SMC Investors Briefing for 2016 First Quarter Results

SMC Investors Briefing for 2016 First Quarter Results

C02705-2016
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER
1. Date of Report (Date of earliest event reported)
May 12, 2016
2. SEC Identification Number
31171
3. BIR Tax Identification No.
000-168-801
4. Exact name of issuer as specified in its charter
PETRON CORPORATION
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
San Miguel Head Office Complex, 40 San Miguel Avenue, Mandaluyong City
Postal Code
1550
8. Issuer's telephone number, including area code
(63 2) 886-3888, 884-9200
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class
Number of Shares of Common Stock Outstanding and Amount of
Debt Outstanding
COMMON (PCOR)
9,375,104,497
PREFERRED SERIES 2A (PRF2A)
7,122,320
PREFERRED SERIES 2B (PRF2B)
2,877,680
TOTAL DEBT AS OF MARCH 31, 2016
(IN MILLIONS)
11. Indicate the item numbers reported herein
Item 9.
202,545
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate
disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange,
and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to
the Corporate Information Officer of the disclosing party.
Petron Corporation
PCOR
PSE Disclosure Form 4-30 - Material Information/Transactions
References: SRC Rule 17 (SEC Form 17-C) and
Sections 4.1 and 4.4 of the Revised Disclosure Rules
Subject of the Disclosure
Materials for the Investors' Briefing for 2016 First Quarter Results of San Miguel Group
Background/Description of the Disclosure
Materials for the Investors' Briefing for 2016 First Quarter Results of San Miguel Group
Other Relevant Information
Please see attached letter dated May 12, 2016.
Filed on behalf by:
Name
Jhoanna Jasmine Javier-Elacio
Designation
Legal Manager and Assistant Corporate Secretary
May 12, 2016
PHILIPPINE STOCK EXCHANGE, INC.
Disclosure Department
3rd Floor, Philippine Stock Exchange Center
Ayala Triangle, Ayala Avenue
Makati City
Attention:
Ms. Janet A. Encarnacion
Head, Disclosure Department
Subject:
SMC Investors’ Briefing for 2016 First Quarter Results
Gentlemen:
We are forwarding the materials that were distributed to the attendees at the
Investors’ Briefing of San Miguel Corporation (“SMC”) this afternoon. The Company is
among the subsidiaries of SMC reported.
Very truly yours,
JOEL ANGELO C. CRUZ
VP - General Counsel &
Corporate Secretary
INVESTORS’ BRIEFING
2016 First Quarter Results
12 May 2016
SIGNIFICANT DEVELOPMENTS
1
MRT 7 Project
2
SMC Global Power Retail Bond Offering
investors’
briefing
2016
first
quarter
results
2
SAN MIGUEL CORPORATION
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
Net Sales
159,625
157,751
1%
Income from Operations
22,822
16,555
38%
Net Income
13,539
6,107
122%
EBITDA
31,474
22,427
40%
investors’
briefing
2016
first
quarter
results
3
SAN MIGUEL BREWERY INC.
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
Net Sales
23,267
18,883
23%
Income from Operations
6,050
5,166
17%
Net Income
4,018
3,265
23%
investors’
briefing
2016
first
quarter
results
4
GINEBRA SAN MIGUEL INC.
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
3,934
3,667
7%
Income from Operations
188
94
100%
Net Income
54
(29)
288%
Net Sales
investors’
briefing
2016
first
quarter
results
5
SAN MIGUEL PURE FOODS COMPANY INC.
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
Net Sales
25,980
25,091
4%
Income from Operations
1,776
1,468
21%
Net Income
1,218
911
34%
investors’
briefing
2016
first
quarter
results
6
SAN MIGUEL PURE FOODS COMPANY INC.
Agro-Industrial
IN MILLION PESOS
INCOME FROM
O P E R AT I O N S
+78.0%
REVENUE
+6.2%
17,227
1Q 2015
18,301
863
485
1Q 2015
1Q 2016
1Q 2016
Vo l u me G ro w t h
Poultry & Fresh Meats
investors’
briefing
2016
first
Feeds
8%
quarter
results
5%
7
SAN MIGUEL PURE FOODS COMPANY INC.
Milling
IN MILLION PESOS
INCOME FROM
O P E R AT I O N S
-28.1%
REVENUE
-11.4%
2,667
1Q 2015
2,363
648
1Q 2016
1Q 2015
Ave. Selling Prices
of Basic Flour
investors’
briefing
2016
first
Ave. Wheat Cost
12%
quarter
results
466
1Q 2016
7%
8
SAN MIGUEL PURE FOODS COMPANY INC.
IN MILLION PESOS
Branded Value - Added
INCOME FROM
O P E R AT I O N S
+63.2%
REVENUE
+5.3%
5,408
1Q 2015
5,694
256
1Q 2016
1Q 2015
418
1Q 2016
Brand Building
investors’
briefing
2016
first
quarter
results
9
SAN MIGUEL PURE FOODS COMPANY INC.
Food Service
investors’
briefing
2016
first
quarter
results
Convenience
stores
Pizza Chains
Fast Food
Chains
Hotels &
Restaurants
10
SAN MIGUEL PURE FOODS COMPANY INC.
As of
March 2016
As of
December 2015
Total Assets
61,198
61,038
Cash
10,077
9,284
Interest-bearing Debt
2,994
3,641
Current Ratio
1.92x
1.89x
Debt-to-Equity Ratio
0.54x
0.56x
Interest-bearing Debt to Equity Ratio
0.08x
0.09x
IN MILLION PESOS
investors’
briefing
2016
first
quarter
results
11
SAN MIGUEL PACKAGING GROUP
IN MILLION PESOS
Net Sales
Income from Operations
investors’
briefing
2016
first
quarter
1Q 2016
1Q 2015
CHANGE
6,503
5,811
12%
597
479
25%
results
12
SMC GLOBAL POWER HOLDINGS CORP.
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
Net Sales
19,931
19,757
1%
Income from Operations
7,310
6,834
7%
investors’
briefing
2016
first
quarter
results
13
GREENFIELD POWER PROJECTS
M A L I T A 2 X 15 0 M W
POWER PLANT
L I M A Y 2 X 15 0 M W
POWER PLANT
investors’
briefing
2016
first
quarter
results
14
PETRON CORP.
PRICE DIFFERENTIALS VS. DUBAI
120
1Q15
Dubai: $51.8
Brent: $53.9
Crude Prices, USD/bbl
100
80
1Q16
Dubai: $30.6
Brent: $33.9
60
40
Dubai
20
Jan 21 2016
Dubai $22.8
Brent
Jan-15
Mar
May
Jul
Sep
Nov
- Jan Dubai crude price at a low of $23/bbl due to
persistent oversupply
- Support in prices began in February due to market
expectation of production drop
o
Continued reduction in shale oil rigs
o
Possible cooperation of major oil producers to cap
production
briefing
2016
first
GASOLINE
25
20
15
10
5
0
quarter
results
10
5
0
(5)
(10)
(15)
(20)
(25)
1Q15 2Q15 3Q15 4Q15 1Q16
20
DIESEL
15
10
5
0
1Q15 2Q15 3Q15 4Q15 1Q16
Jan-16 March
• Oil price begin to recover in Feb, following a crude
price bottom in Jan.
investors’
Differentials vs. Dubai, USD /bbl
CRUDE PRICES
NAPHTHA
LPG
1Q15
40
35
30
25
20
15
10
2Q15
3Q15
4Q15
1Q16
3Q15
4Q15
1Q16
PETROCHEMICALS
1Q15
2Q15
 Sustained strong margins of Gasoline, LPG,
Naphtha and Petrochemicals
- Strong demand spurred by low prices
x
Continued Weakness on Diesel prices
- Diesel producing refiners coming on stream
15
PETRON CORP.
Operating Performance
SALES VOLUME PERFORMANCE (‘000 BARRELS/DAY)
250
225
200
175
150
125
100
75
50
25
-
160.7
1Q15
MY
173.1
1Q16
94.3
105.5
1Q15
1Q16
Crude Run in , in MBD
150
~85%
• Reduction in Debt Levels
190
~90%
~75%
120
90
60
30
180
170
160
150
140
1Q15
0
1H15
investors’
• Declaration of RMP-2 commercial operation
in Jan 2016
• Introduction of Blaze 100 Euro 4M in
Malaysia
BATAAN REFINERY UTILIZATION
180
- PH driven by strong growth in gasoline,
diesel and lubricants.
- MY driven by high Industrial growth
Gross Debt In Billions, PHP
PH
• Strong sales volumes growth in all major
segments
briefing
2H15
2016
first
2Q15
3Q15
4Q15
1Q16
1Q16
quarter
results
16
PETRON CORP.
IN MILLION PESOS
1Q 2016
1Q 2015
CHANGE
Net Sales
76,857
86,744
-11%
Gross Margins
8,942
5,757
55%
Rate
12%
7%
Income From Operations
5,764
2,968
94%
Net Income
2,758
257
high
Volume (in million barrels)
25.3
23.2
9%
investors’
briefing
2016
first
quarter
results
17
SAN MIGUEL HOLDINGS CORP.
INFRASTRUCTURE BUSINESS
IN MILLION PESOS
1Q 2016
1Q 2015*
CHANGE
Net Sales
4,692
4,030
16%
Income from Operations
2,429
2,091
16%
1Q 2016
1Q 2015
CHANGE
SLEX
295,696
265,500
11%
Skyway Stages 1 and 2
245,013
238,001
3%
STAR Tollway
46,485
39,152
19%
TPLEX
15,124
11,671
30%
TRAFFIC VOLUME
(no. of vehicles)
*Infrastructure tolling revenues consolidated in SMC group for 1Q 2015 was P1.5 billion and operating income was about P659 million,
given consolidation of SLEX and Skyway Stages 1 and 2 only started in March.
investors’
briefing
2016
first
quarter
results
18
SAN MIGUEL HOLDINGS CORP.
INFRASTRUCTURE BUSINESS
NAIA EXPRESSWAY
SKYWAY STAGE 3
BORACAY AIRPORT
investors’
briefing
2016
first
quarter
results
19
SAN MIGUEL HOLDINGS CORP.
INFRASTRUCTURE BUSINESS
BULACAN BULK WATER
MRT -7
investors’
briefing
2016
first
quarter
results
20
SMC FINANCIAL POSITION
As of
March 2016
As of
December 2015
1,274
1,246
Cash
201
181
Interest –bearing Debt
500
515
Current Ratio
1.49
1.32x
Total Liabilities to Equity Ratio
2.01
2.24x
Interest-bearing Debt to Equity Ratio
1.18
1.34x
Net-Debt-to-EBITDA
2.16
2.61x
IN BILLION PESOS
Total Assets
investors’
briefing
2016
first
quarter
results
21
VISIT OUR WEBSITES
San Miguel Corporation
San Miguel Brewery Inc.
Ginebra San Miguel Inc.
San Miguel Pure Foods Co. Inc.
Petron Corporation
THANK YOU.
www.sanmiguel.com.ph
www.sanmiguelbrewery.com.ph
www.ginebrasanmiguel.com
www.sanmiguelpurefoods.com
www.petron.com
CONTACT US
SMC Investor Relations
+632 632 3752
+632 632 3422