Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q3 2015 Earnings Presentation
20 slides from Philippine Seven's earnings presentation, November 2015
Slide 1: Investors Briefing Q3 2015
Philippine Seven Corporation (SEVN:PM) INVESTORS BRIEFING Q3 2015 7th Floor The Columbia Tower, Ortigas Avenue, Mandaluyong City Email: [email protected]
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. -2-
Slide 3: A Global Brand
A Global Brand The World’s Largest Retailer: ~ 55,000 Stores Norway SERVING OVER Sweden 44M Canada Denmark GUESTS United States China Japan South Korea DAILY Mexico Hong Kong Taiwan Macau 2015 Thailand 2X $100 Billion Malaysia Philippines WORLD’S POPULATION in Sales Singapore Indonesia EVERY Estimat
Slide 4: Local Coverage
Local Coverage By Location Store Count % Metro Manila 689 43% Luzon-ex MM 702 44% Visayas 178 11% Mindanao 33 2% Total 1,602 100% As of Dec. 31, 2015 7-Eleven has at least 65% market share in the Philippines. -4-
Slide 5: PSC History at a Glance
PSC History at a Glance 1982 PSC was established 2005 Moved to a full-scale distribution center 1984 Opened first store 2007 PhilSeven Foundation was established 1996 Opened 100th Store 2010 Opened 500th Store PSC launches its IPO; Opened first Opened 711th Store and entered Visayas 1998 2012 Franch
Slide 6: Shareholding Structure
Shareholding Structure Agus Development Corp. 3% Present Shareholding Others-Foreign 14% Structure Others-Filipino 4% Progressive Development Corp. 2% President Chain Store (Labuan) Holdings, Asian Holdings Corp. Ltd. 7% 52% As of September 30, 2015 % Paterno Family 8% President Chain Store (Labuan)
Slide 7: SEVN Share Information
SEVN Share Information Price (Nov. 11, 2015) Php 109.00 Hi/Low (12 months) Php 80.00 – Php 140.00 Free Float 32% Outstanding Shares 458.44 million Market Capitalization USD 1.06 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 Payment Stock .10 .10 .05 .15 .15 .15 - - Cash - - .05 .10 .10 .1
Slide 8: Store Count
Store Count Store Count Store Count by Type 2,000 1,500 Corporate, FC1 44% 37% 1,000 500 FC2, 19% - 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • Number of stores grew by 20% to 25% annually • 60% of stores ar
Slide 9: Proprietary Products
Proprietary Products By Section Services 1% Non-food 7-Eleven 18% fresh food and cup drinks 25% Food 56% 1. 7-Eleven fresh food and drinks includes, rice meal, sandwiches, Slurpee® and coffee. 2. Food section are FMCG and alcoholic beverages 3. Non-food are cigarettes and health & beauty items 4. Se
Slide 10: Promotions and Events
Promotions and Events MED nn = APs +24 3 1500 ae ee 1000 eh S| CONGRATULATIONS acTHE WINNERS! Fx ;
Slide 11: Franchise Packages
Franchise Packages FC1 FC2 Franchise Type Investor Industrial USD 80,000- USD 20,000- Investment 100,000 25,000 Building Franchisee PSC Merchandise Franchisee Equipment PSC Cash Bond (PGD) - Franchisee Term 5+5 years 66% FC, 40% FC, GP Split 34% PSC 60% PSC Rent Franchisee PSC Electricity 50 - 50 sp
Slide 12: Financial Highlights
Financial Highlights 2014 2013 % change 20,566.5 Sales 17,240.5 19.3 873.3 Net income 682.6 27.9 2,134.2 EBITDA 1,709.2 24.9 (Php million) Net income 1,000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 - (100.0) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net income (2.0) 13.8 2
Slide 13: Financial Highlights
Financial Highlights 8,000 Balance Sheet and Cash Flow As of % (in Php Million except Book Value per Share) Dec. 31, change 7,000 2014 Total Assets 7,882.3 31% 6,000 Current Assets 3,365.4 28% 5,000 Total Assets Non-current Assets 4,516.9 33% Current Liabilities 4,225.3 33% 4,000 Total Liabilities T
Slide 14: Financial Highlights
Financial Highlights EPS 2.50 Selected Financial Ratio 2014 2013 2.00 Liquidity and Leverage Ratio: 1.50 Current Ratio (x) 0.80 0.83 1.00 Net Debt to Equity (%) -15.3% -16.7% 0.50 Profitability Ratio: - 2010 2011 2012 2013 2014 Return on Equity (%) 30.0 30.7 EPS 0.60 0.78 1.01 1.49 1.91 Return on Ca
Slide 15: Comparative Metrics
Comparative Metrics 2014 PSC PCSC CPALL 7-Eleven (Philippines (Thailand) ) (Taiwan) Key Performance Ratio: Store count 1,282 5,040 8,127 Net Margin % 4.2* 6.9 3.8 EBITDA % 10.4* 8.9 9.5 EBIT % 6.2* 4.8 7.7 ROE 30.0 36.1 42.3 Days inventory outstanding 29.3 21.4 23.0 Days payable outstanding • Based
Slide 16: 9 Mos 2015 Financial Highlights
9 Mos 2015 Financial Highlights 2015 2014 % change 18,489 Sales 14,818 24.8 516 Net income 468 10.1 1,555 EBITDA 1,308 18.9 (Php million) YTD Net Income 5 Year Trend 600.0 500.0 400.0 300.0 200.0 100.0 - 2011 2012 2013 2014 2015 YTD 174.7 224.4 431.0 468.3 515.5 - 16 -
Slide 17: 2015 CAPEX
2015 CAPEX 2015 Budget of Php3.0 billion 3 Year Trend 3,000 Warehouse Equipment expansion Others 2,500 replacement 7% 3% and new 2,000 product line 11% 1,500 Opening of 1,000 new stores 71% 500 Store remodelling - 2013 2014 2015 8% Opening of new stores 1,013 1,394 2,121 Equipment replacement 35 208
Slide 18: Future Growth affected by trend of traditional stores
Future Growth affected by trend of traditional stores Supermarket Grocery/ CVS Sari-Sari Store Based on General Performance Update YTD SEPTEMBER 2015 by Nielsen - 18 -
Slide 19: Population Per Store
Potential to improve penetration… 90,000 Philippines Thailand Taiwan 80,000 Urbanization 49% 34% 75% Philippines 70,000 AGE % % % Population Per Store 0-14 34% 20% 15% 60,000 Demographics 15-24 19% 15% 14% 50,000 25-54 37% 46% 48% 55+ 6% 10% 12% 40,000 Luzon Density 896/sq.mi. 342/sq.mi. 1,664/sq.mi
Slide 20: End of Presentation
* End of Presentation *