Slide 1: Earnings Conference Call
EARNINGS CONFERENCE CALL OCTOBER 25, 2022 | 4:00 PM
Slide 2: Third Quarter 2022 Results
THIRD QUARTER 2022 RESULTS
Slide 3: 3Q 2022 Results Highlights
3Q 2022 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary 3rd QUARTER 2022 ✓ Php 8.780B Net Sales 23.5% SSSG BANTAY, ILOCOS SUR ✓ 32.6% y-o-y Net Sales 10.8% Transaction Count growth HE, TAGAYTAY CITY 11.4% Ticket Size ✓ Php 1.104B NIAT Total Sales Mix ✓ 77.5% y-o-y NIAT ABUCAY, BATAA
Slide 4: Total Net Sales Breakdown – 3Q 2022
Total Net Sales Breakdown – 3Q 2022 Home 3Q2022 Projects, Home 3Q2021 Projects, Essentials, 92, 1.0% Essentials, 31, 0.5% Php Millions 175, 2.0% 124, 1.9% 32.6% Depots, Depots, 8,514, 97.0% 6,467, 97.6% Sales Growth per Store Format Product Category Performance 3Q2022 VS 3Q2021 3Q2022 VS 3Q2021 Bett
Slide 5: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend 79.7% 23.5% 15.0% 6.6% 8.6% 9.8% 7.9% -9.3% 0.4% 1.9% -8.0% 3Q2022 3Q2021 3Q2020 3Q2019 2Q2022 2Q2021 2Q2020 2Q2019 1Q2022 1Q2021 1Q2020 1Q2019 -47.6% 5
Slide 6: Third Quarter 2022
THIRD QUARTER 2022 (In Php MM) 3Q2022 % Sales 3Q2021 % Sales % Growth Net Sales 8,780 100.0 6,622 100.0 32.6 Cost of Sales -5,322 -60.6 -4,104 -62.0 29.7 GPM rate increased to 39.4% Gross Income 3,459 39.4 2,517 38.0 37.4 Operating Expenses -1,985 -22.6 -1,663 -25.1 19.3 Lease-related expense Intere
Slide 7: Nine Months 2022 Results
NINE MONTHS 2022 RESULTS
Slide 8: 9M 2022 Results Highlights
9M 2022 Results Highlights Financial Highlights Comparable Sales Summary Php 1.962B CAPEX ✓ Php 24.723B Net Sales 15.7% SSSG Opened 7 ✓ 23.3% y-o-y Net Sales 3.2% Transaction Count new stores growth 12.0% Ticket Size 1ST HALF 2022 ✓ Php 2.960B NIAT • Mayamot, Antipolo Total Sales Mix • Gapan, Nueva
Slide 9: Total Net Sales Breakdown – 9M 2022
Total Net Sales Breakdown – 9M 2022 Home 9M2021 Projects, Home 9M2022 Projects, Essentials, 122, 0.6% Php Millions Essentials, 210, 0.8% 391, 2.0% 461, 1.9% 23.3% Depots, Depots, 24,052, 97.3% 19,536, 97.4% Sales Growth per Store Format Product Category Performance 9M2022 VS 9M2021 9M2022 VS 9M2021
Slide 10: Comparable Sales Summary
Comparable Sales Summary Trend 15.7% 16.9% 12.1% 5.4% 5.2% 9M2022 9M2021 9M2020 9M2019 1Y2021 1Y2020 1Y2019 -13.6% -18.3% 10
Slide 11: Nine Months 2022
Nine Months 2022 (In Php MM) 9M2022 % Sales 9M2021 % Sales % Growth Net Sales 24,723 100.0 20,048 100.0 23.3 Cost of Sales -15,105 -61.1 -12,617 -62.9 19.7 GPM rate increased to 38.9% Gross Income 9,617 38.9 7,432 37.1 29.4 Operating Expenses -5,588 -22.6 -4,818 -24.0 16.0 Lease-related expense Inte
Slide 12: Balance Sheet
Balance Sheet Unaudited Sep 30, 2022 Audited Dec 31, 2021 Current Assets 16,478 17,189 Noncurrent Assets 18,119 15,149 Total Assets 34,596 32,337 Current Liabilities 7,340 8,880 Noncurrent Liabilities 7,679 5,979 Total Liabilities 15,019 14,859 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,
Slide 13: 9M 2022 CAPEX Investment
9M 2022 CAPEX Investment 9M2022 Capex Breakdown Actual Spent Expansion-related 1,782 (new stores, renovations, eqpt, warehouses, etc) Solar Panel Project 83 IT Infrastructure and Projects 97 Total CAPEX (in millions Php) 1,962 13
Slide 14: Improving Margins
Improving Margins 38.9 GPM 37.3 33.4 34.4 31.4 29.7 PFRS 16 EBITDAM PAS 17 19.3 15.8 EBITM 13.1 15.9 11.9 11.9 10.4 12.3 11.2 11.4 NPM 9.8 8.8 12.0 8.7 8.7 9.3 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 9M2022 Note: ROU depreciation and interest expense charged on lease liability were considered as
Slide 15: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 15
Slide 16: 2022 Planned New Branches
2022 Planned New Branches 2022 54 Beg. Balance 73 Mayamot, Antipolo 8 Mar, 2022 Gapan, Nueva Ecija 1st Half Apr, 2022 Lemery, Batangas May, 2022 10 HE, Tagaytay City 2nd Half Jul, 2022 Bantay, Ilocos Sur Jul, 2022 Abucay, Bataan Sep, 2022 9 Calapan, Oriental Mindoro Total Planned New Sep, 2022 Depot
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Slide 18: Store network expansion; in-house and exclusive brands
Store network expansion Continue to build and develop in- house products and carry exclusive brands Physical and online store layout, features and customer experience enhancements Further strengthen and increase brand awareness and visibility 18
Slide 19: Store Network Expansion
Store Network Expansion 100 Stores 2022 Planned New Branches by 2025 12 54 41 8 8 2 6 9 81 1 10 1 Stores Nationwide 0 at year end 9 9 Stores Nationwide 80 (as of September 30, 2022) Total Planned New Depot/Home Essentials Stores - 8 19
Slide 20: Continue to Increase Margins Thru In-house & Exclusive brands expansion
Continue to Increase Margins Thru In-house & Exclusive brands expansion • Improve supply chain management • Enhance marketing efforts ✓ Enhance the Company’s ability to provide its • Expand product lines/ customers with value for money products product offerings ✓ Rationalize product offerings 20
Slide 21: Physical and online store layout, features and customer experience enhancements
Physical and online store layout, features and customer experience enhancements • Constant innovations in store layout, features and customer experience that add value to our relationship with our customers and consistently differentiate us from competition 21
Slide 22: Further Strengthen and Increase Brand Awareness and Visibility
Further Strengthen and Increase Brand Awareness and Visibility ✓ Tap various media outlets especially social media to enhance customer’s awareness ✓ Localization of advertising and promotions ✓ Use brand ambassadors to represent the Company’s products and brands ✓ Actively participate in industry as
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Slide 24: Disclaimer
Disclaimer The above contains statements about future events and expectations that constitute “forward-looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “may”, “plans”, “foresees”, “ta