Slide 1: Emperador Inc. Full Year 2018 Financial Results
EMPERADOR INC. F U L L Y E A R 2 0 1 8 F I N A N C I A L R E S U LT S 1
Slide 2: Full Year 2018 Financial Results Agenda
FULL YEAR 2018 Financial Results 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 2
Slide 3: 2018 Financial Highlights
OUR FINANCIALS 2018ᵁ Financial Highlights Php47.1b 9.7b 28% Php6.7b 1.6b WHISKY CONSOLIDATED CONSOLIDATED REVENUES BRANDY NET INCOME* 72% 14.2% 17% 11% 5.3% NET INCOME REVENUE NET INCOME MARGIN* BREAKDOWN GROWTH* *Attributable to parent 3 * 2018 numbers are unaudited
Slide 4: Key Figures
OUR FINANCIALS Key Figures 4Q18 YoY FY17 FY18ᵁ YOY Commentary Record-breaking revenues in REVENUES (PHPm) 16,503 9.3% 42,656 47,050 10.3% 2018, Php47b, driven by brandy and whisky sales GROSS PROFIT (PHPm) 5,422 -12.3% 14,942 16,041 7.4% Full-year margin above 30% GROSS PROFIT despite cost pressure
Slide 5: Key Figures
OUR FINANCIALS Key Figures Revenues (PHPm) Gross profit & margin 40.6% 34.6% 47,050 32.8% 35.4% 42,656 10% 14,942 16,041 7% 16,503 9% 15,095 6,181 5,422 -12% 4Q17 4Q18 FY17 FY18 4Q17 4Q18 FY17 FY18 EBITDA & margin Net income & margin* 21.6% 17.5% 22.5% 22.0% 12.4% 14.8% 14.2% 9.2% 10,329 6,322 6,658
Slide 6: Financial History
OUR FINANCIALS Financial History Revenues (PHPm) Gross profit & margin 35% 34% 38% 35% 35% 15% 43,645 42,656 47,050 31% 31% CAGR 41,018 26% 15,306 14,942 16,041 29,865 32,009 13,679 19% 10,903 17,355 23,594 CAGR 8,210 9,225 4,445 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016
Slide 7: Segment Breakdown
OUR FINANCIALS Segment Breakdown Revenues Gross Profit EBITDA Net Income (PHPm) FY17 FY18ᵁ FY17 FY18ᵁ FY17 FY18ᵁ FY17 FY18ᵁ Brandy 31,174 34,447 10,852 10,730 7,988 7,867 5,012 5,017 Whisky 12,571 13,527 4,090 5,311 1,617 2,462 1,320 1,812 EMP Inc. 42,656 47,050 14,942 16,041 9,605 10,329 6,332 6,82
Slide 8: Leverage
OUR FINANCIALS Leverage Cash Debt Net Debt Net Debt to Equity Commentary (PHPm) Lower cash partly due to share 6,228 39,274 31,837 52% buyback 2018ᵁ 6,228 34,015 26,578 43% Ex Equity-linked security Additional borrowings to fund 2017 10,162 38,150 27,968 48% investments 8 * 2018 numbers are unaudite
Slide 9: Full Year 2018 Financial Results Agenda
FULL YEAR 2018 Financial Results 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 9
Slide 10: Whyte and Mackay Revenue Mix
WHYTE AND MACKAY Revenue Mix 10% 14% 11% 8% 30% 13% 12% 22% 18% 17% 77% 77% 70% 67% 53% 2011-2014 2015 2016 2017 2018 Branded Business Private Label Bulk 10
Slide 11: Branded Business Breakdown By Market
WHYTE AND MACKAY Branded Business Breakdown By Market 11% 12% 18% 20% 21% 9% 9% 2% 4% 14% 16% 11% 7% 12% 23% 78% 76% 61% 53% 45% 2014 2015 2016 2017 2018 EMEA Asia & Pacific Americas Travel Retail 11
Slide 12: Whyte and Mackay Gross Profit Margin
WHYTE AND MACKAY Gross Profit Margin 39.7% 32.7% 30.1% 18.1% 19.7% 2014 2015 2016 2017 2018 12
Slide 13: Strategy: Focus on Malts
WHYTE AND MACKAY Strategy Focus on Malts 5 years ago To d a y Vision 13 13
Slide 14: Malt Hierarchy
WHYTE AND MACKAY Malt Hierarchy c.Php1,250 c.Php1,700 c.Php1,900 c.Php2,500 c.Php3,580 14
Slide 15: Brandy Premiumization
BRANDY Premiumization • A super-premium Brandy • Introduced through the Travel Retail channel in Europe and Asia, and is now available in the Philippines. Php12,800 15 15
Slide 16: Brandy Hierarchy
BRANDY Brandy Hierarchy c. Php120 c. Php260 c. Php350 TVC 16
Slide 17: Share Buyback
SHARE BUYBACK Announcement of As of April 2, 2019 259 m shares @ P7.17 Share Buyback 2019 1.8m shares @ P7.25 2017 45m shares @ P7.09 2018 212m shares @ P7.19 8.74 8.25 7.75 7.24 7.00 6.92 6.60 01 01 02 03 03 04 05 05 06 07 08 08 09 10 10 11 12 12 01 02 02 03 04 05 05 06 07 07 08 09 09 10 11 11 12 0
Slide 18: Key Takeaways
FULL YEAR 2018 K e y Ta k e a w a y s 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 18
Slide 19: Future-proofing, Premiumization and Profitability
KEY TAKEAWAYS Future-proofing, Premiumization and Profitability Future-proofing Premiumization Profitability dominance We want to secure our We are best positioned We want margin dominance in to do premiumization sustainability and Philippine liquor while in the Philippines. stability. making a dent
Slide 20: Emperador Inc. Glayva
EMPERADOR INC. GLAYVA 20