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

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

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 ,700 5% 1,181 16,426 1,336 6,879 7,512 QUARTERLY BREAKDOWN 2% 1% 4,005 4,049 4,142 4,229 4, ,795 1,932 1,932 1,853 1,821 7,639 7,578 1,883 1,785 1,902 2,008 1,993 1Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Flour Feeds Farms 4

5 FINANCIAL HIGHLIGHTS EBITDA (in million pesos) QUARTERLY BREAKDOWN 2, % 2, % 9% Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Flour Feeds Farms 5

6 FINANCIAL HIGHLIGHTS NET INCOME (in million pesos) QUARTERLY BREAKDOWN 1, % 1, % 17% Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Flour Feeds Farms 6

7 OPERATING HIGHLIGHTS Flour Division 0.5% 221, ,777 Sales Volume In MT Average Selling Prices and Gross Profit Peso/bag Average Selling Price Gross Profit 7

8 OPERATING HIGHLIGHTS Feeds Division Sales Volume In MT 269,492 10% 295,189 22,900 23,232 6,210 5,581 Average Selling Prices and Income Over Ingredient Cost Peso/MT Average Selling Price Income Over Ingredient Cost 8

9 OPERATING HIGHLIGHTS Farms Division Sales Volume In 000 kilos 3% 11,969 11, Average Selling Prices and Gross Profit Peso/kilo Average Selling Price Gross Profit 9

10 FLOUR OUTLOOK Export: Vietnam & Indonesia 10

11 FEEDS OUTLOOK Feedmill Expansion Iligan - Target Completion 2015 Inter-Island Pier 2 Target Completion 2015 Feedmill Expansion Tarlac - Target Completion

12 FARMS OUTLOOK Completion of Farm Expansion 2 : Increase in sow level from 6,500 to 8,350 heads completed by Q Grow-Fin Farm 6 June 2014 Grow-Fin Farm 7 August 2014 Grow-Fin Farm 1 to 5 expansion Farm Expansion 3 : Increase in sow level from 8,350 to 13,640 heads completed by Q Breeder Farm 2 & Offsite Nursery Farm Grow-Fin Farm 8 to to

13 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 13

14 Net income growth on account of improvement in net interest income and income contribution from CitySavings Net Income In million pesos 7,605 19% 9,029 1,290 31% 1,691 Q Q

15 Non interest income propelled by recurring fee income Non Interest Income In million pesos 11,321 2, , % , x -12.7% -1.1% +62.5% -79.7% 9, , ,473 17% 87 1, , % +21.6% +31.7% -28.4% -5.3% x 862 2, x Q Q Service charges, fees & commissions FX gains/losses Miscellaneous Trading gain/losses - net Dividend Income Premium Revenue - net 15

16 Deposit base continued to exhibit strong growth Deposits ADB in billion pesos % % % % Q Q % 56 30% UnionBank 72 Peso CASA Deposits ADB in billion pesos Subsidiaries 25.3% 30.7% 26.7% % % 24% % +28.6% % % % 20.00% % 20 Q Q % 16

17 Credit portfolio expanded on the back of robust growth in retail lending Credit Portfolio Net of Provisions ADB in billion pesos % x +7.1% -12.5% -13.0% % % Preferreds + Corp. bonds Corporate Commercial Business Line Credit Card Auto Loans Mortgage Salary Loans 17

18 Operating expenses rose on business expansion Operating Expense In million pesos 9,163 7, % 1,500 1, x +47.6% 1,960 2, % ,541 1, X -13.4% -4.0% 6,229 6,324 Q Q % Core Bank Taxes Subsidiaries 18

19 Key financial ratios maintained at high levels Return on Equity Revenue to Expense 17.7% 19.1% Return on Average Asset % 2.6%

20 Capital ratios remained healthy and well above regulatory requirements Capital Adequacy Ratios 20.7% 18.0% 18.5% 16.0% CAR Tier 1 20

21 UnionBank stock outperforms both the PSEi and the Financial Index Re-based Stock Performance 12/31/ /31/ % 130.0% 110.0% 90.0% 70.0% 50.0% Source: Bloomberg, 12/31/12= 100 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-1 UnionBank PSEi Financial Index 21

22 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 22

23 2013 FINANCIAL HIGHLIGHTS 35% Revenue growth due to consolidation of 4Q revenues from Lima REVENUES (in Php millions) 35% 24

24 2013 FINANCIAL HIGHLIGHTS Uptick in Residential sales driven by House & Lot and Condo products SALES (in Php millions) 19% 14% 25

25 2013 FINANCIAL HIGHLIGHTS 21% EBITDA Growth Steady NIAT EBITDA (in Php millions) NIAT (in Php millions) 21% 1% 26

26 RESIDENTIAL Phase 2 launched in Apr 2013 High-end lot-only subdivision Launched Phase 1 in Jun 2013 and Phase 2 in Oct 2013 House & Lot; mid-market Construction contract awarded in Oct 2013 Building construction in full swing 27

27 COMMERCIAL The Outlets at Pueblo Verde opened in Dec

28 GROWTH PLANS ON TRACK Lima Land was fully acquired in Feb About LiMA Total land holdings: 485 has. Inventory to sell : 150 has. LTC: 30,000 workers by end of Distribution utility that sells 120M kwh/year. Water utility that can provide up to 40,000 cum. of water per day 29

29 GROWTH PLANS ON TRACK Formed a JV with Ayala Land Cebu District Property Enterprise Inc. JVC to develop a 15-hectare city center in Mandaue City, Cebu with residential and commercial components, retail and office spaces Targeted to be launched in

30 GROWTH PLANS ON TRACK 2013 CAPEX hit 4.0 B 2014 CAPEX targeted at 5.4 B 36% 17% 47% 40% 9% 51% Land acquisition Project development cost Other project initiatives Land acquisition Project development cost Other project initiatives 30

31 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 31

32 NET INCOME (in million pesos) QUARTERLY BREAKDOWN 24,407 EPS = P ,760 24% 18,577 EPS = P2.53 4,595 4,918 4,767 10% 29% 4,297 6,024 15,226-33% 3,971 4,100 4,031 3,124 5,607 2,795 3, % Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Generation Distribution AP Parent & Others 32

33 CORE NET INCOME (in million pesos) Non- Recurring Items AP Parent (361) 430 AP- Gen 1,066 (1,978) 705 (1,547) Non- Recurring Items 1Q2013 2Q2013 3Q2013 4Q2013 4Q2012 FX gains/(loss) 154 (1,435) (156) (434) 356 Gain due to step acquisition/others Debt prepayment costs (93) (14) Others (133) 61 (1,435) (151) (23) 209 QUARTERLY BREAKDOWN 23,702 EPS = P % 20,124 EPS = P2.74 4,533 6,353 4,918 12% 4,320 26% 5,815 21,694 17,204-21% 3,879 5,537 4,202 3,147 5,399 2,795 3, % Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Generation Distribution AP Parent & Others 33

34 BENEFICIAL EBITDA (in million pesos) QUARTERLY BREAKDOWN 36,530 11% 32,336 7,634 9,916 8,353 23% 30% 9,166 6,432 32,121 27,999-13% 6,471 8,572 7,106 8,125 5,850 4,554 4,581 +1% 1,228 1,399 1, ,041 1Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Generation Distribution AP Parent & Others 34

35 OPERATING HIGHLIGHTS: GENERATION ENERGY SALES BREAKDOWN (GWh) CAPACITY SALES BREAKDOWN (MW) 10,660 3% 1,547 3% 10,949 1,398 1,914 1,789 2, , ,473 7, Energy contracts Spot market Capacity contracts Energy contracts Spot market Capacity contracts Ancillary P/kWh FY 2012 FY 2013 Bilateral Spot Market

36 OPERATING HIGHLIGHTS: GENERATION Year-End 2012 Year-End ,305 MW 1,305 MW 57% 605 MW 381 MW 381 MW 14% 305 MW 238 MW 1,660 MW 75% 26% 17% 11% With Off-taker Generation Based With Off-taker Capacity Based Without Off-taker Bulk of the Power Supply Agreements are now under capacity-based contracts 36

37 OPERATING HIGHLIGHTS: 2013 WESM HIGHLIGHTS WESM TIME WTD AVERAGE PRICES (P/MWh) Luzon Grid Peak Off Peak All Hours ,796 2,035 3, ,502 2,558 4, ,882 3,397 5,843 Forced outages of Leyte plants (due to Typhoon Yolanda), and units from Masinloc, Calaca, and San Lorenzo Maintenance of Malampaya Maintenance/outage of GN Power and Pagbilao Forced outages of Masinloc, StaRita, Malaya & Ilijan High Outage: 1 unit of Sual and Calaca on outage Hydros still on minimal output 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 Note: 1. Calculated based on raw data provided by WESM as of Dec July 26 October 25, 2008 prices are reflective of NPC TOU rates. Source: WESM, SNAP 37

38 OPERATING HIGHLIGHTS: HYDRO ATTRIBUTABLE ENERGY SALES (GWh) CONTRACTED ENERGY (GWh), at 100% % Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet 1,131 1,463 SPOT MARKET (GWh), at 100% SNAP Magat NET CAPACITY SOLD FACTOR SNAP Benguet 62% 52% 45% 43% 43% 26% 91% 61% 62% 55% Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet 38

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

40 OPERATING HIGHLIGHTS: HYDRO SNAP MAGAT & SNAP BENGUET ANCILLARY SERVICES (at 100%) Ancillary Revenues (in million pesos) Accepted & Billed Capacity (in GW/h) 11,509 1,984 52% 5,534 2, % 1,488 9,524 2,565 2,969 2, SNAP Magat SNAP Benguet FY 2012 FY 2013 P/kWh

41 OPERATING HIGHLIGHTS: GEOTHERMAL AP RENEWABLES (Tiwi-Makban) WESM BCQ 3, Energy Sales (in GWh) 17% 2, Average Selling Prices (P/kWh) 3.13 BCQ WESM WTD Ave Steam & Purchased Power - P1.53/kWh Steam & Purchased Power - P1.56/kWh 3,338 2,153 Steam Vented (GWh) 198 Capacity Sold Factor 85% 82% 11 41

42 OPERATING HIGHLIGHTS: COAL ENERGY SALES (GWh) 5% 4,232 4,515 5,142 5,409 1,516 1,485 1,495 1,477 STEAG TLI CEDC Attributable Energy Sales CAPACITY SOLD FACTOR 95% 97% 69% 101% 87% 92% STEAG TLI CEDC 42

43 OPERATING HIGHLIGHTS: COAL THERMA LUZON (Pagbilao) Energy Sales (in GWh) Average Selling Price P/kWh , % 4, Coal + Energy Fee + Purchased Power = P2.61/kWh BCQ WESM WTD Ave 3,490 4,003 Average Selling Price P/kWh WESM BCQ Coal + Energy Fee + Purchased Power = P2.65/kWh BCQ WESM WTD Ave 43

44 OPERATING HIGHLIGHTS: OIL ENERGY SALES (GWh) 29% , Therma Mobile EAUC CPPC SPPC WMPC Therma Marine Attributable Energy Sales CAPACITY SOLD FACTOR 100% 71% 70% 97% 96% 100% 100% 100% 100% 94% 91% Therma Mobile EAUC CPPC SPPC WMPC Therma Marine 44

45 OPERATING HIGHLIGHTS: DISTRIBUTION BENEFICIAL POWER SALES (Gwhr) 4% 2,461 2,507 2,790 3,142 3,322 3,606 3,727 3,934 4, BENEFICIAL GWH SALES GROWTH (BY CUSTOMER TYPE) PEAK DEMAND (MW) 6% 1,034 5% 1,089 2,901 3% 2,986 3,934 4% 4, , Residential Commercial & Industrial Total Power Sales DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total 45

46 OPERATING HIGHLIGHTS: DISTRIBUTION GROSS MARGIN / KWH SALE SYSTEMS LOSS ** Gov t Cap 8.50% 8.7% 7. 5% 8. 9% 9. 5% 7.9% 7.8% 8.3% * 4% 4% 1% 1% 1% 2% 2% MEZ BEZ SEZ SFELAPCO DLPC VECO CLPC * Adjusted for timing of transmission charge recovery ** 12 month moving average 46

47 FINANCIAL CONDITION BALANCE SHEET (In million Pesos) YE2012 PARENT YE2013 CONSOLIDATED YE2012 YE2013 Cash and Equivalents 8,234 13,803 30,678 31,384 Investments and Advances 62,411 64,573 25,831 25,371 Total Assets Total Interest Bearing Debt Total Liabilities Net Debt Total Equity 71, ,694-64,426 79,256-12,412-66, ,137 66,879 80,635 36,201 82, ,919 78, ,628 47,107 91,291 Current Ratio Net Debt to Equity 5.0x 0.0x 1.2x 0.2x 2.7x 0.4x 2.9x 0.5x 47

48 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) Maris Canal 8 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 69 MW 48

49 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 49

50 CONSOLIDATED PROFIT & LOSS (In Million Pesos) 4Q Q 2013 % Ch FY 2012 FY 2013 % Ch Revenues 20,227 31,973 58% 81,018 90,950 12% Equity Earnings 2,735 3,088 13% 13,312 10,539-21% EBITDA 9,968 8,697-13% 40,816 37,233-9% Net Income 5,906 4,469-24% 23,929 21,027-12% Core Net Income 5,746 4,575-20% 23,388 21,006-10% 50

51 NET INCOME (In Million Pesos) 23,929 EPS = P4.33 1,299 12% 21,027 EPS = P3.81 6,849 QUARTERLY BREAKDOWN 4% 24% 3,851 18,774 1,187 1,256 4,115 14,195 1,156 5, , ,469 1, ,530 3,779 3,662 3,224 5, ,650 1Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Power Banking Food Real Estate Parent & Others 51

52 CORE NET INCOME (In Million Pesos) Non-Recurring Items FY 2012 FY 2013 Parent (0.8) 1,298.4 Power 542 (1,277) Total Gains/(Losses) Non-Recurring Items 1Q Q Q Q Q20 12 Parent 1, Power 47 (1,102) (116) (106) 160 Total Gains/(Losses) 1,320 (1,102) (90) (106) ,388 EPS = P4.24 1,299 3,851 18,233 10% 21,006 EPS = P3.80 1,256 4,115 15,472 5, ,794 3,483 QUARTERLY BREAKDOWN 3% 20% 6, ,733 4, ,881 3,778 3,330 5, ,490 1Q2013 2Q2013 3Q2013 4Q2013 4Q2012 Power Banking Food Real Estate Parent & Others 52

53 EBITDA (In Million Pesos) 9% 8% 40,816 37,233 34,921 32,286 EBITDA (Consolidated) EBITDA (Beneficial) 53

54 PARENT NET DEBT (In Million Pesos) Parent net debt decreased by 2% Cash & Equivalents 1340% 5,988 5, ,346 YE 2012 YE 2013 Long-term Debt 131% YE 2012 YE ,191 3,982 YE 2012 YE

55 CONSOLIDATED BALANCE SHEET / KEY RATIOS (In Million Pesos, except ratios) YE 2012 YE 2013 % Change Cash and Cash Equivalents 33,731 36,119 7% Total Assets 222, ,231 11% Total Liabilities 109, ,610 14% Total Equity 113, ,621 8% Equity Attributable to Parent 91,073 96,961 6% Book Value Per Share Current Ratio Debt to Equity Net Debt to Equity x 0.97x 0.45x x 1.02x 0.50x 55

56 ANNEX A: EARNINGS CONTRIBUTION (In Million Pesos) 4Q Q 2013 % Ch FY 2012 FY 2013 % Ch Aboitiz Power Corp. 4,650 3,224-31% 18,774 14,195-24% City Savings Bank Union Bank Pilmico AboitizLand % % ,331 4,115 24% 1,299 1,256-3% Parent & Others % 5 1,187 22,212% Net Income Core Net Income 5,906 4,469-24% 5,746 4,575-20% 23,929 21,027-12% 23,388 21,006-10% 56

57 AGENDA Review of Business Units Pilmico Foods Corporation Union Bank of the Philippines AboitizLand Aboitiz Power Corporation AEV Financials Q&A 57

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