Visibility to Growth and Disciplined Capital Management
We Believe Valero is a Compelling Investment
VLO Percent Rank Versus S&P 500 Constituents
15%
3.7%
133%
Valero
K
Valero
Valero
v
Valero
1.5x
6.1x
31
Cumpan
Companies
Valero
mastercant
amazon
NVIDIA
Adobe
Compelling Dividend Yield
(≥3% Annualized dividend yield)
Competitive EBITDA Growth
(≥10% Consensus CAGR for
2019-2021)
Valero
Consensus Dividend
EBITDA
CAGR
Yield
TSR
Since
Net Debt to
2014(1)
TTM
Adjusted
EV / 2020
EBITDA (3)
2019-2021
EBITDA (2)
.
Premier asset portfolio and operations
• Managed risks
- Proven operations excellence with one of the lowest cash
operating costs among peer group(4)
• Disciplined growth strategy
- Invest in high return projects focused on operating cost control,
market expansion and margin improvement
Returns focused with a target payout ratio of 40% to 50%
431
Companies
343
Companies
75
15
Conces
AT&T
Google High Shareholder Return
J.P.Morgan UnitedHeadthcare
BROADCOM Microsoft
globalpayments VISA
DISNEY CAT Walmart
Johon-Johnson
COSTCO
WHOLESALE
ExxonMobil 3M IBM
Chevron
(≥125% TSR since 2014)(1)
NETFLIX AMD CVS Honeywell
Investment Grade
(BBB-/Baa3)
Bank of America
P&G
Large Cap
M
DELL GE
ups
(Market cap
>$10 billion)
CISCO
BLACKROCK
verizon
MERCK (intel Pfizer
500
S&P 500
Companies
Coca-Cola
- Sustainable annual dividend growth
- Target continued buybacks
STANDARD
& POOR'S 500
Source: Bloomberg as of October 31, 2019. (1) TSR from December 31, 2014 through October 31, 2019 includes stock price appreciation and dividends paid. (2) Net debt to adjusted EBITDA for 12
months ended September 30, 2019. (3) EV/EBITDA based on 2020 consensus estimates. See slides 37 - 41 for non-GAAP disclosures. (4) Peer group includes PSX, MPC, HFC, and PBF.
20
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