first quarter 2012 financial & operating results …...jan-08 feb-08 mar-08 apr may-08 jun-08...

First Quarter 2012Financial & Operating Results

May 4, 2012

2

AGENDA

• Review of Business Units

• Pilmico Foods Corporation

• Aboitiz Power Corporation

• Union Bank of the Philippines

• City Savings Bank

• AEV Financials

• Q&A

3

AGENDA






• AEV Financials

• Q&A

FINANCIAL HIGHLIGHTS

9M 2006REVENUE (in million pesos)

Flour Feeds Swine

4

3,7153,5654%


EBITDA (in million pesos)

Flour Feeds Swine

5

379448

15%


NET INCOME (in million pesos)

Flour Feeds Swine

6

219282

22%

7

OUTLOOK

Flour Port dredging and rehabilitation of the unloading facility

Pneumatic unloader

Pier expansion

Feeds Construction of additional steel silos (Iligan) and finished goods warehouse (Tarlac)

Planning for 3rd Feedmill Plant

Farms Increase sow level: from 6,500 to 8,350 heads by 2014

To be completed in 2012: Nursery Farm & 2 Growing-Finishing Farms

To be completed in 2013: Breeder Farm & 2 Growing-Finishing Farms






• AEV Financials

• Q&A

8

AGENDA

5,106EPS = P0.69ROE = 41%

5,600EPS = P0.76ROE = 39%

10%

NET INCOME (in million pesos)

3%

61%

9

Distribution Generation AP Parent

10

CORE NET INCOME (in million pesos)

4,651EPS = P0.63ROE = 37% 9%

4%

61%


Non-recurring gain of P455 million

Parent • FX loss of P47 mn

Generation• FX gain of P154 mn• TMI revenue adjustment of P348 mn

Non-recurring gain of P517 million

Parent • FX loss of P5 mn

Generation• FX gain of P508 mn• Gain from share redemption of P14 mn

5,083EPS = P0.69ROE = 36%

759 1,182

7,310 7,312

1Q2011 1Q2012

11

PROFORMA EBITDA (in million pesos)

8,0198,449

5%


OPERATING HIGHLIGHTS: GENERATION

12

ENERGY SALES BREAKDOWN (GWh)

1,471 1,807

329 389 368 256

1Q2011 1Q2012

Energy contracts Capacity contracts Spot market

CAPACITY SALES BREAKDOWN (MW)

2,1682,452

P/kWh 1Q2011 1Q2012

Bilateral 5.34 5.37

Spot Market 3.30 4.05

680 826

292

370 170

117 160

170

1Q2011 1Q2012Energy contracts Capacity contractsSpot market Ancillary

1,302

1,483

13% 14%

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jan-

08Fe

b-08

Mar

-08

Apr-0

8M

ay-0

8Ju

n-08

Jul-0

8Au

g-08

Sep-

08O

ct-0

8No

v-08

Dec-

08Ja

n-09

Feb-

09M

ar-0

9Ap

r-09

May

-09

Jun-

09Ju

l-09

Aug-

09Se

p-09

Oct

-09

Nov-

09De

c-09

Jan-

10Fe

b-10

Mar

-10

Apr-1

0M

ay- 1

0Ju

n-10

Jul -1

0Au

g-10

Sep-

10O

ct-1

0No

v-10

Dec-

10Ja

n-11

Feb-

11M

ar-1

1Ap

r-11

May

-11

Jun-

11Ju

l-11

Aug-

11Se

p-11

Oct

-11

Nov-

11De

c-11

Jan-

12Fe

b-12

Mar

-12

Peak Off Peak All Hours

WESM AVERAGE PRICES (P/MWh)

OPERATING HIGHLIGHTS: 1Q2012 WESM HIGHLIGHTS

13

Note: 1. Calculated based on raw data provided by WESM as of April 2012. July 26 – October 25,

2008 prices are reflective of NPC TOU rates.

Source: WESM, SNAP

• Gas curtailments• Low Hydro• High Outages• Fuel limitations

• Forced outages of Masinloc, StaRita, Malaya & Ilijan

• High Outage: 1 unit of Sual and Calaca on outage

• Hydros still on minimal output

Typhoon Pepeng

Typhoon Ondoy

• Shutdown of Malampaya pipeline

• Maintenance shutdown of Sual and Pagbilao

YTD PricesPeak Off Peak All Hours

2010 7,681 3,827 5,898 2011 4,796 2,035 3,508 Mar 11 3,334 2,027 2,735 Mar 12 5,128 2,374 3,660

AVERAGE CAPACITY ON OUTAGE (in MW)

Source: WESM, SNAP14


1,251

847

645

727

614563

809

1,130

1,510 1,549

1,126

1,363

1,461

895

791

January February March April May June July August September October November December

2011 2012


15Source: www.accuweather.com

AVERAGE TEMPERATURE (in oC)

26.6

27.1

27.7

29.2

29.8

28.6

27.8

27.3

27.5

27.2

26.6 26.6

25.8

26.6 26.6

27.7

28.3

27.6 27.1 27.1

27.5 27.6

26.9 26.7 27.0 27.5

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

20102011

2012

WEEKLY SYSTEM PEAK DEMAND (in MW)

Source: WESM 16


3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

w1 w3 w5 w7 w9 w11 w13 w15 w17 w19 w21 w23 w25 w27 w29 w31 w33 w35 w37 w39 w41 w43 w45 w47 w49 w51

7,425 MW7,529 MW

20102011

2012

136 160

1Q2011 1Q2012

18%

ATTRIBUTABLE ENERGY SALES

(GWh)

1Q20111Q2012

OPERATING HIGHLIGHTS: HYDRO

CONTRACTED ENERGY (GWh), at 100%

SPOT MARKET (GWh), at 100%

CAPACITY SOLD FACTOR

17

42 18 15

84

46

16

87

45

Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

42

9

38

26

SNAP Magat SNAP Benguet

46%

22%10%

78%

102%

49%

17%

0%

101%

32%

Hedcor Sibulan HEDCOR LHC SNAP Magat SNAP Benguet

2.84 3.27

3.19

9.20

SNAP Magat SNAP Benguet

AVERAGE SELLING PRICE (in P/kWh)

1Q20111Q2012

CONTRACTED ENERGY SPOT MARKET

18


5.04 4.87

2.91

4.61

5.17 4.60 4.93

6.41

H Sibulan HEDCOR LHC SNAP Magat SNAP Benguet


19

SNAP MAGAT & SNAP BENGUET ANCILLARY SERVICES(at 100%)

Ancillary Revenues(in million pesos)

Accepted & Billed Capacity(in GW/h)

1,520

2,585

656

258

1Q2011 1Q2012

478 670

211

70

1Q2011 1Q2012

SNAP MagatSNAP Benguet

2,176

2,843 689 74131% 7%

1Q2011 1Q2012

P/kW/h 3.16 3.84

MAGAT’S WATER LEVEL VS. RULE CURVE (in MASL)

Source: SNAP20


140.00

150.00

160.00

170.00

180.00

190.00

200.00

2010 Water Level

2011 Water Level

2012 Water Level

Magat Rule Curve (meter)

Critical Level

1Q 2Q 4Q3Q

4.85 4.92

2.70 3.05

4.28 4.83

1Q2011 1Q2012

BCQ WESM WTD Ave

629 833

225 38

1Q2011 1Q2012

OPERATING HIGHLIGHTS: GEOTHERMAL

21

Energy Sales(in GWh)

Average Selling Prices (P/kWh)

Steam Vented (GWh)

AP RENEWABLES (Tiwi-Makban)

5

4

1Q2011 1Q2012

2%855 871

BCQ

WESM

Steam Cost @ P1.07/kWh

Capacity Sold Factor

86% 86%

Steam Cost @ P1.34/kWh

359

848

269

1,041

393

1,023

364

1,253

STEAG TLI CEDC Total

ENERGY SALES (GWh)


1Q20111Q2012

20%

Attributable Energy Sales

22

OPERATING HIGHLIGHTS: COAL

95%

56% 51%

95%

67%

86%

STEAG TLI CEDC

5.59

4.53

5.44

BCQ WESM WTD Ave

THERMA LUZON (Pagbilao)1Q2011 Average Selling Price

P/kWh

23

OPERATING HIGHLIGHTS: COAL

Energy Sales(in GWh)

732 844

116

179

1Q2011 1Q2012

5.43

3.78

5.14

BCQ WESM WTD Ave

1Q2012 Average Selling PriceP/kWh

Coal Cost + Energy Fee = P2.46/kWhCoal Cost = P2.28/kWh

Coal Cost + Energy Fee = P2.48/kWhCoal Cost = P2.33/kWh

1,023

84821%

BCQ

WESM

36 23

63 100

73

137

12 26

74

126 106

168

EAUC CPPC SPPC WMPC Therma Marine

22%ENERGY SALES (GWh)

AttributableEnergy Sales


1Q20111Q2012

24

OPERATING HIGHLIGHTS: OIL

100% 94% 100% 100%

51%67%

96% 100% 100%83%

EAUC CPPC SPPC WMPC Therma Marine

LAKE LANAO WATER LEVEL (in MASL)

25

OPERATING HIGHLIGHTS: OIL

698.00

698.50

699.00

699.50

700.00

700.50

701.00

701.50

702.00

1 10 19 28 37 46 55 64 73 82 91 100 109 118 127 136 145 154 163 172 181 190 199 208 217 226 235 244 253 262 271 280 289 298 307 316 325 334 343 352 361

2010

2011

2012

critical level

shutdown

1,391

2,355

3,747

2,019 2,381

4,397

Hydro Geothermal Total Benef icial EBITDA

1Q2011

1Q2012

7,310 7,312

1Q2011 1Q2012 730

2,834

3,564

331

2,602 2,915

Oil Coal Total Benef icial EBITDA

1Q20111Q2012

Amounts in Million Pesos

RENEWABLE PLANTS17%

OPERATING HIGHLIGHTS: GENERATION

PF BENEFIClAL EBITDA

26

18%THERMAL PLANTS

1,896 1,971 2,127 2,419 2,461 2,507 2,790 3,142 3,322 3,606 3,727

889 950

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q2011 1Q2012

234

655

889

249

701 950

Residential Commercial & Industrial

Total Power Sales

1Q2011 1Q2012

BENEFICIAL POWER SALES (GWh)

7%

BENEFICIAL GWH SALES GROWTH(BY CUSTOMER TYPE)

7%

PEAK DEMAND (MW)

5%

6%

7%

OPERATING HIGHLIGHTS: DISTRIBUTION

27

266 379

23 88 83 21 27

887

285 402

21 88 87 20 32

934

DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total

1Q2011 1Q2012

1% 1%

4%

7% 7%

9.8%

8.7%

1% 2%

4% 4%

8%9.5%

11.2%

SYSTEMS LOSSGROSS MARGIN / KWH SALE


* Adjusted for timing of transmission charge recovery ** 12 month moving average

28

SFELAPCOSEZ Davao Light

Visayan Electric

Cotabato Light

MEZ BEZ

1Q20111Q2012

Gov’t Cap – 8.50%

0.96

1.05 1.07

1.03 1.14 1.20

1.28 1.27

1.21 1.16

1.25

1.44

1.53

* *

**

56%

PF BENEFICIAL EBITDA


Amounts in Million Pesos

1Q20111Q2012

29

541

66 23 25 60 23 21

759 682

295 33 39 91 20 22

1,182

Davao Light VECO Cotabato Light San Fernando Electric

Subic Enerzone Mactan Enerzone

Balamban Enerzone

Total Benef icial EBITDA

FINANCIAL CONDITION

30

BALANCE SHEET(In million Pesos)

Cash and Equivalents

YE2011

Total Assets

Total Interest Bearing Debt

Total Liabilities

Net Debt

Total Equity

Current Ratio

Net Debt to Equity

7,900

65,499

13,457

13,692

5,557

51,807

8.8x

0.1x

Investments and Advances 56,990

QE Mar 2012

11,201

68,836

13,463

13,626

2,262

55,210

13.3x

0.04x

57,045

PARENT

YE2011

23,392

153,528

73,198

83,336

49,806

70,192

3.5x

0.7x

29,122

QE Mar 2012

28,574

159,442

73,168

83,620

44,594

75,822

4.1x

0.6x

30,160

CONSOLIDATED

FINANCIAL CONDITION

31

BALANCE SHEET(In million Pesos) YE2011

Total Interest Bearing Debt

Net Debt

Equity*

Net Debt to Equity

93,043

61,743

68,928

0.90

QE Mar 2012

92,423

56,520

74,080

0.76

BENEFICIAL

Cash 31,300 35,904

*Equity Attributable to Parent

Net Debt to EBITDA 1.74

32

OUTLOOK: Generation Business

LUZON GRID Binga Hydro 15 MW (2013)

Subic Coal 600 MW (2015)

Sabangan Hydro 13 MW

Magat Hydro 90-115 MW

Pagbilao Coal 380-400 MW

MINDANAO GRID Mindanao Hydro 54 MW (2014-15)

Davao Coal 300 MW (2015)

Unified Leyte Geothermal plants (EDC) 550 MW, Visayas Grid

IPPA: Caliraya-Botokan-Kalayaan Hydro (J Power) 728 MW, Luzon Grid

IPPA: Casecnan Hydro, 150 MW, Luzon Grid

Asset Sale: Agus Hydro 727 MW & Pulangi Hydro 255 MW, Mindanao Grid

BROWN/GREENFIELD PRIVATIZATION

Annex A: EARNINGS BREAKDOWN

33

(in million pesos) % %

INVESTEE OWNED OWNED ACTUAL ACTUALDEC 31/2011 Mar 31/2012 2012 2011

Parent & Others (216) (266)Power Generation Group: HEDCOR INC 100% 100% (94) (54) HEDCOR SIBULAN 100% 100% 35 50 LUZON HYDRO 50% 100% 82 (15) SNAP MAGAT 50% 50% 1,269 734 SNAP BENGUET 50% 50% 176 222 SPPC 20% 20% 14 12 WMPC 20% 20% 33 39 CPPC 60% 60% 78 60 EAUC 50% 50% 33 56 THERMA MOBILE 100% 100% (14) (0) THERMA MARINE 100% 100% 78 423 STEAG 34% 34% 92 213 ABOVANT HOLDINGS (CEDC) 60% 60% 124 41 RP ENERGY 50% 25% (6) (3) THERMA LUZON 100% 100% 1,067 1,045 AP RENEWABLES 100% 100% 2,151 2,093 OTHERS (37) 1

Sub-Total Power Generation 5,083 4,918Power Distribution Group: COTABATO LIGHT & POWER 100% 100% 15 9 DAVAO LIGHT & POWER 100% 100% 429 346 VISAYAN ELECTRIC CO. 55% 55% 177 19 SFELAPCO 44% 44% 21 11 SUBIC ENERZONE 100% 100% 56 31 MACTAN ENERZONE 100% 100% 16 20 BALAMBAN ENERZONE 100% 100% 18 18

Sub-Total Power Distribution 733 454TOTAL NET INCOME 5,600 5,106NET INCOME TO COMMON 5,600 5,106% increase (decrease) 10%CORE NET INCOME 5,083 4,651% increase (decrease) 9%CORE NET INCOME bef Finance Lease Acctng 6,524 5,981% increase (decrease) 9%

YEAR - TO - DATE

34

Annex B: CORE NET INCOME, Ex Pagbilao Effect (in million pesos)

5,981EPS = P0.81ROE = 48%

6,524EPS = P0.89ROE = 46%

9%

5%

61%


Pagbilao Finance Lease Effect

+ P1,441 mn of accreted interest expense+ P274 mn of depreciation- P273 mn of PSALM monthly payments

Or total of P1,441 mn

Pagbilao Finance Lease Effect

+ P1,331 mn of accreted interest expense+ P274 mn of depreciation- P276 mn of PSALM monthly payments

Or total of P1,330 mn

26 32

225 38

116

181

1Q2011 1Q2012

110 127

629 833

732 844

3

1Q2011 1Q2012

193 228

136 161

1Q2011 1Q2011

CONTRACTED (ENERGY) CONTRACTED (CAPACITY)

SPOT MARKET

23%

1,807

18%

30%

Geothermal

Hydro

Coal

Oil

329389

368

256

1,471

Annex C: OPERATING HIGHLIGHTS – GENERATION

35*Figures are in GWh

Annex D: DEBT PROFILE – AP PARENT

Maturity Profile - PhPM(As of March 2012)

Breakdown by Tenor(As of March 2012)

Breakdown by Currency(As of March 2012)

36

Breakdown by Interest Rate(As of March 2012)

711 6

7,300

526

5,000

2012 2013 2014 2015 2016

Long Term95%

Short Term5%

Peso100%

Fixed100%

Annex E: DEBT PROFILE – AP BENEFICIAL

Maturity Profile - PhPM(As of March 2012)

Breakdown by Tenor(As of March 2012)

Breakdown by Currency(As of March 2012)

37

Breakdown by Interest Rate(As of March 2012)

6,009

8,505

14,966

8,337

12,324

7,877

5,703 5,276

8,388

4,068 3,642 3,084 2,788 1,423

194

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Long Term96%

Short Term4%

Peso65%

Dollar35%

JPY0%

Fixed97%

Floater3%

PROJECT UPDATE

38

AMBUKLAO-BINGA REHABILITATION

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 done by 3Q2011

- Rated capacity currently at 105 MW

Target completion dates for Binga - Unit 1: done in December 2011

- Unit 2: 3Q2012

- Unit 3: 1Q2013

- Unit 4: 4Q2013

- To increase capacity to 120 MW

Capex spent as of end-1Q2012 at roughly $262million

Annex F: PROJECT UPDATE

38

TIWI-MAKBAN REHABILITATION• At Makban

• Estimated completion date within 1Q2013

• At Tiwi

• Estimated completion date within 3Q2012

• As of end-1Q2012, total actual capex spent at P4.2 billion (roughly $97.5 million)

• Enhancements in the plants’ availability rate are expected following the completion of the refurbishment, rehabilitation and resource improvments

PROJECT UPDATEAnnex F: PROJECT UPDATE (cont’d)

39

Makban Plant A

Tiwi Rehab Activity

PROJECT UPDATE

40

242 MW NAVOTAS POWER BARGES

To undergo rehabilitation, which involves:– Overhaul of engines

– Repair of barge super-structure and deck

– Possible dry docking

– Construction of new transmission line

Total rehab cost estimated at ~$30 million– Capex spent as of end-1Q2012 at P596.5

million (or ~$14 million)

Estimated rehab timeline– 4Q2011: 123 MW

– 3Q2012: 67 MW

– 4Q2012: 52 MW, including switchyard

Off-take– Merchant

– Possible contracts for peaking capacity

40

Annex F: PROJECT UPDATE (cont’d)

Pre-Acquisition

Post-Acquisition






• AEV Financials

• Q&A

41

AGENDA

Net income boosted by exceptional trading gains

42

Non interest income driven by sustained vigilance in trading opportunities

685

3,204

43

Net interest income supported by improvement in net interest margin and increasing share of earning assets

1%

5 bps 3%

44

Realignment of deposits to low cost funds

13%7%

45

Operating expenses rose in support of business expansion

32%

46

Credit portfolio expanded on sustained growth in consumer finance and commercial businesses

70

87

24%

+44%+50%

-8%

+33%

+50%

+50%

47

Key financial ratios reflectedexceptional earnings performance

48

Capital ratios remained healthy and supportive of future expansion and growth

49

UBP stock performed strongly, outpacing the PSE and Financial Sector indices

Source: Bloomberg, 3/31/11= 100

50

51

AGENDA






• AEV Financials

• Q&A

Slight decline in bottomline due to increased operating expenses resulting from expansion program and other initiatives

4%

19%

27%

Net Income(in Million Pesos)

Net Interest Income(in Million Pesos)

Operating Expenses(in Million Pesos)

52

53

Additional branches and increased average loan take up fueled loan growth

63%

Loan Portfolio(in Million Pesos)

19%

46%

Branch Network

Average Loan Per Borrower(in Thousand Pesos)

54

21%

Total Resources(in Million Pesos)

20%

Total Deposits(in Million Pesos)

2%

Capital Funds(in Million Pesos)

55

Revenue to OverheadCapital Adequacy Ratio NPL Coverage Ratio

KEY RATIOS

56

AGENDA






• AEV Financials

• Q&A

CONSOLIDATED PROFIT & LOSS (In Million Pesos)

57

Revenues

Equity Earnings

EBITDA

Net Income

1Q2011 1Q2012 % Change

17,111 19,579 14%

8,623 9,825

96%1,655 3,247

14%

4,605 5,855 27%

Core Net Income 4,258 5,458 28%

Core Net Income(Ex Pagbilao Effect)

5,273 6,566 25%

NET INCOME (In Million Pesos)

Power Banking Food Parent & Others

58

4,605EPS = P0.83ROE = 32%

5,855EPS = P1.06ROE = 33%

27%

84%

9%6%

73%

23%4%

CORE NET INCOME (In Million Pesos)

59

5,458EPS = P0.99ROE = 31%

28%

Non-recurring income of P347 mn

Power:• P82 mn FX gain• P266 mn TMI revenue

adjustment

Non-recurring income of P396 mn

ParentP0.6 mn FX loss

Power• P386 mn FX gain • P11 mn gain on share

redemption

4,258EPS = P0.77ROE = 29%

83%

10%7%

72%

24%4%


1Q2011 1Q2012

EBITDA (In Million Pesos)

60

8,623

7,376

9,825

8,416

EBITDA (Consolidated) EBITDA (Proforma)

14% 14%

PARENT NET DEBT (In Million Pesos)

Parent net debt increased by 74% YoYCash & Equivalents

Long-term Debt

61

34%

(In Million Pesos, except ratios)

Cash and Cash Equivalents

YE 2011 QE Mar 2012 % Change

Total AssetsTotal Liabilities

Total Equity

Book Value Per ShareCurrent RatioDebt to EquityNet Debt to Equity

29,543

200,992106,014

94,978

13.962.961.120.59

34,803

207,888107,180

100,708

14.803.491.060.50

18%

3%1%

6%

CONSOLIDATED BALANCE SHEET / KEY RATIOS

62

Equity Attributable to Parent 77,078 81,727 6%

63

Annex A: CORE NET INCOME, Ex Pagbilao (In Million Pesos)

6,566EPS = P1.19ROE = 37%

25%

AEV’s Share of Pagbilao Finance Lease Effect at P1,107 mn

+ P1,107 mn in accreted interest expense + P210 mn in depreciation expense- P210 mn PSALM payments

5,273EPS = P0.95ROE = 37%

AEV’s Share of Pagbilao Finance Lease Effect at P1,016 mn

+ P1,017 mn in accreted interest expense + P209 mn in depreciation expense- P210 mn PSALM payments

87%

8%5%

76%

20%3%


Annex B: EARNINGS CONTRIBUTION (In Million Pesos)

64

Aboitiz Power Corp.

City Savings Bank

Pilmico

1Q2011 1Q2012

3,901 4,302

102 99

282 219

% Change

10%

-4%

-22%

4,605 5,855 27%Net Income

Parent & Others -- 4 --

4,258 5,458 28%Core Net Income

Union Bank 319 1,230 285%

5,273 6,566 25%Core Net Income (Ex Pagbilao Effect)

65

AGENDA






• AEV Financials

• Q&A

First Quarter 2012Financial & Operating Results

May 4, 2012

first quarter 2012 financial & operating results …...jan-08 feb-08 mar-08 apr may-08 jun-08...

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