ALLIANCE GLOBAL GROUP INC. UBS Conference August 2017

Transcription

1 ALLIANCE GLOBAL GROUP INC UBS Conference 1618 August

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3 Alliance Global Group Inc. Macro Drivers 3

4 % 6.0% 4.0% 2.0% 0.0% 2.0% In (US$bn) GDP growth PCE growth OFW remittances BPO revenues Affordability ratio (X) Mortgage rates 36% 32% 28% 24% 20% 16% 12% 8% 4% 0% Income/Amortisation (x) Mortgage rates Tourist Arrivals Visitor Receipts 4

5 Alliance Global Group Inc. 1H 2017 performance highlights 5

6 P492bn in total resources (2016) P140bn in total revenues (2016) 2% Parent net debt/equity (endjun17) 3,643 Hotel room keys (2016)

7 P&L highlights (Pbn) 2Q17 2Q16 % chg Comments Group revenues % Megaworld % Sustained strong growth in rentals; higher completion of residential projects. Emperador % Improvement in whisky sales cushions impact of softer brandy sales; lower interest & other income Travellers % Closure of casino operations for 27 days. GADC % 5.2% systemwide SSSG; store expansion. Others % Group costs/expenses (26.67) (26.30) 1% Megaworld (7.25) (7.21) 1% Overall costs steady Emperador (7.56) (7.05) 7% Increased COGS and marketing/promo spend related to aggressive push for new products. Travellers (5.08) (6.12) 17% Decline in casinorelated expenses due to closure. GADC (5.83) (5.23) 12% Higher raw material costs but slower growth in G&A. Others (0.95) (0.69) 38% Net income to owners % Megaworld % Emperador % Travellers (0.12) % GADC % Others (0.28) (0.32) 12% Net profit margin 9.5% 11.6% 210bps 7

8 P&L highlights (Pbn) 1H2017 1H2016 % chg Comments Group revenues % Megaworld % Robust performance of rental segment; higher completion of residential projects Emperador % Stronger whisky sales capped impact of softer brandy sales; lower interest & other income. Travellers % Closure of casino operations for 27 days mitigated by improving hotel operations GADC % 5.2% systemwide SSSG; opening of new stores Others % Group costs/expenses (53.63) (52.88) 1% Megaworld (15.22) (15.18) 0% Cost of sales steady; modest growth in opex. Emperador (14.75) (14.32) 3% Higher COGS & marketing spend for new products; increases in salaries and depreciation expenses. Travellers (10.64) (11.81) 10% Drop in casinorelated expenses; higher interest. GADC (11.39) (10.19) 12% Higher raw material costs but slower growth in G&A Others (1.63) (1.38) 18% Net income to owners % Megaworld % Emperador % Travellers % GADC % Others (0.29) (0.45) 36% Net profit margin 10.1% 10.9% 80bps 8

9 P66.8bn P67.1bn RWM, 11.2bn, 17% GADC, 12.3bn, 18% MEG, 23.9bn, 36% RWM, 13.8bn, 21% GADC, 10.9bn, 16% MEG, 23.0bn, 34% EMP, 18.0bn, 27% EMP, 18.3bn, 27% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 9

10 P6.7bn 8% P7.3bn GADC, RWM, 0.3bn, 0.2 bn, 4% 3% RWM, 0.8bn, 10% GADC, 0.2bn, 3% EMP, 2.2bn, 30% MEG, 4.3bn, 59% EMP, 2.8bn, 34% MEG, 3.9 bn, 48% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 10

11 Q116 Q216 Q316 Q416 Q117 Q217 Others GADC RWM EMP MEG (0.5) Q116 Q216 Q316 Q416 Q117 Q217 Others (0.1) (0.3) (0.2) (0.5) (0.0) (0.3) GADC RWM (0.1) EMP MEG

12 E 1H17 MEG EMP RWM GADC 12

13 Increased borrowings to fund capex. Average cost of debt stable H 1 7 MEG EMP (with ELS) RWM GADC Parent & others 12% 10% 8% 6% 4% 2% 0% H17 MEG EMP RWM GADC Parent Group average 13

14 In endjune 2017, group net debt/equity stood at 0.37x. Parent net debt/equity remained low at 0.02x (20.0) (40.0) (60.0) 0.17x Net debt (cash) (Pbn) 0.11x 0.20x 0.02x Net debt/ equity (X) 0.17x 0.34x 0.37x H17 0.4x 0.3x 0.2x 0.1x 0.0x 0.1x 0.2x 0.3x Net debt (cash) (Pbn) Net debt/equity 14

15 Megaworld More resi projects for launch for the balance of the year. Expanding rental GLA capacity by ~20%; bring contribution of rentals to P12bn this year. Emperador Aggressive push for new products both in the domestic and international markets. Increasing share of millennial drinks in the domestic market. Travellers Phase 3 expansion (Maxims, Hilton, Sheraton) ongoing. GADC Pursuing more aggressive store expansion plans. Alliance Global Expanding presence in the hotel industry. 15

16 Megaworld Corporation 1H2017 performance highlights 16

17 Townships sqm Office GLA hectares landbank BPO Clients sqm Commercial GLA 17

18 Total revenues +5% YoY to P24.3bn. Real estate revenues +2% to P16.8bn; total realized gross profit +12% amid increasing project completion. Real estate sales stood at P13.6bn: 67% MEG+SPI, 16% GERI, 17% ELI. Metro Manila/provincial projects split: 73% / 27% Rentals (office and commercial) +20% to P5.8bn. Increasing share of rentals to 24% of total revenues (from 21% a year before). Hotel income +10% to P648m. Margin direction helped by improving business mix. Residential gross profit margin 46%. Rental EBIT margin 75% from 74.5%. Overall EBIT margin 39% from 37%. Attributable net income +11% to P6.4bn. Net debt/equity at 0.37x (vs 0.31x in end2016). 18

19 % Q Q Q Q Q Q Development Rental Hotels 1 H H H 1 7 Development Rental Hotels 100% 3% 2% 2% 3% 3% 3% 100% 2% 3% 3% 80% 22% 24% 22% 23% 25% 26% 80% 23% 23% 26% 60% 60% 40% 20% 76% 74% 75% 75% 72% 72% 40% 20% 75% 75% 72% 0% Q116 Q216 Q316 Q416 Q117 Q217 Development Rental Hotels 0% 1H16 2H16 1H17 Development Rental Hotels *Covers residential, rental and hotel operations only. Excludes financial and other income. 19

20 % Q Q Q Q Q Q Development Rental Hotels 1 H H H 1 7 Development Rental Hotels 100% 2% 2% 1% 2% 2% 1% 100% 2% 1% 1% 80% 60% 48% 47% 42% 51% 52% 45% 80% 60% 47% 46% 48% 40% 20% 51% 51% 57% 47% 46% 54% 40% 20% 51% 52% 50% 0% Q116 Q216 Q316 Q416 Q117 Q217 Development Rental Hotels 0% 1H16 2H16 1H17 Development Rental Hotels *Covers residential, rental and hotel operations only. Excludes financial and other income. 20

21 RES, GP (Pbn) GP margin Rentals (Pbn) EBIT margin % 45% 47% 46% 46% 46% 50% % 75% 75% 75% 75% 75% 85.0% % 30% 20% % 55.0% 40.0% 25.0% Q116 Q216 Q316 Q416 Q117 Q217 10% Q116 Q216 Q316 Q416 Q117 Q % Real estate sales Gross profit GP margin Total rentals Rental EBIT EBIT margin Hotel income (Pbn) EBIT margin 74% 75% 75% 75% 75% 75% % 21% 22% 21% 17% 18% Q116 Q216 Q316 Q416 Q117 Q217 Hotel revenues Hotel EBIT EBIT margin 25% 20% 15% 10% 5% 0% 46% 45% 47% 46% 46% 46% 40% 43% 37% 34% 36% 30% 22% 21% 17% 22% 21% 18% Q116 Q216 Q316 Q416 Q117 Q217 Devt GP margin Rental EBIT margin Hotel EBIT margin Overall EBIT margin *Rental margins were computed inclusive of intersegment sales. 21

22 Q116 Q216 Q316 Q416 Q117 Q217 Realised GP current year Realised GP prior years Q116 Q216 Q316 Q416 Q117 Q217 Office Commercial Q116 Q216 Q316 Q416 Q117 Q (10) (20) 0.12x Net debt (cash) (Pbn) 0.08x 0.03x 0.07x 0.22x 0.31x 0.37x H17 Net debt (cash) Net debt/ equity Net debt/equity 0.45x 0.30x 0.15x 0.00x 0.15x 22

23 35.6 ha 5 ha 50 ha 34.5 ha 15.4 ha 31 ha W E S T S I D E C I T Y 140 ha 350 ha Megaworld GERI Suntrust Total of 22 Townships *Launched in 2016 Maple * Grove 34 ha 53 ha * 18.5 ha 12.4 ha 25 ha 640 ha 62 ha 561 ha 1,200 ha 150 ha 30 ha 72 ha 173 ha 11 ha 23

24 GLA (million sqm) Office GLA Commercial GLA Rental Rental Income (in Pb) 24

25 Emperador Inc. 1H2017 performance highlights 25

26 Sales offices nationwide 1 st Dalmore flagship store in the Philippines Distribution network Consolidated Revenues(2016) Total resources (endjun2017)

27 Consolidated revenues down slightly to P18.1bn. Brandy revenues stood at P12.9bn (71% of total). Brandy sales 2%, but EMP s aggressive push for its small brandy SKU Bunso and new products Andy Cola, Smirnoff Mule and Raffa Sparkling is gaining market traction. Includes incremental sales contribution from Fundador. Whisky revenues reached P5.2bn (29% of total). Whisky sales +7% driven by increased sales of Dalmore and Jura in UK, Travel Retail, Asia and Greater Europe. Other income (mainly interest) fell 48%. Margin direction amid heavy strategic marketing spend on new products (eg, Hotshots, Shackleton, Terry White). GP margin to 33% from 34% Brandy GP margin to 35% from 37%; Whisky GP margin to 28% from 26%. EBITDA margin to 22% from 26%. Net income 22% to P2.7bn due to higher interest charges. Net debt/equity (with ELS) stood at 0.45x (from 0.37x in end2016). 27

28 % Q Q Q Q Q Q Brandy Whisky 1 H H H 1 7 Brandy Whisky % Q Q Q Q Q Q H H H 1 7 Brandy Whisky Brandy Whisky 28

29 Q Q Q Q Q Q Brandy Whisky 1 H H H 1 7 Brandy Whisky % Q Q Q Q Q Q H H H 1 7 Brandy Whisky Brandy Whisky 29

30 Sales, GP (Pbn) GP margin Sales, GP (Pbn) GP margin % 42% 32% 36% 35% 34% Q116 Q216 Q316 Q416 Q117 Q217 Brandy sales Gross profit GP margin 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% % 31% 25% 27% 29% 27% Q116 Q216 Q316 Q416 Q117 Q217 Whisky sales Gross profit GP margin 35% 30% 25% 20% 15% 10% 5% 0% 31% 22% 16% 37% 30% 22% 34% 25% 16% 43% 29% 21% 32% 24% 17% 30% 21% 13% (10.0) (20.0) 0.60x Net debt (cash) (Pbn) 0.55x 0.78x 0.13x 0.00x Net debt/ equity 0.37x 0.45x 0.70x 0.40x 0.10x 0.20x 0.50x 0.80x Q116 Q216 Q316 Q416 Q117 Q217 GP margin EBITDA margin Net income margin (30.0) H17 Net debt (cash) Net debt/equity 1.10x 30

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34 Travellers International Hotel Group Inc. 1H2017 performance highlights

35 sqm retail space hotel rooms hotel occupancy rate (1H17) gaming tables (endjun17) Slots (endjun17) Capacity MGB retail outlets Gross Revenues (2016) Total Resources (end Jun2017) EBITDA (2016)

36 Net revenues 17% to P10.4bn. GGR 22% to P9.2bn. 27 days of noncasino operations weighed heavily on GGR. Mass GGR (mass tables and slots/etgs) 12% although hold rate was steady at 10%. Blended hold rate improved to 5.4% (from 4.8% a year before). Mass/VIP GGR mix now at 71%/29% (from 61%/39% a year before). Nongaming revenues +4% to P2.0bn, buoyed by hotel contribution. EBITDA stood at P2.2bn. Margin direction due mainly to lost sales resulting from the 2 June incident. GP margins 50% from 53% EBIT margins 11% from 17.5% EBITDA margins 19.5% from 23% Core profit 70% to P533m net of P159m losses from casualty. Net debt/equity at 0.29x (vs 0.19x in end2016). 36

37 % Q Q Q Q Q Q Gross gaming Nongaming 1 H H H 1 7 Gross gaming Nongaming 100% 80% 15% 13% 12% 16% 17% 18% 100% 80% 14% 14% 18% 60% 60% 40% 85% 87% 88% 84% 83% 82% 40% 86% 86% 82% 20% 20% 0% Q116 Q216 Q316 Q416 Q117 Q217 0% 1H16 2H16 1H17 Gross gaming Nongaming Gross gaming Nongaming 37

38 % Q Q Q Q Q Q Mass VIP 1 H H H 1 7 Mass VIP 100% 100% 80% 34% 39% 43% 34% 23% 36% 80% 37% 39% 30% 60% 60% 40% 66% 61% 57% 66% 77% 64% 40% 63% 61% 70% 20% 20% 0% Q116 Q216 Q316 Q416 Q117 Q217 0% 1H16 2H16 1H17 Mass VIP Mass VIP 38

39 % Gross profit (Pbn) 54% 53% 51% 52% GP margin 48% Q116 Q216 Q316 Q416 Q117 Q217 60% 55% 50% 45% 40% 35% EBITDA (Pbn) EBITDA margin 26% 21% 22% 23% 22% 16% Q116 Q216 Q316 Q416 Q117 Q217 30% 25% 20% 15% 10% 5% 0% Gross profit Gross profit margin EBITDA (Pbn) EBITDA margin Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q (5.0) (10.0) Net debt (cash) (Pbn) 0.10x 0.11x 0.24x 0.11x 0.05x Net debt/ equity 0.19x 0.29x H x 0.30x 0.20x 0.10x 0.00x 0.10x 0.20x 0.30x RWM main entrance Marriott, MGB, Remington Net debt (cash) Net debt/equity 39

40 40

41 Sheraton Hotel Manila (391 keys) Hilton Manila Hotel (357 keys) Maxims Hotel (191 keys) 41

42 Golden Arches Development Corporation 1H2017 performance highlights 42

43 In sales revenues (2016) Systemwide samestore sales growth (1H 2017) dessert centers (2016) McDelivery hubs (2016)

44 Sustained +12% growth in sales revenues to P12.2bn. Sales by coowned stores (90% of total): +12% to P11bn Rent, royalty & others (10%): +18% to P1.2bn Systemwide samestore sales growth +5.2% YoY. Number of stores by endjune 2017: 533 vs 494 a year before. Average sales per store +5% YoY. Margin direction helped by economies of scale with ongoing store expansion. GP margin 22% EBITDA margin 13% vs 11% EBIT margin 8% vs 7% Net income +19% to P589m. Higher net cash position. 44

45 % Q116 Q216 Q316 Q416 Q117 Q217 1 H H H 1 7 Sales by cooperated restaurants Rent, royalty & others Sales by cooperated restaurants Rent, royalty & others Revenues (Pbn) 21% 23% 23% 28% 23% Gross profit (Pbn) Q116 Q216 Q316 Q416 Q117 Q217 22% 35% 30% 25% 20% 15% 10% 5% 0% Revenues (Pbn) 22% 26% 1H16 2H16 1H17 Gross profit (Pbn) 22% 27% 26% 25% 24% 23% 22% 21% 20% Sales revenues Gross profit Gross profit margin Sales revenues Gross profit Gross profit margin 45

46 % EBIT, Net income (Pbn) 4% 8% 9% 5% 6% Q116 Q216 Q316 Q416 Q117 Q217 8% 7% 8% 5% Margins 8% 5% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% EBIT, net income (Pbn) 7% 5% 9% 6% Margins 8% Q116 Q216 Q316 5% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% EBIT Net income EBIT margin Net profit margin EBIT Net income EBIT margin Net profit margin 28% 23% 23% 23% 22% 21% 16% 13% 13% 13% 11% 11% 8% 9% 8% 8% 8% 6% 5% 6% 7% 4% 5% 5% 0.5 (0.5) (1.0) (1.5) (2.0) (2.5) 0.17x Net debt (cash) (Pbn) 0.08x 0.04x 0.03x 0.19x Net debt/ equity 0.47x 0.10x 0.00x 0.10x 0.20x 0.30x 0.40x 0.50x Q116 Q216 Q316 Q416 Q117 Q217 (3.0) H x Gross profit EBITDA EBIT Net profit Net debt (cash) Net debt/equity 46

47 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 12.6% 7.2% 9.9% 7.4% 7.7% 5.3% 7.2% 5.2% 6.8% 3.5% 5.3% 5.2% Q116 Q216 Q316 Q416 Q117 Q Systemwide sales Pbn) Q116 Q216 Q316 Q416 Q117 Q Sales per store (Pm) SSSG quarterly SSSG endofperiod Systemwide sales (Pbn) Sales per store (Pm) Q Q Q Q Q Q H17 NCR Luzon Visayas Mindanao 47

48 Lagro, Quezon City Cubao, Quezon City Tagaytay Kawit, Cavite

49 Key strategies: Continue pursuit of ongoing expansion projects across all business segments. Launch more residential projects to take advantage of improving market demand. Push new liquor products in the domestic and international markets. Still on the lookout for opportunities : new products, initiatives, undertakings. Funding capex mainly through debt, raising financial gearing. Balance sheet remains healthy. 49

50 Thank you. 50