Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — FY2018 Earnings Presentation
51 slides from Gt Capital's earnings presentation, Mar 27, 2019
Slide 1: Full-Year 2018 Financial and Operating Results
Full-Year 2018 Financial and Operating Results gtcapital.com.ph 27 March 2019 D E F I N E D B Y E X C E L L E N C E , R E F I N E D T H R O U G H P A R T N E R S H I P
Slide 2: Full Year 2018 Financial Highlights
GT Capital Holdings Full Year 2018 Financial Highlights 2
Slide 3: Financial Highlights FY 2018
Financial Highlights FY 2018 GTCAP weathered strong headwinds in 2018 Php13.4 billion Consolidated Net Income (FV adjustments for PCFI, MPI, TMBC, TMP) -6% Php14.2 billion 2017 Php13.7 billion Core Net Income -9% Php15.0 billion 2017 Php215.8 billion Revenues -10% Php239.8 billion 2017 TMP [-15% Who
Slide 4: GT Capital Net Income Contribution
GT Capital Net Income Contribution Associates (MBT, AXA, MPI, TFS) delivered strong growth AXA TFSPH TMBC PCFI TFSPH TMBC PCFI 3.6% 1.6% 1.3% AXA 3.5% 1.8% 0.6% 2.1% 4.5% TMP MPIC MPIC 23.5% 11.6% Fed TMP 12.7% Land 38.2% Fed 7.9% Land 7.0% MBT MBT 33.7% 46.2% MBT + TMP = 72% MBT + TMP = 70% 2017 20
Slide 5: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Noteworthy growth in insurance and infrastructure sectors Insurance Infrastructure Insurance 4% Infrastructure 5% 12% 13% Automotive Property Automotive Property 26% 10% 41% 10% Banking Banking 34% 46% 2017 2018 5
Slide 6: Automotive
Automotive EE HOLDINGS INCORPORATED & GT CAPITAL
Slide 7: 2018 Global Toyota Sales Performance Rankings
2018 Global Toyota Sales Performance Rankings Market Total 2018 1 2 United States Japan 2,426,795 9 1,564,309 3 P.R. China 1,474,543 4 Indonesia 357,390 Still Top 5 Thailand 315,113 6 Canada 231,646 7 Australia 225,880 8 Brazil 202,843 Despite sales compression 9 Philippines 153,004 10 India 150,289
Slide 8: Overall Market Share
Toyota continues to be the Philippines’ dominant auto company Overall Market Share As of December 2018 YTD 38% 85,492 Unit difference No.1 No.1 No.1 Passenger Commercial Overall 17% Car Sales Vehicle Sales Sales 9% 9% 6% 6% 5% 4% Mitsubishi Hyundai 3% Nissan Ford 1% 0.9% Honda Suzuki 0.8% Isuzu Othe
Slide 9: Auto Industry Market Share
Toyota continues to be the Philippines’ dominant auto company Auto Industry Market Share As of December 2018 YTD Passenger Car Commercial Vehicle 40% 30.9% of total market 32.7% of Toyota sales 37% 69.1% of total market 67.3% of Toyota sales 29,604 55,888 Unit difference Unit difference 17% 16% 16%
Slide 10: ‘<4 GT CAPITAL
‘<4 GT CAPITAL , HOLDINGS INCORPORATED 10
Slide 11: Retail auto unit sales volume
Retail auto unit sales volume As of December 2018 YTD Industry 473,376 ▼ 15% Y-o-Y Toyota 400,298 ▼ 17% Y-o-Y • Front loading in 2017 183,908 • Inflation and dampened 153,004 consumer confidence • Vios (approx. 20%) run- out in anticipation of FMC in 1H 2018 12M 2017 12M 2018 • Impact of TNVS Indust
Slide 12: Inflation easing may lead to higher consumer confidence and vehicle sales
Inflation easing may lead to higher consumer confidence and vehicle sales 2017 Front loading, Inflation, Consumer Expectations, Vios Run-out Toyota Monthly Vehicle Sales (In Units) vs. Inflation and Consumer Expectations (In %) 2017 TRAIN Law Front Loading Implemented 13.1 16,000 Vios Run-out Inflat
Slide 13: TMP Financial Highlights
TMP Financial Highlights Revenues Wholesale volume -15% 155,508 units; 185.3 Retail volume 153,004 -17% 159.2 -14% (vs -15% industry volume) TRAIN law, Inflation, Consumer in Php Billion confidence TNVS suspension Low supply of CV models (1Q 2018) Vios sales decline: 10,993 units lower 2
Slide 14: New model launches
TOYOTA MOVING FORWARD New model launches February 2019 Php1.806 – 2.007M | FY’18: 12.0% of sales January 2019 Php1.638 – 2.203M | FY’18: 0.3% of sales Introduced May 2018 July 2018 Dec 2018 14 Php958k – 1.090M Php659k – 1.110M Php1.806 – 2.007M FY’18: 7.0% of sales FY’18: 16.8% of sales FY’18: 0.1%
Slide 15: Toyota Dealership Expansion
Toyota Dealership Expansion January 2019 SANTA ROSA Nueva Ecija March 2019 DARAGA Albay 70 Dealerships as of 27 March 2019 Upcoming: Cebu (renovation), Valenzuela, Lucena (Quezon) 15
Slide 16: Property Development
GT CAPITAL = ~~ s. ~ Pe et oo a “RU =a J a -— =
Slide 17: Residential Demand and Supply
RESIDENTIAL DEMAND AND SUPPLY Metro Manila residential condo demand In ‘000 units 70,000 60,000 50,000 Number of units 40,000 30,000 20,000 10,000 0 2012 2013 2014 2015 2016 2017 2018 Reservation Sales (Demand) Launches (Supply) Source: PEP-BAML, Colliers Philippines, February 2019 17
Slide 18: Office Supply and Demand
OFFICE SUPPLY AND DEMAND Office supply expected to decline by 2020; Vacancy also expected to decline due to stable demand Metro Manila New Office Supply vs. Vacancy Rate 1.5 1.3 1.0 GLA in Mn SQM 0.8 0.5 6% 6% 6% 6% 5% 5% 0.3 4% 3% 2% 0.0 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E Office Supply
Slide 19: Philippine office demand mix, FY 2018
Philippine office demand mix, FY 2018 BPO Non-BPO Non-BPO 25% BPO 31% 40% 41% Online Gaming Online Gaming 35% 28% 2017 2018 Office demand in FY 2018: 1.5M square meters (+33%) *1.16M in Metro Manila (+27%) Sources: Leechiu Property Consultants, PEP-BAML, Colliers Philippines, February 2019 19
Slide 20: *casseeeae
*casseeeae iiieteszHTTHHEN 4 x \) ee - ‘ < PERARAARAEA! — ee 14 —— - === = JE == e . a (‘GT CAPITAL nN
Slide 21: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues Real estate sales +16% from Php9.1B to Php10.6B 13.4 +19% Lot sales to JVs: e.g. Sunshine Fort (Php2.24B), GHR2 (Php0.45B) and AVEIA (Php0.21B) in Php Billion Deferred revenue of Php4.4B to be realized upon sale of units 11.3 Reservation sales Php12
Slide 22: Project Launches
in Project Launches 2019 2012 2013 2014 2015 2016 2017 2018 Estimate 11 5 4 3 4 5 8 5 to 8 22
Slide 23: Eight project launches in 2018
GEARING UP TOWARD FUTURE GROWTH Eight project launches in 2018 Number of units are all estimates and subject to change May May May Aug 236 units, Php2.5B 240 units, Php1.0B 163 units, Php0.7B 828 units, Php2.5B Palm Beach West Peninsula Garden Florida Sun Estates Quantum Baler Tower BAY AREA Mimosa
Slide 24: Master-planned townships continue to grow
GEARING UP TOWARD FUTURE GROWTH Master-planned townships continue to grow and are nearing completion Grand Central Park Bonifacio Metro Park Bay Area 10 hectares Madison Park West 36 hectares Six Senses Park Avenue Residences (6) Grand Hyatt Park West Manila-Metrobank Central Park West Palm Beach We
Slide 25: GT CAPITAL
GT CAPITAL HOLDINGS INCORPORATED PRO+ERIENDS pap
Slide 26: Rising Property Values Resulting from Infra and Competition
Rising Property Values Resulting from Infra and Competition CAVITEX CAVITEX C-5 South Link Target completion: 2021 Target completion: 2021 85% ROW 97% ROW CALAX CTBEx Original proponent CALAX Target construction: Target completion: 2022 2020 40% ROW
Slide 27: Residents
66 1,700 57,000 Retail and commercial locators Hectares of land Residents express 27
Slide 28: PRO-FRIENDS Financial Highlights
PRO-FRIENDS Financial Highlights Revenues Reservation Sales: Php21.2B Ave. Houses Completed: 452 units/mo 6.9 10.4 10.4 +50% Ave. Bank Takeout: Php649M/mo to Php730M/mo in Php Billion 6.9 0.9 Real estate sales +50% from Php6.3B to 0.6 9.5 Other Income Php9.5B 6.3 RES Excluding sale of
Slide 29: Insurance
Insurance 29
Slide 30: Insurance Industry Updates
Insurance Industry Updates As of September 2018 Total Premiums Total Paid-up Capital +18% +6 % 240 52 49 204 in Php Billion +11% 66 in Php Billion 60 29 +1% 30 +20% 174 145 +11% 22 19 3Q 2017 3Q 2018 3Q 2017 3Q 2018 Legend Life insurance sector General/Non-Life insurance sector Source: Insurance Com
Slide 31: Fo GT CAPITAL
Fo GT CAPITAL HOLDINGS INCORPORATED eS ) RED, > Ser ee = STE > a : = ' ete 5. = i He a —a4 rae — a ry
Slide 32: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium New Business (APE) +13% from Php6.3B to Php7.1B due to favorable Protection & 31.6 35.4 +15% Health line o Regular Premium (RP) +17% in Php Billion Traditional +38% 26.4 29.7 AXA +13% Unit-linked +13% CPAIC +7% o Single Premium (SP) +4% 5.
Slide 33: Strong synergy and growth
Strong synergy and growth • Persistency Ratio: 85.3% ▲from 84.2% in FY 2017 • Exclusive financial advisors: 5,272 ▲from 4,000 in FY 2017 • Total bancassurance (Metrobank and PSBank) branches: 957 • AXA branches nationwide 55 Assets Under Management +2% 94.3 96.5 In Billion PHP FY 2017 FY 2018 33
Slide 34: Banking
Banking 34
Slide 35: Full-Year 2018 Peer Banks Highlights
Full-Year 2018 Peer Banks Highlights Net Income (Php Billion) Net Interest Margin – NIMs (%) +17% +3% 32.7 +21% 3.8% 3.6% 22.0 23.1 3.1% BDO MBT BPI MBT BDO BPI NII less Opex (Php Billion) Fee Income* (Php Billion) 15.2 +6% +13% -2% 12.2 30.7 14.0 11.0 0.3 MBT BPI BDO BDO MBT BPI *Includes Service F
Slide 36: Full-Year 2018 Peer Banks Highlights
Full-Year 2018 Peer Banks Highlights Total Equity (Php Billion) Total CAR and CET1 (%) +10% +40% +38% CAR CET1 327 283 17.0% 249 16.1% 15.2% 14.6% 13.7% 12.1% Minimum BDO MBT BPI CET1* Total Loans (Php Billion) 10.17% +15% +10% +13% 2,001 1,391 1,350 MBT BDO BPI BDO MBT BPI *Minimum 11% by January 2
Slide 37: <j GT CAPITAL
<j GT CAPITAL HOLDINGS INCORPORATED % eh ee AN |< Metrobank § C—O Tadbat_
Slide 38: Metrobank Financial Highlights
Metrobank Financial Highlights Operating Income Net Interest Income +12% (Php68.8B or 74% of Operating +10% 92.6 84.2 23.8 Income) 22.8 ₋ NIMs from 3.75% to 3.82% in Php Billion 61.4 68.8 Non-Interest Income ₋ Loan portfolio +10% from Php1.3T to +4% Php1.4T Net Int. Income Non-Interest incom
Slide 39: Key Performance Drivers
Key Performance Drivers Loans and Receivables (Php Billion) Total Loan Portfolio Breakdown +10% Consumer 1,391 24% Commercial +8% +11% 76% Consumer Loan Portfolio Breakdown Credit Cards, 1,265 Others +15% 22% 33% Home +8% Auto 45% +4% FY 2017 FY 2018 Source: 17-C Report as of 31 December 2018 39
Slide 40: Infrastructure & Utilities
Infrastructure & Utilities 40
Slide 41: Metro Pacific Investments
PACIFIC ee INVESTMENTS ’
Slide 42: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income (Core) Power 17.8 19.6 +10% o Meralco - Core NI Php22.4B +11% in Php Billion 0.4 0.3 Logistics / Indra 0.7 0.8 9.4 LRMC/AFPI o GBPC - Core NI Php2.5B -15% 10.8 Hospitals 3.9 4.4 Meralco/Beacon/GBPC Toll Roads - Core NI Php4.5B 3.7
Slide 43: Recent Developments
che bs l fa» | ‘GT CAPITAL HOLDINGS INCORPORATED | 43
Slide 44: Metrobank to merge Metrobank Card Corporation (MCC)
Metrobank to merge Metrobank Card Corporation (MCC)* The proposed transaction will unlock the value of MCC, being a wholly owned subsidiary of Metrobank, and help realize the following objectives: (1)improve synergy and cross-sell, (2)increase profitability and improve capital efficiency, (3)enable
Slide 45: New vs. Used Vehicle Sales Per Annum, 2015-2017
New vs. Used Vehicle Sales Per Annum, 2015-2017 US Japan China 1.4x 2.3x 6.8 Mn 29.0 Mn 39.0 Mn 5.0 Mn 17.0 Mn 12.0 Mn New Vehicle Sales Used Vehicle Sales New Vehicle Sales Used Vehicle Sales New Vehicle Sales Used Vehicle Sales Indonesia Thailand 1.6x 2.5x 1.6 Mn 2.0 Mn 1.0 Mn 0.8 Mn New Vehicle S
Slide 46: Our existing automotive value chain
Our existing automotive value chain #1 70 dealers Market Share Wholesale Retail Financing Insurance Four margins in one unit sold 46
Slide 47: Extending the automotive value chain
Extending the automotive value chain Financing Parts & Maintenance Reposessed Auction Insurance assets within the Group 47
Slide 48: Why auction?
Extending the automotive value chain Online infrastructure Better, more transparent pricing of repossessed assets Sets the proper benchmark Why for used vehicle pricing auction? 48
Slide 49: Used car auction house operations
Extending the automotive value chain to Used car auction house operations 26 March 2019 49
Slide 50: Signing Ceremony
Extending the automotive value chain to Used car auction house operations Signing Ceremony 26 March 2019 | GT Tower International, Makati 50
Slide 51: Thank You!
‘Siig GT CAPITAL HOLDINGS INCORPORATED Qe Thank You! tho be Oe