Alimentation Couche-tard Inc. · TSX:ATD
Alimentation Couche-tard — Investor Presentation (October 2014)
24 slides from Alimentation Couche-tard's investor presentation, October 2014
Slide 1: Alimentation Couche-Tard Inc. October 2014
Alimentation Couche-Tard Inc. October 2014
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 Representative
Company Representative Raymond Paré Vice-President and Chief Financial Officer Tel: (450) 662-6632 ext. 4607 investor.relations@couche-tard.com 2
Slide 4: Table of Contents
Table of Contents 1. Investment Highlights 2. Couche-Tard Today 3. Capital Structure & Debt Reduction Plan Appendix 1. Historical Industry Sales 2. Dividend vs Free Cash Flow 3. Adjusted Enterprise Value on EBITDAR vs EPS 3
Slide 5: 1. Investment Highlights
1. Investment Highlights 4
Slide 6: Investment Highlights
Investment Highlights Broad Geographic Footprint with Leading Market Positions • Leading C-store operator in North America, Scandinavia and Central and Disciplined Eastern Europe Superior Management Culture • Powerful local banners (Couche-Tard, Product Offerings • Management team with strong track
Slide 7: 2. Couche-Tard Today
2. Couche-Tard Today 6
Slide 8: Key Highlights
Key Highlights ● Couche-Tard is a leading global convenience store operator Largest operator in North America based on number of company-operated stores. Leader in convenience store and road transportation fuel in Scandinavian countries and in the Baltic countries Network of 6,236 corporate-op
Slide 9: North American Footprint Network
North American Footprint Network CENTRAL CANADA Corporate stores: 506 CODO: - DODO: - Affiliated stores: 188 WESTERN CANADA v QUEBEC EAST AND Corporate stores: 300 ATLANTIC CODO: - DODO: - v Corporate stores: 301 Affiliated stores: - CODO: - DODO: - Affiliated stores: 12 QUEBEC WEST Corporate stores
Slide 10: European Footprint
European Footprint NORWAY Corporate stores: 199 CODO: 246 RUSSIA DODO: 49 Corporate stores: 33 inc. automats: 178 CODO: - DODO: - inc. automats: - SWEDEN Corporate stores: 619 CODO: 135 DODO: 26 ESTONIA inc. automats: 478 Corporate stores: 52 CODO: - DODO: - DENMARK inc. automats: 6 Corporate stores
Slide 11: International Presence
International Presence Central / South China America 92 Asia Mexico 269 Japan 3,273 United Arab Emirates 32 Guam 13 Macau Hong Kong 340 25 Honduras Vietnam Philippines 11 India 79 2 Malaysia 9 Indonesia 471 4,616 licensed Circle K stores in Asia, Mexico, Honduras and U.A.E As of July 20, 2014. 10
Slide 12: Couche-Tard as a World Leader
Couche-Tard as a World Leader North Europe LTM (1) ($ billions) America Revenue $25.7 $12.5 $38.2 Contribution 67% 33% 100% Gross Profit $3.3 $1.8 $5.1 Gross Margin 12.9% 14.2% 13.3% EBITDA (3) $1.7 EBITDA Margin 4.4% Stores (#) 6,243 (2) 2,250 8,493 Couche-Tard is a leading global convenience store
Slide 13: Gross Profit Breakdown
Gross Profit Breakdown By Geography By Product Other Canada 7.9% 16.7% Motor fuel US 38.7% 48.5% Merchandise, Europe services and other 34.8% 53.4% Fuel Gross Margins United States (cents per gallon) 23.08 Europe (cents per litre) 11.67 Canada (CA cents per litre) 6.44 Gross Margins (As a % sales) U
Slide 14: Disciplined Growth and Significant Free Cash Flow
Disciplined Growth and Significant Free Cash Flow Sales Same-store sales Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Merchandise same-store sales US 3.4% 2.8% 0.4% 0.8% 0.1% 2.7% 4.5% 3.8% 4.4% 2.8% Can 5.4% 5.0% 0.4% 1.7% 0.9% 0.7% 3.2% 2.2% 1.6% 3.3% Eur 1.9% 1.
Slide 15: History of Highly Disciplined M&A Approach
History of Highly Disciplined M&A Approach Couche-Tard’s Consistent Acquisition Strategy Dickerson Petroleum Florida Oil Holdings, LLC Garvin oil Groovin Noovin Compac RDK Joint Food Stores Revenue ($) Venture Accel All Star Marketing LLC Winners Sterling Moore Oil Stores Spectrum Store Pump N Shop
Slide 16: Industry Leading Returns
Industry Leading Returns Return on capital employed(1)(2) (3) Before Current Susser Casey's Pantry CST NACS Grocery Home Drugstores Mass Dollar Acquisition 2013 Stores Improv. Merchants Stores Industry Average Return on capital employed since 2003 Strong returns even in challenging economic conditio
Slide 17: Operational Trademark
Operational Trademark • 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 practic
Slide 18: Operational Trademark
Operational Trademark Couche-Tard
Slide 19: 3. Capital Structure & Debt Reduction Plan
3. Capital Structure & Debt Reduction Plan 18
Slide 20: Adj. Net Debt / Adj. EBITDAR
Strong Credit Metrics Support Investment Grade Rating Adj. Net Debt / Adj. EBITDAR Track record of deleveraging after acquisition 19
Slide 21: Appendix
Appendix Historical Industry Sales Dividend vs Free Cash Flow Enterprise Value ratio vs EPS 20
Slide 22: Resilient and Growing Industry
Resilient and Growing Industry • Industry’s inside sales grow each year, even during recessions U.S. Convenience Stores Industry Sales 700 600 Billions of U.S. Dollars 500 501 492 487 450 385 400 409 406 329 344 300 263 221 181 171 165 200 134 100 93 89 204 195 199 190 182 169 174 164 100 151 132 11
Slide 23: Dividend vs Free Cash Flow
Dividend vs Free Cash Flow Dividend / 10.0 9.0 8.7 50.0 12.3 9.1 7.5 Free CF (%) Consistent growth more than doubling within 5 years 22
Slide 24: Adjusted Enterprise Value on EBITDAR vs CAG EPS
Adjusted Enterprise Value on EBITDAR vs CAG EPS Couche-Tard earns shareholders more than competition vs its value. Based on most recent published last 12 months results as of August 15, 2014. ACT’s most recent published results are as of July 20, 2014 (Q1 2015). «Enterprise Value» and «Stock Price»
Alimentation Couche-Tard — Investor Presentation (October 2014) on 6ix