1 Q 2016 UNAUDITED EARNINGS PRESENTATION May 2016 20160516 - PowerPoint PPT Presentation

1 Q 2016 UNAUDITED EARNINGS PRESENTATION May 2016 20160516

Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Plans and Prospects 1

1Q2016 Unaudited Results Highlights 2

Nationwide Presence Visayas Metro Manila Business segment # of stores Business segment # of stores Supermarkets 41 Supermarkets 18 Department stores 12 Department stores 7 DIY stores 47 DIY stores 35 Convenience stores 329 Convenience stores 27 Drug stores 83 Drug stores 30 Specialty stores 130 Specialty stores 39 1,514 642 156 Total Total stores Nationwide Luzon 1 Mindanao with gross floor area of Business segment # of stores Business segment # of stores 967,000 sqm Supermarkets 55 Supermarkets 10 Department stores 16 Department stores 5 DIY stores 69 DIY stores 15 Convenience stores 161 Convenience stores 1 Drug stores 249 Drug stores 16 Specialty stores 98 Specialty stores 21 648 68 Total Total Gross Floor 36% 38% Area 17% 9% Store 42% Count 43% 10% 5% 1 Outside of Metro Manila Metro Manila Luzon Visayas Mindanao * Figures as of March 2016 3

1Q2016 Stores and Gross Floor Area Statistics Number of Gross Floor Stores Area (GFA) (in ‘000 sqm) 1,327 1,506 1,356 1,514 RLC 270 252 974 273 252 Outside RLC 967 888 1,075 1,236 896 1,104 1,241 2014 2014 2015 2015 1Q20151Q2016 1Q2015 1Q2016 GFA GFA Contribution Contribution by Segment by Lessor Department (%) (%) Stores Supermarkets 30% 35% RLC 51% 49% Outside RLC Convenience DIY Stores Stores 15% Specialty 5% Stores Drug 11% Stores 4% 4

Consolidated Results Net Sales 1 (₱ bn) SSSG (%) 90.9 9.0% 22.7 80.4 9.3 4.1% 2.5 3.6% 8.1 19.7 3.4% 7.3 5.5 7.1 2.2 1.7 4.6 9.9 1.4 1.9 8.5 2014 2015 1Q2015 1Q2016 1.3 2.5 14.9 2.2 13.7 3.2  15.1% yoy net sales 3.0 growth in 1Q2016:  6.1% from new stores 43.2 11.0 39.2 9.7  9.0% from SSSG 1Q2015 1Q2016 2014 2015 Supermarkets Department stores DIY stores Convenience stores Drugstores Specialty stores 1 Net sales after intersegment eliminating adjustments 5

1Q2016 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Retailing Specialty Specialty Specialty stores 36% stores stores Drugstores 5.5% 8.5% 11.0% 10.0% Drugstores DIY stores Convenience 8.0% 10.9% stores Convenience 1.2% stores Supermarkets Supermarkets 6.1% DIY stores Supermarkets 48.6% Department 48.3% 19.3% 52.9% stores DIY stores 13.9% 16.2% Drugstores Department 9.8% Department stores Convenience stores 11.1% stores 12.7% 6.1% 6

Consolidated Results Gross Profit 1 (₱ mm ) EBITDA 2 (₱ mm) % of Net Sales % of Net Sales 21.7% 21.7% 21.6% 21.2% 7.2% 7.0% 6.0% 5.9% 19,749 5,768 6,376 17,429  Net income 4,252 4,805 1,190 1,348 attributable 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 to equity EBIT (₱ mm) Net Income (₱ mm) holders of % of Net Sales Core net income as a % of Net Sales 5.6% 5.2% 4.3% 4.0% 4.0% 4.0% 3.2% the parent 3.1% company 4,487 4,729 Net income attributable 4,342 3,561 to parent company was flattish Core Net income 3 3,625 in 1Q2016 3,427 904 785 790 781 635 696 2014 2015 1Q2015 1Q2016 2014 2015 1Q20151Q2016 1 Gross profit = Net sales – Cost of merchandise sold; 2 EBITDA = Operating income + Depreciation and amortization + Provision for impairment losses; 3 Core net income = Net income – Equity in net earnings of an associate – Interest income – Foreign currency exchange gain (loss) 7

Operating Expenses Adjusted Operating Expenses 1 (₱ mm, % of Net Sales) 17.5% 17.4% 16.8% 16.3% % of Net Sales 15,235 Rental and utilities Personnel costs and contracted services 13,095  Operating Others 8.2% 7,486 expenses as a 8.1% 6,549 % of net sales declined due to 5.3% 4,805 3,946 4.9% 3,966 3,460 strong SSSG 8.5% 1,920 8.7% 1,721 2,944 3.2% 5.7% 1,301 2,579 3.2% 1,111 5.6% 3.2% 725 3.2% 628 2014 2015 1Q2015 1Q2016 1 Operating expenses excluding provision for impairment losses and depreciation and amortization expenses 8

Supermarket Business Segment EBITDA (₱ mm) Net Sales (₱ mm) Gross Profit (₱ mm) 43,239 39,199 8,203 7,362 3,009 2,664 19.0% 7.0% 18.8% 9,689 10,960 1,783 2,011 6.8% 655 559 18.4% 18.4% 6.0% 5.8% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Increase in sales in 1Q2016 largely driven by new store additions (4.4%) and strong SSSG (8.7%) = % of segment’s net sales 9

Supermarket Business Segment SSSG (%) Store Count 124 124 8.7% 113 111 3.3% 3.4% 3.3% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust 1Q SSSG due higher basket size and transaction count 10

Supermarket Business Segment  Robinsons Supermarket partnered with HappyFresh for its online grocery delivery service  Customers can make an order from within a 5km radius of 20 selected Robinsons Supermarket branches in Metro Manila 11

Department Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 14,906 13,738 3,607 3,926 1,056 1,153 26.3% 26.3% 7.7% 7.7% 3,154 2,985 807 774 171 171 25.9% 25.6% 5.7% 5.4% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Increase in sales in 1Q2016 driven by robust SSSG = % of segment’s net sales 12

Department Store Business Segment SSSG (%) Store Count 7.5% 42 42 42 5.5% 5.1% 4.8% 40 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust SSSG mainly due to higher basket size 13

DIY Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 9,872 3,067 8,521 945 2,641 911 31.1% 10.7% 31.0% 9.6% 2,480 792 2,208 692 218 212 31.9% 31.4% 9.6% 8.8% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in net sales driven by new store sales contribution (2.5%) and strong SSSG (9.8%) = % of segment’s net sales 14

DIY Store Business Segment SSSG (%) Store Count 166 166 9.8% 7.2% 161 5.0% 4.8% 159 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust SSSG due to sustained strong residential construction activities 15

Convenience Store Business Segment System-wide Sales & Net Sales Gross Profit & Royalty Income EBITDA (₱ mm) (₱ mm) (₱ mm) 7,961 6,711 2,070 39.4% 289 271 System-wide sales 36.1% 1,603 527 37.7% 433 Net sales 6.3% 34.7% 2,079 5,493 4.9% 1,796 4,616 1,544 82 546 454 59 1,170 131 121 5.9% 1,385 1,256 416 4.7% 333 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 = % of segment’s net sales = GP + Royalty Income % of segment’s net sales  Increase in net sales driven by robust SSSG (7.0%) and new store openings (3.3%) 16

Convenience Store Business Segment SSSG (%) Store Count 519 518 473 7.0% 5.4% 450 5.0% -2.6% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust SSSG was driven by the strong sales performance of ready-to-eat category 17

Drugstore Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 8,070 1,265 7,061 1,129 373 321 16.0% 15.7% 4.6% 2,229 362 1,876 312 107 4.5% 87 16.6% 4.8% 16.2% 4.6% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in sales propelled by the sales contribution of new stores and recovery in SSSG = % of segment’s net sales 18

Drugstore Business Segment SSSG (%) Store Count 378 367 10.7% 330 320 3.3% 1.0% -0.9% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  SSSG turned around due to increase in purchasing power from wage hike, low fuel prices and election spending 19

Specialty Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 10,359 2,761 635 7,889 2,247 533 28.5% 6.8% 2,722 26.7% 702 566 6.1% 1,917 118 104 29.5% 25.8% 5.6% 4.3% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in net sales driven by the double- digit sales growth of all formats = % of segment’s net sales 20

Specialty Store Business Segment SSSG (%) Store Count 12.7% 288 288 243 239 6.4% 4.9% 3.1% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Strong SSSG in due to robust SSSG of toys and appliances formats 21

Working Capital Working capital days trend 6.9 7.1 6.0 5.9 Trade receivable days 1 2013 2014 2015 1Q2016 56.0 54.3 52.1 48.5 Inventory days 2 2013 2014 2015 1Q2016 83.3 82.0 75.9 63.4 Trade payable days 3 83.3 82.0 75.9 63.4 -1.6 -28.8 -22.9 -14.5 Cash conversion cycle 4 2013 2014 2015 1Q2016  Negative cash conversion cycle sustained in 1Q2016 1 Trade receivable days = Number of days x Trade and other receivables / Net sales; 2 Inventory days = Number of days x Merchandise inventories / Cost of merchandise sold; 3 Trade payable days = Number of days x Trade and other payables / Cost of merchandise sold, 4 Cash conversion cycle = Trade receivable days + Inventory days – Trade payable days 22