Slide 1: CY2019 Full Year Audited Results
CY2019 Full Year Audited Results Irwin C. Lee Mike P. Liwanag President and CEO Senior Vice President
Slide 2: Agenda
AGENDA 1 CY2019 Unaudited Financial Results 2 Our Expectations 3 Key Updates 2
Slide 3: Strong home market drives overall growth
URC Strong home market drives overall growth Sales 134.2 127.8 Growth was driven by the progress in Philippines +5% 2018 2019 EBIT 15.0 13.4 Growth in operating income and margins was driven by Branded +12% Foods Business 2018 2019 11.2% +72bps In billion pesos | EBIT and margins includes revaluatio
Slide 4: BCF Philippines: topline and operating income growth accelerated
BCF Topline and operating income growth has accelerated PHILIPPINES with margins improving Sales • Sales strong across all categories underpinned by sales and 57.8 62.4 distribution transformation. • Successful Coffee turn-around and RTD Tea recovery +8% • Acceleration in Snacks and Noodles driven b
Slide 5: BCF International: profits and margins increased despite weaker topline
BCF Profits and margins increased despite weaker topline INTERNATIONAL Sales 43.2 42.2 • Topline held back by FX by – 407 bps. On a constant FX basis, topline grew +2% in USD terms. -2% • Growth in Vietnam and Oceania was offset by the weaker performance in Thailand. 2018 2019 In local VIETNAMQ1 CY2
Slide 6: Strong performance from Animal Nutrition & Health and Flour Divisions
Strong performance from Animal Nutrition & Health AIC (ANH) and Flour Divisions AIG CFG Sales vs SPLY +12% 28.3 • Topline was driven by strong double digit growth 25.2 in ANH and Flour supported by capacity 13.5 15.2 +12% expansion. 13.1 +12% • Sugar sales delayed by late import restrictions 11.7 an
Slide 7: Strong Balance Sheet and Cash Position
Strong Balance Sheet and Cash Position Cash and Financial Debt • Net debt of Php 22B, an improvement versus last year due mainly to Intersnack transaction 39.9 43.0 payment. 13.5 21.0 • Gearing ratio of 0.45, attributed to remaining long term debt in Oceania CY18 CY19 • Major cash disbursements for
Slide 8: Our 2020 Expectations
Our 2020 Expectations 1. Mid-single digit topline growth 2. Mid to high single digit operating income growth. Key considerations: • Based on a non-pandemic scenario • Assumes recovery from Q2 onwards and mitigation BCF INTERNATIONAL of COVID-19 supply risks. • Tougher Q1 due to higher comparable fro
Slide 9: Intersnack Transaction
Intersnack Transaction Intersnack Group is a European champion in the savory snacks market with with extensive product portfolio by successively entering into all snacks categories – chips, specialties, baked products and nuts – across Europe Yarra Valley Snack Foods company is a natural snack food
Slide 10: Supply Network Design Strategy Update
Supply Network Design Facility Rationalization & Optimization Strategy Update: Consolidation Product Supply How To Win • BCFG Philippines Chain • URC Australia Transformation Future Mega Sites Regional Sourcing Global Exports 10
Slide 11: AIG Products and Brands Strategy Update
Where to Play AIG Strategic Portfolio Review of Strategy Update: Farms Business Products Focus our portfolio towards higher value-added and more stable processed meat business. and Brands People Love 11
Slide 12: Thank You
THANK YOU Gu Del ry, ( 12
Slide 13: Where To Play: New Product Launches
Where To Play: New Product Launches PH: Cloud 9 Classic Relaunch GROW THE CORE TH: Dewberry PH: Nissin Chocoberry & Cup Noodles Cream-0 TH: Roller AU: Thins PH: Vcut Party Pack & – Cheesy Choco-O Plus Coaster Shrimp Himalayan Pink Chicharron ni Mang Juan - Seafood Milk Paste Salt Klasik PH: B’Lue Ca
Slide 14: Income Statement
Income Statement 2019 2018 YoY (Php Millions) (Audited) (Audited) NET SALES 134,175 127,770 5% Cost of Sales 93,862 90,333 4% GROSS PROFIT 40,313 37,437 8% Operating Expense -25,301 -24,057 5% OPERATING INCOME 15,012 13,381 12% • Increase in net income was Equity in net income of JVs -159 -132 attri
Slide 15: Balance Sheet
Balance Sheet CY 2019 CY 2018 (Php Millions) (Audited) (Audited) Cash & cash equivalents 20,975 13,494 (including Financial assets at FVPL and FVOCI) Other current assets 43,945 40,966 Property, plant, and equipment 54,626 51,950 Other noncurrent assets 49,106 45,525 TOTAL ASSETS 168,653 151,936 Cur
Slide 16: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) 2019 2018 YoY 2019 2018 YoY 2019 2018 bps Branded Consumer Foods 105,886 102,538 3% 12,023 10,918 10% 11.35% 10.65% 71 Total Philippines 63,728 59,335 7% 7,990 7,172 11% 12.54% 12.09% 45 Philippines 62,405 57,811 8% 8,032 7,143 12% 12.87% 1
Slide 17: Value Market Shares
Value Market Shares Philippines Thailand MARKET MARKET CATEGORY #1 #2 #3 CATEGORY #1 #2 #3 SHARE SHARE Snacks 35.8% URC 22.6% 5.8% Biscuits 25.7% URC 11.2% 8.4% Candies 26.2% URC 12.4% 10.4% Wafers 23.6% URC 14.7% 9.4% Chocolates 20.9% URC 13.6% 8.9% Vietnam CATEGORY MARKET SHARE #1 #2 #3 Biscuits 1