Ayala Corp. · PSE:AC
Ayala — 9M 2014 Earnings Presentation
18 slides from Ayala's earnings presentation, Nov 14, 2014
Slide 1: Analysts' Briefing YTD September 2014
A N A LY S T S ’ B R I E F I N G YTD September 2014 NOVEMBER 14, 2014 | 0
Slide 2: 9M13 vs. 9M14 equity earnings and net income
9M13 VS. 9M14 Equity in net earnings and consolidated net income posted solid increases for the first nine months 9M Equity in Net Earnings (million pesos) 9M Consolidated Net Income (million pesos) +35% 18,816 +35% 14,053 13,954 10,432 9M13 9M14 9M13 9M14 | 1
Slide 3: 3Q13 vs. 3Q14 equity earnings and net income
3Q13 VS. 3Q14 Third quarter equity earnings and consolidated net income were consistent with the year-to-date growth trajectory 3Q Equity in Net Earnings (million pesos) 3Q Consolidated Net Income (million pesos) +34% +36% 5,985 4,254 4,483 3,129 3Q13 3Q14 3Q13 3Q14 | 2
Slide 4: Equity earnings from core businesses grew 37%
3Q13 VS. 3Q14 Equity earnings from core businesses grew 37% on higher contribution across business units 3Q Equity in Net Earnings by Business Unit (Million Pesos) +40% 2,307 +28% 3Q13 3Q14 1,823 1,647 1,429 +69% 1,117 +13% 661 +213% 539 607 -194% 250 80 127 -119 Others | 3
Slide 5: Raised P13.5 billion from sale of preferred shares
RECENT DEVELOPMENTS Last week, we raised P13.5 billion from the sale of preferred shares Results of Preferred Share Issuance Sold 27 million of Series 2 Preferred Class B Shares Non-voting Priced at P500 per share Dividend rate set at 5.575% Perpetual in nature, with rate re- setting on 5t
Slide 6: P49B Parent Company Capex in 2014, 71% spent
RECENT DEVELOPMENTS We earmarked P49B in Parent Company Capex in 2014, with 71% spent Daang Hari, AFCS, Automotive, Education & and others other businesses 2% 2% Closing of stake in 30% Participation in BPI GNPower, completion stock rights offer, of other thermal payment tranches for projects, expan
Slide 7: Balance sheet and debt profile continues to be healthy
FINANCIAL MANAGEMENT Our balance sheet and debt profile continues to be healthy Key Financial Metrics Schedule of Debt Maturities (in Billion Pesos) As of As of In Billion Pesos 12.31.2013 9.30.2014 30 (Audited) (Unaudited) PHP USD PARENT 20 Gross Debt* 70,950 108,977 Cash 25,563 30,379 10 Net Debt*
Slide 8: Ayala has funding capacity to support its investments
FINANCIAL MANAGEMENT Ayala has funding capacity to support its sizable investments Potential Sources and Uses of Cash, 2013-2016 (Billion Pesos) (45) (79) (80) Est. Est. Net Debt- Interest 113 Equity Coverage Ratio Ratio BU dividends (67) 0.41 1.79x Others Divestments, capital returns, GAE others Ca
Slide 9: Ayala Land recorded strong double-digit growth
SUMMARY OF BUSINESS UNIT PERFORMANCE Ayala Land recorded strong double-digit growth driven by robust performance of higher-end residential and office sales segments Net Income (In Million Pesos) KEY HIGHLIGHTS Real estate revenues up 21% +25% Residential revenues climbed 40% on increased booking
Slide 10: BPI's core banking business posted solid growth
SUMMARY OF BUSINESS UNIT PERFORMANCE BPI’s core banking business posted solid growth, supporting drop in profits from lower trading gains Net Income (In Million Pesos) KEY HIGHLIGHTS Net interest income grew 15% to P25.6B on strong loan growth and deposit mix Loan portfolio posted a record 28% g
Slide 11: Globe's net income expanded threefold
SUMMARY OF BUSINESS UNIT PERFORMANCE Globe's net income expanded threefold on tapering of depreciation costs and strong topline growth Net Income (In Million Pesos) KEY HIGHLIGHTS Gross service revenues up 8% to P72.7B on strong subscriber expansion: +~3x 9M14 Mobile up 6% - Postpaid (+11%); Pre
Slide 12: MWC profits remain upbeat
SUMMARY OF BUSINESS UNIT PERFORMANCE MWC profits remain upbeat boosted by strong billed volume growth and higher contribution from new businesses Net Income (In Million Pesos) KEY HIGHLIGHTS Revenues up 6% to P12.2B due to higher billed volume across all businesses (+14%) East Zone revenues boos
Slide 13: IMI registered a fourfold increase in earnings
SUMMARY OF BUSINESS UNIT PERFORMANCE IMI registered a fourfold increase in earnings, backed by sustained growth in telecom and automotive segments Net Income (In Million Pesos) KEY HIGHLIGHTS Revenues expanded 19% to P28.8B +4X China operations up 25% owing to strong demand in 930 telecom infras
Slide 14: LiveIt and Ayala Automotive results
SUMMARY OF BUSINESS UNIT PERFORMANCE In other businesses, LiveIt results were boosted by gains from the Stream sale; Ayala Automotive continues to ramp up with the Volkswagen brand Net Income KEY HIGHLIGHTS (In Million Pesos) 2,134 Posted gross gains from sale of Stream of P2.3B in 1Q14 and a net
Slide 15: AC Energy power portfolio, US$500M equity committed
NEW GROWTH PLATFORMS: POWER AC Energy continues to ramp up our power portfolio, committing US$500M of equity to-date Net Income (million pesos) Power Portfolio EQUITY CAPACITY INVESTMENT STATUS (MW) (Est. Economic 47 Ownership) T H E R M A L GN Power $160M 660 Operational since April 2014 Mariveles
Slide 16: Infra Update: LRT Cavite Extension and O&M Project
NEW GROWTH PLATFORMS: INFRASTRUCTURE Infra Update: LRT 1 Cavite Extension and O&M Project Will help ease the congestion in the Parañaque-Las Piñas-Cavite corridor and enhance commercial development around the rail stations Signed the concession agreement last October 2 Project Overview: Project
Slide 17: Infra Update: Cavite-Laguna Expressway Project
NEW GROWTH PLATFORMS: INFRASTRUCTURE Infra Update: Cavite-Laguna Expressway Project Team Orion urged the Palace to settle the stalemate • Filed a petition before the Office of the President Team Orion last October 27: • Reiterating its position that Optimal’s appeal AC Infrastructure Holdings, Corp.
Slide 18: Key Takeaways
Key Takeaways • On track to achieve 2016 strategic goals: • Surpass P20B in net income • Generate more than 10% of equity earnings coming from non-core businesses • Achieve mid-teens ROE • Investments in new businesses moving to execution phase as power business begins to contribute to earnings • Ma