Philippine Seven Corporation · PSE:SEVN

Philippine Seven — FY2023 Earnings Presentation

14 slides from Philippine Seven's earnings presentation, Apr 29, 2024

  1. Slide 1: FY 2023 Investor Briefing

    FY 2023 Investor Briefing investor-relations@7-eleven.com.ph

  2. Slide 2: A Global Brand

    A Global Brand Norway: 129 Sweden: 79 South Korea: 13,137 Canada: 596 United States: 13,189 China: 3,206 Denmark: 174 Japan: 21,488 Taiwan: 6,859 Mexico: 1,925 Vietnam: 99 83,000+ India: 47 Philippines: 3,768 STORES Thailand: 14,545 Cambodia: 82 WORLDWIDE Singapore: 500 Malaysia: 2,566 Australia: 76

  3. Slide 3: Global Recognition

    Global Recognition Asian Convenience Industry oie e Year Award Pictured left to right: Jackie Lai, Marketing Director 7-Eleven Philippines; Kazuki Furuya, Chairman of SEJ; Richard Lee, Vice President Marketing & Operations 7-Eleven spines; Armi Cagasan, Division Head of Strategic Merchandising, 7-El

  4. Slide 4: Store Network as of Dec. 31, 2023

    Store Network as of Dec. 31, 2023 7-Eleven By Location Store Count % Jan. 1 Opening Closure Dec. 31 Metro Manila 1,063 54 23 1,094 29% Luzon-ex MM 1,505 230 5 1,730 46% Visayas 489 60 8 541 14% Mindanao 336 71 4 403 11% Total 3,393 415 40 3,768 100% + 450 new 2019 2020 2021 2022 2023 2024 Target sto

  5. Slide 5: Shareholding Structure

    Shareholding Structure Present Agus Development Corp. Ownership 3% Structure ** Others-Foreign 12% Others-Filipino 3% % ownership Progressive Development Corp. President Chain Store (Labuan) Holdings, Ltd * 55.32% 2% Asian Holdings Corp. Others-Foreign 12.09% 7% President Chain Arisaig Asia Consumer

  6. Slide 6: Philippine economy fell short of target as rising inflation and interest rate hikes dampened household spending power

    Philippine economy fell short of target as rising inflation and interest rate hikes dampened household spending power +14%

  7. Slide 7: Retail Landscape

    Retail Landscape Value Share of Trade per Channel Value Share Value share Value Share Value Share Value Share Value Share Value Share Difference Difference 2019 2020 +14%2021 2022 2023 (2023 vs 2022) (2023 vs 2019) Supermarket 45.90% 47.60% 43.00% 41.00% 39.00% -2.00% -6.9% Grocery 5.40% 6.00% 6.90%

  8. Slide 8: FY 2023 Financial Performance

    FY 2023 Financial Performance SYSTEM-WIDE SALES OPERATING NET INCOME P82.15 billion CASH FLOW +24.5% P3.48 billion P12.0 billion OPERATING REVENUE +69.3% +62.8% P78.04 billion +24.5% Quarterly Net Income Trend * Amount in million Pesos 1,400 1,200 1,000 800 600 400 200 112.2 - (200) (400) (600) 2013

  9. Slide 9: Exceeded P82.0 billion in total sales and grew by 24.5%

    Exceeded P82.0 billion in total sales and grew by 24.5% Driven by SSSG of +13.0% on account of 11.4% increase in customer count, and net addition of 375 stores Systemwide Sales (in billion PhP) Same Store Sales Growth 39.2% 82.2 +20.5% 66.0 35.2% 56.3 +14% 28.8% 16.1% 26.6% 46.4 47.2 23.3% 10.3% 13.

  10. Slide 10: Share of high GP food service and cup drinks improved to 24.4%

    Share of high GP food service and cup drinks improved to 24.4% Owing to improved mobility and new product launches Merchandise Sales Mix Store Ownership Cigarettes FC 3 8% +20.5% FC 2 Alcoholic Foodservice 4% beverage 21% 2% 10% +14% Cup drinks Non- 3% FC 1 alcoholic beverage 42% 24% Corporate Consu

  11. Slide 11: Profitability Ratios (based on revenue from contracts with customers)

    Profitability Ratios (based on revenue from contracts with customers) Improving profitability is better manifested in operating and net margins Operating Income EBITDA 12.8% 13.1% 12.8% 12.6% 12.1% 7.7% 12.0% 11.6% 7.0% 7.3% 10.8% 11.0% 10.6% 11.3% 10.9% 6.4% 6.5% 10.0% 5.6% 5.6% 4.9% 4.8% 5.6% +14%

  12. Slide 12: Comparative Analysis

    Comparative Analysis Highest ROE and EBIT% but longest days inventory outstanding FY 2023 7-Eleven +14% Philippines Taiwan Thailand No. of stores 3,768 6,859 14,545 Operating income 6.45% 3.35% 6.24% Net margin 4.46% 5.37% 3.59% Days inventory outstanding 43.1 33.7 23.4 Days payable outstanding 45.5

  13. Slide 13: Margin Computation Guide

    Margin Computation Guide Items Accounts Formula Discussion • IFRS 15 implemented on Jan. 1, 2018 requires identification of distinct performance obligation. A Revenue from contracts with customers A.1 + A.2 + A.3 • Aggregates revenue from merchandise sales, service income and franchise revenues. • M

  14. Slide 14: Slide 14

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