Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
FY2016 ResultsInvestor Presentation
Cosco Capital, Inc.
1
DISCLAIMER
These presentations and/or other documents have been written and presentedby COSCO CAPITAL, INC. (COSCO). COSCO is solely responsible for the accuracyand completeness of the contents of such presentations and/or otherdocuments. Third parties, other than COSCO, do not have any responsibility foror control over the contents of such presentations and/or other documents. Noendorsement is intended or implied notwithstanding the distribution of thispresentation and/or other documents during the analysts and investors calls andmeetings of COSCO. The materials and information in the presentations andother documents are for informational purposes only, and are not an offer orsolicitation for the purchase or sale of any securities or financial instruments orto provide any investment service or investment advice.
2
Head Office Address2nd floor, Tabacalera Building, 900 Romualdez Street, Paco, Manila, 1007Philippines
Agenda
• Company Overview
• FY2016 Consolidated Financial Results
• Core Businesses• Grocery Retailing
• Liquor Distribution
• Specialty Retailing
• Commercial Real Estate
3
Company Overview
Corporate Structure
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%
5
Grocery Retailing Liquor Distribution Specialty RetailingCommercial Real
Estate
Our Subsidiaries
Grocery Retailing Liquor Distribution
Puregold Price Club, Inc.• 2nd largest grocery retail chain in
the Philippines• Nationwide presence with 277
stores across the country
S&R Membership Shopping Club• Pioneer and dominant player in
membership club retailing• 12 warehouses and 23 Quick
Service Stores (“QSR”) nationwide
• Leading player in the premiumwine and liquor distributionindustry
• Covers 90% of imported wine andliquor in the Philippines
• Global brands such as Jose Cuervo,Alfonso, Johnnie Walker and otherwell-known imported names
Specialty Retailing Commercial Real Estate
Liquigaz Philippines Corporation• 2nd largest liquefied petroleum gas
(“LPG”) supplier in the Philippines
Office Warehouse, Inc.• Office and school supplies,
furniture and technology products• 71 retail outlets nationwide
• Commercial Real Estate portfolioincludes community malls,commercial buildings, land forlong-term lease
• 38 commercial properties located mostly in the Metro Manila area as well as in neighboring provinces of Luzon
6
Company Milestones
2013 2014 2015
April 22: Approval by the Securities andExchange Commission (SEC) ofchange in corporate name andincrease in capital stock of Parentcompany.
May 31: Implementation of issuanceand listing of new shares, crosstrade at the Philippine StockExchange (PSE) of PGOLD shares tothe Parent company, issuance ofshares to the subscribers pursuantto share swap, special block sale atthe PSE of new shares.
February 3
• Puregold Price Club, Inc. acquired nine (9)supermarkets from NE Incorporated.
• Cosco Capital, Inc. through its wholly-owned subsidiary, Ellimac Prime Holdings,Inc., acquired four (4) commercialproperties from NE Incorporated
August 5: through wholly-owned subsidiary,Ellimac Prime Holdings, Inc. acquired RFCmall located along Alabang, Zapote, LasPinas City
August 6: Puregold Price Club, throughwholly-owned subsidiary Entenso Equitiesand Goldtempo Company, Inc., acquiredeight (8) supermarket stores operatingunder trade name Budgetlane
August 12: Cosco Capital, Inc. through itswholly-owned subsidiary, Ellimac PrimeHoldings, Inc., acquired Maunlad mallsituated at Malolos Bulacan
January 29: Approval of merger ofNation Realty, Inc., Go Fay & Co,Inc., SVF Corporation and 999Shopping Mall, Inc. (Nation Realty,Inc. as the absorbing entity).
February 28: Acquisition of NE PacificShopping Centers Corporation
May 1: Acquisition of OfficeWarehouse, Inc.
July 17: Acquisition and subscriptionof additional shares of CanariaHoldings Corporation.
July 21: Acquisition of LiquigazPhilippine Corporation throughCanaria Holdings Corporation
7
FY2016 Consolidated Financial Results
FY2016 Consolidated Financial Highlights
(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 Contribution
10
PHP 129.18 billion
Consolidated Revenues
PHP116.75 billion
FY2016 FY2015
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%
Net Income Contribution
*attributable to equity holders of the parent company
PHP 4.49 billionPHP4.73 billion
11
FY2016 FY2015
Grocery Retailing
59.5%
Speciality Retailing6.6%
Liquor Distribution
15.8%
Commercial Real Estate
22.2%
Head Office Expenses-4.2%
Grocery Retailing
56.8%
Speciality Retailing10.3%
Liquor Distribution
14.7%
Commercial Real Estate22.9%
Head Office Expenses-4.7%
FY2016 Consolidated Balance Sheet
12
(In PHP millions) 2016 2015Increase
(Decrease)%
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 103,469 97,617 5,852 6%
Total Current Liabilities 19,672 19,041 631 3%
Total Non-current Liabilities 11,994 13,032 -1,038 -8%
TOTAL LIABILITIES 31,666 32,073 -407 -1%
TOTAL EQUITY 71,803 65,544 6,259 10%
Grocery Retailing: 9M2016 Financial Highlights
Key Highlights
• 15.9% growth in ConsolidatedNet Sales to PHP 112.58 billion,with Puregold contributing 81%and S&R 19% of total.
• Growth in Revenues driven byPuregold’s Same Store SalesGrowth (“SSSG”) of 6.2% due topositive growth in basket size of5.5% and traffic count of 0.6%.S&R posted SSSG of 4.4% due topositive growth in traffic of 2.4%and basket size of 2%.
• Consolidated Net Profit Marginof 4.9%. Puregold only netmargin is 4.4% while S&R netmargin is 9.4%.
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%5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
FY2013 FY2014 FY2015 FY2016
Gross Profit
Gross Profit Gross Profit Margin
4,012
8,133 8,847 9,921
8.7% 9.6%9.1%
8.8%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
FY2013 FY2014 FY2015 FY2016
EBITDA
EBITDA EBITDA Margin
2,548
4,520 5,002
5,526
5.5% 5.3% 5.1% 4.9%2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
FY2013 FY2014 FY2015 FY2016
Net Income
Net Income Net Income Margin
Grocery Retailing: Recent Developments
14
• Puregold opened 26 new stores out of targeted 25 new storesand closed 4 Puregold stores
• S&R opened 2 S&R Warehouse and 10 S&R New York StylePizza (QSR)
• As of end 2016, the Grocery Retailing segment is operating atotal of 329 stores with consolidated NSA of more than486,700 sqms
PUREGOLD S&R S&R QSR NE BodegaBudgetlane
Metro Manila 110 5 14 0 1Luzon 150 3 7 9 7Visayas 9 2 1 0 0Mindanao 8 2 1 0 0Total 277 12 23 9 8
Liquor Distribution: Products
15
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
Liquor Distribution: FY2016 Financial Highlights
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%15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
500
700
900
1,100
1,300
1,500
FY2013 FY2014 FY2015 FY2016
Gross Profit
Gross Profit Gross Profit Margin
• Revenues growth due to the 18%increase in volume of cases sold.
• Slight decline in GP Margin dueto higher cost of sales
• Net income declined due toincrease in operating expensesfor marketing and distributionexpenses
Key Highlights
731
838
919 934
20.5% 17.3% 16.2% 15.8%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
500
550
600
650
700
750
800
850
900
950
1,000
FY2013 FY2014 FY2015 FY2016
EBITDA
EBITDA EBITDA Margin
594 603 660
581
16.7%12.5% 11.6% 9.8%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
400
450
500
550
600
650
700
750
800
FY2013 FY2014 FY2015 FY2016
Net Income
Net Income Net Income Margin
Liquor Distribution: Total Volume Sales
17
• 18% growth in total volume of cases sold • Growth mainly driven by Alfonso Light and Alfonso Solera
FY2016 % to total FY2015 % to total Inc (Dec) % Inc (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 cases) 1,835,702 100% 1,556,417 100% 279,285 18%
Liquigaz: FY2016 Financial Highlights
18
-24.7%
-23.6%-31.6%
(In PHP millions)
-20.4%
FY2014 FY2015 FY2016
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%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
100
200
300
400
500
600
700
800
900
1,000
FY2014 FY2015 FY2016
Gross Profit
Gross Profit Gross Profit Margin
734 733 560
3.9%6.2% 6.3%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
100
200
300
400
500
600
700
800
900
1,000
FY2014 FY2015 FY2016
EBITDA
EBITDA EBITDA Margin
279
399
273
1.5%3.4% 3.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-
50
100
150
200
250
300
350
400
450
500
FY2014 FY2015 FY2016
Net Income
Net Income Net Income Margin
• Decline in revenues due to lowglobal LPG price and 7% declinein total volume sold during theyear
• New terminal facility in Sairaya,Quezon to be completed in2H2017
Office Warehouse, Inc. FY2016 Financial Highlights
Key Highlights
19
+18% +17.7%
+22.1%
(In PHP millions)
+21.4%
2014 2015 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 forFY2016
• Sales grew by 18% to PHP1.5billion, driven by SSSG of 9%
• Positive results is due to storenetwork expansion, enhancedproduct offerings, and activesales and marketing campaigns.
118
268
354
417
18.0%25.7%
27.2% 27.2%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-
50
100
150
200
250
300
350
400
450
FY2013 FY2014 FY2015 FY2016
Gross Profit
Gross Profit Gross Profit Margin
39 46
97 119
5.9% 4.4%7.5% 7.8%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
20
40
60
80
100
120
140
FY2013 FY2014 FY2015 FY2016
EBITDA
EBITDA EBITDA Margin
20 23
54 65
3.1% 2.2%4.1% 4.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
10
20
30
40
50
60
70
FY2013 FY2014 FY2015 FY2016
Net Income
Net Income Net Income Margin
Commercial Real Estate: FY2016 Financial Highlights
• Flat Net Income due to stablerental income and effectivemanagement of operatingexpenses
• On-going refurbishment of 6community malls acquired in2015 and on-going developmentof 2 new community malls inArvo Mall, Marikina with targetcompletion by 1H2017 andBinan Laguna by 2H2017
Key Highlights
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%
40%
45%
50%
55%
60%
65%
70%
75%
80%
-
200
400
600
800
1,000
1,200
1,400
1,600
FY2013 FY2014 FY2015 FY2016
Gross Profit
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%
200
400
600
800
1,000
1,200
1,400
1,600
FY2013 FY2014 FY2015 FY2016
EBITDA
EBITDA EBITDA Margin
563
959 1,028 1,023
31%
43% 42% 44%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
-
200
400
600
800
1,000
1,200
FY2013 FY2014 FY2015 FY2016
Net Income
Net Income Net Income Margin
2016
Rental Yield, gross 11.6%
Rental Yield, net 6.35%
Debt : Equity 0.61
ROE 7.0%
Commercial Real Estate: Property Portfolio
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
Category 3Q2016GLA/Lot
Area in sq.m.
Investment cost
in PHP millionLand 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.
www.coscocapital.com