Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2020 Earnings Presentation
29 slides from Alliance Global's earnings presentation, September 2020
Slide 1: 1H2020 results briefing
CONSTANTLY WA ALLIANCE GLOBAL 1H2020 results briefing
Slide 2: AGI 1H2020 P&L highlights
AGI 1H2020 P&L highlights AGI P&L highlights P&L highlights of subsidiaries Revenue share* 1H19 1H20 16% MEG MEG EMP RWM GADC 39% 82.8 10% EMP 23.8 21.4 RWM GADC 61.4 35% 9.7 6.1 5.4 Attributable profit share* 3.3 -39%-7% 12.5 MEG 4.1 8.1 3.8 -0.7 EMP -3.7 65% RWM 82% Profit Profit Revenue Profit Re
Slide 3: AGI 1H2020 financial performance
AGI 1H2020 financial performance in Pbn Q220 Q219 % chg 1H20 1H19 % chg Comments Group revenues 23.3 41.8 -44% 61.4 82.8 -26% Megaworld 8.6 16.8 -49% 23.6 31.6 -25% Growth in office cushioned weakness in resi + malls + hotels Emperador 10.8 10.4 4% 21.4 21.4 0% Strong whisky sales offset drop in bra
Slide 4: Group borrowings
Group borrowings Gross debts, by key subsidiary AGI gearing 0.48x 0.49x 0.48x 209 198 202 0.42x 181 36 37 35 0 2 0.35x 144 35 1 1 60 45 57 118 30 31 20 2 2 22 38 39 37 33 0.17x 14 29 29 75 76 76 75 53 61 38.9 87.1 113.9 138.9 145.3 141.8 2015 2016 2017 2018 2019 1H20 2015 2016 2017 2018 2019 1H20 ME
Slide 5: Group gearing
Group gearing MEG EMP RWM GADC PARENT 0.36x 0.54x 1.24x 1.31x (0.2) 0.07x 0.48x 0.07x 0.31x 0.46x (1.2) (3.8) (4.9) (5.2) (2.8) 0.31x 0.41x -0.03x 0.06x 0.37x 0.26x 0.24x 0.77x 0.05x 0.22x -0.19x 0.54x 0.03x 0.26x -0.39x 0.03x 0.00x 0.05x -0.52x -0.57x 29.8 44.8 58.5 58.2 52.8 50.5 0.0 19.2 28.0 33.
Slide 6: Megaworld Corporation 1H2020 performance highlights
26 Townships & ILCs 4,300 Landbank (has) 3,637 Hotel room keys 1,312 Offices GLA (‘000) 721 MEGAWORLD CORPORATION Lifestyle malls GFA (‘000) 1H2020 PERFORMANCE HIGHLIGHTS 6
Slide 7: MEG: 1H2020 financial performance
MEG: 1H2020 financial performance P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments Revenue 8.7 16.8 -48% 23.8 31.7 -25% Residential 4.7 10.7 -56% 14.3 20.2 -29% Lower project completion due to limited construction activities Office 2.8 2.6 6% 5.6 5.1 10% Steady office occupancy rates d
Slide 8: MEG: Quarterly operational performance
MEG: Quarterly operational performance REVENUE EBITDA EBIT 17.0 8.3 15.6 15.4 0.7 7.6 14.0 14.4 7.3 7.5 0.2 0.7 0.6 7.0 6.8 6.7 6.9 0.2 0.6 4.4 0.6 0.2 0.1 6.4 4.2 4.3 0.1 0.1 0.1 0.1 6.1 0.1 3.9 4.2 4.3 0.1 3.6 4.0 4.0 3.7 3.5 3.5 8.1 3.9 3.9 3.2 3.3 0.4 3.2 11.9 3.0 10.7 10.6 2.8 9.5 9.6 2.2 3.9 3
Slide 9: MEG: Quarterly operational performance
MEG: Quarterly operational performance RES vs GROSS PROFIT RENTAL vs EBITDA HOTEL vs EBITDA 94% 46% 45% 45% 30% 45% 45% 88% 87% 88% 87% 44% 86% 25% 25% 12 21% 21% 4.4 11 11 4.2 4.3 4.2 10 3.9 9 710 672 3.0 574 587 551 4.3 5.4 4.0 4.0 3.9 3.7 4.7 4.8 5 367 4.4 4.3 2.8 202 -13% 2.1 142 150 149 116 (47
Slide 10: Travellers International Hotel Group 1H2020 performance highlights
2,527 Hotel room keys 6 International Hotel Brands 50% Hotel occupancy 367 VIP and mass gaming tables TRAVELLERS INTERNATIONAL 100 HOTEL GROUP, INC. 1H2020 PERFORMANCE HIGHLIGHTS Electronic Machines 10
Slide 11: RWM: 1H2020 financial performance
RWM: 1H2020 financial performance P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments Net Revenue 0.7 6.7 -90% 6.1 13.6 -55% Gross gaming revenue 0.6 6.6 -91% 6.1 13.5 -55% Mass 0.1 3.8 -97% 3.3 7.4 -55% Significantly affected by the temporary halt in casino gaming operations since mid-Ma
Slide 12: RWM: Quarterly operational performance
RWM: Quarterly operational performance GROSS REVENUES GGR: MASS vs VIP AVERAGE DAILY VISITORS 8.5 8.8 8.9 7.3 8.2 6.9 6.8 41.2 1.5 6.6 38.0 1.6 2.1 35.1 36.1 1.5 6.9 5.6 2.9 2.6 1.3 3.3 2.9 28.1 2.4 6.9 7.3 6.6 6.8 5.6 4.4 4.2 3.6 3.8 3.2 1.0 0.6 0.4 0.4 0.9 0.6 0.1 Q119 Q219 Q319 Q419 Q120 Q220 Q11
Slide 13: Hotel segment 1H2020 performance highlights
HOTEL SEGMENT 1H2020 PERFORMANCE HIGHLIGHTS 13
Slide 14: AGI: combined hospitality business
AGI: combined hospitality business Hotel Revenues 7.5 +23% CAGR 5.0 4.2 3.3 3.8 3.6 2.2 1.8 - 66% - 40% 0.6 2015 2016 2017 2018 2019 2Q19 2Q20 1H19 1H20 14
Slide 15: Emperador Inc. 1H2020 performance highlights
6 Vineyard estates in Spain 5 Distilleries in Scotland 105 Countries under global distribution system 55 countries where EDI brands are exported 25 EMPERADOR INC. domestic sales 1H2020 PERFORMANCE HIGHLIGHTS offices 15
Slide 16: EMP: 1H2020 financial performance
EMP: 1H2020 financial performance P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments Revenue 10.9 10.4 4% 21.5 21.5 0% Brandy 7.3 7.7 -4% 14.9 15.3 -3% Sales affected by dry law during lockdown in key Philippine cities Whisky 3.6 2.8 29% 6.6 6.1 9% Robust whisky sales except for travel r
Slide 17: EMP: Quarterly operational performance
EMP: Quarterly operational performance REVENUE ATTRIBUTABLE PROFIT 17.7 2.0 1.9 4.2 1.7 1.7 1.5 0.6 12.4 1.4 11.0 10.7 10.9 0.4 0.7 10.4 0.7 0.3 3.6 0.3 3.3 2.8 3.1 3.6 13.5 1.4 1.3 8.7 1.1 1.2 1.1 1.2 7.7 7.7 7.6 7.3 Q119 Q219 Q319 Q419 Q120 Q220 Q119 Q219 Q319 Q419 Q120 Q220 Brandy Whisky Brandy W
Slide 18: EMP: Quarterly operational performance
EMP: Quarterly operational performance WHISKY REVENUE, BRANDY REVENUE, GROSS PROFIT, MARGIN GROSS PROFIT, MARGIN 45% 42% 35% 40% 33% 32% 33% 30% 34% 34% 34% 26% 4.2 13.5 3.6 3.6 3.3 3.1 2.8 8.7 7.7 7.7 7.6 7.3 1.6 1.4 1.4 1.1 1.0 1.2 3.4 3.2 2.3 2.5 2.4 2.4 Q119 Q219 Q319 Q419 Q120 Q220 Q119 Q219 Q3
Slide 19: Golden Arches Development Corporation 1H2020 performance highlights
668 Store count 400 McDelivery hubs 326 Stores with Drive-thru 142 NXTGEN stores GOLDEN ARCHES DEVELOPMENT CORPORATION 1H2020 PERFORMANCE HIGHLIGHTS 19
Slide 20: GADC: 1H2020 financial performance
GADC: 1H2020 financial performance P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments Sales Revenues 2.94 7.98 -63% 9.70 15.43 -37% Limited store operations due to the quarantine Sales done mostly through take-outs, drive-thru and Sales by co. restos 2.65 7.17 -63% 8.74 13.89 -37% delive
Slide 21: GADC: Quarterly operational performance
GADC: Quarterly operational performance SALES, SYSTEMWIDE SAME- STORE GEOGRAPHIC GROSS PROFIT, MARGIN STORE SALES GROWTH DISTRIBUTION 34% 4.8% 6.2% 7.0% 5.1% 669 668 620 4.8% 5.5% 6.0% 5.8% 566 55 53 22% 520 51 21% 21% 70 70 20% 45 64 8.9 -14.4% 40 56 8.0 -14.4% 7.7 48 7.5 6.8 284 284 249 221 1% -40
Slide 22: Infracorp
INFRACORP AN ALLIANCE GLOBAL COMPANY 22
Slide 23: Foray into infrastructure
Foray into infrastructure Oct 2017 Submission of unsolicited proposal May 2018 DOTr grant of Original Proponent Status On-going NEDA evaluation 4Q 2020 *subject to change Estimated project award
Slide 24: Group investment commitment
Group investment commitment AGI’s capex by major subsidiary Capex spent in1H20: P15.9bn (38% of FY2020 budget) 71 70 2 2 63 11 15 2 2020 target capex of P42bn 11 9 2 2 42 assumes only the completion 1 14 30 of ongoing projects, particularly 1 4 those slated for completion 49 51 48 1 16 36 1 during t
Slide 25: Planned projects under the new normal
Planned projects under the new normal Much-reduced capex that focuses only on ongoing, near-completion projects 253.8k 106.5k 2,268 15 Office GLA Lifestyle Mall GLA Hotels room keys new stores 2020-2022 2020-2021 2020-2022 in 2020 25
Slide 26: 5-point recovery strategy
26 CONSTANTLY 5-point recovery strategy 26
Slide 27: 5-point recovery strategy
5-POINT RECOVERY STRATEGY To cushion the impact of the pandemic on Group performance Sustainability and Well-Being We anchor our recovery thrust on a sustainability strategy Earnings Diversity Diversifying and expanding our revenue mix to provide for future growth Digitalization Utilizing our digita
Slide 28: Adapting to change is not new to AGI
29 “Adapting to change is not new to AGI, as we have always been constantly transforming the way we do business through the years as we keep pace with advances in technology while innovating our operations and making them future ready.” Dr. Andrew L. Tan Chairman 29
Slide 29: End of presentation
30 CONSTANTLY End of presentation 30
Alliance Global Group — H1 2020 Earnings Presentation on 6ix