Alliance Global Group Inc. · PSE:AGI

Alliance Global — Q1 2020 Earnings Presentation

30 slides from Alliance Global's earnings presentation, July 2020

  1. Slide 1: 1Q2020 financial performance

    1Q2020 financial performance 1

  2. Slide 2: AGI 1Q2020 P&L highlights

    AGI 1Q2020 P&L highlights AGI P&L highlights P&L highlights of subsidiaries In Pbn In Pbn Revenue share* 1Q19 1Q20 18% MEG EMP RWM GADC MEG 40% 41.1 15.1 14% EMP 38.0 RWM GADC 10.6 28% 6.8 5.4 3.5 Attributable profit share* 1.5 -14% 2% 6.5 0.1 4.0 4.4 3.0 38% MEG EMP -1.0 RWM Profit Profit Revenue P

  3. Slide 3: AGI 1Q2020 financial performance

    AGI 1Q2020 financial performance in Pbn 1Q20 1Q19 % chg Comments Group revenues 38.03 41.05 -7% Megaworld 14.98 14.85 1% Growth in rentals mitigated slowdown in resi, mall and hotel activities Emperador 10.61 11.03 -4% Higher brandy sales cushioned drop in whisky sales. Travellers 5.40 6.91 -22% Hal

  4. Slide 4: Group investment commitment

    Group investment commitment AGI’s capex by major subsidiary In Pbn 71 70 2 2 63 • Capex spent in 1Q20: 11 15 2 15bn. 11 9 2 42 2 1 4 • 2020 target capex 49 51 48 17 15 reduced to P42bn 36 0 2 2 0 (from original P79bn) 13 11 as Group shifts to 2017 2018 2019 2020E 1Q19 1Q20 cash preservation MEG EMP

  5. Slide 5: Group borrowings

    Group borrowings GROSS DEBTS, by key subsidiary AGI GEARING 0.48x 0.49x 0.47x 209 208 198 0.42x 181 36 35 37 0 1 0.35x 144 35 1 1 60 59 45 118 30 31 20 2 2 22 38 39 37 34 14 0.17x 29 29 75 76 76 79 53 61 38.9 87.1 113.9 138.9 145.3 142.3 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 ME

  6. Slide 6: Group gearing

    Group gearing MEG EMP RWM GADC PARENT 0.36x 0.54x 1.24x 1.24x 0.07x 0.07x (0.2) 0.48x 0.31x 0.46x (1.2) (3.8) (4.9) (5.2) (3.6) 0.31x 0.41x -0.03x 0.06x 0.37x 0.05x 0.26x 0.26x 0.77x 0.22x -0.19x 0.54x 0.03x 0.26x 0.03x 0.00x 0.05x -0.45x -0.52x -0.57x 29.8 44.8 58.5 58.2 52.8 53.1 0.0 19.2 28.0 33.

  7. Slide 7: Megaworld Corporation 1Q2020 performance highlights

    26 Townships & ILCs 4,688 Landbank (has) 3,637 Hotel room keys 1,312 Offices GLA (‘000) MEGAWORLD CORPORATION 1Q2020 PERFORMANCE HIGHLIGHTS 721 Lifestyle malls GFA (‘000) 7

  8. Slide 8: MEG: 1Q2020 financial performance

    MEG: 1Q2020 financial performance P&L summary (Pbn) 1Q20 1Q19 YoY chg Comments Revenue 15.08 14.91 1% Improving share of rental income Residential 9.61 9.47 1% Construction delays and Taal Volcano eruption Office 2.80 2.43 15% Steady office occupancy rates despite the pandemic Malls 1.43 1.50 -4% Li

  9. Slide 9: MEG: Quarterly operational performance

    MEG: Quarterly operational performance REVENUE EBITDA EBIT 8.3 7.6 17.0 7.5 7.3 0.2 6.7 6.9 0.2 15.6 15.4 0.7 7.0 6.8 6.4 14.4 0.2 0.1 0.1 6.1 14.0 0.7 0.6 0.1 0.1 0.6 0.1 0.1 0.6 4.4 0.1 4.3 3.6 4.2 4.3 3.9 4.2 4.0 4.0 3.5 3.5 3.7 3.2 3.9 3.3 11.9 10.7 10.6 9.5 9.6 3.9 3.9 3.3 3.2 3.2 3.4 3.1 3.2 2

  10. Slide 10: MEG: Quarterly operational performance

    MEG: Quarterly operational performance REAL ESTATE SALES RENTAL HOTEL vs GROSS PROFIT vs EBITDA vs EBITDA 94% 25% 25% 30% 46% 45% 45% 45% 88% 87% 88% 87% 21% 21% 44% 710 12 4.4 672 4.2 4.3 4.2 11 11 3.9 574 587 9 10 551 4.3 4.0 4.0 3.9 5.4 3.7 4.7 4.8 4.4 4.3 202 142 150 149 116 Q119 Q219 Q319 Q419

  11. Slide 11: Travellers International Hotel Group 1Q2020 performance highlights

    2,527 Hotel room keys 6 International Hotel Brands 61% Hotel occupancy 363 VIP and mass gaming tables TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. 100 1Q2020 PERFORMANCE HIGHLIGHTS Electronic Machines 11

  12. Slide 12: RWM: 1Q2020 financial performance

    RWM: 1Q2020 financial performance P&L summary (Pbn) 1Q20 1Q19 YoY chg Comments Total net revenues 5.38 6.90 -22% Gross gaming revenue 5.55 6.90 -19% Mass 3.17 3.58 -11% Better hold rate but volume growth lower due to ECQ VIP 2.38 3.32 -28% Lower hold rate and rolling volume due to ECQ and travel ban

  13. Slide 13: RWM: Quarterly operational performance

    RWM: Quarterly operational performance AVERAGE DAILY GROSS REVENUES GGR: MASS vs VIP VISITORS 7.3 41 8.5 8.9 8.9 6.9 6.6 6.8 38 8.1 35 36 1.6 2.1 1.6 1.4 6.9 2.9 5.6 3.3 2.9 2.6 28 1.3 2.4 6.9 7.3 6.8 6.6 5.6 4.4 4.2 3.6 3.8 3.2 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q

  14. Slide 14: Hotel Segment 1Q2020 performance highlights

    HOTEL SEGMENT 1Q2020 PERFORMANCE HIGHLIGHTS 14

  15. Slide 15: AGI: combined hospitality business 3,637 room keys

    AGI: combined hospitality business 3,637 room keys Hotel Revenues Pbn 7.5 +23% CAGR 5.0 4.2 3.3 3.8 14% 1.8 1.6 2015 2016 2017 2018 2019 1Q19 1Q20 15

  16. Slide 16: Emperador Inc. 1Q2020 performance highlights

    1,513 Vineyards in Spain (has) 105 Countries under global distribution system 55 countries where EDI brands are exported 25 EMPERADOR INC. domestic sales 1Q2020 PERFORMANCE HIGHLIGHTS offices 16

  17. Slide 17: EMP: 1Q2020 financial performance

    EMP: 1Q2020 financial performance P&L summary (Pbn) 1Q20 1Q19 YoY chg Comments Revenue* 10.66 11.03 -3% Brandy 7.58 7.69 -1% Initial strong sales capped by liquor ban during ECQ Whisky 3.08 3.34 -8% High 1Q19 base; weaker 1Q20 sales due to travel ban, FX translation Gross Profit 3.41 3.69 -8% Brandy

  18. Slide 18: EMP: Quarterly operational performance

    EMP: Quarterly operational performance REVENUE ATTRIBUTABLE PROFIT 17.7 2.0 1.7 1.7 4.2 0.6 1.5 12.4 0.4 1.4 11.0 10.7 0.7 10.4 0.3 3.6 0.3 3.3 2.8 3.1 13.5 1.4 1.3 1.1 1.2 1.1 7.7 8.7 7.7 7.6 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 * Q120 Brandy Whisky Brandy Whisky *Excludes non-recurring exp

  19. Slide 19: EMP: Quarterly operational performance

    EMP: Quarterly operational performance WHISKY REVENUE, BRANDY REVENUE, GROSS PROFIT, MARGIN GROSS PROFIT, MARGIN 45% 35% 42% 33% 32% 40% 30% 34% 34% 26% 13.5 4.2 3.6 3.3 3.1 8.7 2.8 7.7 7.7 7.6 1.6 1.4 1.4 1.1 1.0 3.2 3.4 2.3 2.5 2.4 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 Whisky revenues

  20. Slide 20: Golden Arches Development Corporation 1Q2020 performance highlights

    669 GOLDEN ARCHES Store DEVELOPMENT CORPORATION count 395 McDelivery hubs 326 Stores with Drive-thru -14.4% GOLDEN ARCHES DEVELOPMENT CORPORATION Same store sales growth 1Q2020 PERFORMANCE HIGHLIGHTS 20

  21. Slide 21: GADC: 1Q2020 financial performance

    GADC: 1Q2020 financial performance P&L summary (Pm) 1Q20 1Q19 YoY chg Comments -8% systemwide sales amid temporary store closures due Sales Revenues 6,753 7,457 -9% to Taal volcano eruption and ECQ Sales by co. restos 6,093 6,724 -9% Sharp drop in SSSG: -14.4% (vs 4.8% in 1Q19) Rent, royalty & other

  22. Slide 22: GADC: Quarterly operational performance

    GADC: Quarterly operational performance SALES, SYSTEMWIDE SAME- STORE GEOGRAPHIC GROSS PROFIT, MARGIN STORE SALES GROWTH DISTRIBUTION 34% 7.0% 6.2% 669 4.8% 5.1% 669 21% 21% 22% 20% 620 55 53 5.5% 6.0% 5.8% 566 4.8% 520 51 70 70 8.9 45 64 8.0 40 56 Q119 Q219 Q319 Q419 Q120 7.5 7.7 48 6.8 284 285 249

  23. Slide 23: Infracorp

    INFRACORP AN ALLIANCE GLOBAL COMPANY 23

  24. Slide 24: Foray into infrastructure

    Foray into infrastructure Fort Bonifacio-Makati Skytrain NAIA upgrade Oct 2017 Feb 2018 Submission of Submission of unsolicited proposal unsolicited proposal May 2018 May 2018 DOTr grant of Original Proponent Status DOTr grant of Original Proponent Status Sep 2019 NEDA ICC approval On-going NEDA eva

  25. Slide 25: Initiatives

    Al GCE GLOBAL. in pet YA ALLIANCE GLOBAL Initiatives

  26. Slide 26: MEG: Initiatives amid the pandemic

    MEG: Initiatives amid the pandemic Payment channels Faves on the Safety Company available Go Protocols efforts Payment methods Faves on the Go allows • Additional state-of-the- • Rapid Antibody Testing available for the unit shoppers or diners to art sanitation and on-site available for owners of ME

  27. Slide 27: RWM: Initiatives amid the pandemic

    RWM: Initiatives amid the pandemic Spacious gaming Safety Company facilities Protocols efforts Resort World Manila’s The Grand Wing and the • Additional state-of-the-art • Ride With Me carpooling signature restaurants Garden Wing will ensure sanitation and disinfection program for employees are acce

  28. Slide 28: GADC: Initiatives amid the pandemic

    GADC: Initiatives amid the pandemic Take-out and Drive- thru services. Available in select McDelivery is now No-Touch stores for your safety. McDo favorites can now be cooked at home. This We are making include Chicken cuts sure that and other frozen food McDelivery packs. is clean and safe. We are

  29. Slide 29: Key Takeaways

    Key Takeaways Huge and valuable land bank: 4,300 hectares of developable land in the Philippines; 1,500 hectares of vineyards in Spain; 13 hectares (cased goods warehouse) in Scotland. Highly valuable inventory of aged whisky stocks: ensures long -term profitability for the whisky segment. Leadershi

  30. Slide 30: End of presentation

    1Q2020 financial performance End of presentation 30

Alliance Global Group — Q1 2020 Earnings Presentation on 6ix