Alimentation Couche-tard Inc. · TSX:ATD
Alimentation Couche-tard — Investor Presentation (June 2014)
25 slides from Alimentation Couche-tard's investor presentation, June 2014
Slide 1: Alimentation Couche-Tard Inc. June 2014
Alimentation Couche-Tard Inc. June 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 Representatives
Company Representatives Brian Hannasch Chief Operating Officer 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. SFR Update 4. Capital Structure & Debt Reduction Plan Appendix 1. Historical Industry Sales 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
+ Couche. 0) Ici 2. Couche-Tard Today
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 6,234 corporate-op
Slide 9: History of Highly Disciplined M&A Approach
History of Highly Disciplined M&A Approach Couche-Tard’s Consistent Acquisition Strategy Florida Oil Holdings, LLC Dickerson Petroleum Groovin Noovin RDK Joint Compac Venture Food Stores Revenue ($) Accel All Star Marketing LLC Winners Sterling Stores Moore Oil Spectrum Store Pump N Shop 2004 2005 2
Slide 10: North American Footprint
North American Footprint Network CENTRAL CANADA Corporate stores: 515 CODO: - DODO: - Affiliated stores: 192 WESTERN CANADA v QUEBEC EAST AND Corporate stores: 303 ATLANTIC CODO: - DODO: - v Corporate stores: 301 Affiliated stores: - CODO: - DODO: - Affiliated stores: 13 QUEBEC WEST Corporate stores
Slide 11: European Footprint
European Footprint NORWAY Corporate stores: 198 CODO: 248 RUSSIA DODO: 57 Corporate stores: 33 inc. automats: 180 CODO: - DODO: - inc. automats: - SWEDEN Corporate stores: 612 CODO: 143 DODO: 27 ESTONIA inc. automats: 478 Corporate stores: 52 CODO: - DODO: - DENMARK inc. automats: 6 Corporate stores
Slide 12: International Presence
International Presence Central / South China America 92 Asia Mexico 261 Japan 2,985 United Arab Emirates 29 Guam 13 Macau Hong Kong 335 23 Honduras Vietnam Philippines 6 60 Malaysia Indonesia 443 4,247 licensed Circle K stores in Asia, Mexico, Honduras and U.A.E As of February 2, 2014. 11
Slide 13: Couche-Tard as a World Leader
Couche-Tard as a World Leader North Europe LTM (1) ($ billions) America Revenue $25.2 $12.6 $37.8 Contribution 67% 33% 100% Gross Profit $3.3 $1.7 $5.0 Gross Margin 13.0% 13.7% 13.2% EBITDA (3) $1.6 EBITDA Margin 4.2% Stores (#) 6,221 (2) 2,263 8,484 Couche-Tard is a leading global convenience store
Slide 14: Gross Margin Breakdown
Gross Margin Breakdown By Geography By Product Canada 17.4% Motor fuel US 38.1% 47.9% Merchandise, Europe services and other 34.7% 61.9% Fuel Gross Margins United States (cents per gallon) 17.02 Europe (cents per litre) 11.44 Canada (CA cents per litre) 5.87 Gross Margins (As a % sales) United State
Slide 15: Disciplined Growth and Significant Free Cash Flow
Disciplined Growth and Significant Free Cash Flow Sales Same-store sales ($in millions) 18.3% CAGR Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 35,543 35,000 2,676 Merchandise same-store sales 30,000 US 2.5% 3.4% 3.4% 2.8% 0.4% 0.8% 0.1% 2.7% 4.5% 3.8% 25,000 22,98
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 Pro Forma 2012 Stores Improv. Merchants Stores Industry Average Return on capital employed since 2003 Strong returns even in challenging economi
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: 3. SFR Update
3. SFR Update 17
Slide 19: SFR Snapshot
SFR Snapshot ● Broad network comprised of 2,263 stations 72% are company-operated ● Revenues of $12.6B and gross margin of $1.7B for the period from February 1st, 2013 to January 31st, 2014 ● ~8.5B fuel litres sold from February 1st, 2013 to January 31st, 2014 ● Convenience offering focused on fre
Slide 20: Market Leadership
Market Leadership Market Share Market Store Position Count(1) Fuel(2) C-stores(3) Oslo Norway #1 503 37% 33% Sweden #1 782 32% 33% Denmark #1 385 28% 33% Latvia #1 77 27% 37% Estonia #1 52 20% 41% Lithuania #2 76 23% 23% Poland #5 355 5% 7% The is the most recognized convenience brand across Scandin
Slide 21: 4. Capital Structure & Debt Reduction Plan
4. Capital Structure & Debt Reduction Plan 20
Slide 22: Strong Credit Metrics Support Investment Grade Rating
Strong Credit Metrics Support Investment Grade Rating Adj. Net Debt / Adj. EBITDAR Track record of deleveraging after acquisition 21
Slide 23: Current Liquidity and Credit Facilities
Current Liquidity and Credit Facilities As of February 2, 2014. 22
Slide 24: Appendix: Historical Industry Sales
Appendix 1 Historical Industry Sales 23
Slide 25: 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 500 501 487 450 385 400 409 406 329 344 300 263 221 181 171 165 200 134 100 93 89 195 199 190 182 169 174 164 100 151 132 116 112 10
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