Ayala Corp. · PSE:AC
Ayala — Q1 2011 Earnings Presentation
31 slides from Ayala's earnings presentation, May 13, 2011
Slide 1: Analysts' Briefing First Quarter 2011
ANALYSTS’ BRIEFING FIRST QUARTER 2011 13 MAY 2011
Slide 2: Key Highlights
Key Highlights • Earnings growth sustained in 1Q11 with net income up 16% year- on-year driven by key business units: - ALI: Strong revenue and earnings growth due to robust residential demand and improvement in leasing operations - BPI: Solid business growth with higher interest income, net interes
Slide 3: Consolidated Net Income
Consolidated Net Income (in million pesos) • 1Q11 net income up 16% vs 1Q10 mainly from 16% growth in equity earnings • Earnings include P226M net gain mainly as a result of Arch/TRG transaction Note: 4Q10 included revaluation gains from LiveIt and Manila Water
Slide 4: Equity In Net Earnings
Equity In Net Earnings (in million pesos) 3,130 1Q10 1Q11 2,684 958 854 918 898 899 640 336 315 258 107 36 67 -7 -12 1Q10 1Q11 -279 -266 ALI BPI Globe MWC Auto IMI LiveIt AG • Equity earnings up 16% in 1Q11 vs Holdings 1Q10 • ALI, BPI, Globe & MWC are main • Equity earnings from ALI up 33%; BPI up d
Slide 5: Recent Developments
Recent Developments Acquired 50% ownership in Northwind Power Corp. which operates 33-MW wind farm in Ilocos Norte Formed joint venture with Sta. Clara Power Corporation for the development of run-of- the-river hydroelectric power projects across the Philippines Successfully issued 6.8% P10-bi
Slide 6: Cash Position and Debt Profile
Cash Position and Debt Profile Debt Maturities in billion pesos As of 3.31.11 As of 12.30.10 (in million pesos) Gross Debt* 42.0 42.3 14,050 12,900 Cash 27.9 29.1 Net Debt 14.1 13.2 7,229 6,565 5,953 Net Debt to Equity 0.13:1 0.12:1 5,002 Debt Mix (%) Peso 84 84 1,002 1,484 Dollar 16 16 Interest Rat
Slide 7: Business Unit Review
BUSINESS UNIT REVIEW
Slide 8: Strong earnings growth sustained
Strong earnings growth sustained Consolidated Net Income (in million pesos) Quarterly earnings momentum sustained with 1Q11 net income up 36% vs 1Q10 and 7% higher vs 4Q10
Slide 9: Revenue growth driven by property development and commercial leasing
Revenue growth driven by property development and commercial leasing Revenue Breakdown 1Q11 1Q10 % Change (in million pesos) Consolidated revenues of Property Development 6,342 5,113 + 24% P10.6B, up 15% YoY Residential revenues Residential Units 5,782 4,893 + 18% Comm’l/Ind’l Lots 560 220 + 155
Slide 10: Residential demand remains robust
Residential demand remains robust Take-up value 10,127 9,728 Php millions 9,025 • New record P10.1B in take-up 7,932 exceeded even 1Q10 (which had 6,453 Park Terraces and Santierra surge) • Take-up strong across all brands; combined take-up of Alveo and Avida nearly doubled Booked sales value 6,664
Slide 11: Revenue growth driven by property development and commercial leasing
Revenue growth driven by property development and commercial leasing Revenue Breakdown 1Q11 1Q10 % Change (in million pesos) Consolidated revenues of Property Development 6,342 5,113 + 24% P10.6B, up 15% YoY Residential revenues up Residential Units 5,782 4,893 + 18% Comm’l/Ind’l Lots 560 220 +
Slide 12: Continued improvement in commercial leasing portfolio
Continued improvement in commercial leasing portfolio OFFICE LEASING Occupied BPO office GLA ‘000 sqms GLA • Occupied BPO GLA reached 215K sqm, up 27% YoY and up 16% QoQ 250 215 191 • Occupancy at 80% (85% leased out) from 200 141 66% in 1Q10 150 • BPO lease rates per location increasing but 100 72
Slide 13: Revenue growth driven by property development and commercial leasing
Revenue growth driven by property development and commercial leasing Revenue Breakdown 1Q11 1Q10 % Change (in million pesos) Consolidated revenues of Property Development 6,342 5,113 + 24% P10.6B, up 15% YoY Residential revenues up Residential Units 5,782 4,893 + 18% Comm’l/Ind’l Lots 560 220 +
Slide 14: Continued expansion in margins across businesses
Continued expansion in margins across businesses • Consolidated margin at 15% from 14% 1Q11 1Q10 Residential (Gross Profit) • Steady margins for NUVALI projects • Higher margins for NUVALI Horizontal 44% 44% commercial lots Vertical 33% 32% • Improving mall occupancy and lease Shopping Centers rates
Slide 15: New projects coming on stream in retail and hotels & resorts portfolio
New projects coming on stream in retail and hotels & resorts portfolio Abreeza Mall (Davao) • Opening: May 12, 2011 • 53,000 sqm retail GLA • Ave lease rate of P900/sqm/mo • 92% leased out • Target: 60% occupied upon opening Kukun Cagayan de Oro • Groundbreaking: Feb 14, 2011 • 150 rooms • Target co
Slide 16: Secured growth platforms
Secured growth platforms UP-IS property • 7.4 hectares with a 25-year lease • University Town concept with mixed-use retail and office development (Retail: 63,000 sqm GLA; Office: 8,000 sqm GLA) • Start of construction: 2011 • Target completion: 4Q 2013 West Makati mixed-use development • 21 hectare
Slide 17: Solid Business Growth Continued in 1Q11
Solid Business Growth Continued in 1Q11 1Q11 net income of P2.86B up 4% year-on-year and up 29% quarter- on-quarter Revenues up 5% to P9.4B +29% • Net interest income up 15% to P6.3B due to 12% increase in average asset base • Net interest margin improved by 8 basis points • Non interest income
Slide 18: Bank of the Philippine Islands
Bank of the Philippine Islands YoY Growth As of March 31, 2011 (in Php B) Total Resources +9% 761 Deposits + 8% 604 Assets Held In Trust +40% 626 Net Loans + 13% 360 • Total resources grew by 9% as deposits expanded by 8% • Completed acquisition of trust and investment management business of ING Man
Slide 19: Bank of the Philippine Islands
Bank of the Philippine Islands NPL declined to 2.4% and is March March Dec. better than industry’s 2.9% Selected Ratios 2011 2010 2010 NPL Ratio Operating expenses increased by (Net 30-day) 2.4% 3.0% 2.0% 9% due to manpower, 13 premises Cost –to-Income Ratio 55.9% 54.0% 53.8% and software, regul
Slide 20: Turnaround in 4Q10 sustained in 1Q11 with quarterly revenues at an all-time high
Turnaround in 4Q10 sustained in 1Q11 with quarterly revenues at an all-time high QUARTERLY CONSOLIDATED REVENUES New In Php Bn all-time high • 1Q11 revenues at all- time high and was up 8% year-on-year • Growth driven by continued uptick in mobile performance and sustained double-digit growth of bro
Slide 21: Mobile business posted strong results while broadband business continued to grow
Mobile business posted strong results while broadband business continued to grow Consolidated Net Income and Revenue Breakdown (in million pesos) 12M 10 • Mobile revenues up 4% with 10% 1Q11 vs 2010 vs 1Q11 1Q10 12M09 1Q10 growth in postpaid and 2% increase Total Mobile 49,977 (6%) 13,060 12,530 4%
Slide 22: Sustained growth in mobile and broadband subscribers
Sustained growth in mobile and broadband subscribers Mobile SIM Subscribers Broadband Subscribers +3% (in ‘000) (in Millions) Wired Wireless(Fixed & Nomadic) 1,074 40% 1,180 715 841 819 915 499 607 216 255 234 265 2009 2010 1Q10 1Q11 • Mobile SIM base of 27.3M in 1Q11 up 14% • Broadband subscribers
Slide 23: Subscriber growth driven by new and relevant services
Subscriber growth driven by new and relevant services Postpaid All-New My SuperPlan – TM Customized postpaid plans; subscribers can choose between an All-Unlimited Plan and an All-Consumable Plan My Super TXT All – First- ever unlimited, all-network SMS offer for mobile postpaid subscribers for
Slide 24: Financial and Operating Results
Financial and Operating Results (unaudited - in million pesos) 1Q11 1Q10 % Change Revenue 2,671 2,539 + 5% Operating Expenses 745 714 + 4% EBITDA 1,926 1,825 + 6% Net Income 816 839 -3% Core Income 1,188 1,042 + 14% Billed Volume 98.9 98.7 + 0.2% (in million cubic meters) Household Connections (‘000
Slide 25: Automotive Group
Automotive Group Net Income Ayala Automotive Unit Car Sales (in million pesos) 12,247 11,394 11,440 9,664 10,324 -21% 98 63% 36 3,160 2,487 2006 2007 2008 2009 2010 1Q10 1Q11 1Q10 1Q11 Revenues of P2.5B down 20% vs Ayala’s Honda dealerships account 1Q10 due to lower vehicle sales for 46% share o
Slide 26: Integrated Microelectronics, Inc.
Integrated Microelectronics, Inc. Revenues Net Income (in million dollars) (in million dollars) 123 +35% 91 3.2 0.4 1Q10 1Q11 1Q10 1Q11 Revenues up 35% vs last year; excluding contribution from newly acquired PSI, a 13% improvement Sales mix is 82% turnkey and 18% consignment Net income lower
Slide 27: Combined BPO Performance
Combined BPO Performance Revenues (In US$ Millions) +9% 1Q2011 versus 1Q2010 • Combined Revenues increased by 9% primarily due to growth of Stream and Integreon client volumes EBITDA • Combined EBITDA increased by (In US$ Millions) 45% as a result of greater scale +45% and cost efficiencies
Slide 28: LiveIt Consolidated Net Income 1Q2011 Performance
LiveIt Consolidated Net Income 1Q2011 Performance 1Q2011 versus 1Q2010 • Achieved Operating Net Income of $0.6M in 1Q11 versus an Operating Net Loss of $3.1M due primarily to Stream’s and Integreon’s operational improvements • Higher non-operating expenses of $4.1M versus last year’s $1.5M primarily
Slide 29: Recent Developments
Recent Developments • HRMall, provider of outsourced HR services in Manila, acquired IQ Backoffice, LLC, a Los Angeles-based finance and accounting BPO provider on April 29, 2011. • Combined companies valued at $15 Million creates a full service HR, Finance and Accounting BPO provider targeting mid-
Slide 30: AG Holdings
AG Holdings NET ASSET Value Value As of 3-31-11 As of 12-31-10 VALUE (in USD million) Asia 115.8 98.1 USA 32.5 30.7 Net Other (37.9) (37.9) Assets/ (Liabilities) TOTAL 110.4 90.9 Net income of about $6M (P258M) in 1Q11 vs. net loss of $258K (P12M) in 1Q10 30
Slide 31: Analysts' Briefing First Quarter 2011
ANALYSTS’ BRIEFING FIRST QUARTER 2011 13 MAY 2011