Slide 1: 9M CY2021 Unaudited Results Investor Briefing
9M CY2021 Unaudited Results Investor Briefing October 29, 2021 Irwin C. Lee Mickey T. Manalang President and CEO Strategy & Investor Relations Director
Slide 2: Agenda
Investor Presentation: 9M CY2021 Business Results Agenda 1. COVID-19 Impact and Disruptions 2. 9M CY2021 Unaudited Financial Results 3. Business Updates 2
Slide 3: Surge in COVID-19 cases experienced in Q3
Investor Presentation: 9M CY2021 Business Results Surge in COVID-19 cases experienced in Q3 3 Source: Our World in Data, Reuters
Slide 4: Government restrictions affecting operations
Investor Presentation: 9M CY2021 Business Results Government restrictions affecting operations Factories in Thailand, Vietnam and Malaysia were impacted by limited capacity and factory shutdowns in Q3 due to COVID restrictions Malaysia manufacturers reduce output as COVID-19 lockdown limits workforc
Slide 5: Commodity prices and freight costs spike to new highs
Commodity prices and freight costs spike to new highs Palm Oil – USD per metric ton Investor Presentation: 9M CY2021 Business Results Wheat – USD per metric ton 5 Source: Reuters, Wall Street Journal, Fox Business, Bloomberg
Slide 6: How we are addressing disruptions and cost inflation
Investor Presentation: 9M CY2021 Business Results How we are addressing disruptions and cost inflation • Strengthened People Safety and Crewing Plans • Increased Inventories Levels • Diversifying Suppliers Base and Harmonizing Specs • Expanding and Accelerating LEAN Savings Program • Pricing/Mix - 2
Slide 7: Expanding and Accelerating Savings
Investor Presentation: 9M CY2021 Business Results Expanding and Accelerating Savings 2019 COMMITMENT PHP 1B PHP 5B Total savings in 3 years New “Fuel For Growth” Program • Lean program initiated with savings • New 5-year roadmap to harvest Php5B commitment of Php1B over 3 years savings • Lean Manufa
Slide 8: Agenda
Investor Presentation: 9M CY2021 Business Results Agenda 1. COVID-19 Impact and Disruptions 2. 9M CY2021 Unaudited Financial Results 3. Business Updates 8
Slide 9: Revenue growth despite COVID constraints in key markets
URC Revenue growth despite COVID constraints in key markets Investor Presentation: 9M CY2021 Business Results 99.8 102.6 • Growth driven by the Commodities and International divisions SALES 3% • Philippines showed recovery in Q3 as market In billion pesos decline abates 9M 2020 9M 2021 11.9 11.6 • N
Slide 10: BCF Philippines: Topline ahead of market, but input cost pressures weigh on margins
BCF PHILIPPINES Topline ahead of market, but input cost pressures weigh on margins Investor Presentation: 9M CY2021 Business Results 46.5 44.2 • Expected decline vs. 2020 base (Taal eruption, COVID stock-up), but improvement vs 1H 2021 SALES 5% • 2021 market recovery delayed; consumer sentiment In b
Slide 11: URC maintaining share gains as markets slowly recover
BCF PHILIPPINES URC maintaining share gains as markets slowly recover Investor Presentation: 9M CY2021 Business Results Market Growth Index URC Market Share CATEGORY MAT MAT P12M P8M Aug20 Aug21 Snacks 97 104 38.7% 38.9% Candies 88 102 26.6% 27.7% Chocolates and Coated Wafers 93 100 22.0% 24.6%
Slide 12: BCF International: Growth momentum tapered, impacted by COVID surge in Q3
BCF INTERNATIONAL Growth momentum tapered, impacted by COVID surge in Q3 Investor Presentation: 9M CY2021 Business Results 32.9 30.0 • Sales up on YTD basis, but most countries impacted by COVID lockdowns SALES 9% In billion pesos • Indo-China and Indonesia leading growth despite COVID challenges 9M
Slide 13: AIC: Commodities growth driven by new businesses
AIC Commodities growth driven by new businesses Investor Presentation: 9M CY2021 Business Results 24.2 9% BUSINESS UNIT PERFORMANCE 22.3 Commodity Foods Group (CFG) +20% SURE +26% • Growth in Sugar as La Carlota and Roxol 13.1 15.7 FLOUR +3% contribute to base business SALES In billion pesos Agro-In
Slide 14: Balance Sheet and Cash Flow
Investor Presentation: 9M CY2021 Business Results Balance Sheet and Cash Flow Cash and Financial Debt In billion pesos 41.5 48.4 19.4 16.7 • Cash balance at Php 16.7B • Net Debt of Php 31.7B 2020 2021 • Gearing ratio of 0.47 Cash + Financial Assets at FVPL + AFS Financial Debt • Major cash disbursem
Slide 15: Agenda
Investor Presentation: 9M CY2021 Business Results Agenda 1. COVID-19 Impact and Disruptions 2. 9M CY2021 Unaudited Financial Results 3. Business Updates 15
Slide 16: Sustainability Updates: Initial 2030 Commitments
Investor Presentation: 9M CY2021 Business Results Sustainability Updates: Initial 2030 Commitments 16
Slide 17: Updated 2030 Sustainability Commitments
Investor Presentation: 9M CY2021 Business Results Updated 2030 Sustainability Commitments People & Climate Water Product Packaging Sourcing Communities Action Improve Improve Reduce our Promote Make Move water use choices in our packaging responsible people’s towards a efficiency & product footprint
Slide 18: Sustainability Updates
Investor Presentation: 9M CY2021 Business Results Sustainability Updates Water • Water recirculation, rainwater collection • Water Use Ratio targets ahead of schedule; revised up Climate • Phased refresh of plant infrastructure • Pilot solar energy running in PH, TH, VN • #1 power cogeneration facil
Slide 19: Thank You
Investor Presentation: 9M CY2021 Business Results THANK YOU 19
Slide 20: Income Statement
Investor Presentation: 9M CY2021 Business Results Income Statement 9M 2021 9M 2020 (Php Millions) YoY (Unaudited) NET SALES 102,557 99,773 3% Cost of Sales 72,236 69,160 4% GROSS PROFIT 30,321 30,613 -1% • Increase in net income attributed to higher other Operating Expense -18,770 -18,702 0% income
Slide 21: Balance Sheet
Investor Presentation: 9M CY2021 Business Results Balance Sheet 9M 2021 CY 2020 (Php Millions) (Unaudited) (Audited) Cash & cash equivalents 16,683 19,367 (including Financial assets at FVPL and FVOCI) Other current assets 54,357 46,271 Property, plant, and equipment 63,726 58,990 Other noncurrent a
Slide 22: Divisional Financials
Investor Presentation: 9M CY2021 Business Results Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) 9M 2021 9M 2020 YoY 9M 2021 9M 2020 YoY 9M 2021 9M 2020 bps Branded Consumer Foods 78,311 77,432 1% 8,980 9,455 -5% 11.5% 12.2% (74) Total Philippines 45,422 47,396 -4% 5,946 6,601 -10% 13.1
Slide 23: Market Shares
Market Shares Philippines Thailand Investor Presentation: 9M CY2021 Business Results MARKET MARKET CATEGORY #1 #2 #3 CATEGORY #1 #2 #3 SHARE SHARE Snacks 38.9% URC 23.2% 5.5% Biscuits 18.4% URC 13.1% 7.7% Candies 27.7% URC 12.5% 12.0% (new) Chocolates Wafers 21.4% URC 20.8% 10.1%