Jg Summit Holdings Inc. · PSE:JGS
Jg Summit — Q1 2018 Earnings Presentation
19 slides from Jg Summit's earnings presentation, May 17, 2018
Slide 1: Company Presentation First Quarter 2018 Unaudited Results
COMPANY PRESENTATION FIRST QUARTER 2018 UNAUDITED RESULTS Lance Gokongwei President and CEO Mike Liwanag Vice President MAY 17, 2018
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and businesses of JG Summit Holdings, Inc. (JG Summit). Such forward looking statements involve known and unknown risks, uncertainties and other factors which may c
Slide 3: JGS: Revenues grew 5% but margins contracted
JGS: Revenues grew 5% but margins contracted » Strong revenue expansion from CEB, RLC and in billion pesos 1Q17 1Q18 % chg RBank were moderated by lower volumes in URC and Petrochem Revenues 67.5 70.7 4.7% » Core net income fell on margin pressure from Core net income higher input costs and fuel pri
Slide 4: URC: Sales grew while margins remain challenged
URC: Sales grew while margins remain challenged Revenue Sales Breakdown +2% % chg vs LY 30.7 31.2 10% Branded Consumer -4% 8% Foods Philippines Branded Consumer +10% 47% Foods International Agro-Industrial Group +11% 35% 1Q17 1Q18 Commodity Foods -3% Group Net Income » Muted sales due to challenges
Slide 5: Cebu Air: Strong performance of Passenger and Cargo boosted sales
Cebu Air: Strong performance of Passenger and Cargo boosted sales Revenue Sales Breakdown 18.3 18% % chg vs LY 16.9 +8% Passenger +11% 7% Cargo +26% 75% Ancilliary -8% Revenue 1Q17 1Q18 Net Income » Higher passenger and cargo revenues as 1.4 1.3 +12% a result of higher volumes and average fares drov
Slide 6: RLC: Solid results across all divisions
RLC: Solid results across all divisions Revenue Sales Breakdown 6.4 % chg vs LY +17% 5.4 +7% Malls 33% Offices +18% 46% Hotels +4% IID +723% Residential +36% 0.4% 7% 1Q17 1Q18 14% Net Income » Strong performance of all divisions led to +12% 1.5 double-digit revenue and net income 1.4 growth » Overal
Slide 7: Petrochem: Lower volumes and higher input cost led to thinner margins
Petrochem: Lower volumes and higher input cost led to thinner margins -3% 10.8 10.4 1Q17 1Q18 -52% -62% -66% 2.7 2.4 2.3 1.3 0.9 0.8 Revenues EBITDA EBIT Net income SALES VOLUME (MT) 1Q17 1Q18 %chg » Slight revenue decline due to lower sales *C2 (Ethylene) 7,003 15,495 121% volume of polymers, pygas
Slide 8: Robinsons Bank: Continues to expand driven by significant growth of loan portfolio
Robinsons Bank: Continues to expand driven by significant growth of loan portfolio 1Q17 1Q18 Loans 1.4 39.1 +33% +42% 1.3 1.1 26.4 0.9 17.7 12.3 Revenues Interest Income Commercial Consumer Consolidated (Php Bn) 1Q17 1Q18 Growth » Consolidated Loan Portfolio grew 47% to P56.9 billion Assets 80,230 1
Slide 9: JGS: Balance sheet remains robust
JGS: Balance sheet remains robust In PHP Billions, except ratios CONSOLIDATED December 2017 March 2018 Growth Cash* 55.8 55.2 -1% Total Assets 739.3 755.8 +2% Financial Debt 227.5 228.9 +1% Net Debt 171.7 173.6 +1% D/E Ratio 0.66 0.64 Net D/E Ratio 0.50 0.49 Total Debt Breakdown (Conso) Total LTD 18
Slide 10: CAPEX Spending mainly coming from RLC and CEB
CAPEX Spending mainly coming from RLC and CEB 90 Q1 2018 CAPEX Spend 80 78.1 • Capacity expansion of BCF Int’l, Sugar and Flour 70 22.0 60 • Land acquisitions 50 16.4 40 • Aircraft acquisition (1 A321CEO and 1 ATR 30 72-600) 30.8 20 • Maintenance and CAPEX 11.0 for expansion projects 10 2.1 3.0 8.0
Slide 11: Manageable Debt Profile
Manageable Debt Profile In PHP Billions SCHEDULE OF PARENT DEBT MATURITIES* 38.4 24.5 5.5 5.0 - Current 2020 2021 2022 2023 and thereafter * Less unamortized debt issuance costs In PHP Billions, except yrs and % DEBT PROFILE December 2017 March 2018 Parent Cash 18.8 18.2 Total LT Debt 71.8 73.3 Tota
Slide 12: Plans and Prospects
Plans and Prospects » Drive portfolio optimization and focus on key categories/ brands » Review route-to-market execution and supply chain to further improve numeric distribution, stock weights and service levels » Revitalize leadership in the organization » Sustain the expansion of Malls, Offices a
Slide 13: Thank you!
Thank you! For more information, please contact: JG Summit Investor Relations Mike Liwanag Carlos Yu Alexandra Anigan IR@jgsummit.com.ph Vice President carlos.yu@jgsummit.ph alexandra.anigan@urc.net.ph +632 470 3919 mike.liwanag@jgsummit.ph
Slide 14: Appendix
Appendix 14
Slide 15: Company Profile
Stake: 55.3% Mkt Cap: Php310.8 Bn Stake: 60.0% Att Mkt Cap: Php171.7 Bn Stake: 61.0% Mkt Cap: Php103.8 Bn Market Capitalization: Att Mkt Cap: Php429.8 Billion Stake: 100.0% Php63.3 Bn Stake: 67.2% Mkt Cap: Php55.1 Bn Att Mkt Cap: Php37.0 Bn Stake: 29.6% Stake: 8.0% Stake: 37.0% Figures as of 16 May
Slide 16: Balance Sheet
Balance Sheet (Php Millions) As of Mar 2018 As of Dec 2017 Cash & cash equivalents 87,216 89,694 (including Financial assets at FVPL and AFS investments) Other current assets 124,279 117,022 Investments in Associates and JVs - net 137,982 138,539 Property, plant, and equipment 187,881 181,660 Other
Slide 17: Income Statement
Income Statement (Php Millions) As of Mar 2018 As of Mar 2017 YoY REVENUES 70,676 67,507 5% Cost of sales and services 45,640 41,598 10% GROSS INCOME 25,036 25,909 -3% Operating Expenses 13,130 12,222 7% OPERATING INCOME 11,906 13,687 -13% Financing costs & other charges (2,084) (1,795) 16% Foreign
Slide 18: Stable source of recurring cash flows
Stable source of recurring cash flows Dividends Received (in billion pesos) CAGR 2012 – 2017: 16% 15.2 13.7 13.7 12.6 0.7 1.8 7.7 3.8 4.7 5.8 8.6 7.8 7.3 0.5 0.8 0.5 3.0 3.2 2.6 1.8 1.3 2.7 2.9 0.8 1.1 0.4 0.6 0.8 0.9 0.9 0.9 0.9 0.5 0.4 0.9 0.9 3.7 3.7 3.8 3.8 3.8 3.2 2.5 2012 2013 2014 2015 2016 2
Slide 19: Performance of minority investments
Performance of minority investments In PHP Billions in SGD Millions In PHP Billions REVENUES REVENUES REVENUES 66.8 70.8 264.5 6.3 165.7 4.7 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 CORE NET INCOME NET PROFIT* CORE NET INCOME 4.6 4.9 59.5 60.2 0.7 0.5 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 *from operations, attributabl