Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q3 2019 Earnings Presentation
20 slides from Philippine Seven's earnings presentation, 2019
Slide 1: 2019 3rd Quarter Investor Briefing
Philippine Seven Corpora/on (SEVN) 2019 3rd Quarter 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 69,567 Stores (as of Sep. 30, 2019) b. Philippines ranked 6th out of 17 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 September 30, 2019 % ownership President Chain Store (Labuan) Holding
Slide 5: SEVN Share Information
SEVN Share Informa/on Price (Sep. 30, 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: Q3 2019
Store Network: Q3 2019 7-Eleven By Loca/on Store Count % Jan. 1 Net addi4ons Sep. 30 Metro Manila 938 38 976 36% Luzon-ex MM 1,027 78 1,105 41% Visayas 365 26 391 14% Mindanao 220 34 254 9% Total 2,550 176 2,726 100% As of Sep. 30, 2019 + 284 stores vs. Q3 2018 All Store Count 2,726 509 70 700 25 0
Slide 8: Q3 2019 Financial Performance
Q3 2019 Financial Performance System-wide IFRS IFRS sales P210.5 million P1.4 billion P13.6 billion + 4% + 79% + 25% Non-IFRS Non-IFRS Same-store sales P317.2 million P1.0 billion + 13% + 57% + 27% Sales Net income EBITDA Q3 Net Income 5 Year Trend 350.0 300.0 250.0 200.0 150.0 100.0 210.5 50.0 - 20
Slide 9: 9M YTD 2019 Financial Performance
9M YTD 2019 Financial Performance System-wide IFRS IFRS sales P695.9 million P4.4 billion P40.6 billion - 5% + 74% + 23% Non-IFRS Non-IFRS Same-store sales P1.1 billion P3.2 billion + 11% + 50% + 26% Sales Net income EBITDA 9M Net Income 5 Year Trend 1,200.0 1,000.0 800.0 600.0 400.0 695.9 200.0 - 2
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: SSSG grew by a solid 13.0% in Q3, same rate with Q2
SSSG grew by a solid 13.0% in Q3, same rate with Q2 Systemwide sales (in millions) Store count SSSG % 50,000.0 3,000 14.0% 46,128.7 12.9% 13.0% 13.0% 2,664 45,000.0 2,550 2,593 2,442 12.0% 2,500 2,385 40,000.0 37,530.8 2,285 2,329 2,172 35,000.0 10.0% 2,000 8.8% 30,000.0 7.7% 8.0% 6.8% 25,000.0 1,50
Slide 13: Financial Position as at Sep. 30, 2019
Financial Posi/on as at Sep. 30, 2019 % change 30,000 Balance Sheet and Cash Flow As at (vs. 12/31/2018 except CF, w/c is (in Php Million except Book Value per Share) Sep. 30, 2019 comp. vs. 9Mos. 2018) 25,000 Total Assets 27,524.9 58.2% Current Assets 10,264.3 14.2% 20,000 Non-current Assets * 17,2
Slide 14: Selected Financial Ratio
Selected Financial Ra/o 9M EPS 9M Selected Financial Ra/o 9M 2019 2018 1.20 1.00 IFRS Non-IFRS 0.80 0.60 Liquidity and Leverage Ratio: 0.40 Non- IFRS Current Ratio (x) 0.86 1.01 0.97 0.20 EPS P1.49 - Debt to Equity (x) 2.72 1.42 1.46 2015 2016 2017 2018 2019 EPS 0.47 0.62 0.86 0.97 0.92 Asset to Equ
Slide 15: Crunch Time and City Blends drive Foodservice sales, while service revenues outperform
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 New City Blends Cafe 112.2 Alloked area for e-commerce order and pick-up
Slide 18: 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 19: Continued store expansion and support infrastructure
Con/nued store expansion and support infrastructure 2019 CAPEX of P3.7 billion 14 Opera4ng DCs New product Warehouse San Jose FDC line and expansion Others equip. 5% 0% Pampanga RDC replacement 20% La Union RDC Pasig RDC Store Naga FDC expansion Batangas FDC 50% Revenue Iloilo RDC enhancement 25% Ba
Slide 20: End of Report
- End of Report-