Caseys General Stores, Inc. · NASDAQ:CASY
Caseys General Stores — Investor Day (June 2023)
93 slides from Caseys General Stores's investor day presentation, Jun 27, 2023
Slide 1: Casey's 2023 Investor Day
Casey’s 2023 Investor Day
Slide 2: Forward-Looking Statements and Non-GAAP Measures
The presentation is dated as of June 27, 2023 and speaks as of the date unless otherwise specified. Forward-Looking Statements This presentation contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including th
Slide 3: Today's Speakers
Stephen Bramlage Chief Financial Officer Tom Brennan Chief Merchandising Officer Ena Williams Chief Operating Officer Chad Frazell Chief Human Resources Officer Sanjeev Satturu SVP Chief Information Officer Nathaniel Doddridge VP Fuels Doug Means SVP Supply Chain & Efficiency Kendra Meyer VP Real Es
Slide 4: An Introduction to Casey's
CASEY’ S INVESTOR DAY 2023 An Introduction to Casey’s Darren Rebelez
Slide 5: Casey's footprint and key facts
ND SD WI MN IA NE IN OH IL KY KS MO OK TN AR MI ~$10.0B Total Enterprise Value 2,500+ Locations in 16 States ~710M Guest Transactions per Year ~43,000 Total Team Members Note: Market data, number of locations, transactions, team members as of April 30, 2023 and the FYE April 30, 2023. Average daily
Slide 6: Unique footprint, prepared food, technology, vertical integration, scale
Unique Footprint ~50% of stores in towns of 5K people or fewer Prepared Food Prepared food is a larger % of inside sales mix 5th largest US pizza chain Food sales across all dayparts, with high quality differentiated products and best-in- class margins Advanced Technology Best-in-class Rewards platf
Slide 7: Casey's 50+ year history of success
Casey’s 50+ year history of success AN INTRODUCTION TO CASEY’S 92% top of mind aided awareness Strong and recognizable brand 6 902 units built or acquired in the past 10 years Long-standing track record of unit growth ~$15M donated over the past 3 years Rooted in the communities we serve 6.5M+ rewar
Slide 8: Convenience Store Industry
CASEY’ S INVESTOR DAY 2023 Convenience Store Industry
Slide 9: Features of the evolving convenience store industry
Features of the evolving convenience store industry CONVENIENCE STORE INDUSTRY RESILIENT The C-store industry has shown resiliency throughout economic cycles FRA G MENTED & CONSOLID ATI N G Smaller, single-store operators are challenged – further strengthening opportunities for Casey’s to drive scal
Slide 10: The convenience industry has proven resilient
$0 $80 $160 $240 $320 0 30 60 90 120 150 180 Annual Inside Sales ($B) Annual Fuel Gallons Sold (B) Number of Convenience Stores (000s) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Calendar Year CONVENIENCE ST ORE INDUSTR Y (USA) Number of C
Slide 11: Casey's has proven ratable growth
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 0 500 1,000 1,500 2,000 2,500 3,000 Annual Inside Sales ($M) Annual Fuel Gallons Sold (M) Number of Convenience Stores 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fiscal Year Casey’s h
Slide 12: Long-term EBITDA and EPS growth
$311 $365 $479 $560 $509 $486 $563 $647 $719 $801 $952 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 12 +11.9% EBITD A 2 CA GR Casey’s EBITDA ($M), FY13-FY23 +16.0% DIL U TED EPS CA GR Casey’s diluted EPS FY13-FY23 $2.69 $3.26 $4.62 $5.73 $4.48 $3.81 $5.51 $7.10 $8.38 $9.10 $11.91 2013 2014
Slide 13: The convenience industry is fragmented, but consolidating
13 The convenience industry is fragmented, but consolidating CONVENIENCE STORE INDUSTRY FRA G MENTATION CONSOLID ATI O N 63% 4% 6% 6% 21% 1-10 11-50 51-200 201-500 501+ Ownership Breakout (Number of Stores) US Convenience Store Count1 # of Stores 2022 2020 Unit Change % Change 1-10 94,928 96,963 (2,
Slide 14: Industry challenges
CONVENIENCE STORE INDUSTRY Industry challenges Why it matters? Legacy small format stores are not big enough to put a robust prepared food program in with a kitchen. They struggle to make the investment in food (if size allows) and tech to offset rising cost pressures and declining categories, which
Slide 15: Casey's is positioned to thrive
...and Casey’s is positioned to thrive Casey’s competitive advantages ~75% of Casey’s inside transactions do not include fuel Casey’s private label as a value alternative for guests 300 SKUs that are margin accretive ~120 SKUs that are unique to Casey’s Data-driven insights enable Casey’s to meet gu
Slide 16: Strategic differentiators and industry-leading margins
Strategic investments made in digital and food… …and less reliance on tobacco results in higher inside margin rates. Sources: NACS State of the Industry data (calendar year ended 12/31/2022) and Casey’s 2023 fiscal year ended 4/30/23 results for inside gross margin. Food lift and tobacco mix are sou
Slide 17: Casey's is taking share
35.7% 13.9% 14.8% 3-year % Change 7.3% 7.9% 2-year % Change 11.0% 3.4% 3.3% 1-year % Change SALES REVENUE % CHANGE Casey's Remaining Midwest Convenience Total US Convenience Source: Circana Retail Advantage 17 Casey’s is taking share, as sales growth outperforms US and Midwest convenience 24.2% CONV
Slide 18: Scale is a bigger advantage than in the past
Smaller & single-store operators face higher, more rigid overhead costs per store Casey’s scale protects against macroeconomic risks that affect smaller operators Difficulty absorbing cost pressures on inside store items Centralized procurement and positive supplier relationships to achieve savings
Slide 19: Casey's is well positioned in the c-store industry
INDUSTR Y CASEY’S DIFFERENTIA T O RS Resilient Consistent Growth Strong inside sales CAGR during economic downturns Fragmented & Consolidating Scale to Invest We continue to invest in infrastructure and technology at scale to grow efficiently and effectively Ability to Acquire We have demonstrated a
Slide 20: Evolving Our Strategy
CASEY’ S INVESTOR DAY 2023 Evolving Our Strategy
Slide 21: 2020 Investor Day commitments
During our 2020 Investor Day, we said we were going to… Reinvent the guest experience Contemporize our food proposition, optimize & localize assortment, and deliver compelling experiences Create capacity through efficiencies Drive efficiencies to improve the shape of the business and fund future gro
Slide 22: Select accomplishments
Select Accomplishments Invest in our talent Create capacity through efficiencies Added 354 units & optimized network plan Established standalone M&A team Integrated largest acquisition in company history Strengthened & diversified leadership Added focused development programs Increased community eng
Slide 23: Casey's accomplishments are being recognized
Certified Great Place To Work (2023) 21 America’s Best Loyalty Programs (2022) Food Service Innovator (2022) Casey’s recognized for a gender-balanced board (2021) America’s Most Innovative Companies (2023) Top Women in Convenience Corporate Empowerment Award (2023) Casey’s accomplishments are being
Slide 24: Financial results in excess of Investor Day commitments
- Share price appreciation from 9-Jan-2020 to 1-May-2023 - ROIC is a non-GAAP metric, and we define ROIC as operating profit after taxes (net income, plus net interest expenses, income taxes, tax effected) divided by average invested capital. A reconciliation of ROIC is included in the Appendix. - F
Slide 25: EBITDA growth drivers well-rounded
5.7% Inside same-store sales growth over 3-year period 300+ PL SKUs Private label now comprises 9%+ of units and gross profit 20% Fuel gross profit ($) CAGR over 3-year period 6.5+ Million Digital rewards members ~75% Contracted gallons through centralized fuel procurement …while keeping EBITDA grow
Slide 26: Share price appreciation above the S&P 500
Source: CASY share price, S&P 500 closing value 4/30/12 – 4/28/23 11% 15% S&P 500 Casey's CASEY’S SHARE PRICE VS. S&P 500 Average annual return, 2013-2023 …leading to share price appreciation above the S&P 500 EVOLVING OUR STRATEGY 26
Slide 27: Evolving Our Strategy
E V O L V I N G O U R S T R A T E G Y
Slide 28: FY24-FY26 growth strategy
Casey’s FY24 – FY26 growth strategy is rooted in 3 enterprise objectives, enabled by a strong foundation and team member experience EVOLVING OUR STRATEGY 28 DELIVER TOP QUINTILE 1 EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF
Slide 29: Financial overview
Financial overview FINANCIALS | DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% 29 DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Steve Bramlage Chief Financ
Slide 30: Delivered on Investor Day 2020 targets
Source: Casey’s January 9, 2020 Investor Day Presentation Management Guidance Results EBITDA % growth Store growth Same-store sales Gross profit margin % Operational efficiencies Cash flows 14% EBITDA CAGR 354 new units (1.5%) SS gallons 5.7% SS inside sales (90) bps inside margin +13 CPG OpEx CAGR
Slide 31: Consistent long-term financial performance
Represents FY03-FY23, FY13-FY23, and FY20-FY23 CAGR. See appendix for reconciliation of EBITDA to GAAP net income. 14% EBITDA CAGR 12% EBITDA CAGR 11% EBITDA CAGR 19% DILUTED EPS CAGR 16% DILUTED EPS CAGR 15% DILUTED EPS CAGR 22 CONSECUTIVE YEARS OF POSITIVE INSIDE SAME-STORE SALES 24 CONSECUTIVE YE
Slide 32: Strong balance sheet and financial flexibility
$45 $45 $205 $61 $246 $286 $16 $341 $10 $325 $- $100 $200 $300 $400 $500 $600 $700 $900 $800 $1,000 $1,100 $1,200 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 $850 Amount due, $M Debt Maturities Debt│EBITDA ratio 1.8x LT Target ~2.0x Available liquidity $1.25B Provides significant flexibility L
Slide 33: FY24-FY26 strategic plan outlook
FINANCIALS | DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% FY24 – FY26 strategic plan outlook EBITDA % growth Store growth Same-store sales Gross profit margin % Operational efficiencies Cash flows Management Guidance 8%-10% CAGR through FY2026 Free cash flow ~$1.25B through FY2026 350+ additional sto
Slide 34: Growth algorithm for 8-10% EBITDA growth
EXISTING B U SINESS UNIT GR O WTH Funds Accelerated Growth Accelerate Unit Growth Organic growth/NTI Accelerated M&A Capture M&A synergies Operational Efficiencies Store simplification Supply chain efficiency Optimized network plans Kitchen simplification Centralized procurement Asset protection Gro
Slide 35: Capital allocation priorities
$400M ~9% 10-year dividend growth CAGR Continued focus on growing the business 24 consecutive years of dividend increases Share repurchase authorization 75%+ PP&E spend is growth oriented Disciplined unit growth New store construction and M&A EBITDA and ROIC accretive Maintain adequate financial fle
Slide 36: Capital acquisition and return
FY23 CASEY’S WEIGHTED AVERAGE COST OF CAPITAL ~7.5% FY23 CASY ROIC 11.8% Double-digit ROIC expectation PROJECT RETURN REQUIREMENTS ~15% Expectation of 15% return by steady state in year 5-6 FINANCIALS | DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% Capital acquisition and return 33
Slide 37: Key takeaways
DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% Consistent track record of performance Capital allocation strategy that prioritizes driving value for shareholders Attractive growth outlook Backed by a strong balance sheet with ample liquidity FINANCIALS | DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% Key
Slide 38: Guest insights
Guest insights GUEST INSIGHTS DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Carrie Stojack VP Guest Insights 33
Slide 39: Enable growth through insights
Enable growth through insights GUEST INSIGHTS Business Case Pipeline & Innovation Brand Insight Culture Make sense of broader world view Understand 360 view of consumer + brand relationship Discover, validate & optimize new concepts and products Bridge consumer opportunities with business insight 33
Slide 40: Beer cheese pizza case study
Beer cheese pizza case study GUEST INSIGHTS Business Case Brand Insight Pipeline & Innovation Culture 33
Slide 41: The Casey's guest
GUEST INSIGHTS R U RAL B U T WITH STR ONG WALLET SHARE ~70% of Casey’s rewards guests earn > $50k per year LOYA L Casey’s rewards guests frequent the store more often than retail/QSR competitors SATISFIED Overall satisfaction up over 10% in the past year The Casey’s Guest 33
Slide 42: Guests want
GUEST INSIGHTS Guests want… The guests’ view of people in Casey’s footprint have an aided awareness of Casey’s, higher than any competitor 92% of people aware of Casey’s believe it has brand momentum and things going for it 72% of guests agree Casey’s is a good value for the money 80% + Consistent,
Slide 43: Accelerate the food business
ACCELERATE THE FOOD BUSINESS Accelerate the food business ACCELERATE THE FOOD BUSINESS DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Tom Brennan Chief Merchandising Officer Brad Hag
Slide 44: Success with grocery and general merchandise
Success with Grocery & General Merchandise The Right Assets 1 2 Store infrastructure Optimize store layouts Category space allocation The Right Products Differentiated and exclusive products Private label expansion Assortment optimization 3 44 The Right Processes & Systems Robust joint business plan
Slide 45: Key accomplishments over the past year
Key accomplishments over the past year ACCELERATE THE FOOD BUSINESS Pizza Revamp Innovation Process Limited Time Offers Crust Innovation 45
Slide 46: A closer look at accelerating food
A closer look at accelerating food BRAND MAN A GEMEMT BU I L D NEW CA PABILITY OMNI CHANNEL MARKETING Using Casey’s food service and technology strength to accelerate food Define what’s important, resource and drive it while optimizing the business through merchandising basics 45 Develop and impleme
Slide 47: Execute the basics
Execute the basics Category Roles & Intents 1 2 Leverage business insights to determine the purpose of each category Dedicate our resources and energy towards fewer things bigger Segmented Assortment & Pricing Tier, regionalize and rationalize product assortment Opportunity exists to get more local
Slide 48: Drive efficiency and innovation
Drive efficiency and innovation Upstream Capability 1 2 Use our scale to take non-value add tasks out of the store Keep high quality food available without the strain on the kitchen New Platforms Drive & develop new sales layers Optimize dispensed beverages 3 Product Innovation Daypart optimization
Slide 49: Innovation focus
Innovation focus 4949 Significant opportunities remain for future growth 49 ACCELERATE THE FOOD BUSINESS + Continued crust innovation + New dayparts + Expanded fried foods assortment + Made-to-Order dispensed beverages
Slide 50: Thin crust commercial
Thin crust commercial ACCELERATE THE FOOD BUSINESS 50
Slide 51: We are approaching marketing differently
We are approaching marketing differently SEAMLESS GUEST EXPERIENCE NEW CREA T IVE BRIEF PR OCESS MARKETING T O DRIVE TRAFFIC Start with a human truth and consumer insight Find the right tension to make our marketing idea interesting Zero in on our brand and our guest Omni-channel marketing campaigns
Slide 52: Rewards refresh and enhancements
Saving More Easier to Use Earning Faster The refreshed Rewards enhancements benefit guests by… Driving results because Rewards members: ...include more features to keep our guests highly engaged …while clearly communicating the value proposition …resulting in more members, more active participation,
Slide 53: Break
We will resume in 15 minutes CASEY’ S INVESTOR DAY 2023 Break
Slide 54: Grow the number of units
Grow the number of units GROW THE NUMBER OF UNITS DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION GROW THE NUMBER OF UNITS ACCELERATE THE FOOD BUSINESS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Brian Johnson SVP Investor Relations & Business Developm
Slide 55: A closer look at growing store units
A closer look at growing store units TRACK RECORD OF SUCCESS TWO-PRONGED APPROACH TO UNIT GROWTH SPACE TO GROW Casey’s has a long history of ratable unit growth New build and acquisitions drive growth across markets Casey’s has ample opportunity to expand within its footprint Casey’s boasts a histor
Slide 56: Track record of ratable unit growth
1,531 1,637 1,699 1,749 1,808 1,878 1,931 1,978 2,073 2,146 2,207 2,243 2,452 2,521 44 45 51 48 85 56 60 40 37 89 35 26 28 36 5 22 26 24 18 5 207 47 +354 in 3 years exceeding stated 345 goal 18 20 30 31 21 34 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 54 Actual Growth Last
Slide 57: Two-pronged approach allowed target to be met
Flexible, two-pronged approach allowed target to be met What we committed to… Grow by 345 units Create dedicated M&A team Implement predictive analytics to drive expansion Target mid-sized markets Focus on cost efficiencies …despite unforeseen challenges Global pandemic weeks after commitment o Crea
Slide 58: How M&A adds value to Casey's
IDENTIFYING & V A L U ING A C QUISITION TA R G ETS INTEGRATING INT O THE CASEY’S BRAND 1 - Seller’s trailing 12-month EBITDA based on seller provided financials prior to transaction; pre-Casey’s synergies How M&A adds value to Casey’s 58 Key characteristics of acquisition targets Over-indexed to tob
Slide 59: Steady-state M&A value proposition
New store Acquisition PERFORMANCE INVESTMENT Strong results are driven by substantial EBITDA lift resulting from both inside and outside improvement Full synergy potential typically realized by YR4 All-in investment below new store costs Disciplined approach to EBITDA multiples results in favorable
Slide 60: Revisiting the Buchanan Energy acquisition
- Based on 36 store remodels completed before FY23 - Represents seller-provided CY19 provided financials; pre-Casey’s synergies 3 - Represents Casey’s FY23 results Acquired Buchanan Energy (92 retail locations and a dealer network of 81 stores) in May, 2021 Captured ~$23M pre-tax synergies one year
Slide 61: New tools and capabilities for new unit growth
Market attractiveness Historical + market outlook Competitive landscape Market economics Regulatory Predictive analytics Machine learning AI software Sales predictions Market optimization Continuously evolving New tools and capabilities for new unit growth 61 GROW THE NUMBER OF UNITS
Slide 62: New store builds deliver even stronger performance
Comparison of average per store per month financial results on new stores opened from June 2017-April 2020 versus May 2020-January 2023 (excluding 4 truck stop locations) New store builds deliver even stronger performance Enhancing our offer + data driven decisions Average double digit returns withi
Slide 63: Well positioned for future growth
Well positioned for future growth 63 Casey’s was built on rural communities and there is substantial white space to grow within and outside of the existing footprint Boundaries represent 500 truck driving miles from our three distribution centers. Red dots represent existing Casey’s locations. GROW
Slide 64: Well positioned for future growth: white space
64 Well positioned for future growth Casey’s was built on rural communities and there is substantial white space to grow within and outside of the existing footprint ~75% of towns between 500 and 20,000 in our DC footprint do NOT have Casey’s Boundaries represent 500 truck driving miles from our thr
Slide 65: Flexible store formats
T r a v el center style ~7,800 square foot prototype Offers showers & interior seating Interstate and highway locations with separate diesel island Standar d ~5,000 square foot prototype Suburban areas Increased sales floor space for additional offerings Smaller f o r m a t ~3,200 square foot protot
Slide 66: Projected unit growth
350+ in 3 years FY 24 – FY26 Goal 18 20 30 31 21 34 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 44 45 51 48 85 56 60 40 37 89 35 26 28 36 5 22 26 24 18 5 207 47 Actual Growth Last 3 Years Projected Growth Next 3 Years Projected unit growth 1,531 1,637 1,699 1
Slide 67: Enhance operational efficiency
Enhance operational efficiency ENHANCE OPERATIONAL EFFICIENCY DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Ena Williams Chief Operating Officer Jay Sou
Slide 68: A closer look at enhancing operational efficiency
A closer look at enhancing operational efficiency ENHANCE OPERATIONAL EFFICIENCY STORE SIMPLIFICATION STREAMLINE THE KITCHEN FASTER SERVICE INVENTOR Y OPTIMIZATION Foundational Elem ents STORE MODERNIZATI O N CULTURE OF CONTINUOUS IMPROVEMENT
Slide 69: Store simplification
Store simplification ENHANCE OPERATIONAL EFFICIENCY Voice of our Stores 1 2 3 Store level feedback and input on key initiatives and recommendations Eliminate Complexity Streamline Communications Remove store operations complexity and labor with evolved processes, more contemporary services and techn
Slide 70: Streamline the kitchen
Streamline the kitchen ENHANCE OPERATIONAL EFFICIENCY Efficient Processes & Equipment Conversions 1 2 3 Advance and standardize kitchen processes Evolve kitchen assets to build capacity and enhance food quality Optimize carryout and delivery 69 Explore New Kitchen Technologies Define the Kitchen of
Slide 71: Faster service
Faster service ENHANCE OPERATIONAL EFFICIENCY Self Checkout 1 2 3 Improves speed of service and efficiency 69 Point of Sales Capabilities Integration of AI Systems New Asset Protection software to monitor and grow team member performance Assesses transactions by type and the potential for cash losse
Slide 72: Inventory optimization
Inventory optimization ENHANCE OPERATIONAL EFFICIENCY Order Simplification 1 2 3 Improved merchandise hierarchy and visibility to category and item level information Evolve to a more robust inventory process that simplifies the store ordering process. Right Products in the Right Place Inventory Mana
Slide 73: Continuous improvement at work
SUCCESSES Continue making the store more efficient by simplifying operations at scale to drive significant cost savings Continuous improvement at work ENHANCE OPERATIONAL EFFICIENCY 3rd Party Laundry Services Smart Safe Implementation Order Fulfillment Kitchen Operations Improvements Inventory Manag
Slide 74: Store modernization
Store modernization ENHANCE OPERATIONAL EFFICIENCY Smart Systems Store Edge Computing Team Member Enablement Simplified access Data to drive decisions Collaboration Communication Team member development Reduces complexity and increases system availability Faster software deployments Smart Safes Digi
Slide 75: Culture of continuous improvement
R ESUL TS Culture of continuous improvement ENHANCE OPERATIONAL EFFICIENCY PR OCESSES Organized to win - culture of evolution enabled by enterprise-wide problem solvers Operational approach to kitchen and inventory processes – simplified layout, prep shifts, food scheduling, lean management processe
Slide 76: Enabling foundation: moderated panel
Enabling foundation: moderated panel ENABLING FOUNDATION DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS 69
Slide 77: Today's Panelists
Today’s Panelists ENABLING FOUNDATION Ena Williams Chief Operating Officer Moderator Doug Means SVP Supply Chain & Efficiency Sanjeev Satturu SVP Chief Information Officer Nathaniel Doddridge VP Fuels Chris Boling SVP Store Operations 69
Slide 78: Boost fuel contribution via supply strategies and price optimization
Boost fuel contribution via evolving supply strategies and retail price optimization ENABLING FOUNDATION Strategize for Outsized Success 1 2 3 Distributing majority of fuel through proprietary transportation Leveraging fuel volume to manage down supply costs with advantaged regional refiners Moving
Slide 79: Leveraging self-distribution to maximize service and minimize cost
Leveraging self-distribution to maximize service and minimize cost ENABLING FOUNDATION Inventory Visibility and Management across Entire Supply Chain 1 2 3 Optimize Supply and Delivery Network Intelligently implement Automation at DC’s Enhancing DC resiliency through automation Reducing costs with s
Slide 80: Technology and insights that make our stores smart
Technology and insights that make our stores smart and convenient ENABLING FOUNDATION Achieve Consistent and Scalable Technology 1 2 3 Digitize Store Experiences 69 Leverage Insights Driven Decision- Making Implementing a cloud-based enterprise data platform to provide a one-stop shop for quality da
Slide 81: Store level execution
Store level execution ENABLING FOUNDATION Business Acumen Development of Field Leaders 1 2 3 Simplification of Store Execution Tools to Measure Execution Structured field business review cadence Development forums for financial and business learning Store level action planning 69 Process for priorit
Slide 82: Team member value proposition
Team member value proposition TEAM MEMBER VALUE PROPOSITION DELIVER TOP QUINTILE EBITDA GROWTH OF 8-10% TEAM MEMBER VALUE PROPOSITION ENABLING FOUNDATION ACCELERATE THE FOOD BUSINESS GROW THE NUMBER OF UNITS ENHANCE OPERATIONAL EFFICIENCY GUEST INSIGHTS Chad Frazell Chief Human Resources Officer 69
Slide 83: Key components of team member value proposition
Key components of team member value proposition Provide career growth through career pathways, mentoring and development, and coaching and feedback Support total well-being through compensation and benefits, and recognition Live Casey’s CARES through CARES values and diversity, equity and inclusion
Slide 84: What team members value
What team members value: Flexibility Career Development Health and Well-being Compensation Meaningful Work Casey’s workforce strategy: Build a Team Member Value Proposition that focuses on what matters to our frontline labor pools Innovate on flexible options Invest in building strong managers and a
Slide 85: Our team composition
42% 33% 23% 72% 56% 54% Total Workforce Hourly Staff Professional Staff Extended Leadership Team Senior Leadership Team Board Total Workforce 16% Hourly Staff 16% Professional Staff 11% Extended Leadership Team 27% Senior Leadership Team 50% Board 25% % Racial / Ethnic Minority Representation of Our
Slide 86: Closing Thoughts
Closing Thoughts Darren Rebelez 85
Slide 87: Closing thoughts: industry shifting toward large-scale players
The convenience store industry is shifting in favor of large-scale players Casey’s is differentiated and positioned to thrive beyond industry peers Casey’s has a proven growth algorithm, with clear strategic initiatives to execute Resilient industry protected from key macroeconomic factors Increasin
Slide 88: Casey's private label
Casey’s private label Casey’s has strict private label (PL) requirements to beat national brand offerings on quality, retail price, and penny profits QUALITY LOWER PRICE LARGER MARGINS Casey’s PL quality is as good or better than national brand competitors More profitable to Casey’s than national br
Slide 89: Casey's Management Team Q&A
Casey’s Management Team CASEY’ S INVESTOR DAY 2023 Q&A
Slide 90: Appendix
Appendix CASEY’ S INVESTOR DAY 2023
Slide 91: Reconciliation of Non-GAAP Financial Measures – EBITDA
91 Reconciliation of Non-GAAP Financial Measures – EBITDA APPENDIX Note: figures in thousands FY03 FY04 FY05 FY06 FY07 FY08 FY09 Net income $ 37,355 $ 34,797 $ 35,688 $ 59,787 $ 61,211 $ 84,891 $ 85,690 Interest, net 13,030 12,398 10,739 8,896 11,184 9,792 10,626 Federal and state income taxes 24,29
Slide 92: Reconciliation of Non-GAAP Financial Measures – ROIC
92 Reconciliation of Non-GAAP Financial Measures – ROIC APPENDIX FY19 FY20 FY21 FY22 FY23 Net income $ 263,846 $ 312,900 $ 339,790 $ 446,691 Federal and state income taxes 78,202 94,470 100,938 140,827 Interest, net 53,419 46,679 56,972 51,815 EBIT 395,467 454,049 497,700 639,333 Tax effect1 90,415
Slide 93: Reconciliation of Non-GAAP Financial Measures – Free Cash Flow
93 Reconciliation of Non-GAAP Financial Measures – Free Cash Flow APPENDIX Note: figures in thousands FY21 FY22 FY23 Operating cash flows $ 804,088 $ 788,741 $ 881,951 Purchase of property and equipment (441,252) (326,475) (476,568) Free cash flow 362,836 462,266 405,383