Ayala Corp. · PSE:AC

Ayala — Q1 2013 Earnings Presentation

26 slides from Ayala's earnings presentation, May 16, 2013

  1. Slide 1: AC Energy

    — Op) Eb) CS

  2. Slide 2: Key Highlights

    Key Highlights à Net income up 29% year-on-year driven by the banking and real estate businesses:  BPI: Significant trading gains boosted core banking business  ALI: Higher earnings due to strong revenue growth across all businesses coupled with stable margins  Equity in net earnings up 36% à Cor

  3. Slide 3: Consolidated Net Income & Equity in Net Earnings

    Consolidated Net Income & Equity in Net Earnings Consolidated Net Equity in Net Income (in Billion Pesos) Earnings (in Billion Pesos) 5.7 5.2 +49% 4.2 Core Net +29% 4.5 Income 3.5 Up 36% Reported Net Income 1Q12 1Q13 1Q12 1Q13

  4. Slide 4: Equity in Net Earnings

    Equity in Net Earnings (in million Pesos) 3,683 22 30 7 1Q12 IMI LiveIt AG 1,957 1Q13 Holdings 1,395 1Q12 -58 1,118 -130 846 1Q13 522 538 215 -191 ALI BPI Globe MWC  Combined equity earnings  Continued improvement from core businesses ALI, in LiveIt BPI, Globe and MWC rose by 31% year-on-year

  5. Slide 5: Balance Sheet / Debt Profile

    Balance Sheet / Debt Profile As of As of in billion pesos 03.31.13 12.31.12 PARENT  Bulk of debt (85%) is in Gross Debt* 70.5 70.6 pesos and have fixed Cash 37.8 37.2 rates (66%) Net Debt 32.7 33.4 D/E Ratio 0.53 0.56  Blended cost of debt at Net D/E Ratio 0.25 0.27 5.1% CONSOLIDATED Debt Maturiti

  6. Slide 6: Slide 6

  7. Slide 7: Recent Developments

    Recent Developments 135mw SLTEC unit 2 o South Luzon Thermal Energy Corp. signed an agreement with DMCI together with China National Technical Import and Export Corp. for the construction of the CFB plant next to SLTEC unit 1 o Construction expected to start in 2H13 o Target operations in 2016

  8. Slide 8: Growing Portfolio of Power Projects

    Committed over Growing Portfolio of US$300M of Equity Power Projects EQUITY CAPACITY OWNER EXISTING INVESTMENT S TAT U S (MW) -SHIP (US$) NorthWind Operating and 33 50% 20 M (North Luzon) awaiting FIT Commissioning; GN Power 600 20% 155 M operational within (North Luzon) 2013 SLTEC I 135 50% 50 M Un

  9. Slide 9: Infrastructure

    INFRASTRUCTURE

  10. Slide 10: Recent Developments

    Recent Developments  Qualified to bid for the automatic fare collection  Submitted joint prequalification system project as AF bid for the Mactan Cebu Consortium with BPI Card, International Airport project Globe and the Metro Pacific with Aboitiz group

  11. Slide 11: Slide 11

  12. Slide 12: Growth momentum sustained across the board

    Growth momentum sustained across the board  Sustained revenue growth Revenues and Net Income across all businesses (in million Pesos)  Revenues up 38% vs 18,529 last year driven by 13,385 1Q12 strong growth in 1Q13 residential and +38% commercial leasing +30% segments and FTI lot 2,132 2,762 sales

  13. Slide 13: Strong take-up of residential projects

    Strong take-up of residential projects PROPERTY DEVELOPMENT REVENUES  Residential revenues (in million Pesos) up 17%  Commercial lot sales 12,110 up 348% with sale of FTI lots  Residential take-up steady at P19B per quarter  Booked sales up 33%

  14. Slide 14: Steady growth of leasing Portfolio

    Steady growth of leasing Portfolio  Occupied mall GLA COMMERCIAL LEASING up 7% with REVENUES redevelopment of Ayala (in million Pesos) Center Makati and Cebu 4,431  Average occupancy at 94%  Occupied BPO office GLA up 10% to 373K sqm  Average lease rates steady for malls; up 6% for office

  15. Slide 15: Continued growth in core business boosted by trading gains

    Continued growth in core business boosted by trading gains  Total Revenues up 21% (in million Pesos) • Net interest income up 4.3% 16,496 1Q12 13,612 1Q13 • NIMs slipped by 34 basis points. +43% 8,369 • Non interest income +21% 5,834 surged 38% to P9.4B +43%  Net income up by 43% Revenues Net Inco

  16. Slide 16: Strong core banking business

    Strong core banking business March March As of YoY Selected Ratios 3/31/13 2013 2012 Growth (in Php B) NPL Ratio Total 940 +16% 2.1% 2.50% (Gross 30-day) Resources Cost -to-Income Deposits 748 +16% 40.01% 45.32% Ratio Assets Held 758 +6% ROE 33.86% 25.74% In Trust Basel II CAR 15.1% 16.06% Net Loans

  17. Slide 17: Continued revenue momentum

    Continued revenue momentum REVENUES and NET INCOME 20,246 21,368 in million Pesos 1Q12 1Q13 +6% -76% +13% 2,701 2,740 3,086 656 Revenues Net Income Core Net Income  Growth in mobile business driven by domestic voice, mobile browsing and value-added services  Broadband and fixed line data segments

  18. Slide 18: Mobile and broadband businesses continued to grow with subscriber expansion

    Mobile and broadband businesses continued to grow with subscriber expansion M O B I L E a n d B ROA D B A N D R E V E N U E S in million Pesos 16,571 17,124 1Q12 1Q13 +3% +23% +11% 2,017 2,486 997 1,111 Mobile Broadband Fixed Line Data Subscriber Base  Mobile – up 13% to 35.1M  Broadband – up 17%

  19. Slide 19: New businesses sustained earnings momentum

    New businesses sustained earnings momentum (in million Pesos) 1Q12 1Q13 % Change Revenues 3,419 3,637 +6% Operating Expenses 922 1,017 +11% EBITDA 2,521 2,723 +8% Net Income 1,338 1,333 0% (attributable to MWC equity holders) Billed Volume (in mcm) 137.7 136.7 -1% (includes LWC, BIWC, CWC) Service C

  20. Slide 20: Earnings surge on higher vehicle sales

    Earnings surge on higher vehicle sales Revenues Net Income (in million Pesos) (in million Pesos) Honda Isuzu 49.7 +40% 3,022 27.9 2,156 1,930 1,178 +78% 1,092 978 1Q12 1Q13 • Revenues and net income up 40% and 78%, respectively on higher vehicle sales • Maintained leadership in Honda and Isuzu natio

  21. Slide 21: Sustained revenue growth

    Sustained revenue growth Revenues Net Income (in million Dollars) (in million Dollars) 165 123 -70% +8.5% 1Q12 1Q13  Revenue growth mainly due to business expansion in Europe and the Philippines  Net income declined owing to lower sales in China

  22. Slide 22: Continued Growth in Revenues and Profitability

    Continued Growth in Revenues and Profitability Share of Revenues (In USD Millions)  Q1 Share of Revenues of $93M, First Quarter ahead of 2012 by 13% due 93 83 mainly to higher revenues from 13% YoY Stream growth  Q1 Share of EBITDA of $8.3M, Q1 2012 Q1 2013 ahead of 2012 by 8% due mainly Share of

  23. Slide 23: Continued Growth in Revenues and Profitability

    Continued Growth in Revenues and Profitability Core Net Loss (In USD Millions)  Core Net Loss of $2.6M due First Quarter to Amortization of Intangibles and Interest Expense from LBO of Stream (2.6) (2.6) Q1 2012 Q1 2013  Reported Net Loss of $3.2M improved by $1.5M due to lower Non-Recurring Expen

  24. Slide 24: Stream acquires LBM in UK, grows in Philippines

    Stream acquires LBM in UK, grows in Philippines  Stream announced its acquisition of UK based LBM Holdings Limited  LBM employs ~2,500 people across 6 locations in the UK and generates ~£60 million in revenues.  LBM will enable Stream to better penetrate the UK and strengthen its ability to help

  25. Slide 25: Summary

    Summary  Growth momentum will continue through:  Aggressive expansion of core businesses  Improvement of international businesses  New businesses in power and infrastructure will ramp up  Strong funding capacity

  26. Slide 26: — Op) Eb) CS

    — Op) Eb) CS

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