INVESTORS PRESENTATION

Transcription

1 ALIMENTATION COUCHE-TARD INC. INVESTORS PRESENTATION November 2017

2 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, 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 30, Couche-Tard s MD&A and other publicly filed documents are available on SEDAR at 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 30, 2017 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. 2

3 AGENDA 1. Company Highlights 2. Ambitions & Strategy 3. Value Creation & Financial Review 4. Recent acquisitions summary 3

4 KEY DATA Listed on the Toronto Stock Exchange ATD.B Market Cap 1 Approx. CA$34B Revenue US$37.9B Fiscal Year US$9.8B Q YTD 2 (+16.9%) Gross Profit US$6.5B Fiscal Year US$1.7B Q YTD 2 (+14.4%) EBITDA US$2.4B Fiscal Year US$0.7B Q YTD 2 (+12.2%) Number of stores 3 North America Europe International Net Debt / Leverage 4 FY2017 Q Ratings S&P Moody s 13,974 9,471 2,754 1,749 US$2.7B / 1.09x US$6.4B / 2.31x BBB (Stable outlook) Baa2 (Stable outlook) 4 1.As at September 8, Fiscal Year ended 30/04/2017 and Q YTD being 12 weeks to 23/07/ Includes Couche-Tard s Company-Owned/Dealer-Operated and Dealer-Owned-Dealer-Operated sites as at July 23, Long term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA adjusted for non-recurring items. Refer to the Corporation s MD&As for more details.

5 ALIMENTATION COUCHE-TARD INC. COMPANY HIGHLIGHTS

6 WHO WE ARE Couche-Tard is a Canada based group and a world leader in the convenience store and road transportation fuel retail sector In North America, Couche-Tard is the largest independent convenience store operator in terms of number of company-operated stores. In Europe, Couche-Tard is a leader in convenience store and road transportation fuel retail in Scandinavia, Ireland and the Baltic countries, with a significant presence in Poland. North America Europe 9,471 convenience stores throughout North America, including 8,129 stores offering road transportation fuel in all 10 Canadian provinces and 42 U.S. States, and employing about 95,000 people. More than 1,200 locations in the U.S. supplied with road transportation fuel through CrossAmerica Partners LP. 2,754 stores, comprising a broad retail network across Scandinavia (Norway, Sweden and Denmark), Ireland, the Baltics (Estonia, Latvia and Lithuania), Poland and Russia. Including employees at its branded franchise stations, about 25,000 people work in its retail network, terminals and service offices across Europe. International More than 1,700 stores operated by independent operators under the Circle K banner in 13 other countries or regions worldwide which brings the number of sites in Couche-Tard s network to over 15,000. Store count as at July 23,

7 A DISCIPLINED CONVENIENCE STORE OPERATOR AND INTEGRATOR Broad Geographic Footprint with Leading Market Positions World class retailer and leading C-store operator with geographically diverse footprint Strong banners, with our new global convenience brand Circle K TM and our fuel banner Ingo at unmanned stations in Scandinavia Superior Product Offerings Increasing focus on private label, fresh food products and famous for concepts Industry leading merchandise gross margin Track Record of Highly Disciplined Growth and Debt Reduction Attractive Sector Dynamics Powerful Financial Results Proven integrator Well positioned to lead further consolidation in fragmented industry Committed to investment grade credentials post acquisition Steady industry performance throughout downturns with strong projected growth C-store sector well positioned to gain share from traditional food retail Industry-leading returns in recessions Strong and consistent financial performance throughout all economic cycles Prolific history of positive same-store comps and 22.5% Return on equity 1 Significant FCF generation ( ) CAGR of 17% Attractive Synergy Potential Proven ability to extract significant synergies from acquisitions Transferring best practices across entire platform Disciplined Management Culture Management team with strong track record and founders have 22%Management and Board need to hold a multiple of their salary in Shares Decentralized operating model Proven Capacity to Transform and Innovate Company successfully went trough 3 transformations over its existence (1) As of April 30,

8 NORTH AMERICAN NETWORK Largest independent convenience store operator in the US in terms of number of company operated stores In the US, the convenience sector is fragmented and in a consolidation phase Couche-Tard acquired The Pantry in March 2015, one of the largest independently operated convenience stores in the US On June 28, 2017, Couche-Tard acquired 100% of the outstanding shares of CST Brands, the 4 th largest chain in North America. Leader in the Canadian convenience store industry In Canada, the convenience store sector is dominated by a few major players including Couche-Tard and integrated oil companies. Some of the latter are selling, or expected to sell their retail assets. On September 7, 2016, Couche-Tard received the approval from the Canadian Competition Bureau to acquire from Imperial Oil Limited 279 sites in Ontario and Quebec and finalized the integration of these sites during the third quarter of fiscal Canada Couche-Tard Circle K Mac s, Esso & CST (will be rebranded to Circle K) US Circle K Kangaroo Express & CST (will be rebranded to Circle K) Total network of 9,471 stores in North America As at July 23,

9 EUROPEAN NETWORK Leader in convenience store and road transportation fuel retail in the Scandinavian and Baltic countries and Ireland The European convenience store sector is often dominated by a few major players, including integrated oil companies. Some of these are in the process of selling, or are expected to sell their retail assets Key brands: Circle K Ingo Topaz Being rebranded from Statoil Unmanned Scandinavian stations Will be rebranded to Circle K 2,754 stores in 9 countries or regions in Europe As at July 23,

10 INTERNATIONAL PRESENCE Central / South America Asia Mexico 461 United Arab Emirates 31 China 86 Costa Rica 5 Honduras 25 Egypt 9 Macau 30 Vietnam 246 Guam 13 Hong Kong 332 Philippines 16 Convenience stores operated by independent operators under the Circle K brand License agreement to use the brand name Circle K Malaysia 6 Indonesia 489 More than 1,700 licensed Circle K stores in Asia, Costa Rica, Egypt, Honduras, Mexico and U.A.E As at July 23,

11 CONSOLIDATED NETWORK RECAP Canada U.S. Europe International presence COCO (1) 1,602 5,759 1,968-9,329 CODO (2) DODO (3) ,050 Franchise/Affiliated (4) ,104 Licensed (5) ,749 1,749 Total 2,231 7,240 2,754 1,749 13,974 Of which: Automats # With fuel 1,194 6,935 2,752-10,881 % With fuel 54% 96% 99.9% - 78% Total (1) Sites for which the real estate is controlled by Couche-Tard (through ownership or lease agreements) and for which the stores (and/or the service stations) are operated by Couche-Tard or one of its commission agents. (2) Sites for which the real estate is controlled by Couche-Tard (through ownership or lease agreements) and for which the stores (and/or the service stations) are operated by an independent operator in exchange for rent and to which Couche-Tard sometimes provides road transportation fuel through supply contracts. Some of these sites are subject to a franchise agreement, licensing or other similar agreement under one of our main or secondary banners. (3) Sites controlled and operated by independent operators to which Couche-Tard supplies road transportation fuel through supply contracts. Some of these sites are subject to a franchise agreement, licensing or other similar agreement under one of our main or secondary banners. (4) Stores operated by an independent operator through a franchising, licensing or another similar agreement under one of our main or secondary banners. (5) Stores operated by independent operators under the Circle K banner in other countries or regions worldwide. As at July 23, Excludes CrossAmerica Parners LP 11

12 COUCHE-TARD IS A WORLD LEADER Couche-Tard is a leading global convenience store operator with EBITDA of $2.5 billion Well diversified across geographies Focus on growing high margin categories REVENUES Revenues By Products LTM Q Canada 17% Merchandises and services Motor Fuel Other Europe 12% $10,971M $27,213M $1,147M US 71% Europe 25% Canada 13% US 62% US 1% Canada 2% Europe 97% Other 3% Motor fuel 69% Total $39,331M Merchandise and services 28% GROSS PROFITS Merchandises and services Motor Fuel Other Total Gross Profit By Products LTM Q Canada 17% Europe 14% Financial data presented for the LTM as of Q $3,780M $2,700M $221M US 69% Europe 35% Canada 11% US 54% Europe 84% US 7% Canada 9% Motor fuel 40% $6,701M Othe r 3% Merchandise and services 57% 12

13 A HISTORY OF STRONG FINANCIAL PERFORMANCE Gross Profit Same Store Sales Growth (in millions of US Dollars) % CAG 4,610 2,975 4,988 5,268 6,082 6,482 Merchandise sales US 2.7% 1.0% 3.8% 3.9% 4.6% 2.0% Europe 1.6% 2.0% 2.8% 3.5% Canada 2.8% 2.0% 1.9% 3.4% 2.9% 0.1% Motor Fuel Volume US 0.1% 0.6% 1.7% 3.4% 6.6% 2.6% Europe 2.5% 2.4% 2.6% 1.0% Canada -0.9% 0.0% 1.3% -0.1% 0.9% -0.3% EBITDA Free Cash Flow (1) (in millions of US Dollars) (in millions of US Dollars) +23% CAG +17% CAG 2,331 2,396 1,876 1,640 1, , Proven track record of consistent growth 13 (1) Free Cash Flow defined as: EBITDA minus total CAPEX (excluding price paid for acquisitions), net dividends paid, net interests paid and net income taxes paid plus proceeds from disposal.

14 STELLAR STOCK PERFORMANCE 800% 700% 600% 500% 400% 300% 200% 100% 0% 4/26/2011 4/26/2012 4/26/2013 4/26/2014 4/26/2015 4/26/2016 4/26/ % 700% 600% 500% 400% 300% 200% 100% 0% 4/26/2011 4/26/2012 4/26/2013 4/26/2014 4/26/2015 4/26/2016 4/26/2017 Couche-Tard Grocery Drugstores Dollar Stores C-Stores Home Improv. Mass Merch. Couche-Tard Delek Murphy Casey's Marathon CST Brands(1) Source: Yahoo Finance. As of September 1, (1) On June 28, 2017, ACT acquired CST Brands. 14

15 ALIMENTATION COUCHE-TARD INC. AMBITIONS & STRATEGY

16 OUR VISION TO BECOME THE WORLD S PREFERRED DESTINATION FOR CONVENIENCE AND FUEL 16

17 17 OUR GLOBAL BRAND

18 REBRANDING STATUS Project well under way: More than 1,800 stores (1) in North America and 1,300 stores (1) in Europe are now proudly displaying our new global convenience brand Circle K Scandinavia market already completed Outstanding success Baltics, Poland and Canada are now underway and results up to now are promising United States ongoing (1) As of July 23,

19 19 THE PROMISE BEHIND THE BRAND

20 NEW GLOBAL BRAND SAME APPROACH TO SERVING OUR CUSTOMERS SUPER GLOBAL SUPER LOCAL 20

21 WORKING ON TWO CLOCK SPEED KEY FOCUS AREAS STRATEGIC INITIATIVES Famous For Categories Digital Private Label Products M&A Roadmap People Lean and Efficient Operations Convenience Offer of the Future 21

22 ADDING EXPERTISE, TALENT AND LEADERSHIP TO ACCELERATE OUR STRATEGY New Chief Marketing Officer Position New Chief Information Officer Position New Chief Human Resource Officer Position Creation of a Global Categories Group Creation of a Global Fuel Group 22

23 OUR TWO STRONGEST PRODUCT CATEGORIES TIME & CONVENIENCE 23

24 TIME & CONVENIENCE Shoppers recognize the c-store channel of trade for its convenient locations, extended hours of operations, one-stop shopping, graband-go foodservice, variety of merchandise and fast transactions Industry offers speed of service to time-starved consumers who want to get in and out of the store quickly Addresses consumer desires to satisfy and immediate need for food, refreshment and fuel 83% of the in-store merchandise that convenience stores sell is consumed within one hour of purchase, and 65% is immediately consumed 24

25 US C-STORE INDUSTRY FACTS Convenience stores have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes Convenience stores are everywhere. There are 155 thousand convenience stores in the United States or one store for about every 2,100 people and c-stores account for more than one-third (34.1%) of all outlets in the United States. The convenience store industry is a destination for food and refreshments An average convenience store selling fuel has around 1,100 customers per day, or more than 400,000 per year. Cumulatively, the U.S. convenience store industry alone serves nearly 160 million customers per day, and 58 billion customers every year. The convenience store industry is America's primary source for fuel - Self-serve at the pump is a part of most convenience stores' fueling operations 25

26 26 MAKING IT EASY BRAND PILLARS SUPPORTING OUR PROMISE

27 BRAND PILLARS PRODUCTS FOR PEOPLE ON THE GO Food Hot Dispensed Beverages Cold Dispensed Beverages Car Wash Private Label Fuel 27

28 BRAND PILLARS EASY VISTS Predictable in-store and forecourt experience Clean #2 reason impacting shoppers decision of which c-store to visit (after location) In-stock Out-of-stock is #1 reason for missed sale in c-stores Fast transaction 88% of US adults want their store checkout experience to be faster Source Convenience store news 28

29 BRAND PILLARS FAST & FRIENDLY SERVICE Recruitment & Hiring Employee engagement Employee turnover Service standards Training Physical appearance 29

30 LOCATION We completed the construction, relocation or reconstruction of 91 stores during fiscal 2017 and 23 since the beginning of fiscal

31 31 STRATEGIC INIATIVES - PREPARING FOR THE ROAD AHEAD

32 32 DIGITAL TRANSFORMATION

33 DIGITAL CONTROL OUR DESTINY AND CREATE OUR FUTURE Employee Experience & Value Proposition Customer Experience & Brand Promise Fuel Procurement Warehousing Logistics Construction & maintenance Operations & HSE Network, Format & Concept Sales & Service Convenience Backbone Make it easy to hit the target Stem Define right quality and deliver at lowest possible cost Front-end Constantly sharpen the customer offer We view digitialization as a tremendous opportunity to drive growth and create value throughout our organization. 33

34 OUR VIEWS ON DIGITAL It is not a temporary thing it is part of every aspect of how we do business It is not a one-time program it is a shift of mindset and way of working It is not just IT or Marketing it is orchestration across the entire arrow 34

35 BROAD PORTFOLIO OF DIGITALIZATION OPPORTUNITIES Loyalty Mobile Payments Social Medias Site Presence Car Connectivity Data Analytics Insights and Merchandizing Strategy Employees Communication Tools Personalized Promotions Supply Chain POS Transformation Artificial Intelligence Robotics Reporting Our strategy will be to focus on opportunities that can unlock the greatest business benefits with main objectives being: Enhancing our customers experience behind the Circle K brand promise Enhancing our employees experience behind the employee value proposition Driving operational performance and back office efficiency 35

36 36 MOBILITY IS CHANGING BRINGING SIGNIFICANT OPPORTUNITIES

37 TRANSPORTATION VEHICLES - USEFUL FACTS Average lifecycle of vehicles is years Global vehicle fleet is more than 1.2 billion vehicles and is expected to reach 2 billion in Worldwide electric vehicle sales % total: 1.10% Worldwide electric vehicle fleet is approximately 2 million vehicles or 0.2% of total fleet US electric vehicles penetration is less than 1% Currently, total cost of ownership for electric vehicles is significantly higher than ICE vehicles Limited line-up of electric vehicles #1 selling vehicle in the US: Ford F-150 Charging infrastructure and technology not mature Electric vehicle range remains limited Number of vehicles is increasing Number of miles driven per vehicle is increasing In the US, the electric grid is highly carbonized US fuel retail industry is highly fragmented. More than 60% of the 154k cstores are operated by single store or small chain operators (<11 stores) Countries with high EV penetration heavily subsidize EVs Countries that sopped or significantly reduced subsidies have seen EV sales plunge 37

38 COUCHE-TARD S VIEW Gradual and manageable change process Continuous monitoring Industry s reaction Opportunity Continued focus on business ACT s competitive advantages 38

39 A GRADUAL AND MANAGEABLE CHANGE PROCESS Global mobility trends will change how we think about cars and demand for fuel is going to decline but Couche-Tard believes that this change is going to happen gradually because In order for substantial electric vehicle penetration: Cost of electric vehicles will need to move closer to traditional internal combustion engine cars whether through reduction in manufacturing/battery costs or significant subsidies from the government authorities (which we do not believe are sustainable in most countries) Charging infrastructure needs to expand, adapt and move to a more standard, predictable offer in order to convince the consumers of the practicality of the product and its resistance to obsolescence Selection of electric vehicles needs to substantiate in order to meet needs and expectation of consumers Range of EVs will need to increase in order to adapt to North American driving habits In order to deliver significant GHG emission reductions, transport electrification needs to go hand-in-hand with the decarbonisation of electricity generation Electric grid needs to be adapted in terms of capacity and battery production capabilities need to significantly ramp-up

40 POSSIBLE OFFSETS TO DECLINING FUEL DEMAND Possible decline in number of stations and fuel volume consolidation. Out of 155k convenience stores in the US, 60% are operated by single store operators Increased fuel margins Higher share of premium fuels (higher margins) Expansion of current convenience offer towards higher margin categories Increasing number of vehicles Increasing number of miles driven per vehicle Industry s participation in the electrification process

41 ACT S COMPETITIVE ADVANTAGES Scale & Buying Power Experience in transforming and adapting Decentralized model Norway Laboratory Proven capacity to transform and Innovate Strong balance sheet and capacity to invest 41

42 COUCHE-TARD S CONTINUED FOCUS ON OPTIMIZING BUSINESS Continued commitment towards growing and improving our current fuel business Continued improvement of offer and adaptation to changing customers needs Excellence in execution and capacity to innovate Continued adaptation of our fuel branding strategy Improved supply conditions Cost-efficiency of the our fuel value chain and other parts of the business Leverage our scale and competitive supply condition in order to further consolidate the market Continued work towards our the transformation of our concept mainly through leveraging: Using our past experience in adapting to changing market conditions (ex. Tobacco, grocers extended hours of operations) Testing and introducing new and innovative convenience concepts Using Norway as a live-pilot for upcoming changes

43 CONTINOUS MONITORING Although we believe that changing global mobility trends are going to happen gradually and that US fuel demand is going to continue to increase or be stable for another 5-10 years, we are committed to proactively monitor the change in trends and to work towards adapting our business model in order to take advantage of the opportunities these new trends will bring to our business. 43

44 ALIMENTATION COUCHE-TARD INC. VALUE CREATION AND FINANCIAL REVIEW

45 OUR FOUR PILLARS OF VALUE CREATION THE EQUATION Value Drivers Protect Value & Enable Growth Organic Growth Acquisitions Cost Discipline Capital Structure & Financial Discipline Value Creation 45

46 ORGANIC GROWTH Customer Focus Digital Key Categories Network Development Organic Growth Innovation Branding Execution Private Label Continuous Improvement 46

47 ORGANIC FISCAL 2017 TOP-LINE GROWTH Europe SSS +3.5% Canada SSV (-0.3)% Europe SSV +1.0% Organic Growth Canada SSS +0.1% US SSS +2.0% SSS: Same-store merchandise sales SSV: Same-store volume US SSV +2.6% 47

48 ORGANIC SUSTAINABLE TOP-LINE GROWTH Merchandise & Service Sales (millions of US dollars) Road Transportation Fuel Volume (millions of gallons) +10% CAG 6,599 7,596 7,953 8,276 10,072 10, % CAG 4,613 6,945 7,626 8,135 10,502 11, % Same-store Merchandise Revenue Growth 5% Road Transportation Fuel Same-Store Volume Growth -5% US Europe Canada -5% US Europe Canada CAG: Five-year compounded annual growth - fiscal 2017 over fiscal

49 ORGANIC GROWTH LEADING TO STRONG MARGINS IN ALL GEOGRAPHIES Europe 42.4% Organic Growth Canada 33.8% United States 33.2% FISCAL 2017 MERCHANDISE & SERVICE MARGIN 49

50 NO CLEAR CORRELATION BETWEEN FUEL PRICES & MARGINS U.S Market (1) Q1 LTM No clear correlation between fuel selling price and margins Our margins are not directly impacted by lower fuel selling prices Lower fuel prices leave customers more money in their pockets for their in-store shopping Motor fuel price (US dollars per gallon) Motor fuel margin (US cents per gallon) U.S Fuel Margins (CPG) (1) Canadian Fuel Margins (CPL) (1) Norwegian Fuel Margins (NOK PL) (2) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q US margins (CPG) Trend CA margins (CPL) Trend NOK margins per litre Trend Swedish Fuel Margins (SEK PL) (2) Danish Fuel Margins (DKK PL) (2) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q SEK margins per litre Trend DKK margins per litre Trend 50 (1) For company-operated stores only (2) For total network

51 US FUEL MARGINS TRENDS Year-over-year volatility Long term trend is up ACT Historical US Fuel Margins (CPG) +1.9 CAG Large integrated oil companies out of retail. Market dominated by pure play retailers who need to maintain and grow margins in order to maintain profitability Higher premium fuel penetration US Industry Historical Fuel Margins (CPG) Large integrated oil companies out of retail. Market dominated by pure play retailers who need to maintain and grow margins in order to maintain profitability Higher premium fuel penetration 51 Improved, more sophisticated pricing strategies Improved, more sophisticated execution Improved supply conditions ACT: Fiscal Year / Industry: Calendar Year Sources: ACT reporting documents and NACS SOI Annual Report.

52 ACQUISITIONS Identify the right opportunities Deleveraging Strike the right deal at the right price Acquisitions Realization of available synergies Swift and efficient integration 52

53 PROVEN TRACK RECORD OF SUCCESSFUL ACQUISITIONS Acquisitions Garvin oil Revenue ($) Pump N Shop Winners Sterling Stores Compac Food Stores Net Debt/ Adjusted EBITDA (1) Stores Acquired (2) (3) 1.0 (3) 1.1 (3) 1, , , , (3) Agreement signed for additional stores acquisition in fiscal (1) This ratio represents the following calculation: long term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. Refer to the Corporation s MD&As for more details. (2) Including full-year results for SFR. (3) Pro forma The Pantry for 2015, Topaz for 2016, ESSO for 2017 and CST for 2018.

54 EXCEPTIONAL DELEVERAGING TRACK RECORD Acquisitions ACT is committed to maintaining a strong balance sheet and sustaining its investment grade credit rating Circle K Acquisition No Transformational Acquisition SFR Acquisition The Pantry, Topaz and IOL stores Acquisitions Adj. Net Debt / Adj. EBITDAR (4) $804M Acquisition 4.2 2,453 Stores Acquired 1,017 Stores Acquired 2,299 Stores Acquired 2,269 Stores Acquired Rapid deleveraging after transformational acquisition Strong credit metrics for several years $3.6B Acquisition 3.6 Leverage post SFR acquisition lower than Circle K $1.7B $1.7B Acquisition $0.3B Acquisition Acquisition F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 Pro Forma F2013 F2014 F2015 (1) F2016 (2) F2017 (3) Demonstrated track record of rapid deleveraging after acquisitions 54 (1) Pro forma The Pantry (2) Pro forma Topaz (3) Pro forma Esso (4) This ratio represents the following calculation: long-term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings Before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items.

55 DELIVERING ON SYNERGIES THROUGH OUR ACQUISITIONS Acquisitions Synergies Statoil Fuel and Retail Target: $150M - $200M Realized: >$200M Synergies CST Brands, Inc Initial target for the first 36 months: $150M $200M Synergies The Pantry Target for the first 24 months: $125M Realized: >$125M 55

56 COST CONTROL PART OF OUR DNA 1.9% Year-over-year expense growth 1.5% Optimization of Shared Services Strategy Disciplined Culture Continuous Benchmarking 0.2% 0.8% 0.2% AI, Robotics Cost Control Sharing of Best Practices (1) -0.9% Scalable Organization, Systems & Processes Economies of Scale Cost Efficient Systems 5-year Average : +0.7% (1) Adjusted for the estimated impact of the 53rd week. 56

57 CAPITAL STRUCTURE & FINANCIAL DISCIPLINE Competitive cost of debt Rapid deleveraging after acquisitions Well spread maturities Disposal of non-core assets Cost Discipline Access to liquidities Cash and credit facilities Dividend growth Careful allocation of capital 57

58 STRONG CAPITAL STRUCTURE & FINANCIAL DISCIPLINE Free Cash Flow (in million dollars US) Adjusted Leverage Ratio (2) 3.07:1 +17 % CAG , Average Cost of Debt 2.7 % Investment Grade Credit Profile Q1 LTM Free Cash Flow ~$1.0 Billion Capital Structure & Financial Discipline $2.5 Billion and CA $700M of senior unsecured notes (3) ~$1.5 Billion available under credit facilities ~$1.0 Billion in Cash Standard&Poors: BBB (Stable) Moody s: Baa2 (Stable) 58

59 STRONG AND SCALABLE FREE CASH FLOW CONVERSION Capital Structure & Financial Discipline , , , , ,331 2, (¹) 2016(²) 2017 EBITDA Business disposals Net capex Dividends Income tax paid Interest paid

60 DISCIPLINED CAPITAL ALLOCATION Capital Structure & Financial Discipline Income producing 73% CAPITAL EXPENDITURES ALLOCATION 27% 23% 39% 40% 34% 38% Income producing 78% Development Commercial Programs Maintenance Continuous improvement in capital allocation efficiency

61 RESULT OF THE VALUE CREATION EQUATION : ADJUSTED DILUTED NET EARNINGS PER SHARE AND RETURN ON EQUITY GROWTH Adjusted Diluted Net Earnings per Share (USD) Value Creation Return on Equity +22% CAG % 21.5% 22.6% 24.9% 27.0% 22.5%

62 RESULT OF THE VALUE CREATION EQUATION : DIVIDEND GROWTH Dividends Paid US Millions +24 % CAG Value Creation Dividend vs Free cash flow Q1 LTM FCF +17 % CAG , Quarterly dividend increased twice during fiscal 2016, from CA 5.50 per share to CA 7.75 per share, an increase of 41%. In the second quarter of fiscal 2017, the quarterly dividend increased to CA 9.00 per share (remained at CA 9.00 for the third and fourth quarters of fiscal 2017 as well as for the first quarter of fiscal 2018) Q1 LTM Free cash flow Dividend 62

63 RESULT OF THE VALUE CREATION EQUATION : STOCK VALUE GROWTH 5-Year Stock Performance 450.0% Value Creation 350.0% 250.0% 150.0% 50.0% -50.0% 8/30/2012 8/30/2013 8/30/2014 8/30/2015 8/30/2016 8/30/2017 Variance ACT stock price (%) Variance TSX index (%) Source: Bloomberg. As of August 30,

64 ALIMENTATION COUCHE-TARD INC. ACQUISITIONS COMPLETED DURING FY18 Value Creation

65 CST TRANSACTION SUMMARY & OVERVIEW Transaction Summary Acquired 100% of the outstanding shares of CST Brands Inc. ( CST ), representing a total enterprise value of US $4.4 billion or approximately US, $4.2 billion excluding the value of CST s equity participation in CrossAmerica Partners LP ( CAPL ). In order to meet Canadian regulatory authorities requirements, ACT sold to Parkland Fuel Corporation a large portion of CST s assets in Canada and retained 157 company-operated stores. In order to meet US regulatory authorities requirements, ACT sold 70 sites to Empire Petroleum Partners, LLC. And retained 1,106 sites 41% 5% 54% Gross Profits (2) 30% 70% Strategic & Financial Impact Transaction is expected to generate between US$150M and US$200M in annual cost synergies to be realized over the next 3 years Provides ACT control over CAPL s General Partner, ownership of associated Incentive Distribution Rights and equity stake of 20.5% in CAPL (CAPL is a distributor of branded and unbranded petroleum for motor vehicles in the U.S.) Merch. & Serv. Fuel US Canada (1) As of March 31, Excludes CrossAmerica Partners LP. (2) LTM for the period ended March 31, Excludes CrossAmerica Partners LP. 65

66 HIGHLIGHTS OF THE TRANSACTION Strategic Importance Acquisition Rationale Significant Synergies Potential Unique opportunity to acquire one of few remaining potential North American public targets exceeding 1,000 stores ACT to approach 9,500 North American stores Increased scale and leverage to create brand awareness and take advantage of merchandise and fuel procurement opportunities Operating model alignment Strong geographic Entry in Texas Void fill in US Southeast Strenghtening of existing network Talent acquisition and crosslearning potential Valuable real estate portfolio MLP structure Top-line upside Sharing of business awareness and best practices Cost optimization Optimization of supply conditions Optimization of distribution strategy Elimination of redundant costs 66

67 PRO FORMA PROFILE FOR CST - FINANCIAL (billions of US Dollars) (1) (2) At Closing Pro Forma Pre-synergies EBITDA Contribution Revenues % of total 82% 18% 100% GP % % of total 85% 15% 100% EBITDA (3) % Store network 12,664 1,263 13,927 Debt 7.6 DEBT/EBITDA 2.4 Couche-Tard has strengthened its leadership position as a global convenience store operator with pro forma EBITDA of $3.1B 67 (1) Couche-Tard Fiscal 2017 results (2) After reflecting sale to Parkland and the sales agreement with Empire Petroleum, CST LTM financial results as at March 31, EBITDA includes a gain of $347 million from disposal of assets. (3) Includes Couche-Tard s Company-Owned/Dealer-Operated and Dealer-Owned/Dealer-Operated sites as well as its International licensees as at June 30, Excludes CrossAmerica Parners LP

68 On July 10, 2017, Alimentation Couche-Tard Inc. announced that it had signed an agreement with Holiday Companies to acquire all of the issued and outstanding shares of Holiday Stationstores, Inc. and certain affiliated companies ( Holiday ), an important convenience store player in the Upper Midwest United-States, with 522 stores, a food commissary and a fuel terminal in Newport, Minnesota, which supplies one third of the stations. 374 stores are operated by Holiday and 148 by franchisees Holiday has a strong car wash business with 221 locations Allows Couche-Tard to expand it s geographic footprint into the Upper Midwest U.S. and to gain a strong position in the Greater Twin Cities metropolitan area. The acquired sites are located in the following states: Minnesota, Wisconsin, Washington, Idaho, Montana, Wyoming, North Dakota, South Dakota, Michigan and Alaska. The transaction is anticipated to close in the fourth quarter of Couche-Tard s fiscal year 2018 and is subject to customary regulatory approvals and closing conditions. The Corporation expects to finance the transaction by using its available cash and existing credit facilities. 68

69 A DISCIPLINED CONVENIENCE STORE OPERATOR AND INTEGRATOR Broad Geographic Footprint with Leading Market Positions Superior Product Offerings Track Record of Highly Disciplined Growth and Debt Reduction Attractive Sector Dynamics Powerful Financial Results Attractive Synergy Potential Disciplined Management Culture Proven Capacity to Transform and Innovate Optimistically transforming our future 69