Alliance Global Group Inc. · PSE:AGI
Alliance Global — 9M2019 Earnings Presentation
39 slides from Alliance Global's earnings presentation, Nov 15, 2019
Slide 1: 9M2019 Analysts' Briefing
9M2019 ANALYSTS’ 1Q2019 ANALYSTS BRIEFING BRIEFING 21 May 2019 15 NOVEMBER 2019 1
Slide 2: AGI by the numbers
AGI by the numbers 127 6,164 Consolidated 6 revenue (Pbn) Hotel room Parent keys net debt/equity (%) 609 12.8 Total resources (Pbn) Attributable net income (Pbn) 2
Slide 3: AGI 9M19 P&L highlights
AGI 9M19 P&L highlights Revenue Share AGI P&L highlights P&L highlights of subsidiaries 9M2019 In Pbn In Pbn 18% MEG 9M18 9M19 38% MEG EMP RWM GADC EMP 17% 127.0 48.1 RWM GADC 108.8 27% 33.8 25.5 23.1 Attributable income share 1% 5% 12.8 18.7 19.3 MEG 12.0 12.8 5.3 EMP 32% 0.8 1.2 RWM 62% GADC Reven
Slide 4: AGI 9M19 financial performance
AGI 9M19 financial performance in Pbn Q319 Q318 % chg 9M19 9M18 % chg Comments Group revenues 44.2 37.1 19% 127.0 108.8 17% Megaworld 16.0 14.1 14% 47.7 41.0 16% Stronger growth across all segments. Emperador 12.3 10.9 12% 33.7 30.4 11% Driven by improved brandy and whisky sales. Travellers 7.5 4.7
Slide 5: Group investment commitments
Group investment commitments AGI’s capex by major subsidiary (Pbn) 87 85 1 77 • Total capex budget 10 72 1 71 70 3 13 2019: P85bn. 1 11 2 2 10 3 11 36 6 15 48 • Capex spent 9M19: 15 9 2 2 7 65 2 P48bn. 55 49 49 51 40 38 • Target 2020-24 2014 2015 2016 2017 2018 2019E Sep 19 capex: P410bn. MEG EMP RW
Slide 6: Group borrowings
Group borrowings Gross debts, by key subsidiary (Pbn) 208 181 198 • At end-Sep 2019, Group 144 37 36 1 borrowings: P208bn 35 1 118 1 61 45 97 20 30 2 31 • Net debt/equity: 0.51x (vs 0.48x in 2018). 2 22 39 19 14 38 38 2 29 13 29 29 75 76 73 34 53 61 • Parent net debt/equity stood at 0.06x. 2014 2015
Slide 7: Group gearing
Group gearing 0.51x 0.36x 0.54x 1.28x 0.48x 0.48x 0.48x 0.31x 0.31x 0.42x 0.27x 0.37x 0.35x 0.22x 0.77x 0.54x 0.17x 0.07x 0.00x 0.26x 0.02x -0.13x 19.2 28.0 33.0 31.5 0.05x -0.11x 1.9 11.6 23.7 35.1 49.9 (6.2) (0.0) 4.3 38.9 87.1 113.9 138.9 149.8 8.4 29.8 44.8 58.5 58.2 54.6 (4.4) 2014 2015 2016 20
Slide 8: Megaworld Corporation 9M2019 Performance Highlights
MEGAWORLD CORPORATION 9M2019 PERFORMANCE HIGHLIGHTS 8
Slide 9: MEG by the numbers
MEG by the numbers 4,688 25 Landbank 3,637 (has) Townships & integrated Hotel Room lifestyle Keys communities 1,119 700 Office GLA (‘000 sqm) Lifestyle Mall GFA (‘000 sqm) 9
Slide 10: MEG: 9M2019 financial performance
MEG: 9M2019 financial performance P&L (in Pbn) 9M2019 9M2018 chg Revenue 48.1 41.3 17% • Stronger growth from all segments Gross Profit Margin Residential 30.7 27.6 11% • Higher project completion 45% 47% 9M2019 9M2018 Office 7.8 6.4 21% • Capacity expansions; rent adjustments Retail 4.7 4.0 15% Hot
Slide 11: MEG: Quarterly operational performance
MEG: Quarterly operational performance REVENUE EBITDA EBIT 7.3 7.5 7.0 7.1 7.0 6.5 6.7 6.9 15.6 15.4 0.1 6.4 6.4 14.8 0.2 14.0 0.7 6.2 6.2 0.1 0.2 0.1 0.1 0.1 13.3 13.5 0.6 5.7 5.7 0.1 0.1 0.1 0.5 0.1 0.1 12.2 0.3 0.6 0.1 0.1 0.3 4.2 4.3 0.4 3.8 3.4 4.0 4.0 3.5 3.7 3.9 3.7 3.7 3.0 3.1 3.5 3.4 3.2 3.
Slide 12: Intensifying township development
Intensifying township development 25 Townships *2 Integrated Lifestyle community 4,279 hectares 2019 24 has 251 has 12
Slide 13: Growing the business
Growing the business Geographic diversification REAL ESTATE SALES BY LOCATION 26% 12% 9M19 2011 Expansion in rental capacities 74% Office GLA Lifestyle Mall GFA 88% (‘000 sqm) (‘000 sqm) 1,490 955 1,119 700 2018 2021E 2018 2021E 13
Slide 14: Did you know?
Did you know? • 18-storey hotel that features 547 fully-furnished rooms and suites distinctly designed for leisure and business stays. • One of the most highly accessible hotels in Cebu, the property is strategically located in the city’s business and lifestyle hub. • Minutes away from Newtown Beach
Slide 15: Travellers International Hotel Group 9M2019 Performance Highlights
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. 9M2019 PERFORMANCE HIGHLIGHTS 15
Slide 16: RWM by the numbers
RWM by the numbers 6 2,527 International 4,000 Hotel Brands Hotel room Marriott Grand keys Ballroom capacity 78 95 Hotel occupancy (%) Retail outlets 16
Slide 17: RWM: 9M2019 financial highlights
RWM: 9M2019 financial highlights P&L (in Pbn) 9M2019 9M2018 chg Gross revenues 25.5 17.0 50% EBITDA Margin Gaming 20.9 13.8 52% Mass 11.8 8.9 32% • Improvement in volumes and hold rates 7% 10% 9M2019 9M2018 VIP 9.1 4.8 88% Non-gaming 4.6 3.2 43% • Increased hotel capacities EBITDA 4.1 3.2 27% • High
Slide 18: RWM: Quarterly operational performance
RWM: Quarterly operational performance GROSS GGR: AVERAGE DAILY REVENUES MASS VS VIP VISITORS 8.9 7.3 8.5 6.9 38 8.1 6.6 35 36 7.7 6.3 1.6 33 1.6 1.4 2.9 5.9 1.5 28 5.6 4.7 3.3 26 5.5 4.5 4.5 2.9 25 2.9 1.2 1.0 1.1 1.5 1.5 1.8 6.9 7.3 6.3 6.6 4.4 4.5 4.5 4.7 3.6 3.8 3.0 3.2 3.3 2.7 Q118 Q218 Q318 Q4
Slide 19: Growing the business
Growing the business Casino Upgrade of expansion Newport Mall Development of new Hotel rebranding site – Westside City into Ritz-Carlton Resorts World 19
Slide 20: Did you know?
Did you know? • Grab flavorful bites and cool down with our signature drinks as you enjoy world- class entertainment from world-class local and international performers. • Seating capacity of 130 guests 20
Slide 21: Hotel Segment 9M2019 Performance Highlights
HOTEL SEGMENT 9M2019 PERFORMANCE HIGHLIGHTS 21
Slide 22: AGI: combined hospitality business
3,637 room keys AGI: combined Well-known Home-Grown Hotel Brands hospitality business under Travellers Eastwood Richmonde Hotel Richmonde Hotel Ortigas Richmonde Hotel Iloilo Fairways & Bluewater Belmont Hotel Manila Savoy Hotel Boracay +9% CAGR Savoy Hotel Manila 5.4 Twin Lakes Hotel 5.0 Lucky Chin
Slide 23: Emperador Inc. 9M2019 Performance Highlights
EMPERADOR INC. 9M2019 PERFORMANCE HIGHLIGHTS 23
Slide 24: EMP by the numbers
EMP by the numbers 1,513 105 Vineyards (has) Countries under the global distribution system 55 25 Countries where EDI local brands are being distributed Domestic sales offices 24
Slide 25: EMP: 9M2019 financial performance
EMP: 9M2019 financial performance P&L (in Pbn) 9M2019 9M2018 chg Revenue 33.8 30.6 11% Gross Profit Margin Whisky 9.9 9.4 5% • Strong sales capped by currency translation 37% 37% 9M2019 9M2018 • Driven by premium brandy and new product Brandy 24.8 21.5 16% introductions Gross Profit 12.1 10.9 11% Wh
Slide 26: EMP: Quarterly operational performance
EMP: Quarterly operational performance CONSOLIDATED REVENUE NET INCOME 16.5 2.0 2.0 4.1 12.4 1.7 1.7 1.6 1.6 1.5 0.6 11.0 11.0 0.6 9.7 9.8 10.4 3.6 0.5 0.4 0.4 0.7 0.3 3.2 3.3 2.8 2.8 3.3 12.4 1.4 1.5 8.7 1.2 1.2 1.2 1.2 7.9 7.7 7.7 1.1 6.9 6.5 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q118 Q218 Q318 Q418
Slide 27: EMP: Quarterly operational performance
EMP: Quarterly operational performance WHISKY REVENUE*, BRANDY REVENUE*, GROSS PROFIT, MARGIN GROSS PROFIT, MARGIN 47% 34% 36% 35% 45% 33% 33% 42% 30% 39% 40% 27% 38% 34% 4.1 3.7 13.0 3.3 3.2 3.4 2.8 2.8 9.3 7.0 7.9 7.8 7.7 6.6 1.4 1.6 1.4 1.6 1.1 1.3 1.1 3.5 2.4 2.5 2.5 3.2 2.3 2.3 Q118 Q218 Q318 Q
Slide 28: Growing the business
Growing the business New product introductions Premiumization Strategy Expanding distribution network 28
Slide 29: Jura Seven Wood
Did JURA SEVEN WOOD you SERVED AFTER SEVEN know? • Aside from enjoying neat, here’s how you can enjoy our Jura Seven Wood: Take a sip of the Seven Wood, a bite of mint chocolate and a sip of coffee espresso. • It’s not your usual drink , but who wants ordinary? 29
Slide 30: Golden Arches Development Corporation 9M2019 Performance Highlights
GOLDEN ARCHES DEVELOPMENT CORPORATION GOLDEN ARCHES DEVELOPMENT CORPORATION 9M2019 PERFORMANCE HIGHLIGHTS 30
Slide 31: GADC by the numbers
GADC by the numbers 652 6.0 Store 270 count Systemwide same store Dessert sales growth centers (%) 270 380 Stores with drive-thru McDelivery Hub 31
Slide 32: GADC: 9M2019 financial performance
GADC: 9M2019 financial performance P&L (in Pbn) 9M2019 9M2018 chg Systemwide sales 39.8 34.4 16% • Store expansion, higher average sales per store Gross Profit Margin Sales revenues 23.1 20.3 14% 21% 22% Sales by co. restos 20.6 18.4 12% • SSSG at 6.0% in 9M19, 7.0% in 3Q19 9M2019 9M2018 Rent, royal
Slide 33: GADC: Quarterly operational performance
GADC: Quarterly operational performance SALES, SYSTEMWIDE SAME- STORE GEOGRAPHIC GROSS PROFIT, MARGIN STORE SALES GROWTH DISTRIBUTION 24% 23% 23% 652 21% 22% 7.0% 620 20% 21% 6.6% 55 6.0% 566 51 6.2% 520 68 5.7% 481 45 64 5.5% 40 56 4.9% 35 48 4.4% 4.8% 45 249 268 4.0% 221 202 8.0 8.0 3.8% 180 7.5 7
Slide 34: McDonald's world class experience
McDonald’s world class experience 106 NXT GEN stores nationwide 34
Slide 35: Chicken McNuggets
Did CHICKEN you McNUGGETS know? • At a grand total of 1,880 calories, the 40-piece Chicken McNuggets are the highest calorie item on the regular menu. • That’s more calories than many adults should consume in a single day. 35
Slide 36: Infracorp
INFRACORP AN ALLIANCE GLOBAL COMPANY 36
Slide 37: Foray into infrastructure
Foray into infrastructure Fort Bonifacio-Makati Skytrain NEDA evaluation Oct 2017 May 2018 4Q 2019 *subject to change On-going Submission DOTr grant Estimated of of Original project unsolicited Proponent award proposal Status NAIA upgrade 37
Slide 38: Key takeaways
Key takeaways Megaworld • Continued margin improvement with increasing share of recurring income. • Higher project completion. • More project launches outside of Metro Manila. Travellers • Sustained growth in GGR , non-gaming revenues but higher depreciation and interest. • Ramping up the casino and
Slide 39: End of presentation
END OF PRESENTATION 1Q2019 ANALYSTS BRIEFING 21 May 2019 43