Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2021 Earnings Presentation
36 slides from Alliance Global's earnings presentation, Aug 13, 2021
Slide 1: 1H2021 Analysts' Briefing
1H2021 Analysts’ Briefing 13 August 2021 1
Slide 2: Performance highlights
Alliance Global Group, Inc. Performance highlights P&L Highlights P&L Highlights of subsidiaries Revenue share 1H20 1H21 MEG EMP RWM GADC 71.2 17% 25.3 61.4 22.2 31% 17% 11.8 7.0 5.0 5.1 12.8 8.5 35% 4.1 3.8 2.6 0.05 Revenues Pre-minority Attributable Profit Profit Revenue Revenue Profit Revenue Rev
Slide 3: 2Q21/1H21 financial performance
Alliance Global Group, Inc. 2Q21/1H21 financial performance in Pbn 2Q21 1Q21 QoQ chg 2Q20 YoY chg 1H21 1H20 YoY chg Comments Group revenues 39.3 31.8 24% 23.3 69% 71.2 61.4 16% Megaworld 11.9 10.1 19% 8.6 39% 22.0 23.6 -7% Improved QoQ performance across all business segments Emperador 13.3 12.0 10%
Slide 4: Group borrowings
Alliance Global Group, Inc. Group borrowings Gross debts, by key subsidiary AGI gearing 218 213 0.49x 198 209 0.48x 0.47x 0.44x 181 39 0.42x 36 39 37 2 0 2 0.35x 144 35 1 1 60 57 55 209 218 213 45 198 30 31 2 181 22 34 31 38 39 37 144 29 75 76 76 86 85 61 2016 2017 2018 2019 2020 1H21 2016 2017 2018
Slide 5: Group gearing
Alliance Global Group, Inc. Group gearing MEG EMP RWM GADC PARENT 0.36x 1.44x 0.08x 0.54x (1.7) (3.8) (4.9) (5.2) (5.3) (5.9) 1.28x 0.07x 0.31x 0.31x 0.48x 1.24x 0.46x 0.06x 0.05x 0.26x 0.27x 0.39x 0.37x 0.36x 0.05x 0.22x 0.77x -0.28x 0.54x -0.52x 0.03x 0.26x -0.57x -0.65x -0.72x 44.8 58.5 58.2 52.8
Slide 6: Capital Expenditures
Alliance Global Group, Inc. Capital Expenditures AGI’s capex by major subsidiary 75 74 71 2 2 9 1 63 11 15 2 15 2 11 9 2 36 41 ▪ 2021 target capex of P41bn 1 2 1 2 55 7 1 ▪ 1H21 capex utilized: P19.2bn 19 49 49 48 1 (47% of capex budget) 1 36 28 1 15 2016 2017 2018 2019 2020 1H21 2021E MEG EMP RWM G
Slide 7: Employee vaccination rates
95% 94% * * * 90% 98% * Percentage of vaccinated employees in head office only 7
Slide 8: 1H2021 Performance Highlights
1H2021 PERFORMANCE HIGHLIGHTS 26 4,300 4,163 1,398 462 Townships & Landbank Hotel room Offices GLA Lifestyle malls Integrated Lifestyle (has) keys (‘000 sqm) GLA (‘000 sqm) Communities 8
Slide 9: Megaworld 2Q21/1H21 financial performance
Megaworld Corporation 2Q21/1H21 financial performance P&L summary (Pbn) 2Q21 1Q21 QoQ% 2Q20 YoY% 1H21 1H20 YoY% Comments Revenue 12.1 10.1 19% 8.7 38% 22.2 23.8 -7% Residential 7.6 5.9 29% 4.7 62% 13.5 14.3 -5% Higher project completion Office 2.7 2.6 4% 2.8 -5% 5.3 5.6 -6% Stable occupancy rates Ma
Slide 10: Megaworld Performance highlights
Megaworld Corporation Performance highlights RES vs Gross Profit Rental vs EBITDA Hotel vs EBITDA 21% 47% 93% 45% 45% 45% 45% 87% 87% 88% 13% 86% 85% 43% 7% 8% 4.2 551 9.6 3.4 -13% 3.21 7.6 3.1 3.0 389 367 -18% 336 5.8 5.9 2.3 314 3.9 4.7 4.7 250 4.3 3.1 3.0 2.8 2.9 3.5 2.4 116 2.6 2.8 2.1 2.0 49 21
Slide 11: Residential projects for completion in 2021
RESIDENTIAL PROJECTS FOR COMPLETION IN 2021 4,000 units and lots worth P60bn 11
Slide 12: Rental properties for completion in 2021
RENTAL PROPERTIES FOR COMPLETION IN 2021 270k construction floor area 12
Slide 13: Alfresco dining helped boost mall sales
Forbes Town McKinley West McKinley Hill Alfresco dining helped boost mall sales Uptown Mall Uptown Parade Iloilo Business Park 13
Slide 14: The Country's First Plant Mall
The Country’s First Plant Mall Reinventing the mall for the ‘planTito’ and ‘Plantita’ ▪ A 12,000-square-meter plant mall that takes inspiration from London’s Covent Garden, with its wide-open space and natural light. ▪ Anyone can find plants from this mall, ranging from P50 plant to as pricey as P1
Slide 15: McKinley Hill Cyberpark
McKinley Hill Cyberpark ▪ The ALTDSI aims to create new knowledge out of the abundant data available ▪ It will train the next generation workforce of data scientists, particularly professionals in the BPO industry. ▪ The state-of-the-art facilities was donated by MEG , while DLSU will sustain resear
Slide 16: MREIT: unlocking property values
MREIT: unlocking property values 3% retail and (Iloilo City) 4% Hotel other tenants 6% (fixed lease to Megaworld) (Quezon City) 38% 195.8k sq.m. (Taguig City) 56% occupied GLA 94% Metro Manila 93% Office Flagship REIT sponsored by Megaworld, the largest office developer and owner in the Philippines
Slide 17: MREIT: impact on MEG
MREIT: impact on MEG NAV Estimates Low Base High Base MEG NAV Baseline 280.1 389.5 Less: MREIT office GLA at cost (6.2) (18.8) Add: MEG share of MREIT office GLA at TP 28.4 28.4 Add: Proceeds from MREIT IPO 27.3 27.3 MEG NAV Revalued 329.6 426.4 Accretion from baseline NAV 18% 9% Less: MEG remaining
Slide 18: 1H2021 Performance Highlights
1H2021 PERFORMANCE HIGHLIGHTS 6 5 102 25 Vineyard estates Distilleries in Countries under Domestic sales in Spain Scotland global distribution offices system 18
Slide 19: Emperador 2Q21/1H21 financial performance
Emperador Inc. 2Q21/1H21 financial performance P&L summary (Pbn) 2Q21 1Q21 QoQ % 2Q20 YoY % 1H21 1H20 YoY % Comments Revenue 13.3 12.1 10% 10.9 22% 25.3 21.5 18% Brandy 8.2 8.2 0% 7.3 12% 16.3 14.9 10% Improved sales from mainstream brands and Spanish brandy Whisky 5.1 3.9 30% 3.6 42% 9.0 6.6 35% St
Slide 20: Emperador Performance highlights
Emperador Inc. Performance highlights WHISKY REVENUE, BRANDY REVENUE, GROSS PROFIT, MARGIN GROSS PROFIT, MARGIN 45% 40% 41% 41% 35% 32% 33% 29% 34% 35% 34% 5.1 19% 5.0 13.4 4.3 3.9 3.6 3.1 8.6 8.2 8.2 7.6 7.3 2.0 1.7 1.8 1.6 3.7 1.2 3.0 1.0 2.4 2.4 2.5 2.3 Q120 Q220 Q320 Q420 Q121 Q221 Q120 Q220 Q32
Slide 21: Emperador Coffee Brandy
EMPERADOR COFFEE BRANDY Coffee and brandy, taste good together
Slide 22: Tamnavulin Sherry Cask Edition
Tamnavulin Sherry Cask Edition Matured in American Oak Barrels and enhanced by a finesse in three different Sherry casks. A classic revelation from the Speyside Valley. ABV 40%
Slide 23: Oloroso Sherry cask finished whisky
Initially matured in American White Oak ex bourbon barrels, and finished in the finest aged, hand selected Oloroso Sherry casks from Jerez, Spain ABV 40% 23
Slide 24: The Dalmore Decades
THE DALMORE DECADES The Dalmore Decades collection features six rare single malt whiskies, each representing a different decade of the renowned brand’s history. 24
Slide 25: Travellers 2021 Performance Highlights
1Q2021 PERFORMANCE HIGHLIGHTS 2,743 6 64% 419 1,479 Hotel International Hotel VIP and mass Slots room keys Hotel Brands occupancy gaming tables 25
Slide 26: Travellers 2Q21/1H21 financial performance
Travellers International Hotel Group 2Q21/1H21 financial performance P&L summary (Pbn) 2Q21 1Q21 QoQ % 2Q20 YoY % 1H21 1H20 YoY % Comments Gross gaming revenue 3.4 4.6 -26% 0.6 494% 7.9 6.1 29% Affected by the reimposition of strict quarantine Mass 0.9 2.0 -55% 0.1 656% 2.9 3.3 -13% measures in Metr
Slide 27: Travellers Performance highlights
Travellers International Hotel Group Performance highlights Gross Revenues GGR: Mass vs VIP Average Daily Visitors 6.9 5.6 28.1 1.3 5.2 4.6 4.6 4.6 2.4 4.0 0.6 3.2 3.4 0.6 3.7 1.2 2.6 0.4 2.4 11.2 5.6 2.2 2.4 4.6 7.8 4.0 3.4 3.2 6.1 3.2 4.3 1.0 0.6 2.0 1.5 0.4 1.0 0.9 0.4 0.9 0.6 0.1 Q120 Q220 Q320
Slide 28: Resorts World Manila
Resorts World Manila Epitomizing the essence of elegance and refined Japanese hospitality, it offers 190 spacious rooms and suites. It also offers a variety of dining options, including their signature Japanese fine-dining restaurant, Yamazato that has won has won the Tripadvisor 2021 Traveler’s Cho
Slide 29: Resorts World Manila
Resorts World Manila Epitomizing the essence of elegance and refined Japanese hospitality, it offers 190 spacious rooms and suites. It also offers a variety of dining options, including their signature Japanese fine-dining restaurant, Yamazato that has won has won the Tripadvisor 2021 Traveler’s Cho
Slide 30: Upgrade of the Garden Wing
Upgrade of the Garden Wing 30
Slide 31: GADC Performance Highlights
1Q2021 PERFORMANCE HIGHLIGHTS 653 463 337 189 Store count McDelivery hubs Stores with NXTGEN Drive-thru stores 31
Slide 32: GADC 2Q21/1H21 financial performance
Golden Arches Development Corporation 2Q21/1H21 financial performance P&L summary (Pbn) 2Q21 1Q21 QoQ % 2Q20 YoY % 1H21 1H20 YoY % Comments Systemwide Sales 10.80 9.83 10% 5.06 113% 20.64 16.75 23% Sales Revenues 6.11 5.66 8% 2.94 108% 11.77 9.70 21% Continued improvement in sales despite varying de
Slide 33: GADC Performance highlights
Golden Arches Development Corporation Performance highlights SALES, GROSS PROFIT, SYSTEMWIDE SAME-STORE STORE GEOGRAPHIC MARGIN SALES GROWTH DISTRIBUTION 26% 23% 20% 669 653 108.7% 655 16% 16% 620 6.8 566 55 50 49 51 70 6.1 69 69 1% 45 64 5.6 5.6 56 22.3% 4.5 249 284 283 283 221 -14.4% -15.8% 2.9 -1
Slide 34: BTS Meal
BTS MEAL • Some outlets sell over 1,000 BTS Meals in a day, 1000% more than their usual nugget sales. 30 TARGET NEW STORES in 2021 • On launch day alone, McDonald’s sold close to 3.5m nuggets 34
Slide 35: Key Takeaways
KEY TAKEAWAYS We expect the Group’s AGI continues to adopt to the 01 earnings diversification 02 New Normal through ongoing strategy to underpin its innovations of its products future performance. and services and by further investments in digitalization.. The Group will maintain AGI remains optimis
Slide 36: End of presentation
~ ALLIANCEGLOBAL End of presentation
Alliance Global Group — H1 2021 Earnings Presentation on 6ix