profit performance explained by: Strong 2014 comparison in ROI o Impact of weaker Euro reduced benefit of falling o $ oil price in ROI No major changes in competitive fuel environment in UK or Ireland Gross Profit Gross Profit Growth Growth LFL @ const curr. % % Ireland 19.3% -0.6% UK 37.4% 4.9% Total 26.9% 1.2% 18
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