investor presentation · 2019. 5. 10. · this presentation and the accompanying oral presentation...

INVESTORPRESENTATION

May 2019Alimentation Couche-Tard

FORWARD-LOOKING STATEMENTS

2

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.

INVESTMENT HIGHLIGHTS

3

Size and Scale

Capital Allocation

Strong Culture

Attractive Channel

Organic Growth

M&A Expertise

• Global rebrand initiative permits better leverage of broad scale.• More flexibility to compete compared to small-size operators.

• Strong cash flow generation supports capex and growth plans.• Dividend increased more than six-fold since 2011 (~29% CAGR).

• Decentralized model drives accountability and entrepreneurship.• Cost discipline and lean operations are a major part of our DNA.

• We sell time and convenience (~65% of products consumed within hour of purchase) and have close proximity to customers.

• Solid pipeline of current initiatives, with many opportunities around customer journey, innovation, and deployment of retail capabilities.

• Long track record of successful integrations and synergy capture.• Significant runway remains globally, with a focus on U.S. and Asia.

CONTENT

4

1 32Company Highlights U.S. Industry Overview Competitive Advantages

4 5Our AmbitionIncreasing

ShareholderValue

COMPANY HIGHLIGHTS

5

• Largest company in Canada by revenues, 15th largest by market capitalization.

• Coast-to-coast presence in Canada and located in 48 of 50 U.S. states.

• Leading market share across many markets in Europe.

• EBITDA CAGR of ~22% since 2011 and profitable since IPO in 1986.

• Track record of generating shareholder value with average ROCE of 15.6% since 2011.

• Investment grade rating (BBB, Baa2) and significant balance sheet flexibility.

TSX: ATD.A | ATD.B

Ticker Symbol

GLOBAL LEADER IN FUEL & CONVENIENCE RETAIL

6

25incl. int’l licensees

Countries

~750,000per day

Cups of Coffee Sold

~130,000per day

Vehicles Washed

~130,000globally

People

~9 millionper day

Customers Served

~1.7 millionper day

Polar Pop Sold

16,072incl. CAPL sites

Store Count

~43 millionper day (excl. CAPL)

Fuel Gallons Sold

~490,000per day

Hot Dogs Sold

Note: All figures based on LTM results as at Q3 F2019 ended February 3, 2019.

67%

20%

13%

United States Europe Canada

REVENUE AND GROSS PROFIT MIX

7


68%

20%

12%

55%43%

2%

Merchandise and Service Fuel Other

25%

73%

2%

Gross Profit

Revenue

~65% of transactions are convenience only, while 25% are fuel only, and 10% are a mix of both.

Geo

grap

hic

Mix

Prod

uct M

ix

MOMENTUM ACROSS NUMBER OF KEY METRICS

8

Q3

LTM

+4.5%Merch. SSS – US1

Note: All figures as at Q3 F2019 ended February 3, 2019. 1 For company-operated stores only.2 Excluding CAPL.3 Free cash flow calculated as EBITDA less net capital expenditures, less cash dividends paid, cash interest expense, and cash taxes paid.

+4.9%Merch. SSS - Canada1

+2.9%Merch. SSS - Europe

+0.8%SS Volume - US1

-0.6%SS Volume - Canada1

-1.4%SS Volume - Europe

+58%EBITDA Growth Y/Y

2.38Adj. Leverage Ratio

+104%Adj. EPS Growth Y/Y

$3.39Adj. EPS

13.9%Adj. ROCE

$1.9 billionFree Cash Flow3

$14.4 billionMerch. & Service Sales

$3.6 billionEBITDA

15.7 billionFuel Gallons Sold2

OUR VISION AND MISSION

9

Our Vision

Our Mission

To become the world’s preferred destination for fuel and convenience.

To make our customers’ lives a little easierevery day.

CONTENT

10



ShareholderValue

SNAPSHOT OF U.S. FUEL & CONVENIENCE INDUSTRY

11

Source: NACS State of the Industry Report of 2017 Data.

Fuel79%

Non-Fuel21%

Store Type

Single63%

2-103%

11-10010%

101-5007% 500+

17%

Chain Size

89,9

57

90,6

83

89,5

67

90,0

49

91,8

15

93,2

09

93,8

19

95,0

56

96,3

18

97,3

59

97,5

04

97,6

43

55,1

62

55,6

11

55,3

08

54,4

92

54,5

26

54,9

17

55,4

01

56,2

26

56,4

76

56,8

36

57,0

31

57,3

15

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Population of U.S. Convenience StoresSingle Stores Chain Stores

2006145,119totalstores

2017154,958

totalstores

Couche-Tard’s market share at ~6% in the U.S.; high fragmentation leaves ample room for consolidation.

ATTRACTIVE CHANNEL WITHIN BROADER RETAIL…

12

Source: NACS State of the Industry Report of 2017 Data.

Industry inside sales grew for the 15th consecutive year.

$116

.2

$132

.1 $151

.1

$163

.6

$168

.5

$173

.9

$182

.4

$190

.4

$195

.0

$199

.3

$204

.0

$213

.5

$225

.8

$233

.0

$237

.0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Industry Inside Sales(in billions)

CAGR 5.2%

$4.0 $

5.0 $

5.9

$4.8

$3.5

$5.2

$4.8

$6.5 $7

.0

$7.2

$7.1

$10.

4

$10.

6

$10.

2

$10.

4

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Pretax Income(in billions)

CAGR 7.0%

… AND RECESSION RESILIENT

13

Convenience sales grew during the last two recessions.

$99.

8

$104

.1

$112

.0

$109

.3

$116

.2

$132

.1

$151

.1

$163

.6

$168

.5

$173

.9

$182

.4

$190

.4

$195

.0

$199

.3

$204

.0

$213

.5

$225

.8

$233

.0

$237

.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Industry Inside Sales(in billions)

Source: NACS State of the Industry Report of 2017 Data;Wikipedia (https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States).

Dot-Com Bubble Great Recession

+5% +8%

https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States

EXPERT IN SALE OF AGE-RESTRICTED PRODUCTS

14

Source: Nielsen.Note: Walmart excluded from Mass Merchandise figures, except for cigarettes.

89%

6% 4%

0%

95%

4% 1% 0%

60%

35%

4%

1%

36%

36%

19%

9%25%

66%

5% 4%

43% 5

0%

5% 3%

0%10%20%30%40%50%60%70%80%90%

100%

Convenience Food Drug Mass Merchandise

Product Category Share by Channel

Cigarettes OTP Beer Candy Salty Snacks Packaged Beverages

Convenience store channel is the clear leader in sales of age-restricted products

Age-restricted categories are expected to contribute nicely to c-store traffic in the future.

U.S. NATIONAL FUEL MARGIN TRENDING HIGHER

15

Source: OPIS.

18.1

13.1

16.3

18.5 18.419.0

22.4

20.419.9

21.8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

cent

s pe

r ga

llon 2008 - 2012 average: 16.9 cpg

2013 - 2017 average: 20.7 cpg

CAGR 2.1%

Industry breakeven increased ~28% y/y in 2017. More importantly, the bottom 50% operators would

be losing money below a margin of ~17 cpg.

Rising breakeven point for single-store and small-chain operators is contributing to higher overall fuel margin.

COST HEADWINDS FAVOUR LARGER CHAINS

16

Source: NACS (LHS), NACS State of the Industry Compensation Report of 2017 Data (RHS).

$3.2 $3

.8

$5.4 $

6.6 $7

.6 $8.4

$7.4

$9.0

$11.

1

$11.

2

$11.

2

$11.

4

$10.

0

$9.5

$10.

1

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Card Costs to Industry(in billions)

$7.9

5 $8.

37

$8.2

7

$8.4

6

$8.5

6

$8.5

1 $8.7

6 $9.0

2 $9.

44

$9.9

9

$10.

19

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Average Associate Wage(in dollars per hour)

Scale and geographic diversification provides Couche-Tard with flexibility to offset industry headwinds.

CONTENT

17



ShareholderValue

COMPETITIVE ADVANTAGES

18

• Significant scale and buying power through broad footprint and global brand.

• Strong leadership team and decentralized business model.

• Long-standing cost discipline embedded in our company culture and DNA.

• Proven ability to integrate acquisitions.

• Well positioned with Norway laboratory.

• Solid balance sheet and capacity to invest.

GLOBAL FOOTPRINT WITH LOTS OF WHITE SPACE

19

Note: Store count as at Q3 2019 ended February 3, 2019.1 U.S. store count includes 1,284 CAPL sites.2 Europe store count includes 975 automats; presence in Russia (33 stores) is not shown on map.

Europe2

2,709stores

United States1

9,048stores

Int’l

2,146stores

Core networkInternational licensees

Canada

2,169stores

GOING GLOBAL WITH CIRCLE K BRAND

20

~78% of stores1 in the U.S. are operating under the Circle K banner, 81% in Canada, and close to 100% in Europe.

Higher brand awareness and loyalty

Private label and product innovation

Unified corporate culture

Greater purchasing power

Rollout of national promotions

Exclusive product launches

Note: Completion percentages as at February 3, 2019 for the U.S. and Canada, and April 30, 2019 for Europe.1 Coporate stores and franchisees.

HIGHLY EXPERIENCED EXECUTIVE TEAM

21

For more information on ACT’s company officers, please visit https://corpo.couche-tard.com/en/our-company/management-team/

Brian HannaschPresident & Chief ExecutiveOfficer

• 18 yrs with ACT• 30 yrs in Oil & Gas / Retail

Claude TessierChief Financial Officer

• 3 years with ACT• 27 yrs in Retail

Deborah Hall LefevreTechnology

• 2 yrs with ACT• 15 yrs with global QSR

Kevin A. LewisMarketing

• 2 yrs with ACT• 15 yrs in senior/CMO roles

Ina StrandHuman Resources


Hans-Olav HøidahlOperations, Europe

• 7 yrs with ACT• 20 yrs with Statoil F&R

Alex MillerCommercial Optimization


Darrell DavisOperations, North America

• 17 yrs with ACT• 30 yrs in Retail

https://corpo.couche-tard.com/en/our-company/management-team/

LONG-STANDING COST DISCIPLINE

22

Cost containment is part of Couche-Tard’s DNA.

Lean corporate structure

Automation and robotics

Decentralized business units

Procurement efficiency

Continuous benchmarking

Cost efficient systems

PROVEN ABILITY TO INTEGRATE ACQUISITIONS

23

Winners

Pump N Shop

Sterling Stores

Compac Food

Stores

Garvin Oil

Stores

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1,706 45 75 421 46 107 70 47 326 2,506 166 1,660 515 442 2,055

2 3 4 8 1 4 5 2 7 7 4 3 4 3 3Deals

Rev

enue

s

Since 2004, Couche-Tard successfully completed a total of 60 deals, adding ~10,200 store globally.

NORWAY LABORATORY IS A SIGNIFICANT ADVANTAGE

24

Well positioned to claim the EV customer

E-mob platform and internal capabilities established

• Full time dedicated team.

• Technical platform for E-mobility operations acquired, including app and webshop.

260+ fast chargers now installed in Norway, in total 400 chargers in EUR

• 133 new fast chargers installed in Norway (40 branded Circle K).

• 56 new chargers installed in other EUR countries, in total 138 installed.

• 400 additional chargers planned for 2020 in EUR and pilots to start in North America.

Home and workplace charging launched in Norway

• Product tested and ready.

• Full Market launch was done at the beginning of May 2019.

• 30+ offers delivered to apartment market prior to launch.

SOLID BALANCE SHEET AND CAPACITY TO INVEST

25

Announced NCIB for 4% of our Class B sub voting shares float (~17 million shares), to be used opportunistically.

BBB / Baa2S&P / Moody’s

Investment Grade Credit Rating

2.38below 2.50 target

Adj. Leverage Ratio

~$4-6 billionACT estimate

Balance Sheet Capacity

4.18

2.97

2.48

3.15 3.19 2.88

2.67

2.10 2.07

3.60

3.05

2.44 2.17

1.98 2.02

3.13

2004 2005 2006 2007 2008 2009 2010 2011 2012 Proforma

2013 2014 2015⁽¹⁾ 2016⁽¹⁾ 2017⁽¹⁾ 2018⁽¹⁾

Rapid deleveraging after transformational acquisition

Circle K No transformational acquisition Statoil Fuel & Retail,The Pantry

Leverage at SFR acquisition lower than at Circle KStrong credit metrics for several years

1,017 stores acquired2,453 stores acquired 3,847 stores acquired

Topaz, IOL, CST, Cracker Barrel, Holiday, Jet Pep

2,656 stores acquired

$840M

$3.6B

$1.7B $570M $1.3B

$6.5BTarget threshold of 2.50

Note: Pro forma ratios based on inclusion of acquisitions in full year results; transaction values include assumed debt.

IMPRESSIVE EBITDA-TO-FCF CONVERSION

26

Converted 44% of EBITDA to free cash flow since 2011.

Note: Free cash flow calculated as EBITDA less net capital expenditures, less other (cash dividends paid, cash interest expense, and cash taxes paid).

1/3of total capex

New to Industry

1/3of total capex

Commercial Programs

1/3of total capex

Maintenance & Improvements7

34 841

1,37

6 1,64

0

1,87

6 2,3

31

2,39

6 2,98

0

3,63

9

193

289 457

459

563 80

7

899

1,03

7

98915

8

148 3

05 315 42

8 540 60

8 673

706

383 404

614 86

6 884

984 88

9 1,2

69 1,9

4430%

38% 39%

32% 34%

39%41%

39%

2011 2012 2013 2014 2015 2016 2017 2018 LTM

in U

S$ m

illion

s

EBITDA Net Capex Other Free Cash Flow Capex (as % of EBITDA)

Aiming to deploy ~40% of EBITDAtowards capital expenditures

EFFICIENT STRUCTURE BELOW EBITDA LINE

27

Low cost of debt and global corporate structure permits higher conversion of EBITDA to net earnings.


Net earnings

Income taxes

Net financial expenses

D&A

EBITDA

Rent

EBITDAR 112%

53%

12%

9%

9%

29%

100%

MEANINGFUL CONTROL OVER OPERATING ASSETS

28

~82% of land and buildings in our overall network are either owned or leased through long-term agreements.

Note: All figures as at fiscal year ended April 29, 2018, excluding CAPL assets. Percentage referencing total network also excludes international licensee assets.

2,300 2,300

5,723 4,353

4,717 6,087

Land Buildings

Total Network

Owned Leased Third-Party Control

Substantial intrinsic value embedded in our

real estate portfolio

Control over our real estate provides us with the flexibility needed to

operate efficiently

CONTENT

29



ShareholderValue

OUR AMBITION

30

DOUBLE AGAINby making our customers’ lives

a little easier every day!

Double the business again, driven by our value creation equation and a focus on organic growth.

PRINCIPLES FOR PROFITABLE GROWTH

31

ROCE

Adj.Leverage Ratio

Capital Expenditures

Aim to deliver an EBIT-based return on capital employed of more than 15%.

Aim to keep our adjusted net debt-to-EBITDAR ratio below 2.50, allowing for flexibility following significant acquisitions.

Aim to maintain a level of capex spending at ~40% of EBITDA.

MORE BALANCED GROWTH GOING FORWARD

32

Organic30%

M&A70%

Historically

Organic50%

M&A50%

Projected

Greater focus on the offering and customer journey is expected to drive higher share of organic growth.

KEY FOCUS AREAS

33

• Succeed with food• Capture new opportunities• Further develop our retail

capabilities and data access to optimize the local store offering.

• Continue to grow market share in the U.S.

• Expand to new growth markets.

Offering Network

Foundational Elements

• Deliver first-class, retail-level recruiting and engaging training for our store and field employees.

Investments inOur People

• Make it easy for our ~130,000 people by leveraging our agile operating model.• Further increase our competitive advantage as a disciplined operator in the

industry.

• Be recognized by our customersfor a differentiated experience, in the way we deliver and continuously improve as weinnovate the customer journey.

Optimization of Business Systems

Customer Journey

• Making Circle K the conveniencebrand of choice

• Customer journey innovation• Customer loyalty• Operational excellence• Brand differentiation

CORE INITIATIVES

34

Customer Journey

• Food at scale• Merchandise pricing, promotion,

and assortment• Age-restricted products• Fuel pricing• Claim the EV customer in specific

markets

• U.S. expansion• Profitable ramp-up of new stores• Profitable remodels• Convenience-only in high foot

traffic locations• Desciplined entry into Asia Pacific

Offering Network

Foundational Elements

• Sustain investments in learning and development• Attract and hire people along core company values• Improve HR support and costs through digitalization

Investments inOur People

• Processes, technology and data• Cost base• Supply chain

Optimization of Business Systems

CONTENT

35



ShareholderValue

INCREASING SHAREHOLDER VALUE

36

• Long track record of delivering solid results.

• Increasing free cash flow generation.

• Rewarding shareholders through a steadily increasing dividend.

• Strong focus on reinvesting profitably in our operations and improving the ROCE.

DELIVERING STRONG RESULTS…

37

4,19

5

4,61

3 6,94

5

7,62

6

8,13

5 10,5

02

11,7

93 14,

525

15,7

19

2011

2012

2013

2014

2015

2016

2017

2018

LTM

in m

illio

ns o

f gal

lons

Fuel Volume Sold

CAGR 19.4%

673

787

1,66

4

1,88

8

2,12

9

2,44

0

2,58

7 3,3

87 3,9

87

2011

2012

2013

2014

2015

2016

2017

2018

LTM

in U

S$

mill

ions

Fuel Gross Profit

CAGR 26.0%

6,18

4

6,59

9

7,60

2

7,95

3

8,27

6

10,0

72

10,7

24 12,9

76 14,4

27

2011

2012

2013

2014

2015

2016

2017

2018

LTM

in U

S$

mill

ions

Merchandise and Service Revenues

CAGR 11.2%

2,07

3

2,18

2

2,59

6

2,69

9

2,80

6 3,43

1

3,68

2 4,46

9

4,98

8

2011

2012

2013

2014

2015

2016

2017

2018

LTM

in U

S$

mill

ions

Merchandise and Service Gross Profit

CAGR 11.6%

… AND REWARDING SHAREHOLDERS ACCORDINGLY

38

0.06

0.09 0.10 0

.14 0

.19

0.27

0.35 0.

37

2011

2012

2013

2014

2015

2016

2017

2018

in C

$ pe

r sh

are

Dividend per Share

CAGR 28.7%

Increased quarterly dividend by 25% in Q3 2019 to an annualized payment of 50¢ per share.

STRONG ORGANIC GROWTH DRIVING RETURNS

39

Moving towards goal of 15%+ ROCE, driven primarily by organic growth initiatives.

Note: LTM data as at Q3 2019 ended February 3, 2019.

We have repeatedly proven our ability to increase our ROCE

following the integration of large acquisitions

18.1

%

19.0

%

11.0

% 13.3

% 16.

2%

19.2

%

15.8

%

12.0

% 13.9

%

2011

2012

2013

2014

2015

2016

2017

2018

LTM

Return on Capital Employed

avg. 15.6%

RELATIVE STOCK PERFORMANCE

40

157.0%

55.6%

12.2%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

May

-14

Nov

-14

May

-15

Nov

-15

May

-16

Nov

-16

May

-17

Nov

-17

May

-18

Nov

-18

May

-19

5-Year Stock Performance vs. Key IndicesATD.B-T TSEC-T SPX

Source: Nasdaq IR Insight, based on the closing prices at the end of April 24, 2019 trading day.

FINANCIAL HIGHLIGHTS

41

Notes: Fiscal years 2012 and 2107 consist of 53-week periods.1 Free cash flow calculated as EBITDA less net capital expenditures, less cash dividends paid, cash interest expense, and cash taxes paid.

in US$ millions, unless otherwise noted 2011 2012 2013 2014 2015 2016 2017 2018 LTM CAGR

Total revenues 18,543 22,980 35,549 37,962 34,530 34,145 37,905 51,394 59,619 16%Gross profit 2,752 2,975 4,607 4,988 5,268 6,082 6,482 8,112 9,228 17%EBITDA 734 841 1,376 1,640 1,876 2,331 2,396 2,980 3,639 22%Operating income 503 580 839 1,034 1,320 1,668 1,698 2,041 2,546 22%Adj. diluted EPS $0.67 $0.81 $1.11 $1.35 $1.79 $2.08 $2.21 $2.60 $3.39 21%

Merchandise SSS - United States 4.2% 2.7% 1.0% 3.8% 3.9% 4.6% 2.0% 0.8% n/a Merchandise SSS - Europe n/a n/a n/a 1.6% 2.0% 2.8% 3.5% 2.7% n/a Merchandise SSS - Canada 1.8% 2.8% 2.0% 1.9% 3.4% 2.9% 0.1% 0.4% n/a

SS Fuel Volume - United States 0.7% 0.1% 0.6% 1.7% 3.4% 6.6% 2.6% -0.4% n/a SS Fuel Volume - Europe n/a n/a n/a 2.5% 2.4% 2.6% 1.0% 0.0% n/a SS Fuel Volume - Canada 3.9% -0.9% 0.0% 1.3% -0.1% 0.9% -0.3% -1.4% n/a

Fuel Margin - United States (in US$ cents per gallon) 15.54 16.99 18.77 18.11 21.74 20.15 18.56 19.39 n/a 3%Fuel Margin - Europe (in US$ cents per litre) n/a n/a 9.88 10.94 10.33 8.82 8.22 8.72 n/a -2%Fuel Margin - Canada (in C$ cents per litre) 5.38 5.45 5.84 5.98 6.35 6.41 7.66 8.84 n/a 7%

Cash flow from operations 608 764 1,161 1,429 1,715 1,888 1,926 2,163 3,095 20%Free cash flow1 383 404 614 866 884 984 889 1,269 1,944 19%

Dividends per share 0.06 0.09 0.10 0.14 0.19 0.27 0.35 0.37 n/a 29%

Adj. debt-to-EBITDA ratio (x) 0.26 0.43 1.99 1.32 1.18 0.95 1.09 2.46 1.72Adj. debt-to-EBITDAR ratio (x) 2.09 2.11 3.06 2.44 2.17 1.93 2.02 3.13 2.38ROCE (%) 18.1% 19.0% 11.0% 13.3% 16.2% 19.2% 15.8% 12.0% 13.9%

INVESTMENT HIGHLIGHTS

42

Size and Scale

Capital Allocation

Strong Culture

Attractive Channel

Organic Growth

M&A Expertise

• Global rebrand initiative permits better leverage of broad scale.• More flexibility to compete compared to small-size operators.

• Strong cash flow generation supports capex and growth plans.• Dividend increased more than six-fold since 2011 (~29% CAGR).

• Decentralized model drives accountability and entrepreneurship.• Cost discipline and lean operations are a major part of our DNA.

• We sell time and convenience (~65% of products consumed within hour of purchase) and have close proximity to customers.

• Solid pipeline of current initiatives, with many opportunities around customer journey, innovation, and deployment of retail capabilities.

• Long track record of successful integrations and synergy capture.• Significant runway remains globally, with a focus on U.S. and Asia.

INVESTOR RELATIONS CONTACTS

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Karinne BouchardSenior Director, Investor Relations and [email protected] x. 4736

Jean Marc AyasManager, Investor [email protected] x. 4619

Investor presentationForward-looking statementsInvestment HIGHLIGHTSContentCompany HighlightsGLOBAL Leader in FUEL & convenience retailREVENUE AND GROSS PROFIT MIXmomentum across NUMBER OF key metricsOur VISION AND MISSIONContentSNAPSHOT OF U.S. FUEL & Convenience industryAttractive channel withIN BROADER RETAIL…… AND RECESSION RESILIENTExpert in sale of age-restricted productsU.S. NATIONAL FUEL Margin TRENDING HIGHERCOST Headwinds Favour larger chainsContentCompetitive advantagesGLOBAL FOOTPRINT WITH LOTS OF WHITE SPACEGOING GLOBAL WITH CIRCLE K BRANDHighly Experienced Executive teamLong-Standing COST DISCIPLINEPROVEN ABILITY TO INTEGRATE ACQUISITIONSNORWAY LABORATORY IS A SIGNIFICANT ADVANTAGESOLID BALANCE SHEET AND CAPACITY TO INVESTImpressive EBITDA-to-FCF CONVERSIONEFFICIENT STRUCTURE BELOW EBITDA LINEMeaningful control over operating assetsContentOur AmbitionPRINCIPLES FOR PROFITABLE GROWTHMore Balanced Growth Going ForwardKEY FOCUS AREASCore InitiativesContentINCREASING SHAREHOLDER VALUEDelivering strong results…… AND REWARDING SHAREHOLDERS ACCORDINGLYStrong organic growth driving returnsRelative STOCK PERFORMANCEFinancial HighlightsInvestment HIGHLIGHTSInvestor relations contactsSlide Number 44Slide Number 45Company HighlightsOur VISION AND MISSIONCompetitive advantagesHighly Experienced leadership teamHighly Experienced leadership teamPRINCIPLES FOR PROFITABLE GROWTHINCREASING SHAREHOLDER VALUEInvestor relations contactsInvestment HIGHLIGHTSCompany DataFaring well in a competitive landscapeLEADING FOOTPRINT IN cANADASECOND LARGEST CHAIN IN United StatesGrowing European platformemerging international presenceStrong organic growth driving returns

investor presentation · 2019. 5. 10. · this presentation and the accompanying oral presentation...

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