JG Summit Holdings Inc. · PSE:JGS
JG Summit — 9M 2018 Earnings Presentation
18 slides from JG Summit's earnings presentation, Nov 9, 2018
Slide 1: 9M 2018 Unaudited Results Investors' Briefing
9M 2018 UNAUDITED RESULTS INVESTORS’ BRIEFING November 9, 2018 Lance Y. Gokongwei President and CEO Mike P. Liwanag Senior Vice President
Slide 2: Agenda
Agenda 1 9M 2018 Unaudited Results 2 Plans, Prospects and Business Updates 2
Slide 3: JGS: Topline growth slowed down in Q3 while decline in profits continued to taper
JGS: Topline growth slowed down in Q3 while decline in profits continued to taper • Strong revenue growth of RLC, CEB and In billion pesos Growth (%) vs SPLY RBank was tempered by flat performance 1Q18 2Q18 3Q18 9M18 1Q 2Q 3Q 9M of URC and Petrochem leading to a deceleration in JGS’ topline growth i
Slide 4: URC: Sales decelerated while margins recovered in 3Q
URC: Sales decelerated while margins recovered in 3Q 1Q 2Q 3Q 9M Revenue % chg vs SPLY Sales Breakdown (9M18) % chg vs LY 92.4 95.5 +3% 19% Branded Consumer 0% 31.2 -1% Foods Philippines 31.6 47% 33.2 +10% Branded Consumer 30.1 +5% Foods International 30.7 31.2 +2% 34% Agro-Industrial & Commodities
Slide 5: CEB: Net loss for the quarter mainly due to higher fuel price and forex impact
CEB: Net loss for the quarter mainly due to higher fuel price and forex impact 1Q 2Q 3Q 9M Revenue % chg vs SPLY Sales Breakdown (9M18) 50.3 54.0 +7% 19% % chg vs LY 16.2 +10% 14.7 Passenger +7% 19.6 +4% 8% Cargo 18.8 73% +25% Ancilliary +3% 16.9 18.3 +8% Revenue 2017 2018 Net Income % chg vs SPLY •
Slide 6: RLC: Growth momentum amplified by the gain on sale of land to JVs
RLC: Growth momentum amplified by the gain on sale of land to JVs 1Q 2Q 3Q 9M Revenue % chg vs SPLY Sales Breakdown (9M18) 21.8 +31% % chg vs LY 16.6 +56% 30% Malls +13% 8.7 46% Offices +17% 5.6 +21% Hotels +8% 6.7 5.6 IID +32K% 6.3 +17% 5.4 10% Residential +29% 7% 13% 2017 2018 Net Income % chg vs
Slide 7: Petrochem: Lower sales volumes and higher naphtha prices dragged 3Q results
Petrochem: Lower sales volumes and higher naphtha prices dragged 3Q results Revenue % chg vs SPLY EBITDA Net Income 30.5 32.4 +6% 6.2 11.2 +1% 11.1 5.0 % chg vs % chg vs 2.2 3.6 SPLY SPLY 8.7 10.7 +24% -42% 1.77 -61% 1.3 1.0 -55% 0.81 1.9 -81% 1.3 -0.3% 0.34 10.8 10.4 -3% 2.7 2.40 0.77 -4% 1.3 -52%
Slide 8: Robinsons Bank: Solid growth sustained
Robinsons Bank: Solid growth sustained Gross Revenue Net Interest Income Loans 4.3 +32% 2.6 +20% 65.7 +32% 3.2 2.2 49.6 21.0 +42% 1.5 +32% 0.9 +20% 14.9 1.2 0.8 1.4 +31% 0.8 +18% 34.8 44.7 +29% 1.1 0.7 1.0 1.4 +33% 0.7 0.8 +21% 9M17 9M18 2017 2018 2017 2018 Commercial Consumer 1Q 2Q 3Q 9M Consolidat
Slide 9: JGS: Balance sheet remains healthy
JGS: Balance sheet remains healthy Consolidated Parent Dec 2017 Sep 2018 Growth Dec 2017 Sep2018 Growth Cash 18.8 16.4 -7% Cash(1) 55.8 56.6 1% Total LT Debt 71.8 89.4 24% Financial Debt 227.5 237.6 4% Total ST Debt 19.3 6.5 -70% Total LT Debt 181.7 209.1 15% Net Debt 72.3 79.5 7% FX-Denominated 104
Slide 10: CEB, Petrochem and RLC mainly contributed to JGS' 9M18 CAPEX spending
CEB, Petrochem and RLC mainly contributed to JGS’ 9M18 CAPEX spending 9M18 CAPEX SPEND: Php47.9 bn 90 • Capacity expansion of BCF Int’l, Sugar and Flour 80 78.1 70 • Land acquisitions 22.0 • Development of malls, 60 offices, hotels and warehouse facilities 50 47.9 16.4 • Aircraft acquisition (5 40 1
Slide 11: Key Business Updates
Key Business Updates HOLDINGS, INC.
Slide 12: Plans, Prospects and Business Updates
Plans, Prospects and Business Updates ▪ Kicked-off major projects/ programs which will have a medium to long term impact to the business ▪ Route-to-market (RTM) enhancements to improve numeric distribution ▪ Lean Manufacturing Excellence Pilot Program and Supply Network Study and Redesign ▪ Developm
Slide 13: Thank you!
Thank you! For more information, please contact: JG Summit Investor Relations IR@jgsummit.com.ph +632 470 3919 13
Slide 14: Appendix
Appendix HOLDINGS, INC.
Slide 15: Corporate Structure
Corporate Structure Food & Beverage AirTransportation Stake: 55.3% Real Estate Mkt Cap: ₱288.1 bn Att Mkt Cap: ₱159.2 bn Stake: 67.6% Stake: 61.0% Mkt Cap: ₱41.6 bn Mkt Cap: ₱109.1 bn Att Mkt Cap: ₱28.1 bn Att Mkt Cap: ₱66.5 bn Petrochemicals Banking Market Capitalization ₱344.5 bn Stake: 100% Stake
Slide 16: Balance Sheet
Balance Sheet (Php Millions) As of Sep 2018 As of Dec 2017 Cash & cash equivalents (including Financial assets at FVPL and AFS 79,570 89,694 investments) Other current assets 120,626 117,022 Investments in Associates and JVs - net 140,588 138,539 Property, plant, and equipment 205,547 181,660 Other
Slide 17: Income Statement
Income Statement (Php Millions) YTD Sep 2018 YTD Sep 2017 YoY REVENUES 217,518 202,640 7% Cost of sales and services 142,330 126,925 12% GROSS INCOME 75,188 75,715 -1% Operating Expenses 40,268 36,994 9% OPERATING INCOME 34,920 38,721 -10% Financing costs & other charges (6,807) (5,747) 18% Foreign
Slide 18: Performance of Minority Investments
Performance of Minority Investments In PHP Billions in SGD Millions In PHP Billions REVENUES REVENUES REVENUES 227.4 214.4 19.5 1031.9 17.5 500.0 9M17 9M18 9M17 9M18 9M17 9M18 NET INCOME* NET INCOME* NET INCOME* 18.2 226.6 228.0 15.9 2.0 1.9 9M17 9M18 9M17 9M18 9M17 9M18 *from operations, attributab