Alliance Global Group Inc. · PSE:AGI
Alliance Global — FY2022 Earnings Presentation
40 slides from Alliance Global's earnings presentation, Apr 13, 2023
Slide 1: A Premium-Lifestyle Conglomerate: Full Year 2022 Analysts' Briefing
A Premium-Lifestyle Conglomerate Full Year 2022 Analysts' Briefing April 13, 2023
Slide 2: Performance highlights
Performance highlights AGI P&L Highlights P&L Highlights, by key subsidiary Revenue Pre-minority Income Attributable Income MEG EMI NWR GADC Record-level revenues in 2022 96% of prepandemic level 93% of prepandemic level 179.2 183.6 26.4 59.5 62.8 25.2 146.9 17.2 128.8 19.9 16.1 15.0 34.4 26.9 8.8 1
Slide 3: 4Q22/FY22 financial performance
4Q22/FY22 financial performance in Pbn 4Q2022 3Q2022 QoQ chg 4Q2021 YoY chg 2022 2021 YoY chg Group revenues 55.2 45.8 21% 42.7 29% 183.6 152.8 20% Megaworld 16.9 15.0 13% 13.7 24% 59.2 50.3 18% • Sequential improvement in 2022 Emperador 19.5 14.4 35% 17.5 12% 61.6 55.4 11% group revenues driven by
Slide 4: Group Borrowings
Group Borrowings GROSS DEBTS, by key subsidiary AGI GEARING MEG EMP NWR GADC Parent & others Net debt (cash) Net debt/equity 0.48x 0.49x 0.47x 218 215 214 0.42x 209 198 0.36x 181 39 42 42 0.32x 36 37 2 0 2 1 35 1 1 57 54 52 60 45 31 34 25 24 38 39 37 86 94 95 75 76 76 114 139 145 138 119 119 2017 20
Slide 5: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT 0.08x 0.31x 0.54x 1.44x 1.39x 0.07x 0.28x (4.9) (5.2) (5.3) (6.6) (8.2) 0.46x 1.24x 0.26x 0.22x 0.39x 0.22x 0.99x 0.06x 0.20x 0.77x 0.04x 0.12x 0.03x -0.57x -0.65x -0.72x -0.81x -0.84x 58.2 52.8 45.7 49.8 66.8 33.0 29.5 29.7 15.5 11.1
Slide 6: Capital Expenditure
Capital Expenditure AGI CAPEX, by key subsidiary MEG EMP NWR GADC ▪ Capex spent in 2022: P57bn 74 71 70 (95% of 2022 budget of 60bn) 2 2 63 4 11 15 4 2 57 ▪ Capex budget in 2023: P70bn 7 2 11 3 9 48 5 2 1 4 6 36 2 1 7 55 1 55 49 48 46 38 28 2017 2018 2019 2020 2021 2022 2023E 6 All items are in bill
Slide 7: Share Buyback Program
Enhancing Shareholder Value Share Buyback Program AGI ▪ Buyback program size: P7.0bn 89% ▪ Amount utilized: P6.3bn (89%) ▪ 545.5m shares bought at an average price P11.46 per share. ▪ Implementation period: 30 months from October 2021 to April 2024 MEG ▪ Buyback program size: P5.0bn ▪ Amount utilize
Slide 8: Dividends
Enhancing Shareholder Value Dividends AGI ▪ Dividend per share: P0.12 ▪ Record date: Dec 1, 2022 ▪ Payment Date: Dec 22, 2022 MEG ▪ Dividend per share: P0.0615 ▪ Record date: Oct 31, 2022 ▪ Payment Date: Nov 14, 2022 EMI ▪ Dividend per share: P0.29 ▪ Record date: May 02, 2023 ▪ Payment Date: May 25,
Slide 9: AGI group supported UN Sustainable Development Goals
AGI group supported 17 UN Sustainable Development Goals 9 9
Slide 10: Open spaces in Megaworld townships; McDonald's Green and Good Program
40% open spaces McDonald’s in Megaworld townships Green and Good Program Green Building Solutions Utility Efficient Solutions Sustainable Active Mobility Sustainable Packaging 10
Slide 11: Water savings initiatives
331,000 GALLONS 10,000 - 15,000 cu. m. saved every year by optimizing the water flow of water reduced in 2022 for Bodegas rate of faucets and shower heads within Fundador by segregation and reuse of the Newport World Resorts complex washing water from must rectification 11
Slide 12: Urban Farm
URBAN FARM
Slide 13: Megaworld: FY2022 Financial Performance
FY2022 Financial Performance 30 5,000 1,400 484 4,713 Townships & Integrated Landbank Offices GLA Lifestyle Malls GLA Hotel Lifestyle Communities (has) ('000 sqm) ('000 sqm) Room Keys
Slide 14: Megaworld 4Q2022/FY2022 financial performance
4Q2022/FY2022 financial performance P&L summary (Pbn) 4Q2022 3Q2022 QoQ chg 4Q2021 YoY chg 2022 2021 YoY chg Revenue 17.1 15.0 14% 13.9 23% 59.5 50.8 17% Residential 10.7 9.2 16% 8.0 34% 36.8 31.1 18% • Rising mall occupancy rate to Office 3.1 3.1 2% 2.9 6% 12.2 11.1 11% 90% amid increased foot traf
Slide 15: Megaworld FY2022 performance vs pre-pandemic levels
FY2022 performance vs pre-pandemic levels REVENUE EBITDA NET INCOME 89% of pre-pandemic levels 89% of pre-pandemic levels 75% of pre-pandemic levels 62.0 30.2 17.9 2.5 55.1 0.6 26.7 2.6 16.8 46.4 22.0 0.5 13.4 13.5 39.3 1.9 15.7 15.9 17.7 0.3 1.5 13.3 9.9 14.2 0.0 12.9 12.1 11.7 42.6 36.8 31.1 13.6
Slide 16: Megaworld Quarterly Performance
Quarterly Performance REVENUE EBITDA NET INCOME 15.8 7.3 5.3 0.8 6.9 5.1 13.5 13.7 6.6 6.5 6.5 0.3 13.3 0.1 12.3 12.3 0.7 0.1 0.1 6.0 0.1 0.6 0.6 4.3 5.6 11.2 0.7 0.5 0.1 3.3 0.0 0.4 3.8 3.9 9.3 3.5 3.9 3.7 3.7 4.3 3.0 3.5 3.5 3.2 3.1 0.3 3.2 3.3 2.8 0.0 2.9 2.6 2.5 3.1 2.4 2.8 10.7 9.6 8.9 9.2 7.6
Slide 17: Megaworld Quarterly performance
Quarterly performance RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real estate sales Gross Profit GP Margin Rentals Rental EBITDA EBITDA margin Hotel revenues Hotel EBITDA EBITDA margin 51% 33% 50% 49% 48% 88% 89% 88% 88% 89% 87% 87% 87% 47% 45% 46% 18% 45% 15% 846 4.4 13%
Slide 18: Townships: 5,172 Hectares
30 TOWNSHIPS 5,172 Hectares 18
Slide 19: 2023 Targets
2023 TARGETS 3 P130bn P60bn P55bn TOWNSHIPS RESERVATION SALES PROJECT LAUNCHES CAPEX BUDGET 19
Slide 20: Additional Office, Mall GLA and Hotel Room Keys
207,200 159,500 3,159 Additional Office GLA Additional Mall GLA Additional Hotel Room Keys 2023-2026 2023-2026 2023-2028 20
Slide 21: Emperador: FY2022 Financial Performance
FY2022 Financial Performance 6 5 >100 25 Vineyards Distilleries Countries under Domestic in Spain in Scotland global distribution system Sales Offices
Slide 22: Emperador 4Q2022/FY2022 financial performance
4Q2022/FY2022 financial performance P&L summary (Pbn) 4Q2022 3Q2022 QoQ chg 4Q2021 YoY chg 2022 2021 YoY chg Revenue 20.1 14.6 38% 17.6 15% 62.8 55.9 12% Brandy 13.8 9.0 54% 12.4 11% 40.7 37.2 9% • Whisky: consistent outperformer, driven by increasing popularity of Whisky 6.3 5.6 13% 5.2 22% 22.1 18
Slide 23: Emperador FY2022 performance vs pre-pandemic levels
FY2022 performance vs pre-pandemic levels REVENUE ATTRIBUTABLE INCOME Record-level revenue in 2022 Record-level income in 2022 62.8 10.0 10.1 55.9 52.8 51.6 8.0 2.6 22.1 6.7 4.5 18.7 2.3 13.9 15.9 2.0 7.4 40.7 5.7 5.5 37.6 36.9 37.2 4.8 2019 2020 2021 2022 2019 2020 2021 2022 Brandy Whisky Brandy Wh
Slide 24: Emperador Quarterly Performance
Quarterly Performance REVENUE ATTRIBUTABLE INCOME Brandy Whisky Brandy Whisky 20.1 3 .0 3.1 2.9 2.7 17.6 0.5 15.7 14.6 6.3 0.6 1.4 13.3 2.1 2.2 2.1 1.1 12.1 13.0 5.2 12.3 1.9 5.5 0.7 5.6 0.7 0.9 3.9 5.1 4.5 4.7 1.1 2.5 13.8 2.1 12.4 1.7 1.7 10.3 9.0 1.4 1.4 8.2 8.2 8.5 7.6 1.2 0.9 Q121 Q221 Q321 Q42
Slide 25: Whisky and Brandy Quarterly Performance
Quarterly Performance WHISKY REVENUE, GROSS PROFIT, MARGIN BRANDY REVENUE, GROSS PROFIT, MARGIN Whisky revenues Gross profit GP margin Brandy revenues Gross profit GP margin 44.7% 45.5% 34.4% 41.3% 28.5% 28.8% 25.7% 27.0% 40.6% 40.6% 40.0% 40.3% 40.8% 25.4% 23.3% 38.4% 6.3 13.8 12.4 5.5 5.6 5.1 5.2
Slide 26: Our Vision for 2025
OUR VISION FOR 2025 35% 2022 2025 50% Emperador’s growth aspiration is to generate 50% of the business from international operations by 2025. 26
Slide 27: Our Vision for 2025: objectives and achievements
Our Vision for 2025 What we achieved What we achieved 2025 Objectives from 2020 to 2022 in 2022 2X 18% +18% YoY Double branded single malt Whisky revenue +18% YoY CAGR in whisky revenue sales from 2020-2025 to P22.1bn in 2022 High Single Digit 5% +9% YoY Brandy revenue CAGR from Brandy revenue +9% Y
Slide 28: Travellers: FY2022 Financial Performance
FY2022 Financial Performance 2,742 6 66% 421 2,091 Hotel room International Hotel Occupancy VIP and mass Slots keys Hotel Brands (2022) gaming tables
Slide 29: Travellers 4Q22/FY22 financial performance
4Q22/FY22 financial performance P&L summary (Pbn) 4Q2022 3Q2022 QoQ chg 4Q2021 YoY chg 2022 2021 YoY chg Gross gaming revenue 9.1 8.0 13% 3.9 133% 31.8 16.7 90% • Posting record GGR, driven by Mass 3.3 3.2 4% 1.7 95% 11.4 5.5 109% sustained VIP business, improved VIP 5.8 4.9 19% 2.2 163% 20.4 11.3 8
Slide 30: Travellers FY2022 performance vs pre-pandemic levels
FY2022 performance vs pre-pandemic levels GROSS REVENUES EBITDA Record-level Gross Revenues in 2022 125% of pre-pandemic levels 37.1 34.4 7.6 5.3 6.7 6.1 19.6 16.1 2.9 31.8 27.6 2.8 16.7 0.4 13.3 -0.6 2019 2020 2021 2022 2019 2020* 2021* 2022 Gross gaming Non-gaming 30 *Exclude extraordinary items
Slide 31: Travellers Quarterly performance
Quarterly performance GROSS REVENUES GGR: Mass vs VIP Average Daily Visitors Gaming Non-gaming Mass VIP 10.9 9.1 8.2 34.4 9.6 9.3 1.8 8.0 1.4 1.2 27.9 7.5 6.5 23.8 0.9 5.8 4.9 5.0 4.9 5.2 4.6 5.0 4.8 3.9 0.6 4.6 0.1 4.7 0.9 9.1 3.4 13.7 1.2 8.2 8.0 11.2 12.0 2.6 6.5 4.0 2.2 4.9 2.4 6.1 6.8 4.6 3.9 3
Slide 32: Growing the Casino Business
GROWING THE CASINO BUSINESS • Expand premium mass segment to ~50% of GGR (from 40%). • Sustain growth in VIP business, with increased junket operations. • Improve foot traffic at Newport World Resorts Complex. 32
Slide 33: GADC: FY2022 Financial Performance
FY2022 Financial Performance 704 503 409 370 Store McDelivery Stores with NXTGEN Count hubs Drive-thru stores
Slide 34: GADC 4Q22/FY22 financial performance
4Q22/FY22 financial performance P&L summary (Pbn) 4Q2022 3Q2022 QoQ chg 4Q2021 YoY chg 2022 2021 YoY chg Systemwide Sales 18.5 15.2 22% 12.9 43% 61.1 44.1 38% Sales Revenues 10.5 8.6 23% 7.2 45% 34.4 24.9 38% • Sequential growth in systemwide Sales by co. restos 9.6 7.8 23% 6.6 45% 31.3 22.7 38% sal
Slide 35: GADC FY2022 performance vs pre-pandemic levels
FY2022 performance vs pre-pandemic levels SALES REVENUES ATTRIBUTABLE INCOME Record level Sales Revenues in 2022 97% of pre pandemic levels 34.4 32.0 1.9 1.8 3.1 3.2 24.9 19.8 2.2 0.9 1.7 31.3 28.8 22.7 -0.6 18.0 2019 2020 2021 2022 2019 2020 2021 2022 35
Slide 36: GADC Quarterly performance
Quarterly performance SYSTEMWIDE SAME-STORE SALES, GROSS PROFIT, MARGIN NUMBER OF STORES SALES GROWTH Sales revenues Gross profit GP Margin Quarterly End-of-period NCR Luzon Visayas Mindanao 671 704 25% 23% 23% 24% 24% 21% 25% 108.7% 669 655 14% 620 56 55 50 51 51 72 10.5 70 69 71 64 8.2 8.6 38.2% 3
Slide 37: 704 stores; 50 new stores target in 2023
2022 704 stores 2023 Target 50 new stores 37
Slide 38: McDonald's Cheese Dunk
There’s no such thing as too much cheese! McDonald’s Cheese Dunk 38
Slide 39: Key Takeaways
KEY TAKEAWAYS ▪ 2022 was quite an interesting year amid domestic and global economic and geopolitical challenges. ▪ Despite these hurdles, we saw all our businesses expand and even report record revenue levels. ▪ This is a testament to the strength of our brand equity, the effectiveness of our busin
Slide 40: A Premium-Lifestyle Conglomerate
A Premium-Lifestyle Conglomerate Full Year 2022 Analysts' Briefing April 13, 2023