Ayala Land Inc. · PSE:ALI
Ayala Land — Q1 2019 Earnings Presentation
21 slides from Ayala Land's earnings presentation, May 7, 2019
Slide 1: Analysts' Briefing 1Q 2019
WK AyalaLand Analysts’ Briefing 1Q 2019 07 May 2019
Slide 2: Key Messages
Key Messages 1. Ayala Land's revenues increased by 7% to P39.7B and net income grew by 12% to P7.3B in the 1%t quarter of 2019. 2. Property development revenues rose 6% to P27.8B while sales reservations increased 8% to P34.1B from sustained local and overseas Filipino demand. 3. Commercial leasing
Slide 3: Contents
Contents Other Updates ¢ AyalaLand REIT, Inc. (AREIT)
Slide 4: Net income grew 12% to P7.3B
Net income grew 12% to P7.3B Income Statement (in Php millions) 1Q 2018 Change % Total Revenues 36,977 2,703 7% Real Estate* 36,218 2,929 8% Interest & Other Income 760 (226) -30% Equity in Net Earnings of Associates and JVs 167 97 58% Interest & Investment Income 226 (45) -20% Other Income 367 (278
Slide 5: Revenues increased 7% to P39.7B
Revenues increased 7% to P39.7B Revenue Breakdown (in Php millions) 1Q 2019 1Q 2018 Change % Property Development 27,777 26,133 1,644 6% Residential 22,419 22,616 (196) -1% Office for Sale 3,023 1,519 1,504 99% Comm'l and Ind'l lots 2,335 1,998 336 17% Commercial Leasing 9,162 7,711 1,451 19% Shoppi
Slide 6: Margins are within healthy levels
Margins are within healthy levels Margin Performance 1Q 2019 1Q 2018 Property Development (Gross Profit) Residential Horizontal 42% 49% Sell out of high-margin projects of ALP and Alveo Vertical 37% 35% Higher margins from ALP’s Park Central North Tower, Alveo's Orean Place Tower 1 and Avida’s Asten
Slide 7: Diversified net income mix
Diversified net income mix 1Q 2019 Net Income contribution by location New Estates/ Growth Centers: 54% i Established Estates: 46% Nuvali 5% Cebu 4% Other VisMin 4% Alabang 1% Arca South 7% Circuit Makati 3% ~ MCT Bhd 1% 1Q 2019 Net Income contribution by business line G Development i Recurring Resi
Slide 8: Sales reservations increased 8% to P34.1B
Sales reservations increased 8% to P34.1B A Sales Reservations (in Php Billions Sales Reservations (in Php ) * P34.1B,up 8% 40.5 36.4 (average of P11.4B/month) 34.1 32.8 315 - 33.5 34.1 ALP 278 278 1Q19 Launched Projects: P5.3B Alveo (7 new projects) wAvida Amaia Unbooked Revenues: P144B Bellavita i
Slide 9: Key Launches: Residential Projects
Key Launches: Residential Projects WK AyalaLahd? rn Ayala Greenfield Estates Phase 8 (March) Calamba, Laguna 112 units, P1.4B | 28% take-up
Slide 10: Key Launches: Residential Projects
Key Launches: Residential Projects Series Vermosa Phase 1 (January) Steps Sucat Isabela Tower (March) Vermosa, Cavite Sucat, Paranaque 623 units, P2.7B | 12% take-up 112 units, P788M | 20% take-up
Slide 11: • • • 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 12: • • 1.2 1.2 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2
• • 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 13: Hotels and Resorts: 3,018 rooms, opened new rooms
Hotels and Resorts: 3,018 rooms, opened 45 new rooms Newly Opened 1Q 2019 Hotels Resorts Rooms Branded: 660 El Nido: 193 in operation Seda: 1,863 Lio B&Bs: 144 Circuit: 80 Sicogon B&Bs: 78 Revpar/night Average P3,683 (+4%) P9, 182 (-4%) Stable P4,366 (+5%) P10,481 (+4%) Room Rate Average P5,200 (+1%
Slide 14: 1.2 3,500 3,000 2,500 0.8 2,000 0.6 1,500 0.4 1,000 0.2 0 0 0
1.2 3,500 3,000 1 2,500 0.8 2,000 0.6 1,500 0.4 1,000 0.2 500 0 0
Slide 15: Factory Buildings & Warehouses
FACTORY BUILDINGS & WAREHOUSES
Slide 16: Our strong balance sheet supports our growth plan
Our strong balance sheet supports our growth plan Balance Sheet December (in Php Millions) 2018 Cash & Cash Equivalents 27,558 Total Borrowings 187,099 Stockholders’ Equity 220,221 Current Ratio 1.26 Debt-to-Equity Ratio 0.85 Net Debt-to-Equity Ratio 0.72
Slide 17: Well-managed cost of debt, stretched maturities and mix
Well-managed cost of debt, stretched maturities and mix strengthen our funding capability As of 31 Mar 2019 | Total Borrowings: Php190.0B: Short-term Php10.8B (6%), Long-term Php179.2B (94%) 7.9% [3 Long-term Debt Maturity (in Php Billions) 7.3% |=aShort-term Debt Maturity (in Php Billions) —® Borro
Slide 18: CAPEX spend of P22.3B, 17% of total budget
CAPEX spend of P22.3B, 17% of total budget Capex Breakdown FY 2019 1Q2019 (in Php billions) Budget Actual Residential 42.4 11.3 Malls 16.1 1.1 Offices 74 0.8 Hotels and Resorts 8.5 2.0 Land Acquisition 24.9 2.9 Estate Development 17.6 2.8 Others 13.5 1.5 Total 130.4 22.3 Historical Capex 2014 2015 2
Slide 19: Contents
Contents 1Q 2019 Results * Financial Statements * Margins * Operating Statistics * Capex
Slide 20: Ayala Land is targeting to establish the first REIT in the country
Ayala Land is targeting to establish the first REIT in the country All Objectives * We believe that a REIT is a viable investment vehicle to access new investors, recycle capital, and promote the development of the Philippine capital markets. Portfolio * Initially, AREIT will be composed of prime, G
Slide 21: In Summary
In Summary 1. Ayala Land's revenues increased by 7% to P39.7B and net income grew by 12% to P7.3B in the 1%t quarter of 2019. 2. Property development revenues rose 6% to P27.8B while sales reservations increased 8% to P34.1B from sustained local and overseas Filipino demand. 3. Commercial leasing re