Philippine Seven Corporation · PSE:SEVN
Philippine Seven — FY2015 Earnings Presentation
18 slides from Philippine Seven's earnings presentation, 2016
Slide 1: Investors Briefing Q4 2015
Philippine Seven Corpora/on (SEVN:PM) INVESTORS BRIEFING Q4 2015 7th Floor The Columbia Tower, Or/gas Avenue, Mandaluyong City, Philippines Email: investor-rela0ons@7-eleven.com.ph
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. -2-
Slide 3: A Global Brand
A Global Brand The World’s Largest Retailer: ~ 55,000 Stores Norway SERVING OVER 44M Sweden Canada Denmark GUESTS United States China Japan South Korea DAILY Mexico Hong Kong Taiwan Macau 2015 Thailand 2X $100 Billion Malaysia Philippines WORLD’S POPULATION in Sales Singapore Indonesia EVERY Estimat
Slide 4: Local Coverage
Local Coverage By Location Store Count % Metro Manila 689 43% Luzon-ex MM 702 44% Visayas 178 11% Mindanao 33 2% Total 1,602 100% As of Dec. 31, 2015 7-Eleven has at least 65% market share in the Philippines. -4-
Slide 5: PSC History at a Glance
PSC History at a Glance 1982 PSC was established 2005 Moved to a full-scale distribution center 1984 Opened first store 2007 PhilSeven Foundation was established 1996 Opened 100th Store 2010 Opened 500th Store PSC launches its IPO; Opened first Opened 711th Store and entered Visayas 1998 2012 Franch
Slide 6: Shareholding Structure
Shareholding Structure Agus Development Corp. Present 3% Shareholding Others-Foreign Structure 14% Others-Filipino 4% Progressive Development Corp. 2% President Chain Store (Labuan) Holdings, Asian Holdings Corp. Ltd. 7% 52% As of December 31, 2015 % Paterno Family 8% President Chain Store (Labuan)
Slide 7: SEVN Share Information
SEVN Share Informa/on Price (Dec. 29, 2015) Php 100.00 Hi/Low (12 months) Php 80.00 – Php 140.00 Free Float 32% Outstanding Shares 458.44 million Market Capitalization USD 974.2 million Dividend 2008 2009 2010 2011 2012 2013 2014 2015 Payment Stock .10 .10 .05 .15 .15 .15 - - Cash - - .05 .10 .10 .1
Slide 8: Store Count
Store Count 3,000 Store type 2,500 2,000 FC2 1,500 16% Corporate 41% 1,000 FC1 500 43% - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Store Count 156 161 168 195 257 265 287 311 368 447 551 689 829 1,009 1,282 1,602 2,000 2,500 • Number of stores grew by
Slide 9: Proprietary Products
Proprietary Products By Section Services 1% Non-food 7-Eleven 18% fresh food and cup drinks 25% Food 56% 1. 7-Eleven fresh food and drinks includes, rice meal, sandwiches, Slurpee® and coffee. 2. Food section are FMCG and alcoholic beverages 3. Non-food are cigarettes and health & beauty items 4. Se
Slide 10: Promotions and Events
Promotions and Events =e las 4 ' = Ps ‘ <p eve SY All Day! Now available at 1 point = 15 mins of wifi»
Slide 11: Franchise Packages
Franchise Packages FC1 FC2 Franchise Type Investor Industrial USD USD Investment 80,000-100,000 20,000-25,000 Building Franchisee PSC Merchandise Franchisee Equipment PSC Cash Bond (PGD) - Franchisee Term 5+5 years 66% FC, 40% FC, GP Split 34% PSC 60% PSC Rent Franchisee PSC Electricity 50 - 50 spli
Slide 12: FY 2015 Financial Highlights
FY 2015 Financial Highlights 2015 2014 % change 25,779.3 Sales 20,566.5 25.3 1,008.0 Net income 873.3 15.4 2,586.1 EBITDA 2,134.2 21.2 (Php million) Net income 1,200.0 1,000.0 3.1% R+2 800.0 5Y CAG 600.0 400.0 200.0 - (200.0) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Net income (2.
Slide 13: FY 2015 Financial Highlights
FY 2015 Financial Highlights 10,000 Balance Sheet and Cash Flow As of % 9,000 (in Php Million except Book Value per Share) Dec. 31, change 2015 8,000 9,515.9 21% Total Assets 7,000 Current Assets 3,648.8 8% Total Assets Non-current Assets 5,867.2 30% 6,000 Current Liabilities 4,976.6 18% 5,000 Total
Slide 14: FY 2015 Financial Highlights
FY 2015 Financial Highlights EPS Selected Financial Ratio 2015 2014 2.50 Liquidity and Leverage Ratio: 2.00 Current Ratio (x) 0.73 0.80 1.50 Net Debt to Equity (%) 8.6% -14.9% 1.00 Profitability Ratio: 0.50 - Return on Equity (%) 27.2 30.0 2010 2011 2012 2013 2014 2015 Return on Capital Employed (%)
Slide 15: Comparative Metrics
Compara/ve Metrics 2015 PSC PCSC CPALL 7-Eleven (Thailand) (Philippines) (Taiwan) Key Performance Ra.o: Store count 1,602 5,028 8,832 Net Margin % 3.9* 6.9 4.6 EBITDA % 10.0* 8.9 10.2 EBIT % 5.8* 4.8 8.4 ROE 27.2 36.1 40.6 Days inventory outstanding 29.7 21.4 22.6 Days payable outstanding 40.8 50.1
Slide 16: 2015 CAPEX
2015 CAPEX 2015 Budget of Php3.0 billion 3 Year Trend 3,000 Warehouse Equipment Others 2,500 expansion 3% replacement 7% and new 2,000 product line 11% 1,500 1,000 Opening of new stores 71% 500 - 2013 2014 2015 Store Opening of new stores 1,013 1,394 2,121 remodelling Equipment replacement 8% 35 208
Slide 17: Future Growth affected by trend of traditional stores
Future Growth affected by trend of tradi/onal stores Supermarket Grocery/ CVS Sari-Sari Store Based on General Performance Update YTD SEPTEMBER 2015 by Nielsen - 17 -
Slide 18: End of Presentation
* End of Presentation *