Ayala Corp. · PSE:AC
Ayala — FY2014 Earnings Presentation
17 slides from Ayala's earnings presentation, Mar 10, 2015
Slide 1: Analysts' Briefing FY2014
A N A LY S T S ’ B R I E F I N G FY2014 MARCH 10, 2015 | 0
Slide 2: FY2013 vs FY2014 net earnings and net income growth
FY2013 VS FY2014 Equity in net earnings and consolidated net income posted above-40% growth driven by ALI, GLO, IMI, and divestment gains from Stream Equity in Net Earnings (₱ millions) Consolidated Net Income (₱ millions) +42% 24,882 +46% 18,609 17,574 12,778 ROCE ROCE 9.8% 12.2% 2013 2014 2013 201
Slide 3: 4Q2013 vs 4Q2014 equity earnings and net income
4Q2013 VS 4Q2014 Fourth quarter equity earnings and consolidated net income finished strong on lower depreciation charges from Globe 4Q Equity in Net Earnings (₱ millions) 4Q Consolidated Net Income (₱ millions) +68% +94% 6,065 4,556 3,620 2,346 4Q13 4Q14 4Q13 4Q14 | 2
Slide 4: Equity earnings from listed businesses grew 28%
2013 VS 2014 Equity earnings from listed businesses grew 28% on sustained uptrend of Ayala Land, Globe and IMI 2014 Equity in Net Earnings by Business Unit (₱ millions) +3% +28% 8,568 8,301 2013 2014 7,112 5,547 +154% 4,007 +15% 2,578 2,244 +202% 1,890 1,580 727 241 -339 Others | 3
Slide 5: Ayala Land 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 (₱ millions) KEY HIGHLIGHTS Property development revenues (+21%) to ₱65.9B +26% Residential revenues (+26%) on new booki
Slide 6: BPI 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 (₱ millions) KEY HIGHLIGHTS Net interest income grew 15% to ₱34.8B on strong loan growth and deposit mix Loan portfolio posted a record 27% growth
Slide 7: Globe net income expanded almost threefold
SUMMARY OF BUSINESS UNIT PERFORMANCE Globe's net income expanded almost threefold on strong topline growth and lower overall depreciation costs KEY HIGHLIGHTS Core Net Income (₱ millions) 25% 14,488 Net income grew 2.7x on strong topline growth and lower overall 11,617 depreciation costs; core net
Slide 8: MWC profit steady on billed volume growth
SUMMARY OF BUSINESS UNIT PERFORMANCE MWC profit steady on strong billed volume growth and higher contribution from new businesses Net Income (₱ millions) KEY HIGHLIGHTS Revenues up 3% to ₱16.4B due to higher billed volume across all businesses (except Thu Duc) (+12%) East Zone revenues slightly
Slide 9: IMI threefold increase in earnings
SUMMARY OF BUSINESS UNIT PERFORMANCE IMI registered a threefold increase in earnings, backed by robust growth in telecom, automotive, and storage device segments Net Income (₱ millions) KEY HIGHLIGHTS Revenues expanded 13% to ₱37.7B, as IMI outpaced EMS ~3.0x industry growth of 6% 1,294 China op
Slide 10: LiveIt gains from Stream sale; Ayala Automotive rollout
SUMMARY OF BUSINESS UNIT PERFORMANCE In other businesses, LiveIt results were boosted by gains from the Stream sale; Ayala Automotive continues to roll out its Volkswagen brand Net Income (₱ millions) KEY HIGHLIGHTS 32.0x 1,859 Posted gross gains from sale of Stream of ₱2.3B in 1Q2014 and a net ga
Slide 11: New growth platforms: Power portfolio
NEW GROWTH PLATFORMS: POWER AC Energy continues to ramp up our power portfolio, committing over $700M of equity in conventional and renewable technologies to-date Net Income (₱ millions) Power Portfolio CAPACITY EQUITY Est. STATUS (MW) Economic Ownership T H E R M A L GN Power $165M 660 Under rehabi
Slide 12: Transport infrastructure portfolio
TRANSPORT INFRASTRUCTURE PORTFOLIO We have built a sizable portfolio of infrastructure projects; equity requirement of $250M Muntinlupa-Cavite Expressway (MCX) Automated Fare Collection System (AFCS) LRT 1 Cavite Extension Project Organization hired; in push- Work in full swing at LRT 2; CEO a
Slide 13: Capital expenditures: Groupwide 2015 capex
CAPITAL EXPENDITURES Total Groupwide capex for 2015 is ₱185B, primarily for real estate and telecom investments 2014 Actual Group Capex 2015 Planned Group Capex 7% 8% 14% 8% 20% 18% 3% Others 3% 7% 3% Others 54% 55% ₱152B ₱185B | 12
Slide 14: Parent company capex for 2015
CAPITAL EXPENDITURES We earmarked ₱21B in parent company capex in 2015, mainly for power and infra investments 2014 Actual AC Parent Capex 2015 Planned AC Parent Capex 5% 3% 15% 40% 30% 62% 32% 13% ₱37.5B ₱21.4B | 13
Slide 15: Fundraising: $1.3 billion raised in 2014
FUNDRAISING In 2014, we raised a total of $1.3 billion through various debt and equity issuances Capital raising activities Exchangeable bonds Loan drawdowns $300 $425 AC $300M Exchangeable Bonds Best Philippine Deal of 2014 $300 $275 Preferred shares Equity placement $1.3 billion raised in 2014 t
Slide 16: Financial management: healthy balance sheet and debt profile
FINANCIAL MANAGEMENT Our balance sheet and debt profile continues to be healthy Key Financial Metrics Schedule of Debt Maturities* (₱ billions) As of year- As of year- (₱ billions) end 2013 end 2014 30 (Audited) (Unaudited) PHP USD PARENT 20 Gross Debt* 70,950 100,988 Cash 25,563 48,282 10 Net Debt*
Slide 17: Key Takeaways
Key Takeaways • On track to achieve ₱20B in net income this year, ahead of 2016 strategic goals • Sustained overall economic environment expected for 2015, supporting growth objectives of BUs • Continued uptrend across business sectors, particularly real estate, telecom, and electronics manufacturin