Ayala Corp. · PSE:AC
Ayala — 9M 2012 Earnings Presentation
24 slides from Ayala's earnings presentation, Nov 13, 2012
Slide 1: Analysts' Briefing YTD September 2012
ANALYSTS’ BRIEFING YTD SEPTEMBER 2012 13 November 2012
Slide 2: Key Highlights
KEY HIGHLIGHTS Earnings momentum sustained with 9M12 net income up 19%; core net income up 31% Strong performance of key business units with equity earnings up 20% year-on-year Significant improvement in electronics and BPO businesses 2
Slide 3: 3Q12 Highlights
3Q12 HIGHLIGHTS Consolidated Net Income Equity in Net Earnings (in million Pesos) (in million Pesos) 10% 2,592 2,351 13% 3,450 3,049 3Q11 3Q12 • 3Q12 core net income of nearly P3B up 25% y-o-y Note: AC Core Net Income excludes the impact of Globe’s 3Q11 3Q12 accelerated depreciation arising from its
Slide 4: 9M12 Highlights
9M12 HIGHLIGHTS Consolidated Net Income Equity in Net Earnings (in million Pesos) (in million Pesos) 19% 8,670 7,286 21% 11,115 9,222 9M11 9M12 9M11 9M12 • 9M12 core net income of P9.27B up 31% 4
Slide 5: Equity in Net Earnings
Equity in Net Earnings (in million Pesos) 4,433 9M11 242 3,413 9M12 178 3,232 76 126 41 -40 2,685 -9 2,425 2,100 Auto IMI LiveIt AG Others 1,559 Holdings -108 1,234 9M11 9M12 -545 ALI BPI Globe MWC -704 Combined equity earnings Improvement in equity from core businesses ALI, BPI, earnings from A
Slide 6: Business Unit Review
BUSINESS UNIT REVIEW 6
Slide 7: Trajectory sustained by robust growth of all business segments
Trajectory sustained by robust growth of all business segments Net Income Residential Sales Take-Up (in million Pesos) (in billion Pesos) +27% 24% 6,617 5,228 1,847 2,297 3Q11 3Q12 9M11 9M12 • Revenues up 20% in 9M12 due to: • Record sales continue: o 27% growth in Property Development o Ave. monthl
Slide 8: Trajectory sustained by robust growth of all business segments
Trajectory sustained by robust growth of all business segments Occupied Mall GLA (‘000 sqms) • New malls boost mall performance 1,101 • Occupied GLA up 10% 1,048 1,081 1,042 y-o-y • Ave. rent up 5% 4Q11 1Q12 2Q12 3Q12 • Occupancy rate of 96% Harbor Point (Subic) Occupied BPO Office GLA • Occupied BP
Slide 9: Solid growth of core banking business boosted by trading gains
Solid growth of core banking business boosted by trading gains Net Income (in million Pesos) 13,210 9,634 • Revenues up 18% due to: +9% • 8% growth in net interest 3,435 3,761 +37% income • 34% increase in non- 3Q11 3Q12 9M11 9M12 interest income In Billion Php Sep 2012 YoY Growth • NIMs remained st
Slide 10: Growth momentum continues
Growth momentum continues Core Net Income 9M12 service revenues up 6% to (in million Pesos) P61.3B, a new record high 8,772 • Mobile revenues up 6% to 8,176 P49.9B with strong postpaid growth (+22%). +6% +7% 2,928 3,104 • Broadband revenues up 14% with expansion in subscriber base 2Q12 3Q12 9M11 9
Slide 11: Mobile and broadband subscribers continued to grow
Mobile and broadband subscribers continued to grow Subscribers by Brand 9M12 YoY Mobile subscribers rose 10% (in Thousand SIMs) driven by continuous growth Globe Postpaid 1,663 22% in both postpaid and prepaid subscribers Globe Prepaid 16,143 7% TM 14,249 12% Cumulative Broadband Totals 32,055
Slide 12: Strong billed volume growth and contribution from new businesses
Strong billed volume growth and contribution from new businesses • Revenues of P10.9B up 22% yoy due Net Income to higher tariff and strong billed (in million Pesos) 3,936 volume in the East Zone & new 3,114 businesses +1.3% 1,113 1,306 +26% % 9M12 9M11 Change 3Q11 3Q12 9M11 9M12 TOTAL BILLED 427.4
Slide 13: Significant improvement in earnings with better vehicle sales mix
Significant improvement in earnings with better vehicle sales mix Net Income (in million Pesos) Revenues up 4% due to better sales mix 181 +138% Ayala holds 46% share of Honda 76 network sales and 32% of Isuzu nationwide sales 9M11 9M12 • Expanding portfolio of brands with recent appointment for
Slide 14: Earnings improvement from core customers and acquisitions
Earnings improvement from core customers and Net Income acquisitions 9M12 revenues grew by18% to (in million US$) US$495.7M due to acquisitions and +209% 5.0 expansion of key customers 1.6 EBITDA improved by 25% 9M11 9M12 Net income growth brought about by expansion in Europe, Mexico, better R
Slide 15: Continued Growth and Improvement in Profitability
Continued Growth and Improvement in Profitability SHARE OF REVENUES SHARE OF EBITDA (In USD Millions) (In USD Millions) YTD SEPTEMBER YTD SEPTEMBER • Share of Revenues of $251.3, • Share of EBITDA of $21.6M up up 8% year-on-year. 41% due primarily to improved profitability at Stream, Integreon and A
Slide 16: Continued Growth and Improvement in Profitability
Continued Growth and Improvement in Profitability OPERATING NET INCOME/(LOSS)* REPORTED NET LOSS (In USD Millions) (In USD Millions) YTD SEPTEMBER YTD SEPTEMBER • Operating Net Income improved by • Net Loss of $13.2M, better by $5.8M $6.5M to $5.9M due to EBITDA growth • Net Loss is after $19.1M in
Slide 17: Recent Developments
RECENT DEVELOPMENTS
Slide 18: Recent Developments: Increased Stake in BPI
Recent Developments Increased Stake in BPI from 33.6% to 44.0% • Acquired part of common shares held by DBS equivalent to 10.4% stake for P26B • Acquisition is value and earnings accretive given BPI’s growth trajectory • DBS retains 9.9% effective ownership in BPI • Acquisition has no impact on ot
Slide 19: Power Recent Developments
POWER Recent Developments Over 300MW in gross capacity under development Project Capacity Status Phase 1: Construction on schedule for 2014 operation South Luzon Thermal 135MW Phase 2: Potential expansion for another Energy Corp. (SLTEC) 135MW; working towards financial close in 2013 Phase 1: In a
Slide 20: Infra Recent Developments
INFRA Recent Developments Projects Status Daang Hari-SLEX Awaiting Certification of Detailed Connector Road: Engineering Design ; on-going discussion 4km-4-lane tollroad with DPWH ROW process and construction in Segment 1 commenced NAIA Expressway: Pre-qualified for bidding; working on bid 7km 4-lan
Slide 21: Recent Developments: P10B Corporate Bond Offering
Recent Developments P10B 7-year Corporate Bond Offering • Priced at 5.45% p.a. payable quarterly • Due 2019; call option starting on the 4th year • Rated “PRS Aaa”, the highest credit rating, by PhilRatings • Proceeds for funding of new initiatives in power and infrastructure and working capital 2
Slide 22: Parent Debt Profile
Parent Debt Profile (as of September 30, 2012) As of As of in billion pesos 09.30.12 12.31.11 Bulk of debt (88%) is Gross Debt* 48.2 43.4 in pesos with fixed Cash 29.4 18.0 rates (75%) Net Debt 19.5 25.4 Blended cost of debt at 5.6% Net Debt to Equity 0.16:1 0.24:1 Ratio *Excludes preferreds DEB
Slide 23: Summary
Summary On track to hit year-end target given: Sustained strong momentum of core businesses Continued improvement of international businesses Robust pipeline of new business development in key sectors Strong funding capacity and partnerships provide flexibility to scale up investments 23
Slide 24: Analysts' Briefing YTD September 2012
ANALYSTS’ BRIEFING YTD SEPTEMBER 2012 13 November 2012