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 IN BILLION PESOS 2015 2014* CHANGE Net Sales 673.9 773.7-13% Income from Operations Net Income excluding forex 78.7 55.8 41% 38.2 30.3 26% EBITDA 108.6 88.5 23% *As Restated
SAN MIGUEL BREWERY INC. 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. IN MILLION PESOS 2015 2014 CHANGE Net Sales 16,627 15,511 7% Income from Operations 621 358 73%
SAN MIGUEL PURE FOODS COMPANY INC. IN MILLION PESOS 2015 2014 CHANGE Net Sales 106,860 102,999 4% Income from Operations 7,644 6,463 18% Net Income 4,752 3,843 24%
SAN MIGUEL PURE FOODS COMPANY INC. Agro-Industrial R E V E N U E +4.2% 69,648 72,559 I N C O M E F R O M O P E R AT I O N S 2,579 +8.2% 2,791 2014 2015 2014 2015 P/kdw 115 Chicken Selling Prices P/klw 130 Hog Selling Prices (Industry) 105 120 95 1Q 2Q 3Q 4Q 2014 2015 Source: Internal 110 1Q 2Q 3Q 4Q 2014 2015 Source: BAI
SAN MIGUEL PURE FOODS COMPANY INC. R E V E N U E +3.4% M i l l ing I N C O M E F R O M O P E R A T I O N S -10.1% 9,916 10,256 2,338 2,103 2014 2015 2014 2015 P/bag 720 Flour Selling Prices 670 620 1Q 2Q 3Q 4Q 2014 2015 Source: Internal
SAN MIGUEL PURE FOODS COMPANY INC. Branded Value-Added R E V E N U E +8.2% I N C O M E F R O M O P E R A T I O N S +33.2% 23,786 25,725 1,730 2,305 2014 2015 Revenue Growth driven by: 2014 2015 Processed Meats 8% Dairy, Spreads & Biscuits 13%
SAN MIGUEL PURE FOODS COMPANY INC. FOOD SERVICE Convenience stores Pizza Chains Fast Food Chains Hotels & Restaurants
SAN MIGUEL PURE FOODS COMPANY INC. IN MILLION PESOS 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
SAN MIGUEL YAMAMURA PACKAGING GROUP IN MILLION PESOS 2015 2014 CHANGE Net Sales 25,050 24,226 3% Income from Operations 2,344 2,305 2%
SMC GLOBAL POWER HOLDINGS CORP. 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 P O W E R P L A N T L I M AY 2 X 1 5 0 M W P O W E R P L A N T
Crude Prices, USD/bbl Differentials vs. Dubai, USD /bbl PETRON CORP. Regional Market Developments Prices 140 120 100 80 60 40 20 - Jun 14 Dubai $108 FY 14 Dubai: $96.66 Brent: $98.95 CRUDE PRICES Dec 14 Dubai $60 June Dubai $62 Dubai Brent Sept Dubai $45 FY15 Dubai: $50.84 Brent: $52.39 Dec Dubai $35 15 10 5 0 25 20 15 10 5 TAPIS CRUDE PRICE DIFFERENTIALS VS. DUBAI Jan Apr Jul Oct Jan Apr Jul Oct DIESEL GASOLI NE Jan Apr Jul Oct Jan Apr Jul Oct 2014 2015 10 0-10 -20-30 -40 95 85 75 65 55 45 35 25 15 5 NAPHTHA LPG 01 01 01 01 01 01 01 01 01 01 01 01 PETROCHEMICALS Jan Apr Jul Oct Jan Apr Jul Oct 2014 2015 2H2015 characterized by volatile crude prices Product Price Differentials over Dubai: with Dubai falling by $27/bbl since June Record high levels of Gasoline, - LPG and Naphtha Persistent oversupply due to sustained US Shale production Petrochemicals begin to recover - High OPEC production levels Pressure on Diesel persists Tapis, staple crude of Malaysia, corrects back to $3.88/bbl premium in 4Q from a low $1.84/bbl in 3Q
PETRON CORP. PH Domestic Market Developments INDUSTRY DEMAND - PH 595 520 445 370 295 220 145 70 20% 10% 0% In 000 barrels/day 392.0 306.0 322.0 341.0 FY 2012 FY 2013 FY2014 FY2015 DEMAND FOR MOTOR FUELS - PH Growth Rates (%) Gasoline Diesel LPG 15% 14% 11% 6% 4% 3% FY 2014 FY2015 FY 2014 FY2015 FY2014 FY2015 PH (Peso per USD) 60 50 44.6 47.2 40 30 20 10 0 Robust industry growth in 2015 Double digit growth rates for motor fuels -- Gasoline and Diesel; and LPG Weaker Asian currencies versus USD FOREIGN EXCHANGE 5.8% MY (Ringgit per USD) 3.6 19.4% 4.3 Jan-15 Dec-15 Jan-15 Dec-15 Source: Department of Energy.
PETRON CORP. Operating Performance SALES VOLUME PERFORMANCE ( 000 BARRELS/DAY) 250 225 200 175 150 125 100 75 50 25-120% 100% 80% 60% 40% 20% 0% PH 141.1 169.8 MY 96.5 98.8 FY2014 FY2015 FY2014 FY2015 ~50% BATAAN REFINERY UTILIZATION ~60% ~80% ~90% FY2013 FY2014 1H15 2H15 140 120 100 80 60 40 20 0 Surge in sales volumes - PH driven by robust growth in Retail; Industrial and LPG sales. - MY driven by strong gasoline retail growth Continuous ramp-up of RMP-2 Euro IV compliant products produced ahead of Jan 1, 2016 government mandate On-going Service Station Expansion 50+ 70 PH: ~ 2,200 stations Under Construction Built 15+ 19 MY: ~ 570 stations
PETRON CORP. IN MILLION PESOS 2015 2014 CHANGE Net Sales 360,178 482,535-25% Gross Margins 31,740 19,435 63% Rate 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%
SAN MIGUEL HOLDINGS CORP. - INFRASTRUCTURE IN MILLION PESOS 2015 2014 CHANGE Net Sales* 15,238 12,759 19% Income from Operations* Traffic Volume (no. of vehicles) SLEX SKYWAY STAGES 1 AND 2 STAR TOLLWAYS TPLEX 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% *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 N A I A E x p r e s s w a y S k y w a y S t a g e 3 B o r a c a y A i r p o r t
SMC FINANCIAL POSITION IN BILLION PESOS As of Dec 2015 As of Dec 2014 Total Assets 1,246 1,217 Cash 181 259 Interest-bearing Debt 515 483 Current Ratio 1.32x 1.50x Total Liabilities to Equity Ratio Interest-bearing Debt to Equity Ratio 2.24x 2.12x 1.34x 1.24x Net-Debt-to-EBITDA 2.61x 2.35x
THANK YOU Visit our websites: San Miguel Corporation San Miguel Brewery Inc. Ginebra San Miguel Inc. San Miguel Pure Foods Co. Inc. Petron Corporation 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