, 1 Our Financials 2 Ke Recent Developments 3 Key Takeaways - - PowerPoint PPT Presentation

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Our Financials Key Takeaways

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Ke Recent Developments

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2,305 5,000 5,831 6,204 6,960 7,693 6,332 13% 21% 20% 19% 16% 19% 15% 2011 2012 2013 2014 2015 2016 2017 3,377 7,145 8,323 8,738 9,609 11,023 9,641 19% 30% 28% 27% 22% 27% 23% 2011 2012 2013 2014 2015 2016 2017 17,355 23,594 29,865 32,009 43,645 41,018 42,656 2011 2012 2013 2014 2015 2016 2017

Revenues

4,445 8,210 9,225 10,903 13,679 15,023 14,621

26% 35% 31% 34% 32% 37% 35%

2011 2012 2013 2014 2015 2016 2017

Revenues* (PHPm)

* Consolidated (sale of goods + other revenues); gross profit on sales

Net income & margin

16% CAGR

Our Financials

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19% CAGR

Financial History

22% CAGR 18% CAGR

EBITDA & margin Gross profit* & margin

Segment Breakdown Our Financials

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In PHP millions Revenues Gross Profit EBITDA Net Income 2016 2017 2016 2017 2016 2017 2016 2017 Brandy 30,025 31,174 11,884 10,852 9,790 8,024 6,646 5,012 Scotch whisky 11,469 12,571 3,138 3,769 1,232 1,617 1,047 1,320 EMP* (consolidated) 41,018 42,656 15,023 14,621 11,023 9,641 7,693 6,332

1Q18 Performance Update Our Financials

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1Q17 1Q18 YoY Commentary Revenues (PHPm) 8,979 9,744 8.5%

Flat brandy offset by Scotch whisky growth

Gross profit (PHPm) 3,047 3,251 6.7%

35% margin for brandy, 35% margin for Scotch whisky

Gross profit margin (%) 34.0% 34.9% EBITDA (PHPm) 2,149 2,414 12.4%

27% margin for brandy, 18% margin for Scotch whisky

EBITDA margin 23.9% 24.8% Net income (PHPm) 1,498 1,661 10.9%

17% margin for brandy, 16% margin for Scotch whisky

Attributable to equity holders of parent 1,498 1,585 5.8% Net income margin 16.7% 17.1%

Latest Financial Performance Our Financials

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Revenues (PHPm) Net income & margin Gross profit & margin EBITDA & margin

42,656 8,979 9,744

FY2017 1Q2017 1Q2018 8.5%

14,621 3,047 3,251 34.6% 34.0% 34.9%

FY2017 1Q2017 1Q2018 6.7%

9,641 2,149 2,414 22.6% 23.9% 24.8%

FY2017 1Q2017 1Q2018 12.4%

6,332 1,498 1,661 14.8% 16.7% 17.1%

FY2017 1Q2017 1Q2018 10.9%

Segment Breakdown Our Financials

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*Net of intersegment

In PHP millions Revenues Gross Profit EBITDA Net Income 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 Brandy 6,626 7,012 2,319 2,290 1,801 1,908 1,196 1,207 Whisky 2,519 2,847 728 961 348 507 302 454 EMP (consolidated) 8,979 9,744 3,047 3,251 2,149 2,414 1,498 1,661

Robust Capital Position

Solid Capital Position Our Financials

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(PHPm)

Cash Debt Net Debt Net Debt to Equity Commentary

1Q18 10,717 39,338 28,621 46%

Slight improvement from end-2017 due to higher cash

2017 10,162 38,150 27,987 48%

Additional borrowings to fund investments

10,162 32,922 22,760 38%

Ex Equity-linked security

2016 10,174 29,363 19,189 37%

Use of cash to fund acquisitions, debt repayment, dividend payment 10 2 2 11 Cash EBITDA CAPEX and Acquisition Change in Working Capital Dividends & Interest Others Cash End

Cash Position (PHPb)

Robust Capital Position

WMG Under EMP Inc.’s Tutelage Our Financials

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53% 77% 67% 77% 17% 13% 18% 12% 30% 10% 14% 11%

2011-2014 2015 2016 2017

Branded Business Private Label Bulk

Revenue Mix

Robust Capital Position

WMG Under EMP Inc.’s Tutelage Our Financials

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Branded Business Breakdown

78% 76% 61% 53% 2% 4% 7% 12% 9% 9% 14% 16% 11% 12% 18% 20%

2014 2015 2016 2017 EMEA Asia & Pacific Americas Travel Retail

Robust Capital Position

WMG Under EMP Inc.’s Tutelage Our Financials

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18.1% 19.7% 27.6% 30.1% 34.5%

2014 2015 2016 2017 1Q18

Gross Profit Margin

Our Financials Recent Developments

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Ke Key Takeaways

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Fundador Cafe

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Recent Developments

Coffee, cocktails and sweets

A 50 sq.m. grab-and-go “booze shop cafe”, that woo millennials with cocktails and spiked coffee and cupcakes.

Dalmore’s Visual Identity

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Recent Developments

Flagship store at Taoyuan International Airport Dubai Duty Free Guangzhou Airport

Dalmore’s brand positioning with the introduction of new visual merchandising standards in Middle East and China

Shackleton Blended Scotch Whisky

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Recent Developments One of the 2018 initiatives in the Philippines is the launch of Shackleton Blended Malt Scotch Whisky. Shackleton Blended Malt combines select Highland Single Malts to capture the spirit of the

• riginal whisky commissioned

by British explorer Sir Ernest Shackleton’s for his legendary 1907 Antarctic expedition.

Our Financials Key Takeaways

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Recent Developments

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Key Takeaways Dominance, Premiumization, Profitability Future-proofing dominance

We want to secure our dominance in Philippine liquor while making a dent on global liquor.

Premiumization

We are best positioned to do premiumization in the Philippines.

Profitability

We want margin sustainability and stability.

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END OF PRESENTATION