Vibra Energia (VBBR3) Investor Day 2024 summary

Strategic Vision and Growth Pathways

• Aims to consolidate its position as Brazil’s leading multi-energy platform, expanding from traditional fuels to renewables, energy efficiency, and distributed generation.

• Five growth avenues: leadership in gas stations, B2B portfolio expansion, logistics capacity, lubricants (Brazil and LATAM), and disciplined entry into renewables.

• Recent acquisition and integration of Comerc enhances energy management, trading, and renewable solutions, unlocking up to BRL 1.5 billion in net synergies by 2026.

• Aggressive expansion in convenience (BR Mania) and service (Lubrax Mais) franchises, aiming to double store count and grow Lubrax Mais by 50%.

• Focus on asset-light growth, distributed generation, and investments in biomethane and SAF technologies, leveraging partnerships for technology and innovation.

Financial Discipline and Performance

• Achieved record adjusted EBITDA of R$6.3B in 2023, with a 19% CAGR since 2019 and net profit of R$4.8B.

• Maintained strong expense discipline, reducing operating expenses per m³ by 17% from 2019 to 2023.

• Net debt/EBITDA reduced from 3.0x (2Q23) to 1.0x (2Q24), with ROIC rising to 19.6%.

• CapEx for the next cycle will be higher than previous years, supporting growth ambitions, with a disciplined approach to investment and efficiency.

• Dividend policy remains at 40% of net profit, balancing growth investments with shareholder returns.

Market Positioning and Customer-Centricity

• Market leader in branded gas stations (31% share), additive fuels (44% share), and aviation fuel supply (61% share), with a robust logistics network spanning over 8,000 gas stations and 92 operational units.

• Expansion targets both large and small municipalities, with a focus on agro regions and customized offerings for B2B and retail clients.

• Fighting sector informality and illegal practices is a top priority, with active engagement in regulatory and industry initiatives.

• Customer relationships are central, with initiatives to deepen understanding of client needs, enhance service, and foster long-term partnerships.

• Lubricants business saw 35% EBITDA growth over three years and doubled gross profit in five years, targeting LATAM leadership.