Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q2 2024 Earnings Presentation
17 slides from Philippine Seven's earnings presentation, October 2024
Slide 1: Q2 2024 Investor Briefing
Q2 2024 Investor Briefing [email protected]
Slide 2: A Global Brand
A Global Brand Norway: 114 Sweden: 78 South Korea: 12,514 Canada: 588 United States: 13,263 China: 2,182 Denmark: 175 Japan: 21,618 Taiwan: 7,029 Mexico: 2,015 Hong Kong: 1,088 Vietnam: 99 83,000+ India: 59 Philippines: 3,986 STORES Thailand: 14,969 Cambodia: 92 WORLDWIDE Singapore: 496 Malaysia: 2,
Slide 3: Global Recognition
Global Recognition First Asian to be elected, ended his term this October, though remained member of the Executive Committee and Chair of the International Board
Slide 4: Shareholding Structure
Shareholding Structure Present Agus Development Corp. Ownership 3% Structure ** Others-Filipino Others-Foreign 11% 5% % ownership Progressive Development Corp. President Chain Store (Labuan) Holdings, Ltd * 55.32% 2% Asian Holdings Corp. Others-Foreign 10.92% 6% President Chain Arisaig Asia Consumer
Slide 5: SEVN Share Information
SEVN Share Information Price (Oct. 14, 2024) PhP 72.00 Hi/Low (52-week range) PhP 35.00 – PhP 75.00 Free Float 29.7% Outstanding Shares 1.512 billion Market Capitalization USD 1.90 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 6: Philippine economy grew faster to 6.3% in Q2 from 5.8% previous quarter
Philippine economy grew faster to 6.3% in Q2 from 5.8% previous quarter as inflation decelerates +14%
Slide 7: PHL 2Q GDP growth still one of the fastest in the region
PHL 2Q GDP growth still one of the fastest in the region Already exceeded 2019 but trails peers owing to strict lockdown measures imposed in 2020 Source: BPI
Slide 8: Retail Landscape
Retail Landscape Value Share of Trade per Channel Value Share Value share Value Share Value Share Value Share Value Share Value Share Value Share Difference Difference YTD May 2019 YTD May 2020 YTD May 2021 YTD May 2022 YTD May 2023 YTD May 2024 (2024 vs 2023) (2024 vs 2019) +14% Supermarket 45.7% 4
Slide 9: 4,000th Store Milestone
4,000th Store Milestone +14%
Slide 10: Store Network as of Sep. 30, 2024
Store Network as of Sep. 30, 2024 7-Eleven By Location Store Count % Jan. 1 Opening Closure Sep. 30 Metro Manila 1,094 35 13 1,116 28% Luzon-ex MM 1,730 135 6 1,859 46% Visayas 541 54 2 593 15% Mindanao 403 55 4 454 11% Total 3,768 279 25 4,022 100% + 500 new 2019 2020 2021 2022 2023 2024* 2025 Targ
Slide 11: H1 2024 Financial Performance
H1 2024 Financial Performance SYSTEM-WIDE SALES OPERATING P45.9 billion NET INCOME CASH FLOW +18.6% P1.76 billion P6.34 billion OPERATING REVENUE +14.0% P43.3 billion +61.3% +18.4% Quarterly Net Income Trend 1,400 1,200 1,000 800 600 400 200 - (200) 112.2 (400) (600) 2014 2015 2016 2017 2018 2019 20
Slide 12: Sales rose 18.6% during first half totaling P45.9 billion
Sales rose 18.6% during first half totaling P45.9 billion Driven by SSSG of +7.9% on account of 8.7% increase in customer count, and net addition of 158 stores Systemwide Sales (in billion PhP) Same Store Sales Growth 23.3% 82.2 +20.5% 28.8% 11.1% 66.0 56.3 +14% 10.3% 13.0% 8.7% 7.4% 46.4 47.2 22.0
Slide 13: Non-alcoholic beverages posted biggest gain to 25.2% share
Non-alcoholic beverages posted biggest gain to 25.2% share Contribution of high GP food service and cup drinks steady at 23.6% Merchandise Sales Mix Store Ownership Cigarettes FC 2 & 3 Alcoholic 9% Foodservice +20.5% beverage 20% 5% 9% +14% Cup drinks 3% FC 1 Non- alcoholic 43% beverage 25% Consumer
Slide 14: Profitability Ratios (based on revenue from contracts with customers)
Profitability Ratios (based on revenue from contracts with customers) Reached highest operating margin in FY 2023 but slowed down in 2024 partly due to other income timing EBITDA declined owing to derecognition of ROU asset from 3-party lease arrangement classified as short-term Operating Income EBI
Slide 15: Comparative Analysis
Comparative Analysis Highest ROE and EBIT% but longest days inventory outstanding FY 2023 7-Eleven +14% Philippines Taiwan Thailand No. of stores 3,768 6,859 14,545 Operating income 6.45% 3.35% 6.24% Net margin 4.46% 5.37% 3.59% Days inventory outstanding 43.1 33.7 23.4 Days payable outstanding 45.5
Slide 16: 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
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