Ayala Corp. · PSE:AC
Ayala — Shareholder Meeting (April 2012)
42 slides from Ayala's shareholder meeting presentation, Apr 20, 2012
Slide 1: We are well positioned to participate in the country's infrastructure needs
WE ARE WELL POSITIONED _ WS TO PARTICIPATE IN THE DEVELOPMENT OF THE COUNTRY’S INFRASTRUCTURE NEEDS. A Satie i ay y+ » y/ ¥ ,
Slide 2: Annual Stockholders' Meeting, April 20, 2012
Annual Stockholders' Meeting April 20, 2012
Slide 3: Strong core earnings results in 2011
Strong core earnings results in 2011 Solid performance of key business units; improvements in international real estate & BPO businesses Reported net income down 16% due to higher extraordinary gains in 2010 vs 2011 Gains-adjusted earnings up 16% CONSOLIDATED NET INCOME (in million pesos) 11,1
Slide 4: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units KEY GROWTH IMPERATIVES: à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international businesses à Inve
Slide 5: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units KEY GROWTH IMPERATIVES: à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international businesses à Inve
Slide 6: Ayala Land Real Estate
oe WA AyalaLand ( a) REALESTATE
Slide 7: Record-high capex in 2011; 50% higher year-on-year
Record-high capex in 2011; 50% higher year-on-year Capital 2011 Capex Expenditures Breakdown (in billion pesos) 29.9 20.0 16.7 2009 2010 2011
Slide 8: Record residential unit launches
Record residential unit launches Residential unit launches exceeded initial target of 20.2K and was double 2010 level RESIDENTIAL UNIT LAUNCHES 20.6K 20.6K Amaia/ BellaVita 10.2K 10.2K AVIDA 2.2K 2.2K Alveo ALP 2009 2010 2009 2011 2010 2011 8
Slide 9: Net income at a record high; double-digit revenue growth across all business lines
Net Income at a record high; double-digit growth in revenues across all business lines Revenues by Business Segment Consolidated Net (in million pesos) Income (in million pesos) Business % FY2011 FY2010 7,140 Segments Change 5,458 Property 25,260 19,849 + 27% Development Commercial 7,464 6,452 + 16%
Slide 10: Expanding into new markets and customer segments – lower income segments
Expanding into new markets and customer segments – reaching out to lower income segments Ayala Land’s maiden entry into the socialized housing segment
Slide 11: Expanding mall and office GLA in new areas across the country
Expanding mall and office GLA in new areas across the country Occupied Gross Leasable Area (‘000 sqms) Shopping Center Office 1,268 1,074 1,144 234 141 191 Iloilo Ayala Land TechnoHub 933 953 1,034 Abreeza Mall in Davao City 2009 2010 2011 141,000 sqms. of new GLA for retail 46,000 sqms. of new
Slide 12: Building hotels and resorts portfolio
Building hotels and resorts portfolio Increased capacity in NUVALI Pangulasian Island Resort Two additional sites for Kukun Hotel
Slide 13: On track with 5-10-15 Plan
On track with 5-10-15 Plan NET INCOME (Pbn) 10.0 Actual 5-10-15 Plan RETURN ON EQUITY Actual 5-10-15 Plan
Slide 14: Financial Services (BPI)
Slide 15: Intensifying presence in middle market and consumer segments
Intensifying presence in middle market and consumer segments 5 million customer count 20% growth in loans to micro, small and medium enterprises
Slide 16: Expanding into new market and customer segments – the unbanked sector
Expanding into new market and customer segments – reaching out to the unbanked sector 47.5% earn < 2/day 80% have non-bank financial provider 50% borrow from informal sources 5% 95% D1, D2, E ABC Millions of adults Economic class
Slide 17: Community Banking delivers basic banking services to a broader segment
Community Banking delivers basic banking services to a broader segment of the population BANKO REGIONAL BRANCH DRUG STORE PAWNSHOP MFI/RURAL BANK SARI-SARI STORE MONEY CHANGER
Slide 18: Net income reached an all-time high on robust loan growth
Net income reached an all-time high on robust loan growth and better interest margins 20% increase in net loans on diversified lending • Middle market up by 24% Consolidated Net • Top tier corporations Income increased by 21% (in million pesos) • SMEs rose by 20%; 12,822 Consumer up 12% 11,312 13%
Slide 19: Best SME Bank in 2011
5™ ANNUAL BEST FINANCIAL INSTITUTIONS AWARDS 2011 J BABANA © sanguok Bank ss KIMENG BNI opine Equity Pa Viet Ca ——
Slide 20: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units KEY GROWTH IMPERATIVES: à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international businesses à Inve
Slide 21: Water and Waste Water Services
ER AND WASTE WATER SERVICES
Slide 22: Diversifying geographies – growth platforms outside Manila's east zone
Diversifying geographies – establishing growth platforms outside Manila's east zone Boracay Water and Laguna Water contributed positively to group revenues and income
Slide 23: Diversifying geographies – growth platforms outside Manila's east zone
Diversifying geographies – establishing growth platforms outside Manila's east zone
Slide 24: Developing New Water Sources
Developing New Water Sources • Developing Laguna Lake as an alternative water source • Won bulk water supply project in Cebu
Slide 25: Manila Water posted record net income in 2011
Manila Water posted record net income in 2011; new businesses contributing positively to earnings Consolidated Net Income P9.2B in capex (in million pesos) deployed in 2011 4,266 1% billed volume 3,978 7% growth NRW of 11.2% Growth in household connections 2010 2011
Slide 26: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units KEY GROWTH IMPERATIVES: à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international businesses à Inve
Slide 27: Telecommunications
Slide 28: Globe exhibited a remarkable turnaround and outperformed the industry
Globe exhibited a remarkable turnaround and outperformed the industry Consolidated Net Income (in million pesos) 9,745 9,832 Core net income up 11% 1% Service revenues at record high 2010 2011
Slide 29: US$790M Network and IT Transformation over the next five years
US$790M Network and IT Transformation over the next five years Coverage Expansion Capacity and facility upgrades New, more efficient technology platforms Network Optimization Modernized, scalable and future-proof network
Slide 30: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units KEY GROWTH IMPERATIVES: à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international businesses à Inve
Slide 31: AG Holdings Real Estate International
ERE ( fA XA \ ee” / Xana \ i AR MUD STN) ZN AG Holdings REAL ESTATE INTERNATIONAL
Slide 32: Earnings turnaround in 2011
Earnings turnaround in 2011 Net Income (in million US$) Improvement driven by: – Valuation gains from Asian portfolio – Lower losses in the US compared to prior year.
Slide 33: Business Process Outsourcing
Slide 34: Significant improvement in 2011
Significant improvement in 2011 Share of Revenues Share of EBITDA Net Income* $318 $274 63% 16% YoY YoY $14M growth improvement growth $15 $25 $(32) $(18) 2010 2011 2010 2011 2010 2011 * Excluding 2010 Non-Cash Net Revaluation • Revenues up • EBITDA up 63% • US$14M improve- 16% due to due to greater
Slide 35: Electronics
Slide 36: Achieving profitability amidst global challenges
Achieving profitability amidst global challenges Revenues grew by Consolidated 40% Net Income Recent acquisitions (in million US$) contributed to revenue 4.7 expansion 3.3 Higher labor and materials cost impacted margins and 31% net income 2010 2011
Slide 37: Growth in equity earnings driven by core businesses
Growth in equity earnings driven by core businesses and improvement in international businesses Equity In Net Breakdown of Earnings Equity Earnings as of 31 Dec 2011 (in million pesos) 12,297 9,521 Globe MWC Others 33% 23% -3% 13% BPI ALI 33% 28% 2010 2011 Total: P 12.3 B
Slide 38: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units K E Y G RO W T H I M P E R AT I V E S : à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international b
Slide 39: Establishing platforms for long-term growth: Power
Establishing platforms for long-term growth: POWER PhilNewHydro • 50-50 Joint Venture Established partnership with Trans-Asia Oil & Development Co. to develop run-of-the- • Build and operate 135- river hydro projects MW CFB Thermal Plant in Calaca, Batangas
Slide 40: Establishing platforms for long-term growth: Transportation Infrastructure
Establishing platforms for long-term growth: TRANSPORTATION INFRASTRUCTURE
Slide 41: Ayala pursued an aggressive growth strategy across all business units
Ayala pursued an aggressive growth strategy across all business units K E Y G RO W T H I M P E R AT I V E S : à Aggressive expansion into new markets and customer segments à Diversification of geographic footprint à Strengthening presence in traditional markets à Profitable growth of international b
Slide 42: Annual Stockholders' Meeting
Annual Stockholders’ Meeting Annual Stockholders' Meeting April 20, 2012 April 20, 2012