Cosco Capital, In Inc. 1Q 2018 Fina inancia ial l Resu sult - - PowerPoint PPT Presentation

1Q 2018 Fina inancia ial l Resu sult lts In Investor r Presentatio ion

Cosco Capital, In Inc.

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• r implied notwithstanding the distribution of this presentation and/or other

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Hea Head Of Offic fice Add Address 2nd floor, Tabacalera Building, 900 Romualdez Street, Paco, Manila, 1007 Philippines

Disc iscla laim imer

Co Company Overvie iew

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.,

Luc Lucio io Co Co Fam amil ily 73% 73% Pub ubli lic 27% 27%

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Gr Grocery ry Retaili ling Li Liquor Di Distrib ibution Spe Specia ialt lty Retail ilin ing Com Commercia ial Real l Es Estate

Revenue & Net t In Income Co Contrib ibutio ion

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PHP 36 36.8 .8 bill illion ion Revenues PHP 1.2 1.25 bill illion ion

Grocery Retailing 84% Specialty Retail 12% Liquor Distribution 3% Real Estate 1%

PATMI

Grocery retailing Real estate 23% Liquor distribution 14% Specialty retail 8% Oil and Gas

• 3%

58%

FY 2017 Consoli lidated Fin inancia ial l Hig ighli lights

(In PHP millions)

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+13.9% +12.7% +9.4% +13.1%

Revenues Gross Profit EBITDA Net Income

116,752 129,186 145,750 32,325 36,825

2015 2016 2017 1Q 17 1Q 18

19,964 21,912 24,322 5,431 6,122 17.1% 17.0% 16.7% 16.8% 16.6%

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

2015 2016 2017 1Q 17 1Q 18

GP GP Margin

12,094 12,926 13,876 3,063 3,466 10.0% 10.0% 9.5% 9.5% 9.4%

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

2015 2016 2017 1Q 17 1Q 18

EBITDA EBITDA Margin

6,987 7,469 7,833 1,789 1,957 6.0% 5.8% 5.4% 5.5% 5.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2,000 4,000 6,000 8,000 10,000

2015 2016 2017 1Q 17 1Q 18

NIAT NIAT Margin

Grocery ry Retail ilin ing: 1Q 2018 Fin inancia ial l Hig ighli lights

6 Revenues EBITDA and Margin Gross Profit and Margin Net Profit and Margin

+12.2% +11.7% +13.4% +11.7%

(In PHP millions)

97,172 112,589 124,491 27,534 30,884

2015 2016 2017 1Q 17 1Q 18

16,489 18,538 20,655 4,623 5,162 17.0% 16.5% 16.6% 16.8% 16.7%

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

2015 2016 2017 1Q 17 1Q 18

GP GP Margin

8,847 9,921 10,644 2,308 2,616 9.1% 8.8% 8.5% 8.4% 8.5%

0.0% 5.0% 10.0% 15.0% 20.0% 2,000 4,000 6,000 8,000 ,000 ,000

2015 2016 2017 1Q 17 1Q 18

EBITDA EBITDA Margin

5,002 5,526 5,840 1,275 1,425 5.1% 4.9% 4.7% 4.6% 4.6%

• 1.0

3.0 5.0 7.0 9.0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2015 2016 2017 1Q 17 1Q 18 NIAT NIAT Margin

Grocery ry Retail ilin ing: Operatio ional l High ighli lights

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• Puregold opened 10

10 new stores in 1Q 2018

• S&R opened 1 new S&R QSR
• As of 1Q 2018, the Grocery Retailing segment is operating a

tot

• tal of
• f 383 stores

es

• SSSG PGOLD only is at 5.1% while S&R is at 11.1%
• Merger and conversion of NE Bodega and Budgetlane

supermarket stores effective Ja January 1, , 2018

PUREGOLD S&R S&R QSR Metro Manila 118 6 22 Luzon 187 4 8 Visayas 22 2 1 Mindanao 9 2 1 Total 336 14 33

Liq Liquor Dis istrib ibutio ion: Products

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Teq equila la Jose Cuervo Whi hiskey Bushmills Chivas Regal Co Cogn gnac Martel Vod

• dka

Absolut Li Liqu queurs Jagermeister Sp Specia ialt lty Be Beverages Red Bull Var ario ious Wines nes Br Brandy Fundador Fundador Light Whi hiskey Jim Beam Glenfiddich Br Brandy Alfonso Alfonso Light Excelente Teq equila la Patron Whi hiskey Johnnie Walker Jack Daniels Var ario ious Wines nes

Liq Liquor Dis istrib ibutio ion: 1Q 2018 Fin inancia ial l Hig ighli lights

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+46.4% +31.4% +33.6% +38.1%

(In PHP millions)

Revenues EBITDA and Margin Gross Profit and Margin Net Profit and Margin

5,677 5,904 6,663 1,169 1,712

2015 2016 2017 1Q 17 1Q 18

1,299 1,344 1,491 276 381 22.9% 22.8% 22.4% 23.6% 22.3%

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

2015 2016 2017 1Q 17 1Q 18

GP GP Margin

919 1,006 898 189 253 16.2% 17.0% 13.5% 16.2% 14.8%

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

2015 2016 2017 1Q 17 1Q 18

EBITDA EBITDA Margin

660 581 628 136 179 11.6% 9.8% 9.4% 11.7% 10.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

• 50

50 150 250 350 450 550 650 750 850 950 2015 2016 2017 1Q 17 1Q 18 NIAT NIAT Margin

951,042 1,147,165 1,380,717 268,219 348,258 306,487 318,061 325,180 67,658 83,373 185,260 217,210 263,627 38,986 51,742 113,628 147,036 199,534 40,907 48,524

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000

2015 2016 2017 1Q 17 1Q 18

Category Volume Sold (in cases)

Brandy Other Spirits Wines Specialty beverages

Liq Liquor Dis istrib ibutio ion: Total l Volu lume Sa Sale les

10 10

• 28%

28% gr growth th in to total volu

• lume of
• f cas

ases sold sold in 1Q 1Q 2018 2018

• Growth driven by the increase in the brandy segment.

415,770 1,556,417 1,829,472 2,170,058

Category 1Q 2018 Mix % 1Q 2017 Mix % Increase % Brandy 348,258 65% 268,219 65% 80,039 30% Other spirits 83,373 16% 67,658 16% 15,715 23% Wines 51,742 10% 38,986 9% 12,756 33% Specialty beverages 48,524 9% 40,907 10% 7,617 19% 531,898 100% 415,770 100% 116,128 28%

531,898

Liq Liquig igaz: 1Q 2018 Fin inancia ial l High ighli lights

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+24% +0.2% +8.1% +2.6%

(In PHP millions)

Revenues EBITDA and Margin Gross Profit and Margin Net Profit and Margin

11,854 8,927 13,128 3,008 3,730

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

932 742 999 224 230 9.8% 8.3% 7.6% 7.5% 6.2%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 200 400 600 800 1,000 1,200

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

GP GP Margin

733 560 843 184 199 6.2% 6.3% 6.4% 6.1% 5.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 100 200 300 400 500 600 700 800 900

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

EBITDA EBITDA Margin

399 273 469 101 101 3.4% 3.1% 3.6% 3.4% 2.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 50 100 150 200 250 300 350 400 450 500

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

NIAT NIAT Margin

348,459 323,313 372,543 79,936 96,928 74,692 70,676 75,863 19,042 18,661

• 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

2015 2016 2017 1Q 17 1Q 18

Total Volume (mT) Upstream Downstream

Liq Liquig igaz: Operatio ional l Hig ighli lights

LIQU IQUIGAZ PHILI ILIPPINES CORP RPORATION

• 16.8% increase in total sales volume due to higher

sales from wholesale and major clients in 1Q 2018

• New terminal facility in Sairaya, Quezon to start full

commercial operations in 2H 2018

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98,978 423,151 393,989 448,406 115,589

1,302 1,535 1,825 440 499

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

54 57 59 16 10 4.1% 3.7% 3.2% 3.6% 2.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 10 20 30 40 50 60 70

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

NIAT NIAT Margin

97 108 120 31 24 7.5% 7.1% 6.6% 6.9% 4.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 20 40 60 80 100 120 140

FY 2015 FY 2016 FY2017 1Q 17 1Q 18

EBITDA EBITDA Margin

Offic fice Warehouse: 1Q 2018 Fin inancia ial l Hig ighli lights

13 13

+13.4%

• 35%
• 20.4%

+6.8%

(In PHP millions)

Revenues EBITDA and Margin Gross Profit and Margin Net Profit and Margin

354 417 482 115 123 27.2% 27.2% 26.4% 26.1% 24.6%

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 2015 FY 2016 FY2017 1Q 17 1Q 18

GP GP Margin

Offic fice Warehouse: Operatio ional l Hig ighli lights

OF OFFIC ICE WAREHOUSE, IN INC. C.

• Strong growth driven by store expansion and enhanced product offerings
• Office Warehouse opened 2 new store during 1Q 2018; closed down 1 store

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Y2015 Y2016 Y2017 Q12017 Q12018

• No. Stores

59 71 82 72

83

Net selling area

11,036 sqm 14,014 sqm 15,945 sqm 14,445 sqm 16,382 sqm

Real l Estate: : 1Q 2018 Fin inancia ial l Hig ighli lights

15 15

+10.1% +10.7% +8.7% +7.4%

(In PHP millions)

Revenues EBITDA and Margin Gross Profit and Margin Net Profit and Margin

2,423 2,326 2,197 552 608

2015 2016 2017 1Q 17 1Q 18

1,464 1,404 1,228 339 364 60.4% 60.4% 55.9% 55.8% 59.9%

50 55 60 65 70 75 80 200 400 600 800 1,000 1,200 1,400 1,600

2015 2016 2017 1Q 17 1Q 18

GP GP Margin

1,504 1,394 1,324 354 385 62.1% 59.9% 60.3% 64.1% 63.3%

20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0% 200 400 600 800 1,000 1,200 1,400 1,600

2015 2016 2017 1Q 17 1Q 18

EBITDA EBITDA Margin

1,028 1,023 972 256 284 42.4% 44.0% 44.2% 46.4% 46.7%

0.0 20 40 60 80 10 12 14 200 400 600 800 1,000 1,200

2015 2016 2017 1Q 17 1Q 18

NIAT NIAT Margin

Real l Estate Group: Operatio ional l Hig ighli lights

• Total of
• f 52

52 com

• mmercial pr

properties with th 96 96% average occ

• ccupancy rate
• Pure Petroleum operating at 100% capacity in 2017 and 2016 (9 storage tanks with 88.5M

liters capacity)

• 3 new community malls opened in Q12018 located in Ca

Cavi vite, Muntin inlupa an and Su Subic.

• On-going development of 1 new community malls in La

Las Pin Pinas.

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Category 1Q2018 Q12017 FY2017 GLA/Lot Area in sq.m. Land under lease 10 9 9 146,149 Commercial Buildings 32 29 29 261,722 Under Development 1

• 4

7,641 Future Development 9 10 10 104,709 Total 52 48 52 520,221

CA CAPEX Guid idance for r FY 2018

• CAPEX Budget of Php 5.5

.55 billio illion in in 2018

• Php 3.65 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

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Thank you.

www.coscocapital.com