Ayala Corp. · PSE:AC
Ayala — FY2004 Earnings Presentation
19 slides from Ayala's earnings presentation, Feb 17, 2005
Slide 1: Year End 2004 Analysts' Briefing
Year End 2004 Analysts’ Briefing February 17, 2005
Slide 2: 2004 Financial Highlights
2004 Financial Highlights Consolidated Income Statement (Unaudited, in P millions) FY 2004 FY 2003 % Ch. Revenues Sales & services 30,638 28,783 6% Equity in net earnings, interest 11,994 7,865 52% rental & other investment income of w/c: Equity earnings in affiliates 6,680 5,502 21% Costs & expense
Slide 3: Earnings Snapshot
Earnings Snapshot Ayala Consolidated Net Income Contribution to Equity Earnings In million pesos FY04 7,100 AC Capital 22% Globe 41% 3,087 2,104 2,407 ALI 19% 2001 2002 2003 2004 BPI 18% è Net income at close to historic highs è AC Capital now accounts for 22% of equity earnings
Slide 4: FY 2004 Financial Highlights
FY 2004 Financial Highlights Consolidated Balance Sheet (Unaudited, in P millions) Dec 04 Dec 03 % change Cash & cash equivalents 34,935 17,914 95% of w/c Parent 24,430 10,520 132% Total debt 68,268 60,235 13% of w/c Parent 54,589 45,340 20% Stockholders' Equity 58,961 53,950 9% Net debt 33,333 42,3
Slide 5: Ayala – Total Debt (Parent level)
Ayala – Total Debt* (Parent level) With preferred shares Debt Maturity Profile In US$m (with preferred shares) Total Debt 1,084 In US$m Net Debt 933 334 864 706 734 664 631 646 239 229 157 125 2001 2002 2003 2004 2005 2006 2007 2008 2009 è Debt mix of 58% USD-42% peso as of YE04 from 73% USD-27% in
Slide 6: Dividends Received from Subsidiaries
Dividends Received from Subsidiaries Total Cash Dividends Received 6 In billion pesos 5.1 5 4.6 4 Globe 3.0 BPI 3 2.6 AC Capital ALI 2 2.7 1 0 2000 2001 2002 2003 2004
Slide 7: Ayala – 2004 Highlights
Ayala – 2004 Highlights è P7B fixed-rate bond offering, biggest issue for a domestic corporate name ever è Sale of 5% of the common shares in Globe Telecom resulting in P2.6B gain è Retired early this year US$200M 8.75% bond due 2005 è Increase in cash dividend from P0.06 per share to P0.08 per shar
Slide 8: Ayala Land
Ayala Land Year end 2004 highlights è Net income at P3B up 11%, revenues of P18B up 24% è Growth across all business lines: • 13% growth in rental revenues mainly from retail operations; • 32% increase in residential & land development revenues driven by core-mid and high-end residential condominium
Slide 9: Bank of the Phil. Islands
Bank of the Phil. Islands Year End 2004 highlights Net Interest Margin (%) 4.3% 4.3% è Net Income P6.7B, up 17% y-o-y due to higher revenues and effective cost management 3.9% 3.9% è Net interest income up 17% due to expansion in asset base and net interest margin 2001 2002 2003 2004 è Non-interest
Slide 10: Globe Telecom
Globe Telecom Year End 2004 highlights è Net Income up 9% at P11.3B on net service revenues of P52.7B, up 11% è Total wireless subscribers up 41% to 12.5M, net adds of 3.7M è EBITDA at P33B, up 19% with EBITDA margin at 63% from 59% previous year EBITDA Margin & Return on Ave. Equity Wireless Subscr
Slide 11: AC Capital Year End 2004 highlights
AC Capital Year End 2004 highlights Contribution to Equity Earnings 2004 Globe 2001 41% AC Capital Globe 3% 34% AC Capital ALI 22% BPI 19% BPI ALI 18% 28% 35% è AC Capital now accounts for 22% from only 3% in 2001
Slide 12: AC Capital: Integrated Microelectronics, Inc.
AC Capital Year End 2004 highlights Integrated Microelectronics, Inc. è Record net income of P1.2B, up 93% y-o-y è Revenues up 21% due to higher demand from key Japanese customers è Improved profitability as a result of increased volume, better margins on raw materials and efficiencies due to high c
Slide 13: AC Capital: Manila Water Co.
AC Capital Year End 2004 highlights Manila Water Co. è Historic high net income of P1.33B, up 16% versus previous year è Revenue growth of 11% to P4.2B driven by • 5% increase in billed volume • Record low NRW at 43.4% as of end December 2004 • 5% tariff hike è EBITDA of P2B up 12% from a year ago è
Slide 14: AC Capital: Ayala Automotive
AC Capital Year end 2004 highlights Ayala Automotive è Contributed net income of P183M despite persistent industry decline è Decline in sales of AUVs partly mitigated by higher demand for passenger car sales which was up 33% è Ayala dealerships maintained leadership and is the largest vehicle retail
Slide 15: AC Capital: Ayala International
AC Capital Year End 2004 highlights Ayala International è Recorded net income of P377M up 56% versus previous year • Includes gain on sale of Grosvenor Place in Hong Kong and apartment units in US, Tokyo and Kuala Lumpur • Lower operating expenses due to streamlining of headcount è Tapping opportuni
Slide 16: In Summary
In Summary è Core businesses continue to maintain strong earnings performance and financial position despite a more competitive business environment è AC Capital has become a strong contributor to earnings and cash è Debt reduction efforts on-going providing more flexibility to take advantage of opp
Slide 17: New Accounting Standards with Significant Impact to Financial Statements
New Accounting Standards with Significant Impact to Financial Statements New Accounting Definition Impact to Financial Statement Standard PAS 21, Effects Forex differentials will no P60M share from Ayala Hotels & of Changes in longer be capitalized P845M in net cumulative forex Foreign losses of Glo
Slide 18: New Accounting Standards with Significant Impact to Financial Statements
New Accounting Standards with Significant Impact to Financial Statements New Accounting Definition Impact to Financial Standard Statement PFRS 3, Business Outstanding goodwill Group’s share in the Combination balances no longer unamortized negative amortized but will be goodwill relating to subjecte
Slide 19: Year End 2004 Analysts' Briefing
Year End 2004 Analysts’ Briefing February 17, 2005