Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation May 8, 2023 A Leading Retail Convenience Store Operator A Fortune 500® Company
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Forward-Looking Statements This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operationa
Slide 3: ARKO Overview: 6th Largest Convenience Store Chain in U.S.
ARKO Overview 3 6th Largest Convenience Store Chain in U.S. • Excellent Convenience Store Operator with Majority of Profits Generated from Company Operated Stores • Runway for Growth Through Continued Acquisitions and in-Store Marketing Initiatives • A Demonstrated Excellence and Reputation as a Ret
Slide 4: Strong Q1 2023 In-Store Performance
Strong Q1 2023 In-Store Performance 4 Merchandise 120 BPS 30.7% 32.0% 7.6% 210 BPS 29.5% Increase in Same Store Sales 27.4% Excluding Cigarettes 27.0% (3.8% increase in Same Store Sales) 22.0% 17.0% 120 Basis points increase in Merchandise 11.75% CAGR 12.0% Contribution, to 30.7% 7.0% $98.5 $108.2 $
Slide 5: Adjusted EBITDA & Seasonality in Detail
Adjusted EBITDA & Seasonality in Detail 5 Adjusted EBITDA1 Quarterly Contribution to Adjusted EBITDA1 ($ In millions) Average of FY 2021 – FY 2022 99.5 October - January - December March 75.7 80.2 79.0 17% 72.4 23% 58.4 50.1 47.5 42.3 28% July - 32% April - June September Q1 2021 Q2 2021 Q3 2021 Q4
Slide 6: Key Financial Highlights – Excellent Liquidity
Key Financial Highlights – Excellent Liquidity 6 ~$580M $300M Up to $1.5B Additional availability in $800 million Approximate liquidity revolving credit facility Amended Oak Street program As of March 31, 2023 maturing in 20281 agreement through September 2024 Over $2 Billion Available capital for c
Slide 7: Majority of ARKO Profits from Operating Convenience Stores
Majority of ARKO Profits from Operating Convenience Stores 7 The stable, ratable cash flow from the wholesale and fleet fueling segments have enhanced our dealmaking flexibility and augments further investment in our core convenience store business. Q1 2023 Operating Income by Segments1 RETAIL 12% M
Slide 8: Focus on Three Key Pillars: Core Destination Categories
Focus on Three Key Pillars: Core Destination Categories 8 Leading with an assortment relevant to today’s convenience store shopper led to strong Q1 2023 performance in core destination categories, driving: • 63% of merchandise same store sales excluding cigarettes, and 43% of total same store sales.
Slide 9: Focus on Three Key Pillars: Loyalty
Focus on Three Key Pillars: Loyalty 9 ARKO’s Newly upgraded fas REWARDS® loyalty program launched March 28, 2023, and is designed to develop and strengthen relationships with our customers while driving sales and profit through enrollment growth. ~1.38 million Enrolled members $68.50 ~30% Average en
Slide 10: Focus on Three Key Pillars: Food & Beverage
Focus on Three Key Pillars: Food & Beverage 10 With early wins in grab ‘n’ go, frozen foods and bean-to-cup coffee, ARKO continues to focus on enhancing our customer value proposition in the food service and dispensed beverage categories. 133.7% 7.5% Increase in coffee cups sold to Increase in froze
Slide 11: Continuing Improvement at Handy Mart
Continuing Improvement at Handy Mart, Demonstrating Arko's Ability to Improve Operations 11 Through Scale, Purchasing Power, and Merchandising and Marketing Expertise • 36 stores in eastern North Carolina, acquired in November 2021 • +700 average merchandise items added per store • Fuel strategy cen
Slide 12: Continued Growth Through Acquisitions
Continued Growth Through Acquisitions 12 ARKO has consistently acquired quality assets at attractive multiples. The Company has demonstrable price discipline and creative approaches to transaction structuring, which has historically resulted in attractive returns over time. We believe that the scale
Slide 13: ‘ADMIRAL
‘ADMIRAL peas Pine muninan fez) Simm |e? ve @evres ‘uarles. vaarae Rose Mart >> Ss. AZ) vil detown: YO sass. 2 Et os Rewarns
Slide 14: APPENDIX: Reconciliation of EBITDA and Adjusted EBITDA
APPENDIX: Reconciliation of EBITDA and Adjusted EBITDA 14 Year Ended Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 December 31, 2022 (in thousands) Net (loss) income $ (2,527) $12,860 $24,994 $31,806 $ 2,318 $12,931 $35,585 $25,573 $(14,662) $ 71,978 Interest and other fina