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Finance

Ayala Corp.

Company Background

Founded in 1834, Ayala Corp. is the Philippines' oldest conglomerate, controlled by the Zobel Filipino-Spanish family. Currently, the company is led by brothers Jaime Augusto Zobel, who serves as the company's chairman and CEO, and Fernando Zobel, who sits as the president and chief operating officer.

 

Its core businesses are real estate development (Ayala Land), financial services (Bank of the Philippine Islands), telecommunications (Globe Telecom, a joint venture with Singapore Telecommunications), and water distribution (Manila Water). The company, however, also has interests in electronics manufacturing and business process outsourcing.

 

Ayala, backed by Japanese conglomerate Mitsubishi Corp., is slowly expanding into the infrastructure and power sectors. Through AC Energy Holdings, Ayala aims to build power generating capacity of 1,000 megawatts by 2016, while it intends to build expressways and railways via AC Infrastructure Holdings. Together with Metro Pacific Investments, the company recently won a $1.5 billion contract to expand and run a major overhead railway in Manila. The company has also announced a foray into education.

Business Summary

Ayala Corp. operates as a holding company, which is engaged in providing real estate, telecommunications, utilities, logistics, financial and insurance services. It operates through following business segments: Parent Company, Real Estate and Hotels, Financial Services and Insurance, Telecommunications, Water Infrastructure, Electronics Manufacturing, Power generation, and Automotive, IT/BPO and Others. The Parent Company segment represents operations of the Parent Company including its financing entities such as ACIFL, AYCFL, PFIL and MHI. The Real Estate and Hotels segment is engaged in planning and development of large-scale fully integrated mixed-used communities that become thriving economic centers in their respective regions. The Financial Services and Insurance segment offers banking services including savings and time deposits, loans, foreign exchange and securities dealing, and safety deposit facilities. The Telecommunications segment provides digital wireless and wireline voice communication services, broadband services, long distance communication, and mobile commerce services. The Water Infrastructure segment manages, operates repairs, decommissions, and refurbishes all fixed and movable assets required to provide water delivery and sewerage services. The Electronics Manufacturing segment offers electronics manufacturing services for original equipment manufacturers in the computing, communications, consumer, automotive, industrial and medical electronics markets. The Power Generation segment is engaged in building portfolio of power generation assets using renewable and conventional technologies which in turn will operate business of generating, transmission of electricity, distribution of electricity and supply of electricity, including the provision of related services. The Automotive, IT/BPO and Others segment is engaged in manufacturing, distribution and sale and providing repairs and services for passenger cars and commercial vehicles. The company was founded on January 23, 1968 and is headquartered in Makati, Philippines.

Financial Highlights

Dec 2020 PHPUSD
Revenue193,622.43M3,903.63M
Gross Profit46,125.57M929.94M
Operating income20,441.08M412.11M
Income before tax7,096.73M143.07M
Net income11,944.67M240.81M
EBITDA36,796.38M741.85M
Diluted EPS25.230.50
Dividends Per Share6.920.13
Total Assets1,407.99B29,318.96M
Total liabilities863,335.88M17,977.36M
Total equity341,420.86M7,109.45M
Operating cash flow-5,223.25M-105.30M
Currency in PHPCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 199,208.89M 242,227.64M 256,891.28M 264,906.53M 193,622.43M
Gross Profit 56,009.24M 64,635.13M 65,238.01M 72,040.54M 46,125.57M
Operating income 38,409.98M 43,343.67M 42,356.12M 44,690.45M 20,441.08M
Income before tax 35,785.69M 62,126.53M 42,490.51M 64,055.60M 7,096.73M
Net income 26,011.26M 30,263.84M 31,817.72M 35,279.33M 11,944.67M
EBITDA 49,970.45M 55,641.53M 55,917.71M 63,331.76M 36,796.38M
Diluted EPS 39.30 45.99 48.35 53.92 25.23
Dividends Per Share 5.76 6.92 6.92 8.30 6.92
Total Assets 913,273.80M 1,023.54B 1,199.45B 1,347.00B 1,407.99B
Total liabilities 542,631.87M 611,257.51M 728,817.26M 835,972.40M 863,335.88M
Total equity 230,568.58M 257,541.10M 292,133.18M 330,526.39M 341,420.86M
Operating cash flow 43,777.69M 30,059.54M 51,424.34M 35,122.25M -5,223.25M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 4,194.97M 4,804.70M 4,876.18M 5,115.96M 3,903.63M
Gross Profit 1,179.45M 1,282.07M 1,238.31M 1,391.27M 929.94M
Operating income 808.84M 859.74M 803.98M 863.07M 412.11M
Income before tax 753.58M 1,232.31M 806.53M 1,237.06M 143.07M
Net income 547.74M 600.29M 603.94M 681.32M 240.81M
EBITDA 1,052.28M 1,103.67M 1,061.40M 1,223.08M 741.85M
Diluted EPS 0.82 0.91 0.91 1.04 0.50
Dividends Per Share 0.12 0.13 0.13 0.16 0.13
Total Assets 18,371.10M 20,503.67M 22,809.76M 26,597.00M 29,318.96M
Total liabilities 10,915.40M 12,244.74M 13,859.79M 16,506.51M 17,977.36M
Total equity 4,638.04M 5,159.07M 5,555.44M 6,526.33M 7,109.45M
Operating cash flow 921.87M 596.24M 976.11M 678.29M -105.30M

Valuation Measures

Dec 2020
PER32.64
ROA0.86%
ROE3.55%
Operating margin10.55%
Profit margin6.16%

Key executives

  • Vice Chairman, President & Chief Executive Officer: Fernando Miranda Zobel de Ayala
  • CFO, Chief Risk & Sustainability Officer: Alberto Macapinlac de Larrazabal
  • Chief Information Officer: Maria Angelica B. Rapadas
  • Secretary, Chief Legal Officer & General Counsel: Solomon M. Hermosura
  • Managing Director: John Philip S. Orbeta

Shareholders

  • Mermac, Inc. (47.8%)
  • Mitsubishi Corp. (6.0%)
  • Norges Bank Investment Management (1.8%)
  • The Vanguard Group, Inc. (1.6%)
  • SM Investments Corp. (1.4%)
  • The Caisse de depot et placement du Quebec (1.4%)
  • Orbis Investment Management Ltd. (0.8%)
  • BlackRock Fund Advisors (0.7%)
  • BDO Unibank, Inc. (Investment Management) (0.3%)
  • Estate Of Sy Henry Sr (0.2%)

Contact Details

  • Website:http://www.ayala.com.ph
  • Address: Tower One and Exchange Plaza, Ayala Avenue, Makati City, 1226, Philippines
  • Phone: +63.2.908.3000

Related Companies

  • AC Energy & Infrastructure Corp.
  • Ayala Capital
  • GNPower Kauswagan
  • PFIL North America, Inc.
  • Michigan Holdings, Inc. /PH/
  • Ayala Healthcare Holdings, Inc.
  • Ayala Education, Inc.
  • Ayala Group Legal
  • AC Infrastructure Holdings Corp.
  • AC Energy Holdings, Inc.
  • Universal Reinsurance Corp.
  • AG Counselors Corp.
  • Pure Foods International Ltd.
  • EDINet Philippines, Inc.
  • Ayala Aviation Corp.
  • iOne Resources, Inc.
  • AYC Finance Ltd.
  • Darong Agricultural Development Corp.
  • Technopark Land, Inc.
  • Ayala Multi Purpose Cooperative
  • BPI Card Finance Corp.
  • Bestfull Holdings Ltd.
  • Water Capital Works, Inc.
  • Makati Development Corp.
  • Honda Cars Makati, Inc.
  • AC Industrial Technology Holdings, Inc.
  • Philwater Holdings Co., Inc.
  • Azalea Technology Investments, Inc.
  • Far East Trust Co.
  • Ayala Corp. ESOWN

Competitors

  • Plexus Corp.
  • Flex Ltd.
  • Kimball Electronics, Inc.
  • SM Prime Holdings, Inc.
  • Megaworld Corp.
  • Robinsons Land Corp.
  • DMCI Holdings Inc.
  • Filinvest Land Incorporated
  • Vista Land & Lifescapes, Inc.
  • American International Group, Inc.
  • EEI Corporation
  • First Gen Corporation
  • Metro Pacific Investments Corporation
  • Megawide Construction Corporation
  • Robinsons Retail Holdings, Inc.
  • SM Investments Corporation
Last Updated on 18 Oct, 2021

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