Ayala Land Inc. · PSE:ALI
Ayala Land — Jefferies-Regis Philippines Conference 2023
33 slides from Ayala Land's conference presentation, October 2023
Slide 1: Jefferies-Regis Philippines Conference Investor Deck
Jefferies-Regis Philippines Conference Investor Deck October 2023
Slide 2: Contents
Contents • Company Background • 1H23 Performance 2
Slide 3: Our Mission-Vision
Our Mission-Vision Enhancing land and enriching lives for more Filipinos Our Strategy We develop estates in key growth centers across the country to create sustainable communities and provide platforms for our residential, malls, offices, hotels, resorts, and logistics businesses to achieve market l
Slide 4: Ayala Land: 35 years of creating sustainable communities
Ayala Land: 35 years of creating sustainable communities 50 ESTATES ALI is incorporated Mixed-use Estates Launched (2010-2022) In 35 years Forbes Park and ALI is listed NUVALI is Makati CBD is launched • Broadfield developed • Arca South • Centrio • Cresendo • Altaraza • The Junction • Alviera • Gat
Slide 5: Diversified product offerings that capture opportunities across the real estate sector
Diversified product offerings that capture opportunities across the real estate sector and mitigate risks Tower One Glorietta is ALI launches is completed UP Technohub established Market! Market! at the 1st REIT is completed BGC opens Seda Hotel brand is ALI acquires established El Nido Resorts Trin
Slide 6: Ayala Land is the 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, publicly listed in July 1991 • 51.0% owned by Ayala Corporation Revenues and Total Assets (in Php Billions) Revenues Total Assets 783 721 745 714 669 574 536 142 166 169 125 106 127 96 2016 2
Slide 7: Solid nationwide presence with a land bank of 12,273 hectares
Solid nationwide presence with a land bank of 12,273 hectares Present in 57 growth centers across the Philippines Tuguegarao Baguio Pangasinan Gross Land Bank (in hectares) Tarlac Cabanatuan Pampanga SJDM Anvaya, Bataan Bulacan 12,192 12,483 12,498 12,273 Cavite Metro Manila 11,624 Laguna Rizal Luce
Slide 8: Well-diversified portfolio provides the advantage to capitalize on various opportunities
Well-diversified portfolio provides the advantage to capitalize on various opportunities and mitigate risks Estate Property Commercial Service Strategic Development Development Leasing Businesses Investments 50 Estates across the 5 Residential Brands Malls Construction Philippines Philippines • Ayal
Slide 9: A highly trusted Brand
A highly trusted Brand #1 #2 Mixed-Use Estates, Malls GLA size and location #1 #1 Residential Offices GLA Development #1 #3 Industrial Estate Hotel Development Rooms 9
Slide 10: Government remains optimistic of long-term growth despite near-term macroeconomic headwinds
Government remains optimistic of long-term growth despite near-term macroeconomic headwinds FY 2023 GDP Forecast Fitch 5.3% S&P 5.8% World Bank 6.0% ADB 6.0% Moody’s 6.1% IMF 6.2% BSP 6.0% - 7.0% 1H 2023 5.3% FY 2022 7.6% 10
Slide 11: Long-term growth drivers are in place to support our various business segments
Long-term growth drivers are in place to support our various business segments Strong Household Consumption (As a % to GDP) o 73.1% as of FY 2022 Business Monitor International (BMI ▪ 2019 – 72.4% Research) of Fitch Solutions projects PH GDP to reach US$2.3 trillion by 2050, 18th ▪ 2020 – 73.6% larg
Slide 12: A young population driving housing demand
A young population driving housing demand • The PH (115M) has the second largest population in the ASEAN, which grew at a 1.5% CAGR in 2015-2020; youngest among peers with a median age of 24 years. • By FY30E, the population is expected to grow to 125M, with median age still in the 25–29-year age gr
Slide 13: A growing middle class, favorable demographics and a young population will support growth
A growing middle class, favorable demographics and a young population will support growth Income Classes based on 25M Households Size Range Condominium Lots/ H&L Segment (in sqm) Price Price 2015 2018 Luxury Lots: 450-1,400 P31 – 246.5M P24.8 - 77M Condos: 62-493 (US$554k-4.4M) (US$442k – A-AAA (2%)
Slide 14: Our diversified portfolio will drive long-term shareholder value
Our diversified portfolio will drive long-term shareholder value 12K+ HA OF LANDBANK 50 32 INTEGRATED 2 TOURISM ESTATES 5 COMMERCIAL ESTATES MIXED-USE ESTATES ESTATES 5 RESIDENTIAL ESTATES 6 INDUSTRIAL ESTATES BALANCED AND COMPLEMENTARY BUSINESSES: Property Development, Commercial Leasing, Services
Slide 15: ESG practices are embedded in our business model
ESG practices are embedded in our business model AYALA LAND’S FOUR SUSTAINABILITY FOCUS AREAS 1 Site 2 Pedestrian 3 Resource 4 Local Economic Resilience Mobility, Transit Efficiency Development Connectivity Environmental Social Governance • Reduced and offset 85% of Scopes • Supported 1600 Social En
Slide 16: Solid performance in 2022
Solid performance in 2022 NET INCOME Property 2020 2021 2022 Development +52% Revenues (Php B) Growth 66.6 75.9 +14% 81.2 +7% 20 +40% 18.6 Residential Sales > Launches 12.2 18 16 14 (Php B) 2020 2021 2022 12 10 8.7 Launched Projects (Php B) 10.6 75.3 91.4 8 Sales Reservations (Php B) 81.9 92.2 104.9
Slide 17: Contents
Contents • Company Background • 1H23 Performance 17
Slide 18: Ayala Land 1H 2023 Performance Highlights
Ayala Land 1H 2023 Performance Highlights TOTAL REVENUES NET INCOME CAPEX NET GEARING 1H P66.0B +24% 1H P11.4B +41% P38.7B 0.75:1 2Q vs 1Q23 +14% 2Q vs 1Q23 +52% Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING 1H P38.7B +13% 1H P20.2B +39% 38.7 2Q vs 1Q23 +27% 34.1 2Q vs 1Q23 (-) 20.2 SALES
Slide 19: Total revenues of P66.0B +24%; net income of P11.4B +41%
Total revenues of P66.0B +24%; net income of P11.4B +41% INCOME STATEMENT 1H 2023 1H 2022 Change % (in Php millions) Total Revenues 66,007 53,338 12,670 24% GAE RATIO Real Estate 64,520 52,317 12,203 23% 6.3% Interest and Other Income 1,488 1,020 467 46% 6.2% in 1H 2022 Equity in Net Earnings of Ass
Slide 20: Residential and commercial leasing fueled topline growth
Residential and commercial leasing fueled topline growth REVENUE BREAKDOWN 1H 2023 1H 2022 Change % (in Php millions) Property Development 38,731 34,141 4,590 13% Residential 31,249 27,355 3,894 14% Higher completion and bookings Office for Sale 2,130 1,475 655 44% Sales from One Vertis Plaza Comm’l
Slide 21: Higher margins across the business lines
Higher margins across the business lines MARGIN PERFORMANCE 1H 2023 1H 2022 Property Development (Gross Profit) Residential Horizontal 48% 43% More high-margin residential lots sold Vertical 37% 36% - Office for Sale 43% 41% - Commercial and Industrial Lots 52% 73% Lot sales mix Commercial Leasing (
Slide 22: 1H23 sales of P58.3B (+18%); 2Q23 at P30.6B (+10% vs 1Q23)
1H23 sales of P58.3B (+18%); 2Q23 at P30.6B (+10% vs 1Q23) SALES RESERVATIONS (in Php Billions) 30.6 PROPERTY DEVELOPMENT 27.7 24.1 25.2 28.0 27.6 LAUNCHES ALP 19.7 22.1 6 projects (P31.9B) 21.8 Alveo Avida Product Breakdown Amaia Horizontal: 27% Bellavita Vertical: 73% 2Q 2021 3Q 2021 4Q 2021 1Q 20
Slide 23: Malls: Higher occupancy and rents boosted revenues
Malls: Higher occupancy and rents boosted revenues Upcoming Openings TOTAL GLA: 2.1M sqm ONE AYALA AVERAGE OCCUPANCY: 83% RETAIL (4Q 2023) LEASE OUT RATE: 89% Makati CBD 44K GLA PIPELINE: 243K AYALA MALLS VERMOSA (4Q 2023) Imus, Cavite Ph1 5K GLA Total 43K GLA 23
Slide 24: Offices: Steady growth due to higher tenancy and rents
Offices: Steady growth due to higher tenancy and rents Upcoming Openings TOTAL GLA: 1.4M sqm ONE AYALA HQ TOWER (2024) Makati CBD, 12K GLA OCCUPANCY: 89% PIPELINE: 215K Vacant 11% 1H2023 Co-Working Occupancy 4% POGO Mix 2% HQ BPO 11% 72% 24
Slide 25: Hotels-Resorts: Travel resurgence hiked occupancy and rates
Hotels-Resorts: Travel resurgence hiked occupancy and rates Newly Opened 1H 2023 Hotels Resorts SEDA NUVALI (2Q 2023) TOTAL Branded: 660 El Nido: 193 Nuvali, Laguna ROOMS Seda: 2,892 Lio B&Bs: 50 88 additional 4,126* Circuit: 255 Sicogon B&Bs: 76 rooms AVERAGE OCCUPANCY 68% (+15 pt) 45% (+19 pt) PIP
Slide 26: Ancillary formats strengthen the leasing portfolio
Ancillary formats strengthen the leasing portfolio (FACTORY BUILDINGS and WAREHOUSES) 309Ksqm GLA 2,032 Beds 1,411 Seats ALogis Calamba – 93,794 Amorsolo 196 rooms, 728 beds 6,473 sqm of GLA Laguna Technopark - 102,458 BGC 5th Avenue 375 rooms, 1,244 beds Cavite Technopark – 17,811 Sacred Heart 32 r
Slide 27: Capex spend of P38.7B
Capex spend of P38.7B CAPEX BREAKDOWN 1H 2023 (in Php billions) Actual Residential 21.3 Others Malls 2.0 Estate 3% Offices 1.4 Development Hotels and Resorts 0.8 14% Land Acquisition 6.7 Estate Development 5.3 Others 1.2 Land Total 38.7 Acquisition 17% P38.7B Residential 55% HISTORICAL CAPEX Hotels
Slide 28: Well-managed debt with 95% contracted long-term, 86% fixed
Well-managed debt with 95% contracted long-term, 86% fixed; average borrowing cost of 4.9%, maturity of 4.6 years Total Borrowings: Php244.7B: Short-term Php12.8 (5%), Long-term Php231.9 (95%), Average Maturity 4.6 years Long-term Debt Maturity (in Php Billions) Short-term Debt Maturity (in Php Bill
Slide 29: A strong balance sheet with a net gearing ratio of 0.75:1
A strong balance sheet with a net gearing ratio of 0.75:1 Balance Sheet June December (in Php Millions) 2023 2022 Cash & Cash Equivalents 14,627 12,508 Total Borrowings 244,687 236,039 Stockholders’ Equity 307,537 293,665 Current Ratio 1.94 1.78 Debt-to-Equity Ratio 0.80 0.80 Net Debt-to-Equity Rati
Slide 30: 2023 Budget: CAPEX of P85B; Launches worth P100B
2023 Budget: CAPEX of P85B; Launches worth P100B Capex Budget Residential Launch Plan Others By Brand % 7% ALP 36% Estate Alveo 28% Development Avida 17% 16% Amaia 17% Bellavita 2% Residential 39% By Location % P85B Metro Manila Central Luzon 40% 7% South Luzon 45% Land Visayas 1% Acquisition Mindan
Slide 31: With a GDP growth target of 6-7% in 2023, we will seize opportunities
With a GDP growth target of 6-7% in 2023, we will seize opportunities to propel our continuing recovery ESTATE DEVELOPMENT PROPERTY DEVELOPMENT • Launch more estates in 2023 • P100B launch budget to serve increasing demand from renewed • Prime established, emerging and new estates confidence MALLS O
Slide 32: In Summary
In Summary 1. Ayala Land is the largest and most established property developer in the Philippines, a constituent of the PSE and a key participant in ASEAN property. 2. Despite macroeconomic headwinds, economic growth prospects and long-term growth drivers remain intact. 3. With a highly-diversified
Slide 33: Investor Relations
Investor Relations Website ir.ayalaland.com.ph Email investorrelations@ayalaland.com.ph Scan the QR code to join the IR mailing list
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