Parkland (PKI) Investor Presentation summary

Business overview and financial performance

• Operates as a leading distributor of fuel and convenience products with an enterprise value of $12.8B and market capitalization of $6.7B as of June 2024.

• Achieved a 3.7% dividend yield and approximately 30% total shareholder return since January 2023.

• Adjusted EBITDA for TTM Q2 2024 was ~$1.9B, with net earnings of $381M and available cash flow per share of $4.75.

• Diversified operations across Canada, the USA, and international markets, with ~27B litres of fuel sold TTM Q2 2024.

• Maintains a strong brand portfolio and a network of ~4,000 locations and ~6,000 employees.

Growth strategy and operational initiatives

• Targets 2024 adjusted EBITDA of $1.9–$2.0B and capital expenditures of $475–$525M.

• Aims for 2028 adjusted EBITDA of $2.5–$3.0B and available cash flow per share of $8.50, reflecting 10–15% CAGR.

• Focuses on organic growth through retail food offerings, digital enhancements, and expanding renewable energy and EV charging.

• Retail and commercial adjusted gross margin increased by 14–19% since 2022, with food and convenience contributing 21% of retail margin.

• Strategic supply chain and logistics optimization support growth and margin expansion.

Capital allocation and financial discipline

• Plans to generate $6B in available cash flow from 2024–2028, allocating ~25% to dividends/buybacks, 25% to organic growth, and 50% to deleveraging.

• Dividend per share has grown at a 3% CAGR since 2012, reaching $1.40 in 2024.

• Maintains a prudent balance sheet with no bond maturities until 2026 and a leverage ratio trending toward the low end of the 2–3x target by 2025.

• Additional capital will be directed to the highest value opportunities, including further buybacks or inorganic growth.