Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — Q3 2019 Earnings Presentation
14 slides from Shell Pilipinas's earnings presentation, Nov 12, 2019
Slide 1: Q3 2019 Results
Q3 2019 Results Delivering a world-class investment case Pilipinas Shell Petroleum Corporation November 12, 2019 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: Key messages
Summary Key messages ▪ Pilipinas Shell celebrates its105th year in the country Pursue Fueling founded on long-term investment horizon, consistent profitable fuel progress for strategy, and strong corporate governance growth opportunities the Filipino ▪ Marketing businesses continue to expand ▪ Suppl
Slide 4: Financial highlights
Financial Strong marketing delivery and refinery cost highlights efficiencies cushion the impact of depressed refining margins PHPb 8 4.4 NIAT (PHPb) 6 2.9 Total volume (Bn litres) 7.5 4 Cash flow from operations (PHPb) 2 14% ROACE (9M19) ▪ 9M19 NIAT at ~86% of 0 FY2018 delivery ▪ Marketing volumes
Slide 5: Core earnings continue to grow despite steep decline in refining margins
9M19 EBITDA Adjusted for COSA stands at PHP6.5b (PAS 17) Core earnings PHPb 10 continue to 8 grow despite 6 steep decline in 4 refining margins 2 0 9M16 9M17 9M18 9M19 -2 -4 Marketing Refinery and supply Retail volume growth High premium fuel Strong marketing delivery Strong marketing delivery Low r
Slide 6: Healthy balance sheet and cash flow; gearing stays low
Capital Investments + ROACE Healthy PHPb 25% balance sheet 3 20% 18% and cash flow; 2 14% gearing stays low at 23% 1 0 0% 9M17 9M18 9M19 Retail Others Commercial 9M19 ROACE Cash flow from operations Average capital employed + Gearing PHPb PHPb 14 60 40% 22% 22% 23% 7 30 Delivers PHP7.5b cashflow 0 s
Slide 7: Strong global brand and targeted campaigns contribute to robust Retail delivery
Strong delivery and disciplined expansion Exciting campaign in Q4 Strong global brand and Most preferred brand in the country, enhanced by successful targeted campaigns campaigns contribute to Volume up 1% in 9M19 robust Retail despite higher excise taxes delivery RETAIL FUELS High premium fuel pene
Slide 8: Retail consistently delivers robust performance, beats industry growth
Year-on-year growth in market share in the retail segment Retail 100% consistently 80% delivers robust 60% performance, 40% beats industry 20% 32.3% 32.5% 33.0% 33.4% 33.2% 33.6% 28.4% growth 0% 2013 2014 2015 2016 2017 2018 1H19 PSPC Others Higher premium fuel penetration amidst volatility in pump
Slide 9: Non-fuels retailing business continues to enjoy double-digit growth
Consistent year-on-year growth Store openings Non-fuels retailing PHPm 9M19 Total business 1600 Select 9 137 continues to deli2go 5 63 enjoy double- SHOC+/HSC 23 348 digit growth Note: Shell Helix Oil Change (SHOC+) and Helix Service Center (HSC) 0 9M16 9M17 9M18 9M19 Exciting campaigns throughout t
Slide 10: Commercial businesses deliver stronger volume and earnings performance
Commercial fuels Aviation Commercial ◼ Continued focus on growing industries ◼ Renewed and increased liftings from key businesses and improving customer offer airlines; won new contracts deliver stronger ◼ Capitalized on stronger power sector demand as a result of warmer weather volume and and maint
Slide 11: Refinery achieves cost efficiency target, broke ground on key growth projects
Running safe and reliable operations Refinery ▪ Successful completion of the pitstop in Q3 ahead of timeline achieves cost ▪ No Loss-Time Injury in 9M19 efficiency Improving cost competitiveness of the refinery target, broke ground key $10M FY19 cost savings target achieved as of September 2019, fro
Slide 12: Fuel marking to commence in the North Mindanao Import Facility
Ready to start automated fuel marking at Fuel marking NMIF; refinery to start by Q1 2020 to commence ◼ Distribution of marked fuels to start in in the North November 2019 in stations supplied by NMIF in Visayas and Mindanao Mindanao ◼ ~2-3 months for all retail sites to deplete old Import Facility s
Slide 13: Energy that makes the future
Harnessing renewable energy, and energy efficient concepts in key assets GROUNDBREAKING OF INTEGRATED ENERGY SYSTEM Energy that IN REFINERY (SOLAR, NATURAL GAS AND BATTERY) makes the With a capacity of 2,400MW-hours, the system can produce enough energy to power 850 homes while offsetting about 8,76
Slide 14: Slide 14
Pilipinas Shell Petroleum — Q3 2019 Earnings Presentation on 6ix