Ayala Land Inc. · PSE:ALI
Ayala Land — 9M 2019 Earnings Presentation
46 slides from Ayala Land's earnings presentation, Nov 13, 2019
Slide 1: Investor Presentation 9M 2019
WK AyalaLand Investor Presentation 9M 2019
Slide 2: Key Messages
Key Messages ¢ Ayala Land is the largest and most established property developer in the Philippines, a constituent stock of the Philippine Stock Exchange, and the second largest property developer in the ASEAN region based on market capitalization. * Steady GDP growth, key economic factors and favor
Slide 3: Largest and most established property developer in the Philippines
Ayala Land is the largest and most established property developer in the Philippines * Incorporated in 1988 as a subsidiary of Ayala Corporation * Publicly listed in July 1991 Revenues and Total Assets (in Php Billions) Revenues & Total Assets 669 536 574 442 389 107 125 142 166 an oe oe oe OG 2014
Slide 4: Ayala Land is a subsidiary of Ayala Corporation
Ayala Land is a subsidiary of Ayala Corporation 1K Real Estate Financial Services Telecommunications Water Utilities Ayala WK aAyalaLand © BAILIPPINE ISLANDS clove MANILA WATER 44.42% 48.6% 31.0% 51.6% The largest property Pioneering financial institution Leading digital lifestyle and Regional playe
Slide 5: Steady GDP growth fosters confidence and continued progress
Steady GDP growth fosters confidence and continued progress GDP 9 Growth 71% 6.9% 6.7% 6.2% GDP at constant prices 2013 2014 2015 2016 2017 2018 2017 GDP Growth 6.9% ) 6.8% Source: BSP More Railways, # Urban Mass Transport, Airports & Seaports PHILIPPINES hag was noo a = @ More Bridges & Roads 5.5%
Slide 6: 8.0 6.0 73.00% 4.0 68.00% 2.0 0.0 63.00%
8.0 6.0 73.00% 4.0 68.00% 2.0 0.0 63.00%
Slide 7: Favorable demographics support long-term growth
Favorable demographics support long-term growth Philippine Population: Total Philippine population is estimated to reach more than 140m by 2050 Population Philippines tz0g00p0 + eopn0 peo +} p00 00 + 0 860 00 20 0 | — rrwcones Popuiten (US census taxeay, erabcnsl Oat aoe) sm cae Source: US Census Bu
Slide 8: Map of Ayala Land estates nationwide
Tuguegarao Baguio Pangasinan Tarlac Cabanatuan Pampanga SJDM Anvaya, Bataan Bulacan Cavite Metro Manila Laguna Rizal Batangas Lucena Naga Legazpi Sicogon El Iloilo Nido Bacolod Cebu CDO Misamis Oriental Davao
Slide 9: Diversified product line address various business segments
Diversified product line address various business segments Property Development Commercial Leasing Services Residential Brands AyalaLand Premier (Luxury) Alveo (Upscale) Avida (Middle-Income) Amaia (Economic) Bellavita (Socialized) Office for Sale Makati, BGC and Vertis North Commercial and Industri
Slide 10: Solid track record in developing large-scale mixed-use estates
Solid track record in developing large-scale, integrated mixed-use estates Established Estates Cebu Park District Nuvali 1990 | 78 ha. Global City 2009 | 2,290 ha. 2003 | 240 ha. Makati CBD 1948 | 950 ha. Ayala Alabang 1970 | 670 ha.
Slide 11: Emerging estates in Mega Manila
Emerging estates in Mega Manila lay a he NORTH CIrcuIT Circuit Makati 2012 Makati | 21 ha Entertainment District GFA build out: 1.3m sqm. + Residential: 66% * Office and retail: 25% + Hotel and others: 9% Vertis North 2012 Quezon City | 29 ha. City Center of QC GFA build out: 1.8m sqm + Residential:
Slide 12: Emerging estates in Mega Manila
Emerging estates in Mega Manila South Park South Park District 2012 Alabang | 6.6 ha. Convergence in the South GFA build out: 339k sqm + Residential 62% * Office and retail: 31% + Others: 7% ARCA SOUTH Arca South 2014 Taguig | 74 ha. Gateway of the South GFA build out: 3.6m sqm + Residential: 31% *
Slide 13: Emerging estates in Luzon and Tourism Resort Estates
Emerging estates in Luzon and Tourism Resort Estates raN ALTARAZA (2) L 1 O cresendo Alviera Cresendo Lio Sicogon Island Resort 2014 2014 2019 2014 2016 Bulacan |109 ha. Pampanga |1,800 ha. Tarlac | 290 ha. Palawan | 325 ha. lloilo | 1,100 ha. Vibrant City Living Corridor to the North Modern local I
Slide 14: Emerging estates in Visayas and Mindanao
Emerging estates in Visayas and Mindanao ATRIA A PARK DISTRICT € North Point North Point. Capitol Central 2011 2012 2014 2015 Negros Occidental | 215 ha. Cagayan De Oro | 3.7 ha. lloilo | 20 ha. Negros Occidental | 9 ha. Quality Living Commercial District Emerging Business District Commercial and Re
Slide 15: Emerging estates in Visayas and Mindanao
Emerging estates in Visayas and Mindanao Se Azuela Cove DAVAO CITY Gatewalk Central 2016 Cebu |17.5 ha. Dynamic Center in Cebu GFA build out: 135k sqm * Office:15% + Retail: 85% Seagrove 2017 Cebu | 13.6 ha. Coastal Leisure Hub of Mactan GFA build out: 73k sqm + Hotel: 82% + Retail: 18% Abreeza Tiec
Slide 16: The largest developer of industrial estates
The largest developer of industrial estates WKAyalaLand ; LOGISTICS HOLDINGS CORP. A * All ownership: 70.9% le ; ‘ A * Warehouse leasing: 175k sqm Laguna Technopark Cavite Technopark 1990 2015 Binan-Sta. Rosa | 471 ha. Naic | 166 ha. + Industrial lots: 306 ha. + Industrial lots: 85 ha. * Warehouse l
Slide 17: A highly trusted Brand
A highly trusted Brand WK AyalaLand #1 Mixed-Use Estates, size and location #1 Residential Development #1 Industrial Estate Development #2 Malls GLA #1 Offices GLA #3 Hotel Rooms 7
Slide 18: 2.5 1.2 0.8 1.5 0.6 0.4 0.5 0.2 1.2 3,500 1.2 1.2 3,000 1
2.5 1.2 1 2 0.8 1.5 0.6 1 0.4 0.5 0.2 0 0 1.2 3,500 1.2 1.2 3,000 1 1 1 2,500 0.8 0.8 0.8 2,000 0.6 0.6 0.6 1,500 0.4 0.4 0.4 1,000 0.2 0.2 0.2 500 0 0 0 0
Slide 19: On track to achieve P40B in net income by 2020
We are on track to achieve P40B in net income by 2020 P40B Sustainable and balanced growth strategy through a healthy mix of Property | Net income 2020 Development and Leasing | CAGR: 17% a 40.0 Net Income : CAGR: 20% Net Income After Tax (in Php billions) so 2009 2010 2011 2012 2013 2014 2015 2016
Slide 20: Project launches are geared to seize market demand
Project launches are geared to seize market demand Wide product offering to address a broader market segment Based on Income Classes of 23M Households 012 2015 AAA { %) AAAA(1%) — WK AyalaLahdP ren Boo PdoKimo B (7%) ALVEO im ones Avida Amaia Ce eae) D/E P50% \vBellaVita Projected housing backlog by
Slide 21: 2.5 1.2 1.2 3,500 1.2 1.2 13,000 0.8 1.5 2,500 0.8 .8 0.8 0.6
2.5 1.2 1.2 3,500 1 1.2 1.2 2 1 1 13,000 0.8 1.5 2,500 0.8 0.8 0.8 0.6 2,000 0.6 0.6 0.6 1 1,500 0.4 0.4 0.4 0.4 1,000 0.5 0.20.2 0.2500 0.2 0 0 0 0 0 0 • • • • • • • • •
Slide 22: Other Leasing Formats
Other Leasing Formats WKayalaLand LOGISTICS HOLDINGS CORP. (FACTORY BUILDINGS and WAREHOUSES) 175Kson GLA Lepanto 85,000 Laguna Technopark 39,853 (+16,886 in June) Cavite Technopark 12,604 Tutuban Storage 1,098 Alviera Industrial Park 19,412 (FY2018: 137K sqm) €) the flats 2,198 Beds 1,335 Seats Amo
Slide 23: Growth is fueled by the completion of infrastructure projects
Growth is fueled by the completion of infrastructure projects Tollways Length Estimated Completion NAIA Expressway 12 km Completed peta Sys C5 South Link 8 km 2019 ss Ta Skyway Stage 3 19 km 2020 CALAX 45 km 2020 NLEX-SLEX Connector &km 2021 SEMME/C6 (Arca—QC) 33 km Ongoing ROW acquisition Cavitex S
Slide 24: AYALA ALABANG CEBU
AYALA CEBU ALABANG BUSINESS PARK ALVIERA LEPANTO LAGUNA CAVITE LAGUINDINGAN PAMPANGA INDUSTRIAL INDUSTRIAL TECHNOPARK TECHNOPARK TECHNOPARK TECHNOPARK PARK COMPLEX
Slide 25: Our strong balance sheet supports our growth plan
Our strong balance sheet supports our growth plan Balance Sheet (in Php Millions) Cash & Cash Equivalents Total Borrowings Stockholders’ Equity Current Ratio Debt-to-Equity Ratio Net Debt-to-Equity Ratio December 2018 27,558 187,099 221,221 1.26 0.85 0.72 25
Slide 26: 9M 2019 Results
9M 2019 Results 1. Net income grew 12% to P23.2B while total revenues increased 2% to P121.7B as of September 2019. Property development revenues reached P85.4B, supported by office, and commercial and industrial lot sales while commercial leasing revenues registered a 16% jump to P27.6B on improvin
Slide 27: Net income grew 12% to P23.2B
Net income grew 12% to P23.2B Income Statement . on: 9M 2018 Change % (in Php millions) Total Revenues 119,681 1,976 2% Real Estate* 117,452 2,198 2% Interest and Other Income 2,229 (222) -10% Equity in Net Earnings of Associates and JVs 608 96 16% Interest and Investment Income 625 (44) -7% Other I
Slide 28: Revenues increased 2% to P121.7B
Revenues increased 2% to P121.7B Revenue Breakdown 9M 2019 9M2018 Change % (in Php millions) Property Development 85,433 87,454 (2,022) -2% Residential 67,890 74,508 (6,618) — -9% Lower contribution of ALP and ALVEO projects Office for Sale 11,053 7,331 3,722 51% Completion progress and new bookings
Slide 29: Margins are within healthy levels
Margins are within healthy levels Margin Performance 9M 2019 9M 2018 Property Development (Gross Profit) Residential Horizontal 43% 43% Vertical 39% 37% Office for Sale 39% 35% Commercial and Industrial Lots 60% 44% Commercial Leasing (EBITDA) Shopping Centers 67% 65% Office 90% 91% Hotels and Resor
Slide 30: Sales reservations at P108.5B, P57.3B in launched projects
Sales reservations at P108.5B, P57.3B in launched projects Note: Sales Reservations include offices and commercial lots for sale under the residential brands Sales Reservations (in Php Billions) 0.5 38.2 328 315 36.4 335 341 36.2 GwALP 27.8 @Alveo mAvida Amaia mBellavita 3Q 2017 4Q 2017 1Q 2018 2Q 2
Slide 31: Sales to other nationalities at 16%, unbooked revenues of P151B
Sales to other nationalities at 16%, unbooked revenues of P151B Local Filipinos: 70% * P76.4B, up 2% Overseas Filipino: 14% + P14.8B, up 19% Other Nationalities: 16% * P17.4B, down 18% Unbooked Revenues + P151B, 1.3x 2018 Property Development Revenues of P120B Sales Breakdown __ y y y / / rseas _/ F
Slide 32: Key Launches: Estates
Key Launches: Estates INaAten Broadfield a Broadfield (October) Binan, Laguna | 120 ha. Located at the heart of South Luzon’s thriving residential, leisure, industrial and manufacturing center + 4km from Nuvali * Accessible from Governors Drive and Sta. Rosa Tagaytay Road. 40 ha residential | 80 ha
Slide 33: Key Launches: Estates
Key Launches: Estates The Junction Place (October) Quezon City | 11 ha. Strengthening ALI’s footprint in Quezon City, following the success of Vertis North and Cloverleaf Transit oriented development connecting Novaliches to the other key hubs in Quezon City and Manila Anchored by Amaia development
Slide 34: Key Launches: Residential Projects
Key Launches: Residential Projects WA AyalaLandPren Andacillo (September) The Courtyards Phase 4 (September) Nuvali, Laguna Vermosa, Cavite 188 units, P3.0B | 93% take-up 71 units, P1.5B | 40% take-up
Slide 35: Key Launches: Residential Projects
Key Launches: Residential Projects ALVEO Jeo" rTri rit) Patio Suites Tower 2 (September) Parkford Suites (September) Davao City, Davao Del Sur Legaspi Village, Makati CBD 222 units, P3.3B | 12% take-up 163 units, P8.2B | 19% take-up
Slide 36: Residential Projects
Residential Projects Key Launches Avida A Mi ‘August) ( 551 units, P2.2B | 55% take-up Avida Towers Vireo Tower 3 Arca South, Taguig City Serin East Tower 3 (July) 472 units, P2.4B | 12% take-up Tagaytay, Cavite 36
Slide 37: Key Launches: Office for Sale
Key Launches: Office for Sale Cerca Enterprise Plaza (September) Alabang, Muntinlupa 343 units, P8.3B | 7% take-up
Slide 38: Malls: GLA of 2.08M sqm, opened Ayala Malls Manila Bay
Malls: GLA of 2.08M sqm, opened Ayala Malls Manila Bay 161k GLA Newly Opened * Occupancy: o Average 89% o Stable Malls 94% * Same Mall Rental Growth: 10% Ayala Malls Manila Bay (September) Pasay MM, 161K GLA
Slide 39: 2.5 1.2 0.8 1.5 0.6 0.4 0.5 0.2
2.5 1.2 1 2 0.8 1.5 0.6 1 0.4 0.5 0.2 0 0
Slide 40: • o o 1.2 1.2 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2
• o o 1.2 1.2 1 1 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2 0 0
Slide 41: Hotels and Resorts: 3,618 rooms, opened new rooms
Hotels and Resorts: 3,618 rooms, opened 128 new rooms Newly Opened 9M 2019 Hotels Resorts Rooms Branded: 660 El Nido: 193 in operation Seda: 2,238 Lio B&Bs: 194 Circuit: 255 Sicogon B&Bs: 78 Occupancy Average 69% (-1 pt) 62% (-4 pt) Stable 78% (+1 pt) 62% (-5 pt) Vem Seda BGC Expansion | BGC Taguig,
Slide 42: Hotels and Resorts: Upcoming Openings
Hotels and Resorts: Upcoming Openings Upcoming Openings AyalaLand Ho: Total Rooms 61 ull 2013, 2014 2015 2016 2017 2018 9M 2019 AND Resory's Total rooms under construction: 2,463 rooms Seda BGC Expansion | BGC, remaining 110 of 342 rooms (4Q 2019) 42
Slide 43: Diversified net income mix
Diversified net income mix 9M 2019 Net Income contribution by location 1 New Estates/ i Established Estates: Growth Centers: 44% 56% vali 5% Vermosa Cebu 4% Alviera 5% Alabang 2% Other Vismin 4% / Malaysia (MCT) 1% Circuit Makati 2% 9M 2019 Net Income contribution by business line @ Development Recu
Slide 44: Well-managed cost of debt, stretched maturities and mix
Well-managed cost of debt, stretched maturities and mix strengthen our funding capability As of 30 Sep 2019 | Total Borrowings: Php201.0B: Short-term Php25.1B (12%), Long-term Php176.0 (88%) 7.9% [5 Long-term Debt Maturity (in Php Billions) 7.3% |= Short-term Debt Maturity (in Php Billions) —® Borro
Slide 45: CAPEX spend of P78.2B
CAPEX spend of P78.2B Capex Breakdown 9M 2019 (in Php billions) Actual Estate . . Developme Residential 33.1 119 Malls 10.0 Offices 2.6 Hotels and Resorts 44 Land Acquisition 13.2 Estate Development 8.8 Others 6.1 Total 78.2 seas P78.2B Historical Capex 2014 2015 2016 2017 2018 Hotels and 6%
Slide 46: Why invest in ALI?
Why invest in ALI? Makati Alabang Present WAyalaLand Strategy supported by growth drivers of the resilient Philippine economy Market leading platform of building large scale, mixed-use communities Consistently launching new growth centers nationwide Broad-based and complementary product Lines Proven