Ayala Corp. · PSE:AC
Ayala — Investor Presentation (June 2015)
16 slides from Ayala's investor presentation, June 2015
Slide 1: Ayala Corporation Investor Presentation June 2015
June 2015 Ayala Corporation Investor Presentation June 2015 CONFIDENTIAL AND PROPRIETARY Any use or dissemination of this material without the expressed written permission of Ayala Corporation is strictly prohibited.
Slide 2: Key Messages
KEY MESSAGES Ayala is well-positioned to capture sustained momentum amidst Philippine economic growth 1 Philippine economic expansion remains resilient on remittance-funded consumption underpinned by solid macroeconomic fundamentals 2 As a group, we remain on track against our long-term strategic go
Slide 3: Macroeconomic Overview
MACROECONOMIC OVERVIEW With healthy fundamentals and continuing improvements in competitiveness, the Philippines remains on a solid growth path • While 1Q2015 GDP was Major macroeconomic indicators (2011-1Q2015) lower than expected on GDP Growth Inflation Interest Rates slower gov’t spending, remitt
Slide 4: Business Overview: portfolio of businesses as engines for growth
BUSINESS OVERVIEW Amidst the Philippines’ economic growth, our unique portfolio of businesses provides various engines for growth and diversification Listed Businesses Real Estate Financial Services Telecommunications Water Utility Manufacturing 47.3% 48.3% 30.4% 48.5% 50.9% Leading and most Pioneer
Slide 5: On track with strategic goals to more than double net income
BUSINESS OVERVIEW We remain on track with our strategic goals to more than double net income and achieve mid-teen ROE by 2016 Strategic Imperatives Increasing overall Improving Diversifying earnings capacity shareholder returns the portfolio Reported Net Income Equity Earnings from Return on Common
Slide 6: Strengthening the real estate portfolio
CORE BUSINESSES We continue to strengthen our real estate portfolio as demand drivers remain upbeat Achieving a balance between recurring and non-recurring Growing through a diversified landbank with a income businesses to create a more resilient portfolio focus on large scale township development N
Slide 7: Positive about the banking sector
CORE BUSINESSES We remain positive about the banking sector and see significant upside as we scale the business Amidst the intense competitive landscape and increasingly challenging Our goal is to grow and overlay regulatory environment, our core banking business continues to improve scale on an eff
Slide 8: Globe continues to gain momentum
CORE BUSINESSES Globe continues to gain momentum, underpinned by differentiated product offerings amid improving digital lifestyle Revenues and market share increasing on the strength of Globe’s customer-centric strategies are key to subscriber-driven growth, with EBITDA maintained achieving continu
Slide 9: MWC holding steady in East Zone and ramping up operations
CORE BUSINESSES MWC is holding steady in the core East Zone business and ramping up operations locally and in the region Steady growth in the East Zone amidst arbitration Continued ramp-up in non-East Zone business, challenges both locally and internationally East Zone revenues (₱ billions) +5% 3.8
Slide 10: Over $700M equity committed to conventional and renewable energy
ENERGY PORTFOLIO We have committed over $700M of equity to-date for conventional and renewable technologies Thermal energy projects GNPOWER MARIVELES SLTEC GNPOWER KAUSWAGAN North Luzon South Luzon North Mindanao Total capacity Gross: 660MW | Net: 600MW Gross: 270MW | Net: 241MW Gross: 450+150MW | N
Slide 11: 133MW portfolio of wind power assets
ENERGY PORTFOLIO We have assembled a portfolio of 133MW of wind power generation assets, one of the largest in the country today Renewable energy projects NORTHWIND (NORTH LUZON) NLREC (NORTH LUZON) QUADRIVER (NORTH LUZON) Total capacity 52MW 81MW 11MW Approx AC ownership 50% 64% 70% Est attributabl
Slide 12: Transport infrastructure portfolio
TRANSPORT INFRASTRUCTURE PORTFOLIO We have built a sizable portfolio of infrastructure projects; equity requirement of $250M through 2016 Transport infrastructure/PPP projects MCX AFCS LRT1 CAVITE EXTENSION Current ridership/traffic - Approx 1.5M/day ~0.5M/day Distance 4km Retail and other use cases
Slide 13: Sustained earnings momentum in the first quarter
FINANCIAL PERFORMANCE We sustained our earnings momentum in the first quarter 1Q Net Income Equity Earnings -8% +32% 5.5 1Q2014 Net 5.0 +19% 2.5 1Q2015 Divestment 1.8 Gain from +39% 1.9 1.9 +40% Stream 1.6 1.3 0.9 3.6 0.6 0.6 0.1 0.1 2014 2015 Robust growth driven by the solid performance of banking
Slide 14: Capital expenditures: P21B parent capex in 2015
CAPITAL EXPENDITURES We earmarked ₱21B in parent company capex in 2015, mainly for power and infra investments, ₱1.4B of which has been spent so far FY2015 Planned AC Parent Capex 1Q2015 AC Parent Capex Spent 7% 10% Others 15% Others 13% 18% ₱21.4B ₱1.4B 71% 65% | 14
Slide 15: Healthy balance sheet and debt profile
FINANCIAL MANAGEMENT Our balance sheet and debt profile continues to be healthy Schedule of Debt Maturities* (₱ billions) As of year-end As of March ₱ millions 2014 31, 2015 30 Includes debt (except ratios) (Audited) (Unaudited) PHP with cash USD collateral, PARENT exchangeable 20 and callable Gross
Slide 16: Forward-looking statements
Statements in this presentation describing the Company’s objectives, projections, estimates, expectations may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors th