Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — 9M 2020 Earnings Presentation
56 slides from Gt Capital's earnings presentation, Nov 17, 2020
Slide 1: Investor and Analyst Briefing
17 November 2020 January to September 2020 Financial and Operating Results Investor and Analyst Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com
Slide 2: Ask your question via the Zoom Q&A Function
Ask your question via the Zoom Q&A Function (Your name)(space)(Your institution) (space)(Your question) You may also use Zoom’s Raise Hand function and we will call on you gtcapital.com.ph/investor-relations 2
Slide 3: Briefing Panelists
Briefing Panelists Carmelo Maria Vince S. Socco Francisco H. Jose B. Crisol, Jr. SVP/Head of Investor Chairman Suarez, Jr. Luza Bautista GT Capital Auto Chief Finance Officer Relations, Strategic Planning, and Corporate President Dealership Holdings Communication 3
Slide 4: Investor and Analyst Briefing
17 November 2020 January to September 2020 Financial and Operating Results Investor and Analyst Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com
Slide 5: Macroeconomic Indicators
GT CAPITAL HOLDINGS INCORPORATES
Slide 6: Promising signs of macroeconomic recovery
Promising signs of macroeconomic recovery BSP Consumer Expectations Survey (CES) – In % GDP (Quarterly %YoY) Rebound by 2021 vs. PH Industry Vehicle Unit Sales – In YoY Change Actual Mid Est.Est. Average High Est. Low Est. Current CES CES Outlook Auto Sales YoY 25.5 9.6 5.6 5.5 6.0 6.4 6.9 4.6 2.0 5
Slide 7: Promising signs of macroeconomic recovery
Promising signs of macroeconomic recovery Philippine Trade, year-on-year growth, in %, Sept 2019 to Sept 2020 ECQ GCQ MECQ 21.6% 16 March 01 June 04-16 Aug • Exports have 9.4% Return to GCQ 17 Aug returned into growth 0.4% 0.5% -0.2% 2.8% 2.2% momentum since Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2
Slide 8: Promising signs of macroeconomic recovery
Promising signs of macroeconomic recovery BSP Gross International Reserves USD-PHP Exchange Rate in Billion US Dollars End of period, in Php BSP is well-positioned to weather Peso strength brought about by lower demand the impact of the pandemic for exports in USD and Federal Reserve keeping 103.8 G
Slide 9: Promising signs of macroeconomic recovery
Promising signs of macroeconomic recovery Purchasers’ Manufacturing Index (PMI), Phils., Sept 2019-Sept 2020, in % ECQ GCQ MECQ • Manufacturers were 16 March 01 June 04-16 Aug surveyed by IHS Markit, Return to GCQ whether they 17 Aug experienced growth or decline in manufacturing 51.8 52.1 51.4 51.7
Slide 10: Philippine economic fundamentals remain sound
• Philippine economic fundamentals remain sound • Shifts from ECQ to MECQ to GCQ have shown noticeable rebound • Overall sentiment from consumers and manufacturers for Q4 2020 and FY 2021 is optimistic 10
Slide 11: Timeline of Events
Timeline of Events Events Leading to Q3 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
Slide 12: January to September 2020 Financial and Operating Highlights
January to September 2020 Financial and Operating Highlights 12
Slide 13: GT Capital Group Nine Months 2020 Financial Highlights
GT Capital Group Nine Months 2020 Financial Highlights Core Net Income* Consolidated Net Income Php3.7 B -69% Php3.2 B -79% Php12.0 billion 9M 2019 Php15.1 billion 9M 2019 *Material subsequent event: Php0.9 B net income realized from the lot sale to a third party, Core NI reached Php4.6 B Net Income
Slide 14: GT Capital Net Income Contribution 9M 2020
GT Capital Net Income Contribution 9M 2020 TFSPH TMBC TFSPH TMBC AXA AXA 1.4% 0.6% Sumisho 1.5% -0.3% 3.4% 8.5% 0.01% TMP MPIC 15.7% TMP MPIC 12.2% 24.8% 11.5% FLI 5.1% FLI 2.5% MBT MBT 52.1% 60.4% MBT + TMP = 76.9 % MBT + TMP = 76.1% 9M 2019 9M 2020 15
Slide 15: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance 3.4% 8.4% Infrastructure Infrastructure 12.2% 11.5% Property Automotive Automotive Property 17.1% 5.1% 27.2% 2.5% Banking Banking 60.4% 52.1% 9M 2019 9M 2020 16
Slide 16: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance 3.4% 7.5% Infrastructure Infrastructure 12.2% 10.2% Automotive Property Automotive Property 15.1% 5.1% FLI 2.2% 27.2% 14.0% Gain on Lot Sale* 11.8% Banking Banking 53.3% 52.1% *Including Php0.9 B net income realized from the lot sale t
Slide 17: Rising Together to New Heights
Rising Together to New Heights Partners for Good
Slide 18: PH Big Three Banks Adequately Capitalized
PH Big Three Banks Adequately Capitalized The country’s largest banks have substantial capitalization above the minimum set by BSP December 31, 2009 September 30, 2020 Global Financial Crisis Covid-19 Pandemic CAR Tier 1 CAR CET1 19.9% 19.0% 14.3% 14.7% 16.4% 13.0% 15.5% 12.2% 14.3% 13.2% Min. CAR 1
Slide 19: Peer Banks Highlights 9M 2020
Peer Banks Highlights 9M 2020 Pre-Provision Operating Profit (Php Billion) NPL Ratio (%) +0.77% +0.73% +1.17% +41.3% 2.98% +13.3% +22.1% 2.25% 1.97% 53 52 41 BDO MBT BPI BPI MBT BDO Net Interest Margin – NIMs (%) NPL Coverage (%) +78% +24bps +20bps +18bps -30.2% +1.1% 4.36% 4.11% 3.51% 174% 138% 100
Slide 20: Asset Quality
Asset Quality Metrobank proactively beefed up provisions even as NPL formation remained benign NPLs amount (Php Bn) NPL Ratio better than industry 28.3 MBT UKB 21.4 2.96% 19.3 2.30% 1.52%1.60% 1.30% 1.60% 9M 2019 FY 2019 9M 2020 9M 2019 FY 2019 9M 2020 Provision and Credit Cost NPL Cover Provisions
Slide 21: Meaningful Awards
Meaningful Awards 2020 October 2020 July 2020 June 2020 Best Investment Bank in the Philippines Cesar E.A. Virata Award Best Securities House 7th consecutive year Best Broker in the Philippines 22
Slide 22: Federal Land
FEDERAL LAND GT Capital Holdings GT CAPITAL ' HOLDINGS INCORPORATED
Slide 23: Residential Supply and Demand 9M2020
Residential Supply and Demand 9M2020 Metro Manila Residential Condominium Supply and Demand 60,000 53K 54K 50,000 44K 40K 42K 43K 42.4K 40,000 33K 33K 34K -28% 32K Units vs. 9M19 30,000 28K -38% 25K vs. 9M19 20,000 17K 10,000 0 2014 2015 2016 2017 2018 2019 9M2020 Launches (Supply) Pre-sales (Demand
Slide 24: Office Supply and Demand 9M2020
Office Supply and Demand 9M2020 Metro Manila New Office Supply vs. Vacancy Rate 6.0% 6.0% 7.1% 1.4 5.0% 5.3% 5.9% 4.0% 3.0% 1.2 1.1 1.1 1.0 1 0.9 0.9 GLA in Mn SQM 0.8 0.8 0.6 0.6 0.6 0.6 0.6 0.6 0.5 2020E 0.4 0.4 0.3 0.4 0.2 -71% 0.2 vs. 9M19 0 vs. +0.6 -0.2 -0.1 9M19 2013 2014 2015 2016 2017 2018
Slide 25: Federal Land Recent Developments
Federal Land Recent Developments Cumulative Reservation Sales (Php Mn) Digital Project Inquiries +695 M +1,107 M +423 M ECQ MECQ GCQ MECQ GCQ +280 M +648 M 11,316 +1.9 B +242 M 10,198 10,621 +4 B 8,443 9,091 1,646 1,579 1,674 80% vs. pre-ECQ 7,922 8,164 6,081 1,271 1,087 891 716 2,394 559 407 Jan Fe
Slide 26: POC Delay Consequences
POC Delay Consequences • Lump sum payments awaiting turnover of units to buyers • Php4.6 B / Php8.3 B lump sum payments awaiting turnover of units 2020-2021 • Buyers with 10% equity eligible for revenue recognition but lacking POC • Php0.9 B / Php7.7 B realizable with POC improvement 2020-2021 27
Slide 27: Rising Together to New Heights
Rising Together to New Heights Partners for Good
Slide 28: Monthly Volume Dashboard
Monthly Volume Dashboard ° fin & RAGE DAILY TRAFFIC In Thousands Ge AVE North Luzon Expressway fa) ey Aa 230 a 238 244 99 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Subic-Clark-Tarlac Expressway 2 4g?) 40 3944 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cavite Expressway 449°) 41 ‘ 112 . Ja
Slide 29: Rising Together to New Heights
Rising Together to New Heights Partners for Good
Slide 30: Insurance Industry Updates: Premium Income vs. PSEi
Insurance Industry Updates Life Insurance Premium Income vs. PSEi Level 250,000 * 9,000 Industry Premium Income (Php Mn) PH Investment Grade Rating, 8,000 Typhoon Yolanda 200,000 7,000 Average PSEi Level 6,000 150,000 Global Financial Crisis, US Inverted 5,000 Fed rate cuts, QE Yield Curve Fed “Tape
Slide 31: Insurance Industry Updates: Premium Income vs. GDP
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% 4.1% -2.0% 0% -4.0% -10% -3% -6.0% -7%
Slide 32: Insurance Rankings as of Full-Year 2019
Insurance Rankings as of Full-Year 2019 Life Insurance Market Share 17% based on Premium Income 12% 11% 8% 7% 7% 6% 5% 4% 4% Sun Life PRU Life UK Manulife BPI-Philam Philam Life BDO Life Insular Life FWD Allianz PNB General Insurance Market Share based on Premiums Earned 9% 7% 7% 7% 6% 6% 6% 4% 3% 3
Slide 33: AXA Recent Developments
AXA Recent Developments Life Annualized Premium Equivalent (APE) Non-Life Gross Written Premiums (GWP) In Php Mn In Php Mn 557 594 601 621 611 505 568 578 572 578 478 459 477 537 447 446 472 482 390 416 -25% 571 404 -10% 353 353 354 543 369 391 319 396 293 239 375 242 232 204 Jan Feb March Apr May J
Slide 34: Rising Together to New Heights
Rising Together to New Heights Partners for Good
Slide 35: Automotive Sector Updates
Automotive Sector Updates Industry Monthly Retail Vehicle Sales -67% -29% -29% -14% 6% Units 2019 Units 2020 % YoY -39% 32,539 36,150 37,630 37,630 30,160 32,678 29,007 34,025 35,267 34,504 19,804 12,104 30,610 -100% -85% -53% 26,828 26,087 22,249 26,595 133 5,149 16,552 -36% Jan Feb Mar Apr May Jun
Slide 36: Automotive Sector Updates
Automotive Sector Updates Monthly Inquiries Monthly Inquiries (NCR and Outside NCR) 13,640 14,344 15,383 13,143 16,791 18,366 70% 68% 69% 63% 64% 73% 73% 100% May June July Aug Sep Oct 30% 32% 31% 37% 36% 27% 27% 0% %Online 65% 36% 37% 37% 41% 42% Mar Apr May Jun Jul Aug Sep Oct %Walk-in 18% 39% 38%
Slide 37: Auto Industry Sales by Vehicle Type 10M 2020
STRICTLY CONFIDENTIAL Automotive Sector Updates Auto Industry Sales by Vehicle Type 10M 2020* SMALL PC SUV OTHERS 9% SMALL PC 22% MPV 20% PC HATCHBACK PC HATCHBACK PICK-UP 9% PICK-UP SUV 20% 20% Toyota launched models in segments that are in high demand in the Philippines. *October CAMPI figures onl
Slide 38: New Model Launches 2020
STRICTLY CONFIDENTIAL New Model Launches 2020 Monthly Inquiries 5,000 4,000 4,046 3,059 Rising number of 3,000 2,200 monthly inquiries 2,000 following the launch 2,001 1,000 of the new models 0 243 May Jun Jul Aug Sep Oct Wigo Vios Corolla Cross Hilux Fortuner JUNE JULY AUGUST SEPTEMBER OCTOBER 40
Slide 39: Updates on Toyota Financial Services
Updates on Toyota Financial Services Penetration Rate Applications 2019 2020 40% Toyota Market 80% 20 % pay in cash 22,183 of Toyota car 21,442 Share buyers choose financing 18,347 17,659 16,488 16,540 15,118 14,461 14,485 15,222 9M 2019 9M 2020 16,941 14,481 15,004 13,912 21% 79% 39% 61% 11,533 8,5
Slide 40: Joint Venture with Premium Group Warranty
July 2020 Joint Venture with Premium Group Warranty Rationale ✓ Provide inspection and warranty service to the used car sector ✓ Underpenetrated sector; no significant Philippine competitors ✓ Number 1 warranty co in Japan ✓ First-mover advantage ✓ Continues auto value-chain expansion 43
Slide 41: Joint Venture with Japan Bike Auction
March 2019 Joint Venture with Japan Bike Auction (JBA) Rationale ✓ Provide better organization and price transparency in the used- car segment ✓ Underpenetrated sector; no significant Philippine competitors ✓ Number 1 auction house in Japan ✓ First-mover advantage ✓ Continues auto value-chain expans
Slide 42: Acquisition of Toyota Santa Rosa Dealership
October 2020 Acquisition of Toyota Santa Rosa Dealership Dealer network expansion Strategic partnership w/ best-in-class brand • One of Japan’s leading dealership groups Toyota Subic Toyota Cubao • TCS’s first joint Toyota Marikina venture outside Japan Toyota Manila Bay Toyota Abad Santos 7 • Gives
Slide 43: Moving Forward
GT CAPITAL HOLDINGS INCORPORATED Moving Forward 2
Slide 44: Key Performance Indicators vs. Pre-Covid levels
Key Performance Indicators vs. Pre-Covid levels Net Interest Income (Php B) Retail Vehicle Sales (‘000 Units) Reservation Sales (Php B) 23.1 16.4 3.7 14.6 14.1 12.3 12.9 13.9 3.1 10.711.7 13.1 13.5 21.4 21.4 11.4 11.4 2.4 2.5 8.8 8.0 2.2 7.5 9.3 2.0 20.8 1.9 1.5 19.7 4.5 1.2 1.1 0.4 0.7 1.1 8.9 2.4
Slide 45: Parent Financial Highlights Dashboard
Parent Financial Highlights Dashboard Unutilized Strong position Net gearing and Parent 2.3x Short-Term Lines Net Debtcoverage interest to Bank covenant Equity Php34 B ratios 1.1x At various scenarios Internal target Conso Cash Php17 B 0.6x As of 9M2020 Parent Cash Php10 B Continued financial health
Slide 46: Reduced capex
Group Capex in Billion Php Original Budget Revised Budget Actual 9M Prudent practices 3.0 3.0 2.225 4.900 4.447 0.514 0.190 0.156 0.058 0.500 0.150 0.328 --- 0.033 --- 0.200 0.038 0.023 7.356 0.718 0.718 0.255 0.121 0.285 Reduced Parent 12.0 2.363 1.336 capex 28.4-30.4 11.026 5.487
Slide 47: Redemption of Shares
NLEX-SLEX Connector Road NAIA Expressway Redemption of Shares C-5 South Link Entertainment City CAVITEX LRT-1 Area in hectares Extension Lancaster (Imus and Alabang General Trias) Bellefort (Bacoor) 592.28 88.50 CALAX MCX Carmona 20.29 Daang Hari Shaw, Mandaluyong 0.46 CALAX Exit 1 CALAX Santolan, Q
Slide 48: Monetization of Land Assets
Monetization of Land Assets 14 October 2020 Land sale of 15 hectares 17-Q FS Notes: Material Subsequent Event Php0.9 B net income realized from lot sale
Slide 49: Slide 49
Slide 50: aor
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Slide 51: Summary
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Slide 52: Our Key Messages
Our Key Messages • 3Q 2020 results show signs of recovery, versus 2Q 2020. • Return to MECQ in August reversed growth momentum. • GT Capital component companies continue to approach pre-COVID levels. • We expect strong 4Q 2020 finish and even stronger 2021 recovery. • Number of new COVID cases is no
Slide 53: Thank You!
Thank You! Partners for Good For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph
Slide 54: Investor and Analyst Briefing
17 November 2020 January to September 2020 Financial and Operating Results Investor and Analyst Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com
Slide 55: Ask your question via the Zoom Q&A Function
Ask your question via the Zoom Q&A Function (Your name)(space)(Your institution) (space)(Your question) You may also use Zoom’s Raise Hand function and we will call on you gtcapital.com.ph/investor-relations 63
Slide 56: Investor and Analyst Briefing
17 November 2020 January to September 2020 Financial and Operating Results Investor and Analyst Briefing For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph Music from Bensound.com