Alliance Global Group Inc. · PSE:AGI
Alliance Global — 9M2024 Earnings Presentation
39 slides from Alliance Global's earnings presentation, Nov 19, 2024
Slide 1: 9M2024 Analysts' Briefing
9M2024 ANALYSTS’ BRIEFING 19 NOVEMBER 2024
Slide 2: 3Q24/9M24 Performance Highlights - AGI
3Q24/9M24 Performance Highlights - AGI Revenue Pre-minority Income Attributable Income 22% 37% Revenue 161.6 Share 150.4 15% 20.1 20.0 12.9 13.0 27% 1% 4% 54.1 28% 51.3 6.2 4.2 Profit 6.0 3.7 Share 67% 3Q23 3Q24 9M23 9M24 3Q23 3Q24 9M23 9M24 3Q23 3Q24 9M23 9M24 MEG EMI TRAV GADC 2
Slide 3: AGI 3Q24/9M24 Financial Performance
AGI 3Q24/9M24 Financial Performance In Pbn 3Q24 2Q24 QoQ chg 3Q23 YoY chg 9M24 9M23 YoY chg • Healthy topline driven by real Group Revenues 54.1 56.8 -5% 51.3 5% 161.6 150.4 7% estate, hospitality and QSR Megaworld 20.6 20.2 2% 16.4 26% 59.6 48.3 23% businesses, but cost increases Emperador 14.4 15
Slide 4: AGI Gross Borrowings and Gearing
AGI 3Q24/9M24 Financial Performance Gross Borrowings AGI Gearing Net debt (cash) Net debt/equity MEG EMI TRAV GADC Parent & others 0.48x 0.49x 0.47x 0.40x 0.36x 0.36x 235 0.32x 218 222 215 214 209 43 165 39 40 40 36 42 0 2 1 145 142 0 2 1 139 138 53 60 57 56 119 119 60 52 26 32 34 25 24 37 94 95 103
Slide 5: 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 0.30x 0.08x 0.28x 0.46x 0.07x 0.26x 1.44x 1.39x 0.39x 83.4 1.24x 0.0
Slide 6: Capital Expenditure
Capital Expenditure CAPEX, by subsidiary 75 4 Capex spent in 63 66 10 9M2024 : P53bn 2 57 4 53 6 11 3 4 71% of the FY2024 48 5 5 4 2 budget 1 4 4 36 6 6 2 FY2024 budget: 1 P75bn 7 1 55 48 46 50 38 39 GADC 28 TRAV EMI MEG 2019 2020 2021 2022 2023 9M24 2024E 6
Slide 7: Enhancing Shareholder Value
Enhancing Shareholder Value SHARE BUYBACK PROGRAM AGI MEG • Buyback program size: P9.0bn • Buyback program size: P5.0bn • Amount utilized: P8.3bn (92%) 55% • Amount utilized: P2.7bn (55%) 92% • 730m shares bought at an average price • 1.1m shares bought at an average price P11.39 per share. P2.59 pe
Slide 8: Megaworld Corporation
Megaworld Corporation 9M2024 Financial Performance 34 4,430 1,474 Township and Integrated Landbank Office GLA Lifestyle Communities (has) (‘000 sqm) 517 5,013 Lifestyle Malls GLA Hotel (‘000 sqm) Room Keys 8
Slide 9: MEG 3Q24/9M24 Financial Performance
MEG 3Q24/9M24 Financial Performance In Pbn 3Q24 2Q24 QoQ chg 3Q23 YoY chg 9M24 9M23 YoY chg • Continued rise in residential Revenues 20.7 20.2 2% 16.6 25% 59.8 48.6 23% sales amid higher demand and Residential 13.0 12.7 3% 10.0 31% 37.8 29.1 30% increased construction activity. Office 3.3 3.2 5% 3.1
Slide 10: MEG P&L Performance - Quarterly
MEG P&L Performance - Quarterly REVENUE EBITDA NET INCOME Development Rental Hotels Development Rental Hotels 55.6 26.5 13.7 3.6 0.5 12.0 45.0 22.0 14.2 2.6 0.4 13.4 13.3 12.1 19.4 19.1 5.3 5.2 15.4 17.9 18.6 9.1 8.5 9.0 9.0 4.4 14.6 15.0 1.2 1.2 1.3 37.8 7.2 7.7 4.1 3.8 4.1 4.1 1.1 7.1 0.2 0.2 0.2
Slide 11: MEG Key Operating Segments - Quarterly
MEG 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 Rentals EBITDA EBITDA Margin Rentals Rentals EBITDA EBITDA Margin 21% 50% 50% 50% 50% 50% 88% 88% 88% 89% 88% 88% 88% 88% 88% 17%
Slide 12: 34 Townships
34 TOWNSHIPS 5,437 hectares • 32nd Township • 150 hectares • P5bn development capex for 10 years • 33rd Township • 25 hectares • P12bn development capex for 5-7 years • 34th Township • 84 hectares 12 • P15bn development capex for 10 years
Slide 13: Marhaba Boracay
MARHABA BORACAY Boracay Newcoast’s Muslim-friendly beach destination 13
Slide 14: Reservation Sales, Project Launches, Capital Spending
RESERVATION SALES PROJECT LAUNCHES CAPITAL SPENDING P102bn vs P145bn FY2024 target P25bn vs P40bn FY2024 target P39bn vs P55bn FY2024 target 14
Slide 15: Premier Offices and Lifestyle Malls Pipeline
PREMIER OFFICES LIFESTYLE MALLS 148k 2024-2026 PIPELINE 151k 2024-2026 PIPELINE 15
Slide 16: Travellers International Hotel Group, Inc.
Travellers International Hotel Group, Inc. 9M2024 Financial Performance 2,742 5 84% Hotel International Hotel Occupancy Room Keys Hotel Brands (9M2024) 498 2,376 VIP and Mass Slots Gaming Tables 16
Slide 17: Travellers 3Q24/9M24 Financial Performance
Travellers 3Q24/9M24 Financial Performance In Pbn 3Q24 2Q24 QoQ chg 3Q23 YoY chg 9M24 9M23 YoY chg • Weaker YoY topline in 3Q24 Total Gross Revenues 9.6 10.9 -11% 10.0 -4% 29.7 30.9 -4% weighed by lower GGR, but cushioned by growth in non-gaming Gross Gaming Revenue 7.9 9.0 -12% 8.3 -5% 24.3 25.9 -6
Slide 18: Travellers P&L Performance - Quarterly
Travellers P&L Performance - Quarterly NET REVENUE EBITDA GROSS REVENUES EBITDA Gross Gaming Non-Gaming 6.0 6.1 30.9 29.7 5.0 5.4 2.6 2.1 2.2 2.2 2.0 10.7 10.9 25.9 10.3 10.0 10.3 9.6 24.3 1.7 9.2 1.4 1.8 1.5 2.0 1.9 1.7 1.7 1.8 8.9 8.7 8.3 8.3 9.0 7.9 7.5 Q123Q223Q323Q423Q124Q224Q324 9M239M24 Q123
Slide 19: Travellers Key Operating Segments - Quarterly
Travellers Key Operating Segments - Quarterly GGR: MASS vs VIP AVERAGE DAILY VISITORS Mass VIP 25.9 24.3 44.1 41.8 41.8 42.2 40.7 38.7 37.6 37.4 36.5 14.5 11.2 8.9 8.7 9.0 8.3 8.3 7.9 7.5 5.0 3.9 3.8 4.5 13.1 5.5 3.2 3.6 11.5 3.4 3.7 4.4 4.5 4.3 4.5 4.3 Q123 Q223 Q323 Q423 Q124 Q224 Q324 9M239M24 Q1
Slide 20: Travellers: Offering World-Class Experience
Travellers: Offering World-Class Experience Hotel Okura Manila Gordon Ramsay Bar & Grill Debut in the Michelin Guide of 2024 The first Gordon Ramsay restaurant First and only hotel in an integrated resort complex included in the list. in the country 20 20
Slide 21: Travellers Expansion Plans
Travellers Expansion Plans Boracay Newcoast Mactan Newtown 21
Slide 22: Upcoming Project: Westside City
Upcoming Project: Westside City 22
Slide 23: AGI – The biggest player in the PH leisure and tourism sector
AGI – The biggest player in the PH leisure and tourism sector CURRENT PORTFOLIO CURRENT PORTFOLIO 5,013 2,742 Hotel Room Keys Hotel Room Keys 23
Slide 24: AGI is targeting 12,000 room keys by 2029
AGI is targeting 12,000 room keys by 2029 Chancellor Hotel Belmont Hotel Kingsford Hotel Savoy Hotel Paragua Sands Boracay Iloilo Bacolod Palawan Hotel 554 Boracay 405 Iloilo 288 Upper 462 Paragua Coastown 313 Paragua rooms Newcoast rooms Business Park rooms East rooms rooms Coastown Grand Westside
Slide 25: AGI Pursuing Expansion of MICE Venues
AGI Pursuing Expansion of MICE Venues 4,000 seating capacity 1,200 seating capacity 2,500 seating capacity 25 Marriott Grand Ballroom Boracay Newcoast Convention Center Mactan Expo Center
Slide 26: Emperador Inc.
Emperador Inc. 9M2024 Financial Performance 6 5 Vineyards Distilleries in Spain in Scotland >100 25 Countries under Domestic Global Distribution System Sales Office 26
Slide 27: EMI 3Q24/9M24 Financial Performance
EMI 3Q24/9M24 Financial Performance In Pbn 3Q24 2Q24 QoQ chg 3Q23 YoY chg 9M24 9M23 YoY chg • Lower whisky and brandy sales Revenues 14.6 15.5 -6% 16.0 -9% 43.2 47.1 -8% reflect the general weakness in Brandy 8.3 8.8 -6% 9.2 -9% 25.0 27.8 -10% spending in the domestic and global market. Whisky 6.2 6
Slide 28: EMI P&L Performance - Quarterly
EMI P&L Performance - Quarterly NET REVENUE EBITDA REVENUES ATTRIBUTABLE INCOME* Brandy Whisky Brandy Whisky 47.1 43.2 6.8 19.3 18.2 4.8 3.9 18.6 3.0 15.6 15.5 16.0 15.5 14.6 2.4 2.3 6.4 13.1 2.1 2.1 5.8 27.8 1.9 1.7 6.7 6.8 6.7 25.0 6.2 1.3 1.4 5.2 1.2 1.2 1.0 1.0 2.8 0.9 12.1 1.8 9.8 8.9 9.2 8.8 8
Slide 29: EMI Key Operating Segments - Quarterly
EMI Key Operating Segments - Quarterly WHISKY REVENUE, BRANDYEBITDA REVENUE, GROSS PROFIT , MARGIN GROSS PROFIT , MARGIN Whisky revenue Gross profit Margin Brandy revenue Gross profit Margin 31% 46% 29% 28% 44% 44% 44% 25% 43% 43% 43% 24% 24% 23% 42% 42% 27.8 19.3 18.2 20% 18% 25.0 8.6 7.9 12.1 6.7
Slide 30: Whyte and Mackay 10-Year Anniversary with Emperador Inc.
Whyte and Mackay 10–Year Anniversary with Emperador Inc. 30
Slide 31: Emperador Expansion Projects
Emperador Expansion Projects Dalmore Distillery Invergordon Distillery Doubling the Production Capacity Expansion of Maturation Complex Expected to be completed by end-2024 Doubling footprint to 92 hectares and to build 120 new warehouses to cater future demand in the coming decades for an additiona
Slide 32: Golden Arches Development Corporation
Golden Arches Development Corporation 9M2024 Financial Performance 764 554 Store McDelivery Count Hubs 465 627 Stores with NXTGEN Drive-thru Stores 32
Slide 33: GADC 3Q24/9M24 Financial Performance
GADC 3Q24/9M24 Financial Performance In Pbn 3Q24 2Q24 QoQ chg 3Q23 YoY chg 9M24 9M23 YoY chg Systemwide Sales 19.3 20.1 -4% 18.3 6% 58.9 53.5 10% • Sustained rise in systemwide sales amid significant product enhancements and promotional Sales Revenues 11.6 11.7 -1% 10.6 9% 34.6 30.7 12% activities,
Slide 34: GADC P&L Performance - Quarterly
GADC P&L Performance - Quarterly NET SALES REVENUE REVENUE EBITDA INCOME ATTRIBUTABLE SALES REVENUES ATTRIBUTABLE INCOME Rent, Royalty, & Others Sales by co-operated restaurants 1.5 34.6 1.2 30.7 3.0 2.8 1.1 0.6 0.6 31.5 28.0 0.5 0.5 12.111.7 11.6 9.9 10.2 10.6 1.1 11.3 1.1 1.0 0.4 1.0 0.9 0.9 1.0 9
Slide 35: GADC Key Operating Metrics - Quarterly
GADC Key Operating Metrics - Quarterly SALES, GROSS PROFIT, SYSTEMWIDE SAME- NUMBER OF STORES MARGIN STORE SALES GROWTH Sales Revenues Gross Profit GP Margin Quarterly End-of-period NCR Luzon Visayas Mindanao 26% 28% 24% 23% 23% 23% 23% 28% 22% 22% 22% 740 764 20% 34.6 19% 704 669 671 62 655 59 30.7
Slide 36: GADC Expansion Plan
GADC Expansion Plan 9M2024 2024 Target 764 60 stores new stores 36
Slide 37: McDonald's ReClassified
McDonald’s ReClassified A store renovated, a classroom upgraded. 37
Slide 38: Key Takeaways
Key Takeaways AGI’s real estate, QSR and hospitality segments drove its 3Q24/9M24 topline growth, mitigating the impact of elevated inflation and global macro weakness on overall performance. AGI has ongoing capital expansion projects carried out by all its subsidiaries, which are expected to be its
Slide 39: 9M2024 Analysts' Briefing
9M2024 ANALYSTS’ BRIEFING 19 NOVEMBER 2024