Alimentation Couche-Tard Inc. June 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 28, 2013. 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 28, 2013 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 Representatives Brian Hannasch Chief Operating Officer 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. SFR Update 4. Capital Structure & Debt Reduction Plan Appendix 1. Historical Industry Sales 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 and Statoil) continue to Management team with strong track • Increasing focus on private label and drive traffic and sales record and founders have 22% 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 : Baa3 (Stable) Prolific history of positive same store sales C-store sector well positioned to gain comps and ~23% ROE share from traditional food retail • • Significant FCF generation (2008-2013 Industry-leading returns in recession CAGR of 65%) proof industry Track Record of Highly Disciplined Growth and Debt Reduction Attractive SFR Synergy Potential • Proven ability to integrate acquisitions (~1,500 stores from 45 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 6,234 corporate-operated stores, 614 CODO (1) , 534 DODO (2) and 1,102 affiliated stores In addition to the stores above, under licensing agreements, 4,247 stores operated under the Circle K banner worldwide ● Well-recognized banners including Couche- Tard, Circle K, Statoil and Mac’s ● Proven track record of disciplined growth and profitability Revenue, EBITDA and EPS ’08 - ’13 CAGR of 18.3%, 23.2% and 27.4%, respectively LTM EBITDA of $1.6B ● Disciplined management culture with proven integration track record Decentralized operating model Successfully integrated ~1,500 stores from 45 acquisitions since Circle K transaction (excluding Statoil Fuel & Retail) Founders own ~22% of the Company ● Significant cash flow generator with historically strong credit metrics Free cash flow ’08 - ’13 CAGR of 64.8% Largest operator of company-operated stores and disciplined consolidator in resilient industry (1) Company Owned Dealer Operated. (2) Dealer Owned Dealer Operated. 7
History of Highly Disciplined M&A Approach Couche- Tard’s Consistent Acquisition Strategy Florida Oil Holdings, LLC Dickerson Petroleum Groovin Noovin RDK Joint Compac Venture Food Stores Revenue ($) Accel All Star Marketing LLC Winners Sterling Stores Moore Oil Spectrum Store Pump N Shop 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3 2014 Total Debt/ 3.1 1.5 1.2 1.8 1.7 1.3 1.1 0.7 0.8 2.4 (2) (3) 1.7 (3) EBITDA (x) (1) Stores 1,706 45 75 421 46 107 70 47 326 2,506 163 Acquired Superb track record of integrating acquisitions (1) Represents Total Debt/EBITDA at fiscal year end except for 2014 which represents YTD Q3. (2) Pro forma the acquisition of SFR . 8 (3) Adjusted for non-recurring restructuration provision, curtailment gain and negative goodwill.
North American Footprint Network CENTRAL CANADA Corporate stores: 515 CODO: - DODO: - Affiliated stores: 192 WESTERN CANADA v QUEBEC EAST AND Corporate stores: 303 ATLANTIC CODO: - Corporate stores: 301 v DODO: - CODO: - Affiliated stores: - DODO: - Affiliated stores: 13 QUEBEC WEST Corporate stores: 354 WEST COAST REGION CODO: - Corporate stores: 251 DODO: - CODO: 142 Affiliated stores: 217 DODO: 172 Affiliated stores: 253 GREAT LAKES REGION Corporate stores: 524 CODO: - DODO: - Affiliated stores: 115 MIDWEST REGION Corporate stores: 495 CODO: 41 DODO: 103 Affiliated stores: 58 SOUTHEAST REGION Corporate stores: 278 ARIZONA REGION CODO: - DODO: 3 Corporate stores: 616 CODO: - Affiliated stores: 110 DODO: - Affiliated stores: 2 FLORIDA REGION SOUTHWEST REGION GULF REGION Corporate stores: 413 Corporate stores: 271 Corporate stores: 289 CODO: 15 CODO: 2 CODO: - DODO: 21 DODO: 3 DODO: 7 Affiliated stores: 36 Affiliated stores: 61 Affiliated stores: 45 Total network of 5,712 stores in North America and supplies fuel to an additional 509 sites 9 As of February 2, 2014.
European Footprint NORWAY Corporate stores: 198 RUSSIA CODO: 248 Corporate stores: 33 DODO: 57 CODO: - inc. automats: 180 DODO: - inc. automats: - SWEDEN Corporate stores: 612 CODO: 143 DODO: 27 ESTONIA Corporate stores: 52 inc. automats: 478 CODO: - DODO: - inc. automats: 6 DENMARK Corporate stores: 311 CODO: 23 LATVIA DODO: 51 Corporate stores: 65 inc. automats: 171 CODO: - DODO: 12 inc. automats: 6 POLAND LITHUANIA Corporate stores: 277 Corporate stores: 76 CODO: - CODO: - DODO: 78 DODO: - inc. automats: 86 inc. automats: 13 2,263 stores in 8 countries in Europe 10 As of February 2, 2014.
International Presence Central / South China Asia America 92 Mexico 261 Japan 2,985 United Arab Emirates 29 Guam 13 Hong Kong Macau 335 23 Philippines Honduras Vietnam 6 60 Malaysia Indonesia 443 4,247 licensed Circle K stores in Asia, Mexico, Honduras and U.A.E 11 As of February 2, 2014.
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