Third Quarter / YTD September 2014 Financial & Operating...

Aboitiz Equity VenturesThird Quarter / YTD September 2014Financial & Operating Results29 October 2014

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

2

AGENDA




• AboitizLand


• AEV Financials

• Q&A

3

4

REVENUE (in million pesos)

FINANCIAL HIGHLIGHTS

5,570 5,879

5,659 5,967

968 1,369

9M2013 9M2014

Flour Feeds Farms

12,196 8%13,215

1,977 1,864 2,039 1,902

1,851 1,990 2,126

1,932

426 524 419

308

1Q2014 2Q2014 3Q2014 3Q2013

4,253 4,3784,142

5% 11%

QUARTERLY BREAKDOWN

4,584

5

EBITDA (in million pesos)


Flour Feeds Farms

666 771

543 433

309 470

9M2013 9M2014

1,6731,518 10%

327 230 214 192

130

127 176 187

135

190 145 80

1Q2014 2Q2014 3Q2014 3Q2013

591547

459

2% 17%

QUARTERLY BREAKDOWN

535

6

NET INCOME (in million pesos)


Flour Feeds Farms

348 413

434 282

149 247

9M2013 9M2014

942932

QUARTERLY BREAKDOWN

186 123 105 119

86

81 116 148

67

106 73 35

1Q2014 2Q2014 3Q2014 2Q2013

339309 302

5%1%

294

2%

7

OPERATING HIGHLIGHTS – Flour Division

167,948 167,965

9M2013 9M2014

Sales VolumeIn MT

829 875

144 134

9M2013 9M2014

Average Selling Prices and Gross Profit

Peso/bag

Average Selling Price Gross Profit

8

OPERATING HIGHLIGHTS – Feeds Division

222,842 229,373

9M2013 9M2014

Sales Volume In MT

Average Selling Prices and Income Over Ingredient Cost

Peso/MT

3%

23,244 23,590

5,415 5,218

9M2013 9M2014

Average Selling Price Income Over Ingredient Cost

9

OPERATING HIGHLIGHTS – Farms Division

8,430

10,880

9M2013 9M2014

Sales VolumeIn ‘000 kilos

Average Selling Prices and Gross Profit

Peso/kilo

29%

110 119

31 38

9M2013 9M2014

Average Selling Price Gross Profit

10

Gearing–upfor ASEAN 2015

VIETNAM

PHILLIPINES

INDONESIA

11

Forget about the BRICS, let’s go V.I.P.

2015 Growth: Vietnam, Indonesia & Philippines

12

Going ASEAN: Vinh Hoan FeedsV

IETN

AM • Acquired 70% stake of Vinh HoanFeeds (VHF), the 4th largest pangasuisaquafeeds producer in Vietnam.

• VHF supplies feeds to publicly-listedVinh Hoan Corp (VHC), the largestpangasuis exporter in Vietnam with a50K MT capacity. In 2013, it exportedUSD 155M worth of pangasius fillet inthe US and Europe.

• The remaining 30% stake will bebought in the next 5 years at a presetprice.

• 165K MT current feed mill capacity,expected to grow to 270K MT by2015.

13

Going ASEAN: Vinh Hoan Feeds

14

Going ASEAN: Vinh Hoan Feeds

15

Going ASEAN: Flour Exports

INDONESIA

Representative Office

IND

ON

ESIA

16

PHIL

IPPI

NES

17

FEED

S• Feedmill Expansion Iligan – Sep 2014 - Sep 2015

• Feedmill Expansion Tarlac – Nov 2014 – Nov 2015

• Inter-Island Pier 2 – Sep 2014 – Jul 2015

PROJECT UPDATES

18

• Farm Expansion 3 : Increase in sow level from 8,360 to 13,640 heads completed by Q2 2017Breeder Farm 2 – Nov 2014 – Jul 2016Offsite Nursery Farm 2 – Feb 2015 – Aug 2016Grow-Fin Farm 7 to 11 – Sep 2015 – Aug 2017

• Farms Expansion 4: Increase sow level to 25,340 by 2020FARM

SPROJECT UPDATES

19

PROJECT UPDATES

• Layer Farm 1 : Aug 2014 – Oct 2015• 160,000 Ready-to-lay Hens • 4.16M eggs a month

FARM

S

20

AGENDA




• AboitizLand


• AEV Financials

• Q&A

21

1,1471,832

7,339

5,005

3Q2013 3Q2014 9M2013 9M2014

Net IncomeIn million pesos

Net income dropped on lower trading gains notwithstanding robust growth in customer business

22

Net interest income sustained robust growth underpinned by the continuous expansion in earning assets

290360

89.1% 90.1%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

100

150

200

250

300

350

400

450

500

550

YTD Sept 2013 YTD Sept 2014

Earning AssetADB in billion pesos

% to Net Assets

6,913 8,368

9M2013 9M2014

Net Interest Income In million pesos

24%4.71% 4.27%1.51% 1.16%

3.20% 3.11%

Net Interest Margin

Average Yield Average Cost Net Interest Margin

9bps

YTD Sept 2013 YTD Sept 2014

21%

23

786 853

273 695

70

3240

253

3Q2013 3Q2014

Non Interest IncomeIn million pesos

Service charges, fees & commissionsFX gains/losses#REF!

Non interest income declined from exceptionally high level a year ago

32%

1,788 2,469

5,887

1,683

90

159

1,027

657

9M2013 9M2014

1,369

1,804

43%

8,792

4,968

+38%

-71%

+77%-36%

+9%

+3x

-96%+5%

24

244 275 224 291

18 32

1427

3Q2013 3Q2014 YTD Sept 2013 YTD Sept 2014

DepositsADB in billion pesos

UnionBank Subsidiaries

Deposits continues to exhibit strong growth

6782

6581

22

11

26.2% 27.2% 27.7% 25.8%

-150.0%

-130.0%

-110.0%

-90.0%

-70.0%

-50.0%

-30.0%

-10.0%

10.0%

30.0%

0

20

40

60

80

100

120


Peso CASA DepositsADB in billion pesos

34%238318

24%6682

+30%

+2x

+25%

262307

6984

22%

17%

+13%

+2x

+22%

25

15 14 15 14

20 36

1732

75

752

2

2220

20

20213

3

33

29

32

2931

1715

16

15


Credit Portfolio – Net of ProvisionsADB in billion pesos

Mortgage Salary Loans Auto LoansCredit Card Commercial Business LineCorporate Preferreds + Corp. bonds

Credit portfolio expansion driven by salary loans

109123

13% -6%

+7%

+5%

-29%

+2x

-7%

113127

12% -12%

+10%

-29%

+2x

-7%

26

Operating expenses dropped amidst business expansion

4,875 4,813

1,150 797

941 1,084

9M2013 9M2014

6,966 6,6944%

1,563 1,599

265 222 350 354

3Q2013 3Q2014

Operating ExpenseIn million pesos

Core Bank Taxes Subsidiaries

-1%

-31%

+15%

2,178 2,175

+2%

-16%

+1%

27

Key ratios reflected lower earning performance

20.4%

14.7%

9M2013 9M2014

Return on Equity

2.9%1.6%

9M2013 9M2014

Return on Average Asset

2.32.0

9M2013 9M2014

Revenue to Expense

28

Capital ratios remained above regulatory minimums

13.6% 13.6%

13.1% 13.0%

Sept 2013 Sept 2014

Capital Adequacy RatiosSolo Basis

CAR Common Equity Tier 1

29

70%

80%

90%

100%

110%

120%

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14

Re-based Stock Performance9/30/2013 – 9/30/2014

UnionBank PSEi PFINC

Source: Bloomberg, 9/30/13= 100

UBP shares trailing behind PSE and Financial indices

30

AGENDA




• AboitizLand


• AEV Financials

• Q&A

624982

270

1,546

29

57

YTD 3Q14 YTD 3Q14

Commercial

Industrial

Residential

922

2,585

31

Revenues breach P2B markWith LIMA sales exceeding target

REVENUES (in Php millions)

180%


32


397 373

452 542

387 413

YTD 3Q13 YTD 3Q14

Condo

House & Lots

Lots Only

Steady residential sales growth Driven by Condo and High End products

SALES (in Php millions)

7%1,236

1,327

33


163

571

897

YTD 3Q13 YTD 3Q14

NIAT (in Php millions)

227

648

YTD 3Q13 YTD 3Q14

EBITDA (in Php millions)

Surge in income Arising from new industrial income from Lima

And sale of its power business

185%

Gain on LUC Sale

*EBITDA excludes Gain on LUC sale

251%

1,468801%

34

HIGHLIGHTS

COMMERCIAL

• Good occupancy levels overall, with Pueblo Verde and The Outlets fully leased out

• The Outlets now with 30 brands available, continuing to build traffic

INDUSTRIAL Lima Land has exceeded sales target with

26 has sold

35

GROWTH PLANS ON TRACK

RESIDENTIAL

• Upcoming new phase for Priveya Hills in addition to previous launches

COMMERCIAL

Pre-leasing started for the expansion of The Outlets at Pueblo Verde

INDUSTRIAL

• Expanding LIMA to add 7-10 years of inventory

36

CEBU DISTRICT PROPERTY ENTERPRISE

• Planning for a mixed use development is ongoing

• Planned launch in 2015

CALA – X

• Awaiting decision


37

2014 CAPEX targeted at 5.4 B YTD 3Q14 CAPEX spent at 3.0 B

51%40%

9%63%

27%

10%

Land acquisitionProject development costOther project initiatives


38

AGENDA




• AboitizLand


• AEV Financials

• Q&A

39

NET INCOME (in million pesos)

2,429 2,482

12,102 10,776

9M2013 9M2014

13,202EPS = P1.79

8%

-11%

2%

14,280EPS = P1.94

DistributionGeneration AP Parent & Others

618 828 1,036 801

3,561 4,030

3,185 4,031

1Q2014 2Q2014 3Q2014 3Q2013

QUARTERLY BREAKDOWN

11% 11%

4,179

4,768 4,7674,256

40

CORE NET INCOME (in million pesos)


2,429 2,482

13,623 11,018

9M2013 9M2014

13,411EPS = P1.82

15%

-19%

2%

15,804EPS = P2.15

618 828 1,036 801

3,785 3,462 3,771 4,207

1Q2014 2Q2014 3Q2014 3Q2013

QUARTERLY BREAKDOWN

13% 3%

4,389 4,235

4,918

Non-Recurring Items1Q2014 2Q2014 3Q2014 3Q2013

AP Parent 12 (34) 54 24 AP- Gen (223) 568 (585) (175)

(211) 534 (532) (151)

Non-Recurring Items (YTD)9M2013 9M2014

AP Parent (3) 32 AP- Gen (1,520) (241)

(1,524) (209)

4,788

41

BENEFICIAL EBITDA (in million pesos)


1,108 1,379 1,685 1,305

7,531 6,900 6,844 7,106

1Q2014 2Q2014 3Q2014 3Q2013

QUARTERLY BREAKDOWN

3% 2%

8,608 8,239 8,353

3,932 4,172

22,149 21,275

9M2013 9M2014

25,368

2%

-4%

6%

25,904

8,522

42

OPERATING HIGHLIGHTS: GENERATION

532 553

736 926

227 193 77 109

9M2013 9M2014

Energy contracts Capacity contracts

Spot market Ancillary

ENERGY SALES BREAKDOWN (GWh) CAPACITY SALES BREAKDOWN (MW)

5,291 5,443

1 ,474 1,686

1 ,484 1 ,266

9M2013 9M2014

Energy contracts Capacity contracts Spot market

8,3958,248 1,7822%

Peso/kWh 9M2013 9M2014

Bilateral 4.73 5.05

Spot Market 4.54 5.61

1,57113%

43

OPERATING HIGHLIGHTS: LARGE HYDROS

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

44


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

45


ANCILLARY SERVICES – Nomination and Acceptance (GW/h)

Source: SNAP Magat & SNAP Benguet

46


SNAP MAGAT & SNAP BENGUET ANCILLARY SERVICES (at 100%)

Ancillary Revenues(in million pesos)

Accepted & Billed Capacity(in GW/h)

SNAP Magat

SNAP Benguet

531 481

422 561

9M2013 9M2014

2,319 981

1,628

1,616

9M2013 9M2014

2,597

9531,042

34% 9%3,947

9M2013 9M2014

Peso/kWh 4.14 2.49

47


149 337

388

238

9M2013 9M2014

ATTRIBUTABLE ENERGY SALES (GWh)

NET CAPACITY SOLD FACTOR

7%537 575 4.95 4.93

4.0 6

6.00

4.31 5 .41

9M2013 9M2014

BCQ WESM WTD Ave

SNAP Magat

Average Selling Prices (P/kWh)

5.0 6 4.76 5.21

7.77

5.17 5.92

9M2013 9M2014

BCQ WESM WTD Ave

SNAP Benguet


9M2013 9M2014

SNAP Magat 50% 44%

SNAP Benguet 58% 77%

BCQWESM

48

OPERATING HIGHLIGHTS: MINI HYDROS

489 527

9M2013 9M2014

ATTRIBUTABLE ENERGY SALES (GWh)

CONTRACTED ENERGY (GWh)

NET CAPACITY SOLD FACTOR

8%

9M2013 9M2014

171 105

201

0

172 103

218

22

Hedcor Sibulan HEDCOR LHC Hedcor Tudaya

61%

42%49%

0%

54%42%

53%59%

Hedcor Sibulan HEDCOR LHC Hedcor Tudaya

49

OPERATING HIGHLIGHTS: GEOTHERMAL

Energy Sales(in GWh)


Steam Vented (GWh)

AP RENEWABLES (Tiwi-Makban)

BCQ

WESM

Capacity Sold Factor*

1 ,562 1 ,655

566 481

9M2013 9M2014

0.4%2,127 2,136

81% 82%

4.67 4.72

3.72 4.21 4.42 4.61

9M2013 9M2014

BCQ WESM WTD Ave

Steam & Purchased Power -P1.37/kWh

Steam & Purchased Power -P1.96/kWh

191

27

9M2013 9M2014*Based on net sellable capacity of 400 MW

50

OPERATING HIGHLIGHTS: COAL

Attributable Energy Sales

ENERGY SALES (GWh)

CAPACITY SOLD FACTOR

1,074

3,577

1,121

4,239

762

3,415

1,109

3,967

STEAG TLI CEDC

6%

9M2013

9M2014

98%

88%

94%96%

93%

87%

STEAG TLI CEDC

51

OPERATING HIGHLIGHTS: COAL

4.27

5.28

4.41

BCQ WESM WTD Ave

4.13

5.92

4.39

BCQ WESM WTD Ave

THERMA LUZON (Pagbilao)

Energy Sales(in GWh)

BCQWESM

3,097 2,921

480 494

9M2013 9M2014

5%

9M2014 Average Selling PricePeso/kWh

Coal + Energy Fee + Purchased Power = P2.04/kWh*

9M2013 Average Selling PricePeso/kWh

Coal + Energy Fee + Purchased Power = P1.86/kWh

3,577 3,415

52

OPERATING HIGHLIGHTS: OIL

0 70 109 233

426

624 856

306 96 117

247

442

630

1,192

Therma Mobile EAUC CPPC SPPC WMPC Therma Marine

ENERGY SALES (GWh)

AttributableEnergy Sales

CAPACITY SOLD FACTOR

39%

9M2013

9M2014

68%

96% 100% 100% 91%100%

71%97% 100% 100% 90%

Therma Mobile EAUC CPPC SPPC WMPC Therma Marine

53

OPERATING HIGHLIGHTS: DISTRIBUTION

2,790 3,142 3,322 3,606 3,727 3,934 4,076 3,024 3,299

2007 2008 2009 2010 2011 2012 2013 9M2013 9M2014

PEAK DEMAND (MW)

BENEFICIAL POWER SALES (Gwhr)

BENEFICIAL GWH SALES GROWTH(BY CUSTOMER TYPE)

9%

816

2,208

3,024

833

2,466

3,299

Residential Commercial & Industrial Total Power Sales

9M2013 9M2014

9%

2%

12%

8%

304 433

25 94 91

21 33

999

330 459

23 97 96

22 28 21

1,078

Davao Light VECO CotabatoLight

SFELAPCO SEZ MEZ BEZ LUC Total

9M2013 9M2014

54

OPERATING HIGHLIGHTS: DISTRIBUTION

SYSTEMS LOSSGROSS MARGIN / KWH SALE

SFELAPCOSEZC Davao Light VECO CotabatoLight

MEZC BEZC

1.21 1.16

1.25

1.44

1.60

1.77 1.66

2008 2009 2010 2011 2012 2013 9M2014

* Year-to-date

*

9M2013

9M2014

Gov’t Cap – 8.50%

0%1%

1%

4%

0%

8% 8% 8%

2%

1% 1%

4%

7%

5%

8%8%

LEC

55

FINANCIAL CONDITION

BALANCE SHEET(In million Pesos)

Cash and Equivalents

YE2013

Total Assets

Total Interest Bearing Debt

Total Liabilities

Net Debt

Total Equity

Current Ratio

Net Debt to Equity

13,803

79,107

-

12,486

-

66,621

1.2x

0.2x

Investments and Advances 64,573

End Sept 2014

12,779

87,249

9,899

22,431

-

64,818

1.5x

0.04x

68,848

PARENT

YE2013

31,383

193,939

78,491

102,688

47,107

91,251

2.9x

0.5x

25,330

End Sept 2014

34,439

208,617

93,090

117,595

58,651

91,022

3.1x

0.6x

26,760

CONSOLIDATED

56

PROJECT UPDATE

FIVE YEAR PROJECT PIPELINE TO SECURE LONG-TERM GROWTH

LUZON GRID VISAYAS GRID MINDANAO GRID Sabangan Hydro 14 MW (2015)

Pagbilao Coal 400 MW* (2017)

Maris Canal 8 MW* (2017)

Subic Coal 600 MW**

Cebu Coal 300 MW (2017) Davao Coal 300 MW (2015)

Davao Coal 3rd Unit 150 MW

Manolo Fortich 68 MW (2016)

Notes:*AP has 50% stake**AP has 25% stake

57

AGENDA




• AboitizLand


• AEV Financials

• Q&A

58

Revenues

Equity Earnings

EBITDA

Net Income

Core Net Income

3Q2013 3Q2014

20,162 27,584

2,127 2,210

8,802 10,340

4,643 4,771

% Ch

37%

4%

17%

3%

4,733 5,176 9%

9M2013 9M2014

58,977 81,915

7,450 5,115

28,535 29,439

16,558 14,256

% Ch

39%

-31%

3%

-14%

16,431 13,876 -16%

CONSOLIDATED PROFIT & LOSS (In Million Pesos)

3,212 3,577 3,272 3,662

731 773

868 540 339 309 294 301 121

60 384 52 466 88

1Q2014 2Q2014 3Q2014 3Q2013

59

10,971 10,062

3,314 2,371

932

942

163

565

1,178

315

9M2013 9M2014

14,256EPS = P2.58

14%

16,558EPS = P3.00

4,868 4,617

3% 3%

4,771

QUARTERLY BREAKDOWN

4,643

Power Banking Food Parent & OthersReal Estate

NET INCOME (In Million Pesos)

60

Power Banking Food Parent & OthersReal Estate

Non-Recurring Items9M2013 9M2014

Parent 1,298 629 Power (1,171) (250) Total Gains/(Losses) 128 380

Non-Recurring Items1Q2014 2Q2014 3Q2014 3Q20 13

Parent 633 (6.9) 3.0 26

Power (162) 321 (409) (116)

Total Gains/(Losses) 471 314 (406) (90)

12,142 10,312

3,314

2,371

932

942

163

565

9M2013 9M2014

16%

13,876EPS = P2.51

16,431EPS = P2.98 QUARTERLY BREAKDOWN

3,374 3,256 3,682 3,778

731 773 868 540

339 309

294 301

121 60

384 52

(167)

62

1Q2014 2Q2014 3Q2014 3Q2013

4,3984,302

4,733

CORE NET INCOME (In Million Pesos)

5,17620% 9%

61

28,535 25,435

29,439

24,761

EBITDA (Consolidated) EBITDA (Beneficial)

9M2013 9M2014

3%

3%

EBITDA (In Million Pesos)

62

3,346 4,481

YE 2013 9M2014

9,191 9,191

YE 2013 9M2014

Parent net debt decreased by 19%

Cash & Equivalents

Long-term Debt

34%

5,845 4,710

YE 2013 9M2014

PARENT NET DEBT (In Million Pesos)

63

(In Million Pesos, except ratios)

Cash and Cash Equivalents

YE2013 9M2014 % Change

Total Assets

Total Liabilities

Total Equity

Book Value Per Share

Current Ratio

Debt to Equity

Net Debt to Equity

36,118

247,088

124,539

122,549

17.55

2.64x

1.02x

0.48x

43,196

269,756

141,787

127,969

18.58

2.82x

1.11x

0.54x

20%

9%

14%

4%

Equity Attributable to Parent 96,927 102,911 6%

CONSOLIDATED BALANCE SHEET / KEY RATIOS

Core Net Income

64

Aboitiz Power Corp.

Union Bank

Pilmico

3Q2013 3Q2014

3,662 3,272

540 868

% Ch

-11%

61%

Net Income

AboitizLand

4,733 5,176 9%

4,643 4,771 3%

52 384 638%

301 294 -2%

9M2013 9M2014

10,971 10,062

3,314 2,371

% Ch

-8%

-28%

16,431 13,,876 -16%

16,558 14,256 -14%

163 565 247%

932 942 1%

Parent & Others 88 -48 -155% 1,178 315 -73%

ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos)

65

AGENDA




• AboitizLand


• AEV Financials

• Q&A

Is there a better way?

66

Third Quarter / YTD September 2014 Financial & Operating...

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