Ayala Corp. · PSE:AC
Ayala — Q1 2006 Earnings Presentation
18 slides from Ayala's earnings presentation, May 12, 2006
Slide 1: 1Q06 Analysts' Briefing
1st Quarter 2006 Briefing 1Q06 Analysts’ Briefing 12 May 2006 pioneering the future
Slide 2: 1Q06 Highlights
1Q06 Highlights è Net income up 23% to P3.1B è Subsidiaries and affiliates posted robust earnings growth è Excluding gains, equity earnings up 21% è Capital gains of P1B from sale of shares pioneering the future
Slide 3: Financial Review – 1Q06
Financial Review – 1Q06 Consolidated Income Statement Highlights % Revenues 1Q06 1Q05 Change Sales and services 11,345 8,146 + 39% Equity in net earnings of associates 2,425 2,636 - 8% and joint ventures Interest, rental and other 1,851 3,418 - 46% investment income Others 178 165 + 8% Cost and expe
Slide 4: Subsidiaries and affiliates posted robust earnings growth
Subsidiaries and affiliates posted robust earnings growth Net Income of Subsidiaries and Affiliates % 1Q06 1Q05 Change ALI 1,176 1,162 + 1% BPI 2,503 1,977 + 27% Globe 3,453 2,904 + 19% AC Capital MWC 600 484 + 24% IMI 471 313 + 50% Auto 50 45 + 13% AIPL 14 18 - 20% pioneering the future
Slide 5: Excluding parent gains, equity earnings up 21% year-on-year
Excluding parent gains, equity earnings up 21% year-on-year Equity in Net Earnings with one-offs w/out one-offs 2006 2005 % Ch 2006 2005 % Ch ALI 730 775 -6% 730 775 - 6% BPI 889 694 +28% 889 694 + 28% Globe 1,198 1,058 +13% 1,198 1,058 + 13% AC Capital 720 1,177 - 39% 720 402 + 79% Total 3,537 3,70
Slide 6: Exclusive of parent gains, net income up 70% year-on-year
Exclusive of parent gains, net income up 70% year-on-year % (in million pesos) 1Q06 1Q05 Change Net Income (inclusive of gains) 3,140 2,553 + 23% Less: Capital Gains MWC 310 BPI 430 ALI 560 200 Dilution Gains 775 Net Income (exclusive of parent gains) 2,150 1,268 + 70% pioneering the future
Slide 7: Continued decline in parent debt
Continued decline in parent debt 1Q06 Dec 05 % Change Total Debt* Consolidated P54.6B P60.4B - 10% Parent P39.6B P44.9B - 12% Net Debt Consolidated P32.1B P35.8B -10% Parent P28.0B P29.9B - 6% Debt Mix Peso 62% 61% USD 38% 39% Net Debt to Equity Consolidated 0.50 0.58 Parent 0.43 0.49 *with preferre
Slide 8: Operating Highlights
Operating Highlights Key subsidiaries & affiliates| 1Q06 Analysts’ Briefing 12 May 2006 pioneering the future
Slide 9: Ayala Land 1Q06 Revenue Breakdown
2005 Revenue Breakdown 1Q06 Revenue è Net income at P1.2B Breakdown è Revenues down 21% to P5.5B due Support to gains from AIVI sale Businesses, 19% è Residential development revenues up 28% è Shopping center revenues up 13% è Corporate business revenues up 75% Shopping Residential è Total cost and
Slide 10: Bank of the Philippine Islands
Bank of the Philippine Islands 4.32% 4.59% 4.41% 3.94% 3.93% è Net income up 27% to P2.5B è Total revenues up 9% to P7.3B è Net interest income up by 2% as Net Interest Margin spreads narrowed year-on-year 2002 2003 2004 2005 1Q06 è Non-interest income up by 22% 9.6% 7.6% due to trading gains and st
Slide 11: Globe Telecom
Globe Telecom EBITDA & Net Income è Net income grew by 19% to P3.5B 1Q05 – 1Q06 è Revenue growth of 5% driven by 12 1Q05 3Q05 2Q05 4Q05 8 1Q06 Ü 2% year-on-year growth of wireless 4 subscribers 0 Ü Higher ARPUs and lower churn EBITDA Net Income Wireless Subscribers è Operating expenses down 15% 13,1
Slide 12: AC Capital
AC Capital 4,000 Contribution to Equity 3,000 Earnings 2,000 *Includes dilution gains 1,177 1,000 720 0 1Q05* 1Q06 … but accounted for 20% of Equity Earnings Breakdown of Equity in Net Earnings 1Q06 Globe 34% AC CapitaL BPI-25% ALI-21% 20% pioneering the future
Slide 13: Manila Water Company
Manila Water Company Customer Base (‘000 Households) 600 è Revenues up 16% to P1.5B due to higher 500 billed volume and increased operational 400 efficiencies 300 è Steady reduction in NRW to 34% 200 è Customer base expanded to 741,000 100 97 99 '01 '03 '05 households Non-Revenue Water (NRW) è Bille
Slide 14: Integrated Microelectronics
Integrated Microelectronics Sales by Region è Consolidated revenues up 118% to Japan, 61% P4.8B due to Ü Acquisition of Speedy-Tech and Cebu China & rest of Asia, 8% operations Ü Philippine operations posted 13% Europe, USA, 20% revenue growth 11% Sales by Product Line è Net income up 50% to P471 mi
Slide 15: Ayala Automotive
Ayala Dealership Sales 1500 (no. of units) Honda Isuzu Ayala Automotive 1000 500 è Net income attributable to dealership operations up 13% to 0 YTD 2006 YTD 2005 P50 million Market Share (Isuzu) è Growth due to better vehicle and Ayala service sales Others 31% 31% è Launch of new Civic to boost 36%
Slide 16: Ayala International
Projects By Geography As of 1Q06 (USD 73M) Ayala International Malaysia Thailand 1% è Net income down 20% to P14 12% HongKong 5% million due to forex loss Indonesia USA, 40% 9% Singapore è Commenced sale of US projects 33% with favorable market response Projects By Type è Exploring opportunities in
Slide 17: In Summary…
In Summary… è Robust performance of operating subsidiaries; è Stronger balance sheet è Value realization through active portfolio management è Pursuit of key strategic initiatives pioneering the future
Slide 18: 1Q06 Analysts' Briefing
1st Quarter 2006 Briefing 1Q06 Analysts’ Briefing 12 May 2006 pioneering the future