Ayala Land Inc. · PSE:ALI

Ayala Land — H1 2005 Earnings Presentation

21 slides from Ayala Land's earnings presentation, Aug 12, 2005

  1. Slide 1: Ayala Land, Inc. 1H 2005 Unaudited Results Analysts' Briefing

    Ayala Land, Inc. 1H 2005 Unaudited Results Analysts' Briefing August 12, 2005

  2. Slide 2: 1H 2005 Business Highlights

    1H 2005 Business Highlights ™ Development ¾ Booked sales of 1,600 lots/units (up 5%) valued at P5.2B (up 3%) ¾ Additional inventory: 1Q05: Sonera (143 lots); Verdana Homes Mamplasan housing (36 units) 2Q05: The Residences at Greenbelt - San Lorenzo Tower (383 units); One Aeropolis – Tower 3 (264 uni

  3. Slide 3: Income Statement

    Income Statement YTD-June 30 Increase/(Decrease) (in million Pesos) 2005 2004 Amount % REVENUES 11,762 8,052 3,710 46% COSTS AND EXPENSES 9,804 6,985 2,818 40% NET INCOME BEFORE MINORITY INT 1,958 1,067 891 84% NET EARNINGS APPLICABLE TO MIN INT 157 (41) 198 478% NET INCOME 1,802 1,109* 693 63% • Si

  4. Slide 4: Revenues

    Revenues YTD-June 30 Increase/(Decrease) (in million Pesos) 2005 2004 Amount % LEASING 3,009 2,586 422 16% Shopping Center & Office 2,217 1,851 366 20% Hotels 791 736 56 8% DEVELOPMENT 4,208 3,734 474 13% Land Sales 1,340 1,142 198 17% High-End Residential Unit Sales 966 1,102 (136) (12%) Mass Housi

  5. Slide 5: Revenue Breakdown

    Revenue Breakdown P11.8 billion Shopping Center & Offic e Interest & Other 19% Inc ome 28% Leasing Development Hotels 7% Services Others Land Sales Servic es 11% 11% High-End Resd'l Middle-Inc ome Mass Housing Units Housing 7% 8% 9% • Development business contributed 35% of revenues • Leasing busine

  6. Slide 6: Cost & Expenses

    Cost & Expenses YTD-June 30 Increase/(Decrease) (in million Pesos) 2005 2004 Amount % COSTS AND EXPENSES 9,804 6,985 2,818 40% Leasing 1,317 1,211 106 9% Development 3,455 3,099 356 11% Services 830 579 251 43% General and Admin. Exp. 1,146 970 176 18% Interest and Other Charges 2,706 564 2,142 380%

  7. Slide 7: NOI Margins

    NOI Margins 1H 2005 1H 2004 Leasing 56% 53% Development 18% 17% Services 35% 49% ™ Improved leasing margin due to higher hotel margin given increased room rates ¾ Shopping center & office margin steady ™ Increase in development margin due to: ¾ Absence of one-time cost adjustment at One Roxas Triang

  8. Slide 8: Shopping Centers & Office

    Shopping Centers & Office 1H 2005 1H 2004 % Change ™ Growth mainly due to retail operation P 2,217 M P 1,851 M 20% ¾ 14% increase in total retail sales due to additional GLA Shopping Centers Occupancy Rent „ Opening of Market! Market! and Ayala Center 96% 1,130 completion of SM Expansion Market! Mar

  9. Slide 9: Hotels

    Hotels ™ Higher room rates across all Company- 1H 2005 1H 2004 % Change owned hotels and serviced apartments P 791 M P 736 M 8% ™ Above market occupancy , room rates and REVPAR at Oakwood and Cebu Marriott 1H Occupancy 1H Room Rate 1H REVPAR 2005 2004 2005 2004 2005 2004 Oakwood 82% 83% 5,590 5,093

  10. Slide 10: Land Sales

    Land Sales 1H 2005 1H 2004 % Change ™ 302 residential lots booked in 1H05, P 1,340 M P 1,142 M 17% up 40% from 215 lots in 1H04 ¾ 147 lots booked in 2Q05 ™ Higher bookings at Greenfield Residential Launched Units Take-up Estates, Westgrove Heights and Westgrove Heights 1,647 92% Plantazionne Verdana

  11. Slide 11: High-end Residential Unit Sales

    High-end Residential Unit Sales ™ 32% decline in booked units (125 in 1H05 versus 185 in 1H04) due to full sell-out of Ferndale Homes and 1H 2005 1H 2004 % Change depleted inventory at One Legazpi P 966 M P 1,102 M -12% Park ¾ 85 units booked in 2Q05 Residential Launched Units Take-up Completion ™ D

  12. Slide 12: Mass Housing

    Mass Housing 1H 2005 1H 2004 % Change ™ Decline in revenues due to: P 844 M P 1,062 M -21% ¾ Adoption of a more conservative booking policy Launched Units Take-up Completion ¾ Booking of lower-priced St. Alexandra Estates 147 40% Riego de Dios units St. Gabriel Heights 515 54% (P500K/unit average) V

  13. Slide 13: Middle-Income Residentials

    Middle-Income Residentials ™ Higher unit bookings (304 in 1H 2005 1H 2004 % Change 1H05 vs. 274 in 1H04) due to P 1,059 M P 429 M 147% Serendra and Verdana Mamplasan ¾ 149 units booked in 2Q05 Launched Units Take-up Completion The Columns ™ Higher revenues from The Tower 1 284 99% 99% Columns due to

  14. Slide 14: Services

    Services 1H 2005 1H 2004 % Change Construction P 893 M P 656 M Property Management 38 M 33 M Waterworks 140 M 122 M Mgt. & Mktg. Fees 67 M 203M Financing 143 M 130 M Total P 1,282 M P 1,144 M 12% ™ Increase mainly due to 39% growth in construction revenues from third- party contracts ¾ Higher revenu

  15. Slide 15: Interest & Other Income

    Interest & Other Income 1H 2005 1H 2004 % Change P 3,264 M P 588 M 455% ™ Significant increase due to the gain on sale of AIVI preferred shares of P2.6B (before capital gains tax and transaction costs) ™ Significantly higher equity earnings of P131M, nearly three times last year’s level ¾ BLC net in

  16. Slide 16: Balance Sheet

    Balance Sheet June 30 December 31 Inc/(Dec) (in million Pesos) Amt. % 2005 2004 Cash and Cash Equivalents 7,389 6,360 1,029 16% Total Current Assets 24,290 20,859 3,431 16% Total Assets 73,975 74,029 (54) (0.1%) Total Current Liabilities 12,285 12,190 95 1% Total Debt 11,522 13,437 (1,915) (14%) Tot

  17. Slide 17: Cash Flow

    Cash Flow June 30 Increase/(Decrease) (in million Pesos) 2005 2004 Amount % Net Cash Provided by Operating Activities 4,426 732 3,694 505% Net Cash Used in Investing Activities (287) (1,903) (1,616) (85%) Net Cash Provided by (Used in) Financing Activities (3,110) 495 (3,605) (728%) NET INC. (DEC.)

  18. Slide 18: Projects and Capital Expenditures

    Projects and Capital Expenditures Consolidated 1H 2005 ™ Spent P3.1B or 23% of the P13.6B budget Residential Bldgs./ Townhouses 52% Residential 2005 Budget Subdivisions 18% ™ P13.6B budget up 68% over 2004 actual Commercial Centers/ Equity Office/etc. Investments Residential Bldgs./ 3% 30% Townhouse

  19. Slide 19: New Projects

    New Projects ™ Leasing (272,000 sqms GLA) ¾ North Triangle Commercial Center (200,000 sqm GLA) started development in June 2005; to be completed by 2H 2007 ¾ Market! Market! Phase 1B (34,000 sqm GLA) to be completed by 4Q05 ¾ PeopleSupport Center (15,800 sqms office; 1,300 sqms retail) completed in

  20. Slide 20: Special Cash Dividend

    Special Cash Dividend ™ Excess cash generated from sale of AIVI preferred shares allowed declaration of P1.5B or P0.14/share special cash dividend ¾ Declaration date: August 11, 2005 ¾ Record date: September 9, 2005 ¾ Payment date: October 3, 2005 ™ Total cash dividends for 2005 of P0.30/share (P0.2

  21. Slide 21: Ayala Land, Inc.

    Ma Ayala Land, Inc.

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