On this page of StockholderLetter.com we present the latest annual shareholder letter from VALVOLINE INC — ticker symbol VVV. Reading current and past VVV letters to shareholders can bring important insights into the investment thesis.

 •  12/18/2024 Letter Continued (Full PDF)
 •  12/15/2023 VVV Stockholder Letter
 •  More "Consumer Services" Category Stockholder Letters
 •  VVV Benford's Law Stock Score = 99

VVV Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2024

Forward-Looking Statements:
Certain statements in this Annual Report, other than statements of historical fact, including estimates, projections and statements related to
our business plans and operating results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements may include, without limitation, executing on the growth strategy to create shareholder value by
driving the full potential in the Company   s core business, accelerating network growth and innovating to meet the needs of customers and the
evolving car parc; realizing the benefits from the sale of Global Products; and future opportunities for the remaining stand-alone retail
business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage
ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations
and targets for future periods. We have identified some of these forward-looking statements with words such as    anticipates,       believes,   
   expects,       estimates,       is likely,       predicts,       projects,       forecasts,       may,       will,       should,    and    intends    and the negative of these words or
other comparable terminology. These forward-looking statements are based on our current expectations, estimates, projections and
assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially
from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are
described in our Form 10-K, which has been included in this Annual Report and is available on our website at http://investors.valvoine.com/
sec-filings and on the SEC   s website at http://www.sec.gov. We assume no obligation to update or revise these forward-looking statements for
any reason, even if new information becomes available in the future, unless required by law.
Non-GAAP Measures:
This Annual Report includes certain financial measures that do not conform to generally accepted accounting principles in the U.S. (U.S.
GAAP), and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management believes
including this non-GAAP information assists investors in understanding the ongoing operating performance of Valvoline   s business by
presenting comparable financial results between periods. The non-GAAP information provided may not be consistent with the methodologies
used by other companies. Information regarding Valvoline   s definitions, calculations and reconciliation of non-GAAP measures is included in
the fiscal 2024 form 10-K, which has been enclosed with this Annual Report.

DEAR VALVOLINE INC. STAKEHOLDERS,
More than 28 million times we delivered on our promise of quick, easy, trusted services in Fiscal Year 2024. Every time a customer enters
one of our store bays, we   re doing more than servicing a vehicle -- we   re helping people across the United States and Canada drive safely
wherever life   s journeys take them.
This drove strong results in FY24, demonstrating once again the profitable growth of Valvoline Inc. We generated $1.6 billion in revenue
and surpassed $3 billion in system-wide store sales, both increasing 12% over the prior year. We also achieved our 18th consecutive year
of system-wide same store sales growth, with system-wide same store sales increasing 6.7%. Income from continuing operations was
$215 million, with adjusted EBITDA of $443 million up 17%.
We continued to invest in our strategic priorities in FY24: drive full potential of the core business, accelerate network growth, and target
customer and service expansion. Here are a few highlights of the progress we made in each of these areas:
1. DRIVE FULL POTENTIAL IN THE CORE BUSINESS.
We took a fresh look at our SuperPro   process. In partnership with our franchisees, we implemented process changes to deliver a faster
and more convenient service experience to our customers. And we continue to attract new customers to both our new and mature stores,
with the majority of new customers coming from dealerships and other tire and automotive service providers. Further, by managing our
costs, we improved our adjusted EBITDA margins by 100 basis points to 27.3%.
2. ACCELERATE NETWORK GROWTH.
We accomplished an important milestone in FY24, with a store in Centerville, Ohio, becoming the 2,000th store in our network. This was
just one of 158 net new stores added system-wide, bringing our total system-wide store locations to 2,010 at the end of the fiscal year. We
welcomed several new franchise partners to the network this past year and continue to invest in the partnership with our entire franchise
network to grow our market share and achieve our goal of 3,500+ locations.
3. TARGET CUSTOMER & SERVICE EXPANSION.
More customers received non-oil change services from us in FY24, as our well-trained technicians helped customers address the
preventive maintenance needs of their vehicles. It was also a strong year for our fleet business. Over the past three years, our system-wide
fleet transactions increased at a compounded annual growth rate of 14%.
How did we accomplish these results? Simple     it all starts with our people. Our more than 11,000 team members and the team
members of our franchise partners are committed to delivering our distinct V-Class service every day. I am grateful for their drive,
tenacity, and commitment to support our customers, our communities, and each other. Their    happy to help    attitude played an
important role in delivering strong results.
Together, we continue to pursue more improvements to our customer experience, identify more efficient ways to deliver our services,
welcome more franchise partners, and expand into more communities to serve more customers. With the strength of our 150+ year-old
brand and the team we have assembled, we are focused on growing and evolving our business which will strengthen and extend our
leadership position for generations to come.
Sincerely,
Lori Flees
President and Chief Executive Officer

(This page has been left blank intentionally.)



 12/18/2024 Letter Continued (Full PDF)