Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q2 2021 Earnings Presentation
24 slides from Philippine Seven's earnings presentation, October 2021
Slide 1: Q2 2021 Investor Briefing
PHILIPPINE SEVEN CORPORATION (SEVN) Q2 2021 Investor Briefing www.7-eleven.com.ph [email protected]
Slide 2: Outline
Outline Company Update H1 Financial Performance Store Expansion O2O Strategies COVID Response
Slide 3: A Global Brand
A Global Brand Norway: 152 Sweden: 82 South Korea: 10,940 Canada: 625 United States: 13,468 China: 2,838 Denmark: 172 Japan: 21,111 Taiwan: 6,233 Mexico: 1,813 Vietnam: 60 UAE: 11 76,000+ Philippines: 3,009 STORES Thailand: 12,773 WORLDWIDE Singapore: 435 Malaysia: 2,400 Australia: 712 *Store Counts
Slide 4: Global Recognition
Global Recognition sev fes rugen op — ° ff WO: “f Vi y re (P 4 WE 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 Merchandisi
Slide 5: Shareholding Structure
Shareholding Structure Present Agus Development Corp. 3% Ownership Structure Others-Foreign 13% Others-Filipino 3% As of September 30, 2021 % ownership Progressive Development Corp. 2% President Chain Store (Labuan) Holdings, Ltd 54.88% Asian Holdings Corp. Others-Foreign 12.47% 6% President Chain S
Slide 6: SEVN Share Information
SEVN Share Information Price (October 11, 2021) Php 89.00 Hi/Low (YTD) Php 84.50 – Php 121.00 Free Float 30.5% Outstanding Shares 756.42 million Market Capitalization USD 1.32 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Payment Sto
Slide 7: Store Network as of Sep. 30, 2021
Store Network as of Sep. 30, 2021 7-Eleven By Location Store Count % Jan. 1 Opening Closure Sep. 30 Metro Manila 1,010 20 27 1,003 33% Luzon-ex MM 1,251 50 12 1,289 43% Visayas 432 15 14 433 14% Mindanao 285 19 10 294 10% Total 2,978 104 63 3,019 100% As of Sep. 30, 2021 All Store Count 3,019 460 82
Slide 8: Impact of Lockdown Restrictions
Impact of Lockdown Restrictions All Stores % Change Store Days +7% PSD Sales -14% Ave CC -4% Ave Trans -11% Systemwide sales -8%
Slide 9: New Store Concepts
New Store Concepts
Slide 10: 7B Cash Recycler ATM Rollout
• Innovative solution to 7E cash management requirements 7B CASH RECYCLER • Reduces cash handling risks and allows immediate usage of funds ATM ROLLOUT • Enhances our value proposition and generates incremental revenue
Slide 11: Q2 2021 Financial Performance
Q2 2021 Financial Performance System-wide IFRS IFRS sales - P103.2 million P1.1 billion P11.1 billion - 79% + 110% + 11.8% Non-IFRS Non-IFRS Same-store sales P1.2 million P579.0 million - 5.1% + 100% + 502% SALES NET LOSS EBITDA Q2 Net Income 5 Year Trend 600.0 400.0 200.0 - (200.0) 112.2 (400.0) (6
Slide 12: 6M 2021 Financial Performance
6M 2021 Financial Performance System-wide IFRS IFRS sales - P402.9 million P2.0 billion P22.2 billion + 3.4% + 4.2% - 7.7% Non-IFRS Non-IFRS Same-store sales - P156.5 million P980.8 million - 13.9% - 82% - 3.2% SALES NET LOSS EBITDA 6M Net Income 5 Year Trend 600.0 400.0 200.0 - (200.0) (400.0) (600
Slide 13: Sales improved 12% in 2Q but remains below 80% of pre-COVID level
Sales improved 12% in 2Q but remains below 80% of pre-COVID level Mobility restrictions halted solid growth and expansion momentum in 2019 Systemwide Sales (in billion PhP) Same Store Sales Growth 56.3 46.1 46.4 8.8% 10.3% +12% 2.5% 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 14.1 -5.1% 9.9 11.1
Slide 14: Profitability Ratios
Profitability Ratios Lower sales dragged margin | Total commission grew 90% and is pegged at 6% of revenues Gross Margin (Sales and Service) EBIT Margin 27.5% 27.0% 5.2% 5.6% 26.4% 26.2% 25.8% 3.0% 25.7% 1.0% 0.8% 24.9% 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 -1.6% 2018 2019 2020 1Q 2020 2Q 2
Slide 15: Sales per Category
Sales per Category Low office occupancy and suspension of schools decreased share of high GP Food Service and Cup Drinks categories from 23.7% in 2019 to 19.2% in 2021 1H 2021 1H 2020 1H 2019
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. • Aggregates revenue from merchandise sales, commission income and franchise revenues. A Revenue from contracts with customers A.1 + A.2 + A.3
Slide 17: Working Capital
Working Capital Days inventory outstanding rose to buffer stocks | Cash conversion days increased Inventory Days Accounts Payable Days 53 54 53 50 68 64 44 58 57 57 41 41 52 53 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 Accounts Receivable Days Cash
Slide 18: Liquidity and Solvency Ratios
Liquidity and Solvency Ratios Liquidity remains adequate | Net gearing rose to 37% Current Ratio Net Gearing 1.1 1.1 1.0 0.9 0.9 0.9 0.9 1.5 2.7 3.0 2.6 2.7 3.0 3.3 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 2018 2019 2020 1Q 2020 2Q 2020 1Q 2021 2Q 2021 Asset to Equity Cash (in billion PhP) 4.3
Slide 19: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights As at June 30, As at December 31, 2021 2020 %Change Cash 6,064 5,137 18.0% Current Assets 14,503 13,897 4.4% Total Assets 29,932 29,749 0.6% Loans 4,243 2,163 96.1% Total Liabilities 22,981 22,395 2.6% Equity 6,951 7,354 -5.5% BV per Share 9.19 9.72 -5.5% Opera
Slide 20: Vaccination Efforts
7E (+22,000 FRONT-LINERS) Vaccinated Not vaccinated Not Vaccination vaccinated 27% Efforts Vaccinated 73%
Slide 21: Wider product assortment
Wider product assortment ALSO AVAILABLE: FRY-YOUR-OWN PACKS
Slide 22: Partnership with aggregators
Partnership with aggregators
Slide 23: Continuing franchise support and rental concession
Continuing franchise support and rental concession
Slide 24: Slide 24