Philippine Seven Corporation · PSE:SEVN

Philippine Seven — Q2 2018 Earnings Presentation

19 slides from Philippine Seven's earnings presentation, 2018

  1. Slide 1: Investor Briefing Q2 2018

    Philippine Seven Corpora/on (SEVN) INVESTOR BRIEFING Q2 2018 7th Floor The Columbia Tower, Or4gas 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.

  3. Slide 3: A Global Brand

    A Global Brand The World’s Largest Retailer: a. more than 66,700 Stores (as of May 31, 2018) b. Philippines ranked 6th out of 27 countries and territories Norway SERVING OVER 55M Sweden Canada Denmark GUESTS United States China South Korea Japan DAILY Mexico Hong Kong Taiwan Vietnam 2016 Thailand Ma

  4. Slide 4: 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

  5. Slide 5: Shareholding Structure

    Shareholding Structure Present Agus Development Corp. 3% Shareholding Structure Others-Foreign 16% Others-Filipino 2% Progressive Development Corp. 2% President Chain Store Asian Holdings Corp. (Labuan) Holdings, Ltd. As of June 30, 2018 % ownership 7% 52% President Chain Store (Labuan) Holdings, Lt

  6. Slide 6: SEVN Share Information

    SEVN Share Informa/on Price (Aug. 31, 2018) Php 109.80 Hi/Low (YTD) Php 100.00 – Php 145.00 Free Float 33.1% Outstanding Shares 756.42 million Market Capitaliza4on USD 1.55 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Payment Stock 0.10 0.10 0.05 0.15 0.15 0.15 - - - 0.65

  7. Slide 7: Store Network: Q2 2018

    Store Network: Q2 2018 7-Eleven By Loca/on Store Count % Jan. 1 Net addi4ons June 30 Metro Manila 879 27 906 38% Luzon-ex MM 923 37 960 40% Visayas 313 18 331 14% Mindanao 170 19 189 8% Total 2,285 101 2,386 100% + 298 stores vs. Q2 2017 As of June 30, 2018 All (Q2 2018) Store Count 2,386 488 65 441

  8. Slide 8: Q2 2018 Financial Highlights

    Q2 2018 Financial Highlights 2017 2018 % change 9,693.6 Sales 11,552.0 19.2 288.3 Net income 342.7 18.9 422.0 EBIT 497.1 17.8 (Php million) Q2 Net Income 5 Year Trend 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 - 2014 2015 2016 2017 2018 Q2 223.9 243.6 290.0 288.3 342.7

  9. Slide 9: H1 2018 Financial Highlights

    H1 2018 Financial Highlights 2017 2018 % change 18,070.5 Sales 22,172.0 22.7 446.4 Net income 533.2 19.4 658.3 EBIT 785.1 19.3 (Php million) YTD Net Income 5 Year Trend 600.0 500.0 400.0 300.0 200.0 100.0 - 2014 2015 2016 2017 2018 YTD 323.9 356.5 472.3 446.4 533.2

  10. Slide 10: SSSG still up at +6.3% in Q2, H1 +9.2%

    SSSG s/ll up at + 6.3% in Q2 to bring H1 performance to +9.2%, beber than LY of – 1.0% Systemwide sales (in millions) Store count SSSG % 40,000.0 37,530.8 2,500 14.0% 12.9% 35,000.0 2,386 31,756.5 2,400 12.0% 2,329 30,000.0 2,285 2,300 10.0% 25,000.0 2,200 8.0% 6.3% 2,087 20,000.0 2,100 6.0% 2,031 1

  11. Slide 11: Fresh food and cup drinks account for 25% of sales

    Fresh food and cup drinks account for 25% of sales By Sec/on Services 1% Cigarebes 7% Non-food Fresh food 6% 18% Cup drinks Grocery and 7% snack food 19% Beer and liquor 9% Ice cream 7% Beverages 26% 1. 7-Eleven fresh food and beverages include, rice meal, sandwiches, Slurpee® and City Blends coffee.

  12. Slide 12: Marketing income boosted profitability

    Marke/ng income boosted profitability

  13. Slide 13: Update on Digital Strategy

    Update on Digital Strategy 2018 E-commerce KPIs Jan Feb Mar Apr May Jun YTD Basket size 2.2 2.2 2.0 1.9 1.8 2.6 2.2 Ave Php sales / basket 218 203 212 328 308 208 254 Ave daily customer count 189 240 233 302 523 572 239 # of SKUs 5,500 6,000 5,500 5,500 7,000 8,000 8,000 # of stores 1,505 1,582 1,61

  14. Slide 14: Store of the Future Concept

    Store of the Future Concept We now have three Customized racks and counters More space for dine-in SOF v. 3.0 stores 1. Ayala the 30th 2. Aseana 3. Monarch Allobed area for e-commerce order and pick-up Power efficient open show case

  15. Slide 15: 53% of stores are franchised, dominated by FC1 package

    53% of stores are franchised, dominated by FC1 package FC1 FC2 FC3 Franchise Type Investor Industrial Investment Php 4.0 million Up to 1.0 million Php 300,000 Building Franchisee PSC Merchandise Franchisee Equipment PSC Cash Bond (PGD) - Franchisee Term 5 + 5 years 5 years 3 years 66% FC, 40% FC, Va

  16. Slide 16: H1 2018 Financial Highlights

    H1 2018 Financial Highlights 12,000 Balance Sheet and Cash Flow As at June 30, % change (vs June 30, (in Php Million except Book Value per Share) 2018 2017) 10,000 Total Assets 14,982.3 23.1% Current Assets 6,986.7 40.4% 8,000 Non-current Assets 7,995.6 11.2% Total Assets Current Liabili4es 7,210.4

  17. Slide 17: H1 2018 Selected Financial Ratios

    H1 2018 Selected Financial Ra/o EPS Selected Financial Ra/o 2018 2017 0.80 Liquidity and Leverage Ratio: 0.60 Current Ratio (x) 0.97 0.80 0.40 Net Debt to Equity (%) -9.6 4.7 0.20 Profitability Ratio: - Return on Equity (%) 22.8 24.4 2014 2015 2016 2017 2018 EPS 0.43 0.47 0.62 0.59 0.70 EBITDA Margi

  18. Slide 18: Continued store expansion and support infrastructure

    Con/nued store expansion and support infrastructure 2018 CAPEX of P3.5 billion 11 Opera4ng DCs New product Warehouse line and expansion Others equip. 6% 4% Pampanga RDC Stores replacement served: 206 La Union RDC 20% Pasig RDC Stores Stores served: served: 120 1,144 Naga FDC Stores served: 48 Openin

  19. Slide 19: End of Report

    - End of Report-

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