Ayala Corp. · PSE:AC
Ayala — H1 2012 Earnings Presentation
31 slides from Ayala's earnings presentation, Aug 10, 2012
Slide 1: Analysts Briefing First Semester 2012 Results
Analysts Briefing First Semester 2012 Results 10 August 2012
Slide 2: 1H12 consolidated net income up 23%; core net income up 35%
1H12 consolidated net income up 23% year-on-year; with core net income up 35% Growth driven by key business units: ALI: Earnings trajectory sustained with robust growth across all business segments BPI: Solid growth of core banking business boosted by trading gains realized in 1Q12 MWC: St
Slide 3: Consolidated Net Income and Equity in Net Earnings 2Q12
Consolidated Net Income Equity in Net Earnings (in million Pesos) (in million Pesos) 5% 13% 2,484 3,424 2,596 3,042 2Q11 2Q12 2Q11 • 2Q12 core net income of P2.8B 2Q12 up 13% y-o-y Note: AC Core Net Income excludes the impact of Globe’s accelerated depreciation arising from its network modernization
Slide 4: Consolidated Net Income and Equity in Net Earnings 1H12
Consolidated Net Income Equity in Net Earnings (in million Pesos) (in million Pesos) 23% 24% 6,079 7,665 4,935 6,173 1H11 1H12 1H11 • 1H12 core net income of P6.3B up 35% 1H12 Note: 1H12 core net income excludes the impact of Globe’s accelerated depreciation arising from its network modernization pr
Slide 5: Combined equity earnings from core businesses rose
3,170 240 2,278 1H11 2,080 98 84 1H12 50 80 1,784 1,663 -3 -100 13 1,536 1,051 Auto IMI LiveIt AG Others 785 Holdings 1H11 1H12 -441 ALI BPI Globe MWC -510 Combined equity earnings from Improvement in equity core businesses ALI, BPI, Globe earnings from Auto, IMI and and MWC rose by 27% year-on-
Slide 6: Breakdown of Equity Earnings and Gross Asset Value
Breakdown of Equity Earnings Gross Asset Value as of June 30, 2012 as of June 30, 2012 MWC Globe Others BPI Globe MWC 8% 20% -5% 26% 13% IMI 14% 1% BPI LiveIt 41% ALI ALI 2% 30% 44% Others 6% Total: P7.7B Total: P340.4B 6
Slide 7: Debt profile and maturities
Bulk of debt (88%) is in pesos and have fixed rates (75%) Blended cost of debt Net Debt to Equity 0.23:1 0.24:1 at 5.7% Ratio *Excludes preferreds DEBT MATURITIES (in million Pesos) 9,814 7,731 7,851 5,749 6,314 4,907 4,195 409 1,457 2012 2013* 2014 2015 2016 2017 2018 2019 2027 *excludes P6B pr
Slide 8: AC Treasury Share Placement
AC Treasury Share Placement Placement of 15 million common shares held in Treasury Shares sold at P430 per share Raised cash proceeds of P6.45B Proceeds for working capital and funding of potential investments 5.18 million shares left in Treasury 8
Slide 9: Participation in ALI Equity Offering
Participation in ALI Equity Offering Mainly to support ALI’s fund raising initiatives in preparation for its next phase of business development; AC sold 680 million of its listed ALI shares at Php20 per share; Proceeds infused into ALI as subscription for the same number of new ALI common sh
Slide 10: Daang Hari-SLEX Link Road
à AC submitted the Detailed Engineering Design (DED) on schedule last 20 July 2012; à DPWH currently reviewing DED DAANG HARI- SLEX LINK ROAD 10 10
Slide 11: PPP Projects
PPP Projects à LRT Line 1 o Construction of 12-km extension to Cavite plus O&M of existing line; system integration of existing line and Cavite extension o O&M of the integrated line for 30-35 years o On-going selection of partners and advisors o Submission of Pre-qualification Documents on August 2
Slide 12: NAIA Expressway
à NAIA EXPRESSWAY Design, Build, Operate & Maintain a 7-km 4-lane viaduct from Skyway to Roxas Boulevard and Macapagal Ave. Estimated Construction Cost: P11B 30-year concession period Pre-qualification submission: Sept 18, 2012 Bid Submission: December 2012 12 12
Slide 13: Cavite-Laguna (CALA) Expressway
à Cavite-Laguna (CALA) Expressway o Divided into: Cavite Section – 27.5 km, 6-lane tolled expressway from Kawit to Silang/ Aguinaldo (via PPP) Laguna Section - 15.0 km, 6-lane tolled expressway from Silang to SLEX (via ODA) o NEDA-ICC approved; invitation to pre-qualify expected to come out in the n
Slide 14: Mactan Cebu and Laguindingan Airports
Mactan Cebu International Airport • Country’s 2nd primary gateway • Terminal expansion being planned and feasibility study for new international terminal underway Laguindingan Airport • Development of new airport in Northern Mindanao • Operation and maintenance of Laguindingan and Palawan airports t
Slide 15: ERC decision on Feed-In-Tariffs
ERC released decision on Wind: P8.53/kwh Feed-In-Tariffs (FIT): (200MW) • Awaiting from ERC specific FIT to be assigned to Northwind Solar: P9.68/kwh (50MW) • Revisit economic viability depending Hydro: P5.90/kwh on EPC and size of (250MW) capacity allocation • Viability to be determined based on
Slide 16: South Luzon Thermal Energy Corporation and Others
South Luzon Thermal Energy Corporation • Construction started (site cleared, piling/foundation work started) • Completed first phase of design with detailed design in progress • On-track for completion 2014 Others • Robust pipeline of acquisition and greenfield opportunities in renewable and con
Slide 17: Business Unit Review
BUSINESS UNIT REVIEW 17
Slide 18: ALI: Net Income and Residential Sales Take-Up
Net Income Residential Sales Take-Up (in million Pesos) 4,326 (in billion Pesos) 3,381 19.3 19.8 Amaia 12.8 Avida 2,194 +28% 1,759 Alveo +25% ALP 2Q11 2Q12 1H11 1H12 4Q11 1Q12 2Q12 • Revenues up 18% in 1H12 due to: • Record sales continue: o 24% growth in Residential Segment o Ave. monthly take-up o
Slide 19: ALI: Occupied Mall and BPO GLA
Occupied Mall GLA (‘000 sqms) • New malls boost mall 1,042 1,081 performance 1,000 1,048 • Occupied GLA up 8% y-o-y • Ave. lease rate up 6% • Occupancy rate of 3Q11 4Q11 1Q12 2Q12 Harbor Point (Subic) 94% Occupied BPO Office GLA • Occupied BPO GLA (‘000 sqms) up 19% y-o-y 338 338 298 301 • Ave. leas
Slide 20: BPI: Net Income and selected ratios
9,449 NET INCOME • Revenues up 24% due to: (in million Pesos) o 9% growth in net interest 6,198 3,344 3,615 income +52% +8% o 51% increase in non-interest income 2Q11 2Q12 1H11 1H12 In Billion Php June 30, 2012 YoY Growth • NIMs improved by 14 basis points Total Resources 899 5% • Loan growth from a
Slide 21: BPI: Net Income and selected ratios
9,449 NET INCOME • Revenues up 24% due to: (in million Pesos) o 9% growth in net interest 6,198 3,344 3,615 income +52% +8% o 51% increase in non-interest income 2Q11 2Q12 1H11 1H12 In Billion Php June 30, 2012 YoY Growth • NIMs improved by 14 basis points Total Resources 899 5% • Loan growth from a
Slide 22: Globe: Core Net Income
Core Net Income (in million Pesos) Service revenues up 6% to P40.8B, a 5,574 5,668 new record high 2,928 +2% o Mobile revenues up 6% to P33.3B 2,613 with strong postpaid growth (+21%) +12% and steady pre-paid revenues o Broadband revenues up 13% with 2Q11 2Q12 1H11 1H12 expansion in subscriber bas
Slide 23: Globe: Subscribers by Brand
Subscribers by Brand 1H12 YoY Mobile subscribers increased by (in Thousand SIMs) 12% year-on-year with strong Globe Postpaid 1,600 28% growth across all brands Globe Prepaid 16,110 9% TM 14,017 12% Broadband Subscribers Totals 31,726 12% (in ‘000) +22% 1,584 Broadband subscribers grew by 22%
Slide 24: Manila Water: Net Income and Billed Volume
24 Net Income (in million Pesos) • Revenues of P7.2B in 1H12 up 24% 2,630 y-o-y due to higher average tariff 2,001 and strong billed volume in the East 1,185 1,289 +31% Zone +9% • New businesses accounted for 5% 2Q11 2Q12 1H11 1H12 of revenues and net income % • EBITDA up 17% to P5.1B with 1H12 1H11
Slide 25: Manila Water: Net Income and Billed Volume
25 Net Income (in million Pesos) • Revenues of P7.2B in 1H12 up 24% 2,630 y-o-y due to higher average tariff 2,001 and strong billed volume in the East 1,185 1,289 +31% Zone +9% • New businesses accounted for 5% 2Q11 2Q12 1H11 1H12 of revenues and net income % • EBITDA up 17% to P5.1B with 1H12 1H11
Slide 26: Automotive: Net Income
Net Income Revenues up 2% despite 2% decline in (in million Pesos) vehicle sales volume 99 o Honda vehicle sales down 15% 50 o Isuzu vehicle sales up 27% o Continued recovery in Honda with improving sales of existing models and 1H11 1H12 introduction of new units Ayala holds 46% share of Honda n
Slide 27: IMI: Net Income and Revenues
Net Income (in million US$) 1H12 revenues grew by 24% to + 173% 3.1 US$326M due to full-year impact of EPIQ acquisition 1.1 EBITDA improved by 22% y-o-y to US$16M with reduced operating 1H11 1H12 expenses Revenues Net income growth brought about by 1H11 lower selling & admin expenses (in milli
Slide 28: BPO: Share of Revenues and EBITDA
28 Share of Revenues Share of EBITDA (In USD Millions) (In USD Millions) $166.2 $152.3 $13.1 $10.4 9% YoY 26% YoY growth growth 1H 2011 1H 2012 1H 2011 1H 2012 • Share of Revenues of $166.2, up • Share of EBITDA of US$13M 9% year-on-year up 26% due primarily to improved profitability at Stream and A
Slide 29: BPO: Net Income/(Loss)
29 • Net Loss of $10.4M, better by $1.7M Net Income/(Loss) due to higher EBITDA, particularly at (In USD Millions) Stream and Affinity Express. • Net Loss is after $12.7M in Non- Operating Items related to acquisitions $1.7M such as: improvement ⁻ Non-cash amortization of $(10.4) intangibles (US$4M)
Slide 30: Closing: sustained growth momentum of core businesses
Sustained growth momentum of core businesses International businesses continue to improve Expanding and executing on new businesses Strong funding capacity with flexibility to scale up investments 30
Slide 31: Analysts' Briefing First Semester 2012 Results
Analysts’ Briefing First Semester 2012 Results 10 August 2012