Philippine Seven Corporation · PSE:SEVN

Philippine Seven — Q3 2016 Earnings Presentation

18 slides from Philippine Seven's earnings presentation, November 2016

  1. Slide 1: Investors Briefing Q3 2016

    Philippine Seven Corporation (SEVN:PM) INVESTORS BRIEFING Q3 2016 7th Floor The Columbia Tower, Ortigas Avenue, Mandaluyong City 1550 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 44M Sweden Canada Denmark GUESTS United States Chin a Japan South Korea DAILY Mexico Hong Kong Taiwan 2015 Macau $100 Thailand 2X UAE Philippines WORLD’S Billion Malaysia Indonesia POPULATION EVERY in Sales Singapore Au

  4. Slide 4: Local Coverage and Industry Landscape

    Local Coverage and Industry Landscape 7-Eleven By Area Store Count % Metro Manila 754 41% Luzon-ex MM 783 42% Visayas 218 12% Mindanao 85 5% Total 1,840 100% 1,840 stores As of Sep. 30, 2016 + 361 stores vs. Q32015 All CVS (June 30) Store Count 1,740 529 104 115 16 7 7-Eleven has at least 65% market

  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 Present Shareholding Ag u s Developmen t Corp.; 2.87% Structure Others-Foreign; 13.91% Others-Fil- ipino; 4.14% Progressive Developmen t President Corp.; 2 .2 9% Asian Hold- Chain Store As of September 30, 2016 % ings Corp.; (Labuan) Hold- President Chain Store (Labuan) Holdin

  7. Slide 7: SEVN Share Information

    SEVN Share Information Price (Nov. 10, 2016) Php 150.00 Hi/Low (YTD) Php 98.00 – Php 181.00 Free Float 32% Outstanding Shares 458.44 million Market Capitalization USD 1.41 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; 1.00% Non-food; 18.00% 7-Eleven fresh food and cup drinks; 25.00% Food; 56.00% 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 & be

  9. Slide 9: Promotions and Events

    Promotions and Events #TElection The voice of the 05 FILINVEST CITY 01/17/16 5 10%

  10. Slide 10: 9M 2016 Financial Highlights

    9M 2016 Financial Highlights 2015 2016 % change 23,005.0 Sales 18,4 89.2 64 3.4 24.4 Net income 515.5 1,897.2 EBIT DA 1,519.2 24.8 24.9 (Php million) YTD September 2016 Net Income 5-Year Trend 700.0 600.0 500.0 400.0 300.0 200.0 100.0 - 2012 2013 2014 2015 2016 - 10 -

  11. Slide 11: FY 2015 Financial Highlights

    FY 2015 Financial Highlights 2014 2015 % change 25,779.3 Sales 20,566.5 1,008.0 25.3 Net income 873.3 2,586.1 EBIT DA 2,134 .2 15.4 21.2 (Php million) Net income 1,200.0 1,000.0 R+ 23.1% 5Y CA G 800.0 600.0 400.0 200.0 - (200.0) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 - 11 -

  12. Slide 12: FY 2015 Financial Highlights: Balance Sheet and Cash Flow

    FY 2015 Financial Highlights 10,000 9,000 Balance Sheet and Cash Flow As of % (in Php Million except Book Value per Share) Dec. 31, change 2015 8,000 Total Assets 9,515.9 21% 7,000 Current Assets 3,648.8 8% 6,000 Non-current Assets 5,867.2 30% Total Assets 4,976.6 18% Current Liabilities 5,000 Total

  13. Slide 13: FY 2015 Financial Highlights: Selected Ratios

    FY 2015 Financial Highlights EPS Selected Financial Ratio 2015 2014 2.50 Liquidity and Leverage Ratio: 2.00 Current Ratio (x) 0.73 0.80 1.50 Net Debt to Equity (%) 8.6% -14.9% 1.00 Profitability Ratio: 0.50 Return on Equity (%) 27.2 30.0 - Return on Capital Employed 25.3 31.3 2010 2011 2012 2013 201

  14. Slide 14: Comparative Metrics

    Comparative Metrics 2015 PSC PCSC CPALL 7-Eleven (Philippines) (Thailand) (Taiwan) Key Performance Ratio: Store count 1,602 5,028 8,832 Net Margin % 3.9* 6.2 4.6 EBITDA % 10.0* 6.6 10.2 EBIT % 5.8* 4.8 8.4 ROE 27.2 30.7 40.6 Days inventory outstanding 29.5 24.0 22.6 Days payable outstanding 40.7 51.

  15. Slide 15: 2017 CAPEX

    2017 CAPEX 2017 Budget of Php3.5 billion • 3 Year Trend 3,000 2,500 Warehouse expansion; 5.71% Others; 3.86% 2,000 New product line and equip. replacement; 20.00% Opening of new st ores; 1,500 Store remodelling; 62.86% 7.57% 1,000 500 • To open close to 400 stores in 2017 - • Cost to build store ran

  16. Slide 16: 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 -

  17. Slide 17: Recent Local Events

    Recent Local Events Proposed legislations/rules: 1. End of labor contractualization 2. Restriction on tobacco and liquor sales 3. Tax on sugar-sweetened beverages (SSB) 4. Tax reform package - 17 14 -

  18. Slide 18: End of Presentation

    * End of Presentation *

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