Third Quarter Fiscal 2025 Earnings Lori Flees, CEO & President Kevin Willis, CFO Elizabeth Clevinger, Investor Relations 08.06.2025 SAFE HARBOR Forward-Looking Statements Certain statements herein, 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 to acquire Breeze Autocare, including its Oil Changers sto ...

Third Quarter 2025 Financial Highlights Valvoline Inc. reported strong financial and operational results for the third quarter, driven by robust sales, profit, and store growth, reflecting resilient customer demand [Executive Summary](index=1&type=section&id=Q3_2025_Executive_Summary) Valvoline Inc. reported strong financial and operational results for the third quarter ended June 30, 2025, with significant growth in sales, profit, and store count, demonstrating resilience in customer demand | Metric | Q3 FY25 Value | YoY Growth (Reported) | YoY Growth (Recast) | | :-------------------------------- | :---------------- | :-------------------- | :------------------ | | Sales | $439 million | 4% | 12% | | System-wide store sales | $890 million | 10% | - | | System-wide same store sales (SSS) | - | 4.9% | - | | Reported income from continuing operations | $57 million | 18% | - | | Earnings per diluted share (EPS) | $0.44 | 19% | - | | Adjusted EBITDA | $130 million | 5% | 12% | | Adjusted EPS | $0.47 | 4% | 18% | | System-wide store additions | 46 | - | - | - Cash and cash equivalents balance of **$68 million**; total debt of **$1.1 billion** [5](index=5&type=chunk) - Year-to-date operating cash flow from continuing operations of **$180 million** and free cash flow of **$20 million** [5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO_Commentary_Q3_2025) Lori Flees, President and CEO, expressed satisfaction with the strong Q3 performance, highlighting the business's resilience in customer demand despite minor market headwinds and acknowledging the dedication of franchise partners and team members - Valvoline delivered **strong sales, profit, and store growth** for the third quarter [3](index=3&type=chunk) - The business demonstrated **remarkable resilience in customer demand** despite modestly down miles driven and a slower start to summer holidays [3](index=3&type=chunk) - Good same store sales comps were achieved with **transaction growth across each month** in the quarter [3](index=3&type=chunk) Fiscal Year 2025 Outlook Valvoline updated its fiscal year 2025 guidance, narrowing ranges for key metrics while maintaining confidence in its business model and long-term shareholder value [Updated Guidance Ranges](index=2&type=section&id=Updated_Guidance_Ranges_FY2025) Valvoline narrowed its fiscal year 2025 guidance ranges to reflect updated expectations, maintaining confidence in its resilient business model for strong performance and long-term shareholder value | Metric | Updated Outlook | Prior Outlook | | :-------------------------- | :-------------------- | :-------------------- | | System-wide SSS growth | 5.8% - 6.4% | 5% - 7% | | System-wide store additions | no change | 160 - 185 | | Net revenues | $1.69 - $1.72 billion | $1.67 - $1.73 billion | | Adjusted EBITDA | $460 - $470 million | $450 - $470 million | | Adjusted EPS | $1.59 - $1.64 | $1.57 - $1.67 | | Capital expenditures | no change | $230 - $250 million | | Share repurchases | $60 million | $40 - $70 million | - Valvoline is unable to reconcile forward-looking non-GAAP financial measures (Adjusted EBITDA and Adjusted EPS) to comparable GAAP measures without unreasonable efforts due to unpredictable items affecting comparability [6](index=6&type=chunk) Operating Performance Valvoline's operating performance in Q3 FY25 demonstrated robust growth in revenues, profits, and store network expansion, with recast financials showing even stronger year-over-year improvements [Third Quarter Operating Results (GAAP)](index=2&type=section&id=Q3_Operating_Results_GAAP) Valvoline's GAAP operating results for Q3 FY25 show growth across key financial metrics, including net revenues, operating income, and income from continuing operations, with corresponding increases in EPS | Metric | Q3 FY25 Results | YoY Growth | | :-------------------------------- | :-------------- | :--------- | | Net revenues | $439.0 million | 4 % | | Operating income | $94.7 million | 1 % | | Income from continuing operations | $57.0 million | 18 % | | EPS | $0.44 | 19 % | | Adjusted EPS | $0.47 | 4 % | | Adjusted EBITDA | $129.5 million | 5 % | | System-wide store sales | $889.6 million | 10 % | [Refranchising Recast Financials](index=3&type=section&id=Refranchising_Recast_Financials) Valvoline completed the refranchising of 67 stores, and recast results, which adjust for these transactions as if they occurred prior to October 1, 2023, demonstrate significantly higher year-over-year growth rates for net revenues, Adjusted EBITDA, and Adjusted EPS - Valvoline completed the sale of **67 stores** from company to franchise through three transactions in Q4 FY24 and Q1 FY25 [11](index=11&type=chunk) | Metric | Q3 FY25 As Reported | Q3 FY24 As Reported | Q3 FY24 Recast | YoY Growth As Reported | YoY Growth Recast | | :---------------- | :------------------ | :------------------ | :------------- | :--------------------- | :---------------- | | Net revenues | $439.0 | $421.4 | $393.1 | 4 % | 12 % | | Adjusted EBITDA | $129.5 | $123.2 | $115.6 | 5 % | 12 % | | Adjusted EPS | $0.47 | $0.45 | $0.40 | 4 % | 18 % | | Metric | YTD FY25 As Reported | YTD FY25 Recast | YTD FY24 As Reported | YTD FY24 Recast | YoY Growth As Reported | YoY Growth Recast | | :---------------- | :------------------- | :-------------- | :------------------- | :-------------- | :--------------------- | :---------------- | | Net revenues | $1,256.5 | $1,244.8 | $1,183.5 | $1,105.7 | 6 % | 13 % | | Adjusted EBITDA | $336.7 | $333.4 | $318.5 | $299.8 | 6 % | 11 % | | Adjusted EPS | $1.14 | $1.11 | $1.11 | $1.01 | 3 % | 10 % | [Retail Store Operations](index=10&type=section&id=Retail_Store_Operations) Valvoline's retail operations showed robust growth in system-wide sales and same-store sales, alongside continued expansion of its store network, reaching over 2,100 locations by the end of Q3 FY25 [System-wide Sales and Same-Store Sales Growth](index=10&type=section&id=System_wide_Sales_and_SSS_Growth) Valvoline reported strong system-wide store sales and same-store sales growth for Q3 and YTD FY25, driven by both company-operated and franchised locations | Metric | Q3 FY25 | Q3 FY24 | YTD FY25 | YTD FY24 | | :-------------------------- | :------ | :------ | :------- | :------- | | System-wide store sales (in millions) | $889.6 | $808.5 | $2,535.4 | $2,277.5 | | Year-over-year growth | 10.0 % | 12.4 % | 11.3 % | 12.6 % | | Same-store sales growth: | | | | | | Company-operated | 4.2 % | 7.6 % | 5.7 % | 7.3 % | | Franchised | 5.4 % | 6.7 % | 6.5 % | 7.6 % | | System-wide | 4.9 % | 7.1 % | 6.2 % | 7.5 % | - Beginning in fiscal 2025, SSS growth is determined as the year-over-year change in net revenues of U.S. VIOC same stores (company-operated, franchised, and system-wide) that have been in operation for at least **12 full months** [28](index=28&type=chunk) [Store Network Expansion](index=10&type=section&id=Store_Network_Expansion) Valvoline continued to expand its retail network, increasing system-wide store count to over 2,100 locations by June 30, 2025, through new openings and acquisitions | Store Type | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Company-operated | 983 | 937 | | Franchised | 1,141 | 1,024 | | System-wide store count | 2,124 | 1,961 | | System-wide YoY growth | 8.3 % | 8.7 % | | Activity (Q3 FY25) | Company-operated | Franchised | | :------------------------------------------ | :--------------- | :--------- | | Beginning of period | 950 | 1,128 | | Opened | 19 | 19 | | Acquired | 8 | — | | Net conversions between company-operated and franchised | 6 | (6) | | Closed | — | — | | End of period | 983 | 1,141 | Total system-wide stores at end of Q3 FY25: 2,124 Consolidated Financial Statements Valvoline's consolidated financial statements for Q3 FY25 reflect strong revenue and profit growth, a healthy balance sheet, and positive operating cash flows [Statements of Consolidated Income](index=7&type=section&id=Statements_of_Consolidated_Income) Valvoline's Statements of Consolidated Income for Q3 FY25 show net revenues of $439.0 million, a gross profit of $177.6 million, and income from continuing operations of $57.0 million, contributing to a year-to-date net income of $185.7 million | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenues | $439.0 | $421.4 | $1,256.5 | $1,183.5 | | Gross profit | $177.6 | $167.5 | $481.0 | $448.5 | | Operating income | $94.7 | $93.4 | $305.4 | $232.6 | | Income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | Net income | $56.5 | $45.9 | $185.7 | $119.2 | | Diluted earnings per share (Continuing operations) | $0.44 | $0.37 | $1.47 | $0.96 | | Diluted earnings per share | $0.44 | $0.35 | $1.44 | $0.91 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed_Consolidated_Balance_Sheets) As of June 30, 2025, Valvoline's total assets increased to $2,561.6 million from $2,438.7 million at September 30, 2024, with a corresponding increase in stockholders' equity to $313.6 million | Category | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :-------------------------- | :-------------------------- | :------------------------------- | | Total current assets | $239.0 | $255.4 | | Total noncurrent assets | $2,322.6 | $2,183.3 | | Total assets | $2,561.6 | $2,438.7 | | Total current liabilities | $327.5 | $353.9 | | Total noncurrent liabilities | $1,920.5 | $1,899.2 | | Total liabilities | $2,248.0 | $2,253.1 | | Stockholders' equity | $313.6 | $185.6 | | Total liabilities and stockholders' equity | $2,561.6 | $2,438.7 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) For the nine months ended June 30, 2025, Valvoline generated $180.0 million in operating cash flows from continuing operations, while investing and financing activities resulted in net outflows | Cash Flow Activity | Nine months ended June 30, 2025 (in millions) | Nine months ended June 30, 2024 (in millions) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Total cash provided by operating activities | $175.3 | $163.8 | | Investing cash flows from continuing operations | $(71.9) | $161.4 | | Financing cash flows from continuing operations | $(103.6) | $(672.4) | | Decrease in cash, cash equivalents and restricted cash | $(0.4) | $(347.1) | | Cash, cash equivalents and restricted cash - end of period | $68.3 | $66.0 | - Operating cash flows from continuing operations were **$180.0 million** for the nine months ended June 30, 2025, up from **$170.0 million** in the prior year [26](index=26&type=chunk) Non-GAAP Financial Measures and Reconciliations This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted income, EBITDA, and free cash flow, along with definitions and rationale for their use - Non-GAAP measures are used to enable comparison of financial trends and results between periods and provide a useful supplemental presentation of Valvoline's operating performance [18](index=18&type=chunk) - These measures have limitations as analytical tools and should not be considered in isolation from, an alternative to, or more meaningful than, GAAP financial results [18](index=18&type=chunk) [Income from Continuing Operations and Diluted EPS Reconciliation](index=12&type=section&id=Income_and_EPS_Reconciliation) Valvoline provides a reconciliation of GAAP income from continuing operations and diluted EPS to adjusted non-GAAP figures, accounting for key items such as pension expenses, legacy costs, IT transition costs, and investment/divestiture-related costs to offer a clearer view of underlying operational performance | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Reported income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | Total adjustments, after tax | $3.8 | $10.1 | $(42.3) | $19.7 | | Adjusted income from continuing operations | $60.8 | $58.3 | $146.9 | $145.1 | | Reported diluted EPS from continuing operations | $0.44 | $0.37 | $1.47 | $0.96 | | Adjusted diluted EPS from continuing operations | $0.47 | $0.45 | $1.14 | $1.11 | [Adjusted Net Revenues and EBITDA Reconciliation](index=13&type=section&id=Adjusted_Net_Revenues_and_EBITDA_Reconciliation) This section reconciles GAAP income from continuing operations to EBITDA and Adjusted EBITDA, detailing adjustments for key items. For Q3 FY25, Adjusted EBITDA from continuing operations was $129.5 million, with an Adjusted EBITDA margin of 29.5% | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Reported net revenues | $439.0 | $421.4 | $1,256.5 | $1,183.5 | | Income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | EBITDA from continuing operations | $125.8 | $116.9 | $394.7 | $299.3 | | Key items - subtotal | $3.7 | $6.3 | $(58.0) | $19.2 | | Adjusted EBITDA from continuing operations | $129.5 | $123.2 | $336.7 | $318.5 | | Net profit margin | 13.0 % | 11.4 % | 15.1 % | 10.6 % | | Adjusted EBITDA margin | 29.5 % | 29.2 % | 26.8 % | 26.9 % | [Free Cash Flows from Continuing Operations Reconciliation](index=14&type=section&id=Free_Cash_Flows_Reconciliation) Valvoline presents a reconciliation of operating cash flows to free cash flow and free cash flow excluding growth capital expenditures, providing insights into cash generation available for debt, equity holders, and investments | Metric | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | | Operating cash flows from continuing operations | $180.0 | $170.0 | | Additions to property, plant and equipment | $(160.3) | $(153.0) | | Free cash flow from continuing operations | $19.7 | $17.0 | | Maintenance additions to property, plant and equipment | $(35.1) | $(23.0) | | Free cash flow excluding growth capital expenditures | $144.9 | $147.0 | [Definitions of Non-GAAP Measures and Adjustments](index=15&type=section&id=Definitions_of_Non_GAAP_Measures_and_Adjustments) This section provides management's definitions and rationale for using non-GAAP financial measures, including EBITDA, adjusted profitability, and free cash flow, explaining how these metrics offer a supplemental view of operating performance by excluding certain 'key items' not reflective of ongoing business operations [EBITDA Measures](index=15&type=section&id=EBITDA_Measures_Definition) EBITDA measures offer a supplemental view of Valvoline's operating performance by adjusting for non-operating items like depreciation, amortization, interest, and taxes - EBITDA measures provide a **meaningful supplemental presentation** of Valvoline's operating performance between periods on a comparable basis [38](index=38&type=chunk) - They account for depreciable assets, income tax, and interest costs related to Valvoline's tax and capital structures [38](index=38&type=chunk) [Free Cash Flow Measures](index=15&type=section&id=Free_Cash_Flow_Measures_Definition) Free cash flow metrics are used to assess cash generation available for debt, equity holders, and investments, with a focus on cash flow before growth capital expenditures - Management uses **free cash flow** and **free cash flow excluding growth capital expenditures** as additional non-GAAP metrics of cash flow generation [39](index=39&type=chunk) - These measures indicate **ongoing cash generated** that is available for debt and equity holders, as well as other investment opportunities [39](index=39&type=chunk) - Free cash flow excluding growth capital expenditures provides a supplemental view of cash flow generation before investments in growth capital, focusing on **maintenance capital expenditures** [39](index=39&type=chunk) [Adjusted Profitability Measures](index=15&type=section&id=Adjusted_Profitability_Measures_Definition) Adjusted profitability measures facilitate period-over-period comparisons by excluding items not reflective of Valvoline's core operational performance - Adjusted profitability measures (adjusted net income, diluted earnings per share, and EBITDA) enable the **comparison of financial trends and results** between periods [40](index=40&type=chunk) - They exclude certain items that may not be reflective of the Company's underlying and ongoing operational performance or vary independently of business performance [40](index=40&type=chunk) [Key Items](index=15&type=section&id=Key_Items_Definition) Key items are defined as unusual, infrequent, or non-operational activities that are excluded from adjusted financial measures to improve comparability of operational results - Key items are unusual, infrequent, or non-operational activities not directly attributable to the underlying business, which management believes impact the comparability of operational results between periods [41](index=41&type=chunk) - Net pension and other postretirement plan (income) expenses: Reflects market-driven changes and legacy amounts, not operational performance [43](index=43&type=chunk) - Net legacy and separation-related expenses: Associated with legacy businesses and separation from former parent company, not reflective of ongoing operations [44](index=44&type=chunk) - Information technology transition costs: Expenses directly related to IT transitions (e.g., ERP implementation), not considered ongoing operating expenses [45](index=45&type=chunk) - Investment and divestiture-related costs (income): Activity associated with significant acquisitions, investments, and divestitures, not reflective of ongoing operations [46](index=46&type=chunk) - Debt extinguishment and modification costs: Accelerated amortization and third-party fees related to debt transactions, not indicative of future servicing costs [47](index=47&type=chunk) Corporate Information and Disclosures This section provides details on Valvoline's conference call, key business measure definitions, company overview, forward-looking statements, and investor/media contacts [Conference Call Webcast](index=4&type=section&id=Conference_Call_Webcast) Valvoline hosted a live audio webcast for its third quarter fiscal 2025 conference call on August 6, 2025, with supporting materials and an archived version available on its investor relations website - Live audio webcast of Q3 FY25 conference call held on **August 6, 2025, at 9 a.m. ET** [14](index=14&type=chunk) - Webcast and supporting materials are accessible through Valvoline's website at http://investors.valvoline.com [14](index=14&type=chunk) [Key Business Measures Definitions](index=4&type=section&id=Key_Business_Measures_Definitions) Valvoline defines and utilizes key business measures such as system-wide, company-operated, and franchised store counts, along with system-wide SSS and store sales, as supplementary tools to evaluate operating performance alongside GAAP measures - Valvoline tracks operating performance using **system-wide, company-operated, and franchised store counts**, and **system-wide SSS and store sales** [15](index=15&type=chunk) - These measures are considered supplements to, not substitutes for, Valvoline's net revenues and operating income, as determined in accordance with U.S. GAAP [15](index=15&type=chunk) - SSS is defined as net revenues of U.S. Valvoline Instant Oil Change (VIOC) stores with same stores defined at the beginning of the month following the completion of **12 full months** in operation within the system [16](index=16&type=chunk) [About Valvoline Inc.](index=5&type=section&id=About_Valvoline_Inc) Valvoline Inc. is a leading provider of preventive automotive maintenance, operating an extensive network of over 2,100 service centers across the U.S. and Canada, performing more than 28 million services annually - Valvoline Inc. delivers quick, easy, trusted service at more than **2,100 franchised and company-operated service centers** across the United States and Canada [20](index=20&type=chunk) - The company completes more than **28 million services annually** system-wide, ranging from oil changes to manufacturer-recommended maintenance [20](index=20&type=chunk) - Valvoline employs **11,000 team members** focused on growing the core business, expanding the retail network, and planning for future vehicles [20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward_Looking_Statements) The report includes forward-looking statements regarding Valvoline's future operations, financial results, growth strategies, and market opportunities, which are inherently subject to risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update them - Statements about proposed transactions, growth strategy, benefits from acquisitions and refranchising, future opportunities, financial/operating results, and market opportunities are **forward-looking** [21](index=21&type=chunk) - These statements are based on current expectations and are subject to **risks and uncertainties** that may cause results to differ materially [21](index=21&type=chunk) - Additional information regarding these risks is described in Valvoline's SEC filings (Forms 10-K and 10-Q), available on its website or the SEC's website [21](index=21&type=chunk) [Investor and Media Contacts](index=5&type=section&id=Investor_and_Media_Contacts) Contact information for investor and media inquiries is provided for direct communication with Valvoline's respective departments - Investor Inquiries: Elizabeth B. Clevinger, **+1 (859) 357-3155**, IR@valvoline.com [22](index=22&type=chunk) - Media Inquiries: Angela Davied, media@valvoline.com [23](index=23&type=chunk)

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Valvoline, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Valvoline is expected to report quarterly earnings of $0.46 per share, reflecting a +2.2% change year-over-year, with revenues projected at $435.64 million, up 3.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst assessments [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +0.44% for Valvoline, suggesting recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Valvoline's expected earnings were $0.36 per share, but it delivered $0.34, resulting in a surprise of -5.56%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13][14]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment and stock performance [15].

Company Overview - Valvoline Inc. is a leader in preventive automotive maintenance, operating approximately 2,100 service centers across the United States and Canada [3] - The company performs over 28 million services annually, including quick oil changes and various maintenance services [3] - Valvoline employs around 11,000 team members focused on business growth, retail network expansion, and future vehicle planning [3] Financial Reporting - Valvoline plans to report its financial results for the fiscal third quarter on August 6, 2025 [1] - A live audio webcast for analysts and investors will take place on the same day at 9 a.m. ET [1] - A replay of the webcast will be available shortly after the call concludes on the company's Investor Relations website [2]

Core Insights - Valvoline Inc. released its FY24 Impact Report, showcasing its contributions to environmental, social, and governance issues during the 2024 fiscal year [1][2] Company Achievements - The company achieved a record-breaking fundraising year for Children's Miracle Network Hospitals and opened its 2000th store, reflecting significant growth and community impact [2] - Valvoline Inc. operates over 2,000 service centers across the U.S. and Canada, completing more than 28 million services annually, including quick oil changes and various maintenance services [4] - The company employs approximately 11,000 team members focused on expanding the business and preparing for future vehicle needs [4] Environmental and Social Initiatives - Valvoline Inc. became an EPA Green Power Partner and was recognized as a Top 30 Retail Partner for its efforts in increasing renewable energy usage [6] - The launch of the "Happy to Help" community impact platform emphasizes youth health and mental well-being, alongside record donations to Children's Miracle Network Hospitals [6] - The company is expanding professional growth and development opportunities for its service center employees as it grows its network [6]

Group 1 - Valvoline Instant Oil Change is launching a School Supply Drive from July 14th to August 3rd to support students in Southwest Florida as they prepare for the new school year [1][2] - Customers who donate new school supplies will receive a 20% discount on their total purchase, with all donations benefiting local students and teachers in Charlotte, Collier, and Lee counties [2] - The company operates over 2,000 service centers across the U.S. and Canada, completing more than 28 million services annually, including oil changes and maintenance services [4] Group 2 - Henley Enterprises, Inc. is the largest franchisee of Valvoline Instant Oil Change, operating more than 260 service centers across eight states [5]

Group 1 - Valvoline Instant Oil Change (VIOC) locations in New England are participating in the "A Chance for Kids & Families®" program for the 12th consecutive year to raise funds for Dana-Farber Cancer Institute and the Jimmy Fund [1][2] - Customers can donate $1, $5, or $10 at participating VIOC locations from July 13 to August 2 to support cancer patients and their families [1] - Henley Enterprises, the largest franchisee of VIOC, has raised over $380,000 through this program to support critical research and patient care at Dana-Farber [2] Group 2 - Valvoline Inc. operates more than 2,000 service centers across the U.S. and Canada, completing over 28 million services annually [3] - The company employs 11,000 team members focused on growing the core business and expanding the retail network [3] - Henley Enterprises, founded in 1989, operates over 260 quick-lube service centers in 8 states [4] Group 3 - The Jimmy Fund, established in 1948, supports Dana-Farber Cancer Institute's mission for patient care and cancer research through community fundraising events [5] - The Jimmy Fund is an official charity of the Boston Red Sox and has received support from millions of people since its inception [5]

Valvoline (VVV) FY Conference Summary Company Overview - **Company**: Valvoline (VVV) - **Industry**: Automotive Services, specifically quick lube and oil change services - **Market Position**: Currently holds a 5% market share in a fragmented market with significant growth potential Key Insights and Arguments 1. **Growth Story**: Valvoline is positioned in a resilient industry with multiple growth drivers including increasing miles driven, aging vehicle ownership, and a shift towards premium synthetic oils [2][3] 2. **Market Opportunity**: The company has a substantial white space opportunity, covering only 35% of the population, indicating potential for expansion [4] 3. **Franchise Partners**: Long-term franchise partners are increasing their commitment to growth, which is expected to enhance Valvoline's market presence [4] 4. **Consumer Behavior**: Despite macroeconomic uncertainties, Valvoline's customer base remains stable, with no significant trade-down or service deferrals observed [10][12] 5. **Impact of Economic Cycles**: Historical data suggests that during economic downturns, consumers may defer purchases but still prioritize vehicle maintenance, benefiting Valvoline [13][15] 6. **Cost Mitigation**: The company has diversified its supply chain to mitigate tariff impacts, with labor being the largest cost component [18][19] 7. **Pricing Strategy**: Valvoline maintains pricing stability in the industry, with a focus on competitive pricing rather than merely passing through costs [21][29] 8. **Ticket Drivers**: Key contributors to ticket growth include premium mix, non-oil change revenue, and strategic pricing adjustments [22][23] 9. **Non-Oil Change Revenue**: This segment has grown to over 20% of the mix, with further opportunities for expansion through improved execution and service offerings [37][41] 10. **Operational Efficiency**: The company is focused on improving throughput and operational standards to enhance customer service and reduce wait times [49][51] Additional Important Points 1. **Refranchising Strategy**: Valvoline is strategically refranchising to create long-term shareholder value, with a focus on development agreements that incentivize franchisees [52][56] 2. **Store Growth Commitment**: The company aims to open 250 new stores by 2027, supported by updated development agreements with franchise partners [64][65] 3. **Margin Outlook**: Valvoline anticipates EBITDA margins to improve over the medium to long term, despite current pressures from investments and refranchising [61][63] 4. **Technology Investments**: Investments in technology and analytics are expected to enhance operational efficiency and customer service [45][46] This summary encapsulates the key points discussed during the Valvoline FY Conference, highlighting the company's growth potential, market dynamics, and strategic initiatives.

Valvoline (VVV) 2025 Conference Summary Company Overview - Valvoline is a leading automotive services platform offering oil changes and preventative maintenance services with approximately 2,100 locations, over half of which are franchised [1][2] Core Industry Insights - The automotive services industry is resilient with positive tailwinds such as increasing miles driven, vehicle complexity, and vehicle age, which are expected to drive growth in ticket and transaction volumes [4][5] - Valvoline's market penetration is low, with only 20% to 25% of oil changes occurring in their channel, indicating significant growth potential [5] Company Strengths - Valvoline has a strong brand presence, nearly 60 years old, which denotes quality and customer loyalty [5] - The company boasts a customer experience rating of 4.7 out of 5 across its stores, serving over a million customers in the past year [6] - Valvoline has developed robust data analytics capabilities for customer and real estate, enhancing marketing efficiency and location selection [6][7] Market Share and Growth Potential - Valvoline currently holds a 5% market share, with some mature markets approaching 20%, indicating substantial upside potential [7][13] - The company aims to grow its network significantly, targeting 3,500+ units by 2027, with a focus on accelerating franchise growth from 50 to 150 new units annually [14][15] Financial Metrics and Investment Returns - New units typically mature in 3 to 5 years, with a projected 30% cash-on-cash return for franchise partners [17][18] - The company is focused on refranchising to enhance shareholder value, leveraging existing franchise partners and developing new ones [19][20] Recent Acquisition - Valvoline announced the acquisition of Breeze, adding 200 locations, which is expected to create synergistic value and enhance market presence [28][30] - The acquisition is under review by the FTC, which is not uncommon for the industry, and Valvoline is optimistic about the outcome [31][32] Same Store Sales and Growth Drivers - Same store sales have compounded close to 10% over the last decade, with a guidance of 5% to 7% for the current year due to more normalized inflationary levels [34][36] - Key drivers for growth include transaction growth from maturing stores, fleet sales, and non-oil change revenue services [38][39] Consumer Behavior Insights - Despite economic uncertainty, consumers are maintaining their vehicles longer and are not trading down in service quality [45][46] - Valvoline is adapting to evolving vehicle maintenance needs, including the rise of electric vehicles, by ensuring convenience and trust in service delivery [58][60] Margin and Cost Management - Valvoline is investing in technology to drive margin expansion, with a long-term goal of increasing margins from 26% to 29% [47][48] - The company anticipates returning to a growth trajectory where profit outpaces sales as it laps previous investments and refranchising impacts [52][53] Conclusion - Valvoline is well-positioned for growth with a strong brand, significant market opportunities, and a focus on enhancing customer experience and operational efficiency. The company is optimistic about its future prospects, driven by strategic growth initiatives and market dynamics.

Core Insights - Valvoline Inc. will participate in two investor conferences in June 2025, indicating active engagement with investors and stakeholders [1][2] Group 1: Investor Conferences - Baird 2025 Global Consumer, Technology & Services Conference will take place on June 3, 2025, at 3:45 p.m. Eastern Time [2] - TD Cowen 9th Annual Future of the Consumer Conference is scheduled for June 4, 2025, at 4:15 p.m. Eastern Time [2] - A live audio webcast of the events will be available on Valvoline's investor relations website, with an archived version accessible afterward [2] Group 2: Company Overview - Valvoline Inc. operates approximately 2,100 franchised and company-operated service centers across the United States and Canada [3] - The company performs over 28 million services annually, including quick oil changes and various maintenance services [3] - Valvoline employs around 11,000 team members focused on business growth, retail network expansion, and future vehicle planning [3]