Investor Overview

ADNOC Distribution offers investors an unique value proposition, with a solid business model, focus on delivering sustainable earnings growth and offering attractive payback to shareholders

Investor Overview

Company Overview

ADNOC Distribution is the leading mobility retailer in the UAE and has been providing energy for customers’ journeys since 1973. Since its inception the Company has been at the forefront of delivering the best in customer service. Today, ADNOC Distribution enables, enhances, and energizes every customer journey thanks to digitally enabled and innovative customer experiences, as well as high-quality non-fuel retail products.

The Company operates service stations in all seven Emirates in the UAE, as well as Saudi Arabia and more recently, Egypt. While completing its 51st year, ADNOC Distribution currently has more than 896 service stations; 551 in the UAE, 100 in KSA and 245 in Egypt through the acquisition of a 50% stake in TotalEnergies Marketing Egypt LLC (TEME).

Furthermore, as a non-fuel retail leader in the UAE, ADNOC Distribution operates 373 ADNOC Oasis convenience stores locally, 35 vehicle inspection centers, and other leading services spanning car wash, lube change, and EV charging, in addition to managing and leasing retail space within its service stations to restaurants and other service providers. The Company is also the leading marketer and distributor of fuels to commercial, industrial, and government customers throughout the UAE and sells its proprietary lubricants in 46 countries worldwide via distributors. ADNOC Distribution aims to be the mobility retailer of choice, enabler of sustainable mobility, and provider of exceptional customer experiences.

ADNOC Distribution Unique Value Proposition

Solid business performance and cash flow visibility

• Demonstrable solid business performance reinforced by strong 2024 operating and financial results with over 28% ROCE
• Predictable cash flow generation supported by robust regulatory framework, industry-leading margins in the UAE and limited exposure to oil price volatility.
• 5-year supply contract with ADNOC, offering a retail margin guarantee which protects against inventory losses while providing earnings upside from inventory.
• Strong balance sheet with ample liquidity supports growth prospects and attractive shareholder distributions.

Deliver incremental and sustainable growth

• Establish ADNOC Distribution as a multi-energy, convenience and mobility leader.
• Deliver EBITDA growth in 2024-28 through identified key strategic initiatives and focus areas, including doubling down on non-fuel retail and sweating the assets.
• Accelerate sustainable and profitable growth domestically and internationally through efficient capital allocation.
• Futureproof the business by unlocking new revenue streams offered by energy transition (incl. EV charging) and pursuing sustainability goals.
• Accelerate digital transformation to create incremental value and enhance customer loyalty.
• Unlock hidden value through OPEX initiatives.

Deliver higher shareholder payback

• Proven track-record of shareholder value creation since IPO.
• Attractive dividend policy supported by visible cash flow profile and strong balance sheet.
• New 2024-28 dividend policy $700m or min. 75% of net profit whichever is higher, providing payback visibility and dividend upside from future earrings growth.

Key Financials

USD 756 Million

2024 Free cash flow

USD 700 million

2024 Full-year dividend

USD 1,049 Million

2024 EBITDA

0.69x

Net debt to EBITDA at end of 2024

USD 9,653 Million

2024 Revenue

USD 659 Million

2024 Net Profit

CEO Message

“ADNOC Distribution’s strong performance in 2024 underscores our strategic focus on delivering value for both our customers and shareholders. By driving operational efficiency, embracing digital transformation, and expanding our market presence, we are well-positioned to achieve the ambitious goals of our five-year strategy”

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ADNOC Distribution Strategy

Our strategy focuses on driving sustainable earnings growth and attractive returns for shareholders

Vision:

To become a leading customer-centric, international mobility retailer.

Purpose:

Provide world-class customer experience through compelling fuel & non-fuel offerings, digital integration, and innovation to transform ADNOC Distribution stations as a destination-of-choice.


a) Deliver profitable domestic growth

Retail: enhance returns of core assets

• Leverage on highly attractive and growing core UAE energy market

• Reallocate capital towards convenience and mobility to transform our stations as destinations of choice

Commercial: continue to grow market share while driving enhanced margins

 

b) Build international platforms;

Retail: expand the assets

• KSA: well-positioned to capitalize on evolving market

• Egypt: maximize earnings potential

• New accretive markets

Lubricants & LPG: scale-up business to create new growth verticals


c) Futureproofing & new revenue streams

• Electric vehicles: access premium-margin on-the-go EV charging value pool

• Decarbonization: achieve 25% reduction in scope 1 & 2 emissions intensity by 2030

• Alternative fuels: biofuels & pilot hydrogen

• Mobility solutions: monitor key trends

 

Enablers

• Robust Operating Model

• Strong FCF & Balance Sheet

• OPEX & CAPEX Optimization

• Technology & Digital Assets

• Business Transformation

• Station Network & Landbank

ADNOC Distribution 2028 ambition

ADNOC Distribution is committed to continue delivering EBITDA growth from 2024 to 2028 through its identified key strategic initiatives and focus areas, aiming to transform into a multi-energy, convenience, and mobility leader.

• Grow the ADNOC Distribution network to 1,000 service stations, a +20% increase compared to 840 stations in 2023.

• Deliver a 50% increase in the number of non-fuel transactions.

• Achieve 25% increase in the number of convenience stores.

• Scale up franchise and sub-franchise model with 50+ company operated new franchise operations, providing a 2-3X yield versus traditional rental model.

• Become a one-stop shop for car care; triple the number of car washes, double the number of automotive oil changes and expand total car service offerings.

• Launch new innovations and expand on current digital enhancements, including seamless fueling through license plate recognition, in-car ordering through the ADNOC Distribution application, and explore future subscriptions services for carwash and other services.

• Target a minimum of 500 EV fast & superfast charging points to build a national network, a 10X increase from 2023.

• Aim for up to $50 million in like-for-like OPEX savings by 2028.

• Allocate $250 to $300 million annually for CAPEX, with 70% focused on growth.

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