Philippine Seven Corporation · PSE:SEVN

Philippine Seven — Q3 2021 Earnings Presentation

20 slides from Philippine Seven's earnings presentation, 2021

  1. Slide 1: Q3 2021 Investor Briefing

    PHILIPPINE SEVEN CORPORATION (SEVN) Q3 2021 Investor Briefing [email protected]

  2. Slide 2: A Global Brand

    A Global Brand Norway: 152 Sweden: 82 South Korea: 10,940 Canada: 625 United States: 13,468 China: 2,838 Denmark: 172 Japan: 21,111 Taiwan: 6,233 Mexico: 1,813 Vietnam: 60 UAE: 11 76,000+ Philippines: 3,009 STORES Thailand: 12,773 WORLDWIDE Singapore: 435 Malaysia: 2,400 Australia: 712 *Store Counts

  3. Slide 3: Global Recognition

    Global Recognition sev fes rugen op — ° ff WO: “f Vi y re (P 4 WE Pictured left to right: Jackie Lai, Marketing Director 7-Eleven Philippines; Kazuki Furuya, Chairman of SEJ; Richard Lee, Vice President Marketing & Operations 7-Eleven Philippines; Armi Cagasan, Division Head of Strategic Merchandisi

  4. Slide 4: 3,000th Store Milestone

    3,000th Store Milestone • On 7-11 day, July 11, we opened our 3,000th store in the Philippines located in Meycauayan, Bulacan • This is the pilot of our modular store concept made of prefabricated materials • We also relaunched our freshly brewed coffee brand City Cafe

  5. Slide 5: Shareholding Structure

    Shareholding Structure Present Agus Development Corp. 3% Ownership Structure Others-Foreign 13% Others-Filipino 3% As of September 30, 2021 % ownership Progressive Development Corp. 2% President Chain Store (Labuan) Holdings, Ltd 54.88% Asian Holdings Corp. Others-Foreign 12.47% 6% President Chain S

  6. Slide 6: SEVN Share Information

    SEVN Share Information Price (October 11, 2021) Php 89.00 Hi/Low (YTD) Php 84.50 – Php 121.00 Free Float 30.5% Outstanding Shares 756.42 million Market Capitalization USD 1.32 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Payment Sto

  7. Slide 7: Store Network as of Sep. 30, 2021

    Store Network as of Sep. 30, 2021 7-Eleven By Location Store Count % Jan. 1 Opening Closure Sep. 30 Metro Manila 1,010 20 27 1,003 33% Luzon-ex MM 1,251 50 12 1,289 43% Visayas 432 15 14 433 14% Mindanao 285 19 10 294 10% Total 2,978 104 63 3,019 100% As of Sep. 30, 2021 All Store Count 3,019 460 82

  8. Slide 8: Impact of Lockdown Restrictions

    Impact of Lockdown Restrictions All Stores % Change Store Days +7% PSD Sales -14% Ave CC -4% Ave Trans -11% Systemwide sales -8%

  9. Slide 9: New Store Concepts

    New Store Concepts • Store with co-branding alliance with Heineken • Convan store called Project Smol • First 7-Eleven store with drive-thru

  10. Slide 10: 7B Cash Recycler ATM Rollout

    7B CASH RECYCLER • Innovative solution to 7E cash management requirements ATM ROLLOUT (as of • Reduces cash handling risks and allows immediate usage of funds Sep. 30, 2021) • Enhances our value proposition and generates incremental revenue

  11. Slide 11: Q3 2021 Financial Performance

    Q3 2021 Financial Performance System-wide IFRS IFRS sales - P181.1 million P984.2 million P11.3 billion - 7.5% - 6.2% + 10.1% Non-IFRS Non-IFRS Same-store sales - P85.6 million P441.9 million + 3.4% - 50% - 1.4% SALES NET LOSS EBITDA Q3 Net Income 5 Year Trend 250.0 200.0 150.0 100.0 50.0 - (50.0) (

  12. Slide 12: 9M 2021 Financial Performance

    9M 2021 Financial Performance System-wide IFRS IFRS sales - P584.0 million P3.0 billion P33.5 billion - 0.2% + 0.5% - 2.3% Non-IFRS Non-IFRS Same-store sales - P242.0 million P1.4 billion - 8.7% - 17% - 2.6% SALES NET LOSS EBITDA 9M Net Income 5 Year Trend 1,000.0 800.0 600.0 400.0 200.0 - (200.0) (

  13. Slide 13: Sales improved 10% in 3Q and nearing 80% of pre-COVID level

    Sales improved 10% in 3Q and nearing 80% of pre-COVID level Mobility restrictions halted solid growth and expansion momentum in 2019 Systemwide Sales (in billion PhP) Same Store Sales Growth 56.3 46.1 46.4 8.8% 10.3% +10% 2.5% 3.4% 2018 2019 2020 1Q 2020 2Q 2020 3Q 2020 1Q 2021 2Q 2021 3Q 2021 14.1

  14. Slide 14: Profitability Ratios

    Profitability Ratios Improvement in sales drive gross margin| Total service income grew 91% Gross Margin (Sales and Service) EBIT Margin 27.5% 27.0% 26.4% 26.2% 25.8% 24.9% 25.7% 22.7% 24.1% 5.2% 5.6% 3.0% 1.0% 0.8% -0.3% -0.3% 2018 2019 2020 1Q 2020 2Q 2020 3Q 2020 1Q 2021 2Q 2021 3Q -0.3% 2021 -0.

  15. Slide 15: Margin Computation Guide

    Margin Computation Guide Items Accounts Formula Discussion • IFRS 15 implemented on Jan. 1, 2018 requires identification of distinct performance obligation. • Aggregates revenue from merchandise sales, commission income and franchise revenues. A Revenue from contracts with customers A.1 + A.2 + A.3

  16. Slide 16: Vaccination Efforts

    7E (+22,000 FRONT-LINERS) Vaccinated Not vaccinated Not Vaccination vaccinated 24% Efforts Vaccinated 76%

  17. Slide 17: Wider product assortment

    Wider product assortment ALSO AVAILABLE: FRY-YOUR-OWN PACKS

  18. Slide 18: Partnership with aggregators

    Partnership with aggregators

  19. Slide 19: Continuing franchise support and rental concession

    Continuing franchise support and rental concession

  20. Slide 20: Slide 20

Philippine Seven — Q3 2021 Earnings Presentation on 6ix