ALIMENTATION COUCHE-TARD INC. INVESTORS PRESENTATION November 2017
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 30, 2017. 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 30, 2017 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. 2
AGENDA 1. Company Highlights 2. Ambitions & Strategy 3. Value Creation & Financial Review 4. Recent acquisitions summary 3
KEY DATA • Listed on the Toronto Stock Exchange ATD.B • Market Cap 1 Approx. CA$34B • Revenue US$37.9B Fiscal Year 2017 2 US$9.8B Q1 2018 YTD 2 (+16.9%) • Gross Profit US$6.5B Fiscal Year 2017 2 US$1.7B Q1 2018 YTD 2 (+14.4%) • EBITDA US$2.4B Fiscal Year 2017 2 US$0.7B Q1 2018 YTD 2 (+12.2%) • Number of stores 3 13,974 North America 9,471 Europe 2,754 International 1,749 • Net Debt / Leverage 4 FY2017 US$2.7B / 1.09x Q1 2018 US$6.4B / 2.31x • Ratings S&P BBB (Stable outlook) Moody’s Baa2 (Stable outlook) 1.As at September 8, 2017. 2.Fiscal Year ended 30/04/2017 and Q1 2018 YTD being 12 weeks to 23/07/2017. 3.Includes Couche-Tard’s Company-Owned/Dealer-Operated and Dealer-Owned-Dealer-Operated sites as at July 23, 2017. 4.Long term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA adjusted for 4 non-recurring items. Refer to the Corporation’s MD&As for more details.
ALIMENTATION COUCHE-TARD INC. COMPANY HIGHLIGHTS
WHO WE ARE Couche-Tard is a Canada based group and a world leader in the convenience store and road transportation fuel retail sector • In North America , Couche-Tard is the largest independent convenience store operator in terms of number of company-operated stores. • In Europe , Couche-Tard is a leader in convenience store and road transportation fuel retail in Scandinavia, Ireland and the Baltic countries, with a significant presence in Poland. • 9,471 convenience stores throughout North America, including 8,129 stores offering road transportation fuel in all 10 Canadian provinces North America and 42 U.S. States, and employing about 95,000 people. • More than 1,200 locations in the U.S. supplied with road transportation fuel through CrossAmerica Partners LP. • 2,754 stores, comprising a broad retail network across Scandinavia (Norway, Sweden and Denmark), Ireland, the Baltics (Estonia, Latvia Europe and Lithuania), Poland and Russia. Including employees at its branded franchise stations, about 25,000 people work in its retail network, terminals and service offices across Europe. • More than 1,700 stores operated by independent operators under the International Circle K banner in 13 other countries or regions worldwide which brings the number of sites in Couche-Tard’s network to over 15,000. Store count as at July 23, 2017. 6
A DISCIPLINED CONVENIENCE STORE OPERATOR AND INTEGRATOR • World class retailer and leading C-store operator with geographically diverse footprint Broad Geographic Footprint with • Strong banners, with our new global convenience brand “Circle K TM ” and our fuel banner Leading Market Positions “Ingo” at unmanned stations in Scandinavia • Increasing focus on private label, fresh food products and famous for concepts Superior Product Offerings • Industry leading merchandise gross margin • Proven integrator Track Record of Highly Disciplined • Well positioned to lead further consolidation in fragmented industry Growth and Debt Reduction • Committed to investment grade credentials post acquisition •Steady industry performance throughout downturns with strong projected growth Attractive Sector Dynamics •C-store sector well positioned to gain share from traditional food retail •Industry-leading returns in recessions •Strong and consistent financial performance throughout all economic cycles Powerful Financial Results •Prolific history of positive same-store comps and 22.5% Return on equity 1 •Significant FCF generation (2012-2017) CAGR of 17% •Proven ability to extract significant synergies from acquisitions Attractive Synergy Potential •Transferring best practices across entire platform •Management team with strong track record and founders have 22%Management and Disciplined Management Culture Board need to hold a multiple of their salary in Shares •Decentralized operating model Proven Capacity to Transform and •Company successfully went trough 3 transformations over its existence Innovate (1) As of April 30, 2017. 7
Largest independent convenience store operator in the US in terms of number of NORTH AMERICAN NETWORK company operated stores • In the US, the convenience sector is fragmented and in a consolidation phase • Couche-Tard acquired The Pantry in March 2015, one of the largest independently operated convenience stores in the US • On June 28, 2017, Couche-Tard acquired 100% of the outstanding shares of CST Brands, the 4 th largest chain in North America. Leader in the Canadian convenience store industry • In Canada, the convenience store sector is dominated by a few major players including Couche-Tard and integrated oil companies. Some of the latter are selling, or expected to sell their retail assets. • On September 7, 2016, Couche-Tard received the approval from the Canadian Competition Bureau to acquire from Imperial Oil Limited 279 sites in Ontario and Quebec and finalized the integration of these sites during the third quarter of fiscal 2017. Canada US Couche-Tard Circle K Circle K Kangaroo Express Mac’s, Esso & CST (will be & CST (will be rebranded to Circle K) rebranded to Circle K) Total network of 9,471 stores in North America As at July 23, 2017. 8
EUROPEAN NETWORK Leader in convenience store and road transportation fuel retail in the Scandinavian and Baltic countries and Ireland • The European convenience store sector is often dominated by a few major players, including integrated oil companies. Some of these are in the process of selling, or are expected to sell their retail assets • Key brands: Circle K Being rebranded from Statoil Ingo Unmanned Scandinavian stations Topaz Will be rebranded to Circle K 2,754 stores in 9 countries or regions in Europe As at July 23, 2017. 9
INTERNATIONAL PRESENCE Central / South Asia America China United Arab Mexico 86 Emirates 461 31 • Convenience stores Guam operated by independent Honduras 13 operators under the 25 Circle K brand Hong Kong Egypt • 332 License agreement to 9 use the brand name Philippines Costa Rica Macau Vietnam Circle K 16 5 30 246 Malaysia Indonesia 6 489 More than 1,700 licensed Circle K stores in Asia, Costa Rica, Egypt, Honduras, Mexico and U.A.E As at July 23, 2017. 10
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