Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — FY2021 Earnings Presentation
24 slides from Wilcon Depot's earnings presentation, Feb 24, 2022
Slide 1: Earnings Conference Call
EARNINGS CONFERENCE CALL February 24, 2022
Slide 2: Discussion Agenda
DISCUSSION AGENDA 2021 Operations Updates Results Highlights Operating and Financial Statistics 2022 Outlook
Slide 3: Operations Updates
Operations Updates ✓ Metro Manila and nearby provinces placed in a bubble labeled NCR+ in end-March to April, stricter quarantine measures in place ✓ NCR+ and other areas with elevated Covid-19 cases were placed under ECQ or some form of stricter mobility restrictions from August 6 to October 15 ✓ C
Slide 4: Fourth Quarter 2021 Results
FOURTH QUARTER 2021 RESULTS Bn wacon EE
Slide 5: 4Q2021 Results Highlights
4Q2021 Results Highlights Financial Highlights Comparable Sales Summary Opened 4 new stores ✓ Php 7.465B Net Sales 0.8% SSSG • Tagum, Davao del Norte ✓ 9.1% y-o-y Net Sales -9.9% Transaction Count • San Fernando Pampanga growth • Dauis, Bohol 12.0% Ticket Size • Malaybalay, Bukidnon ✓ Php 692 Millio
Slide 6: 4th Quarter 2021
4th Quarter 2021 (In Php MM) 4Q2021 % Sales 4Q2020 % Sales % Growth Net Sales 7,465 100.0 6,840 100.0 9.1 Cost of Sales -4,621 -61.9 -4,494 -65.7 2.8 GPM rate increased Gross Income 2,844 38.1 2,346 34.3 21.2 to 38.1% Operating Expenses -1,914 -25.6 -1,625 -23.8 17.8 Lease-related Interest Exp (Leas
Slide 7: Total Net Sales Breakdown - 4Q2021
Total Net Sales Breakdown -4Q2021 Home 4Q2021 Projects, Home 4Q2020 Projects, Php Millions Essentials, 70, 0.9% Essentials, 48, 0.7% 139, 1.9% 9.1% 151, 2.2% Depots, Depots, 7,256, 97.2% 6,641, 97.1% Sales Growth per Store Format Product Category Performance 4Q2021 VS 4Q2020 4Q2021 VS 4Q2020 Better
Slide 8: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend SSSG Excluding Inst’l/ Projects Sales • 1Q21 = 10.5% 2Q21 = 78.9% 3Q21 = -9.2% 4Q21 = 0.5% 79.7% • 1Q20 = -8.3% 2Q20 = -46.8% 3Q20 = 1.2% 4Q20 = 0.2% • 1Q19 = 7.9% 2Q19 = 1.5% 3Q19 = 6.4% 4Q19 = 4.3% 9.8% 7.9% 6.6% 4.9% 1.9% 0.4% 0.8% -8.0% -0.5% 1Q2021 1Q202
Slide 9: Twelve-Month 2021 Results
TWELVE-MONTH 2021 RESULTS Bn wacon EE
Slide 10: FY2021 Results Highlights
FY2021 Results Highlights Financial Highlights Comparable Sales Summary Php 2.161B CAPEX ✓ Php 27.513B Net Sales 12.1% SSSG Opened 10 ✓ 21.6% y-o-y Net Sales 4.7% Transaction Count new stores growth 7.0% Ticket Size • Makato, Aklan ✓ Php 2.561B NIAT • Commonwealth • Ormoc, Leyte Total Sales Mix • Co
Slide 11: For Year 2021
For Year 2021 (In Php MM) FY2021 % Sales FY2020 % Sales % Growth Net Sales 27,513 100.0 22,629 100.0 21.6 Cost of Sales -17,238 -62.7 -14,847 -65.6 16.1 GPM rate increased Gross Income 10,276 37.3 7,782 34.4 32.0 to 37.3% Operating Expenses -6,732 -24.5 -5,738 -25.4 17.3 Lease-related Interest Exp (
Slide 12: Total Net Sales Breakdown - FY2021
Total Net Sales Breakdown -FY2021 Home FY2021 Projects, Home FY2020 Projects, Php Millions Essentials, 192, 0.7% Essentials, 178, 0.8% 530, 1.9% 510, 2.2% 21.6% Depots, Depots, 26,792, 97.4% 21,941, 97.0% Sales Growth per Store Format Product Category Performance FY2021 VS FY2020 FY2021 VS FY2020 Be
Slide 13: Comparable Sales Summary
Comparable Sales Summary Semi-annual and Annual Trend SSSG Excluding Inst’l/ Projects Sales • 1H21 = 36.8% 2H21 = -4.3% FY2021 = 12.1% • 1H20 = -28.0% 2H20 = 0.7% FY2020 = -13.1% • 1H19 = 4.5% 2H19 = 5.3% FY2019 = 4.9% Comparable Sales per Format Comparable Ticket Size and Number of Transactions FY2
Slide 14: Balance Sheet
Balance Sheet (In Php MM) Audited Dec 31, 2021 Audited Dec 31, 2020 Current Assets 17,189 14,390 Noncurrent Assets 15,149 13,828 Total Assets 32,337 28,218 Current Liabilities 8,880 7,621 Noncurrent Liabilities 5,979 5,287 Total Liabilities 14,859 12,908 Capital Stock 4,100 4,100 Additional Paid-in
Slide 15: FY2021 CAPEX Investment
FY2021 CAPEX Investment FY2021 Capex Breakdown Actual Spent Expansion-related 2,008 (new stores, renovations, eqpt, warehouses, etc) Solar Panel Project 106 IT Infrastructure and Projects 47 Total CAPEX (in millions Php) 2,161 15
Slide 16: Margins
Margins GPM 37.3 33.4 34.4 31.4 29.7 PFRS 16 PAS 17 EBITDAM 15.8 13.1 EBITM 11.9 11.9 10.4 12.3 11.2 11.4 9.8 8.8 NPM 8.7 8.7 9.3 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 Note: ROU depreciation and interest expense charged on lease liability were considered as rent expense for 2019, 2020 and 2021.
Slide 17: 2022 Planned New Branches
2022 Planned New Branches 54 2022 Beg. Balance 73 8 Mayamot, Antipolo Gapan, Nueva Ecija 1st Half 10 Lemery, Batangas Bantay, Ilocos Sur Calapan, Oriental Mindoro 9 Abucay, Bataan 2nd Half Total Planned New Bauang, La Union Depot Stores - 8 San Jose, Nueva Ecija Total number of stores in FY2021 - 73
Slide 18: FY2022 CAPEX Budget
FY2022 CAPEX Budget FY2022 % Increase Capex Breakdown Budget y-o-y Expansion-related 3,534 76% (new stores, renovations, eqpt, warehouses, etc) Solar Panel Project 236 123% IT Infrastructure and Projects 176 274% Total CAPEX (in millions Php) 3,946 83%
Slide 19: Continue to increase margins thru In-house & Exclusive brands expansion
Continue to increase margins thru In-house & Exclusive brands expansion • Improve supply chain management • Enhance marketing efforts ✓ Enhance the Company’s ability to provide its • Expand product lines/ customers with value for money products ✓ Rationalize product offerings product offerings 19
Slide 20: Store Lay-out, Features and Customer Experience Enhancements
Store Lay-out, Features and Customer Experience Enhancements • Constant innovations in store layout, features and customer experience that add value to our relationship with our customers and consistently differentiate us from competition
Slide 21: Omnichannel Initiatives
Omnichannel Initiatives Live Chat Feature Exclusive Online New Wilcon Lalamove Partnership Shop promotions Loyalty Program design LazMall Shops Kohler E-shop Shopee Mall 21
Slide 22: Q&A
Q&A 22
Slide 23: Thank you!
Thank you! 23
Slide 24: Disclaimer
Disclaimer The above contains statements about future events and expectations that constitute “forward-looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “may”, “plans”, “foresees”, “ta