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Parkland Penny Plan Update
The Parkland Penny Plan, announced on May 15, 2012, is targeting:
-- Growth to seven billion litres in fuel volumes by 2016 through organic growth and acquisitions; and-- 1 cent per litre in additional EBITDA margin by 2016 through economies of scale, better supply options, and efficiencies.
Penny Plan Scorecard Summary:
---------------------------------------------------------------------------- 2016Area Commitment Analysis Target Q1 2013 2012---------------------------------------------------------------------------- Organic Gaining Market Share 0.5 (12.7) (29.7) growth Amid Lower Consumption billion YTD YTD Base volumes, excluding litres million million Elbow River Marketing, litres litres continue to be down dueGrow to softness across several commercial sectors partially offset by strong sales efforts. --------------------------------------------------------------------- Major $27 million in Adjusted 2.5 620 - acquisitions EBITDA Added billion million The acquisition of litres litres Elbow River Marketing, Sparling's Propane, and TransMontaigne will contribute towards the $55 million in Adjusted EBITDA Parkland is targeting by 2016. The mergers and acquisitions environment remains very active. The Q1 2013 results exclude 327 million litres of fuel and propane volume from Elbow River Marketing.============================================================================ Supply On Track 100% On Track On Track Margins Parkland continues to Normalized extend its progress on profit replacing the average plus 1/3 normalized profit(ii) cent of its refiners' margin contract through theSupply negotiation of supply contracts, supply management, terminals, and the addition of Elbow River Marketing. No problems are foreseen in replacing the volume.============================================================================ Operating Significant Progress 3.60 cpl 3.52 cpl 3.61 cpl costs Elbow River Marketing's TTM TTM volumes and operating costs have been excluded in theOperate calculations this quarter. Lower costs in Commercial and Retail drove operating costs on a cpl basis down. --------------------------------------------------------------------- Marketing, MGA Decreases on Base 1.59 cpl 1.85 cpl 1.87 cpl General and Business TTM TTM Administrati Elbow River Marketing's on ("MGA") volumes and MG&A costs costs have been excluded in the calculations this quarter. Acquisition and restructuring costs of approximately $1.5 million in the first quarter of 2013 have also been excluded to present a fair portrayal of the ongoing MGA costs in Parkland's base business. --------------------------------------------------------------------- Total Safety Continues to Less than 2.53 2.33 Recordable Improve 2 TTM TTM Injury Lost time injury Frequency frequency improved to 0.55 during the first quarter compared with 2.03 in Q1 2012. Total recordable injury frequency improved to 2.53 compared with 3.66 in Q1 2012.----------------------------------------------------------------------------(i) Normalized for Cango and one-time costs; (ii)The average annualized benefit under this contract excluding performance from outlier yearsNote: 2016 cost targets will be updated in the event of a significant change to Parkland's business mix.Abbreviations: CPL = Cents per litre YTD = Year-to-date TTM = Trailing twelve months----------------------------------------------------------------------------
