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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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• 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%
Power Banking Transport Food Parent & Others
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
Power Banking Transport Food Parent & Others
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
Power Banking Transport Food Parent & Others
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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• Q&A
AGENDA
13
• Overview
• AEV Financials
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• 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
Distribution Generation
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
Distribution Generation
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)
OPERATING HIGHLIGHTS – HYDRO
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
OPERATING HIGHLIGHTS – HYDRO
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
OPERATING HIGHLIGHTS – HYDRO
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.
OPERATING HIGHLIGHTS – HYDRO
-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
OPERATING HIGHLIGHTS – HYDRO
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%
OPERATING HIGHLIGHTS – DISTRIBUTION
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
OPERATING HIGHLIGHTS – DISTRIBUTION
Amounts in Million Pesos
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
GOVERNMENT PRIVATIZATION – Moving Forward
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
GOVERNMENT PRIVATIZATION – Moving Forward
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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• 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
Cementing strategic gains
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
Cementing strategic gains
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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• 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
Amounts in Million Pesos
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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• 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%
FINANCIAL HIGHLIGHTS
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
9M RESULTS QUARTERLY BREAKDOWN
41% 143%
FINANCIAL HIGHLIGHTS
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
9M RESULTS QUARTERLY BREAKDOWN
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
OPERATING HIGHLIGHTS – Flour Business
Input Costs – Wheat Prices
71
OPERATING HIGHLIGHTS – Flour Business
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
• Review of Business Units
• Aboitiz Power Corporation
• Union Bank of the Philippines
• Aboitiz Transport System
• Pilmico Foods Corporation
• Q&A
AGENDA
76
Third Quarter / YTD September 2009 Financial & Operating Results
4 November 2009