Love

1
Loves Travel Stops Country Stores,
Inc.February 16, 2006 Presentation to The
Road to Renewables 06, Ethanol/Biodiesel Workshop
and Expo
2
History of Loves

• Started with an abandoned filling station in
  1964.
• Entered Convenience Store business in 1972.
• Entered Truck Stop business in 1981.
• At that time, mainly operating in a 5 state
  area (OK, KS, CO, NM TX).

3
History of Loves(Continued)

• During the ensuing 15 years, Loves grew
  consistently - opening 2-5 stores per year.
• In 1998, Loves began a long-term expansion plan
  to add 10-15 stores/year.
• At the end of 2005, Loves was operating 103
  truck stops.

4
Loves Geography
5
Loves in 2005

• Total Sales of 3.90 Billion
• Fuel Sales of 1.60 Billion Gallons
• Currently Operating in 31 States
• Privately Held / Privately Funded
• 4500 Employees

6
Loves 2005 Volume Breakdown

• Total Company Volumes
• Gasoline 250,000,000
• Diesel 1,350,000,000
• Total 1,600,000,000

7
Loves 2005 Volume Breakdown

• Major Markets
• Oklahoma Texas
  
• Gasoline 73,000,000 47,000,000
• Diesel 170,000,000 347,000,000
• Total 243,000,000 394,000,000
• of Total 15 25
• Amount of Biodiesel required at 20 blend
• 34,000,000 69,400,000

8
Biodiesel-Retailers Perspective

• Benefits
• Margin enhancement with recent federal and state
  tax credit incentives
• Texas-up to a .04 cent/gallon state excise tax
  break
• Illinois-with blends of 11 or higher, the state
  sales tax is eliminated
• Biodiesel has low aromatics and little or no
  sulfur, it has a high cetane number and is a
  superior lubricant
• Decreases dependence on foreign oil
• At current price levels biodiesel can be
  competitive with regular diesel without much tax
  subsidies

9
Biodiesel-Retailers Perspective

• Concerns
• Ratable and on-spec supply
• Estimated total production in 05
  130MM/gallons
• At 20 blends, Loves volumes in OK, TX and NM
  would consume all production
• Customer perception
• Cold weather properties
• Future of tax incentives
• Engine manufactures warranties

10
Loves-Biodiesel Plans in 2006

• Continue to market biodiesel at a few stores in
  states with highest margin enhancement
• Loves began selling agri based B11 _at_ Ina, IL
  (store 318) on April 26, 2005 and Williamsville,
  IL (store 249) on May 15, 2005
• Results Generally positive
• Loves began offering BioWillie diesel _at_
  Midlothian, TX (store 216) on July 22, 2005
• Offering dual products-regular LSD _at_ 3 fueling
  islands and B20 _at_ 3 fueling islands
• Results Generally positive
• Bio sales are running about 35 of total sales

11
Loves-Biodiesel Plans in 2006(Continued)

• Converted Anna, TX (store 299) to BioWillie on
  January 25, 2006
• Pricing Experience
• Retail price of Bio gt Regular DSL Vol suffered
• Retail price of Bio Regular DSL Vol is steady
  (35)
• Continue to become more educated on biodiesel
• Explore opportunities of production capabilities

12
Loves Future Outlook on Biodiesel

• If the margin enhancement remain in place, Loves
  will continue to expand our biodiesel offerings
• Factors that would influence our decision to move
  forward
• Customer acceptance
• Margin erosion
• Supply availability
• Performance issues

13
Store 216 Biodiesel Signage
14
Store 216 Biodiesel Signage
15
Store 299 Biodiesel Signage