Universal Robina Corp. · PSE:URC
Universal Robina — 9M CY2020 Earnings Presentation
25 slides from Universal Robina's earnings presentation, Oct 22, 2020
Slide 1: 9M CY2020 Unaudited Results Investor Briefing
9M CY2020 Unaudited Results Investor Briefing October 22, 2020 Irwin C. Lee Mike P. Liwanag President and CEO Senior Vice President 1
Slide 2: Our Agenda
Investor Presentation: 9M CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) 9M CY2020 Unaudited Financial Results 3.) Recovery & Strategy Updates 4.) Restructuring & Acquisition Updates 2
Slide 3: Our Agenda
Investor Presentation: 9M CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) 9M CY2020 Unaudited Financial Results 3.) Balance of the Year Plans 4.) Restructuring & Acquisition Updates 3
Slide 4: COVID-19 Market Landscape
COVID-19 Market Landscape Consumer sentiment negative in PH Recovery after the hard Investor Presentation: 9M CY2020 Business Results lockdown is not happening as expected 4 4
Slide 5: COVID-19 Market Landscape: Channels & Categories - PH
COVID-19 Market Landscape Total FMCG less CIG| Volume Growth | Jan – Aug 2020 17 Channels & 14 11 7 6 6 7 5 Categories - PH 3 -1 0 Investor Presentation: 9M CY2020 Business Results Total PH Supermarket Grocery/CV Sari-sari store Market Stall Drugstore -6 -6 -5 Overall demand in most channels -9 -1
Slide 6: Our Agenda
Investor Presentation: 9M CY2020 Business Results OUR AGENDA 1.) Business Updates: 2.) 9M CY2020 Unaudited Financial Results 3.) Balance of the Year Plans 4.) Restructuring & Acquisition Updates 6
Slide 7: URC Profits continue strong growth
Q1 Q2 Q3 9M URC Profits continue strong growth. SALES Sales hold despite market decline. 0.4% 1% 1% - CY 2020 33.5 34.0 32.4 99.8 Investor Presentation: 9M CY2020 Business Results CY 2019 33.3 33.7 32.7 99.8 EBIT • Flattish sales, with share gains offsetting 0.4% 16% 8% 8% market declines and deteri
Slide 8: BCF | Philippines
BCF | PHILIPPINES Q1 Q2 Q3 9M Sustained profit growth despite SALES weaker consumer sentiment in Q3 3% 1% 2% 1% CY 2020 15.7 15.7 15.2 46.5 Investor Presentation: 9M CY2020 Business Results Q1 SALES 5 CY 2019 15.2 15.5 15.5 46.2 4.5 • Sales flattish4 despite strong market share gains • Retail trade
Slide 9: BCF | Philippines: URC performs ahead of market and gains shares
BCF | PHILIPPINES URC performs ahead of market and gains shares Results BusinessResults Category YTD URC YTD 2019 YTD Market 2020 YTD Market Growth Growth Share Share CY2020Business (Nielsen) (Net Sales Value) (Nielsen) (Nielsen) 9MCY2020 Snacks -7% +4% 35.5% 38.4% Biscuits -9% +6% 16.1% 16.4% Prese
Slide 10: BCF | International
BCF | INTERNATIONAL Q1 Q2 Q3 9M Decline abates as Oceania continues to grow while Vietnam recovers SALES 8% 11% 1% 7% CY 2020 9.7 9.3 11.0 30.0 Investor Presentation: 9M CY2020 Business Results Q1 CY 2019 10.5 10.4 11.2 32.1 5 SALES In Constant Currency 4.5 Oceania* +19% +5% +3% +8% • Q3 Sales grow
Slide 11: AIC: Strong performance in Sugar & Flour offsets Farms downsizing
AIC Strong performance in Sugar & Flour 22.3 +9% offsets Farms downsizing 20.4 SALES 10.5 13.1 +25% Investor Presentation: 9M CY2020 Business Results Q1 BUSINESS UNIT PERFROMANCE 5 Commodity Foods Group (CFG) SALES 4.5 10.0 9.2 -7% SURE +31% 4 • Topline driven by higher volumes in Sugar and Flour 9M
Slide 12: Balance Sheet & Cash Flows: Strong Balance Sheet and Cash Position
Balance Sheet & Cash Flows Cash and Financial Debt* Strong Balance Sheet and Cash Position 41.2 37.3 Investor Presentation: 9M CY2020 Business Results Q1 12.1 16.4 5 • Php 15.9B Cash balance – very healthy 9M CY19 9M CY20 4.5 and above historical levels 4 Cash + Financial Assets at FVPL + AFS Financ
Slide 13: Our Agenda
Investor Presentation: 9M CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) 9M CY2020 Unaudited Financial Results 3.) Recovery & Strategy Updates 4.) Restructuring & Acquisition Updates 13
Slide 14: Recovery & Strategy Updates
RECOVERY & STRATEGY UPDATES Products and IPM 2020;Brands with Purpose; New People and Planet Friendly Culture Investor Presentation: 9M CY2020 Business Results Brands Consumer Trends, Insight to Action, Protect the Core Safety, People Productivity, New Workplace, People Love Accelerate Digital, Qual
Slide 15: Recovery & Strategy Updates: People and Planet Friendly Culture
RECOVERY & STRATEGY UPDATES People and Planet Friendly Culture Investor Presentation: 9M CY2020 Business Results People Productivity, New Workplace, Accelerate Digital People Digitally Enabled Open-connectivity Quiet Zones Space Accessible dashboards Innovation hub per floor Technology Equip meeting
Slide 16: ESG Updates: We continue to improve on our sustainability commitments
ESG Updates: We continue to improve on our sustainability commitments OUR PEOPLE OUR COMMUNITIES1 QUALITY GROWTH IN TALENT SAFETY EDUCATION NUTRITION ENVIRONMENT Certified 11 Plants with FSSC 22000 Investor Presentation: 9M CY2020 Business Results Lost Time as of Sep 2020 Average Injury -30% 15 trai
Slide 17: Governance Update: Strengthening our Board Diversity and Management Team
Governance Update: Strengthening our Board Diversity and Management Team URC Board of Directors - 4 out of 9 now independent Investor Presentation: 9M CY2020 Business Results - 2 female directors Rizalina G. Mantaring Christine M.B. Angco Independent Director Independent Director
Slide 18: Our Agenda
Investor Presentation: 9M CY2020 Business Results OUR AGENDA 1.) Covid-19 Market Landscape 2.) 9M CY2020 Unaudited Financial Results 3.) Recovery & Strategy Updates 4.) Restructuring & Acquisition Updates 18
Slide 19: Acquisition Updates
Acquisition Updates Central Azucarera de la Carlota Inc. (CACI) and Roxol Bioenergy Corporation (RBC) This is an asset acquisition amounting to Php 4.9B Investor Presentation: 9M CY2020 Business Results (with VAT). We anticipate to add Php 4.0B in sales and Php 600M of EBITDA before synergies. I. SU
Slide 20: Restructuring Updates
Restructuring Updates Investor Presentation: 9M CY2020 Business Results Supply Chain Farms Consolidation Downsizing Australia phase 1 on track for 2020 completion Php 0.3B started in 2019 Php 0.5B started in 2019 Php 0.5B additional in 2020 Philippines phase 1 in 2021/2022 Focus our portfoli
Slide 21: Thank You
Investor Presentation: 9M CY2020 Business Results THANK YOU 21 21
Slide 22: Income Statement
Income Statement 9M 2020 9M 2019 YoY (Php Millions) (Unaudited) (Unaudited) NET SALES 99,773 99,785 0% Investor Presentation: 9M CY2020 Business Results Cost of Sales 69,160 70,162 -1% GROSS PROFIT 30,613 29,623 3% Operating Expense -18,702 -18,591 1% • Increase in net income OPERATING INCOME 11,911
Slide 23: Balance Sheet
Balance Sheet 9M 2020 CY 2019 (Php Millions) (Unaudited) (Audited) Cash & cash equivalents Investor Presentation: 9M CY2020 Business Results 16,411 20,975 (including Financial assets at FVPL and FVOCI) Other current assets 44,606 43,945 Property, plant, and equipment 58,357 54,626 Other noncurrent a
Slide 24: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) Investor Presentation: 9M CY2020 Business Results 9M 2020 9M 2019 YoY 9M 2020 9M 2019 YoY 9M 2020 9M 2019 bps Branded Consumer Foods 77,432 79,338 -2% 9,455 8,890 6% 12.21% 11.21% 101 Total Philippines 47,396 47,213 0% 6,601 5,851 13% 13.93
Slide 25: Market Shares
Market Shares Philippines Thailand MARKET CATEGORY MARKET SHARE #1 #2 #3 CATEGORY #1 #2 #3 SHARE Investor Presentation: 9M CY2020 Business Results Biscuits 22.3% URC 10.5% 6.6% Snacks 37.6% URC 21.6% 5.1% Wafers 22.6% URC 11.7% 9.5% Candies 26.8% URC 12.7% 10.7% Vietnam Chocolates and CATEGORY MARK