Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — Q1 2020 Earnings Presentation
41 slides from Gt Capital's earnings presentation, May 18, 2020
Slide 1: First Quarter 2020 Financial and Operating Results
First Quarter 2020 Financial and Operating Results Partners for Good 18 May 2020
Slide 2: GT Capital Group 1Q 2020 Financial Highlights
GT Capital Group 1Q 2020 Financial Highlights Php2.5 billion Consolidated Net Income (FLI +98%, MBT -8%, TMP -20% , MPI -47%, AXA -55%) -26% Php3.4 billion 1Q 2019 Php2.8 billion Core Net Income (FV adjustments for MBT, MPI, TMP and MPI non-recurring expenses) -16% Php3.3 billion 1Q 2019 Php39.0 bil
Slide 3: GT Capital Net Income Contribution 1Q 2020
GT Capital Net Income Contribution 1Q 2020 AXA TFSPH TMBC SMFC AXA TFSPH TMBC 1.6% 0.4% SMFC 4.6% 0.4% 2.5% 0.9% 0.2% 0.6% TMP MPIC TMP MPIC 7.6% 20.6% 19.2% 12.5% FLI FLI 9.9% 4.3% MBT MBT 55.6% 59.3% MBT + TMP = 76.2% MBT + TMP = 78.5% 1Q 2019 1Q 2020 3
Slide 4: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance Infrastructure 4.6% Infrastructure 2.4% 12.5% 7.6% Automotive 23.0% Automotive Property Property 9.9% 20.8% 4.3% Banking Banking Property 59.3% 55.6% 6.5% 1Q 2019 1Q 2020 4
Slide 5: COVID-19 Response: Php200 Million Pledge
COVID-19 Response Our Group stands with all Filipinos in facing the challenges Php200 Million Pledge As of May 15, 2020 Php25.4 Million Php18 Million Php10 Million Php8.8 Million Php5 Million Php4 Million deployed to Philippine National Police (PNP) and Armed Forces of the Philippines (AFP) Philippi
Slide 6: COVID-19 Response
COVID-19 Response Our Group remains steadfast in our commitment: (1) to the safety and well-being of all employees and staff, and (2) to the undisrupted delivery of products and services to customers Approx. Php1.0 Bn Employee Assistance COVID-19 testing equipment • Support for nearly 26,000 Group •
Slide 7: Banking
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Slide 8: Loose Monetary Policy and Quantitative Easing
Lose Monetary Policy and Quantitative Easing RRR cuts to support liquidity Deep policy rate cuts to record-low level 20% 20% 20% 20% 4.50% 4.75% 18% 18% 4.00% 4.00% 3.50% 4.00% 14% 12% 3.00% 2.75% 2013 2014 2015 2016 2017 2018 2019 4M20 2013 2014 2015 2016 2017 2018 2019 4M20 Supported by low inflat
Slide 9: Banking Industry Loan Growth vs. GDP Growth
Banking Industry Loan Growth vs. GDP Growth 22.0% 7.1% 6.1% 6.9% 6.7% 6.2% 8.0% 6.1% 5.9% 20.0% Loan Growth (In %) GDP Growth (In %) 6.0% Loan growth had a 18.0% 20% 19% 4.0% strong start but may be 16.0% 17% 16% 12.9% 2.0% tempered by economic 14.0% 16% 0.0% 12.0% 14% uncertainty 10.0% 11% -0.2% -2
Slide 10: Philippine Big Three Banks Adequately Capitalized
Philippine Big Three Banks Adequately Capitalized December 31, 2009 December 31, 2019 CAR Tier 1 CAR CET1 17.5% 16.2% 16.1% 14.3% 14.7% 15.2% 14.2% 13.0% 12.2% 12.6% Min. CET1 10.0% 10.5% Min. CAR Min. CAR 10.0% 8.3% 10.0% Min. CET1 6.0% MBT BPI BDO MBT BPI BDO Source: BSP, banks’ disclosures 10
Slide 11: Peer Banks Highlights 1Q 2020
Peer Banks Highlights 1Q 2020 Net Interest Margin – NIMs (%) Total Loans (Php Billion) +12.9% industry growth +45bps +22bps +24bps 4.36% 4.06% 3.63% +11.4% +7.3% +5.5% 2,275 1,448 1,435 BDO MBT BPI BDO BPI MBT CASA Deposits (Php Billion) Total Assets (Php Billion) +17.6% +17.5% +9.1% +5.5% +5.2% 1,9
Slide 12: Metrobank
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Slide 13: Metrobank Financial Highlights
Metrobank Financial Highlights Operating Income Net Interest Income +18% (77% of Operating Income) 24.6 27.6 +13% ₋ NIMs from 3.84% to 4.06% ₋ Loan portfolio +6% from Php1.36T to Php1.44T o 76% Commercial +6% 6.2 Net Int. Income in Php Billion 6.5 o 24% Consumer +6% 18.1 21.4 +18% *Auto -2%, Hom
Slide 14: Loan Portfolio
Loan Portfolio Loan* Portfolio (PHP Billion) Total Loan Portfolio Breakdown +6% Commercial Consumer 1,435 24% +6% 24% 1,360 76% +6% 76% 1Q 2019 1Q 2020 *Loans = Loans and Receivables, Net 1Q 2019 1Q 2020 FY 2019 Loan Portfolio by Industry Consumer Loan Portfolio Breakdown Real Estate Credit 15% Manu
Slide 15: Asset Quality
Asset Quality NPLs1 amount (Php Bn) NPL Ratio2 better than industry -4%YoY MBT UKB 1.74% 21.0 1.55% 1.55% 1.60% 19.3 20.2 1.40% 1.30% 1Q 2019 4Q 2019 1Q 2020 1Q 2019 4Q 2019 1Q 2020 UKB as of Feb. 2020 3 Provision and Credit Cost NPL Cover Provisions for Credit (Php Bn) Est. Credit Cost (bps) 140 71
Slide 16: 633 out of 960 Branches Open
Initiatives during ECQ period % Open Branches as of April 30 Waived Interbank Fund Transfer Fees 66% 633 out of 960 Waived Interbank Fund Transfer 30-day Grace Period Branches Open Through Even before the Bayanihan Act* Location NCR Luzon Visayas Mindanao Branches 442 181 121 86 *30-day grace period
Slide 17: Automotive
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Slide 18: Historical Retail Vehicle Sales vs. Philippine GDP
Historical Retail Vehicle Sales (%YoY) vs. Philippine GDP (%YoY) 1Q20 2004 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 60% Asian 9/11 US Recession Global Japan Earthquake TRAIN 8.0% Financial SARS Outbreak Financial and Tsunami (
Slide 19: Retail auto unit sales volume
Retail auto unit sales volume As of March 2020 YTD In Units 1Q 2020 results: Industry • Jan: Taal Volcano eruption 96,920 70,730 -27% • Feb: Restoration of supply and opening of affected dealers in CALABARZON Y-o-Y • March: Imposition of ECQ 33,554 Toyota 25,696 o Sta. Rosa Assembly Plant, NCR/Luzon
Slide 20: Overall Market Share 1Q 2020
Automotive Sector Updates Overall Market Share 1Q 2020 1Q 2019: 35% FY 2019: 40% 36% 24,243 Unit difference No.1 No.1 No.1 Passenger Commercial Overall 18% Car Sales Vehicle Sales Sales 12% 8% 6% 6% 6% 3.7% 2.9% 1.3% 0.7% 0.5% 0.3% MITSUBISHI NISSAN HYUNDAI HONDA FORD SUZUKI ISUZU OTHERS KIA MAZDA S
Slide 21: Auto Industry Market Share 1Q 2020
Automotive Sector Updates Auto Industry Market Share 1Q 2020 Passenger Car Commercial Vehicle 1Q 2019: 39% 1Q 2019: 33% 45% 33% FY 2019: 38% FY 2019: 43% 28.3% overall 71.7% overall 34.9% Toyota 19% 65.1% Toyota 15% 14% 14% 12% 8% 6% 5% 6% 5% 4% 2.6% 3% 3.4% 2% 1% 0.2% 0.8% 0.6% 0.3% 0.1% 0.7% 0.3%
Slide 22: CARS Unit Sales Progress
CARS Unit Sales Progress Units sold of Toyota Vios since launch of CARS Program model launched in July 2018 to date (cumulative) March 2020 March 2019 Dec 2019 55,201 18,423 44,500 Sept 2018 June 2019 Aug 2018 3,503 26,933 1,658 Dec 2018 11,336 Introduction of FMC Vios July 2018 222
Slide 23: Toyota Motor Philippines
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Slide 24: TMP Financial Highlights
TMP Financial Highlights Revenues WSV -20.9% to 25,636 units; RSV-23.4% (vs - 27.0% Industry) o CKD units -14.4% 33.8 28.8 -15% o CBU units -24.2% in Php Billion RSV (YTD): o PCs: Vios -20%, Wigo -37%, Corolla +39% o CVs: Hiace -6%, Innova -21%, Hilux -42%, Fortuner -42% Rush +38% 1Q 2019 1Q 202
Slide 25: COVID-19 Response and Initiatives During ECQ
COVID-19 Response and Initiatives During ECQ Transportation for frontliners Donation of medical supplies • Donations to Santa Rosa Community hospital through TMP Foundation o 154 isolation gowns • 49 Toyota vehicles lent out to healthcare workers o 92 surgical gowns • 10 Toyota shuttles for UP-PGH e
Slide 26: Dealership Update
Dealership Update Restart operations of Toyota Dealer Network after the ECQ Location NCR Luzon Visayas Mindanao Total Open as of May 1 (GCQ) 0 7 7 6 63 +Addt’l. from May 16-20 (MECQ) 18 20 1 4 vs. Total Dealers 19 28 14 10 71 % Open 95% 96% 57% 100% 89% Measures in accordance with DOH & WHO: • Tempe
Slide 27: Products and Services for the New Normal
Products and Services for the New Normal
Slide 28: Property Development
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Slide 29: Federal Land
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Slide 30: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues Reservation sales +86% from Php4.2B to Php7.9B due to TSR Natsu, The Estate, +33% GHR2, Quantum Amethyst and TSR Haru 3.3 Real estate sales +35% from Php1.8B to 2.4 in Php Billion Php2.4B due to Park Ave and Palm Beach West projects 10.5 Equity in net
Slide 31: COVID-19 Response and Initiatives During ECQ
COVID-19 Response and Initiatives During ECQ • Waived penalties and interest from March 16, 2020 to June 14, 2020 • Intensified disinfection on all Federal Land Properties o Frequent misting of all common areas and tires of incoming vehicles o Foot bath for arriving residents • Implemented social di
Slide 32: Insurance
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Slide 33: Insurance Industry Updates
Insurance Industry Updates Life Insurance Industry Premium Income vs. PSEi Level * Industry Premium Income Average PSEi Level 240,000 PH Investment Grade Rating, 9,000 Typhoon Yolanda 8,000 190,000 7,000 Global Financial Crisis, US Inverted (Php Mn) 6,000 140,000 Fed rate cuts, QE Yield Curve 5,000
Slide 34: AXA Philippines
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Slide 35: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium Life New Business -12% from Php1.8B to Php1.5B 9.46 +27% Regular Premium (RP) -25% in Php Billion 7.43 ■ Protection & Health (P&H) +24% ■ Traditional -63% 8.12 ■ Unit-linked (UL)-37% 6.04 AXA +34% ■ Single Premium UL (SP-UL) +89% CPAIC -4% 1
Slide 36: COVID-19 Response and Initiatives During ECQ
COVID-19 Response and Initiatives During ECQ AXA Salutes and Supports Our Frontliners Support of 46 hospitals with: • 50,000 masks • 1,400+ PPEs • 20 triage tents • 19 respirators 100 deaf families assisted with translators and food packs Grace Period, Services, and Commitment to Pay Out Benefits •
Slide 37: Infrastructure and Utilities
Infrastructure and Utilities 37
Slide 38: Metro Pacific Investments
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Slide 39: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income (Core) Power -5% oGBPC - Core NI +10% Php439M oMeralco - Core NI +2% Php5.7B in Php Billion 0.1 0.1 0.2 0.1 0.9 0.9 ■ Rail 1.1 0.9 ■ Hospitals Toll Roads - Core NI -18% Php0.9B ■ Water ■ Toll 2.7 2.9 ■ Power Water - Core NI -12% Php
Slide 40: COVID-19 Response
COVID-19 Response Php264 Million Relief Assistance Employee Care Package • 1,000 rice sacks and 1,000 grocery bags to Province • Continued salaries and benefits during ECQ period of Cavite • Advance payment of mid-year bonuses • Grocery bags, food packs, mats, blankets, water • Provisions for hygien
Slide 41: Thank You!
GT CAPITAL HOLDINGS INCORPORATED THANK YOU! Partners for Good