Valvoline (VVV) investor relations material

Business overview and strategy

• Now a pure-play automotive services company with over 2,400 stores and 40 years in quick lube, focusing on scaling, innovation, and customer needs.

• Largest quick lube operator in North America, performing over 30 million services annually and achieving 19 years of same-store sales growth.

• Competitive advantages include scale, a tenured leadership team, long-standing franchise partners, and a strong customer experience with high NPS and Google ratings.

• Franchise partners have committed $1 billion in capital for growth over five years, reflecting confidence in returns.

• SuperPro process and 270 hours of technician training drive consistency and customer satisfaction.

Financial performance and growth outlook

• Medium-term targets through 2028: 3%-5% comp growth, ~7% store growth, 9%-11% top-line growth, low to mid-teens EBITDA growth, and 100-200 bps EBITDA margin expansion.

• Recent quarters saw comp growth above 8%, driven by both transaction and ticket growth, with premiumization and pricing contributing.

• Customer behavior remains stable with no significant trade-downs or deferrals; coupon usage is steady or slightly down.

• Pricing actions have offset cost increases from rising base oil prices, with centralized systems enabling quick adjustments.

• Margin impact from cost increases is modest, and ongoing efficiency initiatives are expected to support further margin improvement.

Breeze acquisition and integration

• Breeze acquisition closed December 1; integration is ahead of schedule with strong cultural alignment and early SG&A synergies.

• Conversion of Breeze stores to the brand is underway, expected to take a couple of years.

• Breeze stores currently generate $1-1.1M AUV, with a plan to ramp to $1.8M over 3-4 years as they mature.

• Early performance is above expectations, with less margin compression than anticipated.