Q2 / H1 2024 Results
English – 8 August 2024
ADNOC Classification: Public Q2 / H1 2024 RESULTS PRESENTATION INVESTOR &ANALYST CONFERENCECALL 8 August 2024 ADNOC DISTRIBUTION
ADNOC Classification: Public Agenda 01EXECUTIVE 02STRATEGY 03Q2 / H1 2024 04CLOSING SUMMARY UPDATE RESULTS REMARKS 2 © ADNOC Distribution
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 future. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative thereof, or other comparable terminology. These forward-looking statements and other statements contained in this communication regarding matters that are not historical facts involve predictions and are based on the beliefs of our management, as well as the assumptions made by, and information currently available to, our management. Although we believe that the expectations reflected in such forward looking statements are reasonable at this time, we cannot assure you that such expectations will prove to be correct. Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all of the fuel products that we sell; an interruption in the supply of fuels to us by ADNOC; changes in the prices that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the UAE; failure to successfully implement our operating initiatives and growth plans, including our mixed-mode service offering, our convenience store optimisation initiatives, our cost savings initiatives, and our growth plans; competition in our markets; decrease in demand for the fuels we sell, including due to general economic conditions, improvements in fuel efficiency and increased consumer preference for alternative fuels; the dangers inherent in the storage and transportation of the products we sell; our reliance on information technology to manage our business; laws and regulations pertaining to environmental protection, operational safety, and product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate our business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new policies, practices, systems and controls that we implemented in connection with or following our IPO; any inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political conditions in Abu Dhabi and elsewhere in the UAE; instability and unrest in regions in which we operate; the introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed in our International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the listing of our shares on the Abu Dhabi Securities Exchange, and from time to time in our other investor communications. Except as expressly required by law, we disclaim any intent or obligation to update or revise these forward-looking statements. 3 © ADNOC Distribution
ADNOC Classification: Public 01 EXECUTIVE SUMMARY SPEAKER: ATHMANE BENZERROUG CHIEF STRATEGY, TRANSFORMATION & SUSTAINABILITY OFFICER ADNOC DISTRIBUTION
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Focus on sustainable growth and transforming our service stations into destinations of choice ADNOC Distribution equity story Track record of shareholder Solid performance and Focus on delivering value creation cashflow visibility sustainable growth Value creation since IPO: Demonstrable solid business 2024-28 strategy unveiled in Feb’24 Total shareholder return: performance reinforced by strong with the ambition to establish ADNOC Distribution as a multi-energy, c.$7.0 billion (+85%) H1’24 operating and financial results Predictable cash flow generation convenience and mobility leader Robust 5-year ROCE of over 25% supported by robust regulatory Doubling-down on non-fuel retail driven by efficient capital allocation framework, industry-leading margins offerings and transforming our service and value-accretive investments and limited exposure to oil price stations into destinations-of-choice Attractive 2024-28 dividend policy volatility Accelerating sustainable and profitable supported by visible cashflow profile Supportive and committed majority growth domestically and internationally and strong balance sheet: shareholder ADNOC: 5-year supply through efficient capital allocation $700 million or min. 75% of net profit, contract with a retail margin Leveraging on AI and advanced whichever is higher guarantee protecting against technology to deliver incremental (offering a 6.0% dividend yield)1 inventory losses while providing growth through identified initiatives, exposure to inventory gains efficiency improvements and enhanced Significant share liquidity Strong balance sheet with ample customer experience free float of 23% and part of MSCI liquidity supports growth prospects Futureproofing the business by EM and FTSE EM indices and enables attractive shareholder unlocking new revenue streams distributions offered by energy transition (incl. EV charging) and pursuing sustainability goals 5 © ADNOC Distribution 1. Subject to the Board and Shareholders’ approval
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Q2 / H1 2024 key achievements & 2024 outlook Strong quarter driven by double-digit growth in non-fuel retail and volumes and higher Rewards customers Robust operating performance Double-digit growth in key Q2’24 Outlook: focus on disciplined growth, financial results technology and innovation Allocate capital towards growth and Network and EV charging infrastructure Key Q2’24 profitability drivers: UAE/KSA: 603 stations network expansion, growing mobility, deliver incremental shareholder value. higher number of fuel and non-fuel Doubling down on NFR: upscaling NFR (H1’23: 575) transactions, efficiency improvements and offerings to transform our stations into Egypt: 244 stations a positive impact of inventory gains destinations-of-choice UAE fast and superfast EV charging Gross profit: +11% Y-o-Y Future proofing the business: 150-200 points: >100 (Dec’23: 53) profitable fast and super-fast EV charging Record Q2 / H1 fuel volumes sold NFR gross profit: +13% Y-o-Y points by the end of 2024 Q2’24: +4.1% Y-o-Y (UAE/KSA: +4.7%) EBITDA: +15% Y-o-Y Leverage AI and advanced data analytics H1’24: +10.4% Y-o-Y (UAE/KSA: +7.0%) Net profit: +13% Y-o-Y to enhance customer experience and Net profit excl. tax impact: +25% Y-o-Y improve operational efficiency Strong non-fuel retail growth in Q2’24 Network expansion target: 15-20 new UAE non-fuel transactions: +10.9% Y-o-Y Free cash flow: $330 million stations in 2024 (10 added in H1’24) Highest UAE convenience store Industry-leading ROCE: 29.0% Pursue organic growth with a CAPEX 1 conversion rate in four years: Strong balance sheet: plan of $250-300 million in 2024 26.1% (Q2’23: 24.8%) 0.53x net debt/EBITDA based on Strong momentum in ADNOC Rewards 2 Explore inorganic growth opportunities $1.07 billion LTM EBITDA through value-accretive transactions +21% Y-o-Y to 2.1 million members (2023: 0.62x) 6 © ADNOC Distribution 1. Number of convenience stores transactions divided by number of fuel transactions at sites with convenience stores. 2. LTM – last 12 months
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix AI & Digital Strategy Delivery of use cases provides support to new growth strategy execution Operations Convenience stores Customers Fuel Demand prediction Intelligent assortment Personalized offers forecast fuel sales to support inventory suggest products for C-stores based on data tailor offers for customers to increase their LTV replenishment Lube automation Dynamic pricing Customer segmentation predict lube demand & automate recommend the best price at SKU level intelligently segment customers based on attributes replenishment orders Smart work force optimization Inventory optimization Customer acquisition – real time optimize operational cost of service stations predict optimal inventory for SKUs at C-store uplift NFR sales using data by expanding user base locations Surveillance analytics C-store segmentation Car wash and lube change detect and reduce potential retail fraud scenarios segment C-stores based on internal & external data predict which customer is likely to convert at a station 7 © ADNOC Distribution
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Sustainability is at the core of our day-to-day operations Explore our 2023 Key strategic initiatives 2023 achievement ESG Report Energy optimization Reduce energy use across our assets through ~10% efficient systems and optimized building designs PV solar reduction in Scope 1 and Scope 2 emissions compared to 2022 Grow network of solar-powered service stations Biofuel 2030 Target Introduce biofuel in 100% of ADNOC Distribution supply chain vehicles 25% Fleet management reduction in Scope 1 & Scope 2 emissions Introduce real-time fleet tracking to improve fuel intensity by 2030 compared to 2021 baseline efficiency Tomorrow Becoming the partner of choice for sustainable mobility solutions 8 © ADNOC Distribution
ADNOC Classification: Public 02 GROWTH STRATEGY UPDATE SPEAKER:BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Committed to 100% HSE H1 2024 HSE performance ADNOC Distribution is committed to maintaining the highest standards of safety in delivering its product and services 0.095 mmhrs (1) TRIR Zero Zero fatalities catastrophic events 10 © ADNOC Distribution 10 ADNOC Distribution 1. Total Recordable Injury / Illness Rate (in million manhours)
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Key strategic update Fuel business Growth in fuel volumes sold in GCC (UAE and KSA) H1’24: +7.0% Y-o-Y (Q2’24: +4.7% Y-o-Y) ✓ Retail fuel: H1’24: +5.4% Y-o-Y (Q2’24 +3.9% Y-o-Y) ✓ Commercial: H1’24: +10.1% Y-o-Y (Q2’24 +6.3% Y-o-Y) ✓ Fuel deliveries fully restored post adverse weather impact in April Total fuel volumes (incl. Egypt): H1’24: +10.4% Y-o-Y (Q2’24: +4.1% Y-o-Y) ✓ Retail fuel: H1’24: +10.4% Y-o-Y (Q2’24 +3.9% Y-o-Y) ✓ Commercial: H1’24: +10.5% Y-o-Y (Q2’24 +4.6% Y-o-Y) Network: +10 new stations in H1’24 (total: 847) ✓ UAE 534 (+6), incl. 45 in Dubai (+1) ✓ KSA 69 (+2), incl. c.85% renovated ✓ Egypt1 244 (+2), incl. 10 ADNOC-branded 11 © ADNOC Distribution ADNOC Distribution 1. Through acquisition of 50% of TotalEnergies Marketing Egypt completed in February 2023
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Key strategic update Non-fuel retail business Double-digit growth in non-fuel retail segment gross profit ✓ Supported by convenience stores, car wash and other car services: H1’24: +15% Y-o-Y (Q2’24: +13% Y-o-Y) ✓ Number of non-fuel transactions (UAE): H1’24: +9% Y-o-Y (Q2’24: +11% Y-o-Y) ✓ 5 new stand-alone convenience stores to capture non-fuel retail opportunities outside of service stations ✓ 2 new high-capacity car wash tunnels launched in H1, with plans to open additional tunnels by the end of 2024 ✓ Aim to double the number of property units occupied by top international and regional food & beverage brands by the end of 2025 Convenience store segment (GCC) ✓ Gross profit: H1’24 +13% Y-o-Y (Q2’24 +14% Y-o-Y) 1 ✓ Highest conversion rate in 4-years in Q2’24 (26.1%) ✓ Average gross basket size: Q2’ 24 +2.2% Y-o-Y to $7.2 12 © ADNOC Distribution ADNOC Distribution 1. Number of convenience stores transactions divided by number of fuel transactions at sites with convenience stores
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Future proofing our business Leading mobility and energy transition EV charging infrastructure ✓EV strategy promotes clean mobility solutions and unlocks new revenue streams ✓ADNOC Distribution pursues leadership on the growing UAE EV charging market and offers best customer journey ✓Doubled fast and super-fast EV charging points across service station network at strategic locations to 104 (vs. 53 at end of 2023) to address current EV customer demand ✓Target to reach 150-200 EV charging points through a disciplined rollout by the end of 2024 Hydrogen step in ✓Firsthand experience to set-up and operate a high-speed green hydrogen pilot refuelling station ✓Technical, analytical and operational learnings to provide good base for future large-scale expansion ✓Actively participating in the H2 vision for Abu Dhabi 13 ADNOC Distribution 13 © ADNOC Distribution
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix ADNOC Rewards A key driver for incremental growth through enhanced customer experience and loyalty 2.1m Tier system with 350k members personalized enrolled in the past rewarding experience 12 months +21% Y-o-Y >120 partners providing attractive offers to ADNOC Rewards members 14 © ADNOC Distribution ADNOC Distribution
ADNOC Classification: Public 03 Q2 / H1 2024 RESULTS SPEAKER:WAYNE BEIFUS CHIEF FINANCIAL OFFICER ADNOC DISTRIBUTION
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Operating performance Momentum continues in fuel and non-fuel businesses Total fuel volumes (mL) Fuel volumes, UAE and KSA (mL) Number of service stations 816 847 6,539 7,222 5,310 5,682 241 244 2,002 2,211 1,783 1,962 64 69 42 45 4,537 5,011 3,528 3,720 469 489 1H23 1H24 1H23 1H24 1H23 1H24 Retail Commercial Retail Commercial Abu Dhabi & NE Dubai KSA Egypt Fuel transactions, UAE, m Non-fuel transactions, UAE, m C-store conversion rate, UAE, % 87 92 24 22 % % % % .1% % % .4 .8 .2% 5.4 .5 6 % .4 % % 3.8 24 24 4 2 24 2 .02 .2% .3% 22 1.8 % 1.3 2 2 2 20 20 2 9.8 2 1 21 21 21 21 22 22 22 22 23 23 23 23 24 24 1H23 1H24 1H23 1H24 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 16 © ADNOC Distribution
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Financial performance Strong business growth coupled with OPEX optimization resulting in significantly higher EBITDA and Net profit, despite introduction of UAE Corporate Tax in 2024 Double digit growth in EBITDA and underlying EBITDA in H1’24 ($m)… … as well as in Q2’24 ($m) 515 267 450 232 232 443 204 407 1H23 1H24 1H23 1H24 2Q23 2Q24 2Q23 2Q24 EBITDA Underlying EBITDA EBITDA Underlying EBITDA Growth in net profit in H1’24 ($m) Double-digit growth in Q2’24 net profit before and after the UAE tax ($m) 352 187 319 170 296 296 150 150 1H23 1H24 1H23 1H24 2Q23 2Q24 2Q23 2Q24 Net profit incl. UAE tax Net profit excl. UAE tax Net profit incl. UAE tax Net profit excl. UAE tax 17 © ADNOC Distribution
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Double-digit growth in gross profit across all operating segments $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) Retail (B2C) 325 293 10.7% 636 559 13.6% of which fuel 269 244 10.1% 525 463 13.4% of which non-fuel1 56 49 13.5% 110 96 14.8% Retail margin, % 19.7% 19.1% 19.7% 18.8% Commercial (B2B) 95 84 12.3% 187 163 15.0% of which Corporate 74 65 12.5% 145 129 12.6% of which Aviation 21 19 11.6% 42 34 24.1% Commercial margin, % 12.8% 12.5% 12.0% 11.4% Total 420 378 11.0% 823 722 13.9% ✓Total gross profit: Q2’24 +11% Y-o-Y H1 2024 gross profit split ✓Fuel retail gross profit driven by volume growth and inventory gains Commercial (B2B) - Aviation of $35 million in Q2’24 ($22 million in Q2’23) ✓Non-fuel retail gross profit supported by growth in number of Commercial (B2B) 5% transactions, record-high convenience store conversion rate in four - Corporate 18% years, upgrade of the car wash offering and new initiatives in the $823m property management segment to drive rent income 14% 64% Retail non-Fuel Retail Fuel ✓Commercial gross profit driven by growth in corporate fuel volumes (B2C) (1) (B2C) on the back of new contracts signed in 2023 and H1 2024 18 ADNOC Distribution © ADNOC Distribution 1. Includes convenience stores, car wash, lube change, property management and vehicle inspection
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix OPEX update OPEX pressures from increasing network footprint fully offset via ongoing Optimization Program Other1 11% Utilities 8% Q2 2024 cash OPEX split Distribution 3% ($154m) & marketing Repairs, 8% maintenance & 71% consumables Staff costs ✓ ADNOC Distribution successfully executed management initiatives to increase operational efficiency across all business units ✓ Q2’24 cash OPEX (excl. one-off items) declined by 3% Y-o-Y despite a 4% growth in the Company’s network ✓ H1’24 like-for-like OPEX savings: $10 million ✓ On track to reduce like-for-like OPEX by up to $50 million by 2028 19 © ADNOC Distribution ADNOC Distribution 1. Other costs include lease cost, bank charges, insurance, subscriptions, legal fees, consultancies, etc.
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix EBITDA by operating segment $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) Retail (B2C) 201 165 21.4% 374 314 19.4% Retail margin, % 12.2% 10.7% 11.6% 10.6% Commercial (B2B) 67 68 -0.7% 138 128 7.7% of which Corporate 49 50 -2.6% 99 96 3.6% of which Aviation 18 18 4.5% 39 32 19.8% Commercial margin, % 9.1% 10.0% 8.9% 9.0% 1 NM 2 1 NM Unallocated -1 -1 Total reported EBITDA 267 232 15.0% 515 443 16.2% Underlying EBITDA2 232 204 13.8% 450 407 10.4% NM: Not meaningful ✓EBITDA: Q2’24 +15% Y-o-Y driven by strong growth across all H1 2024 EBITDA split businesses and positive impact of inventory gains Commercial ✓Retail segment: +21% Y-o-Y supported by growth in volumes, (B2B) - aviation NFR business and positive impact of inventory gains 8% Commercial 19% ✓Commercial segment: EBITDA -1% Y-o-Y, underlying EBITDA (B2B) - +7.2% Y-o-Y due to a one-off benefit in prior year numbers corporate $515m1 Retail (B2C) - ✓Underlying EBITDA: Q2’24 +14% Y-o-Y supported by volumes 73% fuel and non- growth, higher contribution from non-fuel retail business, fuel international assets and delivery of OPEX reduction initiatives 20 ADNOC Distribution 1. Includes unallocated amount of $2 million (other operating income/expenses not allocated to a specific segment) © ADNOC Distribution 2. Underlying EBITDA is defined as EBITDA excluding inventory movements and one-offs
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Cash generation Robust cash generation driven by Strong EBITDA and Working Capital Management Net debt / 0.62x Free cash flow of $488 million 0.53x EBITDA 121 (148) 22 (104) 515 (350) 870 925 Cash at Dec 2023 * Cash flow from Working capital Capex Paid Interest Received Finance cost Dividend Paid Cash at Jun 2024 * operations movements & Translation ✓ H1’24 operating cash flow of $636 million and free cash flow of $488 million, up 47% Y-o-Y ✓ FCF excl. the effect of working capital changes of $367 million, up 9% Y-o-Y supported by underlying positive financial performance ✓ Strong balance sheet (net debt / EBITDA 0.53x) offers sufficient room to invest into growth while sustaining attractive dividend policy 21 © ADNOC Distribution * Cash includes term deposits with banks
ADNOC Classification: Public 04 CLOSING REMARKS SPEAKER:BADER SAEED AL LAMKI CHIEF EXECUTIVE OFFICER ADNOC DISTRIBUTION
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Closing remarks Deliver incremental growth with a focus on operational excellence and futureproofing our business Strong execution Deliver incremental and Attractive shareholder momentum in Q2 2024 sustainable growth distribution ✓ +10 new stations in H1’24, on track to ✓ Invest in highly attractive and growing ✓ Proven track-record of shareholder achieve 15-20 new stations in 2024 core UAE fuel distribution market value creation since IPO ✓ Network: 847 stations, incl. 244 in Egypt ✓ Shift capital allocation towards ✓ 2024-28 dividend policy: ✓ Doubled the number of EV charging convenience & mobility ▪ $700 million or min. 75% of net profit points across service station network ✓ Transform service stations into whichever is higher* vs. end of 2023 to >100 destinations-of-choice ▪ offers payback visibility and dividend ✓ EBITDA and net profit: ✓ Sustainable mobility: drive customer upside from future earnings growth +15% and +13%, respectively choice for EV charging on the go ✓ $350 million H1’24 dividend expected ✓ Net profit excl. UAE tax impact: +25% ✓ Decarbonization: 25% carbon intensity to be paid in October 2024** ✓ Free cashflow $330 million reduction target by 2030 23 © ADNOC Distribution * Subject to the discretion of the Board and Shareholders’ approval ** Subject to the Board approval
ADNOC Classification: Public Executive Summary Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Q&A Bader Saeed Al Lamki Wayne Beifus Athmane Benzerroug Chief Executive Officer Chief FinancialOfficer Chief Strategy, Transformation & Sustainability Officer © ADNOC Distribution
ADNOC Classification: Public ADNOC DISTRIBUTION Q2 / H1 2024 RESULTS PRESENTATION [email protected] ADNOC DISTRIBUTION ADNOCDISTRIBUTION
ADNOC Classification: Public Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Executive Summary Q1 2024 Financial Results Operating performance million liters Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) H1 2024 Retail (B2C) 1,851 1,781 3.9% 3,720 3,528 5.4% 5.7 billion liters Fuel volumes Commercial (B2B) 931 875 6.3% 1,962 1,783 10.1% fuel volume sold in (UAE / KSA) of which Corporate 891 814 9.4% 1,874 1,677 11.7% UAE / KSA of which Aviation 40 62 -34.5% 89 106 -16.2% TOTAL 2,782 2,657 4.7% 5,682 5,310 7.0% Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) 603 Retail fuel Service stations – UAE 534 511 4.5% 535 511 4.7% retail fuel sites in operating Service stations – Saudi Arabia 69 64 7.8% 69 64 7.8% UAE / KSA metrics Service stations – Egypt 1 244 241 1.2% 244 241 1.2% Fuel transactions – UAE (m) 46.9 44.1 6.4% 92.2 86.6 6.5% Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) 365 Retail non-fuel Convenience stores – UAE 365 351 4.0% 365 351 4.0% convenience stores operating 2 12.2 11.0 10.9% 23.5 21.6 8.9% in the UAE Non-fuel transactions – UAE (m) metrics Conversion rate, C-stores, % 26.1% 24.8% 25.3% 24.6% Average gross basket size ($) 3 7.2 7.0 2.2% 7.3 7.2 2.3% 26 © ADNOC Distribution 1. Acquisition of a 50% stake in TotalEnergies Marketing Egypt completed in February 2023. 2. Includes convenience stores, car wash and oil change transactions 3. Calculated as convenience store revenue (including revenue from consignment items shown under other operating income) divided by number of convenience store transactions
ADNOC Classification: Public Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Executive Summary Q1 2024 Financial Results Financial performance $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) H1 2024 Revenue 2,392 2,214 8.0% 4,774 4,392 8.7% $515 million Gross profit 420 378 11.0% 823 722 13.9% EBITDA Gross margin, % 17.5% 17.1% 17.2% 16.4% Financial EBITDA 267 232 15.0% 515 443 16.2% performance EBITDA margin, % 11.1% 10.5% 10.8% 10.1% 1 Underlying EBITDA 232 204 13.8% 450 407 10.4% Underlying EBITDA margin, % 9.7% 9.2% 9.4% 9.3% $319 million Net profit attributable to 170 150 12.9% 319 296 7.7% equity holders Net profit Net profit excl. UAE tax impact 187 150 24.5% 352 296 18.8% Free cash flow generation $m Q2 2024 Q2 2023 YoY (%) H1 2024 H1 2023 YoY (%) Cash generation Free cash flow2 330 47 596.1% 488 333 46.7% and leverage Net debt/EBITDA, x 0.53 1.13 $488 million High financial returns Free cash flow Q2 2024 Q2 2023 3 Profitability ROCE (%) 29.0% 24.3% 4 ROE (%) 80.8% 70.1% 27 © ADNOC Distribution 1. Underlying EBITDA is defined as EBITDA excluding inventory movements and one-off items 2. Free cash flow is calculated as net cash generated from operating activities less payments for purchase of property, plant & equipment, and advances to contractors 3. Return on Capital Employed 4. Return on Equity
ADNOC Classification: Internal Strategy Update Q2 & H1 2024 Financial Results Closing Remarks Appendix Executive Summary Our Share Ownership Structure ADNOC Distribution shares are listed on the Abu Dhabi securities Exchange (ADX) under the symbol “ADNOCDIST” ADNOC Distribution Share ownership structure* ADNOC owns 77%, while Free 23% of ADNOC Distribution Float, 23% outstanding shares are publicly owned by 12.5 bn institutional and retail outstanding investors (free float) shares *As of 7 August 2024 ADNOC, 77% 28 © ADNOC Distribution