Philippine Seven Corporation · PSE:SEVN

Philippine Seven — Q3 2024 Earnings Presentation

16 slides from Philippine Seven's earnings presentation, December 2024

  1. Slide 1: Q3 2024 Investor Briefing

    Q3 2024 Investor Briefing investor-relations@7-eleven.com.ph

  2. Slide 2: A Global Brand

    A Global Brand Norway: 113 Sweden: 78 South Korea: 12,382 Canada: 585 United States: 13,212 China: 2,196 Denmark: 175 Japan: 21,615 Taiwan: 7,052 Mexico: 2,025 Hong Kong: 1,088 Vietnam: 118 83,700+ India: 57 Philippines: 4,022 STORES Thailand: 15,053 Cambodia: 98 WORLDWIDE Singapore: 487 Malaysia: 2

  3. Slide 3: Global Recognition

    Global Recognition First Asian to be elected, ended his term this October, though remained member of the Executive Committee and Chair of the International Board

  4. Slide 4: Shareholding Structure

    Shareholding Structure Present Agus Development Corp. Ownership 3% Structure ** Others-Filipino Others-Foreign 11% 4% % ownership Progressive Development Corp. President Chain Store (Labuan) Holdings, Ltd * 55.32% 2% Asian Holdings Corp. Others-Foreign 10.99% 7% President Chain Arisaig Asia Consumer

  5. Slide 5: SEVN Share Information

    SEVN Share Information Price (Dec. 10, 2024) PhP 67.50 Hi/Low (52-week range) PhP 35.00 – PhP 75.00 Free Float 29.7% Outstanding Shares 1.512 billion Market Capitalization USD 1.76 billion Listing Date Feb. 4, 1998 Dividend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2

  6. Slide 6: Philippine economy grew slower to 5.2% in Q3 from 6.4% previous quarter

    Philippine economy grew slower to 5.2% in Q3 from 6.4% previous quarter as inflation accelerated to 2.5% in November +14%

  7. Slide 7: Retail Landscape

    Retail Landscape Value Share of Trade per Channel (as of Sep. 30) +14% o Sari-sari stores contracted, while market stalls gained o Share of supermarket decreased, while groceries slightly declined o Convenience store share improved to 4.56% from 4.0%

  8. Slide 8: 4,000th Store Milestone

    4,000th Store Milestone +14%

  9. Slide 9: Store Network as of Sep. 30, 2024

    Store Network as of Sep. 30, 2024 7-Eleven By Location Store Count % Jan. 1 Opening Closure Sep. 30 Metro Manila 1,094 35 13 1,116 28% Luzon-ex MM 1,730 135 6 1,859 46% Visayas 541 54 2 593 15% Mindanao 403 55 4 454 11% Total 3,768 279 25 4,022 100% + 500 new 2019 2020 2021 2022 2023 2024* 2025 Targ

  10. Slide 10: 9M 2024 Financial Performance

    9M 2024 Financial Performance SYSTEM-WIDE SALES OPERATING P68.8 billion NET INCOME CASH FLOW +16.5% P2.58 billion P9.02 billion OPERATING REVENUE +13.7% P64.9 billion +35.5% +16.2% Quarterly Net Income Trend 1,400 1,200 1,000 800 600 400 200 - (200) (400) (600) 112.2 2014 2015 2016 2017 2018 2019 20

  11. Slide 11: Q3 sales rose 12.6%, 9M sales up 16.5%

    Q3 sales rose 12.6%, 9M sales up 16.5% Driven by SSSG of +2.7% during the quarter, YTD +5.8% and net addition of 254 stores Systemwide Sales (in billion PhP) Same Store Sales Growth 23.3% 82.2 +20.5% 28.8% 11.1% 66.0 56.3 +14% 13.0% 13.0% 46.4 47.2 10.3% 8.7% 7.4% 2.7% 18.4 22.0 20.3 23.9 20.4 22.9

  12. Slide 12: Non-alcoholic beverages posted biggest gain

    Non-alcoholic beverages posted biggest gain Contribution of high GP food service and cup drinks steady Merchandise Sales Mix Store Ownership FC 2 & 3 +20.5% 5% Beverages +14% 37% Food 45% FC 1 43% Corporate 52% Non-food 18% Operating Revenue Breakdown No. of Stores by Cluster Office Hospital Franchi

  13. Slide 13: Profitability Ratios

    Profitability Ratios (based on revenue from contracts with customers) ROE increased driven by improved profitability and the distribution of unrestricted retained earnings Operating Income EBITDA 12.8% 12.0% 12.8% 12.0% 7.7% 7.2% 11.6% 10.9% 11.3% 10.8% 10.6% 6.5% 10.0% 9.3% 5.6% 5.6% 5.7% 5.6%+14%

  14. Slide 14: Comparative Analysis

    Comparative Analysis Highest ROE and EBIT% but longest days inventory outstanding FY 2023 7-Eleven +14% Philippines Taiwan Thailand No. of stores 3,768 6,859 14,545 Operating income 6.45% 3.35% 6.24% Net margin 4.46% 5.37% 3.59% Days inventory outstanding 43.1 33.7 23.4 Days payable outstanding 45.5

  15. Slide 15: Margin Computation Guide

    Margin Computation Guide Items Accounts Formula Discussion • IFRS 15 implemented on Jan. 1, 2018 requires identification of distinct performance obligation. A Revenue from contracts with customers A.1 + A.2 + A.3 • Aggregates revenue from merchandise sales, service income and franchise revenues. • M

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