Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q2 2020 Earnings Presentation
19 slides from Shell Pilipinas's earnings presentation, Aug 17, 2020
Slide 1: Q2 2020 Results
Q2 2020 Results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation 17 Aug 2020 Pilipinas Shell Petroleum Coproration August 2020 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 ▪ Full impact of COVID-19 lockdowns felt in Q2, impact mitigated through resilience and recovery strategies Fueling Capturing ▪ Customers continued to be served capitalizing on integrated supply chain flexibility progress for fuels and non fuels growth the Filipino opportunities
Slide 4: Global and domestic headwinds felt during the first half
1H 2020 LOOKBACK Global and domestic headwinds felt during the first half Crude price slightly recovers in 2Q20 Economy shrunk by 16.5% in Q2, plunging into recession for the $/bbl PH Economic 80 first time in ~30 years, following one of the longest pandemic slowdown lockdowns globally. 60 40 Brent
Slide 5: Philippine Quarantine Timeline and Impact on PSPC Volume Delivery
1H 2020 LOOKBACK Philippine Quarantine Timeline and Impact on PSPC Volume Delivery Quarantine restrictions Jan Feb Mar Apr May Jun Jul Not Allowed Allowed with safety protocols MAJOR MANILA Pre-Enhanced Community Quarantine Enhanced Community Mod. General Community Quarantine LUZON METRO *HUCs Allow
Slide 6: Adapting to the 'new normal'
NEW NORMAL OPERATIONS Adapting to the ‘new normal’ Safe, Reliable Operations Caring for the Community TOGETHER WITH YOU IN EACH OF LIFE’S JOURNEYS ◼ Virtual Business Partnering ◼ Increased Digital Presence and Engagements ◼ Process Improvements through Digital Solutions Accelerating Digitalisation ◼
Slide 7: Financial highlights
FINANCIALS Financial highlights 1H20 books net loss of PHP6.7b PHPb 6 (6.7) NIAT (PHPb) 1.6 3 0.6 3.8 4.1 2.6 Total volume (Bn litres) 3.6 1.9 (3.3) Cash flow from operations (PHPb) 0 (0.3) 1H17 1H18 1H19 1H20 -3 -6 (15) ROACE (%) 40 (8.6) -9 Gearing (%) Marketing Refinery and supply Inventory Loss
Slide 8: Cash Conservation Update
RECOVERY UPDATE Target CAPEX savings delivery Cash Delivered 500M CAPEX Other Cash Conservation 2% Underspending vs Php 1bn Target Initiatives Update 500 31% ➢ 30% reduction of overdue PHP1b receivables ➢ 30% decline in interest 67% expense for short term borrowings1 ➢ No employee 250 Retail Supply
Slide 9: Core EBITDA at PHP2.1b despite the pandemic
FINANCIALS EBITDA Adjusted for COSA Core EBITDA PHPb at PHP2.1b 6.8 5.8 7 1.3 4.3 2.1 despite the 7.6 pandemic 2 5.5 6.0 5.1 (1.7) (1.8) (3.0) -3 1H17 1H18 1H19 1H20 Marketing Refinery and supply Note: Segmented figures based on internal estimates. Cost of Sales Adjustment (COSA) approximates invent
Slide 10: Volume improvement from easing of lockdown and cash strategies temper impact of pandemic
FINANCIALS Volume improvement from easing of lockdown and cash strategies temper impact of pandemic Capital Investments + Rolling ROACE Cash flow from operations Net debt + Gearing PHPb PHPb PHPb 40% 30% 30% 24 40% 2 10 25% 14% 23% 5 0.8 7.1 1.1 12 0.7 0% 4.0 1 0 (3.3) -10% 0.9 -5 11.7 12.4 22.1 0.7
Slide 11: Retail: Bounce back strategies temper impact of lockdowns
RETAIL Bounce back Quick to respond to the new normal strategies Most preferred brand in the temper impact country, enhanced by successful campaigns of lockdowns Volume down 30% due to COVID-19 mobility restrictions Marketing Bounce Back Programs. Get Gas Get Bigas and Rewards For Your Return promot
Slide 12: Retail: Adaptive offerings for new normal
RETAIL Sustain & Expand New Adaptive 13% Non-fuels contribution to retail gross margins Offers. offerings for Frozen Food options from fast food selections (KFC, new normal Increase in NFR Income Tokyo Tokyo, Mister Donut, consumer +8% since 1H16 etc.) now available in key Shell stations Down 30% vs
Slide 13: Commercial: Full lockdown felt by most sectors
Commercial fuels Specialities (Bitumen + Sulphur) COMMERCIAL ◼ Most sectors remain resilient, lockdown impact ◼ No construction during April-May lockdown largely felt during ECQ Full lockdown ◼ Road overlay in Luzon (InstaPave) and BituFresh ◼ Focus is on Margin Management, Controlling Air premium s
Slide 14: Supply chain remains flexible, delivered uninterrupted supply
SUPPLY CHAIN Supply chain remains flexible, delivered uninterrupted supply during refinery shutdown TABANGAO REFINERY SUPPLY AND DISTRIBUTION ◼ Outstanding HSSE compliance ◼ Strong HSSE Performance ◼ Cash preservation measures on target ◼ Joint import operations of NMIF and ◼ Served as an import ter
Slide 15: Tabangao Refinery to be transformed into a world-class import terminal
REFINERY TRANSFORMATION Tabangao Refinery to be transformed into a world-class import terminal CASE FOR CHANGE BENEFITS Objective: Maximize shareholder value but ensure presence of an efficient Steady state will deliver: and reliable supply chain model that will support marketing growth ▪ Capital ex
Slide 16: Pilipinas Shell Wins
AWARD-WINNING AWARD-WINNING Pilipinas EVENTS TEAM Shell Wins Bronze Stevie Winner, Award for Innovation in Winner, Legal Team of the Year Consumer Events The Shell Companies in the Philippines (SciP) legal team Shell Rimula: Tsuperstar Grand Finals was recognized as the In-House Legal Team of the Ye
Slide 17: Refocused strategies to thrive in the new normal
2020 ACTION PLAN FY2020 Refocused TARGETS RETAIL and NON-FUELS RETAIL strategies to thrive in the Further grow the business with Integrated Retail Offers while maximizing assets GOAL ZERO COMMITMENT Deliver customer-centric sites with fuels, NFR (convenience retail, clip-Ins, lubes, co-Locators), ne
Slide 18: Q&A
Q&A Discover more at www.pilipinas.shell.com.ph pilipinas.shell.com.ph/investor s.html facebook.com/Shell Pilipinas Shell Petroleum Coproration August 2020 18
Slide 19: Slide 19
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