Valvoline : Fourth Quarter 2024 Presentation

Published: 2024-11-19 08:58:04 ET VVV

Fourth Quarter

Fiscal 2024 Earnings

Lori Flees, CEO & President

Mary Meixelsperger, CFO

Elizabeth Clevinger, Investor Relations

11.19.2024

KEY MESSAGES

Our performance is driven by a market-leading position and our competitive

1. Refer to the Appendix for further information regarding management's use of key business measures. Management plans to revise its approach to determining SSS beginning in fiscal 2025 to define same stores as those that have been in operation within the system for at least 12 full months.

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FISCAL YEAR 2024 KEY HIGHLIGHTS

Best-in-Class Retail Service Provider Focused on Growth

$3.1B

18 Years

2,010

System-wide Store Sales1

Of System-wide Same

System-wide Stores1

Increased 12% YoY

Store Sales (SSS) Growth1

with 9% Annual Growth

28M+

Ranked

53%

#18

System-wide

Transactions1

Forbes Best Customer

Franchised Stores

Service2

$1.6B

$443M

27.3%

Net Revenues

Adjusted3 EBITDA

Adjusted3 EBITDA Margin

Increased 12% YoY

Increased 17% YoY

100 bps YoY Improvement

1. Refer to the Appendix for further information regarding management's use of key business measures.

2. Based upon Forbes' Best Customer Service 2025 list.

3. For a reconciliation of adjusted amounts to amounts reported under GAAP, please refer to the Appendix.

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CONSISTENT TRACK RECORD OF FINANCIAL PERFORMANCE

Store Count1

System-Wide Same Store Sales1 Growth

'16 - '24 CAGR: 8%

2,010

1,852

1,594

1,715

21%

1,462

1,385

1,242

950

1,127

876

1,068

790

14%

519

584

719

Average: 10%

10%

12%

342

384

462

9%

8%

8%

7%

866

878

875

925

976

1060

726

743

780

2%

2016

2017

2018

2019

2020

2021

2022

2023

2024

2016

2017

2018

2019

2020

2021

2022

2023

2024

Franchise

Company

($ millions)

System-Wide Store Sales1

($ millions)

Adjusted2 EBITDA

'16 - '24 CAGR: 17%

'21 - '24 CAGR: 17%

$443

3,104

2,762

$380

2,360

1,426

$316

1,970

$277

1,258

1,419

1,520

1,052

1,161

862

$166

880

1,024

590

530

351

453

1,678

289

1,108

1,309

1,504

673

708

889

930

591

2016

2017

2018

2019

2020

2021

2022

2023

2024

2020

2021

2022

2023

2024

Franchise

Company

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EXECUTED AT A HIGH LEVEL IN FY 2024

FY 2024

FY 2024

Guidance1

Adjusted2 Results

Net Revenues

$1.6B - $1.65B

$1.62B

Store Additions3,4

140

- 170

158

Company

85-100

97

Franchise

55-70

61

SSS4

6%

- 8%

6.7%

Adj.2 EBITDA

$430M - $455M

$442.6M

Adj.2 EPS

$1.45

- $1.65

$1.57

Capital

$185M

- $215M

$224.4M

Expenditures

1.

Based on updated guidance provided May 2024.

2.

For a reconciliation of adjusted amounts to amounts reported under GAAP, please refer to the Appendix.

3.

Company and Franchise additions do not include company/franchise conversions that occurred during FY24.

4.

Refer to the Appendix for further information regarding management's use of key business measures.

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PROVEN FORMULA FOR VALUE CREATION

Long Runway For Delivering Shareholder Value

Strategic Priorities

TALENT & CULTURE

TECHNOLOGY

OUR PROVEN FORMULA FOR GROWTH

Long-term

Same Store Sales

New Stores

Service Expansion

Shareholder Value

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DRIVING FULL POTENTIAL IN EXISTING BUSINESS

Source of New VIOC Customers1

Quick

Lubes DIY

Dealership

Tire & Auto

Services

Company Store New Build

Revenue Ramp

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Mature Company Store2

Revenue & EBITDA - Per Store

1.7M

1.1M

FY19FY24

Net Sales

EBITDA

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ACCELERATING NETWORK GROWTH

Store Additions1

Company

Franchise

48

49

Ground-up Additions

Company Franchise

Gross Store Additions1

Company Franchise

35

38

38

31

33

23

102

82

54

121

158

137

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2023 2023 2023 2023 2024 2024 2024 2024

FY22 FY23 FY24

FY22 FY23 FY24

1. Store additions are presented without the impact of company/franchise conversions during each period. Refer to the Appendix for further information regarding management's use of key business measures.

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Disclaimer

Valvoline Inc. published this content on November 19, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 19, 2024 at 13:57:06.664.