Ayala Corp. · PSE:AC
Ayala — Q1 2012 Earnings Presentation
25 slides from Ayala's earnings presentation, May 11, 2012
Slide 1: Analysts' Briefing 1st Quarter 2012 Results
Analysts’ Briefing 1st Quarter 2012 Results 11 May 2012
Slide 2: Key Highlights
Key Highlights Net income up 42% year-on-year driven by key business units: • ALI: Solid performance across all business segments • BPI: Growth in core banking business enhanced by trading gains • MWC: Strong sales in the East Zone and positive contribution from new businesses Significant improv
Slide 3: Consolidated Net Income & Equity in Net Earnings
Consolidated Net Income & Equity in Net Earnings Consolidated Net Income (in million Pesos) Equity in Net Earnings (in million Pesos) 42% 3,483 2,451 35% 1Q11 1Q12
Slide 4: Equity In Net Earnings
Equity In Net Earnings (in million Pesos) Combined equity earnings IMI turnaround while LiveIt from core businesses ALI, incurred lower losses BPI, Globe and MWC rose by 47% year-on-year
Slide 5: Breakdown of Equity In Net Earnings & Gross Asset Value
Breakdown of Equity In Net Earnings & Gross Asset Value Breakdown of Equity Earnings Gross Asset Value as of 31 March 2012 as of 31 March 2012 Total: P4.24B Total: P334.1B
Slide 6: Balance Sheet / Debt Profile
Balance Sheet / Debt Profile (as of March 31, 2012) As of As of in billion pesos 03.31.12 12.31.11 Bulk of debt (84%) is in Gross Debt* 39.6 43.4 pesos and have fixed Cash 13.9 18.0 rates (68%) Net Debt 25.7 25.4 Blended cost of debt at 5.7% Net Debt to Equity 0.23:1 0.24:1 Ratio Debt Maturities
Slide 7: Recent Developments: Issued P10B 15-year corporate bond
Recent Developments Issued P10B 15-year corporate bond o Fixed interest rate of 6.875% p.a. payable quarterly o Due 2027; callable on the 10th year and every year thereafter o First significantly sized corporate bond in the domestic capital market with a 15-year tenor o Rated PRS Aaa by PhiliRatin
Slide 8: Recent Developments: Strategic partnership with Metro Pacific Investments Corp.
Recent Developments Formed strategic partnership with Metro Pacific Investments Corp. o Exclusive partnership to jointly pursue and develop light rail projects in the greater Metro Manila area o Each party to own a 50% interest in the light rail projects and related real estate development o Eyein
Slide 9: Recent Developments: Right to purchase 10% stake in CII
Recent Developments Ayala was awarded the right to purchase 10% stake in CII o CII is a leading player in the infrastructure sector in Vietnam with a portfolio of strategic infrastructure assets; it is listed in the Ho Chi Minh Stock Exchange o CII holds toll road concession agreements in addition
Slide 10: Business Unit Review
BUSINESS UNIT REVIEW
Slide 11: Growth momentum sustained across the board
Growth momentum sustained across the board Revenues and Net Income High growth trajectory of (in million Pesos) revenues and net income Revenues up 17% vs last year driven by strong +17% growth across all +31% business segments Continued improvement in net income margin
Slide 12: Strong take-up of residential projects
Strong take-up of residential projects (in million Pesos) (in million Pesos) TA K E - U P VA L U E B O O K E D S A L E S VA L U E 19,321 1Q12 9,788 1Q12 1Q11 10,127 1Q11 6,600 +48% +91% Residential revenues up 21% Strong growth across all residential brands as sales take-up surged by 91% while b
Slide 13: Steady growth of leasing Portfolio
Steady growth of leasing Portfolio Harbor Point in Subic SHOPPING CENTERS Occupied mall GLA increased by 9% YoY to over 1 M sqm. Average occupancy at 96% Average lease rate up 7% Baguio-AyalaLand OFFICE LEASING TechnoHub Bldg B Occupied BPO GLA up by 25% YoY to 321K sqm. Occupancy rate at
Slide 14: Solid growth in core business enhanced by trading gains
Solid growth in core business enhanced by trading gains (in million Pesos) Total Revenues up 46% +46% • Net interest income up 8% • NIMs ended higher by 14 basis pts. +104% • Non interest income surged to P6.8B, up 124% Net income up by 104%
Slide 15: Strong core banking business
Strong core banking business March March As of 3/31/12 YoY Selected Ratios (in Php B) Growth 2012 2011 Total 808 +6% NPL Ratio (Net 30-day) 2.0% 2.4% Resources Cost -to-Income Ratio 45.3% 56.3% Deposits 645 +7% ROE 25.7% 14.4% Assets Held In 716 +15% Trust Basel II CAR 15.5% 16.5% Tier 1 CAR 14.6% 1
Slide 16: Strong start to the year with record revenues
Strong start to the year with record revenues Revenues and Net Income in million Pesos Consolidated EBITDA margin down to 43% due to higher operating expenses and subsidy Higher financing and non-operating charges resulted in 10% decline in net income; core net income down 7% Note: Service reven
Slide 17: Mobile and broadband businesses continued to grow
Mobile and broadband businesses continued to grow Mobile and Broadband Revenues in million Pesos +6% Mobile net adds of 1M up 16%; broadband subscribers up 26% YoY New services launched gained traction +13% Network modernization program in full swing Manila Water
Slide 18: Strong growth in East Zone; new businesses expanding
Strong growth in East Zone; new businesses expanding (in million Pesos) 1Q11 1Q12 % Change Revenues 2,671 3,419 28% Operating Expenses 745 919 23% EBITDA 1,926 2,500 30% Net Income 816 1,341 64% (attributable to MWC equity holders) *Billed Volume (in mcm) 100.5 107.7 7.2% (includes LWC, BIWC, CWC) S
Slide 19: Revenues and Net Income
Revenues Net Income (in million dollars) (in million dollars) 152 123 24% 128% Revenue growth driven by business expansion in Europe and Mexico and Philippine operations EBITDA improved by 27% year-on-year with reduced operating expenses Net income includes foreign exchange gain from Europe op
Slide 20: Supply disruption easing; recovery underway
Supply disruption easing; recovery underway Revenues Net Income (in million Pesos) (in million Pesos) 14% 22% Lower vehicle sales as a result of tight inventory in January; supply disruption easing as Honda unit sales hit 15-year high in March Net income decline due to share in losses of HCPI; e
Slide 21: Solid improvement in operating performance
Solid improvement in operating performance Share of Revenues (In USD Millions) FIRST QUARTER Share of Revenues of $82.5M, up 12% mostly due to growth of Integreon and IQBackOffice. Share of EBITDA (In USD Millions) FIRST QUARTER Share of EBITDA of $6.8M, up 18% due primarily to Stream’s improved
Slide 22: Solid improvement in operating performance
Solid improvement in operating performance Net Income (In USD Millions) Net Loss of $4.7M, improved by $0.6M due to higher EBITDA, particularly from Stream Net Loss is after $5.5M in Non- Operating Items related to acquisitions such as: Bridge Between EBITDA And Net Income – Non-cash amortizatio
Slide 23: Updates on Power and Transport Infrastructure
Updates on Power and Transport Infrastructure Concession agreement signed in Daang Hari- March 2012 SLEX Currently developing the Detailed Link Road Engineering Design Expected completion in Sept 2013 SLTEC Phase 1 Began site clearing and test piling Expected completion in Aug 2014 135 MW
Slide 24: Summary
Summary Sustained growth of core businesses Improved performance of international businesses Continued expansion and execution of new businesses Strong balance sheet to support growth initiatives
Slide 25: Analysts' Briefing 1st Quarter 2012 Results
Analysts’ Briefing 1st Quarter 2012 Results 11 May 2012