Alimentation Couche-Tard Inc. · TSX:ATD

Alimentation Couche-Tard — CIBC Retail and Consumer Conference 2011

24 slides from Alimentation Couche-Tard's conference presentation, February 2011

  1. Slide 1: Alimentation Couche-Tard Inc. February 2011

    Alimentation Couche-Tard Inc. February 2011 Company Privileged and Confidential 0

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements The statements set forth in this presentation, which describe Couche-Tard’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as “plan”, “ev

  3. Slide 3: Company Representatives

    Company Representatives Alain Bouchard President and Chief Executive Officer Raymond Paré Vice-President and Chief Financial Officer Company Privileged and Confidential 2

  4. Slide 4: Highlights

    Highlights ● Largest operator in North America in terms of number of Company-operated stores ● Well-recognized banners including Couche-Tard, Circle K and Mac’s ● Proven track record of growth and profitability ● History of successful acquisitions: ¾ Since we have acquired Circle K (1663 stores from

  5. Slide 5: Highlights: Strong balance sheet

    Highlights * ● Strong balance sheet ● Not highly leveraged* ● Net debt/EBITDA of 0.30:1 ● Adjusted net debt/EBITDAR of 2.17:1 ● Access to cash: ● US$600 in revolving credit and cash on hands available for attractive projects ● Ability to raise additional capital for a major project (up to US$1,5 bil

  6. Slide 6: Highlights: EPS growth

    Highlights ACT takes measures to improve its returns and value to shareholders: ● Focus on improving EPS and cash flows EPS Growth CAG 36.0% 2,50 1,98 2,00 1,60 1,29 1,50 0,94 0,94 0,92 1,00 0,75 0,19 0,23 0,30 0,50 0,09 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (E) FY2011 EPS and Net

  7. Slide 7: Company Overview

    Company Overview Company Privileged and Confidential 6

  8. Slide 8: Store Network Highlights

    Company Overview Store Network Highlights Corporate-operated with without Total stores Motor fuel motor fuel United states 2,600 282 2,882 Canada 637 896 1,533 4,415 Affiliated stores United States 925 55 980 Canada 16 493 509 1,489 As of October 10, 2010 Total Network 5,904 Company Privileged and C

  9. Slide 9: Network

    Company Overview Network CENTRAL CANADA Corporate stores: 570 Affiliated stores: 205 WESTERN CANADA v Corporate stores: 289 Affiliated stores: 0 v EASTERN CANADA Corporate stores: 674 Affiliated stores: 304 WEST COAST REGION Corporate stores: 159 Affiliated stores: 314 GREAT LAKES REGION Corporate s

  10. Slide 10: International - 3,814 Licensed Circle K Stores

    Company Overview International ‐ 3,814 Licensed Circle K Stores China 68 Japan 2,900 Mexico 145 Vietnam 10 Macau 20 Guam Hong Kong 13 309 Indonesia 349 As of October 10, 2010 Company Privileged and Confidential 9

  11. Slide 11: Growing store network

    Company Overview Growing ACT’S Network network is 8,000 5.0% CAG 7,000 constantly 6,000 Store network 5,878 5,904 growing 5,000 4,000 4,749 5,095 5,119 5,443 3,000 2,000 +1,155 1,000 - 2006 2007 2008 2009 2010 Q2 2011 Fiscal Year ACT utilizes a discipline acquisition approach: • Wants to pay the rig

  12. Slide 12: History of successful acquisitions

    Company Overview History of successful acquisitions Multiple large, medium and single-store acquisitions FISCAL YEAR 2004 2005 2006 2007 2008 2009 2010 2011 Sterling Compac Stores Food Stores Pump N Groovin Winners Shop Noovin RDK Joint 0 Venture All Star Moore Oil Spectrum Stores CORPORATE STORES 1

  13. Slide 13: Growing fast: sales and motor fuel volume

    Company Overview Growing fast Merchandise and service sales 9.1% CAG 8,000 Sales are growing faster In millions of US dollars 7,000 than the network 6,000 5,000 5,882 5,201 5,416 • ACT keeps the best 4,000 3,000 3,804 4,239 4,617 performing stores 2,000 and divests under- 1,000 - performing stores 2

  14. Slide 14: Growing fast: margin and EBITDA

    Company Overview Growing fast Merchandise and service margin Merchandise and service 3,000 9.2% CAG margin growth is outpacing sales growth despite the mix In millions of US dollars 2,500 2,000 1,500 1,574 1,748 1,801 1,946 change. Key initiatives in 1,415 1,000 500 1,251 foodservice offering, - tec

  15. Slide 15: Financial Data

    Financial Data Company Privileged and Confidential 14

  16. Slide 16: Revenues and margin composition

    Revenues and margin composition Consolidated Revenues by Country Consolidated Revenues by Nature Last 12 months Last 12 months Canada US Merchandise and services Motor fuel 22.3% 34.9% 77.7% 65.1% Consolidated Gross Margin by Country Consolidated Gross Margin by Nature Last 12 months Last 12 months

  17. Slide 17: Create value

    Create value Return on capital employed ACT provides 20,0% 15,0% investors 10,0% 18,2% 15,4% with very 5,0% 8,6% 6,2% 11,4% strong 0,0% ACT Susser Casey's Pantry NACS returns 2009 compared Return on equity to its peers and other 30,0% retail 20,0% channels 10,0% 21,5% 5,6% 18,1% 22,4% 10,8% 0,0% ACT

  18. Slide 18: Performance compared to competition

    Performance compared to competition Net earnings / total revenues ACT’s financial 3,0% performance 2,0% compares 2,1% 0,3% 2,1% very well 1,0% 1,1% 1,0% 0,0% against its ACT Susser Casey's Pantry NACS peers 2009 Based on most recent published last 12 months results as of November 19, 2010. ACT’s mos

  19. Slide 19: Performance compared to competition

    Performance compared to competition Operating, selling, administrative and general expenses as a % of merchandise and service sales 50% 25% 32,48% 42,08% 37,81% 35,63% 36,15% 0% ACT Susser Casey's Pantry NACS 2009 Effeciency improvement (OPEX as a % of merchandise sales) Excludes impact of 34,0% 32,

  20. Slide 20: Our focus

    Our focus Company Privileged and Confidential 19

  21. Slide 21: Our Focus

    Our Focus ‰ In-store sales ¾ Innovation ¾ Differentiation ¾ Food ¾ Store upgrades ¾ Technology ¾ Industry consolidation ‰ Gross margin improvement ¾ Procurement ¾ Price strategies ¾ Product loss reductions ‰ Increase efficiency ¾ Benchmarking ¾ Best practices ‰ People ‰ Forecourt execution Company P

  22. Slide 22: Foodservice offerings

    Our Focus Foodservice offerings Company Privileged and Confidential 21

  23. Slide 23: Internal Growth Initiatives

    Internal Growth Initiatives Food Service Offerings Branded and Proprietary QSRs as well as Other Food Service Offerings (coffee, frozen beverages, sandwiches, etc.) ● Sales and gross margin objectives: ¾ 15% of merchandise sales or 25% of total gross profit margin Company Privileged and Confidential

  24. Slide 24: Contact information

    Contact information Raymond Paré Vice-President and Chief Financial Officer Alimentation Couche-Tard Inc. 4204, Industriel Blvd Laval (Quebec) H7L 0E3 Phone : (450) 662-6632 or (800) 361-2612 *Fax : (450) 662-6633 investor.relations@couche-tard.com Company Privileged and Confidential 23

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