Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q2 2018 Earnings Presentation
12 slides from Shell Pilipinas's earnings presentation, Aug 13, 2018
Slide 1: Second quarter 2018 results
Second quarter 2018 results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation August 13, 2018 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
Summary Pursue Fueling Key messages profitable fuel progress for ▪ Positioned to deliver high dividend yield growth ▪ Strong free cash flow outlook opportunities the Filipino ▪ Unchanged cash priorities ▪ Focus on capital discipline and high returns Reliable & Capture non- efficient 1H 2018 fuels gr
Slide 4: Financial performance highlights
Financial highlights 1H 2018 net income rebounds from 1Q18 performance 5.4 NIAT (Pbn); EPS +30% vs 1H17 Pbn 6 2.7 Total volume (Bn litres) 4 7.1 Cash flow from operations (Pbn) 2 5.7 Free cash flow (Pbn) 0 30 ROACE (%) 1H15 1H16 1H17 1H18 Delivered 30% higher NIAT Marketing Others Note: Marketing an
Slide 5: Marketing growth softens impact of softer regional margins and planned refinery pitstop
Marketing EBITDA adjusted for COSA growth softens Pbn impact of 7 softer regional margins and planned 4 refinery pitstop 1 1H15 1H16 1H17 1H18 -2 Marketing Refinery and supply Sales volume growth Retail volume growth Premium fuel penetration Strong marketing delivery Marketing contribution u
Slide 6: PSPC continues to deliver industry-leading ROACE and robust cash flow
Capital Investments + ROACE PSPC continues Pbn to deliver 2 30% 35% industry - leading ROACE 19% 22% and robust 1 cash flow 0 0% 1H16 1H17 1H18 Retail Others Commercial ROACE Cash flow from operations Average capital employed + Gearing Pbn Pbn 8 60 40% 26% 23% 22% ▪ Delivered higher return 4 30 on c
Slide 7: Retained high V-Power penetration
Retained high V-Power Relatively stable retail volumes penetration despite ~20% V-Power Penetration vs Average Pump Price increase in Sustained high premium PHP/l pump price fuel penetration 60 25% 27% 27% 30% RETAIL FUELS 30 Favorable product mix 0 0% 1H16 1H17 1H18 Ave. Diesel Pump Price Ave. Gaso
Slide 8: Non-fuels retailing business
Non-fuels On track to delivery new store growth High non-fuels growth year-on-year retailing business Pbn 1H18 Store count Total continues to New sites enjoy double- Select 19 121 digit growth deli2go 10 51 Lube bay 26 288 1H15 1H16 1H17 1H18 Introduction of new products in deli2go Highest brand pre
Slide 9: Delivered higher premium product penetration in key business segments
Delivered Commercial fuels higher premium Continued increase in premium products penetration outside the power sector product penetration in Aviation key business Strong volume growth in Aviation from new deals and higher liftings segments Lubricants Obtained new customers and higher liftings Long
Slide 10: Leveraging on Reliable and Efficient Supply Chain
Leveraging on Reliable and Efficient Supply Chain Tabangao Refinery North Mindanao Import Facility ▪ Successfully completed the planned ▪ 18M man-hours free of Loss Time pitstop in Q2 Incidents ▪ 7M man-hours free of Loss Time ▪ 99.2% on-time and in-full pick-up Incidents and road delivered ▪ Realiz
Slide 11: Update on key strategies
Strategy Update on key strategies Selectively pursue Maintain a reliable and Leading corporate Capture non-fuel related profitable fuel efficient manufacturing governance and world growth opportunities opportunities and supply chain class talent development PSPC priorities Delivery ▪ Maximizing cash
Slide 12: Slide 12
Pilipinas Shell Petroleum — Q2 2018 Earnings Presentation on 6ix