Alimentation Couche-tard Inc. · TSX:ATD
Alimentation Couche-tard — Investor Presentation (May 2015)
27 slides from Alimentation Couche-tard's investor presentation, May 2015
Slide 1: Investors Presentation May 2015
May 2015 Investors Presentation
Slide 2: Alimentation Couche-Tard Inc.
Alimentation Couche-Tard Inc. Company Privileged and Confidential May 2015 Investors Presentation 2
Slide 3: Forward-Looking Information and Cautionary Language
Forward-Looking Information and Cautionary Language This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “projected”, “estimate”, “may”
Slide 4: Company Representative Raymond Paré
Company Representative Raymond Paré Vice-President and Chief Financial Officer Tel: (450) 662-6632 ext. 4607 investor.relations@couche-tard.com Company Privileged and Confidential May 2015 Investors Presentation 4
Slide 5: Table of Content
Table of Content 1. Investment Highlights 2. Couche-Tard Today 3. The Pantry Snapshot 4. Capital Structure & Debt Reduction Plan Appendix 1. Historical Industry US Sales 2. Dividend vs Free Cash Flow 3. Adjusted Enterprise Value on EBITDAR vs EPS Company Privileged and Confidential May 2015 Investor
Slide 6: Investment Highlights
Investment Highlights Toke Bool [| Couche-Tard . © o O ‘ATOIL KK
Slide 7: Investment Highlights
Investment Highlights Broad Geographic Footprint with Leading Market Positions • Leading C-store operator in North Superior Disciplined America, Scandinavia and Baltics Product Offerings Management Culture • Powerful banners (Couche-Tard, Circle K, Mac’s, Ingo, and Statoil) continue to • Increasing
Slide 8: Couche-Tard Today
Couche-Tard Today Toke Bool [| Couche-Tard . © o O ‘ATOIL KK
Slide 9: North American Footprint
North American Footprint CENTRAL CANADA QUEBEC EAST AND Corporate stores: 502 ATLANTIC CODO: - Corporate stores: 301 DODO: - Affiliated stores: 183 CODO: - DODO: - Affiliated stores: 12 WESTERN CANADA v Corporate stores: 300 CODO: - DODO: - v QUEBEC WEST Affiliated stores: - Corporate stores: 351 CO
Slide 10: European Footprint
European Footprint NORWAY Corporate stores: 198 CODO: 243 RUSSIA DODO: 46 Corporate stores: 33 inc. automats: 177 CODO: - DODO: - inc. automats: - SWEDEN Corporate stores: 620 CODO: 130 DODO: 24 ESTONIA inc. automats: 472 Corporate stores: 52 CODO: - DODO: - DENMARK inc. automats: 6 Corporate stores
Slide 11: International Presence
International Presence Central / South China America Asia 90 Mexico 269 Japan 3,273 United Arab Emirates 35 Guam 13 Macau Hong Kong 338 25 Honduras Vietnam Philippines 13 93 3 Malaysia 14 Indonesia 471 4,637 licensed Circle K stores in Asia, Mexico, Honduras and U.A.E As of February 1st, 2015. Compa
Slide 12: Couche-Tard as a World Leader
Couche-Tard as a World Leader North Europe LTM (1) The Pantry Total ($ billions) America Pro forma (2) Pro forma Revenue $24.9 $11.3 $36.2 $7.4 $43.6 Contribution 57% 26% 17% 100% Gross Profit $3.5 $1.7 $5.2 $0.9 $6.1 Gross Margin 14.1% 14.9% 14.4% 11.7% 13.9% EBITDA (4) $1.9 $0.3 $2.2 EBITDA Margin
Slide 13: Gross Profit Breakdown
Gross Profit Breakdown By Geography By Product Canada Other 6.1% 13.6% Motor fuel Europe 38.5% 27.8% US 58.6% Merchandise, services and other 55.4% Fuel Gross Margins United States (cents per gallon) 21.72 Europe (cents per litre) 10.81 Canada (CA cents per litre) 6.28 Gross Margins (As a % sales) U
Slide 14: Disciplined Growth and Significant Free Cash Flow
Disciplined Growth and Significant Free Cash Flow Sales Same-store sales Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Merchandise same-store sales US 0.4% 0.8% 0.1% 2.7% 4.5% 3.8% 4.4% 2.8% 2.8% 4.5% Can 0.4% 1.7% 0.9% 0.7% 3.2% 2.2% 1.6% 3.3% 3.0% 3.6% Eur 1.9% 1.
Slide 15: History of Highly Disciplined M&A Approach
History of Highly Disciplined M&A Approach Couche-Tard’s Consistent Acquisition Strategy Dickerson Petroleum Florida Oil Holdings, LLC Garvin oil Groovin Noovin Compac RDK Joint Food Stores Revenue ($) Venture Accel All Star Marketing LLC Winners Sterling Moore Oil Stores Spectrum Store Pump N Shop
Slide 16: Industry Leading Returns
Industry Leading Returns Return on capital employed(1)(2) Current Casey's CST Murphy NACS Grocery Home Drugstores Mass Dollar 2013 Stores Improv. Merchants Stores Industry Average Return on capital employed since 2003 Strong returns even in challenging economic conditions (1) Based on most recent pu
Slide 17: Operational Trademark
Operational Trademark • In-store sales Innovation Differentiation Private and exclusive brands Food Store upgrades Technology Industry consolidation • Gross margin improvement Procurement Price strategies Product loss reductions • Increase efficiency Benchmarking Best practic
Slide 18: Operational Trademark
Operational Trademark Company Privileged and Confidential May 2015 Investors Presentation 18
Slide 19: The Pantry Snapshot
The Pantry Snapshot © STATOIL mK KANGAROO
Slide 20: The Pantry Snapshot
The Pantry Snapshot ● Couche-Tard acquired 100% of The Pantry shares on March 16, 2015 ● Total acquisition price of $1.7 billion including debt assumed ● Fully-funded transaction with our revolving credit facility and cash on-hand ● Immediately and significantly accretive to earnings with free cash
Slide 21: Capital Structure & Debt Reduction Plan
Capital Structure & Debt Reduction Plan
Slide 22: Adj. Net Debt / Adj. EBITDAR
Adj. Net Debt / Adj. EBITDAR Strong Credit Metrics Support Investment Grade Rating Track record of deleveraging after acquisition Company Privileged and Confidential May 2015 Investors Presentation 22
Slide 23: Current Liquidity and Credit Facilities
Current Liquidity and Credit Facilities in M$ As at February 1, 2015 Actual Maturity Canadian Dollar Denominated Senior Unsecured Notes $1,019 Nov 2017 to 2022 US Dollar Denominated Term Revolving Unsecured Operating Credit D (1) $1,976 Dec-17 Other Debt, including finance leases (1) $503 Various De
Slide 24: Appendix
Appendix Historical Industry Sales Dividend vs Free Cash Flow Enterprise Value ratio vs EPS
Slide 25: Resilient and Growing Industry
Resilient and Growing Industry • Industry’s inside sales grow each year, even during recessions U.S. Convenience Stores Industry Sales 700 600 Billions of U.S. Dollars 500 501 492 487 450 385 400 409 406 329 344 300 263 221 181 171 165 200 134 100 93 89 204 195 199 190 182 169 174 164 100 151 132 11
Slide 26: Dividend vs Free Cash Flow
Dividend vs Free Cash Flow Dividend / 10.0 9.0 8.7 50.0 12.3 9.1 7.5 8.5 Free CF (%) Consistent growth more than doubling within 5 years Company Privileged and Confidential May 2015 Investors Presentation 26
Slide 27: Adjusted Enterprise Value on EBITDAR vs CAG EPS
Adjusted Enterprise Value on EBITDAR vs CAG EPS Ratio (x)(1) 2.1 1.5 -0.1 1.2 0.6 -3.5 0.4 Couche-Tard earns shareholders more than competition vs its value. Based on most recent published last 12 months results as of March 10, 2015. ACT’s most recent published results are as of February 1st, 2015 (
Alimentation Couche-Tard — Investor Presentation (May 2015) on 6ix