Second Quarter / First Half 2013 Financial & Operating ... · 1H 2013 Revenue lower by 7%. Due mainly to lower % of completion of Ajoya H&L. Plan to catch up construction to be implemented

Second Quarter / First Half 2013Financial & Operating Results

2 August 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




• AboitizLand


• AEV Financials

• Q&A

3,700 3,668

3,332 3,727

532 660

1H2012 1H2013

FINANCIAL HIGHLIGHTS

9M 2006REVENUE (in million pesos)

Flour Feeds Farms

4

7,563 6%

1,883 1,785 1,835

1,795 1,932 1,747

327 332 266

1Q2013 2Q2013 2Q2012

4,005 4,049 3,848

1% 5%

QUARTERLY BREAKDOWN

8,054

469 474

350 356

46 228

1H2012 1H2013


EBITDA (in million pesos)

Flour Feeds Farms

5

1,059865

22%

268 207 247

163 193

198

113 115 41

1Q2013 2Q2013 2Q2012

544515 486

5% 6%

QUARTERLY BREAKDOWN

245 230

284 286

(7)

115

1H2012 1H2013


NET INCOME (in million pesos)

Flour Feeds Farms

6

630522

21%

144 86

132

125 161

162

56 58

10

1Q2013 2Q2013 2Q2012

326304 303

6% 0.4%

QUARTERLY BREAKDOWN

OPERATING HIGHLIGHTS – Flour Division

7

108,226 112,459

1H2012 1H2013

4%

Sales VolumeIn MT

855 815

146 147

1H2012 1H2013

Average Selling Prices and Gross Profit

Peso/bag

Average Selling Price Gross Profit

129,961 145,765

1H2012 1H2013

Sales Volume In MT

Average Selling Prices and Income Over Ingredient Cost

Peso/MT

12%

OPERATING HIGHLIGHTS – Feeds Division

22,814 23,220

5,782 5,378

1H2012 1H2013

8

Average Selling Price Income Over Ingredient Cost

5,654 5,699

1H2012 1H2013

Sales VolumeIn ‘000 kilos

Average Selling Prices and Gross Profit

Peso/kilo

1%

OPERATING HIGHLIGHTS – Farms Division

92 111

2

34

1H2012 1H2013

9

Average Selling Price Gross Profit

10

OUTLOOKFE

EDS • 2nd Iligan Feedmill Plant

• 2nd Inter-Island Pier

FAR

MS • Increase sow level from 6,500 to 8,350

heads by 2014

• Breeder farm 1 expansion – (Jul 2013)• Offsite nursery farm construction

(Completed)• 1st grow-fin farm – improvement (Oct 2013)• 2nd grow-fin farm expansion –

(Completed)• 5th grow-fin farm – construction

(Completed)• 6th grow-fin farm – construction by 2014• 7th grow-fin farm – construction by 2014




• AboitizLand


• AEV Financials

• Q&A

11

AGENDA

Net income bolstered by trading gains and income from subsidiaries

52%

79%

Net interest income dampened by lower asset yields, notwithstanding expansion in earning assets

3%

19%

42bps

1%

Non-interest income surge mainly on higher trading gains

+71%

-93%+54%+164%

6,837

4,395

56%

2,929

1,191

-1%146%

+420%+53%

+250%

-9%-106%

Total deposits and low-cost CASA levels sustained upward trend

23%

13%

25%

26%

Credit portfolio expansion driven by corporate lending and mortgage loans

9286+23%

-13%

+21%

-13%

+15%

7%

Operating expenses up on compensation- and tax-related expenses; Manifested decline from previous quarter

12%

16%8%

Key financial ratios maintained at high levels

Capital ratios remained healthy and supportive of growth

Source: Bloomberg, 6/30/12= 100

UBP stock outperformed stock market and financial sector indices




• AboitizLand


• AEV Financials

• Q&A

21

AGENDA


REVENUE (in million pesos)

22

1H 2013 Revenue lower by 7%Due mainly to lower % of completion of Ajoya H&LPlan to catch up construction to be implemented in 2H 2013

450 416

189179

1818

1H 2012 1H 2013

Commercial

Industrial

Residential

613657

165155

1H 2012 1H 2013

EBITDA

113 111

1H 2012 1H 2013

NIAT

23


EBITDA & NIAT (in million pesos)

6% 2%

EBITDA lower by 6% due to lower revenues, NIAT remained steady

24

OPERATING HIGHLIGHTS – Residential Division

SALES PERFORMANCE (in million pesos)

1H 2013 sales higher by 9% vs. 1H 2012 Brisk take up of Priveya Hills Phase 2 (launched in April 2013) and The Persimmon Studios (launched in July 2012)

9%

725791

25

Projected CAPEX for 2013: P1.0 billion• Priveya Hills Phase 1• Persimmon Studios• Ajoya• Land acquisition initiatives

CAPITAL EXPENDITURE

26

FINANCIAL CONDITION

Stable and liquid balance sheet

Balance Sheet(In millions)

Change

1H 2012 1H 2013 Amount %

Cash & cash equivalents 192 162 (30) (16%)Total Assets 7,031 7,713 682 10%Total borrowings 1,445 1,860 415 29%Stockholders' Equity 3,501 3,844 343 10%Current Ratio 5.15 3.08 (2.07)Debt-to-Equity Ratio 41.27% 48.37% 7.10%Net Debt-to-Equity Ratio 35.78% 44.15% 8.37%

27

2013 Growth initiatives on track

Mactan-Cebu Airport PPP

OUTLOOK

Lima Land Acquisition

Phase 2

50-50 JV with Ayala Land Inc. to develop strategic properties

http://www.google.com.ph/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=k1h4hkgYUc3zCM&tbnid=vTdRiY3IWHs4DM:&ved=0CAUQjRw&url=http://www.skyscrapercity.com/showthread.php?t=1545076&page=107&ei=yoR7UeayEa6KiQfCqYCQDg&bvm=bv.45645796,d.aGc&psig=AFQjCNHgNXRatrCtxYQFyzfIaDywoomtSA&ust=1367135791145042�

http://www.google.com.ph/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vyu2JGF3wKyp1M&tbnid=yhLl-xQNdspMLM:&ved=0CAUQjRw&url=http://alveoayalaproperties.blogspot.com/&ei=CIV7UbTXIZCViAfY3IHwDw&bvm=bv.45645796,d.aGc&psig=AFQjCNHtrRAU2C5wB_1eB4StgHCf2MhuAQ&ust=1367135870958069�

28

AGENDA




• AboitizLand


• AEV Financials

• Q&A

749 879 682

3,971 4,100 6,250

1Q2013 2Q2013 2Q2012

1,415 1,628

11,333 8,071

1H2012 1H2013

9,513EPS = P1.29

22%

NET INCOME (in million pesos)

-29%

+15%

29

4,595 4,918

6,583

QUARTERLY BREAKDOWN

7% 25%

Distribution Generation AP Parent & Others

12,183EPS = P1.66

749 879 682

3,879 5,537 6,015

1Q2013 2Q2013 2Q2012

1,415 1,628

10,590 9,416

1H2012 1H2013

30

CORE NET INCOME (in million pesos)

10,886EPS = P1.486%

-11%

+15%

4,533

6,353 6,437

QUARTERLY BREAKDOWN

40% 1%

Non-Recurring Items1H2012 1H2013

FX gains/(loss) 945 (1,280) Gain on redemption 14 - Fuel cost adjustment (238) - Debt prepayment costs (59) (93)

662 (1,373)


11,521EPS = P1.57

Non-Recurring Items1Q2013 2Q2013 2Q2012

FX gains/(loss) 154 (1,435) 442 Fuel cost adjustment (238) Debt prepayment costs (93) (59)

62 (1,435) 146

1,228 1,399 1,093

6,471 8,572 8,395

1Q2013 2Q2013 2Q2012

2,275 2,628

15,707 15,043

1H2012 1H2013

31

BENEFICIAL EBITDA (in million pesos)

17,5512%

-4%

+ 15%

7,634

9,916 9,436

QUARTERLY BREAKDOWN

30% 5%


17,885

874 511

380 661

135 229 171 64

1H2012 1H2013

Energy contracts Capacity contractsSpot market Ancillary

OPERATING HIGHLIGHTS: GENERATION

32

ENERGY SALES BREAKDOWN (GWh)

3,691 3,357

816 1,008 589 996

1H2012 1H2013

Energy contracts Capacity contracts Spot market

CAPACITY SALES BREAKDOWN (MW)

5,360

P/kWh 1H2012 1H2013

Bilateral 5.30 4.75

Spot Market 6.33 5.15

1,4655% 6%

5,096

1,560

14%

62%

24%

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


33

57%

17%26%

2012 As of August 2013

605 MW

1,305 MW

381 MW

AP has started to shift its Power Supply Agreements to capacity-based contracts for more stable and predictable cash flows

Notes: • Without Off-taker capacity includes 225 MW of Therma Mobile which is not yet commercially operating• 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 – 258 MW

545 MW

305 MW1,397 MW

34

YTD PricesPeak Off Peak All Hours

2011 4,796 2,035 3,508 2012 6,502 2,558 4,639 June 201 6,362 2,873 4,654 June 201 6,186 2,541 4,203

Note: 1. Calculated based on raw data provided by WESM as of September 2012.

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: 1H2013 WESM HIGHLIGHTS

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

407

463

1H2012 1H2013

14%

ATTRIBUTABLE ENERGY SALES

(GWh)

1H20121H2013

OPERATING HIGHLIGHTS: HYDRO

CONTRACTED ENERGY (GWh), at 100%

SPOT MARKET (GWh), at 100%

NET CAPACITY SOLD FACTOR

35

96 58

199

64 108

46 69 102 66

Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

123 119 199

113

SNAP Magat SNAP Benguet

52% 32%0%

102%44%59% 25% 31% 39% 46%

Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

6.12

10.51

5.42

8.69

SNAP Magat SNAP Benguet

AVERAGE SELLING PRICE (in P/kWh)

1H20121H2013

CONTRACTED ENERGY SPOT MARKET

36


5.21 5.24 5.08

6.79 5.33 5.04

2.48

4.83 4.96

H Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

1,281

306

213

251

1H2012 1H2013


37

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

Ancillary Revenues(in million pesos)

Accepted & Billed Capacity(in GW/h)

5,884

1,555

1,031

1,054

1H2012 1H2013

SNAP MagatSNAP Benguet

2,609

1,494

557

62%63%

1H2012 1H2013

P/kW/h 4.63 4.68

6,915

38

Operating Highlights: Hydro

ANCILLARY SERVICES – Nomination and AcceptanceNominated and Accepted Ancillary (GW/h)

-

50

100

150

200

250

300

350

400

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

Nominated Ancillary Accepted Ancillary

2012 2013

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

Source: SNAP39


1Q 2Q 4Q3Q

2

71

1H2012 1H2013

1,651 1,099

55 381

1H2012 1H2013

4.84 4.74

3.00 3.93

4.78 4.53

1H2012 1H2013

BCQ WESM WTD Ave

OPERATING HIGHLIGHTS: GEOTHERMAL

40

Energy Sales(in GWh)

Average Selling Prices (P/kWh)

Steam Vented (GWh)

AP RENEWABLES (Tiwi-Makban)

13 %1,7061,480

BCQ

WESM

Capacity Sold Factor

85% 85%

• Tiwi-Makban shifted to the new pricing scheme for steam under GRSC effective May 26,2013• Steam cost based on first billing under GRSC amounted to P2.30/kWh• AP is continuing talks with Chevron to replace GRSC with a revenue-sharing scheme to maximize

plant utilization

Steam & Purchased Power - P1.21/kWh

Steam & Purchased Power - P1.70/kWh

785

2,139

761

2,606

803

2,380

768

2,856

STEAG TLI CEDC

ENERGY SALES (GWh)


1H20121H2013

10%

41

OPERATING HIGHLIGHTS: COAL

95%70%

101%96% 82% 93%

STEAG TLI CEDC

Attributable Energy Sales

5.19

5.68

5.28

BCQ WESM WTD Ave

THERMA LUZON (Pagbilao)

1H2013 Average Selling PriceP/kWh

42

OPERATING HIGHLIGHTS: COAL

Energy Sales(in GWh)

1,755 1,950

383 430

1H2012 1H2013

1H2012 Average Selling PriceP/kWh

2,380

11%

BCQ

WESM

4.31

5.45 4.51

BCQ WESM WTD Ave

2,139 Coal + Energy Fee + Purchased Power = P2.74/kWh

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

ENERGY SALES (GWh)

AttributableEnergy Sales


1H20121H2013

43

OPERATING HIGHLIGHTS: OIL

71%98% 100% 100% 92%

68%96% 100% 100%

89%

EAUC CPPC SPPC WMPC Therma Marine

36 67

150 269 238

380

45 78 155

285 405

563

EAUC CPPC SPPC WMPC Therma Marine

48%

LAKE LANAO WATER LEVEL (in MASL)

44

OPERATING HIGHLIGHTS: OIL

1Q 2Q 4Q3Q

15,707 15,043

1H2012 1H2013

4,831 4,109

8,937

2,872 4,465

7,336

Hydro Geothermal Total Benef icial EBITDA

1H20121H2013

778

6,009 6,770

756

7,001 7,707

Oil Coal Total Beneficial EBITDA

1H20121H2013

Amounts in Million Pesos

RENEWABLE PLANTS 18%


PF BENEFIClAL EBITDA

45

14%

THERMAL PLANTS

4%

3,142 3,322 3,606 3,727 3,934 1,949 1,997

2008 2009 2010 2011 2012 1H2012 1H2013

BENEFICIAL POWER SALES (Gwhr)

2%

BENEFICIAL GWH SALES GROWTH(BY CUSTOMER TYPE)

2%

PEAK DEMAND (MW)

2%

6%

1%

OPERATING HIGHLIGHTS: DISTRIBUTION

46

289 433

21 88 90

22 34

976

303 433

25 92 91 21 32

996

DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total

1H2012 1H2013

515

1,434

1,949

545

1,452

1,997

Residential Commercial & Industrial

Total Power Sales

1H2012 1H2013

SYSTEMS LOSSGROSS MARGIN / KWH SALE


47

* Adjusted for timing of transmission charge recovery ** Year-to-date

1.28 1.27 1.21 1.16 1.25

1.44

1.60 1.71

* *

**

1% 2%

4% 4%

7.6%

9.2%10.9%

1% 1%

5%

1%

8.3% 8.1% 7.8%

SFELAPCOSEZ Davao Light

Visayan Electric

CotabatoLight

MEZ BEZ

1H20121H2013

Gov’t Cap – 8.50%

16%

PF BENEFICIAL EBITDA


Amounts in Million Pesos

48

1,341

485 78 101 186 40 44

2,275

1,285 865

95 114 189 40 40

2,628

DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total BeneficialEBITDA

1H20121H2013

FINANCIAL CONDITION

49

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 June 2013

1,655

69,098

-

12,326

-

69,098

0.2x

-

66,940

PARENT

YE2012 End June 2013

14,657

151,991

59,541

73,744

44,884

80,037

2.6x

0.6x

26,686

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

50

OUTLOOK

FIVE YEAR PROJECT PIPELINE TO SECURE LONG-TERM GROWTH

LUZON GRID VISAYAS GRID MINDANAO GRID Binga Hydro 5 MW (2013)

Subic Coal 600 MW (2016)

Sabangan Hydro 14 MW (2015)

Pagbilao Coal 400 MW (2016)

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

Most advanced and extensive pipeline of capacity additions among industry players over the next five years

P125 BnBeneficial capex

1,197 MWAdditional beneficial capacity after completion of projects




• AboitizLand


• AEV Financials

• Q&A

51

AGENDA

CONSOLIDATED PROFIT & LOSS (In Million Pesos)

Revenues

Equity Earnings

EBITDA

Net Income

Core Net Income

2Q2012 2Q2013

20,766 21,023

3,864 2,560

10,229 10,476

5,955 5,067

% Ch

1%

-3%

2%

-15%

5,844 6,169 6%

1H2012 1H2013

40,345 38,815

7,111 5,323

20,054 19,733

11,810 11,915

% Ch

-4%

-25%

-2%

1%

11,302 11,698 4%

52

3,530 3,779 5,058

1,794 980

629 325 305

303 1,156

1Q2013 2Q2013 2Q2012

NET INCOME (In Million Pesos)

53

6,849

5,067

26% 15%5,955

QUARTERLY BREAKDOWN

9,360 7,309

1,958

2,774

522 631

1,091

1H2012 1H2013

11,915EPS = P2.161%

11,810EPS = P2.14

Power Banking Food Parent & OthersReal Estate

CORE NET INCOME (In Million Pesos)

54

3,483 4,881 4,946

1,794

980 629 325 305 303

1Q2013 2Q2013 2Q2012

12%

5,5296,169 5,844

QUARTERLY BREAKDOWN

Non-Recurring Items1H2012 1H2013

Parent (1) 1,272 Power 509 (1,055) Total Gains/(Losses) 508 217

8,851 8,364

1,958 2,774 522 631

1H2012 1H2013

4%11,698EPS = P2.12

11,302EPS = P2.05 6%

Power Banking Food Parent & OthersReal Estate

Non-Recurring Items1Q2013 2Q2013 2Q2012

Parent 1,272 0.1 (0.5) Power 47 (1,102) 111 Total Gains/(Losses) 1,320 (1,102) 111

20,054

17,060

19,733 17,661

EBITDA (Consolidated) EBITDA (Beneficial)

1H2012 1H2013

EBITDA (In Million Pesos)

55

2%

4%

232

113

YE2012 1H 2013

PARENT NET DEBT (In Million Pesos)

Parent net debt decreased by 69%Cash & Equivalents

Long-term Debt

56

51%

5,988

1,831

YE 2012 1H 20133,982

1,194

YE 2012 1H 2013

70%

CONSOLIDATED BALANCE SHEET / KEY RATIOS

57

(In Million Pesos, except ratios)

Cash and Cash Equivalents

YE 2012 1H 2013 % Change

Total AssetsTotal Liabilities

Total Equity

Book Value Per ShareCurrent RatioDebt to EquityNet Debt to Equity

33,731

222,419109,265

113,503

16.48 2.6x

0.97x0.45x

15,676

193,934 83,367

110,567

16.12 2.2x

0.78x 0.48x

-54%

-13%-24%

-3%Equity Attributable to Parent 91,522 89,528 -2%

ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos)

58

Aboitiz Power Corp.

City Savings Bank

Union Bank

Pilmico

2Q2012 2Q2013

5,058 3,779

98 --

531 980

% Ch

-25%

--

85%

Net Income

AboitizLand

5,844 6,169 6%Core Net Income

5,955 5,067 -15%

-- 68 --

303 305 1%

1H2012 1H2013

9,360 7,309

197 --

1,761 2,774

% Ch

-22%

--

57%

11,302 11,698 4%

11,810 11,915 1%

-- 111 --

522 631 21%

Parent & Others (35) (65) 86% (31) 1,091 3,646%

59

AGENDA




• AboitizLand


• AEV Financials

• Q&A

Second Quarter / First Half 2013Financial & Operating Results

2 August 2013

Documents

Second Quarter / First Half 2013 Financial & Operating ... · 1H 2013 Revenue lower by 7%. Due mainly to lower % of completion of Ajoya H&L. Plan to catch up construction to be implemented