Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — FY2022 Earnings Presentation
44 slides from Jollibee Foods's earnings presentation, Mar 16, 2023
Slide 1: Earnings Conference Call
Earnings Conference Call Jollibee Foods Corporation March 16, 2023
Slide 2: Agenda
Agenda CEO’s Remarks Ernesto Tanmantiong, JFC Global President and CEO Q4 and Full Year Results with the CFO Richard Chong Woo Shin, JFC Global CFO ESG Updates Jose Maria Miñana, JFC Global Chief Sustainability and Public Affairs Officer
Slide 3: Reminder to Participants of JFC’s Investor/Analyst Briefing
Reminder to Participants of JFC’s Investor/ Analyst Briefing This earnings call may include forward-looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events. Actual results could differ materially from those contemplated i
Slide 4: CEO’s Remarks
CEO’s Remarks Jollibee Foods Corporation March 16, 2023
Slide 5: 2022 Highlights
2022 Highlights SWS P296.8Bn +40.2% 2022 Topline and Operating Revenue P211.9Bn Income ahead +38.0% of JFC’s guidance for the year Operating P9.9Bn Income +58.5% *Global ex-China: SWS: P278.5Bn +44.0%; Revenue: Php198.2 +42.0%; Operating Income: P11.3Bn +77.1% 5
Slide 6: Full Year System-wide Sales
Full Year System-wide Sales 2022 vs 2019 +21.7% o s o 6
Slide 7: International Expansion of JFC Group
International Expansion of JFC Group International Store Network Contribution CAGR (2018-2022) – 12.4% 46% 49% 44% 45% 31% 2018 2019 2020 2021 2022 International Systemwide Sales Contribution CAGR (2018-2022) – 10.7% 40% 42% 41% 26% 29% 2018 2019 2020 2021 2022 International business getting closer
Slide 8: SWS and SSS Growth, by Region vs 2021
SWS and SSS Growth, by Region vs 2021 All markets ex-China posted robust topline growth China expected to rebound in 2023 due to ease of lockdown restrictions and market reopening *International ex-China: SWS: 4Q 38.0% | FY 43.1%; SSSG: 4Q 10.2% | FY 12.1% Global ex-China: SWS: 4Q 41.7% | FY 44.0%;
Slide 9: Channel Sales and Early Consumer Convenience Trends
Channel Sales and Early Consumer Convenience Trends C Mx ‘ vs ‘ Channel SWS G% vs. '21 vs. '19 7% 10% Dine-in +99% -18% 6% Takeaway +19% +33% Delivery +22% +387% 20% Drive-thru +0.0% +106% 28% • Dine in contribution increasing but still not as high as pre- pandemic level of 58% 30% • Off-premise cha
Slide 10: Highest-ever SWS, surpassing pre-pandemic levels
Highest-ever SWS, surpassing pre-pandemic levels 100.0 Quarterly Systemwide Sales in Php Bn 90.0 85.9 80.0 73.1 77.8 72.7 70.0 62.0 60.0 59.0 59.4 60.0 57.4 50.5 51.4 54.3 55.2 53.9 50.0 53.9 53.3 48.4 45.6 45.1 46.0 49.5 47.8 40.6 37.5 40.0 43.8 43.7 34.8 39.5 39.4 41.2 35.8 32.6 36.0 37.2 32.0 30.
Slide 11: 542 New Stores, ahead of guidance for 2022
542 New Stores, ahead of guidance for 2022 (+8%) Highest number of stores opened in a single year in JFC’s history *Organic growth (ex-Milksha): International +7.4% | Global +4.5% COO – FRA 33% 43% SPLIT PH 48% IO 57% Global 52% COO 67% FRA 11
Slide 12: 2023 Focus
2023 Focus Relentless focus on international business in line with our vision Continue to fortify dominance in the Philippine business 12
Slide 13: 2022 Q4 and Full Year Results with the CFO
2022 Q4 and Full Year Results with the CFO Jollibee Foods Corporation March 16, 2023
Slide 14: Summary – Q4 and FY ’22 vs. ’21 and ’19 (Pre-Pandemic)
Summary – Q4 and FY ‘22 vs. ‘21 and ’19 (Pre-Pandemic) FY2022 delivered strong overall gearing, with historical high topline driving historical high profits. Excluding one-off items and A&P spend timing difference, the JFC Group’s adjusted normalized operating income is Php3.6 billion, 44.0% higher
Slide 15: Q4 2022 Operating Income Bridge
Q4 2022 Operating Income Bridge JFC Global Operating Income movements in Php Billions Q ’ +36.8% Provisions to A&P: As % Q ’ 5.5% Growth in curtail non- of SWS 3.1% Revenue priority brands % ‘ vs. 2.9% in ‘ Decline of 23.7% versus prior year mainly due to provisions to curtail non-priority brands &
Slide 16: Timing of A&P and seasonality impact resulting in circa Php1.1B impact to Q4
Significant catchup in 2022 Q4 due to H1 spending delays brought by COVID resulting to 3.2% of SWS in Q4 2022 vs 2.9% in Q4 2021. On a full year, Ads support at slightly lower vs prior years Ads Spending Quarterly Progression 3.3% Percent (%) of SWS 3.2% 3.5% 3.7% 3.9% as % of Revenue 2.9% 3.0% 2.9%
Slide 17: Other Income Bridge
Other Income Bridge JFC Global Other Income Key Items in Php Billions Q ’ Q ’ Various Lower reversals Gain on Provisions for due to process Financial contingencies improvements Assets at FVTPL 17
Slide 18: 2022 NIAT excluding one-off and A&P timing, delivered record performance
Despite lower Other Income (Php0.5B); 2022 NIAT excluding one-off and A&P timing, delivered record performance vs pre-pandemic level Amounts in PHP Bn 4Q 2022 NIAT 4Q 2022 NIAT 4Q 2019 NIAT 4Q 2018 NIAT Exc. One-Offs ✓ Excluding One-Offs, 4Q NIAT delivered 1.9Bn. This is higher vs pre-pandemic level
Slide 19: Key Performance Indicators
Key Performance Indicators 18.2% 18.3% 16.9% 17.7% 17.0% 17.4% 16.5% 16.3% 15.4% 14.3% 14.7% 13.3% 5.5% 4.7% 3.6% 4.1% 2.9% 3.1% Q4 2019 Q4 2021 Q4 2022 FY 2019 FY 2021 FY 2022 GP Margin EBITDA Margin OP Margin 2022 Operating GP Margin 2022 EBITDA Profit Margin sustained upward Margin sustained exce
Slide 20: Philippines main driver of revenues and income; International growth key focus
Philippines main driver of revenues and income; International business growth and profitability key focus for 2023 Contribution per metric from Philippine and International Business Q4 2022 FY 2022 Key Metrics % Contribution to Total Change % Contribution to Total Change 2022 2021 2019 vs. LY vs. 20
Slide 21: International business dragged by lockdowns in China and US/Europe losses
International business dragged by lockdowns in China and operating losses from US and European markets which are still in investment phase Margins as % of Revenues from Philippine and International Business Q4 FY Key Metrics Margins as % to Revenues Change Margins as % to Revenues Change 2022 2021 2
Slide 22: Excluding China, Operating Income would have been P11.3Bn +77.1%
Excluding China, Operating Income would have been P11.3Bn +77.1% Contribution per metric from Philippine and International Business Q4 2022 FY 2022 Key Metrics % Contribution to Total Change % Contribution to Total Change 2022 2021 vs. LY 2022 2021 vs. LY Global Revenues 100% 100% 100% 100% Philippi
Slide 23: Financial Metrics Summary – Free Cash Flow
Financial Metrics Summary – Free Cash Flow Q4 reflects higher inventory days (+2 DOI), speedier payment days to ensure supply (-8 DPO) and overall higher Receivables due to Revenue growth, with faster collection (-2 DSO) 23
Slide 24: Balance Sheet
Balance Sheet FY22 FY21 Amounts in Php Mn Cash and cash equivalents Balance Sheet remains strong vs end of LY short-term investments 29,488 24,772 Cash: robust, with most operating entities Financial Assets at FVTPL 8,251 14,413 cashflow positive to support operational needs Bank Loans1 53,928 53,29
Slide 25: Financial Obligations
Financial Obligations 2% 14% SGD & VND 31% Php1.3B PHP Floating Php12.4B Php27.6B 14% By Interest Rate Type Debt obligations 4.6% By Currency (Debt & Equity) Equity obligations 3.9% Php86.3B 86% Weighted rate 4.3% 67% Fixed USD Php73.9B Php57.4B 23% 37% Floating Debt-accounted Php12.4B PHP 4.4% Php5
Slide 26: Forward Guidance - 2023 Targets
Forward Guidance - 2023 Targets ➢ Store network increase of at least 5% versus 2022; gross store opening of 550 to 600 stores across the globe; Capital expenditure to be Php17Bn to 19Bn ➢ Systemwide sales to be up by 15% to 20% with same store sales growth from 7% to 10% ➢ Operating income growth ra
Slide 27: JFC Sustainability Agenda
JFC SUSTAINABILITY AGENDA Pepot Minana Chief Sustainability & Public Affairs Officer
Slide 28: Jollibee Group Throughout the Years
JOLLIBEE GROUP THROUGHOUT THE YEARS 17 Brands 34 Countries 6,300+ Stores Worldwide For the sixth straight Tony Tan Caktiong, year, Jollibee Group Jollibee Group is Launched the together with his wife chosen as the Most Food, Service, is named as the Grace, his family, and in- Philippines’ Leading Ad
Slide 29: Jollibee Group milestones and awards
Burger King Launched its Plant-Based Whopper Chickenjoy, the best fried chicken in America Eater.com The Gallup Organization awards Jollibee Group with the Gallup Golden Arrow Exceptional Workplace Award, making corporate governance Solar Panels were it the first-ever Philippine based award installe
Slide 30: Our Process
OUR PROCESS What our core business impacts ALIGNMENT TO UN SDG Our OUR PILLARS Sustainability Agenda What the world, within our industry needs
Slide 31: Food
FOOD Food Safety We serve Food People trust Food Quality Nutrition & Transparency
Slide 32: People
PEOPLE Employee Welfare We Help Make Farmers Livelihood People’s Lives Better Community Support Nutrition & Transparency Good Governance
Slide 33: Planet
PLANET Packaging & Recycling We Treat the Planet Waste Responsibly Reduction Energy & Water Efficiency
Slide 34: The result of this process is the framework for our Sustainability Agenda
The result of this process is the framework for our Sustainability Agenda, Bringing the joy of eating for everyone today, and for tomorrow
Slide 35: The Jollibee Group Sustainability Agenda
PILLARS FOCUS AREA UN SDG’s Food Safety FOOD We serve Food Quality Food People Trust The Jollibee Group Sustainability Agenda Nutrition & Transparency Employee Welfare PEOPLE Farmers Livelihood We Help Make People’s Community Support Lives Better Bringing the joy of eating for everyone Good Governan
Slide 36: Food
FOOD We serve Food People trust Food safety, quality, and nutrition are our anchors in earning the trust of our customers as we serve great-tasting food loved by millions
Slide 37: Food Focus Areas and Goals
SSOCIAL FOCUS AREA FOOD SAFETY FOOD QUALITY NUTRITION & TRANSPARENCY Continue to serve Responsibly Provide customers with a variety of options, great tasting and safe source key JFCby ensuring Global that our brandsCriteria Nutritional offer meal foods through ingredients from a choices that are in
Slide 38: People
PEOPLE We Help Make People’s Lives Better We foster an inclusive work environment for the growth and development of our employees, farmers, and communities
Slide 39: People Focus Areas and Goals
FOCUS SOCIAL GOVERNANCE AREA EMPLOYEE WELFARE FARMERS COMMUNITY GOOD LIVELIHOOD SUPPORT GOVERNANCE Provide all employees with training and IDP 100% development that Aveempowers them 9.6 training to achieve hours / emp Over 9.7M meals JFC Code of career milestones Business Ethics 3,000 farmers in PH
Slide 40: Planet
PLANET We Treat The Planet Responsibly Packaging & Recycling, Energy, Water, and Waste are areas that we focus on as we take a step ahead in treating our planet responsibly
Slide 41: Planet Focus Areas and Goals
FOCUS EE N V I R O N M E N T PACKAGING & WASTE ENERGY AND WATER AREA RECYCLING REDUCTION EFFICIENCY MFG – PH MFG – PH 21.5% energy reduction Packaging is an identified 38.1% waste reduction in energy use ratio vs. 2020 baseline vs. 2020 baseline 5.5MT of ghg avoided key area in our Reduce energy con
Slide 42: Summary: Business as Usual and Work in Progress
SUMMARY AREA BUSINESS AS USUAL WORK IN PROGRESS • Energy & Water Efficiency, and Waste Reduction • Energy & Water Efficiency, and Waste Reduction – – in PH Manufacturing in International Manufacturing E • Packaging Sustainability – Resp. Sourcing All information is • Store Energy, water, waste - Bas
Slide 43: The Jollibee Group Sustainability Agenda
The Jollibee Group Sustainability Agenda Bringing the joy of eating for everyone today, and for tomorrow PEOPLE FOOD PLANET We Help Make We serve Food We Treat The People’s Lives Better People trust Planet Responsibly
Slide 44: Thank you!
Jollibee Foods CORPORATION Thank you! Co ee @6e — D we 3. TR menenar