aev fy 2019 financial and operating performance final v4 · review of business units ... renewable...
TRANSCRIPT
Aboitiz EquityVentures
FullYear2019Financial&OperatingResults
11March2020
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
Presenters
Outlook
TAAL ASF COVID 19
TAAL ERUPTION AFRICAN SWINE FEVER CORONAVIRUS DISEASE 2019
COVID 19CORONAVIRUS DISEASE 2019
Deaths:
4,000+Affected Countries:
109
Covid-19 Cases:
113,000+
Source: WHO
“Palabradehonor”WORDOFHONOR
We will lead the Aboitiz teaminto the next decade.
POWER 56% NON-POWER 44%
POWER 65% NON-POWER 35%
*Includes 100% of Subsidiaries and Affiliates 1- Budgeted figures 2-Actual figure
P73 bn
P53 bn
P49 bn
P35 bn 2
2
2
1
2017
2018
2019
2020
Capital Expenditure(with partners)
Wewillcontinuetoinvestincapacitiestoadvancebusinessandcommunities.
PARTNERS
Despite these difficulties,we are not contemplatinga reduction in our expenditures. Our Build, Build, Build will go full blast, so will other programs of the government.
Carlos G. DominguezFinance Secretary
Republic of the Philippines
“”
Renewable Capacity Bulk Water Treatment Capacity Regional Banking linked by Ethereum
Affordable Microstudio Rental Units Regional Airport Infrastructure Common Towers Infrastructure
Wewillachieveour10-yearEBITDAtargetbymanagingourESGrisksandfindingopportunities intheworld’sSustainableDevelopmentGoals.
Wewillbalanceourbusinessportfoliobytheendofthedecade
50%POWER
50%Non - POWER
~
~
10% from overseas~
50% renewable in energy mix~
ABCadvance business and communities.
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
FY2019BeneficialEBITDA
-12%decline,mainlyofwhich…• -7%duetohigherpurchasedpowercost• -3%duetoloweravailabilityfromcoalfacility• -2%duetolowerrevenuesfromspotsales
*-15%vs4Q2018
FY2019CoreIncome
FY2019NetIncome
BalanceSheetHighlights
*TotalInterestBearingDebt/TotalEquity
OperatingHighlights:CapacitySales
FiguresinMW
BilateralContractQuantity(BCQ)
OperatingHighlights:RevenueandEnergySold
PhpMN GWh
-2%23,525 22,942
BilateralContractQuantity(BCQ)
OperatingHighlights:GrossMargin
InPhp MN
InGWh
QuarterlyBreakdown
InPhpMN
InGWh
OperatingHighlights:AverageSellingPrice(P/kWh)
OperatingHighlights:FY2019Availability
NERC– NorthAmericanElectricReliability Corporation
OperatingHighlights:WESM
FY2019AverageLWAP:P4.96(P/kWh)FY2018AverageLWAP:P3.53(P/kWh)
OperatingHighlights:WaterLevelMagat’sWaterLevelvsRuleCurve(inMASL)
OperatingHighlights:Distribution
Stronggrowth indistribution salesBeneficialPowerSales(GWh)
PeakDemandin(MW)BeneficialPowerSalesByCustomerType(GWh)
OperatingHighlights:Distribution
GrossMargin/kWh FeederLoss
ProjectUpdate
Wewillreachourcapacitytargetof4,000MWby2020
Grid Project Capacity(Net)
%Ownership AttributableNet SellableCapacity
EstimatedCommercialOperationDate
Luzon Dinginin Unit1(Coal– GNPD) 668MW 70% 468MW Q42020
Dinginin Unit2(Coal– GNPD) 668 MW 70% 468 MW Q22021
Visayas NagaPowerPlant Complex 42MW 100% 42MW Q32020
Vietnam Dam Nai (Wind – MekongWind)
39MW 100% 39MW Q1 2020
1,417MW 1,017MW
AttributablenetsellablecapacityasofFY2019:3,455MW
ProjectUpdate
Dinginin - 2x668MWofCoalPower(GNPowerDinginin)
ProjectUpdate
MekongWind– 39MW
ProjectUpdate
NagaPowerPlantComplex– 42MW
CapitalExpenditure(withpartners)
DividendPayment
Payout Ratio: 1/2 of previous year’s consolidated net income2020 Dividend Yield: Computed based on March 06, 2020 closing price
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
2019NetIncomedoubledtoP14.0Bn
• UBPpostedarecordhighnetincomeofP14.0Bndrivenby:
• Solidloangrowthofconsumer&SME• Increaseinmarginsin2019• Strongnon-interestincomegrowth
• Profitabilityratioswayabovepreviousyearandsurpassedindustryaverage
*Attributable to Parent Bank’s StockholdersNote: Industry ratios based on latest BSP data
9.9%
16.3%
Dec 2018 Dec 2019
Return on Equity
11.2% Industry
Avg
1.1%
2.0%
Dec 2018 Dec 2019
Return on Assets
1.3%Industry
Avg
6.9
14.0
Dec 2018 Dec 2019
Net Income*(in Php Bn)
2x
NetInterestIncomegrewdouble-digitfromrobustgrowthofearningassets;marginsimproved70+bps
20.0
22.3
Dec 2018 Dec 2019
Net Interest Income (in Php Bn)
12%
30 31
177 217
278 307
497 566
81% 80%
-
0
0
0
0
1
1
1
1
1
-
100
200
300
400
500
600
700
800
Dec 2018 Dec 2019
Earning Assets (ADB, in Php Bn)
Liquid Earning Assets Securities Current Loans Others Share of EA to Net Assets
14%
+10%
+23%
+4%
6.4%
6.6% 6.6% 6.7% 6.7%
3.3% 3.2% 3.1% 3.0% 2.8%
3.1%3.4% 3.5%
3.7%3.9%
Jan-19 Mar-19 Jun-19 Sep-19 Dec-19
Group MarginsYield Cost NIM
+76bps increase from start of 2019
EarningAssetsdrivenbyhighyieldingConsumer&SMEloans
41 54
53 63
136
146
61
54 291
317
Dec 2018 Dec 2019
Credit Portfolio (ADB, in Php Bn)
Retail Commercial Corporate Mass Market Loans
+7%
+19%
+31%
-10%
6.1
8.3
Dec 2018 Dec 2019
Credit Cards (ADB, in Php Bn)
35.3
46.1
Dec 2018 Dec 2019
Consumer Loans (ADB, in Php Bn)
47.0
54.7
Dec 2018 Dec 2019
Commercial Loans (ADB, in Php Bn)
9%
16%
35% 31%
5.7
8.0
Dec 2018 Dec 2019
Businessline(ADB, in Php Bn)
40%
HigherCASAratioYoY;Managedhigh-costdepositsbyshiftingtocost-efficientliabilities
133 145
22 25
157 172 36%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
50
100
150
200
Dec 2018 Dec 2019
CASA Deposits (ADB, in Php Bn)
Peso FCDU Subsidiaries Share of CASA to Total
+9%
+11%9%
441 435
71 139
512
574
Dec 2018 Dec 2019
Total Liabilities (ADB, in Php Bn)
Total Deposits Other Borrowings
-1%
+95%12%
Non-InterestIncomemorethandoubledfromstronggrowthofkeyrevenuestreams
1.6 2.0
1.5
9.4
2.4
3.0
5.5
14.3
Dec 2018 Dec 2019
Non-Interest Income(in Php Bn)
Ser. Charges, Fees, & Comm Securities Trading Gains Miscellaneous Income
2.6x +26%
+6.1x
+24%
in Php Bn Dec 2018 Dec 2019 Growth
Total Misc. Income 2.4 3.0 26%
Foreign exchange gains 0.6 0.7 17%
Others 1.8 2.3 29%
in Php Bn Dec 2018 Dec 2019 Growth
Total Ser. Charges & Fees 1.6 2.0 24%
Parent 1.3 1.5 11%
Subsidiaries 0.3 0.5 86%
Opex higherthanexpectedduetoacquisitionsinCSB
15.7 17.9
1.0
2.4 16.7
20.3
Dec 2018 Dec 2019
Operating Expenses (in Php Bn)
Core Opex Non-Core Opex
In Php Bn Dec 2018 Dec 2019 GrowthTotal Core Opex 15.7 17.9 14%Recurring 11.7 13.4 14%
Volume-Related 4.0 4.5 13%
22%
+14%
+2.4x
Highercapitalratiosasearningsoutpacegrowthofriskassets
15.2%15.3%
12.7% 13.2%
8.5%
10.0%
Dec 2018 Dec 2019
Capital Adequacy Ratio CET1/Tier 1 Capital Ratio
CET1 Regulatory Minimum CAR Regulatory Minimum
6.0
10.1 7.9 6.9
14.0
2015 2016 2017 2018 2019
Net Income In Php Bn
Summary
41 54
53
63
94
117
Dec 2018 Dec 2019
Retail & SME Loans(Parent Bank ADB, in P Bn)
Retail Commercial
6.4%
6.6% 6.6% 6.7% 6.7%
3.3% 3.2% 3.1% 3.0% 2.8%
3.1%3.4% 3.5% 3.7% 3.9%
Jan-19 Mar-19 Jun-19 Sep-19 Dec-19
Group Margins
Yield Cost NIM
+76bps increase from start of 2019
1.6 2.0 1.5
9.4
2.4
3.0
5.5
14.3
Dec 2018 Dec 2019
Non-Interest Income(in P Bn)
Fees Trading Gains Misc Income
• Recordnetincome
• Robustconsumer&SMElending
• Substantialmarginimprovementwithintheyear
• Strongnon-interestincomegrowth
24%
+19%
+31%
2.6x +26%
+6.1x
+24%
Outlook
• FurthercutsonpolicyrateandRRRshallfurtherimprovemargins
• Robustexpansionofretail&SMEloans
• CSBtobedrivenbysalary&motorcycleloangrowth
• Acceleratecustomeracquisitionviadigitalchannels
4.50%4.25%
4.00%3.75%
?
Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20
Overnight RRP Facility
4.75%
RRP down 100bps from
Jan 2019
18%17%
16.5%16%
15%14%
?
Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20
RRR
RRR down 400bps from
Jan 2019
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
FY2019FinancialHighlights
vs. FY18
Revenue 74,724 +16%
EBITDA 5,363 +29%
EBITDA Margin 7% +100bps
NIAT 2,105 +12%
FY2019FinancialHighlights:Revenue
12% 11%
33% 29%
50%57%
5%
4%P64B
P75B
FY18 FY19
FARMS
GOLD COIN FEEDS
PILMICO FEEDS PH & VN
FLOUR
16% P2.7B
P3.5B
FY19
FY18
P42.4B
P32.2B
FY19
FY18
P21.3B
P20.9B
FY19
FY18
P8.4B
P7.7B
FY19
FY18
24%
2%
9%
FARMS
GOLD COIN FEEDS
PILMICO FEEDS
PH & VN
FLOUR
32%
50
1,068
FY19
FY18
2,507
1,273
FY19
FY18
1,472
1,175
FY19
FY18
1,252
625
FY19
FY18
95%
25%
100%
FARMS
GOLD COIN FEEDS
PILMICO FEEDS
PH & VN
FLOUR
97%
FY2019FinancialHighlights:EBITDA
15%23%
28%
29%31%
47%26%
1%
P4B
P5B
FY18 FY19
FARMS
GOLD COIN FEEDS
PILMICO FEEDS PH & VN
FLOUR
29%
FY2019FinancialHighlights:NetIncome
16%34%
27%
34%27%
46%
30%
-13%
P1.9B
P2.1B
FY18 FY19
FARMS
GOLD COIN FEEDS
PILMICO FEEDS PH & VN
FLOUR
12% -P281M
P564M
FY19
FY18
P965M
P513M
FY19
FY18
P709M
P506M
FY19
FY18
P711M
P299M
FY19
FY18
150%
40%
138%
FARMS
GOLD COIN FEEDS
PILMICO FEEDS
PH & VN
FLOUR
88%
HUBERT DE ROQUEFEUILPRESIDENT & CEO FOOD GROUP
TRISTAN ROBERTO ABOITIZPRESIDENT & CEO
PILMICO FOODS CORPORATION
ONE FOOD GROUPLeadership Team
ONE FOOD GROUP
BALANCEBalance portfolio, market
opportunities and risks
OPTIMIZEExecution excellence
through processes and systems
DEVELOPBuild capabilities,
innovate, and expand the business
KEY STRATEGIC PRIORITIES
2020 Project Pipeline
Jan 2020
FEEDS
Indonesia DepotDepot in Bangka Island, Indonesia
Completion rate: 100%
Apr 2020
Floating Fish Line+5TPH in Dongguan, China
Completion rate: 60%FEEDS
Fish Feed Line+5TPH in Ha Nam, Vietnam
Completion rate: 85%
FEEDS
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
HighlightsofOperations:Water
4% improvementinoperatingmargins
10% increaseinwaterproduction
99.8%facilityuptime
92%customersatisfactionrating
PhP 3BnCAPEXspentforFY19
ConstructionofintakefacilitiesinTamugan Riverisinfullswing
Layingofconveyancepipelinesinongoing
Pouring ofconcreteonfoundations of theHEPPandprocesstrainshavebeencompleted
ProjectUpdates
Bohol-PanglaoInternationalAirport
NAIA
ApprovedbytheNEDABoardlastNovember29,2019
WeareworkingwiththeGovernmentonfinalstepsbeforecommencingSwiss
Challenge
Laguindingan Airport
ApprovedbytheNEDAICC-CabinetCommittee lastDecember20,2019
ThenextstepistogetNEDABoardApproval
BicolAirport
UnsolicitedProposalsubmitted onSeptember18,2019
35yearconcessionwithoptimization
Towers
ContinuingactiveengagementwiththeMNOs,particularlyonsiteacquisition
andselection
2,000towersin5years
MOUwith3telcos (Globe,DITO,andPLDT-Smart)
Improvedoperationalperformanceinachallengingenvironment• Modestgrowthincementdemandascontractionin
infrastructurewasoffsetbygrowthinresidentialandnon-residentialsegments
• Marketpricesstablewhileproductioncostsundercontrol
• Debottleneckingprojectscompletedsafely,withinbudget,andnowdeliveringresults
• Newmillsnearingcompletion• ContributiontoAEVatPhP604Min2019,higherby
PhP470Mversus2018
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
FY 2019 vs FY 2018
Revenues 4,196M 5%
Gross Profit 1,485M 17%
Net Operating Profit 549M 43%
NIAT 943M 46%
Residential Sales 2,196M 6%
FY2019FinancialPerformance
FY2019Revenues
1,346 1,587
2,4752,368
181241
4,001 4,196
FY 2018 FY 2019
5%-4%
+33%
+18%
Residential
Industrial & Others
Commercial
FY2019GrossProfit&NetOperatingProfit
1,7901,485
FY 2018 FY 2019
959
549
FY 2018 FY 2019
Gross Profit Net Operating Profit
17%
43%
FY2019BusinessHighlights
In December we opened Lima Exchange, the latest commercial addition to our New Industry City in Lima. It houses a Robinsons supermarket, a public transport terminal, and more establishments that cater to the community’s basic needs.
FY2019BusinessHighlights
The Outlook 2019: Philippine Buyers’ Choice Property Awards (organized by Lamudi Philippines)
Winner Best House in VisMin (Amoa)
Nominee
Best Developer in Luzon
Best Developer in Vismin
Best Premium House (Seafront Residences
Our communities and elegantly designed homes caught the attention of award-giving bodies
FY2019BusinessHighlights
In 2019, AboitizLand partnered with Cebu Landmastersto deliver housing solutions to the Cebuano market. The JV’s first project is a three-tower condominium in Mandaue City, Cebu.
FY2019BusinessHighlights
We also teamed up with Point Blue, a pioneer in the integrated micro-studio market.
Point Blue currently has 4 buildings in operation covering a total of 657 units, and plans to build 20 more apartment buildings over the next two years.
ReviewofBusinessUnits
• Outlook• Power• FinancialServices• Food• Infrastructure• Land• AEVFinancials• Q&A
FY2019FinancialPerformance
CoreNet Income
₱5.6bn |₱21.5bn
+4% -7%
vsFY2018vs4Q2018
Revenues
₱48.7bn |₱201.2bn
-6% +8%
vs4Q2018 vsFY2018
Conso EBITDA
₱15.3bn |₱60.2bn
NetIncome
₱6.3bn |₱22.0bn
+1% -1%vs4Q2018 vsFY2018
+28% -1%
vsFY2018vs4Q2018
FY2019BeneficialEBITDA(inPhp mn)
+4%vsFY2018,ofwhich• +13%fromoutperformanceofnon-powerbusinessunits
• -9%fromPowerduetohigherpurchasedpowercost,loweravailabilityofcoalfacilityandlowerspotsales
FY2019ConsolidatedEBITDA(inPhp mn)
FY2019CoreNetIncome(inPhp mn)
FY2018 FY2019 ChangeConso EBITDA 60,653 60,157 -1%Less:Interest Expense 13,162 15,474 18%
Depcn.&Amort. 9,818 11,537 18%Tax&Others 4,799 4,572 -5%Non-controllingInterest 9,749 7,054 -28%
CoreNetIncome 23,124 21,521 -7%EPS 4.10 3.82
FY2019NetIncome(inPhp mn)
FY2018 FY2019 ChangeCoreNetIncome 23,124 21,521 -7%Non-recurring gains/(losses) (891) 516 158%
NetIncome 22,233 22,036 -1%EPS 3.95 3.91
FXrate:31Dec2019:50.6431Dec2018:52.58
BalanceSheetHighlights(inPhp mn,exceptratios)
YE2018 YE2019
CashandCashEquivalents 59,033 46,425TotalAssets 554,494 588,386
TotalLiabilities 336,016 371,191
TotalEquity 218,478 217,195EquityAttributabletoParent 174,691 176,481BookValuePerShare 31.01 31.33CurrentRatio 1.8x 1.3xDebttoEquity 1.5x 1.7xNetDebttoEquity 1.0x 1.2x
ConsolidatedBalanceSheet/KeyRatiosParentNetDebt
ND/E0.14x0.19x
DividendPayment
PayoutRatio:1/3ofpreviousyear’sconsolidatednetincome
2020DividendYield:ComputedbasedonMarch06,2020closingprice
ReviewofBusinessUnits
• Outlook• Power• Banking• Food• Infrastructure• Land• AEVFinancials• Q&A