Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2024 Earnings Presentation
45 slides from Alliance Global's earnings presentation, Aug 14, 2024
Slide 1: First Half 2024 Analysts' Briefing
First Half 2024 Analysts’ Briefing August 14, 2024
Slide 2: 2Q24/1H24 Performance Highlights - AGI
2Q24/1H24 Performance Highlights - AGI Revenue Pre-minority Income Attributable Income 9.2 107.5 14.2 8.8 13.8 99.1 56.8 7.2 4.6 50.6 6.6 4.2 1Q24 2Q24 1H23 1H24 1Q24 2Q24 1H23 1H24 1Q24 2Q24 1H23 1H24 Note: All items are in billion pesos.
Slide 3: 2Q24/1H24 Performance Highlights - AGI Subsidiaries
2Q24/1H24 Performance Highlights - AGI Subsidiaries MEGAWORLD GOLDEN ARCHES EMPERADOR TRAVELLERS Revenue Net Income Revenue Net Income Revenue Net Income Revenue Net Income 39.1 23.0 8.6 31.1 0.8 20.2 1.1 28.6 4.7 20.9 20.1 32.0 7.9 1.0 3.8 20.2 18.9 11.7 0.4 0.4 4.4 4.1 11.3 0.6 15.5 10.9 0.5 13.1
Slide 4: 1H24 AGI Revenue and Profit Share
1H24 AGI Revenue and Profit Share Revenue Share Profit Share MEG EMI TRAV GADC MEG EMI TRAV GADC 6% 2% 22% 36% 32% 16% 60% 27% 4
Slide 5: AGI 2Q24/1H24 Financial Performance
AGI 2Q24/1H24 Financial Performance In Pbn 2Q2024 1Q2024 QoQ chg 2Q2023 YoY chg 1H2024 1H2023 YoY chg Group Revenues 56.8 50.6 12% 48.8 16% 107.5 99.1 8% Stronger 2Q24 performance vs 1Q24, driven by Megaworld 20.2 18.8 7% 15.7 28% 39.0 31.9 22% the recovery in spirts and gaming/leisure segments, cou
Slide 6: Group Borrowings
Group Borrowings GROSS DEBTS, by key subsidiaries AGI GEARING Net debt (cash) Net debt/equity MEG EMI TRAV GADC Parent & others 0.48x 0.49x 0.47x 0.39x 239 0.36x 0.36x 222 0.32x 218 215 214 209 43 39 40 159 36 42 43 1 2 1 145 142 0 2 1 139 138 59 53 119 119 60 57 54 52 26 31 34 25 24 37 94 95 103 10
Slide 7: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity Net debt (cash) Net debt/equity 0.31x 0.08x 0.30x 0.28x 0.46x 0.07x 0.26x 1.44x 1.39x 0.39x 83.7 1.24x 0.2
Slide 8: Capital Expenditure
Capital Expenditure CAPEX, by key subsidiaries • Capex spent in 1H2024 : P34bn • 45% of the FY2024 budget 75 • FY2024 budget: P75bn 4 63 66 10 2 4 57 4 6 11 3 5 7 2 48 4 1 6 36 2 1 34 7 3 2 1 55 3 GADC 50 48 46 TRAV 38 28 EMI 25 MEG 2019 2020 2021 2022 2023 1H24 2024E Note: All items are in billion
Slide 9: Share Buyback Program
Enhancing Shareholder Value SHARE BUYBACK PROGRAM AGI MEG • Buyback program size: P9.0bn • Buyback program size: P5.0bn • Amount utilized: P8.2bn (91%) • Amount utilized: P2.7bn (55%) 91% • 721m shares bought at an average price 55% • 1.1m shares bought at an average price P11.42 per share. P2.59 pe
Slide 10: Megaworld Corporation
Megaworld Corporation 1H2024 Financial Performance 33 4,436 1,473 Township and Integrated Landbank Office GLA Lifestyle Communities (has) (‘000 sqm) 517 5,013 Lifestyle Malls GLA Hotel (‘000 sqm) Room Keys
Slide 11: MEG 2Q24/1H24 Financial Performance
MEG 2Q24/1H24 Financial Performance In Pbn 2Q2024 1Q2024 QoQ chg 2Q2023 YoY chg 1H2024 1H2023 YoY chg Revenues 20.2 18.9 7% 15.8 28% 39.1 32.0 22% Residential 12.7 12.1 5% 9.7 31% 24.8 19.1 30% Sustained rise in real estate sales amid Office 3.2 3.2 0% 3.1 1% 6.3 6.3 1% higher project completion, in
Slide 12: MEG P&L Performance - Quarterly
MEG P&L Performance - Quarterly REVENUE EBITDA NET INCOME Development Rental Hotels Development Rental Hotels 8.6 36.5 7.9 17.5 2.4 0.3 29.6 14.3 9.3 1.7 0.3 5.3 8.8 8.8 19.4 4.4 4.1 4.1 4.1 1.2 17.9 18.6 9.1 9.0 8.0 3.8 1.2 8.5 14.6 15.0 15.4 1.1 7.7 0.2 0.2 0.2 4.6 7.1 7.3 0.9 0.9 4.6 4.7 0.1 0.8
Slide 13: MEG Key Operating Segments - Quarterly
MEG Key Operating Segments - Quarterly RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real Estate Sales Gross Profit Development GP Margin Rentals Rentals EBITDA EBITDA Margin Rentals Rentals EBITDA EBITDA Margin 50% 50% 50% 50% 49% 49% 49% 49% 21% 88% 88% 88% 89% 88% 88% 88%
Slide 14: Biggest Hotel in the Philippines
Biggest Hotel in the Philippines • Located in Westside City • All-day dine-in with bars • 1,530 Rooms • Sustainable garden and pool area • Function and meeting rooms 14
Slide 15: 32nd Township, 150 hectares, 18-hole golf course by the bay
32nd township 150 hectares 18 holes golf course by the bay P5bn development capex for 10 yrs 15
Slide 16: 33rd Township, Lipa, Batangas
Lipa, Batangas 33rd township 25 hectares 32 Township nd P12bn 150 Hectares development capex for 5-7 years 18 Hole golf course by the bay 16
Slide 17: YTD vs FY2024 Targets
YTD vs FY2024 Targets RESERVATION SALES PROJECT LAUNCHES CAPITAL SPENDING P68.5bn P22.0bn P25.2bn vs P145bn FY2024 target vs P40bn FY2024 target vs P55bn FY2024 target 17
Slide 18: Premier Offices and Lifestyle Malls Pipeline
PREMIER OFFICES LIFESTYLE MALLS 148k 2024-2026 PIPELINE 151.1k 2024-2026 PIPELINE 18
Slide 19: Travellers International Hotel Group, Inc.
Travellers International Hotel Group, Inc. 1H2024 Financial Performance 2,742 5 84% Hotel International Hotel Occupancy Room Keys Hotel Brands (1H2024) 504 2,355 VIP and Mass Slots Gaming Tables
Slide 20: Travellers 2Q24/1H24 Financial Performance
Travellers 2Q24/1H24 Financial Performance P&L summary (Pbn) 2Q2024 1Q2024 QoQ chg 2Q2023 YoY chg 1H2024 1H2023 YoY chg Total Revenues 10.9 9.3 17% 10.3 6% 20.1 20.9 -4% Gross Gaming Revenue 9.0 7.5 20% 8.8 2% 16.4 17.6 -7% Overall recovery in 2Q24 vs 1Q24 operating Mass 4.5 4.3 5% 3.7 21% 8.8 7.1 2
Slide 21: Travellers P&L Performance - Quarterly
Travellers P&L Performance - Quarterly NET REVENUE EBITDA GROSS REVENUES EBITDA Gross Gaming Non-Gaming 4.3 20.9 20.1 3.5 3.3 3.7 2.2 2.2 2.1 10.7 2.0 10.3 10.0 10.7 10.9 1.7 9.2 1.9 1.8 1.5 2.5 1.4 1.7 17.6 1.8 16.4 8.9 8.7 8.3 8.3 9.0 7.5 Q123 Q223 Q323 Q423 Q124 Q224 1H23 1H24 Q123 Q223 Q323 Q423
Slide 22: Travellers Key Operating Segments - Quarterly
Travellers Key Operating Segments - Quarterly GGR: MASS vs VIP AVERAGE DAILY VISITORS Mass VIP 17.6 16.4 44.1 41.8 41.8 42.9 38.7 37.4 36.5 37.1 10.5 7.6 8.9 8.7 9.0 8.3 8.3 7.5 3.8 4.5 5.5 5.0 3.9 3.2 8.8 7.1 4.4 4.5 4.3 4.5 3.4 3.7 Q123 Q223 Q323 Q423 Q124 Q224 1H23 1H24 Q123 Q223 Q323 Q423 Q124 Q
Slide 23: Upcoming Project: Westside City Commercial Complex
Upcoming Project Westside City Commercial Complex
Slide 24: AGI – Biggest player in the PH leisure and tourism sector
AGI – Biggest player the PH leisure and tourism sector
Slide 25: AGI is targeting 12,000 room keys by 2029
CURRENT PORTFOLIO CURRENT PORTFOLIO 5,013 2,742 Hotel Room Keys Hotel Room Keys AGI is targeting 12,000 room keys by 2029. 25
Slide 26: Hotels Pipeline
HOTELS PIPELINE PROJECT NAME TOWNSHIP ROOMS YEAR Chancellor Hotel Boracay Boracay Newcoast 554 2024 Grand Westside Hotel - Southwing Westside City 385 2024 Grand Westside Hotel - Northwing Westside City 845 2025 Belmont Hotel Iloilo Iloilo Business Park 405 2026 Kingsford Hotel Bacolod The Upper Eas
Slide 27: AGI Pursuing Expansion of MICE Venues
AGI Pursuing Expansion of MICE Venues 4,000 seating capacity 1,200 seating capacity Marriott Grand Ballroom Boracay Newcoast Convention Center 27
Slide 28: Mactan Expo Center
Expanding MICE Portfolio Mactan Expo Center Mactan Expo Center Mactan Newtown, Cebu 2,500 P1.5bn seating capacity development capex 28
Slide 29: Emperador Inc.
Emperador Inc. 1H2024 Financial Performance 6 5 Vineyards Distilleries in Spain in Scotland >100 25 Countries under Domestic Global Distribution System Sales Office
Slide 30: EMI 2Q24/1H24 Financial Performance
EMI 2Q24/1H24 Financial Performance In Pbn 2Q2024 1Q2024 QoQ chg 2Q2023 YoY chg 1H2024 1H2023 YoY chg Revenues 15.5 13.1 18% 15.5 0% 28.6 31.1 -8% Brandy 8.8 7.9 12% 8.9 0% 16.7 18.6 -10% Sharp QoQ recovery in whisky and brandy sales as demand improves despite continued Whisky 6.7 5.2 27% 6.7 0% 11.
Slide 31: EMI P&L Performance - Quarterly
EMI P&L Performance - Quarterly NET REVENUE EBITDA REVENUES Attributable Income Brandy Whisky Brandy Whisky 31.1 28.6 4.7 12.5 3.8 11.9 18.6 2.8 15.6 15.5 16.0 15.5 2.4 2.1 6.4 13.1 2.3 2.1 2.1 5.8 6.7 6.8 6.7 1.9 1.7 5.2 1.4 18.6 1.3 1.2 1.0 1.2 16.7 0.9 12.1 2.0 9.8 9.2 1.7 8.9 7.9 8.8 1.0 1.0 0.8
Slide 32: EMI Key Operating Segments - Quarterly
EMI Key Operating Segments - Quarterly EBITDA WHISKY REVENUE, BRANDY REVENUE, GROSS PROFIT , MARGIN GROSS PROFIT , MARGIN Whisky revenue Gross profit Margin Brandy revenue Gross profit Margin 31% 29% 28% 46% 25% 45% 24% 24% 24% 44% 44% 44% 43% 43% 18.6 42% 18% 12.5 16.7 11.9 12.1 6.8 9.8 6.7 6.4 6.7
Slide 33: 150th anniversary of the Fundador brand
• 150 year-anniversary of the Fundador brand • Numerous activities to celebrate this milestone • Pushing forward the Fundador sherry cask collection – already showing signs of success in markets it entered 33
Slide 34: Fundador New Offerings
Fundador New Offerings Fundador Sherry Cask Fundador Super Special • The first Brandy de Jerez Solera that is known for its rich and smooth flavor profile • A premium spirit that epitomizes the rich heritage and masterful • Aged in Sherry Casks that have previously contained sherry wine craftsmanshi
Slide 35: The Dalmore Luminary Series
The Dalmore Luminary Series The Dalmore Luminary No.1 The Dalmore Luminary No. 2 35
Slide 36: EMI Expansion Projects
EMI Expansion Projects Expansion of Maturation Complex In Invergordon Distillery • Doubling footprint to 92 hectares • Additional warehouses for whisky aging • 120 new warehouses to be built in the coming decades –space for an additional 1.5 million casks Expansion of Dalmore Distillery • Double the
Slide 37: EMI and Fuyu Group Partnership
EMI and Fuyu Group Partnership EMI will partner with Fuyu, a member of the Chinese giant Fosun Group and one of China’s largest beverage companies, which will create more opportunities in China, particularly for its brandy business 37
Slide 38: Golden Arches Development Corporation
Golden Arches Development Corporation 1H2024 Financial Performance 755 554 Store McDelivery Count Hubs 465 627 Stores with NXTGEN Drive-thru Stores
Slide 39: GADC 2Q24/1H24 Financial Performance
GADC 2Q24/1H24 Financial Performance In Pbn 2Q2024 1Q2024 QoQ chg 2Q2023 YoY chg 1H2024 1H2023 YoY chg Systemwide Sales 20.1 19.5 3% 18.0 12% 40.0 35.2 12% Sales Revenues 11.7 11.3 3% 10.2 14% 23.0 20.2 14% Sustained rise in systemwide sales buoyed by ongoing product enhancements, innovations and Sa
Slide 40: GADC P&L Performance - Quarterly
GADC P&L Performance - Quarterly NET SALES REVENUE REVENUE EBITDA INCOME ATTRIBUTABLE SALES REVENUES ATTRIBUTABLE INCOME Rent, Royalty, & Others Sales by co-operated restaurants 1.1 1.1 23.0 2.0 1.0 20.2 1.8 0.6 0.6 12.1 11.7 11.3 10.2 10.6 1.1 0.5 0.5 9.9 1.0 1.1 21.0 0.9 1.0 0.9 18.3 0.4 11.0 10.3
Slide 41: GADC Key Operating Metrics - Quarterly
GADC Key Operating Metrics - Quarterly SALES, GROSS PROFIT, SYSTEMWIDE SAME- NUMBER OF STORES MARGIN STORE SALES GROWTH Sales Revenues Gross Profit GP Margin Quarterly End-of-period NCR Luzon Visayas Mindanao 26% 24% 28% 23% 23% 23% 23% 23% 755 22% 28% 740 704 23.0 669 671 59 62 655 56 22% 78 20.2 5
Slide 42: Going GREEN® GOOD
Going GREEN® GOOD McDonalds: | ECO-PAVERS ROOFTOP
Slide 43: GADC Expansion Plan
GADC Expansion Plan 755 stores 1H2024 60 new stores 2024 Target 43
Slide 44: Key Takeaways
Key Takeaways AGI performed strongly in 2Q24, driven by the sharp recovery in spirits and leisure/tourism, coupled with the sustained growth in property and QSR. AGI continues to improve and innovate its products and services to remain aspirational and maintain strong traction in the market. AGI als
Slide 45: First Half 2024 Analysts' Briefing
First Half 2024 Analysts’ Briefing August 14, 2024
Alliance Global Group — H1 2024 Earnings Presentation on 6ix