Alliance Global Group Inc. · PSE:AGI
Alliance Global — FY2018 Earnings Presentation
48 slides from Alliance Global's earnings presentation, September 2019
Slide 1: Alliance Global FY2018 Presentation Kit
WA ALLIANCE GLOBAL FY2018 Presentation Kit
Slide 2: AGI By the Numbers
AGI By the Numbers Hotel room Hotels Consolidated revenue Attributable Parent net keys (Pbn) income debt/equity (Pbn) (%)
Slide 3: 2018 performance at a glance
2018 performance at a glance MEG EMP RWM GADC 57.4 156.8 47.1 138.8 26.7 28.7 9.9 22.3 23.7 5.5 15.2 15.1 0.9 0.6 2017 2018 3 *As taken out from subsidiaries’ FS
Slide 4: 4Q 2018 P&L highlights
4Q 2018 P&L highlights P&L highlights (Pbn) 4Q18 4Q17 % chg Comments Group revenues 44.6 38.5 16% Megaworld 15.4 13.5 15% PFRS 15 adjustments; stronger rental growth Emperador 16.7 15.2 10% Driven by WMG brands. Travellers 3.9 3.0 29% Recovery in VIP rolling and GGR. GADC 8.2 7.2 13% SSSG up 4.4%. O
Slide 5: 2018 P&L highlights
2018 P&L highlights P&L highlights (Pbn) 2018 2017 % chg Comments Group revenues 156.8 138.8 13% Megaworld 56.9 49.9 14% PFRS 15, higher rentals and completion of residential projects. Emperador 47.0 42.7 10% Driven by foreign brands. Travellers 22.4 18.8 20% Increase in VIP GGR and nongaming revenu
Slide 6: 2018 performance at a glance
2018 performance at a glance 18% 3%5% 38% 14% 33% 59% 30% MEG EMP RWM GADC MEG EMP RWM GADC 6
Slide 7: Group investment commitments
Group investment commitments 87 85 1 77 2 10 72 71 3 1 70 13 1 11 2 2 55 10 3 11 15 36 6 15 1 6 9 2 Total capex 26 31 16 65 budget for 15 19 1 1 55 49 49 51 2018-2020: 1 5 40 32 4 13 20 24 P240bn 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E MEG EMP RWM GADC INFRACORP 7 *2018 figures are unaudi
Slide 8: Group borrowings
Group borrowings 10% 198 181 37 8% 144 35 1 118 1 45 6% 30 31 97 20 2 22 64 70 19 2 14 38 39 4% 2 29 13 29 24 22 2 29 2% 1 18 61 75 76 19 0 53 0 29 34 20 0% 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 MEG EMP (with ELS) RWM GADC Parent & others MEG EMP RWM GADC Parent Group
Slide 9: Group gearing
Group gearing 0.48x 0.48x 0.52x 0.41x 0.37x 0.34x 0.36x 0.78x 0.31x 0.31x 0.00x 0.17x -0.13x 0.47x 0.22x 19.2 28.0 31.8 0.02x 38.9 84.1 111.1 139.4 (24.0) (6.2) (0.0) 4.3 0.19x (37.6) 0.05x 1.9 8.6 20.9 35.4 0.07x -0.20x -0.78x (8.1) (4.4) 8.4 29.8 44.8 58.5 58.2 -3.1 -0.11x 2013 2014 2015 2016 2017
Slide 10: Megaworld Corporation FY2018 Performance Highlights
WX MEGAWORLD MEGAWORLD CORPORATION FY2018 PERFORMANCE HIGHLIGHTS 10
Slide 11: Townships & integrated lifestyle communities
Townships & Landbank Office GLA Lifestyle Mall GFA Hotel Room integrated lifestyle (hectares) (‘000 sqm) (‘000 sqm) Keys communities 11
Slide 12: MEG: 2018 financial performance
MEG: 2018 financial performance P&L (in Pbn) 2018 2017 % Revenue* 57.4 50.1 15% Residential 38.0 35.3 12% • PFRS 15; project completion Office 8.7 7.3 20% • Higher GLA; rent increases Malls 5.5 4.6 21% Hotel 1.5 1.3 14% • Launch of new hotels EBITDA 25.3 21.1 20% • Improving mix EBIT 23.0 19.2 20% •
Slide 13: MEG: Sustained growth trajectory
MEG: Sustained growth trajectory 53.8 24.4 47.3 41.6 1.5 26.5 21.2 0.3 1.3 18.0 14.3 22.9 0.4 0.3 1.2 11.8 11.6 19.4 0.4 0.2 10.0 13.4 9.5 0.3 8.1 10.9 38.0 9.2 30.4 34.1 12.5 9.4 10.4 12.7 9.6 10.6 2016 2017 2018 2016 2017 2018 Development Rental 2016 2017 2018 Development Hotels Development Rental
Slide 14: MEG: Changing business mix
MEG: Changing business mix 14.2 13.9 6.8 12.6 13.2 0.3 6.2 6.0 6.2 0.1 11.6 11.7 12.2 11.5 0.5 7.4 5.4 0.3 5.3 5.2 0.1 0.1 0.3 0.4 3.7 0.1 0.3 0.3 0.4 3.4 3.8 6.6 6.5 6.7 0.2 0.1 0.1 3.0 3.4 4.5 0.1 3.1 2.9 2.9 3.0 5.8 5.7 0.1 5.9 0.1 0.1 2.4 2.8 3.0 0.1 0.1 2.4 2.7 4.8 0.1 0.1 3.7 2.4 2.9 3.4 2.3 0
Slide 15: MEG: Improving margins
MEG: Improving margins 91% 87% 88% 88% 89% 84% 88% 88% 33% 32% 46% 46% 45% 50% 46% 48% 49% 44% 4.1 25% 25% 27% 28% 27% 23% 3.9 13.9 3.6 3.6 491 3.1 3.2 3.2 12.1 3.0 387 369 335 348 8.7 3.4 3.7 314 303 316 7.7 7.8 3.1 3.2 7.2 7.5 2.7 2.8 2.9 7.1 2.5 6.1 6.1 157 3.7 4.3 127 3.3 3.2 3.5 3.4 103 95 83 7
Slide 16: Initiative: Expanding townships
Initiative: Expanding townships
Slide 17: Initiative: Geographic diversification
Initiative: Geographic diversification 27% 35% 12% 19% 65% 73% 81% 88%
Slide 18: Initiative: Expansion of rental segment
Initiative: Expansion of rental segment 1,539 1,119 1,013 851 737 621 509 432 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 943 727 616 511 291 330 280 287 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 18
Slide 19:
Slide 20: Travellers International Hotel Group FY2018 Performance Highlights
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. FY2018 PERFORMANCE HIGHLIGHTS
Slide 21: Hotel rooms and gaming facilities
Hotel Hotel Gaming Slots Marriott Grand rooms occupancy tables Ballroom (%) capacity
Slide 22: RWM 2018 financial highlights
RWM 2018 financial highlights P&L (in Pbn) 2018 2017 % Total revenue 24.7 21.1 17% Gaming 20.0 17.1 17% • Improvement in volume but lower hold rate Mass 12.3 12.1 1% • Mass drop +4% VIP 7.8 5.0 55% • Rolling volume +59% Non-gaming 4.7 4.0 17% • Hotel occupancy rates stable at 79% Gross profit 8.3 8.
Slide 23: RWM: Buoyed by continued VIP recovery
RWM: Buoyed by continued VIP recovery 6.4 27.5 24.7 3.8 21.1 23.6 4.7 20.0 3.8 4.0 17.1 9.0 3.0 7.8 23.6 5.0 20.0 17.1 14.7 12.1 12.3 2016 2017 2018 2016 2017 2018 Gaming Non-gaming 2016 2017 2018 23 Mass VIP
Slide 24: RWM: Buoyed by continued VIP recovery
RWM: Buoyed by continued VIP recovery 7.7 39% 6.3 5.9 1.5 5.4 5.5 5.6 6.3 1.1 4.9 29 33 4.5 1.2 5.3 1.1 1.0 1.1 4.7 27 25 26 28 0.9 4.5 4.5 22% 24 23 0.9 1.2 4.3 2.9 4.0 2.2 6.3 3.6 1.5 12% 14% 15% 16.2 17.4 5.3 1.4 1.5 13.8 4.3 4.5 4.5 4.7 1.8 15.1 13.2 14.3 4.0 3.6 1.4 1.4 5% 8% 1.0 15.0 12.8 0.8
Slide 25: Did you know? Sheraton Hotel Manila
setter Did you know? SHERATON HOTEL MANILA It has a total of 390 Filipino-inspired guestrooms and suites It will feature loft rooms, the first of its kind in luxury hotel accommodation in Manila
Slide 26: Travellers International and Megaworld hotels
WM) TRAVELLERS INTERNATIONAL MEGAWORLD 26
Slide 27: Home-Grown Hotel Brands under Megaworld
Home-Grown Hotel Brands under Megaworld 2,554 room keys v Eastwood Richmonde Hotel = ¥ Savoy Hotel Boracay ¥ Richmonde Hotel Ortigas v Savoy Hotel Manila v Richmonde Hotel Iloilo ¥ Twin Lakes Hotel v Fairways & Bluewater ¥ Lucky Chinatown Hotel ¥ Belmont Hotel Manila
Slide 28: Well-known International Hotel Brands under Travellers
Well-known International Hotel Brands under Travellers 2,528 room keys Existing brands: Upcoming brands: ¥ Marriott Hotel Manila ¥ Hotel Okura ¥ Holiday Inn Express v Ritz Carlton Hotel ¥ Marriott Courtyard ¥ Hilton Hotel Manila v Sheraton Manila Hotel
Slide 29: AGI: The country's largest hotel developer
AGI: The country’s largest hotel developer Hotel 42 - ~5, 1 00 revenues 38 room keys at present (Pbn) Near-term target: 12,00 room keys throughout the philinpines 2016 2017 2018
Slide 30: Emperador Inc. FY2018 Performance Highlights
= EMPERADOR INC. EMPERADOR INC. FY2018 PERFORMANCE HIGHLIGHTS
Slide 31: Countries under the global distribution system
Countries under the Domestic sales Vineyards Whyte and Mackay Bodegas Fundador global distribution offices (hectares) trademarks trademarks system worldwide worldwide 31
Slide 32: EMP: FY2018 financial performance
EMP: FY2018 financial performance P&L (in Pbn) 2018 2017 % Revenue* 47.1 42.7 10% Whisky 13.4 12.3 9% • Driven by The Dalmore sales Brandy 33.7 30.4 11% • Underpinned by Fundador sales Gross Profit 16.0 14.9 7% Whisky 5.3 4.1 30% • Slower growth in COGS Brandy 10.7 10.9 -1% • Increase in prices of b
Slide 33: EMP: Whisky segment delivers growth
EMP: Whisky segment delivers growth 47.1 7.7 42.7 6.8 41.0 10.2 1.0 6.3 8.8 9.3 13.4 1.1 1.8 1.3 11.4 12.3 1.4 2.2 6.6 5.0 5.0 33.7 9.1 29.6 30.4 7.4 7.0 FY16 FY17 FY18 FY16 FY17 FY18 Brandy Whisky 2016 2017 2018 Brandy Whisky Brandy Whisky 33 *All items are in billion pesos except margin(%)
Slide 34: EMP: Rising share of whisky
EMP: Rising share of whisky 47% 16.5 42% 34% 36% 40% 15.1 2.0 29% 28% 26% 38% 1.9 35% 34% 34% 37% 33% 4.1 1.7 31% 4.2 1.7 1.6 27% 11.0 1.6 9.7 9.8 1.5 0.4 0.6 9.0 9.1 9.5 0.4 3.2 0.5 0.4 2.8 0.3 1.2 0.4 4.3 2.4 2.8 2.9 3.3 4.1 0.2 3.3 3.2 12.4 2.8 2.9 2.8 10.9 2.5 13.0 1.9 1.9 7.9 1.5 1.4 11.2 6.5 6
Slide 35: Initiative: Improving market reach
Initiative: Improving market reach vs 78% vs 2014 11% vs EMEA 2014 9% Global 2014 Tra v e l R e t a i l Americas vs 2% 2014 Asia Pacific
Slide 36: Harveys: Did you know?
HARVEYS BRISTOL CREAM CLASSIC The flagship of the brand HARVEYS. Did you know? The Brand HARVEYS is the only essential wine brand in the English Royal House and the favorite wine of the queen of England. Bodegas Fundador is the official supplier and our wines are offered in the waiting room of Queen
Slide 37: Golden Arches Development Corporation FY2018 Performance Highlights
AA McDonald’s’ Philippines GOLDEN ARCHES DEVELOPMENT CORPORATION FY2018 PERFORMANCE HIGHLIGHTS
Slide 38: Systemwide same store sales growth and store count
Systemwide same Store count Dessert centers Stores with McDelivery store sales growth drive-thru Hub (%) 38
Slide 39: GADC: 2018 financial performance
GADC: 2018 financial performance P&L (in Pbn) 2018 2017 % Systemwide sales 47.9 42.6 12.3% • Helped by store expansion program Sales revenue 28.3 25.5 11% Sales by co. resto 25.6 23.1 11% • SSSG: 2018 up 4.0%; Q418 +4.4% Rent, royalty & others 2.7 2.5 10% • Increase in number of franchised stores Gr
Slide 40: GADC: Driven by store expansion
GADC: Driven by store expansion 28.3 25.5 1.6 1.6 22.6 2.7 2.5 2.6 2.6 1.2 2.1 2.0 25.6 23.1 20.5 2016 2017 2018 2016 2017 2018 Rent, royalty & others 2016 2017 2018 Sales by co-operated restaurants 40 *All items are in billion pesos except margin(%) and store geographic distribution
Slide 41: GADC: SSSG recovers in Q418
GADC: SSSG recovers in Q418 27% 620 24% 566 23% 22% 24% 23% 23% 520 51 14% 20% 6.8% 481 45 64 12% 6.6% 457 40 56 5.9% 35 35 48 5.3% 5.2% 5.7% 45 6.6% 42 249 10% 9% 221 8% 8% 9% 8% 5.8% 5.8% 4.4% 202 8% 5.3% 5.2% 168 180 8.0 4.9% 6% 6% 6% 7.1 6.9 5% 5% 6.3 6.3 6.6 6.8 5% 5.9 3.8% 4.0% 4% 212 221 230
Slide 42: Initiative: McDonald's world class experience
Initiative: McDonald’s world class experience Self-Ordering Kiosks Modernized menu boards Cashless mode of payment Split counter system Specially trained Guest Experience Leaders 42
Slide 43: Initiative: Expanding delivery network
Initiative: Expanding delivery network 43
Slide 44: Did you know?
Did you know? Filipinos can now enjoy the same mouth-watering products with four new and exciting Japanese-inspired meals! ~ : A. Flavors of Japan offerings include Ebi Surger -- Wa ' ; the new Ebi Burger (with actual > shrimp!), Teriyaki Samurai Burger, Nori Shake Shake Fries, and Strawberry Sakura
Slide 45: Infracorp
INFRACORP AN ALLIANCE GLOBAL COMPANY
Slide 46: Fort Bonifacio - Makati Skytrain
Fort Bonifacio - Makati 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 c o n n e c t M R T 3 G u a d a l u p e S ta t i o n t o U p t o w n B o n i fa c i o May June- Oct 2017 4Q2019* 2018 Present Submission of DOTr grant NEDA E
Slide 47: NAIA consortium
NAIA consortium Feb Sep Sep- 2018 2021 2023 2018 2018 Present 4Q2019* Submission of DOTr-MIAA NEDA Estimated project unsolicited grant of Original evaluation award proposal Proponent Status *subject to change 47
Slide 48: End of Presentation
WA ALLIANCE GLOBAL END OF PRESENTATION