1h2020 results briefing - allianceglobalinc.com...in pbn q220 q219 % chg 1h20 1h19 % chg comments...
TRANSCRIPT
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1H2020 results briefing
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AGI 1H2020 P&L highlights
82.8
12.58.1
61.4
4.1 3.8
Revenues Pre-minorityincome
Attributableprofit
1H19 1H20
MEG EMP RWM GADC
23.821.4
6.1
9.7
5.43.3
-3.7-0.7
39%
35%
10%
16%
MEG
EMP
RWM
GADC
82%
65%
-39%-7%
MEG
EMP
RWM
GADC
Revenue share*
Attributable profit share*
Reve
nue
Prof
it
Reve
nue
Prof
it
Reve
nue
Prof
it
Reve
nue
Prof
it
*Excludes ‘Others.’ 2
AGI P&L highlights P&L highlights of subsidiaries
in Pbn Q220 Q219 % chg 1H20 1H19 % chg CommentsGroup revenues 23.3 41.8 -44% 61.4 82.8 -26%Megaworld 8.6 16.8 -49% 23.6 31.6 -25% Growth in office cushioned weakness in resi + malls + hotelsEmperador 10.8 10.4 4% 21.4 21.4 0% Strong whisky sales offset drop in brandy sales due to liquor banTravellers 0.7 6.7 -89% 6.1 13.7 -55% Weighed by temporary halt in casino gaming operationsGADC 2.9 8.0 -64% 9.7 15.5 -38% Limited store operations, especially during ECQOthers 0.3 (0.2) -- 0.6 0.6 8%Group costs/expenses (21.9) (33.6) -35% (54.6) (66.3) -18%Megaworld (6.0) (10.4) -43% (15.9) (19.8) -20% Drop in construction and operating costs during ECQEmperador (8.6) (8.7) -1% (17.5) (17.7) -1% Higher RM costs offset by sharper decline in selling and G&A exp.Travellers (3.4) (6.5) -48% (9.7) (13.1) -26% Drop in gaming-related and operating expenses GADC (3.7) (7.4) -50% (10.4) (14.4) -28% Decline in COGS and G&A expensesOthers (0.6) (0.6) 0% (1.2) (1.3) -7%Net income to owners 0.8 3.7 -78% 3.8 8.1 -53%Megaworld 1.2 3.0 -60% 3.6 5.5 -34% Steady contribution from office segment capped the fall in profits Emperador 1.6 1.2 28% 2.9 2.7 6% Doubling of whisky earnings vs flat growth in brandy profitTravellers (1.3) 0.1 - (1.7) 0.3 - Exacerbated by higher depreciation and interest charges GADC (0.4) 0.2 - (0.3) 0.4 - Weighed further by increased interest chargesOthers (0.3) (0.8) -65% (0.6) (0.8) -19%
Net profit margin 3.6% 9.0% -538bps 6.2% 9.8% -359bps
AGI 1H2020 financial performance
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53 61 75 76 76 75
2929
38 39 37 331422
3145 60 57
22
11
0 2
20
30
3537
36 35
2015 2016 2017 2018 2019 1H20
MEG EMP RWM GADC Parent & others
144
118
181198
209202
Group borrowings
38.9 87.1 113.9 138.9 145.3 141.8
0.17x
0.35x
0.42x
0.48x 0.49x 0.48x
2015 2016 2017 2018 2019 1H20
Net debt (cash) Net debt/equity
4*All items are in billion pesos except net debt/equity(x)
Gross debts, by key subsidiary AGI gearing
*All items are in billion pesos except net debt/equity(x)
29.8 44.8 58.5 58.2 52.8 50.5
0.22x
0.31x
0.36x
0.31x
0.26x0.24x
2015 2016 2017 2018 2019 1H20
Net debt (cash)
Net debt/equity
0.0 19.2 28.0 33.0 29.5 26.8
0.00x
0.37x
0.48x
0.54x
0.46x0.41x
2015 2016 2017 2018 2019 1H20
Net debt (cash)Net debt/equity
11.1 13.4 7.4 18.0 20.2 21.6
0.03x
0.05x
0.03x
0.06x
0.07x 0.07x
2015 2016 2017 2018 2019 1H20
Net debt(cash)Net debt/equity
1.9 11.6 23.7 35.1 48.2 46.3
0.05x
0.26x
0.54x
0.77x
1.24x 1.31x
2015 2016 2017 2018 2019 1H20
Net debt (cash)Net debt/equity
(0.2)
(1.2) (3.8) (4.9) (5.2) (2.8)-0.03x
-0.19x
-0.52x
-0.57x
-0.65x
-0.39x
2015 2016 2017 2018 2019 1H20
Net debt (cash)Net debt/equity
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MEG EMP RWM GADC PARENT
Group gearing
MEGAWORLD CORPORATION1H2020 PERFORMANCE HIGHLIGHTS
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26Townships &
ILCs
4,300Landbank
(has)
3,637Hotel
room keys
1,312Offices GLA
(‘000)
721Lifestyle
malls GFA(‘000)
MEG: 1H2020 financial performance
P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments
Revenue 8.7 16.8 -48% 23.8 31.7 -25%
Residential 4.7 10.7 -56% 14.3 20.2 -29% Lower project completion due to limited construction activities
Office 2.8 2.6 6% 5.6 5.1 10% Steady office occupancy rates despite the pandemic Malls 0,2 1.6 -88% 1.6 3.1 -47% Limited mall operations limited; rental holidays to tenantsHotel 0.4 0.7 -48% 0.9 1.3 -29% In-city hotels used by BPOs, repatriated Filipinos
EBITDA 3.8 7.4 -49% 10.1 14.0 -28% Office segment capped impact on financial performance
EBIT 3.0 6.8 -55% 8.6 12.7 -32% Increased depreciation charges
Net profit 2.1 4.8 -56% 5.9 8.9 -34% Reflects full quarter impact of the quarantine
Attributable profit 1.9 4.5 -58% 5.4 8.3 -35%
Margins
Gross profit margin 44.7% 44.1% Up 45.1% 45.0% Up Changes in sales mix in favor of horizontal projects
EBITDA margin 43.4% 44.0% Down 42.6% 44.1% Down
EBIT margin 34.9% 40.2% Down 36.3% 40.1% Down
Attributable profit margin 21.8% 26.6% Down 22.7% 26.2% Down
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All items are in billion pesos.Covers residential, rental and hotel operations only. Excludes financial and other income.
MEG: Quarterly operational performance
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REVENUE EBITDA EBIT
9.5 10.7 10.6
11.9 9.6
4.7
3.9 4.2 4.3
4.4
4.2
3.0
0.6
0.7 0.6
0.7
0.6
0.4
Q119 Q219 Q319 Q419 Q120 Q220
Development Rental Hotels
14.414.015.6 15.4
17.0
8.1
3.2 3.2 3.4 3.92.8
1.2
3.7 4.0 4.0 4.3
3.9
2.8
0.1 0.2 0.1
0.2
0.1
(0.0) Q119 Q219 Q319 Q419 Q120 Q220
Development Rental Hotels
7.0 7.3 7.58.3
6.8
3.9
3.1 3.2 3.3 3.9
2.7 1.1
3.2 3.5 3.5 3.6
3.3
2.2
0.1 0.1 0.1
0.2
0.1
(0.1) Q119 Q219 Q319 Q419 Q120 Q220
Development Rental Hotels
6.4 6.7 6.97.6
6.1
3.2
All items are in billion pesos.
MEG: Quarterly operational performance
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RES vs GROSS PROFIT RENTAL vs EBITDA HOTEL vs EBITDA
9
11 11
12
10
54.4 4.7 4.8 5.4
4.3
2.1
46%44% 45% 45% 45% 45%
Q119 Q219 Q319 Q419 Q120 Q220
Real estate sales Gross Profit GP margin
3.9 4.2 4.3 4.4
4.2
3.0
3.7 4.0 4.0 4.3 3.9
2.8
88% 87% 88%94%
87% 86%
Q119 Q219 Q319 Q419 Q120 Q220
Total rentals Rental EBITDA EBITDA margin
574
710
587
672
551
367
142 150 149 202
116 (47)
25%21%
25%
30%
21%
-13%
Q119 Q219 Q319 Q419 Q120 Q220
Hotel revenues Hotel EBITDA EBITDA margin
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC.
1H2020 PERFORMANCE HIGHLIGHTS
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2,527Hotel
room keys
6International Hotel Brands
50%Hotel
occupancy
367VIP and mass
gaming tables
100Electronic Machines
RWM: 1H2020 financial performance
P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments
Net Revenue 0.7 6.7 -90% 6.1 13.6 -55%Gross gaming revenue 0.6 6.6 -91% 6.1 13.5 -55%
Significantly affected by the temporary halt in casino gaming operations since mid-March
Mass 0.1 3.8 -97% 3.3 7.4 -55%
VIP 0.4 2.9 -84% 2.8 6.2 -54%
Less: promotional allowance (0.3) (1.4) -82% (1.8) (2.9) 41%Net gaming revenue 0.3 5.3 -94% 4.4 10.6 -59%
Non-gaming revenue 0.4 1.4 -73% 1.7 3.0 -44% Limited hotel operations; no MICE activities
EBITDA (1.3) 1.5 - (0.9) 2.9 -EBIT (2.2) 0.7 - (2.6) 1.4 - Weighed by higher depreciation chargesNet profit (2.7) 0.6 - (3.7) 0.8 - Pulled down further by increased interest chargesAttributable profit (2.7) 0.6 - (3.7) 0.8 -
MarginsEBITDA margin -134.4% 18.2% Down -11.2% 17.4% DownEBIT margin -225.3% 8.8% Down -32.9% 8.3% DownAttributable profit margin -284.0% 7.4% Down -47.5% 5.1% Down
Margins are based on gross revenues11
All items are in billion pesos, except Average Daily Visitors(‘000).
RWM: Quarterly operational performance
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GROSS REVENUES GGR: MASS vs VIP AVERAGE DAILY VISITORS
6.9 6.6 7.3 6.8
5.6
0.6
1.6 1.5
1.5 2.1
1.3
0.4
Q119 Q219 Q319 Q419 Q120 Q220
Gaming Non-gaming
8.58.2
8.8 8.9
6.9
1.03.6 3.8
4.4 4.2 3.2
0.1
3.3 2.9
2.9 2.6
2.4
0.4
Q119 Q219 Q319 Q419 Q120 Q220
Mass VIP
6.96.6
7.36.8
5.6
0.6
35.1 36.1 38.0
41.2
28.1
0.9
Q119 Q219 Q319 Q419 Q120 Q220
HOTEL SEGMENT1H2020 PERFORMANCE HIGHLIGHTS
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AGI: combined hospitality business
Hotel Revenues
3.3 3.84.2
5.0
7.5
1.80.6
3.6
2.2
2015 2016 2017 2018 2019 2Q19 2Q20 1H19 1H20
+23% CAGR
- 66% - 40%
EMPERADOR INC.1H2020 PERFORMANCE HIGHLIGHTS
15
5Distilleries in
Scotland
105Countries under
global distribution
system
55countries where EDI brands are exported
25domestic
sales offices
6Vineyard estates in
Spain
EMP: 1H2020 financial performance
P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments
Revenue 10.9 10.4 4% 21.5 21.5 0%
Brandy 7.3 7.7 -4% 14.9 15.3 -3% Sales affected by dry law during lockdown in key Philippine cities
Whisky 3.6 2.8 29% 6.6 6.1 9% Robust whisky sales except for travel retail, on premise
Gross Profit 3.6 3.6 -2% 7.0 7.3 -5%
Brandy 2.4 2.5 -4% 4.8 4.8 -1% Changes in sales mix in favor of domestic Emperador products
Whisky 1.2 1.1 5% 2.2 2.5 -12% Boosted by retail sales of lower-margin whiskiesEBITDA 2.6 2.2 19% 4.8 4.7 2% Effective cost management in placeEBIT 2.3 1.9 19% 4.1 4.1 0%
Lower interest chargesNet profit 1.9 1.5 24% 3.3 3.3 1%Attributable profit 1.9 1.5 24% 3.3 3.3 2%
MarginsGross profit margin 33.4% 35.3% Down 33.2% 34.8% Down
Brandy 32.6% 32.9% Down 32.3% 31.6% UpWhisky 33.9% 40.3% Down 34.1% 41.3% Down
EBITDA margin 24.0% 21.0% Up 22.4% 22.1% UpEBIT margin 21.0% 18.4% Up 19.2% 19.3% DownAttributable profit margin 17.2% 14.5% Up 15.4% 15.1% Up 16
EMP: Quarterly operational performance
*Excludes non-recurring expensesAll items are in billion pesos
*
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REVENUE ATTRIBUTABLE PROFIT
7.7 7.7 8.7
13.5
7.6 7.3
3.3 2.83.6
4.2
3.1 3.6
Q119 Q219 Q319 Q419 Q120 Q220
Brandy Whisky
12.4
10.411.0
17.7
10.7 10.9
1.1 1.2 1.4 1.3
1.1 1.2
0.7 0.3
0.6
0.4
0.3
0.7
Q119 Q219 Q319 Q419 Q120 Q220
Brandy Whisky
2.0
1.51.7 1.7
1.4
1.9
EMP: Quarterly operational performance
*Excludes non-recurring expensesAll items are in billion pesos
*
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WHISKY REVENUE, GROSS PROFIT, MARGIN
BRANDY REVENUE, GROSS PROFIT, MARGIN
3.3
2.8
3.6
4.2
3.1 3.6
1.4 1.1
1.6 1.4 1.0 1.2
42% 40%45%
34% 34% 34%
Q119 Q219 Q319 Q419 Q120 Q220
Whisky revenues Gross profit GP margin
7.7 7.7 8.7
13.5
7.6 7.3
2.3 2.5 3.2 3.4
2.4 2.4
30%33%
35%
26%
32% 33%
Q119 Q219 Q319 Q419 Q120 Q220
Brandy revenues Gross profit GP margin
GOLDEN ARCHES DEVELOPMENT CORPORATION
1H2020 PERFORMANCE HIGHLIGHTS
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668Store count
400McDelivery
hubs
326Stores
with Drive-thru
142NXTGEN
stores
GADC: 1H2020 financial performance
P&L summary (Pbn) 2Q20 2Q19 YoY chg 1H20 1H19 YoY chg Comments
Sales Revenues 2.94 7.98 -63% 9.70 15.43 -37% Limited store operations due to the quarantine
Sales by co. restos 2.65 7.17 -63% 8.74 13.89 -37% Sales done mostly through take-outs, drive-thru and deliveries; no dine-in
Rent, royalty & others 0.30 0.81 -63% 0.96 1.54 -38% Royalty contributions waived during ECQ
Gross Profit 0.02 1.71 -99% 1.35 3.30 -59%EBITDA 0.04 0.96 -96% 1.01 1.85 -45% Included impact of PFRS-16EBIT (0.60) 0.64 - (0.26) 1.22 - Higher depreciation expensesNet profit (0.82) 0.36 - (0.72) 0.75 - Increased interest chargesAttributable profit (0.82) 0.37 - (0.71) 0.75 -Attributable profit before PFRS 16 (0.80) 0.37 - (0.67) 0.75 -
MarginsGross profit margin 0.7% 21.5% Down 13.9% 21.4% DownEBITDA margin 1.3% 12.0% Down 10.4% 12.0% DownEBIT margin -20.4% 8.0% Down -2.7% 7.9% DownAttributable profit margin -27.8% 4.6% Down -7.3% 4.9% DownAttributable profit margin before PFRS 16 -27.0% 4.6% Down -6.9% 4.9% Down
20
GADC: Quarterly operational performance
All items are in billion pesos except margin(%) and store geographic distribution21
SALES, GROSS PROFIT, MARGIN
SYSTEMWIDE SAME-STORE SALES GROWTH
STORE GEOGRAPHIC DISTRIBUTION
7.5 8.0 7.7
8.9
6.8
2.9
1.6 1.7 1.7
3.0
1.3 0.0
21% 21% 22%
34%
20%
1%
Q119 Q219 Q319 Q419 Q120 Q220
Sales revenues Gross profit GP Margin
4.8% 6.2% 7.0% 5.1%
-14.4%
-40.8%
4.8% 5.5% 6.0% 5.8%
-14.4%
-65.1%
Q119 Q219 Q319 Q419 Q120 Q220
Quarterly End-of-period
230 244 256 260 261
202221
249 284 28448
5664
70 70
4045
5155 53
2016 2017 2018 2019 1H20
NCR Luzon Visayas Mindanao
566520
669620
668
22
Foray into infrastructure
Oct 2017Submission of unsolicited proposal
May 2018DOTr grant of Original Proponent Status
On-goingNEDA evaluation
4Q 2020*subject to changeEstimated project award
Capex spent in1H20: P15.9bn (38% of FY2020 budget)
Group investment commitment
2017 2018 2019 2020E 1H19 1H20
49 51 48 36
23 13
9 2 2
1
1
0.5
11 1511
4
4
2
2 22
1
1
1
MEG EMP RWM GADC INFRACORP
7163
42
70
16
30
24
AGI’s capex by major subsidiary
*All items are in billion pesos
2020 target capex of P42bn assumes only the completion of ongoing projects, particularly those slated for completion during the year.
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253.8kOffice GLA
2020-2022
106.5k 2,268Hotels room keys
2020-2022Lifestyle Mall GLA
2020-2021
Much-reduced capex that focuses only on ongoing, near-completion projects
Planned projects under the new normal
15new stores
in 2020
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5-point recovery strategy
C O N S T A N T L Y
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Sustainability and Well-Being
Earnings Diversity
Digitalization
Financial Flexibility
Adaptability
5-POINT RECOVERY STRATEGY
We anchor our recovery thrust on a sustainability strategy
Diversifying and expanding our revenue mix to provide for future growth
Utilizing our digital platforms into the various aspects of our operations
AGI’s financial discipline over the years has enabled it to maintain the strong balance sheet
AGI has remained nimble and ready to take advantage of opportunities
To cushion the impact of the pandemic on Group performance
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“Adapting to change is not new to AGI, as we have always been constantly transforming the way we do business through the years as we keep pace with advances in technology while innovating our operations and making them
future ready.”
Dr. Andrew L. TanChairman
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End of presentation
C O N S T A N T L Y
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