Philippine Seven (SEVN) investor relations material

Leadership and organizational updates

• Leadership transition completed in July 2025, with Richard Lee as President and Victor Paterno as Chairman.

• Recognized globally for leadership and operational excellence, with awards for same-store sales growth.

• Majority ownership remains with President Chain Store, with significant foreign and family holdings.

Expansion and market development

• Store count reached 4,650 by mid-2026, with a target of over 5,000 by year-end and 500+ new stores planned.

• Expansion focuses on underserved regions, especially Visayas and Mindanao, supported by 28 distribution centers.

• CapEx budget for 2026 is PHP 5.5 billion, mainly funded internally, with 80% allocated to new stores.

• Permitting and utility connections are key bottlenecks for new store openings.

Financial performance and capital management

• Systemwide sales grew 16% in Q2 2026 to PHP 29.7 billion; operating revenue up 15% to PHP 28.6 billion.

• Net income rose 3.3% in Q2 to PHP 1.22 billion; operating income up 7.6% to PHP 1.89 billion.

• Gross profit for H1 2026 reached PHP 18.42 billion, with net income at PHP 1.84 billion, up 3.8% year-on-year.

• Free cash flow turned negative due to CapEx surge and inventory forward buying; cash balance at PHP 7.19 billion.

• Dividend payout ratio maintained at 40%-50% of prior year net income.