third quarter / ytd september 2009 financial & operating results 4 november … · 2018. 12....

Third Quarter / YTD September 2009 Financial & Operating Results

4 November 2009

• Overview

• AEV Financials

• Review of Business Units

• Aboitiz Power Corporation

• Union Bank of the Philippines

• Aboitiz Transport System

• Pilmico Foods Corporation

• Q&A

2

AGENDA

• Overview

• AEV Financials






• Q&A

AGENDA

3

CONSOLIDATED PROFIT & LOSS (In Million Pesos)

Revenues

Equity Earnings

EBITDA

Net Income

Core Net Income

3Q2008 3Q2009

9,496 11,571

769 1,304

2,166 4,436

1,162 2,435

% Ch

22%

70%

105%

110%

1,281 2,321 81%

9M2008 9M2009

26,730 30,916

2,504 3,170

6,182 10,015

3,376 5,873

% Ch

16%

27%

62%

74%

3,537 5,330 51%

4

290

925

1,671

837

657

499

192

103

281

138

248

348

143

(89)

242

(51)(53)

643

1Q2009 2Q2009 3Q2009 3Q2008

NET INCOME (In Million Pesos)

Power Banking Transport Food Parent & Others

5

1,415

2,023

1,162

3Q2009 Performance

20% 110%2,435

2,398 2,886

651

1,398

331

373

734524

9M2008 9M2009

NET INCOME (In Million Pesos)

3904%

97%

115%

20%

3,376EPS = P0.60

5,873EPS = P1.0574%

6

9M2009 Performance

1123%


373

1,046

1,597

957

657

499

192

103

281

(93) (51)

138

248348

143

(89)

242

1Q2009 2Q2009 3Q2009 3Q2008

CORE NET INCOME (In Million Pesos)

7

865

2,143

1,281

3Q2009 Performance

8%

Total One-Off Gain at P114 mnBooked net FX loss at parent

Power group booked net FX gain.

AEV’s share at P73 mn

Transport group booked gain on sale

of vessel and logistics business. AEV’s

share at P41 mn

81%2,321


2,610 3,016

651

1,398

291

373

734

(17) (109)9M2008 9M2009

CORE NET INCOME (In Million Pesos)

97%

463%

115%

16%

3,537EPS = P0.63

5,330EPS = P0.9651%

8

9M2009 Performance Total One-Off Gain at P543 mnBooked net FX loss at parent

Reversal of P575 mn provision for

ATS plus P58 mn booked revenue

for option fee for ATS (net of tax)

Power group booked net FX gain.

AEV’s share at P11 mn

Power group booked acquisition-

related costs. AEV’s share at P141

mn

Transport group booked gain on

sale of vessel and logistics

business. AEV’s share at P41 mn


EARNINGS CONTRIBUTION (In Million Pesos)

Aboitiz Power Corp.

City Savings Bank

Union Bank

ATSC

Pilmico

3Q2008 3Q2009

837 1,671

6 26

186 473

(51) (53)

% Ch

100%

320%

154%

--

Net Income

Parent & Others

1,281 2,321 81%Core Net Income

1,162 2,435 110%

41 (31) --

143 348 144%

9M2008 9M2009

2,398 2,886

26 56

625 1,342

(32) 331

% Ch

20%

113%

115%

--

3,537 5,330 51%

3,376 5,873 74%

(14) 524 --

373 734 97%

9

6,1826,700

10,0159,527

EBITDA (Consolidated) EBITDA (Proforma)

9M2008 9M2009

EBITDA (In Million Pesos)

10

62% 42%

PARENT NET DEBT (In Million Pesos)

3,4283,594

FY2008 9M2009

Parent net debt as of end-September at P3.6 billion

1,065

507

FY2008 9M2009

4,4934,101

FY2008 9M2009

Cash & Equivalents

Long-term Debt

11

Mainly due to cash dividend paid in March 2009 – P1.5 bn or P0.27 per share

(In Million Pesos, except ratios)

Cash and Cash Equivalents

YE 2008 9M2009 % Change

Total Assets

Total Liabilities

Total Equity

Book Value Per ShareCurrent RatioDebt to EquityNet Debt to Equity

16,547

75,715

29,059

46,656

6.781.930.620.07

7,584

94,817

42,341

52,476

7.690.900.810.45

-54%

25%

46%

12%

CONSOLIDATED BALANCE SHEET / KEY RATIOS

12

• Overview

• AEV Financials






• Q&A

AGENDA

13

• Overview

• AEV Financials






• Q&A

AGENDA

14

PROFORMA REVENUES (in million pesos)

13,141

11,737

9,868 6,461

9M2008 9M2009

18,287

23,06226%

9M RESULTS

Distribution Generation

3Q RESULTS

53%

12% 4,620 3,917

1,531

3,2975,039

2,489

4,6353,885

1Q2009 2Q2009 3Q2009 3Q2008

5,434

7,953

6,439

9,67522% 50%

15

1,9852,967

1,1141,122

9M2008 9M2009

3,168EPS = P0.43ROE = 15%

3,795EPS = P0.52ROE = 16%20%

NET INCOME (in million pesos)

9M RESULTS


3Q RESULTS

49%

-1%477 355

110

937

1,920

664

385252

1Q2009 2Q2009 3Q2009 3Q2008

16

381

1,2171,103

2,19881% 99%

1,122 1,114

2,3363,134

9M2008 9M2009

Distribution Generation 17

CORE NET INCOME (in million pesos)

3,448EPS = P0.47ROE = 16.5%

3,967EPS = P0.54ROE = 16.9%

34%

-1%477 355

242

1,089

1,803

885

385252

1Q2009 2Q2009 3Q2009 3Q2008

490

1,3751,261

9M RESULTS 9M2009: Net FX gain at P14 million, P186 million in one-off’s

at APRI 9M2008: Net FX losses at P535 million plus reversal of P254

million due to LHC’s arbitration settlement

3Q RESULTS 1Q2009: Net FX losses at P109 million 2Q2009: Net FX gain at P27 million, P186 million in one-

off’s at APRI 3Q2009: Net FX gain at P97 million 3Q2008: Net FX losses at P267 million, reversal of P109

million due to LHC’s arbitration settlement

15%

53% 67%2,101

1,996 1,915

3,9125,688

9M2008 9M2009


18

PROFORMA EBITDA (in million pesos)

5,777

7,41728%

45%

-4%767 644

798

1,866

3,024

1,520

653495

1Q2009 2Q2009 3Q2009 3Q2008

1,254

2,454

2,170

51% 71%3,709

9M RESULTS 3Q RESULTS

OPERATING HIGHLIGHTS - GENERATION

605 615 615

1,181 1,181

693

336

693

359

171

9M2008 9M2009 9M2009*

1,300

2,4892,660

91%

105%

ENERGY SALES BREAKDOWN (Gwhr)

Contracted (Capacity) Contracted (Energy) Spot Market Geothermal (Steam Vented)

Potential energy sales

19

128

695782

250

102

851

306

870

263132

HEDCOR Luzon Hydro SNAP Magat SNAP Benguet

22%

51% 54%

33%

52%

37%47%

53% 57%

HEDCOR Luzon Hydro SNAP Magat SNAP Benguet

GENERATED POWER (Gwhr)

Attributable Net Generation

NET CAPACITY FACTOR

OPERATING HIGHLIGHTS – HYDRO

9M20089M2009

20Note: SNAP Benguet started operations in July 2008.

160

165

170

175

180

185

190

195

200

1/1/20

091/8

/2009

1/15/2

009

1/22/2

009

1/29/2

009

2/5/20

092/1

2/200

92/1

9/200

92/2

6/200

93/5

/2009

3/12/2

009

3/19/2

009

3/26/2

009

4/2/20

094/9

/2009

4/16/2

009

4/23/2

009

4/30/2

009

5/7/20

095/1

4/200

95/2

1/200

95/2

8/200

96/4

/2009

6/11/2

009

6/18/2

009

6/25/2

009

7/2/20

097/9

/2009

7/16/2

009

7/23/2

009

7/30/2

009

8/6/20

098/1

3/200

98/2

0/200

98/2

7/200

99/3

/2009

9/10/2

009

9/17/2

009

9/24/2

009

2008 Water Level

2009 Water Level

Magat Rule Curve (meter)


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

Source: SNAP Magat1Q 2Q 3Q

21

4.103.49

3.152.57

4.32

3.68 3.654.03

HEDCOR Luzon Hydro Corp. SNAP Magat SNAP Benguet

9M2008 9M2009


AVERAGE SELLING PRICE / KWHR – HYDRO PLANTS

22

1.91

4.97

5.08

4.46

2.92

3.04

1.91

3.45

3.07

0.78WESM AverageOff-Peak

SNAP Ave OffPeak

WESM Ave Peak

SNAP Ave Peak

SNAP Ave Spot


MAGAT & BINGA TRADING PRICES vs. WESM

9M2008 9M2009

Ave NPC Eff Grid Rate, 9M2009 = P3.92

23

WESM vs. MAGAT & BINGA PRICING – P/MWh

Note: Calculated based on raw data downloaded from the WESM website. July 26 – October 25 prices are reflective of NPC TOU rates.


-1,275

1,856

7,761

3,682

-204

3,589

1,307

2,5052,955

5,889

1,514

4,740

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb -07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep -07

Oct-07

Nov-07

Dec-07

Jan-08

Feb -08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep -08

Oct-08

Nov-08

Dec-08

Jan-09

Feb -09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep -09

Peak Hours Off-Peak Hours Magat Ave Spot Benguet Ave Spot

24

July 2006

Dec 2007

Dec 2008

Sept 2009

Dec 2006


Limay A & B Average Dispatched Capacity and Average Operating Hours

Source: WESM 25

-

20

40

60

80

100

120

January February March April May June July August September-

2

4

6

8

10

12

In MW Hours/Day

Dispatched Capacity Ave Operating Hours

BCQ79%

WESM21%

OPERATING HIGHLIGHTS – GEOTHERMAL

26

Energy Sold Total = 1,022 GwH

812

210

For the period ending September 30, 2009

3.72

2.16

4.13

BCQ WESM WTD Ave

P/kwh

171.3

52.840.440.237.9

Jun-09 Jul-09 Aug-09 Sep-09 Total

Steam Vented (GwH)

Steam Cost + Capex = P1.32/kwhSteam Cost = P1.12/kwh

163

1,021

122228

77

605615

995

152161234

148

EAUC CPPC SPPC WMPC STEAG

2%

58%53%

34%

12%

74%

45%

23%

53% 54%

72%

EAUC CPPC SPPC WMPC STEAG

GENERATED POWER (Gwhr)

Attributable Net Generation

NET CAPACITY FACTOR

OPERATING HIGHLIGHTS – THERMAL

9M20089M2009

27

4,246

2,289

308 402

1,579448

1,448 2,015

335

HEDCOR, Inc. Luzon HydroCorp.

SNAP - Magat &Benguet

AP Renewables Total BeneficialEBITDA

9M2008 9M2009

3,912

5,688

9M2008 9M2009

Amounts in Million Pesos

RENEWABLE PLANTS 85%

OPERATING HIGHLIGHTS – GENERATION

PF Beneficial EBITDA

28

227 85

1,6221,074

1607722587

1,442

118 182833

East AsiaUtilities Corp.

Cebu PrivatePow er Corp.

SouthernPhilippines

Pow er Corp.

WesternMindanao

Pow er Corp.

STEAG StatePow er

Total BeneficialEBITDA

9M2008 9M2009

11%THERMAL PLANTS

45%

1,767 1,896 1,9712,127 2,419 2,461

2,507 2,329 2,4602,790

3,142

2000 2001 2002 2003 2004 2005 2006 2007 2008 9M2008 9M2009

650

1,678

2,329

697

2,460

1,763

Residential Commercial & Industrial Total Power Sales

9M2008 9M2009

BENEFICIAL POWER SALES (Gwhr)

6%

BENEFICIAL GWHR SALES GROWTH(BY CUSTOMER TYPE)

6%

15 19

768

237523

326247

60

848

2397

271 336

8023

DLPC VECO CLPC SFELAPCO SEZ MEZ BEZ Total

9M2008 9M2009

PEAK DEMAND (MW)

10%

7%

5%

OPERATING HIGHLIGHTS – DISTRIBUTION

29

San Fernando

1.17

1.12

1.21

1.271.28

1.07

1.03

1.20

0.96

1.051.14

1.17

0.9

1.0

1.1

1.2

1.3

2000

2001

2002

2003

2004

2005

2006

2007

2008

1Q20

091H

2009

9M20

09

*

9.2%10.4%

3.2%2.2%

1.3%

6.5%

8.4%

9M2009 SYSTEMS LOSS

Subic EnerZone

Davao Light and Power

VisayanElectric

Cotabato Light and

Power

GROSS MARGIN / KWHR SALE

Gov’t Cap – 9.50%


Mactan EnerZone

Balamban EnerZone

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

*

**

30

**

**

1,169

43995 71 109 84 29

1,996

2621460

1,167

287 103 57

1,915

DavaoLight

VECO CotabatoLight

SanFernandoElectric

SubicEnerzone

MactanEnerzone

BalambanEnerzone

TotalBeneficial

EBITDA

4%

PF Beneficial EBITDA



9M20089M2009

31

BALANCE SHEET(In million Pesos)

Cash and Equivalents

YE2008

Total AssetsTotal Interest Bearing DebtTotal LiabilitiesNet DebtTotal Equity

Current RatioNet Debt to Equity

12,708

34,3077,6979,084

(5,360)25,223

3.48(0.21)

Investments and Advances 21,042

FINANCIAL CONDITION

9M2009

2,493

45,55619,24220,83216,74824,725

3.250.68

42,519

PARENT

YE2008

14,915

47,27211,41716,580(3,895)30,692

2.19(0.13)

21,251

9M2009

5,473

63,49123,74230,42218,26933,069

0.760.55

23,886

CONSOLIDATED

32

FINANCIAL CONDITION – AP Parent and APRI

33

Paid off APRI’s P11.6 billion loan with PSALM on September 30, 2009 Interest cost at 12.75%

Funding from AP Parent Proceeds from corporate fixed rate notes, retail bonds and ST borrowing Wtd cost at 7.67%

Interest cost savings, based on current rate differential, at ~P590 million p.a.

DEBT PROFILE – AP PARENT

Maturity Profile - PhPM(As of September 2009)

Breakdown by Tenor(As of September 2009)

Breakdown by Currency(As of September 2009)

7,453

- -690

3,330

7,309

560

2009 2010 2011 2012 2013 2014 2015

Long Term61%

Short Term39%

Peso80%

Dollar20%

34

Portion to be refinanced as APRI avails of project financing in 1Q2010

Breakdown by Interest Rate(As of September 2009)

Fixed61%

Floater39%

PROJECT UPDATE

35

246MW Cebu Coal

Construction works on scheduleTarget completion dates

- Unit 1, 82MW: March 2010- Unit 2, 82MW: June 2010- Unit 3, 82MW: November 2010

Capex spent as of September 2009 at ~$200 million (vs. project cost of $450 million)

42.5MW Sibulan Hydro

Completion date moved to 2010 due to delay in civil works

- 26MW plant by January 2010- 16.5MW plant by April 2010

Capex spent as of September 2009 at P3.95 billion, vs. project cost of P5 billion

175MW Ambuklo-Binga

Project cost at $270 million- ~70% for 75MW Ambuklao- ~30% for 100MW Binga

Target completion dates for Ambuklao

- Unit 1: August 2010- Unit 2: November 2010- Unit 3: November 2010- To increase capacity to 105MW

Target completion dates for Binga

- Unit 1: 2011- Unit 2: 2012- Unit 3: 2013- Unit 4: 2014- To increase capacity to 120MW

Capex spent as of September 2009 at $107 million

GOVERNMENT PRIVATIZATION – Pagbilao

100%-owned Therma Luzon, Inc. (TLI) won the

bid for the appointment as IPP Administrator of

the 700MW Contracted Capacity of the

Pagbilao Coal Fired Thermal Power Plant on

August 28, 2009

Bid price at $691 million = PV of monthly

payments to PSALM from October 2009 to

August 2025

TLI to be responsible for offtake and coal

supply obligations

Pagbilao coal plant to be turned over to TLI

upon BOT expiry (2025)

Potential expansion: 1x350MW plant

Took over dispatch control on October 1, 2009

36

GOVERNMENT PRIVATIZATION – Pagbilao (cont’d)

CONTRACT DURATION

36.69%515,713140,792,47825-Nov-1116-Nov-06Meralco

Load factorkWkWhEndStartCustomer type

COMPUTED AVE. MO. LEVEL

Transition Supply Contract At NPC TOU rates

Average for dry season at P4.52/kwh Average for wet season at P4.18/kwh

Coal Supply and Cost Estimated coal consumption at full load: 10,000 MT Coal stock inventory as of October 1 at ~207K MT

Wtd landed cost at $89/MT Coal purchases at 520K MT

Estimated wtd landed cost at $72/MT

37

1,600

1,535

46 1,368

121

PhP M

Performance bond

Fuel cost (90 days)

Total

Other opex (90 days)

Energy fees (90 days)

Investment for initial working capital

TLI’s Capital Requirement

GOVERNMENT PRIVATIZATION – Pagbilao (cont’d)

38

GOVERNMENT PRIVATIZATION – Power Barges

39

1Q20101Q2010Target Turnover Date

537,793 MwH309,780 MwHFY2008 Generation

Therma Marine, Inc.Therma Mobile, Inc.Acquiring Company

US$14 millionUS$16 millionBid Price

Engine #1: 80,581 hoursEngine #2: 78,775 hours

Engine #1: 58,679 hoursEngine #2: 60,155 hours

Operating Hours (@ full load)

60%

2x50MW

Maco, Compostella Valley

PB 118

30% +Current Load Factor

2x50MW Capacity

Nasipit, Agusan del NorteLocation

PB 117

Asset Acquisition

GOVERNMENT PRIVATIZATION – Moving Forward

Asset AcquisitionIPP Administrator Contracts

40

246MW Angat Hydro(Bulacan)

345MW San Roque Hydro(Pangasinan)

70MW Bakun Hydro(Benguet/Ilocos Sur)

30MW Mini-Hydro Plants

(Benguet)

Greenfield

300MW Subic Coal(Subic)

28MW Tamugan Hydro(Davao)

SFELAPCO’s Rate Increase Application Under RORB

Regulatory Asset Base P3.5 billion

2008 RORB (RAB at P1.1 billion, as of December 2008) 7%

Applied rate increase – for 12% RORB P0.3980/kwh

Initial Date of Hearing October 29, 2009

Next Hearing Date November 18, 2009


41

Bid for Olongapo Distribution Utility Target bid date in February 2010

Location Olongapo, Zambales

Name of DU Olongapo Public Utility Department

Current Owner/Operator City of Olongapo

2008 Electricity Sales 139 Gwh

2008 Peak Demand 29 MW

2008 # of Customers 41,000

2008 Systems Loss 25%

Franchise Expiry 2012


42

Annex: 3Q/9M 2009 EARNINGS BREAKDOWN

43

(in million pesos) YEAR - TO - DATE FOR THE QUARTER%

INVESTEE OWNED ACTUAL ACTUAL ACTUAL ACTUALSEP 30/2009 2009 2008 2009 2008

Parent & Others (285.95) 60.63 (199.26) 84.57

Power Generation Group: PHC Parent 100.00% 16.44 43.35 37.18 (28.50) HEDCOR, INC. 100.00% 161.02 128.39 113.29 81.12 LUZON HYDRO 50.00% 217.87 435.93 123.27 226.08 SNAP - MAGAT 50.00% 435.74 253.57 257.98 (56.33) SNAP - BENGUET 50.00% (44.04) (62.60) 33.15 (62.89) SOUTHERN PHILS. POWER 20.00% 25.35 18.95 8.92 (2.23) WESTERN. MINDANAO POWER 20.00% 80.64 51.65 30.36 18.10 CEBU PRIVATE POWER CORP. 60.00% 172.64 169.97 49.07 60.43 EAST ASIA UTILITIES CORP. 50.00% 107.40 80.11 52.47 31.83 STEAG 34.00% 761.86 874.27 194.48 382.43 AP RENEWABLES, INC. 100.00% 1,007.20 (0.06) 1,000.40 (0.06) OTHERS 25.36 (8.36) 19.58 13.78

Sub-Total Power Generation 2,967.47 1,985.15 1,920.16 663.77

Power Distribution Group: COTABATO LIGHT & POWER 99.93% 46.84 41.92 19.84 16.24 DAVAO LIGHT & POWER 99.93% 697.48 659.55 299.38 224.56 VISAYAN ELECTRIC CO. 55.15% 130.46 211.08 61.14 51.37 SFELAPCO 43.78% 26.85 33.32 13.93 8.10 SUBIC ENERZONE 99.97% 137.98 72.33 53.96 20.17 MACTAN ENERZONE 100.00% 51.94 78.05 20.26 26.25 BALAMBAN ENERZONE 100.00% 22.34 25.84 8.36 8.05

Sub-Total Power Distribution 1,113.90 1,122.09 476.87 354.74TOTAL NET INCOME 3,795.42 3,167.88 2,197.76 1,103.08

NET INCOME TO COMMON 3,795.42 3,167.88 2,197.76 1,103.08% increase (decrease) 19.81% 99.24%

EARNINGS PER SHARE (average outstanding) 0.516 0.430 0.299 0.150

RECURRING NET INCOME 3,966.69 3,448.41 2,101.25 1,261.44 % increase (decrease) 15.03% 66.58%

RECURRING EPS 0.539 0.469 0.286 0.171

• Overview

• AEV Financials






• Q&A

AGENDA

44

45

FOCUS 2010Intact Despite Economic Cycles

Cementing strategic gains

Net income(in million pesos)

147%

Year-to-date performance clears path towards recovery

101%

484

1,197

1,688

3,394

Q3 2008 Q3 2009 9M 2008 9M 2009

46

5,246

3,745

1,7311,311

3,062

2,693

9911,177

Q3 2008 Q3 2009 9M 2008 9M 2009

Loans Securities

Interest and non-interest income contributed to overall revenue stream


Interest income(in million pesos)

+40%

+14% 4,173

1,5421,773

386

Q3 2008 Q3 2009 9M 2008 9M 2009

Other income(in million pesos)

+360%

+32%

-16%

+171%

47

Net interest margins remained favorable amid a low interest rate environment


4 ,8 2 4

1,0 3 1

2 ,4 15

4 , 8 3 1

1,2 5 5

2 , 73 1

4 ,2 8 0

5 , 8 7 5

1,4 4 5

3 , 19 8

3 ,8 4 3

2 .6 %

3 . 2 %3 .7 %

2 .6 %

3 . 5%4 .0 % 3 . 8 %

3 . 4 % 3 .6 % 3 .4 %

4 .4 %

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q1 2 0 0 7 Q2 2 0 0 7 Q3 2 0 0 7 2 0 0 7 Q1 2 0 0 8 Q2 2 0 0 8 Q3 2 0 0 8 2 0 0 8 Q1 2 0 0 9 Q2 2 0 0 9 Q3 2 0 0 9-4%

-2%

0%

2%

4%

6%

Ne t inte re s t inco m e (in m illio n pe s o s ) Ne t inte re s t m arg in (%)

48

18 6

16 0

172

14 814 3

13 4

152

16 3

17 218 0

15 1

8 2 % 8 4 % 8 1% 8 1% 8 1% 79 % 8 2 % 8 2 % 8 3 % 8 3 %7 7%

100

150

200

250

Q1 2 0 0 7 Q2 2 0 0 7 Q3 2 0 0 7 2 0 0 7 Q1 2 0 0 8 Q2 2 0 0 8 Q3 2 0 0 8 2 0 0 8 Q1 2 0 0 9 Q2 2 0 0 9 Q3 2 0 0 9-400%

-300%

-200%

-100%

0%

100%

200%

Earning as s e ts (in billio n pe s o s ) % to To tal as s e ts

•BASED ON ADB

Improving asset profile

Quality of asset expansion bodes well for long-term profitability

49

1,400 1,483

3,752

4,264

Q3 2008 Q3 2009 9M 2008 9M 2009

Operating expenses exhibited marginal increase in Q3 amid income surge

Managing cost efficiency

Operating expenses(in million pesos)

14%

6%

50

106.8

161.4181.0

end-2007 end-2008 3Q 2009

12%

Expanding customer base

Sustained deposit growth helped by product innovation and service excellence

Outstanding deposits(in billion pesos)

51

195.3 203.9226.6

end-2007 end-2008 3Q 2009

11%

Growing resources

Increase in deposits and loans boosting resource base

Total resources(in billion pesos)

52

42.5

59.8 57.1

end-2007 end-2008 Sept .'09

Healthy level of loan portfolio in line with risk standards

Loans*(in billion pesos)

*excluding IBCL, TAS/RRP, UDSCL, BP, AR, AIR, SCR & ICR

Keeping healthy loan volume

53

Improving credit quality proves effective risk management approach

Net non-performing loans*

Ensuring asset quality

1.5

0.3

0.9

0.53%

1.25%

3.68%

end-2007 end-2008 Sept. '09

Net NPL (in billion pesos) Net NPL ratio

*NPLs & Total Loans net of Loan Reserves

54

Better-than-expected bottomline results translated to CAR improvement

Gearing up for a stronger balance sheet

13.6%12.9%

16.4%

2007 2008 end-Sept 2009

Capital adequacy ratio (%)

55

• Overview

• AEV Financials






• Q&A

AGENDA

56

5,6524,255

2,287

2,135

712

1,163

7041,010

9M2008 9M2009

1,412 1,586 1,256

1,957

738961

436

667377

413

374

472285

382

342

252

1Q09 2Q09 3Q09 3Q08

Freight Passage AODI & SOI Servcie Fees Others

9M2009-P573M higher Revenues exclusive of international charter business-P756M higher value added business

REVENUES (in million pesos)

P2.4B

P3.4B

P9.4BP8.7B

P3.4B

P2.9B 28%8%

3Q2009- P283M lower international charter business- SuperFerry9 Incident - Temporary Suspension of roro-passenger vessels

28%

57

SUPERFERRY 9 INCIDENT & VESSEL SUSPENSION

Enroute to Iloilo from General Santos on September 6, 2009

ATS is fully insured

10 ropax vessels suspended on September 9, 2009

57 cancelled voyages

All vessels passed Marina’s audit and inspection and was cleared for sailing

58

49,110 51,449

44,456

57,351

P22,523

P25,714

P23,323

P25,956

0

1 0,000

2 0,000

3 0,000

4 0,000

5 0,000

6 0,000

7 0,000

1Q09 2Q09 3Q09 3Q082 2 ,000

2 3 ,000

2 4 ,000

2 5 ,000

2 6 ,000

2 7 ,000

2 8 ,000

2 9 ,000

3 0,000

153,209

139,048

P23,394

P24,926

9 5 ,000

1 5 5 ,000

9M2008 9M20092 2 ,000

2 3 ,000

2 4 ,000

2 5 ,000

2 6 ,000

2 7 ,000

2 8 ,000

2 9 ,000

3 0,000

FREIGHT

9M2009

-Same capacity vs 08 with additional Ropax & freighter but with SuperFerry 9 incident and vessel suspension

-9% Lower volumes but 7% higher rates-81% load factor vs. 90% 9M08

Volume in TEUs Average freight rate per TEU

Volume Rate per TEUVolume Rate per TEU

59

491305699529

281

395

274

301

1Q09 2Q09 3Q09 3Q08

1,5341,621

958977

9M2008 9M2009

PASSENGER

9M2009

-ROPAX: 9M2009 8% lower capacity with higher load factor 73% vs. 72%

-FASTCRAFT: Higher volume and higher rates-Higher load factor 61% vs. 55%

Pax volume in Ropax Average rate per Pax

P1,121 P1,079

Pax volume in Fast craft Average rate per Pax for fast craft

P287P319

P1,004

P1,091

P1,020P1,105

P314

P318P323

P325

3Q09

-ROPAX: 38% decrease in volume with 2% lower rates vs 3Q08

-FAST CRAFTS: full operations & not included in the vessel suspension

-Addtl 2 Fastcrafts -New addtl route : Bacolod-IloIlo-10% increase in volume with stable rate vs 3Q08

60

456

13456

1Q09 2Q09 3Q09 3Q08

545

1,269

9M2008 9M2009

3Q09: EBITDA decreased by P78M 9M2009: EBITDA increased by P724M

133%

757

93% 58%

EBITDA (in million pesos)

61

15

20

25

30

35

40

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

FUEL 2008 FUEL 9M2009

VESSEL FUEL COSTS

• Total fuel cost is P1.5B, 37% lower in 9M2009

• 34% lower 9M average fuel price per litre

Sep09 P26/ltr

Price/litre

Sep08 P38/ltr

62

429

(49)

9M2008 9M2009


132

364

(66)(67)

1Q09 2Q09 3Q09 3Q08

119% 2%968%

NET INCOME (in million pesos)

63

• Interest bearing debt of P1.3B with net debt of P20.5M

• Cash & Cash Equivalents of P1.3M

• D/E ratio of 1.00:1.00 (int. bearing debt / Equity of 0.27:1.00)

• Capital expenditures of P1.1B

9,40910,160

4,818 5,0914,5915,068

'Dec 08 'Sep 09

Assets Liabilities Equity

BALANCE SHEET (in million pesos)

64

OUTLOOK

Focus on getting our customers back

Increased fast craft operations

Continue to build our value added business

Uncertainty in fuel prices

65

• Overview

• AEV Financials






• Q&A

AGENDA

66

FINANCIAL HIGHLIGHTS

9M 2006REVENUE (in million pesos)

Flour Feeds Swine

67

4,931 4,583

2,272 3,014

725627

9M2008 9M2009

1,530 1,611 1,4431,852

906 1,039 1,068840

214230 183

180

1Q09 2Q09 3Q09 3Q08

2,872

8,2247,927 4%

2,6502,880 2,695

9M RESULTS QUARTERLY BREAKDOWN

6% 6%


9M 2006NET INCOME (in million pesos)

Flour Feeds Swine

68

268 257

4

418

102

59

9M2008 9M2009

17

98142 13496

128

195

24

22

12

9

1Q09 2Q09 3Q09 3Q08

143

734

374

96%

138

248

349


41% 143%


9M 2006EBITDA (in million pesos)

Flour Feeds Swine

69

614 508

28543159

115

9M2008 9M2009

47

165

296250128

171

244

48

38

29

414

1Q09 2Q09 3Q09 3Q08

267

1,166

801

45%

224

374

569


52% 113%

50,071 45,28154,020 51,738 50,583

57,60952,325

149,372160,517

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 9M2008 9M2009

OPERATING HIGHLIGHTS – Flour Business

Sales Volume

In metric tons

7%

Average Selling Prices and Gross Profit

691761 787 775

678 638 639

1288661115161

69125

-

100

200

300

400

500

600

700

800

900

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009

ASP Gross Profit

Peso/bag

70


Input Costs – Wheat Prices

71


Input Costs – Freight Prices

72

19,099 19,71820,505

22,92321,696 21,622 21,460

7,1575,7285,347

4,1493,0123,1412,956

-

5,000

10,000

15,000

20,000

25,000

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009

ASP IOIC per Ton

Peso/ton

40,59849,222 49,155 48,039

54,73949,310

60,482

138,975

164,531

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 9M2008 9M2009

OPERATING HIGHLIGHTS – Feeds Business

Sales Volume

Average Selling Prices and Income Over Ingredient Cost

In tons

18%

73

OPERATING HIGHLIGHTS – Feeds Business

Feeds Raw Material Cost, at Market (from January 2003 – June 2009)

74

96.36107.05

87.23 87.9297.08 91.99 91.00

11.6213.8420.62

5.248.18

34.0122.94

-

20

40

60

80

100

120

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009

ASP Gross Profit

Peso/kilo

2,5662,065

2,6232,204

2,5012,014

7,430

6,719

2,798

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 9M2008 9M2009

OPERATING HIGHLIGHTS – Swine Business

Sales Volume

Average Selling Prices and Gross Profit

10% In ‘000 kilos

75

• Overview

• AEV Financials






• Q&A

AGENDA

76

Third Quarter / YTD September 2009 Financial & Operating Results

4 November 2009

third quarter / ytd september 2009 financial & operating results 4 november … · 2018. 12....

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