Alimentation Couche-tard Inc. · TSX:ATD
Alimentation Couche-tard — Merger or Acquisition (April 2012)
33 slides from Alimentation Couche-tard's merger presentation, April 2012
Slide 1: Acquisition of Statoil Fuel & Retail ASA
Alimentation Couche-Tard Inc. Acquisition of Statoil Fuel & Retail ASA Alimentation Couche-Tard Inc. to Make Recommended Offer To Acquire Statoil Fuel & Retail ASA for $2.8 Billion April 2012 0
Slide 2: 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 3: Company Representatives
Company Representatives Alain Bouchard President and Chief Executive Officer Raymond Paré Vice-President and Chief Financial Officer 2
Slide 4: SFR Transaction Executive Summary
SFR Transaction Executive Summary Transaction Overview SFR Snapshot ● Couche-Tard to acquire Statoil Fuel ● #1 Scandinavian Convenience and Fuel and Retail ASA (SFR/Oslo Børs) Retailer (“SFR”) ● Long history of >100 years in Scandinavia ● Total acquisition price of $2.8 billion and >20 years in CEE
Slide 5: Couche-Tard Pro Forma Highlights
Couche-Tard Pro Forma Highlights Broad Geographic Footprint with Leading Market Positions Best-in-Class C-Store • Leading C-store operator Superior in North America, Scandinavia and Management Team Eastern Europe Product Offerings • Talented management team with • Powerful banners continue to drive
Slide 6: Table of Contents
Table of Contents Section 1. Couche-Tard Snapshot 2. SFR Acquisition Overview 3. Couche-Tard Pro Forma Highlights 5
Slide 7: Couche-Tard Snapshot
Section 1 Couche-Tard Snapshot 6
Slide 8: Couche-Tard Highlights
Couche-Tard Highlights ● Largest operator in North America in terms of number of corporate-operated stores Network of 4,522 corporate-operated stores and 1,295 affiliated stores Well-recognized banners including Couche-Tard, Circle K and Mac’s Geographically diversified ● Proven track record o
Slide 9: North American Footprint Network
North American Footprint Network CEN T RA L C AN A DA Cor por at e s t or es : 563 A ffi l i at ed s t or es : 188 WEST ERN CA N ADA v C or por at e s t or es : 303 A ffi l i at ed s t or es : 0 v QUEB EC EA ST A ND A T LA NT IC C or por at e s t or es : 341 A ffi l i at ed s t or es : 9 QUEB EC WES
Slide 10: International Presence
International Presence China 75 Mexico 182 Japan 3,072 United Arab Emirates 14 Guam 13 Macau 22 Hong Kong 321 Vietnam 22 Indonesia 417 4,138 licensed Circle K stores in Asia, Mexico and U.A.E As of January 29, 2012 9
Slide 11: Strong and Consistent Financial Performance
Strong and Consistent Financial Performance Sales Same-store sales 7.3% CAGR Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Merchandise same-store sales US 2.4% 2.9% 3.0% 3.2% 4.4% 4.9% 3.9% 3.6% 1.5% 2.5% Can 2.6% 5.2% 4.9% 6.9% 6.6% 1.6% 0.4% -2.1% -0.2% 3.3% Motor
Slide 12: Industry Leading Returns
Industry Leading Returns Return on capital employed(1)(2) 21.8% 19.5% 16.2% 16.6% 17.8% 14.0% 15.4% 13.1% 13.2% 8.2% ACT Susser Casey's Pantry NACS Grocery Home Drugstores Mass Dollar 2010 Stores Improv. Merchants Stores Industry Average Return on capital employed since 2007 17.9% 19.5% 15.2% 16.4%
Slide 13: Strong Operator with Industry Leading Margins
Strong Operator with Industry Leading Margins Net earnings / total revenues 1.9% 1.7% 1.2% 0.9% 0.3% ACT Susser Casey's Pantry NACS 2010 SG&A(1) as a % of merchandise and service sales 42.5% 32.8% 36.2% 34.9% 36.2% ACT Susser Casey's Pantry NACS 2010 Best margins in the industry Based on most recent
Slide 14: Strong Share Price Progression
Strong Share Price Progression Share Price Performance 300 173.7% 250 200 67.8% 150 52.6% 35.2% 100 50 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Convenience Stores Operators(1) S&P 500 Relative Trading Performance Return Convenience Over Last Stores Operators (1) S&P 500 1-month 23.7% 5.1% (2
Slide 15: Resilient and Growing Industry
Resilient and Growing Industry • Industry’s inside sales grow each year, even during recessions U.S. C-Stores Industry Sales U.S. Convenience Stores Industry Sales Inside sales Motor fuel sales 600 500 Billions of U.S. Dollars 400 450 385 409 406 329 344 300 263 221 200 181 171 165 134 100 93 89 100
Slide 16: Our Focus
Our Focus • 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 practices • Growth
Slide 17: Unrivalled Track Record of Successful M&A
Unrivalled Track Record of Successful M&A Couche-Tard’s Consistent Acquisition Strategy Compac ($70mm) Groovin Noovin RDK Joint Food Stores Venture ($18mm) Accel Revenue ($) All Star Marketing LLC Winners Sterling Stores Moore Oil Spectrum Store ($113mm) ($804mm) ($33mm) Pump N Shop ($25mm) 2004 200
Slide 18: Circle K Case Study
Circle K Case Study • Couche-Tard acquired Circle K from Pro ConocoPhillips for $804 million in 2003 Forma • Transformational acquisition Stores (#) 2 393 2 279 4 672 Contribution 51% 49% 100% • Nearly doubled the number of Couche-Tard stores Revenue (bn) $2.3 $4.1 $6.4 • Increased EBITDA by 140% Co
Slide 19: SFR Acquisition Overview
Section 2 SFR Acquisition Overview 18
Slide 20: Transaction Overview
Transaction Overview • Couche-Tard to acquire SFR • #1 Scandinavian Convenience and Fuel Retailer • Total acquisition price of $2.8 billion • NOK 53 per SFR share outstanding • Premium of 52.5% to SFR share closing price on April 17, 2012 • 7.0x Adj. EV/ 2011 EBITDAR(1) • All cash offer supported by
Slide 21: Transaction Highlights
Transaction Highlights • Provides Couche-Tard with expanded geographic footprint, diversification and a European platform for future profitable growth • Leading convenience and fuel retailer in profitable and resilient Scandinavian countries • Powerful and growing presence in high growth markets of
Slide 22: Statoil Fuel & Retail
Statoil Fuel & Retail • Broad network comprised of ~2,300 stations • ~68% are company-operated • 2011 Sales and 2011 reported Adjusted EBITDA of $12.8 billion and $526 million, respectively • More than 8 billion fuel litres sold annually • Convenience offering focused on fresh food • Valuable real e
Slide 23: SFR Operates in Attractive and Resilient Markets
SFR Operates in Attractive and Resilient Markets 2011 GDP per Capita (US$ ‘000) Credit Rating(1) Aaa/AAA • Scandinavian countries have Aaa/AAA demonstrated Aaa/AAA stability in recent Aaa/AA+ years Aaa/AAA 2011 GDP Growth 2011 GDP (US$Bn) 15 • Central & Eastern 29 Europe growth profile presents 16 g
Slide 24: Market Leadership
Market Leadership Market Share(2) Market Store Position Count(1) Fuel C-stores Oslo Norway #1 544 36% 33% Sweden #1 801 31% 39% Denmark #1 394 28% 32% Latvia #1 76 27% 33% Estonia #1 52 19% 39% Lithuania #2 73 17% 21% Poland #5 346 5% 13% * Scandinavia-based operations highlighted in bold generated
Slide 25: SFR Segmented Overview
SFR Segmented Overview 2011 Gross Profits by Product 2011 Reported Adj. EBITDA by Geography(2) Other(1) Central & 21% Eastern Europe Road 9% Transportation Fuel Special 51% Products(3) 3% Convenience Scandinavia 28% 88% $1.7 billion $526 million Nearly 90% of EBITDA from profitable and resilient Sca
Slide 26: History of Strong Financial Performance
History of Strong Financial Performance • Steady growth and strong operational performance • Contribution from both fuel and convenience stores • EBITDA CAGR of 32% since 2008 • Sustainable EBITDA increase from 2009 to 2010 mainly from acquisitions, recovery of fuel margins in Sweden and better pric
Slide 27: Couche-Tard Pro Forma Highlights
Section 3 Couche-Tard Pro Forma Highlights 26
Slide 28: Integration Strategy
Integration Strategy • Apply Couche-Tard’s decentralized business model • SFR to be run as a stand-alone business unit • Retain existing management and talent • Stable and reliable supply via current supplier agreements • Change of control clauses waived for all significant agreements • No significa
Slide 29: Transaction Details
Transaction Details • Acquisition price of $2.8 billion • Adj. EV/ 2011 EBITDAR of 7.0x(1) Fully-diluted Shares Out. 300 million Offer Price/Share NOK 53 Premium (2) 53% Total Equity Consideration $2.8 billion • All-cash transaction • Fully-committed financing • New 3-year $3.2 billion acquisition c
Slide 30: Financial Snapshot
Financial Snapshot • Couche-Tard to become a leading global convenience store operator with pro forma EBITDA of $1.3 billion LTM (1) EBITDA ($ billions) Pro Forma contribution Revenue $21.7 $12.8 $34.5 Contribution 63% 37% 100% 60% Gross Profit $2.9 $1.7 $4.6 Gross Margin 13.2% 13.6% 13.3% EBITDA $0
Slide 31: Pro Forma Gross Margin Breakdown
Pro Forma Gross Margin Breakdown Before SFR Acquisition Pro Forma SFR Acquisition Canada Canada 30.0% 20.1% By Geography US 46.8% US Europe 70.0% 33.1% Motorfuel Motorfuel 25.5% 38.4% By Products Merchandise Merchandise And services And services 74.5% 61.6% Geographic diversification via entry into
Slide 32: Pro Forma Leverage
Pro Forma Leverage • Couche-Tard committed to maintaining a strong balance sheet and sustaining its ongoing growth • Combined company to benefit from robust free cash flow generation • Management anticipates reaching an Adj. Net Debt(1)/EBITDAR ratio of approximately 3.0x within 12 to 18 months afte
Slide 33: Couche-Tard Pro Forma Highlights
Couche-Tard Pro Forma Highlights Broad Geographic Footprint with Leading Market Positions Best-in-Class C-Store • Leading C-store operator Superior in North America, Scandinavia and Management Team Eastern Europe Product Offerings • Talented management team with • Powerful banners continue to drive
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