Slide 1: A Premium-Lifestyle Conglomerate: 9M2022 Analysts' Briefing
A PREMIUM-LIFESTYLE CONGLOMERATE 9M2022 Analysts’ Briefing 16 November 2022 1
Slide 2: Performance highlights
Performance highlights AGI P&L Highlights P&L Highlights Revenue share 9M21* 9M22 by key subsidiary +23% +46% +29% MEG EMI TRAV GADC MEG EMI TRAV GADC 42.5 42.6 128.4 104.4 19% 33% 23.9 18.3 14% 8.4 17.1 7.2 11.7 9.2 11.9 1.0 (0.2) 33% Revenues Pre-minority Attributable Revenue Profit Revenue Profit
Slide 3: AGI 9M2022 performance vs pre-pandemic levels
AGI 9M2022 performance vs pre-pandemic levels AGI MEG EMI TRAV GADC Continued to post 101% of 88% of 103% of 104% of pre-pandemic levels pre-pandemic levels record-level pre-pandemic levels pre-pandemic levels performance 127.0 128.4 42.6 110.1 48.1 38.4 26.3 25.5 24.0 42.5 34.5 23.1 33.8 91.8 36.9
Slide 4: 3Q2022/9M2022 financial performance
3Q2022/9M2022 financial performance in Pbn 3Q2022 2Q2022 QoQ chg 3Q2021 YoY chg 9M2022 9M2021 YoY chg Group revenues 45.8 45.1 2% 38.9 18% 128.38 110.1 17% • AGI topline boosted by increased Megaworld 15.0 14.4 4% 14.6 2% 42.3 36.6 16% mobility and spending, higher Emperador 14.4 15.4 -6% 12.6 14% 4
Slide 5: Group Borrowings
Group Borrowings GROSS DEBTS AGI GEARING by key subsidiary 0.48x 0.49x 0.47x 0.42x 218 215 220 0.38x 209 0.36x 198 181 39 42 45 36 37 0 2 2 1 35 1 1 60 57 54 50 45 31 25 23 34 38 39 37 94 101 75 76 76 86 114 139 145 138 119 132 2017 2018 2019 2020 2021 9M22 2017 2018 2019 2020 2021 9M22 MEG EMP TRAV
Slide 6: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT 0.36x 0.31x 0.54x 1.44x 0.08x 1.39x (3.8) (4.9) (5.2) (5.3) (6.6) (8.3) 0.07x 0.48x 0.27x 0.46x 1.24x 0.07x 0.26x 0.22x 0.39x 1.11x 0.22x 0.06x 0.20x 0.77x 0.04x 0.12x 0.54x -0.52x -0.57x -0.65x -0.72x 0.03x -0.81x -0.96x 58.5 58.2 52
Slide 7: Capital Expenditure
Capital Expenditure AGI’S CAPEX 74 71 by major subsidiary 2 2 63 60 11 15 2 ▪ Capex spent in 9M22: 9 2 11 48 3 4 45 P45.3bn (76% of budget) 2 1 3 36 6 3 4 ▪ Capex budget in 2022: 1 2 3 7 P60bn 55 1 INFRACORP 49 48 50 GADC 38 35 28 TRAV EMP MEG 2017 2018 2019 2020 2021 9M22 2022E All items are in bil
Slide 8: Share Buyback Program
Enhancing Shareholder Value Share Buyback Program 61% 41% AGI MEG ▪ Buyback program size: P4.0bn ▪ Buyback program size: P5.0bn ▪ Amount utilized: P2.4bn (61%) ▪ Amount utilized: P2.0bn (41%) ▪ 214.0m shares bought at an average ▪ 742m shares bought at an average price P11.41 per share. price P2.75
Slide 9: Dividends
Enhancing Shareholder Value Dividends AGI MEG ▪ Dividend per share: P0.12 ▪ Dividend per share: P0.0615 ▪ Record date: Dec 1, 2022 ▪ Record date: Oct 31, 2022 ▪ Payment Date: Dec 22, 2022 ▪ Payment Date: Nov 14, 2022 As of November 15, 2022 9
Slide 10: AGI group supported 17 UN Sustainable Development Goals
AGI group supported 17 UN Sustainable Development Goals 10 10
Slide 11: UN Sustainable Development Goals
UN Sustainable Development Goals Megaworld Emperador Travellers Golden Arches Empire East Global-Estate Megaworld Emperador 11 Travellers Golden Arches Empire East Global-Estate 11
Slide 12: Sustainability Programs
SUSTAINABILIY PROGRAMS 12 MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES ▪ All new townships to have at ▪ Reuse of empty bottles ▪ “I Love Earth” initiatives ▪ Green & Good Program least 40% open space. ▪ Water conservation and ▪ Waste Recovery Programs ▪ Green Building Solutions ▪ Roll out programs t
Slide 13: Megaworld Corporation
28 Townships & Integrated Lifestyle Communities 5,000 Landbank (has) 4,163 Hotel room keys 1,398 Offices GLA (‘000 sqm) MEGAWORLD CORPORATION 462 Lifestyle malls GLA 9M2022 FINANCIAL PERFORMANCE (‘000 sqm) 13
Slide 14: 3Q2022/9M2022 financial performance
3Q2022/9M2022 financial performance P&L summary (Pbn) 3Q2022 2Q2022 QoQ chg 3Q2021 YoY chg 9M2022 9M2021 YoY chg Revenue 15.0 14.3 5% 14.5 4% 42.5 36.9 15% • Rising mall occupancy rate to Residential 9.2 8.9 3% 9.6 -4% 26.2 23.1 13% 90% amid increased foot traffic and revenge shopping, dining; Offic
Slide 15: Quarterly Performance
Quarterly Performance REVENUE EBITDA Net Income In Pbn In Pbn In Pbn 5.3 13.7 7.4 13.5 13.3 7.1 0.7 6.6 0.1 0.6 12.3 12.3 0.6 6.5 6.5 0.1 11.2 0.7 0.5 0.1 0.1 0.1 0.4 3.3 3.9 5.6 3.8 0.0 9.3 3.7 3.7 4.8 3.6 3.7 3.2 0.3 3.2 3.2 3.1 0.0 3.5 2.8 3.5 2.6 3.0 2.4 2.5 3.1 2.9 9.6 8.9 9.2 7.6 8.0 8.1 5.9 3
Slide 16: Quarterly performance
Quarterly performance RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real estate sales Gross Profit GP Margin Rentals Rental EBITDA EBITDA margin Hotel revenues Hotel EBITDA EBITDA margin 18% 50% 87% 88% 89% 88% 89% 89% 89% 49% 48% 47% 15% 45% 46% 45% 13% 13% 12% 13% 3.8 3.9
Slide 17: 2022-2023 Targets: Townships
2022-2023 TARGETS 4 TOWNHIPS 17
Slide 18: Revised 2022 Targets
Revised 2022 TARGETS P110bn P35bn P50bn RESERVATION SALES PROJECT LAUNCHES CAPEX BUDGET 18
Slide 19: Montrose Parkview
MONTROSE PARKVIEW The Capital Town | Pampanga P2.8bn P232k 51% SEP 2022 Project Value Current Selling Price Percentage Sold Date Launched (per sq.m.) 19
Slide 20: The Lindgren – Phase 3
THE LINDGREN – PHASE 3 Arden Botanical Estate | Cavite P2.7bn P99k 13% SEP 2022 Saleable Area Current Selling Price Percentage Sold Date Launched (per sq.m.) 20
Slide 21: International Finance Center
INTERNATIONAL FINANCE CENTER Uptown Bonifacio | Taguig City 69,000 2024 Gross Leasable Area Completion Year (sq.m.) 21
Slide 22: Enterprise 1 & 2
ENTERPRISE 1 & 2 Iloilo Business Park | Iloilo City 66,600 2024-2025 Gross Leasable Area Completion Year (sq.m.) 22
Slide 23: Boracay Newcoast Beachwalk
BORACAY NEWCOAST BEACHWALK Boracay Newcoast | Malay, Aklan 31,500 2025 Gross Leasable Area Completion Year (sq.m.) 23
Slide 24: The Capital Mall
THE CAPITAL MALL The Capital Town | Pampanga 32,200 2025 Gross Leasable Area Completion Year (sq.m.) 24
Slide 25: Grand Westside Hotel
GRAND WESTSIDE HOTEL Westside City | Paranaque 1,530 2023 Hotel Room Keys Completion Year 25
Slide 26: K-Town
K-TOWN Iloilo Business Park, Iloilo City 26
Slide 27: MassKara Festival
MASSKARA FESTIVAL Bacolod City 27
Slide 28: MREIT: 9M2022 Performance
MREIT: 9M2022 Performance Distributable Income Dividend 95% In Pm OCCUPANCY RATE 3.2 years 639 638 Weighted Average Lease Expiry (WALE) 621 0.055 12,900 SQM 594 3Q2022 CLOSED TRANSACTIONS 0.240 0.243 0.247 0.244 558 P1.214 0.185 Total dividend per share since IPO 8.2% Q3 2021 Q4 2021 Q1 2022 Q2 2022
Slide 29: Emperador Inc.
6 Vineyards In Spain 5 Distilleries In Scotland >105 Countries under global distribution system 25 EMPERADOR INC. Domestic sales offices 9M2022 FINANCIAL PERFORMANCE 29
Slide 30: 3Q2022/9M2022 financial performance
3Q2022/9M2022 financial performance P&L summary (Pbn) 3Q2022 2Q2022 QoQ chg 3Q2021 YoY chg 9M2022 9M2021 YoY chg Revenue 14.6 15.7 -7% 13.0 12% 42.6 38.4 11% • Whisky: consistent outperformer, Brandy 9.0 10.3 -12% 8.5 6% 26.9 24.8 8% driven by increasing popularity of Whisky 5.6 5.5 3% 4.5 24% 15.8
Slide 31: Quarterly Performance
Quarterly Performance REVENUE Net Income In Pbn In Pbn 17.6 3.2 15.7 3.0 14.6 2.8 13.3 5.2 0.5 13.0 12.3 0.6 1.4 12.1 5.5 2.1 2.2 2.1 5.6 2.0 5.1 4.5 3.9 4.7 0.8 0.7 0.9 1.1 2.5 12.4 2.2 10.3 1.8 8.2 8.2 8.5 9.0 7.6 1.4 1.4 1.2 0.9 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q121 Q221 Q321 Q421 Q122 Q222 Q32
Slide 32: Quarterly Performance
Quarterly Performance WHISKY REVENUE, GROSS PROFIT, MARGIN BRANDY REVENUE, GROSS PROFIT, MARGIN Whisky revenues Gross profit GP margin Brandy revenues Gross profit GP margin 44.6% 40.8% 41.3% 40.6% 40.6% 40.0% 40.3% 34.4% 38.4% 28.8% 28.5% 27.0% 25.7% 25.4% 5.5 5.6 5.2 12.4 5.1 4.7 4.5 10.3 3.9 9.0
Slide 33: Our vision for 2025
Our vision for 2025 Emperador’s growth aspirations for 2025 includes generating >50% of revenues and profits internationally (outside the Philippines) 37% 9M22 2025 50% 33
Slide 34: Travellers International Hotel Group, Inc.
2,743 Hotel room keys 6 International Hotel Brands 63% Hotel Occupancy (9M22) 416 VIP and mass gaming tables TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. 2,081 Slots 9M2022 FINANCIAL PERFORMANCE 34
Slide 35: 3Q22/9M22 financial performance
3Q22/9M22 financial performance P&L summary (Pbn) 3Q2022 2Q2022 QoQ chg 3Q2021 YoY chg 9M2022 9M2021 YoY chg Gross gaming revenue 8.0 8.2 -2% 4.9 63% 22.7 12.8 77% • GGR growth driven by strong Mass 3.2 3.1 1% 0.9 249% 8.1 3.8 115% recovery in mass segment, while VIP segment sustains upward VIP 4.9
Slide 36: Quarterly performance
Quarterly performance Gross Revenues GGR: Mass vs VIP Average Daily Visitors In Pbn In Pbn In ‘000 27.9 9.6 9.3 8.2 8.0 23.8 1.4 1.2 7.5 6.5 0.9 5.0 4.9 4.9 13.7 5.2 5.0 4.8 4.6 4.6 11.2 12.0 0.6 0.1 3.9 4.7 0.9 8.2 3.4 1.2 8.0 2.6 6.5 4.0 2.2 6.1 6.8 4.6 4.9 2.4 3.4 3.9 3.1 3.2 2.0 1.7 1.8 0.9 0.9
Slide 37: We are committed to sustainability, from the heart
WE ARE COMMITTED TO SUSTAINABILITY, FROM THE HEART Newport World Resorts has achieved the EarthCheck Bronze Benchmarked status — a big milestone in its sustainability journey. 37
Slide 38: Golden Arches Development Corporation
682 Store Count 482 McDelivery hubs 383 Stores with Drive-thru GOLDEN ARCHES DEVELOPMENT CORPORATION 370 NXTGEN 9M2022 FINANCIAL PERFORMANCE stores 38
Slide 39: 3Q22/9M22 financial performance
3Q22/9M22 financial performance P&L summary (Pbn) 3Q2022 2Q2022 QoQ chg 3Q2021 YoY chg 9M2022 9M2021 YoY chg Systemwide Sales 15.2 14.7 3% 10.5 44% 42.6 31.2 37% • Sustained growth in systemwide sales with further easing of Sales Revenues 8.6 8.2 4% 5.9 44% 23.9 17.7 35% restrictions. Sales by co. r
Slide 40: Quarterly performance
Quarterly performance SYSTEMWIDE SAME-STORE SALES, GROSS PROFIT, MARGIN NUMBER OF STORES SALES GROWTH Sales revenues Gross profit GP Margin Quarterly End-of-period NCR Luzon Visayas Mindanao 108.7% 25% 23% 23% 24% 24% 21% 14% 669 671 682 655 8.6 620 51 8.2 55 50 51 566 51 71 70 69 71 7.2 7.2 45 64 5
Slide 41: 9M22 Stores
2022 45 TARGET NEW STORES 9M22 682 STORES 41
Slide 42: PH's Most Beautiful McDonald's
PH’S MOST BEAUTIFUL MCDONALD’S McDonald’s Upper East | Bacolod 42
Slide 43: Tastes like Christmas
Tastes like Christmas Try our NEW McCrispy Hamonado Sandwich, Coffee Caramel McFlurry, Speculoos Cookie McFlurry, and Speculoos Cookie Frappe that will surely put you in a cheery holiday mood! 43
Slide 44: Key Takeaways
KEY TAKEAWAYS ▪ Despite a challenging third quarter, most of our business units still managed to achieve or even surpass pre-pandemic levels. ▪ We have maintained our competitive position by relying on: ✓ improved brand equity; ✓ aggressive/creative marketing strategies; ✓ extensive distribution net
Slide 45: A Premium-Lifestyle Conglomerate
A PREMIUM-LIFESTYLE CONGLOMERATE 9M2022 Analysts’ Briefing 16 November 2022 45