I Energy Investor Day ENEWRGY 3 April 2014 Wellington Disclaimer Please read this page before the rest of the presentation Please do not read this presentation in isolation This presentation is made in advance of our full year results being released to the market and is in no way a form of guidance for those results. It should be read subject to and in conjunction with other material which we have released to NZX and ASX and our combined Investment Statement and Prospectus dated 25 July 2013. That material is available on our website, www.z.co.nz. Forward looking statements are inherently fallible This presentation contains forward-looking statements and projections. These reflect our current expectations, based on what we think are reasonable assumptions. But for any number of reasons the future could be different – potentially materially different. (For example, assumptions may be wrong, risks may crystallise, unexpected things may happen.) 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Outline for today Time Presenter 1:00 pm Introduction Mike Bennetts 1:10 pm Brand and Strategy 2.0 Mike Bennetts 2:10 pm Alternative Energy Strategy Rob Wiles 2:40 pm Break 3:00 pm Our three integrated businesses - Retail Mark Forsyth - Commercial Lindis Jones 4:30 pm Break 4:45 pm - Supply & Distribution Rob Freeman 5:15 pm Capital update Chris Day 5:30 pm Wrap up Mike Bennetts Overview We will focus on our IPO investment themes as the structure for our presentations Transport fuel supply infrastructure is crucial to keep NZ moving Insights into demand forecasts and sharing the options we have for alternative fuels We are a leader in the transport fuel market Demonstrating Z‟s network scale and infrastructure efficiency is NZ‟s best, we continue to deliver more integrated value out of our supply chain and Z‟s business model captures more value than competitors do We are experienced and we have delivered We have notable successes and learned a lot, all of which we have taken into planning Strategy 2.0 We are focused on generating sustainable margins and returns for our investors Given our position of strength, we have a strong Balance Sheet with capacity to fund our growth initiatives We are excited about the growth opportunities We will announce our first planned investment outside of our core business that secures a market leading position 4 Z’s strategic framework Z takes a comprehensive approach to the development of strategy which has multiple components across differing time frames Foundations Strategic Context Business Strategy Reviewed in exceptional conditions Reviewed annually to ensure coherence with the external environment Reviewed every three years, unless strategic context changes • Purpose • Ambition • Values • Leadership framework • Risk management • Scenarios and signposts • Presumptions and assumptions • Preferred industry structure • Competitor benchmarking • Brand playbook • Core business strategy • Beyond the Core • Alternative energy • Financial framework • Property strategy and network plan • HSSE, sustainability and community 5 HSSE Our Health, Safety, Security and Environmental (HSSE) strategy and performance are fundamental to all that we do Demonstrating commitment • One of the original signatories to Zero Harm Workplaces • No accidents, no injury or ill health to people, and no harm to the environment • Everyone in Z taking personal responsibility for making HSSE an essential part of our business, fully participating through a generative culture, and intervening in unsafe acts and behaviours Continuous improvement • Benchmarking Z to OSHA 18001- Occupational Safety, Health and Administration • Eighteen month programme to close anticipated gaps to new legislation and ISO accreditation Thought leadership • Proactive with Worksafe NZ and MBIE • Participating in three out of five of Worksafe NZ‟s guidance groups • Submitting on new HSSE legislation 6 Strategic presumptions The following 11 strategic presumptions are the foundations of our core business • Oil will remain the predominant transport fuel for New Zealand and the world • Shipping freight rates remain flat due to increased global capacity • Global oil markets will ensure continuity of supply to New Zealand and oil price volatility will increase • NZ consumers are value seekers and respond favourably to offers and Kiwi ownership • New Zealand will remain an import pricing market • NZD:USD will revert back to long term averages ─ 0.70 by 2018 • New Zealand transport fuel demand will remain flat to declining • Fuel standards will not be a key differentiator • We expect no major or extreme new regulatory shifts impacting our industry • NZR refining margins will remain flat in the short term before recovering • Rational competitive behaviour will continue 7 Current state Retail and Commercial market dynamics are a consequence of Shell’s exit in 2010 and Z’s choice to pursue a differentiated strategy under a local brand • Between 2000-2009 the industry was characterised by low investment, low service and low innovation, with average ROACE across the majors below WACC • Z has differentiated by investing in its network, capabilities, offers and brand for a segment of the market that is large enough for this to be economically sustainable • The competitive response has mostly focused on pricing, especially in Retail • Consumers have more choice than ever before, and can better match their preferences to what is on offer • Z has improved its share of the industry profit pool, built longer term resilience and secured a more loyal customer base • Z will continue to compete on its distinctive advantages, while preserving its economies of scale 8 The journey is not over Z has further means to differentiate and much more potential to build Retail and Commercial preference and loyalty • Brand metrics and other customer research confirms that we are not fulfilling on our potential. We have identified areas to close the gap • We have a choice about whether to convert our growing relative strengths into market share or margin • Our priority has been to get all elements of a distinctive offer in place before we substantially promote it • Our marketing and related spend (i.e. cost of customer acquisition) has been light compared to market share and we expect to remain disciplined in this area • Rather than rolling out expensive new offers or engaging in sizeable price promotions, most of Z‟s volume growth will come from capital investment in our network • We are being rewarded by playing a longer game, i.e. volumes down ~10% since January 2010 but forecasted earnings for FY14 up ~50% • We do not wish to become impatient and over correct, but do go through regular external challenge • Nothing strategic has been compromised, e.g. economies of scale are intact and we can accurately determine the marginal cost to our supply chain for any loss of volume 9 Room for improvement With confidence in our marketing strategy and as capabilities get to the required level, we are focussing on execution • We will be more aggressive with tactical pricing for Retail in FY15, based on new capability • Progress will be made with our partners at FlyBuys and Countdown in FY15 • An improving economy may reduce Commercial customers‟ focus on price in favour of the underlying drivers of customer (dis)satisfaction • A key focus in FY15 is to improve the consistency of Retail‟s onsite execution • There are options over the next two years to secure large parcels of volume for petrol and diesel • Competence in margin management rather than market share is required in a flat to declining market, unless or until the industry structure changes or another participant exits 10 Why brand matters In a short period of time we have established Z as a unique Kiwi brand that has a leading presence in the sector and supports our differentiated offers • We invest in our brand to: - set expectations across all aspects of our business and reflect our reason for being - secure customer loyalty, and that in turn delivers revenues • We have worked with Interbrand to benchmark ourselves against global comparators and to establish a baseline value for Z as a brand • Our Brand Playbook focuses our activity on closing the gaps to our benchmarks, and in doing so leveraging both operational results and brand value 11 Brand pyramid Z has a higher degree of conversion than any other brand in the local market 21% 21% 40% 65% 45% 74% 69% Source: Colmar Brunton monthly brand tracker (Feb 2014) commissioned by Z Energy 12 Brand performance Z is consistently leading on key brand metrics, often by a material margin 31% prefer Z as their first choice 72% have used Z in the last six months 76% rate overall experience as “excellent or “very good” 39% would recommend Z 13 Source: Colmar Brunton monthly brand tracker (Feb 2014) commissioned by Z Energy Sfrafegy 2.0 Mike Benne?s Chief Executive New Zealand vehicle fleet efficiency A range of internal combustion engine technologies are increasing fleet efficiency, while consumer buying behaviours are also changing Top 6 Cars 2013 Toyota Corolla Suzuki Swift Holden Commodore Toyota Rav4 Toyota Yaris Holden Captiva Top 6 Cars 2005 Holden Commodore Toyota Corolla Ford Falcon Ford Territory Mazda 6 Honda Accord Source: MTA.org.nz 15 New Zealand vehicle travel demand Technology, purchasing preferences and fleet turnover increase fleet efficiency. Light vehicle kilometres travelled per person has fallen by 6% since 2005 mostly due to discretionary travel Three key drivers we apply to forecast light vehicle travel are: • Nominal GDP growth per person – positively correlated and positive outlook • Nominal NZD regular petrol price – negatively correlated and positive outlook • Broadband connections (proxy) – negatively correlated and positive outlook Index Vehicle fleet efficiency 16 New Zealand retail fuel demand Retail fuel demand is down 7% from peak in 2007, and is forecast to fall another 4.5% by 2018. National fuel demand is more sensitive to social / societal trends represented by broadband connectivity than the traditional drivers 17 Diesel volumes Diesel growth has outperformed GDP growth and is positively correlated Drivers • Increased economic reliance on freight of primary produce versus manufactured goods (positive driver) Kilotonnes NZ$m • Increased penetration of diesel vehicles in light vehicle fleet (positive driver) • Increased proportion of service based GDP (offsetting factor) • Heavy vehicle fleet efficiency (offsetting factor) 18 Growth options We have three distinct pathways to further grow earnings, dividends and returns on capital Strategy 2.0 Further value to be unlocked from within our core business Beyond the Core Investment in adjacencies or positions outside our existing value chain that leverage our understanding of the customer or supply chain expertise Industry consolidation We are the advantaged synergistic buyer in the NZ market 19 Strategy 2.0 Further value will be delivered from within our core business over the next four years, almost all of which is distinctive to Z. The value uplift is concentrated in five separate initiatives for a total EBITDA uplift of $40-$50m New sites and rebuilds (Retail) Strategy 2.0 contribution • Investment to strengthen network through ~five new sites and ~three rebuilds per annum Evolution of Tier 1 Store offer (Retail) • Development of best-in-class food on the go offer and further “hero” categories Extend Tier 2 Store offer (Retail) • Push current food and coffee offer deeper into remaining network Inland diesel portfolio management (Commercial) • Refocus Commercial diesel volume by region, channel and then customer segment Competing supply chains (Supply & Distribution) • Leveraging improved refined product pricing across manufactured volume 20 Alternative ?y Energy Strat' y? Rob Wiles General Manager - Corporate Existing market context The long-term supply / demand profile for crude oil has changed substantially Insights • Improved drilling and extraction technology has led to emergence of tight oil and shale gas reserves • US a net exporter in next five years • GFC reduced demand • „Green‟ prioritisation has stalled but economic recovery should reignite it • OECD oil demand/GDP has peaked, non OECD continues to grow • Large distortions created by government incentives may continue Global impact • Mineral-based fuels will dominate transport for decades to come • Vehicle efficiency and demand for transport trends will reduce demand over time • Green considerations now driven by consumers not oil supply constraints • Climate change considerations will gain personal and political momentum as economy improves • Improvements in vehicle efficiency will continue • Transition of NZ‟s vehicle fleet will continue albeit slowly 22 Catalyst for market change Changes in global supply / demand for fossil fuels will create a challenging environment for the emergence of alternatives, however customer demand exists Impact on alternative energy Impact on Z • The present environment supports the status quo and any substantive growth in alternative energy will only come from either: • Mineral-based fuels will remain essential to transport for decades to come, extending Z‟s core business model - A dramatic improvement in alternative energy technologies / economics - A sustained increase in oil prices, or - Government intervention • Volatility will remain driven by offshore events • Potential resurgence of green consumerism driving gradual increase in demand for alternative energy • Meaningful penetration by electric vehicles is still 10-20 years away 23 Alternative energy - options We have undertaken a thorough assessment of alternate transport energy sources for New Zealand. All scalable and commercially viable alternatives within the next 10 years are liquid fuel technologies 24 Alternative energy strategy We will develop commercially viable options that secure the ability to satisfy growing customer demand for alternatives Strategy • Secure options to execute first for feedstock access • Target options that offer superior value to the customer • Secure strategic positions in supply chains - Participate in production facilities that are advantaged over import options - Create competitively strong positions by matching production capacity to advantaged local feedstock supply • Maintain capability to review new options and act on those that become financially and technically viable 25 Wiri biodiesel project NZ’s first scaled domestic biodiesel production - without subsidy Key features • Total capital costs of $21m. Majority of project costs are under fixed price contracts • Production of 20mlpa of B100 biodiesel starts early 2015 potentially doubling in two years to 40mlpa • Chemical process using tallow and used cooking oil feedstocks is well known and safe and our R&D confirms product quality • Product will meet NZ Fuel Specifications • We have secured a suitable site near our storage facilities at Wiri • Opportunity has been under development over the past four years Artist impression of site in Wiri Remaining conditions precedent • Secure the few remaining consents • Award the contract to construct our distillation column • Complete a long-term supply agreement 26 Wiri biodiesel project Investment establishes a commercially viable point of difference, delivering a competitive advantage for Z Production economics are attractive • Inedible tallow is a relatively plentiful by-product with stable supply volumes • Historically attractive price spreads between tallow and diesel • Confirmed demand from Commercial customers at premium price point A competitively advantaged source of biofuels • Capital input to biofuel production output ratio is world class at less than NZ$1 per litre of annual production • Forecast production costs materially lower than imported biodiesel alternatives • First mover advantage will secure a leadership position that will be difficult for competitors to match Supports our brand position Investment rationale • Establishing a market-leading position in biofuels meets the changing demands of our customers • Our target case meets our internal hurdles delivering a positive NPV • We will have a differentiated offer for Commercial customers and potential to offer it to retail customers • Future subsidies, grants or mandate provides potential upside • Unlike some other biofuel feedstocks, inedible tallow has very high sustainability credentials • Provides a bridge to advanced biofuels and creates optionality 27 Wiri biodiesel project We understand the risks and have taken steps to mitigate them, with a number of levers available to manage them Risks can be managed • Product quality from plant will meet NZ and European Fuel Specifications (EN14214) Project delivery and operational management • Discussions with Motor Industry Association and Original Equipment Manufacturers confirm they require EN14214 for warranty • Z already has proven operational management capability in its Supply and Distribution team and in its operating of the chemical manufacturing facility at Gracefield, Wellington • Capital costs have been agreed and capped via fixed price contracts with reputable engineering construction companies • Project construction and commissioning delivered by a team of experienced professionals from within Z and external • Tallow volume will be secured via long-term contracts and price risk will be reduced for two years • Ongoing feedstock price risk will be managed through a number of tools: - fixed price and forward contracts - production flex and storage, and - product price and blend flex 28 Retail Update Mark General Manager -Retail The game we choose to play Z is the leading retail fuel provider in NZ and here’s why • Optimising volume and margin • Network scale MBIE importer margins • Not sustainable or defensible to have high brand engagement or effective Z acquisition non price promotion without also having substance to back it • Network efficiency Average retail site volume (mlpa) • Scale players who can successfully differentiate themselves on Brand have a long term structural advantage AND a range of short and medium term options to flex volume • Differentiated customer offer • Model to market Source: MBIE • Ability to invest in the network to capture incremental volume in high growth areas • Players in this space are Median distance to of delivery recovering most the coststerminal but have yetbranded to harvest the benefits of (km, sites) a strong offer 30 Source: Local authority petroleum data Customer service Friendly staff is the key brand differentiator Source: Colmar Brunton quarterly brand report April 2013 31 Differentiated market offer Z has established a sizeable customer segment that is value driven • In recent years there has been a much greater market presence of price promotions; Z has led the focus on loyalty and differentiation • Our competitors spend more on marketing offers than Z • Z continues to secure a greater share relative to its market share of the branded market profit pool than other players Size of discount required to move from Z to a competitor TO WIN 1 in 10 people All people Impact of offers / discounts on behaviour Z loyalists (Visit Z 4 or 5 times out of 5) Z switchers (Visit Z 2 or 3 times out of 5) Source: Colmar Brunton Brand Tracker Research for Z 2013 TO WIN 1 in 5 people TO WIN 1 in 3 people 6c 8c 10c 10c 15c 30c 6c 10c 15c 32 Strategy 2.0 Following convenient locations and price, speed / ease of service are the two most important elements of a fuel station offer Decision hierarchy Customer insight Location Customer preference is greater than market share Price > Value Entry point is price, but there is a significant shift towards value Strategy 2.0 Network NTI Strategy 2.0 contribution Refit / KDR Fuels Portfolio Value Offer It‟s all about speed, ease and friendly, efficient service Offer Customer experience C-Store Carwash 33 Lindis Jones General Manager Commercial Commercial The Commercial operations have two distinct types of business: Core and Value Products Volume % Crack spread* Diesel 48% $19 Petrol 2% $11 LFO / HFO (Fuel Oil) 11% ($10) Jet A1 31% $17 Avgas 1% $0** Bitumen 7% ($10)*** NZ Refined vs Imported Value is maximised by: • Ensuring discretionary business is profitable • Pricing to reflect the investment in our assets and working capital • Optimising the volume placed • Average margins over the FY11 to FY14F period have grown from 6.7 cpl to 7.8 cpl * Crack spreads are based on Singapore markers and reflect an average of the calendar year of 2013 **Avgas - not a contributor to refining margins as not produced in NZ *** Bitumen spread is a management estimate and based off HFO assumption given no standard market reference 35 Redefining success We do not define winning as selling as much as we can. A more disciplined approach is required What we have learned • Inland fuels: customer portfolio is delivering increased profitability through stronger pricing discipline. We are closing the gap to the industry • Some of our competitors still appear to be optimising for outcomes other than value generation • Having options for the disposal of product matters • We have re-signed a number of major customers consistent with our business plan • Dissatisfaction characterised the B2B customer relationship in this industry. Paying attention to this helps our customers and Z 36 Commercial Focussing on what matters to our customers, and leveraging our strengths has started to count 37 Big Jet New Zealand jet market is “balanced to long” but forecast demand growth over the medium term could transform this business • Approximately 83% of Z‟s Jet sales are through Auckland International Airport • Our strategy has been to optimise Jet production at NZR within a relatively narrow band • Demand has recovered post 2008 and forecast to grow • Given the need to optimise NZR production and consideration of next best alternatives we see a positive outlook for Big Jet margins Source: Z management 38 Mini-Tankers Mini-Tankers is a distinctive channel that we are continuing to invest in to optimise our diesel portfolio and capture the value of integration • History – been part of the business for 25 years • 25 territories and 53 trucks • Principally a direct refuelling proposition focused on construction, forestry and smaller industrial sites • Strong customer satisfaction, Z‟s highest Net Promoter Score based on customer feedback • Mobile infrastructure with the ability to redeploy assets across regions and markets based upon industry cycles Lower risk Value proposition Higher productivity More control Customers will pay a premium for this service 39 Strategy 2.0 Commercial strategy is focused on further optimising the placement of volume supported by improved customer speed, simplicity and service Our key strategic themes are: Grow margins Invest to grow business and capability Capture integrated value • Sustainable growth while avoiding market disruption • Channel management • Invest in growth locations • Simplify and resolve customer dissatisfaction before investing in innovation • Integrated margin optimisation • How much and where we sell matters Strategy 2.0 contribution 40 Disfribu?on Rob Freeman General Manager Supply and Distribution Progress to date Z is a sophisticated buyer in the international supply market. Influencing third party decision making is the key to delivering more value in the crude and product supply chain International Supply Manufacturing Primary Distribution Terminals Secondary Distribution Still assessing feasibility of large MR (medium range) shipping / loading capability Refinery optimisation will improve through our recent joint procurement announcement JVs and industry arrangements remain robust Improving returns based on more commercial arrangements Opportunity to improve the integration across bulk, distributor and MiniTankers channels Improved draught at Mount Maunganui Product quality leadership Clear understanding on port by port basis where strategic investment is an option Delivery optimisation, the balance of cost versus operational effectiveness Crude oil Refined product 42 Strategy 2.0 Focused on leveraging competing supply chains, fully commercialising terminals infrastructure and optimising logistic operations Our three strategic themes are: What we have achieved: Now it’s all about: We know what it takes to be independent and competitive in the downstream oil supply chain Delivering refinery returns that exceed our import options Optimise two competing supply chains (viable NZR and imports) to reflect true alternative acquisition costs and reflect Z‟s regional independence We have made significant inroads on the journey of commercialising our terminal infrastructure Catalysing change in the industry arrangements Fully commercialise terminal and pipeline infrastructure (including providing appropriate investment signals) Our logistics business consistently and safely delivers on customers‟ needs with growing efficiency Driving further efficiency through our logistics options Optimising and leveraging the potential of fleet across bulk haulage, our distributors and Mini-Tankers Strategy 2.0 contribution 43 Supply optimisation We remain focused on ongoing refinery optimisation and are committed to ensuring we play our role in keeping NZR competitive Background: Manufacturing • Four companies independently planning, selecting crude, arranging delivery NZR self help includes: • Created operational challenges for NZR due to less than optimal sequencing of feedstocks • Fit for purpose organisation • Has been a long-standing limitation • A more competitive refining proposition • Manage costs • Increased manufacturing yield • Te Mahi Hou A more competitive refining proposition • Our collaborative feedstock selection initiative with NZR and our joint crude import procurement initiative with BP will bring increased efficiency in refinery operations • The benefit for NZR is realised in improved physical refining performance; for Z the benefit is realised from a reduction in processing fees paid for certain products • It reinforces we optimise supply differently to some of our other major competitors; furthermore that some of our competitors are starting to look at the NZ market differently 44 . a Capital update I I a Chris Day Chief Financial Officer Capital and Strategy 2.0 Strategy 2.0 EBITDAF uplift of $40-$50m is concentrated in five areas. Our short term themes are aimed at focused, distinctive and material performance New sites and rebuilds (Retail) • Investment to strengthen network through ~five new sites and ~three rebuilds per annum Evolution of Tier 1 Store offer (Retail) • Development of best in class food on the go offer and further “hero” categories Extend Tier 2 Store offer (Retail) • Push current food and coffee offer deeper into remaining network Inland diesel portfolio management (Commercial) • Refocus Commercial diesel volume by region, channel and then customer segment Competing supply chains (Supply & Distribution) • Leveraging improved refined product pricing across manufactured volume 46 ZEL Share Performance First eight months as a listed company. A strong start reinforcing our investment fundamentals • Our people have adjusted well to life in a listed company • Half year earnings were consistent with expectations • „Distractions‟ of the IPO now behind us Source: Bloomberg 47 Capital Expenditure Our capital expenditure programme has enabled us to deliver Strategy 1.0 benefits. Within the planning horizon we expect spending to return to levels closer to depreciation • Since acquisition over the FY11-FY13 period Z has invested $170m in a combination of integrity and growth capex initiatives • Integrity capex relates to items such as tank replacements. The large increase in growth in FY12 and FY13 relates to the roll out of the brand and refit of retail sites • FY14 capital programme less than forecast given our decision to defer supply chain investments and slower retail new site builds. Will flow into Q1 of FY15 • Targeted integrity capex of ~$30m per annum and growth capex of $30-$40m 48 Funding and Cash Good capacity. March 2014 cash position in line with PFI guidance • Debt funding secured pre IPO with long term horizons • Facilities: - $350m working capital facility - $50m growth/stand by - Well within covenants at 30 Sep 2013. Total debt coverage at 2.2X (covenant < 3X) - Additional Balance Sheet capacity (if required) in the form of a further tranche of sale and leaseback of retail property assets ~$40m • Current gearing (debt:debt + book equity) ~32% so well positioned to fund Strategy 2.0 49 EBITDAF growth and FY14 guidance We have delivered strong growth and have a solid outlook given Strategy 2.0 benefits • Mid point of current guidance = CAGR of 10.2% • Reported MBIE margins supportive • FY14 guidance unchanged • FY14 full year results announcement 8 May 2014 50 Distributions Through Strategy 2.0 we aim to deliver an increase in dividend per share over time commensurate with increase in profitability • Policy ─ subject to performance and Directors‟ discretion, Z seeks to distribute 80% of full year Replacement Cost NPAT • Aim is for earnings growth to support a lift in dividend per share over time Maintain capital Growing dividends Deliver on targeted • 35%:65% split between interim and capacity final dividends for growth over time yields • FY14 interim dividend of 7.7 cents per share (fully imputed) was in line with PFI forecasts Manage working capital Risk management of Efficient Capital / FX volatility debt maturities Management Disciplined capital expenditure EPS / ROE Growth 51 Summary We have capacity to fund Strategy 2.0 organic growth. We are targeting increased dividend returns to shareholders • We have been disciplined – did not participate in Refining NZ capital issue • Existing capacity is strong, both in available facilities and saleable property assets • Cash being generated by the business is broadly consistent with PFI expectations Maintain capital Growing dividends Deliver on targeted capacity for growth over time yields • We have grown EBITDAF earnings at a CAGR of around 10% since the acquisition Manage 2.0 working management of • Strategy buildscapital on performanceRisk to date - there is more „gas in theEfficient tank‟! Capital / FX volatility debt maturities Management Disciplined capital expenditure Diversity in funding sources / options EPS / ROE Growth 52 I Wrapping up Mike Benne?s Chief Executive Employee engagement Z ranks in the upper quartile for employee engagement across ANZ knowing that higher engagement is correlated to outperformance on total shareholder returns Norms - ANZ - Energy 52% Norms - Local Energy ANZ 51% 54 Overview We continue to demonstrate our investment themes through delivery in FY14 and the forecasts for the years ahead • There are both operational and strategic considerations to our HSSE performance • We bring rigour and thoroughness to the development and execution of strategy • Strategy 2.0 delivers a distinctive $40-50m of EBITDAF by FY18 on top of any momentum in underlying earnings • Biodiesel manufacturing is a sensible “beyond the core” investment • We are disciplined with capital allocation and can fund the growth we are projecting • Management are capable of executing all of our growth options enabled by a highly engaged team of employees 55