Ayala Corp. · PSE:AC
Ayala — FY2011 Earnings Presentation
29 slides from Ayala's earnings presentation, Mar 9, 2012
Slide 1: Analysts Briefing Yearend 2011 Results
x Ayala Analysts Briefing Yearend 2011 Results 09 March 2012
Slide 2: Key Highlights & Recent Developments
Key Highlights & Recent Developments Full year 2011 net income reached P9.4B, 16% lower than in 2010. Excluding non recurring gains last year and this year, net earnings was up 16%. Robust pipeline of new business initiatives with committed investments of P7B in 2011 Financial position remains
Slide 3: Consolidated Net Income
Consolidated Net Income (in million pesos) 11,161 • Core earnings up 16% -16% 9,395 vs. previous year 3,585 611 Non recurring • ROE at 9% +16% 7,577 8,784 Recurring 2010 2011 3
Slide 4: Equity In Net Earnings
Equity In Net Earnings (in million pesos) 12,297 9,251 +33% • Equity earnings up 33% in 2011 • Combined equity earnings from core businesses ALI, 2010 2011 BPI, Globe, MWC rose by 13% 3,704 3,837 4,302 • International businesses 2,848 2,975 2,976 1,721 2010 2011 and other units posted 1,537 substant
Slide 5: Equity In Net Earnings
Equity In Net Earnings (in million pesos) Breakdown of Equity Earnings Gross Asset Value as of 31 Dec 2011 as of 31 Dec 2011 MWC BPO 8% IMI Globe Globe 3% MWC 2% 24% 14% Others 17% Others -3% 5% BPI BPI 25% ALI 35% ALI 30% 40% Total: P 12.3 B Total: P 263.2 B • Net Asset Value as of end 2011: P 237.
Slide 6: Flexible Funding Position for New Investments
Flexible Funding Position for New Investments in billion pesos Gross Debt* 43.4 42.3 Cash 18.0 29.1 Net Debt 25.4 13.2 Net Debt to Equity Ratio 0.24:1 0.12:1 *Excludes preferreds Highly Flexible Funding Position Allows For: • Investments in power and transport infrastructure projects • Buy-back prog
Slide 7: 2011 Fund Raising Activities
2011 Fund Raising Activities Raised 10 year P10B Multiple Put Bonds in 2Q11 priced at 6.80% Prepaid higher costing obligations totaling P13.8B Early redemption of P5.8B Preferred B shares with dividend rate of 9.4578% Prepaid P6B fixed rate bond with 6.825% coupon and P2B fixed rate corporat
Slide 8: Debt Profile
Debt Profile (Parent Company) Debt Maturities • Bulk of debt (85%) (in million pesos) in pesos and fixed rate (70%) taking 8,028 8,000 advantage of low 5,878 6,509 5,002 4,508 4,277 interest rates 1,485 • Blended cost of debt remains low at 5.7% 2012 2013* 2014 2015** 2016*** 2017**** 2018 2019*****
Slide 9: Business Unit Review
BUSINESS UNIT REVIEW 9
Slide 10: Record High Performance and On Track with Expansion Plans
Record High Performance and On Track with Expansion Plans Revenues and Net Income (in million pesos) Residential revenues up 29% 44,206 on sustained revenue growth 37,814 33,749 30,455 across all brands 25,707 Leasing revenues up 16% on 4,386 4,812 4,039 5,458 7,140 higher occupied GLA and highe
Slide 11: Record High in Residential Sales and Steady Improvement in Leasing Portfolio
Record High in Residential Sales and Steady Improvement in leasing Portfolio (in million pesos) (in million pesos) TAKE-UP VALUE BOOKED SALES VALUE 2011 51,724 2011 33,331 +56% +39% 2010 33,138 23,999 2010 - 15,000 30,000 45,000 - 10,000 20,000 30,000 ALP Alveo Avida Amaia Strong growth across all
Slide 12: 2012: Sustaining ALI's High Growth Trajectory
2012: Sustaining ALI’s High Growth Trajectory RESIDENTIAL FY12 target residential unit launches at 24,800 with 50% of units in the economic and socialized housing segments SHOPPING Continue suburban and provincial expansion CENTERS with planned launches of 240K GLA in 2012 OFFICE New office projects
Slide 13: Solid Business Growth
Solid Business Growth Total Revenues up 7% Revenues Net Income • Net interest income up 10% (in million pesos) 41,755 to P26B due to 6% increase in 38,997 average asset base 32,554 34,395 29,784 • NIMs ended higher by 13 basis pts. • Non interest income level was 10,012 8,516 11,312 12,822 sustain
Slide 14: Bank of the Philippine Islands
Bank of the Philippine Islands YoY As of Dec. Selected Ratios Dec. 2011 Dec. 2010 Growth 31, 2011 (in Php B) NPL Ratio (Net 30- 1.9% 2.1% day) Total Resources -4% 843 Cost –to-Income Deposits -5% 681 56.2% 53.8% Ratio Assets Held In +38% 670 ROE 15.2% 15.6% Trust Basel II CAR 14.9% 15.5% Net Loans +
Slide 15: Successful Turnaround in a Competitive Environment
Successful Turnaround in a Competitive Environment Revenues and Net Income Quarterly Consolidated Revenues In Php Mn In Php Mn 17,824 67,811 16,981 16,214 16,452 16,554 62,029 9,745 9,075 9,832 10,030 15,084 Revenues Net Core NI Revenues Net Core NI Income Income 2010 2011 3Q10 4Q10 1Q11 2Q11 3Q11 4
Slide 16: 2012 Outlook
2012 Outlook Revenues to grow low to mid single digit from 2011 level of P67.8B Higher operating expenses due to network transformation initiatives and higher depreciation One-time transition costs of US$15Mn related to transformation initiatives Total dep’n of about Php25-26Bn , inclusive o
Slide 17: Financial and Operating Results
Financial and Operating Results (unaudited - in million pesos) 2011 2010 % Change Revenue 12,004 11,013 9.0% Operating Expenses 3,599 3,530 1.9% EBITDA 8,405 7,483 12.3% Net Income 4,266 3,979 7.2% (attributable to MWC equity holders) Billed Volume (in mcm) 420 416 0.9% (includes LWC, BIWC, CWC) Ser
Slide 18: Expansion Projects
Expansion Projects Maximize Continued investment in East Zone Maximize Growth Within • Significant capex to expand water and wastewater coverage; Growth The East Within Zone ensure network reliability and increase water supply capacity. The East Zone New businesses Develop Develop • Acquisition of C
Slide 19: Integrated Microelectronics, Inc.
Integrated Microelectronics, Inc. Revenues Net Income (in million dollars) 31% (in million dollars) 40% 575 4.7 412 3.3 2010 2011 2010 2011 Revenues up 40% vs last year due to sustained strong performance of China operations mainly driven by new turnkey models from major customers and incremental
Slide 20: Automotive Group
Automotive Group Net Income Ayala Automotive Unit Car Sales (in million pesos) 11,394 11,440 295 68% 8,485 300 200 95 100 0 2009 2010 2011 2010 2011 Revenues down 23% to P 8.8b due Despite a substantial decline in unit mainly to supply shortages caused by car sales, Ayala dealerships the two nat
Slide 21: Share of Revenues and EBITDA
Share of Revenues (In USD Millions) • Revenues of $318M, up 16% FULL YEAR FOURTH QUARTER due to growth across all 4 $318 $274 14% YoY investees growth 16% $74 $84 • Record Q4 Revenues of YoY $84M, up 14% growth 2010 2011 Q4 2010 Q4 2011 • Full year EBITDA of $25M, up 63% due to greater scale Share o
Slide 22: Net Income
Net Income* • Net Loss of $18M, better by (In USD Millions) $14M, excluding 2010 non-cash FULL YEAR FOURTH QUARTER revaluation gain of $37M $1 • Net Loss is after $22M in Non- Operating Items related to acquisitions such as: $12M $(11) improvement ⁻ Non-cash amortization of $(18) intangibles $14M ⁻
Slide 23: AG Holdings
AG Holdings NET ASSET VALUE Value (in USD million) as of 12-31-11 Asia 125.5 USA 29.5 Net Other Assets/ (Liabilities) 1.0 TOTAL 156.0 2011 net income at $4.6M, turning around last year’s $50.0M loss driven by earnings of US$7.0M from Asian portfolio due to valuation gains and significantly lower l
Slide 24: Progress in development work on various power projects
Progress in development work on various power projects South Luzon • 1x135 MW CFB NorthWind • Operating 33MW Thermal plant under Power windfarm with 20 Energy Corp. construction Corp. turbines 50% 50% - Target • Expansion commercial potential of over operations by 60 MW 2014 • 80+ MW of • JV with Di
Slide 25: Ayala wins first PPP project
Ayala wins first PPP project under the Aquino Administration • 4-kilometer road that Daang Hari – SLEX Link Road Project will link Daang Hari road in Cavite to the South Luzon Expressway (SLEX) • 30-year concession period for construction, operation and maintenance • Signing of concession agreement
Slide 26: 2012 PPP Projects
2012 PPP Projects Ayala Target Sectors: Toll Roads, Mass Transit, Airports GOVERNMENT PPP LIST 14. Operation & Maintenance of the Laguindingan Airport 1. Automatic Fare Collection System 15. Operation & Maintenance of the 2. Balara Water Hub Puerto Princesa Airport 3. CALA Expressway (Cavite and Lag
Slide 27: AC 2012 Outlook
AC 2012 Outlook Capital Expenditure (PhP Bn) 91.2 +38% 65.4 +0.8% 65.9 2010 A 2011 E 2012 E ALI BPI GLOBE MWC IMI AC • Group capex of P91.2B, up 38% YoY reflects confidence in domestic operating environment 27
Slide 28: AC 2012 Outlook
AC 2012 Outlook Moving forward, Ayala Corporation expects: 1) Core businesses to sustain solid growth 2) International businesses to turn around 3) Further bulking up investments in new sectors 28
Slide 29: Analysts Briefing Yearend 2011 Results
x Ayala Analysts Briefing Yearend 2011 Results 09 March 2012