Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q2 2019 Earnings Presentation
12 slides from Shell Pilipinas's earnings presentation, Aug 15, 2019
Slide 1: Q2 2019 Results
Q2 2019 Results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation August 15, 2019 1
Slide 2: Definitions and cautionary note
Definitions and cautionary note 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
Slide 3: Summary: Key messages
Summary Key messages Pursue Fueling ▪ Pilipinas Shell celebrates its105th year in the country founded on longer-term investment horizon, consistent profitable fuel progress for strategy, commitment to business principles/core values, growth opportunities the Filipino and strong corporate governance
Slide 4: Financial highlights
Financial highlights Increase in marketing volumes and margins continue to temper low refining margins PHPb 6 3.7 NIAT (PHPb) 4 2.9 Total volume (Bn litres) 2 4.0 Cash flow from operations (PHPb) 0 14 ROACE (%) ▪ Grew volumes and 1H16 1H17 1H18 1H19 premium fuel penetration despite -2 25 Gearing (%)
Slide 5: Robust earnings driven by marketing volume growth and supply chain cost optimizations
1H19 EBITDA Adjusted for COSA stands at PHP5.8b Robust earnings PHPb driven by 7 marketing volume growth and supply chain cost 2 optimizations 1H16 1H17 1H18 1H19 -3 Marketing Refinery and supply Retail volume growth High premium fuel Strong marketing delivery Strong marketing volume Low regional re
Slide 6: Cash flows remain healthy while gearing remains low
Capital Investments + ROACE Cash flows PHPb 35% 2 remain healthy 30% while gearing 22% remains low at 1 14% 25% post dividend payout 0 0% 1H17 1H18 1H19 Retail Others Commercial ROACE Cash flow from operations Average capital employed + Gearing PHPb PHPb 60 40% 10 23% 25% 22% 5 30 Cashflows remain s
Slide 7: Higher volume delivery and premium fuel penetration contribute to higher earnings
Higher volume Most preferred fuels brand in the delivery and country, enhanced by successful premium fuel campaigns in 1H 2019 WE’RE PASSIONATE penetration ABOUT FUELS contribute Volume up >2% in Q2 AND SO MUCH MORE 2019 despite higher higher earnings excise taxes RETAIL FUELS High premium fuel pene
Slide 8: Non-fuels retailing business continues to enjoy double-digit growth
Non-fuels retailing 13% Non-fuels contribution to retail gross margins business Increase in NFR Income vs continues to +50% 1H 2016 enjoy double- digit growth On track to deliver new store guidance by Freshly baked pastries and warm food offered in year-end deli2go stores Guidance 1H 2019 Total Sele
Slide 9: Commercial volumes grew across all segments in Q2
Commercial Lubricants volumes grew Commercial fuels ◼ Strong volume growth, following successful across all marketing campaign ◼ Captured surge in demand from the power sector as a result of warmer weather and segments in ◼ Remains the most preferred brand in the maintenance shutdowns of several coa
Slide 10: Refinery implements cost and operational efficiency projects
Refinery implements cost and operational efficiency projects TABANGAO REFINERY SUPPLY AND DISTRIBUTION ▪ Strong HSSE performance ▪ Strong HSSE performance ▪ Significant decline in regional ▪ North Mindanao Facility continues refining margins but Tabangao to support demand requirements in continues t
Slide 11: 2H 2019: Delivering competitive returns through strategic investments
GROWING THE MARKETING BUSINESSES 2H 2019: RETAIL NETWORK EXPANSION COMMERCIAL BUSINESS GROWTH Delivering Lubricants: Maximize and benefit from competitive 50-70 RETAIL STATIONS ▪ existing and complementary endorsements returns through ▪ ▪ Commercial fuels: Grow non-power sectors Aviation: Working on
Slide 12: Slide 12
Pilipinas Shell Petroleum — Q2 2019 Earnings Presentation on 6ix