Third Quarter / YTD September 2013 Financial & Operating Results 30 October 2013

Size: px

Start display at page:

Download "Third Quarter / YTD September 2013 Financial & Operating Results 30 October 2013"

Christopher McLaughlin
5 years ago
Views:

1 Third Quarter / YTD September 2013 Financial & 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 2

3 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 3

4 FINANCIAL HIGHLIGHTS REVENUE (in million pesos) 9M ,527 6% , ,058 5,659 QUARTERLY BREAKDOWN 2% 4% 4,005 4,049 4,142 3, , 795 1, 932 1, 932 1,727 5,646 5,570 1,883 1,785 1, 902 1, 946 1Q2013 2Q2013 3Q2013 3Q2012 Flour Feeds Farms 4

5 FINANCIAL HIGHLIGHTS EBITDA (in million pesos) 1,463 4% 1,518 QUARTERLY BREAKDOWN % 23% Q2013 2Q2013 3Q2013 3Q2012 Flour Feeds Farms 5

6 FINANCIAL HIGHLIGHTS NET INCOME (in million pesos) % QUARTERLY BREAKDOWN % 21% Q2013 2Q2013 3Q2013 3Q2012 Flour Feeds Farms 6

7 OPERATING HIGHLIGHTS Flour Division 3% 163, ,948 Sales Volume In MT Average Selling Prices and Gross Profit Peso/bag Average Selling Price Gross Profit 7

8 OPERATING HIGHLIGHTS Feeds Division 198,405 12% 222,842 Sales Volume In MT 22,853 23,244 5,967 5,415 Average Selling Prices and Income Over Ingredient Cost Peso/MT Average Selling Price Income Over Ingredient Cost 8

9 OPERATING HIGHLIGHTS Farms Division 0.28% 8,454 8,430 Sales Volume In 000 kilos Average Selling Prices and Gross Profit Peso/kilo Average Selling Price Gross Profit 9

10 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 10

11 Net income underpinned by trading gains, supplemented by net interest income and income contribution from CitySavings 16% 49% 11

9,308 39% 1,540 +100% -5% +40% +161% -86%

12 Non-interest income rose on higher fee-based income and trading gains 2,532 9,308 39% 1, % -5% +40% +161% -86% 7,088 31% +4% +84% +49% -57% +11% 174% +168% 12

13 Net interest income improved on account of expansion in earning assets 31% 17% 47bps 37% 13

14 Deposit base continued to exhibit strong growth 62% % +51% +24% 68 28% 23% % +23% 14

15 Credit portfolio posted double-digit growth led by robust expansion in retail loans % +7% -13% -13% +16% +23% 15

16 Operating expenses rose on tax-related expenses and consolidation of CitySavings 6,966 5,512 26% +63% 1,854 2,178 +4% 17% +20% -2% 16

17 Key financial ratios maintained at high levels 17

18 Capital ratios remained healthy and supportive of growth 18

19 UBP stock performed at par with the stock market and slightly better than the financial index Source: Bloomberg, 9/30/12=

20 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 20

21 FINANCIAL HIGHLIGHTS Revenue dropped as new sales came from newly launched projects REVENUE (in Php millions) 11% 21

22 FINANCIAL HIGHLIGHTS Decline in EBITDA and NIAT due to lower revenues EBITDA (in Php millions) NIAT (in Php millions) 9% 9% 22

23 FINANCIAL HIGHLIGHTS Sales growth driven by The Persimmon Studios and launch of 2 new residential projects: Priveya Hills 2 and Almiya SALES (in Php millions) 14% 23

24 CAPITAL EXPENDITURE AboitizLand to exceed its target CAPEX of P1 billion Land acquisition initiatives Priveya Hills Phase 1 and 2 Persimmon Studios Ajoya 24

25 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

26 COMMERCIAL Opening of The Outlets slated for Dec

GROWTH INITIATIVES Lima Land Acquisition Acquired 60% of Lima Land in

Infrastructure for Cala-X project Pre-qualification documents

submission : Nov 15, 2013 50-50 JV with Ayala Land Inc.

27 GROWTH INITIATIVES 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 Mactan International Airport bid submission : Nov 15, JV with Ayala Land Inc. to develop strategic properties Working on details of the agreement Assessing properties for consideration 27

28 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 28

29 NET INCOME (in million pesos) 18,383 EPS = P % QUARTERLY BREAKDOWN 14,280 EPS = P1.94 3% 23% 6,200 17,153 12,102-29% 4,595 4,918 4,767 3,971 4,100 4,031 5,820 2,180 2, % Q2013 2Q2013 3Q2013 3Q2012 Distribution Generation AP Parent & Others 29

30 CORE NET INCOME (in million pesos) Non-Recurring Items 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) 17,886 EPS = P % 15,804 EPS = P2.15 Non-Recurring Items 1Q2013 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) QUARTERLY BREAKDOWN 6,353 6,366 23% 23% 16,426 13,618-17% 4,533 5,537 4,918 5,837 3,879 4,2 02 2,180 2, % Q2013 2Q2013 3Q2013 3Q2012 Distribution Generation AP Parent & Others 30

31 BENEFICIAL EBITDA (in million pesos) 27,364 5% 25,904 QUARTERLY BREAKDOWN 23,995 22,149-8% 7,634 9,916 16% 12% 8,353 9,479 6,471 8,572 7,106 8,288 3,513 3, % 1,228 1,399 1,305 1,238 1Q2013 2Q2013 3Q2013 3Q2012 Distribution Generation AP Parent & Others 31

32 OPERATING HIGHLIGHTS: GENERATION ENERGY SALES BREAKDOWN (GWh) CAPACITY SALES BREAKDOWN (MW) 7,915 4% 3% 8,248 1,118 1,484 1,294 1,474 5,503 5,291 1, , Energy contracts Capacity contracts Spot market Energy contracts Capacity contracts Spot market Ancillary P/kWh Bilateral Spot Market

33 OPERATING HIGHLIGHTS: GENERATION Open Access Market Profile In September 2012, the ERC declared the start of Open Access on December 26, Commercial transactions under an interim development system have been implemented starting June 26, Contracts range from 3 to 10 years. CUSTOMERS NUMBER DEMAND MW TOTAL CONTESTABLE MARKET 817 1,500 CONTRACTED CONTESTABLE CUSTOMERS % % AP CONTRACTED CONTESTABLE CUSTOMERS 49 21% % 33

34 OPERATING HIGHLIGHTS: GENERATION APC Portfolio Contracts - Tenors All Contracts (As of End of 2011) All Contracts (Tenor, MW, % of Total) All Contracts (As of September 2013) All Contracts (Tenor, MW, % of Total) 5 to 10 YRS, 24, 2% 10 to 20 YRS, 85, 7% 10 to 20 YRS, 186, 15% Less than 5 YRS, 456, 36% Less than 5YRS, 1,081, 91% 5 to 10 YRS, 612, 49% 34

OPERATING HIGHLIGHTS: GENERATION 2012 As of September 2013 57% 1,305 MW 13% 305 MW 1,622 MW 71% 26% 605

Notes: 225 MW under capacity-based contracts, which represents the recently-signed contract of Therma

firm ancillary offers under the new ASPAs for Magat and Pagbilao Includes diversity equivalent to 94 MW

35 OPERATING HIGHLIGHTS: GENERATION 2012 As of September % 1,305 MW 13% 305 MW 1,622 MW 71% 26% 605 MW 381 MW 17% 16% 355MW With Off-taker Generation Based With Off-taker Capacity Based Without Off-taker 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 Bulk of the Power Supply Agreements are now under capacity-based contracts 35

OPERATING HIGHLIGHTS: WESM HIGHLIGHTS WESM TIME WTD AVERAGE PRICES (P/MWh) Luzon Grid YTD Prices Peak Off Peak All Hours 2011 4,796 2,035 3,508 2012 6,502 2,558 4,639 Sept 2012 6,209 2,630 4,496 Sept

36 OPERATING HIGHLIGHTS: WESM HIGHLIGHTS WESM TIME WTD AVERAGE PRICES (P/MWh) Luzon Grid YTD Prices Peak Off Peak All Hours ,796 2,035 3, ,502 2,558 4,639 Sept ,209 2,630 4,496 Sept ,543 2,304 3,768 Forced outages of Masinloc, StaRita, Malaya & Ilijan Units from Sual, Pagbilao, and Calac coal plants on outage Malampaya maintenance Pagbilao and Calaca plants on outage Maintenance of Sual and Sta. Rita Record demand levels due to warm weather Gas curtailments Low Hydro High Outages Fuel limitations High Outage: 1 unit of Sual and Calaca on outage Hydros still on minimal output Note: 1. Calculated based on raw data provided by WESM as of September July 26 October 25, 2008 prices are reflective of NPC TOU rates. Source: WESM, SNAP 36

37 OPERATING HIGHLIGHTS: HYDRO CONTRACTED ENERGY (GWh), at 100% ATTRIBUTABLE ENERGY SALES (GWh) Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet 27% SPOT MARKET (GWh), at 100% 809 1, SNAP Magat SNAP Benguet NET CAPACITY SOLD FACTOR 61% 52% 50% 99% 42% 49% 50% 54% 58% 27% Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet 37

38 OPERATING HIGHLIGHTS: HYDRO SNAP MAGAT & SNAP BENGUET ANCILLARY SERVICES (at 100%) Ancillary Revenues (in million pesos) Accepted & Billed Capacity (in GW/h) 9,348 1,402 7,945 58% 52% 2, ,947 1,628 1,717 2, SNAP Magat SNAP Benguet P/kW/h

39 Operating Highlights: Hydro ANCILLARY SERVICES Nomination and Acceptance Nominated and Accepted Ancillary (GW/h) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Nominated Ancillary Accepted Ancillary 39

40 OPERATING HIGHLIGHTS: GEOTHERMAL AP RENEWABLES (Tiwi-Makban) Average Selling Prices (P/kWh) WESM BCQ 2, Energy Sales (in GWh) 18 % 2, BCQ WESM WTD Ave Steam & Purchased Power - P1.61/kWh Steam & Purchased Power - P1.37/kWh 566 2,491 1,562 Steam Vented (GWh) 191 Capacity Sold Factor 85% 81% 8 40

41 OPERATING HIGHLIGHTS: GEOTHERMAL Situation under GRSC (July 2013) PEAK 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, This will result in a lower fuel cost during off-peak hours, thus allowing AP to maximize sales even during this period. 41

42 OPERATING HIGHLIGHTS: GEOTHERMAL Situation under 50:50 Sharing (Effective Aug. 2013) PEAK 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 42

43 OPERATING HIGHLIGHTS: COAL ENERGY SALES (GWh) 3,180 3,577 9% 3,886 4,239 1,193 1,074 1,139 1,121 STEAG TLI CEDC Attributable Energy Sales 95% 96% 69% 83% 101% 93% NET CAPACITY SOLD FACTOR STEAG TLI CEDC 43

44 OPERATING HIGHLIGHTS: COAL THERMA LUZON (Pagbilao) Average Selling Price P/kWh WESM Energy Sales (in GWh) BCQ 3, % 3, BCQ WESM WTD Ave Coal + Energy Fee + Purchased Power = P2.60/kWh 2,532 3,097 Average Selling Price P/kWh Coal + Energy Fee + Purchased Power = P1.86/kWh BCQ WESM WTD Ave 44

45 OPERATING HIGHLIGHTS: OIL ENERGY SALES (GWh) 35% EAUC CPPC SPPC WMPC Therma Marine Attributable Energy Sales 71% 68% 97% 96% 100% 100% 100% 100% 94% NET CAPACITY SOLD FACTOR 91% EAUC CPPC SPPC WMPC Therma Marine 45

46 OPERATING HIGHLIGHTS: DISTRIBUTION BENEFICIAL POWER SALES (Gwhr) 3% 3,142 3,322 3,606 3,727 3,934 2,935 3, BENEFICIAL GWH SALES GROWTH (BY CUSTOMER TYPE) 772 6% 816 2,163 2% 2,208 2,935 3% 3,024 Re sidential Commercial & Industrial Total Power Sales 9M M2 013 PEAK DEMAND (MW) 9M M % 999 DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total 46

47 OPERATING HIGHLIGHTS: DISTRIBUTION GROSS MARGIN / KWH SALE SYSTEMS LOSS ** Gov t Cap 8.50% 9.0% 10.6% 8.0% 7.8% 7.9% 7.9% 1.44 * * % 1% 1% 2% 4% 4% 3% 0% Sept-13 MEZ BEZ SEZ SFELAPCO Davao Light Visayan Electric Cotabato Light * Adjusted for timing of transmission charge recovery ** Year-to-date 47

48 FINANCIAL CONDITION BALANCE SHEET (In million Pesos) YE2012 PARENT End Sept 2013 CONSOLIDATED YE2012 End Sept 2013 Cash and Equivalents 8,234 3,457 30,678 15,546 Investments and Advances 62,411 70,025 25,831 27,763 Total Assets Total Interest Bearing Debt Total Liabilities Net Debt Total Equity 71,120 4,970 6,694-64,426 74,153-12,346-61, ,137 66,879 80,635 36,201 82, ,442 58,477 72,555 42,932 84,888 Current Ratio Net Debt to Equity 5.0x - 0.3x - 2.7x 0.4x 2.3x 0.5x 48

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 3 rd Unit 150 MW Tudaya 14 MW (2014) Tamugan 12 MW (2016) Manolo Fortich 52 MW 49

50 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 50

51 CONSOLIDATED PROFIT & LOSS (In Million Pesos) 3Q2012 3Q2013 % Ch % Ch Revenues 20,447 20,162-1% 60,791 58,977-3% Equity Earnings 3,466 2,127-39% 10,577 7,450-30% EBITDA 10,793 8,802-18% 30,847 28,535-7% Net Income 6,213 4,643-25% 18,023 16,558-8% Core Net Income 6,340 4,733-25% 17,642 16,431-7% 51

52 NET INCOME (In Million Pesos) 18,023 EPS = P ,080 8% 16,558 EPS = P3.00 1, , 314 QUARTERLY BREAKDOWN 6,849 8% 25% 1, , ,643 1, , ,122 14,124 10,971 3,530 3,779 3,662 4,7 64 1Q2013 2Q2013 3Q2013 3Q2012 Power Banking Food Real Estate Parent & Others 52

53 CORE NET INCOME (In Million Pesos) Non-Recurring Items Parent (1) 1,298 Power 382 (1,171) Total Gains/(Losses) Non-Recurring Items 1Q2013 2Q2013 3Q2013 3Q2012 Parent 1, Power 47 (1,102) (116) (127) Total Gains/(Losses) 1,320 (1,102) (90) (127) 17,642 EPS = P ,080 7% 16,431 EPS = P , 314 5, QUARTERLY BREAKDOWN 6,169 25% ,733 25% 6, ,122 1, ,743 12,142 3, 483 4, 881 3,778 4, 892 1Q2013 2Q2013 3Q2013 3Q2012 Power Banking Food Real Estate Parent & Others 53

54 EBITDA (In Million Pesos) 7% 3% 30,847 28,535 26,145 25,435 EBITDA (Consolidated) EBITDA (Beneficial) 54

55 PARENT NET DEBT (In Million Pesos) Parent net debt decreased by 28% Cash & Equivalents 10% 5, ,284 Y E2012 9M 2013 Long-term Debt YE M % 3,982 1,194 YE M

56 CONSOLIDATED BALANCE SHEET / KEY RATIOS (In Million Pesos, except ratios) YE M 2013 % Change Cash and Cash Equivalents 33,731 18,103-46% Total Assets 222, ,610-9% Total Liabilities 109,473 86,401-21% Total Equity 112, ,209 1% Equity Attributable to Parent 90,986 92,970 2% Book Value Per Share Current Ratio Debt to Equity Net Debt to Equity x 0.97x 0.45x x 0.75x 0.44x 56

57 ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos) 3Q2012 3Q2013 % Ch % Ch Aboitiz Power Corp. 4,764 3,662-23% 14,124 10,971-22% City Savings Bank Union Bank Pilmico AboitizLand 1, % % ,762 3,314 20% % Parent & Others (57) % (88) 1,178 1,447% Net Income Core Net Income 6,213 4,643-25% 6,340 4,733-25% 18,023 16,558-8% 17,642 16,431-7% 57

58 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 58

59 Third Quarter / YTD September 2013 Financial & Operating Results 30 October 2013

Fourth Quarter / Full Year 2013 Financial & Operating Results 12 March 2014

Fourth Quarter / Full Year 2013 Financial & Operating Results 12 March 2014 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation