Philippine Seven Corporation · PSE:SEVN
Philippine Seven — FY2020 Earnings Presentation
26 slides from Philippine Seven's earnings presentation, February 2021
Slide 1: Q4 and FY 2020 Investor Briefing
PHILIPPINE SEVEN CORPORATION (SEVN) Q4 and FY 2020 Investor Briefing www.7-eleven.com.ph [email protected]
Slide 2: Contents
Contents Company Update Financial Performance Q4 and FY 2020 COVID Response
Slide 3: Company Update
Company Update 1-4 PHILIPPINE SEVEN CORPORATION
Slide 4: A Global Brand
A Global Brand Norway: 152 Sweden: 84 South Korea: 10,501 Canada: 627 United States: 9,936 China: 2,711 Denmark: 173 Japan: 20,981 Taiwan: 6,024 Mexico: 1,822 Vietnam: 51 72,000+ Philippines: 2,978 STORES Thailand: 12,432 WORLDWIDE Singapore: 423 Malaysia: 2,413 Australia: 714 *Store Counts as of De
Slide 5: 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 6: SEVN Share Information
SEVN Share Information Price (Feb. 26, 2021) Php 98.00 Hi/Low (1Y) Php 98.00 – Php 155.00 Free Float 33.1% or 250.5 million shares Outstanding Shares 756.4 million Market Capitalization USD 1.52 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 7: Store Network – FY 2020
Store Network – FY 2020 7-Eleven By Location Store Count % Jan. 1 Net additions Dec. 31 Metro Manila 1,006 4 1,010 34% Luzon-ex MM 1,172 79 1,251 42% Visayas 411 21 432 14% Mindanao 275 10 285 10% Total 2,864 114 2,978 100% As of Dec. 31, 2020 All Store Count 2,978 472 74 1,012 62 100 SSSG -18% -32%
Slide 8: Lockdown Measures
Lockdown Measures All Stores % Change PSD Sales -19% Ave CC -41% Ave Trans +38% Basket Size +21%
Slide 9: Financial Performance
Financial Performance w PHILIPPINE SEVEN CORPORATION
Slide 10: Q4 2020 Financial Performance
Q4 2020 Financial Performance System-wide IFRS IFRS sales P165.6 million P1.8 billion P12.0 billion - 78% - 24% - 23% Non-IFRS Non-IFRS Same-store sales P400.2 million P1.3 billion - 23.7% - 55% - 30% SALES NET INCOME EBITDA Q4 Net Income 5 Year Trend 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0
Slide 11: FY 2020 Financial Performance
FY 2020 Financial Performance System-wide IFRS IFRS sales - P419.7 million P4.7 billion P46.4 billion - 129% - 30% - 18% Non-IFRS Non-IFRS Same-store sales P108.8 million P2.8 billion - 18.4% - 94% - 45% SALES NET INCOME (LOSS) EBITDA FY Net Income 5 Year Trend 2,000.0 1,500.0 1,000.0 500.0 - 112.2
Slide 12: Sales dropped 23% in Q4 owing to decline in customer count
Sales dropped 23% in Q4 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 46.1 46.4 8.8% 10.3% 10.1% 23% 2018 2019 2020 4Q 2019 4Q 2020 15.7 12.0 -18.4% 2018 2019 2020 4Q 2019
Slide 13: Profitability Ratios
Profitability Ratios C19 Pandemic affected sales of higher GP Food Service categories partly offset by surge in commission income Gross Margin (Sales and Service) EBIT Margin 28.5% 8.8% 27.5% 27.6% 27.0% 5.2% 5.6% 4.7% 25.8% 1.0% 2018 2019 2020 4Q 2019 4Q 2020 2018 2019 2020 4Q 2019 4Q 2020 EBITDA M
Slide 14: 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 15: Working Capital
Working Capital Days inventory outstanding rose, backed by payables, while PSP increased AR Inventory Days Accounts Payable Days 53 68 40 41 41 52 53 50 32 39 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Accounts Receivable Days Cash Conversion Cycle 28 13 16 11 11 4 4 9 9 6 8 112.2 2016 2017 2
Slide 16: Liquidity and Solvency Ratios
Liquidity and Solvency Ratios Liquidity remains adequate | Net gearing rose to 29% Current Ratio Net Gearing 1.0 1.0 0.9 0.9 0.8 37% 29% 18% 7% 29% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Asset to Equity Net Cash (in billion PhP) 4.1 4.1 3.7 3.0 2.5 2.4 2.5 1.9 0.2 112.2 2016 2017 2018 201
Slide 17: Income Statement Highlights
Income Statement Highlights % 4Q 20 vs. % 4Q 20 vs. in PhP million except EPS FY20 FY19 % 4Q20 4Q19 3Q20 4Q 19 3Q 20 Systemwide Sales 46,369 56,333 -17.7% 12,031 15,701 10,291 -23.4% 16.9% Revenue from contracts with 43,646 52,951 -17.6% 11,480 14,676 9,899 -21.8% 16.0% customers Cost of merchandise
Slide 18: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights FY 2020 FY 2019 % Change Cash 5,137 4,625 11.1% Current Assets 13,897 12,703 9.4% Total Assets 29,749 29,674 0.3% Loans 2,163 559 287.1% Total Liabilities 22,395 21,636 3.5% Equity 7,354 8,038 -8.5% BV per Share 9.71 10.62 -8.5% Operating Cashflow 2,660 8,190 -
Slide 19: Digital Opportunities
• Deployment of cash-recycling ATMs that accepts deposits and DIGITAL withdrawals and other digital banking services. OPPORTUNITIES • To support growing services business of 7-Eleven. • Rich database of unique customers with permission to contact.
Slide 20: COVID Response
COVID Response w PHILIPPINE SEVEN CORPORATION
Slide 21: Wider product assortment
Wider product assortment ALSO AVAILABLE: FRY-YOUR-OWN PACKS
Slide 22: Partnership with aggregators
Partnership with aggregators
Slide 23: Launch of franchise support and rental concession efforts
Launch of franchise support and rental concession efforts
Slide 24: Implementation of health and safety standards
Implementation of health and safety standards
Slide 25: Collaboration with government on CSR
Collaboration with government on CSR
Slide 26: Slide 26