Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q1 2019 Earnings Presentation
12 slides from Shell Pilipinas's earnings presentation, May 15, 2019
Slide 1: Q1 2019 Results
Q1 2019 Results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation May 15, 2019 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 Pursue Fueling ▪ Pilipinas Shell celebrates its105th year in the country founded on longer-term investment horizon, consistent profitable fuel progress for strategy, commitment to business principles/core values, growth opportunities the Filipino and strong corporate governance
Slide 4: Financial highlights
Financial Maintained 1Q18 net income level despite higher highlights excise taxes and depressed regional refining margins 2.3 NIAT (PHPb) PHPb 3 1.4 Total volume (Bn litres) 2 -1.5 Cash flow from operations (PHPb) 1 15 ROACE (%) 0 1Q16 1Q17 1Q18 1Q19 25 Gearing (%) Manufacturing and supply Marketing
Slide 5: Solid marketing delivery slightly tempers impact of low regional refining margins
1Q19 EBITDA Adjusted for COSA stands at PHP2.4b Solid marketing PHPb 5 delivery slightly tempers impact of low regional refining margins 1Q16 1Q17 1Q18 1Q19 -2 Marketing Manufacturing and supply Retail volume growth High premium fuel Strong marketing Retail volume Strong regional penetration deliver
Slide 6: Projected cash flow from operations remain sufficient to fund 2019 CAPEX and dividends
Capital Investments + ROACE Projected cash PHPb flow from 1 35% 27% operations 24% remain sufficient to 15% fund 2019 CAPEX and 0 1Q17 1Q18 1Q19 0% dividends Retail Others Commercial ROACE Cash flow from operations Average capital employed + Gearing PHPb PHPb 5 60 40% 23% 25% ▪ CFFO and FCF impacted
Slide 7: Retail increased premium fuel penetration and sustained volume despite higher excise taxes
Retail Marketing campaigns and increased refreshed loyalty programs lined up to leverage on strong brand premium fuel preference penetration and sustained Volume up 1% despite volume despite higher excise taxes higher excise RETAIL Local celebrities and car manufacturers endorsing the brand taxes FU
Slide 8: Non-fuels retailing business continues to enjoy double-digit growth
Non-fuels retailing 14% Non-fuels contribution to retail gross margins business Increase in NFR Income continues to +50% from Q1 2016 enjoy double- digit growth On track to deliver new store guidance by New Select shops and deli2go offerings in key year-end retail stations Guidance Q1 2019 Total Sel
Slide 9: Successful marketing campaign contributes to volume growth for lubricants
Successful Lubricants marketing Commercial fuels ◼ Successful marketing campaign translated to campaign higher volumes and increased brand preference ◼ Won key accounts to counter structural decline in power demand contributes to ◼ Significant increase in lubricants volume Aviation volume growth ◼ R
Slide 10: Refinery improves cost competitiveness to increase robustness against lower regional refining margins
Refinery improves cost competitiveness to increase robustness against lower TABANGAO REFINERY SUPPLY AND DISTRIBUTION regional refining margins ▪ Lower regional refining ▪ North Mindanao Facility continues margins vs PY; benchmark to deliver cost savings regional refining margin down ▪ Strong HSSE p
Slide 11: Fueling progress together with the Filipino for 105 years
Fueling progress together with the Filipino for 105 years To view our Annual and Sustainability Report, please visit https://pilipinas.shell.com.ph/ASR-2018 Pilipinas Shell Petroleum Corporation
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