Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q3 2023 Earnings Presentation
17 slides from Philippine Seven's earnings presentation, 2023
Slide 1: Q3 2023 Investor Briefing
PHILIPPINE SEVEN CORPORATION (SEVN) Q3 2023 Investor Briefing [email protected]
Slide 2: A Global Brand
A Global Brand Norway: 129 Sweden: 79 South Korea: 13,495 Canada: 600 United States: 13,211 China: 3,166 Denmark: 177 Japan: 21,431 Taiwan: 6,806 Mexico: 1,910 Vietnam: 95 83,000+ India: 44 Philippines: 3,624 STORES Thailand: 14,391 Cambodia: 72 WORLDWIDE Singapore: 489 Malaysia: 2,532 Australia: 75
Slide 3: Store Network as of Sep. 30, 2023
Store Network as of Sep. 30, 2023 7-Eleven By Location Store Count % Jan. 1 Opening Closure Sep. 30 Metro Manila 1,063 36 14 1,085 30% Luzon-ex MM 1,505 141 3 1,643 45% Visayas 489 36 1 524 15% Mindanao 336 39 3 372 10% Total 3,393 252 21 3,624 100% + 400 new 2019 2020 2021 2022 2023 Target stores a
Slide 4: Shareholding Structure
Shareholding Structure Present Agus Development Corp. Ownership 3% Structure Others-Foreign 12% Others-Filipino 3% % ownership Progressive Development Corp. President Chain Store (Labuan) Holdings, Ltd 55.32% 2% Asian Holdings Corp. Others-Foreign 11.98% 7% President Chain Arisaig Asia Consumer Fund
Slide 5: Global Recognition
Global Recognition Asian Convenience Industry oie e Year Award Pictured left to right: Jackie Lai, Marketing Director 7-Eleven Philippines; Kazuki Furuya, Chairman of SEJ; Richard Lee, Vice President Marketing & Operations 7-Eleven spines; Armi Cagasan, Division Head of Strategic Merchandising, 7-El
Slide 6: Q3 GDP grew faster than expected, inflation eased for the first time in 3 months
Q3 GDP grew faster than expected, inflation eased for the first time in 3 months +14%
Slide 7: Retail Landscape
Retail Landscape Market Share Per Channel Value Share of Trade per Channel +14% o Sari-sari stores continue to gain share o Share of supermarket contracted over past 4 years o Convenience store share slightly improved to 4.0% from 3.9% in 2019
Slide 8: Expected to cross three billion pesos FY net income for the first time
Expected to cross three billion pesos FY net income for the first time Quarterly Net Income Trend 1,200 1,000 800 600 400 200 - (200) (400) (600) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 114 100 113 182 158 190 112 104 (300) 199 528 Q2 182 224 244 290 288 343 373 (494) (103) 691 1,0
Slide 9: Market development plan to focus more on VisMin
Market development plan to focus more on VisMin +14% 2024 CAPEX Store expansion P2.85 billion Product development 1.2 billion DC expansion 225.0 million HQ 75.0 million Total P4.35 billion FC1 to account for 60% of new stores 112.2
Slide 10: On track to exceed P80.0 billion in total sales
On track to exceed P80.0 billion in total sales Higher sales was driven by SSSG of +13.0% and +15.1% in 3Q and YTD, respectively on account of 12.7% increase in customer traffic Systemwide Sales (in billion PhP) Same Store Sales Growth 39.2% 66.0 +22.5% 56.3 35.2% 46.4 47.2 +14% 28.8% 16.1% 23.3% 10
Slide 11: Profitability Ratios (based on revenue from contracts with customers)
Profitability Ratios (based on revenue from contracts with customers) Improving profitability is better manifested in operating and net margins Gross Margin of sales and services (1) EBITDA 12.8% 13.1% 12.8% 12.1% 25.8% 10.8% 10.0% 10.9% 10.6% 11.2% 10.9% 25.4% 24.8% 24.9% 25.0% 24.1% +14% 24.5% 23.
Slide 12: Margin Computation Guide
Margin Computation Guide Items Accounts Formula Discussion • IFRS 15 implemented on Jan. 1, 2018 requires identification of distinct performance obligation. A Revenue from contracts with customers A.1 + A.2 + A.3 • Aggregates revenue from merchandise sales, service income and franchise revenues. • M
Slide 13: To deploy better capital allocation plan in the form of higher dividend payout
To deploy better capital allocation plan in the form of higher dividend payout 10.0 35% 9.0 30% 8.0 25% +14% 7.0 20% 6.0 15% 5.0 10% 4.0 5% 3.0 0% 2.0 1.0 -5 % 112.2 - -1 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash (in P b il) 0.4 0.4 0.4 1.0 1.3 0.9 1.6 2.0 3.2 4.6 5.1
Slide 14: Balance Sheet as of September 30, 2023
Year Balance Sheet as of September 30,2023 20 | [ae | Ea I ee Balance Sheet Items 2019 2020 2021 2022 2023 Balance Sheet Items 2019 2020 2021 2022 2023 Cash and cash equivalents 2,570,158,648 — °6,069,355,011 4,543,251,000 7,020,593,848 9,306,172214 Debt Ratio (Total Liabilities / Total ... 074 0.73
Slide 15: Cash Flow
"# | Cash Flow Year as of September 30,2023 2019 2020-2021 20222023 Cash Flow Items 2019 2020 2021 2022 Net Cash Flow from Operating Act... | 317,834,293 1,726,367,065 -P1,365,033,431 1,445,14 sh Flow Items 2019 2020 2021 2022 2023 Net Cash Flow from investing Acti... | -P591,487,107 -P978,860,603 -
Slide 16: Promotions and New Products
Promotions and New Products "Wis ‘cin. UPON A BUY A city CAFE/PRIMA OR GULP ‘AND GET A CHANCE TO WIN YOUR CHRISTMAS weet
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