ASX Release

23 August 2021

2021 HALF YEAR REPORT

Ampol Limited (ASX:ALD) provides the attached 2021 Half Year Report (incorporating Appendix 4D).

Authorised for release by: the Board of Ampol Limited.

 1

Half year information given

to the ASX under listing rule 4.2A.3

The 2021 Half Year Financial Report should be read in

conjunction with the 2020 Financial Report.

AMPOL LIMITED
LEVEL 24, 2 MARKET STREET SYDNEY
NSW 2000 AUSTRALIA
2 AMPOL LIMITED 2021 Half Year Report

Ampol Limited
ACN 004 201 307

Appendix 4D - Results for Announcement to the Market

Half year ended 30 June

Key results (Millions of dollars) 2021 2020

Revenue from ordinary activities ▲ 22% 9,817.2 8,052.9

Other income >100% 40.8 2.1

Profit/(loss) from ordinary activities after tax for the period attributable to members of
the parent:

Statutory basis(i) >100% 325.5 (626.2)

Replacement cost basis (excluding significant items after tax)(ii) ▲ 70% 204.5 120.1

Dividend 2021 2020

Dividends declared

Amount per security (fully franked):(iii)

Interim 52c 25c

Final N/A 23c

Record date for determining entitlement to 2021 interim dividend 6 September 2021

Payment date for the 2021 interim dividend 23 September 2021

Comments update
 Strong recovery in Group RCOP EBIT of $339.8 million (1H 2020: $221.4 million) due to improved Lytton refinery earnings,
including the benefit of the Temporary Refining Production Payment (TRPP) of $40.0 million and successful execution of the
International and Convenience Retail EBIT uplift initiatives.
 HCOP NPAT attributable to members of the parent of $325.5 million compared to a loss of $626.2 in the first half of 2020. The
result reflects an improved RCOP NPAT, inventory gains of $139.2 million and a material reduction in significant items to $18.2
million.
 Net borrowings(iv) at 30 June 2021 were $734.8 million compared to $433.9 million at 31 December 2020, supported by,
operating cashflows and inventory gains from a favourable crude oil price, offset by shareholder returns including the $300.4
million Off-market Buy-back and ordinary dividends.
 Reflecting this performance, the Company declared an interim dividend of 52 cps, representing a 61% pay out of its RCOP
NPAT and a 108% increase from the prior year interim dividend.

(i) Statutory basis financial information is referred to throughout this document as Historical Cost Basis or “HCOP”.
(ii) Replacement cost of sales operating profit (RCOP) excluding significant items (on a pre-tax and post-tax basis) is a non-International Financial Reporting
Standards (IFRS) measure and is unaudited. It is derived from the statutory profit adjusted for inventory (gains)/losses, as management believes this presents a
clearer picture of the Company’s underlying business performance and is consistent with the basis of reporting commonly used within the global oil industry.
RCOP excludes the unintended impact of the fall or rise in oil and product prices (key external factors). It is calculated by restating the cost of sales using the
replacement cost of goods sold rather than the historical cost, including the effect of contract-based revenue lags. Refer to note B4 in the Half Year Financial
Statements for a reconciliation of Statutory Profit to Replacement Cost basis profit.
(iii) There is no conduit foreign income component distributed in relation to the dividend. There is no Dividend Reinvestment Plan in operation.
(iv) Net borrowings is a non-statutory measure calculated as total interest-bearing liabilities (excluding liabilities arising under AASB 16 Leases) less cash and cash
equivalents.
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Ampol Limited
ACN 004 201 307

Appendix 4D - Key Performance Indicators

Half year ended 30 June

Key results (Millions of dollars) 2021 2020

Net profit/(loss) replacement cost basis net profit/(loss) before tax (excluding 320.9 221.1
significant items)(i)(ii)

Net finance costs (48.9) (53.4)

Income tax expense (67.5) (47.6)

Replacement cost basis net profit/(loss) after tax (excluding significant items)(i)(ii) 204.5 120.1
(iii)
Inventory gain/(loss) after tax 139.2 (434.4)

Significant items loss after tax(i) (18.2) (311.9)

(iii)
Historical cost net profit/(loss) after tax attributable to members of the parent 325.5 (626.2)

Non-controlling interest 18.9 0.3

Historical cost net profit/(loss) after tax 344.4 (625.9)

Earnings per share (cents)

Historical cost basis including significant items – basic 135.7 (247.5)

Historical cost basis including significant items – diluted 135.4 (247.5)

(i)(ii)
Replacement cost basis excluding significant items – basic 85.2 47.5

Replacement cost basis excluding significant items – diluted(i)(ii) 85.1 47.5

30 June 31 December
Key results (Millions of dollars) 2021 2020

Return on equity attributable to members of the parent entity after tax

Replacement cost basis (excluding significant items)(i)(ii) 7.0% 7.2%

Historical cost basis (including significant items)(i) 11.1% (16.4%)

Net tangible asset backing per share ($)(iv) 10.00 9.58

Interest bearing liabilities

Net borrowings(v) 734.8 433.9

Lease liabilities 981.8 914.2

Interest bearing liabilities net of cash 1,716.6 1,348.1

Gearing (excluding leases)(vi) 18.6% 11.9%

Gearing (lease adjusted) 34.8% 29.5%

(i) Significant items are events that Management and the Board consider to be outside the scope of usual business. These are excluded to give a clearer
reflection of underlying financial performance from one period to the next.
(ii) Refer to Footnote (ii) on prior page regarding Replacement cost basis.
(iii) Inventory gains/(losses) after tax is a non-IFRS un-audited adjustment to statutory profit used to derive the replacement cost measure referred to in
Footnote (ii) on prior page.
(iv) Net tangible asset backing per share is derived by dividing net tangible assets by the number of shares issued. Net tangible assets are net assets
attributable to members of Ampol less intangible assets. The number of ordinary shares used in the calculation of net tangible assets per share was 238
million (1H 2020: 250 million).
(v) Net borrowings is a non-statutory measure calculated as total interest-bearing liabilities (excluding liabilities arising under AASB 16 Leases) less cash and
cash equivalents.
(vi) The Group’s gearing ratio is calculated as net borrowings/total capital. Total capital is calculated as equity (as shown in the balance sheet) plus net
borrowings.
 4 AMPOL LIMITED 2021 Half Year Report

(vii)

Contents

Directors Report……………………………..5
Financial statements………………………19

The 2021 Half Year Financial Report for Ampol

Limited (Ampol) includes the:
 Directors’ Report
 Directors’ Declaration
 Independent Auditor’s Review Report
 Half Year Financial Statements
 Notes to the Half Year Financial Statements
for the Group

For the purposes of this report, the Group refers

to Ampol and its controlled entities.

The 2021 Half Year Financial Report should be

read in conjunction with the 2020 Financial
Report.
 5

Directors’ Report

The Board
The directors of Ampol Limited (Ampol) present the 2021 Directors’ Report and the 2021 Financial Report for Ampol and its
controlled entities (collectively referred to as the Group) for the half year ended 30 June 2021.
On 23 August 2021, the Directors of Ampol resolved to authorise the issue of the Half Year Financial Report for the half year ended
30 June 2021.
Board of Directors
The following persons were directors holding office at any time during the half year period and up to the date of this report, unless
otherwise stated.

Name Position
1. Steven Gregg Independent, Non-executive Director (appointed 9 October 2015) and Chairman
(appointed 18 August 2017)
2. Matthew Halliday Managing Director and Chief Executive Officer (appointed 29 June 2020)
3. Mark Chellew Independent, Non-executive Director (appointed 2 April 2018)
4. Melinda Conrad Independent, Non-executive Director (appointed 1 March 2017)
5. Michael Ihlein Independent, Non-executive Director (appointed 1 June 2020)
6. Gary Smith Independent, Non-executive Director (appointed 1 June 2020)
7. Penny Winn Independent, Non-executive Director (appointed 1 November 2015)
8. Barbara Ward AM Independent, Non-executive Director (retired 13 May 2021)

A biography of each current director is available on the Ampol website at https://www.ampol.com.au/about-ampol/our-people/board-

of-directors.
Board and committee changes
On 13 May 2021, Barbara Ward AM retired as a director of Ampol and Melinda Conrad was appointed as Chair of the Human
Resources Committee, succeeding Barbara Ward AM.
On 26 February 2021, Ampol announced the appointment of Michael Abbott as Company Secretary with effect from 26 February
2021 following the resignation of Georgina Koch as Company Secretary effective the same date.
Executive changes
On 29 April 2021, Ampol announced the appointment of Greg Barnes as Chief Financial Officer with effect from 1 July 2021. On
that date, Jeff Etherington who acted as Interim Chief Financial Officer, returned to his role of Deputy CFO, reporting to Mr Barnes.
A biography of each current Ampol Leadership Team member is available on the Ampol website at https://www.ampol.com.au/about-
ampol/our-people/leadership-team.
6 AMPOL LIMITED 2021 Half Year Report

Directors’ Report continued

Operating and financial review

The purpose of the operating and financial review (OFR) is to enhance the periodic financial reporting and provide shareholders
with additional information regarding the Group’s operations, financial position, business strategies and prospects. The review
complements the Financial Report on pages 19 to 39.
The OFR may contain forward-looking statements. These statements are by their nature estimates based solely on the information
available at the time of this report, and there can be no certainty of outcome in relation to the matters to which the statements relate.

Company overview
Ampol is an independent Australian company and the nation’s leader in transport fuels.
We supply the country’s largest branded petrol and convenience network as well as refining, importing and marketing fuels and
lubricants. We have a deep history spanning over 120 years, having grown to become the largest transport fuels company and is
listed on the Australian Securities Exchange (ASX).
Ampol supplies fuel to around 80,000 customers in diverse markets across the Australian economy, including defence, mining,
transport, marine, agriculture, aviation and other commercial sectors. Across our retail network, we serve more than three million
customers every week with fuel and convenience products.
Our ability to service our broad customer base is supported by our robust supply chain and strategic infrastructure positions across
the country, which includes 16 terminals, 6 major pipelines, 55 wet depots, 1,898 branded sites (including 697 company-controlled
retail sites) and one refinery located in Lytton, Queensland. This network is supported by over 8,100 people across Australia and
overseas.
In recent years, we have leveraged our Australian business to extend our supply chain and operations into international markets.
This includes our Trading and Shipping business that operates out of Singapore and Houston in the USA, and our international
storage positions across the Asia Pacific region. We also have a growing presence in New Zealand as owner of Gull New Zealand,
which operates the largest independent import terminal in the country and a retail network. Ampol also owns a 20% equity interest
in Seaoil, a leading independent fuel company in the Philippines.
Ampol Limited (previously Caltex) returned to its iconic Australian name following shareholder approval on 14 May 2020. The
national roll-out of the Ampol brand across our retail network has begun, with 389 sites rebranded as at 30 June 2021. All remaining
sites will be rebranded by the end of 2022.
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Directors’ Report continued

Operating and financial review continued

Group Strategy
Ampol’s strategy is focused around three elements underpinned by our market-leading position in transport fuels, strategic assets,
customer positions and supply chain expertise.
Evolving our business to build the foundations for energy transition is one of the three key elements of Ampol’s strategy. Ampol’s
privileged assets, supply chain expertise and deep customer relationships mean we are uniquely placed to be part of the
decarbonisation solution by enabling an orderly energy transition and capitalising on opportunities that can deliver sustainable
returns for shareholders over the long-term.
8 AMPOL LIMITED 2021 Half Year Report

Directors’ Report continued

Operating and financial review continued

Ampol results 30 June 2021
On an historical cost profit basis, Ampol recorded an after-tax profit attributable to equity holders of the parent entity of $325.5
million, including a significant items loss of $18.2 million and a product and crude oil inventory gain of $139.2 million after tax. This
compares favourably to the 2020 half year after-tax loss of $626.2 million, which included a significant items loss of $311.9 million
and a product and crude oil inventory loss of $434.4 million after tax.
Replacement cost of sales operating profit (RCOP) excluding significant items (on a pre-tax and post-tax basis) is a non-
International Financial Reporting Standards (IFRS) measure and is unaudited. It is derived from the statutory profit adjusted for
inventory (gains)/losses, as management believes this presents a clearer picture of the Company’s underlying business
performance and is consistent with the basis of reporting commonly used within the global oil industry. RCOP excludes the
unintended impact of the fall or rise in oil and product prices (key external factors). It is calculated by restating the cost of sales
using the replacement cost of goods sold rather than the historical cost, including the effect of contract-based revenue lags. Refer to
note B4 in the Half Year Financial Statements for a reconciliation of Statutory Profit to Replacement Cost basis profit.

A reconciliation of the RCOP result to the statutory HCOP result is set out in the following table:

June 2021 June 2020

$m $m
Reconciliation of the underlying result to the statutory result (after tax) (after tax)

Net profit/(loss) attributable to equity holders of the parent entity 325.5 (626.2)

Significant items loss 18.2 311.9

Inventory (gain)/loss (139.2) 434.4

RCOP NPAT (excluding significant items) 204.5 120.1

On an RCOP basis, Ampol recorded an after-tax profit excluding significant items for the first half of 2021 of $204.5 million (1H 2020:
$120.1 million).

$m
RCOP NPAT
700

600

500
344
341 263
400 287

300 256
175
209
200
92
265 294 296
262
100 180 205
165 135 120
0
2013 2014 2015 2016 2017 2018 2019 2020 2021

1H RCOP NPAT 2H RCOP NPAT

Dividend
The Board has declared an interim fully franked dividend of 52 cents per share (61% of RCOP NPAT) for the first half of 2021, in
line with the Dividend Policy pay-out ratio of 50% to 70% of RCOP NPAT excluding Significant Items. This compares to Ampol’s
2020 interim fully franked dividend of 25 cents per share (52% of RCOP NPAT). The record and payment dates for the interim
dividend are referenced on page 31.
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Directors’ Report continued

Directors’ Report
CONTINUED
CONTINUED

Operating and financial review continued

Income statement

2021 2020
For the half year ended 30 June $m $m
1. Total revenue 9,817.2 8,052.9
Other income 40.8 2.1
Share of net profit of entities accounted for using the equity method 6.5 4.0
(i)
2. Total expenses (9,524.7) (7,837.6)
Replacement cost earnings before interest and tax, excluding significant items 339.8 221.4
Finance income 0.1 0.7
Finance expenses (49.0) (54.1)
3. Net finance costs (48.9) (53.4)
(ii)
Income tax expense (67.5) (47.6)
Non-controlling interest (18.9) (0.3)
Replacement cost of sales operating profit (RCOP) 204.5 120.1
4. Significant items loss after tax (18.2) (311.9)
5. Inventory gain/(loss) after tax 139.2 (434.4)
(iii)
Historical cost net profit/(loss) after tax attributable to parent 325.5 (626.2)
Non-controlling interest 18.9 0.3
Historical cost net profit/(loss) after tax 344.4 (625.9)
Dividends declared or paid
Interim dividend per share 52c 25c
Final dividend per share N/A 23c
Earnings/(loss) per share (cents)
Historical cost basis including significant items – basic 135.7 (247.5)
Historical cost basis including significant items – diluted 135.4 (247.5)
Replacement cost basis excluding significant items – basic 85.2 47.5
Replacement cost basis excluding significant items – diluted 85.1 47.5

Discussion and analysis – Income statement

1. Total revenue and Total revenue increased due to an 11% increase in total sales volumes (11.1 BL) compared to 1H
other income 2020 (9.9 BL). Australian Dollar product prices are also on average 22% higher than 1H 2020.
▲ 22% Higher product prices in 1H 2021 were driven by a higher weighted average Dated Brent crude oil
price (1H 2021: US$65/bbl vs 1H 2020: US$40/bbl).
Other income increased due to the benefit of the Lytton refinery Temporary Refinery Production
Program of $40.0 million (1H 2020: $nil) and COVID-19 government wage support of $0.6 million
(1H 2020: $2.1 million) received from Australia, New Zealand and Singapore government
programs.
2. Total expenses – Total expenses increased primarily as a result of higher replacement cost of goods sold, driven by
replacement the same components noted above for fuel revenue offset by expenses in half year 2020 of
cost basis $364.8m comprising of Lytton refinery impairment ($80.0 million), Convenience Retail impairment
▲ 22% ($233.0 million), fixed asset write off components ($41.8 million) and net loss on disposals of
property, plant and equipment ($10.0 million) not repeated in half year 2021.

(i) Excludes significant item loss of $26.0 million (1H 2020: $445.6 million loss) and inventory gain of $198.9 million (1H 2020: $620.6 million inventory loss).
(ii) Excludes tax expense on inventory gain of $59.7 million (1H 2020: $186.2 million tax benefit) and tax benefit on significant items loss of $7.8 million (1H
2020: $133.7 million).
(iii) Statutory basis financial information is referred to throughout this document as Historical Cost Basis or “HCOP”.
10 AMPOL LIMITED 2021 Half Year Report

Directors’ Report continued

CONTINUED

Operating and financial review continued

Income statement continued

Discussion and analysis – Income statement

3. Net finance costs Net finance costs decreased by $4.5 million compared with 1H 2020 mainly as a result of unwinding
▼ 8% of discounting of the provision balances partially offset by incremental interest expense on
subordinated notes issued in December 2020.

4. Significant items loss The significant item loss before tax of $26.0 million (1H 2020: $445.6 million) and after tax of $18.2
after tax million (1H 2020: $311.9 million) relates to:
$18.2 million
Ampol rebranding expense

The Group has recognised an expense of $26.6 million (1H 2020: $56.9 million) relating to the
rebranding program currently being undertaken to remove Caltex signage and install Ampol
branding at the Group’s sites. Current period costs include accelerated depreciation $5.8 million (1H
2020: $6.6 million) and other operating expenses $20.8 million (1H 2020: $4.3 million). In the period
ended 30 June 2020, a provision of $46.0 million was also recognised in relation to the contractual
obligation to undertake rebranding work at sites owned by a third party, to be completed before 31
December 2022.

Other income
Other income includes COVID-19 government wage support of $0.6 million (1H 2020: $2.1 million)
received from Australia, New Zealand and Singapore government programs.

Significant items tax benefit

Significant items tax benefit of $7.8 million (1H 2020: $133.7 million) represents tax at the Australian
corporate tax rate of 30% on significant items before tax.

5. Inventory gain There was an inventory gain of $139.2 million after tax ($198.9 million before tax) in the first half of
after tax 2021. Ampol holds crude and product inventory, the price of which varies due to fluctuations in the
$139.2 million product price and foreign exchange movements. The price at which inventory was purchased often
varies from the current market prices at the time of sale. This creates an inventory gain or loss at
the time of sale.
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Directors’ Report continued

Operating and financial review continued

Income statement continued

Discussion and analysis – Income statement RCOP EBIT breakdown(i)

Fuels and Infrastructure EBIT $208.2m

Fuels and Infrastructure EBIT consists of the segment’s earnings from trading, shipping, refining and
distribution of bulk fuels across international markets, including Gull, and internal sales to
Convenience Retail.
Total Australian fuel sales volumes were 6.5BL in 1H 2021, 6% lower than the 7.0BL in 1H 2020, as
net wholesale supply sales in Brisbane declined due to competitor supply chain decisions and jet fuel
sales declined due to the full half impact of COVID-19 border restrictions. International sales volumes
increased by more than 50% versus the prior comparable period due to Gull and Seaoil expanding
their retail networks, expansion to new customers in the Pacific region and the benefit of the Houston
Trading and Shipping office operations.
Fuels and Infrastructure delivered an EBIT result of $208.2 million, an increase of $95.9 million or
85% compared to 1H 2020 $112.3 million. The improvement in performance was largely a result of
the resumption of production at the Lytton refinery and the benefit of the Temporary Refining
Production Payment (TRPP) government assistance of $40.0 million.
Fuels and Infrastructure EBIT (excluding Lytton refinery) was $158.9 million, which is a decrease of
$10.8 million compared to 1H 2020. The result declined as the elevated imported volumes during the
extended Lytton Turnaround & Inspection (T&I) in 2020 were replaced by the Lytton refinery
production the profit from which is excluded from these earnings. Successful execution of the
International growth strategy saw Fuels and Infrastructure International RCOP EBIT grow to $59.6
million, up 15% compared to 1H 2020. The 1H 2020 result also includes $24.6 million of foreign
exchange gains compared with $29.0 million from the prior comparable period.
Lytton refinery delivered a RCOP EBIT result of $49.3 million, including the benefit of $40.0 million
from the Federal Government’s once-off TRPP. 1H 2021 Lytton RCOP EBIT was up $107.9 million
compared to 1H 2020 RCOP EBIT loss of $58.6 million.

Convenience Retail EBIT $149.4m

Convenience Retail RCOP EBIT consists of earnings from fuel and shop products at Ampol
convenience stores.
Convenience Retail delivered an RCOP EBIT result of $149.4 million, which is up 20% compared to
1H 2020. Retail fuel earnings were supported by improved petrol and diesel volumes in April and
May as lockdown restrictions lifted. Shop performance improved from the prior comparable period
due to increased consumer mobility and execution of site improvement plans. These combined
improvements helped to counter reduced diesel margins compared to 1H 2020, which resulted from
lags in diesel price adjustments in response to volatility in crude input costs in both periods. This
benefited 1H 2020 and adversely impacted 1H 2021.
Shop performed strongly during the period, with a 6.3% increase in like-for-like shop sales and a
clear focus on cost management.

Corporate EBIT ($17.8m)

Corporate operating expenses increased by $1.9 million compared to 1H 2020, largely due to the
reinstatement of employee incentives as earnings have improved.

RCOP EBIT excluding significant items $339.8m

(i) The breakdown of RCOP shown here represents a management reporting view of the breakdown and, therefore, individual components may not reconcile
to statutory accounts.
12 AMPOL LIMITED 2021 Half Year Report

Directors’ Report continued

Operating and financial review continued

Balance sheet

June 2021 Dec 2020 Change

$m $m %

1. Working capital 804.5 386.9 >100%

2. Property, plant and equipment 3,474.1 3,467.7 ▲0%

3. Intangibles 557.6 558.4 ▼0%

4. Interest-bearing liabilities net of cash (1,716.6) (1,348.1) ▲27%

5. Other non-current assets and liabilities 92.2 159.8 ▼42%

Total equity 3,211.8 3,224.7 ▼0%

Discussion and analysis – Balance sheet

1. Working capital The increase in working capital was primarily driven by higher product and crude price impacting
▲ $417.6m receivables, inventory and payables.

2. Property, plant The increase in property, plant and equipment is driven by additions of $206.4 million which includes
and equipment right of use assets ($129.7 million) partially offset by depreciation ($181.7 million).
▲ $6.4m
3. Intangibles Intangibles remained consistent with 1H 2020.
▼$0.8m
4. Interest-bearing Interest-bearing liabilities relates to net borrowings ($734.8 million) and lease liabilities ($981.8
liabilities million). The $368.5 million increase in interest-bearing liabilities was primarily due to the $300.4
million off-market buy-back in February 2021.
▲$368.5m
Ampol’s gearing was 18.6%, an increase from 11.9% as at 31 December 2020.
On a lease-adjusted basis, gearing was 34.8%, an increase from 29.5% as at 31 December 2020.

5. Other non-current Other non-current assets and liabilities decreased primarily due to the decrease in deferred tax
assets and liabilities assets which primarily relates to the reduction in deferred tax assets ($68.5 million) recognised in the
▼$67.6m 2020 financial period tax loss. This has been fully utilised in the first of 2021.

Cash flows
2021 2020 Change
For the half year ended 30 June $m $m %

1. Net operating cash inflow/(outflow) 208.2 (65.9) >100%

2. Net investing cash outflows (84.7) (87.2) ▼3%

3. Net financing cash (outflows)/inflows (428.1) 143.4 <100%

Net decrease in cash held(i) (303.2) (16.9) <100%

(i) Including effect of foreign exchange rates on cash and cash equivalents.
 13

Directors’ Report continued

Operating and financial review continued

Cash flows continued

Discussion and analysis – Cash flows

1. Net operating Net operating cash inflows were higher and primarily driven by improved earnings arising from the
cash inflows increase in sales prices and volumes in 1H 2021 compared to 1H 2020. This resulted in an increase
in receipts from customers ($700.5 million), offset partially by an increase in payments to suppliers
▲$274.1m ($427.0 million).  

2. Net investing Investing cash flows represent capital expenditure for property, plant and equipment, Lytton T&I, and
cash outflows purchase of intangibles. The decrease is primarily due to the reduction in major cyclical maintenance
▼ $2.5m at the Lytton refinery ($24.2 million) offset partially by an increase in capital expenditure on property,
plant and equipment ($15.5 million) and intangible assets ($6.1 million).

3. Net financing Financing cashflows primarily include an equal and offsetting repayment and drawdown of
cash outflows borrowings ($3,198 million), dividend payment ($54.8 million), repayment of lease principal ($51.2
▼ $571.5m million) and a $300.4 million off-market buy-back purchase which was completed in February 2021.

Capital expenditure
Capital expenditure totalled $84.9 million, including T&I spend at the Lytton refinery of $5.7 million and $9.8 million in intangible
software.
Market conditions and outlook(i)
Since the end of the first half, COVID-19 lockdowns, including the ongoing prolonged lockdown of Greater Sydney, have impacted
fuel demand and shop performance. Convenience Retail fuel volumes were down 15% in July 2021 and down 18% in August to 15
August 2021 versus the prior corresponding period. Gasoline demand has been most impacted, with diesel remaining more
resilient. Australian wholesale volumes have performed well, up 2% in July 2021 compared to the same time last year. Uncertainty
on the timing of when restrictions will ease is making forecasting full year Australian volumes difficult. Current run rate suggests
Australian volumes will be below the previous guidance range of 13.5 to 14.0 billion litres.
Changes in consumer behaviour are reversing the good momentum from the first half with shop sales down 16% in July 2021 and
17% in August to 15 August 2021, versus the same time last year.
Looking beyond current lockdowns, the market has shown that demand and sales recover quickly when restrictions ease and there
are signs that retail margins are providing a partial offset to the volume weakness.
Vaccination rates and the resultant easing of COVID-19 restrictions and continued execution of our strategies should provide
positive earnings momentum. Combined with Ampol’s significant operating leverage, this means we are well placed to benefit from
the recovery when it occurs, supporting a positive medium-term outlook.
Ampol remains on track to deliver $195(ii) million EBIT uplift by 2024, from our Convenience Retail and Fuels and Infrastructure
International EBIT growth strategies.
We will also continue to build foundations for the orderly energy transition by working with our customers, focusing on a targeted set
of energy and decarbonisation themes. This includes our plan to roll out fast charging bays to ~100 sites across our national retail
network by September 2023, with the support of an ARENA Future Fuels Fund grant.

(i) Current market conditions remain challenging with ongoing lockdowns and community transmission of COVID-19. All forward looking statements are
provided on the basis that the vaccination roll out continues and COVID-19 restrictions ease towards the end of 2021.
(ii) EBIT uplift on a base of 2019, from Convenience Retail shop contribution, Fuels and Infrastructure and $40.0 million cost-out delivered in 2020.
14 AMPOL LIMITED 2021 Half Year Report

Directors’ Report continued

Risk management
There have been no material changes to the descriptions of The Directors’ Report is made in accordance with a
Ampol’s risk management framework as outlined in the resolution of the Directors of Ampol.
Operating and Financial Review included in the Annual
Report as at 31 December 2020.

Events subsequent to the end of the year

Dividend
On 23 August 2021, the directors declared a fully franked
final dividend of 52 cents per share. Steven Gregg
Coronavirus pandemic (COVID-19) Chairman

Since July 2021, Australian state governments have

announced a number of new restrictions in response to
COVID-19 and the situation continues to evolve. These
restrictions affect fuel demand and shop performance and
the duration and impact of these restrictions on the business
remains uncertain. Ampol continues to monitor and review Matthew Halliday
the safeguarding and health of its people and customers, Managing Director & Chief Executive Officer
business continuity and cashflow. Sydney, 23 August 2021
Z Energy Limited
On 23 August 2021 the Group announced that it had made a
non-binding indicative offer to acquire Z Energy Limited (“Z”),
a fuel distribution and retailing company which is listed on
the New Zealand Stock Exchange. The Group made a cash
offer of NZ$3.78 per share with an estimated transaction
(equity) value of approximately NZ$2.0bn, which equates to
an Enterprise Value of NZ$2.8bn (inclusive of net debt). The
Group will commence a four week period of exclusivity
during which it will conduct confirmatory due diligence and
further develop its proposal. The proposal is subject to a
unanimous Board recommendation, agreement of binding
transaction documents, as well as the approval of Z
shareholders, NZ High Court and relevant regulatory
authorities. The Group expects the acquisition to be funded
through a mix of debt, proceeds from divestments and
approximately $600m in equity. It is anticipated that any
transaction would complete in the first half of 2022.
Other
There were no other items, transactions or events of a
material or unusual nature that, in the opinion of the Board,
are likely to significantly affect the operations of the Group,
the results of those operations or the state of affairs of the
Group that have arisen in the period from 30 June 2021 to
the date of this report.
Rounding of amounts
Amounts in the half year 2021 Directors’ Report and half
year 2021 Financial Report have been rounded off to the
nearest hundred thousand dollars, unless otherwise stated,
in accordance with ASIC Corporations Instrument (Rounding
in Financial/Directors’ Report) 2016/191. Ampol is an entity
to which the instrument applies.
 15

Lead Auditor’s Independence Declaration under

Section 307C of the Corporations Act 2001
To the Directors of Ampol Limited

I declare that, to the best of my knowledge and belief, in relation to the review of Ampol Limited for the
half-year ended 30 June 2021 there have been:

i. no contraventions of the auditor independence requirements as set out in the

Corporations Act 2001 in relation to the review; and
ii. no contraventions of any applicable code of professional conduct in relation to the review.

KPM_INI_01

KPMG Julian McPherson

Partner
Sydney
23 August 2021

PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01

KPMG, an Australian partnership and a member firm of the Liability limited by a scheme approved under
KPMG global organisation of independent member firms Professional Standards Legislation.
affiliated with KPMG International Limited, a private English
company limited by guarantee. All rights reserved. The KPMG
name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation.
16 AMPOL LIMITED 2021 Half Year Report

Directors’ Declaration

The Directors of Ampol Limited (Ampol) declared that:

a) in the Directors’ opinion, there are reasonable grounds to believe that Ampol will be able to pay its debts as and when they
become due and payable; and
b) in the Directors’ opinion, the consolidated financial statements for the Group for the half year ended 30 June 2021, and the
notes to the financial statements, are in accordance with the Corporations Act 2001 (Cth), including:
(i) section 304 (compliance with Accounting Standards); and
(ii) section 305 (true and fair view).
This declaration is made in accordance with a resolution of the Directors of Ampol.

Steven Gregg
Chairman

Matthew Halliday
Managing Director & Chief Executive Officer
Sydney, 23 August 2021
 17

Independent Auditor’s Review Report

To the shareholders of Ampol Limited

Report on the Half-year Financial Report

Conclusion

We have reviewed the accompanying Half- The Half-year Financial Report comprises:
year Financial Report of Ampol Limited.
• Consolidated balance sheet as at 30 June 2021
Based on our review, which is not an audit,
we have not become aware of any matter • Consolidated income statement, Consolidated
statement of comprehensive income,
that makes us believe that the Half-year
Consolidated statement of changes in equity and
Financial Report of Ampol Limited does not
Consolidated cash flow statement for the Half-
comply with the Corporations Act 2001,
year ended on that date
including:

• giving a true and fair view of the Group’s • Notes comprising a summary of significant
accounting policies and other explanatory
financial position as at 30 June 2021 and
information
of its performance for the Half-year ended
on that date; and • The Directors’ Declaration.
• complying with Australian Accounting The Group comprises Ampol Limited (the Company)
Standard AASB 134 Interim Financial and the entities it controlled at the Half year’s end or
Reporting and the Corporations from time to time during the Half-year.
Regulations 2001.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by
the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s
Responsibilities for the Review of the Financial Report section of our report.
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.

KPMG, an Australian partnership and a member firm of Liability limited by a scheme approved under
the KPMG global organisation of independent Professional Standards Legislation.
member firms affiliated with KPMG International Limited, a
private English company limited by guarantee. All rights
reserved. The KPMG name and logo are trademarks used
under license by the independent member firms of the
KPMG global organisation.
18 AMPOL LIMITED 2021 Half Year Report

Responsibilities of the Directors for the Half-year Financial Report

The Directors of the Company are responsible for:

• the preparation of the Half-year Financial Report that gives a true and fair view in accordance with
Australian Accounting Standards and the Corporations Act 2001
• such internal control as the Directors determine is necessary to enable the preparation of the
Half-year Financial Report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Half-year Financial Report

Our responsibility is to express a conclusion on the Half-year Financial Report based on our review.
ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us
believe that the Half-year Financial Report does not comply with the Corporations Act 2001 including
giving a true and fair view of the Group’s financial position as at 30 June 2021 and its performance for
the Half-Year ended on that date, and complying with Australian Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001.
A review of a Half-year Financial Report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.

KPMG Julian McPherson

Partner
Sydney
23 August 2021

KPM_INI_01
 19

Financial Statements

Contents
Primary statements
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement

Notes to the Financial Statements

A Overview
A1 Reporting entity
A2 Basis of preparation
A3 Use of judgement and estimates
A4 Significant accounting policies

B Results for the half year

B1 Revenue and other income
B2 Costs and expenses
B3 Segment reporting
B4 Earnings per share
B5 Dividends

C Capital, funding and risk management

C1 Going concern, liquidity and capital management
C2 Fair value of financial assets and liabilities
C3 Issued capital

D Group structure

D1 Business combinations
D2 Controlled entities
D3 Equity-accounted investees

E Other information
E1 Commitments and contingent liabilities
E2 Related party disclosures
E3 Net tangible assets per share
E4 Taxation
E5 Impairment of non-current assets
E6 Events subsequent to the reporting date
20 AMPOL Limited 2021 Half Year Report

Consolidated Income Statement

FOR THE HALF YEAR ENDED 30 JUNE 2021

30 June 30 June
Millions of dollars Note 2021 2020

Revenue B1 9,817.2 8,052.9

Cost of goods sold – historical cost (8,679.5) (7,819.1)
Gross profit 1,137.7 233.8
Other income B1 40.8 2.1
Other expense B2 - (364.8)
Net foreign exchange gain 4.4 32.7
Selling and distribution expenses (557.8) (571.5)
General and administration expenses (118.9) (181.1)
Profit/(loss) from operating activities 506.2 (848.8)
Finance costs (49.0) (54.1)
Finance income 0.1 0.7
Net finance costs B2 (48.9) (53.4)
Share of net profit of entities accounted for using the equity method 6.5 4.0
Profit/(loss) before income tax expense B3.3 463.8 (898.2)
Income tax (expense)/benefit (119.4) 272.3
Net profit/(loss) 344.4 (625.9)
Profit/(loss) attributable to:
Equity holders of the parent entity 325.5 (626.2)
Non-controlling interest 18.9 0.3
Net profit/(loss) 344.4 (625.9)
Basic and diluted earnings/(loss) per share
Historical cost – cents per share - basic B4 135.7 (247.5)
Historical cost – cents per share - diluted B4 135.4 (247.5)

The Consolidated Income Statement is to be read in conjunction with the notes to the Financial Statements.
 21

Consolidated Statement of Comprehensive Income

FOR THE HALF YEAR ENDED 30 JUNE 2021

30 June 30 June
Millions of dollars Note 2021 2020

Profit/(loss) for the period 344.4 (625.9)

Other comprehensive income

Items that will not be reclassified to income statement:

Actuarial gain/(loss) on defined benefit plans 2.5 (2.8)

Tax on items that will not be reclassified to income statement (0.8) 0.8

Total items that will not be reclassified to income statement 1.7 (2.0)

Items that may be reclassified subsequently to income statement:

Foreign operations – foreign currency translation differences 12.6 25.9

Net change in fair value of net investment hedges - 3.7

Effective portion of changes in fair value of cash flow hedges 24.4 72.6

Net change in fair value of cash flow hedges reclassified to income statement (16.8) (74.2)

Tax on items that may be reclassified subsequently to income statement (2.4) (0.6)

Total items that may be reclassified subsequently to income statement 17.8 27.4

Other comprehensive income for the period, net of income tax 19.5 25.4

Total comprehensive income/(loss) for the period 363.9 (600.5)

Attributable to:

Equity holders of the parent entity 345.0 (600.8)

Non-controlling interest 18.9 0.3

Total comprehensive income/(loss) for the period 363.9 (600.5)

The Consolidated Statement of Comprehensive Income is to be read in conjunction with the notes to the Financial Statements.
22 AMPOL Limited 2021 Half Year Report

Consolidated Balance Sheet

AS AT HALF YEAR ENDED 30 JUNE 2021

Millions of dollars Note 30 June 31 December

2021 2020(i)
Current assets
Cash and cash equivalents 64.4 367.6
Receivables 1,534.3 882.8
Government grant receivable 40.0 -
Inventories 1,662.2 1,354.3
Other 36.5 53.3
Total current assets 3,337.4 2,658.0
Non-current assets
Receivables 6.8 2.5
Investments accounted for using the equity method 181.9 173.0
Intangibles 557.6 558.4
Property, plant and equipment 3,474.1 3,467.7
Deferred tax assets 358.5 453.8
Employee benefits 4.7 2.9
Other 43.3 47.7
Total non-current assets 4,626.9 4,706.0
Total assets 7,964.3 7,364.0
Current liabilities
Payables 2,099.9 1,535.2
Interest-bearing liabilities C1.1 158.2 160.2
Current tax liabilities 90.9 90.7
Employee benefits 105.2 98.9
Provisions 172.5 178.7
Total current liabilities 2,626.7 2,063.7
Non-current liabilities
Payables 14.4 16.0
Interest-bearing liabilities C1.1 1,622.8 1,555.5
Deferred tax liabilities 10.8 9.7
Employee benefits 6.7 6.1
Provisions 471.1 488.3
Total non-current liabilities 2,125.8 2,075.6
Total liabilities 4,752.5 4,139.3
Net assets 3,211.8 3,224.7
Equity
Issued capital C3 479.7 502.6
Treasury stock (1.8) (1.6)
Reserves 23.7 5.6
Retained earnings 2,439.4 2,444.5
Total parent entity interest 2,941.0 2,951.1
Non-controlling interest 270.8 273.6
Total equity 3,211.8 3,224.7

(i) Prior period has been restated to reflect changes made in the current period to current and non-current classifications. Refer to note A4 for further
information on the reclassification of Long Service Leave Liabilities.

The Consolidated Balance Sheet is to be read in conjunction with the notes to the Financial Statements.
 23

Consolidated Statement of Changes in Equity

FOR THE HALF YEAR ENDED 30 JUNE 2021

Foreign Equity
currency compen- Non-
Issued Treasury translation Hedging sation Retained controlling Total
Millions of dollars capital stock reserve reserve reserve earnings Total interest equity
Balance at
1 January 2020 502.6 (2.0) 42.9 (5.0) (18.5) 2,737.0 3,257.0 13.5 3,270.5
Total comprehensive
income for the half
year
(Loss)/profit for the year – – – – – (626.2) (626.2) 0.3 (625.9)
Total other
comprehensive
(loss)/income – – 28.5 (1.1) – (2.0) 25.4 – 25.4
Total comprehensive
(loss)/income for the
half year – – 28.5 (1.1) – (628.2) (600.8) 0.3 (600.5)
Own shares
acquired net of tax – (0.4) – – 0.1 – (0.3) – (0.3)
Shares vested to
employees – 1.0 – – (1.0) – – – –
Expense on equity
settled transactions – – – – 0.9 – 0.9 – 0.9
Dividends to
shareholders – – – – – (127.4) (127.4) - (127.4)
Balance at
30 June 2020 502.6 (1.4) 71.4 (6.1) (18.5) 1,981.4 2,529.4 13.8 2,543.2
Balance at
1 January 2021 502.6 (1.6) 30.8 (5.1) (20.1) 2,444.5 2,951.1 273.6 3,224.7
Total comprehensive
income for the half
year
Profit/(loss) for the year – – – – – 325.5 325.5 18.9 344.4
Total other
comprehensive
income/(loss) – – 12.6 5.2 – 1.7 19.5 – 19.5
Total comprehensive
income/(loss) for the
half year – – 12.6 5.2 – 327.2 345.0 18.9 363.9
Ampol Property Trust –
distribution – – – – – – – (20.9) (20.9)
Own shares
acquired net of tax – (1.9) – – 0.5 – (1.4) – (1.4)
Shares vested to
employees – 1.7 – – (1.7) – – – –
Expense on equity
settled transactions – – – – 1.5 – 1.5 – 1.5
(i)
Shares bought back (22.9) – – – – (277.5) (300.4) – (300.4)
Dividends to
shareholders – – – – – (54.8) (54.8) (0.8) (55.6)
Balance at
30 June 2021 479.7 (1.8) 43.4 0.1 (19.8) 2,439.4 2,941.0 270.8 3,211.8

(i) 11,404,848 shares were bought back during the half year ended 30 June 2021. 

The Consolidated Statement of Changes in Equity is to be read in conjunction with the notes to the Financial Statements.
24 AMPOL Limited 2021 Half Year Report

Consolidated Cash Flow Statement

FOR THE HALF YEAR ENDED 30 JUNE 2021

30 June 30 June
Millions of dollars Note 2021 2020

Cash flows from operating activities

Receipts from customers 12,816.1 12,115.6
Payments to suppliers, employees and governments (12,531.2) (12,104.2)
Shares acquired for vesting employee benefits (1.9) (0.4)
Dividends and distributions received 1.6 (0.1)
Interest received 0.1 0.6
Interest and other finance costs paid (51.3) (47.6)
Income taxes paid (25.2) (29.8)
Net operating cash inflows/(outflows) 208.2 (65.9)
Cash flows from investing activities
Purchase of investment in associate D3 (1.5) -
Purchases of property, plant and equipment (69.4) (53.9)
Major cyclical maintenance (5.7) (29.9)
Purchases of intangibles (9.8) (3.7)
Proceeds from sale of property, plant and equipment, net of selling costs 1.7 0.3
Net investing cash outflows (84.7) (87.2)
Cash flows from financing activities
Proceeds from borrowings 3,198.0 5,215.6
Repayments of borrowings (3,198.0) (4,866.1)
Repayment of lease principal (51.2) (78.7)
Payments for shares bought back (300.4) -
Distributions/dividends paid to non-controlling interest (21.7) -
Dividends paid B5 (54.8) (127.4)
Net financing cash (outflows)/inflows (428.1) 143.4
Net decrease in cash and cash equivalents (304.6) (9.7)
Effect of exchange rate changes on cash and cash equivalents 1.4 (7.2)
Increase in cash and cash equivalents (303.2) (16.9)
Cash and cash equivalents at the beginning of the period 367.6 35.0
Cash and cash equivalents at the end of the period 64.4 18.1

The Consolidated Cash Flow Statement is to be read in conjunction with the notes to the Financial Statements.
 25

Notes to the Financial Statements

A Overview
FOR THE HALF YEAR ENDED 30 JUNE 2021

A1 Reporting entity
Ampol Limited (“Ampol” or the “Company”) is a for-profit company, incorporated and domiciled in Australia. The Consolidated
Interim Financial Report for the six months ended 30 June 2021 comprises the Company and its controlled entities (together
referred to as the “Group”) and the Group’s interest in associates and jointly controlled entities. The Group is primarily involved in
the purchase, refining, distribution and marketing of petroleum products and the operation of convenience stores as described in
note B3.1.
A2 Basis of preparation
The Interim Financial Report was approved and authorised for issue by the Board of Directors on 23 August 2021. It does not
contain all the information that is included in the full annual financial report and should be read in conjunction with the financial
statements for the year ended 31 December 2020. These can be obtained by visiting https://www.ampol.com.au/about-
ampol/investor-centre/annual-reports.
The Interim Financial Report is a general-purpose financial report which has been prepared;
 in accordance with AASB 134 “Interim Financial Reporting” and the Corporations Act 2001 (Cth);
 on a historical cost basis, except for derivative financial instruments and other financial assets and liabilities that are measured
at fair value; and
 on a going concern basis (detailed information relating to the assessment of going concern can be found in Note C1); and
 in Australian dollars together with the Directors’ Report and is rounded to the nearest hundred thousand dollars in accordance
with ASIC’s Instrument 2016/191, unless stated otherwise.
A3 Use of judgement and estimates
Except as described below in note A4, the accounting judgements and estimates applied by the Group in these interim financial
statements are the same as those applied in its financial statements for the full year ended 31 December 2020. Specific
judgements, estimates and assumptions made in relation to the COVID-19 pandemic are disclosed in notes B3.3, C1 and E5 to the
interim financial statements.
A4 Significant accounting policies
The interim Financial Report does not early adopt any Accounting Standards and Interpretations that have been issued or amended
but are not yet effective. Except as described in this note, the accounting policies applied in these interim financial statements are
consistent with those applied as at 31 December 2020 and have been consistently applied by each entity in the Group.
Government grants
The introduction of the Temporary Refinery Production Package in 2021 has led to a government grant entitlement. Consequently,
the accounting treatment applied to government grants, AASB 120 Accounting for Government Grants and Disclosure of
Government Assistance, is now considered a significant accounting policy of the Group.
The Group recognises grants only when there is reasonable assurance that the Group will comply with any conditions attached to
the grant and that the grant will be received. The grant is recognised as income, on a systemic basis, over the period in which the
related costs or revenue shortfall, for which they are intended to compensate, are recognised. The Group presents government
grants separately in ‘other income’.
Cloud computing arrangements
In April 2021, the International Financial Reporting Standards Interpretations Committee (IFRIC) issued a final agenda decision,
“Configuration or Customisation Costs in a Cloud Computing Arrangement”. The decision clarifies whether configuration or
customisation expenditure relating to cloud computing arrangements can be recognised as an intangible asset, and if not, over what
time period the expenditure should be expensed.
The adoption of this IFRIC agenda decision is a change in accounting policy. This may result in the restatement of, and an
adjustment to, the opening retained earnings of the comparative reporting period.
Historically, the Group’s accounting policy has been to capitalise costs related to cloud computing configuration and customisation
as software intangible assets in the Balance Sheet ($101.6 million). Consequently, the Group has not yet adopted this IFRIC
agenda decision. Management has commenced a detailed review of capitalised software costs. However, for the six months ended
30 June 2021, the impact of the change is not expected to be reasonably estimable before the signing of the Interim Financial
Report.
Comparatives
Where applicable, various comparative balances have been reclassified to align with current period presentation.
Employee benefits
Historically, the Group has classified long service leave as either current or non-current based on the amounts which are expected
to be settled within 12 months and those expected to be settled beyond the next 12 months. In the current period the Group has
presented the current and non-current portions based on the legal obligation that the Group has for services performed up to the
balance date. The non-current portion has been measured as the present value of expected future payments to be made in respect
of services provided by employees up to period end in accordance with AASB 119 Employee Benefits. Accordingly, the comparative
information presented for 31 December 2020 has been reclassified to align with current period presentation resulting in an increase
in current provisions and a corresponding decrease in non-current provisions of $33.8 million.
26 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

B Results for the year
FOR THE HALF YEAR ENDED 30 JUNE 2021

This section highlights the performance of the Group for the half year, including revenue and other income, costs and expenses,
results by operating segment, earnings per share and dividends.

B1 Revenue and other income

Millions of dollars Note 30 June 30 June
2021 2020

Revenue
Sale of goods 9,738.8 7,953.2
Other revenue
Rental income 9.7 10.5
Transaction and merchant fees 50.0 66.7
Other 18.7 22.5
Total other revenue 78.4 99.7
Total revenue 9,817.2 8,052.9
Other income
Government assistance – wage support(i) 0.6 2.1
(ii)
Government assistance - refinery 40.0 -
Net gain on sale of property, plant and equipment 0.2 -
Total other income B3.2 40.8 2.1

(i) Relates to COVID-19 government wage support of $0.6 million (1H 2020: $2.1 million) received from Australia, New Zealand and Singapore
government programs.
(ii) A total of $40.0 million was recognised under the Temporary Refinery Production Program during the first half of 2021. Refer to note A4 for
further information.

B1.1 Revenue from products and services

Millions of dollars 30 June 30 June

2021 2020

Petrol 2,936.6 2,350.1

Diesel 4,826.7 3,912.5

Jet 412.4 540.0

Lubricants 101.2 103.9

Specialty and other products 149.5 62.4

Crude 708.2 471.3

Non-fuel income 604.2 513.0

Other revenue 78.4 99.7

Total product and service revenue 9,817.2 8,052.9

 27

Notes to the Financial Statements

B Results for the year continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

B2 Costs and expenses

Millions of dollars Note 30 June 30 June
2021 2020

Finance costs
Interest expense 24.2 20.7
Finance charges on leases 28.7 28.2
Unwinding of discount on provisions (3.6) 5.3
Less: capitalised finance costs (0.3) (0.1)
Finance costs 49.0 54.1
Finance income (0.1) (0.7)
Net finance costs 48.9 53.4
Depreciation and amortisation
Depreciation of:
Buildings 7.0 7.9
Leasehold property 75.1 70.8
Plant and equipment 99.6 113.9
181.7 192.6
Amortisation of:
Intangibles 10.2 15.3
Total depreciation and amortisation 191.9 207.9
Other expenses
Net loss on disposal of property, plant and equipment B3.2 - 10.0
Impairment of non-current assets E5 - 354.8
Total other expenses - 364.8

B3 Segment reporting
B3.1 Segment disclosures
The accounting policies used by the Group in reporting segments are consistent with those applied as part of the 31 December
2020 Financial Report.

Types of products and services

The following summary describes the operations in each of the Group's reportable segments:
Convenience Retail
The Convenience Retail segment includes revenues and costs associated with fuel and shop offerings at Ampol’s network of stores,
including royalties and franchise fees on remaining franchise stores.

Fuels and Infrastructure

The Fuels and Infrastructure segment includes revenues and costs associated with the integrated wholesale fuels and lubricants
supply for the Group, including the Company’s international businesses. This includes Lytton refining, Bulk Fuels sales, Trading
and Shipping, Infrastructure, and the Gull and Seaoil businesses.

Transfer price between segments

The Group operates as a vertically integrated supply chain including trading and shipping, infrastructure, refining and marketing
of fuel products in Australia and internationally to customers, including retail service stations. Segment results are based on
commercial pricing between segments, most notably Fuels and Infrastructure and Convenience Retail, that is determined by a
reference to relevant import parity prices for refining output and other commercial arrangements between the business segments.
28 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

B Results for the year continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

B3 Segment reporting continued

B3.2 Information about reportable segments

Convenience Retail Fuels and Infrastructure Total operating segments

Millions of dollars 30 June 30 June 30 June 30 June 30 June 30 June
2021 2020 2021 2020 2021 2020
External segment revenue 2,252.3 2,025.2 7,564.9 6,027.7 9,817.2 8,052.9
Inter-segment revenue - - 1,314.1 1,136.6 1,314.1 1,136.6
Total segment revenue 2,252.3 2,025.2 8,879.0 7,164.3 11,131.3 9,189.5
Government assistance – wage support - - 0.6 2.1 0.6 2.1
Government assistance - refinery - - 40.0 - 40.0 -
Net gain/(loss) on sale of property, 0.3 8.7 (0.1) 1.3 0.2 10.0
plant and equipment
Total other income 0.3 8.7 40.5 3.4 40.8 12.1
Replacement Cost of Sales Operating 149.4 125.0 183.6 83.3 333.0 208.3
Profit (RCOP) before interest and
income tax excluding foreign exchange
and significant items(i)
RCOP foreign exchange gain - - 24.6 29.0 24.6 29.0
RCOP before interest and 149.4 125.0 208.2 112.3 357.6 237.3
income tax excluding significant
items(i)

B3.3 Reconciliation of reportable segment revenues, profit or loss and other material items

30 June 30 June
Millions of dollars 2021 2020

Profit or loss
Segment RCOP(i) before interest and income tax, excluding significant items 357.6 237.3
Other expenses including corporate expenditure (17.8) (15.9)
RCOP before interest and income tax, excluding significant items 339.8 221.4
Significant items loss excluded from profit or loss (before tax) (26.0) (445.6)
RCOP before interest and income tax 313.8 (224.2)
Inventory gain/(loss) before tax 198.9 (620.6)
Consolidated historical cost profit/(loss) before interest and income tax 512.7 (844.8)
Net financing costs (48.9) (53.4)
Consolidated profit/(loss) before income tax 463.8 (898.2)
RCOP income tax expense (67.5) (47.6)
Significant items tax benefit 7.8 133.7
Inventory tax (expense)/benefit (59.7) 186.2
Consolidated historical cost income tax (expense)/benefit (119.4) 272.3
Net profit/(loss) 344.4 (625.9)
Profit/(loss) attributable to:
Non-controlling interest 18.9 0.3
Equity holders of the parent entity 325.5 (626.2)
Net profit/(loss) 344.4 (625.9)

(i) Replacement Cost of sales Operating Profit (RCOP) (on a pre- and post-tax basis) is a non-International Financial Reporting Standards (IFRS) measure
and is unaudited. It is derived from the statutory profit adjusted for inventory (losses)/gains as management believes this presents a clearer picture of the
Group’s underlying business performance as it is consistent with the basis of reporting commonly used within the global downstream oil industry. RCOP
excludes the unintended impact of the fall or rise in oil and product prices (key external factors). It is calculated by restating the cost of sales using the
replacement cost of goods sold rather than the historical cost, including the effect of contract-based revenue lags.
 29

Notes to the Financial Statements

B Results for the year continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

B3.3 Reconciliation of reportable segment revenues, profit or loss and other material items continued
Significant items excluded from profit or loss reported to the chief operating decision maker:
30 June 30 June
Millions of dollars 2021 2020

Ampol rebranding expense (26.6) (56.9)

Other income 0.6 2.1
Impairment of non-current assets - (354.8)
Other expenses - (36.0)
Significant items loss excluded from profit or loss (before tax) (26.0) (445.6)

Ampol rebranding expense

The Group has recognised an expense of $26.6 million (1H 2020: $56.9 million) relating to the rebranding program currently being
undertaken to remove Caltex signage and install Ampol branding at the Group’s sites. Current period costs include accelerated
depreciation $5.8 million (1H 2020: $6.6 million) and other operating expenses $20.8 million (1H 2020: $4.3 million). This expense
is included within general and administration expenses $20.8 million (1H 2020: $50.3 million) and selling and distribution for $5.8
million (1H 2020: $6.6 million) in the Consolidated Income Statement. In the period ended 30 June 2020, a provision of $46.0 million
was also recognised in relation to the contractual obligation to undertake rebranding work at sites owned by a third party, to be
completed before 31 December 2022.

Other Income
Assistance from government
Other income includes COVID-19 government wage support of $0.6m (1H 2020: $2.1 million). These amounts were received from
Australian, New Zealand and Singapore government programs.

Impairment of non-current assets

In the period ended 30 June 2020 the Group recognised an impairment loss of $354.8 million. These impairments related to the
Lytton refinery ($80.0 million), a number of Convenience Retail sites ($233.0 million) and other specific assets ($41.8 million). This
impairment loss was disclosed in other expenses in the Consolidated Income Statement.

Other expenses
Site remediation provision
An environmental remediation provision of $32.3 million was recognised in the period ended 30 June 2020 in respect of the cost of
remediating convenience retail and depot sites for alternative use. This expense was included within general and administration
expenses in the Consolidated Income Statement.
Provision for doubtful debts
In the period ended 30 June 2020 a provision for doubtful debts of $3.7 million was raised as a result of the expected impact on
Ampol customers from COVID-19. This expense was included within general and administration expenses in the Consolidated
Income Statement.

Significant items tax benefit

Significant items tax benefit of $7.8 million (1H 2020: $133.7 million) represents tax at the Australian corporate tax rate of 30% on
Significant items before tax.
30 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

B Results for the year continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

B4 Earnings per share

30 June 30 June
Cents per share 2021 2020

Historical cost net profit/(loss) attributable to ordinary shareholders – basic 135.7 (247.5)

Historical cost net profit/(loss) attributable to ordinary shareholders – diluted 135.4 (247.5)

RCOP after tax and excluding significant items – basic 85.2 47.5

RCOP after tax and excluding significant items – diluted 85.1 47.5

Calculation of earnings per share

Basic historical earnings per share is calculated as the net profit attributable to ordinary shareholders of the parent entity divided by
the weighted average number of ordinary shares outstanding during the half year ended 30 June 2021.
Diluted historical cost earnings per share is calculated as the profit attributable to ordinary shareholders of the parent entity divided
by the weighted average number of ordinary shares which has been adjusted to reflect the number of shares that would be issued if
all outstanding rights and restricted shares were exercised. When the Company has made a loss, basic and diluted earnings per
share are calculated using the same weighted average number of ordinary shares and excludes all outstanding rights and restricted
shares on issue as to include them in the calculation of diluted earnings per share would result in a lower loss per share.
Earnings per share has been disclosed for both the historical cost net profit as well as the RCOP segment method of reporting net
profit. The RCOP segment method adjusts statutory profit for significant items and inventory gains and losses. A reconciliation
between historical cost net profit attributable to ordinary shareholders of the parent entity and RCOP after tax and excluding
significant items is included below.

Millions of dollars 30 June 30 June

2021 2020

Net profit/(loss) after tax attributable to equity holders of the parent entity 325.5 (626.2)

Add/Less: Significant items loss/(gains) after tax 18.2 311.9

Add/Less: Inventory (gains)/losses after tax (139.2) 434.4

RCOP excluding significant items after tax 204.5 120.1

Weighted average number of shares (millions) 30 June 30 June

2021 2020

Issued shares as at 1 January 249.7 249.7

Shares bought back and cancelled(i) (11.4) -

Issued shares as at 30 June 238.3 249.7

Weighted average number of shares as at 30 June - basic 239.9 253.0

Weighted average number of shares as at 30 June - diluted 240.3 253.0

(i) Refer to Note C3.

 31

Notes to the Financial Statements

B Results for the year continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

B5 Dividends

B5.1 Dividends declared or paid

Dividends recognised in the current year by the Group are:

Date of Franked/ Cents Total

Millions of dollars payment unfranked per share amount

2021
Final 2020 1 April 2021 Franked 23 54.8
Total amount 23 54.8

2020
Interim 2020 2 October 2020 Franked 25 62.4
Final 2019 3 April 2020 Franked 51 127.4
Total amount 76 189.8

Subsequent events
Since 30 June 2021, the Directors declared the following dividend. The dividend has not been provided for and there are no income
tax consequences for the Group in relation to the interim financial statements.

Interim 2021 23 September 2021 Franked 52 123.9

32 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

C Capital, funding and risk management
FOR THE HALF YEAR ENDED 30 JUNE 2021

C1 Going concern, liquidity and capital management

C1.1 Interest-bearing liabilities

30 June 31 December
Millions of dollars 2021 2020

Current
Bank facilities - -
Lease liabilities 158.2 160.2
Total current interest-bearing liabilities 158.2 160.2
Non-current
Bank facilities(i) (4.6) (5.3)
(ii)
Capital market borrowings 309.7 313.5
(iii)
Subordinated notes 494.1 493.3
Lease liabilities 823.6 754.0
Total non-current interest-bearing liabilities 1,622.8 1,555.5
Total interest-bearing liabilities 1,781.0 1,715.7

(i) Bank facilities comprise of no drawn bank debt at 30 June 2021 (less borrowing costs of $4.6 million (2020: $5.3 million)).
(ii) Capital market borrowings of $309.7 million (2020: $313.5 million) includes a fair value adjustment of $10.9 million (2020: $14.8 million) relating
to the fair value hedge of the $300.0 million Australian Medium-Term Notes (less borrowing costs of $1.2 million (2020: $1.3 million)).
(iii) Subordinated notes were issued on 9 December 2020 and are unlisted. They are denominated in Australian dollars. The Notes have a maturity
date of 9 December 2080, with the first optional redemption date on 9 March 2026 totalling $500.0 million (less borrowing costs of $5.9 million
(2020: $6.7 million)).

C1.2 Capital management

The Group’s primary objective when managing capital is to safeguard the ability to continue as a going concern, while delivering on
strategic objectives.

The Group’s Financial Framework is designed to support the strategic objective of sustainably delivering value and growth for our
owners, people and customers. The framework’s key elements are to:

(i) maintain an optimal capital structure that delivers a competitive cost of capital by holding a level of net debt (including
lease liabilities) relative to EBITDA that is consistent with strong investment-grade credit rating;

(ii) deliver Return on Capital Employed (ROCE) that exceeds the weighted average cost of capital; and

(iii) make disciplined capital allocation decisions between investments, debt reduction and distribution of surplus capital to
shareholders.

The Group’s gearing ratio is calculated as net borrowings divided by total capital. Net borrowings is a non-statutory measure
calculated as total interest-bearing liabilities (excluding liabilities arising under AASB 16 Leases; refer to note C1.1) less cash and
cash equivalents. Total capital is calculated as equity as shown in the balance sheet plus net debt.
 33

Notes to the Financial Statements

C Capital, funding and risk management continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

C1 Going concern, liquidity and capital management continued

C1.2 Capital management continued
Millions of dollars 30 June 31 December
2021 2020

Interest-bearing liabilities(i) 799.2 801.5

Less: cash and cash equivalents (64.4) (367.6)
Net borrowings 734.8 433.9
Total equity 3,211.8 3,224.7
Total capital 3,946.6 3,658.6
Gearing ratio 18.6% 11.9%

(i) Interest-bearing liabilities excludes liabilities arising under AASB 16 Leases. Refer to note C1.1.

C1.3 Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Due to the dynamic nature of
the underlying business, the liquidity risk policy requires maintaining sufficient cash and an adequate amount of committed credit
facilities to be held above the forecast requirements of the business. The Group manages liquidity risk centrally by monitoring cash
flow forecasts and maintaining adequate cash reserves and debt facilities. The debt portfolio is periodically reviewed to ensure there
is funding flexibility across an appropriate maturity profile.
The debt facility maturity profile of the Group as at 30 June 2021 is as follows:

30 June 2021 2022 2023 2024 2025 2026 Funds Drawn Undrawn
Millions of dollars available

Bank facilities 419.2 325.0 461.6 557.1 235.0 1,997.9 - 1,997.9

Capital market borrowings - - - - 300.0 - 300.0 300.0 -
Drawn(i)
Subordinated notes(ii) - - - - 500.0 500.0 500.0 -
Total 419.2 325.0 461.6 857.1 735.0 2,797.9 800.0 1,997.9

(i) Capital market borrowings were drawn for the half year period 30 June 2021. Refer to note C1.1 annotation (ii) for the reconciliation back to
$309.7 million (2020: $313.5 million).
(ii) Subordinated notes were drawn for the half year period 30 June 2021. Refer to note C1.1 annotation (iii) for the reconciliation back to $494.1
million (2020: $493.3 million).

The Group maintains a strong balance sheet and liquidity position by accessing diversified funding sources made up of committed
bank debt facilities and bonds, with a weighted average debt maturity profile of 3.4 years.
The total available funds for the half year period 30 June 2021 was $2,797.9 million (2020: $2,940.5 million), with $1,997.9 million
(2020: $2,140.5 million) in undrawn committed bank debt facilities.

C2 Fair value of financial assets and liabilities

The Group’s accounting policies and disclosures may require the measurement of fair values for both financial and non-financial
assets and liabilities. The Group has an established framework for fair value measurement. When measuring the fair value of an
asset or a liability, the Group uses market observable data where available.
Fair values are categorised into different levels in a fair value hierarchy based on the following valuation techniques:
 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
 Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
 Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability are categorised in different levels of the fair value hierarchy, then
the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.
The fair value of cash, cash equivalents and non-interest-bearing financial assets and liabilities approximates their carrying value
due to their short maturity.
34 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

C Capital, funding and risk management continued
FOR THE YEAR ENDED 30 JUNE 2021

Fair values of recognised financial assets and liabilities with their carrying amounts shown in the balance sheet are as follows:

Millions of dollars Asset/(Liability)

Non-market
Quoted Observable observable
Carrying Fair value market price inputs inputs
30 June 2021 amount total (Level 1) (Level 2) (Level 3)
Interest-bearing liabilities
Bank facilities(i) 4.6 - - - -
Capital market borrowings (309.7) (337.8) - (337.8) -
Subordinated notes (494.1) (583.4) - (583.4) -
Derivatives
Interest rate swaps 10.5 10.5 - 10.5 -
Foreign exchange contracts 7.2 7.2 - 7.2 -
(forwards, swaps and options)
Crude and finished product swap and futures (54.5) (54.5) 10.0 (64.5) -
contracts
Total (836.0) (958.0) 10.0 (968.0) -

Millions of dollars Asset/(Liability)

Non-market
Quoted Observable observable
Carrying Fair value market price inputs inputs
31 December 2020 amount total (Level 1) (Level 2) (Level 3)
Interest-bearing liabilities
Bank facilities(i) 5.3 - - - -
Capital market borrowings (313.5) (347.9) - (347.9) -
Subordinated notes (493.3) (592.9) - (592.9) -
Derivatives
Interest rate swaps 6.9 6.9 - 6.9 -
Foreign exchange contracts (3.0) (3.0) - (3.0) -
(forwards, swaps and options)
Crude and finished product swap and futures (49.8) (49.9) (22.0) (27.9) -
contracts
Total (847.4) (986.8) (22.0) (964.8) -
(i) Relates to capitalised borrowing costs recorded at amortised cost on committed bank facilities.

Estimation of fair values

Interest-bearing liabilities
Bank facilities
These are estimated as the present value of future cash flows using the applicable market rate.
Capital market borrowings and subordinated notes
These are determined by quoted market prices or dealer quotes for similar instruments
Derivatives
Interest rate swaps
This is an estimated amount that the Group would receive or pay to terminate the swap at balance date taking into account current
interest rates and credit adjustments.
Foreign exchange contracts (forwards, swaps and options)
These are calculated by reference to current forward exchange rates for contracts with similar maturity profiles as at reporting date.
The fair value of foreign exchange options is determined using standard valuation techniques.
Crude and finished product swap and futures contracts
The fair value of crude and product swap contracts is calculated by reference to market prices for contracts with similar maturity
profiles at reporting date. The fair value of crude and product futures contracts is determined by quoted market prices.
 35

Notes to the Financial Statements

C Capital, funding and risk management continued
FOR THE YEAR ENDED 30 JUNE 2021

C3 Issued capital

30 June 31 December
Millions of dollars 2021 2020

Ordinary shares
Shares on issue at beginning of period – fully paid 502.6 502.6
Shares repurchased for cash(i) (22.9) -

Shares on issue at end of period – fully paid 479.7 502.6

(i) On 22 January 2021, the Group completed an Off-market Buy-back of 11,404,848 shares at a price of $26.34 per share which included a capital
component of $2.01 per share. The total amount paid for the buy back was $300.4 million and the impact of this transaction on the issued share
capital of the Company was to reduce it by $22.9 million with the remainder from retained earnings. Holders of ordinary shares are entitled to
receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. The number of issued shares
post the buy back was 238.3 million. Refer to note B4.

In the event of the winding up of the Group, ordinary shareholders rank after all creditors and are fully entitled to any proceeds of
liquidation. The Group grants performance rights to Senior Executives; see the 2020 Remuneration Report for further detail. For
each right that vests, the Group intends to purchase shares on-market following vesting.
36 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

F Group
D Group structure
Structure
FOR THE HALF YEAR ENDED 30 JUNE 2021

D1 Business combinations
There were no business combinations during the half year ended 30 June 2021 or 30 June 2020.
D2 Controlled entities
Details of entities over which control has been gained or lost during the period:
2021
On 14 May 2021, the Group incorporated Ampol Energy Pty Ltd.
On 20 January 2021 the following entities were deregistered:
 Ampol Bendigo Pty Ltd;
 Ampol Road Pantry Pty Ltd;
 Bowen Petroleum Services Pty Ltd;
 Circle Petroleum (Q’land) Pty Ltd;
 Jayvee Petroleum Pty Ltd;
 South Coast Oils Pty Ltd and
 Tulloch Petroleum Services Pty Ltd.
On 9 February 2021 the following entities were deregistered:
 Caltex Australia Nominees Pty Ltd
 Ruzack Nominees Pty Ltd and
 Solo Oil Corporation Pty Ltd.
There were no other entities over which control was gained or lost during the half year ended 30 June 2021.
2020
On 5 March 2020, the Group incorporated Ampol Property Manager Pty Ltd (formerly Ampol Convenience REIT FinCo Pty Ltd).
There were no other entities over which control was gained or lost during the half year ended 30 June 2020.
D3 Equity-accounted investees
Investments in associates and joint ventures

% Interest

Country of 30 June 31 December

Name incorporation 2021 2020

Investments in associates
Seaoil Philippines Inc. Philippines 20 20
Geraldton Fuel Company Pty Ltd Australia 50 50
(i)
Bonney Energy Group Pty Ltd Australia 50 50
(ii)
Endua Pty Ltd Australia 20 -
(iii)
EVOS Technology Pty Ltd Australia - -
Investments in joint ventures
Airport Fuel Services Pty Limited Australia 40 40
Australasian Lubricants Manufacturing Company Pty Ltd(iv) Australia 50 50
Cairns Airport Refuelling Service Pty Ltd Australia 33.33 33.33

(i) On 31 January 2020, Ampol Australia Petroleum Pty Ltd converted its $15.0 million 2016 convertible note to a 50% equity interest in
Bonney Energy Group Pty Ltd (formerly Caltas Pty Ltd). The carrying amount of this investment at 30 June 2021 was $16.7 million.
(ii) On 19 May 2021, Ampol Energy Pty Ltd acquired a 20% equity interest in Endua Pty Ltd.
(iii) On 8 June 2021, Ampol Energy Pty Ltd acquired rights in EVOS Technology Pty Ltd whereby Ampol has the right to shares in EVOS. As this right is
currently exercisable in accordance with AASB 128 Investment in Associates and Joint Ventures, Ampol has taken these rights into consideration when
assessing the accounting for its investment in EVOS as an associate.
(iv) Australasian Lubricants Manufacturing Company Pty Ltd ceased joint venture operations on 17 April 2015 and had a nil carrying value at
30 June 2021.

The companies listed in the above table were incorporated in Australia and the Philippines and have a 31 December balance date.
These companies’ main course of business primarily relate to the sale, marketing and/or distribution of fuel products and the
operation of convenience stores with the exception of Endua Pty Ltd (Endua) and EVOS Technology Pty Ltd (EVOS). Endua is
principally concerned with the generation and storage of clean hydrogen power and EVOS with the design and manufacture of
electric vehicle charging products.
 37

Notes to the Financial Statements

F Group
E Other information
structure continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

E1 Commitments and contingent liabilities

Capital expenditure

Millions of dollars 30 June 31 December

2021 2020

Capital expenditure contracted but not provided for in the

financial report and payable 60.6 23.0

On 25 August 2020, Ampol announced, after successfully applying to a tender with Transport for New South Wales that Ampol had
won the right to lease and redevelop four existing highway service centres located on the M4 Motorway at Eastern Creek and on
the M31 Hume Highway at Pheasants Nest. The estimated redevelopment capital expenditure of ~$100 million is expected to be
contracted and spent during the second half of 2021 and 2022. DA approval has not yet been granted as at 30 June 2021.
Contingent liabilities
Discussed below are items where either it is not probable that the Group will have to make future payments or the amounts of the
future payments are not able to be measured.
Legal and other claims
In the ordinary course of business, the Group is involved as a plaintiff or defendant in legal proceedings. Where appropriate, Ampol
takes legal advice. The Group does not consider that the outcome of any current proceedings is likely to have a material effect on
its operations or financial position.
A liability has been recognised for any known losses expected to be incurred where such losses are capable of reliable
measurement.
Bank guarantees
The Group has entered into letters of credit in the normal course of business to support crude and product purchase commitments
and other arrangements entered into with third parties. In addition, the Group has granted indemnities to banks to cover bank
guarantees given on behalf of controlled entities. The probability of having to make a payment under these arrangements is remote.
Deed of Cross Guarantee and class order relief
The parent entity has entered into a Deed of Cross Guarantee through which the Group guarantees the debts of certain controlled
entities. The controlled entities that are party to the deed are disclosed in F1 of the Financial Statements for the year ended 31
December 2020.

E2 Related party disclosures

Associates
Associate related party transactions are as follows:

30 June 30 June
Dollars 2021 2020

Income Statement
Petroleum sales 552,340,000 335,094,000
Rental income 958,000 874,000
Dividend and disbursements 1,600,000 50,000
Total Income statement impact 554,898,000 336,018,000

Balance Sheet

Receivables 105,847,000 36,796,000

Total balance sheet impact 105,847,000 36,796,000

Details of the Group’s interests are set out in note D3. There were no other material related party disclosures during the half year
ended 30 June 2021.
Joint venture and joint operations
The Group has interests in joint arrangements primarily for the marketing, sale and distribution of fuel products and the operation of
convenience stores.
There were no other material related party transactions with the Group’s joint arrangements entities during the half year 2021
(1H2020: nil). Details of the Group's interests are set out in note D3.
38 AMPOL Limited 2021 Half Year Report

Notes to the Financial Statements

E Other information continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

E3 Net tangible assets per share

30 June 31 December
Millions of dollars 2021 2020

Net tangible assets per share 10.00 9.58

Net tangible assets are net assets attributable to members of Ampol less intangible assets. The number of ordinary shares used in
the calculation of net tangible assets per share was 238.3 million (2020: 249.7 million).

E4 Taxation
Taxation of Singaporean entities
At the date of this report, the Australian Taxation Office (ATO) had not finalised its position in relation to the extent to which
earnings by the Group’s Singaporean entities from transactions with the Group’s Australian entities should be subject to corporate
income tax in Australia.
Due to the uncertainty over the ATO’s final position, the Group has recognised tax liabilities for the period 1 January 2014 to 30
June 2021 in relation to these earnings at the Australian corporate income tax rate of 30%, rather than at the rate payable by the
Group’s Singaporean entities in Singapore. The difference between these rates is a cumulative tax expense impact (both current
and deferred) of $197.1 million (2020: $178.9 million) for the period 1 January 2014 to 30 June 2021.
Under an administrative agreement with the ATO, 50% of the current tax expense impact for the 2014 to 2019 years has been paid
or is now payable, with the remaining 50% payable pending resolution of the matter. No Australian tax was paid on these earnings
in respect of the 2020 year given the Australian tax consolidated group was in a tax loss position. In addition, no Australian tax was
paid on these earnings in respect of the first half of 2021 due to the utilisation of the tax loss carried forward from the 2020 year. As
at 30 June 2021, the Group has recognised $87.2 million (2020: $81.0 million) in current tax liability and reduced the deferred tax
asset recognised on the Australian tax consolidated group’s carry forward tax loss by $29.2 million (2020: $10.9 million), in relation
to this matter.
If the outcome of the ATO’s position is in the Group’s favour, an amount of income tax expense recognised to date could be written
back in future periods. If it is resolved such that the ATO’s position is sustained, there would be no impact on the Group’s income
statement or net assets.

E5 Impairment of non-current assets

Carrying value assessment
The carrying amounts of each cash generating unit (“CGU”) are reviewed at each reporting period to determine if there are any
indicators of impairment. CGUs are the lowest levels at which assets are grouped and generate separately identifiable cash flows.
Where an indicator of impairment exists, a detailed recoverable amount test is performed for the relevant CGU. If the recoverable
amount test determines that a CGU is impaired an impairment expense is recognised in the income statement.
All CGUs have been reviewed for indicators of impairment and triggers for a detailed recoverable amount review were present for
the Lytton refinery. Other CGU Groups were not tested for impairment as there were no impairment indicators at 30 June 2021.
Lytton refinery CGU
30 June 2021
Global hydrocarbon demand weakness due to COVID-19 travel restrictions and the impact of COVID-19 on regional refiner margins
and global trade balances has impacted the profitability of the Lytton refinery. With refiner margins at historically low levels and
demand for hydrocarbons showing weakness globally and in Australia, the Group announced on 8 October 2020 that it would
undertake a review of its Lytton refinery operations. The review was completed in May 2021 and the Group announced that it would
continue to operate the Lytton refinery and would access a range of both temporary and ongoing government support for the
refinery industry. Given the ongoing historically low levels of refinery margins, and the significant changes to the income streams for
the Lytton refinery, the Group has undertaken a recoverable amount review of the Lytton refinery CGU.
The Group re-assessed the recoverable amount of its Refinery assets using a discounted value-in-use cash-flow analysis. The
analysis uses cash flows projected over a 10-year useful life with a discount rate of 8.3% post-tax (pre-tax of 14.5%). Based on this
assessment it was determined the carrying value of the refinery was not impaired.
Determining recoverable amount requires the exercise of significant judgement for both internal and external factors. This includes,
but is not limited to, external foreign exchange forecasts and reference to industry-specific external analyst forecasts of regional
refiner margins. Judgements for internal factors, including but not limited to applicable discount rate, production volumes, wage
growth and other operating costs, have been made with reference to historical data and forward-looking business plans.
Assumptions have been risk adjusted as appropriate to take account of the inherent uncertainty of the future operating environment
and market conditions impacting Lytton refinery, arising from the COVID-19 pandemic.
 39

Notes to the Financial Statements

E Other information continued
FOR THE HALF YEAR ENDED 30 JUNE 2021

E5 Impairment of non-current assets continued

Carrying value assessment continued
Lytton refinery CGU continued
Sensitivities
Changes in the long-term view of both internal and external judgements may impact the estimated recoverable value. The
discounted cash flows are most sensitive to the following assumptions:

Key assumption Recoverable Amount

increase/(decrease)

Long term refining margins decreasing by US$1/bbl over a ten-year period ~($218) million

Foreign exchange rate (USD/AUD) increasing by 1 cent ~($25) million

Reduction over a ten-year period in annual production volume by 100ML for each year modelled ~($33) million

Discount rate increase by 1% ~($45) million

30 June 2020
The Group assessed the recoverable amount of its Refinery assets using a discounted value-in-use cash-flow analysis. The
analysis uses cash flows projected over a ten-year useful life with a discount rate of 8.5% post-tax (pre-tax of 13.0%). Based on this
assessment an impairment loss of $80.0 million was recognised in the interim financial statements.
Convenience Retail
30 June 2020
The Group assessed the recoverable amount of the site level CGU assets by using a value-in-use discounted cash flow analysis.
The analysis used cash flow forecasts based on a five-year period which were risk adjusted to reflect the uncertainty around the
timing and level of recovery from the impact of COVID-19. Cash flows beyond this period were extrapolated using a long-term
growth rate of 2.5%. Cash flow forecast for leased site assets were consistent with the term of the lease assessed under AASB 16.
The recoverable amount of the CGUs was based on its value-in-use (with a discount rate of 7.8% post-tax and pre-tax of 10.3%).
Based on the assessment it was determined that the carrying value of the Convenience Retail site assets was impaired by $233.0
million.
Impairment - Other specific assets
30 June 2020
As a consequence of COVID-19, a review of company priorities across projects and future investment was undertaken, to ensure a
clearer focus on the organisational priorities. The review resulted in cessation of IT projects and identification of Convenience Retail
and Depot sites to be closed and divested. Based on this assessment it was determined that an asset write down of $41.8 million
was required.

E6 Events subsequent to the reporting date

Dividend
On 23 August 2021, the Directors declared a fully franked final dividend. Refer to note B5 for further information.
Coronavirus pandemic (COVID-19)
Since July 2021, Australian state governments have announced a number of new restrictions in response to COVID-19 and the
situation continues to evolve. These restrictions affect fuel demand and shop performance and the duration and impact of these
restrictions on the business remains uncertain. Ampol continues to monitor and review the safeguarding and health of its people
and customers, business continuity and cashflow.
Z Energy Limited
On 23 August 2021 the Group announced that it had made a non-binding indicative offer to acquire Z Energy Limited (“Z”), a fuel
distribution and retailing company which is listed on the New Zealand Stock Exchange. The Group made a cash offer of NZ$3.78
per share with an estimated transaction (equity) value of approximately NZ$2.0bn, which equates to an Enterprise Value of
NZ$2.8bn (inclusive of net debt). The Group will commence a four week period of exclusivity during which it will conduct
confirmatory due diligence and further develop its proposal. The proposal is subject to a unanimous Board recommendation,
agreement of binding transaction documents, as well as the approval of Z shareholders, NZ High Court and relevant regulatory
authorities. The Group expects the acquisition to be funded through a mix of debt, proceeds from divestments and approximately
$600m in equity. It is anticipated that any transaction would complete in the first half of 2022.
Other
There were no other items, transactions or events of a material or unusual nature that, in the opinion of the Board, are likely to
significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group that have arisen in
the period from 30 June 2021 to the date of this report.