Philippine Seven Corporation · PSE:SEVN

Philippine Seven — FY2016 Earnings Presentation

16 slides from Philippine Seven's earnings presentation, 2017

  1. Slide 1: Investors Briefing Q4 2016

    Philippine Seven Corporation (SEVN:PM) INVESTORS BRIEFING Q4 2016 7th Floor The Columbia Tower, Ortigas Avenue, Mandaluyong City 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. -2-

  3. Slide 3: A Global Brand

    A Global Brand The World’s Largest Retailer: > 60,000 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 UAE Malaysia Philippines WORLD’S POPULATION in Sales Singapore Indonesia EVERY Est

  4. Slide 4: Local Coverage and Industry Landscape

    Local Coverage and Industry Landscape 7-Eleven By Area Store Count % Metro Manila 808 41% Luzon-ex MM 825 41% Visayas 255 13% Mindanao 107 5% Total 1,995 100% As of Dec. 31, 2016 All CVS (June 30) Store Count 1,995 499 100 130 27 22 7-Eleven has at least 70% market share in the Philippines. -4-

  5. Slide 5: 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

  6. Slide 6: Shareholding Structure

    Shareholding Structure PCD Nominee Others-Filipino Progressive (Filipino) 1% Santos Family Present Development Corporation 2% 1% Seven Eleven Inc. 2% 0% Shareholding Agus Development Corporation Structure 3% Asian Holdings Corporation 7% As of December 31, 2016 % Paterno Family 7% President Chain St

  7. Slide 7: SEVN Share Information

    SEVN Share Information Price (Dec. 28, 2016) Php135.40 Hi/Low (YTD) Php 135.00 – Php 136.00 Free Float 33% Outstanding Shares 458.44 million Market Capitalization USD 1.28 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 Payment Stock .10 .10 .05 .15 .15 .15 - - - Cash - - .05 .10 .10 .

  8. Slide 8: Proprietary Products

    Proprietary Products By Section Services Non-food 1% 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

  9. Slide 9: Promotions and Events

    Promotions and Events #7Election The voice of the in partnership with

  10. Slide 10: FY 2016 Financial Highlights

    FY 2016 Financial Highlights 2015 2016 % change 25,779 Sales 31,756 23.2 1,008 Net income 1,175 16.6 2,579 EBITDA 3,115 20.8 (Php million) Net income 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 - (200.0) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net income (2.0) 13.8 20.1

  11. Slide 11: FY 2016 Financial Highlights

    FY 2016 Financial Highlights 14,000.00 Balance Sheet and Cash Flow As of % (in Php Million except Book Value per Share) Dec. 31, 2016 change 12,000.00 Total Assets 12,351.6 29.8% 10,000.00 Total Assets Current Assets 5,372.5 47.2% Non-current Assets 6,979.1 19.0% Total Liabilities 8,000.00 Current L

  12. Slide 12: FY 2016 Financial Highlights

    FY 2016 Financial Highlights EPS Selected Financial Ratio 2016 2015 3.00 Liquidity and Leverage Ratio: 2.50 2.00 Current Ratio (x) 0.83 0.73 1.50 Net Debt to Equity (%) 6.2% 8.6% 1.00 Profitability Ratio: 0.50 Return on Equity (%) 25.7 27.2 - 2010 2011 2012 2013 2014 2015 2016 Return on Capital Empl

  13. Slide 13: Comparative Metrics

    Comparative Metrics 2016 PSC – FY PCSC – Q3 CPALL - FY 7-Eleven (Philippines) (Taiwan) (Thailand) Key Performance Ratio: Store count 1,995 5,107 9,542 Net Margin % 3.7 5.2 5.1 EBITDA % 9.8 9.2 10.2 EBIT % 5.5 6.6 8.6 ROE 25.7 38.5 37.1 Days inventory outstanding 31.0 29.0 21.9 Days payable outstandi

  14. Slide 14: 2017 CAPEX

    2017 CAPEX 2017 Budget of Php4.1 billion • 3 Year Trend 3,000 Warehouse expansion Others 2,500 6% 4% New product line and 2,000 equip. replacement 20% 1,500 Opening of 1,000 new stores 63% 500 Store remodelling - 7% 2014 2015 2016 Opening of new stores 1,394 1,848 2,788 Equipment replacement 208 350

  15. Slide 15: Future Growth affected by trend of traditional stores

    Future Growth affected by trend of traditional stores Source: Nielsen Retail Audit Index, May 2016 - 16 14 -

  16. Slide 16: End of Presentation

    * End of Presentation *

Philippine Seven — FY2016 Earnings Presentation on 6ix