Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — H1 2021 Earnings Presentation
41 slides from Gt Capital's earnings presentation, Aug 17, 2021
Slide 1: First Half 2021 Financial and Operating Results Briefing
First Half 2021 Financial and Operating Results Briefing via Zoom Tuesday, 17 August 2021 2:30PM For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph
Slide 2: Macroeconomic Overview
First Half 2021 Macroeconomic Overview 2
Slide 3: Macroeconomic Overview: GDP and Inflation
Macroeconomic Overview PHL no longer in recession, ending 5 quarters of negative growth GDP GDP (Quarterly %YoY) GDP expected to rebound in 2H21 11.8% Q2 2021 5.6 5.5 6.0 6.4 11.8 FY21 Est. Consensus New 5.0%1 Prev. 5.5% vs. 10.8% Q2 2021 consensus MBT Research 4.5% 5.5% -9.5% FY 2020 -0.7 FMIC-UA&P
Slide 4: Macroeconomic Overview: Policy Rate and OFW Remittances
Macroeconomic Overview BSP Policy Rate BSP Policy Rate 10Yr BVAL BSP expected to maintain August 12 Meeting Peaked in 2018 7.06% accommodative monetary policy Down from along with inflation YTD high of Policy Rate 2.00% 4.5% in March New Prev. Overnight Reverse 4.80% FY21 Est. 4.42% 4.46% Repurchase
Slide 5: Macroeconomic Overview: Consumer Confidence and Vehicle Sales
Macroeconomic Overview Consumer Industry Retail Vehicle Sales (Absolute YoY Change) BSP Consumer Expectations Survey Confidence 30,000 25 13.1 15 20,000 No survey in March 2020 -30.9% Q2 2021 10,000 5 -5 vs. -34.7% Q1 2021 0 -15 -10,000 -25 Consumer Outlook: -22.5 -35 -20,000 Next Quarter: +0.7% -30
Slide 6: 2021 Quarantine Status and Vaccine Arrivals
2021 Quarantine Status and Vaccine Arrivals Surge Delta Variant MECQ E Quarantine Status GCQ ECQ Enhanced Modified Enhanced GCQ C To be determined General Community Community (NCR+) Quarantine Quarantine Community Quarantine (with restrictions) Q Vaccine Doses in PH 42.6 Delivered (higher vs. 30.5 e
Slide 7: GT Capital Group Vaccination Program
GT Capital Group Vaccination Program GT Capital commenced its vaccination program in partnership with the Manila Doctors Hospital and ActiveOne Health, Inc. on July 5, 2021 at Le Pavilion, Pasay City and at the Grand Hyatt, BGC. #healinGTogether #GTHasGotYourVacc #VaxForMetrobankGroup We pre-ordered
Slide 8: Consolidated Financial Highlights
Consolidated Financial Highlights 8
Slide 9: GT Capital Financial Highlights 1H 2021
GT Capital Financial Highlights 1H 2021 Consolidated Php6.7 Billion1 143% Core Php5.8 Billion 83% Net Income Php2.7 Billion 1H 2020 2 YoY Net Income Php3.2 Billion 1H 2020 YoY Operating Income Revenues Gross Premium Reported N.I. Revenues P51.5B -22% P5.1B +21% P22.1B +33% P10.4B +243% P63.7B +70% N
Slide 10: GT Capital Net Income Contribution
GT Capital Net Income Contribution TFSPH TMBC GTCAD AXA TFSPH 2.1% -1.0% -0.3% GTCAD 4.1% -0.1% TMBC AXA 0.3% 0.5% 7.7% TMP TMP 10.2% MPIC MPIC 19.7% 9.4% 19.0% FLI 3.4% FLI MBT 6.7% MBT 67.6% 49.7% MBT + TMP = 77.7 % MBT + TMP = 69.3% 1H 2020 1H 2021 10
Slide 11: Component Company Highlights
Component Company Highlights 11
Slide 12: Metrobank Financial Highlights
& Metrobank You're in good hands Financial Highlights
Slide 13: Metrobank Financial Highlights 1H 2021 (Loans and CASA)
Metrobank Financial Highlights 1H 2021 Gross Loans (Php B) Performance of MBT Loans mirror GDP (pre-COVID loans 1.5x to 2.0x GDP) % Commercial % Consumer MBT Loans (%YoY) PH GDP (%YoY) 12% -11%YoY 1,364 6% 1,207 25% 23% -1% -3% 75% 77% 88% Corp. -4% 12% SME -10%-12% -8% -13% -11% -17% -17% 1H2020 1H
Slide 14: Metrobank Financial Highlights 1H 2021 (Income and NIM)
Metrobank Financial Highlights 1H 2021 Operating Income (Php B) MBT NIMs vs. BSP Policy Rate Non Interest Income Net Interest Income MBT NIM BSP Policy Rate • Lower lending 4.8% rates; credit 65.7 51.5 -22% 4.5% 4.1% 4.1% 4.4% 4.1% card rate cap 4.0% 3.7% 21.2 3.5% 3.4% • Decline in 14.0 -34% 3.8% 3
Slide 15: Summary of Key Messages
Summary of Key Messages • Metrobank reported net income growth of 28% • Strong fee-based income, CASA growth, flat OPEX, and lower provisions cushioned weak loan demand and lower NIMs • The Bank maintains prudent and anticipatory risk management posture • High capital ratios ensure adequate buffers
Slide 16: Property Industry Highlights
Property Industry Highlights 16
Slide 17: Residential Supply and Demand 1H 2021
Residential Supply and Demand 1H 2021 Metro Manila Residential Condominium Supply and Demand Residential Demand Mix High End Luxury Upscale Launches (Supply) Pre-sales (Demand) Middle Income Lower Middle 60,000 53K 54K 2% 50,000 10% 36% 42K43K 42K 22k units 40,000 1H 2021 33K33K 34K 32K 31K 52% Unit
Slide 18: Office Supply and Demand 1H 2021
Office Supply and Demand 1H 2021 Metro Manila Office Supply, Demand, Vacancy Rate Office Demand Mix Office Supply (Incremental) Office Take-up (Incremental) Vacancy Rate (Cumulative) BPO POGO Others 14.4% 10.6% 6.0% 3.0% 6.0% 5.3% 4.9% 1.2 0.29M 1.1 1.1 sqm 44% 1.0 55% 1H 2021 1.0 0.9 0.9 0.8 1% 0.8
Slide 19: GT Capital Holdings Financial Highlights
GT Capital Holdings Financial Highlights Gi GT CAPITAL HOLDINGS INCORPORATED 19
Slide 20: Federal Land Financial Highlights 1H 2021
Federal Land Financial Highlights 1H 2021 Monthly Reservation Sales (Php M) Contractor Manpower Deployment (% of Pre-Quarantine) 2020 2021 2020 2021 89% 89% 3,687 80% 73% 75% 72% 75% 2,384 62% 59% 1,825 1,177 1,426 765 901 645 1,094 915 1,073 918 39% 34% 43% 41% 279 423 700 242 1,363 823 4% 5% Jan F
Slide 21: Summary of Key Messages
Summary of Key Messages • Monthly reservation sales tempered by absence of project launches. Php12.7B in unsold inventories • Stable demand for Federal Land’s key segments (mid, high-end, and luxury categories) • Construction workforce deployment (vs. pre-quarantine) at 89% in June. Facilitating lum
Slide 22: Financial Highlights
Financial Highlights 22
Slide 23: AXA Financial Highlights 1H 2021
AXA Financial Highlights 1H 2021 Life APE Product Mix (In %) Key Messages 1% Life 0% RP-UL 23% • Strong performance in Life Insurance. APE +34% 48% 34% 43% P&H Single Premium Unit Linked (SP-UL) APE SP-UL 28% +96%, contribution to APE at 34% 23% Others Clients bargain hunting in capital markets*
Slide 24: Financial Highlights
Financial Highlights 24 24
Slide 25: MPIC Financial Highlights 1H 2021
MPIC Financial Highlights 1H 2021 Meralco Metro Pacific Tollways Key Messages Energy Sales PH Average Daily Traffic • MPIC: 1H2021 Core Income increased by 22,663 GWh +7% 744k +30% 13% due to higher contribution of its toll Core Income Core Income and power segments P11.4B +8% P1.9B +105% • Meralco:
Slide 26: Automotive Industry Highlights
Automotive Industry Highlights 26 26
Slide 27: Automotive Industry Highlights 1H 2021
Automotive Industry Highlights 1H 2021 Industry Monthly Retail Vehicle Sales (In Units) Retail Vehicle Sales 2021 2020 2019 27,863 1H 2021 as a % of: 139,949 Units 21,913 22,999 23,494 18,871 1H 2019 1H 2020 1H 2021 24,809 72% 151% +51.2%YoY vs. 92,564 1H 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 28: Toyota remains dominant: 45.6% market share in 1H 2021
Toyota remains dominant Overall Market Share as of Jun 2021 YTD 45.6% in 1H 2021 1H2021 1H2020 20 On track to achieve 38.5% th No.1 No.1 No.1 Passenger Commercial Overall Car Sales Vehicle Sales Sales CONSECUTIVE TRIPLE CROWN 14.5% 7.1% 7.0% 6.5% 4.8% 4.5% 4.4% 3.0% 1.3% 0.6% 0.4% 0.3% MITSUBISHI SU
Slide 29: Toyota Retail Sales Highlights 1H 2021
Toyota Retail Sales Highlights 1H 2021 20 TMP Sales in Metro Manila vs. Outside Metro Manila (% of total) On track to achieve Metro Manila Outside Metro Manila th 67% 63% 63% 64% 60% 58% 58% 60% 53% 51% 42% 42% CONSECUTIVE 40% 40% 36% 37% 36% TRIPLE CROWN 33% 46% 48% Toyota Market Share 2012 2013 20
Slide 30: Toyota New Model Launches
Toyota New Model Launches Performance Line 2019 TMP is expanding its GR Performance Line to strengthen its market coverage March 2021 July 2021 Source: TMP 30
Slide 31: Dealership Expansion
Dealership Expansion June 2021: Opening of 72nd Dealership in Dipolog City, Zamboanga del Norte September 2021: Opening of 73rd Dealership in Lucena City, Quezon 31
Slide 32: Digitalization
Digitalization Launched August 10, 2021 32
Slide 33: Removal of Safeguard Duties on Imported Vehicles
Removal of Safeguard Duties on Imported Vehicles TARIFF COMMISSION FINDINGS (TCI No. SG-2021-OC-Motor Vehicles) – July 22, 2021 • “Considering that CBU passenger cars and CBU light commercial vehicles were not imported in increased quantities (whether absolute or relative to domestic production) dur
Slide 34: Recent Developments
GTCAD) GT CAPITAL AUTO DEALERSHIP HOLDINGS, INC. Recent Developments GT CAPITAL ‘ . q . HOLDINGS INS OO ATE 4
Slide 35: Updates on JBA Philippines and Premium Warranty
Updates on JBA Philippines and Premium Warranty Expanded online bidding and sale of pre- Pre-owned vehicle 187-point owned vehicles for all brands inspection More organized and transparent buying and Warranty coverage on 200+ selling experience (B2B) parts for pre-owned vehicles Target start
Slide 36: Automotive Sector Summary of Key Messages
Automotive Sector Summary of Key Messages • Despite the re-imposition of ECQ in March and the impact of the safeguard duties on sales of imported vehicles, TMP delivered strong results in the first half of 2021 • Toyota outperformed the auto market in 1H 2021 with sales of 63,758 units and market sh
Slide 37: Moving Forward
Gh ~ GT CAPITAL HOLDINGS INCORPORATED TT. Moving Forward
Slide 38: Key Performance Indicators
Key Performance Indicators 2021 2020 2019 Bloomberg Consensus GDP GDP (%YoY) Net Income (Php B) Retail Vehicle Sales (‘000 Units) 11.8 7.1 6.2 13.1 11.7 11.2 7.8 10.8 10.8 9.2 -3.9 8.6 Q1 Q2 Q3 Q4 Q1 1H 9M FY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales in APE (Php B) Reservation Sales (Php
Slide 39: Gradually Approaching Pre-COVID Levels
Gradually Approaching Pre-COVID Levels Core Net 2019 (Banner Year) 2020 2021 Income 15.8 6M2021 12.4 78% 7.4 7.4 5.8 of 6M 2019 3.4 2.8 3.2 3.7 3.4 183% of 6M 2020 3M 6M 9M FY 3M 6M 9M FY 3M 6M Consolidated 2019 (Banner Year) 2020 2021 Net Income 6M2021 20.3 15.3 92% of 6M 2019 7.3 6.5 6.7 3.4 2.5 2
Slide 40: Our Key Messages
Our Key Messages • GT Capital’s capacity to bounce back under GCQ conditions indicates resilience of underlying core businesses, outpacing industry growth in certain sectors • Strong Group-wide performance led to significant earnings growth in 1H 2021 and are now 80% of 2019 pre-Covid levels • Liqui
Slide 41: Thank You!
Thank You! First Half 2021 Financial and Operating Results Briefing via Zoom Tuesday, 17 August 2021 2:30PM For more information, Visit gtcapital.com.ph/investor-relations or contact IR@gtcapital.com.ph