Ayala Corp. · PSE:AC

Ayala — H1 2013 Earnings Presentation

27 slides from Ayala's earnings presentation, August 2013

  1. Slide 1: histattali@20ts

    histattali@20ts

  2. Slide 2: Key Highlights

    Key Highlights à 1H13 net income up 20% driven by real estate, banking, water and BPO businesses:  ALI: Strong residential and leasing business coupled with stable margins  BPI: Robust earnings in Q1 sustained earnings growth trajectory through 1H  MWC: Revenue gains from higher billed volume com

  3. Slide 3: Consolidated Net Income & Equity in Net Earnings 2Q13 vs. 2Q12

    Consolidated Net Income & Equity in Net Earnings 2Q13 vs. 2Q12 Consolidated Net Equity in Net Earnings Income (in Million Pesos) (in Million Pesos) 3,726 3,424 +33% Up +8% 9% 2Q12 2Q13

  4. Slide 4: Consolidated Net Income & Equity in Net Earnings 1H13 vs. 1H12

    Consolidated Net Income & Equity in Net Earnings 1H13 vs. 1H12 Consolidated Net Equity in Net Earnings Income (in Million Pesos) (in Million Pesos) 9,473 7,665 +42% +20% Up 24% 2Q12 2Q13

  5. Slide 5: Equity in Net Earnings

    Equity in Net Earnings (in million Pesos) 1H12 1H13 80 54 -25 -44 IMI LiveIt AG AC Holdings Energy -177 -100 -137 -441  Substantial improvement in LiveIt  Combined equity earnings from core businesses rose by 21% year-on-year

  6. Slide 6: Balance Sheet / Debt Profile

    Balance Sheet / Debt Profile As of As of in billion pesos 06.30.13 12.31.12  Bulk of debt (86%) is in PARENT pesos and have fixed Gross Debt* 69.5 70.6 rates (67%) Cash 35.6 37.2 Net Debt 33.9 33.4  Blended cost of debt at D/E Ratio 0.51 0.56 5.3% Net D/E Ratio 0.25 0.27 CONSOLIDATED Debt Maturiti

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  8. Slide 8: Recent Developments

    Recent Developments Northern Luzon UPC Asia Corporation o AC Energy Holdings, Inc. signed agreement with UPC Philippines Wind Holdco and PINAI Fund to develop 81MW wind farm in Ilocos Norte o Investment value of US$220M o Initial phase of project expected to connect to grid by June 2014 8

  9. Slide 9: Recent Developments

    Recent Developments Kauswagan Power Plant o AC Energy Holdings, Inc. signed JV agreement with Power Partners Ltd. Co. to conduct pre-development of a 3 x 135MW thermal power plant in Kauswagan, Lanao del Norte o Investment value estimated at US$700m o Expected to operate by 2017 9

  10. Slide 10: Growing Portfolio of Power Projects

    COMMITTED Growing Portfolio of Power OVER US$400M Projects OF EQUITY EQUITY CAPACITY OWNER- ATTRIBUTABLE EXISTING (MW) SHIP MW INVESTMENT S TAT U S (US$) SLTEC Unit I to operate 2H2014 270 50% 135 90M (South Luzon) Unit 2 to operate 2H2015 GN Power Commissioning; 600 20% 120 155 M (North Luzon) oper

  11. Slide 11: Infrastructure

    INFRASTRUCTURE

  12. Slide 12: Project Updates

    Project Updates PPP PROJECT STATUS Daang Hari • 30% of road constructed • Awaiting delivery of right of way • Completion and operation targeted by 2H14 LRT – Line 1 • Bid submission deadline on August 15 Automatic Fare • On going due diligence and bid Collection System development • Bid submission d

  13. Slide 13: 13

    13

  14. Slide 14: Sustained earnings growth trajectory

    Sustained earnings growth trajectory Revenues and Net Income (in million Pesos)  Real estate revenues 36,634 up 38% 26,999 1H12 1H13  Overall EBIT margin +36% +30% maintained at 28% 4,326 5,623  Sustained 30% net income growth Revenues Net Income

  15. Slide 15: Strong take-up of residential projects further boosted by lot sales

    Strong take-up of residential projects further boosted by lot sales PROPERTY DEVELOPMENT REVENUES (in million Pesos)  Residential revenues up 28% with growth across all brands 23,844  Take-up value was 12% 15,703 higher in 1H13 vs 1H12; booked sales up 42% vs 1H12  Commercial lot sales up 307% fr

  16. Slide 16: Sustained redevelopment and expansion of leasing portfolio

    Sustained redevelopment and expansion of leasing portfolio COMMERCIAL LEASING  Shopping center REVENUES (in million Pesos) revenues up 10% on higher GLA with opening of new malls  Office revenues up 8,493 13% on increased 7,260 +17% occupied BPO GLA and higher lease rates  Hotel revenues up 46% a

  17. Slide 17: Sustained growth momentum

    Sustained growth momentum  Net interest (in million Pesos) income up 6% with NIMs on a slight uptrend +14%  Non-interest income up 23% +27%  Net income up by 27%

  18. Slide 18: Balanced growth in loans underpinned by expanding deposit base

    Balanced growth in loans underpinned by expanding deposit base June June As of YoY Selected Ratios 6/30/13 2013 2012 Growth (in Php B) NPL Ratio Total 2.2% 2.0% 1,020 13% (Gross 30-day) Resources Cost -to-Income Deposits 823 +12% 45.3% 48.5% Ratio Assets Held ROE 23.7% 20.9% In Trust 706 -3% Basel I

  19. Slide 19: Growth momentum sustained

    Growth momentum sustained REVENUES and NET INCOME 44,532 40,767 in million Pesos 1H12 1H13 +9% -72% +13% 4,960 5,662 6,426 1,410 Revenues Net Income Core Net Income  Mobile business mainly drove revenues with postpaid delivering solid growth and prepaid holding ground  EBITDA improved by 7% year-o

  20. Slide 20: Mobile and broadband businesses continued to grow with subscriber expansion

    Mobile and broadband businesses continued to grow with subscriber expansion REVENUES in Billion Pesos 33.3 35.8 1H12 1H13 +8% +25% +12% 4.1 5.1 2.0 2.3 Mobile Broadband Fixed Line Data Subscriber Base  Mobile – up 14% to 36.1M  Broadband – up 15% to 1.8M

  21. Slide 21: Gains from higher billed volume and contribution of new businesses

    Gains from higher billed volume and contribution of new businesses (in million Pesos)  Revenue growth of 6% due to higher billed volume and CPI adjustment on rates plus contribution of new businesses  EBITDA up 11% due to lower operating costs  Net income up 11% Business Billed Volume % Change NR

  22. Slide 22: Earnings surge on higher vehicle sales

    Earnings surge on higher vehicle sales R ev e n u e s Net Income (in billion Pesos) (in million Pesos) • Revenues up 17% on improved sales and stable supply of vehicles • Market share improved across both brands

  23. Slide 23: Sustained revenue growth despite imbalance in the global economy

    Sustained revenue growth despite imbalance in the global economy Revenues Net Income (in million Dollars) (in million Dollars) +8% - 33%  Revenue growth from operations in Europe, Mexico and Philippines offset decline in China operations  Net income declined due to lower capacity utilization in Ch

  24. Slide 24: Continued Growth in Revenues and Profitability

    Continued Growth in Revenues and Profitability Share of Revenues (In USD Millions)  Share of Revenues of $190M, ahead of 2012 by 15% 15% YoY  Share of EBITDA of $16.3M, growth ahead of 2012 by 21%  Stream reported a 26% increase in Revenues and a Share of EBITDA (In USD Millions) 52% increase in

  25. Slide 25: Continued Growth in Revenues and Profitability

    Continued Growth in Revenues and Profitability Core Net Loss (In USD Millions)  Core Net Loss of $2.5M improved by $2.4M  Reported Net Loss of $2.4M $4.6M improved by $5.9M improvement  Reported Net Loss due to $7M of amortization of intangibles and interest Reported Net Loss (In USD Millions) ex

  26. Slide 26: Summary

    Summary  Performance tracking full year targets with momentum to be sustained by core businesses  Portfolio of power and transport infrastructure assets to continue to scale up  Strong funding capacity with flexibility to tap various sources

  27. Slide 27: Resi

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