Alliance Global Group Inc. · PSE:AGI

Alliance Global — UBS Philippines Corporate Day 2018

42 slides from Alliance Global's conference presentation, Aug 13, 2018

  1. Slide 1: UBS Philippines Corporate Day 2018

    UBS Philippines Corporate Day 2018 13-15 August 2018

  2. Slide 2: 1H 2018 performance highlights

    1H 2018 performance highlights 2

  3. Slide 3: Group key figures: resources, revenues, net income, debt

    4,948 P178bn Hotel room keys Gross debts (end-Jun18) P584bn P73.2bn total resources consolidated revenues (end-Mar18) 1H2018 P7.9bn 3% Attributable Parent net income net debt/equity 1H2018

  4. Slide 4: Revenues and pre-minority income

    80.0 30.0 73.2 26.8 70.0 66.8 25.0 60.0 20.0 19.5 50.0 40.0 15.0 30.0 13.5 11.1 10.0 20.0 7.3 12.4 10.0 10.1 7.9 5.0 6.7 3.2 - 1.7 - 0.7 Revenues Pre-minority MEG income Attributable EMP RWM profit GADC 1H2017 1H2018 Revenues Profit 4

  5. Slide 5: Q2 2018 P&L highlights

    P&L highlights (Pbn) Q218 Q217 % chg Comments Group revenues 37.8 33.1 14% Megaworld 13.6 12.1 12% Sustained growth in rentals, higher project completion. Emperador 9.7 9.0 8% Robust growth in whisky sales, brandy sales steady. Travellers 7.1 5.0 43% Recovery in GGR GADC 7.0 6.3 10% 4.9% systemwide

  6. Slide 6: 1H18 P&L highlights

    P&L highlights (Pbn) 1H18 1H17 % chg Comments Group revenues 73.2 66.8 9% Megaworld 26.7 23.9 11% Strong growth in rentals, residential revenues. Emperador 19.5 18.0 8% Sustained momentum in whisky sales, brandy sales up. Travellers 12.6 11.2 12% Gaming recovery; rising non-gaming revenues. GADC 13.

  7. Slide 7: Revenue and net income by segment

    P73.2bn 9% P7.9bn 17% 1% 19% 2% -5% 9% 36% 17% 53% 31% 27% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 7

  8. Slide 8: Capex commitment for 2018: P80bn

    100 87 90 80 77 71 80 72 70 55 60 50 40 30 20 10 - 2013 2014 2015 2016 2017 2018E MEG EMP RWM GADC Infracorp • Capex commitment for 2018: P80bn. 8

  9. Slide 9: Group borrowings and net debt/equity

    Net debt Net debt/ (cash) (Pbn) equity (X) 181 178 144 140 0.6x 150.0 35 1 36 1 0.41x 120 0.38x 0.5x 118 30 31 120.0 36 100 0.34x 0.4x 97 2 20 2 22 80 0.3x 38 0.20x 90.0 19 14 40 70 60 0.2x 2 29 13 29 40 0.04x 0.1x 60.0 22 2 29 20 0.0x 18 75 65 - 61 - -0.16x -0.1x 30.0 53 29 34 (20) -0.2x - (40) -0.

  10. Slide 10: 1H 2018 performance highlights

    1H 2018 performance highlights

  11. Slide 11: Megaworld townships, landbank, office and malls

    townships & landbank office GLA integrated lifestyle communities (has.) (‘000 sqm) lifestyle malls GLA (‘000 sqm) BPO clients 11

  12. Slide 12: Megaworld 1H18 highlights

    • Attributable net income +13% to P7.3bn. • Resurgence in development segment. • Development revenues +9% to P18.2bn. • Total realized gross profit +22% to P7.9bn. • Reservation sales +31% to P76bn (FY2018 target: P110bn) • Sustained growth in rentals. • Rentals grew 17% to P6.8bn. • Rental income s

  13. Slide 13: Megaworld revenues and net income by quarter

    12.6 13.2 11% 12.2 12.4 25.7 15.0 11.6 11.7 23.2 0.4 0.4 0.3 12.0 0.3 0.3 0.3 30.0 0.7 3.0 3.0 3.4 3.4 0.6 2.9 2.9 6.8 9.0 5.8 20.0 6.0 8.3 8.4 8.9 9.0 8.8 9.4 18.2 10.0 16.8 3.0 0.0 - Q117 Q217 Q317 Q417 Q118 Q218 1H17 1H18 Development Rental Hotels Development Rental Hotels 6.5 17% 7.0 5.9 12.4 5.

  14. Slide 14: Megaworld gross profit and rental EBITDA

    RES, Gross Gross profit profit (Pbn) margin 4.7 5.0 4.3 9.0 60% 3.6 46% 46% 48% 46% 48% 3.5 3.5 0.7 7.5 45% 50% 4.0 2.9 1.4 6.0 40% 3.0 1.2 1.1 1.2 1.0 4.5 30% 2.0 4.0 2.4 2.4 2.4 2.9 3.0 20% 1.0 1.9 1.5 10% 0.0 - 0% Q117 Q217 Q317 Q417 Q118 Q218 Q117 Q217 Q317 Q417 Q118 Q218 Realised GP - current y

  15. Slide 15: Megaworld hotel revenues, EBITDA and net debt

    Revenues, EBITDA EBITDA (Pbn) margin 88% 88% 91% 87% 88% 84% 500 33% 40% 400 27% 28% 27% 32% 25% 25% 300 24% 46% 45% 48% 48% 46% 46% 42% 46% 46% 39% 40% 200 16% 35% 33% 25% 25% 27% 28% 27% 100 8% - 0% Q117 Q217 Q317 Q417 Q118 Q218 Q117 Q217 Q317 Q417 Q118 Q218 Hotel revenues Hotel EBITDA EBITDA marg

  16. Slide 16: Office and lifestyle mall GLA expansion

    Office GLA expansion Southeast Asian Campus McKinley Hill 1,575 (in ‘000 sqm) 1,600 1,400 1,200 1,013 1,000 851 737 800 621 509 600 432 400 200 - 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Lifestyle malls GLA expansion Festive Walk Main Mall Iloilo Business Park 487 500 (in ‘000 sqm) 450 400 35

  17. Slide 17: Real estate sales by location and project launches

    Chelsea Park Place Real Estate Sales, by location Capital Town Pampanga 2011 2017 1H18 12% 27% 30% Provincial Provincial Provincial 88% 73% 70% Metro Metro Metro Manila Manila Manila Residential Project Launches The Regis Upper East, Bacolod City 2011 2017 29% 42% Provincial Provincial 71% Metro 58%

  18. Slide 18: 1H 2018 performance highlights

    1H 2018 performance highlights

  19. Slide 19: Emperador distilleries and bodegas

    Dalmore Jura Tamnavulin Fettercairn Invergordon Distillery Distillery Distillery Distillery Distillery (Grain) Region : Highland Region : Island Region : Speyside Region : Highland Region : Highland Capacity : 4.3m LOA Capacity : 2.5m LOA Capacity : 4.2m LOA Capacity : 2.3m LOA Capacity : 36.3m LOA

  20. Slide 20: Emperador 1H18 highlights

    • Attributable net income +18% to P3.2bn. • Increasing contribution of international operations. • Whisky revenues +16% to P6.2bn (31% of total) driven by sales of branded products Dalmore, Jura and Whyte&Mackay to UK, Asia and Travel Retail. • Operating income +92% to P950m (23% of total). • Net in

  21. Slide 21: Emperador revenues and net income by quarter

    15.1 8% 16.0 19.5 18.1 4.2 9.8 12.0 9.1 9.5 9.7 20.0 9.0 5.2 6.1 2.8 3.3 15.0 8.0 2.4 2.8 2.9 10.9 10.0 12.9 13.4 4.0 6.5 6.4 6.6 6.9 6.5 5.0 - - Q117 Q217 Q317 Q417 Q118 Q218 1H17 1H18 Brandy Whisky Brandy Whisky 1.9 21% 1.7 1.7 1.6 3.3 2.0 1.5 2.7 0.4 4.0 1.2 0.4 1.5 0.3 0.5 0.4 0.9 3.0 0.5 0.2 1.

  22. Slide 22: Whisky and brandy revenues, margins, net debt

    Revenues, Gross profit Revenues, Gross profit GP (Pbn) margin GP (Pbn) margin 6.0 48% 12.0 48% 36% 35% 34% 38% 34% 37% 5.0 35% 34% 40% 10.0 40% 31% 29% 28% 8.0 4.0 26% 32% 32% 3.0 24% 6.0 24% 2.0 16% 4.0 16% 1.0 8% 2.0 8% - 0% - 0% Q117 Q217 Q317 Q417 Q118 Q218 Q117 Q217 Q317 Q417 Q118 Q218 Whisky r

  23. Slide 23: Emperador global markets

    UK Russia Middle Global Central & Europe East Latin America Tr a v e l R e t a i l Africa Asia USA Asia & Canada Pacific 23

  24. Slide 24: Emperador venues and flagship stores

    ZABANA BAR SAVOY HOTEL MANILA CIGAR LOUNGE DALMORE FLAGSHIP STORE UPTOWN BONIFACIO RICHMONDE HOTEL ILOILO 24

  25. Slide 25: 1H 2018 performance highlights

    1H 2018 performance highlights 25

  26. Slide 26: Travellers key operating figures

    TOTAL RESOURCES HOTEL (end-Jun2018) MGB CAPACITY OCCUPANCY 1H2018 EBITDA 1H2018 HOTEL ROOMS RETAIL SQM RETAIL SPACE GROSS REVENUES GAMING OUTLETS 1H2018 TABLES 1H2018 SLOTS 1H2018 26

  27. Slide 27: Travellers 1H18 highlights

    • Attributable net income at P1.7bn (from P375m). • VIP ramping up, Grand Wing launch to augment capacity. • GGR -3% to P9.0bn: VIP volume, GGR recovers; mass segment weighed down by lower hold rate. • Grand Wing (soft-launched in May) continues to ramp up. • Non-gaming segment recovers; 80% average

  28. Slide 28: Travellers gaming and non-gaming revenues

    6.3 5.5 5.6 11.2 11.1 2% 5.4 6.0 1.1 4.9 4.5 1.1 1.0 1.1 12.0 2.0 2.0 0.9 4.0 0.9 8.0 5.3 9.2 9.0 4.0 4.3 4.5 4.5 2.0 3.6 4.0 - - 1H17 1H18 Q117 Q217 Q317 Q417 Q118 Q218 Gross gaming Non-gaming Gross gaming Non-gaming 5.3 9.2 9.0 3% 6.0 4.3 4.5 4.5 5.0 1.2 4.0 3.6 10.0 2.6 3.3 4.0 1.4 1.5 1.8 8.0 1.

  29. Slide 29: Travellers EBITDA and net debt

    EBITDA (Pbn) Margin EBITDA (Pbn) Margin 2.0 22% 25% 3.0 30% 2.5 19% 25% 1.6 20% 16% 16% 15% 13% 2.0 14% 20% 1.2 15% 9% 1.5 15% 0.8 10% 1.0 10% 0.4 5% 0.5 5% - 0% - 0% Q117 Q217 Q317 Q417 Q118 Q218 1H17 1H18 EBITDA (Pbn) EBITDA margin EBITDA (Pbn) EBITDA margin Net debt Net debt/ 29 26 27 (cash) (Pbn

  30. Slide 30: Key initiatives: Launch of The Grand Wing

    Key initiatives: Launch of The Grand Wing | RAVELLERS NEWPORT partial opening of GAMING AREA sqm tables |

  31. Slide 31: Key initiatives: International hotel brands

    TRAVELLERS —————— INTERNATIONAL Key initiatives: International hotel brands 31

  32. Slide 32: 1H 2018 performance highlights

    1H 2018 performance highlights

  33. Slide 33: GADC key operating figures

    DESSERT CENTERS (1H18) COMPANY -OWNED SYSTEMWIDE SAME- STORE SALES GROWTH STORES STORES WITH DRIVE THRU (1H18) (1H2018) (end- Jun18) FRANCHISED MCDELIVERY HUBS (1H18) SALES REVENUES (1H2018) GP MARGIN (1H2018) TOTAL RESOURCES EBITDA (end-Jun18) (1H2018) 33

  34. Slide 34: GADC 1H18 highlights

    • Attributable net income +26% to P741m. • Sustaining upward sales momentum. • Sales revenues +11% to P13.5bn.  Sales by company-owned stores +12% to P12.2bn (91% of total).  Rent, royalty & others +9% to P1.3bn (9% of total). • Systemwide same-store sales growth at 5.7% vs 5.2% in 1H17. • Number

  35. Slide 35: GADC sales revenues and gross profit

    7.1 6.9 11% 6.3 6.3 6.6 13.5 5.9 0.7 12.2 0.6 0.7 0.6 0.6 0.6 1.3 1.2 5.6 5.7 6.4 6.0 6.2 12.2 5.3 11.0 Q117 Q217 Q317 Q417 Q118 Q218 1H17 1H18 Sales by co-operated restaurants Rent, royalty & others Sales by co-operated restaurants Rent, royalty & others Revenues, GP GP margin Revenues, GP GP margi

  36. Slide 36: GADC EBIT, net income and net debt

    EBIT, Net EBIT, net EBIT, Net EBIT, Net income (Pbn) margin income (Pbn) margin 1.2 14% 16% 14% 1.4 12% 1.0 10% 9% 9% 12% 1.2 8% 9% 0.8 8% 8% 8% 10% 1.0 8% 0.6 6% 6% 8% 0.8 5% 5% 5% 5% 5% 0.4 6% 0.6 4% 0.4 4% 0.2 2% 0.2 - 0% - 0% Q117 Q217 Q317 Q417 Q118 Q218 1H17 1H18 EBIT Net income EBIT margin Ne

  37. Slide 37: Same-store sales growth and store count

    8.0% Systemwide Sales per 6.6% sales (Pbn) store (Pm) 5.8% 5.8% 5.7% 15.0 21 20 25.0 6.0% 5.3% 5.2% 6.8% 20 19 6.6% 19 19 5.9% 12.0 20.0 5.3% 5.2% 9.0 15.0 4.0% 4.9% 6.0 10.0 2.0% 3.0 5.0 - - 0.0% Q117 Q217 Q317 Q417 Q118 Q218 Q117 Q217 Q317 Q417 Q118 Q218 SSSG Quarterly SSSG end-of-period Systemwid

  38. Slide 38: New store openings

    Pagbilao, Quezon Kalibo, Aklan Ta g u m , D a v a o Batac, Ilocos Norte Maribago, Cebu To r i l , D a v a o 38

  39. Slide 39: Alliance Global

    v4 ALLIANCE GLOBAL 39

  40. Slide 40: Makati Skytrain

    MAK ATI SKYTRAIN  1 . 8 8 k m M o n o ra i l P ro j e c t  A u t o m a te d C a b l e - P ro p e l l e d M o n o ra i l to connect MRT 3 G u a d a l u p e S ta t i o n to Uptown B o n i fa c i o  O r i g i n a l P ro p o n e n t S ta t u s s e c u re d

  41. Slide 41: NAIA Consortium

    ANNUAL NAIA to spend CONSORTIUM PA S S E N G E R C A PA C I T Y P105bn for a concession period of 15 years CONSORTIUM MEMBERS

  42. Slide 42: Thank you

    Thank you. 42

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