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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 the following segments: Parent Company, Real Estate and Hotels, Financial Services and Insurance, Telecommunications, Water, Electronics, Power Generation, and Automotive and Others. The Parent Company segment represents the 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 sewage 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 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 2021 PHPUSD
Revenue225,591.92M4,576.40M
Gross Profit46,987.47M953.19M
Operating income21,549.00M437.14M
Income before tax19,377.21M393.08M
Net income28,238.17M572.84M
EBITDA36,979.15M750.16M
Diluted EPS42.510.86
Dividends Per Share6.920.14
Total Assets1,351.34B26,500.93M
Total liabilities783,673.17M15,368.40M
Total equity365,094.79M7,159.77M
Operating cash flow10,041.96M203.71M
Currency in PHPCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 242,227.64M 256,891.28M 264,906.53M 193,622.43M 225,591.92M
Gross Profit 64,635.13M 65,238.01M 72,040.54M 46,125.57M 46,987.47M
Operating income 43,343.67M 42,356.12M 44,690.45M 20,441.08M 21,549.00M
Income before tax 62,126.53M 42,490.51M 64,055.60M 7,096.73M 19,377.21M
Net income 30,263.84M 31,817.72M 35,279.33M 11,944.67M 28,238.17M
EBITDA 55,641.53M 55,917.71M 63,331.76M 36,796.38M 36,979.15M
Diluted EPS 45.99 48.35 53.92 25.23 42.51
Dividends Per Share 6.92 6.92 8.30 6.92 6.92
Total Assets 1,023.54B 1,199.45B 1,347.00B 1,407.99B 1,351.34B
Total liabilities 611,257.51M 728,817.26M 835,972.40M 863,335.88M 783,673.17M
Total equity 257,541.10M 292,133.18M 330,526.39M 341,420.86M 365,094.79M
Operating cash flow 30,059.54M 51,424.34M 35,122.25M -5,223.25M 10,041.96M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 4,804.70M 4,876.18M 5,115.96M 3,903.63M 4,576.40M
Gross Profit 1,282.07M 1,238.31M 1,391.27M 929.94M 953.19M
Operating income 859.74M 803.98M 863.07M 412.11M 437.14M
Income before tax 1,232.31M 806.53M 1,237.06M 143.07M 393.08M
Net income 600.29M 603.94M 681.32M 240.81M 572.84M
EBITDA 1,103.67M 1,061.40M 1,223.08M 741.85M 750.16M
Diluted EPS 0.91 0.91 1.04 0.50 0.86
Dividends Per Share 0.13 0.13 0.16 0.13 0.14
Total Assets 20,503.67M 22,809.76M 26,597.00M 29,318.96M 26,500.93M
Total liabilities 12,244.74M 13,859.79M 16,506.51M 17,977.36M 15,368.40M
Total equity 5,159.07M 5,555.44M 6,526.33M 7,109.45M 7,159.77M
Operating cash flow 596.24M 976.11M 678.29M -105.30M 203.71M

Valuation Measures

Dec 2021
PER19.51
ROA2.04%
ROE7.99%
Operating margin9.55%
Profit margin12.51%

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 & Senior MD: Solomon M. Hermosura
  • Managing Director: John Philip S. Orbeta

Shareholders

  • Mermac, Inc. (47.9%)
  • Mitsubishi Corp. (6.1%)
  • Norges Bank Investment Management (1.7%)
  • The Vanguard Group, Inc. (1.6%)
  • SM Investments Corp. (1.4%)
  • Orbis Investment Management Ltd. (0.8%)
  • BlackRock Fund Advisors (0.7%)
  • BDO Unibank, Inc. (Investment Management) (0.3%)
  • Geode Capital Management LLC (0.2%)
  • Estate Of Sy Henry Sr (0.2%)

Contact Details

  • Website:http://www.ayala.com.ph
  • Address: Ayala Triangle Gardens Tower 2, Paseo de Roxas cor Makati Avenue, Makati City, 1226, Philippines
  • Phone: +63.2.908.3000

Related Companies

  • AC Logistics Holdings Corp.
  • MCX Project Co., Inc.
  • AC Energy & Infrastructure Corp.
  • Ayala Capital
  • GNPower Kauswagan
  • PFIL North America, Inc.
  • AC Ventures Holding Corp.
  • Michigan Holdings, Inc. (Philippines)
  • 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
  • Bestfull Holdings Ltd.
  • Water Capital Works, Inc.
  • Honda Cars Makati, Inc.
  • AC Industrial Technology Holdings, Inc.
  • Philwater Holdings Co., Inc.
  • Azalea Technology Investments, Inc.
  • Far East Trust Co.

Competitors

  • Robinsons Land Corp.
  • Megaworld Corp.
  • Flex Ltd.
  • SM Prime Holdings, Inc.
  • Vista Land & Lifescapes, Inc.
  • Plexus Corp.
  • Kimball Electronics, Inc.
  • AGL Energy Limited
  • CLP Holdings Limited
  • DMCI Holdings Inc.
  • Filinvest Land Incorporated
  • Origin Energy Limited
  • Shell PLC
  • American International Group, Inc.
  • SM Investments Corporation
  • First Gen Corporation
  • Metro Pacific Investments Corporation
  • Megawide Construction Corporation
  • Robinsons Retail Holdings, Inc.
Last Updated on 12 Aug, 2022

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