Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q3 2018 Earnings Presentation
13 slides from Shell Pilipinas's earnings presentation, Nov 12, 2018
Slide 1: Third quarter 2018 results
Third quarter 2018 results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation November 12, 2018 1
Slide 2: Definitions and cautionary note
Definitions and cautionary note References in this presentation to “our Company” or the “Corporation” and to “PSPC” refer to SHLPH. The words “we”, “us” and “our” are used to refer to SHLPH or to those who work for SHLPH. This presentation contains forward-looking statements concerning the financial
Slide 3: Summary
Summary Pursue Fueling Key messages profitable fuel progress for ▪ Positioned to deliver high dividend yield growth ▪ Strong free cash flow outlook opportunities the Filipino ▪ Unchanged cash priorities ▪ Focus on capital discipline and high returns Reliable & Capture non- efficient 3Q 2018 fuels gr
Slide 4: Financial highlights
Financial highlights Net income up 8% driven by resilient marketing earnings and inventory holding gains 7.2 NIAT (PHPb); EPS +8.5% vs PY 4.2 Total volume (Bn litres) Pbn 8 6 8.8 Cash flow from operations (PHPb) 6.3 Free cash flow (PHPb) 4 2 0 27 Rolling ROACE (%) YTD 3Q15 YTD 3Q16 YTD 3Q17 YTD 3Q18
Slide 5: Robust marketing delivery, refining margins start to rise in 3Q
EBITDA adjusted for COSA stands at PHP6.4b Robust Pbn 10 marketing delivery, refining 6 margins start to rise in 3Q 2 YTD 3Q15 YTD 3Q16 YTD 3Q17 YTD 3Q18 -2 Marketing Refinery and supply Sales volume growth Retail volume growth Premium fuel penetration Strong marketing delivery Marketing gro
Slide 6: PSPC continues to deliver industry-leading ROACE and robust cash flow
Capital Investments + ROACE PSPC continues Pbn to deliver 3 35% industry - 24% 27% leading ROACE 2 22% and robust cash flow 1 0 0% YTD 3Q16 YTD 3Q17 YTD 3Q18 Retail Others Commercial ROACE Cash flow from operations Average capital employed + Gearing Pbn Pbn 8 60 29% 40% 22% 22% 4 30 CFFO remains str
Slide 7: Network efficiency and retail fuels
V-Power penetration at par with FY16 level Robust despite ~40% higher pump prices earnings PHP/l Favorable product mix and most 60 26% 27% 26% 30% preferred brand in the country despite ~25% increase in 30 pump prices Retained high premium vs PY fuel penetration at 26% 0 0% YTD 3Q16 YTD 3Q17 YTD 3Q1
Slide 8: Non-fuels retailing business continues to enjoy double-digit growth
Non-fuels On track to delivery new store growth retailing YTD 3Q18 Store count Guidance Total business New sites continues to Select 15-20 27 129 enjoy double- deli2go 15-20 14 55 digit growth Lube bay 30-50 48 310 Non-fuels contribution to retail margins ~11% ~12% Convenience retailing continues to
Slide 9: Increased premium product penetration in key segments
Commercial fuels Increased Higher premium penetration softens impact of decline in power sector demand premium product penetration in Aviation key segments Strong volume growth from new deals and higher liftings Lubricants Most preferred brand across different Maintained long relationship with partn
Slide 10: Marketing strategies supported by a reliable and efficient supply chain
Marketing strategies supported by a reliable and efficient supply chain Tabangao Refinery North Mindanao Import Facility ▪ Slight recovery in regional refining ▪ 18M man-hours free of Loss Time margins from 1H2018 Incidents ▪ Improved reliability with lowest ▪ 99.3% on-time and in-full pick-up unpla
Slide 11: Trusted partner in nation building and leading corporate governance
Trusted Asia Corporate Excellence partner in Awards (ACES) nation Pilipinas Shell was hailed as “Asia’s Community Care Company of the building and Year” for its Movement Against leading Malaria and Gas Mo, Bukas Ko (You fuel my future) advocacies. corporate governance Agora Awards The Philippine Mar
Slide 12: Update on key strategies
Strategy Update on key strategies Selectively pursue Maintain a reliable and Leading corporate Capture non-fuel related profitable fuel efficient manufacturing governance and world growth opportunities opportunities and supply chain class talent development PSPC priorities Delivery ▪ Maximizing cash
Slide 13: Slide 13
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