Alliance Global Group Inc. · PSE:AGI
Alliance Global — H1 2016 Earnings Presentation
25 slides from Alliance Global's earnings presentation, Aug 15, 2016
Slide 1: 1H2016 Analyst Presentation
1H2016 Analyst Presentation 15 August 2016
Slide 2: AGI Group Structure
AGI Group Structure AGI PM (US$3.5bn) 67% 81% 44% 49% MEG PM EMP PM RWM PM Not listed (US$3.5bn) (US$2.6bn) (US$1.2bn) Tourism- entertainment Quick-service Townships Liquor and gaming restaurants Number 1 Number 1 Number 2 Number 2 Market cap as of 11 August 2016 2
Slide 3: AGI By The Numbers
AGI By The Numbers P65bn In consolidated revenues (1H2016) P460bn In total resources (Jun2016) P55bn In fixed assets (Jun2016) P77bn In group capex (2016) 0.11x Parent net debt/equity
Slide 4: AGI's 1H16 performance at a glance
AGI’s 1H16 performance at a glance • Stronger Q216 performance across all segments. – MEG: sustained rise in rentals; much improved overall margins. – EMP: healthy domestic sales growth; enhanced margins for WMG. – RWM: overall growth in rolling volume/mass drop; favorable win rate – GADC: robust sa
Slide 5: Interim performance highlights
Interim performance highlights P&L highlights (Pbn) 1H16 1H15 % chg Group revenues 67.07 65.42 3% Megaworld 22.97 21.98 5% sustained growth in rentals offset moderating residential sales Emperador 18.34 18.32 0.1% brandy sales boosted by Fundador; lower whisky sales due to RSV exit Travellers 13.84
Slide 6: Revenue mix (in Pbn)
Revenue mix (in Pbn) P67.1bn 3% P65.4bn Others Others 2% 2% GADC GADC P9.6bn P10.9bn 15% 16% MEG MEG P23.0bn P22.0bn 34% 33% RWM RWM P14.2bn P13.8bn 22% 21% EMP EMP P18.3bn P18.3bn 28% 27% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 1H16 1H15 6
Slide 7: Pre-minority net income mix (in Pbn)
Pre-minority net income mix (in Pbn) P11.3bn 1% P11.5bn GADC GADC Others Others P0.50bn P0.32bn -3% 1% 4% 3% RWM RWM P2.36bn P1.80bn 21% MEG 15% MEG P5.42bn P6.0bn 47% 53% EMP EMP P3.42bn P3.26bn 30% 28% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 1H16 1H15 7
Slide 8: Attributable net income mix (in Pbn)
Attributable net income mix (in Pbn) P7.3bn 3% P7.5bn GADC Others GADC Others P0.16bn 2% P0.24bn -6% 2% 3% RWM RWM P1.05bn P0.80bn 14% 11% MEG MEG P3.90bn P3.53bn 54% 47% EMP EMP P2.78bn P2.66bn 38% 35% MEG EMP RWM GADC Others MEG EMP RWM GADC Others 1H16 1H15 8
Slide 9: Financial highlights
Financial highlights Revenues (Pbn) Net profit (Pbn) 80.0 10.0 70.0 8.0 60.0 50.0 6.0 40.0 4.0 30.0 2.0 20.0 10.0 0.0 0.0 -2.0 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 Others 0.6 0.7 0.4 0.6 0.6 0.4 1.2 1.0 Others -0.0 0.2 -0.3 -0.5 -0.1 -0.3 0.1 -0.4 GADC 4.8
Slide 10: Key projects
Key projects • Megaworld – Looking to double office GLA capacity and almost treble commercial/retail GLA capacity by 2020 from 2015 level. – Intensifying township development projects outside of Metro Manila. • Emperador – Acquisition of Fundador expands brandy line, allowing for more premium produc
Slide 11: Megaworld Corporation
1H16 performance highlights MEGAWORLD CORPORATION
Slide 12: MEG's 1H16 performance at a glance
MEG’s 1H16 performance at a glance • Total revenues up 5% YoY to P23.0bn. – Sustained robust 15% growth in rentals (office and commercial) to P4.8bn. • Benefitting from last year’s capacity expansion; high occupancy rate of 98-99%. • Rentals now contribute 21% of total revenues (from 19% a year ago)
Slide 13: Rentals, Real estate sales, Margins
Real estate sales (Pbn) Rentals (Pbn) 16.0 6.0 14.0 5.0 12.0 10.0 4.0 8.0 6.0 3.0 4.0 2.0 2.0 0.0 1.0 -2.0 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 0.0 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 ELI+SPI 1.7 1.6 1.6 -0.9 1.6 2.0 3.3 3.6 Commercial 0.8 0.9 0.9 0.9 0.9 1.0 1.7 2.0 GERI 0.6 1.0 1.5 1.1 1.1
Slide 14: Emperador Inc
1H16 performance highlights EMPERADOR INC
Slide 15: EMP's 1H16 performance at a glance
EMP’s 1H16 performance at a glance • Now has iconic premium brandy product Fundador in its portfolio. • Revenues flat at P18.4bn. – Sales of EMP ex-WMG grew 14% to P13.4bn (73% of total). • Incremental contribution from Fundador (starting in March). • EMP-domestic grew 8% supported by price adjustme
Slide 16: Gross profit margin, Revenues, EBITDA, EBIT & net profit
Revenues (Pbn) Gross profit margin 20.0 46% 44% 18.0 43% 16.0 39% 39% 38% 37% 36% 36% 14.0 34% 35% 31% 32% 31% 12.0 29% 30% 28% 26% 10.0 25% 8.0 21% 20% 20% 20% 6.0 18% 4.0 2.0 - Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 WMG 3.2 3.3 4.2 5.8 2.2 2.7 6.6 5.0 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 EMP e
Slide 17: Travellers International Hotel Group Inc
1H16 performance highlights TRAVELLERS INTERNATIONAL HOTEL GROUP INC
Slide 18: RWM's 1H16 performance at a glance
RWM’s 1H16 performance at a glance • Net revenues stood flat at P12.5bn. – GGR recovered in Q216, capping the decline in 1H16 level to P11.8bn. • Q216 performance traced to overall improvement in volumes, favorable win rate. • Sustained double-digit growth in mass drop and mass revenues. • VIP hold
Slide 19: Net revenues, GGR: Mass vs VIP, EBITDA and margins
Net revenues (Pbn) GGR: Mass vs VIP(Pbn) 16.0 100% 14.0 12.0 80% 10.0 60% 8.0 6.0 40% 4.0 2.0 20% - Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 0% Non-gaming 3.2 0.8 0.9 0.8 1.0 0.9 4.0 1.9 Q115 Q215 Q315 Q415 Q116 Q216 1H15 1H16 Net gaming 6.2 4.6 4.6 5.6 4.9 5.6 10.8 10.6 Mass VIP EBITDA and EBITDA ma
Slide 20: Golden Arches Development Corporation
1H16 performance highlights GOLDEN ARCHES DEVELOPMENT CORPORATION
Slide 21: GADC's 1H16 performance at a glance
GADC’s 1H16 performance at a glance • Sales revenues remained robust, up 12% to P10.8bn. – System-wide same-store sales growth at 10% YoY. – Number of stores now total 494 (from 464 a year ago); seen to hit 500th store soon. – Despite aggressive capacity expansion, revenue per store has been stable,
Slide 22: Revenues, Gross profit vs EBIT, Margins
Revenues (Pbn) Gross profit vs EBIT (Pbn) 12.0 +12% 2.5 10.0 2.0 8.0 +10% 1.5 +15% 6.0 1.0 4.0 2.0 0.5 - - Q115 Q116 Q215 Q216 1H15 1H16 Q115 Q116 Q215 Q216 1H15 1H16 Rent/royalty 0.4 0.5 0.5 0.5 0.9 1.0 Gross profit 1.0 1.1 1.0 1.3 1.9 2.4 Sales 4.3 4.7 4.4 5.1 8.7 9.8 EBIT 0.3 0.3 0.2 0.4 0.5 0.7
Slide 23: Epilogue
EPILOGUE
Slide 24: We are future-proofing the business
We are future-proofing the business • Maintaining market leadership • Product diversification – MEG: rentals to complement residential; horizontal vs vertical projects; target market now broader to include economic housing and ultra luxury condos – EMP: expanded product offerings from brandy to whis
Slide 25: Thank you.
Thank you.
Alliance Global Group — H1 2016 Earnings Presentation on 6ix