INVESTOR BRIEFING dbAccess Philippines 2014
Philippine Seven CorporaBon 11th Floor The Columbia Tower, Or4gas Avenue, Mandaluyong City, Philippines 1550 Email: investor-‐rela4ons@7-‐eleven.com.ph October 8-‐9, 2014
Who We Are MISSION: To make daily life easier by providing modern convenience.
VISION: To be the best retailer of convenience for emerging markets.
VALUES: We value integrity, teamwork, and reliability. We are data-‐driven and customer focused in our decisions. -1-
Shareholding Structure Present Shareholding Structure
Agus Development Corpora4on
Progressive Development Corpora4on
Asian HoldingsCorpora4on Paterno
Arisaig Asia Consumer Fund Ltd.
President Chain Store (Labuan) Holdings, Ltd.
51.56%
Others
23.43%
Arisaig Asia Consumer Fund Ltd.
10.47%
Paterno Family
7.15%
Asian Holdings Corpora4on
3.37%
Agus Development Corpora4on
2.87%
Progressive Development Corpora4on
1.15%
Others
-2-
President Chain Store (Labuan) Holdings, Ltd.
SEVN Share InformaBon Price (September 30, 2014)
Php 91.00
Hi/Low (12 months)
Php 77.00 – Php 130.00
Free Float
32%
Outstanding Shares
458.44 million
Market Capitalization
Php 41.72 billion
2008
2009
2010
2011
2012
2013
2014
Stock
.10
.10
.05
.15
.15
.15
-
Cash
-
-
.05
.10
.10
.10
.30
Total
.10
.10
.10
.25
.25
.25
.30
43.3%
31.0%
18.4%
27.2%
24.3%
21.4%
20.1%
Dividend Payment
Dividend Payout
-3-
Geographic Coverage
As of Sep. 30, 2014 7-Eleven has at least 60% market share. -4-
PSC History at a Glance 1982
PSC was established.
1984
Opened first store.
1996
Opened 100th Store.
1998
PSC launches its IPO; Opened first Franchise store.
2000
PCSC purchased 50.4% of PSC’s common shares.
2005
Moved to a full-scale distribution center.
2007
PhilSeven Foundation was established.
2010
Opened 500th Store.
2012
Entered Visayan Market through Cebu.
2013
Opened 1,000th Store.
-5-
Store Count Store Count from 1984 to 2013 1000 800 600 400 200 0 1984 1990 2000 2005 2010 2011 2012 2013
• Number of stores grew by 20% to 25% annually • Close to 70% of stores are franchised • Expects to end 2014 with 1,250 stores. -6-
Proprietary Products By Section
Non-food 18%
Services 1%
Food 81%
-7-
PromoBons and Events
-8-
Franchise Packages Franchise Type Investment Building
FC1
FC2
Investor
Industrial
USD 80,000-‐100,000
USD 20,000-‐25,000
Franchisee
PSC
Merchandise
Franchisee
Equipment Cash Bond (PGD) Term
PSC -‐
Franchisee 5+5 years
66% FC, 34% PSC
40% FC, 60% PSC
Rent
Franchisee
PSC
Electricity
50 -‐ 50 split
60 -‐ 40 split
GP Split
Manpower
Franchisee
* USD 1.00 = PhP 44.00
-9-
Financial Highlights 2013
2012
% change 17,240
Sales
13,364
29.0
682.6
Net income
46.7
465.2 1,674.3
EBITDA
41.1
1,186.8
(Php million) 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 (100.0) Net income
Net income
5Y
R+3 C AG
5.0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(2.0)
13.8
20.1
54.8
84.3
155.8
276.9
356.3
465.2
682.6
- 10 -
Financial Highlights 6,000 (in Php Million except Book Value per Share)
As of Dec. 31, 2013
Total Assets
5,961.8
30%
Current Assets
2,606.1
46%
Non-current Assets
3,355.7
20%
Current Liabilities
3,113.6
30%
Total Liabilities
3,420.6
28%
Stockholders’ Equity
2,541.2
33%
5.54
33%
Balance Sheet and Cash Flow 5,000
4,000 Total Assets Total Liabilities
3,000
Stockholders' Equity
2,000
Book Value per Share (P) Cash Flow from Operating Activities
1,000
Cash Flow used in Investing Activities Cash Flow from Financing Activities
2013
2012
- 11 -
% change
1,799.6 107% -1,268.5
41%
26.8 -48%
Financial Highlights EPS 2.00
Selected Financial Ratio
1.50
Liquidity and Leverage Ratio: Current Ratio (x)
1.00
EPS
2012
0.79
0.75
-16.3%
3.3%
Return on Equity (%)
30.7
27.5
Return on Capital Employed (%)
30.2
24.7
EBITDA Margin (%)
11.1
9.9
EBIT Margin (%)
6.4
5.6
Net Margin (%)
4.4
3.8
Days Inventory Outstanding
28.0
26.8
Days Payable Outstanding
42.3
40.8
Cash Conversion Days
-14.3
-14.0
Net Debt to Equity (%)
0.50
2013
Profitability Ratio: 2009
2010
2011
2012
2013
0.34
0.60
0.78
1.01
1.49
Activity Ratio:
- 12 -
ComparaBve Metrics 2013 PSC (Philippines)
PCSC (Taiwan)
CPALL (Thailand)
1,009
4,922
7,429
Net Margin %
4.0
6.3
4.7
EBITDA %
9.9
8.9
7.9
EBIT %
5.8
5.0
6.4
ROE
30.7
36.1
42.3
Days inventory outstanding
28.0
20.8
21.2
Days payable outstanding
42.3
54.2
64.6
7-‐Eleven Key Performance Ra.o: Store count
- 13 -
1st Half 2014 Financial Highlights 2014
% change
2013 9,778.9
Sales
Net income
EBITDA
14.5
8,543.1 323.9
9.4
296.1 859.5
17.7
730.1
(in PhP million)
YTD Net Income 350.0 300.0 250.0 200.0 150.0 100.0 50.0 YTD Net Income
2010
2011
2012
2013
2014
130.8
118.7
164.3
296.1
323.9
- 14 -
Future Growth affected by trend of tradiBonal stores PHILS by Channel | YTD TY vs YTD LY Value Share of Trade
PHILS by Channel | Period Ended MAY14 Value Change % vs Year Ago
Source: AC Nielsen 2014
- 15 -
PotenBal to improve penetraBon… 90,000 80,000
Philippines
PopulaBon Per Store
Demographics
50,000
Luzon
40,000
Thailand
Taiwan
49%
34%
75%
AGE
%
%
%
0-‐14
34%
20%
15%
15-‐24
19%
15%
14%
25-‐54
37%
46%
48%
55+
6%
10%
12%
896/sq.mi.
342/sq.mi.
1,664/sq.mi
Urbaniza4on
70,000 60,000
Philippines
Density 30,000
Metro Manila
20,000 10,000
Thailand
Taiwan
Bangkok
0 0
5,000
10,000
15,000
20,000
25,000
GDP Per Capita - 16 -
30,000
35,000
40,000
* End of PresentaBon *
