EMPERADOR INC. 1H2019 FINANCIAL RESULTS 1 1H2019 FINANCIAL RESULTS - PowerPoint PPT Presentation

EMPERADOR INC. 1H2019 FINANCIAL RESULTS 1

1H2019 FINANCIAL RESULTS 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS

OUR FINANCIALS 1H2019 Financial Highlights P3.3b P21.5b 28% 1.6b WHISKY NET INCOME* REVENUES BRANDY 72% 11% 15.2% 1.9% NET INCOME REVENUE NET INCOME MARGIN * GROWTH * BREAKDOWN *Attributable to parent

OUR FINANCIALS 1H19 Performance Update 2Q19 YoY 1H18 1H19 YoY Commentary Growth driven by imported brandy; whisky 10,425 7% 19,504 21,450 10% REVENUES (PHPm) revenues in PHP affected by GBP weakness. GROSS PROFIT Overall gross profit margin 3,635 -2% 7,060 7,323 4% remains in mid 30s; raw (PHPm) material cost pressure still GROSS PROFIT 35.3% 36.9% 34.8% felt in brandy. MARGIN 2,194 -1% 4,626 4,731 2% EBITDA (PHPm) Higher selling & distribution for brandy 21.0% 23.7% 22.1% EBITDA MARGIN Lower margin due to 1,512 -6% 3,190 3,250 2% NET INCOME* (PHPm) overall cost pressure for NET INCOME brandy, both in COGS and 14.5% 16.4% 15.2% OPEX MARGIN* *Attributable to parent

OUR FINANCIALS Latest Financial Performance Revenues (PHPm) Gross Profit (PHPm) & Margin 37.8% 36.9% 10% 35.3% 34.8% 21,450 4% 7% 19,504 7,323 7,060 10,425 9,760 -2% 3,714 3,635 2Q18 2Q19 1H18 1H19 2Q18 2Q19 1H18 1H19 EBITDA (PHPm) & Margin Net Income (PHPm) & Margin* 16.45% 16.36% 23.7% 22.7% 15.15% 22.1% 14.51% 21.0% 2% 2% 4,731 4,626 3,250 3,190 -6% -1% 2,212 1,605 2,193 1,512 2Q18 2Q19 1H18 1H19 2Q18 2Q19 1H18 1H19 *Attributable to parent

OUR FINANCIALS Financial History Revenues (PHPm) Gross profit (PHPm) & Margin 19% 38% 35% 15% CAGR 35% 34% 35% 31% 47,050 31% 43,645 41,018 42,656 CAGR 26% 16,041 15,306 14,942 29,865 32,009 13,679 10,903 17,355 23,594 9,225 8,210 4,445 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 Net income* (PHPm) & Margin EBITDA (PHPm) & Margin 16% 30% 21% 17% 28% 20% 27% 19% 27% 19% CAGR 16% CAGR 23% 22% 22% 15% 14% 13% 19% 11,023 9,641 10,332 7,693 8,738 9,609 6,960 8,323 6,204 6,322 6,658 5,831 7,145 5,000 3,377 2,305 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 * Attributable to parent

OUR FINANCIALS SEGMENT BREAKDOWN Revenues Gross Profit EBITDA Net Income 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 (PHPm) 13,393 15,344 4,705 4,786 3,569 3,452 2,373 2,268 Brandy 6,111 6,107 2,354 2,537 1,058 1,278 890 997 Whisky 19,504 21,450 7,060 7,323 4,626 4,731 3,263 3,266 EMP Inc. Revenues, net of intersegment • Net income is before deducting non-controlling interest. •

OUR FINANCIALS Gross Profit Margin 41.3% 40.2% 39.7% 38.9% 37.3% 35.2% 34.8% 34.6% 37.1% 34.6% 35.1% 32.7% 31.7% 31.6% 31.6% 30.1% Whisky Brandy 19.7% 18.1% Emp. Inc 2014 2015 2016 2017 2018 1H19

OUR FINANCIALS Solid Capital Position Cash Debt Net Debt Net Debt to Equity Commentary (PHPm) Lower PHP equivalent of Euro 6,362 37,904 31,542 50% loan due to Euro weakness and some debt repayment 1H19 6,362 32,568 26,206 41% Ex Equity-linked security Lower cash due to share buyback 6,228 39,274 33,045 54% and dividend payout 2018 Ex Equity-linked security 6,228 34,015 27,786 45%

1H2019 FINANCIAL RESULTS 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS

FUNDADOR SUPREMO 18 YO Best Brandy in the World 2019 International Wine and Spirit Competition (IWSC) Fundador Supremo 18 competed against 100 top-tier brandies from all over the world to win the IWSC Worldwide Brandy Trophy Award for 2019.

UPDATES Brandy Hierarchy c . Ph p 3 5 0 c . Ph p 2 6 0 c . Ph p 1 2 0 12

UPDATES Malt Hierarchy c . P h p 2 , 5 0 0 c . P h p 3 , 5 8 0 c . P h p 1 , 2 5 0 c . P h p 1 , 7 0 0 c . P h p 1 , 9 0 0 13 13

1Q2019 FINANCIAL RESULTS 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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