Alliance Global Group Inc. · PSE:AGI
Alliance Global — UBS Philippines CEO/CFO Forum 2019
53 slides from Alliance Global's conference presentation, Feb 28, 2019
Slide 1: UBS Philippines CEO/CFO Forum
WA ALLIANCE GLOBAL UBS Philippines CEO/CFO Forum 27-28 February 2019
Slide 2: Group timeline 1990-2018
• • 1990 1995 2000 2005 2010 2015 2018 2
Slide 3: Group structure and listed subsidiaries
AGI PM (USD 2.7BN) 67% 82% 44% 49% 100% GOLDEN ARCHES DEVELOPMENT CORPORATION MEG PM EMP PM RWM PM (USD 3.3BN) (USD 2.4BN) (USD 1.7BN) NOT LISTED NOT LISTED Number 1 in World leader in First integrated Number 2 Forays into Townships the brandy spirits resort in the in quick-service infrastructure Nu
Slide 4: Largest township developer
Largest township developer incorporating the Live-Work-Play concept. Leading developer of residential condominiums catering mainly to the mid- and high-end market segments. Biggest office landlord. 4
Slide 5: Digitization, smart homes, sustainability
digitization of customer service and payment processes smart home technology in residential units Green sustainability Urban art installations 5
Slide 6: Residential, Office, Lifestyle Malls, Hotels
RESIDENTIAL OFFICE LIFESTYLE MALLS HOTELS 6
Slide 7: Township land bank
18.5 ha 35.6 ha 12.4 ha 5 ha 50 ha 25 ha 34.5 ha 640 ha 15.4 ha 62 ha 31 ha 561 ha 140 ha 300 ha 350 ha 1,200 ha 150 ha 34 ha 30 ha 53 ha 72 ha 173 ha 11 ha 7
Slide 8: Resorts World Manila
Owns Resorts World Manila, the first integrated resort in the country. Upcoming development: Westside City Resorts World in the Entertainment City complex. 8
Slide 9: Resorts World Manila facilities
World-class gaming facilities All-day entertainment Garden Wing for all age groups Grand Wing (newly-opened) 1,500-seat Newport Performing Arts Theater Entertainment Gaming Features biggest LED screen in Asia and the widest in the Diverse range of Philippines hotel offerings Dining & Largest concent
Slide 10: The country's largest hotel developer
AGI: The country’s largest hotel developer ~4,800 room keys at present Near-term target: 12,00 room keys throughout the Philippines
Slide 11: International hotel brands under Travellers
Well-known International Hotel Brands under Travellers 2,1 37 room keys Existing brands: Y¥ Marriott Hotel Manila Y Holiday Inn Express ¥ Marriott Courtyard ¥ Hilton Hotel Manila Upcoming brands: v Sheraton Manila Hotel ¥ Hotel Okura Y Ritz Carlton Hotel
Slide 12: Home-grown hotel brands under Megaworld
Home-Grown Hotel Brands under Megaworld 2,648 room keys v Eastwood Richmonde Hotel ~— ¥ Savoy Hotel Boracay ¥Richmonde Hotel Ortigas v Savoy Hotel Manila ¥ Richmonde Hotel Iloilo ¥ Twin Lakes Hotel v Fairways & Bluewater ¥ Lucky Chinatown Hotel ¥ Belmont Hotel Manila
Slide 13: World's largest brandy producer
The only global spirits company based in the Philippines and with operations in Scotland and Spain. The world’s largest brandy producer. The Philippines’ largest spirits company. Vertically-integrated operations. 13
Slide 14: Emperador Brandy leads Philippine spirits
Flagship Emperador Brandy is the most popular liquor brand, leading the Philippines spirits market. 14
Slide 15: Spanish and Mexican brandy brands
Major brands: Fundador, Terry Centenario, Tres Major brands: Cepas, Harveys sherry. Presidente, Don Pedro, Azteca de Oro. Production facilities in Jerez and Tomelloso Presidente: No. 1 brandy in regions in Spain. Mexico and most popular brandy in Latin America 15
Slide 16: Scotch whisky brands and distilleries
Major brands: Dalmore, Jura, Shackleton, Whyte&Mackay, Glayva, John Barr, Vladivar. Distilleries in Scotland: Dalmore, Tamnavulin, Fettercairn, Jura and Invergordon. 16
Slide 17: Nationwide and international distribution
Nationwide 25 Sales Offices Distribution Network International Reach 102 Countries 6 Continents
Slide 18: Golden Arches Development Corporation
GOLDEN ARCHES DEVELOPMENT CORPORATION Owns the exclusive McDonald’s franchise in the Philippines. 18
Slide 19: McDonald's Philippines milestones
1981 1992 2005 2016 2018 McDonald’s Morayta Business Expansions Proudly Filipino McDonald’s Tagaytay McDonald’s: NXTGEN Officially opens as the first branch McDonald’s has opened its first Became a wholly-owned Filipino Revolutionary & modern interior Officially opens as the first high- in the Phili
Slide 20: Stores nationwide
© Stores Nationwide
Slide 21: Infrastructure subsidiary
Wholly-owned AGI subsidiary engaged in infrastructure projects supportive of the Group’s township development. 21
Slide 22: Fort Bonifacio - Makati Skytrain
Fort Bonifacio - Makati Skytrain 1.88 km Monorail Project Automated Cable-Propelled Monorail To c o n n e c t M RT 3 G u a d a l u p e S t a t i o n t o U p t o wn B o n i f a c i o 22
Slide 23: NAIA Rehabilitation
. NAIA Rehabilitation @ Consortium Members Gateway Strategy WA NALLIANCEGLOBAL \Y ACInfra aboitiz METRO _ PACIFIC FILINVEST §%@ OS mm . . »MENT CORPORATION /| New Terminals 2022 Asia's Emerging Dragon JG Summit Airside Corporation HOLDINGS, INC. Expansion BT aces PHASE 1A: Terminal Improvements 2020
Slide 24: 9M2018 Financial Performance
WA ALLIANCE GLOBAL 9M2018 Financial Performance
Slide 25: 9M2018 performance at a glance
9M2018 performance at a glance MEG EMP RWM GADC 41.8 112.1 100.3 30.5 20.3 17.0 11.3 18.6 5.1 15.2 12.1 10.2 1.8 1.0 9M2017 9M2018 25
Slide 26: 9M2018 P&L highlights
9M2018 P&L highlights P&L highlights (Pbn) 9M18 9M17 % chg Comments Group revenues 112.1 100.3 12% Megaworld 41.5 36.5 14% Sustained growth in residential and rentals. Emperador 30.4 27.5 11% Growth driven by foreign brands Travellers 18.5 15.8 18% Continued recovery in VIP segment, nongaming. GADC
Slide 27: 9M2018 performance at a glance
9M2018 performance at a glance 4% 6% 18% 37% 17% 33% 57% 27% MEG EMP RWM GADC MEG EMP RWM GADC 27
Slide 28: Group investment commitments
Group investment commitments • Total capex 87 80 budget for 1 77 10 72 71 3 1 2 2018-2020: 55 1 10 11 2 11 11 P240bn 1 6 31 26 1 60 19 1 5 55 5 49 49 1 40 4 32 20 24 13 2010 2011 2012 2013 2014 2015 2016 2017 2018E MEG EMP RWM GADC INFRACORP 28
Slide 29: Group borrowings
Group borrowings 181 187 37 At end-Sep 2018, Group 144 35 1 1 borrowings stood at P187bn, 118 97 30 2 31 40 while net debt/equity rose to 20 64 70 19 2 14 22 38 40 0.42x (vs 0.41x in 2017) 22 2 13 29 29 Parent net debt/equity stood at 24 2 29 1 19 18 0 53 61 75 68 0.04x. 0 34 20 29 2012 2013 201
Slide 30: Group gearing
Group gearing 0.52x 0.41x 0.42x 0.48x 0.34x 0.37x 0.65x 0.47x 0.17x 0.36x 0.31x 0.00x 0.31x 0.02x -0.13x 19.2 28.0 33.2 0.19x 0.22x 4.3 38.9 84.1 111.1 124.3 (24.0) (6.2) (0.0) 0.05x 8.6 20.9 29.9 -37.6 0.07x 1.9 (8.1) (4.4) -0.20x -0.11x -0.03x -0.78x 8.4 29.8 44.8 58.5 55.2 -0.24x 2013 2014 2015 2
Slide 31: Megaworld 9M2018 Performance Highlights
WX MEGAWORLD MEGAWORLD CORPORATION 9M2018 PERFORMANCE HIGHLIGHTS 31
Slide 32: MEG: 9M2018 financial performance
MEG: 9M2018 financial performance P&L (in Pbn) 9M2018 9M2017 % Revenue 41.8 37.1 13% Residential 28.4 25.7 11% • Total realized GP up 20% YoY Rental 10.5 8.8 19% • Higher GLA, occupancy & rent Hotel 1.0 1.0 8% EBITDA 17.6 15.8 12% • Improving profit mix EBIT 16.0 14.5 11% • Increased depreciation ch
Slide 33: MEG: Changing business mix
MEG: Changing business mix 6.0 6.2 14.2 13.2 5.3 5.2 5.2 5.4 0.1 0.1 11.7 12.2 12.4 12.6 0.3 6.7 0.1 11.6 0.3 6.5 0.1 0.3 0.4 0.4 3.7 0.1 4.5 0.1 0.1 0.3 0.3 3.4 5.8 5.7 5.9 0.1 2.8 3.0 3.0 3.0 3.4 5.6 0.1 2.9 2.9 0.1 0.1 2.4 2.4 2.7 0.1 0.1 2.4 4.8 0.1 3.2 3.4 2.3 2.7 2.8 3.1 2.9 9.4 10.2 2.5 8.3 8
Slide 34: MEG: Sustained growth trajectory
MEG: Sustained growth trajectory 46% 46% 45% 48% 48% 49% 88% 91% 46% 4.7 84% 88% 87% 88% 88% 3.9 33% 4.3 4.2 3.6 3.6 0.7 27% 28% 27% 3.5 3.5 3.6 3.0 3.1 3.2 3.2 25% 25% 387 2.9 1.4 369 348 23% 1.4 335 8.4 8.7 314 303 316 7.7 7.5 7.8 1.2 1.1 1.2 3.4 7.2 7.1 3.1 3.2 2.7 2.8 2.9 1.0 2.5 4.1 3.7 4.3 4.0
Slide 35: Initiative: Expansion of rental segment
Initiative: Expansion of rental segment 863 1,510 616 1,013 511 851 737 330 621 291 432 509 280 287 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 35
Slide 36: Initiative: Geographic diversification
Initiative: Geographic diversification 36
Slide 37: Emperador 9M2018 Performance Highlights
= EMPERADOR INC. — ¥ EMPERADOR INC. 9M2018 PERFORMANCE HIGHLIGHTS
Slide 38: EMP: 9M2018 financial performance
EMP: 9M2018 financial performance P&L (in Pbn) 9M2018 9M2017 % Revenue* 30.5 27.6 11% Whisky 9.3 8.1 15% • Driven by The Dalmore, Jura sales Brandy 21.3 19.5 9% • Supported by Fundador sales Gross Profit 10.6 8.8 21% Whisky 3.4 2.2 55% • Raw material costs kept low, offsetting higher salaries & manu
Slide 39: EMP: Whisky segment steers the growth
EMP: Whisky segment steers the growth 15.1 40% 35% 34% 35% 29% 28% 26% 4.2 11.0 2.0 1.9 35% 34% 31% 38% 34% 37% 33% 9.5 9.7 9.8 1.7 9.0 9.1 1.7 1.6 3.2 2.8 1.5 0.4 0.6 2.4 2.8 2.9 3.3 0.4 4.3 1.2 0.5 0.4 0.3 3.3 10.9 2.9 3.2 0.2 2.5 2.8 2.8 11.2 7.9 1.6 6.5 6.4 6.6 6.9 6.5 1.0 1.2 1.3 7.9 1.5 1.4 0.
Slide 40: Initiative: Diversifying product line
Initiative: Diversifying product line A super-premium Innovation of a Gin product Brandy Creates excitement and Introduced differentiation through the Premiumized thru the Travel Retail botanicals used channel in Almond Europe and Asia, Thyme and is now Juniper available in the Min
Slide 41: Travellers 9M2018 Performance Highlights
TRAVELLERS INTERNATIONAL TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. 9M2018 PERFORMANCE HIGHLIGHTS
Slide 42: RWM 9M2018 financial highlights
RWM 9M2018 financial highlights P&L (in Pbn) 9M2018 9M2017 % Total revenue 17.0 15.7 8% Gaming 13.8 12.8 7% • Improvement in volume but lower hold rate Mass 8.9 9.2 -3% VIP 4.8 3.6 33% • Continued recovery in quarterly rolling volume Non-gaming 3.2 2.9 11% • Hotel occupancy rates at 80% (vs 78%) Gro
Slide 43: RWM: Buoyed by continued VIP recovery
RWM: Buoyed by continued VIP recovery 22% 6.3 5.9 5.5 5.6 16% 5.4 16% 15% 1.1 4.9 5.3 29 4.5 1.2 28 1.1 1.0 1.1 13% 27 26 0.9 4.5 4.5 4.7 9% 25 0.9 4.3 24 23 1.2 4.0 1.4 3.6 1.5 5.3 4.7 1.4 1.5 16 14 4.3 4.5 4.5 1.8 4.0 3.6 1.4 0.8 0.9 0.8 4% 15 13 14 1.0 0.7 15 13 0.4 4.0 0.2 2.9 3.0 3.2 Q117 Q217
Slide 44: Initiative: Broadening international hotel brands
Initiative: Broadening international hotel brands 44
Slide 45: GADC 9M2018 Performance Highlights
AA McDonald’s’ pines Philip GOLDEN ARCHES DEVELOPMENT CORPORATION 9M2018 PERFORMANCE HIGHLIGHTS
Slide 46: GADC: 9M2018 financial performance
GADC: 9M2018 financial performance P&L (in Pbn) 9M2018 9M2017 % Systemwide sales 34.4 30.7 12% • Helped by store expansion program Sales revenue 20.3 18.5 10% • Higher inflation slowed Q318 growth to 8% Sales by co. restos 18.4 16.7 10% • SSSG: 9M18 +3.8%; Q318 flat Rent, royalty & others 1.9 1.8 8%
Slide 47: GADC: Interim weakness in spending
GADC: Interim weakness in spending 27% 603 23% 22% 24% 23% 23% 520 566 47 14% 20% 481 45 63 6.8% 6.6% 457 40 56 5.9% 408 35 35 48 10% 9% 5.3% 5.2% 5.7% 42 45 8% 9% 6.6% 30 35 238 8% 8% 221 5.8% 5.8% 202 6% 168 180 6% 6% 7.1 6.6 6.9 6.8 5.3% 5.2% 4.9% 151 5% 5% 5% 6.3 6.3 5.9 4% 3.8% 1.0 221 230 244
Slide 48: Initiative: McDonald's NXTGEN stores
Initiative: McDonald’s NXTGEN stores 48
Slide 49: Infracorp
INFRACORP AN ALLIANCE GLOBAL COMPANY
Slide 50: Fort Bonifacio - Makati Skytrain
Fort Bonifacio - Makati Skytrain JUNE- 1 . 8 8 k m M o n o ra i l OCT MAY 3Q P ro j e c t 2017 2018 PRESENT 2019* A u t o m a te d C a b l e - P ro p e l l e d M o n o ra i l Submission of DOTr grant NEDA Estimated project To c o n n e c t M R T 3 unsolicited of Original evaluation award G u a
Slide 51: NAIA consortium
NAIA consortium FEB SEP SEP- 4Q 2018 2018 PRESENT 2019* Submission of DOTr-MIAA NEDA Estimated project unsolicited grant of Original evaluation award proposal Proponent Status *subject to change 51
Slide 52: Key Messages
Key Messages • • • • • • • • • • • • • • • • • • • •
Slide 53: End of Presentation
WA ALLIANCE GLOBAL End of Presentation
Alliance Global Group — UBS Philippines CEO/CFO Forum 2019 on 6ix