Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — Q2 2022 Earnings Presentation
25 slides from Wilcon Depot's earnings presentation, Jul 28, 2022
Slide 1: Earnings Conference Call July 28, 2022
EARNINGS CONFERENCE CALL JULY 28, 2022 | 4:00PM
Slide 2: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS ILCON [EE
Slide 3: 2Q 2022 Results Highlights
2Q 2022 Results Highlights Financial Highlights Comparable Sales Summary 2nd QUARTER 2022 ✓ Php 8.290B Net Sales 15.0% SSSG GAPAN, NUEVA ECIJA ✓ 22.8% y-o-y Net Sales 2.9% Transaction Count growth 11.8% Ticket Size ✓ Php 1.006B NIAT Total Sales Mix ✓ 56.4% y-o-y NIAT growth LEMERY, BATANGAS 50.9% In
Slide 4: Second Quarter 2022
Second Quarter 2022 (In Php MM) 2Q2022 % Sales 2Q2021 % Sales % Growth Net Sales 8,290 100.0 6,751 100.0 22.8 Cost of Sales -5,064 -61.1 -4,258 -63.1 18.9 GPM rate increased to 38.9% Gross Income 3,226 38.9 2,493 36.9 29.4 Operating Expenses -1,840 -22.2 -1,603 -23.7 14.8 Lease-related expense Inter
Slide 5: Total Net Sales Breakdown – 2Q 2022
Total Net Sales Breakdown – 2Q 2022 Home 2Q2022 Projects, Home 2Q2021 Projects, Php Millions Essentials, 65, 0.8% Essentials, 44, 0.6% 147, 1.8% 127, 1.9% 22.8% Depots, Depots, 8,078, 97.4% 6,580, 97.5% Sales Growth per Store Format Product Category Performance 2Q2022 VS 2Q2021 2Q2022 VS 2Q2021 Bett
Slide 6: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend 79.7% 15.0% 9.8% 8.6% 7.9% 1.9% 2Q2022 2Q2021 2Q2020 2Q2019 1Q2022 1Q2021 1Q2020 1Q2019 -8.0% -47.6% 6
Slide 7: First Half 2022 Results
FIRST HALF 2022 RESULTS ILCON [EE
Slide 8: 1H 2022 Results Highlights
1H 2022 Results Highlights Financial Highlights Comparable Sales Summary Php 1.347B CAPEX ✓ Php 15.942B Net Sales 11.8% SSSG Opened 3 ✓ 18.7% y-o-y Net Sales -0.4% Transaction Count new stores growth 12.3% Ticket Size 1ST HALF 2022 ✓ Php 1.856B NIAT • Mayamot, Antipolo Total Sales Mix • Gapan, Nueva
Slide 9: First Half 2022
First Half 2022 (In Php MM) 1H2022 % Sales 1H2021 % Sales % Growth Net Sales 15,942 100.0 13,426 100.0 18.7 Cost of Sales -9,784 -61.4 -8,512 -63.4 14.9 GPM rate increased to 38.6% Gross Income 6,158 38.6 4,914 36.6 25.3 Operating Expenses -3,606 -22.6 -3,155 -23.5 14.3 Lease-related expense Interes
Slide 10: Total Net Sales Breakdown – 1H 2022
Total Net Sales Breakdown – 1H 2022 Home 1H2022 Projects, Home 1H2021 Projects, Essentials, 118, 0.7% Essentials, 91, 0.7% Php Millions 286, 1.8% 267, 2.0% 18.7% Depots, Depots, 15,538, 97.5% 13,068, 97.3% Sales Growth per Store Format Product Category Performance 1H2022 VS 1H2021 1H2022 VS 1H2021 B
Slide 11: Comparable Sales Summary
Comparable Sales Summary Trend 36.4% 11.8% 12.1% 4.7% 5.2% 1H2022 1H2021 1H2020 1H2019 1Y2021 1Y2020 1Y2019 -13.6% -28.3% 11
Slide 12: Balance Sheet
Balance Sheet Unaudited Jun 30, 2022 Audited Dec 31, 2021 Current Assets 16,214 17,189 Noncurrent Assets 17,621 15,149 Total Assets 33,834 32,337 Current Liabilities 7,971 8,880 Noncurrent Liabilities 7,390 5,979 Total Liabilities 15,361 14,859 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,
Slide 13: 1H 2022 CAPEX Investment
1H 2022 CAPEX Investment Expansion-related . 1,247 (new stores, renovations, eqpt, warehouses, etc) Solar Panel Project 56 IT Infrastructure and Projects 44 Total CAPEX (in millions Php) 1,347
Slide 14: Improving Margins
Improving Margins GPM 38.6 37.3 33.4 34.4 31.4 29.7 PFRS 16 EBITDAM PAS 17 18.9 15.8 EBITM 13.1 15.5 11.9 11.9 10.4 12.3 NPM 11.2 11.4 9.8 8.8 11.6 8.7 8.7 9.3 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 1H2022 Note: ROU depreciation and interest expense charged on lease liability were considered as
Slide 15: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 15
Slide 16: 2022 Outlook
2022 OUTLOOK ILCON [EE
Slide 17: 2022 Planned New Branches
2022 Planned New Branches 5 2022 4 Beg. Balance 73 9 Mayamot, Antipolo Mar, 2022 Gapan, Nueva Ecija 1st Half Apr, 2022 Lemery, Batangas 1 May, 2022 0 HE, Tagaytay City 2nd Half Jul, 2022 Bantay, Ilocos Sur Jul, 2022 Calapan, Oriental Mindoro 9 Total Planned New Abucay, Bataan Depot/Home Essentials S
Slide 18: FY2022 CAPEX Budget
FY2022 CAPEX Budget FY2022 Available Capex Breakdown Budget Balance Expansion-related 3,534 2,287 (new stores, renovations, eqpt, warehouses, etc) Solar Panel Project 236 180 IT Infrastructure and Projects 176 132 Total CAPEX (in millions Php) 3,946 2,599 18
Slide 19: Store network expansion
Store network expansion Continue to build and develop in- house products and carry exclusive brands Physical and online store layout, features and customer experience enhancements 19
Slide 20: Store Network Expansion
Store Network Expansion 100 Stores 2022 Planned New Branches 12 by 2025 5 39 4 8 9 2 6 9 82 1 1 1 Stores Nationwide 0 0 at year end 9 9 Stores Nationwide 78 (as of July 22, 2022) Total Planned New Depot/Home Essentials Stores - 9 20
Slide 21: Continue to Increase Margins Thru In-house & Exclusive brands expansion
Continue to Increase Margins Thru In-house & Exclusive brands expansion • Improve supply chain management • Enhance marketing efforts • Expand product lines/ ✓ Enhance the Company’s ability to provide its product offerings customers with value for money products ✓ Rationalize product offerings 21
Slide 22: Physical and online store layout, features and customer experience enhancements
Physical and online store layout, features and customer experience enhancements • Constant innovations in store layout, features and customer experience that add value to our relationship with our customers and consistently differentiate us from competition 22
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Slide 25: Disclaimer
Disclaimer The above contains statements about future events and expectations that constitute “forward-looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “may”, “plans”, “foresees”, “ta