Analyst Day - Section 7 - 5 Year Growth Strategy

We are good at folding

businesses in.

What are we?

We are Canada's largest

independent fuel distributor

and marketer in a market of

Parkland's Market Share

78 billion litres

this is where we want to be.

10%

5.2%

of Canadian fuel passes

through Parkland's hands.

0%

Gasoline, diesel and light fuel sold in Canada in the last 12 months.

4.2

x

billion litres

We've come

a long way.

one penny in savings

1975

=$42 million

Our Five Year Strategy To Deliver Value

The Growth Pipeline

Attract and retain customers

through great service

"We've doubled our business!"

- Marcel Hochstein - Olds, Alberta

high touch service model

Growth Capital

Organic

(cc) image by nuonsolarteam on Flickr

• 6.4% in 2011
• Normally 2% - 3%
• Target: 100 ML / year

Acquire independents

Small

independents

• Simple process
• Minimize disruptions
• Preserve relationships

Large

independents

Acquisitions

500 ML targeted / year

Partnering with

major oil

Major oil company assets

• Billing and collections
• Grow their brands
• High touch

We see

7 billion

litres

The Acquisition Pipeline

in play over 5 years

2.25 BL

2012

1.4 BL

2013

1.0 BL

2014

0.9 BL

2015

2016

1.4 BL

We are aiming for

2.5 billion

litres

4.5

billion litres

in additional opportunities

if the price is right

Grow to 7 billion litres

Capture 1/3 cent per litre in economies of scale

Competitive Supply Contracts

diesel

integrate the

back office

1 - 2 years

operational improvements

gasoline

Integration Machine

6 - 12 mos

supply contracts

3-6 mos

Enhancing Supply Profits

Operational Efficiency

1/3 cpl

Edmonton

Give Me Five!

$11 million identified

Supply Management

Calgary

Aim to be the easiest

to do business with

• Accurate
• Reliable
• Safe
• Friendly

Terminal Capability

Building the most efficient and scalable fuel marketing platform in Canada

in $50 increments

( that's 80 million

transactions!!!!)

$4B

will we be?

The Team

What are we?

Parkland's Market Share

10%

10%

5.2%

5%

x

7 BL

of Canadian fuel passes

through Parkland's hands.

0%

=$70 M

EBITDA ($ million)

$300

$250 M

EBITDA

$55M - Acquisitions

$200

$70 M - Penny Plan

$125 M

EBITDA

$100

$125M - 2011 Norm

$0

2011

2016

Assumptions

Delivering value one litre at a time!

• Maintain same business mix
• Organic growth 2-3%
• Accretive acquisitions
• The health of the industry

Holding us accountable

• Average volume growth: 500 ML / Year
• ROCE: 100 basis point improvement per year
• OPEX: 1/3 cent per litre reduction
• MG&A: 1/3 cent per litre reduction