Shell Pilipinas Corporation · PSE:SHLPH
Shell Pilipinas — Pilipinas Shell Petroleum — FY2016 Earnings Presentation
16 slides from Shell Pilipinas's earnings presentation, March 2017
Slide 1: Analysts and Investors Briefing, March 2017
Pilipinas Shell Petroleum Corporation Analysts and Investors Briefing March 2017 Pilipinas Shell Petroleum Corporation
Slide 2: Disclaimer
Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document is highly confidential and is being
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS 3
Slide 4: PSPC – leading integrated downstream player in the Philippines
PSPC – leading integrated downstream player in the Philippines Key facts1 PSPC shareholding #1 most efficient fuel retail network The Insular Life Spathodea #2 largest fuel retailer in the Philippines: Shell Overseas Assurance Campanulata Public Investments Company Ltd Inc.2 BV #2 largest comm
Slide 5: Significant premium product proposition and strong customer loyalty
Significant premium product proposition and strong customer loyalty Retail fuel offerings Fuel retail loyalty 206k Retail fuel offering brands (by volume) Other branded products1 9.2% Target to increase to 27.0% Shell PPC 40% by 2020 74% 63.8% SM Advantage Access to Shell fuel technology Leading bra
Slide 6: Balanced retail portfolio
Balanced retail portfolio Company owned¹, dealer operated (“CODO”) Dealer owned, dealer operated (“DODO”) PSPC leases site, dealer operates 45% Dealer owns / leases site and operates station 55% Mostly urban locations Mostly rural locations Capital costs borne by PSPC Capital costs borne by de
Slide 7: Significant non-fuel retail growth potential
Significant non-fuel retail growth potential Under penetrated retail sector and PSPC’s extensive fuel retail footprint presents an attractive opportunity in non-fuel retail Retail sales1 per capita (US$), 2016 9,807 Convenience store retail sales grew at a 2010-15 CAGR of 8.6%; High growth potenti
Slide 8: Commercial volumes impacted by lower power demand but EBITDA offset
Commercial volumes impacted by lower demand from the power sector but EBITDA impact offset by Aviation, Lubricants and Bitumen growth Differentiated commercial fuel portfolio Commercial product volumes sold (2016) Amongst the leading commercial fuel suppliers with premium offerings Commercial portfo
Slide 9: Tabangao Refinery key highlights
Tabangao Refinery key highlights Overview Crude feedstock supply and refined product slate 110 kbpd refinery complex Crude import by country Refined product slate (2016) of origin (2016) Refinery powered by natural gas supplied by the 8.0% Malaysia/ Malampaya gas field Brunei 6.0% Storage and
Slide 10: North Mindanao Import Facility – a game changer for the business
North Mindanao Import Facility – a game changer for the business North Mindanao Import Facility Strategic infrastructure enhances competitive advantage especially in the southern region of the Philippines Cost competitive logistics: c.US$5-6mm savings per year1 Potentially capture additional fuel de
Slide 11: Financial Summary
FINANCIAL SUMMARY 11
Slide 12: Summary financial highlights
Summary financial highlights Sales volume Reported figures include non-recurring / non-cash items such as ML Retail1 Commercial2 Other3 inventory gains / losses YoY % growth 6.0% 3.3% -1.7% 5,309 5,627 5,812 5,715 Net income was driven mainly by increased premium fuel 396 penetration, strong ret
Slide 13: PSPC has demonstrated continuous COSA-adjusted EBITDA growth
PSPC has demonstrated continuous COSA-adjusted EBITDA growth EBITDA (adjusted for COSA)1 EBITDA (adj. for COSA) in PHP 0.35 0.67 2.12 1.44 per liter EBITDA (adjusted for COSA) PHPmm PHPMM 14,000 12,000 ~11-12B 10,000 ~8B 8,000 6,000 ~5B 12,317 10,138 4,000 ~3B 2,000 3,760 1,883 0 2013 2014 2015 2016
Slide 14: Prudent balance sheet management
Prudent balance sheet management Historical and planned capital expenditure PHPbn 10 8 6.0 PSPC is independently funded with strong operating 6 5.3 cash flow generation 4 2.9 1.9 2 0 Capex cycle completed post refinery upgrade and NMIF PHPbn 2013 2014 2015 2016 commissioning, with stable near term c
Slide 15: Conclusion
Conclusion Attractive market exposure in Philippines downstream marketing – high volume growth, high margins and deregulated sector End-to-end value chain – integrated infrastructure and logistic network, including newly built North Mindanao Import Facility Superior operational and financial perform
Slide 16: Slide 16
Pilipinas Shell Petroleum — FY2016 Earnings Presentation on 6ix