Slide 1: Cosco Capital, Inc. 1Q 2019 Financial Results
Cosco Capital, Inc. 1Q 2019 Financial Results Investor Presentation 1
Slide 2: Disclaimer
Disclaimer These presentations and/or other documents have been written and presented by COSCO CAPITAL, INC. (COSCO). COSCO is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. Third parties, other than COSCO, do not have any responsib
Slide 3: Company Overview
Company Overview Lucio Co Family Public 73% 27% 51% 100% 100% 100% Commercial Real Grocery Retailing Liquor Distribution Specialty Retailing Estate • Ellimac Prime Holdings, Inc., • Fertuna Holdings Corp., • Patagonia Holdings Corp., • Nation Realty, Inc. • NE Pacific Shopping Centers Corporation •
Slide 4: Revenue & Net Income Contribution 1Q 2019
Revenue & Net Income Contribution 1Q 2019 Revenues PATMI Specialty Real Retail 2% Estate 23% Liquor Distribution Grocery 4% Retailing Grocery 58% Liquor Real Retailing, Distribution Estate 1% 93% 17% Specialty Retail 2% PHP 37.5 billion *PHP 1.32 billion *Net Income excludes one-time gain on sale of
Slide 5: 1Q 2019 Consolidated Financial Highlights
1Q 2019 Consolidated Financial Highlights (In PHP millions) +1.8% +8.2% Revenues Gross Profit 40,000 168,388 38.0% 145,750 35,000 28,260 129,186 30,000 33.0% 25,000 21,912 24,322 28.0% 20,000 17.4% 18.5% 23.0% 36,809 37,471 15,000 17.0% 10,000 16.7% 16.8% 6,416 6,940 18.0% 5,000 13.0% 8.0% 2016 2017
Slide 6: Grocery Retailing: 1Q 2019 Financial Highlights
Grocery Retailing: 1Q 2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +12.8% +11.2% 30,000 24.0% 140,918 23,840 112,589 124,491 22.0% 19,376 20,655 25,000 20.0% 20,000 18.0% 15,000 17.2% 16.6% 16.9% 17.7% 17.4% 16.0% 14.0% 30,868 34,832 10,000 5,456 6,065 12.0% 5,000 10.
Slide 7: Grocery Retailing: Operational Highlights
Grocery Retailing: Operational Highlights • Puregold opened 8 new stores in 1Q 2019 • S&R opened 1 new S&R warehouse • As of FY 2018, the Grocery Retailing segment is operating a total of 417 stores • SSSG PGOLD only is at 6.9% while S&R is at 9.4% • Merger and conversion of NE Bodega and Budgetlane
Slide 8: Liquor Distribution: Products
Liquor Distribution: Products Brandy Brandy Tequila Alfonso Fundador Jose Cuervo Alfonso Light Fundador Light Whiskey Excelente Bushmills Whiskey Chivas Regal Tequila Jim Beam Patron Glenfiddich Cognac Martel Whiskey Vodka Johnnie Walker Absolut Jack Daniels Liqueurs Jagermeister Various Wines Speci
Slide 9: Liquor Distribution: FY 2018 Financial Highlights
Liquor Distribution: FY 2018 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +24% 2,500 +28.8% 48.0 8,747 2,000 1,874 43.0 6,663 1,491 38.0 5,904 1,500 1,344 33.0 28.0 1,000 381 491 23.0 1,712 2,123 22.8% 22.4% 21.4% 22.3% 23.1% 18.0 500 13.0 8.0% 2016 2017 2018 1Q 18 1Q 19 2
Slide 10: Liquor Distribution: Total Volume Sales
Liquor Distribution: Total Volume Sales • 36% growth in total volume of cases sold in 1Q 2019 • Growth driven by the continued strong sales of Alfonso Light and Alfonso Brandy . CATEGORY 1Q 18 Mix % 1Q 19 Mix % Inc/Dec Growth Brandy 348,258 65% 490,627 68% 142,369 41% Other Spirits 83,373 16% 125,27
Slide 11: Office Warehouse: 1Q 2019 Financial Highlights
Office Warehouse: 1Q 2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +24.5% +28.3% 800 80.0 2,089 700 567 70.0 1,825 600 482 60.0 1,535 500 417 50.0 400 27.1% 123 157 40.0 300 27.2% 26.4% 24.6% 25.3% 30.0 499 621 200 20.0 100 10.0 0.0% 2016 2017 2018 1Q 18 1Q 19 2016 201
Slide 12: Office Warehouse: Operational Highlights
Office Warehouse: Operational Highlights OFFICE WAREHOUSE, INC. • Strong growth driven by store expansion and enhanced product offerings • Strong SSSG of 18% in 1Q 2019 2016 2017 2018 1Q 19 No. Stores 71 82 88 88 Net selling area 14,014 sqm 15,945 sqm 16,738 sqm 16,738 sqm 12
Slide 13: Real Estate: Q12019 Financial Highlights
Real Estate: Q12019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +5.4% 1,600 +7.5% 8 1,404 1,350 1,400 1,228 7 2,326 2,197 2,429 1,200 7 1,000 800 364 392 6 600 60.4% 59.9% 61.1% 6 608 641 400 55.9% 55.6% 5 200 5 2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19 GP GP
Slide 14: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights • Total of 53 commercial properties with 98% average occupancy rate • Pure Petroleum operating at 100% capacity in 2018 and 2017 (9 storage tanks with 88.5M liters capacity) Category Q12019 FY2018 GLA/Lot Area in sq.m. Land under lease 10 10 158,123 Commerci
Slide 15: CAPEX Guidance for FY 2019
CAPEX Guidance for FY 2019 • CAPEX Budget of Php 5.8 billion in 2019 - Php 5.2 billion for Puregold Group - Php 500 million for Real Estate Group - Php 75 million for Office Warehouse • To be funded by internally generated cash and short term untapped bank credit lines if necessary 15
Slide 16: Thank you.
Thank you. www.coscocapital.com