Third Quarter / YTD September 2013 Financial & Operating ... · Sept 2013 levels due to 5,543...

Third Quarter / YTD September 2013Financial & Operating Results

30 October 2013

2

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

3

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

5,646 5,570

5,058 5,659

823 968

9M2012 9M2013

FINANCIAL HIGHLIGHTS

9M 2006

REVENUE (in million pesos)

Flour Feeds Farms

4

11,527 6%

1,883 1 ,785 1 ,902 1 ,946

1 ,795 1 ,932 1 ,932 1 ,727

327 332 308 291

1Q2013 2Q2013 3Q2013 3Q2012

4,005 4,049 3,964

2% 4%

QUARTERLY BREAKDOWN12,196

4,142

772 666

570 543

121 309

9M2012 9M2013

FINANCIAL HIGHLIGHTS

EBITDA (in million pesos)

Flour Feeds Farms

5

1,5181,463 4%

268 207 192

303

163 193 187

220

113 115

80

75

1Q2013 2Q2013 3Q2013 3Q2012

544515

59811% 23%

QUARTERLY BREAKDOWN

459

409 348

470 434

27 149

9M2012 9M2013

FINANCIAL HIGHLIGHTS

NET INCOME (in million pesos)

Flour Feeds Farms

6

932906

3%

144 86

119 164

125

161 148

185

56 58 35

34

1Q2013 2Q2013 3Q2013 3Q2012

326304 302

1% 21%

QUARTERLY BREAKDOWN

384

OPERATING HIGHLIGHTS – Flour Division

7

163,792 167,948

9M2012 9M2013

3%

Sales VolumeIn MT

862 829

157 144

9M2012 9M2013

Average Selling Prices and Gross Profit

Peso/bag

Average Selling Price Gross Profit

198,405 222,842

9M2012 9M2013

Sales Volume In MT

Average Selling Prices and Income Over Ingredient Cost

Peso/MT

12%

OPERATING HIGHLIGHTS – Feeds Division

22,853 23,244

5,967 5,415

9M2012 9M2013

8Average Selling Price Income Over Ingredient Cost

8,454 8,430

9M2012 9M2013

Sales VolumeIn ‘000 kilos

Average Selling Prices and Gross Profit

Peso/kilo

0.28%

OPERATING HIGHLIGHTS – Farms Division

95 110

8

31

9M2012 9M2013

9

Average Selling Price Gross Profit

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

10

AGENDA

11

Net income underpinned by trading gains, supplemented by net interest income and income contribution from CitySavings

16%

49%

Non-interest income rose on higher fee-based incomeand trading gains

9,3082,532

39%+100%-5%

+161%

174%

-86%

+40%

7,088

1,540

31% +4%

+11%

-57%

+84%

+168%

+49%

12

Net interest income improved on account of expansion in earning assets

37%

47bps

17%

31%

13

Deposit base continued to exhibit strong growth

32%62%

262 238

+51% +24%

6668

+23%+26%

28% 23%

14

Credit portfolio posted double-digit growth led by robust expansion in retail loans

115

89

-13%

+7%-13%

29%

+23%

+16%

15

Operating expenses rose on tax-related expenses and consolidation of CitySavings

17%

26%

2,178

6,966

1,854

5,512

-2%

+20%

+4%

+63%

16

Key financial ratios maintained at high levels

17

Capital ratios remained healthy and supportive of growth

18

Source: Bloomberg, 9/30/12= 100

UBP stock performed at par with the stock market and slightly better than the financial index

19

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

20

AGENDA

FINANCIAL HIGHLIGHTS

Revenue dropped as new sales came from newly launched projects

REVENUE (in Php millions)

11%

21

FINANCIAL HIGHLIGHTS

EBITDA (in Php millions)

Decline in EBITDA and NIAT due to lower revenues

NIAT (in Php millions)

9%

9%

22

FINANCIAL HIGHLIGHTS

Sales growth driven by The Persimmon Studios and launch of 2 new residential projects: Priveya Hills 2 and Almiya

14%

SALES (in Php millions)

23

24

AboitizLand to exceed its target CAPEX of P1 billion

• Land acquisition initiatives

• Priveya Hills Phase 1 and 2

• Persimmon Studios

• Ajoya

CAPITAL EXPENDITURE

24

RESIDENTIAL

Phase 2 launched in April

High-end lot-only subdivision

Phase 1 launched in June

House & Lot ; mid-market

Construction contract awarded in October

Building construction to commence in November

25

COMMERCIAL

Opening of The Outlets slated for Dec 2013

26

GROWTH INITIATIVES

Mactan International Airport bid submission : Nov 15, 2013

Lima Land Acquisition

Acquired 60% of Lima Land in Oct

PPP: Cala-X Partnered with Ayala Infrastructure and Macquarie Infrastructure for Cala-X project

Pre-qualification documents submitted

PPP: Mactan Airport

50-50 JV with Ayala Land Inc. to develop strategic properties Working on details of the agreement

Assessing properties for consideration

27

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

28

749 879 801 765

3,971 4,100 4,031

5,820

1Q2013 2Q2013 3Q2013 3Q20122,180 2,429

17,153 12,102

9M2012 9M2013

14,280EPS = P1.94

22%

NET INCOME (in million pesos)

-29%

+11%

29

4,595 4,918

6,200

QUARTERLY BREAKDOWN

3% 23%

Distribution Generation AP Parent & Others

18,383EPS = P2.50

4,767

2,180 2,429

16,426 13,618

9M2012 9M2013

749 879 801 765

3,879

5,537

4,202

5,837

1Q2013 2Q2013 3Q2013 3Q2012

30

CORE NET INCOME (in million pesos)

15,804EPS = P2.1512%

-17%

+11%

4,533

6,353 6,366

QUARTERLY BREAKDOWN

23%

N on- Recurring Items9M20 12 9M20 13

FX gains/(loss) - Parent (62) 22 Debt prepayment costs (181) (93) FX gains/(loss) - Generation 1,227 (1,458) TMI Revenue Adjustment (263) 5 Gain on redemption 14 Fuel cost adjustment (238)

497 (1,524)

Distribution Generation AP Parent & Others

17,886EPS = P2.43

Non-Recurring Items1Q2013 2Q2013 3Q2013 3Q2012

FX gains/(loss) 154 (1,435) (156) 220 Gain on redemption 5 TMI Revenue Adjustment (263) Debt prepayment costs (93) (122)

62 (1,435) (151) (165)

4,918

23%

1,228 1,399 1,305 1,238

6,471

8,572

7,106 8,288

1Q2013 2Q2013 3Q2013 3Q2012

3,513 3,932

23,995 22,149

9M2012 9M2013

31

BENEFICIAL EBITDA (in million pesos)

25,9045%

-8%

+ 12%

7,634

9,9169,479

QUARTERLY BREAKDOWN

16% 12%

Distribution Generation AP Parent & Others

27,364

8,353

856 532

385 683

170 227 152 73

9M2012 9M2013

Energy contracts Capacity contracts Spot market Ancillary

OPERATING HIGHLIGHTS: GENERATION

32

ENERGY SALES BREAKDOWN (GWh)

5,503 5,291

1,294 1,474 1,118 1,484

9M2012 9M2013

Energy contracts Capacity contracts Spot market

CAPACITY SALES BREAKDOWN (MW)

8,248

P/kWh 9M2012 9M2013

Bilateral 5.23 4.73

Spot Market 5.89 4.54

1,5144% 3%

7,9151,562

Open Access – Market Profile

CUSTOMERS DEMANDNUMBER MW

TOTAL CON TE STABLE MARKE T 817 1,500CON TRACTE D CON TE STABLE CUSTOME RS 233 29% 772 51%AP CON TRACTE D CON TE STABLE CUSTOME RS 49 21% 279 36%

33

• In September 2012, the ERC declared the start of Open Access on December 26, 2012..

• Commercial transactions under an interim development system have been

implemented starting June 26, 2013.

• Contracts range from 3 to 10 years.

OPERATING HIGHLIGHTS: GENERATION

APC Portfolio Contracts - Tenors

34

OPERATING HIGHLIGHTS: GENERATION

All Contracts (As of September 2013)All Contracts (As of End of 2011)

Less than 5 YRS,

456, 36%

5 to 10 YRS, 612,

49%

10 to 20 YRS, 186,

15%

All Contracts (Tenor, MW, % of Total)

Less than 5YRS, 1,081, 91%

5 to 10 YRS,24, 2%

10 to 20 YRS, 85,

7%

All Contracts (Tenor, MW, % of Total)

57%

17%26%

35

13%

71%

16%

With Off-taker Generation Based With Off-taker Capacity Based Without Off-taker

355MW

305 MW1,622 MW

2012 As of September 2013

605 MW

1,305 MW

381 MW

Bulk of the Power Supply Agreements are now under capacity-based contracts

OPERATING HIGHLIGHTS: GENERATION

Notes: • 225 MW under capacity-based contracts, which represents the recently-signed contract of Therma Mobile with Meralco, is

still subject to ERC approval• With Off-taker Capacity Based includes 90 MW of firm ancillary offers under the new ASPAs for Magat and Pagbilao• Includes diversity equivalent to 94 MW • Open access contracts implemented – 259 MW

Y T D Pr ic esPea k Off Pea k Al l H ours

2011 4,796 2,035 3,508 2012 6,502 2,558 4,639 Sept 2012 6,209 2,630 4,496 Sept 2013 5,543 2,304 3,768

Note: 1. Calculated based on raw data provided by WESM as of September 2013. July 26

– October 25, 2008 prices are reflective of NPC TOU rates. Source: WESM, SNAP

• Gas curtailments

• Low Hydro

• High Outages

• Fuel limitations

• Forced outages of Masinloc, StaRita, Malaya & Ilijan

• High Outage: 1 unit of Sual and Calaca on outage

• Hydros still on minimal output

• Pagbilao and Calaca plants on outage

• Maintenance of Sual and Sta. Rita

• Units from Sual, Pagbilao, and Calac coal plants on outage

• Malampayamaintenance

• Record demand levels due to warm weather

OPERATING HIGHLIGHTS: 9M2013 WESM HIGHLIGHTS

WESM TIME WTD AVERAGE PRICES (P/MWh) – Luzon Grid

36

8 09

1,026

9M2012 9M2013

27%

ATTRIBUTABLE ENERGY SALES (GWh)

9M2012

9M2013

OPERATING HIGHLIGHTS: HYDRO

CONTRACTED ENERGY (GWh), at 100%

SPOT MARKET (GWh), at 100%

NET CAPACITY SOLD FACTOR

144 132 303

98 171 105 201 187 110

Hedcor Sibulan

HEDCOR LHC SNAP Magat SNAP Benguet

311 344 471

306

SNAP Magat SNAP Benguet

52% 50%27%

99%

54%61%42% 49% 50% 58%

Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

37

1,717

531

285

422

9M2012 9M2013

OPERATING HIGHLIGHTS: HYDRO

38

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

Ancillary Revenues(in million pesos)

Accepted & Billed Capacity(in GW/h)

7,945

2,319

1,402

1,628

9M2012 9M2013

SNAP Magat

SNAP Benguet

3,947

2,002

953

58% 52%

9M2012 9M2013

P/kW/h 4.67 4.14

9,348

-

50

100

150

200

250

300

350

400

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

Nominated Ancillary Accepted Ancillary

Operating Highlights: Hydro

ANCILLARY SERVICES – Nomination and Acceptance

Nominated and Accepted Ancillary (GW/h)

2012 2013

39

8

191

9M2012 9M2013

2,491

1,562

94

566

9M2012 9M2013

4.72 4.67

3.21 3.72

4.66 4.42

9M2012 9M2013

BCQ WESM WTD Ave

OPERATING HIGHLIGHTS: GEOTHERMAL

40

Energy Sales(in GWh)

Average Selling Prices (P/kWh)

Steam Vented (GWh)

AP RENEWABLES (Tiwi-Makban)

18 %2,585

2,127

BCQ

WESM

Capacity Sold Factor 85% 81%

Steam & Purchased Power -P1.37/kWh

Steam & Purchased Power -P1.61/kWh

Situation under GRSC (July 2013)

• For July 2013, APRI was selling energy on a peaking profile, as shown in the graph. The rest of the capacity (total of 71 GWh) was vented.

• On average, market prices are below GRSC fuel cost during off-peak hours, which limit Spot sales opportunities. • An interim agreement supplementing the GRSC was implemented on Aug. 14, 2013. This will result in a lower fuel

cost during off-peak hours, thus allowing AP to maximize sales even during this period.

PEAK

OPERATING HIGHLIGHTS: GEOTHERMAL

41

Situation under 50:50 Sharing (Effective Aug. 2013)

• The Interim Agreement with PGPC (formerly Chevron) proposed a revenue sharing arrangement when Market Prices are less than GRSC (fuel cost)

• Under these market conditions (WESM Price < GRSC) APRI is assured that its Fuel Cost will be 50% of its selling price to WESM

• The arrangement has a two fold effect:• Margin Improvement • Incremental sales

PEAK

OPERATING HIGHLIGHTS: GEOTHERMAL

42

1,193

3,180

1,139

3,886

1,074

3,577

1,121

4,239

STEAG TLI CEDC

ENERGY SALES (GWh)

NET CAPACITY SOLD FACTOR

9M2012

9M2013

9%

43

OPERATING HIGHLIGHTS: COAL

95%69%

101%96%83% 93%

STEAG TLI CEDC

Attributable Energy Sales

5.13

5.85

5.28

BCQ WESM WTD Ave

THERMA LUZON (Pagbilao)

9M2013 Average Selling PriceP/kWh

44

OPERATING HIGHLIGHTS: COAL

Energy Sales(in GWh)

2,532 3,097

648

480

9M2012 9M2013

9M2012 Average Selling PriceP/kWh

3,577

12%

BCQ

WESM

4.27

5.28

4.41

BCQ WESM WTD Ave

3,180Coal + Energy Fee + Purchased Power =

P2.60/kWh

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

ENERGY SALES (GWh)

AttributableEnergy Sales

NET CAPACITY SOLD FACTOR

9M2012

9M2013

45

OPERATING HIGHLIGHTS: OIL

71%

97% 100% 100% 94%

68%

96% 100% 100%91%

EAUC CPPC SPPC WMPC Therma Marine

35%

60 124

223 401 404

634

70 109 233

426

624

856

EAUC CPPC SPPC WMPC Therma Marine

772

2,163

2,935

816

2,208

3,024

Residential Commercial & Industrial Total Power Sales

9M2012 9M2013

3,142 3,322 3,606 3,727 3,934 2,935 3,024

2008 2009 2010 2011 2012 9M2012 9M2013

BENEFICIAL POWER SALES (Gwhr)

3%

BENEFICIAL GWH SALES GROWTH(BY CUSTOMER TYPE)

3%

PEAK DEMAND (MW)

2%

6%

2%

OPERATING HIGHLIGHTS: DISTRIBUTION

46

289 4 33

21 89 90

22 34

978

30 4 433

25 94 91

21 33

999

D L PC VECO CL PC SFELAPCO SEZ MEZ BEZ T otal

9M 2 012 9M 2 013

1.27 1.21

1.16

1.25

1.44

1.60

1.73

2007 2008 2009 2010 2011 2012 Sept-13

SYSTEMS LOSSGROSS MARGIN / KWH SALE

OPERATING HIGHLIGHTS: DISTRIBUTION

47

* Adjusted for timing of transmission charge recovery

** Year-to-date

1% 2%

4%

3%

7.8%9.0 %

10 .6%

1% 1%

4%

0%

8.0% 7.9% 7.9%

SFELAPCOSEZ Davao Light

Visayan Electric

Cotabato Light

MEZ BEZ

9M2012

9M2013

Gov’t Cap – 8.50%

**

**

FINANCIAL CONDITION

48

BALANCE SHEET(In million Pesos)

Cash and Equivalents

YE2012

Total Assets

Total Interest Bearing Debt

Total Liabilities

Net Debt

Total Equity

Current Ratio

Net Debt to Equity

Investments and Advances

End Sept 2013

3,457

74,153

-

12,346

-

61,807

0.3x

-

70,025

PARENT

YE2012 End Sept 2013

15,546

157,442

58,477

72,555

42,932

84,888

2.3x

0.5x

27,763

CONSOLIDATED

8,234

71,120

4,970

6,694

-

64,426

62,411

5.0x

-

30,678

163,137

66,879

80,635

36,201

82,502

2.7x

0.4x

25,831

49

Project Update

FIVE YEAR PROJECT PIPELINE TO SECURE LONG-TERM GROWTH

LUZON GRID VISAYAS GRID MINDANAO GRID Subic Coal 600 MW (2017)

Sabangan Hydro 14 MW (2015)

Pagbilao Coal 400 MW (2017)

Cebu Coal 300 MW Davao Coal 300 MW (2015)

Davao Coal 3rd Unit 150 MW

Tudaya 14 MW (2014)

Tamugan 12 MW (2016)

Manolo Fortich 52 MW

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

50

AGENDA

CONSOLIDATED PROFIT & LOSS (In Million Pesos)

Revenues

Equity Earnings

EBITDA

Net Income

Core Net Income

3Q2012 3Q2013

20,447 20,162

3,466 2,127

10,793 8,802

6,213 4,643

% Ch

-1%

-39%

-18%

-25%

6,340 4,733 -25%

9M2012 9M2013

60,791 58,977

10,577 7,450

30,847 28,535

18,023 16,558

% Ch

-3%

-30%

-7%

-8%

17,642 16,431 -7%

51

3,530 3,779 3,662 4,764

1,794 980 540

1,122 325 305

301

384 1,156

1Q2013 2Q2013 3Q2013 3Q2012

NET INCOME (In Million Pesos)

52

6,849

5,067

8% 25%

4,643

QUARTERLY BREAKDOWN

14,124 10,971

3,080

3,314

906

932 1,178

9M2012 9M2013

16,558EPS = P3.00

8%

18,023EPS = P3.26

Power Banking Food Parent & OthersReal Estate

6,213

3,483 4 ,881

3,778 4 ,892

1,794

980

54 0

1,122 325 305

301

384

1Q2013 2Q2013 3Q2013 3Q2012

CORE NET INCOME (In Million Pesos)

53

25%5,5296,169

4,733

QUARTERLY BREAKDOWN

Non-Recurring Items9M2012 9M2013

Parent (1) 1,298 Power 382 (1,171) Total Gains/(Losses) 381 128

13,743 12,142

3,080 3,314

906 932

9M2012 9M2013

7%

16,431EPS = P2.98

17,642EPS = P3.20

25%

Power Banking Food Parent & OthersReal Estate

Non-Recurring Items1Q20 13 2Q20 13 3Q20 13 3Q20 12

Parent 1,272 0.1 26 - Power 47 (1,102) (116) (127)

Total Gains/(Losses) 1,320 (1,102) (90) (127)

6,340

30,847

26,145 28,535

25,435

EBITDA (Consolidated) EBITDA (Beneficial)

9M2012 9M2013

EBITDA (In Million Pesos)

54

7%

3%

3,982

1,194

YE 2012 9M 2013

232 20 8

Y E2012 9M 2013

PARENT NET DEBT (In Million Pesos)

Parent net debt decreased by 28%

Cash & Equivalents

Long-term Debt

55

10%

70%

5,988

4,284

YE 2012 9M 2013

CONSOLIDATED BALANCE SHEET / KEY RATIOS

56

(In Million Pesos, except ratios)

Cash and Cash Equivalents

YE 2012 9M 2013 % Change

Total Assets

Total Liabilities

Total Equity

Book Value Per Share

Current Ratio

Debt to Equity

Net Debt to Equity

33,731

222,419

109,473

112,946

16.48

2.6x

0.97x

0.45x

18,103

201,610

86,401

115,209

16.84

1.9x

0.75x

0.44x

-46%

-9%

-21%

1%

Equity Attributable to Parent 90,986 92,970 2%

ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos)

57

Aboitiz Power Corp.

City Savings Bank

Union Bank

Pilmico

3Q2012 3Q2013

4,764 3,662

121 --

1,001 540

% Ch

-23%

--

-46%

Net Income

AboitizLand

6,340 4,733 -25%Core Net Income

6,213 4,643 -25%

-- 52 --

384 301 -21%

9M2012 9M2013

14,124 10,971

318 --

2,762 3,314

% Ch

-22%

--

20%

17,642 16,431 -7%

18,023 16,558 -8%

-- 163 --

906 932 3%

Parent & Others (57) 88 255% (88) 1,178 1,447%

58

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Union Bank of the Philippines

• AboitizLand

• Aboitiz Power Corporation

• AEV Financials

• Q&A

Third Quarter / YTD September 2013Financial & Operating Results

30 October 2013