Susser Holdings Corporation Susser Petroleum Partners .
Susser Holdings CorporationSusser Petroleum PartnersAnalyst DayMarch 21, 2013
Safe HarborSome of the statements in this presentation constitute “forward-looking statements” about Susser HoldingsCorporation that involve risks, uncertainties and assumptions, including without limitation, our discussion andanalysis of our financial condition and results of operations. These forward-looking statements generally can beidentified by use of phrases such as “believe,” “plan,” “expect,” “anticipate,” “intend,” “forecast” or other similarwords or phrases in conjunction with a discussion of future operating or financial performance. Descriptions ofour objectives, goals, targets, plans, strategies, costs, anticipated capital expenditures, expected cost savings,costs of our store rebranding initiatives, expansion of our foodservice offerings, potential acquisitions, andpotential new store openings and dealer locations, are also forward-looking statements. These statementsrepresent our present expectations or beliefs concerning future events and are not guarantees. Such statementsspeak only as of the date they are made, and we do not undertake any obligation to update any forward-lookingstatement.We caution that forward-looking statements involve risks and uncertainties and are qualified by importantfactors that could cause actual events or results to differ materially from those expressed or implied in any suchforward-looking statements. For a discussion of these factors and other risks and uncertainties, please refer toour filings with the Securities and Exchange Commission (“the SEC”), including those contained in our AnnualReport on Form 10-K for our most recent fiscal year, and any subsequent Quarterly Reports on Form 10-Q,available at the SEC’s website at www.sec.gov. We intend for the forward-looking statements to be covered bythe Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation ReformAct of 1995, and are including this statement for purpose of complying with these Safe Harbor provisions.2
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Current Company Overview Retail stores in Texas, Oklahoma and NewMexico 562 retail sites 11th largest company operated C-storechain in the U.S. 976 million of merchandise sales 1.4 billion gallons distributed (FY2012) 557 retail sites with fuel 580 contracted wholesale branded sites 1,600 unbranded commercial customers 24 consecutive years of same storesales growth 70% of retail gross profit inside store 183 million EBITDA (FY2012) 167 million EBITDA (FY2011)4
Platform Was Built by Acquisition Before 2000Pre-2000 AcquisitionsTulsa TulsaSanta FeFe SantaAlbuquerque AlbuquerqueOklahomOklahomaa CityCity LawLawtontonAmarilloarillo AmOklahomaOklahomaNewNew MexicoMexico LubbockLubbock RoswRoswellell WichitaWichita FallsFalls FortFort WorthWorthAbileneAbilene LasLas CrucesCrucesEl PasoPaso El 26 stores199227 stores1995105 stores199610 stores19987 TexasTexas 1988SanSan AngeloAngeloBatonBaton RougeRouge AustinAustin SanSan AntonioAntonio NewNew OrleansOrleansHoustonHouston GalvestonGalvestonEagleEagle PassPass CorpusCorpus ChristiChristiLaredoLaredo Stores open by 2000 MMcAllencAllen BrowBrownsvillensvilleNY006BJX 1 - NM - TX - OK - LA Window5
Coastal/Tex-Mart Stores Acquired (2001)Tulsa Tulsa SantaSanta FeFeAlbuquerque AlbuquerqueOklahomOklahomaa CityCity LawLawtonton AmAmarilloarilloOklahomaOklahomaNewNew MexicoMexico LubbockLubbock RoswRoswellell FortFort WorthWorthAbileneAbilene ElEl PasoPaso exas Expanded presence in SouthTexas, particularly in the RioGrande Valley 151 stores added WichitaWichita FallsFalls LasLas CrucesCruces Boosted store count by 80%SanSan AngeloAngeloBatonBaton RougeRouge Austin Austin SanSan AntonioAntonio NewNew OrleansOrleansHoustonHouston GalvestonGalvestonEagleEagle PassPass CorpusCorpus ChristiChristiLaredoLaredo Coastal/Tex-Mart stores acquired (2001)Stores open by 2000 MMcAllencAllen BrowBrownsvillensvilleNY006BJX 1 - NM - TX - OK - LA Window6
2001–2007 Began New Store Building ProgramFree Cash Flow Invested in Growth TulsTulsaaOkOklahomlahomaa CityCity LawLawtontonOklahomaOklahoma SantaSanta FeFe AlbuqueAlbuquerquerque AmAmarilloarilloOklahomaOklahomaNewNew MexicoMexico LubbockLubbock RosRoswweellll ElEl PasPasoo 64 stores built WichitaWichita FallsFallsFortFort WorthWorthAbileneAbilene LasLas CruceCrucess MMidlandidland Expanded our new big box storebuilding program to include LTCin all new an AngeAngelolo BatonBaton RougeRouge AusAustintin SanSan AntonioAntonio NeNeww OrleOrleansansHoustonHouston GalveGalvesstontonEagleEagle PasPasss Build-out of stores, 2001-2007 CorpusCorpus ChrisChristiti LareLaredodoCoastal/Tex-Mart stores acquired (2001)Stores open by 2000 MMcAllecAllenn BrowBrownsnsvillevilleNY006BJX 1 - NM - TX - OK - LA Window V27
Town & Country Acquisition – November 2007A Unique Asset TulsTulsaa SantaSanta FeFe AlbuqueAlbuquerquerqueOkOklahomlahomaa CityCity LawLawtonton AmAmarilloarillo 5 new markets LubbockLubbock RosRoswweellll 168 stores WichitaWichita FallsFallsFortFort WorthWorthAbileneAbilene LasLas CruceCrucess ElEl PasPasoo Doubled EBITDAOklahomaOklahomaNewNew MexicoMexico MMidlandidland High volume sites with a solidfood service nSan AngeAngeloloBatonBaton RougeRouge Austintin Aus SanSan AntonioAntonio NeNeww OrleOrleansansHoustonHouston GalveGalvesstontonEagleEagle PasPasss T&C acquisitionBuild-out of stores, 2001-2007Coastal/Tex-Mart stores acquired (2001) CorpusCorpus ChrisChristiti LareLaredodoStores open by 2000 MMcAllecAllenn BrowBrownsnsvillevilleNY006BJX 1 - NM - TX - OK - LA Window V28
2008-2012 Big Box Build-Out Filled in our existing footprint Began to establish presence inthe Houston marketTulsa TulsaOklahomaOklahoma CityCity LawtonLawtonOklahomaOklahoma SantaSanta FeFeAlbuquerque AlbuquerqueAmarillo AmarilloOklahomaOklahomaNewNew MexicoMexico LubbockLubbock RoswellRoswell WichitaWichita FallsFalls LasLas CrucesCruces ElEl PasoPasoAbileneAbilene Average sq. ft.4,800 – 7,000 69 stores builtFortFort WorthWorth DallasDallasTexasTexasMidlandMidland Larger kitchens and moreseating for LTCLouisianaLouisianaSanSan AngeloAngeloBatonBaton RougeRouge AustinAustin SanSanSanAntonioAntonioAntonio NewNew OrleansOrleansHoustonHouston GalvestonGalvestonEagleEagle PassPass Build-out 2008-2012T&C acquisition CorpusCorpus ChristiChristiLaredoLaredo Build-out of stores, 2001-2007Coastal/Tex-Mart stores acquired (2001)Stores open by 2000 McAllenMcAllen BrownsvilleBrownsville9
Combined Susser FootprintTulsa TulsaOklahomaOklahoma CityCity LawtonLawtonOklahomaOklahoma SantaSanta FeFeAlbuquerque AlbuquerqueAmarillo AmarilloRetail490Wholesale Supply91WholesaleConsignment 1,600CommercialOklahomaOklahomaNewNew MexicoMexico LubbockLubbock RoswellRoswell WichitaWichita FallsFalls LasLas CrucesCruces ElEl PasoPaso562AbileneAbilene DallasDallasTexasTexasMidlandMidland WorthFortFort WorthLouisianaLouisianaSanSan AngeloAngeloBatonBaton RougeRouge AustinAustin SanSan AntonioAntonio NewNew OrleansOrleansHoustonHouston GalvestonGalvestonEagleEagle PassPass Wholesale locationsBuild-out 2008-2012T&C acquisition CorpusCorpus ChristiChristiLaredoLaredo Build-out of stores, 2001-2007Coastal/Tex-Mart stores acquired (2001)Stores open by 2000 McAllenMcAllen BrownsvilleBrownsville10
Widening the Gap(in 000’s, based on LTM data)Average Per-Store Merchandise Sales 1,792 1,800 1,661 1,540 1,488 1,500 1,437 1,270 1,200 1,134 1,150 1,142 1,088 1,055 999 991 954 900 928 898 1,001 958 1,015 1,075 1,015 856 742 778 600 e: Annual data based on each company‟s fiscal year. LTM data based on latest fiscal quarter reported.11
Widening the Gap(in 000’s, based on LTM data)Average Per-Store 061,2891,2691,243 SPTRYCASY20112012Note: Annual data based on each company‟s fiscal year. LTM data based on latest fiscal quarter reported.12
EBITDAR Has Tripled Since 2006 IPOFuel Neutral EBITDAREBITDAR(in millions) 8% 230(1) (2)(in millions) 13% 225 31% 11% 200 200 8% 175 170 7% 26% 54% 150 73% 140 229-11% 213 220 125 195 176 110 163 18% 100 145 151 163 129 24% 80 75 84 98 84 68 50 09201020112012Normalizes retail CPG after credit cards at a 5-year rolling average of 14.5 andwholesale CPG at a 5-year rolling average of 5.5 Excludes G&A bonus and 401-K match13
SUSS Wholesale SegmentRocky Dewbre
Motor Fuel Industry Supply Flint HillsDrilling/PumpingStationTanker TruckGoPetro or3rd PartyTransportCrudeStorageTankOur llStripes,WholesaleDealersand otherCommercialCustomers15
Retail and Wholesale Locations16
SUSS Wholesale Segment Overview Largest non-refining motor fuel distributor in Texas562 91 contracted consignment locations 490 contracted branded dealers 1,600 unbranded commercial customers 1.4 Billion Gallons Sold LTMStripes storesCommercial11% Scalable wholesale platform Highly complementary with retail division Increases purchasing power/diversification Increases strategic flexibility to rationalize sitesbetween retail and wholesale Enhances acquisition opportunities 3 acquisitions since Aug ‘09Dealer Supply22%Stripes59%Dealer Consignment8%17
Third-Party Supply Dealer Customer Types(22% of 2012 volume) Supply Dealers We sell fuel to dealer by the truckload at cost plus afixed markup Dealer owns fuel inventory at location and dealer setsretail price 1.2 million of net rental income in 201218
Third-Party Consignment Dealer Customer Types(8% of 2012 volume) Consignment Dealers SUSP supplies fuel to SUSS, who then supplies toconsignment dealers SUSP collects cost 3 cent fee SUSS owns fuel in tanks SUSS sets retail price and keeps gross profit, pays dealera commission for selling fuel 4.1 million of net rental income in 201219
Our Other Commercial Customers Profile(11% of total 2012 volume) Over 1,600 unbranded customers Unbranded convenience stores Sub-jobber/fuel distributors Commercial end-users including E&P, agricultural, construction andtrucking companies School districts and municipalities Spot customers Neither party obligated under contract We send price quote to customer daily If customer accepts, we sells fuel to customer at fixed margin Contract customers We participate in bid process and sell fuel on cost-plus basis foragreed-upon term20
Wholesale Segment Spin-off: SUSP IPO Successfully executed public offering of wholesale distributionbusiness in September 2012 Establishes FMV of wholesale distribution business tied to ourstable cash flow ( 685 million as of 3/18/13 @ 31.30/unit) Creates strategic vehicle for growth Improves cost of capital SUSS retains 50.1% of SUSP SUSS retains 100% of general partner and IDR’s SUSS will continue to consolidate financial results21
Post-MLP Organization StructureSusser Holdings Corporation andsubsidiaries (“Parent”)100% OwnershipInterestCommon UnitsSubordinated UnitsIncentive Distribution Rights(NASDAQ: SUSS)What Remains at theParent? Retail operations Stripes c-stores Sale of motor fuel atconsignment locationsSusser Petroleum PartnersGP LLC(the “general partner”) Owned properties for 250Stripes locations (2)50.1%Limited PartnerInterest0% Non-economicGeneral PartnerInterestPublic UnitholdersCommon Units49.9%Limited PartnerInterestWhat is in SUSP?Susser PetroleumPartners LP(the “Partnership”)(NYSE: SUSP) Wholesale operations Motor fuel distribution to Stripes c-stores Motor fuel distribution to the Parent forsupplying consignment locations Motor fuel distribution to supply dealers Motor fuel distribution to unbranded c-100% OwnershipIntereststores and other commercial customers 41 owned stores and 12 leased sites leased/ sublet to independent operators (2)Operating Subsidiaries (1)(1)One of Susser Petroleum Partners LP‟s operating subsidiaries, Susser Petroleum Property Company LLC („„Susser Propco‟‟), will be treated as a corporation for U.S. federal income tax purposes. Susser Petroleum Partners LPexpects that this subsidiary will own all Stripes convenience stores purchased from SHC in connection with Susser Petroleum Partners LP‟s option to execute sale and leaseback transactions under the omnibus agreement orotherwise.(2)At time of SUSP IPO. Excludes any subsequent sites added or closed.22
Differentiation between SUSP and SUSS Wholesale SegmentSUSP Operations include: Fuel sales to Affiliates under 10 yearsupply contract at 3 cent fixed margin: 562 Stripes stores 91 consignment stores Fuel sales to third parties:SUSS WHOLESALE SEGMENT Operations include: 100% of SUSP Operations Consignment fuel business at 91locations Transportation operations conductedthrough GoPetro subsidiary 490 contracted branded dealersunder long-term fixed fee fuelsupply contracts 1600 unbranded commercialcustomers Rental income from 14 Stripes storesand 54 dealer operated conveniencestores generating annualized rent ofapproximately 7.8MM23
Key Investment Highlights – SUSPSTABILITY VISIBLE GROWTHLong-term, fee-based contracts 75 Stripes store dropdown option 10-year fixed fee contract with theParent(14 completed to date) 5-year average remaining termcontracts with diversifiedEmbedded growth with Parent3rd 25-35 currently expected in 2013parties De minimis direct commodity risk Very limited working capital needs Strong and resilient industry fundamentals History of strong growth in Stripesgallons (13.3% CAGR in last 5 years) More than 190 net new third-party locationssince 2007 Numerous acquisition opportunities inhighly fragmented and attractive markets Ability to pursue opportunities jointly Significant financial capacity for growth atboth MLP and Parent (1) 200 mm revolver capacity--SUSP(1) As of December 30, 2012. 375 mm cash/revolver capacity--SUSS24
Our Strong, Long-Term Supplier RelationshipsKey BrandsOverview Valuable supply contracts with major oilcompanies and refiners More than 20 branded andunbranded suppliers2012 Volumes by SupplierOthers44%Valero36% Long-term relationships with suppliersprovides attractive terms and ability togrow Among the largest U.S. brandeddistributors of Valero and Chevron motorfuelChevron19%25
Stable & Growing Operating and Financial PerformancePro Forma (1) Fuel Gross ProfitHistorical Gallons Sold1,800 601,0961,2001,2021,2331,312 50 millions1,500Gallons (millions) 50.21,448892900 40 39.1 35.1 30600 20300 100 44.5 02007200820092010Stripes & Consignment Locations20112012Third-Party20102011Stripes & Consignment LocationsPre-MLP Wholesale Fuel Margin, as Reported d-PartyPro Forma (2) Cents Per Gallon – Motor Fuel MarginStripes & Consignment(3)Third-Party (3)4.25.36.05.9Third-PartyAverage Fuel Margin1.72.12.42.8Average Fuel .23.43.5(1)Prior to MLP, no mark-up was charged to Stripes by wholesale segment.(2)Pro forma for the Parent distribution contract and application of this contract to Stripes & consignment volumes. Post IPO, SUSP receives 3 on gallons sold to parent for existing retail and consignment volumes.(3)Prior to Sept. 25, 2012, third party customers include consignment sales, supply dealer and other commercial customers. Post IPO, includes supply dealers and other commercial customers.26
Susser Petroleum Partners Strategy Grow ThroughRelationship with SHC Expand Third-PartyWholesale Motor FuelDistribution Business Focus on Stable, Fee-BasedBusiness ActivitiesContinue to Develop andCapitalize on Our SupplierRelationshipsMaintain FinancialFlexibility andConservative Leverage Increasing motor fuel volumes through growth in the number of Stripes convenience stores and volumes of motor fuel sold at SHC’s existing Stripes convenience storesExecuting sale and leaseback arrangements with SHC that provide additionalrental incomePursuing strategic acquisition opportunities with SHCAdding third-party dealersAcquiring additional supply contractsAdding new unbranded convenience stores and other customers to ourdistribution networkMajority of our gross margin is pursuant to fee-based, long-term wholesaledistribution contractsStable, long-term rental income from 54 properties owned and subleased as wellas a Sale / Leaseback Option and additional sale / leaseback opportunities Expect to benefit from more favorable procurement costs and other economies ofscale as wholesale distribution business growsPursue acquisitions of other wholesalers , commercial customers and supplycontracts as continued escalation of the requirements imposed on wholesalers bysuppliers creates consolidation opportunities 250 million revolving credit facility with over 200 million of undrawn capacity27
Why Do Customers Choose Susser? Solid reputation (integrity, financially sound, etc.) Choice of quality brands - more than competitors Competitive pricing Reliable supply of product Willingness to invest capital in projects Use of technology makes it easy to do business Value-added programs and support We provide more than just fuel Annual tradeshow offering vendor support to dealers Cruise incentive trip for top performing dealers28
Selected New Business LocationsHickory Slough Market Pearland ChevronIce Box #4969 – ExxonPort ArthurHeights Mobil29
Expanding our Transportation Capacity and Capability(SUSS Operations) Expanded to 24/7dispatch in 2012Gallons Hauled by Carriers1,800GALLONS (MILLIONS)1,6001,4001,2001,000Common CarriersProprietary Fleet800 Private fleet delivers36% of volume60040020036%29%36%2010 Increased private fleetfrom 21 to 54 trucks inthe last 4 years20112012201020112012NUMBER OF PROPRIETARY TRUCKS284454NUMBER OF COMMON CARRIERS91818 Expanded commoncarriers from 9 to 18 inthe last three years30
Current Technology InitiativesCustomerPortalEnhancementsReal-Time StatusPDIEnterpriseMLPEntity SupportTMWSystemsLogisticsAsset TrackingGoPetroFleetIn-Cab CommElectronicFormsSalesForceCRMCustomer CareMobileDevicesSmart PhoneTablet31
Technology Future StateCustomersIn-Truck MobileCommunicationsLogistics and Customer CareMobile AccessSales Teams andBrand ManagersTechnology32
Our Business in Perspective In 2012 we sold 178,781 loads of motor fuel or 20 loads/hour24/7/365 Susser’s carriers drive an estimated 15 million miles every year,which is the equivalent to600 times aroundthe Earth33
Retail Business ReviewSteve DeSutter
Growing Retail in Several Dimensions Leveraging our unique connection with key stakeholders Team members, suppliers, customers combined with our technology platform and growing markets Deliver consistent top tier performance Same store sales growth while protecting margins Reduce operating costs relative to merchandise sales Nimbleness to changing market conditions and enteringnew markets35
Average Fuel Gallons Sold per Store Continue to GrowAverage Fuel Gallons Sold per Retail StoreKey Drivers1,600 Strategy: Protect and grow volume Favorable market(Thousands of gallons)1,5001,4001,300 6% 5%1,200 2% 2% 3% 6%1,100 5% 1,0002006200720082009201020112012# Locations w/Auto Diesel17319731633736038041918-Wheel27295657616870 conditions/trendsNew stores built for volumeExpansion of diesel Dedicated diesel islands Auto diesel added to legacystoresContinued investment in new fu
Susser Holdings Corporation Susser Petroleum Partners Analyst Day March 21, 2013 . 2 . 1992 27 stores 1995 105 stores 1996 10 stores 1998 7 stores . 2008-2012 Big Box Build-Out Build-out 2008-2012 Stores open by 2000 Coastal/Tex-Mart stores acquired (2001) .
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