Slide 1: Cosco Capital, Inc. FY 2019 Financial Results
Cosco Capital, Inc. FY 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 76% 24% 49% 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 FY 2019
Revenue & Net Income Contribution FY 2019 Revenues CORE PATMI Specialty Real Estate Retail 2% 20% Liquor Distribution Grocery 4% Retailing Liquor Real Grocery 57% Distribution Estate 1% Retailing, 21% 93% Specialty Retail 2% PHP 166.07 billion *PHP 5.87 billion *Net Income excludes one-time gain on
Slide 5: FY 2019 Consolidated Financials
FY 2019 CONSOLIDATED FINANCIALS INCREASE (In Thousands) FY2019 % FY2018 %0 (DECREASE) %2 REVENUES 166,066,712 100.00% 168,210,357 100.00% (2,143,644) -1.27% COST OF SALES/SERVICES 136,177,666 82.00% 139,809,619 83.12% (3,631,953) -2.60% GROSS PROFIT 29,889,046 18.00% 28,400,738 16.88% 1,488,308 5.24
Slide 6: Grocery Retailing: FY2019 Financial Highlights
Grocery Retailing: FY2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +9.5% +8.5% 154,492 25,951 141,140 23,929 124,703 21,688 17.4% 17.0% 16.8% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 GP GP Margin EBITDA and Margin Net Profit and Margin +10.8% Core NIAT +16.0% +9.2% 15
Slide 7: Grocery Retailing: Operational Highlights
Grocery Retailing: Operational Highlights • Puregold opened 28 new stores in 2019; closed 2 PGOLD stores • S&R opened 2 new S&R warehouse; • As of FY 2019, the Grocery Retailing segment is operating a total of 436 stores • SSSG PGOLD only is at 4.9% while S&R is at 8.3% PUREGOLD S&R S&R QSR Metro Ma
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: FY2019 Financial Highlights
Liquor Distribution: FY2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +22.5% +31.2% 10,717 2,458 8,747 1,874 6,663 1,491 22.4% 22.9% 21.4% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 GP GP Margin EBITDA and Margin Net Profit and Margin +65.0% +64.2% 1,678 1,212 898 1,012
Slide 10: Liquor Distribution: Total Volume Sales
Liquor Distribution: Total Volume Sales • 43% growth in total volume of cases sold in FY 2019 • Growth driven by the continued strong sales of Alfonso Light and Alfonso Brandy . CATEGORY 2017 Mix % 2018 Mix % 2019 Mix % Growth Brandy 1,380,717 64% 1,928,918 67% 2,997,940 73% 55% Other Spirits 325,18
Slide 11: Real Estate: FY2019 Financial Highlights
Real Estate: FY2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +5.7% +5.9% 2,147 1,486 2,031 1,403 69.2% 1,812 1,250 69.1% 69.0% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 GP GP Margin EBITDA and Margin Net Profit and Margin +3.2% +12.8% 1,576 1,225 1,527 1,086 922 77.5%
Slide 12: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights • Total of 55 commercial properties with 97% average occupancy rate • Pure Petroleum operating at 100% capacity in FY2019 and FY2018 (9 storage tanks with 88.5M liters capacity) FY 2019 FY2018 Category FY 2019 FY2018 GLA/sqm GLA/sqm Land under lease 11 10 16
Slide 13: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights COMMERCIAL REAL ESTATE Rental Yields FY2019 FY2018 Computation Rental income over book Gross Rental Yield 11.0% 10.60% value of investment property EBIT over book value of Net Rental Yield 8.0% 7.70% investment property Appraisal of Properties Appraisal Appr
Slide 14: Office Warehouse: FY2019 Financial Highlights
Office Warehouse: FY2019 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +17.3% +13.3% 2,451 642 2,089 567 1,825 482 26.4% 27.1% 26.2% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 GP GP Margin EBITDA and Margin Net Profit and Margin +26.2% +48.0% 251 97 199 154 66 56 10.3% 4.0%
Slide 15: Office Warehouse: Operational Highlights
Office Warehouse: Operational Highlights OFFICE WAREHOUSE, INC. • Strong growth driven by store expansion and enhanced product offerings • Opened 4 new store outlets in 2019 ; closed down 3 stores • Strong SSSG of 12.2% in 2019 vs 9.1% in 2018 2016 2017 2018 2019 No. Stores 71 82 88 89 Net selling a
Slide 16: CAPEX Guidance for 2020
CAPEX Guidance for 2020 • CAPEX Budget of Php 3.6 billion in 2020 - Php 3.4 billion for Puregold Group - Php 150 million for Real Estate Group - Php 50 million for Office Warehouse • To be funded by internally generated cash and short term untapped bank credit lines if necessary 16
Slide 17: Thank you.
Thank you. www.coscocapital.com