Slide 1: Full Year CY2020 Audited Results Investor Briefing
Full Year CY2020 Audited Results Investor Briefing Irwin C. Lee Mike P. Liwanag President and CEO Senior Vice President 1
Slide 2: Our Agenda
Investor Presentation: Full Year CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) Full Year CY2020 Audited Financial Results 3.) Updates 2
Slide 3: Our Agenda
Investor Presentation: Full Year CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) Full Year CY2020 Audited Financial Results 3.) Updates 3
Slide 4: COVID-19 Market Landscape: pandemic impacted all markets
COVID-19 Market Landscape The pandemic broadly impacted all the markets we compete in Investor Presentation: Full Year CY2020 Business Results 4 Sources: Nikkei, NHK, BBC, Reuters 4
Slide 5: Lockdowns hounded the Philippines in H1
COVID-19 Market Landscape Lockdowns hounded the Philippines in H1, putting the economy in bad shape in 2020 Notable PH events in 2020 Investor Presentation: Full Year CY2020 Business Results WHO reported clustering ECQ in Metro Metro Manila First day of classes Partially allows pneumonia cases in Wu
Slide 6: COVID-19 Market Landscape: FMCG channels and categories
COVID-19 Market Landscape Total FMCG less CG Value Growth 13.3 9.9 Channels & Categories - PH Investor Presentation: Full Year CY2020 Business Results 9.1 6.6 3.5 0.5 1.6 Total FMCG Supermarket Grocery/CV Sari-Sari Store Market Stalls Drugstores -4.3 -3.8 -6.5 -8.9 -11.4 -12.5 -11.6 ▪ Sales declined
Slide 7: Our Agenda
Investor Presentation: Full Year CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) Full Year CY2020 Audited Financial Results 3.) Updates 7
Slide 8: URC: Profits continue strong growth, sales hold
URC Profits continue strong growth. 134.2 133.1 Sales hold despite market decline. Investor Presentation: Full Year CY2020 Business Results Series 1 SALES 1% 5 4.5 • 4 Flattish sales, with share gains offsetting 3.5 market declines and deterioration in consumer 2019 2020 sentiment. 3 2.5 • 2 Better
Slide 9: BCF Philippines: Sustained profit growth
BCF | PHILIPPINES Sustained profit growth despite weak consumer 61.5 61.2 sentiment Investor Presentation: Full Year CY2020 Business Results 15.7 15.7 15.2 14.7 Q1 SALES -- SALES 5 15.2 15.5 15.5 15.3 4.5 • Retail trade4and market slowdown across categories post COVID-19 lockdown peak 3.5 • Sales fl
Slide 10: BCF Philippines: URC performs ahead of market and gains shares
BCF | PHILIPPINES URC performs ahead of market and gains shares ResultsResults Business Category YTD URC YTD 2019 YTD Market 2020 YTD Market Business Growth Growth Share Share Year CY2020 (Nielsen) (Net Sales Value) (Nielsen) (Nielsen) FullCY2020 Snacks -10% +3% 35.6% 38.4% Biscuits -14% +3% 16.1% 1
Slide 11: BCF International: Decline abates as Oceania grows
BCF | INTERNATIONAL Decline abates as Oceania continues to grow 43.6 while Vietnam recovers 41.2 Investor Presentation: Full Year CY2020 Business Results 9.7 9.3 11.0 11.2 Q1 10.5 10.4 11.2 SALES 5%11.4 5 SALES 4.5 • Sales flat in constant currency. FX negative impact by +19% +5% +3% +3% 4 5 growth
Slide 12: AIC: Strong performance in Sugar & Renewables offsets Farms
AIC Strong performance in Sugar & Renewables 7% 27.8 29.6 offsets Farms Investor Presentation: Full Year CY2020 Business Results 14.6 17.7 +21% Q1 BUSINESS UNIT PERFROMANCE SALES 5 Commodity Foods Group (CFG) SALES 4.5 13.1 11.9 -10% SURE +33% 4 • Topline driven by higher volumes in Sugar 2019 2020
Slide 13: Balance Sheet & Cash Flows
Balance Sheet & Cash Flows Cash and Financial Debt* Strong Balance Sheet and Cash Investor Presentation: Full Year CY2020 Business Results Position 43.0 41.5 21.0 19.4 Q1 5 • Php 18.9B cash balance – very healthy 2019 2020 4.5 and above historical levels 4 Cash + Financial Assets at FVPL + AFS Finan
Slide 14: Our Agenda
Investor Presentation: Full Year CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) Full Year CY2020 Audited Financial Results 3.) Updates 14
Slide 15: How to Win Strategic Thrusts
How to Win Strategic Thrusts Investor Presentation: Full Year CY2020 Business Results Products and Brands People and Planet People Love Friendly Culture IPM 2020/21 People Productivity, New Workplace New Consumer Trends Accelerate Digital Brands with Purpose Quality, Safety, Sustainability Preferred
Slide 16: Products and Brands People Love
Products and Brands People Love Brands with Purpose, New Consumer Trends, Insight to Action, Protect the Core Investor Presentation: Full Year CY2020 Business Results AFFORDABLE HEALTH VALUE IN HOME INDULGENCE 16 16
Slide 17: Preferred Partner of Choice: Product Supply Chain Transformation
Preferred Partner of Choice Product Supply Chain Transformation Investor Presentation: Full Year CY2020 Business Results #7 of 34 in 2020 from #13 of 36 in 2019 Order Fill Rate Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 Jul' 20 Aug '20 Sep '20 Oct '20 Nov '20 NCC Excellence for Continuous Impro
Slide 18: People and Planet Friendly Culture
People and Planet Friendly Culture Investor Presentation: Full Year CY2020 Business Results People productivity, new workplace Purpose, Values and Ambition (PVA) People Quiet Zones Digitally Enabled Space 18 18
Slide 19: Strategic Thrust: People and Planet Friendly Culture
Strategic Thrust: People and Planet Friendly Culture We continue to improve on our sustainability commitments OUR PEOPLE OUR COMMUNITIES Investor Presentation: Full Year CY2020 Business Results GROWTH IN TALENT SAFETY EDUCATION NUTRITION ENVIRONMENT Lost Time Average Injury -26% 23 training hours Fr
Slide 20: Thank You
Investor Presentation: Full Year CY2020 Business Results THANK YOU 20 20
Slide 21: Income Statement
Income Statement 2020 2019 YoY (Php Millions) (Audited) (Audited) Investor Presentation: Full Year CY2020 Business Results NET SALES 133,140 134,175 -1% Cost of Sales 92,082 93,862 -2% GROSS PROFIT 41,058 40,313 2% Operating Expense -25,011 -25,301 -1% • Increase in net income OPERATING INCOME 16,04
Slide 22: Balance Sheet
Balance Sheet 2020 2019 (Php Millions) (Audited) (Audited) Investor Presentation: Full Year CY2020 Business Results Cash & cash equivalents 19,367 20,975 (including Financial assets at FVPL and FVOCI) Other current assets 46,271 43,945 Property, plant, and equipment 58,990 54,626 Other noncurrent as
Slide 23: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN Investor Presentation: Full Year CY2020 Business Results (Php Millions) 2020 2019 YoY 2020 2019 YoY 2020 2019 bps Branded Consumer Foods 103,566 106,413 -3% 12,360 12,073 2% 11.9% 11.3% 59 Total Philippines 62,358 62,859 -1% 8,262 7,734 7% 13.3% 12.3% 95
Slide 24: Market Shares
Market Shares Philippines Thailand Investor Presentation: Full Year CY2020 Business Results MARKET CATEGORY MARKET SHARE #1 #2 #3 CATEGORY #1 #2 #3 SHARE Biscuits (new) 18.2% URC 13.8% 8.1% Snacks 38.4% URC 21.5% 4.3% Biscuits (old) 22.5% URC 10.2% 6.3% Candies 27.4% URC 12.7% 10.7% Wafers 22.4% URC