Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — FY2020 Earnings Presentation
61 slides from Gt Capital's earnings presentation, Mar 29, 2021
Slide 1: Full-Year 2020 Financial and Operating Results
29 March 2021 Full-Year 2020 Financial and Operating Results Analyst and Investor Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com
Slide 2: Briefing housekeeping rules
Recording this briefing, whether in part or in full, is strictly prohibited Please rename yourself to reflect your full name for proper identification We will upload the presentation later at gtcapital.com.ph/investor-relations Ask a question via the Zoom Q&A Box or you may use the Raise Hand functi
Slide 3: Briefing Panelists
Briefing Panelists Mr. Carmelo Maria Mr. Vince S. Socco Mr. Francisco H. Mr. Jose B. Crisol, Jr. Suarez, Jr. Senior Vice President Luza Bautista Chairman GT Capital Auto Dealership Chief Finance Officer Head of Investor Relations, President Holdings Executive Vice President Strategic Planning, and C
Slide 4: Mr. Carmelo Maria Luza Bautista, President
Mr. Carmelo Maria Luza Bautista President GT Capital Holdings, Inc. 4
Slide 5: Macroeconomic Overview
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Slide 6: Covid-19 Updates
Covid-19 Updates Philippine Daily New COVID Cases (until Mar 28) COVID Updates in the Philippines • Daily New Cases (Mar 28): 9,475 • 7-day moving ave. (Mar 28): 8,303 28 Mar 2021 • Cases since Jan 2020: 721,892 New cases: 9,475 • Deaths since Jan 2020: 13,170 7-day avg: 8,303 • Mortality Rate: 1.82
Slide 7: Phases of Potential Rollout of Covid-19 Vaccines in the Philippines
As of 23 March 2021 Phases of Potential Rollout of Covid-19 Vaccines in the Philippines Number of Doses Signed Start of Arrival in the Philippines COVID Vaccine (in millions) agreement? Q1 Q2 Q3 Q4 Sinovac 25.0 Yes COVAX 44.0 Yes Moderna 20.0 Yes 2.6 Yes AstraZeneca 14.4 Yes Pfizer-BioNTech 25.0 No
Slide 8: Partners for Good: Covid-19 vaccines for employees and households
GT Capital secures Covid-19 vaccines for ALL Group-wide employees and households We pre-ordered that of all regular and agency GTCAP Group 455,000 will cover employees total doses 100% (including all 71 Toyota dealerships) ALL employees targeted to be vaccinated by Q4 2021, at latest Partners for Go
Slide 9: Inflation expected to stabilize by 3Q 2021
Promising signs of macroeconomic recovery Inflation expected to stabilize by 3Q 2021 Inflation Rate Inflation Rates 6.0% 5.2% 2019 2.5% 5.0% 4.7% 4.2% 2020 2.6% BSP Target Range 2-4% 4.0% 3.1% 3.6% 2021(E) 4.2%* 2.9% 3.0% 2.6% 2.6% Drivers (% YoY) 2.0% 2.5% • Food +6.7% 1.3% o Meat +20.7% o Vegetabl
Slide 10: Industrial sector is projected to bounce back
Promising signs of macroeconomic recovery Industrial sector is projected to bounce back Industrial Sector Growth Rate Industrial Sector Growth Rates 12.5% 2019 +5.1% 8.2% 2020 -9.9% 7.7% 7.3% 6.8% 7.5% 7.0% 6.5% 2021(E) +12.5%* 4.7% • Manufacturing and 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 11: Consensus Macroeconomic View
Consensus Macroeconomic View Philippine Annual GDP Growth Trends Philippines 1980 – 2020, in percent (%) • Annual Ave. GDP growth 2010- 2019: 6.4% among highest in Asian Financial Crisis Global Financial Crisis COVID ASEAN Ave. 2021F: +7.5 • FY2020 GDP at -9.5% due to Covid-19 pandemic • 2021 GDP Gr
Slide 12: Macroeconomic Forecasts
Macroeconomic Macroeconomic Forecasts Overview 2021(E) 2021(E) 2018 2019 2020 Consensus Consensus Range Average GDP Growth Rate 6.2% 5.9% -9.5% 3.5% to 9.1% 6.3% Inflation Rate, base 2012 5.2% 2.5% 2.6% 4.0% to 5.0% 4.5% Peso-Dollar Rate Php52.74 Php51.45 Php48.30 Php45.5 to 50.0 Php48.00 BSP Policy
Slide 13: Consolidated Financial Highlights
Consolidated Financial Highlights 13
Slide 14: Timeline of Events
Timeline of Events Events Leading to 2020 Performance M Modified Pre-COVID ECQ E GCQ ECQ Return to GCQ Taal Eruption Enhanced Community Quarantine C General Community Quarantine Enhanced Community General Community Quarantine Q Quarantine Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bayanihan 1 B
Slide 15: GT Capital Dashboard FY 2020 Financial Highlights
GT Capital Dashboard FY 2020 Financial Highlights Consolidated Php6.5 Billion Core Net Php7.4 Billion Net Income -68% -53% Php20.3 Billion 2019 Income Php15.8 Billion 2019 PPOP Revenues Revenues Gross Premium Share in Op. NI of CoCos Php61.8 B +26% Php99.8 B -41% Php 9.3 B -30% Php 36.3 B +13% Php15
Slide 16: 4th Qtr vs 3rd Qtr 2020 Financial Highlights
GT Capital 4th Qtr vs 3rd Qtr 2020 Financial Highlights Php3.3 Billion Consolidated Net Income Php0.5 Billion 3Q 2020 +578% Php3.7 Billion Core Net Income Php0.6 Billion 3Q 2020 +545% GTCAP Share in NI GTCAP Share in NI GTCAP Share in NI GTCAP Share in NI GTCAP Share in NI Php1.0 B Php592 M Php452 M
Slide 17: Fourth Quarter 2020 Core Net Income
GT Capital Fourth Quarter 2020 Financial Highlights Core Net Income Exceeded Q1 In Php Billion 2020 by 30% 3.700 2.835 +544% Q3 vs Q4 +71% 0.574 Q2 vs Q3 0.335 Q1 2020 Q2 2020 Q3 2020 Q4 2020 17
Slide 18: GT Capital Net Income Contribution 2020
GT Capital Net Income Contribution 2020 TFSPH TMBC SMFC TFSPH TMBC 1.1% 0.6% -0.02% AXA 0.6% 0.2% AXA 8.2% 3.0% TMP TMP MPIC MPIC 18.8% 21.8% 17.4% 8.2% FLI FLI 7.0% 7.6% MBT MBT 48.1% 57.1% MBT + TMP = 69.9 % MBT + TMP = 75.8% 2019 2020 18
Slide 19: Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector* Insurance Infrastructure 6.7% 6.7% Automotive FLI 16.0% Property 5.7% 24.1% Gain on Lot Sale 18.4% Banking 46.6% 2019 2020 19
Slide 20: Summary of Key Messages
Summary of Key Messages • 4Q performance is an indicator of a path to normalcy and capacity to bounce back under GCQ conditions • Challenges faced during 2020 lockdown have been mostly addressed under GCQ (construction at site, dealerships reopening, plant capacity restoration, resumption of sales a
Slide 21: Component Company Highlights
Component Company Highlights 21
Slide 22: Banking
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Slide 23: Summary of Key Messages
Summary of Key Messages • PPOP +26% due to strong core business: NII +12%, Non-Interest Income +21%, Opex only +4% • Strong recurring income, with NII still 71% of Operating Income • Guided by lessons from past crises, the 2020 strategy was for proactive provisioning (3.8x pre-Covid level) and to bu
Slide 24: Property Development
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Slide 25: Demand in 2020 is in Fed Land's core sectors
Property Sector Updates Demand in 2020 is in Fed Land’s core sectors While demand for the affordable and economic property segments (units priced less than Php3.2 million has gone down, Federal Land’s core sectors (luxury, upscale, middle-income) now account for 86% of the entire market’s booked rea
Slide 26: Federal Land Recent Developments
Federal Land Recent Developments Contractor Manpower Deployment As of December 2020 9,293 ECQ MECQ GCQ MECQ GCQ • Lump sum payments awaiting under 5,593 6,554 6,703 turnover of units to buyers quarantine 3,634 3,221 3,928 3,794 345 427 • Balance of Php4.7 B in lump sum Pre-ECQ April May June July Au
Slide 27: Reservation sales show recovery from Apr 2020
Federal Land Recent Developments Reservation sales show recovery from Apr 2020 Monthly Reservation Sales, 2020 3,687 in million Php 2,384 Average Growth Rate +19% 1,825 1,315 1,404 1,094 1,073 915 918 645 700 423 242 279 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2020 2021 27
Slide 28: Co-Development of Land Assets
Co-Development of Land Assets Fourth Quarter 2020 • MOA signed last October for joint development agreement (JDA) of 100 hectares with a strategic anchor investor • 39 hectares sold as part of JDA (15 ha in October and 24 ha in December) 28
Slide 29: Joint Development Site
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Slide 30: Sequoia & Zone 3 / Rio Grande
Sequoia & CALAX Zone 3 / Rio Grande LANCASTER INTERCHANGE Phase 1 JDA DAANG HARI Extension GT RIVERVIEW INTERCHANGE 31
Slide 31: Property Summary of Key Messages
Property Summary of Key Messages Development • Stable demand for Federal Land’s key segments (upper middle income, upscale, and high-end) • Reservation sales continue to exceed Php1 Billion despite no new project launches in 2020 • Construction of all projects in full swing; GCQ conditions favorable
Slide 32: Insurance
Partners for Insurance Good 33
Slide 33: Insurance Industry Updates
Insurance Industry Updates Life Insurance Premium Income %YoY vs. PH GDP 50% 10.0% 39% 42% Life Premium Income (%YoY) 40% 7.6% 7.1% 8.0% 6.8% 3.7% 6.7% 6.3% 6.3% 6.9% 6.3% 6.0% 6.0% 30% 4.2% 24% 4.0% PH GDP (%YoY) 22% 19% 20% 2.0% 1.1% 11% 13% 0.0% 10% 1% 1.7% -2.0% 0% -4.0% -10% -3% -1.0% -6.0% -7%
Slide 34: AXA Recent Developments
AXA Recent Developments Life Annualized Premium Equivalent (APE) Non-Life Gross Written Premiums (GWP) In Php Mn In Php Mn 621 611 614 594 601 557 568 578 572 578 548 537 505 517 478 477 571 502 459 454 472 447 446 543 416 419 482 390 392 446 439 368 353 353 354 369 404 396 375 391 319 294 359 242 2
Slide 35: AXA Recent Developments
AXA Recent Developments New Business Mix Virtual Selling to Total Life APE % to Total Life APE In Php Billion Php6.8 B Php5.2 B 0% Virtual 20% Virtual Php1.4 B 20% 25% Php1.3 B 34% Virtual 0.29 Php0.9 B 13% Php1.4 B 0.46 27% +55% YoY 43% Virtual 1.54 0.36 67% 1.18 Php4.5 B 48% Php2.5 B 0.89 0.48 201
Slide 36: Summary of Key Messages
Summary of Key Messages • Among our component companies, AXA Philippines exhibited the strongest results with a +22% net income growth in 2020 • Soft capital markets result in higher single premium unit-linked sales due to bargain-hunting • Protection and Health products, now accounting for 25% of A
Slide 37: Mr. Vince S. Socco, Chairman GTCAD
Mr. Vince S. Socco Chairman GT Capital Automotive Dealership Holdings, Inc. (GTCAD) 39
Slide 38: Automotive
Partners for Automotive Good 40
Slide 39: Industry Unit Sales, FY2020
Automotive Sector Updates Industry Unit Sales, FY2020 Virtual Model Launches Industry JUNE JULY 242,188 -41% Toyota 100,019 AUG SEPT OCT -38% exceeded 100k target 39.5% 41.3% 2019 Share 2020 Share Source: CAMPI and AVID 41
Slide 40: Auto Industry Sales by Vehicle Type FY 2020
STRICTLY CONFIDENTIAL Automotive Sector Updates Auto Industry Sales by Vehicle Type FY 2020* SUBCOMPACT PC SUV-LO OTHERS, Subcompact 48.9% 30.2% 23% share share PC, 21% Low-Cost LOW-COST PC PICK-UP PC, 8% PICK-UP, 17% SUV-Lo, 62.9% 32.8% 12% share share MPV, 19% Toyota launched models in segments th
Slide 41: Monthly Toyota unit sales approaching 2019 levels
Monthly Toyota unit sales performance is steadily approaching 2019 (pre-Covid) levels Toyota 2020 Monthly Unit Sales as a Percentage (%) of 2019 Monthly Unit Sales 140% 133% 120% 100% 100% 86% 78% 79% 80% 71% 73% 63% 61% 60% 51% 40% 35% 18% 20% 0% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2
Slide 42: Monthly Inquiries and Overall Market Share
Automotive Sector Updates Monthly Inquiries Overall Market Share (FY2020) 41.3% 2020 2019 13,640 14,344 15,383 13,143 16,791 18,305 14,727 14,413 39.5% No.1 May June July Aug Sep Oct Nov Dec Passenger Car Sales %Online 65% 36% 37% 37% 41% 41% 40% 40% No.1 Commercial %Walk-in 18% 39% 38% 35% 32% 32%
Slide 43: Updates on Toyota Financial Services
Updates on Toyota Financial Services Penetration Rate Applications 2019 2020 100,019 80% 20 % pay in cash 22,183 TOYOTA 21,442 21,704 of Toyota car UNIT SALES 2020 buyers choose 19,321 financing 17,65918,347 16,488 16,540 15,11814,461 14,485 15,222 17,076 FY 2019 FY 2020 16,941 15,004 15,050 14,481
Slide 44: Toyota 2020-2021 Monthly Unit Sales vs Previous Year
Monthly Toyota unit sales performance is steadily approaching 2019 (pre-Covid) levels Toyota 2020-2021 Monthly Unit Sales as a Percentage (%) of Previous Year’s Monthly Unit Sales 133% 122% 140% 120% 106% 100% 86% 100% 78% 79% 80% 71% 73% 63% 61% 60% 51% 40% 35% 18% 20% 0% 0% Jan Feb Mar Apr May Jun
Slide 45: Stabilizing auto unit sales, despite pandemic
Automotive Sector Updates Stabilizing auto unit sales, despite pandemic Industry Monthly Retail Vehicle Sales 6% Previous Year Current Year % YoY -67% -29% -34% -22% -14% -100% -85% -53% -36% -24% -14% 32,539 36,150 34,504 -39% 32,678 34,862 37,630 37,655 37,487 -5% 30,160 29,007 34,025 35,267 12,10
Slide 46: DTI Safeguard Measures Admin Order 20-11
Automotive Sector Updates DTI Safeguard Measures Admin Order 20-11 Included Exempt Php70,000 deposit Wigo ✓ Vios Rush ✓ Innova Security deposit collected upon purchase of Fortuner V and G ✓ Hiace Avanza motor vehicles covered starting 01 March 2021 ✓ Fortuner LTD Camry G Corolla Altis (Two-Tone) & Q
Slide 47: New Model Launches 2021
Automotive Sector Updates New Model Launches 2021 Innova Big minor change GR Vios, new variant February 2021 February 2021 Php1.186 - 1.754 million Php 1.020 – 1.035 million Source: CAMPI and AVID 49
Slide 48: TMP has adequate local production (CKD) capacity
DTI Safeguard Measures Admin Order 20-11 TMP has adequate local production (CKD) capacity Opportunities for TMP • Largest auto manufacturer in the Phils. FY Unit Sales 2020 Segment Share 2019 Segment Share • Capacity at Sta. Rosa plant: 60,000+ units • Only 57.8% utilized (35,841 units, 2020) 25,290
Slide 49: Moving Forward: New Logistics Hub Investments
Moving Forward New Logistics Hub Investments Php4.7 32 hectares Billion Logistics Hub land area in Batangas for pre-delivery inspection and Q4 2021 post-production installation expected start of operations 160,000 inspection and post-prod installation capacity 4,500 units stockyard capacity 51
Slide 50: Automotive Sector Summary of Key Messages
Automotive Sector Summary of Key Messages • Toyota outperformed the auto market in 2020 with sales of 100,019 units and an all time record high share of 41.3%. • Aggressive product launches, digitalization and dealer network preparedness were key drivers of sales last year. • Sales recovery is susta
Slide 51: Mr. Carmelo Maria Luza Bautista, President
Mr. Carmelo Maria Luza Bautista President GT Capital Holdings, Inc. 53
Slide 52: Moving Forward
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Slide 53: Key Performance Indicators vs. Pre-Covid levels
Key Performance Indicators vs. Pre-Covid levels Operating Income Growth (%YoY) Retail Vehicle Sales (‘000 Units) 3.7 Reservation Sales (Php B) 31% 13.7 12.3 11.711.5 2.4 10.7 20% 8.9 8.8 8.0 1.8 7.5 13% 15% 4.5 1.1 1.1 0.9 2.4 0.6 0.7 0.9 14% 0.2 0.3 0.4 17% 0.0 11% 11% Jan Feb Mar Apr May Jun Jul A
Slide 54: Parent Financial Highlights Dashboard
Parent Financial Highlights Dashboard Unutilized Net Parentgearing and interest 2.3x Short-Term Lines Net Debt to coverage ratios Bank covenant EquityAt various scenarios Php39.0 B Unutilized Long-Term Loans 1.1x Php15.0 B Internal target Conso Cash 0.61x Php20.8 B As of FY 2020 Parent Cash Php7.6 B
Slide 55: Our Key Messages
Our Key Messages • We have ordered 455,000 vaccines, which Manila Doctors Hospital is expected to administer from June onwards. • Narrowing gaps with pre-Covid levels for most Co-cos • Recent surge, increasing variants, and current ECQ are major concerns • GT Capital’s strong core businesses are all
Slide 56: Thank You!
PITAL AOR ATED,
Slide 57: Briefing Panelists
Briefing Panelists Mr. Carmelo Maria Mr. Vince S. Socco Mr. Francisco H. Mr. Jose B. Crisol, Jr. Suarez, Jr. Senior Vice President Luza Bautista Chairman GT Capital Auto Dealership Chief Finance Officer Head of Investor Relations, President Holdings Executive Vice President Strategic Planning, and C
Slide 58: Briefing housekeeping rules
Recording this briefing, whether in part or in full, is strictly prohibited Please rename yourself to reflect your full name for proper identification We will upload the presentation later at gtcapital.com.ph/investor-relations Ask a question via the Zoom chatbox or you may use the Raise Hand functi
Slide 59: Full-Year 2020
29 March 2021 Full-Year 2020 Financial and Operating Results Analyst and Investor Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com
Slide 60: 2021 Projected Capex budget
2021 Group Capex in Billion Php Prudent practices Actual 2020 2021 Budget Nature 4.000 3.0 – 5.0 IT 0.831 4.0 Pre-delivery inspection facility 0.075 0.291 IT, Transportation, Leasehold rights 0.382 0.466 Service bay improvements 0.040 0.086 IT, Transportation, Leasehold rights 1.353 4.447 Land banki
Slide 61: Comprehensive Auto Resurgence Strategy (CARS)
STRICTLY CONFIDENTIAL Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Incentives, Rationale and Regulations • Manufacturing of model, body shell, large plastic assemblies, common parts, OEM parts, and shared testing facility are covered • Php9.0 bi