ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS THIRD QUARTER OF FISCAL YEAR 2023.

LAVAL, QC: For its third quarter ended January 29, 2023, Alimentation Couche-Tard Inc. ("Couche-Tard" or the "Corporation") (TSX: ATD) announces net earnings of $737.4 million, representing $0.73 per share on a diluted basis, compared with $746.4 million for the corresponding quarter of fiscal 2022, representing $0.70 per share on a diluted basis. The results for the third quarter of fiscal 2023 were affected by pre-tax acquisition costs of $2.7 million, as well as by a pre-tax net foreign exchange loss of $1.6 million. The results for the comparable quarter of fiscal 2022 were affected by a pre-tax net foreign exchange gain of $4.2 million, as well as by pre-tax acquisition costs of $3.2 million. Excluding these items, the adjusted net earnings1 were approximately $741.0 million, or $0.74 per share on a diluted basis for the third quarter of fiscal 2023, compared with $746.0 million, or $0.70 per share on a diluted basis for corresponding quarter of fiscal 2022, an increase of 5.7% in the adjusted diluted net earnings per share1. This increase is primarily driven by higher road transportation fuel gross profit1, by organic growth in the convenience activities, as well as by the favorable impact of the share repurchase program, partly offset by higher expenses and by the net negative impact from the translation of our foreign currency operations into US dollars. All financial information presented is in US dollars unless stated otherwise.

"As our markets across the globe, especially those in Europe, continue to face persistently high inflationary conditions, we have remained focused and committed to delivering a strong and consistent value to our customers and maintaining cost discipline in our operations. In convenience across the network, we had notable sales in our food program as well as with our private brand items, both offering high quality at lower price points. Throughout the quarter, we continued to be pleased with the resilience of our customers, and through our localized pricing efforts and on-going fuel promotions, we are providing them with further benefits. While our mobility results are still impacted by stay-at-home work patterns and higher prices, we continued to generate healthy fuel margins offsetting the decline in volumes," said Brian Hannasch, President and Chief Executive Officer of Alimentation Couche-Tard.

"We are excited by the progress we made expanding the network in both store count and services for our mobility customers. First, we closed on the acquisition to acquire True Blue Car Wash LLC, which operates 65 express tunnel car wash sites in the U.S. Southwest and Midwest. These sites are a natural extension of our leading car wash network and a great opportunity to extend our brand into a very attractive industry subcategory. We also announced a definitive agreement to acquire 45 Big Red Stores in Arkansas adding exceptional locations to our footprint in the state. Following the fulfillment of our obligations with the Competition Bureau (Canada), we can now bring the benefits of the Wilsons acquisition to our Canadian market. These additions to the network clearly strengthen our vision to become the world's preferred destination in convenience and mobility," concluded Brian Hannasch.

Claude Tessier, Chief Financial Officer, added: "Our results for the third quarter of fiscal 2023 reflect the effective execution of our cost optimization initiatives as well as our disciplined approach to deploy capital. On the cost side, our efforts have helped to mitigate the impacts from higher inflation across our network and we were pleased with the improvement we observed as the quarter progressed. On capital allocation, we have repurchased almost 27.0 million shares during the third quarter and almost 62.0 million shares over the past four quarters, making a noticeable impact on our adjusted diluted net earnings per share1. Our financial position remains strong, highlighted by our leverage ratio3 of 1.46, providing us with ample opportunities for the future. Our key return metrics continue to improve both sequentially and year-over-year with return on equity1 reaching 23.3% and return on capital employed1 reaching 16.6%. I am pleased by the teams' execution of our various initiatives this quarter and as we approach the end of our Double Again strategy, we will be looking to renew some of our initiatives, including around cost optimization."

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3 Please refer to the "Non-IFRS Measures" section for additional information on performance measures not defined by IFRS.

Significant Item of the Third Quarter of Fiscal 2023

During the third quarter and first three quarters of fiscal 2023, we repurchased 26.9 million and 42.6 million shares, for amounts of $1.2 billion and $1.9 billion, respectively. Subsequent to the end of the quarter, 8.1 million shares were repurchased for an amount of $373.0 million.

As at January 29, 2023, an automatic securities purchase plan was in place and allowed a designated broker to repurchase our shares on our behalf within pre-established parameters, giving rise to a liability of $391.3 million which is recorded in Other short-term financial liabilities on the consolidated balance sheet.

Changes in our Network during the Third Quarter of Fiscal 2023

On January 13, 2023, we entered into a binding agreement to acquire 45 company-owned and operated convenience retail and fuel sites operating under the Big Red Stores brand and located in the state of Arkansas, United States. The transaction, which would be financed using our available cash and/or existing credit facilities, is expected to close in the first half of calendar year 2023 and is subject to customary closing conditions and regulatory approvals.

On February 8, 2023, subsequent to the end of the quarter, we acquired all of the memberships interests of True Blue Car Wash LLC ("True Blue"). True Blue operates 65 express tunnel car wash sites under the brands Clean Freak and Rainstorm, in the Midwest and Southwest regions of the United States. The transaction was settled for a consideration of $395.9 million, including debt repayment, and is subject to post closing adjustments. The transaction was financed using borrowings available under our United States commercial paper program and available cash.

We acquired four company-operated stores, reaching a total of six company-operated stores since the beginning of fiscal 2023. We settled these transactions using our available cash.

We completed the construction of 34 stores and the relocation or reconstruction of 4 stores, reaching a total of 91 stores since the beginning of fiscal 2023. As of January 29, 2023, another 60 stores were under construction and should open in the upcoming quarters.

In connection with obtaining the Competition Bureau (Canada) approval for the Wilsons network acquisition, we entered into a consent agreement with the Commissioner of Competition to divest 34 company-owned and operated convenience retail and fuel locations, 1 company-owned and dealer-operated location, and 12 dealer-owned and operated locations in Atlantic Canada.

On March 1, 2023, subsequent to the end of the quarter, we divested these locations and 5 additional dealer-owned and operated locations for a consideration, subject to post-closing adjustments, of CA $77.6 million ($57.0 million). In addition, the consideration includes a contingent consideration receivable based on the future performance of the divested locations and which can go up to a maximum amount of CA $11.3 million ($8.5 million). We assessed that the fair value of the contingent consideration receivable was not significant.

During the quarter, as a result of the continued strategic review of our network, we entered into multiple sales agreements with various buyers for 31 sites in the United States. As at January 29, 2023, the assets and liabilities related to these sites were classified as held for sale and we expect that they will be sold during the fourth quarter of fiscal 2023.

Summary of changes in our store network

The following table presents certain information regarding changes in our store network over the 16-week period ended January 29, 2023:

16-week period ended January 29, 2023

Type of site

Company-

operated

CODO

DODO

Franchised and

other affiliated

Total

Number of sites, beginning of period

9,879

366

834

1,288

12,367

Acquisitions

4

--

--

--

4

Openings / constructions / additions

34

--

7

20

61

Closures / disposals / withdrawals

(36)

(1)

(20)

(34)

(91)

Store conversions

6

(6)

(1)

1

--

Number of sites, end of period

9,887

359

820

1,275

12,341

Circle K branded sites under licensing agreements

1,991

Total network

14,332

Number of automated fuel stations included in the period-end

figures

977

--

1

--

978

Exchange Rate Data

We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in the United States.

The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:

16-week periods ended

40-week periods ended

January 29, 2023

January 30, 2022

January 29, 2023

January 30, 2022

Average for the period(1)

Canadian dollar

0.7388

0.7932

0.7577

0.8000

Norwegian krone

0.0991

0.1142

0.1005

0.1156

Swedish krone

0.0942

0.1120

0.0959

0.1150

Danish krone

0.1394

0.1532

0.1386

0.1573

Zloty

0.2201

0.2476

0.2189

0.2561

Euro

1.0368

1.1396

1.0307

1.1699

Ruble

Not Applicable

0.0136

Not Applicable

0.0136

Hong Kong dollar

0.1279

0.1284

0.1276

0.1285

(1) Calculated by taking the average of the closing exchange rates of each day in the applicable period.

For the analysis of consolidated results, the impact of the translation of our foreign currency operations into US dollars is defined as the impact from the translation of our Canadian, European, and Asian operations into US dollars. Variances of our foreign currency operations into...