Emperador Inc. · PSE:EMI
Emperador — H1 2018 Earnings Presentation
21 slides from Emperador's earnings presentation, 2018
Slide 1: Emperador Inc. 1H 2018 Financial Results
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Slide 2: 1H2018 Financial Results agenda
1H2018 Financial Results 1. OUR FINANCIALS 2. RECENT DEVELOPMENTS 3. KEY TAKEAWAYS 2
Slide 3: Financial Highlights
OUR FINANCIALS Financial Highlights 19.5b P 9.7b P 3.2b 1.6b 31% CONSOLIDATED WHISKY CONSOLIDATED REVENUES NET INCOME* BRANDY 69% 16.4% 17% 18.3% 11% REVENUE NET INCOME BREAKDOWN NET INCOME MARGIN* GROWTH* 3 *Attributable to parent
Slide 4: Key Figures
OUR FINANCIALS Key Figures 2Q18 YoY 1H17 1H18 YOY Commentary Both brandy and whisky REVENUES grew; brandy growth driven 9,760 7% 18,093 19,504 8% mostly by foreign brands; (PHPm) higher growth for whisky GROSS PROFIT GPM of both brandy and 3,615 25% 5,941 6,866 16% (PHPm) whisky at 35sh; 2Q18 saw GR
Slide 5: Key Figures
OUR FINANCIALS Key Figures Revenues (PHPm) Gross profit & margin 36.8% 35.8% 18,093 19,504 33.4% 32.8% 8% 6,866 7% 5,941 9,114 9,760 16% 2,894 3,615 25% 2Q17 2Q18 1H17 1H18 2Q17 2Q18 1H17 1H18 EBITDA & margin Net income & margin 22.7% 23.7% 16.4% 16.4% 22.4% 14.9% 20.9% 13.2% 4,626 3,190 4,051 2,698
Slide 6: Financial History
OUR FINANCIALS FINANCIAL HISTORY Revenues (PHPm) Gross profit & margin 35% 34% 37% 35% 16% 43,645 41,018 42,656 31% 31% CAGR 26% 32,009 15,023 14,621 29,865 13,679 23,594 22% 10,903 17,355 CAGR 8,210 9,225 4,445 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 EBITDA & margin Ne
Slide 7: Segment Breakdown
OUR FINANCIALS SEGMENT BREAKDOWN GROSS NET in PHP REVENUES EBITDA PROFIT INCOME millions 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 BRANDY 13,074 13,580 4,467 4,705 3,457 3,569 2,194 2,373 WHISKY 5,318 6,180 1,474 2,161 594 1,058 504 890 EMP Inc. 18,093 19,504 5,941 6,866 4,051 4,627 2,698 3,263 • Net
Slide 8: Leverage and Cash Flow
OUR FINANCIALS Leverage and Cash Flow Net Debt to (PHPm) Cash Debt Net Debt Commentary Equity Cash dividend 6,893 39,809 32,916 54% payment; share buyback 1H18 Ex Equity-linked 6,893 34,628 27,734 45% security Additional borrowings 2017 10,162 38,150 27,987 48% to fund investments Cash Position (PHP
Slide 9: 1H2018 Financial Results agenda
1H2018 Financial Results 1. OUR FINANCIALS 2. RECENT DEVELOPMENTS 3. KEY TAKEAWAYS 9
Slide 10: Recent Developments: The Dalmore
RECENT DEVELOPMENTS THE DALMORE DALMORE 50 YEAR OLD YEAR LAUNCHED: 2017 PRICE: £50,000 DALMORE 40 YEAR OLD DALMORE 45 YEAR OLD YEAR LAUNCHED: 2017 YEAR LAUNCHED: 2018 PRICE: £6,000 / $7,500 PRICE: £10,000 10
Slide 11: Flagship visibility at key airports
RECENT DEVELOPMENTS THE DALMORE Flagship visibility at key airports 11
Slide 12: Enhanced presence in luxury bars
RECENT DEVELOPMENTS THE DALMORE Enhanced presence in luxury bars 12
Slide 13: Recent Developments: airport displays
vik ne Frankfurt & Edinburgh are the first airports to display the new range with strong stand out on shelf — e 1 } 4 i
Slide 14: Stronger distribution and depth of presence in US retail
RECENT DEVELOPMENTS JURA Stronger distribution and depth of presence in US retail making it the fastest growing island malt in the US 14
Slide 15: Shackleton
RECENT DEVELOPMENTS SHACKLETON 15
Slide 16: Successful off-trade listings
RECENT DEVELOPMENTS SHACKLETON Successful off-trade listings x20 stores & online X143 stores x305 stores x425 stores from 22nd Nov 16
Slide 17: Active travel retail visibility – Heinemann
RECENT DEVELOPMENTS SHACKLETON Active travel retail visibility – Heinemann (Sydney, Stuttgart & Amsterdam) 17
Slide 18: Fastest growing blended malt in the US
RECENT DEVELOPMENTS SHACKLETON Fastest growing blended malt in the US (IWSR, 2018) with distribution mirroring Dalmore 12 in less than a year 18
Slide 19: 1H2018 Financial Results agenda
1H2018 Financial Results 1. OUR FINANCIALS 2. RECENT DEVELOPMENTS 3. KEY TAKEAWAYS 19
Slide 20: Key Takeaways
KEY TAKEAWAYS Future-proofing Premiumization Profitability dominance We want to secure We are best We want margin our dominance in positioned to do sustainability and Philippine liquor premiumization in stability. while making a the Philippines. dent on global liquor. 20
Slide 21: End of Presentation
roe Loves End of Presentation EMPERADOR