Ayala Land Inc. · PSE:ALI
Ayala Land — Macquarie ASEAN Conference SNG 2022
32 slides from Ayala Land's conference presentation, Aug 23, 2022
Slide 1: 1H22 Investor Deck
1H22 Investor Deck Macquarie ASEAN Conference SNG 22-23 Aug 2022
Slide 2: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 3: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 4: Peaceful elections completed; the new administration received an unprecedented mandate
Peaceful elections completed; the new administration received an unprecedented mandate from the majority Vice President DOF Sara Duterte Ben Diokno Senate President BSP Miguel Zubiri Felipe Medalla Congress NEDA Martin Romualdez Arsenio Balisacan
Slide 5: Marcos Administration's 8-point Agenda
Marcos Administration’s 8-point Agenda PROTECT PURCHASING POWER ENSURE SOUND MACROECONOMIC 1 AND MITIGATE SOCIOECONOMIC 3 FUNDAMENTALS SCARRING A. ENHANCE BUREAUCRATIC EFFICIENCY AND SOUND FISCAL MANAGEMENT B. ENSURE A RESILIENT AND INNOVATIVE FINANCIAL SECTOR 5 CREATE QUALITY JOBS B. IMPROVE INFRAS
Slide 6: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 7: Improving health conditions and economic drivers provide a smoother path to recovery
Improving health conditions and economic drivers provide a smoother path to recovery COVID 20K PEAK DAILY CASES 150-200 PH POPULATION: 62% FULLY VACCINATED 7
Slide 8: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 9: Ayala Land 1H 2022 Performance Highlights
Ayala Land 1H 2022 Performance Highlights TOTAL REVENUES NET INCOME CAPEX NET GEARING 1H P53.3B +9% 1H P8.1B +34% P30.2B 0.77:1 2Q P28.7B +18% 2Q P4.9B +51% +17% vs 1Q22 +55% vs 1Q22 Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING 1H P34.1B () 1H P14.6B +54% 2Q P18.3B +2% 2Q P8.1B +87% MALL
Slide 10: Strong retail, tourism recovery, and solid demand for commercial lots boosted revenues
Strong retail, tourism recovery, and solid demand for commercial lots boosted revenues REVENUE BREAKDOWN 1H 2022 1H 2021 Change % (in Php millions) Property Development 34,141 34,107 34 - Residential 27,355 30,050 (2,694) -9% Longer booking period from stretch payment terms and an increase in cancel
Slide 11: 1H22 sales reservations of P49.3B (+2%); 2Q22 at P25.2B (+28%)
1H22 sales reservations of P49.3B (+2%); 2Q22 at P25.2 (+28%) SALES TAKEUP (in Php Billions) SALES 28.5 RESERVATIONS 24.1 25.2 22.5 21.1 21.8 22.1 P8.2B monthly average 19.7 13.6 LAUNCHES 12 projects (P34.9B) Horizontal: 43% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Ver
Slide 12: Malls: Foot traffic at 87% in 2Q22, 93% in June
Malls: Foot traffic at 87% in 2Q22, 93% in June; Tenant Sales 82% in 2Q22, 89% in June vs pre-COVID TOTAL GLA: 2.1M sqm Newly Completed AVERAGE OCCUPANCY: 79% AVERAGE LEASE OUT: 85% PIPELINE: 286K KEY DATA FY20 FY21 1Q22 2Q22 Jun22 Operating 60% 70% 75% 76% 79% GLA % Pre-COVID Foot Traffic 34% 38% 5
Slide 13: Offices: Stable BPO and HQ Tenancy
Offices: Stable BPO and HQ Tenancy Newly Completed TOTAL GLA: 1.36M sqm AVERAGE OCCUPANCY: 84% PIPELINE: 157K 1H 2022 GLA Occupancy Mix Vacant Others 14% POGO 1% 2% Co- Working 3% HQ BPO 10% 68% ONE AYALA EAST TOWER (March 2022) Makati CBD, 40K GLA 87% leased | PEZA-accredited 13
Slide 14: Hotels-Resorts: Strong recovery of domestic tourism drove improved operations
Hotels-Resorts: Strong recovery of domestic tourism drove improved operations 1H 2022 Hotels Resorts Upcoming Opening TOTAL Branded: 660 El Nido: 193 ROOMS Seda: 2,712 Lio B&Bs: 132 4,028 Circuit: 255 Sicogon B&Bs: 76 AVERAGE OCCUPANCY 53% (+8 pt) 27% (+11 pt) PIPELINE: 1,552 rooms HATCH HOSTEL (3Q
Slide 15: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 16: 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 Stable BPO revenues (As a % to GDP) ▪ 2021 Revenues – US$29.5B o 71.6% as of 1H 2022 +10.6%; 1.44M total head count ▪ 2019 – 72.4% ▪ Target is to grow to 2.5M jobs ▪ 2020 – 73.6% in 6 years ▪
Slide 17: 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 2015 2018 A-AAA (1%) A-AAA (1%) P120-250K/mo By 2030, the Philippines' middle- B (6%) B (7%) income P50-120K/mo population will grow by 37.5 million – making it C/C- (40%)
Slide 18: 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 2022 GDP Forecast New Prior World Bank 5.7% 5.9% ADB 6.0% 6.0% S&P 6.5% 6.5% Moodys 7.2% 6.1% Fitch 7.5% 8.1% BSP 6.5% - 7.5% 7.0% - 8.0% 18
Slide 19: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 20: A strong balance sheet with a net gearing ratio of 0.77:1
A strong balance sheet with a net gearing ratio of 0.77:1 Balance Sheet June December (in Php Millions) 2022 2021 Cash & Cash Equivalents 15,506 14,998 Total Borrowings 231,211 223,097 Stockholders’ Equity 281,475 270,701 Current Ratio 1.58 1.58 Debt-to-Equity Ratio 0.82 0.82 Net Debt-to-Equity Rati
Slide 21: Ayala Land Estates: Solid platform for renewed growth
Ayala Land Estates: Solid platform for renewed growth 12,498 HA OF LANDBANK 47 30 INTEGRATED 2 TOURISM ESTATES 5 COMMERCIAL ESTATES MIXED-USE ESTATES ESTATES 5 RESIDENTIAL ESTATES 5 INDUSTRIAL ESTATES BALANCED AND COMPLEMENTARY BUSINESSES: Property Development, Commercial Leasing, Services and other
Slide 22: ESG practices are embedded in our business model
ESG practices are embedded in our business model 4 SUSTAINABILITY 1 Site 2 Pedestrian 3 Resource 4 Local Economic FOCUS AREAS Resilience Mobility, Transit Efficiency Development Connectivity Environmental Social Governance • Achieved Carbon Neutrality on • Supported 737 Social Enterprises through •
Slide 23: References
REFERENCES
Slide 24: 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 25: Ayala Land: A long history of creating communities
Ayala Land: A long history of creating communities ALI is incorporated Mixed-use Estates Launched (2010-2021) Forbes Park and ALI is listed NUVALI is Makati CBD is launched • Broadfield developed • Arca South • Centrio • Cresendo • Altaraza • The Junction • Alviera • Gatewalk • Abreeza Central Place
Slide 26: Expanding offerings through the years to reach more Filipinos
Expanding offerings through the years to reach more Filipinos Tower One is completed Glorietta is ALI launches established UP Technohub the 1st REIT Market! Market! at is completed BGC opens Seda Hotel brand is ALI acquires established El Nido Resorts Trinoma opens AVIDA ALVEO Amaia BellaVita is ALI
Slide 27: 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 • 50.5%* owned by Ayala Corporation Revenues and Total Assets (in Php Billions) Revenues Total Assets 721 745 714 669 574 536 166 169 125 142 96 106 2016 2017 201
Slide 28: Ayala Land is a subsidiary of Ayala Corporation
Ayala Land is a subsidiary of Ayala Corporation Real Estate Financial Services Telecommunications Power 50.5%* 48.6% 30.8% 65.0% The largest and most Pioneering financial Leading digital lifestyle A fast-growing regional established property institution and one of the and content producer, energy pl
Slide 29: 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 47 Estates across the 5 Residential Brands Malls Construction Philippines Philippines • Ayal
Slide 30: Solid nationwide presence with a land bank of 12,498 hectares
Solid nationwide presence with a land bank of 12,498 hectares Present in 57 growth centers across the Philippines Tuguegarao Gross Land Bank (in hectares) Baguio 12,192 12,483 12,498 Pangasinan 11,624 Tarlac Cabanatuan 9,852 10,285 Pampanga SJDM 8,948 Anvaya, Bataan Bulacan Cavite Metro Manila Lagun
Slide 31: 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 31
Slide 32: With its highly-diversified portfolio and strong balance sheet, Ayala Land will capture opportunities
With its highly-diversified portfolio and strong balance sheet, Ayala Land will capture opportunities, manage risks, protect stakeholder value, and deliver long-term earnings growth.