Ayala Corp. · PSE:AC
Ayala — Shareholder Meeting (2013)
23 slides from Ayala's shareholder meeting presentation, Dec 5, 2013
Slide 1: Bolder. Annual Stockholders' Meeting
Slide 2: Chairman's Message
CHAIRMAN’S MESSAGE JAIME AUGUSTO ZOBEL DE AYALA
Slide 3: Key Strategic Medium-Term Imperatives and Goal
KEY STRATEGIC MEDIUM-TERM IMPERATIVES: GOAL: 1. Aggressively expand core businesses Double net income 2. Enhance profitability of international businesses Deliver 15% Return on 3. Invest in future sources of earnings Equity and value
Slide 4: Aggressively Expand Core Businesses: Record CAPEX
AGGRESSIVELY EXPAND CORE BUSINESSES Ayala Group Capital Expenditure (in PhP Billions) 149.3 Record +1% +127% CAPEX in 2012 65.4 65.9
Slide 5: Capex of Php 71B in 2012 was double the original budget
AGGRESSIVELY EXPAND CORE BUSINESSES Capex of Php 71B in 2012 was double the original budget THE CIRCUIT FTI VERTIS
Slide 6: Network and IT Transformation
AGGRESSIVELY EXPAND CORE BUSINESSES NETWORK AND IT TRANSFORMATION Largest Infrastructure Investment to date Improve capacity Generate savings Faster-time to market Quickly respond to customer needs
Slide 7: Expanding Philippine operations outside East Zone
AGGRESSIVELY EXPAND CORE BUSINESSES Expanding Philippine operations outside East Zone 25-year concession, until 2025 30-year contract, until 2027 WATER AND WASTEWATER WATER Customer: 1,800 locators Customer: 700,000 Coverage: Clark Freeport Zone Coverage: Cabuyao, Binan, Sta Rosa Billed Volume: 22 M
Slide 8: Water contracts in Ho Chi Minh City
AGGRESSIVELY EXPAND CORE BUSINESSES 5-Yr Mgt contract until 2013 LEAKAGE REDUCTION Customer: SAWACO Coverage: Zone 1, HCMC NRW Target: 35% 50-year contract, until 2058 BULK WATER Customer: SAWACO Coverage: HCMC Billed Volume: 345 MLD 20-year contract, until 2033 BULK WATER Customer: SAWACO Ho Chi Mi
Slide 9: Continued Investment program for East Zone
AGGRESSIVELY EXPAND CORE BUSINESSES Continued Investment program for East Zone CAPEX BREAKDOWN Php426B* 2013-2037 Php 214B ($5B) Service Continuity 23% Capital Service Accessibility 6% Expenditures Water Security 34% Php214B ($5B) Environmental Sustainability 38% Operating Expenses Php212B ($5B)
Slide 10: Deliver Quality Sustainable Growth
AGGRESSIVELY EXPAND CORE BUSINESSES Deliver Quality Sustainable Growth Nearly 6 million customers
Slide 11: BPI Shareholder Structure and Share Price
AGGRESSIVELY EXPAND CORE BUSINESSES BPI SHAREHOLDER STRUCTURE BPI SHARE PRICE (as of Dec. 31, 2012) Acquisition of 10% stake of DBS at P70 for every common share
Slide 12: Key Strategic Medium-Term Imperatives and Goal
KEY STRATEGIC MEDIUM-TERM IMPERATIVES: GOAL: 1. Aggressively expand core businesses Double net income 2. Enhance profitability of international businesses Deliver 15% Return on 3. Invest in future sources of earnings Equity and value
Slide 13: Enhance Profitability of International Businesses
ENHANCE PROFITABILITY OF INTERNATIONAL BUSINESSES NET INCOME SHARE OF EBITDA (IN US$ MILLION) (IN US$ MILLION) +36% +54%
Slide 14: Key Strategic Medium-Term Imperatives and Goal
KEY STRATEGIC MEDIUM-TERM IMPERATIVES: GOAL: 1. Aggressively expand core businesses Double net income 2. Enhance profitability of international businesses Deliver 15% Return on 3. Invest in future sources of earnings Equity and value
Slide 15: Committed over US$300M of equity
INVEST IN FUTURE SOURCES OF EARNINGS AND VALUE Committed over US$300M of equity EQUITY CAPACITY OWNER- INVESTMENT EXISTING (MW) SHIP STATUS (US$) NorthWind (North Operating and 33 50% 20 M awaiting FIT Luzon) Commissioning; GN Power (North 600 20% 155 M operational within Luzon) 2013 SLTEC I (South
Slide 16: Scale Up New Businesses; Gross Asset Value
INVEST IN FUTURE SOURCES OF EARNINGS AND VALUE Our Goal is To Scale Up New Businesses and Develop These Investments Into A Meaningful Part Of Our Portfolio GROSS ASSET VALUE as of April 5, 2013 Re-balancing our portfolio towards businesses with steady recurring Total: income and Php 493B predictable
Slide 17: Global Services Management Institute: Education for Employability
GLOBAL SERVICES INVEST IN FUTURE MANAGEMENT INSTITUTE, INC. SOURCES OF EARNINGS AND VALUE Education for Employability • Strong global demand for Filipino talent from IT-BPO and other industries. • Deliver high quality, affordable education that enhances employability – Equip students with skills thr
Slide 18: Global Services Management Institute: Education for Employability
GLOBAL SERVICES INVEST IN FUTURE MANAGEMENT INSTITUTE, INC. SOURCES OF EARNINGS AND VALUE Education for Employability • Strong global demand for Filipino talent from IT-BPO and other industries. • Deliver high quality, affordable education that enhances employability – Equip students with skills thr
Slide 19: AC Share Price up 70% in 2012
AC Share Price up 70% in 2012 Market Cap of P307B
Slide 20: Sustainability @ Ayala
SUSTAINABILITY @ AYALA ECONOMIC E N V I RO N M E N TA L SOCIAL I N D I C ATO R S I N D I C ATO R S I N D I C ATO R S * Combined Group * Recycling over * Employing over Net Income of 130 tons of solid 40,000 people P50B* waste * Combined Group * 1.7M low-income * Empowering 750k Revenues of beneficia
Slide 21: Key Strategic Medium-Term Imperatives and Goal
KEY STRATEGIC MEDIUM-TERM IMPERATIVES: GOAL: 1. Aggressively expand core businesses Double net income 2. Enhance profitability of international businesses Deliver 15% Return on 3. Invest in future sources of earnings Equity and value
Slide 22: Slide 22
Slide 23: Bolder. Annual Stockholders' Meeting