Alliance Global Group Inc. · PSE:AGI
Alliance Global — Q1 2024 Earnings Presentation
35 slides from Alliance Global's earnings presentation, May 15, 2024
Slide 1: SEC Form 17-C cover sheet
A S O 9 3 - 7 9 4 6 S.E.C. Registration Number A L L I A N C E G L O B A L G R O U P , I N C . (Company’s Full Name) 7 / F 1 8 8 0 E A S T W O O D A V E N U E E A S T W O O D C I T Y C Y B E R P A R K B A G U M B A Y A N Q U E Z O N C I T Y (Business Address: No. Street City/ Town/ Province) DINA D.
Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2 (c) THEREUNDER 1. 15 May 2024 Date of Report 2. SEC Identification No: ASO93-7946 3. BIR Tax Identification No: 003-831-302-000 4. Alliance Global Group, Inc. Exact na
Slide 3: First Quarter 2024 Analysts' Briefing
First Quarter 2024 Analysts’ Briefing May 15, 2024 Premium Conglomerate Lifestyle 1
Slide 4: Performance highlights
Performance highlights AGI P&L Highlights P&L Highlights, by key subsidiary 23% 1Q23 1Q24 37% Revenue MEG EMI TRAV GADC Share 14% 50.3 50.6 18.9 26% 13.1 11.3 9.2 5% 4.4 31% 7.1 6.6 Profit 4.7 4.2 1.7 Share 0.0 0.5 64% Revenues Pre-minority Attributable Revenue Revenue Profit Revenue Profit Revenue
Slide 5: AGI 1Q2024 financial performance
AGI 1Q2024 financial performance in Pbn 1Q2024 1Q2023 YoY chg 4Q2023 QoQ chg Group revenues 50.6 50.3 1% 60.4 -16% Megaworld 18.8 16.2 16% 21.0 -10% Emperador 13.1 15.6 -16% 18.4 -29% Travellers 7.1 7.8 -9% 8.0 -10% Topline performance driven mainly by surge in real GADC 11.4 10.0 13% 12.3 -8% estat
Slide 6: Group Borrowings
Group Borrowings GROSS DEBTS, by key subsidiary AGI GEARING MEG EMI TRAV GADC Parent & others Net debt (cash) Net debt/equity 0.49x 0.47x 241 0.36x 0.37x 0.36x 0.32x 218 215 222 209 214 40 39 40 1 36 42 43 2 1 0 2 1 58 53 57 54 52 60 28 26 34 25 24 37 115 94 95 103 76 86 145 138 119 119 142 150 2019
Slide 7: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt(cash) Net debt/equity 0.30x 1.44x 0.30x 1.39x 0.28x 0.46x (5.2) (5.3) (6.6) (8.2) (7.5) (8.8) 0.0
Slide 8: Capital Expenditure
Capital Expenditure AGI Capex, by subsidiary • Capex budget in FY2024: P75bn • Capex spent in 1Q24: P14.3bn (19% of FY2024 budget) 75 66 4 63 10 4 2 57 4 6 11 3 48 5 7 2 4 1 36 6 2 1 7 1 55 GADC 48 46 50 38 14 TRAV EMI 28 1 1 2 MEG 11 2019 2020 2021 2022 2023 1Q24 2024E 6 All items are in billion pe
Slide 9: Enhancing Shareholder Value
Enhancing Shareholder Value SHARE BUYBACK PROGRAM AGI ▪ Buyback program size: P9.0bn 90% ▪ Amount utilized: P8.1bn (90%) ▪ 710m shares bought at an average price P11.45 per share. ▪ Implementation period: 42 months from October 2021 to April 2025 DIVIDENDS EMI MEG P0.24 CASH DIVIDEND PER SHARE ▪ Buy
Slide 10: Megaworld Corporation
Megaworld Corporation 1Q2024 Financial Performance 31 4,430 1,448 517 4,713 Townships & Integrated Landbank Offices GLA Lifestyle Malls GLA Hotel Lifestyle Communities (has) ('000 sqm) ('000 sqm) Room Keys 8
Slide 11: MEG 1Q2024 financial performance
MEG 1Q2024 financial performance P&L summary (Pbn) 1Q2024 1Q2023 YoY chg 4Q2023 QoQ chg Revenue 18.9 16.2 16% 21.1 -11% Residential 12.1 9.4 29% 13.7 -11% Office 3.2 3.1 1% 3.1 0% Malls 1.5 1.2 20% 1.4 6% Residential segment continued to benefit from Hotel 1.1 0.8 39% 1.2 -3% sustained housing deman
Slide 12: MEG Historical P&L Performance - Quarterly
MEG Historical P&L Performance - Quarterly REVENUE EBITDA NET INCOME Development Rental Hotels Development Rental Hotels 19.4 9.1 1.2 17.9 8.5 0.2 1.1 0.2 5.3 15.4 7.7 15.0 4.6 7.2 14.6 7.1 0.1 0.9 0.1 4.4 0.8 0.9 4.6 0.1 4.3 4.1 4.1 4.5 4.4 3.8 4.4 4.4 4.1 4.0 4.0 13.7 12.1 9.4 9.7 10.0 4.5 4.0 3.1
Slide 13: MEG Historical Performance - Key Operating Segments - Quarterly
MEG Historical Performance - Key Operating Segments - Quarterly RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real estate sales Gross Profit Development GP margin Rentals Rental EBITDA EBITDA margin Hotel revenues Hotel EBITDA EBITDA margin 88% 88% 88% 89% 88% 50% 50% 20% 49
Slide 14: 2024 Targets
2-4 NEW TOWNSHIPS 2024 Targets P55bn CAPEX BUDGET P40bn PROJECT LAUNCHES P145bn RESERVATION SALES 12
Slide 15: Premier Offices and Lifestyle Malls pipeline
PREMIER OFFICES LIFESTYLE MALLS 148k 151.1k 2024-2026 PiPELINE 2024-2026 PIPELINE 13
Slide 16: Megaworld Hotels & Resorts
MEGAWORLD HOTELS & RESORT 4,185 MEGAWORLD 2024-2029 PiPELINE PH’S BIGGEST HOTEL DEVELOPER, OPERATOR 4,713 2023 Hotel Room Keys • Richmonde Hotel - Ortigas • Lucky Chinatown Hotel • Eastwood Richmonde Hotel • Belmont Boracay • Fairways & Bluewater • Savoy Mactan Newton • Belmont Hotel Newport • Kings
Slide 17: Muslim-friendly hotel properties in the Philippines
Muslim-friendly hotel properties in the Philippines Megaworld Hotels and Resorts is in strategic partnership with Department of Tourism to implement their programs in our hotel properties including the development of Muslim-friendly hotel properties in the Philippines. Expanding international networ
Slide 18: Travellers International Hotel Group, Inc.
Travellers International Hotel Group, Inc. 1Q2024 Financial Performance 2,742 5 82% 503 2,297 Hotel room International Hotel Occupancy VIP and mass Slots keys Hotel Brands (1Q2024) gaming tables 16
Slide 19: Travellers 1Q2024 Financial Performance
Travellers 1Q2024 Financial Performance P&L summary (Pbn) 1Q2024 1Q2023 YoY chg 4Q2023 QoQ chg Gross Revenue 9.2 10.7 -13% 10.7 -14% Gross gaming revenue 7.5 8.9 -16% 8.3 -9% Mass 4.3 3.4 28% 4.5 -4% VIP 3.2 5.5 -42% 3.8 -16% Decline in GGR traced to fall in VIP volume and Less: promotional allowanc
Slide 20: Travellers Historical P&L Performance - Quarterly
Travellers Historical P&L Performance - Quarterly GROSS REVENUES EBITDA Gross Gaming Non-gaming 10.7 10.7 2.2 2.1 2.2 10.3 10.0 9.2 1.8 1.5 2.5 1.7 1.7 1.8 1.4 8.9 8.7 8.3 8.3 7.5 Q123 Q223 Q323 Q423 Q124 Q123 Q223 Q323 Q423 Q124 18 *Exclude extraordinary items
Slide 21: Travellers Historical Operational Performance
Travellers Historical Operational Performance GGR: MASS vs VIP AVERAGE DAILY VISITORS Mass VIP 8.9 8.7 41.8 41.8 8.3 8.3 38.7 37.4 36.5 7.5 5.0 3.9 3.8 5.5 3.2 4.4 4.5 4.3 3.4 3.7 Q123 Q223 Q323 Q423 Q124 Q123 Q223 Q323 Q423 Q124 19 All items are in billion pesos except average daily visitors.(‘000)
Slide 22: Travellers
TRAVELLERS Biggest Number of Hotel Room Keys in One Location Newport World Resorts Complex 2,742 Hotel Room Keys 5 International Hotel Brands 20
Slide 23: International hotel brands
5 Overnight stays 5 International hotel brands 21
Slide 24: Emperador Inc.
Emperador Inc. 1Q2024 Financial Performance 6 5 >100 25 Vineyards Distilleries Countries under Domestic in Spain in Scotland global distribution system Sales Offices 22
Slide 25: EMI 1Q2024 financial performance
EMI 1Q2024 financial performance P&L summary (Pbn) 1Q2024 1Q2023 YoY chg 4Q2023 QoQ chg Revenue 13.1 15.6 -16% 18.6 -29% Brandy 7.9 9.8 -19% 12.1 -35% Whisky 5.2 5.8 -10% 6.4 -18% Gross Profit 4.2 5.1 -17% 4.8 -13% Whisky and brandy sales generally affected by Brandy 1.9 2.4 -21% 2.1 -11% the global
Slide 26: EMI Historical P&L Performance - Quarterly
EMI Historical P&L Performance - Quarterly REVENUES ATTRIBUTABLE INCOME Brandy Whisky Brandy Whisky 18.6 16.0 2.4 15.6 15.5 2.3 6.4 13.1 2.1 1.9 1.7 5.8 6.8 6.7 1.3 1.4 5.2 1.2 1.0 0.9 12.2 9.8 9.2 8.9 7.9 1.0 1.0 0.9 0.8 0.8 Q123 Q223 Q323 Q423 Q124 Q123 Q223 Q323 Q423 Q124 24
Slide 27: EMI Performance by Segment - Quarterly
EMI Performance by Segment - Quarterly WHISKY REVENUE, GROSS PROFIT, MARGIN BRANDY REVENUE, GROSS PROFIT, MARGIN Whisky revenues Gross profit GP margin Brandy revenues Gross profit GP margin 31% 29% 46% 25% 24% 43% 43% 44% 42% 18% 6.7 6.8 6.4 5.8 12.2 5.2 9.8 8.9 9.2 7.9 3.0 2.7 2.8 2.7 2.3 2.4 2.7
Slide 28: Expansion of Dalmore Distillery and Maturation Complex
Expansion of Expansion of Maturation Complex Dalmore Distillery in Invergordon Distillery • Double the distillery’s production capacity • Doubling footprint to 92 hectares to cater future demand • Additional warehouses for whisky aging • Expected to be completed in mid-2024 • 120 new warehouses to b
Slide 29: Golden Arches Development Corporation
Golden Arches Development Corporation 1Q2024 Financial Performance 744 554 465 598 Store McDelivery Stores with NXTGEN Count hubs Drive-thru stores 27
Slide 30: GADC 1Q2024 financial performance
GADC 1Q2024 financial performance P&L summary (Pbn) 1Q2024 1Q2023 YoY chg 4Q2023 QoQ chg Systemwide Sales 19.5 17.2 13% 20.8 -7% Sales Revenues 11.3 9.9 14% 12.1 -7% Sales by co. restos 10.3 9.0 14% 11.0 -6% Sustained improvement in systemwide sales Rent, royalty & others 1.0 0.9 10% 1.1 -11% suppor
Slide 31: GADC Historical P&L Performance - Quarterly
GADC Historical P&L Performance - Quarterly SALES REVENUES ATTRIBUTABLE INCOME Sales by co-operated restaurants Rent, royalty & others 12.1 11.3 1.1 10.6 10.2 9.9 0.6 0.5 0.5 11.0 0.4 10.3 9.0 9.3 9.6 Q123 Q223 Q323 Q423 Q124 Q123 Q223 Q323 Q423 Q124 29
Slide 32: GADC Historical Operating Performance - Quarterly
GADC Historical Operating Performance - Quarterly SALES, GROSS PROFIT, MARGIN SYSTEMWIDE SAME STORE SALES GROWTH NUMBER OF STORES Sales revenues Gross profit GP Margin Quarterly End-of-period NCR Luzon Visayas Mindanao 26% 24% 23% 23% 23% 28.1% 744 740 704 655 671 59 61 56 12.1 21.6% 50 51 75 76 72
Slide 33: 744 stores, 50 new stores 2024 target
744 stores 2023 50 new stores 2024 Target 31
Slide 34: Key Takeaways
Key Takeaways AGI’s 1Q24 performance showed a mixed bag of results, but it proved the strength of our diversified operations. 1Q24 results remained driven by the surge in real estate sales, and healthy contribution from quick service restaurants and tourism-related businesses which benefitted from r
Slide 35: First Quarter 2024 Analysts' Briefing
First Quarter 2024 Analysts’ Briefing May 15, 2024 Premium Conglomerate Lifestyle 33
Alliance Global Group — Q1 2024 Earnings Presentation on 6ix