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 Market Cap1 Approx. CA$36B company based on
Revenue US$51.4B Fiscal Year 2018 revenues US$29.5B Q2 2019 YTD2 (+34%)
Gross Profit US$8.1B Fiscal Year 2018 US$4.4B Q2 2019 YTD2 (+16%)
EBITDA US$3.0B Fiscal Year 2018 5-year CAGR +5.1% US$1.8B Q2 2019 YTD2 (+15%)
Number of stores3 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 Ratio4 • 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 by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items; overall ratio 4 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 The Entry into Europe: Acquisition of Topaz, Acquisition of CST Brands, with the opening of a Circle K Corporation Acquisition of Statoil the leading 4th largest chain in North first convenience store from ConocoPhillips Fuel & Retail, a leading convenience and fuel America, and Holiday in Laval, Québec. Company Scandinavian road retailer in Ireland. Stationstores, a Midwest Consolidation of transport fuel retailer powerhouse Canadian Market
5 OUR NETWORK – NORTH AMERICA
QUEBEC WEST Corporate stores: 461 CODO: 2 DODO: - CENTRAL CANADA Affiliated stores: 224 Corporate stores: 464 CODO: 227 QUEBEC EAST AND ATLANTIC DODO: - Affiliated stores: 131 Corporate stores: 355 WESTERN CANADA CODO: - Corporate stores: 305 DODO: - Our North American CODO: - Affiliated stores: 12 DODO: - Affiliated stores: - Network –
NORTHERN TIER Corporate stores: 372 CODO: 9 GREAT LAKES 9,943 stores, employing DODO: 26 Corporate stores: 490 Affiliated stores: 131 CODO: - DODO: - Affiliated stores: 101 about 105,000 people WEST COAST Corporate stores: 239 COASTAL CAROLINAS CODO: 75 Corporate stores: 433 DODO: 242 CODO: 1 Affiliated stores: 309 DODO: 22 Affiliated stores: 19 In North America, Couche-Tard is the
MIDWEST Corporate stores: 439 largest independent convenience ARIZONA CODO: 6 Corporate stores: 643 DODO: 97 CODO: - Affiliated stores: 33 store operator in terms of number of DODO: - Affiliated stores: 2 company-operated stores. SOUTHEAST Corporate stores: 424 CODO: 9 DODO: 67 ROCKY MOUNTAINS Affiliated stores: 42 We are in all provinces in Canada and Corporate stores: 437 CODO: 2 DODO: 1 in 48 out of 50 states in the US. Affiliated stores: 63 SOUTH ATLANTIC Corporate stores: 420 CODO: 1 Leading market share in key growth GULF COAST DODO: 21 Corporate stores: 578 Affiliated stores: - HEARTLAND CODO: 1 markets. TEXAS Corporate stores: 337 DODO: 45 Corporate stores: 742 CODO: 23 Affiliated stores: 45 FLORIDA CODO: - DODO: 35 Corporate stores: 530 DODO: 70 Affiliated stores: 19 CODO: 7 Affiliated stores: 14 DODO: 47 Affiliated stores: 93
As at October 14, 2018. 6 OUR NETWORK – EUROPE
NORWAY Corporate stores: 229 CODO: 217 RUSSIA DODO: 23 Corporate stores: 33 inc. automats: 184 CODO: - DODO: - Our European inc. automats: - SWEDEN Corporate stores: 645 Network – CODO: 103 DODO: 16 ESTONIA inc. automats: 471 Corporate stores: 77 2,718 stores, CODO: - DODO: - inc. automats: 17 DENMARK Corporate stores: 428 employing about CODO: - DODO: 22 LATVIA inc. automats: 210 Corporate stores: 68 25,000 people 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 inc. automats: 12 Scandinavia, Ireland and the Baltic Affiliated stores: 3 inc. automats: - countries, with a significant presence POLAND Corporate stores: 276 in Poland. CODO: - DODO: 72 inc. automats: 85
As at October 14, 2018. 7 OUR NETWORK – WORLDWIDE
Asia
Mongolia Approximately 2 United Arab China Emirates 82 2,042 stores Saudi 35 Arabia 4 under licensing agreements Mexico Hong Kong 725 322 worldwide Egypt Vietnam 296 24 Macau Well positioned to participate in Honduras 30 Guam many high growth markets. 30 13 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
Canada US Canada Canada Canada 2% 2% 15% 13% 13%
By Products Europe Europe 11% 20% LTM Q2 2019 Europe US 20% 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 15% 13% 12% 14% US By Products Europe US 65% LTM Q2 2019 13% 12% Europe Europe 21% US 29% US Europe 72% 58% 76%
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
Convenience stores are everywhere. There are 155, 000 TIME & CONVENIENCE 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 Organic Cost Structure & Value 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 ORGANIC GROWTH Growth
Customer Focus Key Digital Categories
Network Developme Innovation nt Organic Growth
Branding Execution
Continuous Private Improveme Label nt
16 ORGANIC – SUSTAINABLE TOP-LINE GROWTH Growth
Merchandise & Service Sales Road Transportation Fuel Volume (millions of US dollars) (millions of gallons)
+11% CAG 12,899 +16% CAG 14,525 10,072 10,724 11,793 10,502 7,953 8,276 7,596 8,135 6,945 7,626
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Same-store Merchandise Revenue Growth Road Transportation Fuel Same- Store Volume Growth 5% 5%
2013 2014 2015 2016 2017 2018 -5% 2013 2014 2015 2016 2017 2018 -5% US Europe Canada US Europe Canada
CAG: Five-year compounded annual growth - fiscal 2018 over fiscal 2013. Note: All figures exclude contribution from CAPL. 17 PROVEN TRACK RECORD OF SUCCESSFUL ACQUISITIONS Growth
Garvin oil
Compac Food Stores
Revenue ($) Revenue Winners Sterling Stores Pump N Shop
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Leverage ratio(1) 2.2 0.8 0.4 1.5 1.3 1.0 0.8 0.3 0.4 2.0 (2) 1.3 1.2 (3) 1.0 (3) 1.1 (3) 2.5 (3)
Stores 1,706 45 75 421 46 107 Acquired 70 47 326 2,506 166 1,660 515 442 2,055
(1) This ratio represents the following calculation: long term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. Refer to the Corporation’s MD&As for more details. (2) Including full-year results for SFR. 18 (3) Pro forma The Pantry for 2015, Topaz for 2016, ESSO for 2017 and CST and Holiday for 2018. ACQUISITIONS ROADMAP Growth
Strike the Identify the Secure Swift and Realization of Reverse right deal at Deleverage right the right acquired efficient available synergies and opportunities price talent integration synergies learnings
19 DISCIPLINED BUYER Discipline
Transaction mutiples: North America Transaction mutiples: Europe
Apr-2014 May-2014 Dec-2014 July-2015 Aug-2016 Sep-2016 Apr-2017 Jan-2018 Sep-2018 Dec-2018 Date Apr-2012 Apr-2014 Jun-2015 Oct-2015 Oct-2015 Jan-2016 Feb-2016 Feb-2016
Energy Marathon Couche- Sunoco Couche- COPEC 7-Eleven EG Group EG Group Couche- Acquirer Couche- TDR CD&R TDR USS Lone Star Couche- MFG Transfer Tard Tard Tard Tard Capital Capital Tard Partners
Susser Hess Pantry Susser CST Mapco (1) Sunoco Kroger Minit Mart Holiday Target Statoil Delek Patron- The Issa Moto MRH Topaz MRH Holdings Holdings Brands MFG Family
$1,800M $2,600M $1,730M $1,930M $4,280M $445M $3,300M $2,150M $305M $1,620M Size $3,630M $996M $764M $2,010M $1,775M $950M $505M $1,670M
Source: Street Research, Publics filings, Note: represents LTM multiples (1) Retail enterprise value excludes 90mm paid for the acquisition of other non-operating assets (total transaction amounted to $535M). $45M 2016E EBITDA based on Delek’s management projections for Mapco as a division. 20 SIGNIFICANT SYNERGIES Discipline
To Date: $200M CST Brands Target: $215M
Holiday Target: Stationstores $50M-$60M
21 COST CONTROL – PART OF OUR DNA Discipline
Disciplined Culture Year over year expense growth Optimization of Shared Continuous Services Benchmarking Strategy 2.1% 2.0% 1.5% 0.8% 0.2%
Sharing of AI, Robotics Cost Control Best Practices 2014 2015 2016 2017 (1) 2018
5-YEAR AVERAGE: +1.3% Scalable Organization, Cost Efficient Systems & Systems Processes Economies of Scale
(1) Fiscal 2017 includes 53 weeks. 22 RETURN ON CAPITAL EMPLOYED (ROCE) Discipline
(in millions of US dollars)
19.0% 19.2% 16.2% 15.8% 13.3% 12.1% 11.0% 12.0%
(1) 2012 2013 2014 2015 2016 2017 2018 Q2-2019
(1) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. 23 STRONG AND SCALABLE FREE CASH FLOW CONVERSION Value Creation
1,226
890 1,065
215 979 102 2,935 85 276 865 360 2,412 2,396 162 614 351 1,971 63 145 104 1,640 279 1,376 77 79 172 172 87 56 65 1,056 807 899 457 459 563
2013 2014 2015 2016 2017 2018 EBITDA Net capex Dividends Income tax paid Interest Paid FCF
Note: All figures exclude contribution from CAPL. EBITDA figure includes distribution from CAPL and business disposals.
24 RESULT OF THE VALUE CREATION EQUATION : ADJUSTED DILUTED NET Value EARNINGS PER SHARE AND DIVIDEND GROWTH Creation ADJUSTED DILUTED EARNINGS PER SHARE ++ 19% 19% CAGCAG (in US dollars) 2.60 2.08 2.21 1.79 1.11 1.35
2013 2014 2015 2016 2017 2018
DIVIDENDS PAID + 24% CAG (in millions of US dollars) 145 162 104 87 56 65
2013 2014 2015 2016 2017 2018
25 ALIMENTATION COUCHE-TARD INC.
Q2 HIGHLIGHTS
26 Q2 2019 HIGHLIGHTS (VS Q2 2018)
(in millions of US dollars, unless otherwise stated)
+11.1% +6% +1.6%
3,460.7 2,165.6 855.0
Merchandise and Gross Profit Adjusted EBITDA(1) Service Revenues +5% +11.1%
0.84¢ 0.10¢
Adjusted Diluted EPS(1) Dividend per share
(1) We believe these measures are useful to investors and analysts; however, they do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other public corporations. 27 Q2 2019 HIGHLIGHTS
SAME-STORE MERCHANDISE & SERVICE REVENUES
4.4% 4.6% 5.1%
US Europe Canada SAME-STORE FUEL VOLUME
1.2% 0.1% -2.2%
US Europe Canada
Note: All figures exclude contribution from CAPL.
28 RESULT OF THE VALUE CREATION EQUATION : STOCK VALUE GROWTH Value Creation
5-YEAR STOCK PERFORMANCE
285.0%
185.0%
85.0%
-15.0% 2018-11-19 2013-11-19
Variance ACT stock price (%) Variance TSX index (%)
Source: Bloomberg. As of November 19, 2018.
29 STELLAR STOCK PERFORMANCE Value Creation
800% 800%
700% 700%
600% 600%
500% 500%
400% 400%
300% 300%
200% 200%
100% 100%
0% 0% 2013-11-19 2014-11-19 2015-11-19 2016-11-19 2017-11-19 2018-11-19 2013-11-19 2014-11-19 2015-11-19 2016-11-19 2017-11-19 2018-11-19
Couche-Tard C-Stores Grocery Couche-Tard Casey's
Home Improv. Drugstores Mass Merch. Delek Marathon
Dollar Stores Murphy CST Brands(1)
Source: Yahoo Finance. As of November 19, 2018. (1) On June 28, 2017, ACT acquired CST Brands. 30 P/E VALUATION RELATIVE TO PEERS
NTM P/E vs. Peers 32x Couche-Tard Peer Average 28x 26.5x 24x 20x 16x 15.9x 12x Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18
NTM EV/EBITDA vs. Peers
16x Couche-Tard Peer Average 14x 12x 10x 10.4x 8.8x 8x 6x Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18
Source: IR Insight by Nasdaq. 31 MARKET EXPECTS COUCHE-TARD TO DRIVE STRONG EBITDA CONVERSION
NTM EBITDAR to Net Income Bridge
EBITDAR 112% 103% 124%
Operating Lease
EBITDA 100% 100% 100%
D&A
EBIT
Interest
Taxes
Net Income 52% ~34% ~45%
Notes: Parkland valuation pro-forma acquisition of SOL; Empire valuation pro-forma acquisition of Farm Boy; and Loblaw valuation pro-forma spin-out of Choice Properties REIT. Source: street research; consensus estimates; company filings. 32 COUCHE-TARD TRADING MULTIPLE BENCHMARK
NTM EV/EBITDA NTM P/E
C-Stores Grocers C-Stores Grocers
10.6x 10.6x 10.4x 27.2x 27.0x 9.8x 9.0x
7.3x 18.7x 6.6x 16.9x 16.3x 15.7x 13.2x
ATD.B CASY PKI MUSA MRU EMP.A L ATD.B CASY PKI MUSA MRU EMP.A L
Notes: Parkland valuation pro-forma acquisition of SOL and Empire valuation pro-forma acquisition of Farm Boy Source: Nasdaq; consensus estimates. 33 ALIMENTATION COUCHE-TARD INC.
AMBITION & STRATEGY
34 KEY BASELINE TOPICS AND TRENDS ACROSS BUSINESS
CURRENT BUSINESS KEY TRENDS
ORGANIC GROWTH - GLOBAL MOBILITY E-COMMERCE TRAFFIC ASSESSMENT TRENDS • Multiple factors causing pressure • EV growth pending price parity • Growing but still small for e- on same-store sales (~2025) grocery • Pressure on sales per site • Impact will vary greatly across • Limited direct exposure categories decline, channel blurring regions • Large retailers moving into c-stores • Operational performance critical
OUR DIFFERENTIATORS FOODSERVICE ASIA
• Dedicated people • Growing across channels, • High-growth market • Size and scale especially in breakfast and prep-on- • Critical to find partner with strong site in place • Brand strength team & good supply chain • Enhanced margins • Disciplined management culture • Higher costs for prep-on-site
35 OUR VISION
TO BECOME THE WORLD’S PREFERRED DESTINATION FOR CONVENIENCE AND FUEL
36 OUR MISSION AND AMBITION
DOUBLE AGAIN MAKE OUR CUSTOMERS' LIVES A LITTLE EASIER EVERY DAY AND DOUBLE THE BUSINESS… AGAIN !
• Deliver on our mission of making our customers' lives a little easier every day and be recognized for it in the industry.
• Remain a growth stock and double the business again, driven by our value creation equation and a focus on organic growth.
37 KEY FOCUS AREAS
CUSTOMER JOURNEY OFFERING NETWORK
Be recognized by our customers Succeed with food, capture for a differentiated experience, new opportunities and further Continue to grow market share in the way we deliver and develop our retail capabilities in the US and expand to continuously improve as we and data access to optimize new growth markets. innovate the customer journey. local store offering.
INVESTMENTS IN OUR PEOPLE Deliver first class retail level recruiting and engaging training for our store and field employees.
OPTIMIZATION OF BUSINESS SYSTEM
ELEMENTS Make it easy for our ~130,000 people with an agile operating model and further increase
FOUNDATIONAL FOUNDATIONAL our competitive advantage as a disciplined operator in the industry.
38 CORE INITIATIVES TO SUPPORT OUR AMBITION
CUSTOMER JOURNEY OFFERING NETWORK
• Food at scale • Making Circle K the convenience • US expansion brand of choice • Merchandise pricing, promotion and • Profitable ramp-up of new stores assortment • Customer journey innovation • Profitable remodels • Age restricted products • Customer loyalty • Convenience-only in high foot traffic • Fuel pricing • Operational excellence location • Claim the EV customer in specific • Brand differentiation • Disciplined entry into Asia Pacific markets
• Sustain investments in learning & development INVESTMENTS IN • Attract and hire people along core company values OUR PEOPLE • Improve HR support and costs through digitalization
• Processes, technology and data
ELEMENTS OPTIMIZATION OF • Cost base
FOUNDATIONAL FOUNDATIONAL BUSINESS SYSTEM • Supply chain
39 OUR KEY TOOLS
Global Customer Circle K Decentralized Model Disciplined Culture Customer Data Segmentation
Scaled Relationship Artificial Intelligence – Famous For Private Label Benchmarking with Suppliers Super Cluster
National and Global Norway Global Lean Operations/ Reverse Synergies Payments Promotions Mobility Lab Automation
40 WE WILL REMAIN LOYAL TO OUR FINANCIAL DISCIPLINE AND FOLLOW DEFINED PRINCIPLES FOR PROFITABLE GROWTH
Aim to deliver >15% EBIT-based return on capital ROCE employed Financial
Aim to keep Adjusted Net Debt-to-EBITDAR below 2.5x LEVERAGE Principles Allow to exceed in short periods after significant RATIO to acquisitions
Live By NET CAPEX Aim to maintain Net CapEx spend at ~40% of EBITDA SPEND
41 OUR DELIVERY MODEL
SUPER GLOBAL SUPER LOCAL
42 KEY COMPETITIVE ADVANTAGES
Organic Reverse Synergies Low Tax Rate Growth Synergies
Disciplined Sound & Access to Deleveraging Disciplined Capital Strategy M&A Strategy
43 A DISCIPLINED CONVENIENCE STORE OPERATOR AND INTEGRATOR
• World class retailer and leading C-store operator with geographically diverse footprint Broad Geographic Footprint with Leading • Strong banners, with our new global convenience brand “Circle KTM” and our fuel banner “Ingo” at Market Positions 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 Growth and • Well positioned to lead further consolidation in fragmented industry 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 24.0% Return on equity1 •Significant FCF generation (2013-2018) CAGR of 14.8% •Proven ability to extract significant synergies from acquisitions Attractive Synergy Potential •Transferring best practices across entire platform
•Management team with strong track record. Disciplined Management Culture •Decentralized operating model
•Company successfully went trough 3 transformations over its existence Proven Capacity to Transform and Innovate •Allocation of capital and human resources towards innovations and future business
(1) As of October 14, 2018. 44