Ayala Land Inc. · PSE:ALI
Ayala Land — UBS CEO-CFO Forum March 2016
43 slides from Ayala Land's conference presentation, March 2016
Slide 1: FY 2015 Investor Presentation
FY 2015 Investor Presentation March 2016
Slide 2: Key Messages
Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positi
Slide 3: Key Messages
Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positi
Slide 4: Steady fundamentals of the Philippine Economy
Steady fundamentals of the Philippine Economy PH Real GDP Growth Rate External Debt-to-GDP 7.1% 6.7% 33.7% 32.0% 6.1% 5.8% 28.9% 28.2% 25.9% 3.7% 2011 2012 2013 2014 2015 2011 2012 2013 2014 1H 2015 Gross International Reserves Inflation Rate (In USD billion) 4.6% 4.1% 83.8 83.2 3.2% 3.0% 80.7 79.8
Slide 5: Key drivers that foster growth of the Real Estate Sector
Complemented by key drivers that foster the growth of the Real Estate Sector Average Mortgage Rates BPO Revenues (in USD billions) 5-Year 10-Year 15-Year 13.5% 21 12.5% 9.8% 18 16 11.5% 8.8% 13 11 7.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2011 2012 2013 2014 2015 F 2015 Tourist Arriv
Slide 6: Consumption, per capita income and growing middle class
Supported by consumption, increasing per capita income and a growing middle class Household Consumption Growth Philippine Household Segmentation (Consumption is 67% of GDP $3.7T) (B&C+ HH now at 16%) 145 K 0.7% A-AAA (120k+) 6.6% 90 K 1.2 5.7% B (50-120k) 6.1% 6.2% 130 K 0.8 2.3 10.6% C+ (30-50k) 5.
Slide 7: Key Messages
Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positi
Slide 8: Leading and most diversified Philippine property developer
Ayala Land: Leading and most diversified Philippine property developer with more than 8,900 has of land bank Tuguegarao • Incorporated in 1988 as a subsidiary of Ayala Corporation, publicly listed in July 1991 Baguio • Ownership - AC: 48%, Public: 52% Pangasinan • Present in 55 growth centers across
Slide 9: Diversified product lines that address various market segments
Diversified product lines that address various market segments Residential Sales Take-Up (In Php Bn) Malls (in GLA) 105.3 Operational Under Construction 2,363 101.7 91.9 1,782 ALP 77.6 1,530 1,546 911 1,346 Alveo 497 51.7 342 287 Avida 266 Amaia 1,452 1,188 1,259 1,336 BellaVita 1,080 2011 2012 2013
Slide 10: Solid track record in developing large scale mixed-use estates
Solid track record in developing large scale, integrated mixed-use estates Mature Estates 1960 2000 Makati Central Business District Bonifacio Global City 1990 2006 Cebu Park District Nuvali 10
Slide 11: New Estates in Mega Manila
New Estates in Mega Manila Makati Taguig Quezon City Alabang Cloverleaf Vermosa (21 has.) (74 has.) (29 has.) (6.6 has.) (11 has.) (700 has.) Entertainment Gateway of the City Center of Convergence in Pocket Urban Modern District South QC the South Haven Suburban GFA build out: GFA build out: GFA bu
Slide 12: Expanding presence in new estates: Luzon
Expanding presence in new estates: Luzon Bulacan (98 has.) Pampanga (1,025 has.) Palawan (325 has.) Vibrant City Living Corridor to the North Island Resort Estate • GFA build out: 768k sqm. • GFA build out: 639 has. • GFA build out: 500k sqm • Residential: 22% • Residential: 87% • Residential: 30% •
Slide 13: Expanding presence in new estates: VisMin
Expanding presence in new estates: VisMin Capitol Central Negros Occidental Negros Occidental Iloilo Cagayan De Oro Davao (9 has.) (215 has.) (21 has.) (3 has.) (10.1 has.) Commercial and Quality Living Emerging Business Commercial District Commercial District Residential District District • GFA bui
Slide 14: Balanced and Complementary Businesses
Balanced and Complementary Businesses Property Commercial Hotels and Services Development Leasing Resorts Residential Shopping Centers Hotels Construction • 5 brands serving 1.45m sqm GLA 2,324 Rooms • 244 projects different income • 49 shopping centers • P124b net order segments Branded (1,294 room
Slide 15: Decentralized Organization
Decentralized Organization Residential Shopping Centers Office Hotels & Resorts Property Shared Regional Construction Services Management APRISA BUSINESS PROCESS SOLUTIONS, INC. an AyalaLand company 15
Slide 16: Highly trusted Brand
Highly trusted Brand Residential Malls Offices #1 in Residential #2 in Shopping #2 in Development Centers GLA Offices GLA Hotels and Resorts Mixed-Use Estates Industrial Parks #1 in no. of Hotel #1 in size #1 in export revenue Room Keys and employment and location generation 16
Slide 17: Key Messages
Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positi
Slide 18: Balanced and sustainable growth through the 2020-40 Plan
Balanced and sustainable growth through the 2020-40 Plan Net Income After Tax P40B 40 20% Annual Growth Rate NIAT By 2020 17.6 14.8 11.7 Sustainable and balanced growth strategy: 50% from Residential Development 2013 2014 2015 2016 2017 2018 2019 2020 • Mix: 50% Horizontal, 50% Vertical 50% from Lea
Slide 19: Platform for growth in place
Platform for growth in place Makati Cebu Bonifacio Global City Nuvali 1960 1990 2000 2006 Present Present Present Present Capitol Central 18 estates as of 30 Sep 2015 19
Slide 20: Residential: Steady launch of various product lines
Residential: Steady launch of various product lines Wide product offering to address a broader market segment Based on Income Classes of 18M Households Segment Price Range Average/unit P9 - 180M P18M High End “A-AAA” – (1%) (US$200-4M) (US$400k) (P120-250K/mo) P4 - 33M P8M Upscale (US$100-735K) (US$
Slide 21: Leasing: Continued expansion of investment properties
Leasing: Continued expansion of investment properties Malls, Offices and Hotels and Resorts growth • Regional Malls • Headquarter Type Offices • SEDA Hotels • Lifestyle Malls • BPO-Type Facilities • Island Resorts and Estates • Value Malls • International Brand • Community Centers Formats Malls GLA
Slide 22: Healthy Balance Sheet to support growth
Healthy Balance Sheet to support growth Balance Sheet December December Change % (in P millions) 2015 2014 Cash & Cash Equivalents* 19,540 34,587 (15,047) -44% Total Borrowings 130,996 124,666 6,330 5% Stockholders’ Equity 149,825 121,996 27,829 23% Current Ratio 1.14 1.22 - - Debt-to-Equity Ratio**
Slide 23: FY 2015 Financial and Operations Results
FY 2015 Financial and Operations Results 1. Steady net income growth of 19% to P17.6b • Revenues increased 13% to P107.2b driven by the sustained performance of core businesses which grew 22% before intercompany adjustments • Margins improved across product lines 2. Healthy balance sheet with a cash
Slide 24: Steady net income growth of 19% to P17.6b
Steady net income growth of 19% to P17.6b • Revenues higher Income Statement FY 2015 FY 2014 Change % by 13% (in Php millions) Total Revenues 107,183 95,197 11,986 13% Real Estate* 105,466 93,041 12,425 13% • GAE ratio Interest & Other Income 1,717 2,156 (439) -20% improved to 6.2% Equity in Net Ear
Slide 25: Sustained performance of core real estate businesses
Sustained performance of core real estate businesses Revenue Breakdown FY 2015 FY 2014 Change % (in P millions) Property Development 72,570 65,854 6,716 10% Residential 62,711 55,877 6,835 12% New bookings and project completion Office for Sale 6,907 5,258 1,649 31% Contribution of new launches and
Slide 26: Improved margins across product lines
Improved margins across product lines Margin Performance 2015 2014 Property Development (Gross profit) Residential Horizontal 44% 43% Sale of higher margin horizontal projects Vertical 34% 33% Steady margins across vertical projects Office for Sale 38% 38% Maintained office for sale margins Commerci
Slide 27: Continued diversification into new growth centers
Continued diversification into new growth centers NIAT contribution per business center 36% ] Other Vismin 32% Other Luzon ] 34% Other MM FTI Manila 24% ] 27% ] ] Vertis Cebu Alabang BGC Nuvali Makati 2011 2012 2013 2014 2015 27
Slide 28: Continued build up of recurring income business
Continued build up of recurring income business NIAT contribution per core business segment* 34% 27% ] ] 29% Hotels & Resorts Office Malls Comm'l / Ind'l Lots Bellavita ] Amaia Avida 36% Alveo 38% ] ] ALP 2011 2012 2013 2014 2015 * Excludes NIAT from services. Target is to increase the recurring inc
Slide 29: Healthy Balance Sheet to support growth
Healthy Balance Sheet to support growth Balance Sheet December December Change % (in P millions) 2015 2014 Cash & Cash Equivalents* 19,540 34,587 (15,047) -44% Total Borrowings 130,996 124,666 6,330 5% Stockholders’ Equity 149,825 121,996 27,829 23% Current Ratio 1.14 1.22 - - Debt-to-Equity Ratio**
Slide 30: Debt mix and maturities at manageable levels
Debt mix and maturities at manageable levels As of December 31, 2015 Total Borrowings: Php131B, Short-term Php10.5B 9.0% 18 7.9% Short-term Debt Maturity 8.0% 7.3% 16 (in Php Billions) 7.0% 15.7 14 6.2% 15.1 14.4 Long-term Debt Maturity 6.0% 5.3% 5.1% 13.1 12.9 (in Php Billions) 12 4.7% 5.0% 4.5% 10
Slide 31: Capex spend at P82b
Capex spend at P82b FY 2015 Capex Spend Historical Capex (In Php billions) (In Php billions) Project Completion Land Acquisition P83b P82b Land Acquisition P72b Others* 28% P66b 23 7% 32 Estate 59 41 27 Developme nt 51 4% Offices Residential P30b 39 Hotels 8% 40% 5 2% 31 Malls 25 11% 2011 2012 2013
Slide 32: Residential: Sales take-up 4% higher yoy
Residential: Sales take-up 4% higher yoy • Sales take-up of P105.3b Sales Take-Up (In Php Bn) 101.7 105.3 (average of P8.8b in 91.9 monthly sales) 77.6 ALP Alveo 51.7 • Overseas Filipino Sales : Avida P26.7b (25% of total sales) Amaia BellaVita • Booked sales of P74.9b 2011 2012 2013 2014 2015 Booke
Slide 33: Steady build-up of unbooked revenues
Steady build-up of unbooked revenues • Unbooked revenues up Unbooked Revenues 129 6% yoy (P129b vs P122b 122 (in Php Billions) in 2014) • 2.3x residential revenues 99 in FY2014 (P55.9b) 65 48 19 12 2009 2010 2011 2012 2013 2014 2015 33
Slide 34: Shopping Centers: GLA up 8% to 1.45m sqm GLA
Shopping Centers: GLA up 8% to 1.45m sqm GLA • Key Mall Space Completed (2015): 124K – Solenad 3 (40K) – UP Town Center Ph1B (23K) – Serin (11K) – Circuit Lane (12k) – Atria (8K) Circuit Lane Makati (Sep) 12KGLA – Legazpi (3k) – Expansion (Trinoma & Marquee) (27k) • Average Occupancy Rate: 94% Solen
Slide 35: Shopping Centers Update
Shopping Centers Update Shopping spaces key launches in 2015: 419k GLA Under Construction: 818k sqm Completion Mall GLA (in k sqm) 2016 Lio El Nido 3 (177k) Vertis North QC 47 Legaspi 15 Manila Bay (Nov) Capitol Central Bacolod (Mar) Southpark alabang 47 232K GLA 74K GLA Riverside 1 UPTC Ph2 33 BHS
Slide 36: Offices: GLA up 17% to 715K sqm GLA
Offices: GLA up 17% to 715K sqm GLA • Key Office Space Completed (2015): 78K GLA – BGC Corporate Center (27K) – ATC Alabang BPO (18K) – Boni Stopover (17K) – Ebloc 4 (16K) • Total Offices GLA: 715k sqm Bonifacio Stopover Ebloc 4 (17k GLA) (16kGLA) • Average Occupancy Rate: 84%* • Average Lease Rate:
Slide 37: Offices Update
Under Construction: 715GLA Offices Update Completion Office GLA (in k sqm) Offices spaces launches in 2015: 128k GLA 2016 The 30th Sunrise 47 (189k) Centrio 9 Boni Stopover 18 Vertis 1 41 PSE at BGC 29 ACC Cebu BPO 29 UP Technohub Bldg P* 10 UPIS 6 2017 Vertis 2 42 (177k) Circuit 1 45 Manila Bay Are
Slide 38: Hotels and Resorts: 2,324 rooms in operation
Hotels and Resorts: 2,324* rooms in operation FY 2015 Hotels Resorts Key opening in 2015: 152 Rooms No. of rooms Branded: 1,294* El Nido Resorts: in operation Seda: 817 213 Revpar/night P3,888 P7,557 (up 1%) (up 13%) Average P5,321 P13,078 room rate (up 1%) (down 7%) Average 73% 58% occupancy (up .4
Slide 39: Hotels and Resorts Update
Hotels and Resorts Update Key Launches in 2015 : 822 Rooms Under Construction: 2,781 Rooms Completion Hotel No. of Rooms 2016 El Nido B&B 2* 42 Seda Bacolod* 154 2017 Seda Vertis North 438 Seda Lio 153 2018 Seda Circuit 255 Seda Arca South 265 Seda CITP 214 Seda BGC Expansion 341 Mandarin Oriental (
Slide 40: Capex projection for FY16 of P85b
Capex projection for FY16 of P85b 2016 Estate Capex Spend (in Pb) Development 5% Land Acquisition 15 Others* 9% Hotels and Land Residential development 34 Resorts 4% Acquisition, 18% Malls 14 Offices 7 Hotels and Resorts 3 Offices 8% Estate Development 4 Others* 7 Malls 16% Total 85 Residential deve
Slide 41: In Summary
In Summary • The Philippine Economy’s strong fundamentals support the growth of the Real Estate sector • Ayala Land is uniquely positioned to take advantage of the growth prospects in the Real Estate sector • Ayala Land has the solid track record and has clear strategies under its 2020-40 Plan that
Slide 42: Why invest in ALI?
Why invest in ALI? Makati 1960 Today • Strategy supported by growth drivers of the resilient Philippine economy • Market leading platform of building large scale, mixed-use communities Bonifacio Global City • Consistently launching new 2000 Today growth centers nationwide • Broad based and complemen
Slide 43: Awards and Recognition (2015)
Awards and Recognition (2015) 2015 ASEAN Corporate Governance Awards One of the top 3 in the Philippines One of the top 50 in ASEAN ASEAN Corporate Sustainability Awards Ethics and Governance Winner Institutional Investor INVESTOR COMMUNICATION Best Investor Relations Program – Sell Side (Third) and