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Our Mission Ayala Corporation, a holding company with a diverse business portfolio, has a legacy of pioneering the future. Founded in 1834, it has achieved its position of leadership by being values driven, goals oriented, and stakeholder focused. Anchored on values of integrity, long-term vision, empowering leadership, commitment to national development, we fulfill our mission to ensure long-term profitability, increase shareholder value, provide career opportunities, and create synergies as we build mutually beneficial partnerships and alliances with those who share our philosophy and values. With entrepreneurial strength, we continue to create a future that nurtures to fruition our business endeavors and personal aspirations.
• Ayala Corporation was founded by two pioneering and visionary individuals in 1834 (Domingo Roxas & Antonio de Ayala) • Ayala’s pioneering history is inextricably linked to that of the country’s and to the development of its key industries • 1834: Introduced first commercial distillery in the country • 1851: Established presence in Banco Espanol Filipino, the first commercial bank in the Philippines and in Southeast Asia, later branching out into life and nonlife insurance • 1876: Pioneered the country’s first public transport (Tranvia)
1920s – 1930s: Pioneered in large-scale, masterplanned real estate development, transforming a vast track of land into the country’s first and premiere business district
1970s: Forged partnership with Mitsubishi Corporation; listed in the Philippine Stock Exchange
1980s: Expansion and growth of real estate and banking businesses; established presence in electronics manufacturing
1990s: Invested in mobile telecommunications network and privatization of Manila’s water distribution infrastructure; established Honda & Isuzu automotive dealerships
2000: Invested in business process outsourcing sector
2011: Investing in Power and Transport Infrastructure Sector
Ayala Group Overview Our portfolio of assets consists of our core businesses, international, and new ventures
CORE BUSINESSES: Expand Aggressively 50.2%
Largest and only full line property developer in the country
INTERNATIONAL: Turn-Around
NEW BUSINESSES: Scale-Up 100.0%
58.0%
24th of the top 50 EMS companies in the world 44.0%
Most profitable bank among peers
100.0% 30.5%
43.2%
Second largest telco company in the country
Manila Water
• Top 5 in CRM • Top 3 in KPO • Top 3 in Graphics Design Outsourcing
100.0%
Pioneer in water infrastructure development 5
AYALA IS SCALING-UP ON NEW GROWTH PLATFORMS, SPECIFICALLY IN POWER AND INFRASTRUCTURE Equity investments will double in the next five years Investments – US$ Billions (total over last 5 years vs. total over next 5 years)
2x
1.0
0.5 BPO AG Holdings MWC Others
0.2
Others
0.5
Power
POWER: • ~US$100-200M annually on power projects over the next five years • Target 1,000MW over 5 years of renewable and conventional power assets INFRASTRUCTURE: • ~US$300-US$500M allotted for PPP projects , focusing on airport, rail and toll-road projects • Forging strategic partnerships with local and foreign entities
0.2 0.1 0.1
0.3
0.1 2007-2011
Infrastructure
We are seeking a combination of acquisitions and green-field investments to optimize cash and earnings
2012-2016 6
POWER: Committed US$150M of equity on over 300MW of capacity CONVENTIONAL ENERGY
RENEWABLE ENERGY
NORTHWIND POWER CORP. 50% • 33MW windfarm • Expansion potential of over 60 MW
SOUTH LUZON THERMAL ENERGY CORP. (Batangas) 50%
• 2x135 MW CFB • Phase 1 target operations in 2014 • 2x135 MW CFB
PALM CONCEPCION POWER CORP. (Panay) • Signed MOA 40%
Robust pipeline of acquisition and greenfield opportunities in renewable and conventional technologies
PHILNEWHYDRO GROUP 70% • 100+ MW of approved service contracts
PHILNEWENERGY 50% • 35 MW of approved service contracts
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• Group-wide revenues of close to P250B in 2011, equivalent to nearly 3% of Philippine GDP
Ayala Corporation Consolidated Net Income (in million pesos)
16,257
11,161
• Total group net income of close to P35 B in 2011
8,109
8,154
2008
2009
9,395
• Combined market cap of listed companies of over $25bn, accounting for 20% of Phisix • Core businesses in real estate, banking, telecom and water are top 1 or 2 in their respective industries • Over 50,000 employees worldwide
2007
2010
2011
PARENT DEBT PROFILE (as of September 30, 2012)
Ayala has the financial strength to enable growth We have a strong balance sheet that can support our sizeable investments As of 09.30.12
As of 12.31.11
Gross Debt*
1.15
0.99
Cash
0.70
0.41
Net Debt
0.47
0.58
0.16:1
0.24:1
in billion US$
Net Debt to Equity Ratio
*Excludes preferreds
We leverage different funding sources to generate cash Low net D/E ratio (0.16) Healthy cash balance to fund projects in the next 12-18 months Capacity for additional leverage in the next 5 years as dividend flows and earnings increase
Proceeds from potential*excludes asset sales P6B preferreds
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AYALA FORGES STRATEGIC PARTNERSHIPS TO ENABLE GROWTH We continue to strengthen and expand our strategic partnerships with a broad range of organizations to ensure the right sets of skills and capabilities for every business KEY INTERNATIONAL STRATEGIC PARTNERS
KEY DOMESTIC STRATEGIC PARTNERS
ALI
BPI GLOBE MWC
CII
HFIC
IMI LiveIt AC Energy AC Infra
CII
Strong track record of long-term partners, both local and international
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