Ayala Corp. · PSE:AC
Ayala — 9M 2011 Earnings Presentation
25 slides from Ayala's earnings presentation, Nov 11, 2011
Slide 1: Analysts' Briefing Year-to-Date September 2011
ANALYSTS’BRIEFING YEAR-TO-DATE SEPTEMBER 2011 11 November 2011 South Room, 25F Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue, Makati City
Slide 2: Consolidated Financial Highlights
Consolidated Financial Highlights (in million Pesos) + 8% 9,222 8,502 4% 7% + 5% +9% 2,911 3,048 +6% • Equity earnings from the core businesses grew by 6% Q-on-Q and 9% Y-on-Y. • Consolidated net income declined 4% Q-on-Q but up 7% Y-on-Y.
Slide 3: Equity in Net Earnings
Equity in Net Earnings (in million Pesos) +6% +32% +7% - 3% - 68% - 109% Others • ALI, BPI, and Globe have shown steady increase in equity earnings year-on-year, with ALI leading the way with a 32% growth
Slide 4: Equity Earnings Contribution of Subsidiaries / Affiliates
Equity Earnings Contribution of Subsidiaries / Affiliates Others Others -3% -8% MWC ALI MWC ALI 13% 29% 15% 30% GLOBE GLOBE 26% 25% BPI BPI 35% 38% 9M11 3Q11 • BPI accounts for more than 30% of equity earnings, with ALI and Globe contributing more than 20% and MWC more than 10%.
Slide 5: Balance Sheet Highlights Parent Company
Balance Sheet Highlights Parent Company in billion End End End Pesos 3Q11 2010 3Q10 Debt Maturities (in million Pesos) Gross Debt* 49.1 42.3 43.4 12,314 Cash 26.1 29.1 30.2 Net Debt 23.0 13.2 13.1 8,000 7,227 6,263 5,952 Debt Mix 5,002 Floating 26% 32% 33% 3,002 Fixed 74% 68% 67% 1,485 349 Peso 88%
Slide 6: Recent Developments
Recent Developments Obtained a P9B project finance South Luzon loan for the construction and Thermal operation of its planned 135-MW Energy Corp. thermal plant in Calaca, Batangas Transport One among three companies that Infrastructure pre-qualified to bid for Daang- Sector Hari-SLEX Link Road proje
Slide 7: Business Unit Review
O BUSINESS UNIT REVIEW
Slide 8: Upward earnings trajectory sustained
Upward earnings trajectory sustained Net income performance 9M11 Record Earnings of P5.2B P millions
Slide 9: Strong revenue growth posted across key businesses
Strong revenue growth posted across key businesses REVENUE BREAKDOWN (Php millions) 9M2011 9M2010 % • Steady completion and Property development 18,839 14,501 30% strong bookings from ALP Residential 17,584 13,807 27% and additional sale of 3 Nuvali commercial lots Comm’l/Ind’l lots 1,255 693 81% Co
Slide 10: New record sales take-up, with bookings accelerating in 3Q11
New record sales take-up, with bookings accelerating in 3Q11 Take-up value 15,135 • Strong sales take-up sustained 13,693 Pmillions across all brands 9,728 10,127 9,025 7,932 6,453 • Average monthly take-up increased to P5B in 3Q11 (vs P4B in 1H11) • Bookings keeping pace with take- up Booked sales
Slide 11: Launches on track, with 9M11 matching FY10 record total
Launches on track, with 9M11 matching FY10 record total • 9M11 launches 99% of FY10 units, with value of P34B • FY11 target unit launches on track, with 4Q total at ~10k units: • Alveo: BHS South, Tagaytay, 4,238 Solaris, Solinea 2,229 • Avida: BGC (2 towers), Cebu, Manila • Amaia: Cavite, Pampanga
Slide 12: Steady improvement of commercial leasing
Steady improvement of commercial leasing Office Occupied BPO office GLA • Occupied BPO GLA at 230K sqm, up 2% QoQ and 26% YoY 86% leased out from 83% in 1H11 230 ‘000 sqms GLA 225 215 191 • Ave lease rates for BPO portfolio 182 169 169 of P575/mo lower YoY due to mix (increasing non-CBD locations)
Slide 13: Bank of the Philippine Islands Net Income
Bank of the Philippine Islands Net Income (in million pesos) 9,105 9,634 • YTD Revenues up 7% to P 31 billion. +6% • Net interest income improvement by 9% backed by P 67 billion increase in average asset base. 9M10 9M11
Slide 14: Bank of the Philippine Islands
Bank of the Philippine Islands End 3Q10 Y-on-Y (in billion pesos) Growth Total Resources 789 3% Deposits 625 2% Assets Held in Trust 662 44% Net Loans 404 22% • Total funds managed by the bank now amount to nearly P 1.3 trillion. • Loan growth was sustained with middle market lending leading the way
Slide 15: Globe Telecom
Globe Telecom Consolidated Financial Highlights YoY In Php Mn 9M11 9M10 3Q11 vs 2Q11 vs 3Q10 Change Service Revenues 49,987 45,815 9% 16,981 3% 13% OPEX & Subsidy 22,960 21,026 9% 7,997 5% 10% EBITDA 27,027 24,789 9% 8,984 - 15% EBITDA Margin 54% 54% 53% 54% 52% EBIT 13,254 11,539 15% 4,170 (4%) 29%
Slide 16: Healthy Subscriber Growth in Mobile and Broadband
Healthy Subscriber Growth in Mobile and Broadband Mobile Subscriber Base (in Thousands) Broadband Subscribers (in Thousands) 29,118 1,364 25,320 1,368 984 1,006 15,055 13,323 1,078 763 11,039 12,695 243 286 9M 2010 9M 2011 9M 2010 9M 2011 TM Globe Prepaid Globe Postpaid Wired Wireless Mobile: Revenu
Slide 17: Increasing Capital Expenditure for Network Modernization
Increasing Capital Expenditure for Network Modernization CAPEX (Php Mn) and as % of Revenues • Globe will invest around US$700M in the next 5 years to support a massive network modernization project, and another US$90M to complete its IT transformation initiative. • This will be the biggest and most
Slide 18: Increasing Capital Expenditure for Network Modernization
Increasing Capital Expenditure for Network Modernization CAPEX (Php Mn) and as % of Revenues • Globe will invest around US$700M in the next 5 years to support a massive network modernization project, and another US$90M to complete its IT transformation initiative. • This will be the biggest and most
Slide 19: Manila Water Company
Manila Water Company YTD September • Revenue growth due to : 2011 2010 Change (In Million Pesos) • approved adjustments in tariff for the year in the East Zone, Revenue 8,904 8,337 7% • growth in revenues from new EBITDA 6,570 6,091 8% businesses • increase in service connections EBITDA Margin 74% 7
Slide 20: Acquisition of Clark Water
Acquisition of Clark Water* Acquisition of 100% ownership from Veolia Water Phils. and Philippine Water Holdings Inc. Concessionaire of Clark Freeport Zone (CFZ) 1,800 locators, 85% industrial and commercial Current demand of 20.6 mld *Subject to the completion of Condition Precedents.
Slide 21: Automotive Group
Automotive Group YTD September Revenues (in billion pesos) Decline in sales volume attributed to aging models and supply concerns Net income down 69% YoY to P76M on account of lower sales volume and lower income from YTD September Net Income collateral business (in million pesos) Share in HCPI
Slide 22: Integrated Microelectronics, Inc.
Integrated Microelectronics, Inc. • Revenues of $420m, up by YTD September Revenues 43% YoY. • Direct costs were higher by 46% YoY, led by direct +43% materials. • Fixed manufacturing overhead increased by 69%, resulting in a 3% drop in gross profit. • IMI had a $2.3m forex gain, boosting 9M11 non-
Slide 23: LiveIt 9M11 Performance
LiveIt 9M11 Performance YTD September: 2011 versus 2010 20% growth • LiveIt’s share of combined BPO revenues grew by 20% due to growth in client volumes across all investee companies. • LiveIt’s share of combined EBITDA also improved by 42% to US$16 million as a result of greater scale and cost 42%
Slide 24: LiveIt Consolidated Net Income
LiveIt Consolidated Net Income YTD September: 2011 versus 2010 • Achieved positive operating net income of $0.4M in 2011 vs an operating net loss of $4.6M in 2010 as a result of growth in client volumes, greater scale and cost efficiencies across all investee companies. • Non-Operating Items are com
Slide 25: Analysts' Briefing Year-to-Date September 2011
ANALYSTS’BRIEFING YEAR-TO-DATE SEPTEMBER 2011 11 November 2011 South Room, 25F Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue, Makati City