Alimentation Couche-tard Inc. · TSX:ATD

Alimentation Couche-tard — Merger or Acquisition (November 2020)

11 slides from Alimentation Couche-tard's merger presentation, Nov 5, 2020

  1. Slide 1: Acquisition of Circle K Hong Kong

    ACQUISITION OF CIRCLE K HONG KONG Alimentation Couche-Tard November 5, 2020

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS 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”, “anticipate”, “believe”

  3. Slide 3: Key Transaction Highlights

    KEY TRANSACTION HIGHLIGHTS  Entered into an agreement to acquire Circle K Hong Kong (Circle K HK), our licensee partner, for approximately US$360 million.  Significant milestone that provides a platform in Asia from which to launch our regional growth ambitions.  Asia is expected to see the major

  4. Slide 4: Key Transaction Highlights (Cont'd)

    KEY TRANSACTION HIGHLIGHTS (CONT’D)  Couche-Tard gains exposure to a high-density small-footprint network with high visit frequency.  Given an average store size of 850 sq. ft., transaction speed and throughput are key focus areas that could bring shared learnings.  Merchandising expertise “down

  5. Slide 5: Expansion Timeline

    EXPANSION TIMELINE Entry into US Acquisition of The Pantry Inc., a leading Acquisition of the assets of Johnson convenience store operator in the Oil Company, Inc., owner of 225 southeastern United States. Bigfoot stores, all located in the U.S. Midwest Global Circle K brand is launched Couche-Tard

  6. Slide 6: Circle K Hong Kong Overview

    CIRCLE K HONG KONG OVERVIEW Hong Kong Macao Business Overview  Convenience-only network o Already operating under Circle K banner o 340 company-operated stores in Hong Kong • Highest sales per store in the industry o 33 franchised stores in Macau  Impressive store operations o 2019 same-store sale

  7. Slide 7: Productive Small Footprint Stores

    7 Mixed-use residential Shopping arcade store PRODUCTIVE SMALL FOOTPRINT STORES Two-story urban store Plaza

  8. Slide 8: Convenient Product Offering

    CONVENIENT PRODUCT OFFERING Impulse and back bar Refrigerated beverages Simply Great Coffee Fresh bakery Ice cream hot & in food-to-go 8

  9. Slide 9: Establishing a New Platform for Growth

    ESTABLISHING A NEW PLATFORM FOR GROWTH  Fulfills major strategic objective and critical first step of entering high-growth Asia Pacific market  Convenience retail market in Hong Kong is very attractive and understored  Circle K Hong Kong possesses a strong management team with deep expertise and

  10. Slide 10: Timeline and Next Steps

    TIMELINE AND NEXT STEPS Estimated Timing Event First half of December CRA Shareholder approval Second half of December Cash purchase and transaction closing 10

  11. Slide 11: Appendix: Hong Kong Overview

    APPENDIX Hong Kong Overview  Small but affluent market o Population: 7.4 million1 – one of the most densely populated places in the world; +830k1 people since 2000 o GDP per capita: US$48,8002 in 2019; doubled over the last 15 years (4.6% CAGR) o Consumer spend per capita: US$26,8002 in 2019  High

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