Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q1 2018 Earnings Presentation
12 slides from Shell Pilipinas's earnings presentation, May 15, 2018
Slide 1: First quarter 2018 results
First quarter 2018 results Pilipinas Shell Petroleum Corporation May 15, 2018 1
Slide 2: Disclaimer
Disclaimer References in this presentation to “our Company” or the “Corporation” and to “PSPC” refer to SHLPH. The words “we”, “us” and “our” are used to refer to SHLPH or to those who work for SHLPH. This presentation contains forward-looking statements concerning the financial condition, results o
Slide 3: Summary
Summary Pursue Fueling Q1 2018 profitable fuel progress for ▪ Strong results overcoming uncertainties on TRAIN growth opportunities the Filipino implementation ▪ Retained high premium fuel penetration ▪ Double-digit growth in non-fuels business Reliable & Capture non- Business enhancement efficient
Slide 4: Financial highlights
Financial highlights Marketing earnings up ~13%; overall earnings 4% increase in total volumes sold dampened by the ~40% decline in gross refining post TRAIN implementation margins PHPb BL 3 2 1 1 ▪ Solid marketing delivery 0 cushioning impact of 1Q15 1Q16 1Q17 1Q18 decline in refining Marketing Oth
Slide 5: EBITDA adjusted for COSA impacted by decline in global gross refining margins
6 EBITDA EBITDA adjusted for COSA vs Cash flow from operations adjusted for PHPb COSA impacted 4 by the decline in global gross refining 2 margins 0 1Q15 1Q16 1Q17 1Q18 EBITDA adjusted for COSA Cash flow from operations ▪ EBITDA adjusted for High sales volume High retail volume High premium fuel
Slide 6: Healthy balance sheet driven by robust cash generation and disciplined investments
Capital Investments + ROACE Healthy PHP b balance sheet 0.8 27% 30% 24% driven by 19% robust cash generation 0.4 15% and disciplined 0.0 0% investments 1Q16 1Q17 1Q18 Retail Others Commercial ROACE Cash flow from operations Capital employed + Gearing PHP b PHP b 5 60 50% 32% ▪ CFFO up 23% 22% 15% 30
Slide 7: Sustained retail volume and high premium fuel penetration despite higher pump prices
Sustained retail volume and Sustained retail volume high premium fuel penetration V-Power Penetration vs Average Pump Price despite higher PHP/l High premium fuel pump prices penetration 50 25% 26% 27% RETAIL FUELS 25 Higher earnings vs PY due to favorable 0 product mix 1Q16 1Q17 1Q18 Ave. Diesel Pu
Slide 8: Non-fuels retailing business continues to enjoy double-digit growth
Non-fuels retailing business continues to enjoy double- digit growth Variety of choices in Shell Select New lube bays Non-fuels contribution to retail margins Store count Guidance New Total ~11% ~12% Select 15-20 11 113 deli2go 15-20 7 48 1Q17 1Q18 Lube bay 30-50 9 271 Pilipinas Shell Petroleum Corp
Slide 9: Robust Commercial Business performance amidst higher excise taxes
Commercial fuels Robust Refreshed reseller strategy to optimize Commercial value in the wholesale sector Business performance 11 Customers amidst higher 12 Deals Won/ excise taxes Renewed Aviation Strong volume growth in Aviation Long relationship with partners Lubricants <1 years 13% Higher volumes
Slide 10: Leveraging on Reliable and Efficient Supply Chain
Leveraging on Reliable and Efficient Supply Chain Tabangao Refinery North Mindanao Import Facility ▪ 6M man-hours free of Loss Time ▪ 17M man-hours free of Loss Time Incidents Incidents ▪ Bitumen plant mechanically complete ▪ 99.7% on-time and in-full pick-up ▪ Lower refining margin environment and
Slide 11: Update on key strategies
Strategy Update on key strategies Selectively pursue Maintain a reliable and Leading corporate Capture non-fuel related profitable fuel efficient manufacturing governance and world growth opportunities opportunities and supply chain class talent development PSPC priorities Delivery ▪ Maximizing cash
Slide 12: Slide 12
Pilipinas Shell Petroleum — Q1 2018 Earnings Presentation on 6ix