Fuel Forecourt Retail Market

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Fuel Forecourt Retail Market Grow non-fuel Are you set to be the mobility offerings — both products and Capitalise on the value-added mobility mega services trends (EVs, AVs and MaaS)1 retailer of tomorrow? Continue to focus on fossil Innovative Our report on Fuel Forecourt Retail Market focusses In light of this, w e have imagined how forecourts w ill fuel in short run, concepts and on the future of forecourt retailing. In the follow ing look like in the future. We believe that the in-city but start to pivot strategic Continuously pages w e delve into how the trends today are petrol stations w hich have a location advantage, w ill tow ards partnerships contemporary evolve shaping forecourt retailing now and tomorrow . We become suited for convenience retailing; urban fuel business start by looking at the current state of the Global forecourts w ould become prominent transport Relentless focus on models Forecourt Retail Market, both in terms of geographic exchanges; and highw ay sites w ill cater to long customer size and the top players dominating this space. distance travellers. How ever the level and speed of Explore Enhance experience Innovation new such transformation w ill vary by economy, as operational Next, w e explore the trends that are re-shaping the for income evolutionary trends in fuel retailing observed in industry; these are centred around the increase in efficiency tomorrow streams developed markets are yet to fully shape-up in importance of the Retail proposition, Adjacent developing ones. Services and Mobility. As you go along, you w ill find examples of how leading organisations are investing Further, as the pace of disruption accelerates, fuel their time and resources, in technology and and forecourt retailers need to reimagine innovative concepts to become more future-ready. themselves. We continue to highlight to industry players to actively respond to the many threats and The changing shopper missions of visiting forecourts opportunities; for this reason w e have outlined some have resulted in major changes to the forecourt action items that can help adapt to the new reality. structure. Fuels sales are declining, and w ill continue to fall in the future, w hile non-fuel retail offerings w ill The preferred mobility retailer of tomorrow w ill be gain prominence. For this reason, it is vital for the one w ho makes ‘change’ a part of its strategy — retailers and suppliers to understand that forecourts installing new and improved concepts w ill be the real are now not seen only as petrol stations but rather as game changers. convenience stores, selling fuel. Be the Additionally, the future of forecourts is very much linked to the future of transport. The type of vehicles that w ill run on the road, play of shared mobility and preferred significance of alternative fuels (electrification or hydrogen), all w ill have an impact on the number and purpose of future forecourt sites. mobility retailer

Note 1. EV: Electric Vehicle; AV: Autonomous Vehicle; MaaS: Mobility as a Service © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2 01. Market overview — Market scenario Report at and competitive landscape a glance — Implications of COVID-19

04. Current strategies 02. Trends in forecourt retail How are — Retail 03. Future forecourt — Adjacent services forecourt retailers How are these How should — Mobility responding forecourt trends shaping today? forecourt retailers respond retailing? in the future? 01. Market overview Global forecourt retail market — mid-COVID analysis (1/2) Market Scenario Established markets will continue to hold their respective positions, while developing economies will grow at a faster rate Global forecourt retail market stood at US$196.6 billion in 2019 and is expected to grow at a CAGR of 3.6 percent Current forecourt growth versus future forecourt growth, by country Note: Refer to the Appendix I for during 2019–23, to reach US$226.4 billon by 2023 Top 5 markets Remaining 15 markets a detailed country-w ise view

Largest and high grow th markets: The US holds the largest market share w hile Argentina and China 6.9% reported largest forecourt grow th 30% Major markets will continue to grow and occupy their respective positions in the global forecourt landscape. — Forecourts in the US are expected to grow at a CAGR of 2.5 percent during 2019–23

— Germany, UK and Sw itzerland are likely to grow at a faster rate in 2019–23 than they did in 2014–19 Argentina - Germany’s forecourt market is being reshaped by global trends — Aral1 (BP’s brand) is rapidly Canada 15% Australia Iran expanding Rewe To Go stores and further, driven by COVID, companies are developing means for Russia Egy pt China safe and contactless delivery. Despite the crisis, players such as Rew e2 are exploring the M&A route to take advantage of emerging opportunities for new partnerships Germany Brazil Thailand - In the UK, 88 percent of sites have a forecourt shop of some form; sites w ith the BP fuel brand had UK the highest number of forecourt shops, follow ed by Esso. Additionally, the UK’s Forecourt shop Poland 5.7% sector continues to generate sales of around £4.5 billion per year. The trend of in-store pick-up and Mexico home delivery is taking centre stage amid COVID fears, w ith retailers increasingly venturing into this 0% France USA Switzerland

space via third-party partnerships 23) Netherlands – - In Sw itzerland, focus on ‘foodvenience’ is driving grow th, placing specific emphasis on ultra- South Af rica New Zealand freshness and healthy products. Moreover, urbanisation continues to develop in the region spurring Spain demand for greater convenience, speed and choice

Developing countries will drive growth in the global forecourt retail market betw een 2019–23 -15%

— Argentina, Iran and Brazil w ill grow at a CAGR of 17 percent,13 percent and 8 percent, respectively CAGR (%, 2019 -15% 0% 15% 30% — Grow ing tendency tow ards convenience stores in China w ill remain a key grow th driver; by 2025 an increase of nearly 30,000 fuel sites is expected in the country. BP is planning to grow its footprint in CAGR (%, 2014–19) China and Shell (w ith funding from Alibaba Group) is planning to automate the re-fuelling process in Note(s): 1. Top 20 regions per 2023F market size; bubble size is 2023 market size (US$ billion); 2. Includes revenues from China conv enience retail items only; 3. Major Markets (ordered by 2023 market size): (1) USA; (2) Germany; (3) China; (4) UK; (5) Note 1. About ~94 percent of Aral’s sites feature a shop 2. Link Australia || Source: Data from Euromonitor (database updates historic and forecast data annually); ***Pre-COVID analysis Source: Market size statistics sourced from Euromonitor; ***Pre-COVID analysis © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 5 Global forecourt retail market — mid--COVID analysis (1/2) Competitive Landscape

Globally, Couche-Tard is the largest forecourt retailer 1 by revenue, whereas, Sinopec has reported the fastest Global forecourt retail sales by players (in US$ billion) Company (CAGR 2014-19) growth Couche-Tard (+15.9%) Seven & I Holdings (+9.2%) Sinopec (+27.3%) Royal Dutch Shell (+1.9%) +3.6% Market Leader: Canadian firm Couche-Tard held the market leader position and reported a greater than 2 market average CAGR of 15.9 percent during 2014–19 achieved through an extensive store netw ork, British Petroleum (+1.9%) Others (+2.2%) 226 proactive product marketing strategies and focus on enhancing customer experience

Fastest growing player: China Petroleum and Chemicals Corp (Sinopec) w hich derives its revenue only from China, reported the fastest grow th (CAGR of +27.3 percent during 2014–19). It is focussing on the new business model of ‘Internet + service stations + convenience stores + comprehensive services’ to advance the development of self-ow ned brands and grow th of non-fuel business. Additionally, it is exploring novel 197 w ays to make sales amid the pandemic; launching ‘zero-touch’ vegetable sales at its 6,000 gas stations in 190 147 Chinese cities — fresh vegetables ordered via an app delivered ‘touch-free’ to customers’ car trunk +3.8% 158 182 155 158 Other players among the top five: 175 155 — Seven & I Holdings held second position in terms of revenue. Focus on enhancing in-store customer 170 experience, creating differentiation via private labels and operation of an extensive store netw ork in the 151 US1 w ere key grow th drivers. In response to COVID, it is expanding its delivery footprint via third-party 163 147 providers (e.g. Postmate, DoorDash, Favour delivery in the US) and is introducing ready-to-bake options 144 5 — BP, Shell and Sinopec accounted for ~8.9 percent2 of the global forecourt convenience sales, in 2019 141 4 141 145 6 - BP is continually expanding convenience partnerships sites (1,100 in 2017; 1,400 in 2018; 1,600 in 4 5 4 5 2019 — targets 2,000 by 2021) w ith REWE in Germany, M&S in the UK and MyAuchan in 4 7 8 4 5 Luxembourg. Driven by COVID, BP expanded its partnership w ith Deliveroo to offer home delivery 5 6 5 3 4 9 9 service to its customers; across the UK, BP and M&S have 125 outlets available on Deliveroo 2 7 6 7 - Shell plans to expand its ‘new fuel’ (EV/Hydrogen3) and forecourt retailing business into new er 6 9 10 11 geographies. Further, it w ill invest US$500 million (in the next 3 years) into convenience retail and 5 7 8 on upgrading the stores, in a bid to increase the contribution of non-fuel sales to 50 percent by 2025. 2014 2015 2016 2017 2018 2019 2023E It is also tapping into the accelerated home delivery trend via third-party partnerships Note(s): 1. Includes revenues from convenience retail items only; 2. ‘Others’ category includes over 40 competitors Note 1. More than 70 percent of revenues comes from the US 2. US$17.5 billion 3. EV charging offered under ‘Shell recharge’ brand in 13 Source: Data sourced from Euromonitor (at current prices and fixed exchange rate), Euromonitor updates countries and Hydrogen Refuelling Stations set up at select forecourts in six countries; Source: Statistics from Euromonitor (Pre-COVID) historic/forecast data annually, per latest data, in 2018-19 Couche-Tard is the leader; ***Pre-COVID analysis

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6 COVID-19: Implications Change in long-term for the fuel and consumer buying behaviour Product mix re-evaluation Falling oil prices forecourt retailers and network rationalisation and demand Liquidity crunch

Demand Increasing fluctuations operating costs

Supply chain Workforce disruption challenges

Consumer and workforce health and safety

On the fuel front, the industry is being hit by a double whammy of falling prices and demand, driven by extreme lockdown measures and voluntary social distancing

As of April 2020, the oil price plunged to its lowest level amidst the rising spread of pandemic and supply-demand mismatch (WTI Futures; Jan’20-Dec’20F US$/bbl)

US-Iran conflict Beginning of End of Near term outlook: oil price war price war Expected to improve depending on longevity of impact of Covid-19 61.2 58.5 52.1 49.6 Oil price 46.8 33.1 33.6 34.0 34.4 34.7 collapse 28.8 32.0 20.4 20.3 22.4 16.9

(37.6) 2-Jan 16-Jan 30-Jan 13-Feb 27-Feb 12-Mar 26-Mar 9-Apr 23-Apr Jun-20 Aug-20 Oct-20 Dec-20

Note: WTI Futures; Jan’20-Dec’20F US$/bbl Source: Bloomberg; forecasts taken from Energy Information Administration

— Fall in demand of oil from end markets (such as aviation, transportation, — Oversupply of crude oil globally, intensified by Russia-OPEC oil price Demand electricity generation and industrial sectors) Supply conflict (w herein Russia and Saudi Arabia decided to increase oil shock — Restricted movement of goods/services and people relating to the shock production, flooding the market w ith excess oil) closure of businessess and factories — Over 86 percent of stock capacity full in major US crude oil storage , as — Expected reduction of 9.6 million barrels per day (bpd) of oil demand in of May 2020, w hich is leading to supply glut 2020 due to pandemic

Note: WTI Futures (Crude Oil) and Brent Crude both have been showing similar kind of trend. For the purpose of this study, WTI Futures has been considered

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 8 How is COVID impacting the fuel and forecourt market? …driven by reduction in road traffic and fuel consumption…

Road traffic has plummeted across the globe as social isolation practices curtailed commuter and highway traffic — resulting in falling fuel consumption. Global oil demand slumped by about 30 percent1, leading to growing inventories across regions UK Road Traffic Netherlands Fuel Lower than normal Traffic decline Road Traffic 50- demand in the week 73% on March 29 vs 70% after lockdown Drop in pre-outbreak Drop in 30- 40 - traffic Canada restrictions imposed level 65% inner city 60% traffic between Road Traffic cities China On the day of ‘stay-at-home’ *Reported as of April 2020 Fuel Road Traffic 55 announcement; congestion France percent index peaked at just 17%, vs 2 Decline in point Fuel Road traffic Drop in gasoline 52.4 72% at the same time last year 30.6% % road passenger Drop in gasoline demand traffic *decline reported for Toronto 22% Decline as consumption of 6 April 24.8 96.9% 37.6% Fall in Diesel Decline in 2020 vs 8 % 26% Drop in diesel demand road freight consumption April 2019 *January – March 2020 *January – Feb 2020 US *overall y-o-y fall March 2020 *for one city, Bordeaux (y-o-y change) (y-o-y change)

Road Traffic Germany Fuel

Drop in 18% Fuel 44% 26% 30% Spain Petroleum and Gas Road Traffic motor fuel Consumption (ktoe) Australia demand Fuel Road traffic3 Drop in 57% Fuel Road Traffic Drop in traffic jams Drop in average daily 84% Decline 170,616 170,035 Automotive Petroleum

gasoline sales traffic across

18 Mar 18 Mar 20 14 Mar 14 as of 6 products consumption 48% Transurban network (million litres) 96% April * Pre and post lockdown between 1March and 2019 2 *4 weeks till April end *each day vs same day Drop in diesel 2020 F 3 29 March 62% 2020 vs period 2020 vs 4 weeks April prior month (Feb 2020) 1,549 1,430 1,434 end 2019 sales 8 April About 28 percent less 2019 28% vehicles used the *Decline in the week ending 12 Monash Freeway in April vs week ending 14 March *for one city, Madrid March 2020, after

restrictions were

Jan-20 Feb-20 Note: 1) Economic Times 2) As per EIU estimates 3) Before lockdown: 9,400 traffic jams, post lockdown 4000 traffic jams Dec-19 implemented

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9 How is COVID impacting the fuel and forecourt market? …is impacting the fuel and forecourt retailers

Challenges faced by forecourt retailers Implications for forecourt retailers

Demand fluctuations Supply chain disruptions Store image more crucial than ever before — Unprecedented increase in demand for food — On the fuel front — retailers’ revenues and Operators that strategically invest in and differentiate retail resulting in initial out-of-stock situations profit margin under pressure, ow ing to the their store image to address consumer expectations — Significant drop in demand in for fuel as w ell as demand and supply shock in the oil sector around health and safety — w ill likely be ahead of the 01 02 recovery curve, effectively taking market share traditional products of some convenience — On the c-store front — stock outs and narrow er categories like cigarettes and food to-go resulting ranges are disrupting brand loyalty and spurring in large unused inventory demand for cost effective private label options1 COVID to spur network rationalisation Current situation is akin to a ‘stress test’ — fuel Direct store operating expenses (DSOE) Liquidity implications stations suffering the most today are those w hich are vulnerable to closure going forw ard. The pandemic is — Added DSOE ow ing to frequent deep cleaning — C-stores have been fortunate to enter the likely to aggravate netw ork rationalisation and sanitation, and new safety measures, w ill economic dow nturn from a position of strength; make it difficult to sustain the underlying pre-COVID, the industry had good profitability, Product-mix will have to be altered operating margin level healthy leverage and sufficient liquidity 03 2 04 Sale of ‘open food products’ likely to be impacted; — Reduction in other expenses could offset this — How ever, they now have to proactively manage ‘meal kits’ are w itnessing a comeback (US customers cost partially — how ever, in 2020 the DSOEs are balance sheets and liquidity — as lenders and spent US$100 million on meal kits in 4w till 11 April); expected to remain considerably higher investors are being more selective than they w ere scaling back of food service operations — self-serve prior to the pandemic foods and coffee could move behind the counter

Workforce challenges Change in long-term buying patterns Partnership with third-party players — Increased labour requirements to meet higher — Pandemic is likely to alter consumer behaviour While M&A deals are being stalled amidst the demand for ecommerce, click-and-collect, permanently; more consumers are — 1) shopping uncertainty, partnership w ith third party players to delivery and DC3 operations for groceries online, 2) demanding curbside pick- support technology and logistics (delivery) is an area that is likely to remain relatively active — Health and safety of employees and customers up and contact-free delivery and 3) making 05 06 sustainable/healthy consumption decisions w ill now be integral to provide a safe shopping experience. This w ill require operating robust — Retailers need to be agile enough to adapt to the Fuel stations without a strong non-fuel protocols for health and pre-mobilisation checks, shifting purchasing patterns and accelerate offering are likely to be impacted more travel/w orkplace access and social distancing initiatives for last mile

Note: 1. Brand loyalty declines amid COVID-19 [URL] 2. Less energy usage at stores closing during nighttime hours or lower levels of waste at both the store (with many shelves cleared) and pump; 3. Data Centre; all based on KPMG analysis

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 10 02. Trends in forecourt retail Note: Home deliv ery trend made more prominent by rising logistics/delivery Summary: Evolution of forecourts partnerships in light of COVID-19

Forecourts’ product and service offerings are continuously evolving, driven by customer demand for convenience — contribution of fuel retailing will continue to decline while non-fuel retail offerings will gain prominence

Forecourt in the past Forecourt today Future forecourt (over 10–15 years)

Consumers' forecourt visits Convenience and ‘to-go’ In the future, consumer centred around 'distress' fuel culture has shifted the demand for convenience US$ purchase — this dictated the consumer demand tow ards coupled with wider mobility US$ design of forecourts and the retail shopping and adjacent and energy trends will type of services offered US$ services enhance the role of services 274 197 1 163 billion billion Convenience billion

Market Size (2014): Market Size (2019): Market Size (2029): (Retail + adjacent services) (Retail adjacent +

Adjacent services — Convergence Fuel — 90% Fuel — 50% Retail & F&B — 35% Retail &F&B — 40% — Fast-food outlets 30% — Fast-food outlets — c-stores (groceries and other — Home delivery goods & — c-stores (groceries and products) services** other products) — Liquid boost (cafes, soft drink — Car wash and repair — Liquid boost (cafes, soft kiosks) — Pick up point for packages drink kiosks) — High-end restaurants — Amazon lockers — Luxury cafes — Co-working spaces — Checkout-free c-stores — Child play areas — Laundry services — Pharmacy Mobility — 10% — Charging points for electric and autonomous vehicles (EV/AV) Adjacent Services — 10% Adjacent Services — 15% Fuel — 20% — Mobility hubs (EV/AV service — Home delivery goods — Car services (spare parts and repairs) stations) — Car services (spare parts & repairs) & services — Pick-up point for packages — EV/AV accessories

Note (1) KPMG f orecast 2) A trend made prominent by rising partnerships for logistics and delivery, in light of COVID-19 Source: KPMG Analy sis; pre-COVID market size statistics stated Technology to have an over arching presence all across © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 12 I. Retail & F&B

Retail & F&B

Adjacent Services

Mobility Convenience culture is fuelling forecourt shopping…

Increasing prevalence of the convenience culture is driving growth of the forecourt retail market, which is responding by improving its food and product offerings

Customer perception of PFS1 is changing… Non-fuel purchases at forecourt stores (2019, UK) …driving forecourt retailers to develop c-store offerings

With people getting busier, forecourt stores have become one- In a bid to capitalise on the convenience trend, forecourt stop convenience shops ow ing to their location advantage and retailers are investing in convenience retail offerings. Only 19% forecourt shoppers cite fuel as their long opening hours. Additionally, amid the coronavirus fears, they Moreover, the margins on c-retailing are significantly higher are emerging as an alternative to high traffic supermarkets. main reason for visiting a forecourt — HIM report 2020 than fuel

A shopper’s mission of visiting a forecourt has shifted from need- The average The average — In the US, non-fuel revenues accounted for 32 percent of based ‘distress purchase’ of fuel to convenience retailing outlet revenues and ~63 percent of gross margins5 basket size is shopper spend at — Non-fuel products such as grocery, tobacco, meals-to-go are forecourts is — Independent UK forecourt retailers are significantly attracting more footfalls than fuel offerings. Per HIM report investing in their stores (~ £14,463 per store 2 2020 — only 19 percent of forecourt shoppers cite fuel as on an average6) in areas of food-to-go, their main reason for visiting a forecourt 2.34 refrigeration, shelving and store — ACS3 reported that 88 percent of the 8,382 £6.06 signage items fuel forecourt sites in the UK, have ‘shops’ *excluding fuel — BP reported4 that, half of the customers at its forecourts in the UK did not buy petrol Source: ACS, The Forecourt Report 2019

Ascona group + Nisa Retail BP + Albert Heijn EG Group Rontec + Morrison's “The UK forecourt market has evolved considerably in the past decade – from a time — Forecourt retailer Ascona — Expanded partnership w ith — Has tie-ups w ith Greggs, — Rontec developed its ow n when the fuel mission accounted for over a third tied up w ith Nisa Retail to Albert Heijn (ow ned by Subw ay, KFC and Starbucks chain of stores ‘Shop’N of visits, to now accounting for less than a fifth. supply 37 UK sites w ith grocery giant Ahold — Ramped up its food-to-go Drive’ — stocking ~5,000 Retailers and operators are feeling the pressure - grocery products as w ell as Delhaize) after a successful offer — acquired 146 KFC products (including bacon, or seeing an opportunity - to find alternative and the Co-op’s ow n-label range pilot phase restaurants and one Pizza eggs, bread, frozen meals) innovative ways to drive footfall to their stores and — Stores w ill vary in size (800– — This w ill enable customers Hut store in the UK & Ireland — Extended its partnership thereby capitalise on the growth opportunities in the market.” 3,000 sq ft) and w ill adopt to access Albert Heijn’s ‘to — Has opened up a drive-thru w ith Morrison's; plans to add — Sarah Coleman, project manager at MCA Nisa Evolution fascia and go’ food and drinks across KFC and Starbucks, at some 50 Morrisons Daily stores Insight & HIM (February 2020) take on latest store formats 100 sites in the Netherlands of its sites and trial new formats

Note: 1. Petrol Filling Stations 2. HIM & MCA Insight UK Forecourt Market Report 2020 3. Association of Convenience Stores, UK (The Forecourt Report 2019) 4. In 2018 5.Per Petrotech 2016 gas conference 6. ACS Forecourt Report 2019

Trend decelerated by COVID …and enhancing the role of retail experience Trend accelerated by COVID

Forecourt retailers are re-designing c-stores with the modern consumer in mind, and offering a variety of localised products to shoppers — in a bid to attract customers and increase the probability of impulsive purchases

Besides standardising branding across their global stores, most BP Australia launched a ‘concept store’ featuring modern interiors w ith yellow and charcoal accents and forecourt retailers are revamping their in-store design to: w ooden ceiling panels for a refreshed appeal — Differentiate themselves from peers and attract more Applegreen’s M1 Lisburn store w on the Forecourt Trader of the Year Aw ard (2017) for its store design; customers has a mezzanine floor w hich can be accessed via an escalator, and also has an Applegreen lounge — Increase the retail space Applegreen’s Spalding store w on the Forecourt Trader aw ard for Best Design & Development (2019) In-store design — Supplement their food-to-go offering w ith seating for SPAR Express forecourt store (Austria) is equipped w ith a new store design concept, featuring w ood customers w ho w ould prefer to eat in-store panelling, clear store signage and easy to navigate floor plan

3 Forecourt retailers are: Coop launched a freezer filling deal w hich can feed a family of four for £5 Dallas lab store is testing new w ellness products such as gluten-free, keto-friendly and naturally — Introducing new menus and concepts, such as live preparation 7-Eleven’s 4 to stay up-to-date and sustain consumer interest sw eetened goodies. Additionally, it operates combined distribution centres w hich supply fresh products (lunch boxes, rice balls, sandw iches etc.) to the stores 3 times/day. 7-Elevenalso implemented a cold chain (low 1 — Offering healthy and localised products – fresh fruits and temperature logistics netw ork) to maintain freshness of harvested vegetables w hile transporting them Re -vamped vegetables, dairy, deli and low calorie drinks and snacks – to cater to different age groups and customers Woolworths partnered w ith Australia Post and DHL Supply Chain to deliver the ‘Basics Box’ of groceries in product Australia, in light of the COVID-pandemic. Meant for the elderly and vulnerable, the US$80 w orth box contains assortment — Altering product-mix to keep pace w ith changing customer meals, snacks, and essential items; under a similar initiative Morrisons also launched ‘Essential Box’(£35 to requirements amid the pandemic £55) delivery in the UK

Forecourt retailers are increasingly launching ow n private labels BP as part of its Trademark product portfolio ‘Too much good stuff®’, offers proprietary foods such as Good of fresh food/coffee and others to: Stuff Candy, cookies and coffee

— Create differentiation Seven & I Holdings’ private labels in food and cosmetic comprise 7-Select GO!Smart Cold Pressed Juice 5 — Drive brand loyalty and 7-Eleven Makeup Simply Me Beauty. Also hosts a ‘24/7 life’ brand containing ~200 non-food products

Private — Increase margins in their products Rewe’s (Germany) offers diverse private label products. In 2019 it launched private label show er gel and labels soaps under its ‘Today’ brand w hich come in packaging made of 100 percent recycled materials. Also launched a sustainable ow n-brand orange juice, in 2020

Note: 1. Locally sourced to tailor to local preferences; 2. Delicious Ideas Food Group 3. Contains: Birds Eye four chicken burgers, Birds Eye two Southern fried chicken grills, Birds Eye mini potato waffles, Birds Eye mixed vegetables and a Cadburys Double Decker ice cream tub 4. In order to keep offerings fresh; Temperature-separated combined distribution centres are operated by third parties and enable products from different suppliers and manufacturers to be delivered to 7-Eleven stores on the same truck 5. Including electronic devices and toiletries, over-the-counter medication, cleaning supplies and other non-food items © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 15 Note: …redefining customer relationship, Trend accelerated by COVID

Forecourt retailers are leveraging innovative digital tools to engage the modern and safety conscious1 consumer at every step of their purchase experience journey

F. Rates experience H. Order online or re-visit PAID The customer rates the forecourt forecourt retailer w ith ‘n’ stars The customer then chooses to either: C. Payment on the app and shares his/her experience on social media (1) Order product via ‘convenience The customer can choose to either: store delivery app’, w hich is (1) Pre-pay for the fuel, delivered at home or a public hot groceries and car w ash spot (beaches/parks/others) via a A. Station locator services via e-Wallet, or E. Explores the G. Personalised offers & delivery partner (such as, Uber The customer uses (2) Pay-at-Pump via an outdoor ‘offer of the day’ Eats or Grubhub) payment terminal loyalty rewards mobile app to locate the Deliveries via partnerships The customer is attracted by the — closest outlet; view s Later during the day, the are becoming prominent, ‘offer of the day’ — spends time on real-time fuel prices and customer receives a driven by COVID-19; per a the forecourt to explore the offer and brow ses through personalised discount offer, latest study, 12 percent of UK ends up making an impulse products/services valid on a preferred product shoppers2 are using delivery purchase available and a chance to w in loyalty apps (such as Deliveroo/ points UberEATS) more during the lockdow n, than before. Additionally, 5 percent expect to continue to do so even after B. Outlet selection the lockdow n ends (2) Re-visit the forecourt to utilise the The customer preference for an outlet D. Re-fuel and relax discount offer; makes contactless is based on his/her convenience payment via mobile/QR code function; fuel price and discount The vehicle is re-fuelled at the forecourt and is then lined offers on his debit/credit card also up for car w ashing, during w hich the customer picks up influence the decision his/her groceries and spends the ‘w ait’ time in a bistro Note 1. safety becomes prominent in light of COVID-19 2. Link Health and safety across all touch points, becomes integral in light of COVID-19 — customers to likely prefer fuel stations that are frequently disinfecting high touch areas, offering contactless delivery and f ollowing strict food safety and handling policies

The Forecourt industry is quickly adapting to digital opportunities with many retailers understanding the advantages it brings; adoption in some cases remains slow, its potential to transform the industry is huge. Driven by the pandemic, the future solutions will see an accelerated involvement of digital retailing

Operational efficiencies through: What’s in it for forecourt retailers?

Data driven insights Applegreen + PDI software ► Accurate marketing insights generation Store data can enable forecourt retailers to: Applegreen uses a price optimisation ► Efficient w et stock management solution to boost its profitability at the pump. — Design CRM campaigns The softw are gathers real-time data (such — Design new products ► Right size food offering and targeting as market costs, competitor prices, historic right customer, at right time — Identify up-sell/cross-sell opportunities site-level sales) and then applies modelling — Explore the time/day w hen purchases ► Efficient price strategy to forecast price elasticity — enabling spike profitability w ithout compromising on the — Look at a customer’s path to purchase ► Improved capabilities and services drive offer of ‘low fuel prices’ (w here), touch points (w hat) and buyer more speed and consistency Challenges and recommendations behaviours (w hy) — i.e. journey Seven Eleven + Microsoft tracking ► Better insights into customer habits and — Fuel retailers are faced with various barriers — Automatically replenish wet stock based desires, resulting in improved sales and Seven Eleven is leveraging Microsoft when adopting digital — these inhibit them to on sales history or stock levels ability to avert potential issues Surface devices (equipped w ith Office 365 scale and Pow er BI) to provide franchisees w ith - Internal barriers (mainly workforce related) Process digitisation insights into store performance and can be dealt with, by — (1) engaging new skills (data science/cybersecurity specialists) ► Enhanced forecourt efficiency via purchase trends, w hile also enabling them — Utilising sophisticated IT infrastructure to (2) developing a digitally savvy workforce on predictive analytics to analyse sale opportunities facilitate communication and standardise the ground management across global operations ► Productivity increase of having - Strategic partnerships with fast food — Leveraging tools to gain real-time view on empow ered workers Waw a Inc. + Zynstra chains, e-commerce giants or other fuel POS terminals, store systems, inventory retailers can help in scaling up quickly and merchandising Waw a is using softw are from startup Zynstra ► Labour cost-saving — Regulatory challenges (e.g. GDPR) related to — Integrating control of all types of forecourt to create a virtualisation layer for its point-of- storing and processing sensitive data equipment w ith the POS sale (POS) platform that lets store associates ► Operational transparency 2 — Embedding automation to save labour move around the store and complete sales - Adopting proven PCI strategies as blueprints, and pseudonymisation3, can help costs ► Inventory control and tracking (fuel using a tablet computer — reducing forecourt retailers overcome privacy — Using tablets w ithin stores for staff, for inventory), supply chain management checkout lines and freeing up store inventory tracking challenges and audit and compliance associates’ time to attend customers Note: 1. Applegreen won the 2019 NACS European Convenience Retail Technology Award for this solution 2. Leveraging learnings and industry best practices (such as tokenisation/minimising storage of card data) adopted to comply with PCI DSS (Pay ment Card Industry Data Security Standard) 3. Pseudonymisation replaces most identifiable fields in a data set with artificial identifiers, or pseudonyms

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 17 especially amid the coronavirus pandemic, where digital/contactless payments are edging out any other form of payment owing to the * associated hygiene factor …and helping unlock value from payments*

With m-commerce1 pervading every aspect of the retail landscape including forecourt, convergence between mobile and payments is taking place, driven by consumer demand for ‘faster, better, cheaper, easier and safer’ shopping experiences Forecourt retailers are continuously adopting faster payment methods to reduce customer checkout times at their stores. The trend is being accelerated by the pandemic — increased concern about hygiene is spurring contactless payments, as people refrain from using cash

Mobile/app based payments Radio Frequency Identification (RFID)

— Most traditional fuel retailers such as BP and Shell have launched or are already — A RFID chip embedded in items at forecourt store, could potentially lead to an entire basket using this form of payment. Per ACS analysis2, about 82 percent of the forecourt sites being scanned in one go and reduce the standard self-service checkout time — making in the UK accept mobile payments shopping at forecourt stores even more convenient, quick and hassle free

BP Couche-Tard IBM + Shell Seven & I Holdings IBM has trialled the use of RFID chip to BP launched a smartphone app-based Provides various quick payment Seven & I Holdings has introduced RFID scan an entire basket or trolley’s w orth payment system, ‘Bpme’ w hich enables settlement options such as mobile-app based unmanned cashless checkout of shopping in one go, at a Shell petrol users to select the pump and make the (Circle K Pay, Easy Pay), payment by car facilities in Japan. By 20254, aims to station in Hollow ay Road, London; the payment etc. for both fuel and non-fuel purchases implement an RFID self-checkout system system could render traditional barcodes for all products Seven & I Holdings Shell obsolete Accepts Apple and Google Pay across its Shell’s m-payment app ‘Fill up and Go’ stores; Canada stores also accept Alipay lets customers pay via their mobile; it Reduced check out time and speedy transaction process and WeChat Pay. In the US it introduced partnered w ith Jaguar to enable users to Mobile/app payments have the ability to enhance brand loyalty by: mobile checkout — enabling customers to use the car’s touchscreen to go cashless What’s scan their purchases and checkout w ith via the shell app. In Thailand, it launched — Serving the customer demand for ‘convenience’ the 7-Eleven mobile app. Further, it Pay at Pump: In-car contactless in it for — Making it easier to quantify the value delivered, by analysing app data leveraged contactless technology to payment with PromptPay QR Code to forecourt (via back-end analytics) enable health care w orkers pay via their enhance convenience and safety amid the — Making the payment process safe and contactless, as customers look 5 employee badges at a pop-up store COVID situation retailers? for minimal human interaction driven by COVID-19 fears Consideration: — Calculating customer value w hich can be used for Forecourt retailers w ill have to consider the use of mobile phones at petrol stations, ow ing to hyper/personalisation of suitable offers, promotions and push the associated safety issues2 notifications (coupons, discount offers) Note: 1. Mobile commerce 2. ACS: Association of Convenience Stores | The Forecourt Report 2019 3. Usually it is required to keep the engine, lights and electrical systems (radio/devices that emit electromagnetic radiation) turned off at the petrol station. Some howev er argue that phones are too low-powered to trigger an explosion, but BP claims a spark could be produced if a phone is dropped and its battery knocked loose 4. Ministry of Economy, Trade and Industry Japan (Link) 5. Pop-up-store in Texas, amid COVID

Retail & F&B

Adjacent Services

Mobility Note: Home deliv ery trend made more prominent by rising logistics/delivery Adjacent services are gaining centre stage… partnerships in light of COVID-19

In addition to the expansion of product portfolios and ranges, forecourt players are focusing on new and innovative services to cater to multiple customer needs — beyond those of their car

Other potential adjacent services… … including licencing Most prevalent service(s) today Prescription Children play Laundry/dry Bill payment Unmanned collections areas cleaning services serv ices v ending Car w ash and repair services: Co-working Mobile phone Alcohol licence ▌ Jet w ash (manual) Cash Cash-back and space top-up Tobacco/

Convenience Machines Loyalty cards, ▌ Automatic machine car cigarettes Lottery w ash ▌ Hand car w ash (attended) Pick-up point Autonomous ‘Retail to trunk’ Local grocery E-bike last-mile for click and ground-based services, enabled Delivery/cold deliv ery (in Delivery and click collect orders and aerial by connected storage transport1 congested Late night refreshment and collect services drones for local v ehicle technologies licence Logistics ecosystems) distribution

Examples

Caltex BP + Deliveroo + Uber Eats WAWA Sinopec What’s in it for forecourt retailers? Offers services such as laundry, parcel BP moved into food delivery w ith Launched a catering programme Launched touch-free collection and meal kit deliveries at its food a new brand ‘Couchfood’, for family gatherings, social service amid COVID ► Driv e customer intimacy via personalised offerings and and services convenience hub (‘Foodary’); enabling on-demand ordering of and corporate events (breakfast, fears — delivering insights, to provide the right product service mix to customers supports pre-orderingvia mobile app snack food; service available via lunch, dinner); offers customised app-ordered groceries ► Harvest attractiv e profit pools, and continually ev olv e service Deliveroo and Uber Eats packages to car trunks propositions to differentiate themselves from peers Couche-Tard Glovo Moto (Motorway service Shell CEPSA + + Carrefour operator ) ► Retailers need to build the maximum ‘stopping power’2 for their Arranged for hairdressing services on its Offers seasonal car wash Carrefour extended its Moto is launching a sites, by enhancing the role of services in their profit mix 4 forecourts in China , w here barber shops were services; cutomised to regional partnership w ith Glovo for click-and-collect food ► Additionally, emergence of new partner concepts will require closed due to COVID. Further, it extended atmospheric conditions (dirt, home delivery from select 150 ordering scheme at 48 forecourt retailers to continually rev iew and ‘churn’ concepts to product range to include, bleach, sanitisers, pollen, snow etc.); also offers Carrefour Express stores3 sites; the service will be ensure the offers stay fresh and interesting over time pharmaceuticals and staple groceries RFID tag based car subscriptions located at Cepsa gas stations pow ered by QikServe5 Note: 1. Certain forecourt retailers mandate transportation of food items such as vegetables at a fixed temperature range to ensure good product quality e.g. Seven & I holding & Wawa 2. Attractive and compelling propositions to ‘stop’ the customer for a longer duration at the f orecourt 3. In the first phase, 150 Carrefour Express fuel stations selected to develop this service 4. New y ear traditions in China include people getting their hair cut on the 2nd day of the 2nd lunar month Link 5. QikServe’s Preoday product

Developing countries such as Argentina and Brazil have displayed high growth potential for forecourts in general and adjacent services in particular; mature markets will also experience high growth in adjacent services at forecourts

75 Adjacent serv ices to become ↑Growth in adjacent services, ↑Future forecourt growth predictions Key established economies High growth economies prominent in mature economies despite low 70 anticipated growth in f uture Established economies such as the UK and Forecourt growth in Argentina and f orecourt market — imply ing a Argentina 65 the US will continue to hold a strong position Brazil will be coupled with growth structural shift with ‘adjacent in the forecourt market, and given the enabling in adjacent services, driven by the service’ becoming 60 ‘mainstream’ environment (infrastructure, technology and convenience culture as well as the prominence of services in general) forecourt openness of the economies to services are expected to become more innovation 55 prominent. In the US however, consumer Netherlands In the high growth markets, rapid preference to refill grocery from stores rather 50 Switzerland Brazil growth in f uture f orecourt market will than branded fuel stations1 will make it difficult Sweden Italy go hand in hand with growth in for forecourt retailers to engage with the 45 Germany UK adjacent serv ices customer who never enters the forecourt site USA France Russia 40 Spain

New Zealand Iran 35 Canada Thailand Developing economies Further details Australia 30 Mexico South Africa Egypt 25 Conv enience culture is picking up in both, Though Germany is a prominent Poland India China and India. However, India appears to lag forecourt market, its ageing

in terms of infrastructure and technology population inhibits service growth. 2 20 adoption; global trends such as, reliance on Also, the conv enience channel has China Dev eloped non-fuel revenues to drive margins and entry of traditionally held a small share of the 15 hypermarkets in fuel retailing, are yet to fully German retail in general, largely owing Dev eloping

dev elop in the country to high number and density of 10 supermarkets in the country Iran is also witnessing an increase in the

convenience trend, driven by fast-growing 5 ↓Growth in adjacent services, ↑ Future forecourt growth predictions

AdjacentServ ScorePotential Growth ices (higher the better) single-person households and an aging society 0 0.0% Forecourt0.5% 1.0% 1.5% 2.0% Retail2.5% 3.0% market3.5% 4.0% growth4.5% 5.0% 5.5%CAGR6.0% 6.5%(20187.0% –7.5%22,8.0% %)8.5% (higher9.0% 9.5% the10.0% 10.5%better)11.0%11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5%

Note 1. Per UKPRA 2019 Market Review 2. Y-axis reflects the overall score a country has achieved after taking into account four parameters (details in Appendix III) which impact the prominence of forecourt services in the respective economy; higher the score, more is the potential for a structural shift towards ‘adjacent services’; Source: KPMG Analysis

Retail & F&B

Adjacent Services

Mobility Global mobility megatrends are transforming the industry…

Three main disruptive forces will fundamentally transform how people and things move in the future — EVs, C&AV and MaaS1

Disruptive forces Enablers Impact

Influx of new technology Shift from personal ownership model to a mobility ecosystem model based on Changing consumer Electric on-demand services demands in terms of: Vehicles New business models and value chains will emerge Mobility Collaborations driven by a need to enhance capabilities Convenience Change in the future fuel mix Sustainable Connected & Mobility as driven by a trend towards cleaner fuel environment Autonomous a service (societal demands) Vehicles

Note 1. EV: Electronic Vehicle; C&AV: Connected and Autonomous Vehicles; MaaS: Mobility as a service

Connected cars, autonomous vehicles and rise of mobility as a service will lead to a change in the existing business models of the forecourt players, while also bringing data privacy into play With a rise in Internet of things (IoT), the car of the future will become a connected hub … data availability results in both opportunities and challenges for the forecourt retailer that relays and processes customer data … Opportunities Challenges/costs Inter-connectedness to generate huge amount of customer data + Utilise the customer data to provide CAGR: personalised services and products. 17.1% IOT w ill enable connected vehicles to provide Data confidentiality, cyber security concerns and GDPR compliance 2019 market size (global): 2027 market size (global): + information on availability of 'fuel of choice‘1 at

US$63.03 billion US$225.16 Mobile based Car infotainment best prices in a locality. Hence, forecourts selling Connectedcars applications system at a competitive price w ill w itness a boost.

Global autonomous vehicle market size and market penetration: Market for autonomous vehicles (AVs) is expected to be worth US$556.7 billion by 2026 Market size (US$ billion) AV penetration Opportunities Challenges/costs Market penetration (%) 556.7 600 2% 2% + Shift tow ards B2B sales 500 396.7 1% 1.7% Partner w ith automakers to develop software 400 282.9 1% model, as fleet ow ners are more likely to 1% 300 203.1 that ensures their brand of fuel is the use AVs than individuals. Moreover, 146.4 1% vehicles vehicles 200 76.5 105.7 0.8% 1% priority/default choice of the AV — creating driverless commercial fleet could make the 54.2 0% 100

Autonomous Autonomous 3 0.1% 0.2% 0.3% 0.5% 0% potential footfall at their forecourt food/restroom breaks at forecourt 0 0.0% 0.0% 0% redundant 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F

MaaS Consumer perception of mobility is also shifting from asset ownership towards mobility ecosystem as a service, forcing the forecourt retailers to adapt: P2P ride One way Two way Ride Bike includes: sharing car share car share hailing sharing Opportunities Challenges/costs Global Mobility as a Service (MaaS) market size and market penetration: + Tie-up with AV service providers to cater to their recharging/refuelling needs. Shared mobility w ould lead to multiple customers with differing tastes on Urban forecourts could provide car sharing (for the road. As a result, forecourt retailers will both ICEs, EVs) and car rental services. 2018 market size: CAGR2: 2024 market size forecast: have to provide compelling incentive for US$171.5 billion 12.5%5 US$347.6 billion Forecourt retailers could provide attractive each type of customer to ensure footfall and offers/discounts to ride sharing/hailing drivers, business Mobility as aservice Mobilityas if they fuelled up on their station4 Note: 1. Determined based on frequent consumption or high quality 2. Calculated 3. Impacting revenue source 4. E.g. GOJEK’s partnership with Esso (link); in Singapore Gojek drivers enjoy a 20 percent discount when they buy petrol at any of Esso’s serv ice station

Electrification will lead to partnerships between forecourt retailers, carmakers and energy providers to expand electric vehicle (EV) charging beyond forecourts; while the forecourt of future will have to be designed keeping in mind the EVs

Government subsidies, coupled with mandates to discontinue diesel/petrol is incentivising consumers to switch to EVs Opportunities Challenges/costs Global EV market size 2017–25 (US$ billion) + EV w ill be the vehicle of choice and w ill 567 lead to a reduction of the footprint of Partnerships with energy providers to Plug-in Hybrid Electric Vehicle future forecourts. Additionally, future ‘expand’ EV charging beyond petrol Hybrid Electric Vehicle 444 24% forecourts will have to be designed stations and forecourts Battery Electric Vehicle 351 24% (existing ones re-designed) keeping in 292 mind EV charging infrastructure 237 24% 46% Possible transition to ‘mobility’ hubs; 195 24% offering converging range of services Electrification 46% 163 24% EVs w ill require retailers to develop 119 138 46% 24% 46% (battery swap-out services to allow for 24% 24% 47% innovative business models to 24% 47% 47% 30% faster powering up) and retail offers 47% 47% 30% incentivise electrification of private 29% 29% 30% 28% 28% 29% 29% sector fleets (Uber, Lyft) 2017 2018 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Couche-Tard / Shell Ionity Greenlots “Within five years we plan to have more than 100 Electric Forecourts in use, with each Circle K + + supported by solar energy and battery storage. This infrastructure will accelerate the electric In Norw ay, Couche-Tard has replaced Shell in partnership w ith IONITY2 plans to install vehicle revolution” — Toddington Harper, CEO | Gridserve, April 2019 fuel pumps w ith EV chargers in some 500 EV charging stations (w ith peak pow er of Electric forecourts will also offer “a coffee shop, supermarket, high-speed internet and of its Circle K gas stations. It’s Norw ay 350kW) in forecourts. Additionally, it acquired everything else you would expect to find at a service station”, plus an education center w hich laboratory1 is testing approaches to pure play EV charging solutions providers w ill aim at “improving consumer confidence in such technologies" — Press Release, cope up w ith changing fuels market Greenlots in 2019 Gridserve, March 2020 We recognise that the customers are not just necessarily going to go to recharge just at OMV BP + DiDi Chargemaster retail sites, they’re going to want to charge at work and home, so we’re moving into + this space” — Mark Gainsborough, executive vice president | Shell’s New Energies 3 OMV Petrom, a Romanian O&G firm BP established a JV w ith DiDi to build EV operation, February 2019 installed solar panels on the canopies charging network in China in 2020. “The opportunity also to explore options for providing charging services away from covering the gas pumps at 40 stations Additionally, began rolling out 150 kW BP our existing retail sitesmakes FreeWire an ideal partner for BP.” — Tufan Erginbilgic, in Romania; these w ill generate 30,000 Chargemaster UFC4 in the UK and piloted chief executive | BP Dow nstream, January 2018 kWh of electricity annually, per station UFC4 at Aral forecourts in Germany Note: 1. Limited details on the laboratory available 2. IONITY is a joint venture between BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group with Audi and Porsche 3. Oil & Gas 4. Ultra-fast charging

A move towards cleaner fuel driven by increasing pollution and the increasing need for a sustainable environment has increased the preference for electric vehicles among both manufacturers and consumers … and (2) introduce vehicle emissions standards and regulations, to support clean fuel Rising transport sector’s … have steered countries to (1) set up 1 2 transport CO2 emissions … mandatory fuel economy targets via Global Fuel Economy Initiative3 (GFEI) Launch of ‘Road to Global energy-related Zero’ strategy w hich aims to have half of emissions ≈ 30 Gt CO2 Non-OECD OECD average new car sales to be average fuel average economy av erage f uel economy ultra low emission by (Lge/100km) (Lge/100km) 2030

2005 8.1 7.5 22%

Transport emissions 2008 7.6 7.6 ≈ 7 Gt CO2 Started in 2017, Tier 3 4% sets new vehicle 12% 2011 7.0 7.5 11% emissions standards and low ers the sulphur content of gasoline, Adoption of Bharat considering the vehicle 73% Stage VI emission and its fuel as an norms (standards to 2030 4.0 integrated system regulate emission of air Road transport pollutants from motor emissions ≈ 5 Gt CO Since 2009, EU legislation 2 Above Euro 3 sets mandatory emission vehicles) from 1 April 2020 Legend: Euro 3 reduction targets for new cars. Below Euro 3 From 2021, phased in from 47% 2020, the EU fleet-w ide 53% No Policy average emission target for Sea Air Rail Light-duty Heav y-duty Unknown v ehicles v ehicles new cars w ill be 95 g CO2/km Note: 1. 100 percent values for these were not available, 2. Vehicles use energy, and fuel economy measures energy per unit of vehicle travel. It is the rate of energy use. Litres per 100km (Europe), Km per litre (Japan) Miles per gallon (United States), 3. The Global Fuel Economy Initiative promotes the introduction of cleaner, more energy efficient vehicles in developing and transitional countries

Hydrogen has the potential to become a vital part of the transport mix in a low-carbon future — requiring players to re-invent their business models to account for new infrastructure requirements (around fuel production, storage and distribution)

Production of hydrogen (H2) utilises renewable source of energy such as water and is hence, considered sustainable. As a result, fuel cell hydrogen vehicles – which can travel up to 700 km on a single tank and can be refuelled in a few minutes – could be the future

How hydrogen reaches the vehicle? What’s in it for the forecourt retailers? Supply chain & other challenges Re-fuelling infrastructure considerations Production Onsite production Offsite production at refuelling station via electrolysis that in large plants through electrolysis, H2 facility integrated into an existing refuelling station Transporting, storing and delivering H to uses w ater procured from nearby lakes gasification or renew able liquid reforming 2 and added as another fuel offering the fuelling station is considered to be or rivers, and electricity expensive on a per-GGE2 basis Impact: The precondition for this is - there should be Storage sufficient space on the existing site for the required hydrogen facilities and that the delivery, storage and Can be stored as a compressed gas or liquid, or in a chemical compound To ensure dispensing pressure is good dispensing of hydrogen alongside other liquid or gaseous and consumer friendly, metering needs to fuels is possible from both a technical and a regulatory be done correctly, w hich becomes perspective 1 Distribution to PFS challenging, as H2 is lightest molecule Established as a greenfield project on a standalone site H2 is distributed either through pipeline or by truck, railcar, ship, barge in high-pressure tube trailers, else via liquefied Hydrogen Tankers High cost — expected cost to build a H2 Impact: As new facility, therefore, no need to w ork w ithin economy could be ~US$280 billion during the constraints of existing site infrastructure 2018–30, including US$80 billion for — Typical refuelling station components expected by Dispensing the fuel into the consumer’s vehicles infrastructure to store, transport and customers, such as c-stores and services distribute H2 H2 is fuelled into the consumer’s vehicles in few minutes. A 4 kg H2 tank holds the energy equivalent of 4 gallons of gasoline. Such a tank is filled in 3-5 minutes Mobile re-fuelling stations (used where there is no permanent hydrogen re-fuelling station as yet) Case example: H2 Mobility3, a German consortium (includes Shell, Total, OMV, Handling H2 requires compliance w ith safety regulations, there exists a high risk Daimler, Linde Group and Air Liquide) is establishing a netw ork of hydrogen stations Impact: As mobile hydrogen re-fuelling stations are and infrastructure to supply cars with fuel cell drives in Germany; aims to install 400 of potential ignition of H2 leakage at the primarily an instrument for a market launch or for H2 stations in the country by the late 2020s station or at the vehicle (e.g. on 10 June demonstration projects, they are unlikely to have a Note: 1. Petrol Filling Station 2. Per gasoline gallon equivalent 3. For further details visit the website 4. Link 2019, an explosion occurred at the Uno- significant impact on forecourt retailers X H2 station in Norw ay4)

Stringent emission regulations/standards and an imminent influx of electric vehicles has led to a change in fuel mix, which in future will also comprise electric charging points and alternative fuels such as hydrogen and biofuels

Yesterday Today Tomorrow “This is about us thriving through the energy transition. We’re looking at the next evolution and the needs of our customers in the broader sense. We’re doing nature-based solutions, giving motorists the opportunity to do something about their carbon footprint as we continue to invest and ramp up long-term solutions of electric vehicle charge posts for those people when they’re ready to move to EV transportation.“

— Bernie Williamson, Retail General Manager | Shell, October 2019

Legend:

Unleaded petrol Biofuels (ethanol) Various factors will have a role to play… Premium and super unleaded Alternate fuels Apart from emission standards set by various economies for a low -carbon future other factors such as — (a) petrol the overall regulatory landscape (relating to EV/biofuels)1, (b) technical feasibility of new fuel and technologies and (c) the level of customer, societal, as w ell as, political acceptance, w ill influence the pace of change and Diesel Electricity final form of the future fuel mix. Not only w ill the fuel-mix change in future, but also the mix of partners or stakeholders supplying this fuel in future w ill be drastically different from today LPG Auto Gas

Note: 1. E.g. UK Government adopted the Alternative Fuels Infrastructure Directive (AFID) — these are new rules on the labelling of petrol and diesel at service stations to enhance the understanding of the fuel’s biofuel content; in 2019 new labels were introduced at UK filling stations; Source: KPMG Analysis

— Future forecourt Emerging trends signal a change in the role of forecourt In-city petrol Urban Highway stations forecourts forecourts

… would cater to long … have prime locations, … would become distance travellers and will ideally become suited prominent for transport become one-stop multi- for convenience retailing exchanges use hubs

Evolutionary trends in fuel retailing observed in developed markets are yet to fully shape-up in developing ones; hence, the future disruption in terms of technology, infrastructure and operations will materialise first in the mature markets — eventually percolating to other economies

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 30 Legend: ‘Battery Sw ap’ Trend intensified by COVID-19 EV charging Future forecourt: In-city (1/3) and parking

Solar panels for clean Drones — In-city forecourts w ill shape up to be Retail shops will be in the forecourt, and and low cost energy ‘convenience stores selling fuel’ fuel will take the backcourt instead of fuel sellers w ith c-store Local distribution offerings; the role of local forecourt centres (last-mile as a ‘fuel provider’ w ill hence Non-fuel retail innovations, e.g. delivery) diminish. This w ill open up vast — C-store experience opportunities for products and — Localised food offerings, plus a ancillary service offerings dedicated space for farmers market ‘On Roof’ facilities for — They w ill have a smaller format/site — Customised store format drone distribution & w ith c-stores at the forefront to — Other value-added services, logistics services draw in passing trade such as ATM — As e-commerce trend intensifies demand for intermediate storage is bound to increase — making in-city Health and safety stations w ell placed to act as local — Higher daily frequency of store distribution centres playing a key cleaning — Disinfecting high-touch areas role in last-mile logistics eBikes to sustain — Strict food safety and handling Decals for social continued — These forecourts are likely to face policies with self-serve items distancing growth of last- competitive pressures from tw o — Plexiglass sneeze guard mile logistics in types of players: (1) disrupters such installation as ‘store on w heels’ (w hich deliver congested fuels and services directly to the Car wash/ ecosystems customers e.g. Zebra Fuel1) and maintenance (2) traditional supermarkets services Click & Collect lockers for web purchases and Cart wipes and hand — Heath and safety w ill be a top peer-to-peer retailing priority and fuel pumps w ill be sanitizer stations Alternative ‘fuels’ responsible to minimise the such as hydrogen potential contraction of coronavirus at the pump

Note 1. Uses a fleet of specially adapted vans to dispense fuel directly Hygiene and safety: into the customer’s vehicle and claims to be price competitive with Various type of fuels: inner city petrol stations/forecourts 2. Link Source: KPMG Analysis — Plastic gloves to handle nozzle — Gasoline © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent— Hand member protection firms affiliated with dispenser, KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. — Battery charging31 E.g. GripHero2 — New liquefied gas (LNG, — Robotic refuelling CNG, LPG) Legend: ‘Battery Sw ap’ Trend intensified by COVID-19 EV and UFC1 charging Future forecourt: Urban (2/3) and parking Drones

Solar panels for clean — Urban forecourt/petrol station w ill function and low cost energy as a ‘transfer hubs’ i.e. people w ould be able to sw itch betw een different modes of Regional transport distribution Non-fuel retail innovations e.g. centres — These forecourts w ould be characterised by — C-store experience prominence of ‘to-go’ model — driven by — Customised store format mobile customers grabbing quick — Other value-added services, eats/coffee w hile hopping from one such as ATM ‘On Roof’ facilities for transport vehicle to another drone distribution & — Urban forecourts will be fewer in number logistics services (as EVs could be charged at home or at Adjacent services and retail w ork); they w ill act as ‘back-up’ charging offering shifting to a ‘to-go’ facilities w ith UFC1 also available model

— These stations w ould have larger spaces Health and safety and few er restrictions than the inner city — Higher daily frequency of store ones cleaning — Additionally pure play electric forecourts — Disinfecting high-touch areas w ill emerge. For instance, Gridserve, an — Strict food safety and handling energy services company has plans to policies with self-serve items develop a UK-w ide netw ork of — Plexiglass sneeze guard installation Transfer point electric forecourts, adjacent to a between different main road or close to metropolitan Click & Collect lockers modes of transport areas. The construction of first for web purchases/P2P such forecourt started in March retailing 2020 Cart wipes Decals for social and hand Alternative ‘fuels’ — Heath and safety w ill be a top such as hydrogen priority and fuel pumps w ill be Car w ash and distancing sanitizer stations maintenance responsible to minimise the potential contraction of coronavirus at the pump services

Note: 1. UFC: Ultra Fast Charging; 2. Link Hygiene and safety: Source: KPMG Analy sis AV Hubs — Plastic gloves to handle nozzle Various type of fuels: — Gasoline © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with— KPMGHand International protection Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 32 dispenser, E.g. — Battery charging GripHero2 — New liquefied gas (LNG, — Robotic refuelling CNG, LPG) Legend: Trend intensified by Health and safety COVID-19 — Higher daily Lounges and waiting areas for frequency of long distance travellers and store cleaning Future forecourt: Highway (3/3) — Disinfecting high- long haul drivers/truckers touch areas Vending machine for — Strict food safety ‘pit stop’ services and handling — One stop multi-use hubs EV and UFC1 policies with self- serve items offering variety of services charging such as entertainment, leisure and parking and fuel — Highw ay service station ‘Battery Sw ap’ Decals for social operators will have a higher distancing design freedom due to larger spaces and fewer Dedicated areas for restrictions compared to inner HGVs w ith advanced EV city and urban petrol stations charging infrastructure — Given the availability of space Solar the forecourt w ill be panels architecturally engaging in for clean Multiple eating design and built using and low Hygiene and safety: joints with environmentally sustainable — Plastic gloves to handle cost variety of food materials energy nozzle choices — Hand protection — Highw ay forecourts w ill cater dispenser, E.g. GripHero2 to different types of commuters — Robotic refuelling — long distance travellers — Plexiglass sneeze guard w ill have lounges to relax installation while those who don’t want to wait can avail wide range Retail and C-stores with a of ‘to-go’ offerings customised store format; — Heath and safety w ill be a top value added services such as ATM, Children’s play priority and fuel pumps w ill be Fuel mix w ill include: area etc. present responsible to minimise the — Diesel potential contraction of — CNG, LNG Cart w ipes and coronavirus at the pump high-speed diesel — Hydrogen hand sanitizer pumps and wide lanes — Premium unleaded petrol stations

Note: 1. UFC: Ultra Fast Charging; 2. Link Source: KPMG Analy sis Drive through services so that consumers who © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. don’t w33 ant to wait can avail the ‘to-go’ offerings AV hubs quickly 04. How are forecourt retailers responding today

— Current strategies The changing landscape is forcing forecourt retailers to adapt…

Why is the landscape changing? What do the retailers need to do? How can they do it?

Caused by e.g.: 1 Performance improvement & cost reduction Back-office standardisation and digitisation — Decline of fuel revenues and margins — To restore profitability and be able to generate sufficient 1 — OPEX heavy retail business cash flow s for investments, forecourts are actively trying to improve performance and reduce costs (OPEX) Pressure on Profitability Digitise front-end (e.g. check-out)

Extensive investments in: 2 Revenue optimisation & diversification 1 3 — Outlets, to increase customer experience — To overcome the decline of fuel revenues, new sources of — Technology, to better serve customers revenue are developed both w ithin existing segments Data driven insights Significant (expansion of convenience retail) and by introducing new investment — Infrastructure, to serve the new fuel landscape segments 1 2 3 requirements

The modern consumer demands: 3 Increase customer experience Acquisitions in mobility domain — Convenience in products, services and location — To respond to more demanding consumers, forecourt 2 4 — Easy and hassle-free shopping experience retailers are enhancing customer experience through all More aspects of the business to retain and expand the customer demanding — Quality and provenance base that increasingly needs to be pursued to visit as the consumers importance and necessity of fuel sales is in decline Starting adjacent services

Wide uncertainty about the future due to: 4 Risk reduction 3 2 4 — Uncertainty on future fuel landscape and mix — The w ide uncertainty about the future fuel landscape and — Role of (the different types of) forecourts both in retail the role of the forecourt clearly leads forecourts to actively Consolidation and in fuel pursue strategies that prevent them to become obsolete in Uncertainty on the future future 1 2 4

Source: KPMG Analy sis

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 35 …leading to consolidation, as one of the key ways to maintain market position (1/2) Forecourt retailers are consolidating in a bid to maintain or improve their market position. Continued single site acquisitions by group operators is being witnessed; moreover, oil companies have also been acquiring pure-play EV terminal manufacturers Geographic/footprint expansion Market Penetration Sy nergy Advantages

MRH Applegreen Applegreen 7-Eleven EG Group Welcome Break Sunoco Kroger Co. MRH acquired Chartman Retail Applegreen acquired a netw ork of 7-Eleven acquired Sunoco’s 1,030 EG Group acquired 762 (operates independently seven sites from Indie Carsley Applegreen acquired Welcome convenience stores across 17 convenience stores in the US from ow ned portfolios of service station Group for £21 million in a bid to Break, a motorw ay service area states in the US for US$3.3 billion Kroger Co. for US$2.2 billion (£1.7 forecourts); the acquisition is in line establish major service area operator, for a cash consideration (£2.6 billion1) w ith an aim to expand billion1); group has retained w ith MRH’s strategic objectives of presence in the UK. Sites are of approximately £322 million. This its presence in Texas, w hile Kroger’s branding and aims to w idening both the breadth of mainly located on the strategic move broadens Applegreen‘ s consolidating existing positions in understand the US market offerings and locations served arterial route of the A1(M) Motorw ay Service Area netw ork North America dynamics via this acquisition

2017 2018

Couche-Tard EG Group MFG MFG Prax CST ExxonMobil Golden Cross MRH HKS Group Holiday Couche-Tard acquired 1,300 EG Group acquired 1,000 sites from MFG acquired 14 stations from MFG acquired rival MRH for £1.2 Prax (Harvest Energy) acquired the and 522 stores from CST and ExxonMobil (Esso Brand) in forecourt operator Golden Cross billion to consolidate its position in retail network of the two forecourt Holiday, respectively in North Germany under branded w holesale Group. This follow s the purchase of the UK market — move is expected retailers listed in UK Top 50 Indices, America. The move aided in agreement. The group started to sites from FW Kerridge, Burns & Co. to create a forecourt netw ork of over HKS Retail and Retail Fuels Limited reinforcing its position in North operate in Germany through this and Manor Service Stations in 2017 900 sites w ith a combined annual w ith an aim to reinforce presence in America and leverage CST’s acquisition fuel sales of 3.6 billion litres the UK existing capabilities Note: Convenience store news reported; 1USD = 0.78632 GBP, per Oanda as at 22 April 2019

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 36 …leading to consolidation, as one of the key ways to maintain market position (2/2) Forecourt retailers are consolidating in a bid to maintain or improve their market position. Continued single site acquisitions by group operators is being witnessed; moreover, oil companies have also been acquiring pure-play EV terminal manufacturers Geographic/footprint expansion Market Penetration Sy nergy Advantages Impact of COVID-19

Couche-Tard Applegreen Couche-Tard EG Group Herbert Group **COVID-19 impacting Couche-Tard acquired 9.9 percent Applegreen acquired 40 percent Couche-Tard acquired 17 Gas Stop EG Group acquired a key KFC M&A deals stake in Cannabis retailer Fire and stake for £30.2 million (US$37.6 Holiday fuel stations and Franchise in the UK and Ireland, The pandemic Flow er Holdings for £20.9 million million) in 23 highw ay services convenience stores in the South The Herbert Group, w ith an aim to prompted Couche-Tard (US$26 million) w ith the potential to plazas in Connecticut in order to Dakota and Minnesota regions, in enhance its food-to-go offer. to drop the AUD 8.8 increase it to 50.1 percent in the expand its presence in North order to strengthen its presence in Acquisition includes 146 KFC billion (US$5.6 billion) future. The move w ill enable entry America, particularly in the motor the US Midw est region restaurants and one Pizza Hut Store proposal for acquiring into the Cannabis market service area along w ith a development pipeline as fuel retailer Caltex w ell as a few non-trading sites Australia

2019 2020

MFG EG Group EG Group 7-Eleven Symonds Retail Cumberland Farms Oliver's Real Food MFG acquired Symonds Retail, UK-based EG Group w hich first In March 2020, EG Group Limited 7-Eleven acquired 100 independently operator of 10 sites (including six BP entered the US market in 2018 w ith made a proposal1 to acquire operated convenience stores in branded, three Shell and one acquisition of Kroger’s 762 c-stores, Australian-listed group Oliver's Oklahoma City2. The acquisition Texaco). The acquisition also in 2019 acquired Cumberland Farms, Real Food w hich provides a healthy increases the total number of stores includes three ‘new to industry sites’ w hich operates 567 c-stores in fast food alternative for consumers operated by the retailer in the US and increases the total number of seven Northeast states and Florida. across 24 sites on Australia’s main and Canada to 9,700 petrol stations operated by MFG in With this, its US site count reached arterial highw ays the UK, to 904 1,680 stores in 31 states

Note: 1. As at 16 April it is a non-binding, conditional and incomplete proposal; if approved, completion is expected to occur mid-2020; 2. The Oklahoma stores were not licensees or franchisees of seven eleven, they were totally independent Other notes: Convenience store news reported; Exchange rate used for conversion as is 1 USD= 0.80254 GBP as at 30 March 2020 © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 37 05. How should forecourt retailers respond in the future?

— Future strategies A. Brace for disruption Fuel retailers are most likely to face the following possible challenges in the future…

Customer spend at Adjacent value- Forecourt footprint MaaS will enable forecourts will added and could witness a new services; new continue to shift entertainment potential fall in business models from fuel purchase services will gain some markets, while will emerge to convenience centre stage in others, it will retailing have to be repurposed

(Dominance of fossil fuels is (Service offerings will become (EV charging can be done at (Rise of car-sharing and at threat and it is uncertain a clear differentiator, new home, office, malls or ride-sharing reduces the at the moment which segments providing highly restaurants and hence amount of cars on roads) charging technology will personalised customer charging may not require the dominate in the future; in engagements, will emerge. same footprint of sites as addition, the pandemic is Making delivery of value exists today) altering shopping habits and propositions both physically spurring digital purchases) and virtually crucial)

Source: KPMG Analy sis

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 39 B. Prepare for tomorrow … requiring them to respond by building compelling retail propositions, efficiently managing infrastructure and operations, and re-shaping their strategic objectives Note: Highlighted action items reflect the Long term (next 10 years) Immediate actions (next 5 years) trends intensified or driven by COVID-19

Increase all type of Develop compelling ancillary Provide offers at the Re-vamp in-store design ‘to-go’ offerings service propositions to capitalise point of sale (via and product assortment on customer EV charge wait time GPS/beacon technology (adding more cleaning Retail considerations Action items Review and ‘churn’ and toiletry items) Create differentiation (e.g. Offer healthy and running in-store sampling concepts continually to keep Measure customer behaviour them fresh and interesting localised products days or food festivals) in response to EV and AV Scale back using predictive models Cross- sell foodservice operations Increase delivery/ in light of the pandemic curb-side pick up Digital station TV for opportunities Reduce check-out times personalised promotions Increase food-to-go offerings inside the shop Location/Infrastructure Reinvent the and ready-to-heat meals Network considerations customer relationship rationalisation Innovation across using digital and mobile customer-focused touches technologies Optimise location and site (e.g. digital menu boards and Optimise location/real estate formats, e.g. choosing locations free to use charging points) Develop facilities for portfolio based on traffic data based on micro-market strategy collected via in-car sensors Operational drone distribution and instead of mere real-estate considerations other logistics services Use existing physical availability sites to develop facilities Predictive maintenance Use existing physical sites to provide across forecourt equipment Strategic for parcel pick-up/click considerations for: (1) logistics services and (2) Designing new and collect Inventory solutions services to the logistics sector forecourts (and re- Non-contact digital payment and delivery options to identify high value, designing existing fast moving SKUs ones) with EV charging Workplace Devise new economic Digitise accounts Rapid testing Partner with e-commerce infrastructure and store Digitalisation and Unlock value from car parks models for sites e.g. receivables/payables and logistics companies safety of next-gen automation to via alternative use cases (e.g. renting space to new value chain technologies Engage and grow save costs installation of charging points, energy suppliers (electricity Digital payments to maximise revenue Move from fuel to new skills (e.g. Click & Collect lockers) etc.) and leisure retailers and security + capture customer info mobility service Prioritising digital data science) engagement and digital Standardise POS (forecourt, C-Store, commerce Infrastructure to account Partner with players traditionally seen others) and order management processes as ‘out of sector’ to develop innovative for hydrogen production, across touch points storage and distribution Invest in solar power, battery new business models (e.g. “Retail to Joint ventures with major technology and mobile charging Use digital trunk”, “Just prepared en-route”) food retailers and/or c-store projects, to enter into carbon marketing chains to enhance product and mobility space Partner with tech players format variety Diversify business model Country-wise around both B2B and B2C scenario/recovery Lead the way into charging solutions planning non-traditional fuel offering (e.g. EV) Store image and In-city stations will be required to streamline brand purpose Develop comprehensive mobile apps operations in accordance with them becoming Partner with supermarkets becomes integral covering all aspects at one place — fuel regional distribution centres in future (e.g. Walmart) to ‘expand’ EV station information, product information, loyalty charging beyond forecourts programme details, pre-order and pre-payment Deploy successfully tested Partner with operators feature, live tracking and advance booking of Prepare for new competition from c- next-generation of fleet vehicles to Partner with automakers to develop EV charging/fuel lanes stores (BWG’s Spar, Musgrave’s technologies at a scale, Centra and the fast-food chains) and cater to their recharging software that ensures their brand of fuel is the priority/default choice of the AV across multiple locations not just traditional fuel retailers or re-fuelling needs Source: KPMG Analy sis © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 40 C. Reinvent to stay relevant

Fuel retailers need to reimagine themselves in the face of current disruption. A two pronged business plan, whereby forecourt retailers continue to focus on fossil fuel but start to pivot towards electric car charging technology is ideal in the short run. They however, need to define a long-term strategy centred around:

Customer Service-based Digital experience offerings solutions

Forecourt retailers who do not future proof themselves, will perish!

Source: KPMG Analy sis

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 41 06. Appendices Appendix I Market Scenario (1/2) Legend: Market CAGR Total number of size (2014-19) sites/outlets Statistics — Forecourt Retail, by Geography (2019) Netherlands : US$2.44 billion UK Canada Germany : US$6.84 billion : (0.34)% : US$3.92 billion : US$14.84 billion : 2,125 : 1.34% : 4.18% : 2.62% : 7,440 China : 8,940 : 14,528 : US$11.14 billion

: 23.26% USA France Italy : 60,558 : US$111.08 billion : US$2.09 billion : US$0.32 billion : 2.76% : (0.38)% : 2.38% : 114,788 M exico : 4,224 : 1,276 Australia : US$1.64 billion Spain : US$5.72 billion

: 5.19% : US$2.73 billion : 3.52% Brazil : 5,619 : 4.09% : 5,268 : US$1.69 billion : 9,868 India : 6.96% : US$0.05 billion

: 8,349 : 7.04% Argentina : 333 : US$0.77 billion Global (2019) : 32.43% Market size*: US$196.6 billion : 1,715 CAGR** (2014–19): 3.82% Total number of sites/outlets: 349,792

Note: *The market size is based on retail value RSP excluding sales tax (current value at fixed exchange rates); **CAGR Cumulative average growth rate; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Global Top 12 Country Global Top 12 Country 2019 Market Share 2024* Market Share

1 Market size: US$111.08 billion 1 Market size: US$125.26 billion

2 Market size: US$14.84 billion 2 Market size: US$17.25 billion

3 Market size: US$11.14 billion 3 Market size: US$17.21 billion

4 Market size: US$6.84 billion 4 Market size: US$7.63 billion

5 Market size: US$5.72 billion 5 Market size: US$6.64 billion

6 Market size: US$3.92 billion 6 Market size: US$4.93 billion 2024 7 Market size: US$2.73 billion 7 Market size: US$3.11 billion

8 Market size: US$2.44 billion 8 Market size: US$2.95 billion

9 Market size: US$2.33 billion 9 Market size: US$2.72 billion

10 Market size: US$2.12 billion 10 Market size: US$2.55 billion

11 Market size: US$2.09 billion 11 Market size: US$2.51 billion

Note: * Forecast data for market size 12 Market size: US$1.86 billion 12 Market size: US$2.47 billion Source: Euromonitor; pre-COVID analy sis

The forecourt retail market in the US is highly fragmented with multiple players offering similar products and services

Forecourt retail market size* (US$ billion) Total number of site/outlets

140.0 125.3 115,600 115,442 119.5 122.4 111.1 113.8 116.6 115,400 120.0 105.3 108.4 115,081 115,131 101.1 103.4 115,200 115,000 96.9 114,919 100.0 115,000 114,769 114,788 114,729 114,800 114,603 80.0 Legend: Legend: 114,600 114,456 60.0 114,304 Forecasted 114,400 f igures Forecasted 114,200 40.0 f igures 114,000 20.0 113,800 0.0 113,600 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Alimentation Couche-Tard Inc 7% Alimentation Couche-Tard Inc 5,950 6% Seven & I Holdings Co Ltd Seven & I Holdings Co Ltd 4,105 Marathon Oil Co 3,913 5% Marathon Oil Co Casey's General Stores Inc 2,202 3% EG Group Ltd 1,595 Murphy USA Inc 1,492 Total: US$111.1 3% Wawa Inc GPM Investments LLC 1,209 billion 2% QuikTrip Corp 804 2% QuikTrip Corp Wawa Inc 604 Sheetz Inc 593 Chevron Corp 303 72% Murphy USA Inc Giant Eagle Inc 203 Meijer Inc 197 Casey's General Stores Inc QuickChek Corp 77 Energy Transfer Equity LP 74 Others 0 2000 4000 6000 8000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Sheetz Inc., EG Group Ltd, GPM Investments LLC, Giant Eagle Inc, Chevron Corp, Meijer Inc., QuickChek Corp, Energy Transfer Equity LP; Market size comprises revenue derived from convenience sales Source: Euromonitor International Ltd 2020; pre-COVID analysis © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 46 Country overview: Germany

The German forecourt retail market is also very fragmented with top five players accounting for nearly 38 percent of the forecourt retail market share

Forecourt retail market size* (US$ billion) Total number of site/outlets

14,740 20 14,800 14,72214,720 17.2 18 16.3 16.7 15.3 15.8 14,52114,530 14,528 16 14.4 14.8 14,600 14,477 13.0 13.2 13.4 13.7 14,398 14 14,400 14,297 12 14,183 Legend: 14,200 10 Legend: 14,054 Forecasted 8 f igures 6 Forecasted 14,000 f igures 4 13,800 2 0 13,600 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019 Royal Dutch Shell Plc 1,925 Royal Dutch Shell Plc British Petroleum Co Plc, The 1,706 11% Total SA 1,145 British Petroleum Co Plc, The Exxon Mobil Corp 946 Exxon Mobil Corp Avia International 884 10% ConocoPhillips Co 808 Total SA Deutscher Raiffeisenverband eV 684 Rewe Group PKN Orlen SA 584 49% Total: US$14.8 8% Rewe Group 529 Avia International billion ENI SpA 456 ConocoPhillips Co Oilinvest (Netherlands) BV Group 408 5% Internationale Spar Centrale BV 405 ENI SpA OMV Tankstellen AG 269 4% Internationale Spar Centrale BV Westfalen AG 263 4% OIL! Tankstellen GmbH & Co KG 227 3% Westfalen AG Q1 Tankstellenvertrieb GmbH & Co KG 200 Others Hellweg Die Profi-Baumärkte GmbH & Co KG 13 2% 2% 2% 0 500 1000 1500 2000 2500 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Deutscher Raiffeisenverband eV, Q1 Tankstellenvertrieb GmbH & Co KG, OIL! Tankstellen GmbH & Co KG, PKN Orlen SA, OMV Tankstellen AG, Oilinv est (Netherlands) BV Group, Hellweg Die Profi-Baumärkte GmbH & Co KG; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 47 Country overview: China

China Petroleum & Chemical Corp is the dominant player in China, holding 67 percent of the market share and having 27,363 outlets

Forecourt retail market size* (US$ billion) Total number of site/outlets

74,036 20 80,000 70,780 17.25 65,00567,732 18 15.96 70,000 60,55862,623 14.70 55,92657,181 58,782 16 13.49 60,000 54,438 14 12.34 49,340 11.14 50,000 12 9.93 Legend: 10 8.16 40,000 Legend: Forecasted 8 30,000 5.07 5.82 f igures 6 Forecasted 3.91 f igures 20,000 4 2 10,000 0 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019 0% 1% China Petroleum & Chemical 1% 8% China Petroleum & Chemical Corp 27,363 Corp

China National Petroleum Corp China National Petroleum Corp 20,153

23% Total: US$11.1 British Petroleum Co Plc, The Royal Dutch Shell Plc 1,644 billion Royal Dutch Shell Plc British Petroleum Co Plc, The 578 67% Total SA Total SA 183 Others 0 10000 20000 30000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

The UK forecourt retail market is very fragmented and is expected to grow at a CAGR of 2.01 percent during the forecast period, to reach US$7.6 billion in 2024 Forecourt retail market size* (US$ billion) Total number of site/outlets

7.8 7.6 7.5 7,700 7.6 7.4 7,627 7,584 7.4 7.2 7,600 7,550 7.0 7,513 7.2 7,485 7.0 6.8 7,500 7,440 6.7 7,429 7,414 6.8 6.6 7,392 Legend: 6.4 6.4 Legend: 7,400 7,355 6.6 6.4 7,303 Forecasted f igures 6.4 Forecasted 7,300 6.2 f igures 6.0 7,200 5.8 5.6 7,100 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2023F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Tesco Plc Internationale Spar Centrale BV 1,203 Tesco Plc 11% 969 Internationale Spar Centrale BV Royal Dutch Shell Plc 455 Wm Morrison Supermarkets Plc 347 8% Marks & Spencer Plc J Sainsbury Plc 297 Royal Dutch Shell Plc Marks & Spencer Plc 290 Rontec LLP 221 7% Co-operative Group Ltd, The Co-operative Group Ltd, The 215 Total: US$6.8 Certas Energy UK Ltd 110 J Sainsbury Plc NISA-Today's (Holdings) Ltd 104 55% billion 5% Wm Morrison Supermarkets Plc John Lewis Partnership Plc 59 Park Garage Group 38 4% Rontec LLP Costcutter Supermarkets Group 31 3% British Petroleum Co Plc, The 29 John Lewis Partnership Plc 2% Walmart Inc 19 NISA-Today's (Holdings) Ltd Gleaner Oils Ltd 13 Musgrave Group Plc 10 *% might not total up to 100% 2% Others owing to rounding 1%1% 0 500 1000 1500

Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Certas Energy UK Ltd, British Petroleum Co Plc, Walmart Inc, Park Garage Group, Musgrave Group Plc, Gleaner Oils Ltd; Market size comprises rev enue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 49 Country overview: Australia

In Australia, Coles Group Ltd and Woolworths Ltd (Australia) account for 45 percent of the forecourt retail market share

Forecourt retail market size* (US$ billion) Total number of site/outlets

6.6 5,800 7.0 6.2 6.4 5,607 5.9 6.0 5.6 5.7 5,600 5,524 6.0 5.3 5.4 5,448 4.8 5.0 5,378 5.0 5,400 5,315 5,231 5,268 5,156 5,180 5,195 4.0 5,200 Legend: Legend: 3.0 4,971 Forecasted f igures Forecasted 5,000 2.0 f igures 4,800 1.0 0.0 4,600 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019 0% 1% Coles Group Ltd 1% 7% Woolworths Ltd (Australia) Coles Group Ltd 714 3% 3% 25% British Petroleum Co Plc, The British Petroleum Co Plc, The 590 Caltex Australia Ltd 543 4% Seven & I Holdings Co Ltd Seven & I Holdings Co Ltd 541 United Petroleum Pty Ltd Woolworths Ltd (Australia) 540 7% Total: US$5.7 Puma Energy International SA United Petroleum Pty Ltd 408 billion Caltex Australia Ltd Puma Energy International SA 270 On The Run Pty Ltd 12% On The Run Pty Ltd 140 Idemitsu Kosan Co Ltd 20% Idemitsu Kosan Co Ltd 49 APCO Service Stations Pty Ltd APCO Service Stations Pty Ltd 22 17% Rasvor Pty Ltd Rasvor Pty Ltd 9 Others 0 500 1000 1500 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

In Canada, the top two players —Alimentation Couche-Tard Inc. and Parkland Fuel Corp — make up for ~50 percent of the forecourt retail market

Forecourt retail market size* (US$ billion) Total number of site/outlets

9,500 9,284 9,312 6.0 9,238 9,074 9,165 4.7 4.9 8,940 5.0 4.5 9,000 8,765 4.1 4.3 3.7 3.8 3.9 4.0 3.6 3.2 3.4 8,500 8,099 8,131 Legend: 3.0 Legend: 7,885 7,956 Forecasted 8,000 f igures 2.0 Forecasted f igures 1.0 7,500

0.0 7,000 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Alimentation Couche-Tard Inc 15% Alimentation Couche-Tard Inc 1,946 Parkland Fuel Corp Royal Dutch Shell Plc 1,317 2% Royal Dutch Shell Plc Suncor Energy Inc 1,195 4% 39% Parkland Fuel Corp 1,013 5% Total: US$3.9 Suncor Energy Inc billion Husky Energy Inc 408 Seven & I Holdings Co Ltd Empire Co Ltd 378 11% Empire Co Ltd Canadian Tire Corp Ltd 301 Seven & I Holdings Co Ltd 219 12% Husky Energy Inc 13% Exxon Mobil Corp 51 Others 0 500 1000 1500 2000 2500 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Repsol YPF Distribuidora SA in Spain is the most dominant player both in terms of market share and the number of outlets

Forecourt retail market size* (US$ billion) Total number of site/outlets

12,000 3.50 3.11 10,42110,546 10,641 2.97 3.04 9,868 10,08510,267 2.82 2.89 9,542 9,637 3.00 2.67 2.73 10,000 9,119 2.47 2.59 8,364 8,664 2.24 2.32 2.50 8,000 2.00 Legend: Legend: 6,000 1.50 Forecasted f igures Forecasted 4,000 1.00 f igures 0.50 2,000

0.00 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Repsol SA Repsol SA 3,130 22% El Corte Inglés SA Galp Energia SGPS SA 510 Galp Energia SGPS SA Carrefour SA 430 Carrefour SA Total: US$2.7 Cepsa Estaciones de Servicio SA 360 Cepsa Estaciones de Servicio SA 54% billion 9% El Corte Inglés SA 350 Disa Peninsula SLU 4% Disa Peninsula SLU 330 British Petroleum Co Plc, The 4% British Petroleum Co Plc, The 170 Internationale Spar Centrale BV 2% Internationale Spar Centrale BV 13 *% might not total up to 2% Others 100% owing to rounding 0.1% 2% 0 500 1000 1500 2000 2500 3000 3500 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

In Netherlands, the top five players account for more than 65 percent of the forecourt retail market

Forecourt retail market size* (US$ billion) Total number of site/outlets

3,000 2.6 2,471 2.55 2,403 2,336 2,500 2,266 2,198 2.6 2.53 2,125 2,074 2,029 2.50 1,987 1,947 1,914 2,000 2.5 2.48 2.47 2.45 2.44 1,500 Legend: 2.5 Legend: 2.40 2.41 Forecasted 2.39 2.39 f igures 2.4 Forecasted 1,000 f igures 2.4 500

2.3 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Royal Dutch Shell Plc Royal Dutch Shell Plc 398 Exxon Mobil Corp 21% 23% Exxon Mobil Corp 303 British Petroleum Co Plc, The 1% Total SA 253 Total SA British Petroleum Co Plc, The 237 2% Total: US$2.4 3% Avia International billion Avia International 137 5% European Forecourt Retail Group SAS 16% European Forecourt Retail… 95 Gulf Oil International 5% Gulf Oil International 61 Oilinvest (Netherlands) BV Group 11% Oilinvest (Netherlands) BV… 46 13% Kuwait Petroleum Corp Kuwait Petroleum Corp 27 Others 0 100 200 300 400 500 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

The top five players hold more than 70 percent of the market share in Switzerland’s forecourt retail market

Forecourt retail market size* (US$ billion) Total number of site/outlets

3.50 2,000 2.95 1,800 3.00 2.82 1496 1518 1542 1561 2.54 2.67 1,600 1422 1431 1438 1449 1457 1477 2.29 2.33 2.42 2.50 2.13 2.18 2.23 1,400 1273 1.84 1,200 2.00 Legend: Legend: 1,000 1.50 Forecasted 800 f igures Forecasted 1.00 f igures 600 0.50 400 200 0.00 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Migros Genossenschaftsbund eG 4% 4% Migros… 307 6% 22% Coop Genossenschaft Coop Genossenschaft 251 British Petroleum Co Plc, The 6% British Petroleum Co Plc, The 158 Avia International ENI SpA 138 fenaco-LANDI Gruppe 119 8% Total: US$2.3 ENI SpA Royal Dutch Shell Plc 119 billion fenaco-LANDI Gruppe Avia International 113 9% 20% Oilinvest (Netherlands) BV Group Oilinvest (Netherlands) BV… 107 Royal Dutch Shell Plc SOCAR Co 44 9% 12% SOCAR Co Internationale Spar Centrale… 31 Others Jubin Frères SA 25 0 100 200 300 400 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include CInternationale Spar CentraleBV, Jubin Frères SA; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

PKN Orlen SA is the dominant player holding 32 percent of the market share in the forecourt retail market of Poland

Forecourt retail market size* (US$ billion) Total number of site/outlets

8,000 3.00 2.72 2.60 7,730 7,751 2.48 7,800 7,652 7,695 2.24 2.36 7,598 2.50 2.12 7,535 1.98 7,600 7,460 2.00 7,284 1.53 1.62 7,400 1.39 1.45 Legend: 1.50 Legend: 7,200 7,103 6,954 Forecasted f igures 1.00 Forecasted 7,000 6,873 f igures 6,800 0.50 6,600 0.00 6,400 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

PKN Orlen SA PKN Orlen SA 1,743

British Petroleum Co Plc, The British Petroleum Co Plc, The 546 32% 32% Royal Dutch Shell Plc Grupa Lotos SA 480 Total: US$2.1 Grupa Lotos SA Royal Dutch Shell Plc 415 billion Alimentation Couche-Tard Inc Alimentation Couche-Tard Inc 268 2% 7% Amic Energy Management GmbH 114 10% Amic Energy Management GmbH 8% 9% Others 3,969 Others 0 1000 2000 3000 4000 5000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

France reported a decline in market size from 2014 to 2019; however, a CAGR of 1.4 percent has been forecasted over 2020-24

Forecourt retail market size* (US$ billion) Total number of site/outlets

2.25 2.23 4,500 4,422 2.19 4,355 2.20 4,400 4,295 2.16 4,274 4,257 4,300 4,224 2.15 2.13 2.13 4,175 2.11 4,200 4,135 2.11 2.11 4,095 Legend: 2.09 2.09 2.09 Legend: 2.10 4,100 4,055 Forecasted 4,016 f igures Forecasted 4,000 2.05 f igures 3,900 2.00 3,800 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Total SA Total SA 1,259 Royal Dutch Shell Plc Exxon Mobil Corp 155 35% 39% Exxon Mobil Corp Total: US$2.1 Royal Dutch Shell Plc 139 billion British Petroleum Co Plc, The British Petroleum Co Plc, The 111 Carrefour SA Carrefour SA 97 1% 4% E Leclerc 4% 8% 9% E Leclerc 11 Others 0 200 400 600 800 1000 1200 1400 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Thailand forecourt retail market is highly consolidated with Seven & I holding 71 percent market share and the highest numberof sites/ outlets

Forecourt retail market size* (US$ billion) Total number of site/outlets

3.00 4,000 3,349 2.51 3,500 3,122 3,232 2.35 2,932 3,024 2.50 2.21 2,756 2,846 1.96 2.08 3,000 2,657 1.80 1.86 2,442 2.00 1.63 2,500 2,217 2,282 1.49 1.36 1.40 Legend: 2,000 1.50 Legend: Forecasted f igures 1.00 Forecasted 1,500 f igures 1,000 0.50 500 0.00 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019 1% 1% 2% 6% Seven & I Holdings Co Ltd Seven & I Holdings Co Ltd 1,621 4% PTT PCL Tesco Plc 273 8% PTT PCL 162 Tesco Plc Big C Supercenter PCL 155 Royal Dutch Shell Plc Royal Dutch Shell Plc 100 8% Total: US$1.9 billion Big C Supercenter PCL Internationale Spar Centrale BV 45 FamilyMart Co Ltd 44 Exxon Mobil Corp 71% Bangchak Petroleum PCL, The 39 Central Group Exxon Mobil Corp 35 Central Group 12 *% total not equal to 100% Others owing to rounding 0 500 1000 1500 2000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include FamilyMart Co Ltd, The Bangchak Petroleum PCL, Internationale Spar Centrale BV; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

In Italy, the market is consolidated with the top four contributing to 92 percent of the forecourt retail market share

Forecourt retail market size* (US$ billion) Total number of site/outlets

1,281 1,282 1,300 1,270 1,276 1,279 1,273 0.34 0.33 0.34 1,262 1,266 0.33 0.33 0.32 0.33 0.32 1,250 0.32 0.31 1,213 0.31 0.31 0.30 1,200 1,181 0.30 0.29 1,152 Legend: Legend: 0.29 0.28 1,150 Forecasted f igures 0.28 Forecasted 0.27 f igures 1,100 0.26 0.25 1,050 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

8% Exxon Mobil Corp Exxon Mobil Corp 480 7%

ENI SpA ENI SpA 360 10% 38% Total: US$0.3 Others 233 billion Oilinvest (Netherlands) BV Group API - Anonima Petroli Italiana SpA 202 API - Anonima Petroli Italiana SpA Oilinvest (Netherlands) BV Group 1 37% Others 0 100 200 300 400 500 600

Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Bharat Petroleum Corp Ltd is the key player in the Indian forecourt retail market with 23 percent market share and the highest number of site/outlets

Forecourt retail market size* (US$ billion) Total number of site/outlets

360 353 0.08 350 0.07 346 0.07 350 342 0.07 0.06 338 0.06 333 0.05 340 0.06 0.05 328 0.05 330 320 0.05 0.04 0.04 315 0.04 0.04 320 0.04 308 Legend: Legend: 310 302 Forecasted 0.03 f igures Forecasted 300 0.02 f igures 290 0.01 280 0.00 270 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Bharat Petroleum Corp Ltd 157 23% Bharat Petroleum Corp Ltd

Total: US$0.05 Indian Oil Corp Ltd 103 6% Indian Oil Corp Ltd billion 71%

Others 73 Others

0 50 100 150 200 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

The Brazilian forecourt market is consolidated, with top four key players contributing to 53 percent of the entire market share

Forecourt retail market size* (US$ billion) Total number of site/outlets

10,000 9,169 8,719 8,889 9,039 3.00 8,349 8,569 9,000 7,900 8,116 2.47 7,438 7,721 2.31 8,000 7,338 2.50 2.13 1.96 7,000 2.00 1.81 1.59 1.62 1.69 6,000 1.45 1.33 5,000 Legend: 1.50 1.21 Legend: 4,000 Forecasted f igures 1.00 Forecasted 3,000 f igures 2,000 0.50 1,000 0.00 0 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

British Petroleum Co Plc, The 22% British Petroleum Co Plc, The 2,548

Royal Dutch Shell Plc Pampa Energia SA 1,369 47% Total: US$1.69 Pampa Energia SA billion 16% Royal Dutch Shell Plc 1,060 AleSat Combustíveis SA

Others AleSat Combustíveis SA 273 12% 3% 0 1000 2000 3000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Fomento Económico Mexicano SAB de CV is the largest player in Mexico in terms of market share and number of outlets

Forecourt retail market size* (US$ billion) Total number of site/outlets

5,750 5,731 5,704 2.50 2.17 2.05 5,700 5,680 1.94 5,659 2.00 1.83 1.64 1.74 5,640 1.56 5,650 5,619 1.40 1.47 1.50 1.27 1.30 5,596 5,600 5,600 5,569 5,577 5,578 Legend: Legend: Forecasted 1.00 f igures Forecasted 5,550 f igures 0.50 5,500

0.00 5,450 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

Fomento Económico Mexicano SAB 14% Fomento Económico Mexicano SAB de CV de CV 2,886

5% Seven & I Holdings Co Ltd Alimentation Couche-Tard Inc 198 7% Total: US$1.64 billion Alimentation Couche-Tard Inc Seven & I Holdings Co Ltd 180

74% Others Organización Soriana SAB de CV 17

0 1000 2000 3000 4000 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor, it does include Organización Soriana SAB de CV; Market size comprises revenue derived from convenience sales only ; Source: Euromonitor International Ltd 2020; pre-COVID analysis

Globally, Argentina recorded the highest CAGR across the globe in 2019 (at 32.4 percent); YPF SA holds half of the forecourt retail market share in the country Forecourt retail market size* (US$ billion) Total number of site/outlets

1,800 1.8 1.58 1,777 1.6 1.44 1,780 1,757 1,759 1.4 1.29 1.14 1,760 1,749 1.2 1,737 1,739 0.96 1,740 1,725 1.0 1,724 1,719 Legend: 0.77 Legend: 1,715 0.8 1,720 1,712 Forecasted 0.59 f igures 0.6 0.42 Forecasted 1,700 0.33 f igures 0.4 0.19 0.24 1,680 0.2 0.0 1,660 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Key players in terms of market share* 2019 % Number of sites/outlets: Only for key players 2019

YPF SA 10% YPF SA 595 10% Royal Dutch Shell Plc Royal Dutch Shell Plc 269

Total: US$0.77 11% 50% Trafigura Argentina SA billion Bridas Corp 212

Bridas Corp Trafigura Argentina SA 160 19% Others 479 *% might not total up to Others 100% owing to rounding 0 200 400 600 800 Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Lekkerland, a German wholesaler launched an innovative store concept at the end of 2016 called the “Frischwerk concept” which was part of the company’s future strategy — Convenience 2020. The Frischwerk concept takes a fresh look at petrol stations and food services in Germany and has been designed taking consumer and supplier feedback on layout, setup, marketing, training of staff. Some of the key findings form these feedback and research were: — Demand for a clear division between two zones, which can be referred to as ‘traditional’ and ‘modern’. Food services and everything related is 'modern', while all that’s related to car care, petrol and cigarettes is 'traditional‘. From an operational point of view there must be two different people working in the two areas clearly linked to each section — A shopper friendly atmosphere was also an important factor — Another critical element was the prices at gas stations in Germany which are often perceived by consumers as too high or the pricing structure is not consistent. So the company developed a pricing model (dynamic pricing) as a recommendation to our customers that also includes the competition in the area around the station (what are others charging) — The company also borrowed the ‘meal deal’ idea (three or four items for a single, good price) which was prevalent in the UK but wasn’t really being done in German petrol stations till 2016 Further the company is also testing a digital screens solution in and outside the stores where they can offer products or promotions depending on different consumer need states

Source: Frischwerk: Lekkerland's innovative store concept for petrol stations, PetrolPLAZA; Lekkerland transforms forecourt experience in Germany with Frischwerk concept, Global Convenience Store Focus

Aspect Description

Objective — The objective of country attractiveness is to understand the potential of growth of the forecourt adjacent services on a country to country basis. Attractiveness is gauged in terms of quantitative parameters around: - Digital adoption index; Source: World Bank (2016, latest available) - Historic growth of convenience store; Source: Euromonitor data - Expected growth in forecourt market; Source: Euromonitor data - Services as a percent of GDP; Source: World Bank latest data (mainly 2018) - Demographics structure; Source: World Bank, Demographic Dividend

Approach — The quantitative factors are assigned weightages according to the possible impact: - Digital adoption index; weightage assigned: 30% - Historic growth of convenience store; weightage assigned: 30% - Expected growth in forecourt market; weightage assigned: 20% - Services as a percent of GDP; weightage assigned: 15% - Demographics structure; weightage assigned: 5%

— Ranks/ratings are assigned to each data point on the scale of 1-23, with 1 being the most attractive and 23 being the least — Calculation of overall ranks/scores - Ratings are multiplied by the weighting value of each factors. Then sum of the weighted scores across all factors gives the total/consolidated score for a player; basis which the overall rank is calculated. The calculation of consolidated score is based on a KPMG proprietary excel tool

Caveats — The data, that is the weightages, is based on KPMG Analysis

— The ranking is linked to the weightages and any changes to the weightages will affect the ranking

Name Headquarter Primary Industry Business Description

Alimentation Canada Food Retail Operates and licenses convenience stores. Its convenience stores offers tobacco products, grocery items, beverages, and fresh food offerings; road Couche-Tard Inc. transportation fuel; and stationary energy, marine fuel, aviation fuel, and chemicals. The company operates its convenience stores chain under various banners, including Circle K, Corner Stone, Couche-Tard, Holiday, Ingo, Mac’s, Re.Store, and Topaz. It is also involved in the sale of lottery tickets, calling cards, gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of ATMs and car wash services.

Amazon.com Inc. US Internet and Direct Engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: (1) Marketing Retail North America, (2) International and (3) Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kind le e-readers, Fire tablets, Fire TVs, and Echo devices. In addition, it offers programs that enable sellers to sell their products on its websites, as well as their own branded websites; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content.

Applegreen Plc Ireland Automotive Retail Operates motorway service areas and petrol filling stations in Ireland, the UK and the US via three segments: (1) Retail Irel and, (2) Retail UK, and (3) Retail USA. The company operates as a roadside convenience food and beverage retailer that sells fuel, food, and other groceries und er its Bakewell brands, as well as other partnered international brands, such as Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii, 7-Eleven, Starbucks, KFC, Pret a Manger, Pizza Express, Waitrose, WH Smith, Harry Ramsden, Tossed and the Ramada and Days Inn hotel.

BP UK Specialized Consumer BP Chargemaster operates a network of electric vehicle charging points. BP Chargemaster was formerly known as Chargemaster Li mited and changed its Chargemaster Services name to BP Chargemaster in August 2018.

BP Plc UK Integrated Oil and Engages in the energy business worldwide. It operates through three segments: (1) Upstream, (2) Downstream, and (3) Rosneft. The Upstream segment is Gas involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of LNG, biogas, power and natural gas liquids (NGLs). The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. It also provides convenie nce retail services to consumers through company-owned and franchised retail sites, as well as other channels, including dealers and jobbers.

Caltex Australia Australia Oil and Gas Refining Engages in purchasing, refining, distributing, selling, and supplying petroleum products in Australia, New Zealand, and Singa pore. It operates through Limited and Marketing Convenience Retail, and Fuels and Infrastructure segments.

Carsley Group UK Automotive Retail Carsley Group operates petrol stations. As of 5 October 2017, Carsley Group operates as a subsidiary of Applegreen Plc.

China Petroleum China Integrated Oil and China Petroleum & Chemical Corporation, an energy and chemical company, engages in oil and gas, and chemical operations in th e People’s Republic of & Chemical Gas China. It operates through five segments: (1) Exploration and Production, (2) Refining, (3) Marketing and Distribution, (4) Chemicals, and (5) Corporate and Corporation Others. It is a subsidiary of China Petrochemical Corporation.

Costa Limited UK Restaurants Operates a chain of coffee shops in the UK and internationally. Offers caffè latte, velvety flat white, classic Americano, ri ch cortado, cappuccino, white & black americano, hot chocolate, and mocha. Operates as a subsidiary of The Coca-Cola Company (Coca-Cola acquired Costa from Whitbread)

Source: Standard & Poor Capital IQ, accessed 28 August 2019

Name Headquarter Primary Industry Business Description

CST Brands Inc. US Automotive Retail Through its subsidiaries, operates as an independent retailer of motor fuel and convenience merchandise items in the US and e astern Canada. It operates through three segments: (1) US Retail, (2) Canadian Retail, and (3) CrossAmerica. The company’s retail operations include sal e of motor fuel at retail sites, commission sites, and cardlocks; food, convenience merchandise items, and services at retail sites; and heating oil to reside ntial customers, as well as heating oil and motor fuel to small commercial customers. Also provides other products and services, including car wash, lottery, money orders, air/water/vacuum services, video and game rentals and access to ATMs.

Delicious Ideas UK Packaged Foods and Manufactures and markets confectionery products. Food Group Meats

Euro Garages UK Automotive Retail Owns and operates petrol station forecourts in the UK. Its forecourts feature convenience stores that sell car care products, groceries (chilled and ambient), Limited newspapers and magazines, sandwiches, and tobacco; fast food outlets; and coffee shops. Euro Garages Limited has strategic pa rtnerships with BP, ESSO, Shell, SPAR, Starbucks, Subway, Greggs and Burger King. Its ultimate parent is EG Group Limited.

Exxon Mobil US Integrated Oil and Explores for and produces crude oil and natural gas in the US, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through (1) Corporation Gas Upstream, (2) Downstream, and (3) Chemical segments. Exxon is also involved in the manufacture, trade, transport, and sale of crude oil, pe troleum products, and other specialty products; and manufactures and markets petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals.

First Utility UK Electric Utilities First Utility Limited, doing business as first:utility, supplies electricity and gas to residential and business customers. T he company was incorporated in 2004 Limited and is based in Warwick, UK. First Utility Limited operates as a subsidiary of The Shell Petroleum Company Limited.

FW Kerridge UK Automotive Retail FW Kerridge Ltd. owns and operates petrol stations. Limited

Golden Cross UK Automotive Retail Operates as service stations providing full vehicle services and petrol pumps. Group Limited

Harv est Energy UK Oil and Gas Refining Harvest Energy Ltd. blends and supplies motor fuels. It supplies road fuels; and fuels and lubricants, such as diesel, bio di esel, gasoil, red diesel, and Limited and Marketing kerosene. Its customers include national supermarket chains, major oil companies, haulage companies, logistics companies, bus and rail operators, utilities providers, local authorities and other government organisations, delivery services, high street retailers, port authorities, and construction companies. It markets and sells its products through dealers.

HKS Retail UK Automotive Retail Owns and operates a chain of fuel filling stations. It provides carwash services, vehicle repair services, services through m ini-super market stores, and Limited convenience experience. The company was founded in 1984 and is based in Leicester, UK with locations in Leicester, Loughborou gh, Coseley, Buckinghamshire, Derbyshire, Surrey, Northampton, Nottinghamshire, Walton-On-Thames, Gosport, and Tividale, UK.

Holiday US Automotive Retail Operates a chain of gasoline stations and convenience stores. Its stores offer gasoline and fuels; and breakfast sandwiches, hams, cheeseburgers, jumbo Stationstores corn dogs, steak burgers and so on. It operates corporately owned stores and franchise stores in the northern tier region of the US, such as Minnesota, Inc. Wisconsin, Michigan, North Dakota, South Dakota, Montana, Wyoming, Idaho, Washington, and Alaska. As of December 2017, it was a subsidiary of Alimentation Couche-Tard Inc.

Source: Standard & Poor Capital IQ, accessed 28 August 2019

Name Headquarter Primary Industry Business Description

International US IT Consulting and IBM is an integrated technology and services operating via five segments: (1) Cognitive Solutions, (2) Global Business Services segment, (3) Technology Business Other Services Services & Cloud Platforms segment, (4) Systems segment and Global Financing. Machines (IBM)

IONITY Germany - IONITY is a joint venture between BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group with Audi and Porsche. Its aims to build a pan- European high-power-charging network for Electric vehicles, to facilitate long-distance travel.

Kwik Chek Food US Food Retail Operates a family of customer service-oriented convenience stores, grocery stores, and quick food operations. It offers home-style meals, gourmet coffee, Stores Inc. brewed tea, grocery items, snack foods, and more

Manor Service UK - As of October 5, 2017, Manor Service Stations Limited operates as a subsidiary of Motor Fuel Group Limited. Stations Limited

Marks and UK Department Stores Operates various retail stores. The company offers protein deli and dairy; produce; ambient and in -store bakery; meals dessert and frozen; and hospitality and Spencer Group ‘Food on the Move’ products. It also provides womenswear, menswear, lingerie, kids wear, and home products; and financial services, including credit cards, Plc current accounts and savings products, insurances, and mortgages, as well as renewable energy services.

Motor Fuel UK Automotive Retail Motor Fuel Group Limited, a forecourt operator, owns and operates petrol stations in the UK. Its petrol stations operate unde r various brands. The firm's petrol Group Limited stations activities include sale of petrol; and operation of shops, as well as other forecourt facilities, including ATM, car wash, vacuum, air and water, liquid petroleum gas, and electricity charge point services.

MRH (GB) UK Automotive Retail Owns and operates petrol service stations with convenience store in the UK. Its store offers breads, milk, eggs, meal deals, rollover hot dogs, coffees, and Limited other deals.

P97 Networks US Data Processing and Develops PetroZone, a mobile payment, e-commerce and digital marketing platform for fuel retailing industry. Its solution enables consumers to have better Inc. Outsourced Services mobile shopping experience, options for lower fuel prices, and opt-in personalised digital offers for in-store purchase. Its platform connects consumers with retail fuelling merchants and convenience stores across a broad partner ecosystem, including oil company payment networks, me rchants, consumer package good companies, automotive companies, and banks.

Repsol SA Spain Integrated Oil and Operates as an integrated energy company worldwide. Its Upstream segment engages in the exploration and development of crude oil and natural gas Gas reserves. Its Downstream segment in involved in refining and petro chemistry; trading and transportation of crude oil and oil products; marketing of oil products, petrochemical, and LPG; the marketing, transport, and regasification of natural gas and LNG; and generation and marketing of electricity

Rontec Roadside UK Automotive Retail Rontec Roadside Retail Limited operates forecourts in England and Wales. The company offers fuel, food -to-go, and other retail brand forecourts. Retail Limited

Roofoods UK Restaurants Roofoods Limited, doing business as Deliveroo, owns and operates an online food delivery platform in the UK. Its platform allowsusers to order food from Limited local restaurants.

Source: Standard & Poor Capital IQ, accessed 28 August 2019

Name Headquarter Primary Industry Business Description

Royal Dutch Netherlands Integrated Oil and Operates as an energy and petrochemical company worldwide. Operates through Integrated Gas, Upstream, and Downstream segments. It explores for, and Shell Plc Gas extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity, carbon-emission rights; and markets and sells liquefied natural gas as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines crude oil and other feed stocks, such as gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitu men, and sulphur; produces and sells petrochemicals; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol.

Sev en & I Japan Food Retail Provides convenience stores, general supermarkets, department stores, restaurants, banks, IT services. It operates in seven b usiness segments. Domestic Holdings Co. Convenience Store segments operates convenience store businesses based on direct management and franchise systems, such as th e operation of 7-Eleven Limited stores in Japan. Overseas Convenience Store segment operates convenience stores, such as 7-Eleven overseas. Superstore segment is a retail business that provides food, daily necessities and other items necessary for daily life. Department Store segment conducts retail busi ness. Finance-Related segment is involved in the banking, credit card business and leasing business. Specialty Store segment operates a retail business that p rovides specialised and distinctive products and services. Others segment is involved in the real estate business.

Sunoco LP US Oil and Gas Storage Together with its subsidiaries, the firm engages in the distribution and retailing of motor fuels in the US. It operates via two segments: (1) Fuel Distribution and and Transportation Marketing (purchases motor fuel from independent refiners and major oil companies and supplies it to independently operated dealer stati ons, distributors and other consumer of motor fuel, and partnership operated stations, as well as to commission agent locations) and (2) All Other segment (operates retail stores offering motor fuel, merchandise, foodservice and other services that include car washes, lottery, ATM, prepaid phone cards and wireless services)

The Kroger Co. US Food Retail Operates as a retailer in the US. The company operates supermarkets, multi -department stores, marketplace stores, and price impact warehouse stores. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centres, fresh se afood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as ge neral merchandise, including apparel, home goods, and toys; and price impact warehouse stores provides grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets; and sell s fuel through fuel centres.

The New Motion Netherlands Specialty Stores Provides smart charging solutions for electric vehicles in Europe and offers charging products for both residential and business locations. It serves private BV users and business in industries, including private homes, apartments, office locations, housing associations, lease drivers, large corporates, municipalities, parking complex, leasing companies, real estate and OEMs. The New Motion BV operates as a subsidiary of Royal Dutch Shell plc.

The SPAR Group South Africa Food Distributors Engages in the wholesale and distribution of goods and services to SPAR grocery stores, build it builders’ merchandise outlet s, SPAR liquor stores, and other Limited retail outlets. It offers food and non-food products under the SPAR brand; cookware, kitchen utensils, appliances, bathroom linens, and accessories under the SPAR Good Living brand; produce and bakery products under the SPAR Freshline brand; pork, lamb, beef, and chicken meat under the SPAR Tender and Tasty brand; medicines and products under the Pharmacy at SPAR brand; and real value for money under the SaveMor brand.

Source: Standard & Poor Capital IQ, accessed 28 August 2019

Name Headquarter Primary Industry Business Description

Waitrose Limited UK Food Retail Waitrose Limited, a food retailer, operates a chain of supermarkets in England, Scotland, and Wales. It sells groceries, such as bakery products, milk, meat, fruits and vegetables, beers, wine and spirits, soft drinks and water, household products, tea and coffee, health and beauty products, baby and child products, and pet care products; home and garden products, including cooking products and kitchenware, dining products and tableware, h ousehold cleaning products, laundry products, candles, newsagents and stamps, office and stationary products, and tights and socks; and flowers and gifts.

Wawa Inc. US Food Retail Owns and operates a chain of convenience retail stores. Its stores offer fresh food, including hoagies and sandwiches, salads and wraps, and snacks, as well as soups, and sides and bowls; coffee and beverages; dairy products, including milk and ice creams; and fuel services. The co mpany also manufactures and supplies Wawa branded beverages to school districts, colleges, universities, hospitals, nursing homes, prominent restaurants, and hotels, as well as produces milk and juice products. In addition, it sells apparel, coffee, gift cards, and novelties/others online.

WM Morrison UK Food Retail Operates retail super stores under the Morrison's brand name in the UK. The company engages in the in -store and online grocery retailing activities. It also Supermarkets supplies eggs; manufactures and distributes fresh food, and morning goods and bread; prepares and supplies seafood; processes fresh meat; invests in, Plc develops, and maintains properties; and offers insurance, leasing, technical testing and analysis, and property partnership services, as well as holds pharmaceutical license. The company operates through 494 supermarkets, as well as various petrol filling stations.

Zynstra Limited UK Application Software Provides hybrid information technology (IT) platform for small and mid-sized businesses. It offers Cloud Managed Servers that are delivered as physical onsite servers that have been pre-staged with IT services, a local private cloud for applications, and Azure cloud storage; and pre-integrated with services, such as Microsoft Office 365. The company also provides SMB IT for organizations with 5 to 250 IT workers on any site; Education I T for small and large schools; Enterprise Branch IT for multi-site and remote offices and branches; and Zynstra Cloud Management Platform, a multi-tier cloud management platform that delivers IT management services. In addition, it offers enterprise-grade hybrid IT-as-a-Service for SMBs, branch offices, education, retail, and industries. Further, the company provides Microsoft Office 365 integration, resilient active directory with single sign on, RDX removable storage, cloud backup and disaster recovery, and support services.

Source: Standard & Poor Capital IQ, accessed 28 August 2019

Market Overview & Competitive Landscape Euromonitor, Fuel Market Review 2018, Forecourt Trader UK; China: 30,000 new petrol stations to open by 2025, Petrol Plaza; BP to boost China retail sites, Oats lrc; Convenience Stores in Switzerland, Euromonitor; Sinopec Annual Report 2018; BP Annual Report 2018; 7&I Annual Report 2018, accessed 20 June 2019; Coronavirus (COVID-19)…responding globally, IGD; 7-Eleven Expands Delivery Footprint; 7-Eleven; German supermarket chain Rewe on lookout for M&A targets: report, Reuters, accessed 26 May 2020

Implications of COVID

Historic slump in global oil prices… Bloomberg; U.S. Energy Information Administration, Oil Market Report - April 2020, accessed 11 May 2020

…is being driven by reduction in road traffic and fuel consumption Coronavirus to cut China’s 1Q fuel demand by 36pc: CNPC, 20 February 2020, Argus; Short-Term Energy Outlook, EIA; What are the impacts of the COVID-19 Pandemic on our Transport Systems, 31 March 2020, ARRB; Australian data sheds new light on COVID-19 transport effects, 8 April 2020, TransportXtra; NEM demand in the time of COVID-19, 9 April 2020, Energy Council; Global energy demand to plunge this year as a result of the biggest shock since the Second World War, 30 April 2020, IEA; Australian Petroleum Statistics, February 2020, Department of Industry, Transport use change, COBR; Here’s how energy demand has changed during the UK's lockdown, 1 April 2020, World Economic Forum; TRAFFIC VOLUME TRENDS, February 2020, US Department of Transportation; Highway traffic is plunging in these US cities amid coronavirus pandemic, 13 March 2020, USA Today, COVID-19 mitigation efforts result in the lowest U.S. petroleum consumpti decades, 23 April 2020, EIA; Decline in US gasoline, jet fuel demand from COVID-19 could linger for years, 13 April 2020, S&P Global, What has the Covid-19 situation done to motorway traffic?, 7 April 2020, TRL; Covid-19 to wipe out 10 million barrels per day of oil demand in 2020, 16 April 2020, The Economic Times; OPINION: Global oil consumption cut by up to a third: Kemp, 16 April 2020; UK Department for Business, Energy, & Industrial Strategy; Germany shows first signs of road fuel demand recovery, 22 April 2020, Argus; Green Shoots Appear in Germany and Italy’s Power Market, 23 April 2020, Bloomberg, Germany switches on power slowly after lockdown, 30 April 2020, The Economic Times; Low U.S. Traffic Levels 'Unprecedented' Amid Coronavirus, 15 April 2020, US News; accessed on 11 May 2020 ; Fact box: COVID-19 lockdowns depress fuel demand worldwide, Reuters; The effect of the COVID-19…on mobility in the Netherlands, TomTom; Before and after COVID-19: Europe's traffic congestion mapped, Here 360; UK road travel falls to 1955 levels as Covid-19 lockdown takes hold, The Guardian accessed on 14 May 2020

What does this mean for fuel and forecourt retailers? Coronavirus (COVID-19) offering retail fuel stations a “stress test” for the future, IHS Market, 21 April 2020; Convenience Retail Industry Pivots for Long-Term COVID-19 Impact, NACS, 12 April 2020; 2000 forecourts take up GripHero's free hand-protection dispenser offer, Forecourt Trader, 30 April 2020; Foodservice distributors project $24 billion loss due to COVID-19, IFDA Online; Meal Kits Make a Comeback, NACS, 5 May 2020; Pandemic Inspires ‘Ethical Consumption’, 7 May 2020; accessed on 14 May 2020

Retail Convenience culture is fuelling forecourt shopping… ACS: The Forecourt Report 2018, Association of Convenience Stores; ACS: Forecourt Stores Investing to Transform Food Offer, ACS; Forecourts lead convenience sector in food- to-go category, Barber Wadlow; Forecourts leading a food-to-go trend, Forecourt Trader; Food-to-go mission less important to forecourts, says report, The Grocer; HIM Forecourt Focus 2017,Forecourt Focus: Convenience Is Overtaking The Pumps, HIM; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 74 Sources (2/5)

Forecourts have become so much more than a petrol station, Talking Retail; Fill up with fuel and food as Budgens at Shell launches in Wellingborough, Northampton shire Telegraph; Our Deli2Go Range, Shell; Shell hires Jamie Oliver in ‘£5m deal to update food offer at service stations, Foodservice Equipment; BP plans to open more M&S.., erpecnews; Rontec Food-to-go, Rontec; Shop’N Drive, Rontec; Applegreen is Forecourt Trader of the Year, Forecourt Trader; Rontec to add 40 more Morrisons stores at its sites, Forecourt Trader; Making the future, Forecourt trader; Applegreen-Bakewell, Anglo Irish; Applegreen has €50m to fuel growth on expansion, Irish Examiner; This is the gas station of the future. Hopefully, the bathrooms are cleaner, Market Watch, accessed June 2019; Forecourt convenience growth set to outpace overall sector, Forecourt Trader; EG Group acquires KFC’s largest franchise in UK and Ireland, Petrol Plaza; Forecourt and Convenience: a marriage made in heaven, Asian Trader; Forecourt convenience growth set to outpace overall sector, Forecourt Trader; Morrisons announces new and expanded wholesale partnerships, Convenience Store; Forecourt c-stores to grow sales by 3.8%, report finds, Talking Retail; ACS: The Forecourt Report 2019, ACS.org, accessed April 2020; Albert Heijn and BP expanding convenience partnership in Netherlands, IGD; Albert Heijn and BP to expand convenience partnership in the Netherlands, Petrol Plaza; Nisa partners with Ascona, The Grocer; accessed 22 May 2020

… and enhancing role of retail experience Fill up with fuel and food as Budgens at Shell launches in Wellingborough, Northampton shire Telegraph; M1 Lisburn Service Area (Applegreen), Wesleyjohnston; Take a look inside new Applegreen M1 service station - without causing traffic chaos, Belfast Telegraph; New look and feel for SPAR Express forecourt stores in Austria, SPAR International; It's All About 'Mojo' for BP's ampm Division, CsNews; Shell Germany and DIFG UK—New European Appetite for Healthy UK Snacks, Pr NewsLink; 7-Eleven Opens Its First Lab Store In The U.S. In Dallas, theshellbyreport; The Modern Forecourt, cstoredecisions; ACS: Forecourt Stores Investing to Transform Food Offer, ACS; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; Giant Made of Sweets and Candy Is A Hit for ampm, CSP Daily; Simply Great Coffee, Couche Tard; Couche-Tard Turns Attention to In-Store Offerings, CS News; Couche-Tard Annual Information form 2019, Couche Tard; Forecourts have become so much more than a petrol station, Talking Retail; Our Deli2Go Range, Shell; Petrol Retail Association Market Review 2018, Petrol Retail Association; Seven-Eleven Japan’s Business Model, 7&I, accessed June 2019; Top honours for retailers nationwide, 2019 Winners, Forecourt Trader; Group Business Strategy, Seven-Eleven; Our private label products, REWE; Rewe Group: 60 second update, IGD; Rewe And Penny Switch To Sustainable Own-Brand Orange Juice, ESM Magazine, accessed 22 April 2020; Woolworths Introduces ‘Basics Box’, Hello Care; Woolworths ramps up online delivery, Woolworths, accessed 26 May 2020

Digitalisation is creating operational efficiencies, Forecourts have become so much more than a petrol station, Talking Retail; Scale to Sale technology can help streamline forecourt operations, CBE; Wawa Brings Digital Integration to C-Stores, NACS; Convenience Store EPoS Systems, CBE; The Forecourt Retail Industry Is Ready For GDPR Right?, Protegrity; What the future of the petrol station looks like, from renewable energies to driverless cars, The Telegraph; EVs and digitisation influence global forecourts market, Smart Energy; Forecourt of the future, SAS; Reinventing a Gas Station as a Hub for Multi-Modal Mobility, MIT Design lab; Market Review 2019, PRA; Kwik Chek Partners With P97 Networks, P97; Digital Transformation Initiative, Oil and Gas Industry, World Economic Forum, accessed June 2019; 7-Eleven Empowers a More Mobile Workforce with Microsoft Cloud Solutions and Devices, PR Newswire; NACS European Convenience Retail Awards 2019 Winners, Global Convenience Store Focus; Convenience Retailers Honored in London, Convenience.org, accessed April 2020

…redefining customer relationship … and helping unlock value from payments KPMG Analysis; Mobile Commerce for Retail Fueling, P97; Reliable and flexible payment for any gas station forecourt, Orpak; LS Forecourt Brochure, LS Retail; PSS 5000 Brochure, Gilbarco; Why You Should Use Pay-at-Pump to Increase Store Traffic, Invenco; Drive sales and traffic in your gas station, LSE Retail; You can now pay for BP fuel with your smartphone, Motoring Research; Jaguar and Shell put mobile into mobile payments with touchscreen in-car fuel payments with PayPal, Internet Retailing; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; Supermarket checkout designed to scan entire shopping basket trailed in London, Evening Standard; © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 75 Sources (3/5)

Shell Eyes Global C-Store Expansion, CSP; Market Review 2019, PRA; BPme; BP launches Bpme, BP; Fill up & Go, Shell; Apple Pay and Google Pay can buy you a Slurpee at 7- Eleven, Engadget; Japan convenience stores plan next generation of self-checkout, Nikkei; Easy Pay, Couche-Tard, accessed June 2019; 7-Eleven introduces mobile checkout in NYC, Retail Dive; Declaration of Plan to Introduce 100 Billion Electronic Tags for Products in Convenience Stores Formulated, METI; Japan moves closer to a reality of unmanned stores after successful RFID trial, accessed April 2020; Pandemic will leave long-term demand for delivery services, ForecourtTrader; 7-Eleven Opens Pop-Up Store for Health Care Workers, CS News; Shell Launches Pay At Pump: In-car Contactless Payment, Shell, May 2020

Adjacent Services Adjacent services are gaining centre-stage… KPMG Analysis; Amazon and Repsol strike parcel pick-up deal, Financial Times; Caltex puts pedal to metal on food convenience strategy, Financial Review; Food Delivery By Deliveroo, Shell UK; One Carwash For All Season, Circle K; Convenience Capitalises on Its “On-the-Go” Advantage through Channel Innovation in Australia, Euromonitor International; The Forecourt Report 2018, ACS, accessed June 2019; BP launches Couchfood™ in collaboration with Uber Eats, BP; Why more of us will order milk from the couch, c-store, February 2020; Heard of couchfood? It’s BP snacks delivered to your door, Out In Canberra; WAWA Catering, WAWA; Spain: Repsol opened 352 Supercor Stop&Go stores in 2019, Petrol Plaza, accessed April 2020; Sinopec selling groceries in touch-free style, IGD; Carrefour…Glovo to Cepsa fuel stations, ERPEC News; Sharing best practice globally key to Shell Retail strategy during pandemic, Global Convenience Store Focus; Moto prepares for June launch of click-and-collect food ordering, Forecourt Trader, accessed 25 May 2020

… especially in established & high growth markets... KPMG Analysis, Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; The road ahead: BP and the mobility future, BP; Mobility 2030, KPMG; Automotive: Bringing the future into focus, KPMG UK; Mobility Ecosystem 2030, Drivemidlands.co.uk; Future of Fuel Stations: None, shopping malls or else?, CarPay Diem; Aral envisions the gas station of the future, Petrol PLAZA; Service stations to be smarter in the future, Motoring News, accessed 20 June 2019; First South Korean Convenience Store Opens in Tehran, Financial Tribune, accessed 21 April 2020

Mobility Global mobility megatrends are transforming the industry... Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; The road ahead: BP and the mobility future, BP; Mobility 2030, KPMG; Automotive: Bringing the future into focus, KPMG UK; Mobility Ecosystem 2030, Fuel retailers in race to future-proof forecourts, Independent.ie; The Connected Car, IHS Markit; 470 Million Connected Vehicles On the Road by 2025, ITSDigest; In the fast lane: how autonomous vehicles are accelerating the development cycle, ITProPortal; UK in pole position to lead autonomous technology race, Autovista Group; Projected autonomous vehicle market penetration worldwide between 2021 and 2030, Statista; Autonomous Vehicle Market Expected to Reach $54.23 Billion,by 2026, Allied Market Research; Global Mobility as a Service (MaaS) Market 2018, Reuters; BP to acquire the UK’s largest electric vehicle charging company, BP; BP buys UK's largest car charging firm Chargemaster, BBC, accessed 20 June 2019

… resulting in emergence of new business models Petrol Forecourt Design, campbellrigg; Fuel retailers in race to future-proof forecourts, Business World; Mobility as a service: The value proposition for the public and our urban systems, ARUP; The Future of the Forecourt: A Vision for 2040, CSP; Future vision: Connected Cars and Fuels & Convenience Retailing, TechUK; IoT Is Becoming Increasingly Important for Convenience & Fuel Retailers, Convenience Store; Data Is Fuelling Forecourt Retail Growth, Protegrity; GDPR, ACS; Will autonomous and electric vehicles kill the © 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 76 Sources (4/5) petrol station?, Imeche.org; EVs and digitisation influence global forecourts market, Smart Energy International; Jacob Schram’s vision of the future of mobility, Petrolplaza; Mobility as a Service (MaaS) Market To Reach USD 372.1 Billion By 2026, Globenewswire, accessed 20 June 2019; Connected Car Market by Technology, Allied Market Research, accessed April 2020

… and increase in collaborations, to boost capabilities Global Electric Vehicle Market, June 2018, Allied Market Research, accessed via EMIS database; Shell opens high power charging park in France, electrive.com; Greenlots announces acquisition by Shell, Greenlots, Shell buys NewMotion charging network in first electric vehicle deal, Reuters, First Utility Becomes Shell Energy Retail Ltd And Switches Customers To 100% Renewable Electricity, Shell; BP buys UK's largest car charging firm Chargemaster, BBC News; Gridserve unveils plans for 100 large-scale charging sites, Forecourt Trader, accessed July 2019; UK's First Electric Forecourt Is Under Construction, Insideevs, accessed March 2020; BP Annual 2019; OMV Petrom Is Using Solar At Filling Stations, Clean Future; Romania: Solar panels …OMV Petrom, Serbia Energy; Fuel-retail chains are visiting Norway to ponder a future when gas stations don’t exist, electrrk; Chevron starts deploying EV charging, electrek; Circle K replaces its fuel station with EV Fast Charging hub in Norway, New Mobility; Couche-Tard Expands Testing of Electric Vehicle Charging in Europe, CS News

Trends toward cleaner fuel… Global Trends toward Cleaner Fuels and Fuel Efficient Vehicles, GFEI; Global Fuel Economy Trends, GFEI; Business Trends: Clean fuels—a global shift to a low-sulfur world, Hydrocarbon Processing; Reducing CO2 emissions from passenger cars, European Commission; Global fuel economy initiative, UN environment; Vehicle Emissions Standards March 2017, wedocs; EPA Sets Tier 3 Motor Vehicle Emission and Fuel Standards, EPA; The Road to Zero, HM Government; Bharat Stage VI norms: Know how they will impact you; https://www.delphi.com/sites/default/files/inline-files/delphi-worldwide-emissions-standards-passenger-cars-light-duty-2016-7.pdf; Limits to improve air quality and health, AA; 2050 Energy Scenarios, KPMG; accessed 20 June 2019

… is changing the alternative fuel landscape…Hence, the fuel-mix of future will be radically different from today Hydrogen: still the fuel of the future?, Chemistry World; Shell Hydrogen Study Energy Of The Future?, Shell; Hydrogen as an Alternative fuel for transportation; Energia News; H2 Mobility website, H2 Mobility; H2 Mobility Managing Director: The future has begun, Gasworld; Norway: Explosion at hydrogen filling station, Electrive, accessed 20 June 2019; Shell plans to replace forecourt with EV-only charging hub, 18 October 2019, Forecourt Trader; Mobility as a Service Market to Generate Revenue Worth $347.6 Billion by 2024: P&S Intelligence, P&S Intelligence via Globalnewswire; Forecourt labels, UKPIA, accessed April 2020

How are these trends shaping forecourt retailing? KPMG Analysis, Forecourt of the future, Circle Brands; Aral sees a future for petrol stations in new report; Autovista Group; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; GRIDSERVE unveils £1 billion ‘Electric Forecourt’ EV infrastructure programme, Current News, Gas Service Stations: The Future of Electric Vehicle Infrastructure, evrater; accessed July 2019; Gridserve EV Forecourt breaks ground in the UK, Electrive, accessed April 2020

How are forecourt retailers responding today? The changing landscape is forcing retailers to adapt …resulting in consolidation, as one of the key ways to maintain market share Forecourt consolidation continues as HKS acquired, UK forecourt consolidation: MFG acquires MRH, IGD Retail Analysis; Prax Group adds HKS to growing forecourt estate, MRH buys fellow Top 50 Indie Chartman Group, Applegreen buys seven sites from Carsley Group, Forecourt Trader; Kroger to sell convenience store business to UK petrol station operator EG Group, Proactive Investors; Consolidation is ‘shaping’ convenience sector, Talking Retail; The UK petrol station market: what’s happening?, Rapleys; How UK forecourt stores are fuelling profits, erpecnews; Couche-Tard Mines Reverse Synergy Opportunities From Holiday Cos. Acquisition, CS News; Couche-Tard reaches deal with CST Brands to boost presence in U.S, Canadian Grocer; Euro Garages acquires 1,000 Esso stations in Germany, PetrolPLAZA; 7-Eleven, Inc. Completes Acquisition of 1,030 Sunoco Stores, 7Eleven Corporate, MFG buys 14 sites from Golden Cross Group; Applegreen completes takeover of Welcome Break, Forecourt Trader; Mergermarket, accessed 9 January 2019; Petrol forecourt giant EG Group in double acquisition, Business Live; MFG To Purchase Forecourt Operator Symonds Retail, MFG; Couche-Tard steps further into cannabis with Fire & Flower stake, BNN Bloomberg, MFG to buy forecourt operator Symonds Retail Talking Retail, Applegreen to acquire 40% stake in US service plaza deal, The Irish Times; 7-Eleven Inc. to Acquire 7-Eleven Stores in Oklahoma, CSP Daily News; England UK: EG Group acquires KFC Franchise from Herbert Group, Petrol World. Com; Couche-Tard Acquires 17 Holiday Stations From Franchisee, CSP; EG Group Completes Cumberland Farms Acquisition, EG Group website; EG Group Completes Acquisition of Cumberland Farms, CS News; EG Group Closes on Cumberland Farms Purchase, CSP Daily News; Following Cumberland Farms Acquisition, EG Group Moving Headquarters to Massachusetts, 5 November 2019, C-store decisions, accessed April 2020

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Tom McEvoy Jackie Hennessy Emer O’Brien Audit Partner Risk Consulting Director Managed Services Director Retail & Manufacturing Retail & Manufacturing KPMG in Ireland KPMG in Ireland KPMG in Ireland T: +353 1 410 2135 T: + 353 1 410 1924 T: + 353 1 700 4171 E: [email protected] E: [email protected] E: [email protected] © 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Ireland. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. If you’ve received this communication directly from KPMG, it is because we hold your name and company details for the purpose of keeping you informed on a range of business issues and the services we provide. If you would like us to delete this information from our records and would prefer not to receive any further updates from us please contact [email protected]. Produced by: KPMG’s Creative Services. Publication Date: Aug 2020. (6460)