Ayala Land Inc. · PSE:ALI
Ayala Land — FY2019 Earnings Presentation
30 slides from Ayala Land's earnings presentation, Feb 14, 2020
Slide 1: Ayala Land Analyst Briefing FY 2019
WK AyalaLand Analyst Briefing FY 2019 14 February 2020
Slide 2: Contents
Contents
Slide 3: Key Messages
Key Messages 1. Netincome grew 13% to P33.2B while total revenues increased 2% to P168.8B. 2. Property development revenues reached P117.6B, supported by office, and commercial and industrial lot sales while commercial leasing revenues rose 13% to P39.3B fueled by the higher contribution of new leas
Slide 4: Net income grew 13% to P33.2B
Net income grew 13% to P33.2B Income Statement (in Php millions) FY 2018 Change % Total Revenues 166,246 2,548 2% Real Estate* 162,856 2,884 2% Interest and Other Income 3,390 (336) -10% Equity in Net Earnings of Associates and JVs 750 216 29% Interest and Investment Income 1,100 (169) -15% Other In
Slide 5: Revenues increased 2% to P168.8B
Revenues increased 2% to P168.8B Revenue Breakdown (in Php millions) FY 2019 FY 2018 Change % Property Development 117,581 120,255 (2,674) -2% Residential 93,218 101,110 (7,892) -8% Office for Sale 13,098 11,417 1,680 15% Comm'| and Ind‘I lots 11,265 7,728 3,537 46% Commercial Leasing 39,311 34,909
Slide 6: Healthy margins boost bottom line growth
Healthy margins boost bottom line growth Margin Performance FY 2019 FY 2018 Property Development (Gross Profit) Residential Horizontal 45% 44% Vertical 39% 34% Office for Sale 43% 33% Commercial and Industrial Lots 62% 50% Commercial Leasing (EBITDA) Shopping Centers 66% 66% Office 90% 91% Hotels an
Slide 7: Higher income share from new estates; recurring income growth outpace development
Higher income share from new estates; recurring income growth outpace development Net Income share by location Net Income share by business line ) New Estates/Growth Centers: i Established Estates: Development Gi Recurring 58% 42% Residential and Offices for Sale Mall Leasing Commercial/Industrial L
Slide 8: Sales grew 3% to P145.9B, launched P158.9B worth of projects
Sales grew 3% to P145.9B, launched P158.9B worth of projects Sales Reservations (in Php Billions) 141.9 145.9 122.0 wALP 101.7 105.3 108.1 mAlveo mAvida mAmaia mBellavita 2014 2015 2016 2017 2018 2019 Project Launches (in Php Billions) 158.9 139.4 ALP BAlveo 5 88.8 mAvida 60.3 61.5 Amaia mBellavita
Slide 9: Sales to other nationalities at 16%, unbooked revenues of P152B
Sales to other nationalities at 16%, unbooked revenues of P152B Local Filipinos: 71% * P104.2B, up 3% Overseas Filipino: 13% + P19.4B, up 24% Other Nationalities: 16% * P22.2B, down 10% Unbooked Revenues + P152B, 1.3x 2019 Property Development Revenues of P118B Sales Breakdown lr Local Filipino 71%
Slide 10: Key Launches: New Estates
Key Launches: 3 New Estates Rs Eroacfield Broadfield (October) Binan, Laguna | 120 ha. Located at the heart of South Luzon’s thriving residential, leisure, industrial and manufacturing center 40 ha residential | 80 ha commercial + hectares of parks and open spaces Phase 1 — 36.6 ha gross land + Sale
Slide 11: Key Launches: Residential Projects
Key Launches: Residential Projects WA AyalaLandPren Andacillo Phase 1 (September) The Courtyards Phase 4 (September) Nuvali, Laguna Vermosa, Cavite 188 lots, P3.0B | 76% take-up 71 lots, P1.5B | 72% take-up
Slide 12: Key Launches: Residential Projects
Key Launches: Residential Projects WK aAyalaLahdPremicr Parklinks South Tower (October) Gardencourt Residences B1 (December) Parklinks, Quezon City Arca South, Taguig City 345 units, P14.2B | 8% take-up 364 units, P14.0B | 19% take-up
Slide 13: Key Launches: Residential Projects
Key Launches: Residential Projects Mergent Residences (October) ; Parkford Suites (September) Legaspi Village, Makati CBD Poblacion, Makati 163 units, P8.2B | 22% take-up 358 units, P5.1B | 41% take-up
Slide 14: Key Launches: Residential Projects
Key Launches: Residential Projects The Lattice (November) Sentrove (November) Parklinks, Quezon City Cloverleaf, Quezon City 530 units, P8.8B | 14% take-up 514 units, P7.3B | 12% take-up
Slide 15: Key Launches: Residential Projects
Key Launches: Residential Projects la Towers Vireo Tower 3 (August) Avida Towers Ardane Tower 1 (November) Arca South, Taguig City Southpark District, Muntinlupa City 551 units, P2.2B | 57% take-up 957 units, P3.4B | 13% take-up
Slide 16: Key Launches: Residential Projects
Key Launches: Residential Projects Amaia ” —— Amaia Series Vermosa Phase 1 (January) Vermosa, Cavite 623 units, P2.7B | 28% take-up Amaia Skies Shaw T2 (September) Mandaluyong City 1,254 units, P4.9B | 36% take-up Amaia Skies Avenida T2 (December) Manila 1,131 units, P4.1B | 9% take-up
Slide 17: Key Launches: Office for Sale
Key Launches: Office for Sale Cerca Enterprise Plaza (September) Alabang, Muntinlupa 343 units, P8.3B | 7% take-up
Slide 18: 2019 Launches Summary
2019 Launches Summary P158.9B | 48 Projects 2019 Launches Ayalaland Premier Alveo Avida Amaia BellaVita Total 2019 Launches Horizontal Vertical Commercial Lots Office for Sale Leisure Lots Total Projects 12 11 10 9 6 48 Projects 21 24 1 1 1 48 Value 44.5B 75.0B 24.1B 14.6B 0.8B P158.9B Value 24.8B 1
Slide 19: Malls: Opened 213K sqm of new GLA to total 2.12M sqm
Malls: Opened 213K sqm of new GLA to total 2.12M sqm Newly Opened * Occupancy: o Average 88% o Stable Malls 93% + Same Mall Rental Growth: 8% MANILA: BAY Ayala North Exchange Retail i : “a5 Makati CBD, 8K GLA (February) Ayala Malls Manila Bay | Paranaque MM, 161K GLA (September)
Slide 20: 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 21: Offices: GLA of 1.17M sqm, added 70k GLA in 2019
Offices: GLA of 1.17M sqm, added 70k GLA in 2019 il Manila Bay BPO Ayala North Exchange BPO Paranaque MM, 19K GLA (September) Makati CBD, 20k GLA (April) Completed * Occupancy: o Average 96% o Stable Offices 97% N ye dead PEZA Accredited
Slide 22: 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 23: Hotels and Resorts: 3,705 rooms, opened new rooms in 4Q19
Hotels and Resorts: 3,705 rooms, opened 129 new rooms in 4Q19 Newly Opened FY 2019 Hotels Resorts Rooms Branded: 660 El Nido: 193 in operation Seda: 2,367 Lio B&Bs: 152 Circuit: 255 Sicogon B&Bs: 78 Occupancy Average 70% (-) 63% (-) Stable 78% (+1 pt) 63% (-1 pt) Seda BGC Expansion | BGC Taguig, 57
Slide 24: Hotels and Resorts: Upcoming Openings
Hotels and Resorts: Upcoming Openings AyalaLand Horrs AND Resor Total Rooms 70! TULL 2013 2014 2015 2016 2017 2018 2019 Total rooms under construction: 2,311 rooms "Seda Nuvali expansion | Nuvali Laguna, 206 rooms (3Q 2020)
Slide 25: Other Leasing Formats
Other Leasing Formats WKayalaLand LOGISTICS HOLDINGS CORP. (FACTORY BUILDINGS and WAREHOUSES) 175Kson GLA Lepanto 85,000 Laguna Technopark 39,853 (+16,886 in Jun 2019) Cavite Technopark 12,604 Tutuban Storage 1,098 Alviera Industrial Park 19,412 (FY2018: 137K sqm) €2 the flats 2,044 Beds SCLOCK|IN a
Slide 26: 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 221,221 Current Ratio 1.26 Debt-to-Equity Ratio 0.85 Net Debt-to-Equity Ratio 0.72
Slide 27: Well-managed cost of debt, stretched maturities and mix strengthen our funding capability
Well-managed cost of debt, stretched maturities and mix strengthen our funding capability As of 31 Dec 2019 | Total Borrowings: Php211.0B: Short-term Php18.0B (9%), Long-term Php193.0B (91%) 7.9% [5 Long-term Debt Maturity (in Php Billions) 7.3% |= Short-term Debt Maturity (in Php Billions) 6.2% —®
Slide 28: CAPEX spend of P108.7B
CAPEX spend of P108.7B Hotels and 6% Capex Breakdown FY 2019 (in Php billions) Actual Residential 43.3 Malls 14.2 Offices 5.9 Hotels and Resorts 6.6 Land Acquisition 17.7 Estate Development 15.6 Others 5.4 Total 108.7 2015 Historical Capex 2016 2017 2018 2019 28
Slide 29: In Summary
In Summary 1. 2. Net income grew 13% to P33.2B while total revenues increased 2% to P168.8B. Property development revenues reached P117.6B, supported by office, and commercial and industrial lot sales while commercial leasing revenues rose 13% to P39.3B fueled by the higher contribution of new leasi
Slide 30: Ayala Land Analysts' Briefing FY 2019
WK AyalaLand Analysts’ Briefing FY 2019 14 February 2020