Alliance Global Group Inc. · PSE:AGI
Alliance Global — 9M2016 Earnings Presentation
36 slides from Alliance Global's earnings presentation, Nov 14, 2016
Slide 1: Alliance Global Group Inc 9M2016 Analyst Presentation
ALLIANCE GLOBAL GROUP INC 9M2016 Analyst Presentation 14 November 2016
Slide 2: Key messages
• Strong 3Q2016 performance helped largely by improved operating efficiencies; topline growth steady. • Some growth initiatives have already begun to bear fruit. • Capex program remains heavy, funding through internal sources and some borrowings. • Financial gearing still comfortable. • Healthy bala
Slide 3: AGI Group Structure
AGI Group Structure A NULIANCE GLOBAL VA ALLIANCE GLOBAL AGI PM (US$ 2.7bn) 67% 81% 44% 49% TRAVELLERS es MEGAWORLD EMPERADOR INC. INTERNATIONAL GOLDEN ARCHES DEVELOPMENT CORPORATION MEG PM EMP PM RWM PM (USS 2.6bn) (USS 2.4bn) (USS 1.0bn) Number 1 in 7 Most profitable Number 2 townships Number 1 in
Slide 4: Alliance Global Group Inc. 9M2016 performance highlights
Alliance Global Group Inc. 9M2016 performance highlights
Slide 5: Group key figures
P139bn in consolidated revenues (2015) P467bn in total resources (Sep2016) P136bn in fixed assets (Sep2016) 0.04x Parent net debt/equity (Sep2016) 2,570 Hotel room keys (2015)
Slide 6: P&L highlights 3Q2016 vs 3Q2015
P&L highlights (Pbn) 3Q2016 3Q2015 % chg Comments Group revenues 34.49 34.17 1% Megaworld 12.18 11.49 6% Sustained rise in rentals; modest growth in residential sales Emperador 9.26 10.80 -14% Lower WMG sales due to RSV exit; incremental sales from Fundador cushioned weaker EMP sales. Travellers 7.0
Slide 7: P&L highlights 9M2016 vs 9M2015
P&L highlights (Pbn) 9M2016 9M2015 % chg Comments Group revenues 101.56 99.59 2% Megaworld 35.15 33.46 5% Sustained growth in rentals; steady contribution from residential segment Emperador 27.60 29.12 -5% Incremental contribution from Fundador offsets lower WMG sales due to RSV exit Travellers 20.8
Slide 8: Revenues by segment
P101.56bn 2% P99.59bn Others, 1% Others, 2% GADC, GADC, P16.5bn, P14.9bn, MEG, 15% MEG, 16% P33.5bn, P35.2bn, 35% 34% RWM, RWM, P20.5bn, P20.8bn, 21% 21% EMP, EMP, P27.6bn, P29.1bn, 27% 29% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 8
Slide 9: EBITDA by segment
P24.73bn 3% P24.06bn GADC, GADC, P1.3bn, 5% P0.9bn 4% RWM, RWM, P3.7bn, P4.0bn, 15% 17% MEG, MEG, P12.9bn, EMP, P13.6bn, 54% 6.3bn, 55% EMP, 25% P6.4bn 26% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 9
Slide 10: Net income by segment
P11.05bn 4% P10.61bn GADC, GADC, P0.2bn, P0.4bn, 2% RWM, 4% RWM, P1.3bn, P1.3bn, 12% 12% MEG, P6.0bn, MEG, 54% P5.4bn, 51% EMP, EMP, P3.8bn, P4.0bn, 36% 36% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 10
Slide 11: Quarterly revenues and net income
11.1 120.0 10.6 101.6 12.0 99.6 100.0 10.0 80.0 8.0 6.0 60.0 3.9 3.8 4.0 3.4 39.5 3.5 3.1 3.3 34.5 34.2 32.3 4.0 34.0 33.1 33.1 40.0 2.0 20.0 0.0 - -2.0 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Others 0.6 0.7 0.4 0.6 0.6 0.4 0.4 1.6 1.5 Others 0.0 0.2
Slide 12: Quarterly EBITDA and margins
24.7 45% 24.1 25.0 40% 22.0 35% 19.0 30% 16.0 25% 13.0 20% 8.7 8.8 8.2 8.1 7.3 10.0 7.7 7.2 15% 7.0 10% 4.0 5% 1.0 -2.0 0% Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 OTHERS 0.2 0.5 -0.8 -0.3 0.3 0.0 -0.4 -0.1 -0.1 MEG 33.8%39.6%41.8%31.5%34.3%40.7%40.8%
Slide 13: Heavy capex continues
Heavy capex continues 100.0 87 90.0 77 76 80.0 72 70.0 55 60.0 31% CAGR 50.0 40.0 31 26 30.0 19 20.0 10.0 0.0 2010 2011 2012 2013 2014 2015 2016E 2017E MEG EMP RWM GADC 13
Slide 14: Capex funding and net debt/equity
• Heavy capex funded through internal cash flows and debts. • Debts grew 2.8x from 2011 level but still comfortable. • Group net debt/equity stood at 0.30x; parent net debt/equity at 0.04x at end-Sep 2016. Net debt Net debt/ 117.8 125.8 (cash) (Pbn) equity (X) 96.6 25.7 80.0 0.4x 21.7 0.30x 14.2 17.
Slide 15: Growth initiatives by subsidiary
• Megaworld On-track to hit office GLA capacity of 851k sqm by end-2016. Ongoing capacity expansions: 2x office GLA, 3x commercial GLA by 2020 from 2015. Intensified township development throughout the country. • Emperador Increase presence in the domestic and global market. • Travellers M
Slide 16: Megaworld Corporation 9M2016 performance highlights
Megaworld Corporation 9M2016 performance highlights
Slide 17: Megaworld key figures
office GLA commercial townships GLA hectares in landbank BPO Clients 17
Slide 18: Megaworld results commentary
• Total revenues up 5% YoY to P35.3bn. • Rentals (office and commercial) delivered the growth, +15% to P7.4bn. • Rentals contributed 21% of total revenues (from 19% a year ago). • High occupancy rates of 98-99%. • Real estate sales +1% to P20.7bn. • 58% MEG-standalone, >16% each from GERI and ELI, 9
Slide 19: Megaworld revenues and EBIT by segment
5.0 14.0 12.0 4.0 2.0 2.2 2.2 2.6 2.6 1.7 1.8 10.0 2.0 2.3 2.3 3.0 2.0 8.0 1.5 1.7 2.0 1.7 6.0 8.7 8.5 7.8 8.2 8.3 8.8 2.5 2.7 4.0 7.7 2.4 2.1 1.0 1.8 1.9 2.0 1.3 0.0 0.0 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q115 Q215 Q315 Q415 Q116 Q216 Q316 -1.0 Development Rental Hotels Others Development Rental Ho
Slide 20: Megaworld rentals, margins, opex and net debt
16.0 80% 8.0 7.0 12.0 48% 51% 48% 60% 6.0 3.0 44% 46% 45% 47% 46% 40% 5.0 2.7 8.0 40% 4.0 3.0 4.0 20% 1.0 1.0 3.8 4.4 2.0 0.8 0.9 0.9 0.9 0.9 1.0 1.2 1.3 1.3 1.4 1.4 1.5 1.5 - 0% - Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Real estate sales Gross profi
Slide 21: Emperador Inc. 9M2016 performance highlights
Emperador Inc. 9M2016 performance highlights
Slide 22: Emperador key figures
50m liters alcohol capacity 33m cases sold in 2013 36k barrels distillation capacity 22
Slide 23: Emperador results commentary
• Revenues down 4% to P27.9bn. • EMP ex-WMG sales grew 10% to P20.2bn (72% of total). • Incremental contribution from Fundador starting in March. • EMP-domestic continues to experience some headwinds amid a highly competitive domestic landscape. • Sales of WMG fell 28% to P7.7bn (28% of total). • Te
Slide 24: Emperador revenues, margins and net debt
0.5 0.7 10.8 7.7 0.6 0.2 4.2 4.2 5.8 0.3 18.4 20.2 0.0 0.2 0.2 0.3 3.2 3.3 4.2 2.2 2.7 2.7 1.9 1.4 1.6 1.2 1.6 1.2 1.2 5.7 6.1 6.6 8.8 6.7 6.7 6.8 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 EMP ex-WMG WMG EMP ex-WMG WMG Net debt Net debt/ 40.0 (cash) (P
Slide 25: Emperador EBITDA and liquor sales
2.1 2.1 10.7 7.6 1.1 7.3 7.1 5.8 0.7 0.7 4.2 18.1 19.6 0.6 0.8 0.6 0.8 3.2 3.3 2.2 2.7 2.7 8.6 2.8 3.1 2.8 6.0 6.6 6.6 6.3 6.7 2.2 2.3 2.1 2.2 5.5 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 EMP ex-WMG WMG EMP ex-WMG WMG Sales, GP (Pbn) GP margin Sales,
Slide 26: Travellers International Hotel Group 9M2016 performance highlights
Travellers International Hotel Group Inc. 9M2016 performance highlights
Slide 27: Travellers key figures
P28bn 4,000 in gross Marriott revenues Grand (2015) Ballroom capacity 85% P6bn in overall in 2015 hotel EBITDA occupancy rate (9M16) P77bn 1,226 in total In hotel room assets keys (Sep2016) (2015)
Slide 28: Travellers results commentary
• Net revenues rose 5% to P18.9bn. • GGR continued to recover in Q316, bringing 9M16 level flat to P18.0bn. • Overall improvement in volumes (+8%), driven by grind. • Sharp growth in VIP revenues in Q316, due to improved VIP win rate. • Mass/VIP GGR mix now at 61%/39% (from 57%/43% a year ago). • No
Slide 29: Travellers revenues, EBITDA and net debt
2.5 2.8 7.7 7.0 17.9 18.0 0.8 0.9 1.0 0.9 0.9 11.0 0.8 1.0 3.5 2.3 2.7 1.9 2.4 2.7 10.2 1.9 6.8 5.7 5.4 6.3 5.6 6.2 6.2 3.3 3.4 3.5 3.5 3.7 3.8 3.5 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Q115 Q215 Q315 Q415 Q116 Q216 Q316 9M15 9M16 Gross gaming Non-gaming Mass VIP EBITDA (Pbn) Margin Net debt
Slide 30: Travellers mass and VIP gaming revenues
500.0 25.0 20.2 18.7 18.7 19.4 19.0 19.2 17.9 18.8 18.8 19.0 18.4 400.0 20.0 300.0 15.0 314.3 280.0 200.0 262.5 267.2 258.5 10.0 194.4 174.9 192.7 173.2 100.0 5.0 61.7 69.0 67.8 67.4 69.7 72.5 66.6 71.8 75.1 - - 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q11
Slide 31: Golden Arches Development Corporation 9M2016 performance highlights
Golden Arches Development Corporation 9M2016 performance highlights
Slide 32: Total number of stores in operation
Total number of stores in operation (end-Sep2016) McDelivery Hubs Stores with Drive Thru System wide same-store sales growth (9M16)
Slide 33: GADC results commentary
• Sales revenues remained robust, up 11% to P16.4bn. – 90% from sales by co-owned stores; 10% from rent, royalty & others. – Systemwide same-store sales growth at 8% YoY. – Number of stores hit the 500 milestone (vs 468 a year ago). – Despite aggressive capacity expansion, revenue per store has been
Slide 34: GADC revenues, margins and net debt
6.0 15.0% 12.6% 0.5 0.5 0.5 9.8% 5.0 0.5 0.5 0.4 0.5 10.0% 7.2% 7.2% 7.7% 4.0 9.9% 3.0 5.0% 3.1% 3.5% 1.1% 7.2% 4.7 5.1 4.7 5.1 5.0 2.0 4.3 4.4 4.9% 4.0% 0.0% 3.1% 1.0 - -0.7% -5.0% Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Sales by co-operated restaurants Rent, royalty &
Slide 35: GADC EBIT, net income and store count
25.00 23.0% EBIT, Net Margins 22.7% 22.7% 1.5 profit (Pbn) 12% 22.5% 20.3 22.5% 22.5% 20.00 18.4 15.8 16.4 22.0% 14.8 1.0 7.8% 8% 13.7 7.7% 15.00 21.5% 6.6% 6.0% 11.5 21.4% 6.5% 5.2% 5.4% 5.1% 5.0% 5.0% 10.00 21.0% 4.3% 20.8% 20.6% 0.5 3.7% 3.1% 4% 4.2 20.5% 0.8 0.8 2.1% 0.8 3.6 3.9 3.7 0.6 0.7 0.8
Slide 36: Thank you.
Thank you.