FY 2017 Financial Results Investor Presentation - Webtogo
18
FY 2017 Financial Results Investor Presentation Cosco Capital, Inc. 1
Transcript of FY 2017 Financial Results Investor Presentation - Webtogo
FY 2017 Financial ResultsInvestor Presentation
Cosco Capital, Inc.
1
These presentations and/or other documents have been written and presented byCOSCO CAPITAL, INC. (COSCO). COSCO is solely responsible for the accuracy andcompleteness of the contents of such presentations and/or other documents. Thirdparties, other than COSCO, do not have any responsibility for or control over thecontents of such presentations and/or other documents. No endorsement is intendedor implied notwithstanding the distribution of this presentation and/or otherdocuments during the analysts and investors calls and meetings of COSCO. Thematerials and information in the presentations and other documents are forinformational purposes only, and are not an offer or solicitation for the purchase orsale of any securities or financial instruments or to provide any investment service orinvestment advice.
2
Head Office Address2nd floor, Tabacalera Building, 900 Romualdez Street, Paco, Manila, 1007Philippines
Disclaimer
Company Overview
100% 100%
100%
90%
51%
• Ellimac Prime Holdings, Inc.,
• Fertuna Holdings Corp., • Patagonia Holdings
Corp., • Nation Realty, Inc.• NE Pacific Shopping
Centers Corporation• Pure Petroleum Corp.,
Lucio Co Family73%
Public27%
3
Grocery Retailing Liquor Distribution Specialty RetailingCommercial Real
Estate
Revenue & Net Income Contribution
4
PHP 145.8 billion
Revenues
PHP 4.92 billion
Grocery Retailing
86%
Specialty Retail10%
Liquor Distribution3%
Real Estate1%
PATMI
Grocery retailing
60%
Real estate 20%
Liquor distribution
14%
Specialty retail 10%
Oil and Gas-4%
FY 2017 Consolidated Financial Highlights
(In PHP millions)
5
+12.8% +11%
+4.9%+7.3%
Revenues Gross Profit
EBITDA Net Income
6,2366,987 7,469 7,833
6.0% 6.0% 5.8% 5.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2,000
4,000
6,000
8,000
10,000
2014 2015 2016 2017
NIAT NIAT Margin
98,787116,752
129,186145,750
2014 2015 2016 2017
17,28719,964 21,912 24,322
17.5% 17.1% 17.0% 16.7%
8.0%
13.0%
18.0%
23.0%
28.0%
33.0%
38.0%
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2014 2015 2016 2017GP GP Margin
10,17912,094 12,926 13,876
10.3% 10.0% 10.0% 9.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2014 2015 2016 2017EBITDA EBITDA Margin
Grocery Retailing: FY 2017 Financial Highlights
6
Revenues
EBITDA and Margin
Gross Profit and Margin
Net Profit and Margin
+10.6%
+5.7%+7.3%
+11.4%
84,69797,172
112,589124,491
2014 2015 2016 2017
14,76016,489
18,53820,655
17.4% 17.0% 16.5% 16.6%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
5,000
10,000
15,000
20,000
25,000
2014 2015 2016 2017
GP GP Margin
8,133 8,8479,921 10,644
9.6% 9.1% 8.8% 8.5%
0.0%
5.0%
10.0%
15.0%
20.0%
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
13,000
15,000
2014 2015 2016 2017EBITDA EBITDA Margin
4,5205,002
5,526 5,840
5.3% 5.1% 4.9% 4.7%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2014 2015 2016 2017
NIAT NIAT Margin
(In PHP millions)
Grocery Retailing: Operational Highlights
7
• Puregold opened 30 new stores out of targeted 25 new stores
• S&R opened 2 new warehouses and 9 new S&R QSR
• Acquired and converted 5 B&W Supermarket
• As of FY 2017, the Grocery Retailing segment is operating a total of 372 stores
• SSSG PGOLD only is at 4.4% while S&R is at 6.5%
PUREGOLD S&R S&R QSRNE
BodegaBudgetlane
Metro Manila 114 6 22 0 1
Luzon 167 4 8 9 7
Visayas 20 2 1 0 0
Mindanao 8 2 1 0 0
Total 309 13 31 9 8
Liquor Distribution: Products
8
TequilaJose Cuervo
WhiskeyBushmills
Chivas Regal
CognacMartel
VodkaAbsolut
LiqueursJagermeister
Specialty BeveragesRed Bull
Various Wines
BrandyFundador
Fundador Light
WhiskeyJim Beam
Glenfiddich
BrandyAlfonso
Alfonso LightExcelente
TequilaPatron
WhiskeyJohnnie Walker
Jack Daniels
Various Wines
4,8415,677 5,904
6,663
2014 2015 2016 2017
Liquor Distribution: FY 2017 Financial Highlights
9
+12.9%
+8.1%-10.8%
+11%
(In PHP millions)
1,188 1,299 1,344 1,491
24.5% 22.9% 22.8% 22.4%
8.0%
13.0%
18.0%
23.0%
28.0%
33.0%
38.0%
43.0%
48.0%
500
1,000
1,500
2,000
2,500
2014 2015 2016 2017
GP GP Margin
838 919 1,006898
17.3% 16.2% 17.0% 13.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-100
100
300
500
700
900
1,100
1,300
1,500
2014 2015 2016 2017EBITDA EBITDA Margin
603660
581 628
12.5% 11.6% 9.8% 9.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
-50
150
350
550
750
950
2014 2015 2016 2017NIAT NIAT Margin
Revenues
EBITDA and Margin
Gross Profit and Margin
Net Profit and Margin
860,048 951,042 1,147,165 1,380,717 253,833 306,487
318,061 325,180
187,228 185,260 217,210
263,627
88,792 113,628
147,036 199,534
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2014 2015 2016 2017
Category Volume Sold (in cases)
Brandy Other Spirits Wines Specialty beverages
Liquor Distribution: Total Volume Sales
10
• 19% growth in total volume of cases sold • Growth driven by the increase in the brandy segment.
CATEGORY 2017 % 2016 % Increase %
Brandy 1,380,717 64% 1,147,165 63% 233,552 20%
Other spirits 325,180 15% 318,061 17% 7,119 2%
Wines 264,627 12% 217,210 12% 47,417 22%
Specialty Beverages 199,534 9% 147,036 8% 52,498 36%
TOTAL 2,170,058 100% 1,829,472 100% 340,586 19%
1,389,901 1,556,417 1,829,472 2,170,058
Liquigaz: FY 2017 Financial Highlights
11
+47.1%
+71.8%+50.5%
+34.6%
(In PHP millions)
18,956
11,8548,927
13,128
FY 2014 FY 2015 FY 2016 FY2017
1,014932
742
999
5.4%9.8%
8.3% 7.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
200
400
600
800
1,000
1,200
FY 2014 FY 2015 FY 2016 FY2017GP GP Margin
734 733
560
843
3.9%6.2% 6.3% 6.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
100
200
300
400
500
600
700
800
900
FY 2014 FY 2015 FY 2016 FY2017EBITDA EBITDA Margin
279
399
273
469
1.5%3.4%
3.1% 3.6%
0.0%
5.0%
10.0%
15.0%
20.0%
100
200
300
400
500
FY 2014 FY 2015 FY 2016 FY2017
NIAT NIAT Margin
Revenues
EBITDA and Margin
Gross Profit and Margin
Net Profit and Margin
Liquigaz: Operational Highlights
LIQUIGAZ PHILIPPINES CORPORATION
• 13.8% increase in total sales volume due to higher sales from wholesale and major clients
• New terminal facility in Sairaya, Quezon to start full commercial operations in 2H 2018
12
344,282 348,459 323,313 372,543
88,714 74,692 70,676 75,863
-
100,000
200,000
300,000
400,000
500,000
600,000
2014 2015 2016 2017
Total Volume (mT)
Upstream Downstream
432,996 423,151 393,989 448,406
Office Warehouse: FY 2017 Financial Highlights
13
+18.9%
+3.0%+10.8%
+15.6%
(In PHP millions)
1,0431,302
1,5351,825
FY 2014 FY 2015 FY 2016 FY2017
268354
417482
25.7% 27.2% 27.2% 26.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
100
200
300
400
500
600
FY 2014 FY 2015 FY 2016 FY2017GP GP Margin
46
97108
120
4.4%7.5% 7.1% 6.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
20
40
60
80
100
120
140
FY 2014 FY 2015 FY 2016 FY2017EBITDA EBITDA Margin
23
54 57 59
2.2%
4.1%3.7% 3.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
10
20
30
40
50
60
70
FY 2014 FY 2015 FY 2016 FY2017
NIAT NIAT Margin
Revenues
EBITDA and Margin
Gross Profit and Margin
Net Profit and Margin
Office Warehouse: Operational Highlights
OFFICE WAREHOUSE, INC.
• Strong growth driven by store expansion and enhanced product offerings
• Office Warehouse opened 14 new stores during 2017; closed down 3 stores
14
2014 2015 2016 2017
# of Stores 48 59 71 82
Net Selling Area 11,036 sqm 14,014 sqm 15,945 sqm
Real Estate: FY 2017 Financial Highlights
15
-5.5%
-5.0%-4.9%
-12.5%
(In PHP millions) Revenues
EBITDA and Margin
Gross Profit and Margin
Net Profit and Margin
2,210 2,423 2,326 2,197
2014 2015 2016 2017
1,275
1,4641,404
1,22857.7%
60.4% 60.4%55.9%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
2014 2015 2016 2017GP GP Margin
1,346
1,504
1,394
1,32460.9% 62.1% 59.9% 60.3%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
200.0%
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
2014 2015 2016 2017EBITDA EBITDA Margin
959
1,028 1,023
972
43.4% 42.4% 44.0% 44.2%
0.0%
50.0%
100.0%
150.0%
920
940
960
980
1,000
1,020
1,040
2014 2015 2016 2017NIAT NIAT Margin
Real Estate Group: Operational Highlights
• Total of 52 commercial properties with 96% average occupancy rate
• Pure Petroleum operating at 100% capacity in 2017 and 2016 (9 storage tanks with 88.5Mliters capacity)
• Acquired 4 property for future development located in Subic, Zambales, Antipolo, Rizal,Loag, Ilocos Norte, Maria Aurora, Aurora and awarded as winning bidder for propertylocated in Bayawan, Negros Orienta
• Ayala Mall Marikina, the 3rd co-develop property with Ayala, opened last December 2017
• On-going construction & development of 4 new community malls in Cavite, Muntinlupa,Subic and Las Pinas
16
Category FY2017 FY2016 GLA/Lot Area in
sq.m.
Land under lease 9 9 146,148.70
Commercial Buildings 29 29 255,767.30
Under Development 4 14,973
Future Development 10 9 104,709
Total 52 47
CAPEX Guidance for FY 2018
• CAPEX Budget of Php 5.6 billion in 2018- Php 3.7 billion for Puregold Group
- Php 1.5 billion for Real Estate Group
- Php 300 million for Liquigaz
- Php 100 million for Office Warehouse
• To be funded by internally generated cash and short term untapped bank credit lines if necessary
17
Thank you.
www.coscocapital.com
