Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q2 2020 Earnings Presentation
23 slides from Philippine Seven's earnings presentation, October 2020
Slide 1: Q2 2020 Investor Briefing
PHILIPPINE SEVEN CORPORATION (SEVN) Q2 2020 Investor Briefing www.7-eleven.com.ph [email protected]
Slide 2: A Global Brand
A Global Brand Norway: 155 Sweden: 86 South Korea: 10,298 Canada: 630 United States: 9,917 China: 2,615 Denmark: 173 Japan: 20,884 Taiwan: 5,852 Mexico: 1,809 Vietnam: 45 UAE: 11 71,000+ Philippines: 2,942 STORES Thailand: 12,145 WORLDWIDE Singapore: 406 Malaysia: 2,369 Australia: 707 *Store Counts
Slide 3: Global Recognition
Global Recognition 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 Merchandising, 7-Eleven Philippines Global licensor 7-Elev
Slide 4: Shareholding Structure
Shareholding Structure Agus Development Corp. Present 3% Ownership Structure Others-Foreign 15% Others-Filipino 3% As of June 30, 2020 % ownership Progressive Development Corp. 2% President Chain Store (Labuan) Holdings, Ltd 52.22% Asian Holdings Corp. President Chain Store (Labuan) Holdings, Ltd. 7
Slide 5: SEVN Share Information
SEVN Share Information Price (October 8, 2020) Php 115.00 Hi/Low (YTD) Php 108.00 – Php 172.00 Free Float 33.1% Outstanding Shares 756.42 million Market Capitalization USD 1.80 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Payment Stock 0
Slide 6: Store Network – Q2 2020
Store Network – Q2 2020 7-Eleven By Location Store Count % Jan. 1 Net additions June 30 Metro Manila 1,006 13 1,019 35% Luzon-ex MM 1,172 31 1,203 41% Visayas 411 14 425 14% Mindanao 275 8 283 10% Total 2,864 66 2,930 100% As of June 30, 2020 All Store Count 2,930 512 82 875 62 65 SSSG (Q2) -25.5% -
Slide 7: Q2 2020 Financial Performance
Q2 2020 Financial Performance System-wide IFRS IFRS sales - P493.5 million P526.7 million P9.9 billion - 232% - 68% - 31% Non-IFRS Non-IFRS Same-store sales - P350.8 million P96.1 million - 25.5% - 169% - 92% SALES NET LOSS EBITDA Q2 Net Income 5 Year Trend 600.0 400.0 200.0 - (200.0) 112.2 (400.0)
Slide 8: 6M 2020 Financial Performance
6M 2020 Financial Performance System-wide IFRS IFRS sales - P389.7 million P1.9 billion P24.0 billion - 180% - 37% - 11% Non-IFRS Non-IFRS Same-store sales - P120.6 million P1.0 billion - 11.3% - 115% - 54% SALES NET LOSS EBITDA 6M Net Income 5 Year Trend 600.0 400.0 200.0 - (200.0) 112.2 (400.0) (6
Slide 9: Sales dropped 31% in Q2 owing to decline in customer count
Sales dropped 31% in Q2 owing to decline in customer count Strict lockdown measures halted solid growth and expansion momentum in 2019 Systemwide Sales (in billion PhP) Same Store Sales Growth 56.3 13.0% 46.1 8.8% 10.3% 6.8% 37.5 2.5% 0.2% 31% 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 12.5 14.5
Slide 10: Profitability Ratios
Profitability Ratios Full impact of C19 Pandemic in 2Q | IFRS 16 effectivity on Jan. 1, 2019 Gross Margin (Sales and Service) EBIT Margin 27.4% 27.5% 27.0% 26.9% 26.4% 25.9% 22.7% 5.5% 5.2% 5.6% 5.5% 3.5% 3.0% 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2
Slide 11: 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 12: Working Capital
Working Capital Days inventory outstanding rose | Cash conversion days flat Inventory Days Accounts Payable Days 64 49 58 43 50 52 53 52 52 40 41 41 41 38 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 Accounts Receivable Days Cash Conversion Cycle 15 0
Slide 13: Liquidity and Solvency Ratios
Liquidity and Solvency Ratios Liquidity remains adequate | Net gearing rose to 37% Current Ratio Net Gearing 0.9 0.9 0.9 0.9 0.9 0.9 0.8 29% 18% 7% 17% 13% 22% 37% 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 2017 2018 2019 1Q 2019 2Q 2019 1Q 2020 2Q 2020 Asset to Equity Cash (in billion PhP) 6.1
Slide 14: Income Statement and Cash Flow Highlights
Income Statement and Cash Flow Highlights % 2Q20 vs. % 2Q20 vs. in million Pesos 1H20 1H19 % 2Q20 2Q19 1Q20 2Q19 1Q20 Systemwide Sales 24,047 26,988 -10.9% 9,920 14,453 14,127 -31.4% -29.8% Revenue from contracts with customers 22,267 25,357 -12.2% 9,169 13,696 13,098 -33.1% -30.0% Cost of merchandi
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights As at As at % in million June 30, 2020 December 31, 2019 Change Cash 5,343 4,625 15.5% Current Assets 12,153 12,703 -4.3% Total Assets 28,407 29,674 -4.3% Loans 2,834 559 407.2% Total Liabilities 20,759 21,636 -4.1% Equity 7,648 8,038 -4.8% BV per Share 10.11 10.63 -4.9%
Slide 16: COVID-19 Response
COVID-19 Response Wider product assortment Partnership with aggregators Launch of franchise support and rent reduction efforts Implementation of health and safety standards Collaboration with government on CSR initiatives
Slide 17: From high of 900 store closures in ECQ, now down to 200 or 7%
From high of 900 store closures in ECQ, now down to 200 or 7% AVERAGE SALES
Slide 18: Wider product assortment
ALSO AVAILABLE: FRY-YOUR-OWN PACKS HoTDoss 15 PCS, (1.25Kg) ‘omy cdo Ai Wider product assortment
Slide 19: Partnership with aggregators
Partnership with aggregators
Slide 20: Launch of franchise support and rental concession efforts
Launch of franchise support and rental concession efforts
Slide 21: Implementation of health and safety standards
Implementation of health and safety standards
Slide 22: Collaboration with government on CSR
Collaboration with government on CSR
Slide 23: Slide 23