Mr. Bob Espey reports

PARKLAND TO ENHANCE SHAREHOLDER RETURNS IN REFRESHED FIVE-YEAR PLAN; GROW ADJUSTED EBITDA, DOUBLE CASH FLOW, AND REDUCE LEVERAGE

Parkland Corp. will host its 2023 investor day today, where its executive team will outline the company's continued growth plans, targets and capital allocation strategy for the next five years.

"Since our 2021 investor day, we have continued to build and invest in our growth platform," said Bob Espey, president and chief executive officer. "This year, we saw the strength of our business model as we delivered strong organic growth and synergy capture, enabling us to increase adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] guidance, exceed our deleveraging goals and accelerate our $2-billion ambition to 2024, a year ahead of schedule.

"The success of Parkland's strategy is due to our industry-leading team, which is focused on safe and disciplined execution," added Mr. Espey. "Our business is growing, and we are committed to meeting the evolving needs of our customers. We are reinforcing our financial foundation, delivering substantial cash flow, and, through disciplined capital allocation, we will optimize returns for our shareholders."

During today's investor day, Parkland's executive team will discuss the following.

Customer advantage

Parkland's customer-centric strategy demonstrates the company's commitment to becoming the No. 1 choice for energy and convenience for its retail and commercial customers in the markets Parkland serves.

Parkland's Journie loyalty platform is a foundation of this strategy as it expands its suite of partners and geographic reach. It will continue to unify the company's brands, delivering personalized customer offers while incentivizing and rewarding customer loyalty across the company's retail fuel and EV (electric vehicle) charging locations, On the Run convenience stores, and food brands.

In addition to its retail footprint, Parkland serves a diverse range of commercial customers in each of its markets. Parkland's extensive proprietary infrastructure and dedicated team safely and reliably deliver products to the company's customers that meet their energy needs of today and their evolving low-carbon needs of tomorrow.

Supply advantage

Parkland's proven supply expertise underpins its strategy. By delivering approximately 28 billion litres of fuel annually, the company's scale, unique logistics assets and capabilities provide purchasing power and optionality that enable Parkland to achieve the lowest cost to serve. Parkland's supply optimization allows the company to create tremendous competitive advantage and unlock significant value in the markets the company operates.

Disciplined capital allocation

Parkland anticipates $6-billion in cumulative available cash flow from 2024 to 2028. Parkland is positioned to deliver sustainable growth, enhance shareholder returns and strengthen its balance sheet.

The company's capital allocation program will direct approximately $1.5-billion (25 per cent) to dividends and share buybacks and $1.5-billion (25 per cent) to organic growth initiatives that reinforce Parkland's market position.

With the remaining $3-billion (50 per cent) of anticipated capital, Parkland will prioritize reducing its leverage ratio to the low end of the company's target range of two to three times by the end of 2025. Beyond that and looking forward through 2028, Parkland expects capital will be strategically allocated toward opportunities that generate the greatest shareholder returns, including additional share buybacks and inorganic growth opportunities. This framework underscores Parkland's dedication to financial discipline and strategic agility, with the aim of delivering long-term value for the company's shareholders.

Parkland remains focused on executing its strategy, capturing synergies, lowering costs and delivering organic growth. During the investor day, Parkland will outline the company's 2024 guidance and 2028 ambitions.

2024 guidance:

• Adjusted EBITDA of $2-billion plus or minus $50-million;
• Capital expenditures of between $475-million and $525-million;
• Available cash flow per share of $5;
• ROIC (return on invested capital) of more than 11 per cent.

2028 ambitions:

• Available cash flow of $8.50 per share, doubling from $4.25 per share in 2023;
• Adjusted EBITDA of $2.5-billion, driven by organic growth, synergy capture and cost-efficiencies; the company sees potential to generate up to $3-billion of adjusted EBITDA in 2028, reflecting disciplined inorganic growth opportunities as outlined in the company's capital allocation framework.

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 Nov. 14, 2023. For analysts and investors who have already registered to attend in person or remotely, Parkland looks forward to your participation.

The presentation will be available live on-line and will be available for replay on Parkland's website following the conclusion of today's event.

About Parkland Corp.

Parkland is an international fuel distributor, marketer and convenience retailer with operations in 25 countries across the Americas. Parkland serves over one million customers each day. Parkland's vast retail network meets the fuel and convenience needs of everyday consumers. Parkland's commercial operations provides businesses with industrial fuels so that they can better serve their customers. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, Parkland has developed supply, distribution and trading capabilities to accelerate growth and business performance.

In addition to meeting its customers' needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing, and ultrafast EV charging. Parkland's proven business model is centred around organic growth and the company's supply advantage and is driven by scale, Parkland's integrated refinery and supply infrastructure, and focus on acquiring prudently and integrating successfully.

Parkland's strategy is focused on developing its existing business in resilient markets, growing its food, convenience and renewable energy businesses, and helping customers to decarbonize. Parkland's business is underpinned by the company's people and the company's values of safety, integrity, community and respect, which are deeply embedded across its organization.

We seek Safe Harbor.