Stockholders’ Meeting · OUR FINANCIALS Financial History Revenues (PHPm) 17,355 23,594 29,865...
25
2019 Annual Stockholders’ Meeting
Transcript of Stockholders’ Meeting · OUR FINANCIALS Financial History Revenues (PHPm) 17,355 23,594 29,865...
2019 Annual Stockholders’ Meeting
1. OUR FINANCIALS
2019 ANNUAL STOCKHOLDERS’ MEETING
3. KEY TAKEAWAYS
2. UPDATES
72%
28%
BRANDY
WHISKY
1.6b
11%
CONSOLIDATEDREVENUES
NET INCOMEMARGIN
REVENUEBREAKDOWN
*Attributable to parent
Php47.1b
14.2% 5.3%
Php6.7b
OUR FINANCIALS2018 Financial Highlights
REVENUES NET INCOME*
NET INCOMEGROWTH
OUR FINANCIALSFinancial History
Revenues (PHPm)
17,355 23,594
29,865 32,009
43,645 41,018 42,65647,050
2011 2012 2013 2014 2015 2016 2017 2018
15% CAGR
OUR FINANCIALSFinancial History
Gross profit (PHPm) & Margin
4,445
8,210 9,225
10,903
13,679 15,306 14,942
16,04126%
35%31%
34%31%
38%35% 35%
2011 2012 2013 2014 2015 2016 2017 2018
19% CAGR
OUR FINANCIALSFinancial History
EBITDA (PHPm) & Margin
3,377
7,145 8,323 8,738
9,609 11,023
9,641 10,332
19%
30%28% 27%
22%
27%
23% 22%
2011 2012 2013 2014 2015 2016 2017 2018
17% CAGR
OUR FINANCIALSFinancial History
* Attributable to parent
7
Net income* (PHPm) & Margin
2,305
5,000 5,831 6,204 6,960
7,693
6,322 6,658
13%
21%20% 19%
16%
19%
15% 14%
2011 2012 2013 2014 2015 2016 2017 2018
16% CAGR
OUR FINANCIALSSegment Breakdown
(PHPm)
Revenues Gross Profit EBITDA Net Income
FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18
Brandy 31,174 34,447 10,852 10,730 8,024 7,870 5,012 5,017
Whisky 12,571 13,527 4,090 5,311 1,617 2,462 1,320 1,812
EMP Inc. 42,656 47,050 14,942 16,041 9,641 10,332 6,332 6,829
• Revenues, net of intersegment• Net income is before deducting non-controlling interest.
OUR FINANCIALS1Q19 Performance Update
1Q18 1Q19 YoY Commentary
REVENUES (PHPm) 9,744 11,025 13.2%
Overall business driven by whiskyand brandy with premium andluxury brands leading growth
GROSS PROFIT (PHPm) 3,345 3,688 10.3% Overall gross profit marginremains in mid 30s: whisky, 42%and brandy, 30%GROSS PROFIT MARGIN 35.9% 34.2%
EBITDA (PHPm) 2,414 2,538 5.1% EBITDA margin above 20%: 23%for whisky and 22.5% for brandy
EBITDA MARGIN 24.8% 23.0%
NET INCOME* (PHPm) 1,585 1,738 9.6%Net margin stable at around 16%:19% for whisky, 14% for brandy
NET INCOME MARGIN* 16.3% 15.8%
*Attributable to parent
OUR FINANCIALSSEGMENT BREAKDOWN
(PHPm)
Revenues Gross Profit EBITDA Net Income
1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19
Brandy 7,012 7,766 2,290 2,284 1,908 1,750 1,208 1,086
Whisky 2,847 3,372 1,055 1,404 507 788 454 656
EMP Inc. 9,744 11,025 3,345 3,688 2,414 2,538 1,661 1,743
• Revenues, net of intersegment• Net income is before deducting non-controlling interest.
OUR FINANCIALSLatest Financial Performance
Net Income (PHPm) & Margin*
Gross Profit (PHPm) & Margin
EBITDA (PHPm) & Margin
Revenues (PHPm)
47,050
9,744 11,025
FY18 1Q18 1Q19
16,041
3,345 3,688
34.6% 35.9% 34.2%
FY18 1Q18 1Q19
10,332
2,414 2,538
22.0%24.8% 23.0%
FY18 1Q18 1Q19
6,658
1,585 1,738
14.2% 16.3% 15.8%
FY18 1Q18 1Q19• Net income is before deducting non-controlling interest.
6.2
2.4 0.9
(0.9) (0.2)
0.2
8.6
OUR FINANCIALSSolid Capital Position
(PHPm) Cash Debt Net Debt Net Debt to Equity Commentary
1Q198,613 38,838 30,225 47%
Higher cash due to collections
8,613 33,541 24,928 39% Ex Equity-linked security
2018
6,228 39,274 33,046 54%Lower cash due to share
buyback and dividend payout
6,228 34,015 27,787 45% Ex Equity-linked security
2017 10,162 38,150 27,988 48%Additional borrowings to
fund investments
CASH POSITION (PHPb)Cash
BeginningEBITDA Change in
Working Capital
CAPEX & Acquisition
Financing Others Cash End
2. UPDATES
1. OUR FINANCIALS
3. KEY TAKEAWAYS
2019 Annual Stockholders’ Meeting
UPDATESWhyte and Mackay
53%
77%67%
77% 70%
17%
13%18%
12% 22%30%
10% 14% 11% 8%
2011-2014 2015 2016 2017 2018
Branded Business Private Label Bulk
Revenue Mix
UPDATESWhyte and Mackay
78% 76%61%
53% 45%
2% 4%
7%12% 23%
9% 9%14% 16% 11%
11% 12% 18% 20% 21%
2014 2015 2016 2017 2018
EMEA Asia & Pacific Americas Travel Retail
Branded Business Breakdown
UPDATESWhyte and Mackay
18.1%19.7%
30.1%32.7%
39.7%
2014 2015 2016 2017 2018
Gross Profit Margin
UPDATESWhyte and Mackay
5 y e a r s a g o
55% of branded business
To d a y
65-70%
17
80-85%
V i s i o n
Strategy: Focus on Malts
UPDATESMalt Hierarchy
Php1,250 Php1,700 Php1,900 Php2,500 Php3,580
DISCOVERED UNDER ICESERVED OVER ICE
SHACKLETONShort History
Legendary polar explorer Sir Ernest Shackleton went on an expedition to Antarctica.
1907
He left behind 2 crates of 1907 Mackinlay’sRare Old Highland Malt in his hut.
2007
100 years later, the crates of whisky were discovered.
TODAY
Based on the antique whisky, Shackleton is a master class in the art of whisky blending.
UPDATESPremiumization in Brandy Space
FUNDADOR SUPREMO• A super-premium Brandy• Introduced through the
Travel Retail channel in Europe and Asia, and is now available in the Philippines.
Php12,800
UPDATESBrandy Hierarchy
Php120 Php350Php260 T
UPDATESShare Buyback
2017 45m shares @ P7.09 2018 212m shares @ P7.19
Announcement of Share Buyback
2019 30m shares @ P7.43
As of May 15, 2019 287m shares @ P7.20
6.60
8.25
7.00
8.74
6.92
7.75
7.18
7.50
01'17
02'17
03'17
04'17
05'17
06'17
07'17
08'17
09'17
10'17
11'17
12'17
01'18
02'18
03'18
04'18
05'18
06'18
07'18
08'18
09'18
10'18
11'18
12'18
01'19
02'19
03'19
04'19
05'19
3. KEY TAKEAWAYS
2019 Annual Stockholders’ Meeting
2. UPDATES1. OUR FINANCIALS
KEY TAKEAWAYSFuture-proofing, Premiumization and Profitability
We want to secure our dominance in
Philippine liquor while making a dent on
global liquor.
We are best positioned to do premiumization
in the Philippines.
We want margin sustainability and
stability.
Future-proofingdominance Premiumization Profitability
