Viva Energy Group (VEA) investor relations material

Executive summary

• Operational performance improved in the second half, with strong momentum across all business segments after a challenging first half.

• Achieved strong improvement in underlying EBITDA in 2H FY25, with full-year EBITDA (RC) at $700.9M, despite challenging market conditions and integration costs.

• Completed major acquisitions (Liberty Convenience, OTR), expanded retail footprint, and commissioned Ultra Low Sulphur Gasoline units.

• Major transition activities, including ERP and supply chain independence, were completed, enabling further integration and efficiency.

• Leadership transition in retail was seamless, with a focus on execution and capability uplift.

Financial highlights

• Group EBITDA (replacement cost basis) was AUD 701 million, down 6% year-over-year, with a strong second half (AUD 396 million, up 33% YoY).

• Underlying NPAT (replacement cost) was AUD 184 million, impacted by high depreciation and finance costs from recent acquisitions.

• Capex peaked at $494.4M, with FY26 guidance lowered to $350M–$400M.

• Net debt increased to $2.1B due to elevated capex and acquisitions; gearing at 3.0x, targeting 2.0x by FY27.

• Final fully franked dividend of AUD 0.0394 per share, representing a 60% payout ratio for C&I and C&M NPAT.

Outlook and guidance

• 2026 expected to build on 2025 momentum, with retail growth and improved refining cash generation.

• CapEx to moderate to AUD 350–400 million in 2026, supporting improved net cash flow and balance sheet strength.

• Gearing targeted to reduce from 3x to 2x net debt/EBITDA by end of 2027, supported by earnings growth, FSSP renegotiation, and surplus land sales.

• Retail conversion program paced for execution quality, with 40–60 OTR store conversions planned for 2026, back-ended to the second half.

• Expecting stable operations in refining with no major maintenance planned and strengthening retail performance as integration completes.