Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q2 2022 Earnings Presentation
21 slides from Philippine Seven's earnings presentation, August 2022
Slide 1: Q2 2022 Investor Briefing
PHILIPPINE SEVEN CORPORATION (SEVN) Q2 2022 Investor Briefing [email protected]
Slide 2: A Global Brand
A Global Brand Norway: 149 Sweden: 81 South Korea: 14,055 Canada: 611 United States: 13,248 China: 2,939 Denmark: 176 Japan: 21,337 Taiwan: 6,565 Mexico: 1,843 Vietnam: 66 81,000+ India: 4 Philippines: 3,241 STORES Thailand: 13,433 Cambodia: 19 WORLDWIDE Singapore: 459 Malaysia: 2,426 Australia: 725
Slide 3: Global Recognition
Global Recognition Asian Convenience Industry Leader of the Year Award 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 y = - Cagasan, Division Head of Strategic
Slide 4: Shareholding Structure
Shareholding Structure Present Agus Development Corp. Ownership 3% Structure Others-Foreign 13% Others-Filipino 3% As of June 30, 2022 % ownership Progressive Development Corp. President Chain Store (Labuan) Holdings, Ltd 54.88% 2% Asian Holdings Corp. Others-Foreign 12.53% 6% President Chain Arisai
Slide 5: SEVN Share Information
SEVN Share Information Price (Aug. 16, 2022) Php 72.00 Hi/Low (YTD) Php 48.00 – Php 72.00 Free Float 30.45% Outstanding Shares 756.42 million Market Capitalization USD 975.5 million Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Payment
Slide 6: Macro Environment
Macro Environment +14% Inflation Covid National Elections
Slide 7: COVID Effect on Operations
COVID Effect on Operations • Dine-in allowed for fully vaccinated; al fresco allowed +14% regardless of vaccination status • Despite the increase of confirmed cases in 2021, sales were higher than 2020. • Customer count increased due to companies shifting from WFH to hybrid work setups. • 7Bank ATMs
Slide 8: Store Initiative
Store Initiative Partnered with DOH when +14% barangay case data became available Other partners were OCTA and medical organizations Aim was to give a ‘weather report’ to communities updated daily.
Slide 9: Retail Landscape
Retail Landscape Market Share Per Channel Sales Value % Change Per Channel (Sales) +14%
Slide 10: Store Network as of June 30, 2022
Store Network as of June 30, 2022 7-Eleven By Location Store Count % Jan. 1 Opening Closure June 30 Metro Manila 1,014 44 1 1,057 33% Luzon-ex MM 1,324 78 - 1,402 43% Visayas 436 29 1 464 14% Mindanao 299 22 3 318 10% Total 3,073 173 5 3,241 100% 2019 2020 2021 2022 Target + 300 new 7-Eleven 2,864 2
Slide 11: Sales and net income exceeded pre-pandemic level in 2Q
Sales and net income exceeded pre-pandemic level in 2Q +15.0 +85.0 % vs % vs Q2 SYSTEMWIDE SALES 2019 Q2 NET INCOME 2019 18,000.0 800.0 16,000.0 600.0 14,000.0 400.0 12,000.0 In million Pesos In million Pesos 10,000.0 200.0 8,000.0 - 6,000.0 (2 00.0) 4,000.0 (4 00.0) 2,000.0 - (6 00.0) 2018 2019 202
Slide 12: Earnings surpassed 2019 driven by higher sales
Earnings surpassed 2019 driven by higher sales, amidst changes in accounting and tax rules +83.5 +12.0 % vs H1 SYSTEMWIDE SALES % vs 2019 H1 NET INCOME 2019 35,000.0 1,000.0 30,000.0 800.0 600.0 25,000.0 In million Pesos In million Pesos 400.0 20,000.0 200.0 15,000.0 - 10,000.0 (2 00.0) 5,000.0 (4 0
Slide 13: Sales rose 49.8% in Q2 vs 2021 driven by 39.2% growth in SSSG
Sales rose 49.8% in Q2 vs 2021 driven by 39.2% growth in SSSG Improved mobility increased customer count, but average transaction amount went down against 2021 level Systemwide Sales (in billion PhP) Same Store Sales Growth 56.3 46.4 47.2 + 39.2% 49. +14% 8% 16.1% 10.3% 13.6 16.6 11.1 11.1 2019 2020
Slide 14: Balance Sheet as of June
Year Balance Sheet as of June 30 BREE 5 Balance Sheet Items 2019 2020 2021 2022 Balance Sheet Items 2019 2020 2021 2022 = > Cash and cash equivalents 4,002,312,212 5,411,725,897 P6,075,680,060 P7,274,59 Debt Ratio (Total Liabilities / 072 073 0.77 0.73 Accounts receivable P1,398,782,465 9 1,899,258,
Slide 15: Cash Flow as of June 30
Cash Flow as of June 30, Year 2018 §=.2019 «20202021 =. 2022 Cash Flow Items 2019 2020 2021 2022 a Cash receipts from earni.... 695,077,528 -P558,911,153 518,582,244 P'1, 187,593,178 Depreciation and... 1,850,075,452 P1,962,252,386 2,052,920,712 P1,894,595,177 Interest expense, .. 456,332,487 504,61
Slide 16: 7B Cash Recycler ATM Rollout
7B CASH RECYCLER ATM ROLLOUT (1,854 ATMs as of July 31, 2022) • Innovative solution to 7E cash management requirements • Reduces cash handling risks and allows immediate usage of funds • Enhances our value proposition and generates incremental revenue • To end 2022 with 2,800 activated ATMs
Slide 17: New Store Concepts
New Store Concepts • 7-Eleven store co-branding alliance with Heineken and Coca-Cola • Convan store and modular store made of pre-fab materials • First 7-Eleven store with drive-thru
Slide 18: 7-Election Campaign
Candidates 7-Election | Comelec | Gap(+/-) ne 43% 59% +16% jarcos Een 24% 28% +4% Robredo Isko Moreno 8% 4% 4% Manny Pacquiao 6% 7% +1% Ping Lacson 5% 2% 3% Undecided 14% (4 hy 24% ven Qa = 7-Election Campaign
Slide 19: Promotions and New Products
BDAY "5 O% Promotions and New Products
Slide 20: Digital
) —troi ®@ CLIQQ Rewards 4,990.32 ®@ Available 24/7 @ Hundreds of billers Additional rewards Digital =] Open CLiQg Wallet Cashless Rewards Bills Transactions Collection Payment in Stores and Redemption PayBile ‘Buy Load ic ® a lQQ Cliaagrocery.com
Slide 21: Slide 21