Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — Q1 2016 Earnings Presentation
59 slides from Gt Capital's earnings presentation, May 17, 2016
Slide 1: First Quarter 2016 Analyst and Media Briefing
Fulfilling the Promise of Creating Value First Quarter 2016 Analyst and Media Briefing 17 May 2016 1
Slide 2: GT Capital Holdings Jan-Mar 2016 Financial Highlights
GT Capital Holdings Jan-Mar 2016 Financial Highlights
Slide 3: Financial Highlights 1Q 2016
Financial Highlights 1Q 2016 Php2.95 billion +5% Inclusive of non-recurring income and expenses Consolidated Net Income Php2.80 billion 1Q 2015 Php2.85 billion Core Net Income +2% Php2.78 billion 1Q 2015 Php40.8 billion Revenues +16% Php35.2 billion 1Q 2015 TMP & TMBC* - Auto Sales Php 30.8 billion
Slide 4: GT Capital Q1 2016 vs Q1 2015 Comparative
GT Capital Q1 2016 vs Q1 2015 Comparative Consolidated Core and Non-Core Net Income TMP +17% +5% MBT +4% AXA +6% 2.95 2.80 GBPC +46% FLI +8% in Php Billion PCFI net income contribution Php128M CPAIC reinsurance cost Php198M (-Php173M Net Loss) Adding back reinsurance 1Q 2015 1Q 2016
Slide 5: Net Income Contribution per Component Company
GT Capital Holdings Jan-Mar 2016 Net Income Contribution Per Component Company
Slide 6: GT Capital Net Income Contribution
GT Capital Net Income Contribution TFSPH TMBC AXA TFSPH AXA Pro- 1.9% TMBC GBPC 2.9% 2.2% 0.5% CPA Friends 2.8% 0.7% 4.5% 1.4% 3.6% Fed GBPC CPA -4.9% Land 5.8% TMP TMP 10.0% 38.5% 40.4% Fed Land 12.4% MBT MBT 40.1% 37.4% 1Q 2015 1Q 2016
Slide 7: Banking
Banking 7
Slide 8: Sector-Wide Loans and Deposits
Steady loan and deposit growth Sector-Wide Loans and Deposits In Php Trillion 2016 FY Estimates 10.00 8.3% deposit growth 8.65 11.9% loan growth 8.01 8.00 7.42 6.60 6.37 6.00 5.69 4.91 4.91 4.37 4.60 4.10 4.00 3.50 2.68 3.09 2.00 0.00 2010 2011 2012 2013 2014 2015 2016E Loans Deposits Bangko Sentral
Slide 9: Low banking penetration
Low banking penetration Banking Service Penetration In Percent (%) of population 180.0 155.7 160.0 140.0 120.0 114.5 96.4 98.0 100.0 86.1 80.7 78.1 80.0 60.0 38.7 40.0 31.3 35.0 36.1 31.0 20.0 0.0 Philippines Indonesia Malaysia Singapore Thailand Vietnam Loans Bank Accounts Bangko Sentral ng Pilipin
Slide 10: Lowest NPLs since 1997
Lowest NPLs since 1997 Non-performing loans (NPLs) 1997-2015 20% 18% 16% 14% 12% 10% 8% 6% 4% 1.65% 2% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NPL Bangko Sentral ng Pilipinas, Deutsche Regis Partners
Slide 11: NPL cover highest since '97
NPL cover highest since ‘97 NPL Cover 1997-2015 160% 141% 140% 120% 100% 80% 60% 40% 20% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NPL Bangko Sentral ng Pilipinas, Deutsche Regis Partners
Slide 12: Foreign banks are now expanding presence in PH
Foreign banks are now expanding presence in PH
Slide 13: INGS INCORPORATED
INGS INCORPORATED GT CAPITAL ~" " x HOLon j .
Slide 14: Peer Banks Highlights
Peer Banks Highlights Total Capital Adequacy Ratio (%) Common Equity Tier 1 (CET1) Ratio (%) 18.3% 13.9% 13.4% 15.0% 13.0% 11.4% MBT BPI BDO MBT BPI BDO Total Equity (Php Billion) Total Assets (Php Billion) 203 193 158 2,068 1,666 1,542 BDO MBT BPI BDO MBT BPI Source: 17-Q Report of Banks as of 31 M
Slide 15: Peer Banks Highlights
Peer Banks Highlights Reported Net Interest Margin (%) Net Income Growth (%) 3.61% 3.0% 3.22% 2.80% 1.3% -10.0% MBT BPI BDO MBT BDO BPI Total Deposits (Php Billion) Total Loans (Php Billion) 1,703 1,267 1,298 1,228 873 861 BDO BPI MBT BDO MBT BPI Source: 17-Q Report of Banks as of 31 Mar 2016
Slide 16: Metrobank Financial Highlights
Metrobank Financial Highlights Net Income Total loan growth +17%, Consumer loan growth +17% 5.25 5.08 +3% o Auto +24% o Home +13% CASA deposit growth +11%, NIMs at 3.6% in Php Billion Net interest income +9% Additional provisions for credit and impairment losses of Php0.9B +14% increas
Slide 17: Metrobank Financial Highlights
Metrobank Financial Highlights CASA (Php Billion) Loans and Receivables (Php Billion) 722 873 +11% +17% 651 744 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Total Loan Portfolio Breakdown Consumer Loan Portfolio Breakdown Consumer Credit 26% Cards 19% Home 38% Commercial Auto 74% 43% Source: Company data 17
Slide 18: Automotive
a CAPITAL \ > Automotive
Slide 19: Fortuner and Innova Run-Out
Fortuner and Innova Run-Out The previous Innova model ran out in February 2016 The previous Fortuner model ran out in December 2015
Slide 20: Market Share: Still number one
Market Share: Still number one Automotive Market Share, 1Q 2016 35% 30,498 units sold in 1Q 2016 ▲10% year-on-year 17% 9% 9% 8% 7% 4% TOYOTA 4% Toyota Mitsubishi 2% Ford Hyundai Isuzu Honda Nissan Suzuki Kia
Slide 21: Toyota Financial Highlights
Toyota Financial Highlights Revenues Volume growth of +10% 26.2 28.1 +7% 30,498 units Strong sales: in Php Billion • PCs: Vios and Wigo models • CVs: Hiace and Hilux models Run out of Fortuner (Dec. 2015) 1Q 2015 1Q 2016 and Innova (Feb. 2016) units, accounting for 30% of total Net Income ATP
Slide 22: TMP Overall Market Share vs Industry
TMP Overall Market Share vs Industry Kia 3.1% 2.3% 2.0% 1.8% -1.3% Suzuki 3.6% 3.6% 3.5% +0.2% 3.3% Nissan 3.6% 4.0% 4.1% 4.2% +0.6% Honda 6.0% 6.5% 6.7% 7.4% +1.4% Hyundai 6.9% 8.9% 8.3% 8.7% +1.8% Isuzu 7.0% 7.5% +0.6% 7.4% 7.6% Ford 7.9% +1.2% 9.1% 9.3% 9.1% 16.8% Mitsubishi 18.1% 17.7% 17.0% +0.
Slide 23: New Record for TMP
New Record for TMP Total Monthly Unit Sales April 2016 12,751 October 2015 12,575 Exceeded monthly target by 400 units
Slide 24: Record-Breaking Sales
Record-Breaking Sales 3,281 All-new Fortuner units sold in April 2016 DOUBLING PREVIOUS AVERAGE MONTHLY SALES
Slide 25: Record-Breaking Sales
Record-Breaking Sales 5,600 Units reserved as of 30 April 2016
Slide 26: Power Generation
Power Generation
Slide 27: Electrification Levels of Households
The Power Generation Sector Electrification Levels of Households Luzon 89.3% Visayas 79.9% Mindanao 60.2% Lorem ipsum dolor sit amet, consectetur adipiscing elit. Pellentesque lobortis aliquet quam eget laoreet 28 Source: Department of Energy, Philippines
Slide 28: Electrification Levels: 4.2 million homes with no power
The Power Generation Sector Electrification Levels 4.2 million homes with no power Source: Department of Energy
Slide 29: Power Sector Updates Jan-Mar 2016
The Power Generation Sector Power Sector Updates Jan Mar 2016 MW Luzon Visayas Mindanao Total Jan Mar Jan Mar Jan Mar Jan Mar 2016 2016 2016 2016 2016 2016 2016 2016 System 9,298 10,208 1,803 2,054 1,358 1,577 12,459 13,839 Capacity +(910) +(248) +(219) +(1,380) System Peak 4,392 8,460 1,470 1,712 1
Slide 30: GBP Financial Highlights
GBP Financial Highlights Revenues Volume sold (+55M KwH) 4.0 -2% 3.9 +7%, in spite of maintenance overhaul (MOH) in Php Billion Q1 2015 Q1 2016 786M KwH 841M KwH 1Q 2015 1Q 2016 Lower fuel pass-through costs -18% Net Income Lower power plant 397.5 +51% operations and maintenance in Php Million
Slide 31: 150 MW Expansion of PEDC Iloilo
150 MW Expansion of PEDC Iloilo Commercial operations within 3Q2016 83% complete as of April 2016
Slide 32: Power Supply Agreement with Meralco for PEDC Unit 3
70 MW Power Supply Agreement (PSA) with Meralco for 150 MW PEDC Unit 3
Slide 33: Property Development
a E i 4: Uy oF _ Property Development
Slide 34: Improving consumer affordability
The Property Development Sector Improving consumer affordability PHP (%) 140,000 14 120,000 12 100,000 10 80,000 8 60,000 6 40,000 4 20,000 2 - - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GDP per capita Average bank lending rate Source: Maybank ATR Kim Eng Resea
Slide 35: Construction materials are at their lowest levels in years
The Property Development Sector Construction materials are at their lowest levels in years Price index for Construction Materials 3-month moving average 20 15 10 5 0 2001 2003 2005 2007 2009 2011 2013 2015 -5 *includes cement, steel bars, CHB Source: PEP/BAML Research
Slide 36: Sao
Sao ek SSA Lowe Renee in D KEEPING YOU IN MIND FEDERAL i
Slide 37: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues +17% 2.4 Real estate sales +26% Percentage of completion in Php Billion 2.1 (PoC) improved from 18% to 22% Rent Income +6% due to 1Q 2015 1Q 2016 rate escalation Net Income +39% 440.7 Completed 2 projects (Park 317.9 West and Marco Polo II) in in Ph
Slide 38: Low-Cost Economic Property Development
Low-Cost Economic Property Development 40
Slide 39: Strategic Acquisition
Strategic Acquisition 24 August 2015 with an for 22.7% For option to of Php7.24 increase Pro-Friends billion to 51% Mid to high end Low cost to economic vertical projects horizontal projects
Slide 40: Property Development Sweet Spot
The Low-Cost Property Sector Property Development Sweet Spot Total backlog for low-cost By 2030, backlog and economic segments projected to grow to 2.3 million 6.5 million homes homes Source: Housing and Urban Development Coordinating Council
Slide 41: The Low-Cost Property Sector Demand Drivers
The Low-Cost Property Sector Demand Drivers 43
Slide 42: Pro-Friends
PRO «FRIENDS PROPERTY COMPANY OF FRIENDS, INC. ip Creating communities, transforming lives. INGS INCORPORAT 44
Slide 43: An Expansive Nationwide Land Bank
An Expansive Nationwide Land Bank Total Area Location in Hectares Lancaster 1,502 Iloilo 125 Tanza 66 Cagayan De Oro 45 Bellefort 99 Carmona 13 Boni Serrano 1 Shaw Boulevard 0.5 Total 1,851.5 hectares* *as of 31 March 2016
Slide 44: Skyway Extension NAIA Expressway Cavitex
Skyway Extension NAIA Expressway Entertainment City Cavitex C-5 South Link CALAX LRT-1 Extension Alabang Daang-Hari MCX SLEX EPZA CALAX Exit Aveia FLI/Alveo EPZA
Slide 45: Lancaster New City in Cavite
Lancaster New City in Cavite
Slide 46: Pro-Friends Financial Highlights
Pro-Friends Financial Highlights Revenues 1.4 1.9 +35% Revenues mainly driven by • +30% in real estate in Php Billion revenues POC improvement Homes completed per month from 365 to 1Q 2015 1Q 2016 472 units Net Income 563.2 +251% Gross margins maintained at 55% in Php Million -23% in OPEX r
Slide 47: Insurance
Insurance 49
Slide 48: Insurance Penetration as % of GDP
The Insurance Sector 14 Insurance Penetration as % of GDP 12 Non-Life Life Philippines 10 Total : 1.84% Life : 1.81% 8 Non-Life : 0.03% 6 4 2 0 Source: Maybank ATR Kim Eng Research
Slide 49: Total Industry-wide Premium Income
The Insurance Sector Total Industry-wide Premium Income FY 2015, Insurance Commission 300.0 Php257.8B +17% 250.0 +13% 69.3 200.0 61.3 Non-Life 150.0 Life 100.0 188.5 158.7 +19% 50.0 0.0 FY 2014 FY 2015 Source: GT Capital Corporate Planning Research
Slide 50: Life Insurance Rankings
The Insurance Sector Life Insurance Rankings FY2015, In terms of Premium Income (in billion Php) Insurance Commission 32.8 22.8 21.2 20.8 19.8 13.9 12.7 10.2 6.4 5.8 Sun Life AXA AXA Philam Life BPI Philam Pru Life Manulife Insular Life Sun Life Grepa Generali PNB Life
Slide 51: CAPITAL
CAPITAL ISS INCORPORATED
Slide 52: Strategic Merger
Strategic Merger stronger together Completed on 4 April 2016 for 100% Full integration of Charter within Ping An 2016
Slide 53: AXA Financial Highlights
AXA Financial Highlights Gross Premium New Business (APE) at Php1.1B -22% 5.6 (flat vs. last year) 4.4 Single Premium -44% due to in Php Billion lower demand for unit-linked products arising from volatile capital markets 1Q 2015 1Q 2016 70:30 to 50:50 Single and Regular Premium product mix Net I
Slide 54: Road Ahead for Rest of 2016
GT Capital Road Ahead for Rest of 2016 Increase in Pro-Friends equity stake from 22.7% to 42.1% (Q3 2016), 51% (Q1 2017) 300-hectare mixed-use project underway Normalized overall market share due to impact of all-new Fortuner and Innova Commencement of PEDC Unit 3 operations Secure composite life an
Slide 55: GT Capital Previous Corporate Structure
GT Capital Previous Corporate Structure Banking Property Automotive Power Insurance
Slide 56: GT Capital New Corporate Structure
GT Capital New Corporate Structure Banking Property Automotive Power Insurance
Slide 57: GT Capital 2016 CAPEX Budget
GT Capital 2016 CAPEX Budget In Php Billion Metrobank 7.00 Toyota Motor Philippines* 7.00 Federal Land*** 7.00 Pro-Friends*** 12.65 Global Business Power 8.30 AXA Philippines** 2.53 TMBC/TCI 2.14 Toyota Financial Services PH 0.10 GT Capital Parent 10.00 Total CAPEX for 2016 *excluding CARS program 5
Slide 58: Thank You!
Thank You! First Quarter Briefing 2016 61
Slide 59: First Quarter 2016 Analyst and Media Briefing
Fulfilling the Promise of Creating Value First Quarter 2016 Analyst and Media Briefing 17 May 2016 62