1Q2020 financial performance
1
AGI 1Q2020 P&L highlights
AGI P&L highlights In Pbn
P&L highlights of subsidiariesIn Pbn
41.1
6.54.4
38.0
4.0 3.0
Revenues Pre-minorityincome
Attributableprofit
1Q19 1Q20
MEG EMP RWM GADC
15.1
10.6
5.46.8
3.5
1.5
-1.0
0.1
40%
28%
14%
18%
MEG
EMP
RWM
GADC
73%
38%
-14% 2%
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
in Pbn 1Q20 1Q19 % chg CommentsGroup revenues 38.03 41.05 -7%Megaworld 14.98 14.85 1% Growth in rentals mitigated slowdown in resi, mall and hotel activitiesEmperador 10.61 11.03 -4% Higher brandy sales cushioned drop in whisky sales.Travellers 5.40 6.91 -22% Half-month halt in casino business and weaker hotel operationsGADC 6.77 7.52 -10% Temporary store closures due to Taal Volcano eruption and initial ECQ pulled down SSSGOthers 0.27 0.74 -63%Group costs/expenses (32.32) (32.66) -1%Megaworld (9.89) (9.37) 6% Higher construction costs; increases in salaries, commisions and depreciation chargesEmperador (8.86) (9.00) -1% Rise in A&P and depreciation chargesTravellers (6.34) (6.65) -5% Increases in depreciation and interest chargesGADC (6.62) (6.95) -5% Rise in OH costs, depreciation and interest chargesOthers (0.61) (0.69) -12%Net income to owners 2.96 4.35 -32%Megaworld 2.41 2.54 -5% Cushioned by higher share of rentalsEmperador 1.26 1.45 -13% Increased share of brandy vs whiskyTravellers (0.45) 0.12 - Weighed mainly by closure of casino operationsGADC 0.08 0.21 -63% Impact of PFRS-16 accountingOthers (0.04) 0.04 -
Net profit margin 7.8% 10.6% -282bps
AGI 1Q2020 financial performance
3
• Capex spent in 1Q20: 15bn.
• 2020 target capex reduced to P42bn (from original P79bn) as Group shifts to cash preservation mode.
Group investment commitment
2017 2018 2019 2020E 1Q19 1Q20
49 51 48
36
13 11
9 22
0
11 15
11
4
2 2
2 2
2
1
0
MEG EMP RWM GADC INFRACORP
7163
42
70
1517
AGI’s capex by major subsidiary In Pbn
4
53 61 75 76 76 79
2929
38 39 37 3414
22
3145 60 59
22
11
0 1
20
30
3537
36 35
2015 2016 2017 2018 2019 1Q20
MEG EMP RWM GADC Parent & others
144
118
181198
209 208
Group borrowings
AGI GEARINGGROSS DEBTS, by key subsidiary
38.9 87.1 113.9 138.9 145.3 142.3
0.17x
0.35x
0.42x
0.48x 0.49x 0.47x
2015 2016 2017 2018 2019 1Q20
Net debt (cash) Net debt/equity
5
*All items are in billion pesos except net debt/equity(x)
Group gearing
G A D CM E G E M P R W M P A R E N T
29.8 44.8 58.5 58.2 52.8 53.1
0.22x
0.31x
0.36x
0.31x
0.26x 0.26x
2015 2016 2017 2018 2019 1Q20
Net debt (cash)
Net debt/equity
0.0 19.2 28.0 33.0 29.5 26.6
0.00x
0.37x
0.48x
0.54x
0.46x0.41x
2015 2016 2017 2018 2019 1Q20
Net debt (cash)Net debt/equity
11.1 13.4 7.4 18.0 20.2 21.2
0.03x
0.05x
0.03x
0.06x
0.07x 0.07x
2015 2016 2017 2018 2019 1Q20
Net debt(cash)Net debt/equity
1.9 11.6 23.7 35.1 48.2 46.9
0.05x
0.26x
0.54x
0.77x
1.24x 1.24x
2015 2016 2017 2018 2019 1Q20
Net debt (cash)Net debt/equity
(0.2)
(1.2) (3.8) (4.9) (5.2) (3.6)-0.03x
-0.19x
-0.52x
-0.57x
-0.65x
-0.45x
2015 2016 2017 2018 2019 1Q20
Net debt (cash)Net debt/equity
6
MEGAWORLD CORPORATION1Q2020 PERFORMANCE HIGHLIGHTS
26Townships &
ILCs
4,688Landbank
(has)
3,637Hotel
room keys
1,312Offices GLA
(‘000)
721Lifestyle
malls GFA(‘000)
7
MEG: 1Q2020 financial performance
P&L summary (Pbn) 1Q20 1Q19 YoY chg Comments
Revenue 15.08 14.91 1% Improving share of rental income Residential 9.61 9.47 1% Construction delays and Taal Volcano eruption Office 2.80 2.43 15% Steady office occupancy rates despite the pandemic
Malls 1.43 1.50 -4% Limited mall operations due to pandemic
Hotels 0.55 0.57 -4% Booking cancellations weighed on occupancy rates Others 0.69 0.93 -26%
EBITDA 6.35 6.58 -4% Higher construction costs and commission expenses
EBIT 5.59 5.97 -6% Jump in depreciation charges
Pre-minority profit 3.80 4.12 -8% Weighed by faster rise in costs & expenses vs topline growthAttributable profit 3.51 3.84 -9%
MarginsGross profit margin 45.2% 46.1% Down Change in sales mix; higher construction costsEBITDA margin 42.1% 44.1% DownEBIT margin 37.1% 40.0% DownAttributable profit margin 23.3% 25.7% Down
8
All items are in billion pesos.Covers residential, rental and hotel operations only. Excludes financial and other income.
MEG: Quarterly operational performance
EBITDA EBITREVENUE
9.5 10.7 10.6 11.9 9.6
3.9 4.2 4.3
4.4
4.2
0.6 0.7 0.6
0.7
0.6
Q119 Q219 Q319 Q419 Q120
Development Rental Hotels
14.414.0
15.6 15.4
17.0
3.1 3.2 3.3 3.9
2.7
3.2 3.5 3.5 3.6
3.3
0.1 0.1 0.1
0.2
0.1
Q119 Q219 Q319 Q419 Q120
Development Rental Hotels
6.4 6.7 6.97.6
6.1
3.2 3.2 3.4 3.9 2.8
3.7 4.0 4.0 4.3
3.9
0.1 0.2 0.1
0.2
0.1
Q119 Q219 Q319 Q419 Q120
Development Rental Hotels
7.0 7.37.5
8.3
6.8
9
All items are in billion pesos.
MEG: Quarterly operational performance
RENTAL vs EBITDA
HOTEL vs EBITDA
REAL ESTATE SALES vs GROSS PROFIT
9
11 11
12
10
4.4 4.7 4.85.4
4.3
46%44% 45% 45% 45%
Q119 Q219 Q319 Q419 Q120
Real estate sales Gross Profit GP margin
3.9 4.2 4.3 4.4 4.2
3.7 4.0 4.0 4.3 3.9
88% 87% 88%94%
87%
Q119 Q219 Q319 Q419 Q120
Total rentals Rental EBITDA EBITDA margin
574
710
587
672
551
142 150 149202
116
25% 21% 25% 30%21%
Q119 Q219 Q319 Q419 Q120
Hotel revenues Hotel EBITDA EBITDA margin
10
2,527Hotel
room keys
6International Hotel Brands
61%Hotel
occupancy
363VIP and mass
gaming tables
100Electronic Machines
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC.1Q2020 PERFORMANCE HIGHLIGHTS
11
RWM: 1Q2020 financial performanceP&L summary (Pbn) 1Q20 1Q19 YoY chg Comments
Total net revenues 5.38 6.90 -22%Gross gaming revenue 5.55 6.90 -19%
Mass 3.17 3.58 -11% Better hold rate but volume growth lower due to ECQ
VIP 2.38 3.32 -28% Lower hold rate and rolling volume due to ECQ and travel ban
Less: promotional allowance (1.49) (1.59) -6%Net gaming revenue 4.06 5.30 -24%
Non-gaming revenue 1.32 1.60 -17% Booking cancellations and travel ban pulled down hotel occupancy rates
EBITDA 0.41 1.41 -71% Increased salaries and utilities expensesEBIT (0.42) 0.67 - Sharp jump in depreciation expenses
Pre-minority profit (1.01) 0.24 - Weighed down further by higher finance costsAttributable profit (1.00) 0.24 -
MarginsGross profit margin 30.5% 39.1% DownEBITDA margin 5.9% 16.6% DownEBIT margin -6.2% 7.9% DownAttributable profit margin -14.6% 2.9% Down
Margins are based on net revenues12
All items are in billion pesos, except Average Daily Visitors.
RWM: Quarterly operational performance
GGR: MASS vs VIP AVERAGE DAILY VISITORSGROSS REVENUES
6.9 6.6 7.3 6.8 5.6
1.6 1.4 1.6 2.1
1.3
Q119 Q219 Q319 Q419 Q120
Gaming Non-gaming
8.58.1
8.9 8.9
6.9
3.6 3.8 4.4 4.2
3.2
3.3 2.9 2.9
2.6
2.4
Q119 Q219 Q319 Q419 Q120
Mass VIP
6.96.6
7.36.8
5.635 36
3841
28
Q119 Q219 Q319 Q419 Q120
13
HOTEL SEGMENT1Q2020 PERFORMANCE HIGHLIGHTS
14
3.3 3.84.2
5.0
7.5
1.8 1.6
2015 2016 2017 2018 2019 1Q19 1Q20
AGI: combined hospitality business
+23% CAGR
3,637 room keys
Hotel RevenuesPbn
14%
15
1,513Vineyardsin Spain
(has)
105Countries under
global distribution
system
55countries where EDI brands are exported
25domestic
sales offices
EMPERADOR INC.1Q2020 PERFORMANCE HIGHLIGHTS
16
EMP: 1Q2020 financial performanceP&L summary (Pbn) 1Q20 1Q19 YoY chg Comments
Revenue* 10.66 11.03 -3%Brandy 7.58 7.69 -1% Initial strong sales capped by liquor ban during ECQ Whisky 3.08 3.34 -8% High 1Q19 base; weaker 1Q20 sales due to travel ban, FX translation
Gross Profit 3.41 3.69 -8%
Brandy 2.37 2.28 4% Improved product mix in favor of higher-priced brandies Whisky 1.04 1.40 -26% Changes in sales mix in favor of lower-margin products
EBITDA 2.21 2.54 -13%EBIT 1.86 2.22 -16% Higher selling and depreciation charges
Pre-minority profit 1.42 1.74 -18%Attributable profit 1.46 1.74 -16%
MarginsGross profit margin 32.9% 34.2% Down
Brandy 32.0% 30.3% UpWhisky 34.5% 42.1% Down
EBITDA margin 20.8% 23.0% DownEBIT margin 17.5% 20.1% DownAttributable profit margin 13.7% 15.8% Down*net of intersegment
17
EMP: Quarterly operational performance
ATTRIBUTABLE PROFITREVENUE
*Excludes non-recurring expensesAll items are in billion pesos
7.7 7.7 8.7
13.5
7.6
3.3 2.83.6
4.2
3.1
Q119 Q219 Q319 Q419 Q120
Brandy Whisky
12.4
10.411.0
17.7
10.7
1.1 1.2 1.4 1.3
1.1
0.7 0.3
0.6 0.4
0.3
Q119 Q219 Q319 Q419 Q120
Brandy Whisky
2.0
1.51.7 1.7
1.4
*
18
EMP: Quarterly operational performance
BRANDY REVENUE, GROSS PROFIT, MARGIN
WHISKY REVENUE,GROSS PROFIT, MARGIN
All items are in billion pesos except margin(%)
3.3
2.8
3.6
4.2
3.1
1.4 1.1
1.6 1.4 1.0
42% 40%45%
34% 34%
Q119 Q219 Q319 Q419 Q120
Whisky revenues Gross profit GP margin
7.7 7.7 8.7
13.5
7.6
2.3 2.5 3.2 3.4
2.4
30%33% 35%
26%
32%
Q119 Q219 Q319 Q419 Q120
Brandy revenues Gross profit GP margin
19
669Store count
395McDelivery
hubs
326Stores
with Drive-thru
-14.4%Same store
sales growth
GOLDEN ARCHES DEVELOPMENT CORPORATION1Q2020 PERFORMANCE HIGHLIGHTS
GOLDEN ARCHES
DEVELOPMENT CORPORATION
20
GADC: 1Q2020 financial performanceP&L summary (Pm) 1Q20 1Q19 YoY chg Comments
Sales Revenues 6,753 7,457 -9% -8% systemwide sales amid temporary store closures due to Taal volcano eruption and ECQ
Sales by co. restos 6,093 6,724 -9% Sharp drop in SSSG: -14.4% (vs 4.8% in 1Q19)Rent, royalty & others 660 733 -10% Lower sales, relief in royalty payments since ECQ
Gross Profit 1,331 1,583 -16% Higher direct overhead costsEBITDA 973 894 9% Due to PFRS-16 adjustments
EBIT 338 585 -42% Increases in depreciation charges due to PFRS-16 adjustments
Pre-minority profit 105 382 -73% Jump in interest chargesAttributable profit 108 383 -72% Due to PFRS-16 adjustmentsAttributable profit before PFRS 16 130 383 -66%
MarginsGross profit margin 19.7% 21.2% DownEBITDA margin 14.4% 12.0% UpEBIT margin 5.0% 7.8% DownAttributable profit margin 1.6% 5.1% DownAttributable profit margin before PFRS 16 1.9% 5.1% Down*Excludes non-recurring expenses 21
GADC: Quarterly operational performance
SALES, GROSS PROFIT, MARGIN
SYSTEMWIDE SAME-STORE SALES GROWTH
STORE GEOGRAPHIC DISTRIBUTION
All items are in billion pesos except margin(%) and store geographic distribution
7.5 8.0 7.7
8.9
6.8
1.6 1.7 1.7
3.0
1.3
21% 21% 22%
34%
20%
Q119 Q219 Q319 Q419 Q120
Sales revenues Gross profit GP margin
4.8%6.2% 7.0%
5.1%
-14.4%
4.8% 5.5% 6.0% 5.8%
-14.4%
Q119 Q219 Q319 Q419 Q120
Quarterly Average YTD
230 244 256 260 261
202 221 249 284 28548
5664
70 70
4045
5155 53
2016 2017 2018 2019 1Q20
NCR Luzon Visayas Mindanao
566520
669
620
669
22
23
Oct 2017Submission of unsolicited proposal
May 2018DOTr grant of Original Proponent Status
On-goingNEDA evaluation
4Q 2020*subject to changeEstimated project award
Fort Bonifacio-Makati Skytrain
Foray into infrastructure
Feb 2018Submission of
unsolicited proposal
May 2018DOTr grant of Original
Proponent Status
Sep 2019NEDA ICC approval
4Q 2020NEDA board approval
NAIA upgrade
Discussions ongoing
24
Initiatives
25
MEG: Initiatives amid the pandemic
Payment channels available
Payment methods available for the unit owners of MEG’s residential projects:
• Online Payment• Over the Counter
Through MEG partner banks
Faves on the Go allows shoppers or diners to choose necessities or restaurant favorites through the malls’ Viber.
Ordering will be done directly with the restaurant, and you can set your own pick-up time.
Faves on the Go
Safety Protocols
• Additional state-of-the-art sanitation and disinfection technologies are installed
• Cashless transaction with designated pick-up counters and drive-thru stations
Company efforts
• Rapid Antibody Testing on-site available for employees
• Employees were distributed to different sites to observe physical distancing in the headquarters.
26
RWM: Initiatives amid the pandemic
Resort World Manila’s signature restaurants are accepting orders for delivery.
The Grand Wing and the Garden Wing will ensure safety and physical distancing protocols for its gaming customers.
Spacious gaming facilities
Safety Protocols
• Additional state-of-the-art sanitation and disinfection technologies are installed in different areas.
• To ensure compliance, “Anti-Virus Patrol” will issue tickets for violations of rules.
Company efforts
• Ride With Me carpooling program for employees
• Rapid Antibody Testing on-site
• On-site accommodations for employees and also for outsourced labor
27
GADC: Initiatives amid the pandemic
Take-out and Drive-
thru services.
Available in select
stores
McDo favorites can now be cooked at home. This include Chicken cuts and other frozen food packs.
We are making sure that McDeliveryis clean and safe. We are stepping up our procedures to ensure the cleanliness of our riders and crew.
McDeliveryis now No-Touch
for your safety.
28
Key Takeaways
L e a d e r s h i p i n t o w n s h i p d e v e l o p m e n t : t h e w a y o f t h e f u t u r e a s c o n v e n i e n c e b e c o m e s a w a y o f l i f e .
H i g h l y v a l u a b l e i n v e n t o r y o f a g e d w h i s k y s t o c k s : e n s u r e s l o n g - t e r m p r o f i t a b i l i t y f o r t h e w h i s k y s e g m e n t .
S t r o n g b r a n d l e a d e r s h i p a c r o s s a l l b u s i n e s s s e g m e n t s .
W e l l - d i v e r s i f i e d p o r t f o l i o a l l o w s f o r b e t t e r r i s k m a n a g e m e n t : r i s i n g c o n t r i b u t i o n o f r e c u r r i n g i n c o m e , i n c r e a s i n g s h a r e o f h i g h e r - p r i c e d s p i r i t s b r a n d s .
E a r l y i n i t i a t i v e s o n d i g i t a l t r a n s f o r m a t i o n s h o u l d s t r e n g t h e n t h e b u s i n e s s m o v i n g f o r w a r d .
H e a l t h y b a l a n c e s h e e t , c o m f o r t a b l e f i n a n c i a l g e a r i n g : p r o v i d e s m o r e f l e x i b i l i t y d u r i n g c u r r e n t p e r i o d s o f u n c e r t a i n t y .
H u g e a n d v a l u a b l e l a n d b a n k : 4 , 3 0 0 h e c t a r e s o f d e v e l o p a b l e l a n d i n t h e P h i l i p p i n e s ; 1 , 5 0 0 h e c t a r e s o f v i n e y a r d s i n S p a i n ; 1 3 h e c t a r e s ( c a s e d g o o d s w a r e h o u s e ) i n S c o t l a n d .
29
End of presentation
1Q2020 financial performance
30