Slide 1: Investors Presentation: 2016 Financials Results
Investors Presentation January 2016 EMPERADOR INC. 2016 Financials Results
Slide 2: Our Financials, Recent Developments, Key Takeaways
1 Our Financials 2 Ke Recent Developments 3 Key Takeaways
Slide 3: 2016 Financial Highlights
Our Financials 2016 Financial Highlights PHP41b Net Income Consolidated Margin Revenues 19% Revenue Breakdown Bodegas Fundador 4% PHP7.7b Net Income Growth WMG 28% Consolidated EDI 68% Net Income 11% * Note: Revenue Breakdown chart, EDI – Emperador Distillers, Inc.; WMG – Whyte and Mackay Group 3
Slide 4: 2016 Performance Update
Our Financials 2016 Performance Update 4Q16 YoY 2015 2016 YoY Commentary Up 5% in 4Q16 and 6% in Revenues (PHPm) 13,137 -9.6% 43,645 41,018 -6.0% 2016 ex Russian Standard vodka Gross profit (PHPm) 5,749 34.4% 13,679 15,023 9.8% 28% margin for WMG, 40% margin for EMP ex WMG Gross profit margin (%) 43
Slide 5: Latest Financial Performance
Our Financials Latest Financial Performance Revenues (PHPm) Gross profit & margin 43,645 41,018 43.4% 37.1% 6.0% 29.7% 31.6% 9.6% 13,679 15,023 9.8% 14,528 13,137 34.4% 4,277 5,749 4Q15 4Q16 2015 2016 4Q15 4Q16 2015 2016 EBITDA & margin Net income & margin 29.3% 21.1% 26.9% 18.8% 22.0% 15.5% 15.9% 1
Slide 6: Financial History
Our Financials Financial History Revenues* (PHPm) Gross profit* & margin 35% 36% 35% 37% 30% 32% 32% 43,645 CAGR 41,018 26% 29,865 32,009 13,679 15,023 23,594 32% 10,903 17,355 CAGR 8,210 9,225 4,445 8,456 2817 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Revenues EBITDA & m
Slide 7: Segment Breakdown
Our Financials Segment Breakdown Revenues Gross Profit EBITDA Net Income In PHP millions 2015 2016 2015 2016 2015 2016 2015 2016 EMP (ex WMG) 27,120 30,025 10,423 11,884 8,547 9,790 5,856 6,646 WMG 16,525 11,469 3,255 3,138 1,062 1,232 1,104 1,047 EMP 43,645 41,018* 13,679 15,023 9,609 11,023 6,960
Slide 8: Robust Capital Position
Our Financials Robust Capital Position Solid Capital Position Net Debt to (PHPm) Cash Debt Net Debt Commentary Equity Use of cash to fund acquisitions, 2016 10,174 29,363 19,189 37% debt repayment, dividend payment 10,174 24,100 13,926 27% Ex Equity-linked security Additional debt to purchase 2015 2
Slide 9: Recent Developments
1 Our Financials 2 Recent Developments 3Ke Key Takeaways
Slide 10: US Launch of Emperador Brandy
Recent Developments US Launch of Emperador Brandy G.K. Skaggs announced the addition of Emperador Brandy and Emperador Light throughout the United States. Imported from Emperador Distillers Inc. in the Philippines, Emperador Brandy is 40 percent alcohol by volume and offers the fruity aroma of grape
Slide 11: Dalmore Flagship Store
Recent Developments Dalmore Flagship Store 84 vaults are available in the Dalmore Keeper’s Den - a private lounge where VIPs can deposit their bottle and enjoy a dram upon reservation. An exclusive release of The Dalmore collection being featured at the flagship is the Constellation Collection, whic
Slide 12: Fortifying Brandy Dominance
Recent Developments Fortifying Brandy Dominance “Bunso” 350ml 750ml 1l 1l 1l USD0.84-0.96/ USD1.65-1.90/ USD2.25-2.60/ USD4.28-4.90/ USD6.17-7.05/ PHP42-48 PHP83-95 PHP 113-130 PHP215-246 PHP310-354 12
Slide 13: Building The Whisky Segment
Recent Developments Building The Whisky Segment Launched late last year 330ml USD0.52-0.60/ PHP26.25-30 13
Slide 14: Building Philippine Whisky Segment
Recent Developments Building Philippine Whisky Segment 14
Slide 15: Purchase of Assets (30 March 2017)
Recent Developments Purchase of Assets (30 March 2017) q Buyer: Bodegas Las Copas (BLC), S.L., a 50/50 joint venture company of Grupo Emperador Spain and Gonzales Byass q Seller: Pernod Ricard q Assets bought: the Domecq and Pedro Domecq brands, including the brands Presidente, Don Pedro and Azteca
Slide 16: Key Takeaways
1 Our Financials 2 Recent Developments 3 Key Takeaways
Slide 17: Dominance, Premiumization, Profitability
Key Takeaways Dominance, Premiumization, Profitability Future-proofing dominance Premiumization Profitability We want to We are best We want margin secure our positioned to do sustainability dominance in premiumization and stability. Philippine liquor in the Philippines. while making a dent on globa
Slide 18: End of Presentation
END OF PRESENTATION