Arthaland Corporation · PSE:ALCO
Arthaland — Investor Presentation (May 2019)
68 slides from Arthaland's investor presentation, May 9, 2019
Slide 1: Institutional Investors' Presentation
INSTITUTIONAL INVESTORS’ PRESENTATION 09 May 2019 | ArthaLand Century Pacific Tower
Slide 2: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document is highly confidential and being made available solely for information and may not be retained by you nor may this document, o
Slide 3: Agenda
AGENDA OUR COMPANY OUR PROJECTS FINANCIAL HIGHLIGHTS THE OFFER
Slide 4: Our Name
OUR NAME
Slide 5: Meaning of Artha
A Sanskrit word that means purpose knowledge, significance, and wealth. Wealth not just in material assets but more importantly in the lasting intangibles such as comfort, health, and happiness.
Slide 6: Green Developer
is the foremost GREEN DEVELOPER in the Philippines Recognized by both local and global organizations for its superior design, high quality, focus on sustainability, and innovation.
Slide 7: ArthaLand Corporation (ALCO)
ARTHALAND CORPORATION (ALCO) is a publicly-listed company in the Philippine Stock Exchange (PSE) and a pioneer developer for premium green and sustainable projects.
Slide 8: Vision and mission
We will be the preferred property We will continue to be a world-class Company for sustainable developments, and pioneering property company. ensuring that the future will be better for our customers because of We build boutique, sustainable, how we do things today. and exceptional developments that
Slide 9: Major Shareholders
MAJOR SHAREHOLDERS Established for over 40 years, the Century Century Pacific Group (CPG) Pacific Group spans food manufacturing, Holdings, Inc. is the investment real estate development, and vehicle of the Po Family and is restaurant operations. an affiliate of Century Pacific • Century Tuna • Blue
Slide 10: Major Shareholders
MAJOR SHAREHOLDERS A part of the AO Capital Partners Group Century Pacific Group (CPG) which is a financial advisor & arranger for Holdings, Inc. is the investment over 80 major transactions in the Asia-Pacific vehicle of the Po Family and is Region including: an affiliate of Century Pacific Food, I
Slide 11: Our Shareholders
OUR SHAREHOLDERS MAJOR SHAREHOLDERS CPG Holdings, Inc. (40%) is Century Pacific Group American Orient (AO) the investment vehicle of the (CPG) Holdings, Inc. Capital Holdings 1, Inc. 40.28% 26.01% Po Family and is an affiliate of Century Pacific Food, Inc. Public Others 25.86% 7.83% AO Capital Holdi
Slide 12: Board of Directors and Professional Management Team
BOARD OF DIRECTORS ERNEST K. CUYEGKENG Chairman JAIME C. GONZÁLEZ Vice Chairman RICARDO T. PO Vice Chairman LEONARDO T. PO Treasurer ENRIQUE Y. GONZÁLEZ Director CHRISTOPHER T. PO Director EMMANUEL A. RAPADAS Director (Independent) ANDRES B. STA.MARIA Director (Independent) HANS B. SICAT Director (I
Slide 13: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS Our senior management Established track record in residential team carries a vast wealth and office segments with the success of cumulative experience of Arya Residences and the ArthaLand Century Pacific Tower ARTHALAND is a world-class boutique real estate developer CONDUC
Slide 14: Green building certification process
GREEN BUILDING COUNCIL CERTIFICATION IS A COMPLEX TECHNICAL PROCESS THAT TAKES… CAREFUL PLANNING • FIRM COMMITMENT • ADDITIONAL INVESTMENT
Slide 15: Pioneering on Sustainability
PIONEERING ON GREEN DEVELOPMENTS ARE SAID TO SUSTAINABILITY Lower operating costs due to energy savings, resource efficiency, and lifespan costs HEART at the Increase property value, higher rental income, and improve occupancy rates of each ArthaLand project Be the ideal and preferred choice is our
Slide 16: Awards in 2018
OUR LOCAL & INTERNATIONAL AWARDS IN 2018 for excellence in the real estate field— maintaining the company’s commitment to being the best-in-class developer in the Philippines.
Slide 17: Our Projects
OUR PROJECTS 550,000 Cebu Residential sq.m. Project, Makati Residential Project 2 06 and Other Projects + 32,000 2020 - 2024 sq.m. Makati CBD On-track to grow our 05 Residential Project development portfolio by + 139,000 2020 - 2024 5 TIMES sq.m. 04 Sevina Park + 60,000 2019 - 2029 sq.m. 03 Savya Fi
Slide 18: Arya Residences: first dual-certified residential building
THE FIRST & ONLY RESIDENTIAL BUILDING IN THE PHILIPPINES TO RECEIVE DUAL-CERTIFICATION IN LEED & BERDE This two-tower luxury green condominium was finished on-schedule and has become one of the most desirable residential addresses in BGC.
Slide 19: Development Details
DEVELOPMENT DETAILS SIZE GFA: 76,000 sq.m. NSA: 68,000 sq.m. LOCATION McKinley Parkway, BGC DEVELOPMENT TYPE High-end Residential STATUS 100% Completed 100% Sold CERTIFICATIONS First and only LEED Gold in the Phils. 5-Star BERDE PROJECT TEAM Design Architect - Crone Partners Architect of Record - Ai
Slide 20: Arya awards
WINNER BEST CONDO DEVELOPMENT (PHILIPPINES) SOUTH EAST ASIA PROPERTY AWARDS 2014 WINNER BEST RESIDENTIAL HIGH-RISE DEVELOPMENT (PHILIPPINES) ASIA PACIFIC PROPERTY AWARDS 2014 WINNER RESIDENTIAL ARCHITECTURAL DESIGN PHILIPPINES PROPERTY AWARDS 2014 ARYA IS A MULTI- WINNER RESIDENTIAL INTERIOR DESIGN
Slide 21: Multi-awarded premium grade office in BGC
an internationally MULTI-AWARDED PREMIUM GRADE OFFICE IN BGC Among the most highly sought-after global business addresses in BGC, ACPT is both a LEED Platinum & BERDE 5-Star certified building, the highest categories in both green building rating standards.
Slide 22: Development Details
DEVELOPMENT DETAILS SIZE GFA: 34,000 sq.m. NLA: 32,000 sq.m. LOCATION 5th Avenue, BGC DEVELOPMENT TYPE Premium Office STATUS 100% Completed 90% Leased Out CERTIFICATIONS LEED Platinum 5-Star BERDE PROJECT TEAM Design Architect - SOM New York Architect of Record - GF & Partners General Contractor - M
Slide 23: Inauguration Ceremony
INAUGURATION CEREMONY MARCH 2018
Slide 24: ArthaLand Relocates to Its New Headquarters
ARTHALAND RELOCATES TO ITS NEW HEADQUARTERS NOVEMBER 2018
Slide 25: ACPT awards
5-STAR WINNER BEST OFFICE ARCHITECTURAL DESIGN (ASIA) ASIA PROPERTY AWARDS 2017 WINNER BEST GREEN DEVELOPMENT PHILIPPINES PROPERTY AWARDS 2017 WINNER OFFICE ARCHITECTURAL DESIGN PHILIPPINES PROPERTY AWARDS 2017 HIGHLY COMMENDED OFFICE DEVELOPMENT ACPT IS A MULTI- PHILIPPINES PROPERTY AWARDS 2017 WIN
Slide 26: Best & Biggest
BEST & BIGGEST SINGLE TOWER BUSINESS ECOSYSTEM IN THE PHILIPPINES ArthaLand is currently in the midst of constructing at the gateway of the Cebu I.T. Park the single largest green office building in the country — the Cebu Exchange.
Slide 27: Development Details
DEVELOPMENT DETAILS SIZE GFA: 109,000 sq.m. NSA: 89,000 sq.m. LOCATION Salinas Drive, Cebu DEVELOPMENT TYPE Grade A Office STATUS AS OF APRIL 30 Top off of Phase 1 completed Over-all completion – 32% Php5.8b reservation sales (49%) CERTIFICATIONS Pre-registered with LEED (aiming for Gold) Pre-regist
Slide 28: Cebu Exchange building features
Large Floor Plates up to 5,000 sq.m. Maximized Column Spans for Efficient Floor Layouts HIGH ZONE 33rd - 39th Floor Sky Park, Penthouse Flexible Unit Cut-Ups 4 meter floor-to-floor height Provisioned for Variable Refrigerant Flow MID ZONE or VRF Air-Conditioning Systems 12th – 32nd Floor Provisions
Slide 29: Phase 1 Top-Off
PHASE 1 TOP-OFF APRIL 2019
Slide 30: Best Office awards
5-STAR WINNER BEST OFFICE DEVELOPMENT (PHILIPPINES) HAS BEEN RECOGNIZED AS THE ASIA PROPERTY AWARDS 2018 WINNER BEST OFFICE DEVELOPMENT (CEBU) BEST OFFICE PHILIPPINES PROPERTY AWARDS 2018 HIGHLY COMMENDED BPO OFFICE DEVELOPMENT PHILIPPINES PROPERTY AWARDS 2018 DEVELOPMENT HIGHLY COMMENDED BEST OFFIC
Slide 31: World-Class Comfort
WORLD-CLASS signature office experience in ARCA SOUTH hinged on COMFORT & EFFICIENCY Offering various purposeful amenities, leading-edge sustainable office building features, and exemplary design. It launched in January 2019, and will stand as a one-of-a-kind global address created to the highest st
Slide 32: Development Details
DEVELOPMENT DETAILS SIZE GFA: 60,000 sq.m. NSA: 49,000 sq.m. LOCATION Arca South, Taguig City DEVELOPMENT TYPE Grade A Office STATUS as of April 30 Excavation in process T1: Php2.1b reservation sales (42%) T2: Pre-committed to investor CERTIFICATIONS Pre-registered with LEED (aiming for Gold) Pre-re
Slide 33: Upcoming Site Access
UPCOMING SITE ACCESS • SOUTHEAST METRO MANILA EXPRESSWAY • SKYWAY EXTENSION (under construction) • C5 ACCESS ROAD INTERCHANGE • METRO MANILA SUBWAY STATION • TAGUIG INTERGRATED TERMINAL EXCHANGE (2018 groundbreaking – under construction)
Slide 34: Groundbreaking Ceremony
GROUNDBREAKING CEREMONY JANUARY 2019
Slide 35: First & Only LEED Neighborhood Development
THE FIRST & ONLY to aim for LEED NEIGHBORHOOD DEVELOPMENT AND LEED HOME CERTIFICATION IN THE PHILIPPINES ArthaLand’s first low-density, mixed-use community in Laguna Masterplanned by Boston-based global design firm—Sasaki Designer Villas by L.V.Locsin Partners
Slide 36: Development Details
DEVELOPMENT DETAILS SIZE GFA: 139,000 sq.m. NSA: 109,000 sq.m. LOCATION Binan, Laguna DEVELOPMENT TYPE Mixed-use community STATUS Courtyard Hall completed and leased out Sevina Park Villas for launch in Q2 2019 CERTIFICATIONS LEED Neighborhood Development and LEED Home Certification PROJECT TEAM Mas
Slide 37: Commercial Future Development
Commercial FUTURE DEVELOPMENT
Slide 38: Distance and Travel Time
Distance in KM / Travel Time* NAIA 44 km | 60 mins Makati 41 km | 45 mins BGC 41 km | 45 mins ArthaLand Century Pacific Tower Atya Residences ARCA South 36 km | 40 mins Savya Financial Center Alabang 25 km | 30 mins NUVALI 5 km| 10 mins Tagaytay 22 km | 60 mins NUVALI MAIN ROAD
Slide 39: Access
Access BB Via ETON exit 2 zs zg 52 23 =
Slide 40: Access
Access WB Via ETON Exit OH Via Sta. Rosa Exit ray 3s x2 Sz 2 =
Slide 41: Access
Access WB Via ETON Exit I Via Sta. Rosa Exit BB via Mamplasan Exit ray 3s x2 Sz 2 =
Slide 42: Future Infrastructure
ys * oe Future Infrastructure WB cALax/ Cavite-Laguna Expressway | 47 km CAVITEX in Kawit, Cavite > SLEX Mamplasan, Laguna Completion: 2022 TERCHANG! oh SILANG EASTINIER STA SOSATAGAYTAY ROAD INTERCHAN NUVALI MAIN ROAD
Slide 43: Future Infrastructure
Future Infrastructure” I CALAX / Cavite-Laguna Expressway | 47 km CAVITEX in Kawit, Cavite > SLEX Mamplasan, Laguna Completion: 2022 HB North-South Railway | 69.5 km Solis, Tondo > Los Bajios, Laguna Completion: 2022 SITE AMATION ALAMEAI SLANG EAST INTE: STA SOSATAGA AD INTERCHAN NUVALI MAIN ROAD
Slide 44: Vicinity
Vicinity Within 5 km/ 10 km radius ray 2S x2 Sz rd = *Source: Colliers High-end Residential and Office Market Stud
Slide 45: Vicinity
Vicinity Residential {> House & Lot *Source: Colliers High-end Residential and Office Market Stud
Slide 46: Vicinity
Vicinity Residential House & Lot 1) Lot
Slide 47: Vicinity
Vicinity Residential BB schools 2 zs zg 52 23 =
Slide 48: Vicinity
Vicinity Hl Residential DD schools BB offices NUVALI 2 g 2 z = =
Slide 49: Vicinity
Vicinity | Residential Schools BB Offices | Commercial Centers ray 2S x2 Sz rd =
Slide 50: Vicinity
Vicinity | Residential Schools ia Offices Commercial Centers BB Hospitals ey NUVALI MAIN ROAD THE MEDICAL CITY
Slide 51: Artist's conceptual rendering
Artist’s conceptual rendering and would be different from actual development
Slide 52: Artist's conceptual rendering
Artist’s conceptual rendering and would be different from actual development
Slide 53: Completion of the Courtyard Hall
COMPLETION OF THE COURTYARD HALL 3Q 2018
Slide 54: Makati CBD Residential Project
Makati CBD Residential Project • Located along Arnaiz Avenue in Legazpi Village, Makati City Paseo de Roxas • Land Area is ~2,018 sq.m. • A high-rise residential condominium catering to the high-end market SITE
Slide 55: Development Details
DEVELOPMENT DETAILS SIZE GFA: 32,000 sq.m. NSA: 25,000 sq.m. LOCATION Antonio Arnaiz Avenue, Makati City MAKATI CBD DEVELOPMENT TYPE High-end Luxury RESIDENTIAL PROJECT LEGAZPI VILLAGE, Residential Condominium MAKATI CITY STATUS Property acquisition completed Project planning initiated CERTIFICATION
Slide 56: Use of Proceeds
USE OF PROCEEDS Disbursement update on Series B Preferred Shares Actual Net Actual Purpose Balance Proceeds Disbursement Capital Expenditure – Savya 822 822 - Capital Expenditure – Makati CBD Residential 372 360 11 Capital Expenditure – Sevina 332 179 153 Capital Expenditure– Cebu Exchange 54 54 - P
Slide 57: Statement of Income
STATEMENT OF INCOME In Php Millions 2017 2018 • 2018 real estate sales was Arya (retail), driven by Cebu Exchange Contributing Projects Arya/ACPT ACPT, Cebu Exchange • ACPT leasing operations Real estate sales 434 993 commenced in 2018. 90% of NLA covered by lease Leasing operations 23 132 contracts
Slide 58: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION In Php Millions 2017 2018 Cash and Cash Equivalents* 1,110 482 • Interest of ALCO loans are fixed and matches its project cash Total Assets 11,247 12,336 flows Bank Debt 2,528 4,082 • All-peso financing to match all- Net Total Debt 1,418 3,600 peso revenues and constr
Slide 59: Our Projects
OUR PROJECTS 550,000 Cebu Residential sq.m. Project, Makati Residential Project 2 06 and Other Projects + 32,000 2020 - 2024 sq.m. Makati CBD On-track to grow our 05 Residential Project development portfolio by + 139,000 2020 - 2024 5 TIMES sq.m. 04 Sevina Park + 60,000 2019 - 2029 sq.m. 03 Savya Fi
Slide 60: Future Projects
FUTURE PROJECTS
Slide 61: Cebu Residential Project
DEVELOPMENT DETAILS SIZE GFA: 27,000 sq.m. CEBU NSA: 21,000 sq.m. LOCATION Cebu City RESIDENTIAL DEVELOPMENT TYPE Upscale Residential Condominium PROJECT STATUS Finalizing negotiations with landowner CERTIFICATIONS Aiming for dual certification with LEED and BERDE
Slide 62: Makati Residential Project 2
DEVELOPMENT DETAILS SIZE GFA: 29,000 sq.m. NSA: 23,000 sq.m. MAKATI LOCATION Makati City RESIDENTIAL DEVELOPMENT TYPE STATUS Upscale Residential Condominium Negotiations for property acquisition in PROJECT 2 process CERTIFICATIONS Aiming for dual certification with LEED and BERDE
Slide 63: Use of Proceeds
USE OF PROCEEDS Series C Preferred Shares Purpose Est. Net Proceeds Capital Expenditure- Cebu Residential Project 300 Capital Expenditure- Makati Residential Project 2 530 General Corporate Purposes 154
Slide 64: Summary Terms and Conditions
SUMMARY TERMS AND CONDITIONS Issuer ArthaLand Corporation (“ALCO” or the “Company”) Cumulative, non voting, non participating, non convertible, redeemable Instrument Peso denominated Preferred Shares with par value of P1.00 (the “Series C Preferred Shares”) Issue Size P1.0 billion consisting of 10.0
Slide 65: Summary Terms and Conditions
SUMMARY TERMS AND CONDITIONS ORIGINAL Fixed rate of [•]% per annum, equivalent to the sum of the 3-day average of the BVAL DIVIDEND RATE on Pricing Date, the dividend rate setting date, and a spread of 175 to 250 bps per AND ORIGINAL annum (7.46% to 8.21% as of May 8, 2019) SPREAD Beginning on the I
Slide 66: Parties to the Offer
PARTIES TO THE OFFER ISSUER ArthaLand Corporation ISSUE MANAGER, SOLE BOOKRUNNER, BDO Capital & Investment Corporation AND SOLE UNDERWRITER DEPOSITORY AGENT Philippine Depository and Trust Corporation RECEIVING AGENT, STOCK TRANSFER AGENT, BDO Unibank, Inc. – Trust and Investments Group AND PAYING A
Slide 67: Indicative Timetable
INDICATIVE TIMETABLE 24 APRIL 2019 SEC Filing 30 APRIL 2019 Start of Institutional Bookbuilding 03 JUNE 2019 (12:00 NN) Deadline for the submission of Commitment Letter 03 JUNE 2019 Original Dividend Setting Rate 04 JUNE 2019 Allocation advise 07-14 JUNE 2019 Public Offer Period 21 JUNE 2019 Issue a
Slide 68: Thank You
THANK YOU w | AnBino | L