Alimentation Couche-Tard Inc. October 2014
Forward-Looking Information and Cautionary Language This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “projected”, “estimate”, “may”, “anticipate”, “believe”, “expect”, “plan”, “intend” or similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact contained in these slides are forward-looking statements. Forward-looking statements involve numerous assumptions, risks and uncertainties. A variety of factors, many of which are beyond Alimentation Couche-Tard Inc. ’s (“Couche - Tard”) control, may cause actual results to differ materially from the expectations expressed in its forward-looking statements. These factors include, but are not limited to, the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins on motor fuel sales, competition in the convenience store and retail motor fuel industries, foreign exchange rate fluctuations, and such other risks as described in detail from time to time in documents filed by Couche-Tard with securities regulatory authorities in Canada, including those risks described in Couche- Tard’s management’s discussion and analysis (MD&A) for the year ended April 27, 2014. Couche- Tard’s MD&A and other publicly filed documents are available on SEDAR at www.sedar.com. Unless otherwise required by law, Couche-Tard does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by it or on its behalf. No financial information presented in this presentation as of a date more recent than April 27, 2014 has been audited. While the information contained in this presentation is believed to be accurate, Couche-Tard expressly disclaims any and all liability for any losses, claims or damages of whatsoever kind based upon the information contained in, or omissions from, this presentation or any oral communication transmitted in connection therewith. In addition, none of the statements contained in this presentation are intended to be, nor shall be deemed to be, representations or warranties of Couche- Tard and its affiliates. Where the information is from third-party sources, the information is from sources believed to be reliable, but Couche-Tard has not independently verified any of such information contained herein. This presentation is not, and under no circumstances is to be construed as, a prospectus, an offering memorandum, an advertisement or a public offering of securities. Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to buy any securities. 1
Company Representative Raymond Paré Vice-President and Chief Financial Officer Tel: (450) 662-6632 ext. 4607 investor.relations@couche-tard.com 2
Table of Contents 1. Investment Highlights 2. Couche-Tard Today 3. Capital Structure & Debt Reduction Plan Appendix 1. Historical Industry Sales 2. Dividend vs Free Cash Flow 3. Adjusted Enterprise Value on EBITDAR vs EPS 3
1. Investment Highlights 4
Investment Highlights Broad Geographic Footprint with Leading Market Positions • Leading C-store operator in North America, Scandinavia and Central and Disciplined Eastern Europe Superior Management Culture Product Offerings • Powerful local banners (Couche-Tard, • Circle K, Mac’s, Ingo, and Statoil) Management team with strong track • Increasing focus on private label and continue to drive traffic and sales record and founders have 23% equity fresh food products ownership • World class Canadian retailer with most • • Industry leading merchandise gross SFR’s management team remains in geographically diversified footprint margin place • Decentralized operating model Powerful Attractive Financial Results Sector Dynamics • • Strong and consistent financial performance Steady industry performance throughout throughout all economic cycles downturns with strong projected growth S&P: BBB- (Stable) • • Moody’s : Baa2 (Stable) Prolific history of positive same store sales C-store sector well positioned to gain comps and 22% ROE share from traditional food retail • • Significant FCF generation (2008-2014) Industry-leading returns in recession CAGR of over 60%) proof industry Track Record of Highly Disciplined Growth and Debt Reduction Attractive SFR Synergy Potential • Proven ability to integrate acquisitions (~1,500 stores from 46 acquisitions since • Circle K in 2003, excluding SFR) Proven ability to extract significant synergies from acquisitions • Well positioned to lead further consolidation • in fragmented industry Transferring best practices across entire platform • Committed to remain investment grade post SFR acquisition Couche-Tard is a disciplined c-store operator and integrator 5
2. Couche-Tard Today 6
Key Highlights ● Couche-Tard is a leading global convenience store operator Largest operator in North America based on number of company-operated stores. Leader in convenience store and road transportation fuel in Scandinavian countries and in the Baltic countries Network of 6,236 corporate-operated stores, 592 CODO (1) , 538 DODO (2) and 1,127 affiliated stores In addition to the stores above, under licensing agreements, 4,616 stores operated under the Circle K banner worldwide ● Well-recognized banners including Couche-Tard, Circle K, Statoil, Ingo and Mac’s ● Proven track record of disciplined growth and profitability Revenue, EBITDA and EPS ’08 - ’14 CAGR of 16.3%, 22.5% and 29.4%, respectively LTM EBITDA of $1.7B ● Disciplined management culture with proven integration track record Decentralized operating model Successfully integrated ~1,500 stores from 46 acquisitions since Circle K transaction (excluding Statoil Fuel & Retail) Founders own ~23% of the Company ● Significant cash flow generator with historically strong credit metrics Free cash flow ’08 - ’13 CAGR of 64.8% Largest operator of company-operated stores and disciplined consolidator in resilient industry (1) Company Owned Dealer Operated. (2) Dealer Owned Dealer Operated. 7
North American Footprint Network CENTRAL CANADA Corporate stores: 506 CODO: - DODO: - Affiliated stores: 188 WESTERN CANADA v QUEBEC EAST AND Corporate stores: 300 ATLANTIC CODO: - Corporate stores: 301 v DODO: - CODO: - Affiliated stores: - DODO: - Affiliated stores: 12 QUEBEC WEST Corporate stores: 351 WEST COAST REGION CODO: - Corporate stores: 246 DODO: - CODO: 133 Affiliated stores: 209 DODO: 183 Affiliated stores: 263 GREAT LAKES REGION Corporate stores: 524 CODO: - DODO: - Affiliated stores: 134 MIDWEST REGION Corporate stores: 497 CODO: 39 DODO: 104 Affiliated stores: 56 SOUTHEAST REGION Corporate stores: 294 CODO: - ARIZONA REGION Corporate stores: 617 DODO: 3 CODO: - Affiliated stores: 114 DODO: - Affiliated stores: 2 FLORIDA REGION SOUTHWEST REGION GULF REGION Corporate stores: 413 Corporate stores: 269 Corporate stores: 287 CODO: 15 CODO: 2 CODO: - DODO: 22 DODO: 3 DODO: 7 Affiliated stores: 42 Affiliated stores: 62 Affiliated stores: 45 Total network of 5,732 stores in North America and supplies fuel to an additional 511 sites 8 As of July 20, 2014.
European Footprint NORWAY Corporate stores: 199 RUSSIA CODO: 246 Corporate stores: 33 DODO: 49 CODO: - inc. automats: 178 DODO: - inc. automats: - SWEDEN Corporate stores: 619 CODO: 135 DODO: 26 ESTONIA Corporate stores: 52 inc. automats: 478 CODO: - DODO: - inc. automats: 6 DENMARK Corporate stores: 310 CODO: 22 LATVIA DODO: 50 Corporate stores: 65 inc. automats: 170 CODO: - DODO: 12 inc. automats: 6 POLAND LITHUANIA Corporate stores: 277 Corporate stores: 76 CODO: - CODO: - DODO: 78 DODO: 1 inc. automats: 86 inc. automats: 13 2,250 stores in 8 countries in Europe 9 As of July 20, 2014.
International Presence Central / South China Asia America 92 Mexico 269 Japan 3,273 United Arab Emirates 32 Guam 13 Hong Kong Macau 340 25 Honduras Vietnam Philippines India 11 79 2 Malaysia 9 Indonesia 471 4,616 licensed Circle K stores in Asia, Mexico, Honduras and U.A.E 10 As of July 20, 2014.
Couche-Tard as a World Leader Europe (1) North LTM America ($ billions) Revenue $25.7 $12.5 $38.2 Contribution 67% 33% 100% Gross Profit $3.3 $1.8 $5.1 Gross Margin 12.9% 14.2% 13.3% EBITDA (3) $1.7 EBITDA Margin 4.4% (2) Stores (#) 6,243 2,250 8,493 Couche-Tard is a leading global convenience store operator with EBITDA of $1.7 billion (1) LTM financial results as at July 20, 2014. Includes Couche- Tard’s Company -Owned/Dealer-Operated and Dealer-Owned/Dealer-Operated sites. (2) 11 (3) Adjusted for non-recurring restructuring provision, curtailment gain and negative goodwill.
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