Sbs Philippines Corp. · PSE:SBS
Sbs Philippines — IPO Roadshow (July 2015)
43 slides from Sbs Philippines's IPO roadshow presentation, Jul 27, 2015
Slide 1: Investor's Briefing
Formerly Sytengco Philippines Corporation Investor’s Briefing 27 July 2015
Slide 2: Disclaimer
Disclaimer A registra*on statement rela*ng to securi*es has been filed with the Securi*es and Exchange Commission of the Republic of the Philippines, but has not yet become effec*ve. These securi*es may not be sold nor offers to buy the same be accepted prior to the *me the registra*on statement become
Slide 3: Agenda
Agenda Introduction to SBS Investment Highlights Financial Highlights Q1 2015 Terms of the Offering Q&A 30 July 2015 Company Presentation 3
Slide 4: Presentors
Presentors Necisto U. Sytengco Aylene Y. Sytengco Regina Simona B. de Guzman Director Director Corporate Secretary & Compliance Chairman & President CFO & Treasurer Officer 30 July 2015 Company Presentation 4
Slide 5: SBS Philippines Corporation
SBS Philippines Corporation YOUR STRATEGIC CHEMICAL SUPPLY PARTNER Trading and distribution of chemicals and ingredients with roots from 1970s Offers seamless One-Stop-Shop Solution connecting global suppliers with local customers. Carries a broad line of chemical products which is distributed nation
Slide 6: Company History
Company History • Started directly selling to • Professionalization of • Begun commercial multinational companies management team operations • Offered 500 chemical • Diverse customer base • Started with 5 products to over 250 of more than 1,800 chemical products customers • With over 3,000 chemical p
Slide 7: Board of Directors and Executive Officers
Board of Directors and Executive Officers Necisto U. Sytengco Aylene Y. Sytengco Victorina B. Ladringan Esmeraldo A. Tepace Necisto Y. Sytengco II Director Director Director Director Director Chairman & President CFO & Treasurer Chief Investment Officer EVP & General Manager SVP Sales & Marketing Ricard
Slide 8: Executive Officers
Executive Officers Lali Y. Sytengco Regina Simona B. de Guzman VP Procurement Corporate Secretary & Compliance Officer Ned Bryan Y. Sytengco VP Investments 30 July 2015 Company Presentation 8
Slide 9: Vision
Vision “To be the best-in-class chemical raw materials provider and the chemical supplier of choice” 30 July 2015 Company Presentation 9
Slide 10: Business Model
Business Model Chemical Sourcing & Wholesale Chemical Producer Procurement Storage Transport Distribution User Inventory Management Logistics Support § Wide supplier base § 3,000 industry and specialty chemicals § Warehouse facilities of almost 50,000 m2 § Integrated logistics for delivery and r
Slide 11: Business Model: One-Stop-Shop Solution
Business Model: One-Stop-Shop Solution Producer Customer A A Producer Customer B B Producer Customer C C Producer Customer D D 30 July 2015 Company Presentation 11
Slide 12: Business Model: One-Stop-Shop Solution
Business Model: One-Stop-Shop Solution Product Product 1 1 Product Product Product Product 6 2 6 2 Customer Supplier A Supplier B A Product Product Product Product 5 3 5 3 Product Product 4 4 Customer B Product 1 Product Product 6 2 Customer Supplier C C Product Product 5 3 Product 4 30 July 2015 Co
Slide 13: Diversified Customers
Diversified Customers Sells to a diverse group of industry market customers 30 July 2015 Company Presentation 13
Slide 14: Industry: Food and Beverage
Industry: Food and Beverage MSG Guar Gum Potato Starch Citric Acid Cornstarch Seasoning and spices 30 July 2015 Company Presentation 14
Slide 15: Industry: Food and Beverage
Industry: Food and Beverage savoury flavoring MSG 30 July 2015 Company Presentation 15
Slide 16: Industry: Mining
Industry: Mining Cyanides Sodium Tetraborate Decehydrate Bentonite 30 July 2015 Company Presentation 16
Slide 17: Industry: Water Treatment
Industry: Water Treatment Phosphoric Acid Hydroxides Phosphates Disinfectant 30 July 2015 Company Presentation 17
Slide 18: Industry: Feed
Industry: Feed 30 July 2015 Company Presentation 18
Slide 19: Industry: Pharmaceutical; Personal and Home Care
Industry: Pharmaceutical • Antibiotics • Fillers and buffers • Antihistamine • Sweeteners and • Anti Viral thickeners • Anti Fungal • Binders and Humectants • Acids and Alkalis Industry: Personal and Home Care • Acidulants • Surfactants and Bleach • Biocides and Builders • Hydroxides and specialty •
Slide 20: Agenda
Agenda Introduction to SBS Investment Highlights Financial Highlights Q1 2015 Terms of the Offering Q&A 30 July 2015 Company Presentation 20
Slide 21: Competitive Strengths
Competitive Strengths 30 July 2015 Company Presentation 21
Slide 22: Attractive alignment for growth
Attractive alignment for growth • Strong macro growth providing great business momentum • Presenting opportunities to accelerate demand for Company products • Significant market presence in a growing chemical distribution industry 30 July 2015 Company Presentation 22
Slide 23: Competitive Strengths
Competitive Strengths Significant scale and scope of business Highly diversified product lines and presence in multi-markets Diverse sourcing and extensive distribution and warehousing network Strong and long standing relationships with customers Experienced and entrepreneurial management team 30 Ju
Slide 24: Diversified Product lines and Presence in Multitude of Markets
Competitive Strengths Diversified Product lines and Presence in Multitude of Markets • Offers a wide selection of products • “One-stop-shop” providing choice and convenience to customers • Cross industry application makes for a resilient business model • Broad market presence mitigates industry specifi
Slide 25: Significant Scale and Scope of Business
Competitive Strengths Significant Scale and Scope of Business On target to achieve P1-Bn annual sales 3,000 chemical products 1,800 customers 500 suppliers 30 July 2015 Company Presentation 25
Slide 26: Diversified Global Sourcing
Competitive Strengths Diversified Global Sourcing 30 July 2015 Company Presentation 26
Slide 27: Extensive warehousing and distribution network
Competitive Strengths Extensive warehousing and distribution network • Network of 15 warehouses with a combined warehousing space of over 46,000 square meters • Storage capacity of over 18,000MT • Nation wide distribution reach 30 July 2015 Company Presentation 27
Slide 28: Long Standing Relationship with Customers
Competitive Strengths Long Standing Relationship with Customers Customers Testimonials “We are proud to have been long-term partners of SBS Philippines Corporation in GROWTH” – Mr. Dean L. Lao, Chairman Emeritus D&L Industries, Inc. “SBS Philippines Corporation has been consistently meeting our expe
Slide 29: Experienced and Entrepreneurial Team
Competitive Strengths Experienced and Entrepreneurial Team • Over 100 years of combined related industry experience • Rich network for strong information exchange • Strong commitment to value creation 30 July 2015 Company Presentation 29
Slide 30: Growth Strategies
Growth Strategies 30 July 2015 Company Presentation 30
Slide 31: Focus on market and business development
Growth Strategies Focus on market and business development Intensified market mapping Additional product offerings Strengthen customer relationships Continuous assessment of market opportunities such as increase its presence in the Asian region 30 July 2015 Company Presentation 31
Slide 32: Capitalize on the growing industries in the country
Growth Strategies Capitalize on the growing industries in the country Enhanced focus on industries with attractive growth prospects Identify strategic market gaps Support customer diversity initiatives 30 July 2015 Company Presentation 32
Slide 33: Enhance infrastructure capabilities
Growth Strategies Enhance infrastructure capabilities Position warehouse facilities for future requirements Increase environment-specific storage facilities Provision for inventory planning, stocking and information systems Enhance technical capability of human resource 30 July 2015 Company Presentat
Slide 34: Reduce cost and improve profitability
Growth Strategies Reduce cost and improve profitability Volume consolidation Reduction of sourcing costs Competitive global sourcing Adoption of energy saving systems 30 July 2015 Company Presentation 34
Slide 35: Agenda
Agenda Introduction to SBS Investment Highlights Financial Highlights Terms of the Offering Q&A 30 July 2015 Company Presentation 35
Slide 36: Financial Highlights
Financial Highlights INCOME STATEMENT As of December 31 March 31 Profitability Ratios 2012 2013 2014 2014 2015 (All amounts in millions of pesos) Sales 994 786 933 194 243 25% Gross Profit 203 206 265 55 71 29% EBITDA 198 172 248 60 64 7% Net Income 39 60 99 19 33 74% Profitability Ratios 2012 2013 2
Slide 37: Financial Highlights
Financial Highlights BALANCE SHEET As of December 31 March 31 Balance Sheet Ratios 2012 2013 2014 2015 % Change (All amounts in millions of pesos) ASSETS Current Assets 2,023 2,560 2,179 2,147 -‐1% Non-‐Current Assets 988 996 1,248 1,245 0% 3,011 3,556 3,427 3,392 -‐1% LIABILITIES Current Liabili
Slide 38: Use of Proceeds
Use of Proceeds 30 July 2015 Company Presentation 38
Slide 39: Agenda
Agenda Introduction to SBS Investment Highlights Financial Highlights Q1 2015 Terms of the Offering Q&A 30 July 2015 Company Presentation 39
Slide 40: Terms and Conditions
Terms and Conditions Transaction SBS Philippines Corporation, initial public offer of common shares Offer Shares Primary issue of up to 420,000,000 common shares Minimum Subscription 1,000 Offer Shares, additional subscription in multiples of 1,000 thereafter Offer Price Up to PHP2.75 per share Issue Am
Slide 41: Use of Proceeds
Use of Proceeds Estimated Schedule of Proposed Use Amount Disbursement Product expansion Up to P100.0 Mn First half of 2016 • Raw material for Detergent • Sulfate-free chemicals for Personal & Home Care use • Natural ingredient replacements for the Processed Meat Industry • Natural or non-synthetic
Slide 42: Offer Timetable
Offer Timetable Activities Date SEC En Banc approval July 16 PSE Board approval July 22 Manila Roadshow July 22 Start of the Offer Period July 28 PSE Trading Participants’ Commitment Period July 28 - 30 Deadline for LSI and General Public’s Submission of August 3 Application, End of Offer Period Listin
Slide 43: Parties to the Offer
Parties to the Offer Activities Date Company SBS Philippines Corporation Sole Issue Manager, Bookrunner BDO Capital & Investment Corporation and Underwriter Counsel to Underwriter Martinez Vergara Gonzalez & Serrano Counsel to Company Farol & Verayo Independent Auditor Punongbayan & Araullo 30 July 2