Cos osco Cap apit ital, In Inc. FY2 Y2016 Res esult lts - - PowerPoint PPT Presentation

FY2 Y2016 Res esult lts Investor Presentation

Cos

• sco Cap

apit ital, In Inc.

1

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Head Offi fice ce Address ss 2nd floor, Tabacalera Building, 900 Romualdez Street, Paco, Manila, 1007 Philippines

Ag Agenda

• Company Overview
• FY2016 Consolidated Financial Results
• Core Businesses
• Grocery Retailing
• Liquor Distribution
• Specialty Retailing
• Commercial Real Estate

3

Co Company Overview

Corp Corporate Stru tructure

100% 100% 100% 100% 100% 90% 51% 51%

• Ellimac Prime Holdings,

Inc.,

• Fertuna Holdings Corp.,
• Patagonia Holdings

Corp.,

• Nation Realty, Inc.
• NE Pacific Shopping

Centers Corporation

• Pure Petroleum Corp.,

Luci cio Co Fami mily 73% 73% Public 27% 27%

5

Grocery ry Retail ilin ing Li Liquor r Distrib ibution Sp Specia ialt lty Retail ilin ing Com

• mmercia

ial l Real l Estate

Our ur Sub ubsidiari ries es

Groc

• cery Retai

ailin ling Li Liqu quor

• r Distr

tribu bution ion

Puregold Price Club, , Inc.

• 2nd largest grocery retail chain in

the Philippines

• Nationwide

presence with 277 stores across the country S&R Me Membersh ship Shopping Club

• Pioneer and dominant player in

membership club retailing

• 12

warehouses and 23 Quick Service Stores (“QSR”) nationwide

• Leading player in the premium

wine and liquor distribution industry

• Covers 90% of imported wine and

liquor in the Philippines

• Global brands such as Jose Cuervo,

Alfonso, Johnnie Walker and other well-known imported names

Spe pecia ialty lty Retaili iling Com

• mmercia

ial l Real al Es Estate

Liquigaz az Philippines s Corp rporati tion

• 2nd largest liquefied petroleum gas

(“LPG”) supplier in the Philippines Offi ffice War arehouse se, , Inc.

• Office

and school supplies, furniture and technology products

• 71 retail outlets nationwide
• Commercial Real Estate portfolio

includes community malls, commercial buildings, land for long-term lease

• 38 commercial properties located

mostly in the Metro Manila area as well as in neighboring provinces of Luzon

6

Com Company Miles Milestones

2013 2014 2015

April 22 22: Approval by the Securities and Exchange Commission (SEC)

• f

change in corporate name and increase in capital stock of Parent company. May 31 31: Implementation of issuance and listing of new shares, cross trade at the Philippine Stock Exchange (PSE) of PGOLD shares to the Parent company, issuance of shares to the subscribers pursuant to share swap, special block sale at the PSE of new shares. February 3

• Puregold Price Club, Inc. acquired nine (9)

supermarkets from NE Incorporated.

• Cosco Capital, Inc. through its wholly-
• wned subsidiary, Ellimac Prime Holdings,

Inc., acquired four (4) commercial properties from NE Incorporated Augu gust 5: through wholly-owned subsidiary, Ellimac Prime Holdings, Inc. acquired RFC mall located along Alabang, Zapote, Las Pinas City Augu gust 6: Puregold Price Club, through wholly-owned subsidiary Entenso Equities and Goldtempo Company, Inc., acquired eight (8) supermarket stores

• perating

under trade name Budgetlane Augu gust 12 12: Cosco Capital, Inc. through its wholly-owned subsidiary, Ellimac Prime Holdings, Inc., acquired Maunlad mall situated at Malolos Bulacan January 29 29: Approval of merger of Nation Realty, Inc., Go Fay & Co, Inc., SVF Corporation and 999 Shopping Mall, Inc. (Nation Realty,

• Inc. as the absorbing entity).

February 28 28: Acquisition of NE Pacific Shopping Centers Corporation May 1: Acquisition

• f

Office Warehouse, Inc. July 17 17: Acquisition and subscription

• f additional shares of Canaria

Holdings Corporation. July 21 21: Acquisition

• f

Liquigaz Philippine Corporation through Canaria Holdings Corporation

7

FY2 Y2016 Co Consolidated Fin inancial Results ts

FY2 FY2016 Cons Consoli lidated Fin Financial l High ighli lights

(In PHP millions)

9

+10.7% +9.8% +10.4% +7%

48,976 98,787 116,752 129,189 FY2013 FY2014 FY2015 FY2016

Revenues

9,534 17,287 19,964 21,912 FY2013 FY2014 FY2015 FY2016

Gross Profit

5,733 10,179 11,675 12,890 FY2013 FY2014 FY2015 FY2016

EBITDA

3,731 6,236 6,987 7,469

FY2013 FY2014 FY2015 FY2016

Net Income

Revenue Con Contributio ion

10 10

PHP PHP 129 129.18 billion Con Consolidated Revenues PHP1 PHP116.75 billion FY FY20 2016 FY FY20 2015

Grocery Retailing 87% Speciality Retailing 8% Liquor Distribution 3% Commercial Real Estate 2% Grocery Retailing 83% Speciality Retailing 11% Liquor Distribution 4% Commercial Real Estate 2%

Ne Net t Inc ncome Co Contri ribution

*attributable to equity holders of the parent company

PH PHP P 4. 4.49 49 billion PHP4 PHP4.73 billion

11 11

FY FY20 2016 FY FY20 2015

Grocery Retailing 59.5% Speciality Retailing 6.6% Liquor Distribution 15.8% Commercial Real Estate 22.2% Head Office Expenses

• 4.2%

Grocery Retailing 56.8% Speciality Retailing 10.3% Liquor Distribution 14.7% Commercial Real Estate 22.9% Head Office Expenses

• 4.7%

FY2 FY2016 Con Consoli lidated Bal Balance Shee heet

12 12 (In PHP millions) 2016 2016 2015 2015 Inc ncrease (Decreas ase) % Cash and cash equivalents 12,634 14,541

• 1,907
• 13%

Total Current Assets 29,399 24,958 4,441 18% Total Non Current Assets 61,437 58,117 3,320 6% TOTAL ASSETS 10 103,4 3,469 97 97,617 5, 5,85 852 6% 6% Total Current Liabilities 19,672 19,041 631 3% Total Non-current Liabilities 11,994 13,032

• 1,038
• 8%

TOTAL LI LIAB ABILITIES 31 31,666 32 32,073

• 407

407

• 1%

1% TOTAL EQUITY Y 71 71,803 65 65,544 6, 6,25 259 10% 10%

Gr Grocery ry Retail iling: 9M 9M2016 Fina Financial Hig ighli lights

Key High ighli lights

• 15.9% growth in Consolidated

Net Sales to PHP 112.58 billion, with Puregold contributing 81% and S&R 19% of total.

• Growth in Revenues driven by

Puregold’s Same Store Sales Growth (“SSSG”) of 6.2% due to positive growth in basket size of 5.5% and traffic count of 0.6%. S&R posted SSSG of 4.4% due to positive growth in traffic of 2.4% and basket size of 2%.

• Consolidated Net Profit Margin
• f 4.9%.

Puregold only net margin is 4.4% while S&R net margin is 9.4%.

13 13

(In PHP millions)

+15.9% +12.1% +10.5%

46,024 84,697 97,172 112,589 FY2013 FY2014 FY2015 FY2016

Revenues

+12.4%

7,871 14,760 16,489

18,538

17.1% 17.4% 17.0% 16.5%

• 2,000

FY2013 FY2014 FY2015 FY2016

Gros

• ss Prof
• fit

it

Gross Profit Gross Profit Margin

4,012 8,133 8,847 9,921 8.7% 9.6% 9.1% 8.8%

• 2,000

FY2013 FY2014 FY2015 FY2016

EBIT EBITDA

EBITDA EBITDA Margin 2,548 4,520 5,002 5,526 5.5% 5.3% 5.1% 4.9%

• 1,000

FY2013 FY2014 FY2015 FY2016

Net Income

Net Income Net Income Margin

Gr Grocery ry Retail iling: Rece ecent De Develo lopments

14 14

• Puregold opened 26 new stores out of targeted 25 new stores

and closed 4 Puregold stores

• S&R opened 2 S&R Warehouse and 10 S&R New York Style

Pizza (QSR)

• As of end 2016, the Grocery Retailing segment is operating a

total of 329 stores with consolidated NSA of more than 486,700 sqms

PUR UREGO GOLD S&R S&R QSR NE NE Bo BodegaBudgetlane Metro Manila 110 5 14 1 Luzon 150 3 7 9 7 Visayas 9 2 1 Mindanao 8 2 1 Total 277 277 12 12 23 23 9 8

Liqu Liquor Dis Distri ributio ion: Products

15 15

Tequila Jose Cuervo Whisk skey Bushmills Chivas Regal Co Cognac Martel Vodka Absolut Liqueurs Jagermeister Specialty Be Beverages Red Bull Various s Wines Br Brandy Fundador Fundador Light Whisk skey Jim Beam Glenfiddich Br Brandy Alfonso Alfonso Light Excelente Tequila Patron Whisk skey Johnnie Walker Jack Daniels Various s Wines

Liqu Liquor Dis Distri ributio ion: FY2 FY2016 Fin Financial l Hig ighli lights

16 16

(In PHP millions)

+4% +1.6% +3.4%

• 11.9%

3,565 4,841 5,677

5,904

FY2013 FY2014 FY2015 FY2016

Revenues

1,003 1,188 1,299 1,344 28.1% 24.5% 22.9% 22.8%

FY2013 FY2014 FY2015 FY2016

Gros

• ss Prof
• fit

it

Gross Profit Gross Profit Margin

• Revenues growth due to the 18%

increase in volume of cases sold.

• Slight decline in GP Margin due

to higher cost of sales

• Net

income declined due to increase in operating expenses for marketing and distribution expenses

Key Highlights

731 838 919 934 20.5% 17.3% 16.2% 15.8%

FY2013 FY2014 FY2015 FY2016

EBIT EBITDA

EBITDA EBITDA Margin

594 603 660 581 16.7% 12.5% 11.6% 9.8%

FY2013 FY2014 FY2015 FY2016

Ne Net t Inc ncom

• me

Net Income Net Income Margin

Liqu Liquor Dis Distri ributio ion: Tot

• tal

l Volu

• lume Sale

ales

17 17

• 18% growth in total volume of cases sold
• Growth mainly driven by Alfonso Light and Alfonso Solera

FY FY2016 % to total FY FY2015 % to total Inc c (Dec) % Inc c (Dec) Brandy 1,147,091 62% 951,042 61% 196,049 21% Other spirits 326,283 18% 306,487 20% 19,796 6% Wines 216,790 12% 185,260 12% 31,530 17% Specialty Beverages 145,538 8% 113,628 7% 31,910 28% Total Volume (in ca case ses) 1,835,702 100% 100% 1,556,417 100% 100% 279,285 18% 18%

Liqu Liquigaz: FY2 FY2016 Fina Financial Hig ighli lights

18 18

• 24.7%
• 23.6%
• 31.6%

(In PHP millions)

• 20.4%

FY2 Y2014 FY2 Y2015 FY2 Y2016 Volume Sold (In metric tons) 432,995 423,151 393,990 18,956 11,854

8,927

FY2014 FY2015 FY2016

Revenues

Key Highlights

1,014 932

742

5.3% 7.9% 8.3%

• 100

FY2014 FY2015 FY2016

Gr Gros

• ss Prof
• fit

it

Gross Profit Gross Profit Margin

734 733

560

3.9% 6.2% 6.3%

• 100

FY2014 FY2015 FY2016

EB EBITDA

EBITDA EBITDA Margin

279 399 273 1.5% 3.4% 3.1%

• 50

FY2014 FY2015 FY2016

Ne Net t Inc ncom

• me

Net Income Net Income Margin

• Decline in revenues due to low

global LPG price and 7% decline in total volume sold during the year

• New terminal facility in Sairaya,

Quezon to be completed in 2H2017

Office fice War arehouse, , Inc.

• nc. FY2

FY2016 Fina Financial Hig ighlights

Key Highlights

19 19

+18% +17.7% +22.1%

(In PHP millions)

+21.4%

2014 2014 2015 2015 2016 2016 # of Stores 48 59 71 Net Selling Area 11,036 sqm 14,014 sqm 655 1,043 1,302

1,535

FY2013 FY2014 FY2015 FY2016

Revenues

• Opened

12 new stores for FY2016

• Sales grew by 18% to PHP1.5

billion, driven by SSSG of 9%

• Positive results is due to store

network expansion, enhanced product

• fferings,

and active sales and marketing campaigns. 118 268 354 417 18.0% 25.7% 27.2% 27.2%

• 50

FY2013 FY2014 FY2015 FY2016

Gros

• ss Prof
• fit

it

Gross Profit Gross Profit Margin

39 46 97 119 5.9% 4.4% 7.5% 7.8%

• 20

FY2013 FY2014 FY2015 FY2016

EB EBITD TDA

EBITDA EBITDA Margin

20 23 54 65 3.1% 2.2% 4.1% 4.2%

• 10

FY2013 FY2014 FY2015 FY2016

Net Net Inc ncom

• me

Net Income Net Income Margin

Com Commercial l Real eal Estate: FY FY2016 Fin Financial l Hig ighli lights

• Flat Net Income due to stable

rental income and effective management

• f
• perating

expenses

• On-going refurbishment of 6

community malls acquired in 2015 and on-going development

• f 2 new community malls in

Arvo Mall, Marikina with target completion by 1H2017 and Binan Laguna by 2H2017

Key Highlights

20 20

(In PHP millions)

• 4%
• 4%
• 7%
• 0.5%

1,838 2,210 2,423 2,326

FY2013 FY2014 FY2015 FY2016

Revenues

980 1,275 1,464 1,404 53% 58% 60% 60%

• 200

FY2013 FY2014 FY2015 FY2016

Gr Gros

• ss Prof
• fit

it

Gross Profit Gross Profit Margin

771 1,346 1,504 1,394 42% 61% 62% 60%

30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90%

FY2013 FY2014 FY2015 FY2016

EB EBITD TDA

EBITDA EBITDA Margin

563 959 1,028 1,023 31% 43% 42% 44%

• 200

FY2013 FY2014 FY2015 FY2016

Ne Net t Inc ncom

• me

Net Income Net Income Margin

2016 Rental Yield, gross 11.6% Rental Yield, net 6.35% Debt : Equity 0.61 ROE 7.0%

Com Commercial l Real eal Estate: Propert rty Port

• rtfolio

io

Metro Manila

• 13 Commercial Buildings
• 5 Land under lease

Key statistics

Luzon

• 16 Commercial Buildings
• 3 Land under lease
• Nueva

Ecija, Batangas, Zambales, Isabela, Aurora, Quezon, Rizal, Cavite, Bulacan, Pampanga, Pangasinan

Visayas

• 1 Land under lease
• Cebu City

Area with commercial property

Geographic coverage

21 21

Cate tegory ry 3Q2016 GL GLA/Lot t Are rea a in sq.m .m. Investm tment cost st in PHP million Land under lease 9 146,148 4,243.50 Commercial Buildings 29 259,215 12,973.30 Total 38 405,363 17,216.80 * Ave. Occupancy Rate 94.%

Thank you.

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