55 slides from Alimentation Couche-tard's shareholder meeting presentation, Aug 27, 2021
Slide 1: Annual Meeting of Shareholders 2021
ALIMENTATION COUCHE-TARD ANNUAL MEETING OF SHAREHOLDERS 2021
Slide 2: Ready for the Future
READY FOR THE FUTURE Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 2
Slide 3: Chairman and Secretary of the Meeting
CHAIRMAN AND SECRETARY OF THE MEETING ALAIN VALÉRY BOUCHARD ZAMUNER Senior Vice President, Founder and Executive General Counsel Chairman of the Board and Corporate of Directors Secretary Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 3
Slide 4: Meeting Procedure
MEETING PROCEDURE Registered shareholders and duly appointed proxy holders will have The Chairman will present all the limited time to enter their votes in the proposals, which do not need to be virtual meeting platform. Those who seconded. have already voted will be able to change their votes. Regi
Slide 5: Scrutineers: AST Trust Company (Canada)
SCRUTINEERS: AST TRUST COMPANY (CANADA) FRANCINE ISABELLE BEAUSÉJOUR VACHON Relationship Manager Associate Relationship Manager Notice was sent to shareholders registered at the close of business on July 30, 2021. Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 5
Slide 6: Consolidated Financial Statements for Fiscal Year Ended April 25, 2021
CONSOLIDATED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED April 25, 2021 Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 6
Slide 7: Appointment of Auditors
APPOINTMENT OF AUDITORS Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 7
Slide 8: Election of the Members of the Board of Directors
ELECTION OF THE MEMBERS OF THE BOARD OF DIRECTORS The Board of Directors has fixed to fifteen people the number of Directors necessary to enable it to meet its responsibilities for overseeing the management of the Corporation. Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 8
Slide 9: Election of the Members of the Board of Directors
Alain Bouchard Jacques D’Amours Richard Fortin Réal Plourde Brian Hannasch ELECTION OF THE MEMBERS OF THE BOARD OF DIRECTORS Jean Bernier Eric Boyko Karinne Bouchard Janice Fields Mélanie Kau Marie-Josée Lamothe Monique Leroux Daniel Rabinowicz Louis Têtu Louis Vachon Alimentation Couche-Tard 2021 A
Slide 10: Vote on the Board's Approach to Executive Compensation
VOTE ON THE BOARD’S APPROACH TO EXECUTIVE COMPENSATION “ Resolved, on an advisory basis and not to diminish the role and responsibilities of the Board of Directors that the shareholders accept the approach to executive compensation as disclosed in the management proxy circular transmitted in advance
Slide 11: Approve Amended and Restated Stock Incentive Plan
APPROVE AMENDED AND RESTATED STOCK INCENTIVE PLAN To adopt a resolution approving and ratifying the Corporation’s amended and restated Stock Incentive Plan. Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 11
Slide 12: Voting
VOTING 1. Appointment of auditors 2. Election of the members of the Board of Directors 3. Vote on the Board’s approach to executive compensation 4. Vote on amended and restated stock incentive plan Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 12
Slide 13: Results of the Vote
RESULTS OF THE VOTE 1. Board of Directors: ELECTED: Alain Bouchard, Mélanie Kau, Jean Bernier, Karinne Bouchard, Eric Boyko, Jacques D’Amours, Janice L. Fields, Richard Fortin, Brian Hannasch, Marie-Josée Lamothe, Monique F. Leroux, Réal Plourde, Daniel Rabinowicz, Louis Têtu, Louis Vachon 2. Audito
Slide 14: Alain Bouchard
ALAIN BOUCHARD Founder and Executive Chairman of the Board of Directors Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 14
Slide 15: An Extraordinary Year
AN EXTRAORDINARY YEAR — Bravely faced Covid-19 pandemic — Record-breaking financial results — Kept on track with strategic growth — Proudly promoted vaccine efforts globally and contributed to multiple clinics in Quebec — Cautiously optimistic about future beyond the pandemic while monitoring rising
Slide 16: Confidence in Size, Winning Culture, and Strategy
CONFIDENCE IN SIZE, WINNING CULTURE, AND STRATEGY — Special voting rights of founders to expire at end of calendar year — Non-event for Couche-Tard and will be business as usual — Remain fully committed to company’s strategic success and good steward of shareholder’s trust — Size, winning culture, a
Slide 17: A Global Family of Merchants
A GLOBAL FAMILY OF MERCHANTS OUR PEOPLE ~124,000 COUNTRIES & TERRITORIES 26 OUR SITES 7,150 sites 2,111 sites 3,067 sites 1,894 sites UNITED-STATES CANADA EUROPE AND INTL FOOTPRINT ~14,200 OTHER REGIONS Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 17
Slide 18: Great Achievements Over Last Year
GREAT ACHIEVEMENTS OVER LAST YEAR Strong results despite lasting pandemic Record net earnings over $2.7 billion Increased annual dividend Solid share buy back Improved leverage ratio Confidence in future growth trajectory Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 18
Slide 19: Growth Is in Our DNA
GROWTH IS IN OUR DNA — Solid foundation for future investment in organic growth and acquisitions — Continued customary financial discipline to create shareholder value — Entered Asia market with Circle K Hong Kong and strong leadership team — Ready to move forward with future acquisitions at right p
Slide 20: Entrepreneurial Spirit Defines Us
ENTREPRENEURIAL SPIRIT DEFINES US — Pandemic inspired innovation at faster pace improving customer experience — Innovation included gamification, data analytics, and frictionless experiences inside stores and on forecourts — Continued advancement in age- restricted category from lottery partnership
Slide 21: Our Sustainability Journey Takes Next Steps
OUR SUSTAINABILITY JOURNEY TAKES NEXT STEPS — Expanded efforts towards a cleaner and safer business and planet — First in industry to issue green bonds to help finance sustainable projects — Diversity and inclusion added to sustainability ambitions to help create a workplace with equitable pay and r
Slide 22: Thank You for the Support and Trust
THANK YOU FOR THE SUPPORT AND TRUST Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 22
Slide 23: Brian Hannasch
BRIAN HANNASCH President and Chief Executive Officer Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 23
Slide 24: Building Competitive Advantage in Historic Year
BUILDING COMPETITIVE ADVANTAGE IN HISTORIC YEAR Enhanced convenience Record EBITDA offer with fresh food of nearly $5.1 billion and data analytics Strengthened fuel brand, Innovated payment and supply, and trading delivery capacity inside capabilities store and forecourt New growth platform Engaged
Slide 25: Pride and Gratitude During Pandemic
PRIDE AND GRATITUDE DURING PANDEMIC — Health and safety at forefront of all decision making — Stores remained open and essential to customers — Store team members have been frontline heroes — Part of the solution in our communities including 45 million meals donated in North America — Promise of vac
Slide 26: Ready for the Future: Convenience
READY FOR THE FUTURE: CONVENIENCE — Fresh Food, Fast in 1,500 stores at end of year with plans for 2,600 in North America and 500 in Europe in FY22 — Adding self-service and grab and go options in Europe — Large prize in optimizing data analytics locally on store-by-store basis — Localized pricing s
Slide 27: Ready for the Future: Innovation
READY FOR THE FUTURE: INNOVATION — Advancements made in payment and delivery options inside stores and on forecourts — Evaluating curbside pickup and delivery options for future deployment — Fully frictionless store opened in Montreal and several more planned in Arizona with autonomous checkout tech
Slide 28: Ready for the Future: Fuel
READY FOR THE FUTURE: FUEL — Confident customers will continue to rely on Couche-Tard for energy needs — Converted 450 sites to Circle K fuel and added 71 new sites bringing total sites to 2,800 in North America and over 5,000 globally — Partnership with Musket to take advantage of pooled volume pro
Slide 29: Ready for the Future: Mobility
READY FOR THE FUTURE: MOBILITY — 500 station charging points in Norway stations and 300 across European business units at year end — 4,500 home and office charging points in Norway to complement on-site options — Growth in B2B business in Europe including Circle K Pro fuel and charge card platform —
Slide 30: Ready for the Future: Network Growth
READY FOR THE FUTURE: NETWORK GROWTH — Organic network development with new store builds, rebuilds, urban locations, and franchise expansion — Developed plans to grow pipeline with strengthened team and portfolio review — Divested limited number of stores that no longer fit new platforms and layouts
Slide 31: Ready for the Future: Strategic Growth
READY FOR THE FUTURE: STRATEGIC GROWTH — Long-planned entry into dynamic Asian market with Circle K Hong Kong gives platform for growth — Continued focus on U.S. consolidation while open to opportunities for growth in Europe and Canada — Keeping a close eye on adjacent retail and innovation platform
Slide 32: Ready for the Future: Age Restricted
READY FOR THE FUTURE: AGE RESTRICTED — Proud of role as responsible retailer of age-restricted products — Important lever for growth including alcoholic beverages, alternative tobacco products, and lottery — Continue exploring cannabis and related products with dedicated team and resources — Learnin
Slide 33: Ready for the Future: Growing Together
READY FOR THE FUTURE: GROWING TOGETHER — Significant strides in strengthening winning culture during pandemic — Major milestone in participation in annual engagement survey and commitment to company mission — Meaningful action on diversity and inclusion including setting firm leadership expectations
Slide 34: Ready for the Future: Sustainability Journey
READY FOR THE FUTURE: SUSTAINABILITY JOURNEY Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 34
Slide 35: Claude Tessier
CLAUDE TESSIER Chief Financial Officer Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 35
Slide 36: Creating Long-Term Value
in US$ per share in US$ millions 2011 $0.33 2011 2,752 2012 $0.40 2012 2,975 2013 $0.56 Alimentation Couche-Tard 2013 4,607 2014 $0.68 4,998 2014 2015 $0.90 5,268 2015 2016 $1.04 6,082 2016 CAGR 22.1% CAGR 13.9% 2017 $1.11 6,482 2017 Adj. Diluted EPS Total Gross Profit 2018 $1.30 2018 8,112 2019 $1.
Slide 37: Compounded EBITDA 21% Over the Long Term
COMPOUNDED EBITDA 21%* OVER THE LONG TERM $5,061 $4,525 $3,583 $2,980 $2,331 $2,396 $1,876 $1,640 $1,376 $841 $734 $588 $647 $439 $492 $485 $343 $100 $116 $122 $154 $174 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ** 2021 ** In US$ million
Slide 38: 10-Year Performance of Alimentation Couche-Tard Stock
10-YEAR PERFORMANCE OF ALIMENTATION COUCHE-TARD STOCK Note: Stock market performance from August 15, 2011 to August 13, 2021. Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 38
Slide 39: Growing Merchandise Revenues and Profits Organically
in US$ millions 2015 3.9% 2011 6,184 2016 4.6% 2012 6,599 2017 2.0% 2013 7,602 2018 0.8% Alimentation Couche-Tard 2019 4.1% 2014 7,953 Merchandise United States 2020 2.1% 2015 8,276 Same-Store Sales Growth - 2021 5.6% 2016 10,072 2017 10,724 CAGR +9.9% 2018 12,976 2015 2.0% 2019 14,505 Merchandise a
Slide 40: Higher Fuel Gross Margin Despite Volume Declines
in US cents per gallon in millions of gallons 2015 21.74 2011 4,195 2016 20.15 2012 4,613 2017 18.56 6,945 2013 Alimentation Couche-Tard 2018 19.39 2014 7,626 2019 22.38 2015 8,135 Margin - United States Road Transportation Fuel 2020 29.62 2016 10,502 2021 35.28 2017 11,793 CAGR +11.8% Fuel Volume S
Slide 41: Long-Term Opex Growth Below Inflation Rate
LONG-TERM OPEX GROWTH BELOW INFLATION RATE Adj. SG&A Expense Growth Y/Y 3.7% 2.5% 2.1% 1.9% 1.7% 2.0% 1.5% 0.2% 1.3% average 0.8% -0.9% -1.2% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Since the start of the pandemic, we have adjusted expenses to better align our business with the decrea
Slide 42: Net Earnings Higher by 23% Year-over-Year
NET EARNINGS HIGHER BY 23% YEAR-OVER-YEAR Adj. Net Earnings 2,716 in US$ millions CAGR +21.8% 2,216 1,874 1,472 1,256 1,186 +23% 1,018 445 377 Y/Y 766 621 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Strong organic growth combined with good cost control allowed us to generate record profit
Slide 43: Generating Record Free Cash Flow
GENERATING RECORD FREE CASH FLOW Aiming to deploy 35% to 40% of EBITDA towards capital expenditures 5,061 41% 39% 39% 38% 4,525 34% 39% 32% in US$ millions 30% 32% 31% 3,583 24% 2,980 2,396 2,331 2,299 2,043 1,876 1,844 1,640 1,376 404 383 1,269 984 884 866 889 734 841 614 2011 2012 2013 2014 2015 2
Slide 44: Increasing Return of Profits
INCREASING RETURN OF PROFITS Dividend per Share Dividend $33.25 CAGR +26.5% payments $33.25 $26.50 in CA$ per share > $388 million $22.50 $9.50 $18.50 $17.38 $6.80 $5.00 $4.58 $13.38 +25% $3.17 Y/Y Stock buybacks > $1.063 billion 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Increased the q
Slide 45: Healthy Balance Sheet and Declining Leverage Ratio
HEALTHY BALANCE SHEET AND DECLINING LEVERAGE RATIO Strong organic growth Leverage Ratio Access to 3.13 ~ $5.5 billion 2.29 in liquidities 1.54 1.32 Issued 30-year $350 million debut green bonds 2018 2019 2020 2021 Important decreases in leverage over the past three years Note: The leverage ratio for
Slide 46: Clear Strategy for Capital Allocation
CLEAR STRATEGY FOR CAPITAL ALLOCATION Prioritize re-investment in business 35 - 40% of EBITDA invested in: — Network Development: ~35% — Commercial Programs: ~30% — Stay in Business: ~25% — Emerging Business and Innovation: ~10% Maintain strong balance sheet to support compelling acquisition opportu
Slide 47: Getting More Out of Our Assets
GETTING MORE OUT OF OUR ASSETS Return on Capital Employed We have repeatedly 19.2% 19.0% proven our ability 18.1% 16.2% 15.9% 15.8% to increase our ROCE 15.0% 14.1% 13.3% following the 12.0% 11.0% integration of large acquisitions 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Strong operati
Slide 48: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Europe and Other United States Canada Merchandise Regions Same-Store Sales Growth -0.2% +5.9% -9.6% Europe and Other Road Transportation Fuel United States Canada Regions Same-Store Volume Growth 11.8% 6.3% 10.4% Adj. SG&A Adj. EBITDA Adj. Diluted EPS Growth in Expenses Other Key
Slide 49: Well Positioned for Growth Opportunities
WELL POSITIONED FOR GROWTH OPPORTUNITIES Fiscal Year 2021 Incremental Return on Leverage Ratio Balance Sheet Capital Employed 1.32 Capacity 15.9% > $10 billion We believe it is our duty to optimize what we can control in order to be well positioned when opportunities arise. Alimentation Couche-Tard
Slide 50: Progress on Our 5-Year Plan – Three Years In
PROGRESS ON OUR 5-YEAR PLAN – THREE YEARS IN Rebalancing of our growth profile Added nearly $2.1 billion1 in adjusted over the long term EBITDA after three years Historical Projected Organic 30% Acquisitions Organic 40% 100% Acquisitions Organic 70% 60% 1 Including approximately 420 millions $ relat
Slide 51: Confident to Hit Double Again FY23 Strategic Goal
CONFIDENT TO HIT DOUBLE AGAIN FY23 STRATEGIC GOAL EBITDA Billions ** Strong momentum $7.0 $7.0 Already with key initiatives $6.3 $3.29 billion with potential $6.0 $6.0 in capital spent since $1.2 of up to $1.0 to $1.4b FY18 in FY2023 $5.0 $5.0 $4.0 $4.0 $3.0 $3.0 $4.9 $5.1 Base organic growth Favora
Slide 52: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “projected”, “estimate”, “may”, “anticipate”, “believe”
Slide 53: Non-IFRS Measures and Classification Changes
NON-IFRS MEASURES AND CLASSIFICATION CHANGES To provide more information for evaluating the Corporation’s performance, the financial information included in our financial documents and this presentation contains certain data that are not performance measures under IFRS (“non-IFRS measures”), which a
Slide 54: Question Period
QUESTION PERIOD Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 54
Slide 55: Ready for the Future
READY FOR THE FUTURE Alimentation Couche-Tard 2021 Annual Meeting of Shareholders 55