Valvoline, Inc. (NYSE:VVV) Q4 2022 Earnings Conference Call November 15, 2022 8:00 AM ET Company Participants Sean Cornett - Senior Director, IR & Assistant Treasurer Samuel Mitchell - CEO & Director Lori Flees - President, Retail Services Mary Meixelsperger - CFO Conference Call Participants Michael Kessler - Morgan Stanley Jeffrey Zekauskas - JPMorgan Chase & Co. Laurence Alexander - Jefferies Chasen Bender - Citi Michael Harrison - Seaport Research Partners Operator Thank you all for joining, and welcome ...

Valvalina 1 Goldman Sachs Global Retailing Conference September 7, 2022 SAFE HARBOR Forward-Looking Statements Certain statements in this presentation, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about the proposed transaction, the expected timetable for completing the proposed transaction, the benefits and synergies of the propo ...

Valvoline, Inc. (NYSE:VVV) Q3 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Sean Cornett - Senior Director, IR & Assistant Treasurer Samuel Mitchell - CEO & Director Mary Meixelsperger - CFO Conference Call Participants Michael Harrison - Seaport Research Partners Michael Kessler - Morgan Stanley Jason English - Goldman Sachs Group Operator Thank you for standing by, and welcome to Valvoline's Third Quarter 2022 Earnings Conference Call and Webcast. My name is Sam, and I will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the transition period from _________ to ___________ VALVOLINE INC. For the quarterly period ended June 30, 2022 Commission file number 001-37884 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) ______________________ FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Kentucky ...

1 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | SAFE HARBOR Forward-Looking Statements Certain statements in this presentation, other than statements of historical fact, including estimates, projections and statements related to Valvoline's business plans and operating results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Valvoline has identified some of these forward-looking s ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents Valvoline Inc.'s unaudited condensed consolidated financial statements for the quarter ended March 31, 2022, including income, balance, equity, and cash flow statements with notes [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Income Statement Highlights (Unaudited) | Metric (In millions) | Three months ended Mar 31, 2022 | Three months ended Mar 31, 2021 | Six months ended Mar 31, 2022 | Six months ended Mar 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $886 | $701 | $1,744 | $1,354 | | **Gross Profit** | $250 | $247 | $494 | $475 | | **Operating Income** | $117 | $131 | $238 | $255 | | **Net Income** | $81 | $68 | $168 | $155 | | **Diluted EPS** | $0.45 | $0.37 | $0.93 | $0.84 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Metric (In millions) | March 31, 2022 | September 30, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $1,016 | $1,037 | | **Total Assets** | $3,248 | $3,191 | | **Total Current Liabilities** | $585 | $569 | | **Long-term Debt** | $1,648 | $1,677 | | **Total Liabilities** | $3,048 | $3,056 | | **Total Stockholders' Equity** | $200 | $135 | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) - For the six months ended March 31, 2022, total stockholders' equity increased from **$135 million to $200 million**, driven by **net income of $168 million**, offset by **dividends paid ($45 million)** and **common stock repurchases ($66 million)**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (Unaudited) | Metric (In millions) | Six months ended Mar 31, 2022 | Six months ended Mar 31, 2021 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $96 | $190 | | **Cash used in Investing Activities** | $(84) | $(276) | | **Cash used in Financing Activities** | $(124) | $(431) | | **Decrease in Cash** | $(111) | $(513) | | **Cash at End of Period** | $120 | $248 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - Valvoline announced its intention on October 12, 2021, to pursue a separation of its Retail Services and Global Products segments, pending final Board approval with no established timetable[21](index=21&type=chunk) - During the six months ended March 31, 2022, the Company acquired **21 service center stores** for an aggregate purchase price of **$23 million**, adding **$20 million to goodwill**[31](index=31&type=chunk)[34](index=34&type=chunk)[38](index=38&type=chunk) - As of March 31, 2022, total debt was approximately **$1.7 billion**, with **$471 million** of borrowing capacity remaining under its revolving credit facility, and the company was in compliance with all debt covenants[39](index=39&type=chunk)[41](index=41&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's Q2 2022 financial performance, highlighting strong sales growth driven by pricing and volume, offset by margin pressure from cost inflation and supply chain issues, alongside the ongoing segment separation plan [Business Overview](index=21&type=section&id=Business%20Overview) - Valvoline is pursuing a strategic separation of its Retail Services and Global Products segments to enhance focus on their distinct customer bases and strategies[66](index=66&type=chunk) - Key business strategies for fiscal 2022 include executing the segment separation, aggressively growing Retail Services, accelerating Global Products' market share, expanding capabilities for future transport vehicles, and building a strong data and technology foundation[69](index=69&type=chunk) - In Q2 2022, net income grew **19% to $81 million** and diluted EPS grew **22% to $0.45**, driven by strong top-line results, with Retail Services sales growing **23%** and Global Products sales growing **29%**[72](index=72&type=chunk) [Results of Operations - Consolidated Review](index=26&type=section&id=Results%20of%20Operations%20-%20Consolidated%20Review) Year-over-Year Sales Change Drivers (In millions) | Driver | Three months ended Mar 31, 2022 | Six months ended Mar 31, 2022 | | :--- | :--- | :--- | | Volume and mix | $67 | $171 | | Price | $113 | $203 | | Currency exchange | $(9) | $(9) | | Acquisitions | $14 | $25 | | **Total Change in Sales** | **$185** | **$390** | Year-over-Year Gross Profit Change Drivers (In millions) | Driver | Three months ended Mar 31, 2022 | Six months ended Mar 31, 2022 | | :--- | :--- | :--- | | Volume and mix | $32 | $82 | | Price and cost | $(30) | $(63) | | **Total Change in Gross Profit** | **$3** | **$19** | - Gross profit margin declined from **35.2% to 28.2%** for the quarter year-over-year, primarily due to higher raw material costs, supply chain challenges, and the dilutive impact of passing through cost increases[82](index=82&type=chunk)[87](index=87&type=chunk) - Net interest and financing expenses decreased significantly, primarily due to **$36 million** in debt extinguishment costs recognized in the prior-year period that did not recur[15](index=15&type=chunk)[94](index=94&type=chunk) [Results of Operations - Reportable Segment Review](index=29&type=section&id=Results%20of%20Operations%20-%20Reportable%20Segment%20Review) Retail Services Segment Performance (Q2 2022 vs Q2 2021) | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Sales (in millions) | $350 | $285 | 23% | | Adjusted EBITDA (in millions) | $95 | $95 | 0% | | Adjusted EBITDA Margin | 27.1% | 33.3% | (620) bps | | System-wide SSS Growth | 13.1% | 20.2% | N/A | - Retail Services' profitability was impacted by wage inflation, labor inefficiencies, and higher product costs from supply chain constraints, with the company implementing incremental pricing actions to address these pressures[109](index=109&type=chunk) Global Products Segment Performance (Q2 2022 vs Q2 2021) | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Sales (in millions) | $536 | $416 | 29% | | Adjusted EBITDA (in millions) | $81 | $80 | 1% | | Adjusted EBITDA Margin | 15.1% | 19.2% | (410) bps | | Lubricant Volume (gallons) | 43.3 | 39.9 | 9% | - Global Products sales growth of **29%** outpaced volume growth of **9%**, reflecting successful price pass-through of raw material cost increases, though profitability was moderated by the inflationary cost environment and supply chain challenges[112](index=112&type=chunk)[113](index=113&type=chunk) [Financial Position, Liquidity and Capital Resources](index=34&type=section&id=Financial%20Position,%20Liquidity%20and%20Capital%20Resources) - Cash from operating activities decreased to **$96 million** for the six months ended March 31, 2022, down from **$190 million** in the prior year, primarily due to an unfavorable increase in net working capital from higher accounts receivable[115](index=115&type=chunk)[116](index=116&type=chunk) Free Cash Flow (Six months ended March 31) | Metric (In millions) | 2022 | 2021 | | :--- | :--- | :--- | | Cash from Operating Activities | $96 | $190 | | Less: Growth capital expenditures | $(51) | $(59) | | Less: Maintenance capital expenditures | $(16) | $(15) | | **Free Cash Flow** | **$29** | **$116** | - During the six months ended March 31, 2022, the company returned **$111 million** to shareholders through **$45 million in dividends** and **$66 million in share repurchases**[123](index=123&type=chunk) - As of March 31, 2022, the company had **$118 million in cash** and **$587 million** of remaining borrowing capacity under its Revolver and Trade Receivables Facility[122](index=122&type=chunk)[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states that there were no material changes to its market risks during the six months ended March 31, 2022, from those disclosed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2021 - Management reassessed quantitative and qualitative market risk disclosures and determined there were no material changes in the six months ended March 31, 2022[130](index=130&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Valvoline's CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no significant changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the evaluation date, the company's disclosure controls and procedures were effective[131](index=131&type=chunk) - No significant changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2022[132](index=132&type=chunk) [PART II – OTHER INFORMATION](index=38&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is party to various lawsuits and claims arising in the ordinary course of business, with management believing pending claims will not materially adversely affect its financial statements - Valvoline is party to lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, with further details referenced in Note 8 of the financial statements[135](index=135&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) There were no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2021 - No material changes were reported from the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended September 30, 2021[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's repurchase of its common stock during the three months ended March 31, 2022, where Valvoline repurchased approximately 1.08 million shares for a total of $35 million Share Repurchase Activity (Q2 2022) | Monthly Period | Total Shares Purchased | Average Price Paid | Dollar Value (in millions) | | :--- | :--- | :--- | :--- | | January 2022 | 295,790 | $34.70 | $10.3 | | February 2022 | 322,781 | $32.79 | $10.6 | | March 2022 | 458,815 | $30.65 | $14.1 | | **Total** | **1,077,386** | **$32.40** | **$35.0** | [Exhibits](index=39&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and XBRL data files - Lists exhibits filed with the report, including Sarbanes-Oxley Act certifications for the CEO and CFO, and XBRL interactive data files[139](index=139&type=chunk)

Valvoline Inc. (NYSE:VVV) Q1 2022 Earnings Conference Call May 10, 2022 9:00 AM ET Company Participants Sean Cornett - Senior Director, Investor Relations Sam Mitchell - Chief Executive Officer Mary Meixelsperger - Chief Financial Officer Conference Call Participants Michael Kessler - Morgan Stanley Mike Harrison - Seaport Research Partners Operator Ladies and gentlemen, hello and welcome to Valvoline's 2Q 2022 Earnings Conference Call and Webcast. My name is Maxine and I'll be coordinating the call today. ...

Financial Data and Key Metrics Changes - Valvoline reported a 31% growth in total sales for Q1 2022, with adjusted EBITDA increasing by 5% and adjusted EPS growing by 12% [8][9][24] - The company expects a revenue CAGR of 14% and an adjusted EBITDA CAGR of 13% since 2019 [10] Business Line Data and Key Metrics Changes - Retail Services segment achieved a 36% sales growth year-over-year, with nearly 25% same-store sales growth [11][12] - Global Products sales increased by 28% year-over-year, with a solid contribution across regions despite supply chain challenges [16][22] Market Data and Key Metrics Changes - Retail Services saw system-wide store sales grow by 31% over the last year, driven by same-store sales and unit growth [11] - Global Products experienced a 32% sales increase compared to the pre-pandemic period of fiscal Q1 2020 [16] Company Strategy and Development Direction - The company is pursuing a separation of its Global Products and Retail Services businesses to enhance operational focus and shareholder value [30][31] - Valvoline is piloting an electric vehicle service package to cater to the growing EV market, indicating a strategic shift towards new service offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering cost increases through pricing actions, despite ongoing inflationary pressures [20][49] - The company remains optimistic about its growth trajectory, citing strong demand for its products and services [32][86] Other Important Information - Valvoline plans to continue its share repurchase strategy, having returned $54 million to shareholders in Q1 [27][33] - The company anticipates total sales growth of roughly 20% for the fiscal year, driven by volume growth and pricing strategies [28] Q&A Session Summary Question: Can you separate price and volume for North America sales? - Management indicated that the volume benefit in the Global Products business was about $28 million, while the price cost lag impact was approximately negative $30 million [38] Question: Who owns the IP to the Valvoline brand post-separation? - Both segments will have access to the Valvoline brand, and a long-term supply contract will be established between Retail Services and Global Products [40] Question: What is the outlook for gross margins? - Management noted a sequential gross margin decline due to inflationary pressures across various raw materials, but they are optimistic about recovering costs through pricing adjustments [46][49] Question: How is the retail services business performing quarter to date? - Management reported good momentum in the second quarter, overcoming initial disruptions from Omicron and focusing on staffing stability [78] Question: Will the separation of businesses occur this year? - Management expects to complete the separation within the fiscal year, emphasizing a disciplined approach to ensure shareholder value [70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________ FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ___________ Commission file number 001-37884 VALVOLINE INC. (Exact name of registrant as specified in its charter) Kent ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ___________ Commission file number 001-37884 VALVOLINE INC. Kentucky (State or other jurisdiction of incorporation or organization) 30-0939371 (I.R.S. Employer ...