Ayala Corp. · PSE:AC
Ayala — JP Morgan Asia Investor Conference 2005
17 slides from Ayala's conference presentation, Apr 12, 2005
Slide 1: JP Morgan Asia Investor Conference
2005 JP Morgan Asia Investor Conference 12 April 2005 R Hotel Shangri-la, Manila Rufino Luis Manotok Managing Director
Slide 2: The Ayala Group today: rationalized portfolio
Rationalized The Ayala Group today: portfolio focusing on key businesses where it can AC be #1 or #2 in Capital Globe its industry... Telecom BPI ALI Manila Integrated Ayala Ayala Others Water Micro- Auto- International electronics motive SUBSIDIARIES SOLD FOOD & INSURANCE OTHERS & AGRIBUSINESS Pure
Slide 3: Earnings mix has changed significantly following asset reallocation
Earnings mix has changed BREAKDOWN OF EQUITY EARNINGS, 1990 VS. 2004 significantly following an 1990 asset Food & Agri 12% Telecom 1% Others reallocation Financial Services 4% 25% program... Property 58% 2004 P 1.3 billion AC Capital 22% Property Telecom 19% 41% Banking & Financial Services 18% P 10
Slide 4: Ayala has built its businesses into dominant industry players
Ayala has built its Ayala Land the country’s leading real estate businesses developer into dominant industry players: BPI the best performing bank in the Philippines Globe a strong #2 player in the telecommunications industry Manila Water a successful privatization of the water distribution network
Slide 5: ALI is the only full line real estate developer in the Philippines
ALI is the only full line real estate developer in the Philippines... Revenues & Net Income Current Position 1999 - 2004 In billion pesos • #2 in Malls (760k GLA, excluding hotels) In billion pesos 18 Mall & Office • #1 in premium office buildings 14.6 11.7 12.2 10.3 Development • #1 in high-end hor
Slide 6: BPI is #1 in profitability & asset quality
BPI is #1 in profitability & asset quality Net Income as of Dec 20, 2004 In billion pesos Top Five Philippine Banks Highlights 6.7 5.7 5.2 5.2 (in billion pesos) 3.1 Assets Deposits Loans Capital Trust Net Inc. ROE BPI* 471 367 206 53 160 6.7 12.5% MBTC 536 393 251 56 146 3.6 6.6% EPCIB 307 193 126
Slide 7: Globe Telecom has grown to be a strong #2 player
Globe Telecom has grown to be a strong #2 player in just 10 years... 14000 12,514 Prepaid Wireless No. of wireless In ‘000 12000 subscribers 8,860 • Strong industry Subscriber Share 10000 8000 6,572 growth as affordable 4,588 6000 2,661 market expands 4000 Globe 2000 321 1,054 • Heightened 151 39% 0
Slide 8: AC Capital
AC Capital Contribution to Equity Earnings 2004 Globe 2001 41% AC AC Globe Capital Capital ALI 3% 34% 22% BPI 19% 18% BPI ALI 28% 35% in million pesos 2,292 1,021 549 206 2001 2002 2003 2004
Slide 9: Manila Water: a prime example of successful private & public sector partnership
Manila Water--a prime example of successful private & public sector è Record net partnership In ‘000 pesos income of 4500 Revenues & Net Income P1.33 billion 4000 3500 in 2004 3000 2500 è exploring bulk 2000 Revenues 1500 water supply 1000 Net Income projects 500 0 -500 1997 1998 1999 2000 2001 2002
Slide 10: IMI is one of the leading local EMS providers
è Growth from IMI is one of the leading local EMS providers increased volume from 2004 Japanese 2003 customers 2002 Net Income 2001 è Goal is to 2000 grow into Tier 1999 2 status in the 0 200 400 600 800 1000 1200 1400 next 5 years In million pesos è Net income Ayala Automotive is the largest dealer
Slide 11: Ayala International: property development and investment vehicle for overseas markets
Ayala International is the group’s property development and investment vehicle for overseas markets è Diversified geographically to include US$’000 Net Income 8000 North America 7000 Geographic Mix 6000 è Long-term 5000 Singapore Japan goal is to 4000 Malaysia 42% 4% achieve 3000 2% HongKong 2000 ap
Slide 12: Solid performance of key subsidiaries led to strong earnings in 2004
Solid performance of key subsidiaries led to strong earnings in 2004... è Net income Consolidated Income Statement (Audited, in P millions) % Ch. FY 2004 FY 2003 was 2.3x Revenues previous Sales & services 30,638 28,783 6% year’s level Equity in net earnings, interest rental & other investment incom
Slide 13: Ayala has reaped benefits through increased dividends from subsidiaries
Ayala has reaped benefits through increased dividends from subsidiaries... Total 6 Cash 5 5. 2 4.7 Dividends 4 Received 2.6 3 In billion pesos 2.2 2 1.5 1 0 2000 2001 2002 2003 2004 è Maturity profile And as investments matured, Ayala has manageable pursued de-leveraging efforts and spread out Net D
Slide 14: Market cap and share price have increased
Market cap and share price have increased… AC vs. Phisix End-03 to Apr05 AC (+66%) è Ayala outperformed the Phisix, 2.0 1.8 share price up 52% in 2004 vs. 1.6 AC (+52%) 1.4 Phisix’s 26% gain 1.2 Phisix (+32%) è Ayala continues to outperform the 1.0 Phisix (+26%) 0.8 Phisix, gaining 10% YTD Nov-04 Ja
Slide 15: Market value of Ayala's holdings in its listed subsidiaries has grown
The market value of Ayala’s holdings in its listed subsidiaries has grown significantly over the past 15 years. 1990 April 8, 2005 Market Value of AC Market Value of AC % Cap Holidngs % Cap Holidngs Ownership (in Php) (in Php) Ownership (in Php) (in Php) ALI* 89.4% 42 B 38 B 64.0% 86 B 55 B BPI 36.9
Slide 16: In closing
In closing… è Ayala has played a pivotal role in the growth of its subsidiaries, providing the necessary resources to drive growth è Strong performance of key subsidiaries translated to improved profitability and enhanced cash flow for Ayala è AC Capital to play critical role in our mandate to build
Slide 17: JP Morgan Asia Investor Conference
2005 JP Morgan Asia Investor Conference 12 April 2005 R Hotel Shangri-la, Manila