Vivant Corporation · PSE:VVT
Vivant — Shareholder Meeting (June 2017)
55 slides from Vivant's shareholder meeting presentation, Jun 15, 2017
Slide 1: 2017 Annual Stockholders' Meeting
External Developments Financial Highlights Growth Platform Performance People Planet 2017 ANNUAL STOCKHOLDERS’ MEETING Cebu Grand Convention Center June 15, 2017
Slide 2: Report of the EVP-COO
ARLO G SARMIENTO External Developments EVP – COO VIVANTHighlights Financial CORPORATION EXTERNAL DEVELOPMENTS Growth Platform PERFORMANCE REPORT Performance OF People THE EVP-COO Planet PEOPLE - RETURNS - KEY RATIOS ANNUAL STOCKHOLDERS’ MEETING THE GRAND CONVENTION CENTER OF CEBU PLANET FINANCIAL HI
Slide 3: External Developments: Oil Prices
OIL DEVELOPMENTS EXTERNAL PRICES As of May 2017 $49.52 $29.38 *Adjusted for inflation Source: Tradingeconomic.com ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 4: Increase in Dependable Generation Capacity
INCREASE IN DEVELOPMENTS 16% GENERATION EXTERNAL DEPENDABLE CAPACITY CAPACITY 25 Thousands 19,095 20 16,449 15,620 15,065 15,370 14,477 15 10 5 - 2011 2012 2013 2014 2015 2016 Coal Oil based Natural Gas Geothermal Hydro Wind Biomass Solar ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 5: Spot Market Prices
MARKET ₱RICES DEVELOPMENTS SPOT EXTERNAL AVERAGE PRICE 10 2014 at Php 4,953 Thousands 9 2015 at Php 3,558 8 2016 at Php 3,950 7 6 5 4 3 2 1 - in Php per MW ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 6: Philippines Power Plants by Age
DEVELOPMENTS POWER PLANTS AGE EXTERNAL BY PHILIPPINES Breakdown by age 5 yrs old 31 yrs old and and over, below, 20% 17% 6-15 yrs old, 24% 16-30 yrs old, 39% WE DO NOT EXPECT MATERIAL RETIREMENTS OF CAPACITY TO 2020 Source: DOE Macquarie Research, October 2015 Company data, DOE Philippines, Morgan S
Slide 7: Standard Deviation of Bauang Spot Prices
MARKET ₱RICES DEVELOPMENTS SPOT EXTERNAL STANDARD DEVIATION OF BAUANG PRICES THE VOLATILITY OF PRICES HAS BEEN IN A DOWNWARD TREND; FOR AT LEAST THE PAST TWO YEARS. ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 8: Net Income and Core Net Income
ATTRIBUTABLE PARENT TO INCOME NET INCOME CORE NET INCOME HIGHLIGHTS FINANCIAL 23% 37% 1,293 1,369 1,053 1,001 2015 2016 2015 2016 in Php million * IAS 28 compliant ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 9: Return on Equity
RETURN EQUITY ON 18% 2% HIGHLIGHTS FINANCIAL 14% 12% ROE FROM 2015 EQUITY YEAR (in Php million) 2014 7,632 2015 8,430 2016 9,457 2014 2015 2016 ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 10: Generation Business 2016
GENERATION 2016 BUSINESS NET INCOME CONTRIBUTION CORE NET INCOME CONTRIBUTION HIGHLIGHTS FINANCIAL 36% 37% 984 1,041 723 757 2015 2016 2015 2016 in Php million * IAS 28 compliant ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 11: Distribution Business 2016: Net Income and Electricity Sales
DISTRIBUTION 2016 BUSINESS NET INCOME CONTRIBUTION ELECTRICITY SALES HIGHLIGHTS FINANCIAL 9% 8% 689 2,586 2,791 631 2015 2016 2015 2016 in Php million ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 12: Distribution Business: Number of Customers
DISTRIBUTION 2016 NO. OF CUSTOMERS BUSINESS 409K HIGHLIGHTS FINANCIAL 2016 INCREASED BY 3% 396K 2015 ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 13: Distribution Business: MWh Sales per Area
DISTRIBUTION 2016 MWh SALES PER AREA BUSINESS HIGHLIGHTS FINANCIAL ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 14: Equitized Net Income Contribution
EQUITIZED NET INCOME CONTRIBUTION 2016 41% 59% HIGHLIGHTS FINANCIAL 2015 47% 53% 2014 33% 67% Distribution Generation ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 15: Total Assets
OPERATING BALANCE RESULTS SHEET 14,560 13,690 12,457 HIGHLIGHTS FINANCIAL 2014 2015 2016 TOTAL ASSETS in Php million ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 16: Cash and Cash Equivalents
OPERATING BALANCE RESULTS SHEET 4,860 4,438 4,068 HIGHLIGHTS FINANCIAL 2014 2015 2016 CASH & CASH EQUIVALENTS in Php million ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 17: Total Interest Bearing Liabilities
OPERATING BALANCE RESULTS SHEET HIGHLIGHTS FINANCIAL 2,974 2,981 3,025 2014 2015 2016 TOTAL INTEREST BEARING LIABILITIES in Php million ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 18: Equity Attributable to Parent
OPERATING BALANCE RESULTS SHEET HIGHLIGHTS FINANCIAL 9,457 8,430 7,632 2014 2015 2016 EQUITY ATTRIBUTABLE TO PARENT in Php million ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 19: Key Ratios: Debt-to-Equity and Current Ratio
OPERATING KEY RESULTS RATIOS DEBT-TO-EQUITY FRCN Ceiling 2.50 HIGHLIGHTS FINANCIAL 2015 0.81 2016 0.55 CURRENT RATIO FRCN Floor 1.25 2015 3.05 2016 3.93 ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 20: Cash Dividends per Share
CASH DIVIDENDS ₱ 0.28 HIGHLIGHTS FINANCIAL PER SHARE CASH DIVIDENDS DECLARED AND TO BE PAID IN 2017 MAY 12 2017 JUNE 22 2017 DECLARATION PAYMENT ANNUAL STOCKHOLDERS’ MEETING 2017
Slide 21: Growth Platform, Performance, People, Planet
Grow core business Strengthen partnerships Explore new opportunities PERFORMANCE Organization Team building Community relations PEOPLE GROWTH PLATFORM SUSTAINABLE Responsible growth Caring for our environment PLANET
Slide 22: Vivant Footprint
PERFORMANCE VIVANT FOOTPRINT Northern Renewables Therma Visayas, Inc. Generation Corporation 1590 Energy Corporation VEC - Unified Leyte Calamian Islands Power Cebu Energy Development Corporation Corporation Cebu Private Power GROWTH PLATFORM Delta P, Inc. Corporation SUSTAINABLE Amlan Hydro Power M
Slide 23: Vivant Capacity Mix by Location
PERFORMANCE VIVANT FOOTPRINT VIVANT CAPACITY MIX BY LOCATION 450 400 350 300 250 200 150 GROWTH PLATFORM 100 SUSTAINABLE 50 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E Mainland Luzon SPUG Area Visayas Mindanao in MW
Slide 24: Plants in Luzon, Visayas and Mindanao
PERFORMANCE VIVANT FOOTPRINT PLANTS INLUZON MAINLAND PLANTS VISAYAS IN GROWTH PLATFORM SUSTAINABLE PLANT MINDANAO IN
Slide 25: Attributable Generation Capacity Up at 253 MW
PROJECT PERFORMANCE UPDATES 253 MW 253 MW 232 MW 181 MW 34 MW GROWTH PLATFORM 2007 2010 2014 2015 SUSTAINABLE 2016 ATTRIBUTABLE GENERATION CAPACITY UP AT 253 MW
Slide 26: Total Investments as of 2016 at P4.9 Billion
PROJECT PERFORMANCE UPDATES 4,907 4,346 2,903 1,194 1,263 2 4 1,258 1,338 GROWTH PLATFORM 2008 2009 2010 2011 2012 SUSTAINABLE 2013 2014 2015 2016 TOTAL INVESTMENTS AS OF 2016 IS P4.9 BILLION in Php million
Slide 27: Investments at Roughly P2.0 Billion for 2017-2018
PROJECT PERFORMANCE UPDATES 802 1,151 343 72 6,129 121 4,907 4,346 2008 2009 GROWTH PLATFORM 2010 2011 2012 2013 2014 SUSTAINABLE 2015 2016 2017F 2018F EDPI MPC TVI INVESTMENTS AT ROUGHLY P2.0 BN FOR 2017-2018 in Php million
Slide 28: Project Update: Delta P, Inc.
PROJECT PERFORMANCE UPDATES Delta P, Inc. ADDITIONAL CAPACITY: 30 MW LOCATION: PUERTO PRINCESA, PALAWAN GROWTH PLATFORM TESTING AND COMMISSIONING: SUSTAINABLE ONGOING EXPECTED COD: 3RD QUARTER 2017 50% EQUITY PHP 200 MN VVT INVESTMENT TO DATE
Slide 29: Project Update: Misamis Oriental
PROJECT PERFORMANCE UPDATES GROSS CAPACITY: 165 MW LOCATION: BALINGASAG, MISAMIS ORIENTAL GROWTH PLATFORM EXPECTED COD: 2ND HALF 2017 SUSTAINABLE 40% EQUITY PHP 2.8 BN VVT INVESTMENT TO DATE
Slide 30: Project Update: Therma Visayas
PROJECT PERFORMANCE UPDATES THERMA VISAYAS GROSS CAPACITY: 330 MW LOCATION: TOLEDO CITY, CEBU EXPECTED COD: GROWTH PLATFORM 1ST HALF 2018 SUSTAINABLE 20% EQUITY PHP 2.2 BN VVT INVESTMENT TO DATE
Slide 31: Project Update: Silay City, Negros Occidental
PROJECT PERFORMANCE UPDATES GROSS CAPACITY: 6 MW LOCATION: SILAY CITY, NEGROS OCCIDENTAL GROWTH PLATFORM PROJECT ON HOLD DUE TO SUSTAINABLE NGCP TRANSMISSION CONSTRAINT 67% EQUITY PHP 75 MN VVT INVESTMENT TO DATE
Slide 32: Upcoming Projects in Pre-Development Stage
PROJECT PERFORMANCE UPDATES UPCOMING PROJECTS IN PRE-DEVELOPMENT STAGE 4.98 MW 10.87 MW CENTRAL PALAWAN NORTHERN PALAWAN HYBRID POWER PLANT HYBRID POWER PLANT RETAIL GROWTH PLATFORM ET VIVANT SUSTAINABLE ROOFTOP SOLAR ELECTRICITY RENEWABLE ENERGY SERVICES
Slide 33: Retail Electricity Services
PROJECT PERFORMANCE UPDATES RETAIL ELECTRICITY SERVICES (RES) PRISM ENERGY, INC. Wholly owned subsidiary Joint venture with Aboitiz Power Target market: Luzon – Visayas Target market: Visayas GRANTED ONGOING 5-YEAR RES LICENSE RENEWAL GROWTH PLATFORM RES LICENSE SEPTEMBER 2016 SUSTAINABLE Joint vent
Slide 34: Attributable Generation Capacity to Grow by 58% in 2018
PROJECT PERFORMANCE UPDATES 147 MW 81 MW 181 MW 232 MW 252 MW 253 MW 253 MW 253 MW GROWTH PLATFORM 2010 2014 2015 2016 SUSTAINABLE 2017E 2018E ATTRIBUTABLE GENERATION CAPACITY TO GROW BY 58% THIS 2018
Slide 35: Corporate Initiatives
CORPORATE PERFORMANCE INITIATIVES GROWTH PLATFORM SUSTAINABLE
Slide 36: Branding Workshops
CORPORATE PERFORMANCE INITIATIVES BRANDING BRANDING WORKSHOPS GROWTH PLATFORM SUSTAINABLE
Slide 37: New Vivant Website Launching
CORPORATE PERFORMANCE INITIATIVES BRANDING NEW VIVANT WEBSITE LAUNCHING GROWTH PLATFORM SUSTAINABLE
Slide 38: Operational Improvement: Strategic Planning
OPERATIONAL STRATEGY PEOPLE IMPROVEMENT INITIATIVES STRATEGIC PLANNING GROWTH PLATFORM SUSTAINABLE
Slide 39: Operational Improvement: Strategic Deployment
OPERATIONAL STRATEGY PEOPLE IMPROVEMENT INITIATIVES STRATEGIC PLANNING STRATEGIC DEPLOYMENT GROWTH PLATFORM SUSTAINABLE
Slide 40: HR Initiatives: Team Building
OPERATIONAL PEOPLE IMPROVEMENT HR INIATIVES TEAM BUILDING STRATEGIC DEPLOYMENT GROWTH PLATFORM SUSTAINABLE
Slide 41: HR Initiatives: USJR Job Fair and Engineering Homecoming
OPERATIONAL IMPROVEMENT HR INIATIVES USJR PEOPLE TEAM BUILDING JOB FAIR ENGINEERING HOMECOMING GROWTH PLATFORM SUSTAINABLE
Slide 42: HR Initiatives: Knowledge Banking
OPERATIONAL IMPROVEMENT HR INIATIVES USJR PEOPLE KNOWLEDGE BANKING JOB FAIR ENGINEERING HOMECOMING GROWTH PLATFORM SUSTAINABLE
Slide 43: HR Initiatives: Core Competency Training
OPERATIONAL PEOPLE IMPROVEMENT HR INIATIVES KNOWLEDGE BANKING CORE GROWTH PLATFORM SUSTAINABLE COMPETENCY TRAINING
Slide 44: Team Engagement: Christmas Party
TEAM PEOPLE ENGAGEMENT HR INIATIVES CHRIST MAS PARTY CORE GROWTH PLATFORM SUSTAINABLE COMPETENCY TRAINING
Slide 45: Team Engagement: Summer Core Outing
TEAM PEOPLE ENGAGEMENT HR INIATIVES CHRIST MAS PARTY SUMMER CORE OUTING GROWTH PLATFORM SUSTAINABLE COMPETENCY TRAINING
Slide 46: Team Engagement: Wellness
TEAM PEOPLE ENGAGEMENT HR INIATIVES CHRIST WELLNESS MAS PARTY SUMMER CORE OUTING GROWTH PLATFORM SUSTAINABLE COMPETENCY TRAINING
Slide 47: CSR Initiatives: Science Laboratory
TEAM PEOPLE ENGAGEMENT CSR INIATIVES WELLNESS GROWTH PLATFORM SUSTAINABLE SCIENCE LABORATORY
Slide 48: CSR Initiatives: Science Equipment Turnover
TEAM PEOPLE ENGAGEMENT CSR INIATIVES SCIENCE GROWTH PLATFORM LABORATORY SUSTAINABLE SCIENCE EQUIPMENT LABORATORY TURNOVER
Slide 49: CSR Initiatives: Teacher Training
TEAM PEOPLE ENGAGEMENT CSR INIATIVES TEACHER TRAINING SCIENCE GROWTH PLATFORM LABORATORY SUSTAINABLE EQUIPMENT TURNOVER
Slide 50: CSR Initiatives: Computer Laboratory
TEAM PEOPLE ENGAGEMENT CSR INIATIVES TEACHER TRAINING GROWTH PLATFORM SUSTAINABLE COMPUTER LABORATORY
Slide 51: CSR Initiatives: Brigada Eskwela
TEAM PEOPLE ENGAGEMENT CSR INIATIVES BRIGADA ESKWELA GROWTH PLATFORM SUSTAINABLE COMPUTER LABORATORY
Slide 52: Environmental Commitment: Green Initiative
ENVIRONMENTAL COMMITMENT PLANET 10% CAPACITY RENEWABLE TARGET GREEN GROWTH PLATFORM INITIATIVE ELECTRONIC ONLINE SUSTAINABLE BOARDING TACAR PASS
Slide 53: Environmental Commitment: Tree Planting
ENVIRONMENTAL COMMITMENT PLANET 10% CAPACITY RENEWABLE TARGET TREE PLANTING GREEN GROWTH PLATFORM INITIATIVE SUSTAINABLE
Slide 54: Thank You!
External Developments THANK YOU! Financial Highlights Growth Platform Performance People Planet
Slide 55: 2017 Annual Stockholders' Meeting
External Developments Financial Highlights Growth Platform Performance People Planet 2017 ANNUAL STOCKHOLDERS’ MEETING Cebu Grand Convention Center June 15, 2017