Valvoline (VVV) Goldman Sachs Global Consumer and Retail Conference summary

Market trends and growth opportunities

• Demand is driven by non-discretionary preventative maintenance, aging vehicles, and a shift toward convenience services.

• The business is highly fragmented, with only 6% market share and stores accessible to 40% of the car park, indicating significant expansion potential.

• Expansion targets include reaching 2,900 locations by 2028 and 3,500+ in the early 2030s, with ongoing evaluation of mobile service opportunities.

• Franchise partners have committed over $1 billion to network growth, supporting continued unit additions and market densification.

• Mobile service offerings are being tested to further enhance convenience and reach.

Operational performance and customer retention

• Mature stores average over 50 oil changes per day, outperforming industry averages.

• Focus is on optimizing return on invested capital and oil changes per bay, with new stores maturing over four to five years.

• Over 80% of customers are repeat guests, with most new customers coming from dealers or general automotive service providers.

• Customers typically live within 10 minutes of a location, and retention is driven by consistent, high-quality service.

Premiumization and service mix

• About 80% of oil changes are premium (full synthetic or synthetic blend), with a growing shift toward full synthetic due to OEM requirements and aging vehicles.

• Full synthetic penetration is expected to increase by about 3% annually as the car park evolves.

• New premium products, such as Restore & Protect, are being tested to further drive ticket growth.

• Customers rarely downgrade after upgrading to premium oil changes.