Slide 1: 1H CY2021 Unaudited Results Investor Briefing
1H CY2021 Unaudited Results Investor Briefing July 30, 2021 Irwin C. Lee Mickey T. Manalang President and CEO Strategy & Investor Relations Director
Slide 2: Agenda
Investor Presentation: 1H CY2021 Business Results Agenda 1. COVID-19 Impact 2. 1H CY2021 Unaudited Financial Results 3. Business Updates 2
Slide 3: Resurgence of COVID-19 as vaccination rates remain low
Investor Presentation: 1H CY2021 Business Results Resurgence of COVID-19 as vaccination rates remain low 3 Source: Our World in Data, Nikkei, Bloomberg
Slide 4: Economic recovery to be slower than initially projected
Investor Presentation: 1H CY2021 Business Results Economic recovery to be slower than initially projected 4 Source: Nikkei, CNBC
Slide 5: Market remains challenged while cost pressure continues
Investor Presentation: 1H CY2021 Business Results Market remains challenged while cost pressure continues GROWTH RATES CATEGORY MAT Apr21 YTD Apr21 Snacks -18% -15% Candies -35% -23% Chocolates and -19% -14% Coated Wafers Biscuits -24% -24% Noodles -10% -10% RTD Tea -38% -28% Coffee -19% -19
Slide 6: Agenda
Investor Presentation: 1H CY2021 Business Results Agenda 1. COVID-19 Impact 2. 1H CY2021 Unaudited Financial Results 3. Business Updates 6
Slide 7: Overall growth cycling through high pre-COVID and pantry loading 2020 base
URC Overall growth cycling through high pre-COVID and pantry loading 2020 base Investor Presentation: 1H CY2021 Business Results 67.4 68.5 • Growth driven by International and Commodities divisions SALES 2% In billion pesos • Philippines cycling through higher base vs. last year 1H 2020 1H 2021 8.2
Slide 8: BCF Philippines: 1H results in line with expectations
BCF PHILIPPINES 1H results in line with expectations, managing market decline and input cost pressures 31.4 Investor Presentation: 1H CY2021 Business Results 29.2 • Expected decline vs. 2020 base (Taal eruption, COVID stock-up) • 2021 market recovery delayed; consumer sentiment still weak SALES 7% •
Slide 9: URC continues to perform ahead of the market
BCF PHILIPPINES URC continues to perform ahead of the market that is on double-digit decline Investor Presentation: 1H CY2021 Business Results Growth URC Market Share Growth POS DATA CATEGORY Nielsen URC MAT MAT YTD Jun21 Customer URC YTD Apr21 YTD Jun21 Apr20 Apr21 CVS A -12% -9% Snacks -15% -8%
Slide 10: BCF International: Continued growth momentum into Q2
BCF INTERNATIONAL Continued growth momentum into Q2 Investor Presentation: 1H CY2021 Business Results 21.6 19.0 • Strong sales momentum carried into Q2 with all clusters growing vs LY and 4 pts improvement on forex • Oceania +1%* vs. high 2020 COVID pantry loading base SALES 13% • Vietnam and Thaila
Slide 11: AIC: Commodities growth driven by new businesses
AIC Commodities growth driven by new businesses Investor Presentation: 1H CY2021 Business Results 16.5 16.8 2% BUSINESS UNIT PERFORMANCE Commodity Foods Group (CFG) 10.1 11.4 +13% SURE +17% • Growth in Sugar as La Carlota and Roxol contribute to base business SALES FLOUR flat • AIG down on higher ba
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash and Financial Debt In billion pesos Investor Presentation: 1H CY2021 Business Results 41.5 43.6 19.4 17.3 • Cash balance healthy at Php 17.3B 2020 2021 • Net Debt of Php 26.3B Cash + Financial Assets at FVPL + AFS Financial Debt • Gearing ratio of 0.42 Cash Position
Slide 13: Agenda
Investor Presentation: 1H CY2021 Business Results Agenda 1. COVID-19 Impact 2. 1H CY2021 Unaudited Financial Results 3. Business Updates 13
Slide 14: Divestment in Oceania
Investor Presentation: 1H CY2021 Business Results Divestment in Oceania • Remaining 60% stake in the consolidated Australia and New Zealand business sold to existing joint venture partner Intersnack Group • Efficiencies and synergies created in the market monetized through the sale • Continued focus
Slide 15: Optimizing shareholder returns
Optimizing shareholder returns Organic Growth • Increasing investment for organic growth Investor Presentation: 1H CY2021 Business Results (ROI-disciplined CAPEX) Investment Acquisition • Enhancing portfolio with Invest in value accretive projects acquisition/divestiture program and new equity ventu
Slide 16: Optimizing shareholder returns
Optimizing shareholder returns • Increase of dividends to 1.80 in second tranche Investor Presentation: 1H CY2021 Business Results Declaration Current Proposed Date April 29, 2021 1.50 1.50 July 30, 2021 1.65 1.80 2021 Total 3.15 3.30 • On top of investing for growth, a Php3B buyback program will be
Slide 17: Appointment of new independent director
Investor Presentation: 1H CY2021 Business Results Appointment of new independent director • Established Deutsche Regis Partners in 2000, one of the largest stockbrokers in the Philippines • Served on three government boards: the Development Bank of the Philippines, the DBP Leasing Corp., and the Met
Slide 18: Thank You
Investor Presentation: 1H CY2021 Business Results THANK YOU 18
Slide 19: Income Statement
Income Statement 1H 2021 1H 2020 YoY (Php Millions) (Unaudited) (Unaudited) Investor Presentation: 1H CY2021 Business Results NET SALES 68,529 67,407 2% Cost of Sales 47,954 46,936 2% GROSS PROFIT 20,575 20,472 1% • Increase in net income Operating Expense -12,370 -12,235 1% attributed to higher oth
Slide 20: Balance Sheet
Balance Sheet 1H 2021 CY 2020 Investor Presentation: 1H CY2021 Business Results (Php Millions) (Unaudited) (Audited) Cash & cash equivalents 17,306 19,367 (including Financial assets at FVPL and FVOCI) Other current assets 54,414 46,271 Property, plant, and equipment 62,133 58,990 Other noncurrent a
Slide 21: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN Investor Presentation: 1H CY2021 Business Results (Php Millions) 1H 2021 1H 2020 YoY 1H 2021 1H 2020 YoY 1H 2021 1H 2020 bps Branded Consumer Foods 51,696 50,914 2% 6,119 6,345 -4% 11.8% 12.5% (62) Total Philippines 30,145 31,902 -6% 4,166 4,508 -8% 13.8%
Slide 22: Market Shares
Market Shares Philippines Thailand MARKET CATEGORY MARKET SHARE #1 #2 #3 CATEGORY #1 #2 #3 Investor Presentation: 1H CY2021 Business Results SHARE Biscuits (new) 18.6% URC 13.2% 7.7% Snacks 39.1% URC 22.2% 5.9% Wafers 21.5% URC 20.3% 10.0% Candies 28.2% URC 12.2% 11.8% Vietnam Cho