Gt Capital Holdings, Inc. · PSE:GTCAP

Gt Capital — 9M 2019 Earnings Presentation

62 slides from Gt Capital's earnings presentation, Nov 14, 2019

  1. Slide 1: Nine Months 2019 Analyst and Media Briefing

    Nine Months 2019 Analyst and Media Briefing 14 November 2019

  2. Slide 2: GT Capital Holdings Nine Months 2019 Financial Highlights

    GT Capital Holdings Nine Months 2019 Financial Highlights 2

  3. Slide 3: GT Capital Group Financial Highlights 9M 2019

    GT Capital Group Financial Highlights 9M 2019 Consolidated Net Income +40% Php15.3 billion* (MBT +29%, FLI +10% , TMP +13% , TMBC +30%) Php10.9 billion 9M 2018 Php12.4 billion Core Net Income (FV adjustments for MBT, MPI, PCFI, TMP, TMBC, +20% Php10.3 billion 9M 2018 Gain on disposal PCFI) Php159.1

  4. Slide 4: GT Capital Consolidated Core Net Income Comparative

    GT Capital Consolidated Core Net Income Comparative 1Q 2018 vs. 1Q 2019 2Q 2018 vs. 2Q 2019 3Q 2018 vs. 3Q 2019 FLI -23% TMP -24% -6% FLI +39% TMP +22% +24% FLI +7% TMP +48% +43% MBT +15% MBT +22% MBT +49% TMBC -22% TMBC +17% TMBC +114% MPIC +0.3% MPIC +1% MPIC +7% AXA Life +50% GI >100% AXA Life -6

  5. Slide 5: GT Capital 9M 2019 vs 9M 2018 Comparative

    GT Capital 9M 2019 vs 9M 2018 Comparative Consolidated Core Net Income  MBT +29% +20% 12.4*  TMBC +30%  TMP +13% 10.3  FLI +10%  MPIC +3% in Php Billion  TFS +4%  AXA Life +24%  GI >100% *Highest Nine Months Core Net Income in GT Capital History 9M 2018 9M 2019 *gross of Php149.3M amortizati

  6. Slide 6: GT Capital Net Income Contribution 9M 2019

    GT Capital Net Income Contribution 9M 2019 AXA TFSPH TMBC TFSPH TMBC 2.0% 0.6% AXA 4.1% 1.4% 0.6% 3.3% TMP MPIC MPIC TMP 25.1% 14.7% 11.9% 24.4% FLI FLI 6.8% 7.2% MBT MBT 46.1% 51.1% MBT + TMP = 71.2% MBT + TMP = 75.5% 9M 2018 9M 2019 6

  7. Slide 7: GT Capital Net Income Contribution by Sector

    GT Capital Net Income Contribution by Sector \ Insurance Insurance 4.1% 2.7% Auto Infrastructure Auto FLI Infrastructure 9.8% 21.9% 14.7% 27.9% 5.6% Property 7.2% Gain on PCFI Redemption 18% Banking Banking 41.9% 46.1% Banking + Auto = 74.0% Banking + Auto = 63.8% 9M 2018 9M 2019 *Property includes

  8. Slide 8: Automotive

    IVE HOLDINGS INCORPORATED Fst CAPITAL © = £ S <<

  9. Slide 9: Retail auto unit sales volume

    Retail auto unit sales volume As of September 2019 YTD In Units Industry factors: Industry o Signs of recovery due to easing inflation, 292,364 297,263 ▲ %2 declining interest rates, and rebound in consumer confidence Y-o-Y 109,402 9M 2019 results: 114,117 Toyota o Driven by Vios and Innova sales gr

  10. Slide 10: Retail auto unit sales volume (October 2019 YTD)

    Retail auto unit sales volume As of October 2019 YTD In Units 10M 2019 results: o Reduced the backlog on Alphard 130,520 Toyota and Land Cruiser o Highest unit sales for the year in 124,329 ▲ %5 October 2019 (16,403 units) Y-o-Y o Record-high Vios monthly unit 10M 2018 10M 2019 sales 3,238 Toyota o

  11. Slide 11: Toyota's Road to Recovery

    TOYOTA’S ROAD TO RECOVERY Retail auto unit sales volume M-o-M Toyota 2019 Unit Sales 18,000 +22% M-o-M 16,403 16,000 14,568 13,889 14,120 14,000 12,932 13,083 13,460 12,000 11,355 11,443 10,000 9,267 8,000 6,000 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Source: Company data, CAMPI 11

  12. Slide 12: Toyota is still PH's dominant auto brand: Overall Market Share

    Toyota is still PH’s dominant auto brand Overall Market Share As of September 2019 YTD 35% in 1Q 41% in 2Q 40% in 3Q 38% in 9M19 24,243 Unit difference No.1 No.1 No.1 Passenger Commercial Overall 16% Car Sales Vehicle Sales Sales 11% 9% 6% 6% 5% MITSUBISHI 3% NISSAN 2% HYUNDAI SUZUKI 1% FORD HONDA 0

  13. Slide 13: Auto Industry Market Share

    Toyota is still PH’s dominant auto brand Auto Industry Market Share As of September 2019 YTD Passenger Car Commercial Vehicle 42% in 9M 39% in 1Q 37% in 9M 33% in 1Q 45% in 2Q 39% in 2Q 42% in 3Q 39% in 3Q 30.9% of total market 69.1% of total market 33.6% of Toyota sales 66.4% of Toyota sales 16% 16

  14. Slide 14: CARS Unit Sales Progress

    CARS Unit Sales Progress Units sold of Toyota Vios since launch of CARS Program model launched in July 2018 to date (cumulative) Oct 2019 Dec 2018 37,958 June 2019 11,336 Sept 2018 March 2019 26,933 Aug 2018 3,503 18,423 Within CARS sales 1,658 volume commitment Introduction of FMC Vios July 2018 22

  15. Slide 15: New model launch update

    New model launch update Still dominant in respective segments Launch dates May 2018 53% segment Entry SUV share YTD September July 2018 33% segment Sub-Compact PC share YTD September Dec 2018 80% segment Medium PC share YTD September Feb 2019 64% segment Utility Van share YTD September

  16. Slide 16: GT Capital

    GT CAPITAL

  17. Slide 17: TMP Financial Highlights

    TMP Financial Highlights Revenues  Wholesale volume +0.4% to 104,226 units; Retail volume +4.3% (vs 1.7% Industry volume) +2% 119.3 121.4  Retail Sales volume (year-to-date): in Php Billion o PCs: Vios +31%, Wigo -16% o CVs: Hilux +24%, Innova +16%, Fortuner -19%, Hiace -3%, Rush +50% 9M 2018 9M 2

  18. Slide 18: New model launches

    TOYOTA MOVING FORWARD New model launches July 2019 January 2019 Feb 2019: Commuter, GL Grandia, GL Grandia Tourer Aug 2019: Super Grandia September 2019 Full-model change and intro of Hybrid variant September 2019 Improvement and introduction of Hybrid variant 18

  19. Slide 19: Dealership Expansion

    Rising Together Dealership Expansion Target by end of year to 2014 New Heights 2015 2016 2017 2018 2019 2020E 2021E Number of Dealers 45 49 52 61 69 71 79 83 2020 2021 LUZON 32 35 28 METRO MANILA March 2019 DARAGA Albay 19 2020 2021 20 20 VISAYAS 14 2020 15 2021 15 July 2019 Valenzuela MINDANAO 10 2

  20. Slide 20: GTCAD Management Team

    GTCAD Management Team Vince S. Socco Antonio P.A. Zara III Chairman General Manager • Former EVP of Lexus Asia Pacific • Former President of Nissan Motor Distributor Indonesia • Former GM of Toyota Motor Asia Pacific • Former President of Nissan Motor Philippines, Inc. • Former GM of Toyota Motor Ph

  21. Slide 21: GTCAD Ventures

    GTCAD Ventures 100% 66% 66.6% 33.4% (40%)* (20%)* 60% 40% *Numbers in parentheses denote GTCAD’s and Mitsui’s respective effective ownership stakes in JBA Philippines 21

  22. Slide 22: Used car auction house operations

    Extending the automotive value chain to Used car auction house operations 26 March 2019 22

  23. Slide 23: Property Development

    Y 4 - <3 ro) i = Us > OQ. ‘S - 3 v0 Oo a on S Ow J a QD

  24. Slide 24: Residential Supply and Demand

    RESIDENTIAL SUPPLY AND DEMAND Managed growth for new launches Metro Manila Residential Condominium Supply and Demand 60,000 50,000 Forecasted Supply 45,000 40,000 35,000 34,900 Units 30,000 29K 21,600 26K 20,000 9M 10,000 2019A 0 2014 2015 2016 2017 2018 2019E 2020E 2021E Launches (Supply) Pre-sales

  25. Slide 25: Office Supply and Demand

    OFFICE SUPPLY AND DEMAND 9M19 office supply exceeds demand; Office supply and vacancy expected to decline by 2020 Metro Manila New Office Supply vs. Vacancy Rate 1.4 6.0% 6.0% 6.0% 6.2% 5.0% 5.3% 4.7% 1.2 4.0% 3.0% GLA in Mn SQM 1 0.8 0.6 0.4 9M 2019A 0.2 0 2013 2014 2015 2016 2017 2018 2019E 2020E

  26. Slide 26: Office Supply

    OFFICE SUPPLY 9M19 Metro Manila office stock up 10% YOY + sqm + sqm + sqm + sqm + sqm + Annual Increase sqm 1.07 million sqm + sqm + sqm Source: Colliers Philippines, 2019 26

  27. Slide 27: Condominium Supply

    CONDOMINIUM SUPPLY Makati CBD, BGC, and Bay Area cover nearly 70% of supply + units + units + units + units + units + Annual Incremental Increase units 9,600 units + units + units Source: Colliers Philippines, 2019 27

  28. Slide 28: Condominium Supply and Demand

    CONDOMINIUM SUPPLY AND DEMAND Breakdown of Launches and Reservation Sales Metro Manila Condominium Launches and Reservation Sales in Peso Value LUXURY 8M and Above 25% 19% UPSCALE 9% 6M to 7.99M 6% MID-INCOME 3.2M to 5.99M 43% 48% AFFORDABLE 1.7M to 3.19M 26% ECONOMIC 20% 580K to 1.69M 2% - Launches

  29. Slide 29: Federal Land

    (a) AE EDERAL LAN HOLDINGS INCORPORATED GT CAPITAL

  30. Slide 30: Federal Land Financial Highlights

    Federal Land Financial Highlights • Reservation sales +85% from Php8.9B to Revenues Php16.5B -13% – Launched 4 new projects: The Estate, Mi- 10.6 Casa, Quantum Amethyst, Marco Polo Park 9.2 2.7 Place in Php Billion – Real estate sales (exc. lot sale Php2.7B) 7.9 +15% +15% from Php6.1B to Php7.0B due

  31. Slide 31: Project Launches

    Project Launches a Ce = SPS

  32. Slide 32: Project Launches

    Project Launches Number of units are all estimates and subject to change The Estate Mi Casa Tower 1 AYALA AVENUE BAY AREA, PASAY Feb 2019 188 units, Php18.0B (JV 50%) March 2019 158 units, Php3.8B Quantum Residences Marco Polo Tower 2 Residences (Amethyst) Tower 5 TAFT AVENUE CEBU Sept 2019 Aug 2019

  33. Slide 33: Insurance

    1GT CAPITAL MB HOLOINGS INC! 2. | te ail)

  34. Slide 34: GT Capital

    GT CAPITAL HOLD! TED INGS INCORPORATE:

  35. Slide 35: AXA Philippines Financial Highlights

    AXA Philippines Financial Highlights Gross Premium Life  New Business -7% from Php5.6B to Php5.2B -19% dragged by low SP sales due to market 28.05 volatility 23.44 in Php Billion  Growth in Protection & Health line +34% (Now 20% of premium revenues) 23.78 19.26  AXA -19% ■ Regular Premium (RP) +6

  36. Slide 36: Strong synergy and growth

    Strong synergy and growth • Exclusive financial advisors: 6,615 vs 5,272 in 1H 2019 • Total bancassurance (Metrobank and PSBank) branches: 957 • AXA branches nationwide: 63 Assets Under Management 111 +7% 118 In Billion PHP 9M 2018 9M 2019 36

  37. Slide 37: Wide range of insurance offerings

    Wide range of insurance offerings Php10M coverage Health MaX is one of AXA’s premium products, offering lifetime medical coverage for over 50 major illnesses. 37

  38. Slide 38: Other health insurance products

    Other health insurance products AXA’s Global Health Access provides its customers with world-class medical coverage in any country in the world.  Provides up to Php150 Million yearly coverage for in-patient and out-patient treatments  Renewable until age 99  Choose your own doctor  Choose your o

  39. Slide 39: Banking

    Banking lj GT CAPITAL HOLDINGS INCORPORATED

  40. Slide 40: Macroeconomic Highlights

    Macroeconomic Highlights Philippine 2019 Inflation Rate, in % 6.0 4.4 4.0 3.8 3.3 3.0 3.2 2.7 2.0 2.4 1.7 0.9 0.8 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct BSP Consumer Confidence Index, in % 20.0 8.7 13.1 10.0 10.2 9.5 3.8 4.6 1.7 - 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2

  41. Slide 41: Macroeconomic Highlights

    Macroeconomic Highlights 2019 BSP Policy Rate 5.00% 4.75% 4.50% 4.50% 4.25% 4.00% 4.00% 3.50% Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2019 BSP Reserve Requirement Ratio (RRR) 20.0% 18.0% 18.0% 17.0% 16.5% 16.0% 16.0% 15.0% 14.0% 12.0% 14.0% 10.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sourc

  42. Slide 42: Peer Banks Highlights

    Peer Banks Highlights Net Interest Margin – NIMs (%) Total Loans (Php Billion) +3 bps +10% industry growth 4.1% 3.9% 3.3% +7% +7% +8% 2,141 1,412 1,372 BDO MBT BPI BDO MBT BPI CASA Deposits (Php Billion) Total Assets (Php Billion) +4% industry growth +10% industry growth +6% 1,745 -2% +5% +6% +10% +

  43. Slide 43: 9M 2019 Peer Banks Highlights

    9M 2019 Peer Banks Highlights Net Interest Income (Php Billion) NII less Opex (Php Billion) +10% 13.3 88.5 11.6 56.2 48.7 2.6 BDO MBT BPI MBT BPI BDO Cost-to-Income Ratio (In %) NII to Total Revenue (%) -300bps 64.7 54.1 52.0 70.3% 68.5% 66.7% BDO MBT BPI MBT BPI BDO Source: 17Q Report, Investor Pre

  44. Slide 44: Peer Banks Highlights

    Peer Banks Highlights Total Equity (Php Billion) Total Capital Adequacy Ratio and CET1 (%) CAR CET1 +10% 362 17.6% 16.8% 16.3% 15.9% 305 14.6% 268 13.1% 10.5% min CET1 BDO MBT BPI MBT BDO BPI Source: 17-Q Report of Banks as of 30 September 2019 44

  45. Slide 45: Metrobank

    NEP ts Metrebank me ie A A ll WH i APITAL HOLOINGS INCORF0RATED > Metrobank EA Youre in good hands

  46. Slide 46: Metrobank Financial Highlights

    Metrobank Financial Highlights Operating Income  Net Interest Income +10% (Php56.2B or 70% of Operating Income) 45.1 50.2 +17% ₋ NIMs from 3.88% to 3.91% ₋ Loan portfolio +7% (Php74B) from Php1.33T to in Php Billion 23.7  Non-Interest Income Php1.41T vs. Industry +10% 17.4 51.0 56.2 +36% o Commerc

  47. Slide 47: Credit demand driven by solid economic growth

    Credit demand driven by solid economic growth Loan Portfolio (PHP Billion) Total Loan Portfolio Breakdown Commercial Consumer +7% 24% +5% 24% 1,412 76% +7% 76% 1,326 9M 2018 9M 2019 Consumer Loan Portfolio Breakdown Credit Cards Auto 24% 43% 32% Home 9M 2018 9M 2019 47

  48. Slide 48: Summary

    Summary Credit demand driven by solid economic growth Healthy deposit growth, with a CASA ratio above 60% Downward interest rates support NIM expansion Recurring revenue growth outpacing costs Improving Operating Ratios Asset quality better than industry 48

  49. Slide 49: Infrastructure and Utilities

    Infrastructure and Utilities 49

  50. Slide 50: Infrastructure Project Updates

    Infrastructure Project Updates 9M 2019 project opening CALAX 10km segment from Mamplasan Toll Barrier to Santa Rosa-Tagaytay Interchange Opened November 2019 50

  51. Slide 51: Metro Pacific Investments

    PACIFIC Das INVESTMENTS GT CAPITAL HOLDINGS INCORPORATED

  52. Slide 52: Metro Pacific Financial Highlights

    Metro Pacific Financial Highlights Share in Operating Net Income  Power 15.4 16.4 +6% oMeralco - Core NI Php18.5B +11% in Php Billion 0.2 0.3 0.6 0.7 3.2 Energy sales +6% 3.0 3.7 3.3 Logistics / Indra LRMC/AFPI oGBPC - Core NI Php2.0B +3% Hospitals 8.5 9.0 Maynilad/MWIC MPTC  Toll Roads - Core NI

  53. Slide 53: Recent Developments

    Recent Developments “GT CAPITAL

  54. Slide 54: Free AXA personal insurance for new Metrobank account holders

    Free AXA personal insurance for new Metrobank account holders Free Php100k accident insurance for new Metrobank account holders Covers accidental death and permanent disablement Available to customers aged 18 to 70 years old 54

  55. Slide 55: TMP participates in Jeepney Modernization Program

    TMP participates in Jeepney Modernization Program DOTr, DTI, and Toyota unveil the Hilux Modern PUV  12 passenger seats  CCTV  GPS Navigation  Dashboard Camera  Wi-Fi  Automatic fare collection system  Euro 4 emission standards compliant  Only PUV Modernization Program participant priced bel

  56. Slide 56: Property as GT Capital's Third Leg

    Property as GT Capital’s Third Leg 21 October 2019 Finalization of Redemption 56

  57. Slide 57: Redemption of PCFI shares: assets received

    Area in hectares NLEX-SLEX Connector Road Lancaster (Imus and General Trias) 592.28 NAIA Expressway Bellefort (Bacoor) 88.50 C-5 South Link Entertainment City Carmona 20.29 CAVITEX Shaw, Mandaluyong 0.46 LRT-1 Santolan, Quezon City 0.91 Extension Alabang 702 has. CALAX MCX Php20B Daang Hari CALAX Ex

  58. Slide 58: Rationale for Redemption

    Rationale for Redemption LNC best-use for mixed-use development Master-planning of 702 hectares has to be completed by year-end 58

  59. Slide 59: Launch of the Penthouse at the Grand Hyatt

    Coming soon: Launch of the Penthouse 66 at the Grand Hyatt 59

  60. Slide 60: Our Outlook for Growth

    Our Outlook for Growth Rebounding Favorable GDP growth exchange rate Pickup in loan Continued strong Benign growth in 4Q margins Stronger consumer inflation confidence Broader coverage Improvement in POC Lower Completion of projects Increased Interest rate infrastructure environment spending 60

  61. Slide 61: Thank You!

    “SGT CAPITAL

  62. Slide 62: Nine Months 2019 Analyst and Media Briefing

    Nine Months 2019 Analyst and Media Briefing 14 November 2019

GT Capital Holdings — 9M 2019 Earnings Presentation on 6ix