Investors` Briefing on the 2015 Full Year Results

Investors` Briefing on the 2015 Full Year Results

SAN MIGUEL BREWERY INC.
A subsidiary of San Miguel Corporation
March 17, 2016
PHILIPPINE DEALING & EXCHANGE CORP.
37/F, Tower I, The Enterprise Center
6766 Ayala Ave., cor. Paseo de Roxas
Makati City
Attention:
MS. VINA VANESSA S. SALONGA
Head, Issuer Compliance and Disclosure Department
Gentlemen:
Attached are the materials for the combined Investors’ Briefing on the 2015 Full-Year
Results of San Miguel Brewery Inc., San Miguel Corporation, Ginebra San Miguel Inc., San
Miguel Pure Foods Company, Inc., and Petron Corporation.
Very truly yours,
ROSABEL T. BALAN
Vice President and General Counsel
INVESTORS’ BRIEFING
2015 FULL YEAR RESULTS
17 March 2016
BULACAN BULK
WATER SUPPLY
PROJECT
MANILA NORTH
HARBOR PORT INC.
SERIES “2” PREFERRED
SHARES SUBSERIES
G, H, I
UPDATE ON TELCO JV
SAN MIGUEL CORPORATION
F U L L -Y E A R 2 0 1 5
IN BILLION PESOS
2015
2014*
CHANGE
Net Sales
673.9
773.7
-13%
Income from
Operations
78.7
55.8
41%
Net Income excluding
forex
38.2
30.3
26%
108.6
88.5
23%
EBITDA
*As Restated
SAN MIGUEL BREWERY INC.
F U L L -Y E A R 2 0 1 5
IN MILLION
PESOS
2015
2014
CHANGE
Net Sales
82,374
79,005
4%
Income from
Operations
22,631
22,079
3%
Net Income
13,518
13,515
-
GINEBRA SAN MIGUEL INC.
F U L L -Y E A R 2 0 1 5
IN MILLION
PESOS
2015
2014
CHANGE
Net Sales
16,627
15,511
7%
621
358
73%
Income from
Operations
SAN MIGUEL PURE FOODS
COMPANY INC.
F U L L -Y E A R 2 0 1 5
IN MILLION
PESOS
2015
2014
CHANGE
106,860
102,999
4%
Income from
Operations
7,644
6,463
18%
Net Income
4,752
3,843
24%
Net Sales
SAN MIGUEL PURE FOODS
COMPANY INC.
F U L L -Y E A R 2 0 1 5
Agro-Industrial
INCOME FROM
O P E R AT I O N S
REVENUE
+4.2%
69,648
2014
P/kdw
115
+8.2%
72,559
2014
2015
Chicken Selling Prices
P/klw
130
105
120
95
110
1Q
2014
2Q
2015
3Q
2,791
2,579
Source: Internal
Hog Selling Prices (Industry)
1Q
4Q
2014
2015
2Q
2015
3Q
4Q
Source: BAI
SAN MIGUEL PURE FOODS
COMPANY INC.
F U L L -Y E A R 2 0 1 5
Milling
INCOME FROM
O P E R AT I O N S
REVENUE
+3.4%
-10.1%
2,338
10,256
2,103
9,916
2014
2015
2014
Flour Selling Prices
P/bag
720
670
620
1Q
2014
2Q
3Q
4Q
2015
Source: Internal
2015
SAN MIGUEL PURE FOODS
COMPANY INC.
F U L L -Y E A R 2 0 1 5
B r a n d e d Va l u e - A d d e d
REVENUE
INCOME FROM
O P E R AT I O N S
+8.2%
+33.2%
25,725
23,786
2014
2015
1,730
2014
2,305
2015
Revenue Growth driven by:
Processed Meats
8%
Dairy, Spreads & Biscuits 13%
SAN MIGUEL PURE FOODS
COMPANY INC.
F U L L -Y E A R 2 0 1 5
FOOD SERVICE
Convenience
stores
Fast Food
Chains
Pizza Chains
Hotels &
Restaurants
SAN MIGUEL PURE FOODS
COMPANY INC.
As of
Dec 2015
As of
Dec 2014
Total Assets
61,038
66,655
Cash
9,284
14,216
Interest-bearing Debt
3,641
13,245
Current Ratio
1.89x
1.62x
Debt-to-Equity Ratio
0.56x
0.85x
Interest-bearing Debt to
Equity Ratio
0.09x
0.37x
IN MILLION PESOS
SAN MIGUEL YAMAMURA
PACKAGING GROUP
F U L L -Y E A R 2 0 1 5
IN MILLION
PESOS
Net Sales
Income from
Operations
2015
2014
CHANGE
25,050
24,226
3%
2,344
2,305
2%
SMC GLOBAL POWER
HOLDINGS CORP.
F U L L -Y E A R 2 0 1 5
IN MILLION PESOS
2015
2014
CHANGE
Net Sales
77,507
84,294
-8%
Income from
Operations
23,703
25,896
-8%
GREENFIELD POWER PROJECTS
M A L I TA 2 X 1 5 0 M W
POWER PLANT
L I M AY 2 X 1 5 0 M W
POWER PLANT
PETRON CORP.
Regional Market Developments – Prices
PRICE DIFFERENTIALS VS. DUBAI
CRUDE PRICES
Jun’14
Dubai
$108
Crude Prices, USD/bbl
140
120
Brent
June
Dubai
$62
100
80
Dec’14
Dubai
$60
60
40
FY 14
Dubai: $96.66
Brent: $98.95
20
-
Sept
Dubai
$45
Dec
Dubai
$35
FY15
Dubai: $50.84
Brent: $52.39
Differentials vs. Dubai, USD /bbl
15
Dubai
10
-20
5
with Dubai falling by $27/bbl since June
-
Persistent oversupply due to sustained US Shale
production
High OPEC production levels
LPG
-30
-40
0
01 01 01 01 01 01 01 01 01 01 01 01
Jan Apr Jul Oct Jan Apr Jul Oct
25
95
85
75
65
55
45
35
25
15
5
DIESEL
GASOLI
20
NE
15
10
5
Jan Apr Jul Oct Jan Apr Jul Oct
• 2H2015 characterized by volatile crude prices
NAPHTHA
0
-10
2014
•
10
TAPIS
CRUDE
2015
PETROCHEMICALS
Jan Apr Jul Oct Jan Apr Jul Oct
2014
2015
Product Price Differentials over Dubai:
 Record high levels of Gasoline,
LPG and Naphtha
 Petrochemicals begin to recover
•
Tapis, staple crude of Malaysia, corrects back to
$3.88/bbl premium in 4Q from a low $1.84/bbl in 3Q
Pressure on Diesel persists
PETRON CORP.
PH Domestic Market Developments
INDUSTRY DEMAND - PH
595
520
445
370
295
220
145
70
In ‘000 barrels/day
• Robust industry growth in 2015
322.0
306.0
392.0
341.0
• Double digit growth rates for motor
fuels -- Gasoline and Diesel; and LPG
• Weaker Asian currencies versus USD
FY 2012
FY 2013
FY2014
FY2015
DEMAND FOR MOTOR FUELS - PH
FOREIGN EXCHANGE
Growth Rates (%)
20%
Gasoline
15%
Diesel
LPG
14%
3%
Source: Department of Energy.
3.6
19.4%
10
0%
FY 2014
4.3
5.8%
20
4%
FY2015
47.2
44.6
30
6%
FY 2014
50
40
11%
10%
MY (Ringgit per USD)
PH (Peso per USD)
60
FY2015
FY2014
FY2015
0
Jan-15
Dec-15
Jan-15
Dec-15
PETRON CORP.
Operating Performance
• Surge in sales volumes
SALES VOLUME PERFORMANCE (‘000 BARRELS/DAY)
PH
250
225
200
175
150
125
100
75
50
25
-
- PH driven by robust growth in
Retail; Industrial and LPG sales.
- MY driven by strong gasoline retail
growth
MY
169.8
• Continuous ramp-up of RMP-2
141.1
FY2014
FY2015
96.5
98.8
FY2014
FY2015
BATAAN REFINERY UTILIZATION
• Euro IV compliant products
produced ahead of Jan 1, 2016
government mandate
• On-going Service Station Expansion
140
120%
120
100%
100
~80%
80%
60%
~90%
50+
60
~50%
40%
40
20%
20
0%
0
FY2014
Built
80
~60%
FY2013
Under
Construction
1H15
2H15
70
15+
19
PH: ~ 2,200 stations
MY: ~ 570 stations
PETRON CORP.
F U L L -Y E A R 2 0 1 5
IN MILLION PESOS
2015
2014
CHANGE
Net Sales
360,178
482,535
-25%
Gross Margins
31,740
19,435
63%
8.8%
4.0%
120%
Income from
Operations
18,134
7,605
138%
Net Income
6,270
3,009
108%
Volume (in million
barrels)
98.0
86.5
13.3%
Rate
SAN MIGUEL HOLDINGS CORP. INFRASTRUCTURE
F U L L -Y E A R 2 0 1 5
IN MILLION PESOS
2015
2014
CHANGE
Net Sales*
15,238
12,759
19%
Income from
Operations*
8,536
7,397
15%
273,978
241,906
41,148
12,750
247,124
228,079
33,436
8,488
11%
6%
23%
50%
Traffic Volume
(no. of vehicles)
SLEX
SKYWAY STAGES 1 AND 2
STAR TOLLWAYS
TPLEX
*Infrastructure tolling revenues consolidated in SMC group for full year 2015 was P13.3 billion
and operating income was about P7.3 billion, given consolidation of SLEX and Skyway Stages
1 and 2 only started in March.
SAN MIGUEL HOLDINGS CORP. INFRASTRUCTURE
NAIA Expressw ay
Skyway Stage 3
Boracay Airport
SMC FINANCIAL POSITION
As of Dec
2015
As of Dec
2014
1,246
1,217
Cash
181
259
Interest-bearing Debt
515
483
Current Ratio
1.32x
1.50x
Total Liabilities to Equity
Ratio
2.24x
2.12x
Interest-bearing Debt to
Equity Ratio
1.34x
1.24x
Net-Debt-to-EBITDA
2.61x
2.35x
IN BILLION PESOS
Total Assets
THANK YOU
Visit our websites:
San Miguel Corporation
www.sanmiguel.com.ph
San Miguel Brewery Inc.
www.sanmiguelbrewery.com.ph
Ginebra San Miguel Inc.
www.ginebrasanmiguel.com
San Miguel Pure Foods Co. Inc.
www.sanmiguelpurefoods.com
Petron Corporation
www.petron.com
Contact us:
SMC Investor Relations
+632 632 3752 / +632 632 3422