Slide 1: Emperador Inc. FY2019 Analyst Briefing
EMPERADOR INC. FY2019 ANALYST BRIEFING
Slide 2: Agenda
1 OUR FINANCIALS 2 FUNDADOR ACCOLADES 3 EMPERADOR AMID THE PANDEMIC 4 OUR RESPONSE TO THE PANDEMIC 2
Slide 3: 2019 Financial Highlights
OUR FINANCIALS 2019 Financial Highlights P51.6b 27% P7.0b 1.6b REVENUES WHISKY CORE INCOME* BRANDY 73% 11% 10% 14% REVENUE REVENUE CORE INCOME GROWTH BREAKDOWN MARGIN* 3 *Attributable to parent
Slide 4: 2019 performance update
OUR FINANCIALS 2019 performance update 4Q19 YoY 2018 2019 YoY Commentary Both brandy and whisky REVENUES 17,737 7% 47,050 51,565 10% showed top-line growth GROSS PROFIT Consolidated GP margin still 4,802 -7% 16,041 16,926 6% in mid-30s range in 2019 despite some COGS pressure GROSS PROFIT MARGIN 28.
Slide 5: Latest financial performance
OUR FINANCIALS Latest financial performance Revenues Gross Profit & margin 34.6% 33.7% 51,565 47,050 10% 31.1% 7% 28.2% 16,926 16,041 16,503 17,737 5,138 4,802 7% 6% 4Q18 4Q19 FY18 FY19 4Q18 4Q19 FY18 FY19 Core EBITDA & margin Core income* & margin 22.0% 21.5% 14.2% 13.6% 17.5% 18.1% 7% 9.2% 9.7% 6,
Slide 6: Financial History
OUR FINANCIALS Financial History Revenues Gross Profit 51.6 15.3 16.0 16.9 15% 47.1 18% 14.9 43.6 42.7 13.7 CAGR 41.0 CAGR 32.0 10.9 29.9 8.2 9.2 23.6 17.4 4.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 Core EBITDA Core income 16% 11.0 11.1 14% 7.7 9.6
Slide 7: Segment Breakdown
OUR FINANCIALS Segment Breakdown Revenues Gross Profit Core EBITDA Core Income 2018 2019 2018 2019 2018 2019 2018 2019 Brandy 33,681 37,627 10,730 11,339 7,870 8,414 4,846 5,031 Whisky 13,369 13,938 5,311 5,586 2,462 2,666 1,812 1,967 EMP Inc. 47,050 51,565 16,041 16,926 10,332 11,080 6,658 6,998 •
Slide 8: Brandy Segment
OUR FINANCIALS Brandy Segment 4Q19 YoY 2018 2019 YoY Commentary Strong quarter, roughly Php13b REVENUES 13,540 9% 33,681 37,627 12% sales vs Php8b average in the three prior quarters GROSS PROFIT 3,357 -5% 10,730 11,339 6% Pressure on gross profit mostly due to higher promos, and to a GROSS PROFIT M
Slide 9: Whisky Segment
OUR FINANCIALS Whisky Segment 4Q19 YoY 2018 2019 YoY Commentary Strong quarter, roughly Php4.2b REVENUES 4,197 3% 13,369 13,938 4% sales vs Php3.2b average in the three prior quarters GROSS PROFIT 1,444 -10% 5,311 5,586 5% 4Q19 performance impacted by product and geographical sales GROSS PROFIT MARG
Slide 10: WMG Gross Profit Margin
OUR FINANCIALS WMG Gross Profit Margin 39.7% 39.8% 32.7% 30.1% 19.7% 18.1% 2014 2015 2016 2017 2018 2019 10
Slide 11: Whyte and Mackay
OUR FINANCIALS Whyte and Mackay Revenue Mix Branded Business By Region 8% 7% 11% 12% 12% 18% 20% 21% 20% 30% 9% 9% 15% 22% 23% 2% 4% 14% 16% 11% 11% 7% 17% 12% 23% 26% 78% 76% 73% 70% 70% 61% 53% 53% 45% 43% 2011-2014 2015-2017 2018 2019 2014 2015 2016 2017 2018 2019 EMEA Asia & Pacific Americas Tra
Slide 12: Solid Cash Position
OUR FINANCIALS Solid Cash Position Net Debt to (PHPm) Cash Debt Net Debt Commentary Equity Improved net debt to equity due 7,741 37,220 29,479 46% to net repayment of bank loans and translation adjustment. 2019 7,741 31,940 24,199 37% Ex Equity-linked security Lower cash due to share buyback 6,228 3
Slide 13: ELS Evolution
ELS Evolution Dec 2014 Jun 2017 Dec 2019 Jan 2020 Feb 2020 • ELS Php5.3b • Php832m • ELS split into 2 • Removal of • Tranche 1 issuance to worth of tranches: mandatory worth Php1.8b Arran interest ✓ i. Php1.8b conversion converted to Investment converted to convertible rights 253m shares Private Lim
Slide 14: Accolades of Fundador in 2019
27 Accolades of Fundador in 2019
Slide 15: Emperador Amid The Pandemic
Emperador Amid The Pandemic Partially operating, thus generating some revenues ❑ Philippines subject to dry law during quarantine ➢ No operations, no sales, no production ➢ Practically zero on- and off-premise sales ❑ Spain and UK mostly operational ➢ No liquor ban ➢ But on-trade or on-premise busin
Slide 16: Andrew Tan Group: P1.11-Billion Total Donations and Projects
ANDREW TAN GROUP P1.11-BILLION TOTAL DONATIONS AND PROJECTS Sle = PalrF =). ESQ Prorat Hein) i) 1-M liters of disinfectant Me Re el Project Ugnayan alcohol Philippine Red Cross P100M P6OM (es oS = » = Ht Wh q 2 a ae = -- . AGI & subsidiaries’ McDonald’s Kindness Kitchen RWM_& partners’ donations for
Slide 17: End of presentation
EMPERADOR INC. End of presentation