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COSCO CAPITAL GROUP

INVESTOR PRESENTATION Q1 2016 RESULTS & PERFORMANCE

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materials and information in the presentations and other documents are for

informational purposes only, and are not an offer or solicitation for the purchase or

sale of any securities or financial instruments or to provide any investment service

or investment advice.

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CONGLOMERATE MAP

3

Lucio Co & Family

Cosco Capital Inc.

Grocery Retailing

Liquor Distribution

Commercial Real Estate

Specialty Retail

Oil & Minerals

73%

51% 100% 100%

100%

100%

90%

One of the leading retail holding companies in the Philippines

CORPORATE RESTRUCTURING

4

CORPORATE HIGHLIGHTS

April 22: Approval by the

Securities and

Exchange Commission

(SEC) of change in

corporate name and

increase in capital stock

of Parent company.

May 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.

August 12: Cosco Capital, Inc. through

its wholly-owned subsidiary, Ellimac

Prime Holdings, Inc., acquired

Maunlad mall situated at Malolos

Bulacan

August 6: Puregold Price Club, through

wholly-owned subsidiary Entenso

Equities and Goldtempo Company, Inc.,

acquired eight (8) supermarket stores

operating under trade name Budgetlane

August 5: through wholly-owned

subsidiary, Ellimac Prime Holdings,

Inc. acquired RFC mall located along

Alabang, Zapote, Las Pinas City

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)

commercial properties from NE

Incorporated

January 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: Acquisition of

NE Pacific Shopping

Centers Corporation

May 1: Acquisition of Office

Warehouse, Inc.

July 17: Acquisition and

subscription of additional

shares of Canaria Holdings

Corporation.

July 21: Acquisition of

Liquigaz Philippine

Corporation through

Canaria Holdings

Corporation

2013 2014 2015

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INVESTMENT SUMMARY

1. Sustained economic growth of the Philippines

2. Exposure to growing & robust consumer sector

3. Visible growth pipeline in the next 5 years

4. Focused core target market per brand

5. Management focused on the sustainable and Long-Term growth ofthe company

6

Q1 2016 REVENUE AND PATMI CONTRIBUTIONS

7

PATMI – Net income attributable to equity holders of the parent company

86%

1%

4% 9% 0% REVENUE

Grocery retail

Real estate and propertyleasing

Liquor Distributions

Specialty retail

Oil and Gas

55%22%

12%

12%-1%

PATMI

Grocery retailing

Real estate

Liquor distribution

Specialty retail

Oil and Gas

Q1 2016 CONSOLIDATED FINANCIAL PERFORMANCE

8

Revenues (in Php Millions) Gross Profit and Margin (in Php Millions)

EBITDA and Margin (in Php Millions) Net Profit and Margin (in Php Millions)

48,976

98,787116,75

2

25,629 28,793

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

9,534

17,28719,964

4,415 4,88719% 17% 17%

17% 17%

8%

13%

18%

23%

28%

33%

38%

5,000

10,000

15,000

20,000

25,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016GP GP Margin

5,733

10,17911,675

2,661 2,89012%

10% 10%

10% 10%

0%

5%

10%

15%

20%

25%

30%

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

EBITDA EBITDA Margin

3,731

6,236 6,987

1,494 1,6568% 6% 6% 6% 6%

0%

5%

10%

15%

20%

25%

2,000

4,000

6,000

8,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

NIAT NIAT Margin

Stores roll-out through FY 2015

First store

Opened in

Mandaluyong

City, Metro

Manila

Expansion

Launched loyalty

program in 2001;

renamed as

Tindahan ni Aling

Puring in 2004

Between 2002 and

2006, launched an

average of 3 new

stores every year

and expanded

operations in North

and South Luzon

Brand recognition

Reader’s Digest

Asia’s “Most

Trusted Brands”

Market leadership

The 2nd largest

hypermarket and

supermarket

retailer in the

Philippines in terms

of net sales

Rapid expansion via organic

new Puregold stores roll-out

and acquisitions

2011 - Opened 38 new

Puregold stores

2012 – Opened 31 new

Puregold stores; Acquired

Parco supermarkets with 19

stores and S&R warehouse

membership shopping club

with 6 stores

Rapid store expansion from 1 to 298 stores in 17 years

First format

introduction

New format

introduction

New format

introduction - 2010

Continuing new stores roll-

out via organic geographic

expansion and

acquisitions

Opened 40 new Puregold

and 2 new S&R stores in

2013

Acquired Company E with

15 stores in 2013

NE Bodega 9 stores and

Budgetlane 8 stores

acquisitions in 2015

1 3 16 20 30 4164

102

158

215248

298

1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GROCERY RETAIL SEGMENT HIGHLIGHTS

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Opened 5 new PGOLD stores; 1 S&R New York Style Pizza (QSR) in 1Q 2016; closed 1 PGOLD store

Operating 286 stores in 1Q 2016; with consolidated NSA of more than 430,000 sqm.; excluding acquisition NE Bodega of around 15,000 sqmand Budgetlane of around 18,000 sqm.

Consolidated net sales expanded by 19.7% in 1Q 2016; Puregold stores sales accounted for about 82.4% of consolidated net sales

Gross profit grew by 12.6% in 1Q 2016; with gross profit margin posted 16.6%

Operating income increased by 12.9% in 1Q 2016; with operating margin at 6.7%

Consolidated Net income grew by 9.5% in 1Q 2016; consolidated net profit margin at 4.7% PGOLD only net margin is at 3.8% while S&R net margin is 8.7%.


GUIDANCE FOR FY 2016

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• Consolidated net sales targeted to grow by 12 to 15% driven by the following:

– Net sales growth from organic Puregold and S&R stores

– Positive SSSG for Puregold (3%) and S&R (4 to 5%)

– Opening of 25 new Puregold stores; 2 S&R stores

– Full year operations of NE Bodega & Budgetlane Supermarket

• Lower PGOLD inventory days between 45 to 50 days

• Sustain PGOLD consolidated gross and net profit margins

• Pursue acquisitions and expand into new geographic locations


12

CAPEX GUIDANCE FOR FY 2016

• CAPEX Budget of Php 2.6 billion in 2016

– Php 1 billion for 25 new Puregold Stores

– Php 1 billion for 2 S&R stores

– Php 150 million for 10 S&R QSR

– Php 450 million for 75 Lawsons Stores

• To be funded by internally generated cash and short term untapped bank credit lines if necessary.

GROCERY RETAIL SEGMENT FINANCIAL PERFORMANCE

Revenues (in Php Millions)

EBITDA and Margin (in Php Millions)

Gross Profit and Margin (in Php Millions)

Net Profit and Margin (in Php Millions)

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46,024

84,69797,172

20,689 24,761

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

7,871

14,76016,489

3,658 4,11917.1%17.4%

17.0%17.7% 16.6%

8.0%

13.0%

18.0%

23.0%

5,000

10,000

15,000

20,000


4,012

8,133 8,847

1,881 2,0968.7% 9.6%

9.1% 9.1% 8.5%

0.0%

5.0%

10.0%

15.0%

20.0%

2,000

4,000

6,000

8,000

10,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016


2,548

4,5205,002

1,054 1,154

5.5%5.3%

5.1%

5.1%4.7%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

1,000

2,000

3,000

4,000

5,000

6,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

NIAT NIAT Margin

LIQUOR SEGMENT HIGHLIGHTS

BrandyAlfonsoAlfonso lightExelenteCarlos

TequilaPatron

WhiskyJohnnie walker

RhumBacardi

TequilaCuervo

WhiskyBushmills whiskiesChivas

CognacVodkaLiquers

Products

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BrandyFundador lightFundador

WhiskyJB/Grants

LIQUOR SEGMENT HIGHLIGHTS

Q1 2016 SALES MIX

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Category 2016 2015 Increase %

Brandy 195,510 195,346 164 -

Other spirits 69,013 61,119 7,893 13%

Sub-Total 264,523 256,465 8,057 3%

Wines 29,230 26,414 2,816 11%

Specialty

beverages 27,349 24,187 3,161 13%

Grand Total 321,101 307,066 14,035 5%

LIQUOR DISTRIBUTION FINANCIAL PERFORMANCE





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3,565

4,8415,677

1,031 1,130

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

1,0031,188 1,299

238 273

28.1% 24.5% 22.9%

23.1% 24.1%

8.0%

13.0%

18.0%

23.0%

28.0%

33.0%

38.0%

200

400

600

800

1,000

1,200

1,400

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

GP GP Margin

731838 919

171 180

20.5%17.3% 16.2% 16.6%

15.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

200

400

600

800

1,000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016


594 603 660

123 13216.7%12.5% 11.6%

11.9% 11.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

200

400

600

800

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

NIAT NIAT Margin

REAL ESTATE SEGMENT HIGHLIGHTS

• Total of 38 properties in Q1 2016 and 36 in Q1 2015.• Gross Leasable Area (GLA) in Q1 2016 414,405 and 397,439 in Q1

2015.

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Q1 2016 Q1 2015

A. Ebitda / Rentals 79.8% 78.4%

B. Rentals / Property & Eqpt 12.0% 12.3%

C. Ebitda / Property & Eqpt 9.5% 9.6%

D. Debt : Equity 0.59 0.47

E. NIAT / Equity 7.1% 6.0%

Selected Financial Ratios


Portfolio of Properties

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Q1 2015 Q1 2016

1. Land under Lease

Number of properties 9 9

Total area in sqms 145,980 145,980

Book value Php4,243mm Php4,243mm

2. Commercial Buildings

Number of buildings 25 27

Total GLA in sqms 196,159 213,125

Investment costs Php8,095mm Php8,811mm

3. Divisoria 999

Number of buildings 2 2

Total GLA in sqms 55,300 55,300

Investment cost Php4,162mm Php4,162mm

TOTALS

Number of properties 36 38

Investment costs Php16,500mm Php17,216mm Up by 4.3%

Total in GLA 397,439 sq.m 414,405 sq.m Up by 4.3%


Q1 2016 Occupancy rates

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Properties Occupancy

Rate

1. Anabu, Cavite 96.1%

2. Angeles, Pampanga 100.0%

3. 999 Building 1 98.3%,

4. 999 Building 2 94.4%

5. Baliuag, Bulacan 99.9%

6. Cabanatuan 94.4%

7. Candelaria 91.9%

8. Cubao 99.8%

9. Dalandanan, Valenzuela 94.1%

10. Dau, Mabalacat 95.8%

11. Don Antonio Heights 100.0%

12. Fairview Terraces 74.7%

13. Guiguinto, Bulacan 99.1%

14. Monumento 99.1%

Properties Occupancy

Rate

15. NE Baler 71.5%

16. NE San Jose 81.3%

17. NE San Juan 87.1%

18. NE Zulueta 73.6%

19. NE Pacific 99.1%

20. Q.I. Central 99.0%

21. RFC Las Pinas 46.7%

22. San Joaquin, Pasig 100.0%

23. San Juan, Batangas 100.0%

24. Subic Harbor Point 91.0%

25. Sucat 100.0%

26. Taguig 99.1%

27. Taytay 100.0%

28. Tayuman 95.5%

REAL ESTATE FINANCIAL PERFORMANCE

Revenues (in Php Millions) Gross Profit and Margin (in Php Millions)

EBITDA and Margin (in Php Millions) Net Profit and Margin (in Php Millions)

20

1,8382,210 2,423

544 576

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

9801,275

1,464

325 34456.4%

57.7%

60.4%59.7% 59.7%

54.0%

56.0%

58.0%

60.0%

62.0%

500

1,000

1,500

2,000


771

1,346 1,504

360 37844.3%

60.9%

62.1%66.3%

65.5%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

200

400

600

800

1,000

1,200

1,400

1,600

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016EBITDA EBITDA Margin

563

959 1,028

229 235

50.1%43.4% 42.4% 42.1%

40.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

200

400

600

800

1,000

1,200

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016NIAT NIAT Margin

SPECIALTY RETAIL SEGMENT HIGHLIGHTS

Liquigaz Philippine Corporation

• 99,166 mT volume sold in Q1 2016 and 111,090 mT in Q1 2015• Operates in 5 business segments• Current market share of around 30%.• Acquisition of G&G and Velgas refiling tank in 2015.• Infrastructures:

• Bataan Terminal• North hub 75 mT tank size• South hub 40 mT tank size• Tanks at customer premises• Cylinders• Auto gas stations• Bulk trucks• Cylinder truck

Five Business Segments1. Wholesale2. Commercial3. Industrial4. Autogas5. Cylinders

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SPECIALTY RETAIL SEGMENT HIGHLIGHTS

Office Warehouse, Inc.

• A total 59 stores in Q1 2016 and 50 stores in Q1 2015

• Net selling area of 11,036 sq.m. in Q1 2016• 63% of outlets are mall based and 37% are stand alone

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SPECIALTY RETAIL FINANCIAL PERFORMANCE





23

8,727

13,157

3,612 2,632

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

576

1,286

379 339

2.9%

9.8%10.5%

12.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

200

400

600

800

1,000

1,200

1,400

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

GP GP Margin

209

718

246 2462.3%

5.5%6.8%

9.3%

0.0%

5.0%

10.0%

15.0%

200

400

600

800

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016


132

508

139 139

1.5%

3.9% 3.8%5.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

100

200

300

400

500

600

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

NIAT NIAT Margin

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Thank you

cosco capital groupcoscocapitalbeta.webtogo.com.ph/images/items... · 430,000 sqm.; excluding...

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