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    ATD   CA01626P3043

ALIMENTATION COUCHE-TARD INC.

(ATD)
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Delayed Toronto Stock Exchange  -  04:36 2022-08-12 pm EDT
59.49 CAD   +1.85%
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Alimentation Couche Tard : 2022 Annual Information Form

06/29/2022 | 05:52pm EDT

Annual information form

Founded in 1980, Alimentation Couche-Tard Inc. (the "Corporation") is a leader in the convenience store industry, with more than 14,000 stores and approximately 122,000 people in its network worldwide.

We are a Canadian company, governed by Business Corporations Act (Québec). Our shares trade on the Toronto Stock Exchange ("TSX") under the symbol ATD. As of April 24, 2022, we had a total market capitalization of approximately Cdn$59 billion.

Our business risks are discussed starting on page 33 of our annual MD&A and are incorporated by reference in this document. Our 2022 Annual Report and MD&A are available on our website (corpo.couche-tard.com) and on SEDAR (sedar.com).

Contents

  • About our business
  1. Three areas of business
  1. Our store network
  1. Our structure
  2. General developments of the business
  1. Capital structure
  1. Governance
  1. Appendix

Where to find more information

Additional information, including directors' and officers' renumeration and indebtedness, principal holders of Couche-Tard's securities and securities authorized for issuance under equity compensation plans is included in our Management Proxy Circular. Our 2022 Annual Report, which contains our audited consolidated financial statements for the fiscal year ended April 24, 2022 and management's discussion and analysis (MD&A), has additional financial information.

These documents and other information about Alimentation Couche-Tard Inc. are all available on our website (corpo.couche-tard.com) and on SEDAR (sedar.com).

A History of Entrepreneurship and Growth

Forward-looking statements

This annual information form includes certain statements that are "forward-looking statements" within the meaning of the securities laws of Canada. Any statement in this annual information form that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this annual information form, the words "believe", "could", "should", "intend", "expect", "estimate", "assume" and other similar expressions are generally intended to identify forward-looking statements.

It is important to know that the forward-looking statements in this document describe the Corporation's expectations as at June 28, 2022, which are not guarantees of the future performance of Couche-Tard or its industry, and involve known and unknown risks and uncertainties that may cause Couche-Tard's or the industry's outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements.

Couche-Tard's actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate. A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward- looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on Couche-Tard's business. For example, they do not include sales of assets, monetization, mergers, acquisitions, other business combinations or transactions, asset write-downs, the effect of the COVID-19 pandemic on all aspects of our business and geographies or other charges announced or occurring after forward-looking statements are made.

Unless otherwise required by applicable securities laws, Couche-Tard disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under "Business Risks" starting on page 33 in our annual MD&A as well as other risks detailed from time to time in reports filed by Couche-Tard with securities regulators in Canada.

IN THIS DOCUMENT

  • we, us, our, Couche-Tard and the Corporation mean Alimentation Couche-Tard Inc. and its wholly-owned subsidiaries
  • AIF and this document mean this annual information form.

Information is as of

April 24, 2022, the last day of our most recently completed fiscal year, unless stated otherwise.

All dollar amounts are in U.S. dollars unless stated otherwise.

Registered and head office: Alimentation Couche-Tard Inc. 4204 Industriel Boulevard Laval, Québec H7L 0E3 Canada

Alimentation Couche-Tard Inc. 2022 Annual Information Form

3

About our business

Couche-Tard's vision is to become the world's preferred destination for convenience and mobility. Our mission is to make our customers' lives a little easier every day. To this end, we strive to meet the demands and needs of people on the go. We offer fast and friendly service, providing food, hot and cold beverages, car wash services, and other high-quality products and services including road transportation fuel, designed to meet or exceed our customers' demands in a clean, welcoming and efficient environment.

Our business model is key to our success. We are a customer-centric, financially disciplined organization that routinely compares best practices, uses our global experience to enhance our operational expertise and continually invests in our people and our stores.

Worldwide network

Our store network includes more than 14,000 sites in three markets:

NORTH AMERICA

(page 13) We are:

  • the Canadian leader in the convenience store industry
  • one of the largest independent convenience store operators in the United States in terms of the number of company owned and operated stores.

EUROPE & OTHER

(page 15)

We are a leader in convenience store and road transportation fuel in Scandinavia (Norway, Sweden and Denmark), Ireland, the Baltic countries (Estonia, Latvia and Lithuania), and have an important presence in Poland.

As as a result of the geopolitical events leading to economical sanctions imposed from and against Russia, we have suspended our operations in Russia.

INTERNATIONAL

(page 16)

We operate a network of company-operated convenience stores in Hong Kong.

There are also more than 1,800 stores in

13 other countries and territories operating under the Circle K trademark through licensing agreements.

REVENUE (fiscal 2022) ($ millions)

$7,949

$13,107 $41,754

United States (66%)

Europe and other (21%)

Canada (13%)

As at April 24, 2022, approximately 122,000 people work in our network:

  • 96,000 in our retail network and service offices in North America
  • 22,000 in our retail network, terminals and service offices in Europe
  • 4,000 in our retail network and service offices in Asia

In Scandinavia, membership in a trade union is particularly common in the business support category. Approximately 90% of our front-line employees in Denmark, 2.3% of our employees in Norway, and 100% of our employees in Sweden are members of a trade union.

GROSS PROFIT¹ (fiscal 2022) ($ millions)

$1,346

2,082 $7,577

United States (69%)

Europe and other (19%)

Canada (12%)

  • For additional information on these performance measures not defined by IFRS, please refer to the section "Non-IFRS measures" of our Management Discussion & Analysis for the 52-week period ended April 24, 2022 available on SEDAR at www.sedar.com.

Alimentation Couche-Tard Inc. 2022 Annual Information Form

4

Three areas of business

We have three main sources of revenue: merchandise and services, road transportation fuel and other.

MERCHANDISE AND SERVICES

(page 10)

We sell a broad selection of in-store merchandise and services that are designed to appeal to the convenience needs of our customers.

We also have wholesale sales of merchandise and goods to certain independent operators and franchisees.

ROAD TRANSPORTATION FUEL

(page 11)

We are a retail seller of road transportation fuel at full-service and automated sites.

As a wholesaler, we purchase and resell road transportation fuel to certain independent store operators, and make non-retail bulk sales to customers with their own storage facilities.

OTHER

(page 11)

We sell stationary energy and aviation fuel.

We also earn rental income from operating leases for certain lands and buildings we own and lease, as well as from car rental revenue.

REVENUE (fiscal 2022) ($ millions)

$855

$16,604

$45,351

Merchandise and services (27%) Road transportation fuel (72%) Other (1%)

Strengths that set us apart

Diverse and Competitive Store Network

We have a network of more than 14,000 stores worldwide including a network of more than 7,000 stores in the United States, making us the second largest player in the country. The geographic diversity of our footprint reduces our exposure to adverse local and/or regional market conditions, including fluctuations in road transportation fuel prices.

GROSS PROFIT¹ (fiscal 2022) ($ millions)

$166

We compete with many national, regional, local and independent retailers, including grocery chains, supermarkets, other convenience store chains, mini- convenience stores integrated with major oil companies' gas stations, pharmacies, quick-service restaurants, and dollar stores. We continually monitor our competitors, market trends and our market share, and are well positioned to react quickly to maintain our competitive position.

$5,177

$5,662

We develop networks of stores in the geographic areas where we operate. This allows us to study each market, refine our location strategy, and carefully manage the closure of any underperforming store. We put great care and invest significant resources in choosing the locations of our stores to maximize visibility and customer traffic, making it more difficult for new competitors to penetrate our markets. We own more than 4,500 lots and more than 5,200 buildings which provides greater flexibility for our day-today operations.

Our private brands for select products, investments in technology and innovation, and our focus on customer service also give us a competitive advantage.

Focus on Higher Margin Businesses

We have successfully put in place a compelling in-store merchandise and service offer which allows us to generate higher margins than those achieved through the sale of road transportation fuel. We are rolling out a prepared food program across our network in North America and an enhanced food offering in Europe, as well as growing our car wash business where our sites allow it, to further improve profit margins and differentiate our stores from those of our competitors. For Fiscal 2022, merchandise and services contributed to 51% of our gross profit(1) (47% for road transportation fuel), demonstrating a healthy balance between our main 2 segments.

Merchandise and services (51%) Road transportation fuel (47%) Other (2%)

  1. For additional information on these performance measures not defined by IFRS, please refer to the section "Non-IFRS measures" of our Management Discussion & Analysis for the 52-week period ended April 24, 2022 available on SEDAR at www.sedar.com.

Alimentation Couche-Tard Inc. 2022 Annual Information Form

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Alimentation Couche-Tard Inc. published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 21:51:08 UTC.


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