Aboitiz Equity Ventures Inc. · PSE:AEV
Aboitiz Equity Ventures — 9M 2013 Earnings Presentation
59 slides from Aboitiz Equity Ventures's earnings presentation, Oct 30, 2013
Slide 1: Third Quarter / YTD September 2013 Financial & Operating Results
Third Quarter / YTD September 2013 Financial & Operating Results 30 October 2013
Slide 2: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 2
Slide 3: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 3
Slide 4: Financial Highlights: Revenue
FINANCIAL HIGHLIGHTS REVENUE (in million pesos) 9M 2006 QUARTERLY BREAKDOWN 12,196 11,527 6% 968 2% 4% 823 4,005 4,049 4,142 3,964 327 332 308 291 5,058 5,659 1,795 1,932 1,932 1,727 5,646 5,570 1,883 1,785 1,902 1,946 9M2012 9M2013 1Q2013 2Q2013 3Q2013 3Q2012 Flour Feeds Farms 4
Slide 5: Financial Highlights: EBITDA
FINANCIAL HIGHLIGHTS EBITDA (in million pesos) QUARTERLY BREAKDOWN 1,463 1,518 4% 121 309 598 544 11% 23% 515 75 570 459 113 543 115 80 220 163 193 187 772 666 268 303 207 192 1Q2013 2Q2013 3Q2013 3Q2012 9M2012 9M2013 Flour Feeds Farms 5
Slide 6: Financial Highlights: Net Income
FINANCIAL HIGHLIGHTS NET INCOME (in million pesos) QUARTERLY BREAKDOWN 906 932 27 149 3% 384 326 1% 21% 34 304 470 302 434 56 58 35 185 125 148 161 409 348 164 144 119 86 1Q2013 2Q2013 3Q2013 3Q2012 9M2012 9M2013 Flour Feeds Farms 6
Slide 7: Operating Highlights – Flour Division
OPERATING HIGHLIGHTS – Flour Division 163,792 3% 167,948 Sales Volume In MT 9M2012 9M2013 862 829 Average Selling Prices and 157 144 Gross Profit Peso/bag 9M2012 9M2013 Average Selling Price Gross Profit 7
Slide 8: Operating Highlights – Feeds Division
OPERATING HIGHLIGHTS – Feeds Division 222,842 198,405 12% Sales Volume In MT 9M2012 9M2013 22,853 23,244 Average Selling Prices and Income Over Ingredient Cost 5,967 5,415 Peso/MT 9M2012 9M2013 Average Selling Price Income Over Ingredient Cost 8
Slide 9: Operating Highlights – Farms Division
OPERATING HIGHLIGHTS – Farms Division 8,454 0.28% 8,430 Sales Volume In ‘000 kilos 9M2012 9M2013 110 95 Average Selling Prices and Gross Profit 31 Peso/kilo 8 9M2012 9M2013 Average Selling Price Gross Profit 9
Slide 10: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 10
Slide 11: Net income underpinned by trading gains and net interest income
Net income underpinned by trading gains, supplemented by net interest income and income contribution from CitySavings 16% 49% 11
Slide 12: Non-interest income rose on higher fee-based income and trading gains
Non-interest income rose on higher fee-based income and trading gains 2,532 9,308 31% +4% +84% 7,088 +49% -57% 1,540 +100% 39% -5% +11% +40% +161% -86% 174% +168% 12
Slide 13: Net interest income improved on expansion in earning assets
Net interest income improved on account of expansion in earning assets 17% 31% 47bps 37% 13
Slide 14: Deposit base continued to exhibit strong growth
Deposit base continued to exhibit strong growth 262 238 32% 62% +51% +24% 68 66 28% 23% +26% +23% 14
Slide 15: Credit portfolio posted double-digit growth
Credit portfolio posted double-digit growth led by robust expansion in retail loans 115 89 29% +7% -13% -13% +16% +23% 15
Slide 16: Operating expenses rose on tax-related expenses and consolidation
Operating expenses rose on tax-related expenses and consolidation of CitySavings 6,966 5,512 26% +63% 1,854 2,178 +4% 17% +20% -2% 16
Slide 17: Key financial ratios maintained at high levels
Key financial ratios maintained at high levels 17
Slide 18: Capital ratios remained healthy and supportive of growth
Capital ratios remained healthy and supportive of growth 18
Slide 19: UBP stock performed at par with the stock market
UBP stock performed at par with the stock market and slightly better than the financial index Source: Bloomberg, 9/30/12= 100 19
Slide 20: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 20
Slide 21: Financial Highlights: Revenue
FINANCIAL HIGHLIGHTS Revenue dropped as new sales came from newly launched projects REVENUE (in Php millions) 11% 21
Slide 22: Financial Highlights: EBITDA and NIAT
FINANCIAL HIGHLIGHTS Decline in EBITDA and NIAT due to lower revenues EBITDA (in Php millions) NIAT (in Php millions) 9% 9% 22
Slide 23: Financial Highlights: Sales
FINANCIAL HIGHLIGHTS Sales growth driven by The Persimmon Studios and launch of 2 new residential projects: Priveya Hills 2 and Almiya SALES (in Php millions) 14% 23
Slide 24: Capital Expenditure
CAPITAL EXPENDITURE AboitizLand to exceed its target CAPEX of P1 billion • Land acquisition initiatives • Priveya Hills Phase 1 and 2 • Persimmon Studios • Ajoya 24
Slide 25: Residential
RESIDENTIAL Phase 2 launched in April High-end lot-only subdivision Phase 1 launched in June House & Lot ; mid-market Construction contract awarded in October Building construction to commence in November 25
Slide 26: Commercial
COMMERCIAL Opening of The Outlets slated for Dec 2013 26
Slide 27: Growth Initiatives
GROWTH INITIATIVES Lima Land Acquisition Acquired 60% of Lima Land in Oct PPP: Cala-X Partnered with Ayala Infrastructure and Macquarie Infrastructure for Cala-X project Pre-qualification documents submitted PPP: Mactan Airport Mactan International Airport bid submission : Nov 15, 2013 50-50 JV with
Slide 28: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 28
Slide 29: Net Income (in million pesos)
NET INCOME (in million pesos) 18,383 EPS = P2.50 22% QUARTERLY BREAKDOWN 14,280 EPS = P1.94 6,200 3% 23% -29% 4,595 4,918 4,767 17,153 12,102 5,820 3,971 4,100 4,031 749 879 801 765 2,180 2,429 +11% 1Q2013 2Q2013 3Q2013 3Q2012 9M2012 9M2013 Distribution Generation AP Parent & Others 29
Slide 30: Core Net Income (in million pesos)
CORE NET INCOME (in million pesos) N on- Recurring It ems Non-Recurring Items 9M20 12 9M20 13 1Q2013 2Q2013 3Q2013 3Q2012 FX gains/(loss) - Parent (62) 22 FX gains/(loss) 154 (1,435) (156) 220 Debt prepayment costs (181) (93) Gain on redemption 5 FX gains/(loss) - Generation 1,227 (1,458) TMI Revenu
Slide 31: Beneficial EBITDA (in million pesos)
BENEFICIAL EBITDA (in million pesos) QUARTERLY BREAKDOWN 27,364 5% 25,904 9,916 12% 9,479 16% 8,353 7,634 -8% 23,995 22,149 8,572 8,288 7,106 6,471 3,513 3,932 + 12% 1,228 1,399 1,305 1,238 1Q2013 2Q2013 3Q2013 3Q2012 9M2012 9M2013 Distribution Generation AP Parent & Others 31
Slide 32: Operating Highlights: Generation
OPERATING HIGHLIGHTS: GENERATION ENERGY SALES BREAKDOWN (GWh) CAPACITY SALES BREAKDOWN (MW) 4% 3% 1,562 1,514 7,915 8,248 152 73 1,118 1,484 170 227 1,294 1,474 385 683 5,503 5,291 856 532 9M2012 9M2013 9M2012 9M2013 Energy contracts Capacity contracts Spot market Energy contracts Capacity contracts
Slide 33: Operating Highlights: Generation Open Access – Market Profile
OPERATING HIGHLIGHTS: GENERATION Open Access – Market Profile • In September 2012, the ERC declared the start of Open Access on December 26, 2012.. • Commercial transactions under an interim development system have been implemented starting June 26, 2013. • Contracts range from 3 to 10 years. CUSTOM
Slide 34: Operating Highlights: Generation APC Portfolio Contracts - Tenors
OPERATING HIGHLIGHTS: GENERATION APC Portfolio Contracts - Tenors All Contracts (As of End of 2011) All Contracts (As of September 2013) All Contracts (Tenor, MW, % of Total) All Contracts (Tenor, MW, % of Total) 10 to 20 5 to 10 YRS, 85, YRS, 7% 10 to 20 24, YRS, 186, 2% 15% Less than 5 YRS, 456, 3
Slide 35: Operating Highlights: Generation As of September 2013
OPERATING HIGHLIGHTS: GENERATION 2012 As of September 2013 57% 1,305 MW 71% 1,622 MW 13% 305 MW 381 MW 605 MW 355MW 16% 17% 26% With Off-taker Generation Based With Off-taker Capacity Based Without Off-taker Notes: • 225 MW under capacity-based contracts, which represents the recently-signed contrac
Slide 36: Operating Highlights: 9M2013 WESM Highlights
OPERATING HIGHLIGHTS: 9M2013 WESM HIGHLIGHTS WESM TIME WTD AVERAGE PRICES (P/MWh) – Luzon Grid Y T D Pr i c es Pea k Off Pea k Al l H our s 2011 4,796 2,035 3,508 2012 6,502 2,558 4,639 Sept 2012 6,209 2,630 4,496 • Units from Sual, • Pagbilao and Calaca plants • Record demand Pagbilao, and Sept 201
Slide 37: Operating Highlights: Hydro
OPERATING HIGHLIGHTS: HYDRO CONTRACTED ENERGY (GWh), at 100% ATTRIBUTABLE ENERGY 303 SALES (GWh) 144 171 132 105 201 187 110 98 Hedcor HEDCOR LHC SNAP Magat SNAP Benguet Sibulan 27% SPOT MARKET (GWh), at 100% 1,026 471 8 09 311 344 306 SNAP Magat SNAP Benguet NET CAPACITY SOLD FACTOR 9M2012 9M2013 9
Slide 38: Operating Highlights: Hydro
OPERATING HIGHLIGHTS: HYDRO SNAP MAGAT & SNAP BENGUET ANCILLARY SERVICES (at 100%) Ancillary Revenues Accepted & Billed Capacity (in million pesos) (in GW/h) 9,348 58% 52% 1,402 2,002 285 3,947 953 7,945 1,628 1,717 422 2,319 531 9M2012 9M2013 9M2012 9M2013 9M2012 9M2013 SNAP Magat P/kW/h 4.67 4.14
Slide 39: Operating Highlights: Hydro
Operating Highlights: Hydro ANCILLARY SERVICES – Nomination and Acceptance Nominated and Accepted Ancillary (GW/h) 400 2012 2013 350 300 250 200 150 100 50 - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Nominated Ancillary Accepted Ancillary 39
Slide 40: Operating Highlights: Geothermal
OPERATING HIGHLIGHTS: GEOTHERMAL AP RENEWABLES (Tiwi-Makban) Average Selling Prices (P/kWh) BCQ WESM WTD Ave Energy Sales 4.72 4.66 4.67 4.42 WESM (in GWh) 3.72 BCQ 3.21 2,585 18 % Steam & Purchased Power - Steam & Purchased Power - 94 2,127 P1.61/kWh P1.37/kWh 566 2,491 9M2012 9M2013 1,562 Steam Ve
Slide 41: Operating Highlights: Geothermal Situation under GRSC
OPERATING HIGHLIGHTS: GEOTHERMAL Situation under GRSC (July 2013) PEAK • For July 2013, APRI was selling energy on a peaking profile, as shown in the graph. The rest of the capacity (total of 71 GWh) was vented. • On average, market prices are below GRSC fuel cost during off-peak hours, which limit
Slide 42: Operating Highlights: Geothermal Situation under 50:50 Sharing
OPERATING HIGHLIGHTS: GEOTHERMAL Situation under 50:50 Sharing (Effective Aug. 2013) PEAK • The Interim Agreement with PGPC (formerly Chevron) proposed a revenue sharing arrangement when Market Prices are less than GRSC (fuel cost) • Under these market conditions (WESM Price < GRSC) APRI is assured
Slide 43: Operating Highlights: Coal
OPERATING HIGHLIGHTS: COAL ENERGY SALES (GWh) 9% 3,886 4,239 3,577 3,180 1,193 1,074 1,139 1,121 Attributable STEAG TLI CEDC Energy Sales NET CAPACITY SOLD 95% 96% 83% 101% 93% FACTOR 69% 9M2012 9M2013 STEAG TLI CEDC 43
Slide 44: Operating Highlights: Coal
OPERATING HIGHLIGHTS: COAL THERMA LUZON (Pagbilao) 9M2012 Average Selling Price P/kWh 5.85 Energy Sales 5.28 5.13 (in GWh) WESM BCQ 3,577 Coal + Energy Fee + Purchased Power = 3,180 P2.60/kWh 12% 480 648 BCQ WESM WTD Ave 9M2013 Average Selling Price P/kWh 3,097 2,532 5.28 4.27 4.41 9M2012 9M2013 Coa
Slide 45: Operating Highlights: Oil
OPERATING HIGHLIGHTS: OIL ENERGY SALES (GWh) 35% 856 634 624 401 426 404 223 233 70 124 109 60 EAUC CPPC SPPC WMPC Therma Marine Attributable Energy Sales NET CAPACITY SOLD FACTOR 97% 96% 100% 100% 100% 100% 94% 91% 71% 68% 9M2012 9M2013 EAUC CPPC SPPC WMPC Therma Marine 45
Slide 46: Operating Highlights: Distribution
OPERATING HIGHLIGHTS: DISTRIBUTION BENEFICIAL POWER SALES (Gwhr) 3% 3,606 3,727 3,934 3,142 3,322 2,935 3,024 2008 2009 2010 2011 2012 9M2012 9M2013 BENEFICIAL PEAK DEMAND (MW) GWH SALES GROWTH (BY CUSTOMER TYPE) 2% 3% 999 978 2,935 3,024 9M 2012 9M 2013 2% 2,163 2,208 6% 433 433 289 304 772 816 89
Slide 47: Operating Highlights: Distribution
OPERATING HIGHLIGHTS: DISTRIBUTION GROSS MARGIN / KWH SALE SYSTEMS LOSS 1.73 ** 10.6% 9.0% 8.0% 7.9% 7.9% 7.8% 1.60 Gov’t Cap – 8.50% 1.44 * 1.27 4% 1.25 1.21* 1.16 4% 1% 1% 3% 1% 2% 0% 2007 2008 2009 2010 2011 2012 Sept-13 MEZ BEZ SEZ SFELAPCO Davao Visayan Cotabato Light Electric Light * Adjusted
Slide 48: Financial Condition
FINANCIAL CONDITION PARENT CONSOLIDATED BALANCE SHEET (In million Pesos) YE2012 End Sept 2013 YE2012 End Sept 2013 Cash and Equivalents 8,234 3,457 30,678 15,546 Investments and Advances 62,411 70,025 25,831 27,763 Total Assets 71,120 74,153 163,137 157,442 Total Interest Bearing Debt 4,970 - 66,879
Slide 49: Project Update
Project Update FIVE YEAR PROJECT PIPELINE TO SECURE LONG-TERM GROWTH LUZON GRID VISAYAS GRID MINDANAO GRID Subic Coal 600 MW (2017) Cebu Coal 300 MW Davao Coal 300 MW (2015) Sabangan Hydro 14 MW (2015) Davao Coal 3rd Unit 150 MW Pagbilao Coal 400 MW (2017) Tudaya 14 MW (2014) Tamugan
Slide 50: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 50
Slide 51: Consolidated Profit & Loss
CONSOLIDATED PROFIT & LOSS (In Million Pesos) 3Q2012 3Q2013 % Ch 9M2012 9M2013 % Ch Revenues 20,447 20,162 -1% 60,791 58,977 -3% Equity Earnings 3,466 2,127 -39% 10,577 7,450 -30% EBITDA 10,793 8,802 -18% 30,847 28,535 -7% Net Income 6,213 4,643 -25% 18,023 16,558 -8% Core Net Income 6,340 4,733 -25
Slide 52: Net Income (In Million Pesos)
NET INCOME (In Million Pesos) 18,023 QUARTERLY BREAKDOWN EPS = P3.26 8% 16,558 906 EPS = P3.00 6,849 8% 25% 6,213 3,080 1,178 932 1,156 384 325 5,067 3,314 1,122 305 4,643 1,794 980 301 540 14,124 10,971 4,764 3,530 3,779 3,662 9M2012 9M2013 1Q2013 2Q2013 3Q2013 3Q2012 Power Banking Food Real Estate
Slide 53: Core Net Income (In Million Pesos)
CORE NET INCOME (In Million Pesos) Non-Recurring Items Non-Recurring Items 9M2012 9M2013 1Q 20 13 2Q 20 13 3Q 20 13 3Q 20 12 Parent (1) 1,298 Parent 1,272 0.1 26 - Power 382 (1,171) Power 47 (1,102) (116) (127) Total Gains/(Losses) 381 128 Total Gains/(Losses) 1,320 (1,102) (90) (127) 7% QUARTERLY B
Slide 54: EBITDA (In Million Pesos)
EBITDA (In Million Pesos) 7% 3% 30,847 28,535 26,145 25,435 EBITDA (Consolidated) EBITDA (Beneficial) 9M2012 9M2013 54
Slide 55: Parent Net Debt (In Million Pesos)
PARENT NET DEBT (In Million Pesos) Cash & Equivalents Parent net debt decreased by 28% 10% 232 20 8 5,988 4,284 Y E2012 9M 2013 Long-term Debt 70% YE 2012 9M 2013 3,982 1,194 YE 2012 9M 2013 55
Slide 56: Consolidated Balance Sheet / Key Ratios
CONSOLIDATED BALANCE SHEET / KEY RATIOS (In Million Pesos, except ratios) YE 2012 9M 2013 % Change Cash and Cash Equivalents 33,731 18,103 -46% Total Assets 222,419 201,610 -9% Total Liabilities 109,473 86,401 -21% Total Equity 112,946 115,209 1% Equity Attributable to Parent 90,986 92,970 2% Book V
Slide 57: Annex A: Earnings Contribution (In Million Pesos)
ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos) 3Q2012 3Q2013 % Ch 9M2012 9M2013 % Ch Aboitiz Power Corp. 4,764 3,662 -23% 14,124 10,971 -22% City Savings Bank 121 -- -- 318 -- -- Union Bank 1,001 540 -46% 2,762 3,314 20% Pilmico 384 301 -21% 906 932 3% AboitizLand -- 52 -- -- 163 -- Parent & Othe
Slide 58: Agenda
AGENDA • Review of Business Units • Pilmico Foods Corporation • Union Bank of the Philippines • AboitizLand • Aboitiz Power Corporation • AEV Financials • Q&A 58
Slide 59: Third Quarter / YTD September 2013 Financial & Operating Results
Third Quarter / YTD September 2013 Financial & Operating Results 30 October 2013
Aboitiz Equity Ventures — 9M 2013 Earnings Presentation on 6ix