Philippine Seven Corporation · PSE:SEVN

Philippine Seven — Q3 2018 Earnings Presentation

19 slides from Philippine Seven's earnings presentation, 2018

  1. Slide 1: Investor Briefing Q3 2018

    Philippine Seven Corpora/on (SEVN) INVESTOR BRIEFING Q3 2018 7th Floor The Columbia Tower, Or4gas Avenue, Mandaluyong City 1550 Email: [email protected]

  2. Slide 2: Who we are

    Who we are MISSION: To make daily life easier by providing modern convenience. VISION: To be the best retailer of convenience for emerging markets. VALUES: We value integrity, teamwork, and reliability. We are data-driven and customer focused in our decisions.

  3. Slide 3: A Global Brand

    A Global Brand The World’s Largest Retailer: a. more than 67,300 Stores (as of Aug. 31, 2018) b. Philippines ranked 6th out of 27 countries and territories Norway SERVING OVER 60M Sweden Canada Denmark GUESTS United States China South Korea Japan DAILY Mexico Hong Kong Taiwan Vietnam 2016 Thailand M

  4. Slide 4: PSC History at a Glance

    PSC History at a Glance 1982 PSC was established 2007 PhilSeven Foundation was established 1984 Opened first store 2010 Achieved 500th Store Milestone Opened 711th Store and entered Visayas 1996 Reached 100th Store Mark 2012 Market via Cebu PSC launches its IPO; Opened first 1998 2013 Surpassed 1,00

  5. Slide 5: Shareholding Structure

    Shareholding Structure Present Agus Development Corp. 3% Shareholding Structure Others-Foreign 15% Others-Filipino 6% Progressive Development Corp. President Chain Store 1% (Labuan) Holdings, Ltd. Asian Holdings Corp. As of September 30, 2018 % ownership 6% 52% President Chain Store (Labuan) Holding

  6. Slide 6: SEVN Share Information

    SEVN Share Informa/on Price (Sep. 30, 2018) Php 101.99 Hi/Low (YTD) Php 100.00 – Php 145.00 Free Float 33.1% Outstanding Shares 756.42 million Market Capitaliza4on USD 1.48 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Payment Stock 0.10 0.10 0.05 0.15 0.15 0.15 - - - 0.65

  7. Slide 7: Store Network: Q3 2018

    Store Network: Q3 2018 7-Eleven By Loca/on Store Count % Jan. 1 Net addi4ons Sep. 30 Metro Manila 879 33 912 38% Luzon-ex MM 923 63 986 40% Visayas 313 32 345 14% Mindanao 170 29 199 8% Total 2,285 157 2,442 100% + 270 stores vs. Q3 2017 As of Sep. 30, 2018 All (Q2 2018) Store Count 2,442 496 71 483

  8. Slide 8: Q3 2018 Financial Highlights

    Q3 2018 Financial Highlights 2017 2018 % change 9,108.8 Sales 10,951.8 20.2 201.9 Net income 202.2 0.1 304.0 EBIT 302.2 -0.6 (Php million) Q3 Net Income 5 Year Trend 250.0 200.0 150.0 100.0 50.0 - 2014 2015 2016 2017 2018 Q3 144.4 159.1 171.0 201.9 202.2

  9. Slide 9: 9M 2018 Financial Highlights

    9M 2018 Financial Highlights 2017 2018 % change 27,179.3 Sales 33,123.8 21.9 648.3 Net income 735.3 13.4 962.3 EBIT 1,087.3 13.0 (Php million) YTD Net Income 5 Year Trend 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 - 2014 2015 2016 2017 2018 YTD 468.3 515.5 643.4 648.3 735.3

  10. Slide 10: SSSG still up at +7.7% in Q3 to bring 9M performance to +8.1%

    SSSG s/ll up at +7.7% in Q3 to bring 9M performance to +8.1%, beaer than LY of 0.1% Systemwide sales (in millions) Store count SSSG % 40,000.0 37,530.8 3,000 14.0% 12.9% 35,000.0 12.0% 31,756.5 2,386 2,442 2,500 2,285 2,329 30,000.0 2,172 2,031 2,087 10.0% 1,995 2,000 7.7% 25,000.0 8.0% 6.3% 20,000.

  11. Slide 11: Fresh food and cup drinks account for 25% of sales

    Fresh food and cup drinks account for 25% of sales By Sec/on Services 1% Cigarebes 7% Non-food Fresh food 6% 18% Cup drinks Grocery and 7% snack food 19% Beer and liquor 9% Ice cream 7% Beverages 26% 1. 7-Eleven fresh food and beverages include, rice meal, sandwiches, Slurpee® and City Blends coffee.

  12. Slide 12: Marketing income boosted profitability

    Marke/ng income boosted profitability

  13. Slide 13: Update on Digital Strategy

    Update on Digital Strategy 2018 KPIs YTD Ave daily orders (Ecommerce) 1,100 Total revenue (Ecommerce) P38.5 million # of SKUs (Ecommerce) 11,000 E-payment as % of system wide sales 0.34% CLIQQ App Monthly Ac4ve Users 450,000

  14. Slide 14: Store of the Future Concept

    Store of the Future Concept We now have three Customized racks and counters More space for dine-in SOF v. 3.0 stores 1. Ayala the 30th 2. Aseana 3. Monarch Allobed area for e-commerce order and pick-up Power efficient open show case

  15. Slide 15: 54% of stores are franchised, dominated by FC1 package

    54% of stores are franchised, dominated by FC1 package FC1 FC2 FC3 Franchise Type Investor Industrial Investment Php 4.0 million Up to 1.0 million Php 300,000 Building Franchisee PSC Merchandise Franchisee Equipment PSC Cash Bond (PGD) - Franchisee Term 5+5 years 66% FC, 40% FC, Varies per GP Split

  16. Slide 16: 9M 2018 Financial Highlights

    9M 2018 Financial Highlights 16,000 Balance Sheet and Cash Flow As at Sep. 30, % change (vs June 30, (in Php Million except Book Value per Share) 2018 2017) 14,000 Total Assets 15,570.4 24.5% Current Assets 7,366.6 43.8% 12,000 Non-current Assets 8,203.8 11.1% 10,000 Total Assets Current Liabili4es

  17. Slide 17: 9M 2018 Selected Financial Ratio

    9M 2018 Selected Financial Ra/o EPS Selected Financial Ra/o 2018 2017 1.20 1.00 Liquidity and Leverage Ratio: 0.80 Current Ratio (x) 0.92 0.83 0.60 Net Debt to Equity (%) -13.6 2.1 0.40 0.20 Profitability Ratio: - Return on Equity (%) 25.6 25.2 2014 2015 2016 2017 2018 EPS 0.62 0.68 0.85 0.86 0.97 E

  18. Slide 18: Continued store expansion and support infrastructure

    Con/nued store expansion and support infrastructure 2018 CAPEX of P3.5 billion 11 Opera4ng DCs New product Warehouse line and expansion Others equip. 6% 4% Pampanga RDC Stores replacement served: 206 La Union RDC 20% Pasig RDC Stores Stores served: served: 120 1,144 Naga FDC Stores served: 48 Openin

  19. Slide 19: End of Report

    - End of Report-

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