Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2023 Earnings Presentation
35 slides from Alliance Global's earnings presentation, Aug 14, 2023
Slide 1: A Premium-Lifestyle Conglomerate
A Premium-Lifestyle Conglomerate First Half 2023 Analysts' Briefing August 14, 2023
Slide 2: AGI performance highlights
AGI performance highlights AGI P&L Highlights P&L Highlights, by key subsidiary 1H22 1H23 MEG EMI NWR GADC 99.1 +20% 32.0 82.6 YoY 31.1 20.2 15.2 7.9 14.2 12.0 9.2 4.7 +19% 8.2 YoY +12% YoY 0.8 1.0 Revenues Pre-minority income Attributable profit Revenue Revenue Profit Revenue Profit Revenue Profit
Slide 3: AGI revenue and profit share
AGI revenue and profit share Revenue Share Profit Share MEG EMI NWR GADC MEG EMI NWR GADC 5% 5% 21% 32% 52% 15% 38% 32% 3
Slide 4: AGI 2Q23/1H23 financial performance
AGI 2Q23/1H23 financial performance in Pbn 2Q2023 1Q2023 QoQ chg 2Q2022 YoY chg 1H2023 1H2022 YoYchg Group revenues 48.8 50.3 -3% 45.1 8% 99.1 82.6 20% Megaworld 15.7 16.2 -3% 14.4 9% 31.9 27.3 17% • All major subsidiaries Emperador 15.5 15.6 -1% 15.4 1% 31.1 27.7 12% contributed to robust topline T
Slide 5: Group Borrowings
Group Borrowings GROSS DEBTS, by key subsidiary AGI GEARING MEG EMI NWR GADC Parent & others Net debt (cash) Net debt/equity 0.48x 0.49x 0.47x 209 218 215 214 213 198 0.36x 39 0.32x 0.34x 36 42 42 40 37 2 0 2 1 1 1 57 54 52 49 60 45 25 24 25 34 39 37 94 95 98 86 76 76 139 145 138 119 119 129 2018 20
Slide 6: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT 0.54x 1.44x 0.08x 0.31x 1.39x 0.29x 0.46x 0.07x 0.28x 1.24x (4.9) (5.2) (5.3) (6.6) (8.2) (7.3) 0.39x 0.26x 0.99x 0.22x 0.22x 0.20x 0.82x 0.06x 0.77x 0.12x 0.16x 0.04x 0.04x 0.03x -0.57x -0.65x -0.68x -0.72x -0.81x -0.84x 58.2 52.8 45
Slide 7: Capital Expenditure
Capital Expenditure AGI CAPEX, by key subsidiary 70 ▪ Capex spent in 1H23: P29.4bn 63 4 (42% of P70bn 2023 budget) 2 57 4 11 7 3 48 5 2 1 4 6 36 2 1 29 7 1 2 1 55 48 1 46 GADC 38 NWR 28 EMI 25 MEG 2019 2020 2021 2022 1H23 2023E 7 All items are in billion pesos.
Slide 8: Share Buyback Program
Enhancing Shareholder Value Share Buyback Program AGI MEG 77% 55% ▪ Buyback program size: P9.0bn ▪ Buyback program size: P5.0bn ▪ Amount utilized: P6.9bn (77%) ▪ Amount utilized: P2.7bn (55%) ▪ 597.4m shares bought at an average price ▪ 1.1m shares bought at an average price P11.61 per share. P2.59
Slide 9: Megaworld Corporation
Megaworld Corporation 1H2023 Financial Performance 30 4,549 1,400 484 4,713 Townships & Integrated Landbank Offices GLA Lifestyle Malls GLA Hotel Lifestyle Communities (has) ('000 sqm) ('000 sqm) Room Keys
Slide 10: MEG 2Q23/1H23 financial performance
MEG 2Q23/1H23 financial performance P&L summary (Pbn) 2Q2023 1Q2023 QoQ chg 2Q2022 YoY chg 1H2023 1H2022 YoYchg Revenue 15.8 16.2 -3% 14.3 10% 32.0 27.5 17% Residential 9.7 9.4 3% 8.9 8% 19.1 17.0 12% • Real estate sales buoyed by Office 3.1 3.1 0% 3.0 3% 6.3 6.0 4% higher project completion. Malls
Slide 11: MEG quarterly performance
MEG quarterly performance REVENUE EBITDA NET INCOME 15.8 15.0 7.1 7.2 14.6 6.8 7.0 5.1 0.8 6.8 0.1 13.3 13.7 0.9 0.1 0.8 6.1 0.1 0.1 0.3 0.7 12.3 0.6 4.3 0.1 4.1 0.5 4.4 3.8 4.4 3.8 3.9 3.5 4.0 4.0 3.6 3.8 3.7 3.1 3.4 2.8 2.5 10.7 9.2 9.4 9.7 8.9 8.1 3.3 3.1 3.1 2.9 3.0 2.7 Q122 Q222 Q322 Q422 Q123
Slide 12: MEG quarterly performance
MEG quarterly performance RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real estate sales Gross Profit Development GP margin Total Rental EBITDA EBITDA margin Hotel revenues Hotel EBITDA EBITDA margin 33% 51% 88% 89% 50% 87% 87% 88% 88% 49% 49% 49% 17% 15% 48% 12% 13% 13% 89
Slide 13: Operational updates
Operational updates P76.1bn RESERVATION SALES vs P130bn 2023 target P28.2bn PROJECT LAUNCHES vs P60bn 2023 target P24.9bn CAPEX vs P55bn 2023 target 13
Slide 14: Additional space and room keys pipeline
PREMIER OFFICES 209.4K Additional space (GLA) 2023-2026 LIFESTYLE MALLS 184.5K Additional space (GLA) 2023-2026 HOTELS & RESORTS 3,159 Additional room keys 2023-2028 14
Slide 15: The Sampaguita Project
THE SAMPAGUITA PROJECT MEGAWORLD HOTELS & RESORTS
Slide 16: Emperador Inc.
Emperador Inc. 1H2023 Financial Performance 6 5 >100 25 Vineyards Distilleries Countries under Domestic in Spain in Scotland global distribution system Sales Offices
Slide 17: EMI 2Q23/1H23 financial performance
EMI 2Q23/1H23 financial performance P&L summary (Pbn) 2Q2023 1Q2023 QoQ chg 2Q2022 YoY chg 1H2023 1H2022 YoYchg Revenue 15.5 15.6 0% 15.7 -1% 31.1 28.1 11% Brandy 8.9 9.8 -9% 10.3 -14% 18.6 17.9 4% • Robust whisky sales driven by Whisky 6.6 5.8 14% 5.5 22% 12.5 10.2 23% growing popularity of premium
Slide 18: EMI quarterly performance
EMI quarterly performance ATTRIBUTABLE INCOME REVENUE ATTRIBUTABLE INCOME 20.1 3.1 2.9 15.7 15.6 15.5 14.6 6.3 2.3 2.4 2.1 1.4 12.3 1.9 1.1 5.5 5.8 5.6 6.7 4.7 0.9 1.3 1.4 1.1 13.8 10.3 9.8 1.7 1.7 9.0 8.9 7.6 1.2 1.0 0.9 1.0 Q122 Q222 Q322 Q422 Q123 Q223 Q122 Q222 Q322 Q422 Q123 Q223 Brandy Whisky
Slide 19: EMI quarterly performance
EMI quarterly performance WHISKY REVENUE, GROSS PROFIT, MARGIN BRANDY REVENUE, GROSS PROFIT, MARGIN Whisky revenues Gross profit GP margin Brandy revenues Gross profit GP margin 45.5% 46.3% 30.9% 25.7% 27.0% 25.4% 24.8% 43.3% 23.3% 40.3% 40.8% 41.3% 6.7 6.3 5.8 5.5 5.6 13.8 4.7 10.3 9.8 9.0 8.9 3.0
Slide 20: Whisky segment now makes up a significant portion of the business
Whisky segment now makes up a significant portion of the business Revenues Attributable Income 40% 1H23 1H23 58% ✓ Growth of whisky business is in line with our strategy ✓ Expect whisky segment to continue growth following global trends for whisky and premiumization ✓ Investments in expanding whi
Slide 21: Dalmore Distillery Expansion
Dalmore Distillery Expansion The expansion will double the distillery’s production capacity to cater future plans Construction started towards the end of 2022 and is expected to be completed in mid-2024 21
Slide 22: Expansion of Maturation Complex in Invergordon Distillery
Expansion of Maturation Complex in Invergordon Distillery Doubling footprint to 92 hectares Will build additional warehouses for whisky aging Project will span many years and will eventually house an additional 1.5 million casks 22
Slide 23: Travellers International Hotel Group, Inc.
Travellers International Hotel Group, Inc. 1H2023 Financial Performance 2,742 6 77% 408 2,072 Hotel room International Hotel Occupancy VIP and mass Slots keys Hotel Brands (1H2023) gaming tables
Slide 24: NWR 2Q23/1H23 financial performance
NWR 2Q23/1H23 financial performance P&L summary (Pbn) 2Q2023 1Q2023 QoQ chg 2Q2022 YoY chg 1H2023 1H2022 YoYchg Gross gaming revenue 8.7 8.9 -2% 8.2 7% 17.6 14.7 20% Mass 3.7 3.4 10% 3.2 18% 7.1 4.9 43% VIP 5.0 5.5 -9% 5.0 0% 10.5 9.8 8% Less: promotional allowance (2.9) (2.8) 5% (2.5) 16% (5.7) (5.
Slide 25: NWR quarterly performance
NWR quarterly performance NET REVENUES EBITDA 2.4 8.6 2.2 7.9 2.1 2.2 7.3 7.0 1.8 6.4 1.8 1.4 1.5 1.6 1.2 1.4 4.8 0.9 6.8 5.7 6.1 5.8 5.2 3.9 Q122 Q222 Q322 Q422 Q123 Q223 Q122 Q222 Q322 Q422 Q123 Q223 Net gaming Non-gaming 25 All items are in billion pesos.
Slide 26: NWR quarterly performance
NWR quarterly performance GGR: Mass vs VIP Average Daily Visitors 37.4 36.5 9.1 34.4 8.9 8.7 8.2 8.0 27.9 6.5 23.8 5.8 5.5 5.0 5.0 4.9 4.7 13.7 3.3 3.4 3.7 3.1 3.2 1.8 Q122 Q222 Q322 Q422 Q123 Q223 Q122 Q222 Q322 Q422 Q123 Q223 Mass VIP 26 All items are in billion pesos except average daily visitors
Slide 27: Play Live Casino Games Online!
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Slide 28: The Whisky Library
THE WHISKY LIBRARY
Slide 29: Golden Arches Development Corporation
Golden Arches Development Corporation 1H2023 Financial Performance 702 511 413 497 Store McDelivery Stores with NXTGEN Count hubs Drive-thru stores
Slide 30: GADC 2Q23/1H23 financial performance
GADC 2Q23/1H23 financial performance P&L summary (Pbn) 2Q2023 1Q2023 QoQ chg 2Q2022 YoY chg 1H2023 1H2022 YoYchg Systemwide Sales 18.0 17.2 4% 14.7 23% 35.2 27.4 29% Sales Revenues 10.2 9.9 3% 8.2 25% 20.2 15.4 31% Sales by co. restos 9.3 9.0 3% 7.5 25% 18.3 14.0 31% Rent, royalty & others 0.9 0.9 3
Slide 31: GADC quarterly performance
GADC quarterly performance SYSTEMWIDE SAME-STORE SALES, GROSS PROFIT, MARGIN NUMBER OF STORES SALES GROWTH 23.8% 23.9% 25.3% 23.6% 23.2% 21.3% 35.4% 36.0% 704 702 669 671 30.9% 655 56 57 28.5% 28.8% 55 50 51 28.1% 72 72 10.5 70 69 71 10.2 25.5% 9.9 22.2% 21.6% 8.6 8.2 284 298 325 327 283 7.2 16.1% 2
Slide 32: 702 stores, 50 new stores
702 stores 1H2023 50 new stores 2023 Target 32
Slide 33: 20th store that runs on solar power
20 store th that runs on solar power As of August 11,2023 33
Slide 34: Key Takeaways
Key Takeaways ▪ AGI continued to record strong financial and operating performance in 1H23 across all business segments. ▪ While we have seen inflationary pressures, we have generally kept controllable costs at bay, indicating our efforts to maintain cost efficiencies. ▪ We have allocated an aggress
Slide 35: A Premium-Lifestyle Conglomerate
A Premium-Lifestyle Conglomerate First Half 2023 Analysts' Briefing August 14, 2023
Alliance Global Group — H1 2023 Earnings Presentation on 6ix