Aboitiz Equity Ventures - Amazon S3 › ... · Aboitiz Equity Ventures Second Quarter / First Half...

Aboitiz Equity Ventures

Second Quarter / First Half 2016Financial & Operating Results

28 July 2016

2

AGENDA

• Review of Business Units

• Power

• Banking & Financial Services

• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

3

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

1,729 1,783

6,418

8,121

1H2015 1H2016

4

Net income up driven by the generation segment

24%

FINANCIAL HIGHLIGHTS

NET INCOME (in Php million)

DistributionGeneration AP Parent & Others

9,958EPS = P1.35

+27%

+3%

8,030EPS = P1.09

851 932 916

4,189 3,932

2,844

1Q2016 2Q2016 2Q2015

QUARTERLY BREAKDOWN

3,683

4,9415,016 34%1%

5

Core net income up on higher sales from Coal and Large Hydro Units


CORE NET INCOME (in Php million)


1,729 1,783

6,581 8,196

1H2015 1H2016

9,827EPS = P1.34

20%

+25%

+3%

8,172EPS = P1.11

Non-Recurring Items1H2015 1H2016 1Q2016 2Q2016 2Q2015

AP Parent 21 205 (15) 220 22

AP -Gen (163) (74) 257 (332) (176)

Total Gains/(Losses) (143) 131 242 (112) (154)

851 932 916

3,9324,264

3,021

1Q2016 2Q2016 2Q2015

QUARTERLY BREAKDOWN

3,837

5,0534,774

32%6%

6

EBITDA growth driven by Therma South


BENEFICIAL EBITDA (in Php million)

2,676 2,760

13,368 16,103

1H2015 1H2016

18,969

+20%

+3%

16,102

18%


1,325 1,435 1,411

8,096 8,007

6,129

1Q2016 2Q2016 2Q2015

QUARTERLY BREAKDOWN

7,571

9,4439,526 25%1%

7

Balance sheet continued to be strong with low gearing

FINANCIAL CONDITION

YE2015 1H2016 YE2015 1H2016

Cash and Equivalents 13,841 11,127 51,098 56,663

Investments and Advances 70,373 70,762 22,552 22,622

Total Assets 85,574 83,357 242,489 262,012

Total Interest Bearing Debt 9,911 9,917 114,612 131,578

Total Liabilities 22,613 22,599 140,876 162,961

Net Debt - - 63,514 74,915

Total Equity 62,962 60,758 101,614 99,051

Current Ratio 1.2x 1.0x 3.1x 2.9x

Net Debt to Equity -0.1x -0.0x 0.6x 0.8x

PARENT CONSOLIDATEDBALANCE SHEET

(in million pesos)

8

Capacity sales growth driven by Therma South

OPERATING HIGHLIGHTS: GENERATION

158 113

557 567

9441,174

136166

1H2015 1H2016

Capacity Sales Breakdown by Profile (MW)

Spot Market Energy Contracts

Capacity Contracts Ancillary

2,0201,795

Capacity Sold Factor

Fuel Group 1H15 1H16Change in % points

MINI HYDRO 31% 26% -5

LARGE HYDRO 60% 70% 10

SNAP Magat 40% 53% 13

SNAP Benguet 89% 96% 7

GEOTHERMAL 77% 77% –

COAL 95% 91% -4

Therma Luzon 94% 88% -6

Therma South 95% -

OIL 97% 95% -2

82% 82%CapacitySold Factor

13%

9

Volume growth driven by the Coal and Large Hydro Business Units


Fuel GroupBeneficial

Total Energy Sales(GWh)

BeneficialAncillary Sales

(GWh)

1H15 1H16 YoY Chg 1H15 1H16 YoY Chg

MINI HYDRO 206 208 1%

LARGE HYDRO 319 373 17% 454 555 22%

SNAP Magat 133 208 56% 180 209 16%

SNAP Benguet 186 165 -11% 274 346 26%

GEOTHERMAL 1,342 1,347 –

COAL 2,900 3,941 36%

Therma Luzon 2,418 2,469 2% 136 169 24%

Therma South - 944 -

OIL 944 1,012 7%

AP – GENERATION 5,709 6,889 21% 590 724 23%

10

MAGAT’S WATER LEVEL VS. RULE CURVE (in MASL)

La niña expected to emerge towards the end of third quarter



11

Average selling price dropped amid declining fuel cost


In Peso/kWhBilateral

ContractsSpot Market

Weighted Average

Ancillary

1H15 1H16 1H15 1H16 1H15 1H16 1H15 1H16

AP GENERATION GROUP 4.48 4.18 4.93 3.49 4.53 4.13 2.02 1.91

SNAP Magat 5.09 4.82 7.15 5.35 5.36 4.88 2.17 2.38

SNAP Benguet 4.76 4.65 9.50 6.69 5.01 4.81 2.12 1.69

Therma Luzon* 3.87 3.71 5.33 3.58 4.03 3.70 1.63 1.78

Therma South - 4.87 - - - 4.87

APRI** 4.43 4.02 4.13 2.81 4.35 3.77

Note: Fuel cost and purchased power:*TLI: P1.71/kWh (1H2016) versus P1.56/kWh (1H2015)**APRI: P1.46/kWh (1H2016) versus P1.69/kWh (1H2015)

OPERATING HIGHLIGHTS: DISTRIBUTION

12

BENEFICIAL POWER SALES (GWh)

BENEFICIAL GWH SALES GROWTH(BY CUSTOMER TYPE)

PEAK DEMAND (MW)

8%

7%

7%

11%

6%

Power sales grew across all customer segments

OPERATING HIGHLIGHTS: DISTRIBUTION

2,790 3,142 3,322 3,606 3,727 3,934 4,076 4,480 4,759

2,338 2,512

2007 2008 2009 2010 2011 2012 2013 2014 2015 1H2015 1H2016

584

1,754

2,338

646

1,865

2,512

Residential Commercial &Industrial

Total Power Sales

1H2015 1H2016

354 462

25 99 102

22 30 26

1,119

359

524

26 117 103

21 30 28

1,209

DavaoLight

VECO CotabatoLight

SFELAPCO SEZ MEZ BEZ LEZ Total

1H2015 1H2016

13

SYSTEMS LOSSGROSS MARGIN / KWH SALE

Gross margin down brought by Davao Light’s shift in supply mix

OPERATING HIGHLIGHTS: DISTRIBUTIONOPERATING HIGHLIGHTS: DISTRIBUTION

2%

1% 1%

3%

7%

6%

7%8%

1% 1% 1%

3%

5%

7% 7%7%

1.44

1.60

1.77

1.71

1.61

1.50

2011 2012 2013 2014 2015 1H2016

1H2016

1H2015

Gov’t Cap – 8.50%

SFELAPCOSEZ Davao Light VECO CotabatoLight

MEZ BEZLEZ

14

Aseagas – 8.8 MW

AboitizPower acquired Aseagas - a biomass plant

Source: Official Gazette of the Republic of the Philippines

PROJECT UPDATES

15

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

16

Net income grew on strong recurring income

Attributable to Parent Bank’s Stockholders

NET INCOME(in Php million)


1,523

2,307

2Q2015 2Q2016

3,002

3,919

1H2015 1H2016

51%

31%

4.68% 5.13%

1.27% 1.28%

3.41% 3.85%

YTD Jun2015

YTD Jun2016Ave. Yield Ave. Cost NIM

5,576

7,273

1H2015 1H2016

17

Net interest income surged due to loan expansion and improved margins

30%

NET INTEREST INCOME(in Php million)

44bps


YTD June 2015 YTD June 2016

NET INTEREST MARGIN EARNING ASSETS(ADB In Php billion)

13%

195 194

136 182 6

5 337 381

89.1% 89.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

-

100

200

300

400

500

600

YTD Jun 2015 YTD Jun 2016Liquid Assets Loans

Others Share to Net Assets

+34%

68.4 77.3

24.4 27.2 51.4

81.7 144.3

186.2

YTDJun 2015

YTDJun 2016

Retail Commercial Corporate

18

Double-digit growth across all segments

CREDIT PORTFOLIO(ADB in Php billion)


29%

+59%

+13%

+11%

19

Non-interest income fueled by growth in fees and trust fund income

NON-INTEREST INCOME(in Php million)


904 1,005

184 316 217

430 1,305

1,750

2Q2015 2Q2016

Ser. Charges, Fees and Com. Trading and FX Gain-net Miscellaneous

1,783 1,979

645 284

629 805

3,058 3,068

1H2015 1H2016

+72%

+11%

+28%

+11%

+2x

-56%34%

20

Operating expenses rose on business expansion

OPERATING EXPENSES(in Php million)


1,902 2,289

192

280 104

114 2,198 2,683

2Q2015 2Q2016

Core Bank Taxes (GRT & DST) Subsidiaries

3,874 4,546

411

521 205

186 4,490

5,252

1H2015 1H2016

+46%

+20%

+27%

+17%

+10%

-9%

22%

17%

TOTAL DEPOSITS(ADB in Php Billion)

21

CASA deposits sustained double-digit expansion


17% +17%

+18%

CASA DEPOSITS(ADB in Php Billion)

15%240 279

41 45 281 324

YTDJun 2015

YTDJun 2016

UnionBank Subsidiaries

+16%

+10%

89 104

11 13

103 120

36.5% 36.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

-

20

40

60

80

100

120

140

160

YTDJun 2015

YTDJun 2016

Peso FCDU Subsidiaries Share of CASA to Total

22

Capital ratios remained healthy


CAPITAL ADEQUACY RATIOSSolo Basis

12.8% 12.8%

16.6%16.3%

1H2015 1H2016

Tier 1 Capital Ratio Total Capital Adequacy Ratio

23

Profitability ratios improved on strong quarter results


Return on Equity

Return on Average Assets

Cost to Income Ratio

10.8%

13.2%

1H2015 1H2016

1.6%1.8%

1H2015 1H2016

52% 51%

1H2015 1H2016

24

UnionBank outperforming PSE and Financial indices

REBASED STOCK PERFORMANCE3/31/2015-3/31/2016

70%

75%

80%

85%

90%

95%

100%

105%

110%

UnionBank PSEi Financial Index

25

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

3,863 3,224

4,677 5,776

1,886 1,578

960 997

1H2015 1H2016

26


Feeds PhilippinesFlour FarmsFeeds Vietnam

11,57611,385

REVENUE(in Php million)

2%

1,551 1,673 1,783

2,702 3,074 2,470

773 806

995 473

524 509

1Q2016 2Q2016 2Q2015

6%

5,4986,077

5,75711%

27


3,863

3,224

1H2015 1H2016

Flour

17%

4,677 5,776

1H2015 1H2016

Feeds Philippines

24%

1,886 1,578

1H2015 1H2016

Feeds Vietnam

16%

960 997

1H2015 1H2016

Farms

4%


612 634

127 64

524 719

270 213

1H2015 1H2016

28



1,6301,533

EBITDA(in Php million)

6%

304 331 306

335 384

286

22

42

70

91

122

147

1Q2016 2Q2016 2Q2015

9%

751879

80817%

29


612 634

1H2015 1H2016

Flour

524 719

1H2015 1H2016

Feeds Philippines

37%

127

64

1H2015 1H2016

Feeds Vietnam

49%

270 213

1H2015 1H2016

Farms


4%

21%

357 366

100 45

321 436

131 59

1H2015 1H2016

30



906909


162 204 178

203

233

175

14

31

55 20

39 71

1Q2016 2Q2016 2Q2015

5%

399

507481

27%0.3%

31


357 366

1H2015 1H2016

Flour

321 436

1H2015 1H2016

Feeds Philippines

36%

100

45

1H2015 1H2016

Feeds Vietnam

55%

131

59

1H2015 1H2016

Farms


3%

55%

112,661 119,420

4,023

1H2015 1H2016

Export Domestic

32

OPERATING HIGHLIGHTS – Flour Division

10%

123,443

857 653

148 123

1H 2015 1H 2016

Average Selling Price Gross Profit Per Bag

Sales Volume (in Tons)

Average Selling Prices and Gross Profit (Php|Bag)

175,211 207,621

90,118

81,337

1H 2015 1H 2016Volume: Philippines Volume: Vietnam

265,328 288,958

33

OPERATING HIGHLIGHTS – Feeds Division

9%

20,930 19,411

2,883 2,380

1H 2015 1H 2016

Price/MT IOIC/MT

23,162 23,555

5,313 5,491

1H 2015 1H 2016

Price/MT IOIC/MT

Fee

ds

Ph

ilip

pin

es

Feed

s V

ietn

am

Sales Volume (in Tons)

Average Selling Prices andIncome Over Ingredient Cost (Php|Mt)

34

OPERATING HIGHLIGHTS – Farms Division

8,301 9,334

8,700

11,900

1H 2015 1H 2016Sales Volume ('000 Kilos) Ave Sow Level (heads)

12%

112 100

29 17

1H 2015 1H 2016

Average Selling Price Gross Profit Per Kilo

Sales Volume (in ‘000 Kilos)and Ave Sow Level

Average Selling Prices andGross Profit (Php|Kg)

35

PROJECT UPDATES

Project

Updates

PROJECT UPDATES - FEEDMILL

36

100%

ILIGANAnimal Feeds

+20TPH

APR 2016

100%

VIETNAMAqua Feeds

+20TPH

APR 2016

100%

TARLACAnimal Feeds

+20TPH

JUL 2016

PROJECT UPDATES - FARM

37

100%

GROWFIN

FARM 8

MAR 2016

99%

BREEDER

FARM 2

AUG 2016

86%

NURSERY

FARM 2

OCT 2016

PROJECT UPDATES - FARM

38

90%

LAYER

FARM 3/4

JUL 2016

100%

EGG

HOUSE

JUL 2016

55%

GROWFIN

FARM 9

AUG 2016

Project Pipeline

Investment in New Meat Processing plant to support growth in farms business

6,200

8,360

14,600

sowlevel

2012 2014 2017

270,000Market Hogs

Per year

MEATSLIVE HOGSFARMS MEAT PROCESSING

PLANT

Triple A slaughter & meat

fabrication facility

Php 700M investment

180 heads per hour capacity

Operational July 2018

PROJECT PIPELINE

39

40

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

577 621

581330

60

69

1,218

1,020

1H 2015 1H 2016


Residential Industrial Commercial & Others

Revenues down on lower industrial sales


41

16%

185 189

369

699136

213

690

1,101

1H 2015 1H 2016

RESIDENTIAL SALES(in Php million)

Condo H&L Lots

Residential sales recorded a 59% upswing at 1.1B; house & lot products in the mid and high-end markets were top growth drivers


42

59%

213

85

1H 2015 1H 2016

NIAT(in Php million)

278

137

1H 2015 1H 2016


EBITDA and NIAT drop driven by organization expansion and systems enhancement


43

50%

60%

OPERATING HIGHLIGHTS

44

Residential

Sales performing consistently well and targets exceeded

Projects under construction continue to show progress and are moving towards completion

Commercial

Healthy occupancy rates overall

The Outlets at Pueblo Verde consistently increasing foot traffic due to more retail and dining options at the expansion area

Industrial

11.4 hectares acquired for future expansion

5.4 hectares sold


45

Mandaue City’s new dynamic center

Residential (including Avida), an Ayala Mall bearing the first Landmark in Cebu, offices, family-friendly parks, retail selections

30-meter wide tree-lined, pedestrian-only street spanning the whole estate and take visitors through different districts, each with a distinct character and experience

PROJECT UPDATES

46

Final planning phases for

3 new projects in Luzon

2 new projects in Cebu

PROJECT UPDATES

47

Land AcquisitionProject DevelopmentOther Initiatives

2016 CAPEX targeted at 4.6B

29%

65%

6%

Q2 2016 CAPEX at 925Mn

2%

89%

9%

48

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

● Strong 1H cement demand supported by:○ Growth in commercial and other non-residential spaces ○ Sustained demand in the residential sector○ Sustained government infrastructure spending

●Contribution to AEV amounts to about P870 million

●Demand expected to remain strong in 2H 2016

49

Strong cement demand experienced


50

300 MLD Davao Bulk Water Project

One of the country’s largest private bulk water supply project

100% powered by renewable energy

Partnership with JV Angeles Construction Corporation

PROJECT UPDATES

51

AEV + SMRT Int’l Pte. Ltd =

Aboitiz-SMRT Transport Solutions Consortium

LRT 2 & Masinag Extension*Regional Bundled AirportsAEV + VINCI Airports =

Maya Consortium

PPP Projects of Interest

*O&M

PROJECT UPDATES

52

AGENDA


• Power


• Food

• Land

• Infrastructure

• AEV Financials

• Q&A

53


2Q2015 2Q2016 % Ch 1H2015 1H2016 % Ch

Revenues 28,042 29,800 6% 55,072 57,537 4%

Equity Earnings 1,133 2,161 91% 2,242 4,162 86%

EBITDA 8,793 11,629 32% 18,201 22,795 25%

Net Income 3,735 5,456 46% 7,821 10,505 34%

Core Net Income 3,854 5,541 44% 7,931 10,405 31%

CONSOLIDATED PROFIT & LOSS(in Php million)

First half finished with a stronger financial performance

6,173 7,656

867

1,911

885

885

868

213

85

(317) (899)

10,505EPS = P1.89

34%7,281

EPS = P1.41

1H2015 1H2016

54

Power Financial Services Food Parent & OthersReal Estate Infrastructure



Power contribution down to 67% YTD; cement continues to beef up

3,857 3,799

2,832

833 1,078

485

389 496

469

390 477 50 35

133

(469) (430) (183)

3,735

8%

5,0495,456

46%

1Q2016 2Q2016 2Q2015

3,671 3,885

2,950

833 1,078

485

389

496

469

390

477 37

35

133

(456) (430) (183)

3,854

14%

4,863

6,283 7,555

867

1,911

885

885

868

213

85

(317) (899)

10,405EPS = P1.87

31%7,931

EPS = P1.43

1H2015 1H2016

55

Power Financial Services Food Parent & OthersReal Estate Infrastructure


CORE NET INCOME (in Php million)

5,54144%

Non-Recurring Items1H2015 1H2016

Parent (0.1) (0.0)Power (109.6) 100.2Total Gains/(Losses) (109.7) 100.2

1Q2016 2Q2016 2Q2015

Non-Recurring Items1Q2016 2Q2016 2Q2015

Parent (0.3) 0.3 0.1Power 186.1 (85.8) (118.4)Total Gains/(Losses) 185.8 (85.5) (118.3)

18,201

15,505

22,795

20,926

EBITDA (Consolidated) EBITDA (Beneficial)

56

1H2015 1H2016

25%



EBITDA increased on the back of new entrants and stronger results from Power and Banking

35%

32,000 31,748

YE2015 1H2016

7,056

9,801

YE2015 1H2016

57

Parent net debt decreased by P3.0 bn

Cash & Equivalents

Long-term Debt

39%

1%

24,944 21,947

YE2015 1H2016


58

YE2015 1H2016 % Change

Cash and Cash Equivalents 63,582 72,692 14%

Total Assets 340,118 374,153 10%

Total Liabilities 193,133 216,974 12%

Total Equity 146,984 157,179 7%

Equity Attributable to Parent 118,220 129,197 9%

Book Value Per Share 21.28 23.24

Current Ratio 2.84x 2.74x

Debt to Equity 1.31x 1.38x

Net Debt to Equity 0.66x 0.68x


CONSOLIDATED BALANCE SHEET/KEY RATIOS(in Php million, except ratios)

Gearing remained benign

59

2Q2015 2Q2016 % Ch 1H2015 1H2016 % Ch

AboitizPower 2,832 3,799 34% 6,173 7,656 24%

UnionBank 484 1,096 126% 866 1,934 123%

Petnet - (19) n/a - (23) n/a

Pilmico 469 496 6% 885 885 0%

AboitizLand 133 35 -74% 213 85 -60%

Republic Cement - 478 n/a - 869 n/a

Parent & Others (183) (430) 135% (317) (900) 184%

Net Income 3,735 5,456 46% 7,821 10,505 34%

Core Net Income 3,854 5,541 44% 7,931 10,405 31%

Fresh income contribution from new businesses

EARNINGS CONTRIBUTION(in Php million)

ANNEX

60

AGENDA


• AboitizPower

• UnionBank

• Pilmico

• AboitizLand

• Republic Cement and Building Materials

• AEV Financials

• Q&A

Is there a better way?

61

Aboitiz Equity Ventures - Amazon S3 › ... · Aboitiz Equity Ventures Second Quarter / First Half...

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