Alimentation Couche-tard Inc. · TSX:ATD
Alimentation Couche-tard — Investor Day (October 2023)
126 slides from Alimentation Couche-tard's investor day presentation, October 2023
Slide 1: 2023 ACT Analyst and Investor Conference
2023 ACT Analyst and Investor Conference is @) ol inge |
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation and the accompanying oral presentation (“the presentation”) may constitute forward looking statements within the meaning of securities laws of Canada, including Couche-Tard’s financial outlook and related EBITDA ambition. Any stateme
Slide 3: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 4: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 5: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 6: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 7: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 8: Non-IFRS Measures
Non-IFRS Measures 2023 ACT Analyst and Investor Conference
Slide 9: Opening Remarks
Opening Remarks Brian Hannasch President & CEO 2023 ACT Analyst and Investor Conference
Slide 10: Welcome to Grand Canyon BU
Welcome to Grand Canyon BU 2023 ACT Analyst and Investor Conference
Slide 11: Our Executive Leadership Team
Our Executive Leadership Team Brian Hannasch Alex Miller Kevin Lewis Ina Strand Filipe Da Silva Ed Dzadovsky Hans-Olav Høidahl Suzanne Poirier President and Chief Operating Officer Chief Growth Officer Chief People Officer Chief Financial Officer Chief Technology EVP, Operations, SVP, Operations Chi
Slide 12: Meet Today's Featured Speakers
Meet Today's Featured Speakers Brian Hannasch Alex Miller Filipe Da Silva Louise Warner Niall Anderton Hans-Olav Høidahl President and Chief Operating Officer Chief Financial Officer SVP, Global Fuels SVP, Operations EVP, Operations, Chief Executive Officer Europe Kevin Lewis Ed Dzadovsky Ina Strand
Slide 13: Your Roadmap for the Day
Your Roadmap for the Day Speaker Minutes Beginning Ending Opening Remarks Brian Hannasch 5 minutes 8:00 AM 8:05 AM Strategic Overview Brian Hannasch & Filipe Da Silva 25 minutes 8:05 AM 8:30 AM Winning Offer Alex Miller 20 minutes 8:30 AM 8:50 AM Winning Fuel Louise Warner 20 minutes 8:50 AM 9:10 AM
Slide 14: Strategic Overview
Strategic Overview Brian Hannasch President & CEO Filipe Da Silva CFO 2023 ACT Analyst and Investor Conference
Slide 15: A Storied History of Entrepreneurship & Dynamic Growth
A Storied History of Entrepreneurship & Dynamic Growth Alain Bouchard, 2001 2012 2016 2020 2022 Jacques D’Amours, Entry into U.S. Expansion into Europe Expansion in Ireland & Canada Grow into Asia Started EV journey in NA Richard Fortin, Acquired Bigfoot stores Acquired Statoil Fuel & Retail, Acquir
Slide 16: Spanning Continents and Bridging Markets
Spanning Continents and Bridging Markets OUR SITES 25 COUNTRIES TOTAL 14,421 UNITED-STATES 7,055 CANADA 2,184 EUROPE AND OTHER REGIONS1 3,098 INTERNATIONAL2 2,084 Core network International licensees Note: Store count as of July 23, 2023. Includes 986 automats 1 Europe and Other Regions store count
Slide 17: Global Retailer in Fuel and Convenience
Global Retailer in Fuel and Convenience ~14,400 stores globally ~4,800 sites offering Fresh Food, Fast ~8.5 million customers served per day ~35 million gallons of fuel sold per day ~6,400 sites offering Circle K Fuel ~128,000 employees Note: All figures as of April 30, 2023, unless otherwise noted
Slide 18: Our Vision and Our Mission
Our Vision and Our Mission To become the world’s preferred Our Vision destination for convenience and mobility. To make our customers’ lives a little Our Mission easier every day. 2023 ACT Analyst and Investor Conference
Slide 19: The Dynamic Momentum of Convenience
The Dynamic Momentum of Convenience United States Canada Europe $326.4 $9.4 $260.9 Revenues in billions USD Revenues in billions USD Revenues in billions USD $8.1 $286.5 $228.1 2022 2027 2022 2027 2022 2027 Source: Nielsen IQ 1 5-year CAGR % 2023 ACT Analyst and Investor Conference
Slide 20: Fragmented U.S. Market Provides Consolidation Opportunities
Fragmented U.S. Market Provides Consolidation Opportunities Chain Size Single Stores Chain Stores 2006 2022 145,119 150,174 Total stores Total stores 175,000 150,000 500+ 21% 57,315 57,031 56,836 56,476 57,792 57,612 56,226 55,401 58,078 54,917 59,751 54,526 58,690 55,611 55,162 54,492 55,308 125,00
Slide 21: Double Again
Double Again 2023 ACT Analyst and Investor Conference
Slide 22: The Journey to 'Double Again': Our Roadmap Realized
The Journey to 'Double Again’: Our Roadmap Realized Contribution Range ($ in millions) Incremental Contribution vs FY2018 FY2023 Target1 Benefits Realized Category Low High Network Development N.A. $320 $500 Cost Optimization $350 $400 Fuel Initiatives $100 $200 Merchandise Assortment $30 $40 Mercha
Slide 23: Resulting in a Cash Generation Powerhouse
Resulting in a Cash Generation Powerhouse Net Earnings EBITDA1 Net CapEx1 FCF1 $5,762 $3,091 $2,378 $1,542 $1,376 $614 $573 $457 FY2013 FY2023 FY2013 FY2023 FY2013 FY2023 FY2013 FY2023 1 Please refer to the “Non-IFRS Measures” section of this presentation for additional information on performance me
Slide 24: 'Double Again' Strategy Delivered Strong Execution & Shareholder Returns
‘Double Again’ Strategy Delivered Strong Execution & Shareholder Returns in US$ millions FY2018 FY2019 FY2020 FY2021 FY2022 FY20231 5-year CAGR Total Revenues $51,394 $59,118 $54,132 $45,760 $62,810 $71,857 8.7% Total Gross Profit3 $8,112 $9,195 $9,644 $10,115 $11,005 $12,052 10.4% EBITDA3 $2,980 $3
Slide 25: The Road Ahead: Our 5-Year Strategy
The Road Ahead: Our 5-Year Strategy • In FY2018, we launched 'Double Again,' our ACTIVATE EASY CHAIN OF ONE 5-year strategy with 5 lighthouses for global SIMPLIFY! growth. • We set various doubling goals, including doubling EBITDA. • As we closed FY2023, we hit our 'Double Again' strategic goal with
Slide 26: The Lighthouses Guiding Our Voyage to A Stronger Core And New Growth
The Lighthouses Guiding Our Voyage to A Stronger Core And New Growth Winning Offer Winning Fuel Winning the Customer Winning Growth NTIs, R&R, RELO Win in Food B2C value proposition Build fans through loyalty M&A Own Thirst B2B value proposition Digital experience TotalEnergies Private Brands Fuel s
Slide 27: ACT – A Compelling Investment Opportunity
ACT – A Compelling Investment Opportunity Mastering the Customer Journey Untapped organic growth and Offering Sustainability of fuel gross margins Advantaged Fuel Gross Margins Low-Cost Operator; Generating synergies1 between Financial discipline & cost efficiencies 30% to 60% of the pre-closing EBI
Slide 28: Investing for Tomorrow
Investing for Tomorrow Winning Offer Winning Fuel Winning the Customer Winning Growth The Foundation 2023 ACT Analyst and Investor Conference
Slide 29: Winning Offer
Winning Offer Win in Food Own Thirst Private Brands Alex Miller COO 2023 ACT Analyst and Investor Conference
Slide 30: Win in Food
Winning Offer Win in Food 1 Win in Food Focus Area Win in Food & Own Thirst • Convenience food market is > $700B across North America & Europe 1 The opportunity • 59% of fast-food customers consider purchasing a meal from a c-store2 • Expand share of stomach • Fresh Food, Fast in ~5,000 sites global
Slide 31: Win in Food – Revenue and Gross Profit Profile
Win in Food – Revenue and Gross Profit1 Profile Actual Forecast Revenues $ 62% 5-year CAGR 43% → 10% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Gross Profit1,2 $ 84% 19% 5-year CAGR → 13% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 1 Please refer to the “Non-IFRS Measures” section of this presentation for
Slide 32: Win in Food – Expansion Roadmap
Win in Food – Expansion Roadmap FY2028 Ambition ~150 to 200 million in EBITDA1 Key Strategic Priorities Same – Store Revenue Contribution 1. Expand Fresh Food, Fast 2. Improve store operations & profitability 3. Optimize supply chain 4. Boost brand awareness and trial tastings 5. Upgrade and diversi
Slide 33: Win in Food Through Food Innovation, Value & Execution
Win in Food Through Food Innovation, Value & Execution 2023 ACT Analyst and Investor Conference
Slide 34: Own Thirst
Winning Offer Own Thirst 1 Own Thirst • #1 reason customers visit us and growing The opportunity • We service multiple thirst occasions across competitive channels • Recent progress Expanded capacity with more than 3,000 sites installed with new cooler solution • Consumer recognition as one stop for
Slide 35: Own Thirst – Revenue and Gross Profit Profile
Own Thirst– Revenue and Gross Profit1 Profile Actual Forecast Revenues $ 30% 8% 5-year CAGR → 5% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Gross Profit1,2 $ 33% 10% 5-year CAGR → 6% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 1 Please refer to the “Non-IFRS Measures” section of this presentation for addit
Slide 36: Own Thirst – Targeted Programs
Own Thirst – Targeted Programs FY2030 Ambition 100% of our packaging will be recyclable or reusable Packaged Cold / Frozen Alcohol Hot Dispensed Beverages Dispensed • Differentiate through Frequency • Customized products at the • Reinvigorate both Hot and • Elevate cold/frozen dispensed Club, exclus
Slide 37: 'Thirst Stop' campaign aims to double market share
'Thirst Stop' campaign aims to double market share in 'Own Thirst' initiative FY2028 Ambition ~250 million in EBITDA1 Thirst Stop campaign spans 360° Value levers across execution • ‘Circle K is a stop for everyone’ through marketing assets tailored to different markets, people, and beverage product
Slide 38: Private Brands
Private Brands 1 Winning Offer Private Brands • The opportunity Boost wallet share and profit by optimizing distribution, growing product lines, and entering new categories • Merged global beverage teams into a single "Thirst Team" Recent progress for unified strategy and scale. • Current sales pene
Slide 39: Private Brands – Revenue and Gross Profit Profile
Private Brands – Revenue and Gross Profit1 Profile Actual Forecast Revenues $ 102% 57% 5-year CAGR → 15% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Gross Profit1,2 $ 107% 60% 5-year CAGR → 16% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 1 Please refer to the “Non-IFRS Measures” section of this presentation
Slide 40: Private Brands – Seizing Unparalleled Opportunities
Private Brands – Seizing Unparalleled Opportunities FY2028 Ambition ~120 million in EBITDA1 Current State Opportunity • Looking to launch ~110 new products this year • Inflation pushing customers to value • 250 - 300 current products across our stores • Lead in private brands across all markets • Ap
Slide 41: Winning Offer $0.5 – $0.6B
Winning Offer $0.5 – $0.6B Winning Offer Winning Offer in EBITDA1 Win in Food Own Thirst Private Brands 1 Please refer to the ''Non-IFRS Measures'' section of this presentation for additional information on performance measures not defined by IFRS. More specifically, this slide should be read in con
Slide 42: Winning Fuel
Winning Fuel B2C value proposition B2B value proposition Fuel supply chain Louise Warner SVP, Global Fuels 2023 ACT Analyst and Investor Conference
Slide 43: Circle K Fuel – Strengthened Network and Value Chain
Circle K Fuel – Strengthened Network and Value Chain Fuel Gallons Sold1 US Fuel CPG1,4 13.5 billion 47.5 Stores offering fuel / Our Fleet % of total network2,3 ~600 trucks, ~10,800 / ~88% ~1,100 drivers Circle K Fuel Branded Stores2 Number of B2B customers >60 million transactions ~6,400 per year 1
Slide 44: Circle K Fuel – A Strong Track Record of Impressive Performance
Circle K Fuel – A Strong Track Record of Impressive Performance USA Europe Canada RTF Gross profit1 is >200% higher 1,800 across the last 10 years, outpacing store growth of ~70% 1,600 We have delivered on our promise of >$300m Fuel Gross Profit (US$ millions) 1,400 • Growing Circle K fuel brand upl
Slide 45: The Future of Mobility: Navigating Transportation Demand Trends
The Future of Mobility: Navigating Transportation Demand Trends Vehicle age and car parc continues to grow alongside EV Fuel demand is influenced by car ownership trends, impacted sales, impacting pace of transition by vehicle reliability and inflation 2023 ACT Analyst and Investor Conference
Slide 46: The Future of Mobility: Navigating Transportation Demand Trends
The Future of Mobility: Navigating Transportation Demand Trends Demand for transport energy is expected to continue to grow, China and Europe expected to continue to lead EV adoption with vehicle efficiency continuing as the largest impact on traditional fuel use growth 2023 ACT Analyst and Investor
Slide 47: US RTF Performance – Understanding The Fundamentals
US RTF Performance – Understanding The Fundamentals 50 1.45 40.0 47.5 45 +3.9 43.6 1.40 36.0 US RTF Gross Margin1 (cpg) 1.35 40 US RTF Gross Margin1 (cpg) CPI (2009 base year) 32.0 1.30 35 1.25 28.0 30 1.20 24.0 25 1.15 20 20.0 14.5 1.10 15 +1.4 1.05 16.0 13.1 10 1.00 12.0 FY2009 FY2010 FY2011 FY201
Slide 48: Leveraging Scale Advantages
Leveraging Scale Advantages ACT perspective on industry margins • Macro-economic trends persist, margins rising with business costs ACT will continue to outperform industry • Outcomes for market participants will differ based on location of • Advantaged geographies and locations networks and company
Slide 49: Circle K Fuel – Our Customer Promise
Circle K Fuel – Our Customer Promise Focus Area Gain Share in Fuel Fast & Easy Everyday value Location & Quality Anchored by our Circle K Brand 2023 ACT Analyst and Investor Conference
Slide 50: Circle K Fuel – Brand Provides Visibility & Consistency
Circle K Fuel – Brand Provides Visibility & Consistency Projected We have established strong brand presence with >4,200 rebranded stores 1 as Circle K fuel in North America, bringing greater familiarity for customers and ability to control both our B2C and B2B offers 1 All of our stores operating un
Slide 51: B2C – Delivering on our Customer Promise
B2C – Delivering on Winning Fuel our Customer Promise 1 B2C value proposition Achievements FY24+ Initiatives • National Fuel Days and events • Ongoing surprise and delight celebrations • First US fuel marketing campaign • Direct relationships through Inner Circle and Extra programs • Forecourt first
Slide 52: B2B – Circle K Fuel Enables Future Opportunity with Enterprises
B2B – Circle K Fuel Enables Future 1 Winning Fuel Opportunity with Enterprises B2B value proposition US Fleet size Global scale leveraging Europe capability 340 and US Growth opportunity 320 Population 300 280 Drivers • Direct relationships with Business customers a key 260 strength in our Europe bu
Slide 53: B2B – Circle K Fuel Enables Future Opportunity with Enterprises
B2B – Circle K Fuel Enables Future Opportunity with Enterprises FY24+ Initiatives US growth • Upside by driving awareness of Circle K network and offer • Direct relationships and industry-leading customer service, including focus on driver experience in store • Targeted truck-friendly locations (~80
Slide 54: Fuel Supply Chain – Enabling Outperformance
Fuel Supply Chain – 1 Winning Fuel Enabling Outperformance Fuel Supply Chain Value through scale and targeted control FY24+ Initiatives • One of the largest independent fuel supply chains in the • Continue to expand flexibility in sourcing relationships and world, enabled by the Circle K fuel brands
Slide 55: Winning Fuel $0.4 – $0.6B
Winning Fuel $0.4 – $0.6B Winning Fuel in EBITDA1 B2C value proposition B2B value proposition Fuel supply chain 1 Please refer to the “Non-IFRS Measures” section of this presentation for additional information on performance measures not defined by IFRS. More specifically, this slide should be read
Slide 56: Break
Break Break 2023 ACT Analyst and Investor Conference
Slide 57: Winning the Customer
Winning the Customer Build fans through loyalty Digital experience Operations First Kevin Lewis CGO Alex Miller COO 2023 ACT Analyst and Investor Conference
Slide 58: Elevating the Brand: A Blueprint for Market Leadership
Elevating the Brand: A Blueprint for Market Leadership Building upon Focusing on key Driving Differentiation our physical footprint categories and occasions and Scale Winning the Customer Winning Fuel Winning the Future Operational excellence B2C value proposition Private Brands THE BEDROCK Fit to S
Slide 59: Loyalty - Inner Circle
Loyalty - Inner Circle 1 Winning the Customer Build fans through loyalty 2023 ACT Analyst and Investor Conference
Slide 60: Our Membership Programs Bring “Easy” to Life
Our Membership Programs Bring “Easy” to Life For consumers For ACT ✓ Benefits across the entire offer 1 Acquire valuable customer data Value (Fuel, Merchandise and Services) to deliver insights, prioritize customers and personalize experiences ✓ Tiered value 2 Migrate high-margin customers by captur
Slide 61: Data and Personalization Powering New Experiences
Data and Personalization Powering New Experiences Current offer Where We Are Headed! Value US Europe • Competitor B • Competitor A • Competitor C • Competitor E • Competitor D Ease 2023 ACT Analyst and Investor Conference
Slide 62: Orchestrating Touchpoints for Frictionless Connectivity
Orchestrating Touchpoints for Frictionless Connectivity Pervasive across the customer journey Unifying our face to the customer SMS B2B Pin Pad Mobile Gaming Fuel Dispenser App EV EV Subscription programs Smart Checkout Web Category Email Clubs LIFT 2023 ACT Analyst and Investor Conference
Slide 63: Accelerated Rollout Fueled by Promising Early Successes
Accelerated Rollout Fueled by Promising Early Successes FY2028 Ambition ~200 million in EBITDA1 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 1H FY25 United States ~400 stores ~1,900 stores ~3,000 stores ~4,000 stores Europe ~1,000 stores ~1,400 stores ~2,600 stores 1 Please refer to the ''Non-IFRS Measures'' sec
Slide 64: A View Into Our Present Future
A View Into Winning the Customer Our Present Future 1 Digital Experience Focus Area Digital Acceleration 2023 ACT Analyst and Investor Conference
Slide 65: LIFT: A Unique Sales and Media Platform
LIFT: A Unique Sales and Media Platform • Proprietary infrastructure • Walk up and personalized offers • Interactive consumer and associate- facing screens 2023 ACT Analyst and Investor Conference
Slide 66: LIFT: Material Business Impact
LIFT: Material Business Impact Current State Action • Nearly 600 Million offers in the past 12 months • ~100M attachment sales • Expanding to all European markets • ~150 per store per day • Exploring opportunities with TotalEnergies • More than 15% conversion rate • Platform for broader media networ
Slide 67: Leveraging our scale: our global mobile app
Leveraging our scale: our global mobile app Single Infrastructure, Global Presence Strong Consumer Adoption • Nearly 2 million downloads in the US • Age-verified user base • Roughly 15% use app daily • EUR app rolling out as of mid-August 2023 ACT Analyst and Investor Conference
Slide 68: The Engine of Enablement
The Engine of Enablement GMAP is our primary channel for loyalty enrollment and user Boosting engagement experience and positive feedback Locating Nearest Inner Circle store Member-only Delivery of Rewards offers (signup, personalized, Easy and category specific) identification Club Status and tier
Slide 69: Data and Analytics To Power the Business
Data and Analytics To Power the Business A global setup with three nodes enabling D&A A global and distributed delivery model will allow us to extract different locations’ talent and cost benefits • Industry-leading capability • 150+ professionals • Close vendor cooperation • Data as an asset Global
Slide 70: Data and Analytics To Power the Business: Examples
Data and Analytics To Power the Business: Examples Fuels micro-markets Localized pricing Business opportunity: Analytically determine Business opportunity: Recommend pricing at the competitors by site and use it to inform fuel pricing site level based on aligned category roles and local decisions ch
Slide 71: Operations First
Winning the Customer Operations First 1 Operations First Focus Area Fast, Friendly & In-Stock People Customers People-Friendly, safe and engaged teams Making life easier with a great experience Our goal is to increase: Our goal is to improve: • Retention • Customer wait time • Engagement • Store cle
Slide 72: Fast Friendly, In-Stock
Fast Friendly, In-Stock Fast, Friendly, In-stock Operations Excellence Store Tasking Inventory Management (Food execution, Cleanliness, Customer Satisfaction) (On-Shelf Availability, Working Capital Savings) New Technology Store Process & Procedure (Faster checkout, Planogram Execution) (On-Shelf Av
Slide 73: Tech-Driven Customer Experience Enhancement
Tech-Driven Customer Experience Enhancement Intelligent Scheduling Gig Workers Smart Checkout • Task-based allocation • Improved in stock and cleanliness • Fast customer experience • On the phone, where employees • Labor flexibility, better coverage • Leading customer NPS want it (Net Promoter Score
Slide 74: Easy Office: Streamlining Store-Level Admin
Easy Office: Streamlining Store-Level Admin Through Procedure Optimization & Tech Adoption Start Today Goal FY22 FY25 73 admin hours FY23 FY24 47 admin hours 38 admin hours ~50% reduction Achievements Future Goals • Introduced New Store Safes • Evolve Point of Sale Systems • Expanded Electronically
Slide 75: Inventory Management – Optimization
Inventory Management – Optimization Objectives Forecasting & Replenishment Implement an AI/ML-driven, integrated, built-for-purpose inventory management solution that: • Optimizes inventory levels • Reduces out-of-stocks Space Supply Chain Planning & • Increases effectiveness of merchandising Manage
Slide 76: Winning Customer $0.2 – $0.4B
Winning Customer $0.2 – $0.4B Winning the Customer in EBITDA1 Build fans through loyalty Digital experience Operations First 1 Please refer to the ''Non-IFRS Measures'' section of this presentation for additional information on performance measures not defined by IFRS. More specifically, this slide
Slide 77: The Foundation (Panel Discussion)
The Foundation (Panel Discussion) Ina Strand CPO Ed Dzadovsky CTO Niall Anderton SVP, Operations 2023 ACT Analyst and Investor Conference
Slide 78: The Foundation
The Foundation The Foundation The Foundation Fortified Fundamentals Customer-centric team Responsible Retailer Fit to Serve Supply Chain Automation Data and analytics Fit to Serve 2023 ACT Analyst and Investor Conference
Slide 79: Customer-Centric Team
Customer-Centric Team Applicant numbers Turnover Development US Turnover Candidate Flow – NA Applications going up numbers coming down +40.4% +44.2% +29.1% Q3-CY2020 Q3-CY2021 Q3-CY2022 Q3-CY2023 Hire right as we lean into future of labor 2023 ACT Analyst and Investor Conference
Slide 80: Customer-Centric Team // Train to win
Customer-Centric Team // Train to win FY2030 Ambition Zero Harm for people, customers, employees and For new employees to gain the right skills and training to succeed at our suppliers stores and to keep them throughout the critical first 30 days: CIRCLE, our sales & service standard, reinforced to
Slide 81: Customer-Centric Team // Engage through culture & values
Customer-Centric Team // FY2030 Engage through culture & values Ambition Equitable representation, opportunities and pay 2023 ACT Analyst and Investor Conference
Slide 82: ACT A Responsible Retailer – ESG Ambitions
ACT A Responsible Retailer – ESG Ambitions 10% greater 100% of our than global packaging will legislation on be recyclable renewable fuel or reusable Zero Harm for 30% of our sites people, to be carbon customers, neutral employees and suppliers Equitable representation, opportunities and pay 2023 AC
Slide 83: ACT A Responsible Retailer
ACT A Responsible Retailer ✓ Fuel: EV charging in Europe and N. America, renewable fuel expansion attracts new customers ✓ Energy: Lower consumption in Europe, Energy Management System in 3,000 N. American locations ✓ Packaging and waste: 40M single-use cups eliminated, food waste converted to incom
Slide 84: Fortified Fundamentals
Fortified Fundamentals • Modernize: Skill refresh, process improvement, new capabilities. • Automate: Minimize low-value tasks, focus on strategic work. • Hyperscale: Global platforms for quick, scalable solutions. Modernize, Automate, Hyperscale is the strategy to enable portfolio of tech solutions
Slide 85: Fortified Fundamentals
Fortified Fundamentals Updating ways Modernizing Global Strategically Enabling massive of working, processes, Retail Systems sourcing and leveraging scale with proprietary and tools to drive value automation platforms Agile Tool Streamline Point Payments of Sale Deployment Next Gen Quality Engineeri
Slide 86: Pursuing Ambitious Operating Cost Model
Pursuing Ambitious Operating Cost Model Focus Area Lowest Cost Operator Fit to Serve represents the next phase of cost optimization, extending throughout the entire organization 2023 ACT Analyst and Investor Conference
Slide 87: Building A World Class Cost Structure For Agility – Fit to Serve
Building A World Class Cost FY2028 Structure For Agility – Fit to Serve FY2028 Ambition + Ambition $350mm - $400mm $800mm of of cash and cash EBITDA4 equivalents generation7 5 6 1 2 3 1 Changes in3 NWC Total Balance Sheet 1 COGS refers to cost of sales, excluding depreciation, amortization and impai
Slide 88: Merch COGS / Goods Not For Resale
Merch COGS1 / Goods Not For Resale Merch COGS Goods Not for Resale • Leverage global scale / enhance margin • Leverage scale globally to reduce per unit spend • Drive customer-led negotiations • Prioritize major cost areas: • Enhance by-market decision with data • B2B and B2C electronic • Rethink pr
Slide 89: G&A / Store Ops / Fuel COGS Controllables
G&A / Store Ops / Fuel COGS1 Controllables Fuel General & Administrative Store Ops COGS1 Expenses Controllables • Enhance coordination between • Intensify efforts to simplify business units and functional operations and deliver on our • Optimize forecourt spending teams to eliminate duplication cust
Slide 90: Capital Expenditure / Changes in Net Working Capital
Capital Expenditure1 / Changes in Net Working Capital2 Capital Expenditure1 Changes in Net Working Capital2 • Increase new store construction momentum • Optimize working capital and free up cash by improving build efficiencies and reducing • Leverage traditional levers lead times • Win/win AP struct
Slide 91: Fit To Serve - Where We Stand
Fit To Serve - Where We Stand Seven executive sponsored Formal governance and Benefits realized; value captured workstreams activated, each appropriate oversight in place on both P&L and Balance Sheet with functional owners and items specific financial targets 2023 ACT Analyst and Investor Conferenc
Slide 92: $0.8B in EBITDA
The Foundation The Foundation The Foundation Fortified Fundamentals Customer-centric team Responsible Retailer Fit to Serve Supply Chain Automation Data and analytics Fit to Serve $0.8B in EBITDA1 1 Please refer to the ''Non-IFRS Measures'' section of this presentation for additional information on
Slide 93: Customer Star – Training Strategy and Results
Customer Star – Training Strategy and Results Exceptional customer Upselling while meeting 1 2 service: The ACT Way customer needs Transforming our sales & service approach with the Promoting our Managing challenging power of reaching our 3 loyalty program 4 customer situations people globally 90 %
Slide 94: Break
Break Break 2023 ACT Analyst and Investor Conference
Slide 95: Winning Growth
Winning Growth NTIs, R&R, RELO M&A TotalEnergies E-mobility Aaron Brooks SVP, Real Estate Filipe Da Silva CFO Hans-Olav Høidahl EVP, Europe Operations 2023 ACT Analyst and Investor Conference
Slide 96: Growth Model – Disciplined, Strategic and Ambitious
Growth Model – Disciplined, Winning Growth Strategic and Ambitious 1 NTIs, R&R, RELO • Fragmented industry where scale matters • Ability to leverage scale and operating model to all forms of growth • Strong balance sheet and organizational ability to execute growth at any scale Large-Scale Regional
Slide 97: New Store (Development) Growth Strategy
New Store (Development) Growth Strategy FY2028 Ambition ~300 million to 500 million in EBITDA1 1 Traditional Growth 2 Rural Expansion 3 Future Proofing Our Offer • Expanding in fast-growing • Strong organic growth at • Portfolio of ancillary and future proof Our approach suburban areas 1,400 rural s
Slide 98: Engineered for Customer Satisfaction and Peak Returns
Engineered for Customer Satisfaction and Peak Returns Features make it easy for customers: Center checkout, food-centric and industry leading thirst allotment Core Prototype Standard Prototype 3,900 square feet; used 5,200 square feet; used for for rural or smaller format suburban and High Speed sub
Slide 99: Accelerating New Build Deliveries
Accelerating New Build Deliveries Model predicts store Proven approach refined with data focus performance based on each block group’s unique characteristics • Strong returns and great customer response Traffic Daily car and truck traffic Distance to Highway On and off ramps • Data-driven approach t
Slide 100: Car Wash - Value, Scale, and On-the-Go Convenience
Car Wash - Value, Scale, and On-the-Go Convenience ACT is a leading True Blue Express car wash car wash provider • ~2,550 units with another 975 from • 65 Express wash units • Fast and easy TotalEnergies in AZ and IL • ~52% market share of car wash • ACT washes 29 million cars • 10 million cars wash
Slide 101: Accretive M&A Fuels Financial Breakthroughs
Accretive M&A Fuels Winning Growth Financial Breakthroughs 1 M&A * * Combined pre-close EBITDA1 of ~$640mm (synergies2 expected to reach ~$185mm over 3 years or ~$240mm over 5 years) * Proposed acquisitions; expected to close in calendar 2023. The acquisition of certain retail assets from TotalEnerg
Slide 102: M&A Strategy
M&A Strategy FY2028 Ambition $1.1B EBITDA from new M&A Our Competitive Advantage Our Approach opportunities1 We are experts in closing and integrating M&A around the globe 1 Consolidating the US market remains a priority • ~73% of our current network has been sourced from M&A • ACT is #2 in the mark
Slide 103: TotalEnergies Video
TotalEnergies Video 1 Winning Growth TotalEnergies 2023 ACT Analyst and Investor Conference
Slide 104: TotalEnergies – Leading Network in Continental Europe
TotalEnergies – Leading Network in Continental Europe • 2,200 prime locations in Key European markets Natural • Retail operations in scope include Fuel, Shop and Wash sales expansion • EV operations on site and new DC charging opportunities in scope of ACT’s • B2B card sales Ownership core business
Slide 105: Moving Into The Strongest Markets in Europe
Moving Into The Strongest Markets in Europe Population (in millions) Market Share & Position2 Sweden 10 28% 1 Denmark 6 28% 1 Norway 5 29% 1 Estonia 1 21% 1 Latvia 2 26% 2 Lithuania 3 25% 1 Poland 38 4% 4 Ireland 5 26% 1 Germany 84 10% 4 Belgium1 12 19% 1 Netherlands 18 10% 4 Luxembourg1 1 30-35% 2
Slide 106: Transformative Synergies
Transformative Synergies FY2028 Ambition $0.7B EBITDA1 from Revised TotalEnergies synergies3 proposed Synergy Capture Synergy Assessment per Region represent 37% acquisition of pre-close Timeline Revised EBITDA2 170 120 35% Germany BeNeLux 65% FY27 FY29 Synergies Initially Disclosed Synergies Revise
Slide 107: E-Mobility Video
E-Mobility Video 1 Winning Growth E-Mobility 2023 ACT Analyst and Investor Conference
Slide 108: Ready to Lead the Electric Vehicle Transition
Ready to Lead the Electric Vehicle Transition • Circle K is a leader in most of its European markets • Our leading convenience & service offer will provide the EV customer with a charging experience beyond charging alone • We excel in operational efficiency, driving top profitability • With 3.4 mill
Slide 109: Attractive Underlying Growth Drivers
Attractive Underlying Growth Drivers % of EV drivers who % of EV drivers who use fast charging use fast charging monthly or more frequently 92% 38% Source: The 2023 Norwegian EV Driver Survey (The Norwegian EV Association) 2023 ACT Analyst and Investor Conference
Slide 110: The Preferred Destination for Charging On-the-Go
The Preferred Destination for Charging On-the-Go Position CK as the Mobility Partner of Choice for B2B 1000+ 700+ 550+ 10k Total charging stalls Partner Charging Office and Active Workplace Combined B2B Fuel Home Charging Total Home Units Reimbursement in Europe Stalls Guest Charging Units and EV Ca
Slide 111: Scaling Our EV Offer From A Leader Position In Scandinavia
Scaling Our EV Offer From A Leader Position In Scandinavia GLOBAL TRANSIT BEV22 SHARE OF NEW CHARGING NETWORK CAR SALES YTD 2023 • Scaling up Circle K’s European EV charging network • Achieving strong growth, margins, and returns • EV customers boost store sales more than ICE1 customers • TotalEnerg
Slide 112: Investments Supported by Strong Growth
Investments Supported by Strong Growth Number On-the-go Number of Active Uptime1 of Charging Stalls transactions B2C Customers 1,047 730K YTD 96% ~114K (up ~90% YoY) (up ~65% YoY) (up ~52% YTD) (55%) (57%) (96%) 68,500 (22%) (22%) (96%) 36,000 (23%) (20%) (98%) 9,400 Laying a solid foundation for th
Slide 113: Strong Contribution to Convenience Business
Strong Contribution to Convenience Business Traffic to store post EV charger installation on site EV customer vs. ICE1 customer2 Incremental number Average merchandise Average merchandise of store visits revenue lift & service gross profit3 lift +11% +15% +8% +27% % of active in-store % of active ca
Slide 114: Today: Solid Unit Economics and Strong Returns
Today: Solid Unit Economics and Strong Returns HPC1 Unit Economics HPC ROCE3 EBT Margin2 30 – 40 % 18 – 30 % 1 High Power Charging 2 EBT Margin refers to Earnings Before Income Taxes divided by Revenues 3 ROCE refers to Return on capital employed. Please refer to the “Non-IFRS Measures” section of t
Slide 115: Winning Growth $2.1 – $2.3B
Winning Growth $2.1 – $2.3B Winning Growth in EBITDA1 NTIs, R&R, RELO M&A TotalEnergies E-mobility 1 Please refer to the ''Non-IFRS Measures'' section of this presentation for additional information on performance measures not defined by IFRS. More specifically, this slide should be read in conjunct
Slide 116: Financial Summary & Closing Remarks
Financial Summary & Closing Remarks Filipe Da Silva CFO Brian Hannasch President & CEO 2023 ACT Analyst and Investor Conference
Slide 117: Spotlight on Each Lighthouse's Contribution
Spotlight on Each Lighthouse’s Contribution Winning Offer Winning Fuel Winning the Customer Winning Growth NTIs, R&R, RELO Win in Food B2C value proposition Build fans through loyalty M&A Own Thirst B2B value proposition Digital experience TotalEnergies Private Brands Fuel supply chain Operations Fi
Slide 118: The ACT Path
The ACT Path $10B EBITDA1 1 EBITDA 1 Net Earnings $10,000 $8,900 from organic growth including TotalEnergies $5,762 $5,061 $5,244 $4,525 $3,583 $2,980 $3,091 $2,396 $2,705 $2,683 $2,331 $2,354 $1,100 from new M&A $1,876 $1,834 $1,376 $1,640 $1,191 $1,209 $1,671 $930 $573 $812 2013 2014 2015 2016 201
Slide 119: Optimizing Capital Allocation for Strategic Priorities and Measurable Returns
Optimizing Capital Allocation for Strategic Priorities and Measurable Returns Reinvesting 35-40% Target of 15% Return Our leverage ratio1 comfort of EBITDA1 on Capital Employed1 zone is 2.25x • Network Development: ~30% • 17.5% ROCE1 as at April 30, • Leverage ratio1 of 1.49x 2023 as at April 30, 20
Slide 120: Balanced Maturity Curve with Effective Financing Cost
Balanced Maturity Curve with Effective Financing Cost Leverage Ratio1,2 ACT Senior Unsecured Notes - Debt Maturity Profile5 1.49 $1,000 Share Repurchases FY2023 Principal in millions of USD ~ 52 million shares / ~ $2.3 billion $800 Weighted Average Coupon Rate on Outstanding Debt2 $600 $1,000 3.34%
Slide 121: 10 for the Win!
10 for the Win! • Our North Star is to be the most trusted brand in convenience and mobility • After our Double Again achievement – there were some additional opportunities left and we developed our 10 For The Win strategy building upon the lighthouse strategy; goal of reaching 10B$1 in EBITDA1, fro
Slide 122: Our Five Focus Areas
Our Five Focus Areas Win in Food & Gain Share Digital Own Thirst in Fuel Acceleration Fast, Friendly Lowest Cost & In-Stock Operator 2023 ACT Analyst and Investor Conference
Slide 123: 10 for the Win – Compelling Investment Opportunity
10 for the Win – Compelling Investment Opportunity Mastering the Customer Journey Untapped organic growth and Offering Sustainability of fuel gross margins Advantaged Fuel Gross Margins Low-Cost Operator; Generating synergies1 between Financial discipline & cost efficiencies 30% to 60% of the pre-cl
Slide 124: Q&A Session
Q&A Session 2023 ACT Analyst and Investor Conference
Slide 125: Investor Relations Contact
Investor Relations Contact Jean-Philippe D. Lachance, CFA Vice President, Investor Relations and Treasury Investor.Relations@couche-tard.com Alex Limosani, CFA Senior Analyst, Investor Relations Investor.Relations@couche-tard.com 2023 ACT Analyst and Investor Conference
Slide 126: Thank you!
Thank you!
Alimentation Couche-Tard — Investor Day (October 2023) on 6ix