Philippine Seven Corporation · PSE:SEVN
Philippine Seven — FY2019 Earnings Presentation
22 slides from Philippine Seven's earnings presentation, Jul 13, 2020
Slide 1: FY 2019 Investor Briefing
Philippine Seven Corpora/on (SEVN) FY 2019 Investor Briefing 7th Floor The Columbia Tower, Or4gas Avenue, Mandaluyong City 1550 Email: [email protected]
Slide 2: A Global Brand
A Global Brand The World’s Largest Retailer: a. more than 69,984 Stores (as of Dec. 31, 2019) b. Philippines ranked 6th out of 18 countries in store count Norway SERVING OVER 62M Sweden Canada Denmark GUESTS United States China South Korea Japan DAILY Mexico Hong Kong Taiwan Vietnam 2018 Thailand Ma
Slide 3: Global Recognition
Global Recognition Asian Convenience Industry Leader of the Year Award = 7 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 Me
Slide 4: Shareholding Structure
Shareholding Structure Agus Development Corp. Present 3% Shareholding Structure Others-Foreign 15% Others-Filipino 3% Progressive Development Corp. 2% President Chain Store Asian Holdings Corp. (Labuan) Holdings, Ltd. 7% 52% As of December 31, 2019 % ownership President Chain Store (Labuan) Holdings
Slide 5: SEVN Share Information
SEVN Share Informa/on Price (Dec. 31, 2019) Php 140.00 Hi/Low (YTD) Php 110.00 – Php 164.00 Free Float 33.1% Outstanding Shares 756.42 million Market Capitaliza4on USD 2.04 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Payment Stock 0.10 0.10 0.05 0.15 0.15 0.15 - - -
Slide 6: Market Performance
Market Performance Market Share per Trade 2018 YTD (%) 2019 YTD (%) Difference (%) Channel Supermarket 45.3 45.8 +0.5 Grocery 5.5 5.6 +0.1 Convenience Stores 3.6 3.9 +0.3 Sari-sari Stores 33.5 33.5 0 Market Stall 5.2 4.9 -0.3 Drugstore 3.3 3.2 -0.1 Others 2.6 2.3 -0.3
Slide 7: Store Network: FY 2019
Store Network: FY 2019 7-Eleven By Loca/on Store Count % Jan. 1 Net addi4ons Dec. 31 Metro Manila 938 68 1,006 35% Luzon-ex MM 1,027 145 1,172 41% Visayas 365 46 411 14% Mindanao 220 55 275 10% Total 2,550 314 2,864 100% As of Dec. 31, 2019 + 314 stores vs. FY 2018 All Store Count 2,864 507 80 754 6
Slide 8: Q4 2019 Financial Performance
Q4 2019 Financial Performance System-wide IFRS IFRS sales P748.7 million P2.4 billion P15.7 billion - 6% + 40% + 21% Non-IFRS Non-IFRS Same-store sales P882.9 million P1.9 billion + 10.1% + 11% + 11% Sales Net income EBITDA Q4 Net Income 5 Year Trend 900.0 800.0 700.0 600.0 a. Amount in 500.0 400.0
Slide 9: FY 2019 Financial Performance
FY 2019 Financial Performance System-wide IFRS IFRS sales P1.4 billion P6.8 billion P56.3 billion - 6% + 61% + 22% Non-IFRS Non-IFRS Same-store sales P2.0 billion P5.1 billion + 10.3% + 30% + 20% Sales Net income EBITDA FY Net Income 5 Year Trend 1,800.0 1,600.0 1,400.0 1,200.0 a. Amount in 1,000.0
Slide 10: Adoption of new IFRS on Leases
Adop/on of new IFRS on Leases 100,000 90,000 80,000 70,000 60,000 Sample Illustra/on 50,000 2019 2020 2021 2022 2023 Year Rent ROU Deprecia4on Interest IFRS 16 Impact payment Asset B C D = B+C A-D Rent payment Deprecia4on IFRS 16 A 2019 70,000 70,000 67,714 22,828 90,542 (20,542) • The new lease acc
Slide 11: Annual IFRS 16 Impact
Annual IFRS 16 Impact ESTIMATED BASED FROM 2,764 (95%) CONTRACTS REVIEWED LOWER NET INCOME Depreciation of ROU asset approximates cash flow rent expense. Interest expense is significant based from the higher outstanding balance of lease liability. NEUTRAL EFFECT Sum of ROU asset depreciation − and a
Slide 12: Impact on 2019 net income
Impact on 2019 net income 2019 Earnings Growth Non-IFRS net income +32% +24% +15% +41% IFRS net income - 6% 112.2
Slide 13: Financial Position as at Dec. 31, 2019
Financial Posi/on as at Dec. 31, 2019 % change 30,000 Balance Sheet and Cash Flow As at (vs. (in Php Million except Book Value per Share) Dec. 31, 2019 12/31/2018) 25,000 Total Assets 29,673.7 70.5% Current Assets 12,703.5 41.3% 20,000 Non-current Assets * 16,970.2 101.7% Total Assets Total Liabili/
Slide 14: Selected Financial Ratio
Selected Financial Ra/o FY EPS Selected Financial Ra/o FY 2019 FY 2018 2.50 2.00 IFRS Non-IFRS 1.50 Liquidity and Leverage Ratio: 1.00 Non- IFRS Current Ratio (x) 0.93 1.03 0.97 0.50 EPS P2.63 - Debt to Equity (x) 2.69 1.59 1.46 2015 2016 2017 2018 2019 EPS 1.33 1.55 1.74 2.03 1.91 Asset to Equity (
Slide 15: Crunch Time and City Blends drive Foodservice sales
Crunch Time and City Blends drive Foodservice sales, while service revenues outperform 112.2
Slide 16: Marketing income continued to boost margins
Marke/ng income con/nued to boost margins 112.2
Slide 17: New Store Concepts
New Store Concepts Customized racks and counters Emphasis on City Blends Coffee 112.2 Alloled area for e-commerce order and pick-up
Slide 18: Update on Digital Strategy
Update on Digital Strategy 2019 Performance YTD Ave daily orders (Ecommerce) More than 2,000 per day CLiQQ App downloads 2.9 million (+40% increase) CLiQQ App monthly ac4ve users 1.2 million (+140% increase) 112.2
Slide 19: 55% of stores are franchised, dominated by FC1 package
55% of stores are franchised, dominated by FC1 package FC1 FC2 FC3 Investment Php 4.0 million Up to P1.0 million < P500,000 Building Franchisee Company Merchandise Franchisee Equipment Company Cash Bond (PGD) - Franchisee Term 5+5 years 66% FC, 40% FC, Varies per GP Split 34% PSC 60% PSC Store Rent
Slide 20: Continued store expansion and support infrastructure
Con/nued store expansion and support infrastructure 2020 CAPEX of P4.0 billion 14 Opera4ng DCs San Jose FDC Warehouse expansion Others 5% 3% Pampanga RDC La Union RDC Pasig RDC Product launch Store Naga FDC 20% expansion Batangas FDC 49% Iloilo RDC Revenue enhancement 23% Bacolod FDC Dumaguete FDC C
Slide 21: COVID-19 Response
COVID-19 Response Physical distancing markers PPE for Front-liners 112.2 Improvised sneeze guard Hand sani4zer
Slide 22: End of Report
- End of Report-