ALIMENTATION COUCHE-TARD INC. INVESTOR PRESENTATION November 2018
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 29, 2018. 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 29, 2018 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. Note: All figures include contribution from CAPL unless otherwise noted. 2
ALIMENTATION COUCHE-TARD INC. COMPANY HIGHLIGHTS 3
KEY FACTS Listed on the Toronto Stock Exchange ATD.B Largest Canadian company based on Market Cap 1 Approx. CA$36B revenues Revenue US$51.4B Fiscal Year 2018 US$29.5B Q2 2019 YTD 2 (+34%) Gross Profit US$8.1B Fiscal Year 2018 US$4.4B Q2 2019 YTD 2 (+16%) EBITDA US$3.0B Fiscal Year 2018 5-year CAGR +5.1% US$1.8B Q2 2019 YTD 2 (+15%) Number of stores 3 15,994 • North America 9,943 • Europe 2,718 • CAPL network 1,291 • Circle K branded sites under licensing 2,042 agreements Net Debt / Adjusted Net Leverage Ratio 4 • FY2018 US$7.7B / 3.13x • Q2 2019 US$6.7B / 2.79x Ratings • S&P BBB (Stable outlook) • Moody’s Baa2 (Stable outlook) 1. As at November 19, 2018. 2. Fiscal Year ended 04/29/2018 and Q2 2019 YTD being 24 weeks to 10/14/2018. 3. Includes Couche-Tard’s Company-Owned/Dealer-Operated and Dealer-Owned-Dealer-Operated sites as at October 14, 2018. 4. Long term interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided 4 by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items; overall ratio excludes the contribution from CAPL. Refer to the Corporation’s MD&As for more details.
OUR COMPANY TIMELINE Acquisition of The Pantry Inc., a Entry into US leading convenience store Acquisition of the assets of operator in the southeastern Johnson Oil Company, United States. Inc., owner of 225 Bigfoot stores, all located in the Global Circle K brand is U.S. Midwest launched Acquisition of 278 Esso- Couche-Tard branded Canadian fuel and becomes an active convenience sites located in player in the US Ontario and Québec from market consolidation. Imperial Oil Start of operations Acquisition of Topaz, Acquisition of CST Brands, Acquisition of The Entry into Europe: with the opening of a the leading 4th largest chain in North Circle K Corporation Acquisition of Statoil first convenience store from ConocoPhillips Fuel & Retail, a leading convenience and fuel America, and Holiday in Laval, Québec. retailer in Ireland. Stationstores, a Midwest Company Scandinavian road Consolidation of transport fuel retailer powerhouse Canadian Market 5
OUR NETWORK – NORTH AMERICA Our North American Network – 9,943 stores, employing about 105,000 people In North America, Couche-Tard is the largest independent convenience store operator in terms of number of company-operated stores. We are in all provinces in Canada and in 48 out of 50 states in the US. Leading market share in key growth markets. As at October 14, 2018. 6
OUR NETWORK – EUROPE NORWAY Corporate stores: 229 CODO: 217 RUSSIA Corporate stores: 33 DODO: 23 Our European CODO: - inc. automats: 184 DODO: - inc. automats: - Network – SWEDEN Corporate stores: 645 CODO: 103 DODO: 16 2,718 stores, ESTONIA inc. automats: 471 Corporate stores: 77 CODO: - DODO: - employing about inc. automats: 17 DENMARK Corporate stores: 428 CODO: - DODO: 22 LATVIA 25,000 people inc. automats: 210 Corporate stores: 68 CODO: - DODO: 14 inc. automats: 4 In Europe, Couche-Tard is a leader in LITHUANIA convenience store and road IRELAND Corporate stores: 85 Corporate stores: 162 CODO: - transportation fuel retail in CODO: 12 DODO: 1 DODO: 232 Scandinavia, Ireland and the Baltic inc. automats: 12 Affiliated stores: 3 countries, with a significant presence inc. automats: - POLAND Corporate stores: 276 in Poland. CODO: - DODO: 72 inc. automats: 85 As at October 14, 2018. 7
OUR NETWORK – WORLDWIDE Asia Approximately Mongolia 2,042 stores 2 United Arab China Emirates 82 under licensing 35 Saudi Arabia 4 agreements worldwide Hong Kong Mexico 322 725 Vietnam Egypt 296 24 Well positioned to participate in Macau many high growth markets. Honduras Guam 30 13 30 Costa Rica Cambodia 12 5 Indonesia 462 Central / South America As at October 14, 2018. 8
COUCHE-TARD IS A WORLD LEADER Couche-Tard is a leading global convenience store operator with EBITDA of $3.2 billion • Well diversified across geographies • Focus on growing high margin categories Merchandise and Service Motor Fuel Other Total REVENUES $13,990M (25%) $41,528M (73%) $1,430M (2%) $56,948M US Canada Canada Canada Canada 2% 2% 13% 13% 15% By Products Europe Europe LTM Q2 2019 11% 20% Europe 20% US Europe US 67% US 96% 74% 67% Merchandise and Service Motor Fuel Other Total GROSS PROFIT $4,845M (57%) $3,484M (41%) $220M (2%) $8,549M Canada Canada Canada Canada 12% 15% 14% 13% By Products US US Europe 65% 12% LTM Q2 2019 13% Europe Europe 21% US Europe 29% US 72% 76% 58% Financial data presented for the LTM as of Q2 2019. All figures exclude contribution from CAPL. 9
COUCHE-TARD PROVIDES TWO VALUABLE RESOURCES Convenience stores have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes TIME & CONVENIENCE Convenience stores are everywhere. There are 155, 000 convenience stores in the United States—or one store for about every 2,100 people— and c-stores account for more than one- third (34.1%) of all outlets in the United States. An average convenience store selling fuel has around 1,100 customers per day, or more than 400,000 per year. Cumulatively, the U.S. convenience store industry alone serves nearly 160 million customers per day, and 58 billion customers every year. 83% of the in-store merchandise that convenience stores sell is consumed within one hour of purchase, and 65% is immediately consumed = online resistant The convenience store industry is America's primary source for fuel 10
ALIMENTATION COUCHE-TARD INC. OUR GROWTH MODEL 11
OUR FOUR PILLARS OF VALUE CREATION – THE EQUATION Capital Value Organic Cost Structure & Acquisitions Growth Discipline Financial Creation Discipline GROWTH DISCIPLINE 12
OUR GLOBAL BRAND – CIRCLE K 13
OUR GROWTH – NETWORK STORE COUNT 2014 8,500 2015 10,100 2016 10,600 2017 10,900 2018 12,700 Notes: (1) Network store count excludes CAPL and International sites under licenses. (2) All figures rounded to nearest hundred. 14
OUR GROWTH – GREAT EMPLOYEES 2014 2015 2016 2017 2018 80,000 100,000 105,000 120,000 130,000 15
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