Valvoline (VVV) Investor Update summary

Strategic Priorities, Vision, and Market Positioning

• Focused on driving the full potential of the core business, sustainable network growth, innovation, and being the preferred automotive service destination.

• Operates in a fragmented, growing market with increasing vehicle age and customer preference for convenience.

• Differentiated by high brand awareness, repeat customer rates, robust data-driven approach, and a culture of operational excellence.

• Technology, data analytics, and process improvements are central to driving efficiency and margin gains.

• Proprietary SuperPro/SuperPro™ process ensures consistent execution and customer experience across all stores.

Financial Performance, Growth Targets, and Capital Allocation

• Achieved 11.4% revenue CAGR and 13.9% adjusted EBITDA CAGR from 2022-2025, with 19 consecutive years of same-store sales growth.

• Targets 9%-11% annual net sales growth, 3%-5% same-store sales growth, and 100-200 bps EBITDA margin expansion through 2028.

• FY2026 guidance: $2.0-2.1B net revenues, $525-550M adjusted EBITDA, and $1.60-1.70 adjusted EPS.

• Capital allocation priorities: invest in high-return network growth, maintain strong balance sheet/target leverage (<2.5x net debt/EBITDA), and return excess cash via share repurchases.

• Build cost per store reduced by 10%-15% over the past two years, with further 10%+ savings targeted by 2028.

Franchise Network and Partnership Model

• Franchise network has grown at 8% CAGR since 2022, now operating 1,164 stores, with established partners averaging 30 years tenure.

• Franchise partners committed over $1 billion in capital for growth over the next five years.

• 50%-60% of new store additions expected from franchisees, who deliver high AUVs and strong returns.

• Franchise partners are generating >25% cash-on-cash returns, and unit economics outperform industry peers.

• Strategic alignment with franchisees maintained through relationships, incentive structures, and contractual commitments.