Second Quarter / First Half 2010 Financial & Operating ... · OUTLOOK: Generation Business . LUZON...
Transcript of Second Quarter / First Half 2010 Financial & Operating ... · OUTLOOK: Generation Business . LUZON...
Second Quarter / First Half 2010Financial & Operating Results
6 August 2010
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
2
AGENDA
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
3
AGENDA
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
4
AGENDA
1,598EPS = P0.22ROE = 11%
12,714EPS = P1.73ROE = 64%696%
NET INCOME (in million pesos)
1121%
-8%
5
7,429
5,285
1,217
QUARTERLY BREAKDOWN
29% 334%
Distribution Generation AP Parent
219 369 385
7,542
5,241
937
1Q2010 2Q2010 2Q2009
6
CORE NET INCOME (in million pesos)
1,865EPS = P0.25ROE = 12%
12,871EPS = P1.75ROE = 65%590%
875%
-8%
7,025
5,845
1,375
QUARTERLY BREAKDOWN
17% 325%
Distribution Generation AP Parent
219 369 385
7,146 5,836
1,089
1Q2010 2Q2010 2Q2009
Non-Recurring Items1H2009 1H2010
FX gains - Parent 16 42 FX loss - Generation (98) (198) APRI Acqui-related costs (186) -
(268) (156)
Non-Recurring Items1Q2010 2Q2010 2Q2009
FX gains - Parent 7 35 (6) FX gains - Generation 397 (595) 34 APRI Acqui-related costs - - (186)
404 (560) (159)
7
CORE NET INCOME, Ex Pagbilao Effect (in million pesos)
1,865EPS = P0.25ROE = 12%
15,379EPS = P2.09ROE = 77%
724%
1064%
-8%
8,267
7,112
1,375
QUARTERLY BREAKDOWN
14% 417%
Distribution Generation AP Parent
Pagbilao Finance Lease Effect1H2010
Accreted Interest Expense 2,524 Depreciation 547 PSALM Monthly Payments (563)
2,508
Pagbilao Finance Lease Effect1Q2010 2Q2010
Accreted Interest Expense 1,250 1,274 Depreciation 274 274 PSALM Monthly Payments (282) (281)
1,242 1,266
219 369 385
8,388 7,103
1,089
1Q2010 2Q2010 2Q2009
425 626 653
9,535 8,413
1,866
1Q2010 2Q2010 2Q2009
8
PROFORMA EBITDA (in million pesos)
3,708
18,905410%
574%
-8%
9,914
8,991
2,454
QUARTERLY BREAKDOWN
9% 266%
Distribution Generation AP Parent
OPERATING HIGHLIGHTS - GENERATION
1,093
4,984356%
ENERGY SALES BREAKDOWN (GWh)
Contracted (Capacity) Contracted (Energy) Spot Market
9
636%
102%
336%
WESM PRICES (P/MWh)
Source: WESM, SNAP
Note: Calculated based on raw data downloaded from the WESM website as of June 2010. July 26 – October 25, 2008 prices are reflective of NPC TOU rates.
OPERATING HIGHLIGHTS – 1H2010 WESM HIGHLIGHTS
10
Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10Peak 3,874 5,866 13,415 12,664 9,430 8,298 8,500 Off Peak 968 2,902 7,954 6,578 5,074 4,673 4,392 All Hours 2,541 4,507 10,912 9,874 7,433 6,637 6,617
Peak Off-Peak Ave
AVERAGE CAPACITY ON OUTAGE (in MW)
Source: WESM, SNAP
20092010
1,5691,177 1,107 1,321 1,451
8,028
2,526
1,698 1,7041,355
384
1,128
8,795
1,403
Jan Feb March April May June YTD
61% 44%
10%
54% 3% 71% 22%
11
OPERATING HIGHLIGHTS – 1H2010 WESM HIGHLIGHTS
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
w1 w2 w3 w4 w5 w6 w7 w8 w9 w10 w11 w12 w13 w14 w15 w16 w17 w18 w19 w20 w21 w22 w23 w24 w25 w26
WEEKLY SYSTEM PEAK DEMAND (in MW) For the Period January 1 – June 30
Source: WESM
20092010
2009 Peak 6,830 MW 2010 Peak 7,529 MW2009-2010 Growth 10%
12
OPERATING HIGHLIGHTS – 1H2010 WESM HIGHLIGHTS
54%
ATTRIBUTABLE ENERGY SALES
(GWh)
1H20091H2010
OPERATING HIGHLIGHTS - HYDRO
CONTRACTED ENERGY (GWh), at 100%
SPOT MARKET (GWh), at 100%
NET CAPACITY FACTOR
13
437
202
1H2009 1H2010
113
64
113141
553525
Hedcor Sibulan HEDCOR LHC SNAP Magat
376
144
5730
SNAP Magat SNAP Benguet
39% 37%31% 33%
18%
5%
39%
21%13%
Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet
MAGAT’S WATER LEVEL VS. RULE CURVE, Jan-June 2010 (in MASL)
Source: SNAP1Q 2Q 4Q3Q
140
150
160
170
180
190
200
Magat Rule Curve (meter)2008 Water Level2009 Water Level2010 Water LevelCritical
14
OPERATING HIGHLIGHTS - HYDRO
AVERAGE SELLING PRICE (in P/kWh)
1H20091H2010
CONTRACTED ENERGY SPOT MARKET
15
OPERATING HIGHLIGHTS - HYDRO
OPERATING HIGHLIGHTS - HYDRO
16
SNAP MAGAT ANCILLARY SERVICES
Ancillary Revenues(in million pesos)
Accepted Capacity(in MW/hr)
957
374
1,331
1Q2010 2Q2010 Total
168
63
231
1Q2010 2Q2010 Total
211
1,395
42
365
1H2009 1H2010
OPERATING HIGHLIGHTS – GEOTHERMAL
17
Energy Sales(in GWh)
Average Selling Prices (P/kWh)
Steam Vented (GWh)
AP RENEWABLES (Tiwi-Makban)
596%
253
1,760BCQ
WESM
Steam Cost @ P1.20/kWhSteam Cost @ P1.23/kWh
ENERGY SALES (GWh)
NET CAPACITY FACTOR
1H20091H2010
907%
652
222
833
1,918
118
2,232
STEAG TLI CEDC TotalAttributable Energy Sales
18
OPERATING HIGHLIGHTS – COAL
71%
91%
63%
39%
STEAG TLI CEDC
THERMA LUZON
1H2010 Energy Sales Total = 1,918 GWh
Average Selling PriceP/kWh
19
OPERATING HIGHLIGHTS – COAL
Coal Cost + Energy Fee = P1.81/kWhCoal Cost = P1.66/kWh
905 1,012
336%ENERGY SALES (GWh)
AttributableEnergy Sales
NET CAPACITY FACTOR
1H20091H2010
20
OPERATING HIGHLIGHTS – OIL
Therma Marine Ancillary Services NGCP and Therma Marine (for the Mindanao Grid)
– For a period of 1 year starting March 2010 (date of grant of provisional authority by the ERC), renewable with both parties’ consent
– To be terminated when spot market for ancillary services is established– Fixed capital recovery, O&M and energy fees with fuel cost a pass through
Contracted Capacity
100 MW100 MWFirm Basis (Capacity)
Non-firm Basis (Energy)
1H2010 Ancillary Services Revenue (P/kWh)
P7.81
P1.89
P5.92
Capital recovery, fixed O&M, energy fee
Fuel cost, pass through
21
OPERATING HIGHLIGHTS – OIL
698
699
699
700
700
701
701
702
702
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 301 311 321 331 341 351 361
2008 2009 2010 critical level shutdown
LAKE LANAO WATER LEVEL (in MASL)
22
OPERATING HIGHLIGHTS – OIL
Amounts in Million Pesos
RENEWABLE PLANTS 296%
OPERATING HIGHLIGHTS – GENERATION
PF BENEFIClAL EBITDA
23
1,015%
THERMAL PLANTS
574%
BENEFICIAL POWER SALES (Gwhr)
9%
BENEFICIAL GWHR SALES GROWTH(BY CUSTOMER TYPE)
9%
PEAK DEMAND (MW)
8%
6%
11%
OPERATING HIGHLIGHTS – DISTRIBUTION
24
*
1H2010 SYSTEMS LOSSGROSS MARGIN / KWHR SALE
OPERATING HIGHLIGHTS – DISTRIBUTION
* Adjusted for timing of transmission charge recovery ** 12 month average
*
**
25
San Fernando
Subic EnerZone
Davao Light
Visayan Electric
Cotabato Light
2010 Gov’t Cap – 8.50%
Mactan EnerZone
Balamban EnerZone
8%
PF Beneficial EBITDA
OPERATING HIGHLIGHTS – DISTRIBUTION
Amounts in Million Pesos
1H20091H2010
26
FINANCIAL CONDITION
27
BALANCE SHEET(In million Pesos)
Cash and Equivalents
YE2009
Total Assets
Total Interest Bearing Debt
Total Liabilities
Net Debt
Total Equity
Current Ratio
Net Debt to Equity
75
43,195
16,565
17,824
16,490
25,371
3.89
0.65
Investments and Advances 42,786
1H2010
2,066
38,916
11,775
15,440
8,555
23,476
5.28
0.36
36,489
PARENT
YE2009
3,815
111,341
67,755
76,294
63,940
35,047
0.68
1.82
24,800
1H2010
6,244
121,971
64,747
76,427
57,348
45,544
1.24
1.26
25,975
CONSOLIDATED
DEBT PROFILE – AP PARENT
Maturity Profile - PhPM(As of June 2010)
Breakdown by Tenor(As of June 2010)
Breakdown by Currency(As of June 2010)
28
Breakdown by Interest Rate(As of June 2010)
Long Term99.9%
Short Term0.1%
Peso100%
Fixed100%
PROJECT UPDATE: 42.5 MW SIBULAN HYDRO Target date for start of operations
− March 2010 for 26 MW plant (Plant B)− July 2010 for 16.5 MW plant (Plant A)
Capex spent as of end-1H2010 at P5.4 billion
PROJECT UPDATEPROJECT UPDATE: Generation Business
29
PROJECT UPDATE: 246 MW CEBU COAL
• Broke ground in January 2008. Completion dates as follows:
− Unit 1 in March 2010
− Unit 2 in May 2010
− Unit 3 in December 2010
• Contracted capacity at 120 MW
− 105 MW with VECO
− 15 MW with MECO
• Estimated capex as of end-1H2010 at P15.7 billion
PROJECT UPDATEPROJECT UPDATE: Generation Business
30
PROJECT UPDATE
31
PROJECT UPDATE: AMBUKLAO-BINGA
Total combined project cost of $280 million- $189 million for 75 MW Ambuklao + $10 million for new
headrace tunnel
- $81 million for 100 MW Binga
Target completion dates for Ambuklao- All three units by 4Q2011
- To increase capacity to 105 MW
Target completion dates for Binga - Unit 1: 2011
- Unit 2: 2012
- Unit 3: 2013
- Unit 4: 2014
- To increase capacity to 120 MW
Capex spent as of end-1H2010 at $185 million
PROJECT UPDATE: Generation Business
31
32
OUTLOOK: Generation Business
LUZON GRID Binga Hydro 20 MW
Subic Coal 300 MW
Pagbilao Coal 350 MW
MINDANAO GRID Tamugan Hydro 15 MW
Upper/Downstream Sibulan 15 MW
Mindanao Coal Expansion
− Davao 150 MW
− STEAG 150 MW (MOU signed)
IPP Administrator (IPPA) Contracts Unified Leyte Geothermal plants
(EDC) 550 MW, Visayas Grid
BROWN/GREENFIELD PRIVATIZATION
Earliest by July 2011 IPPA: Caliraya-Botokan-Kalayaan
(J Power) 728 MW, Luzon Grid
Asset sale: Agus Hydro 727 MW & Pulangi Hydro 255 MW, Mindanao Grid
− Restricted capacity per EPIRA
Annex A: 1H2010 EARNINGS BREAKDOWN
33
YEAR - TO - DATE FOR THE QUARTER%
INVESTEE OWNED ACTUAL ACTUAL ACTUAL ACTUALJUN 30/2010 2010 2009 2010 2009
Parent & Others (656.78) (86.68) (324.58) (105.77)Power Generation Group: HEDCOR, INC. 100.0% (132.83) 47.73 (57.03) 96.83 HEDCOR SIBULAN 100.0% 39.38 (0.14) 19.11 (0.09) LUZON HYDRO 50.0% 24.78 94.60 9.63 81.78 SNAP - MAGAT 50.0% 68.02 177.76 (152.29) 222.01 SNAP - BENGUET 50.0% 67.21 (77.19) 9.36 56.28 SOUTHERN PHILS. POWER 20.0% 23.05 16.43 9.50 8.30 WESTERN. MINDANAO POWER 20.0% 106.93 50.28 63.62 28.36 CEBU PRIVATE POWER CORP. 60.0% 100.86 123.57 48.04 63.52 EAST ASIA UTILITIES CORP. 50.0% 83.20 54.93 46.17 24.49
THERMA MARINE 100.0% 453.99 0.00 342.09 0.00 STEAG 34.0% 410.44 567.38 259.20 287.55 ABOVANT 60.0% 15.62 1.98 24.82 (0.41) THERMA LUZON 100.0% 6,504.15 0.00 2,203.73 0.00 AP RENEWABLES, INC. 100.0% 4,996.73 6.79 2,410.02 44.50 OTHERS 22.16 (16.81) 5.29 24.03
Sub-Total Power Generation 12,783.69 1,047.31 5,241.27 937.15Power Distribution Group: COTABATO LIGHT & POWER 99.93% 31.38 27.01 38.90 20.33 DAVAO LIGHT & POWER 99.93% 208.06 398.10 111.77 237.50 VISAYAN ELECTRIC CO. 55.19% 179.24 69.32 116.45 49.30 SFELAPCO 43.78% 21.41 12.92 24.24 15.16 SUBIC ENERZONE 99.97% 73.31 84.03 38.31 38.43 MACTAN ENERZONE 100.00% 46.43 31.68 24.21 17.59 BALAMBAN ENERZONE 100.00% 27.60 13.98 14.68 7.14
Sub-Total Power Distribution 587.43 637.03 368.55 385.45TOTAL NET INCOME 12,714.35 1,597.66 5,285.24 1,216.83
NET INCOME TO COMMON 12,714.35 1,597.66 5,285.24 1,216.83% increase (decrease) 696% 334%
CORE NET INCOME 12,870.51 1,865.44 5,845.40 1,375.38
% increase (decrease) 590% 325%
CORE NET INCOME, bef Finance Lease Accounting 15,378.68 1,865.44 7,111.76 1,375.38
724% 417%
CONTRACTED (ENERGY) CONTRACTED (CAPACITY)
SPOT MARKET
636%2,857
102%
336%
Geothermal
Hydro
Coal
Oil
403
814
302
1,314
388
Annex B: OPERATING HIGHLIGHTS - GENERATION
34
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
35
AGENDA
FOCUS 2020The Beginning
36
2,2202,196
1,3651,631
2Q09 2Q10 6M09 6M10
Net income(in million pesos)
Net income matched record performance last year,amid decline in asset yields
16%
1%
37
Net Interest Margin
Average Yield – Average Cost
4.2%
3.5% 3.5% 3.6%
2008 2009 6M09 6M10
7.4%6.4% 6.7%
6.0%
3.3% 2.9% 3.2%2.3%
2008 2009 6M09 6M10
Yield Cost
Margin inched up as lower average cost offset decline in yield
38
Earning assets expansion & lower funding cost, countered by lesser securities trading gains
Net Interest income(in million pesos)
Non-Interest Income(in million pesos)
3,5383,198
1,8181,752
2Q09 2Q10 6M09 6M10
4%
2,1612,400
1,3271,539
2Q09 2Q10 6M09 6M10
14%
11% 10%
39
167 173188
210213
86% 85%87% 86%
88%
100
150
200
250
300
2007 2008 2009 1H09 1H1060%
65%
70%
75%
80%
85%
90%
Earning assets (in billion pesos ) % to Total assets
Increasing share in earning assets
12%
Earning AssetsCAGR ‘00–‘09
21%
40
488625
882533
1,019747
169
169355
321
1,0261,093
2Q09 2Q10 6M09 6M10
Trading gain - net Service charges, fees & commissions Miscellaneous
Non-interest income(in million pesos)
2,1612,400
Pressure to maintain trading gains and service fees
1,5391,327
41
Operational expenses increase from business expansion
Operating expenses(in million pesos)
2,9372,781
1,3501,496
2Q09 2Q10 6M09 6M10
11%
6%
42
106.8
161.4
194.5173.6
193.6
2007 2008 2009 1H09 1H10
Outstanding deposits(in billion pesos)
CAGR‘00–‘09
26%
Onward to realization of FOCUS 2010 program
12%
43
42.8
60.066.2
57.870.2
2007 2008 2009 1H09 1H10
Growing credit portfolioLoans + Preferreds
(in billion pesos)
22%CAGR
‘00–‘0916%
44
13.9%15.7%
6M09 6M10
2.1%1.8%
6M09 6M10
Return on average assets
Return on average equity
2.0 1.9
6M09 6M10
Revenue to expense
Moderate key financial ratios
45
Capital adequacy ratio remains healthy, supportive of growth
11.4%
16.1%
12.9%
16.4% 15.7%
2007 2008 2009 1H09 1H10
Capital adequacy ratio (%)
46
RE-BASED STOCK PRICE PERFORMANCE (06/30/09 - 06/30/10)
75
100
125
150
175
200
PSEi Financial Index UnionBank
Outperformed stock market and financial sector indices price gain
Source: Bloomberg06/30/09= 100
47
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
48
AGENDA
3,130 3,295
1,699 1,458
789 1,248
536
66672
63
1H09 1H10Freight Passage AODI & SOI Service Fees Other Revenue
Higher international ship chartering businessHigher overall value-added business
REVENUES
P6.2BP6.7B
49
8%
1,653 1,712
961 871
315628
413
3443035
2Q09 2Q10
P3.4BP3.6B
6%
Amounts in Million Pesos
2,677 2,505
1,699
1,458
1H09 1H10
Freight Passage
REVENUES
P4.4BP4.0B
50
Amounts in Million Pesos
-9% reduction from lower operating capacity
-3 SuperFerry and 2 freighter vessels on drydock
-55 less voyages (compared to full operation)
43 42
6 11
2Q09 2Q10
FREIGHT
1H10
-Higher freighter volume
-Lower rate per teu
Freighter Volume in 000 TEUsRopax Volume in 000 TEUs
P21,486 / TEUP17,155 / TEU
8575
11 30
1H09 1H10
P20,808 / TEU
P17,020 / TEU
51
CAPACITIES
SuperFerry Operating Capacity
-Lower freight and passenger capacity because of lesser number of vessels
Unutilized Capacity in TEUsSuperFerry Volume in TEUs
1H09 1H10
89%
99%
1H09 1H10
89%
93%
Unutilized Capacity in PAXSuperFerry Volume in PAX
FREIGHT PASSAGE
52
PASSENGERROPAX
- 18% lower volume
- 8% lower rate
Pax volume in Ropax Pax volume in Fast craft 53
FASTCRAFT
- 65% higher volume
- 12% lower rate due to entrance of new ports, Bacolod and Bataan
Amounts in Thousand
1,228
1,012
1H09 1H10
P1,009/pax
P1,097/pax
1,118
676
1H09 1H10
P274/pax
P312/pax
'DEC09 'JUN10
Under constructionPallet Position
54
Value Added
- 38k pallet positions and expanding to 56k by Sep 2011- 100% utilization
24,000
56,000
36,000
757
329
2Q09 2Q10
EBITDA
55
P428M57%
Amounts in Million Pesos
1,213
423
1H09 1H10
P790M65%
15
20
25
30
35
40
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
FUEL 2008 FUEL 2009 FUEL 2010
VESSEL FUEL COSTS
• Total vessel fuel cost is P1.2B, 29% higher vs 1H09
• 40% higher average fuel price per litre
Price/litre
56
1H09 Avg rate P19/liter
1H10 Avg rate P26/liter
364
(11)
2Q09 2Q10
NET INCOME
57
(152)
496
1H09 1H10
P374M103%
P649M131%
Amounts in Million Pesos
Issued a 5-year corporate fixed rate notes facility
Acquisition and improvement of 3 Ropax vessels (P1.8B)
Vessel drydockings & renovations.
Interest Bearing Debt
Amounts in Million Pesos
1,392 1,320
2,023
52
'DEC09 'JUN10
Long term loansShort term Loans
P 1.4B
P 3.3B
P1.9B132%
58
• Total Assets increased 16% to P12.4B
• Cash & Cash Equivalents of P897.4M
• D/E ratio of 1.5:1.00 (Int. Bearing Debt / Equity of 0.66:1.00)
• Capital expenditures of P2.0B (P1.8B Vessel acquisition and improvements).
10,622
12,373
5,462
7,324
5,160 5,049
'DEC09 'JUN10
Assets Liabilities Equity
BALANCE SHEET
59
Amounts in Million Pesos
2GO Integration
60
Merging Zoom In Packages (ZIP) and Reefer Van Specialists (RVSI) with ATS
ZIP business focus is on full container load (FCL) and loose container load (LCL) cargo
RVSI business focuses on the cold chain business which involves the transport of frozen and perishable goods
Merging the companies will result in cost efficiencies and better synergies and ultimately serving customers better.
OUTLOOK
61
Vessel fleet of 22 from 13
Fully operating fleet for the next 30 months
More frequencies, more reliability, better service
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
62
AGENDA
3,140 3,202
1,945 2,399
444552
1H2009 1H2010
FINANCIAL HIGHLIGHTS
9M 2006REVENUE (in million pesos)
Flour Feeds Swine
63
6,1545,530 11%
1,584 1,618 1,611
1,077 1,323 1,039
266286
230
1Q10 2Q10 2Q09
2,9273,227
2,880
10% 12%
QUARTERLY BREAKDOWN
115
402224
337
46
127
1H2009 1H2010
FINANCIAL HIGHLIGHTS
NET INCOME (in million pesos)
Flour Feeds Swine
64
867
385
125%
124
279
98
185
152
128
64
64
22
1Q10 2Q10 2Q09
372
495
248
33% 99%
QUARTERLY BREAKDOWN
212
643299
425
86
189
1H2009 1H2010
FINANCIAL HIGHLIGHTS
EBITDA (in million pesos)
Flour Feeds Swine
65
1,267
597
110%
214
428
165
229
195
171
95
94
38
1Q10 2Q10 2Q09
539
718
374
33% 92%
QUARTERLY BREAKDOWN
OUTLOOK
66
Iligan: Feedmill 2• Construction completed in July 2010• Commissioning and start of commercial operation by August 2010• This additional production line has an estimated annual capacity of 115,000 metric
tons
Tarlac & Iligan Feedmill: • Launching of the newest game fowl line, Salto, in January 2010. • Documentation works for ISO certification of the two feed mill plants commence in
April 2010.
Bio-digester: • Nucleus and Farm 3 started operating in February 2010 while Farm 1 in May 2010.
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
67
AGENDA
CONSOLIDATED PROFIT & LOSS (In Million Pesos)
68
Revenues
Equity Earnings
EBITDA
Net Income
Core Net Income
2Q2009 2Q2010
10,896 24,436
1,442 1,021
3,828 10,054
2,023 5,035
% Ch
124%
-29%
163%
149%
2,143 5,463 155%
1H2009 1H2010
19,345 47,180
1,865 1,973
5,579 20,579
3,438 11,281
% Ch
144%
6%
269%
228%
3,008 11,401 279%
Core Net Income(Ex Pagbilao Effect)
2,143 6,430 200% 3,008 13,317 343%
NET INCOME (In Million Pesos)
Power Banking Transport Food Parent & Others
69
6,247
5,035
2,023
19% 149%
2Q RESULTS
NET INCOME (In Million Pesos)
70
11,281EPS = P2.04ROE = 53%
228%
1H RESULTS
3,438EPS = P0.62ROE = 19%
Power Banking Transport Food Parent & Others
CORE NET INCOME (In Million Pesos)
71
2Q RESULTS
8% 155%
Power Banking Transport Food Parent & Others
2,143
5,9385,463
Non-recurring loss of P428 mn
Parent:•P0.2 mn FX loss
Power•P428 mn FX loss
CORE NET INCOME (In Million Pesos)
72
Power Banking Transport Food Parent & Others
279%
3,008EPS = P0.54ROE = 16%
1H RESULTS
11,401EPS = P2.06ROE = 53%
Non-recurring loss of P120 mn
Parent:•P0.5 mn FX loss
Power•P119 mn FX loss
73
Power Banking Transport Food Parent & Others
CORE NET INCOME , Ex Pagbilao Effect (In Million Pesos)
2Q RESULTS
6,887
2,143
7% 200%6,430
AEV’s Share of Pagbilao Finance Lease Effect at P968 mn
+ P973 mn in accreted interest expense + P209 mn in depreciation expense- P215 mn PSALM payments
74
Power Banking Transport Food Parent & Others
CORE NET INCOME , Ex Pagbilao Effect (In Million Pesos)
343%
3,008EPS = P0.54ROE = 16%
1H RESULTS13,317EPS = P2.41ROE = 62%
AEV’s Share of Pagbilao Finance Lease Effect at P1,916 mn
+ P1,928 mn in accreted interest expense + P418 mn in depreciation expense- P430 mn PSALM payments
EARNINGS CONTRIBUTION (In Million Pesos)
75
Aboitiz Power Corp.
City Savings Bank
Union Bank
ATSC
Pilmico
2Q2009 2Q2010
925 4,038
16 35
641 550
281 (10)
% Ch
336%
112%
-14%
-104%
Net Income
Parent & Others
2,143 5,463 155%Core Net Income
2,023 5,035 149%
(89) (73) --
248 495 100%
1H2009 1H2010
1,215 9,714
30 61
869 903
384 (120)
% Ch
700%
105%
4%
-131%
3,008 11,401 279%
3,438 11,281 228%
554 (143) --
386 867 125%
2,143 6,430 200%Core Net Income(Ex Pagbilao Effect)
3,008 13,317 343%
5,579 5,679
20,579
17,334
EBITDA (Consolidated) EBITDA (Proforma)
1H2009 1H2010
EBITDA (In Million Pesos)
76
269% 205%
2,7072,728
DIVIDENDS RECEIVED (In Million Pesos)
77
Power Banking Transport Food Others
PARENT NET DEBT (In Million Pesos)
Parent net debt increased by 19% from end-2009 level
Cash & Equivalents
Long-term Debt
78
409%
61%
(In Million Pesos, except ratios)
Cash and Cash Equivalents
YE2009 1H2010 % Change
Total AssetsTotal Liabilities
Total Equity
Book Value Per ShareCurrent RatioDebt to EquityNet Debt to Equity
5,582
143,28188,639
54,642
8.090.791.621.28
8,327
157,34091,557
65,783
9.661.241.391.02
49%
10%3%
20%
CONSOLIDATED BALANCE SHEET / KEY RATIOS
79
• Overview
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• AEV Financials
• Q&A
80
AGENDA
Second Quarter / First Half 2010Financial & Operating Results
6 August 2010