Nine Months 2019 Analyst and Media Briefing 14 November 2019 GT - PowerPoint PPT Presentation

Nine Months 2019 Analyst and Media Briefing 14 November 2019

GT Capital Holdings Nine Months 2019 Financial Highlights 2

GT Capital Group Financial Highlights 9M 2019 Php15.3 billion* Consolidated Net Income +40% Php10.9 billion 9M 2018 (MBT +29%, FLI +10% , TMP +13% , TMBC +30%) Php12.4 billion +20% Core Net Income Php10.3 billion 9M 2018 (FV adjustments for MBT, MPI, PCFI, TMP, TMBC, Gain on disposal PCFI) Php159.1 billion +3% Revenues Php153.9 billion 9M 2018 Auto Sales (TMP – Php121.4B) Php 138.2 billion +4% Equity in net income of associates Php 10.1 billion +11% (MBT Php7.6B, MPIC Php1.8B, AXA Php0.5B, TFS Php0.3B) Real Estate Sales and Interest income on Real Estate Sales (RES)** Php 7.0 billion -20%** *On July 4, 2019, the PCC approved the redemption of PCFI shares in exchange for selected assets. Realized net gain on redemption is Php3.4B. **2018 includes gain on sale of land worth Php2.7B to JV partners. Excluding gain, RES +15% due to Bay area projects. 3

GT Capital Consolidated Core Net Income Comparative 1Q 2018 vs. 1Q 2019 2Q 2018 vs. 2Q 2019 3Q 2018 vs. 3Q 2019 + 43 % + 24 % - 6 % FLI +7% FLI -23% FLI +39% TMP +48% TMP -24% TMP +22% MBT +49% MBT +15% MBT +22% TMBC +114% TMBC -22% TMBC +17% MPIC +7% MPIC +0.3% MPIC +1% 4.0 AXA Life +27% AXA Life +50% AXA Life -6% in Php Billion GI >100% in Php Billion GI >100% in Php Billion GI >100% 5.0 3.6 3.5 4.0 3.4 3.4 3.2 2Q 2018 2Q 2019 1Q 2018 1Q 2019 2Q 2018 2Q 2019 *gross of Php149.3M amortization of FV adjustment 3Q 2018 3Q 2019 4

GT Capital 9M 2019 vs 9M 2018 Comparative Consolidated Core Net Income  MBT +29% +20 %  TMBC +30% 12.4*  TMP +13% 10.3  FLI +10% in Php Billion  MPIC +3%  TFS +4%  AXA Life +24% GI >100%  *Highest Nine Months Core Net Income in GT Capital History 9M 2018 9M 2019 *gross of Php149.3M amortization of FV adjustment 5

GT Capital Net Income Contribution 9M 2019 TFSPH AXA TMBC TFSPH TMBC AXA 2.0% 4.1% 0.6% 1.4% 0.6% 3.3% TMP MPIC TMP MPIC 25.1% 11.9% 24.4% 14.7% FLI FLI 6.8% 7.2% MBT MBT 46.1% 51.1% MBT + TMP = 71.2% MBT + TMP = 75.5% 9M 2018 9M 2019 6

GT Capital Net Income Contribution by Sector \ Insurance Insurance 4.1% 2.7% Auto Infrastructure FLI Infrastructure Auto 21.9% 9.8% 5.6% 14.7% 27.9% Property 7.2% Gain on PCFI Redemption 18% Banking 41.9% Banking 46.1% Banking + Auto = 74.0% Banking + Auto = 63.8% 9M 2018 9M 2019 *Property includes gain on redemption of PCFI shares 7

Automotive

Retail auto unit sales volume As of September 2019 YTD In Units Industry factors: Industry Signs of recovery due to easing inflation, o 297,263 292,364 ▲ 2 % declining interest rates, and rebound in consumer confidence Y-o-Y 9M 2019 results: 109,402 114,117 Toyota Driven by Vios and Innova sales growth o ▲ 4 % Introduction of the FMC Hiace o 9M 2018 9M 2019 • Y-o-Y Industry Toyota In Percent Year-on-year (%YoY) 2% 4% 4% 4% 0.4% 3% 2% 2% 12M 2018 1M 2019 2M 2019 3M 2019 4M 2019 5M 2019 6M 2019 7M 2019 8M 2019 9M 2019 -0.4% 0% -1% -3% -5% -8% -4% -15% -15% -11% -14% Industry Toyota -17% Source: Company data, CAMPI, AVID 9

Retail auto unit sales volume As of October 2019 YTD In Units 10M 2019 results: o Reduced the backlog on Alphard and Land Cruiser 130,520 Toyota o Highest unit sales for the year in ▲ 5 % 124,329 October 2019 (16,403 units) Y-o-Y o Record-high Vios monthly unit sales 3,238 10M 2018 10M 2019 o Successful ramp-up of new model Toyota launches: Avanza, Altis, Hiace, RAV4 In Percent Year-on-year (%YoY) +5% 2% 4% 4% 4% 0.4% 3% 2% 2% 12M 2018 1M 2019 2M 2019 3M 2019 4M 2019 5M 2019 6M 2019 7M 2019 8M 2019 9M 2019 10M* 2019 -1% -0.4% 0% -15% -15% -8% -5% -3% -4% -11% Industry Toyota -17% -14% *Industry numbers reflect CAMPI only (No AVID figures for October 2019 yet) 10 Source: Company data

TOYOTA’S ROAD TO RECOVERY Retail auto unit sales volume M-o-M Toyota 2019 Unit Sales + 22 % M-o-M 18,000 16,403 16,000 13,889 14,568 14,120 13,083 13,460 14,000 12,932 11,443 11,355 12,000 10,000 9,267 • 8,000 6,000 4,000 2,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Source: Company data, CAMPI 11

Toyota is still PH’s dominant auto brand Overall Market Share As of September 2019 YTD 35% in 1Q 41% in 2Q 40% in 3Q 38% in 9M19 24,243 Unit difference No.1 No.1 No.1 Commercial Overall Passenger 16% Vehicle Sales Sales Car Sales 11% 9% 6% 6% 5% 3% MITSUBISHI 2% NISSAN 1% HYUNDAI SUZUKI 0.7% 0.7% 0.7% FORD HONDA ISUZU OTHERS KIA GM MAZDA SUBARU Source: Company data, CAMPI, AVID 12

Toyota is still PH’s dominant auto brand Auto Industry Market Share As of September 2019 YTD Passenger Car Commercial Vehicle 42% 39% in 1Q 33% in 1Q 37% in 9M in 9M 39% in 2Q 45% in 2Q 42% in 3Q 39% in 3Q 69.1% of total market 30.9% of total market 66.4% of Toyota sales 33.6% of Toyota sales 16% 14% 16% 15% 9% 8% 6% 5% 5% 7% 3% 3% 4% 3% 2% 1% 0.6% 1% 0.8% 0.6% 0.5% 0.3% 0.3% Source: Company data, CAMPI, AVID 13

CARS Unit Sales Progress Units sold of Toyota Vios since launch of CARS Program model launched in July 2018 to date (cumulative) Oct 2019 37,958 Dec 2018 June 2019 11,336 26,933 Sept 2018 March 2019 3,503 18,423 Aug 2018 Within CARS sales 1,658 volume commitment Introduction of FMC Vios July 2018 222

New model launch update Still dominant in respective segments Launch dates 53% segment May 2018 – share YTD September FY’18: 7.0% of sales Entry SUV 33% segment July 2018 – share YTD September FY’18: 16.8% of sales Sub-Compact PC 80% segment Dec 2018 – share YTD September FY’18: 0.1% of sales Medium PC 64% segment Feb 2019 share YTD September FY’18: 12.0% of sales Utility Van

TMP Financial Highlights Revenues  Wholesale volume +0.4% to 104,226 units; Retail volume +4.3% (vs 1.7% Industry volume) +2% 121.4 119.3  Retail Sales volume (year-to-date): in Php Billion PCs: Vios +31% , Wigo -16% o CVs: Hilux +24% , Innova +16% , o Fortuner -19% , Hiace -3% , Rush +50% 9M 2018 9M 2019 Overall market share was sustained at o 38.4% in September Net Income Improved GPM to 12.7% from 11.0% and o OPM 8.2% from 7.1% due to: +13% 7.3 6.5  Favorable FX movement in Php Billion  Two rounds of price increases: January (selective), July (across-the- board)  Higher spare parts profit 9M 2018 9M 2019 17 17

TOYOTA MOVING FORWARD New model launches July 2019 January 2019 Feb 2019: Commuter, GL Grandia, GL Grandia Tourer Aug 2019: Super Grandia September 2019 Full-model change and intro of Hybrid variant September 2019 Improvement and introduction of Hybrid variant 18

Rising Together Dealership Expansion to New Heights Target by end of year 2014 2015 2016 2017 2018 2019 2020E 2021E 45 49 52 61 69 71 79 83 Number of Dealers 2020 2021 LUZON 35 32 28 METRO MANILA DARAGA Albay 19 March 2019 2020 2021 20 20 VISAYAS 14 2020 2021 15 15 July 2019 Valenzuela MINDANAO 10 2020 2021 12 13

GTCAD Management Team Antonio P .A. Zara III Vince S. Socco General Manager Chairman • Former EVP of Lexus Asia Pacific • Former President of Nissan Motor Distributor Indonesia • Former GM of Toyota Motor Asia Pacific • Former President of Nissan Motor Philippines, Inc. • Former GM of Toyota Motor Philippines • Former President of General Motors Asia Pacific Japan • 40 years of service to Toyota Motor • Over three decades of auto industry experience 20

GTCAD Ventures 100% 66% 33.4% 66.6% (40%)* (20%)* 40% 60% *Numbers in parentheses denote GTCAD’s and Mitsui’s respective effective ownership stakes in JBA Philippines 21

Extending the automotive value chain to Used car auction house operations 26 March 2019 22

Property Development 23

RESIDENTIAL SUPPLY AND DEMAND Managed growth for new launches Metro Manila Residential Condominium Supply and Demand 60,000 Forecasted Supply 50,000 45,000 40,000 35,000 34,900 Units 30,000 29K 21,600 26K 20,000 9M 10,000 2019A 0 2014 2015 2016 2017 2018 2019E 2020E 2021E Launches (Supply) Pre-sales (Demand) 24 Source: Average Estimates of Colliers Philippines, Leechiu Property Consultants, JLL, Deutsche Bank, 2019

OFFICE SUPPLY AND DEMAND 9M19 office supply exceeds demand; Office supply and vacancy expected to decline by 2020 Metro Manila New Office Supply vs. Vacancy Rate 6.2% 6.0% 6.0% 6.0% 1.4 5.3% 5.0% 4.7% 4.0% 1.2 3.0% GLA in Mn SQM 1 0.8 0.6 0.4 9M 2019A 0.2 0 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E Vacancy Rate (Cumulative) Office Supply (Incremental) Office Take-up (Incremental) 25 Source: Average estimates of Leechiu Property Consultants, Colliers Philippines, Pronove Tai, Deutsche Bank, 2019

OFFICE SUPPLY 9M19 Metro Manila office stock up 10% YOY + sqm + sqm + sqm + sqm sqm + + Annual Increase sqm 1.07 million sqm + sqm + sqm 26 Source: Colliers Philippines, 2019

CONDOMINIUM SUPPLY Makati CBD, BGC, and Bay Area cover nearly 70% of supply + + units + units + units + units + units + Annual Incremental Increase units 9,600 units + units + units 27 Source: Colliers Philippines, 2019