A Web portal All About Energy source

Parkland: Parkland’s strategy to drive sustainable growth through the energy transition

2

Parkland Corporation (“Parkland”, “we”, the “Company”, or “our”) (TSX:PKI), a leading convenience retailer, fuel marketer and consolidator, introduced today its refreshed strategy to drive sustainable growth and released its Sustainability Report which includes ambitious greenhouse gas emission reduction targets. Parkland will host its 2021 Investor Day later today, where its executive team will outline the company’s continued growth and energy transition plans.

“Parkland’s proven business model and resilient base business is uniquely positioned to capture high growth opportunities through the energy transition,” said Bob Espey, President and Chief Executive Officer. “We are focused on meeting the evolving needs of our retail customers who are seeking convenience destinations which include high-quality food offers at all times of the day. Furthermore, we are well positioned to partner with our commercial customers to help them decarbonize their operations. We expect our strategy to deliver significant near-term value, sustainable per share returns, and position our business for long-term success.”

During today’s Investor Day, Parkland’s executive team will discuss:

The tremendous opportunity we see through the energy transition. We believe the decarbonization of society is inevitable, but expect it will look different in each channel and region we operate. Our refreshed strategy leverages our existing business which has a long, profitable future, and will generate strong returns and cash flow to enable investment in energy transition opportunities. Underpinned by the strong fundamentals in convenience and food, renewable fuels, and emerging demand for electric vehicle charging, we will meaningfully shift our capital allocation toward these high-return opportunities. Highlights include:

· Developing our existing business; our business model is underpinned by strong market fundamentals, and a track record of delivery through organic growth, acquiring and integrating quality businesses, and capturing supply chain cost advantages. We will continue to consolidate high-quality assets in markets where we expect long-lasting customer demand, seizing opportunities to create additional value and position the business to transition in the future.

· Diversifying our retail business; our retail sites of the future will look different. We will build on our existing capabilities to create convenience destinations, with high-quality stores and significantly expanded all-day-dining food offerings. In addition, we will launch standalone ON the RUN conveniences stores, and enhance our digital capabilities in support of ON the RUN, food, and electric vehicle charging, where we see demand.

· Helping our customers Decarbonize; we will leverage our existing capabilities in supply, trading and refining to provide our commercial customers with a portfolio of low carbon products and services. This includes almost tripling our co-processing volumes by 2025 to over 300 million liters. Our ambition is to deliver 1MT of annual greenhouse gas (“GHG”) emissions reductions, equivalent to making approximately 350,000 vehicles zero emission.

2022 Guidance

Parkland targets continued growth in 2022. Highlights include:



· Adjusted EBITDA (attributable to Parkland) of $1.45 billion +/- 5 percent. This is up approximately 16 percent from 2021 guidance, and approximately 50 percent from 2020.

· Capital expenditures (attributable to Parkland) of between $475 million and $575 million, comprised of:

· Growth capital expenditures (attributable to Parkland) of between $250 million and $300 million.

· Maintenance capital expenditures (attributable to Parkland) of between $225 million and $275 million.

Parkland Publishes Sustainability Report: ‘Drive to Zero’

This morning, we published our latest Sustainability Report. Titled ‘Drive to Zero’, it reflects our goal to achieve zero safety incidents, zero spills, zero tolerance for racism and discrimination, zero tolerance for corruption, bribery, and unethical behaviour and to help our governments achieve their goal of net-zero emissions by 2050. Grounded in meaningful and measurable targets, our report formalizes our enterprise-wide sustainability strategy. Key commitments include:

· Additional ESG performance measures incorporated into executive compensation by 2022

· Conduct proactive sustainability assessments for all acquisitions starting in 2022

· Reduce our customers’ GHG emissions by 1MT through low-carbon fuel production by 2026

· Reduce GHG emissions from our marketing businesses by 40 percent per site by 2030

· Reduce GHG emissions from our refining business by 15 percent per barrel processed by 2030

Parkland’s Sustainability Report can be viewed here: https://www.parkland.ca/en/sustainability/overview

Investor Day Webcast Details

The Investor Day presentation will be webcast, with video, beginning at 9 a.m. Eastern Time (7 a.m. Mountain Time) on November 16, 2021. For analysts and investors who have already registered to attend in person, or remotely, we look forward to your participation.

Analysts and Investors who have not yet registered, but wish to attend remotely, are encouraged to email [email protected] Analysts and Investors who have not yet registered, but wish to attend in-person, are encouraged to email Melanie Evans at [email protected]

Parkland’s Investor Day presentation is available online at https://www.parkland.ca/en/investors/presentations-webcasts. The video webcast of the presentation will be available for replay from November 18, 2021 using the same link.

Comments are closed.