Emperador Inc. · PSE:EMI
Emperador — Shareholder Meeting (2019)
25 slides from Emperador's shareholder meeting presentation, 2019
Slide 1: 2019 Annual Stockholders' Meeting
2019 Annual Stockholders’ Meeting
Slide 2: 2019 Annual Stockholders' Meeting
2019 ANNUAL STOCKHOLDERS’ MEETING 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
Slide 3: 2018 Financial Highlights
OUR FINANCIALS 2018 Financial Highlights Php47.1b Php6.7b 1.6b 28% REVENUES NET INCOME* WHISKY CONSOLIDATED REVENUES BRANDY 72% 11% 14.2% 5.3% NET INCOME REVENUE NET INCOME MARGIN BREAKDOWN GROWTH *Attributable to parent
Slide 4: Financial History: Revenues
OUR FINANCIALS Financial History 15% Revenues (PHPm) CAGR 47,050 43,645 41,018 42,656 32,009 29,865 23,594 17,355 2011 2012 2013 2014 2015 2016 2017 2018
Slide 5: Financial History: Gross Profit & Margin
OUR FINANCIALS Financial History 19% Gross profit (PHPm) & Margin CAGR 38% 35% 34% 35% 35% 31% 31% 26% 16,041 15,306 14,942 13,679 10,903 9,225 8,210 4,445 2011 2012 2013 2014 2015 2016 2017 2018
Slide 6: Financial History: EBITDA & Margin
OUR FINANCIALS Financial History 17% EBITDA (PHPm) & Margin CAGR 30% 28% 27% 27% 22% 23% 22% 19% 11,023 10,332 9,609 9,641 8,323 8,738 7,145 3,377 2011 2012 2013 2014 2015 2016 2017 2018
Slide 7: Financial History: Net Income & Margin
OUR FINANCIALS Financial History Net income* (PHPm) & Margin 16% 21% CAGR 20% 19% 19% 16% 15% 14% 13% 7,693 6,204 6,960 6,322 6,658 5,831 5,000 2,305 2011 2012 2013 2014 20157 2016 2017 2018 * Attributable to parent
Slide 8: Segment Breakdown
OUR FINANCIALS Segment Breakdown Revenues Gross Profit EBITDA Net Income (PHPm) FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 Brandy 31,174 34,447 10,852 10,730 8,024 7,870 5,012 5,017 Whisky 12,571 13,527 4,090 5,311 1,617 2,462 1,320 1,812 EMP Inc. 42,656 47,050 14,942 16,041 9,641 10,332 6,332 6,829 •
Slide 9: 1Q19 Performance Update
OUR FINANCIALS 1Q19 Performance Update 1Q18 1Q19 YoY Commentary Overall business driven by whisky REVENUES (PHPm) 9,744 11,025 13.2% and brandy with premium and luxury brands leading growth GROSS PROFIT (PHPm) 3,345 3,688 10.3% Overall gross profit margin remains in mid 30s: whisky, 42% GROSS PROFIT
Slide 10: Segment Breakdown 1Q19
OUR FINANCIALS SEGMENT BREAKDOWN Revenues Gross Profit EBITDA Net Income (PHPm) 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 Brandy 7,012 7,766 2,290 2,284 1,908 1,750 1,208 1,086 Whisky 2,847 3,372 1,055 1,404 507 788 454 656 EMP Inc. 9,744 11,025 3,345 3,688 2,414 2,538 1,661 1,743 • Revenues, net of i
Slide 11: Latest Financial Performance
OUR FINANCIALS Latest Financial Performance Revenues (PHPm) Gross Profit (PHPm) & Margin 34.6% 35.9% 34.2% 47,050 16,041 9,744 11,025 3,345 3,688 FY18 1Q18 1Q19 FY18 1Q18 1Q19 EBITDA (PHPm) & Margin Net Income (PHPm) & Margin* 24.8% 23.0% 22.0% 14.2% 16.3% 15.8% 10,332 6,658 2,414 2,538 1,585 1,738
Slide 12: Solid Capital Position
OUR FINANCIALS Solid Capital Position (PHPm) Cash Debt Net Debt Net Debt to Equity Commentary Higher cash due to 8,613 38,838 30,225 47% 1Q19 collections 8,613 33,541 24,928 39% Ex Equity-linked security Lower cash due to share 6,228 39,274 33,046 54% buyback and dividend payout 2018 6,228 34,015 27
Slide 13: 2019 Annual Stockholders' Meeting
2019 Annual Stockholders’ Meeting 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
Slide 14: Whyte and Mackay Revenue Mix
UPDATES Whyte and Mackay Revenue Mix 10% 14% 11% 8% 30% 13% 12% 22% 18% 17% 77% 77% 70% 67% 53% 2011-2014 2015 2016 2017 2018 Branded Business Private Label Bulk
Slide 15: Whyte and Mackay Branded Business Breakdown
UPDATES Whyte and Mackay Branded Business Breakdown 11% 12% 18% 20% 21% 9% 9% 2% 4% 14% 16% 11% 7% 12% 23% 78% 76% 61% 53% 45% 2014 2015 2016 2017 2018 EMEA Asia & Pacific Americas Travel Retail
Slide 16: Whyte and Mackay Gross Profit Margin
UPDATES Whyte and Mackay Gross Profit Margin 39.7% 32.7% 30.1% 19.7% 18.1% 2014 2015 2016 2017 2018
Slide 17: Whyte and Mackay Strategy: Focus on Malts
UPDATES Whyte and Mackay Strategy: Focus on Malts 5 years ago To d a y Vision 55% 65-70% 80-85% of branded business 17
Slide 18: Malt Hierarchy
UPDATES Malt Hierarchy Php1,250 Php1,700 Php1,900 Php2,500 Php3,580
Slide 19: Discovered Under Ice, Served Over Ice
DISCOVERED UNDER ICE SERVED OVER ICE
Slide 20: Shackleton Short History
SHACKLETON Short History 1907 Legendary polar He left behind 2 explorer Sir Ernest crates of 1907 Shackleton went on Mackinlay’s an expedition to Rare Old Antarctica. Highland Malt in his hut. TODAY 2007 Based on the antique 100 years later, whisky, Shackleton is the crates of a master class in the
Slide 21: Premiumization in Brandy Space
UPDATES Premiumization in Brandy Space FUNDADOR SUPREMO • A super-premium Brandy • Introduced through the Travel Retail channel in Europe and Asia, and is now available in the Philippines. Php12,800
Slide 22: Brandy Hierarchy
UPDATES Brandy Hierarchy Php120 Php260 Php350 T
Slide 23: Share Buyback
UPDATES Share Buyback As of May 15, 2019 287m shares @ P7.20 2019 30m 2017 45m shares @ P7.09 2018 212m shares @ P7.19 shares @ P7.43 Announcement of Share Buyback 8.74 8.25 7.75 7.50 7.18 7.00 6.92 6.60 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 '17 '17 '
Slide 24: 2019 Annual Stockholders' Meeting
2019 Annual Stockholders’ Meeting 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
Slide 25: Key Takeaways
KEY TAKEAWAYS Future-proofing, Premiumization and Profitability Future-proofing dominance Premiumization Profitability We want to secure our We are best positioned We want margin dominance in to do premiumization sustainability and Philippine liquor while in the Philippines. stability. making a dent