Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2019 Earnings Presentation
44 slides from Alliance Global's earnings presentation, Aug 14, 2019
Slide 1: 1H2019 Analysts' Briefing
1H2019 ANALYSTS’ 1Q2019 ANALYSTS BRIEFING BRIEFING 21 May 2019 14 AUGUST 2019
Slide 2: AGI by the numbers
AGI by the numbers 5,175 593 82.8 8.1 7 Hotel room Total resources Consolidated revenue Attributable Parent net keys (Pbn) (Pbn) net income debt/equity (Pbn) (%)
Slide 3: AGI P&L highlights
AGI P&L highlights AGI P&L highlights (Pbn) P&L highlights of subsidiaries 1H2019 (Pbn) 1H18 1H19 MEG EMP RWM GADC 82.8 31.7 71.7 21.5 15.4 13.6 8.3 12.4 12.5 7.8 8.1 3.3 0.8 0.8 Revenue Revenue Revenue Revenue Profit Profit Profit Profit Revenues Pre-minority Attributable income profit 3
Slide 4: AGI Q219 P&L highlights
AGI Q219 P&L highlights P&L highlights (Pbn) Q219 Q218 % chg Comments Group revenues 41.8 37.3 12% Megaworld 16.8 14.0 20% Rentals +23%; residential +12%. Emperador 10.4 9.7 7% Higher foreign brandy sales; whisky sales weighed by FX. Travellers 6.7 6.2 8% Sustained volume growth; better hold rates.
Slide 5: AGI 1H2019 P&L highlights
AGI 1H2019 P&L highlights P&L highlights (Pbn) 1H19 1H18 % chg Comments Group revenues 82.8 71.7 15% Megaworld 31.6 26.9 18% Rentals +20%; residential +11%. Emperador 21.4 19.5 10% Driven by brandy sales +15%; FX impacts on whisky sales. Travellers 13.7 10.9 25% >50% volume growth; better table hold
Slide 6: AGI P&L highlights
AGI P&L highlights 1H2019 Consolidated Revenues 1H2019 Attributable Net Income (Pbn) P82.8bn P8.1bn 1% 3% 5% 19% 38% 30% 16% 62% 26% MEG EMP RWM GADC OTHERS MEG EMP RWM GADC 6
Slide 7: Group investment commitments
Group investment commitments AGI’s capex by major subsidiary (Pbn) P30bn 87 77 85 • Total capex budget 1 10 72 1 71 70 3 13 for 2019: P85bn. • Capex spent in 1H2019: 1 11 2 2 10 3 11 15 P30bn. 36 6 15 9 2 30 65 14 • Target 2020-24 capex: 55 P410bn. 49 49 51 1 40 23 2014 2015 2016 2017 2018 2019E Jun
Slide 8: Group borrowings
Group borrowings Gross debts, by key subsidiary (Pbn) P195bn 198 195 181 144 35 37 1 36 1 • At end-June 2019, Group 118 30 1 31 45 50 borrowings stood at 97 20 2 2 22 38 39 P195bn, while net debt/equity steady at 19 14 38 2 29 13 29 29 61 75 76 70 0.48x (vs 0.48x in 2018). 53 34 2014 2015 2016 2017
Slide 9: Group gearing
Group gearing 0.48x 0.48x 0.36x 0.54x 0.50x 0.48x 0.85x 0.42x 0.31x 0.31x 0.77x 0.28x 0.37x 0.35x 0.22x 0.54x 0.17x 0.26x 0.07x 0.00x 0.05x -0.13x 19.2 28.0 33.0 31.5 0.02x -0.11x 1.9 11.6 23.7 35.1 39.3 (6.2) (0.0) (4.4) 4.3 38.9 87.1 113.9 138.9 141.5 8.4 29.8 44.8 58.5 58.2 54.9 2014 2015 2016 20
Slide 10: Megaworld Corporation 1H2019 Performance Highlights
MEGAWORLD CORPORATION 1H2019 PERFORMANCE HIGHLIGHTS 10
Slide 11: MEG by the numbers
MEG by the numbers 24 4,688 1,119 700 2,648 Townships & Landbank Office GLA Lifestyle Mall GFA Hotel Room integrated lifestyle (hectares) (‘000 sqm) (‘000 sqm) Keys communities 11
Slide 12: MEG: 1H2019 financial performance
MEG: 1H2019 financial performance P&L (in Pbn) 1H2019 1H2018 % Revenue 31.7 27.0 18% • Increasing share of recurring income. Gross profit margin • Higher project completion; reservation Residential 20.2 18.1 11% sales +5%. 45% 46% Office 5.1 4.2 21% 1H2019 1H2018 • Capacity expansions, higher rents
Slide 13: MEG: Quarterly operational performance
MEG: Quarterly operational performance REVENUE EBITDA EBIT 15.6 6.8 6.7 7.4 7.3 6.4 14.2 13.9 14.0 7.0 6.2 0.1 13.3 0.7 6.7 0.2 0.2 5.7 5.7 0.1 0.1 12.2 0.3 0.5 0.6 6.2 6.2 0.1 0.1 0.3 4.2 0.1 0.1 0.1 0.4 3.7 0.1 0.1 3.1 3.4 3.8 3.9 3.7 3.5 4.0 3.0 3.2 3.4 3.4 3.7 2.7 2.8 3.1 3.2 9.6 10.3 9.6 10.7 8
Slide 14: MEG: Quarterly segment margins
MEG: Quarterly segment margins REAL ESTATE SALES vs RENTAL vs EBITDA HOTEL vs EBITDA GROSS PROFIT 51% 88% 88% 89% 28% 27% 32% 46% 46% 46% 87% 88% 87% 23% 25% 44% 44% 21% 4.2 3.8 3.7 3.9 4.0 710 13.9 3.7 3.7 3.4 3.4 3.4 3.1 3.2 574 10.7 489 9.6 9.5 8.5 368 347 6.1 315 5.5 4.4 4.4 4.7 3.9 3.7 103 95 1
Slide 15: Initiative: Geographic diversification
Initiative: Geographic diversification RESIDENTIAL PROJECT LAUNCHES BY LOCATION LANDBANK 1H19 74% 26% 2011 90% 10% REAL ESTATE SALES BY LOCATION 1H19 74% 26% 2011 88% 12% Metro Manila Provincial
Slide 16: Initiative: Expansion of rental segment
Initiative: Expansion of rental segment 1.1m Gross leasing area 700k Gross floor area sqm sqm ( ‘000 sqm) ( ‘000 sqm) 1,527 1,034 1,119 1,013 700 851 616 737 511 621 291 330 2014 2015 2016 2017 2018 2021E 2014 2015 2016 2017 2018 2021E 16
Slide 17: Flood-free townships
Did you know? Flood-free townships Our townships have WATER CATCHMENT FACILITIES. They ensure proper flow and collection of rainwater and other waste water. These are recycled for flushing and landscape irrigation.
Slide 18: Travellers International Hotel Group 1H2019 Performance Highlights
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. 1H2019 PERFORMANCE HIGHLIGHTS 18
Slide 19: RWM by the numbers
RWM by the numbers 2,527 78 301 1,802 4,000 Hotel Hotel Gaming Slots Marriott Grand rooms occupancy tables Ballroom (%) capacity
Slide 20: RWM 1H2019 financial highlights
RWM 1H2019 financial highlights P&L (in Pbn) 1H2019 1H2018 % Gross revenues 16.6 11.1 50% Gross profit margin Gaming 13.5 9.0 50% • Improvement in volume; 5.1% blended hold rate. 39% 38% Mass 7.3 5.7 29% • Mass drop +31% but lower slots hold rate 1H2019 1H2018 VIP 6.2 3.3 86% • Rolling volume +67%;
Slide 21: RWM: Quarterly operational performance
RWM: Quarterly operational performance GROSS REVENUES GGR: MASS VS VIP EBITDA VS MARGIN AVERAGE DAILY VISITORS 33 35 36 8.5 6.9 6.6 8.1 6.3 40% 28 7.7 26 1.6 25 1.4 5.6 5.9 1.5 4.7 17% 18% 19 19 5.5 4.5 4.5 3.3 2.9 15% 17 1.2 2.9 3% 8% 14 14 1.0 1.1 13 1.5 1.5 1.8 6.9 6.6 6.3 4.5 4.5 4.7 3.8 16 17 3
Slide 22: Initiative: Growing the businesses
Initiative: Growing the businesses Building Expanding world-class facilities casino operation ➢ Garden Wing ➢ Grand Wing ▪ Rebranding of the Maxims hotel into Ritz- ▪ Ground floor (completed) Carlton • 63 tables / 588 slots ▪ Upgrade of Newport Mall machines • Additional retail space of ~7,000 sqm ▪
Slide 23: Shop n Play
Did you know? Shop n Play Resorts World Manila is bringing you a different level of convenience! Shop n Play Center offers a variety of grocery items you can choose from - place your order thru our virtual store and pick up your grocery items the same day. Thus, allowing you to have thrilling playti
Slide 24: Hotel Segment 1H2019 Performance Highlights
HOTEL SEGMENT 1H2019 PERFORMANCE HIGHLIGHTS
Slide 25: AGI: combined hospitality business
AGI: combined hospitality business +9% CAGR 5.0 4.2 3.8 3.0 3.3 3.6 61% yoy 2.2 2014 2015 2016 2017 2018 1H18 1H19 At present Near-term target: 5,175 12,000 room keys room keys
Slide 26: 2,527 room keys / 2,648 room keys
2,527 room keys Well-known International Hotel Brands under Travellers ❖ Marriott Hotel Manila ❖ Sheraton Manila Hotel ❖ Maxims Hotel ❖ Courtyard by Marriott Coming soon! ❖ Hilton Hotel Manila ❖ Hotel Okura ❖ Holiday Inn Express ❖ Ritz Carlton Hotel 2,648 room keys Home-Grown Hotel Brands under Mega
Slide 27: Initiative: Developing destinations that promote tourism
Initiative: Developing destinations that promote tourism ❑ In the township that we build - arts, culture, history, and heritage will be part of the development’s overall character; ❑ This way, we don’t only build communities. We build destinations that promote Philippine tourism SOON TO OPEN! ILOMOC
Slide 28: Emperador Inc. 1H2019 Performance Highlights
EMPERADOR INC. 1H2019 PERFORMANCE HIGHLIGHTS 28
Slide 29: EMP by the numbers
EMP by the numbers 102 22 1,513 700 900 Countries under the Domestic sales Vineyards Whyte and Mackay Bodegas Fundador global distribution offices (hectares) trademarks trademarks system worldwide worldwide 29
Slide 30: EMP: 1H2019 financial performance
EMP: 1H2019 financial performance P&L (in Pbn) 1H2019 1H2018 % Revenue* 21.5 19.5 10% Gross Profit Margin Whisky 6.1 6.1 0% • Negative impact of GBP weakness. Brandy 15.3 13.4 15% • Driven by imported brands Fundador, Tres Cepas. 35% 37% 1H2019 1H2018 Gross Profit 7.3 7.1 4% Whisky 2.5 2.4 8% • Posi
Slide 31: EMP: Quarterly operational performance
EMP: Quarterly operational performance WHISKY REVENUE* BRANDY REVENUE* CONSOLIDATED REVENUE NET INCOME vs GROSS PROFIT vs GROSS PROFIT 47% 36% 16.5 42% 34% 33% 33% 2.0 38% 39% 40% 30% 27% 1.7 1.7 34% 4.1 1.6 1.6 0.6 1.5 11.0 9.7 9.8 11.0 10.4 0.5 0.4 0.4 0.7 0.3 3.2 3.3 2.8 4.1 2.8 3.3 3.3 3.4 13.0
Slide 32: The World's Best Brandy
Initiative: Expanding premium brandy portfolio The World’s Best Brandy International World Spirits Competition ❑ Super-premium Brandy de Jerez ❑ Available in Travel Retail across Europe and Asia, and in the Philippines c. P.12,800 32
Slide 33: Iceberg Museum
Did you know? Iceberg Museum Shackleton Whisky is bringing Antartic experience in Manila via a roving iceberg museum. The 15oC interactive experience is hosting a light and sound show and whisky tasting in Landers Arcovia City starting August 1. 33
Slide 34: Golden Arches Development Corporation 1H2019 Performance Highlights
GOLDEN ARCHES DEVELOPMENT CORPORATION GOLDEN ARCHES DEVELOPMENT CORPORATION 1H2019 PERFORMANCE HIGHLIGHTS 34
Slide 35: GADC by the numbers
GADC by the numbers 5.5 642 270 270 380 Systemwide same Store count Dessert centers Stores with McDelivery store sales growth drive-thru Hub (%) 35
Slide 36: GADC: 1H2019 financial performance
GADC: 1H2019 financial performance P&L (in Pbn) 1H2019 1H2018 % Systemwide sales 26.5 22.9 16% • Boosted by store expansion program Gross Profit Margin Sales revenues 15.4 13.5 14% 21% 23% Sales by co. restos 13.9 12.2 14% • SSSG at 5,5% in 1H19; 6.2% in 2Q19 1H2019 1H2018 Rent, royalty & others 1.5
Slide 37: GADC: Interim weakness in spending
GADC: Interim weakness in spending STORE GEOGRAPHIC SYSTEMWIDE SAME-STORE SALES VS GROSS PROFIT EBIT vs NET INCOME DISTRIBUTION SALES GROWTH 24% 12.3% 642 23% 23% 620 6.6% 21% 9.1% 566 54 6.2% 21% 8.2% 8.2% 7.8% 8.0% 520 51 5.7% 20% 6.3% 45 64 67 6.6% 5.5% 6.0% 481 4.8% 5.0% 5.1% 4.6% 40 56 3.6% 35
Slide 38: Initiative: McDonald's world class experience
Initiative: McDonald’s world class experience 77 NXT GEN stores nationwide
Slide 39: Initiative: Expanding delivery network
Initiative: Expanding delivery network 39
Slide 40: Speedee
Did you know? Speedee Speedee was the first McDonald's mascot before Ronald McDonald was created 1967 and portrayed by Willard Scott. 40
Slide 41: Infracorp
INFRACORP AN ALLIANCE GLOBAL COMPANY 41
Slide 42: Fort Bonifacio-Makati Skytrain Project Timeline
Fort Bonifacio-Makati Skytrain Project Timeline Oct May 3Q 2017 2018 On-going 2019* Submission of DOTr grant Estimated project unsolicited of Original NEDA award proposal Proponent Status evaluation *subject to change 42
Slide 43: NAIA rehabilitation Gateway Strategy
NAIA rehabilitation Gateway 2018 Present Strategy 31 MPPA capacity PHASE 1A: 2021 Terminal Improvements 47 MPPA Space Rationalization Optimize operation 2023 PHASE 1B: 65 MPPA New Terminals Airside Expansion 43
Slide 44: End of Presentation
END OF PRESENTATION 1Q2019 ANALYSTS BRIEFING 21 May 2019
Alliance Global Group — H1 2019 Earnings Presentation on 6ix