FORWARD-LOOKING STATEMENTS
2
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”, “expect”, “plan”, “intend” or similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact contained in these slides are forward-looking statements.
Forward-looking statements involve numerous assumptions, risks and uncertainties. A variety of factors, many of which are beyond Alimentation Couche-Tard Inc.’s (“Couche-Tard”) control, may cause actual results to differ materially from the expectations expressed in its forward-looking statements. These factors include, but are not limited to, the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins on motor fuel sales, competition in the convenience store and retail motor fuel industries, foreign exchange rate fluctuations, and such other risks as described in detail from time to time in documents filed by Couche-Tard with securities regulatory authorities in Canada, including those risks described in Couche-Tard’s management’s discussion and analysis (MD&A) for the year ended April 29, 2018. Couche-Tard’s MD&A and other publicly filed documents are available on SEDAR at www.sedar.com.
Unless otherwise required by law, Couche-Tard does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by it or on its behalf. No financial information presented in this presentation as of a date more recent than April 29, 2018 has been audited.
While the information contained in this presentation is believed to be accurate, Couche-Tard expressly disclaims any and all liability for any losses, claims or damages of whatsoever kind based upon the information contained in, or omissions from, this presentation or any oral communication transmitted in connection therewith. In addition, none of the statements contained in this presentation are intended to be, nor shall be deemed to be, representations or warranties of Couche-Tard and its affiliates. Where the information is from third-party sources, the information is from sources believed to be reliable, but Couche-Tard has not independently verified any of such information contained herein.
This presentation is not, and under no circumstances is to be construed as, a prospectus, an offering memorandum, an advertisement or a public offering of securities. Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to buy any securities.
Note: All figures include contribution from CAPL unless otherwise noted.
INVESTMENT HIGHLIGHTS
3
Size and Scale
Capital Allocation
Strong Culture
Attractive Channel
Organic Growth
M&A Expertise
• Global rebrand initiative permits better leverage of broad scale.• More flexibility to compete compared to small-size operators.
• Strong cash flow generation supports capex and growth plans.• Dividend increased more than six-fold since 2011 (~29% CAGR).
• Decentralized model drives accountability and entrepreneurship.• Cost discipline and lean operations are a major part of our DNA.
• We sell time and convenience (~65% of products consumed within hour of purchase) and have close proximity to customers.
• Solid pipeline of current initiatives, with many opportunities around customer journey, innovation, and deployment of retail capabilities.
• Long track record of successful integrations and synergy capture.• Significant runway remains globally, with a focus on U.S. and Asia.
CONTENT
4
1 32Company Highlights
U.S. Industry Overview
Competitive Advantages
4 5Our AmbitionIncreasing
ShareholderValue
COMPANY HIGHLIGHTS
5
• Largest company in Canada by revenues, 15th largest by market capitalization.
• Coast-to-coast presence in Canada and located in 48 of 50 U.S. states.
• Leading market share across many markets in Europe.
• EBITDA CAGR of ~22% since 2011 and profitable since IPO in 1986.
• Track record of generating shareholder value with average ROCE of 15.6% since 2011.
• Investment grade rating (BBB, Baa2) and significant balance sheet flexibility.
TSX: ATD.A | ATD.B
Ticker Symbol
GLOBAL LEADER IN FUEL & CONVENIENCE RETAIL
6
25incl. int’l licensees
Countries
~750,000per day
Cups of Coffee Sold
~130,000per day
Vehicles Washed
~130,000globally
People
~9 millionper day
Customers Served
~1.7 millionper day
Polar Pop Sold
16,072incl. CAPL sites
Store Count
~43 millionper day (excl. CAPL)
Fuel Gallons Sold
~490,000per day
Hot Dogs Sold
Note: All figures based on LTM results as at Q3 F2019 ended February 3, 2019.
67%
20%
13%
United States Europe Canada
REVENUE AND GROSS PROFIT MIX
7
Note: All figures based on LTM results as at Q3 F2019 ended February 3, 2019.
68%
20%
12%
55%43%
2%
Merchandise and Service Fuel Other
25%
73%
2%
Gross Profit
Revenue
~65% of transactions are convenience only, while 25% are fuel only, and 10% are a mix of both.
Geo
grap
hic
Mix
Prod
uct M
ix
MOMENTUM ACROSS NUMBER OF KEY METRICS
8
Q3
LTM
+4.5%Merch. SSS – US1
Note: All figures as at Q3 F2019 ended February 3, 2019. 1 For company-operated stores only.2 Excluding CAPL.3 Free cash flow calculated as EBITDA less net capital expenditures, less cash dividends paid, cash interest expense, and cash taxes paid.
+4.9%Merch. SSS - Canada1
+2.9%Merch. SSS - Europe
+0.8%SS Volume - US1
-0.6%SS Volume - Canada1
-1.4%SS Volume - Europe
+58%EBITDA Growth Y/Y
2.38Adj. Leverage Ratio
+104%Adj. EPS Growth Y/Y
$3.39Adj. EPS
13.9%Adj. ROCE
$1.9 billionFree Cash Flow3
$14.4 billionMerch. & Service Sales
$3.6 billionEBITDA
15.7 billionFuel Gallons Sold2
OUR VISION AND MISSION
9
Our Vision
Our Mission
To become the world’s preferred destination for fuel and convenience.
To make our customers’ lives a little easierevery day.
CONTENT
10
1 32Company Highlights
U.S. Industry Overview
Competitive Advantages
4 5Our AmbitionIncreasing
ShareholderValue
SNAPSHOT OF U.S. FUEL & CONVENIENCE INDUSTRY
11
Source: NACS State of the Industry Report of 2017 Data.
Fuel79%
Non-Fuel21%
Store Type
Single63%
2-103%
11-10010%
101-5007% 500+
17%
Chain Size
89,9
57
90,6
83
89,5
67
90,0
49
91,8
15
93,2
09
93,8
19
95,0
56
96,3
18
97,3
59
97,5
04
97,6
43
55,1
62
55,6
11
55,3
08
54,4
92
54,5
26
54,9
17
55,4
01
56,2
26
56,4
76
56,8
36
57,0
31
57,3
15
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Population of U.S. Convenience StoresSingle Stores Chain Stores
2006145,119totalstores
2017154,958
totalstores
Couche-Tard’s market share at ~6% in the U.S.; high fragmentation leaves ample room for consolidation.
ATTRACTIVE CHANNEL WITHIN BROADER RETAIL…
12
Source: NACS State of the Industry Report of 2017 Data.
Industry inside sales grew for the 15th consecutive year.
$116
.2
$132
.1 $151
.1
$163
.6
$168
.5
$173
.9
$182
.4
$190
.4
$195
.0
$199
.3
$204
.0
$213
.5
$225
.8
$233
.0
$237
.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Industry Inside Sales(in billions)
CAGR 5.2%
$4.0 $5
.0 $5.9
$4.8
$3.5
$5.2
$4.8
$6.5 $7
.0
$7.2
$7.1
$10.
4
$10.
6
$10.
2
$10.
4
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Pretax Income(in billions)
CAGR 7.0%
… AND RECESSION RESILIENT
13
Convenience sales grew during the last two recessions.
$99.
8
$104
.1
$112
.0
$109
.3
$116
.2
$132
.1
$151
.1
$163
.6
$168
.5
$173
.9
$182
.4
$190
.4
$195
.0
$199
.3
$204
.0
$213
.5
$225
.8
$233
.0
$237
.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Industry Inside Sales(in billions)
Source: NACS State of the Industry Report of 2017 Data;Wikipedia (https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States).
Dot-Com Bubble Great Recession
+5% +8%
EXPERT IN SALE OF AGE-RESTRICTED PRODUCTS
14
Source: Nielsen.Note: Walmart excluded from Mass Merchandise figures, except for cigarettes.
89%
6% 4%
0%
95%
4% 1% 0%
60%
35%
4%
1%
36%
36%
19%
9%25%
66%
5% 4%
43% 50
%
5% 3%
0%10%20%30%40%50%60%70%80%90%
100%
Convenience Food Drug Mass Merchandise
Product Category Share by Channel
Cigarettes OTP Beer Candy Salty Snacks Packaged Beverages
Convenience store channel is the clear leader in sales of age-restricted products
Age-restricted categories are expected to contribute nicely to c-store traffic in the future.
U.S. NATIONAL FUEL MARGIN TRENDING HIGHER
15
Source: OPIS.
18.1
13.1
16.3
18.5 18.419.0
22.4
20.419.9
21.8
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
cent
s pe
r ga
llon 2008 - 2012 average: 16.9 cpg
2013 - 2017 average: 20.7 cpg
CAGR 2.1%
Industry breakeven increased ~28% y/y in 2017. More importantly, the bottom 50% operators would
be losing money below a margin of ~17 cpg.
Rising breakeven point for single-store and small-chain operators is contributing to higher overall fuel margin.
COST HEADWINDS FAVOUR LARGER CHAINS
16
Source: NACS (LHS), NACS State of the Industry Compensation Report of 2017 Data (RHS).
$3.2 $3
.8
$5.4 $6
.6 $7.6 $8
.4
$7.4
$9.0
$11.
1
$11.
2
$11.
2
$11.
4
$10.
0
$9.5
$10.
1
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Card Costs to Industry(in billions)
$7.9
5 $8.3
7
$8.2
7
$8.4
6
$8.5
6
$8.5
1 $8.7
6 $9.0
2 $9.4
4
$9.9
9
$10.
19
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Average Associate Wage(in dollars per hour)
Scale and geographic diversification provides Couche-Tard with flexibility to offset industry headwinds.
CONTENT
17
1 32Company Highlights
U.S. Industry Overview
Competitive Advantages
4 5Our AmbitionIncreasing
ShareholderValue
COMPETITIVE ADVANTAGES
18
• Significant scale and buying power through broad footprint and global brand.
• Strong leadership team and decentralized business model.
• Long-standing cost discipline embedded in our company culture and DNA.
• Proven ability to integrate acquisitions.
• Well positioned with Norway laboratory.
• Solid balance sheet and capacity to invest.
GLOBAL FOOTPRINT WITH LOTS OF WHITE SPACE
19
Note: Store count as at Q3 2019 ended February 3, 2019.1 U.S. store count includes 1,284 CAPL sites.2 Europe store count includes 975 automats; presence in Russia (33 stores) is not shown on map.
Europe2
2,709stores
United States1
9,048stores
Int’l
2,146stores
Core networkInternational licensees
Canada
2,169stores
GOING GLOBAL WITH CIRCLE K BRAND
20
~78% of stores1 in the U.S. are operating under the Circle K banner, 81% in Canada, and close to 100% in Europe.
Higher brand awareness and loyalty
Private label and product innovation
Unified corporate culture
Greater purchasing power
Rollout of national promotions
Exclusive product launches
Note: Completion percentages as at February 3, 2019 for the U.S. and Canada, and April 30, 2019 for Europe.1 Coporate stores and franchisees.
HIGHLY EXPERIENCED EXECUTIVE TEAM
21
For more information on ACT’s company officers, please visit https://corpo.couche-tard.com/en/our-company/management-team/
Brian HannaschPresident & Chief ExecutiveOfficer
• 18 yrs with ACT• 30 yrs in Oil & Gas / Retail
Claude TessierChief Financial Officer
• 3 years with ACT• 27 yrs in Retail
Deborah Hall LefevreTechnology
• 2 yrs with ACT• 15 yrs with global QSR
Kevin A. LewisMarketing
• 2 yrs with ACT• 15 yrs in senior/CMO roles
Ina StrandHuman Resources
• 7 yrs with ACT• 16 yrs in Oil & Gas / Retail
Hans-Olav HøidahlOperations, Europe
• 7 yrs with ACT• 20 yrs with Statoil F&R
Alex MillerCommercial Optimization
• 7 yrs with ACT• 23 yrs in Oil & Gas / Retail
Darrell DavisOperations, North America
• 17 yrs with ACT• 30 yrs in Retail
LONG-STANDING COST DISCIPLINE
22
Cost containment is part of Couche-Tard’s DNA.
Lean corporate structure
Automation and robotics
Decentralized business units
Procurement efficiency
Continuous benchmarking
Cost efficient systems
PROVEN ABILITY TO INTEGRATE ACQUISITIONS
23
Winners
Pump N Shop
Sterling Stores
Compac Food
Stores
Garvin Oil
Stores
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1,706 45 75 421 46 107 70 47 326 2,506 166 1,660 515 442 2,055
2 3 4 8 1 4 5 2 7 7 4 3 4 3 3Deals
Rev
enue
s
Since 2004, Couche-Tard successfully completed a total of 60 deals, adding ~10,200 store globally.
NORWAY LABORATORY IS A SIGNIFICANT ADVANTAGE
24
Well positioned to claim the EV customer
E-mob platform and internal capabilities established
• Full time dedicated team.
• Technical platform for E-mobility operations acquired, including app and webshop.
260+ fast chargers now installed in Norway, in total 400 chargers in EUR
• 133 new fast chargers installed in Norway (40 branded Circle K).
• 56 new chargers installed in other EUR countries, in total 138 installed.
• 400 additional chargers planned for 2020 in EUR and pilots to start in North America.
Home and workplace charging launched in Norway
• Product tested and ready.
• Full Market launch was done at the beginning of May 2019.
• 30+ offers delivered to apartment market prior to launch.
SOLID BALANCE SHEET AND CAPACITY TO INVEST
25
Announced NCIB for 4% of our Class B sub voting shares float (~17 million shares), to be used opportunistically.
BBB / Baa2S&P / Moody’s
Investment Grade Credit Rating
2.38below 2.50 target
Adj. Leverage Ratio
~$4-6 billionACT estimate
Balance Sheet Capacity
4.18
2.97
2.48
3.15 3.19 2.88
2.67
2.10 2.07
3.60
3.05
2.44 2.17
1.98 2.02
3.13
2004 2005 2006 2007 2008 2009 2010 2011 2012 Proforma
2013 2014 2015⁽¹⁾ 2016⁽¹⁾ 2017⁽¹⁾ 2018⁽¹⁾
Rapid deleveraging after transformational acquisition
Circle K No transformational acquisition Statoil Fuel & Retail,The Pantry
Leverage at SFR acquisition lower than at Circle KStrong credit metrics for several years
1,017 stores acquired2,453 stores acquired 3,847 stores acquired
Topaz, IOL, CST, Cracker Barrel, Holiday, Jet Pep
2,656 stores acquired
$840M
$3.6B
$1.7B $570M $1.3B
$6.5BTarget threshold of 2.50
Note: Pro forma ratios based on inclusion of acquisitions in full year results; transaction values include assumed debt.
IMPRESSIVE EBITDA-TO-FCF CONVERSION
26
Converted 44% of EBITDA to free cash flow since 2011.
Note: Free cash flow calculated as EBITDA less net capital expenditures, less other (cash dividends paid, cash interest expense, and cash taxes paid).
1/3of total capex
New to Industry
1/3of total capex
Commercial Programs
1/3of total capex
Maintenance & Improvements73
4 841
1,37
6 1,64
0
1,87
6 2,33
1
2,39
6 2,98
0
3,63
9
193
289 457
459
563 80
7
899
1,03
7
98915
8
148 30
5
315 42
8 540 60
8 673
706
383 404
614 86
6 884
984 88
9 1,26
9 1,94
4
30%
38% 39%
32% 34%
39%41%
39%
2011 2012 2013 2014 2015 2016 2017 2018 LTM
in U
S$ m
illion
s
EBITDA Net Capex Other Free Cash Flow Capex (as % of EBITDA)
Aiming to deploy ~40% of EBITDAtowards capital expenditures
EFFICIENT STRUCTURE BELOW EBITDA LINE
27
Low cost of debt and global corporate structure permits higher conversion of EBITDA to net earnings.
Note: All figures based on LTM results as at Q3 F2019 ended February 3, 2019.
Net earnings
Income taxes
Net financial expenses
D&A
EBITDA
Rent
EBITDAR 112%
53%
12%
9%
9%
29%
100%
MEANINGFUL CONTROL OVER OPERATING ASSETS
28
~82% of land and buildings in our overall network are either owned or leased through long-term agreements.
Note: All figures as at fiscal year ended April 29, 2018, excluding CAPL assets. Percentage referencing total network also excludes international licensee assets.
2,300 2,300
5,723 4,353
4,717 6,087
Land Buildings
Total Network
Owned Leased Third-Party Control
Substantial intrinsic value embedded in our
real estate portfolio
Control over our real estate provides us with the flexibility needed to
operate efficiently
CONTENT
29
1 32Company Highlights
U.S. Industry Overview
Competitive Advantages
4 5Our AmbitionIncreasing
ShareholderValue
OUR AMBITION
30
DOUBLE AGAINby making our customers’ lives
a little easier every day!
Double the business again, driven by our value creation equation and a focus on organic growth.
PRINCIPLES FOR PROFITABLE GROWTH
31
ROCE
Adj.Leverage Ratio
Capital Expenditures
Aim to deliver an EBIT-based return on capital employed of more than 15%.
Aim to keep our adjusted net debt-to-EBITDAR ratio below 2.50, allowing for flexibility following significant acquisitions.
Aim to maintain a level of capex spending at ~40% of EBITDA.
MORE BALANCED GROWTH GOING FORWARD
32
Organic30%
M&A70%
Historically
Organic50%
M&A50%
Projected
Greater focus on the offering and customer journey is expected to drive higher share of organic growth.
KEY FOCUS AREAS
33
• Succeed with food• Capture new opportunities• Further develop our retail
capabilities and data access to optimize the local store offering.
• Continue to grow market share in the U.S.
• Expand to new growth markets.
Offering Network
Foundational Elements
• Deliver first-class, retail-level recruiting and engaging training for our store and field employees.
Investments inOur People
• Make it easy for our ~130,000 people by leveraging our agile operating model.• Further increase our competitive advantage as a disciplined operator in the
industry.
• Be recognized by our customersfor a differentiated experience, in the way we deliver and continuously improve as weinnovate the customer journey.
Optimization of Business Systems
Customer Journey
• Making Circle K the conveniencebrand of choice
• Customer journey innovation• Customer loyalty• Operational excellence• Brand differentiation
CORE INITIATIVES
34
Customer Journey
• Food at scale• Merchandise pricing, promotion,
and assortment• Age-restricted products• Fuel pricing• Claim the EV customer in specific
markets
• U.S. expansion• Profitable ramp-up of new stores• Profitable remodels• Convenience-only in high foot
traffic locations• Desciplined entry into Asia Pacific
Offering Network
Foundational Elements
• Sustain investments in learning and development• Attract and hire people along core company values• Improve HR support and costs through digitalization
Investments inOur People
• Processes, technology and data• Cost base• Supply chain
Optimization of Business Systems
CONTENT
35
1 32Company Highlights
U.S. Industry Overview
Competitive Advantages
4 5Our AmbitionIncreasing
ShareholderValue
INCREASING SHAREHOLDER VALUE
36
• Long track record of delivering solid results.
• Increasing free cash flow generation.
• Rewarding shareholders through a steadily increasing dividend.
• Strong focus on reinvesting profitably in our operations and improving the ROCE.
DELIVERING STRONG RESULTS…
37
4,19
5
4,61
3 6,94
5
7,62
6
8,13
5 10,5
02
11,7
93 14,5
25
15,7
19
2011
2012
2013
2014
2015
2016
2017
2018
LTM
in m
illio
ns o
f gal
lons
Fuel Volume Sold
CAGR 19.4%
673
787
1,66
4
1,88
8
2,12
9
2,44
0
2,58
7 3,38
7 3,98
7
2011
2012
2013
2014
2015
2016
2017
2018
LTM
in U
S$
mill
ions
Fuel Gross Profit
CAGR 26.0%
6,18
4
6,59
9
7,60
2
7,95
3
8,27
6
10,0
72
10,7
24 12,9
76 14,4
27
2011
2012
2013
2014
2015
2016
2017
2018
LTM
in U
S$
mill
ions
Merchandise and Service Revenues
CAGR 11.2%
2,07
3
2,18
2
2,59
6
2,69
9
2,80
6 3,43
1
3,68
2 4,46
9
4,98
8
2011
2012
2013
2014
2015
2016
2017
2018
LTM
in U
S$
mill
ions
Merchandise and Service Gross Profit
CAGR 11.6%
… AND REWARDING SHAREHOLDERS ACCORDINGLY
38
0.06
0.09 0.10 0.
14
0.19
0.27
0.35 0.
37
2011
2012
2013
2014
2015
2016
2017
2018
in C
$ pe
r sh
are
Dividend per Share
CAGR 28.7%
Increased quarterly dividend by 25% in Q3 2019 to an annualized payment of 50¢ per share.
STRONG ORGANIC GROWTH DRIVING RETURNS
39
Moving towards goal of 15%+ ROCE, driven primarily by organic growth initiatives.
Note: LTM data as at Q3 2019 ended February 3, 2019.
We have repeatedly proven our ability to increase our ROCE
following the integration of large acquisitions
18.1
%
19.0
%
11.0
% 13.3
% 16.2
%
19.2
%
15.8
%
12.0
% 13.9
%
2011
2012
2013
2014
2015
2016
2017
2018
LTM
Return on Capital Employed
avg. 15.6%
RELATIVE STOCK PERFORMANCE
40
157.0%
55.6%
12.2%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
May
-14
Nov
-14
May
-15
Nov
-15
May
-16
Nov
-16
May
-17
Nov
-17
May
-18
Nov
-18
May
-19
5-Year Stock Performance vs. Key IndicesATD.B-T TSEC-T SPX
Source: Nasdaq IR Insight, based on the closing prices at the end of April 24, 2019 trading day.
FINANCIAL HIGHLIGHTS
41
Notes: Fiscal years 2012 and 2107 consist of 53-week periods.1 Free cash flow calculated as EBITDA less net capital expenditures, less cash dividends paid, cash interest expense, and cash taxes paid.
in US$ millions, unless otherwise noted 2011 2012 2013 2014 2015 2016 2017 2018 LTM CAGR
Total revenues 18,543 22,980 35,549 37,962 34,530 34,145 37,905 51,394 59,619 16%Gross profit 2,752 2,975 4,607 4,988 5,268 6,082 6,482 8,112 9,228 17%EBITDA 734 841 1,376 1,640 1,876 2,331 2,396 2,980 3,639 22%Operating income 503 580 839 1,034 1,320 1,668 1,698 2,041 2,546 22%Adj. diluted EPS $0.67 $0.81 $1.11 $1.35 $1.79 $2.08 $2.21 $2.60 $3.39 21%
Merchandise SSS - United States 4.2% 2.7% 1.0% 3.8% 3.9% 4.6% 2.0% 0.8% n/a Merchandise SSS - Europe n/a n/a n/a 1.6% 2.0% 2.8% 3.5% 2.7% n/a Merchandise SSS - Canada 1.8% 2.8% 2.0% 1.9% 3.4% 2.9% 0.1% 0.4% n/a
SS Fuel Volume - United States 0.7% 0.1% 0.6% 1.7% 3.4% 6.6% 2.6% -0.4% n/a SS Fuel Volume - Europe n/a n/a n/a 2.5% 2.4% 2.6% 1.0% 0.0% n/a SS Fuel Volume - Canada 3.9% -0.9% 0.0% 1.3% -0.1% 0.9% -0.3% -1.4% n/a
Fuel Margin - United States (in US$ cents per gallon) 15.54 16.99 18.77 18.11 21.74 20.15 18.56 19.39 n/a 3%Fuel Margin - Europe (in US$ cents per litre) n/a n/a 9.88 10.94 10.33 8.82 8.22 8.72 n/a -2%Fuel Margin - Canada (in C$ cents per litre) 5.38 5.45 5.84 5.98 6.35 6.41 7.66 8.84 n/a 7%
Cash flow from operations 608 764 1,161 1,429 1,715 1,888 1,926 2,163 3,095 20%Free cash flow1 383 404 614 866 884 984 889 1,269 1,944 19%
Dividends per share 0.06 0.09 0.10 0.14 0.19 0.27 0.35 0.37 n/a 29%
Adj. debt-to-EBITDA ratio (x) 0.26 0.43 1.99 1.32 1.18 0.95 1.09 2.46 1.72Adj. debt-to-EBITDAR ratio (x) 2.09 2.11 3.06 2.44 2.17 1.93 2.02 3.13 2.38ROCE (%) 18.1% 19.0% 11.0% 13.3% 16.2% 19.2% 15.8% 12.0% 13.9%
INVESTMENT HIGHLIGHTS
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Size and Scale
Capital Allocation
Strong Culture
Attractive Channel
Organic Growth
M&A Expertise
• Global rebrand initiative permits better leverage of broad scale.• More flexibility to compete compared to small-size operators.
• Strong cash flow generation supports capex and growth plans.• Dividend increased more than six-fold since 2011 (~29% CAGR).
• Decentralized model drives accountability and entrepreneurship.• Cost discipline and lean operations are a major part of our DNA.
• We sell time and convenience (~65% of products consumed within hour of purchase) and have close proximity to customers.
• Solid pipeline of current initiatives, with many opportunities around customer journey, innovation, and deployment of retail capabilities.
• Long track record of successful integrations and synergy capture.• Significant runway remains globally, with a focus on U.S. and Asia.
INVESTOR RELATIONS CONTACTS
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Karinne BouchardSenior Director, Investor Relations and [email protected] x. 4736
Jean Marc AyasManager, Investor [email protected] x. 4619
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