Ayala Corp. nets P13.8B

CONGLOMERATE Ayala Corp. grew its first semester net profit by 32 percent year-on-year to P13.8 billion on robust earnings from its banking, real estate, power and automotive businesses.

Equity earnings from Ayala’s business units increased by 24 percent year-on-year to P16.4 billion in the first semester, boosted by strong contributions from the Bank of the Philippine Islands and Ayala Land, which expanded by 16 percent. In addition, Ayala’s unlisted businesses registered solid performance in the first semester led by AC Energy and Ayala Automotive, which both expanded threefold.

“Most of our business units recorded an overall strong performance in the first half of the year.
Among our new businesses, our power unit is starting to contribute significantly to our
bottomline,” Ayala president and chief operating officer Fernando Zobel de Ayala said in a press statement on Thursday.

“We continue to strengthen our portfolio by entering new industries or reinventing our existing
businesses. For instance, we are developing an automotive and manufacturing portfolio in order
to maximize synergies in the Ayala group and take advantage of the exciting opportunities in this
space,” Zobel added.

AC Energy almost tripled its net income for the same period from the previous year to P578 million, largely driven by higher equity earning contributions from its operating thermal plants, GNPower Mariveles in Bataan and South Luzon Thermal Energy Corp. in Batangas.

The group currently has around 750MW in attributable capacity across its thermal and renewable
energy platforms. It is expected to exceed 1,000 megawatts of attributable capacity by the end of
2016.

In automotive, Ayala Automotive more than tripled its net earnings to P402 million in the first half of the year compared to the previous year. This was supported by strong sales across the Honda and Isuzu brands, lifted by higher contributions from the Isuzu distribution businesses.

In transport, AC Infrastructure recorded a net income of P27 million in the first semester following the system takeover of LRT1 in September 2015. AC Infrastructure currently has three operating public-private partnership projects in its portfolio – the four-kilometer MCX toll road, the Beep ticketing system, and the extension, operations and maintenance of LRT1.

It was earlier reported that Ayala’s publicly listed operating units performed in the first semester year-on-year as follows:

– Ayala Land’s net profits expanded by 16 percent to P9.7 billion in the first semester largely driven
by strong revenue growth and higher margins of its residential and leasing businesses.

Bank of the Philippine Islands’ six-month net income surged by 36 percent to P12.7 billion bolstered by its core banking business and securities trading gains during the period.

Globe Telecom’s first semester net income rose by 3 percent to P9 billion;

Manila Water’s net earnings in the first semester rose by 3 percent year-on-year to P3.1 billion.

IMI posted a flat net income in the first semester at $15 million, as higher margins from the
automotive and industrial product segments and line productivity and cost savings initiatives
were partially offset by foreign exchange headwinds due to a stronger dollar.