Ayala Corp. · PSE:AC
Ayala — Investor Presentation (October 2014)
26 slides from Ayala's investor presentation, October 2014
Slide 1: Investor Presentation October 2014
I N V E S T O R P R E S E N TAT I O N October 2014
Slide 2: Key Messages
KEY MESSAGES Ayala is well-positioned to capture sustained momentum amidst Philippine economic growth Ayala will continue to rebalance its portfolio to optimize earnings growth and value – overall, we remain on track against our goals Core businesses remain significant driver of earnings; new bu
Slide 3: The Philippines remains on a strong economic trajectory
The Philippines remains on a strong economic trajectory PHILIPPINE GDP GROWTH • Economic growth momentum continuing to 7.6% 6.5% - 7.5%* be sustained 6.8% 7.2% 6.4% 5.7% Resilient and sustainable consumption-led 3.9% growth Accelerated public spending on infrastructure projects 2015 may see fa
Slide 4: Ayala Group Overview
Ayala Group Overview CORE BUSINESSES: INTERNATIONAL: GROWTH PLATFORMS: Growth and Expansion Improving Profitability Scale-Up 49.0% 57.0% Leading and most diversified Growing portfolio of property developer in the 100.0% renewable and country Among the top 20 EMS conventional power companies in the w
Slide 5: Active rebalancing of portfolio to optimize growth and value
Active rebalancing of portfolio to optimize growth and value Key Portfolio Movements: Timeline of Investments and Equity Commitments (US$) Won automated Submitted Supported Signed purchase fare collection ALI’s equity Expanded lone bid for agreement for project LRT 1 Established placement, ~20% of G
Slide 6: On track with goal to more than double net income and achieve mid-teen ROE by 2016
On track with goal to more than double net income and achieve mid-teen ROE by 2016 REPORTED NET INCOME (Billion Pesos) Non-core businesses to contribute 25.0 more than 10% of equity earnings 20.0 by 2016 15.0 12.8 Stable cash flows will allow higher 10.5 dividends in the future 9.2 10.0 Howeve
Slide 7: Core businesses to remain significant driver of earnings
Core businesses to remain significant driver of earnings Primary message Key risk Demand drivers remain upbeat across Supply situation, especially residential and recurring businesses in residential market Strong growth of core banking business Increased competition with combined with improving effi
Slide 8: We have an aggressive investment plan to scale up growth platforms
We have an aggressive investment plan to scale up growth platforms Investments (US$ Billions) 2007-2011 2012-2016 4X > 2.0 Scaling up new growth platforms Power: earmarked ~US$1B to assemble 1,000+MW of renewable and conventional power assets Transport Infrastructure: allotted ~US$200M for PPP
Slide 9: Committed US$430M of equity to-date on conventional and renewable technologies
NEW GROWTH PLATFORMS IN RAMP-UP PHASE Committed US$430M of equity to-date on conventional and renewable technologies, with 92% spent COMMITTED CAPACITY ATTRIBU- EQUITY EST. STATUS (MW) TABLE INVESTMENT ECONOMIC MW (US$) OWNERSHIP T H E R M A L South Luzon Thermal Energy 270 135 90M 50% Target start
Slide 10: Prepared to commit another ~US$600M in equity investments in power
NEW GROWTH PLATFORMS IN RAMP-UP PHASE Prepared to commit another ~US$600M in equity investments in power in the next 12 months ATTRIBU- EQUITY CAPACITY EST. ECONOMIC PIPELINE TABLE INVESTMENT STAT U S (MW) OWNERSHIP MW (US$) years GN Power Kauswagan 600 600 300M 100% Target financial close Q42014 (M
Slide 11: Portfolio of sizable transport infrastructure projects with P14.5B equity requirement
NEW GROWTH PLATFORMS IN RAMP-UP PHASE We have built a portfolio of sizable transport infrastructure projects with total equity requirement of P14.5B spread over the next 4 years EQUITY AYALA COMPLETION PROJECT PROJECT COST ASSUMED D/E REQUIREMENT OWNERSHIP DATE FROM AYALA Daang Hari Connector Road P
Slide 12: We maintain a healthy balance sheet with sufficient funding capacity
BALANCE SHEET AND DEBT PROFILE We maintain a healthy balance sheet with sufficient funding capacity As of As of In billion pesos 12.31.2013 6.30.2014 (Audited) (Unaudited) 62% of debt in pesos; PARENT 55% with fixed rates Gross Debt (ex-preferreds) 70,950 105,608 Blended cost of 4.2% Cash 25,563
Slide 13: Ayala has funding capacity to support these sizable investments
POTENTIAL SOURCES AND USES OF CASH, 2013-2016 Ayala has funding capacity to support these sizable investments (Billion Pesos) (45) (76) (76) Est. Est. Interest Net Debt- Coverage Equity Ratio Ratio * 45% 1.63x 99 Others (54) BU dividends GAE Cash dividends Divestments, capital returns, Interest & fi
Slide 14: 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
Slide 15: Appendices
XM ayala APPENDICES
Slide 16: Demand drivers remain upbeat across residential and recurring businesses
CORE BUSINESSES TO REMAIN SIGNIFICANT DRIVER OF EARNINGS Demand drivers remain upbeat across residential and recurring businesses Residential and recurring businesses (mall, office and hotels & resorts) are aligned with favorable economic forecasts Ayala Land keeps a tight watch on: 3.9 million
Slide 17: Strong growth of core banking business combined with improving efficiency
CORE BUSINESSES TO REMAIN SIGNIFICANT DRIVER OF EARNINGS Strong growth of core banking business combined with improving efficiency Strong emphasis on core business of interest income 1H14 net loans (+23%); net interest income (+15%); Ayala Land keeps a BPI remains vigilant of: deposits breached
Slide 18: Steady top-line growth coupled with the tapering of accelerated depreciation charges
CORE BUSINESSES TO REMAIN SIGNIFICANT DRIVER OF EARNINGS Steady top-line growth coupled with the tapering of accelerated depreciation charges Mobile data and broadband will continue to be a key growth area Globe is gearing Ayala Land keepsupa to tight Higher data demand from corporate clients gi
Slide 19: Continued growth in East Zone and ramp-up of non-East Zone businesses
CORE BUSINESSES TO REMAIN SIGNIFICANT DRIVER OF EARNINGS Continued growth in East Zone and ramp-up of non-East Zone businesses Continued expansion in the East Zone MWC Ayalais cognizant Land keeps of these a tight risks: on: watch Increasing presence in adjacent Rizal province (1M in population)
Slide 20: International businesses sustaining profitability and driving more value
INTERNATIONAL BUSINESSES ARE SUSTAINING PROFITABILITY AND DRIVING MORE VALUE Robust earnings trajectory fueled by transition to higher value end-to-end offering • Tapped high-margin, high growth niche markets in telecom, automotive electronics and storage device markets • 1H14 earnings jumped fivefo
Slide 21: Scaling up product portfolio across Honda, Isuzu and Volkswagen brands
NEW GROWTH PLATFORMS IN RAMP-UP PHASE Scaling up product portfolio across Honda, Isuzu and Volkswagen brands Sustained momentum in auto industry on favorable demand drivers: Ayala Ayala Auto Landcontinues to keeps a tight Increased purchasing power monitor: watch on: Low interest rates Aggre
Slide 22: Won the Automated Fare Collection System (AFCS) Project
TRANSPORT INFRASTRUCTURE PORTFOLIO Won the Automated Fare Collection System (AFCS) Project Project aims to create a dominant platform for prepaid electronic payments Project Cost: P1.7B (Rail component) AF Consortium Ayala Group Project Overview: Contactless payment system for Metro BPI Card F
Slide 23: Submitted lone bid for LRT 1 Cavite Extension Project
TRANSPORT INFRASTRUCTURE PORTFOLIO Submitted lone bid for LRT 1 Cavite Extension Project Project will serve nearly 4 million residents in Southern Metro Manila and adjacent provinces Project Cost: P63.5B Light Rail Manila Consortium (50% from concessionaire) Project Overview: Extension of exis
Slide 24: LRT 1 Cavite Extension Project
TRANSPORT INFRASTRUCTURE PORTFOLIO LRT 1 Cavite Extension Project 24
Slide 25: Submitted highest complying bid for Cavite-Laguna Expressway (CALAX) Project
TRANSPORT INFRASTRUCTURE PORTFOLIO Submitted highest complying bid for Cavite-Laguna Expressway (CALAX) Project CALAX will unlock land values and catalyze development within its corridor Project Cost: P35B Team Orion Project Overview: Construction of 44.6-km tollroad linking the Cavite (26.7 k
Slide 26: Cavite-Laguna Expressway Project
TRANSPORT INFRASTRUCTURE PORTFOLIO Cavite-Laguna Expressway Project 26