Slide 1: Fourth Quarter & Fiscal Year 2023 Earnings
Fourth Quarter & Fiscal Year 2023 EARNINGS A Leading Retail Convenience Store Operator A Fortune 500® Company FEBRUARY 27, 2024
Slide 2: Safe Harbor Statement
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 operational
Slide 3: ARKO Overview
ARKO OVERVIEW 25 Acquisitions 6TH LARGEST CONVENIENCE STORE CHAIN IN THE U.S. (Since 2013) 1,543 ~13,500 30+ • Large, Multi-State Convenience Store Operator with Majority of States Retail Stores Employees Profits Generated from Retail Stores • Runway for Growth from In-Store Marketing Initiatives an
Slide 4: Track Record of Delivering Long-Term Growth
Track Record of Delivering Long-Term Growth DELIVERING RESULTS WHILE NAVIGATING A STRONG 2022 COMPARISON ~$850 Million Cumulative Adjusted EBITDA delivered in Adjusted EBITDA1 first three years as a public company ($ in millions) $301 $290 $257 $183 $82 $78 2018 2019 2020 2021 2022 2023 Site Count (
Slide 5: Growing our fas REWARDS Loyalty Program
Growing our fas REWARDS® Loyalty Program Long-term growth in Enrolled Loyalty (enrolled loyalty members in millions of members | as of quarter end) 1.48 1.85 2M 2.02 ~730K 1.23 1.29 1.36 0.95 1.01 1.07 1.16 Newly enrolled 0.81 0.88 members in 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Average Transact
Slide 6: Focus on Core Destination Categories
Focus on Core Destination Categories Core Destination Categories1 represented 53% of merchandise Core Destination Categories1 Merchandise contribution in 2023 Contribution Compared to Rest of Categories2 • Concentration allows us to focus our initiatives on categories that we believe will move the n
Slide 7: Continued Development of Food Service
Continued Development of Food Service In January 2024, ARKO Launched Its New Pizza Offering • Take-and-bake available at more than 1,000 stores • Available hot in approximately 225 of these locations • Available in cheese and pepperoni and made with Wisconsin cheese • Linked to loyalty: Available to
Slide 8: Added Contribution from Recent Transactions
Added Contribution from Recent Transactions SINCE BEGINNING OF Q3 2022, ARKO HAS CLOSED 5 TRANSACTIONS CLOSED: Jul 22, 2022 CLOSED: Mar 1, 2023 CLOSED: Jun 6, 2023 CLOSED: August 15, 2023 ARKO CONSIDERATION: ~$43 million ARKO CONSIDERATION: ~$61 million2 ARKO CONSIDERATION: ~$25 million ARKO CONSIDE
Slide 9: Contextualizing ARKO's Retail Segment
Contextualizing ARKO’s Retail Segment Gross Profit Average 2021-2023 Retail OpEx, Retail Fuel Contribution and Retail Fuel Margin (CPG)1 ($ in millions) $900.0 45.0¢ 41.4¢ 38.8¢ 6.9% $800.0 33.7¢ 40.0¢ $700.0 $779.4 35.0¢ Merchandise Contribution $600.0 $669.8 30.0¢ $500.0 $593.9 25.0¢ Retail Fuel 1
Slide 10: Continued Strong In-Store Performance
Continued Strong In-Store Performance YEAR OVER YEAR IMPROVEMENT, COMPOUNDING 4 YEAR EXPANSION Merchandise Sales Merchandise Contribution and Margin 31.8% 27.2% 29.3% 30.4% 460 BPS Merchandise margin expansion: 4 year 7.1% CAGR 12.9% CAGR 140 BPS $1,494.3 $1,616.4 $1,647.6 $1,838.0 $406.3 $472.9 $50
Slide 11: Retail Performance Trends
Retail Performance Trends Quarterly and full year retail fuel margin (cents per gallon) 39.7 40.3 39.2 38.8 35.4 Q1'23 Q2'23 Q3'23 Q4'23 Full Year 2023 Quarterly and full year same store merchandise sales growth (ex cigarettes, as compared to prior year period) 7.6% 3.8% 2.5% 1.0% -1.8% Q1'23 Q2'23
Slide 12: Key Financial Highlights – Strong Liquidity
Key Financial Highlights – Strong Liquidity OVER $2 BILLION $218M Quarterly dividend Cash on hand announced for Q1 2024 Available funding for continued M&A activity $0.03/SHARE $613M Approximate availability under REPURCHASED our lines of credit, as of December 31, 2023 $8.5M In shares under our sha
Slide 13: Appendix: Reconciliation of EBITDA and Adjusted EBITDA
Appendix RECONCILIATION OF EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA, NET OF INCREMENTAL BONUSES For the years ended December 31, 2023 2022 2021 2020 2019 2018 (in thousands) Net income (loss) $ 34,566 $ 71,978 $ 59,427 $ 30,639 $ (47,162) $ 23,464 Interest and other financing expenses, net 71,243
Slide 14: A Family of Community Brands
A Family of Community Brands ARKO PRESERVES LONG-ESTABLISHED LOCAL COMMUNITY BRAND EQUITY 14