Alliance Global Group Inc. · PSE:AGI
Alliance Global — Q1 2023 Earnings Presentation
33 slides from Alliance Global's earnings presentation, May 16, 2023
Slide 1: A Premium-Lifestyle Conglomerate: First Quarter 2023 Analysts' Briefing
A Premium-Lifestyle Conglomerate First Quarter 2023 Analysts' Briefing May 16, 2023
Slide 2: AGI performance highlights
AGI performance highlights AGI P&L Highlights P&L Highlights, by key subsidiary 1Q22 1Q23 MEG EMI NWR GADC 50.3 16.2 15.6 +34% YoY 37.5 9.9 7.9 4.1 7.1 +20% +33% 2.3 5.4 3.9 4.7 YoY YoY 0.3 0.4 Revenues Pre-minority income Attributable profit Revenue Revenue Profit Revenue Profit Revenue Profit Prof
Slide 3: AGI revenue and profit share
AGI revenue and profit share Revenue Share Profit Share MEG EMI NWR GADC MEG EMI NWR GADC 4% 4% 20% 33% 37% 55% 16% 31% 3
Slide 4: AGI 1Q2023 financial performance
AGI 1Q2023 financial performance in Pbn 1Q2023 1Q2022 YoY chg 4Q2022 QoQ chg Group revenues 50.3 37.5 34% 55.2 -9% Megaworld 16.2 12.9 26% 16.9 4% Emperador 15.6 12.3 27% 19.5 -20% Travellers 7.8 4.9 60% 8.6 -9% GADC 10.0 7.2 40% 11.0 -9% Others 0.6 0.3 153% (0.9) -170% Group costs/expenses (41.3) (
Slide 5: Group Borrowings
Group Borrowings GROSS DEBTS, by key subsidiary AGI GEARING MEG EMI NWR GADC Parent & others Net debt (cash) Net debt/equity 0.48x 0.49x 0.47x 209 218 215 214 215 198 0.36x 39 0.32x 0.33x 36 42 42 42 37 2 0 2 1 1 1 57 54 52 50 60 45 25 24 26 34 39 37 94 95 96 86 76 76 139 145 138 119 119 122 2018 20
Slide 6: Group Gearing
Group Gearing MEGAWORLD EMPERADOR TRAVELLERS GOLDEN ARCHES PARENT 0.54x 1.44x 0.08x 0.31x 1.39x 0.29x 0.46x 1.24x 0.07x 0.28x (4.9) (5.2) (5.3) (6.6) (8.2) (7.8) 0.39x 0.26x 0.99x 0.93x 0.22x 0.22x 0.20x 0.06x 0.77x 0.12x 0.11x 0.04x 0.04x 0.03x -0.57x -0.65x -0.72x -0.76x -0.81x -0.84x 58.2 52.8 45
Slide 7: Capital Expenditure
Capital Expenditure AGI CAPEX, by key subsidiary 70 ▪ Capex spent in 1Q23: P14.4bn 63 4 (21% of P70bn 2023 budget) 2 57 4 11 7 3 48 5 2 1 4 6 36 2 1 7 1 55 48 46 14 GADC 38 NWR 28 1 0 EMI 1 MEG 12 2019 2020 2021 2022 1Q23 2023E 7 All items are in billion pesos.
Slide 8: Share Buyback Program
Enhancing Shareholder Value Share Buyback Program AGI ▪ Buyback program size: P7.0bn 95% ▪ Amount utilized: P6.6bn (95%) ▪ 574.8m shares bought at an average price P11.54 per share. ▪ Implementation period: 30 months from October 2021 to April 2024 MEG ▪ Buyback program size: P5.0bn ▪ Amount utilize
Slide 9: Dividends
Enhancing Shareholder Value Dividends AGI ▪ Dividend per share: P0.12 ▪ Record date: Dec 1, 2022 ▪ Payment Date: Dec 22, 2022 MEG ▪ Dividend per share: P0.0615 ▪ Record date: Oct 31, 2022 ▪ Payment Date: Nov 14, 2022 EMI ▪ Dividend per share: P0.29 ▪ Record date: May 02, 2023 ▪ Payment Date: May 25,
Slide 10: 1Q2023 Financial Performance (Megaworld)
1Q2023 Financial Performance 30 5,000 1,400 484 4,713 Townships & Integrated Landbank Offices GLA Lifestyle Malls GLA Hotel Lifestyle Communities (has) ('000 sqm) ('000 sqm) Room Keys
Slide 11: MEG 1Q2023 financial performance
MEG 1Q2023 financial performance P&L summary (Pbn) 1Q2023 1Q2022 YoY chg 4Q2022 QoQ chg Revenue 16.2 13.1 24% 17.1 -5% Residential 9.4 8.1 17% 10.7 -12% Office 3.1 3.0 5% 3.1 0% Malls 1.2 0.7 73% 1.2 8% Real estate sales buoyed by higher project completion. Hotel 0.8 0.5 62% 0.8 -4% EBITDA 6.5 6.0 8
Slide 12: MEG quarterly performance
MEG quarterly performance REVENUE EBITDA NET INCOME 109% of pre-pandemic levels 98% of pre-pandemic levels 106% of pre-pandemic levels 15.8 7.4 14.6 13.7 0.8 0.3 6.5 5.1 13.3 6.3 0.8 6.1 6.0 12.3 0.7 0.1 0.6 0.1 4.3 0.1 0.1 4.1 0.5 4.4 3.3 3.8 3.9 3.7 3.3 3.3 3.1 3.3 3.3 2.8 2.5 10.7 8.9 9.2 9.4 8.1
Slide 13: MEG quarterly performance
MEG quarterly performance RES VS GROSS PROFIT RENTAL VS EBITDA MARGIN HOTEL REV VS EBITDA MARGIN Real estate sales Gross Profit GP Margin Rentals Rental EBITDA EBITDA margin Hotel revenues Hotel EBITDA EBITDA margin 33% 51% 88% 87% 87% 89% 88% 50% 49% 48% 49% 17% 12% 13% 13% 10.7 846 4.3 4.4 813 9.2
Slide 14: 2023 Target: 3 Townships
30 5,172 TOWNSHIPS HECTARES 2023 TARGET 3 TOWNSHIPS 14
Slide 15: MEG Targets
MEG TARGETS RESERVATION PROJECT CAPEX SALES LAUNCHES P130bn P60bn P55bn 2023E 2023E 2023E P39.6bn P13.9bn P12.2bn (1Q2023) (1Q2023) (1Q2023) 15
Slide 16: MEG Expansion Plans
MEG EXPANSION PLANS PREMIER LIFESTYLE HOTELS OFFICES MALLS Additional Office GLA Additional Mall GLA Additional Hotel Room Keys 209k 160k 3,159 2023-2026 2023-2026 2023-2028 1,400k 484k 4,713 (1Q2023) (1Q2023) (1Q2023) 16 All items are in sqm, except hotel room keys (#)
Slide 17: 1Q2023 Financial Performance (Emperador)
1Q2023 Financial Performance 6 5 >100 25 Vineyards Distilleries Countries under Domestic in Spain in Scotland global distribution system Sales Offices
Slide 18: EMI 1Q2023 financial performance
EMI 1Q2023 financial performance P&L summary (Pbn) 1Q2023 1Q2022 YoY chg 4Q2022 QoQ chg Revenue 15.6 12.3 26% 20.1 -23% Brandy 9.8 7.6 28% 13.8 -29% Whisky 5.8 4.7 24% 6.3 -8% Gross Profit 5.1 3.8 35% 6.0 -15% Brandy 2.4 1.9 25% 3.0 -22% Whisky 2.7 1.9 45% 3.0 -8% Robust brandy and whisky sales supp
Slide 19: EMI quarterly performance
EMI quarterly performance REVENUE ATTRIBUTABLE INCOME 141% of pre-pandemic levels 133% of pre-pandemic levels 20.1 3.1 2.9 15.7 15.6 14.6 6.3 2.3 12.3 2.1 1.4 1.9 1.1 5.5 5.8 5.6 4.7 0.9 1.3 1.1 13.8 10.3 9.8 1.7 1.7 9.0 1.2 7.6 1.0 0.9 Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q422 Q123 Brandy Whisky
Slide 20: EMI quarterly performance
EMI quarterly performance WHISKY REVENUE, GROSS PROFIT, MARGIN BRANDY REVENUE, GROSS PROFIT, MARGIN Whisky revenues Gross profit GP margin Brandy revenues Gross profit GP margin 45.5% 46.3% 25.7% 27.0% 25.4% 24.8% 23.3% 40.8% 41.3% 40.3% 13.8 6.3 5.8 5.5 5.6 10.3 4.7 9.8 9.0 7.6 3.0 2.7 2.3 1.9 2.0
Slide 21: Our Vision for 2025
OUR VISION FOR 2025 37% 1Q23 2025 50% Emperador’s growth aspiration is to generate 50% of the business from international operations by 2025. 21
Slide 22: 2025 Objectives and Achievements 2020-2022
2025 What we achieved What we achieved Objectives from 2020 to 2022 in 2022 2X 18% +18% YoY Double branded single malt sales CAGR in whisky revenue Whisky revenue +18% YoY to from 2020-2025 P22.1bn in 2022 High Single Digit 5% +9% YoY Brandy revenue CAGR from 2020 CAGR in brandy revenue Brandy reven
Slide 23: 1Q2023 Financial Performance (Travellers)
1Q2023 Financial Performance 2,742 6 74% 404 2,081 Hotel room International Hotel Occupancy VIP and mass Slots keys Hotel Brands (1Q2023) gaming tables
Slide 24: NWR 1Q2023 financial performance
NWR 1Q2023 financial performance P&L summary (Pbn) 1Q2023 1Q2022 YoY chg 4Q2022 Q0Q chg Gross gaming revenue 8.9 6.5 36% 9.1 -2% Mass 3.4 1.8 87% 3.3 2% VIP 5.5 4.7 17% 5.8 -5% Sustained GGR expansion driven by the recovery in the mass segment and continued Less: promotional allowance (2.8) (2.6) 7%
Slide 25: NWR quarterly performance
NWR quarterly performance NET REVENUES EBITDA 114% of pre-pandemic levels 153% of pre-pandemic levels 2.4 8.6 2.2 7.9 2.1 7.0 1.8 6.4 1.8 1.4 1.6 1.2 1.4 4.8 0.9 6.8 5.7 6.1 5.2 3.9 Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q422 Q123 Net gaming Non-gaming 25 All items are in billion pesos.
Slide 26: NWR quarterly performance
NWR quarterly performance GGR: Mass vs VIP Average Daily Visitors 129% of pre-pandemic levels 106% of pre-pandemic levels 37.4 9.1 34.4 8.9 8.2 8.0 27.9 6.5 23.8 5.8 5.5 5.0 4.9 4.7 13.7 3.1 3.2 3.3 3.4 1.8 Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q422 Q123 Mass VIP 26 All items are in billion pesos
Slide 27: NWR Expansion Plans
NWR EXPANSION PLANS Expand premium mass Sustain growth in VIP Improve foot traffic at segment to ~50% of GGR business, with increased Newport World Resorts (from 40%). junket operations. Complex. 27
Slide 28: 1Q2023 Financial Performance (GADC)
1Q2023 Financial Performance 703 505 409 444 Store McDelivery Stores with NXTGEN Count hubs Drive-thru stores
Slide 29: GADC 1Q2023 financial performance
GADC 1Q2023 financial performance P&L summary (Pbn) 1Q2023 1Q2022 YoY chg 4Q2022 QoQ chg Systemwide Sales 17.2 12.7 35% 18.5 -7% Sales Revenues 9.9 7.2 38% 10.5 -5% Sales by co. restos 9.0 6.5 39% 9.6 -6% Rent, royalty & others 0.9 0.7 35% 0.9 -4% Gross Profit 2.3 1.7 37% 2.7 -12% EBITDA 1.6 1.3 25%
Slide 30: GADC quarterly performance
GADC quarterly performance SYSTEMWIDE SAME-STORE SALES, GROSS PROFIT, MARGIN NUMBER OF STORES SALES GROWTH Sales Revenues, 133% of pre-pandemic levels Gross Profit, 148% of pre-pandemic levels 25.3% 35.4% 36.0% 703 23.8% 23.9% 23.6% 704 669 671 21.3% 655 56 57 28.5% 55 50 51 10.5 30.9% 28.1% 72 72 2
Slide 31: 703 stores, 50 new stores target
703 stores 1Q2023 50 new stores 2023 Target 31
Slide 32: Key Takeaways
Key Takeaways ▪ AGI is firing on all cylinders: “As a premium lifestyle robust real estate sales; conglomerate, we believe resurgence in lifestyle malls, quick service restaurants, hotel that our strength lies in our and integrated resort operations; brands which we continue to above-industry perfor
Slide 33: A Premium-Lifestyle Conglomerate
A Premium-Lifestyle Conglomerate First Quarter 2023 Analysts' Briefing May 16, 2023
Alliance Global Group — Q1 2023 Earnings Presentation on 6ix