Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q1 2020 Earnings Presentation
20 slides from Shell Pilipinas's earnings presentation, May 21, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation 21 May 2020 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 Unprecedented crisis: uncertainty on timing of economic recovery, but poised to seize opportunities under the “new normal” ▪ Demand impacted by the COVID-19 pandemic ▪ Steep decline in crude prices due to price war between OPEC Fueling Capturing and Russia coupled with historic low refined p
Slide 4: Global and domestic headwinds experienced in Q1
1Q 2020 LOOKBACK Global and domestic headwinds experienced in Q1 GDP contracts by 0.2% for the first time in 22 years. Last $/bbl Crude Price Drastically Falls in 1Q20 PH Economic slowdown contraction experienced during the 1998 Asian Financial crisis; 80 experts project slowdown to continue in the
Slide 5: Marketing volume delivery up 6%
1Q 1Q 2020 2020 LOOKBACK LOOKBACK Marketing Pre ECQ Post ECQ April Under the Enhanced Community Quarantine (ECQ), (Jan 1-Mar 13) (Mar 14-31) Volume volume malls and public establishments were closed, public Retail Flat -55% -66% transport via land, sea and air suspended, mass delivery up 6% Commerci
Slide 6: Financial highlights
FINANCIALS Financial highlights 1Q20 books net loss of PHP5.5b PHPb 4 (5.5) NIAT (PHPb) 1.4 Total volume (Bn litres) 1.1 0.3 0.8 1.8 2.0 1.6 1.3 0 1Q17 1Q18 1Q19 1Q20 (2.9) Cash flow from operations (PHPb) (4) -6.8 -4 ROACE (FY19 %) ▪ Marketing delivery wiped Marketing Others 37 Gearing (%) -8 out b
Slide 7: Marketing: 1Q20 EBITDA adjusted for COSA
FINANCIALS 1Q20 EBITDA Adjusted for COSA stands at PHP1.8b Marketing 5 PHPb EBITDA Adjusted 3.7 for COSA slightly 1.0 2.5 2.4 1.8 increases despite demand decline 2.7 3.1 3.1 3.2 from the ECQ -0.7 -0.7 -1.4 -2 1Q17 1Q18 1Q19 1Q20 1Q16 1Q17 Marketing 1Q18 Manufacturing and supply 1Q19 Note: Segmented
Slide 8: Cash flow impacted by drastic decline in demand post ECQ, gearing at 37%
FINANCIALS Cash flow impacted by drastic decline in demand post ECQ, gearing at 37% Capital Investments + ROACE Cash flow from operations Net debt + Gearing PHPb PHPb PHPb 6 20 37% 40% 1 27% 30% 15% 25% 3 0.2 0.1 3.5 10 15% 0% 0 -4% (1.5) (3.0) 0.6 0.5 -3 6.2 11.6 19.8 0.1 0 0% 0.2 1Q18 1Q19 1Q20 0
Slide 9: Retail impacted with COVID-19
RETAIL Strong delivery and disciplined expansion Retail grows its market share from 32% in Retail 2014 to 34% in 2019 impacted with 100% PSPC Retail Market Share 2013-2019 COVID-19, Remains as the most preferred brand in the country, enhanced 80% plans in place by successful campaigns 60% to capture
Slide 10: Retail: enhanced convenience and non-fuels offerings
RETAIL ENHANCED CONVENIENCE NFR delivery RETAIL OFFERINGS relatively flat vs PY despite 14% Non-fuels contribution to retail gross margins ECQ, sales approach +49% Increase in NFR Income since 1Q16 enhanced to adapt to new New store openings normal 1Q20 Total Under the new normal, Retail created new
Slide 11: Commercial: all sectors delivered growth pre-ECQ
COMMERCIAL Commercial fuels Aviation All sectors ◼ Base load plant customers continue to ◼ Achieved 2% volume increase vs PY despite delivered operate, loaded up tanks upon the Taal volcanic eruption and COVID-19 announcement of the ECQ growth pre- ◼ New wins in the Construction, ◼ Over 80% volume d
Slide 12: Supply chain remains flexible and resilient
SUPPLY CHAIN Supply chain remains flexible and resilient, customers assured of uninterrupted fuel supply TABANGAO REFINERY SUPPLY AND DISTRIBUTION ◼ Outstanding HSSE compliance with ◼ Strong HSSE Performance close to zero unplanned downtime ◼ All depots are open and operational ◼ Will temporarily be
Slide 13: Philippines: Economy is forecasted to shrink this 2020
2020 OUTLOOK Philippines: Economy is forecasted to shrink this 2020 Philippines grew faster than most countries but is expected to contract due to the COVID-19 pandemic 8.0% 6.8% 6.7% 7.0% 6.2% Post- Post 6.0% COVID COVID 5.0% 6.0% (best (worst 4.0% case) case) 3.0% 2.0% 1.0% - - 0.0% 2.0% 3.4% 2016
Slide 14: Philippines: Strong fiscal and financial position to address the crisis
2020 OUTLOOK Philippines: Strong fiscal and financial position to address the crisis ▪ Amongst 66 countries 6th ▪ Strong on all financial resilient measures Strongest country against public and foreign debt, cost of of emerging borrowing, reserve cover economy; ▪ PH ranks higher than neighbouring Ma
Slide 15: Macroeconomic indicators: Philippines will remain resilient
2020 OUTLOOK Macroeconomic indicators: Philippines will remain resilient The Philippines is poised for recovery after the COVID19 pandemic Manageable Debt-to-GDP ratio of 41.5% in 2019 March 2020 inflation rate is 2.5%, well within 80 74.5 6 the target of 2% to 4% 5.2 70 5 Debt-to-GDP Ratio 4 Inflat
Slide 16: Impact of quarantines imposed on local demand
2020 OUTLOOK RETAIL COMMERCIAL Impact of Public ECQ MECQ GCQ Sector ECQ MECQ GCQ Sector ECQ MECQ GCQ quarantines Bus Jeepney Entertainment, Recreation Manufacturing (Essentials) imposed on Transport network Tourism Utilities Public shuttle Repairs Energy local Private Company Shuttle ECQ MECQ GCQ Ed
Slide 17: 2020 Focus: Adapting to the New Normal
2020 ACTION PLAN FY2020 2020 Focus TARGETS RETAIL and NON-FUELS RETAIL Adapting to the New Further grow the business with Integrated Retail Offers while maximizing assets GOAL ZERO COMMITMENT Deliver customer-centric sites with fuels, NFR (convenience retail including clip-Ins, Normal No fatality; 0
Slide 18: Pilipinas Shell's Response to the Pandemic
COVID-19 ACTION PLAN Pilipinas Shell’s Response to the Pandemic SURVIVE CRISIS, THRIVE IN THE NEW CARE FOR PEOPLE CONTINUE SERVING OUR CUSTOMERS NORMAL ◼ Safety and health protocols followed in all ◼ Continue operations nationwide to support ◼ Cash preservation: identify activities and operating sit
Slide 19: 105 Years of Energy: Annual and Sustainability Report
Please visit https://pilipinas.shell.com.ph/investors/financial- AWARD-WINNING 105 Years reports.html for more information on our sustainability story PUBLICATIONS Of Energy: 2019 2018 Pilipinas Shell’s fourth Annual and Sustainability Report This year, we showcase our company milestones, achievemen
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