2019 Annual Stockholders’ Meeting
2019 ANNUAL STOCKHOLDERS’ MEETING 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
OUR FINANCIALS 2018 Financial Highlights Php47.1b Php6.7b 1.6b 28% REVENUES NET INCOME* WHISKY BRANDY CONSOLIDATED REVENUES 72% 11% 14.2% 5.3% REVENUE NET INCOME NET INCOME BREAKDOWN MARGIN GROWTH *Attributable to parent
OUR FINANCIALS Financial History 15% Revenues (PHPm) CAGR 47,050 43,645 42,656 41,018 32,009 29,865 23,594 17,355 2011 2012 2013 2014 2015 2016 2017 2018
OUR FINANCIALS Financial History 19% Gross profit (PHPm) & Margin CAGR 38% 34% 35% 35% 35% 31% 31% 26% 16,041 15,306 14,942 13,679 10,903 9,225 8,210 4,445 2011 2012 2013 2014 2015 2016 2017 2018
OUR FINANCIALS Financial History 17% EBITDA (PHPm) & Margin CAGR 30% 28% 27% 27% 23% 22% 22% 19% 11,023 10,332 9,641 9,609 8,738 8,323 7,145 3,377 2011 2012 2013 2014 2015 2016 2017 2018
OUR FINANCIALS Financial History Net income* (PHPm) & Margin 16% 21% CAGR 20% 19% 19% 16% 15% 14% 13% 7,693 6,960 6,204 6,322 6,658 5,831 5,000 2,305 2011 2012 2013 2014 2015 2016 2017 2018 7 * Attributable to parent
OUR FINANCIALS Segment Breakdown Revenues Gross Profit EBITDA Net Income FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 (PHPm) 31,174 34,447 10,852 10,730 8,024 7,870 5,012 5,017 Brandy 12,571 13,527 4,090 5,311 1,617 2,462 1,320 1,812 Whisky 42,656 47,050 14,942 16,041 9,641 10,332 6,332 6,829 EMP Inc. • Revenues, net of intersegment • Net income is before deducting non-controlling interest.
OUR FINANCIALS 1Q19 Performance Update 1Q18 1Q19 YoY Commentary Overall business driven by whisky and brandy with premium and REVENUES (PHPm) 9,744 11,025 13.2% luxury brands leading growth 10.3% Overall gross profit margin 3,345 3,688 GROSS PROFIT (PHPm) remains in mid 30s: whisky, 42% GROSS PROFIT MARGIN and brandy, 30% 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 FINANCIALS SEGMENT BREAKDOWN Revenues Gross Profit EBITDA Net Income (PHPm) 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 7,012 7,766 2,290 2,284 1,908 1,750 1,208 1,086 Brandy 2,847 3,372 1,055 1,404 507 788 454 656 Whisky 9,744 11,025 3,345 3,688 2,414 2,538 1,661 1,743 EMP Inc. • Revenues, net of intersegment • Net income is before deducting non-controlling interest.
OUR FINANCIALS Latest Financial Performance Revenues (PHPm) Gross Profit (PHPm) & Margin 34.6% 35.9% 34.2% 47,050 16,041 11,025 9,744 3,688 3,345 FY18 1Q18 1Q19 FY18 1Q18 1Q19 EBITDA (PHPm) & Margin Net Income (PHPm) & Margin* 24.8% 23.0% 22.0% 16.3% 15.8% 14.2% 10,332 6,658 2,538 2,414 1,585 1,738 FY18 1Q18 1Q19 FY18 1Q18 1Q19 • Net income is before deducting non-controlling interest.
OUR FINANCIALS Solid Capital Position Cash Debt Net Debt Net Debt to Equity Commentary (PHPm) Higher cash due to 8,613 38,838 30,225 47% collections 1Q19 8,613 33,541 24,928 39% Ex Equity-linked security Lower cash due to share 39,274 33,046 54% 6,228 buyback and dividend payout 2018 6,228 34,015 27,787 45% Ex Equity-linked security Additional borrowings to 10,162 38,150 27,988 48% 2017 fund investments CASH POSITION (PHPb) Cash EBITDA Change in CAPEX & Financing Others Cash End 8.6 Beginning Working Acquisition 6.2 Capital 2.4 0.9 0.2 (0.9) (0.2)
2019 Annual Stockholders’ Meeting 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
UPDATES Whyte and Mackay Revenue Mix 10% 8% 11% 14% 30% 13% 12% 22% 18% 17% 77% 77% 70% 67% 53% 2011-2014 2015 2016 2017 2018 Branded Business Private Label Bulk
UPDATES Whyte and Mackay Branded Business Breakdown 11% 12% 18% 20% 21% 9% 9% 2% 4% 14% 11% 16% 7% 12% 23% 78% 76% 61% 53% 45% 2014 2015 2016 2017 2018 EMEA Asia & Pacific Americas Travel Retail
UPDATES Whyte and Mackay Gross Profit Margin 39.7% 32.7% 30.1% 19.7% 18.1% 2014 2015 2016 2017 2018
UPDATES Whyte and Mackay Strategy: Focus on Malts 5 years ago Tod ay V is ion 55% 65-70% 80-85% of branded business 17
UPDATES Malt Hierarchy Php1,250 Php1,700 Php1,900 Php2,500 Php3,580
DISCOVERED UNDER ICE SERVED OVER ICE
SHACKLETON Short History 1907 Legendary polar He left behind 2 explorer Sir Ernest crates of 1907 Shackleton went on Mackinlay’s an expedition to Rare Old Antarctica. Highland Malt in his hut. TODAY 2007 Based on the antique 100 years later, whisky, Shackleton is the crates of a master class in the whisky were art of whisky discovered. blending.
UPDATES Premiumization 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
UPDATES Brandy Hierarchy Php120 Php350 Php260 T
UPDATES Share Buyback As of May 15, 2019 287m shares @ P7.20 2019 30m 2017 45m shares @ P7.09 2018 212m shares @ P7.19 shares @ P7.43 Announcement of Share Buyback 8.74 8.25 7.75 7.50 7.18 7.00 6.92 6.60 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '18 '18 '18 '18 '18 '18 '18 '18 '18 '18 '18 '18 '19 '19 '19 '19 '19
2019 Annual Stockholders’ Meeting 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS
KEY TAKEAWAYS Future-proofing, Premiumization and Profitability Future-proofing Premiumization Profitability dominance We want to secure our We are best positioned We want margin dominance in to do premiumization sustainability and Philippine liquor while in the Philippines. stability. making a dent on global liquor.
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