Philippine Seven Corporation · PSE:SEVN
Philippine Seven — Q1 2015 Earnings Presentation
19 slides from Philippine Seven's earnings presentation, 2015
Slide 1: Investors Briefing Q1 2015
Philippine Seven Corporation (SEVN:PM) INVESTORS BRIEFING Q1 2015 7th Floor The Columbia Tower, Ortigas Avenue, Mandaluyong City Email: investor-relations@7-eleven.com.ph
Slide 2: Who We Are
Who We Are MISSION: To make daily life easier by providing modern convenience. VISION: To be the best retailer of convenience for emerging markets. VALUES: We value integrity, teamwork and reliability. We are data-driven and customer focused in our decisions.
Slide 3: A Global Brand
A Global Brand The World’s Largest Retailer: ~ 55,000 Stores Norway SERVING OVER Sweden 44M Canada Denmark GUESTS United States China South Korea Japan DAILY Mexico Hong Kong Taiwan Macau 2015 Thailand 2X $100 Billion Malaysia Philippines WORLD’S Indonesia POPULATION in Sales Singapore EVERY Estimat
Slide 4: Local Coverage
Local Coverage By Location Store Count % Metro Manila 600 45% Luzon 622 46% Visayas 119 9% Total 1,341 100% As of March 31, 2015 7-Eleven has at least 60% market share in the Philippines.
Slide 5: PSC History at a Glance
PSC History at a Glance 1982 PSC was established 2005 Moved to a full-scale distribution center 1984 Opened first store 2007 PhilSeven Foundation was established 1996 Opened 100th Store 2010 Opened 500th Store 1998 PSC launches its IPO; Opened first 2012 Opened 711th Store and entered Visayas Franch
Slide 6: Shareholding Structure
Shareholding Structure Agus Development Corp. 3% Present Shareholding Others-Foreign 14% Structure Others-Filipino 4% Progressive Development Corp. 2% President Chain Store Asian Holdings Corp. (Labuan) Holdings, 7% Ltd. 52% As of March 31, 2015 % Paterno Family 8% President Chain Store (Labuan) Hol
Slide 7: SEVN Share Information
SEVN Share Information Price (Apr. 17, 2015) Php 110.00 Hi/Low (12 months) Php 80.00 – Php 111.00 Free Float 32% Outstanding Shares 458.44 million USD Market Capitalization 1.13 billion Dividend 2008 2009 2010 2011 2012 2013 2014 2015 Payment Stock .10 .10 .05 .15 .15 .15 - - Cash - - .05 .10 .10 .1
Slide 8: Store Count
Store Count Store Count Store Count by Type 1,400 1,200 1,000 Corporate, FC1, 563 , 471 , 37% 800 44% 600 400 FC2, 248 , 19% 200 - 2011 1989 1990 1991 1992 1993 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2012 2013 2014 1995 2005 • Number of stores grew by 20% to 25% a
Slide 9: Proprietary Products
Proprietary Products By Section Services 1% Non-food 7-Eleven 18% fresh food and cup drinks 25% Food 56% 1. 7-Eleven fresh food and drinks includes, rice meal, sandwiches, Slurpee® and coffee. 2. Food section are FMCG and alcoholic beverages 3. Non-food are cigarettes and health & beauty items 4. Se
Slide 10: Promotions and Events
EVERY DAY! S) wifi Now available at 1 point = 15 mins of wifi _— ff eet -ELEVEN
Slide 11: Franchise Packages
Franchise Packages FC1 FC2 Franchise Type Investor Industrial Investment USD USD 80,000-100,000 20,000-25,000 Building Franchisee PSC Merchandise Franchisee Equipment PSC Cash Bond (PGD) - Franchisee Term 5+5 years GP Split 66% FC, 40% FC, 34% PSC 60% PSC Rent Franchisee PSC Electricity 50 - 50 spli
Slide 12: Financial Highlights
Financial Highlights 2014 2013 % change 20,566.5 Sales 17,240.5 19.3 873.3 Net income 682.6 27.9 2,134.2 EBITDA 1,709.2 24.9 (Php million) Net income 1,000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 - (100.0) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net income (2.0) 13.8 2
Slide 13: Q1 Financial Highlights
Q1 Financial Highlights % change 24.2 12.8 22.4
Slide 14: Financial Highlights
Financial Highlights 8,000 Balance Sheet and Cash Flow As of Dec. % (in Php Million except Book Value per Share) 31, 2014 change 7,000 Total Assets 7,882.3 31% 6,000 Current Assets 3,365.4 28% 5,000 Total Assets Non-current Assets 4,516.9 33% Current Liabilities 4,225.3 33% 4,000 Total Liabilities T
Slide 15: Financial Highlights
Financial Highlights EPS 2.50 Selected Financial Ratio 2014 2013 2.00 Liquidity and Leverage Ratio: 1.50 Current Ratio (x) 0.80 0.83 1.00 Net Debt to Equity (%) -15.3% -16.7% 0.50 Profitability Ratio: - Return on Equity (%) 30.0 30.7 2010 2011 2012 2013 2014 EPS 0.60 0.78 1.01 1.49 1.91 Return on Ca
Slide 16: Comparative Metrics
Comparative Metrics 2014 7-Eleven PSC PCSC** CPALL (Philippines) (Taiwan) (Thailand)*** Key Performance Ratio: Store count 1,282 5,040 8,127 (end-2014) Net Margin % 4.2* 6.3 3.8 EBITDA % 10.4* 8.9 9.5 EBIT % 6.2* 5.0 7.7 ROE 30.0 36.1 42.3 Days inventory outstanding 29.3 20.8 23.0 Days payable outst
Slide 17: Future Growth affected by trend of traditional stores
Future Growth affected by trend of traditional stores PHILS by Channel | YTD TY vs YTD PHILS by Channel | Period Ended LY Value Share of Trade MAY14 Value Change % vs Year Ago Source: AC Nielsen 2014
Slide 18: Population Per Store
Potential to improve penetration… 90,000 Philippines Thailand Taiwan 80,000 Urbanization 49% 34% 75% Philippines AGE % % % 70,000 0-14 34% 20% 15% Population Per Store Demographics 15-24 19% 15% 14% 60,000 25-54 37% 46% 48% 50,000 55+ 6% 10% 12% Density 896/sq.mi. 342/sq.mi. 1,664/sq.mi 40,000 Luzon
Slide 19: End of Presentation
* End of Presentation *