Metro Retail Stores Group, Inc. · PSE:MRSGI

Metro Retail Stores — Q3 2018 Earnings Presentation

25 slides from Metro Retail Stores's earnings presentation, Nov 23, 2018

  1. Slide 1: 3Q 2018 Earnings Call and Analysts' Briefing

    3Q 2018 Earnings Call and Analysts’ Briefing 23 November 2018 Metro Retail Stores Group, Inc. - Manila Corporate Office

  2. Slide 2: Agenda

    Agenda  3Q & 9M 2018 Financial Overview  Existing Store Network  Network Expansion Initiative  Strategic Thrust 2

  3. Slide 3: 3Q & 9M 2018 Consolidated Results

    3Q & 9M 2018 Consolidated Results Sales Revenue (in billions Php) 6.7% • 3Q and 9M sales revenue remains 24.43 22.79 subdued primarily due to the rationalization our institutional sales 2.3% operation coupled with the Ayala Center Cebu Store fire incident. 7.99 7.81 3Q 2017 3Q 2018 9M 2017 9M 2018 C

  4. Slide 4: 3Q & 9M 2018 Consolidated Results

    3Q & 9M 2018 Consolidated Results Gross Margin (in billions Php) • Gross Margin as a % of Sales continues 130 bps to reap the benefits of our Margin 5.18 5.12 80.02% 20 bps 80.02% Enhancement Plan (MEP) as it posted 19.98% 21.2% 22.5% remarkable gains (in terms of bps). 1.71 1.69 21.4% 21.6% 3Q 2017

  5. Slide 5: 3Q & 9M 2018 Consolidated Results

    3Q & 9M 2018 Consolidated Results EBITDA (in millions Php) 16.6% 779.14 25.8% 649.85 80.02% 3.2% 77.41% 2.9% 211.04 156.54 • EBITDA and Net Income posted an 2.6% 2.0% expected contraction due to some growing pains in our institutional sales 3Q 2017 3Q 2018 9M 2017 9M 2018 optimization effort and the

  6. Slide 6: 3Q & 9M 2018 Performance and Results

    3Q & 9M 2018 Performance and Results Department Store Comparable Sales (in billions Php) Store Sales with METRO Ayala Cebu Store Sales w/o METRO Ayala Cebu 11.7% 10.5% 7.27 6.42 6.40 5.79 12.8% 10.3% 2.34 2.04 2.04 1.85 3Q 2017 3Q 2018 9M 2017 9M 2018 3Q 2017 3Q 2018 9M 2017 9M 2018 6

  7. Slide 7: 3Q & 9M 2018 Performance and Results

    3Q & 9M 2018 Performance and Results Supermarket Comparable Sales (in billions Php) Store Sales with METRO Ayala Cebu Store Sales w/o METRO Ayala Cebu 14.5% 0.3% 11.00 9.40 9.41 9.38 7.6% 9.0% 3.55 3.28 3.28 3.01 3Q 2017 3Q 2018 9M 2017 9M 2018 3Q 2017 3Q 2018 9M 2017 9M 2018 7

  8. Slide 8: 3Q & 9M 2018 Performance and Results

    3Q & 9M 2018 Performance and Results Hypermarket Comparable Sales (in billions Php) Store Sales with Super METRO Anonas Store Sales w/o Super METRO Anonas 0.8% 4.0% 5.93 5.98 5.70 5.93 6.7% 10.1% 1.94 2.07 2.07 1.88 3Q 2017 3Q 2018 9M 2017 9M 2018 3Q 2017 3Q 2018 9M 2017 9M 2018 8

  9. Slide 9: Existing Store Network

    Existing Store Network 9M 2018 Composition of Store Network Luzon 13 Visayas 51 2 STORES STORES Under 27 across Luzon Rehabilitation and Visayas NCR 10 9

  10. Slide 10: Network Expansion

    Network Expansion Projected No. of Stores by 2019 Projected GFA by 2019 (in ‘000 sqm) 63 548 52 53 447 50 440 430 2016 2017 2018 2019 2016 2017 2018 2019 10

  11. Slide 11: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track 800k sqm GFA 20.8k sqm Signed Contracts As of and Term Sep 2018 142k sqm Sheets 85.7% Ongoing or 394.7k sqm Design and 685.4k sqm Operating Construction Accomplished Stores 127.9k sqm Ongoing Negotiations New Stores will mostly be Department Stores will be Supermar

  12. Slide 12: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track METRO Ayala Feliz Supermarket Soft Opening: August 2018 Department Store Est. Opening: December 2018 12

  13. Slide 13: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track METRO Capitol (Bacolod) Supermarket Est. Opening: December 2018 Department Store Est. Opening: 1Q 2019 13

  14. Slide 14: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track Super METRO Baybay Estimated Opening: 1Q 2019 14

  15. Slide 15: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track METRO Tacloban Estimated Opening: 1H 2019 15

  16. Slide 16: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track METRO Danao Estimated Opening: 1H 2019 16

  17. Slide 17: Network Expansion: We ARE on Track

    Network Expansion: We ARE on Track METRO Sum-ag Ongoing Design Estimated Opening: 2019 17

  18. Slide 18: METRO Ayala - Cebu Rebuild Program

    METRO Ayala - Cebu Rebuild Program METRO Ayala % to Store Scheduled Re-Build Phase Cebu Level Sales (2017) Re-Opening Basement 2 6% Phase 2 1H 2019 Supermarket 49% Phase 1 December 2018 Basement 1 Ground Floor 12% Phase 2 1H 2019 Second Floor 12% Third Floor 6% Fourth Floor 8% Phase 3 1H 2019 Fifth

  19. Slide 19: MRSGI Strategic Thrusts

    MRSGI Strategic Thrusts eCommerce  In the process of securing board approval on E-Commerce strategy which will be piloted in 2019 Network Expansion  Continuously explore new store formats with modern store design and concept  Increased leasing component of stores  Rationalizing store lay-outs un

  20. Slide 20: Thank you! Q & A

    Thank you! Q&A

  21. Slide 21: Annex

    WRENS ENTED i Hl A ve METRO

  22. Slide 22: Unaudited Interim Statement of Comprehensive Income

    Unaudited Interim Statement of Comprehensive Income 22

  23. Slide 23: Unaudited Interim Statement of Financial Position

    Unaudited Interim Statement of Financial Position 23

  24. Slide 24: Unaudited Interim Statements of Cash Flows

    Unaudited Interim Statements of Cash Flows 24

  25. Slide 25: Disclaimer

    Disclaimer The materials and figures in this presentation and other documents are for informational purposes only and are not, in any way, a form of solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice. Information

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