Ayala Land Inc. · PSE:ALI

Ayala Land — Q1 2004 Earnings Presentation

24 slides from Ayala Land's earnings presentation, May 7, 2004

1. Slide 1: Ayala Land, Inc. 1Q 2004 Unaudited Results

   Ayala Land, Inc. 1Q 2004 Unaudited Results Analysts' Briefing May 7, 2004

2. Slide 2: Consolidated Revenues

   Consolidated Revenues ™ 1Q 2004 consolidated revenues of P3.69 billion, up by 19% y-o-y ¾ Revenue growth across all product lines 1Q 2004 Revenue Breakdown Rentals Land Sales 26% 18% Interest and Other Income Residential Unit sales 6% 13% Core-mid Residentials 5% Construction Mass Housing 9% 13% Hot

3. Slide 3: Net Income

   Net Income ™ 1Q 2004 net income of P536 million, up by 5% y-o-y ™ Income growth tempered by 21% increase in total expenses ¾ Higher GAE Net Income (higher payroll costs and additional 550 536 500 expenses of expanding subsidiaries (Php Million) 510 450 like ALSI and CII) 400 350 ¾ Higher interest an

4. Slide 4: Rentals

   Rentals 1Q 2004 1Q 2003 % Change P 947 M P 870 M 9% ™ 1Q04 rental revenue breakdown: ¾ Shopping centers 79% ¾ Office 15% ¾ Other leased properties 6% ™ Rental growth mainly due to: ¾ Opening of SM Expansion ¾ Strong merchant sales -- Ayala Center total sales and same-store sales growth of 10% ¾ 5-8%

5. Slide 5: Shopping Centers

   Shopping Centers ™ Existing projects Ave.Bldg.Occ.Rate Ave.Rental Rate Ayala Center 94% P1,070 MRT Ayala retail 92% P860 San Antonio Plaza 100% P1,109 Metro Point 86% P700 Alabang Town Center 95% P550 Ayala Center Cebu 97% P650 Pavilion Mall 90% P615 ™ Market! Market! ¾ 72% complete as of end-March

6. Slide 6: Office Buildings

   Office Buildings ™ Existing properties Ave.Occ.Rate Ave.Rental Rate Tower One 95% P740 6750 Ayala Avenue 95% P670 MSE Building 100% P500 Ayala Life FGU Center 79% P630 Average: ALI Bldgs. 96% ™ People Support Center ¾ 5-storey building; 15,800 sqms (office leasable area) ¾ Broke ground in March 2004

7. Slide 7: Land Sales

   Land Sales 1Q 2004 1Q 2003 % Change P 666 M P 585 M 14% ™ Increase due to: ¾ Higher sales bookings at Ayala Westgrove Heights, Ayala Greenfield Estates & Ayala Northpoint ¾ Sale of commercial and residential lots at Paseo de Magallanes Phase 2 (2Q03 launch) ¾ Higher sales at Laguna Technopark

8. Slide 8: Residential Subdivisions

   Residential Subdivisions ™ Projects Launch Date No. of Units Take-up Westgrove Heights Aug. 1998 1,429 85% Greenfield Estates Mar. 2000 457 85% Hillside Estates * Sept. 2002 121 94% Paseo de Magallanes Apr. 2001 residential 65 94% commercial 28 96% Tamarind Cove * May 2003 9 56% Ferndale Homes (lots

9. Slide 9: Residential Unit Sales

   Residential Unit Sales 1Q 2004 1Q 2003 % Change P 467 M P 409 M 14% ™ Higher revenues due to: ¾ Sales at The Residences at Greenbelt – Laguna Tower (2Q03 launch) ¾ New sales and revenue recognition on prior years’ sales given additional completion rate at One Legazpi Park

10. Slide 10: Residential Condos / Townhomes

    Residential Condos / Townhomes ™ Ongoing projects Condominium Launch Date No. of Units Take-up Completion One Roxas Triangle Nov. 1996 182 74% 100% One Legazpi Park Mar. 2002 369 98% 53% The Residences at GB June 2003 249 75% 6% Serendra Mar. 2004 586 * 25% Single-Detached/Townhomes Ferndale Homes (

11. Slide 11: Mass Housing

    Mass Housing 1Q 2004 1Q 2003 % Change P 474 M P 460 M 3% ™ Growth due to: ¾ 49% increase in sales bookings to 381 units in 1Q04 from 256 units in previous year ¾ New projects, e.g. One Aeropolis (2 towers), Sta. Arcadia Estates and Sta. Arcadia Town Center ™ Revenue growth rate tempered by: ¾ High 1

12. Slide 12: Mass Housing

    Mass Housing ™ New Projects Launch Date No. of Units Take-up* St. Alexandra Estates Apr. 2002 147 27% St. Gabriel Heights Apr. 2002 515 42% Villa/Hacienda Sta.Monica Sept. 2002 653 76% Sta. Catalina Village Oct. 2002 851 81% One Aeropolis Tower 1 June 2003 240 96% Tower 2 Nov. 2003 240 23% Sta. Arca

13. Slide 13: Hotels

    Hotels 1Q 2004 1Q 2003 % Change P 380 M P 316 M 20% ™ Revenue growth due to: ¾ Higher occupancy and room rates at Hotel InterContinental Manila, Oakwood Premier Ayala Center and Cebu City Marriott Hotel

14. Slide 14: Hotels

    Hotels ™ Projects Occ. Rate Room Rate Hotel Intercon 77% P3,287 Oakwood 82% P5,879 Cebu Marriott 87% P2,205 ™ Market average occupancy rates - MCBD hotels 77% - Cebu hotels 75%

15. Slide 15: Core-Mid Residentials

    Core-Mid Residentials 1Q 2004 1Q 2003 % Change P 203 M P 77 M 163% ™ Increase in core-mid revenues due to: ¾ Additional take-up and revenue recognition on prior years’ sales due to construction accomplishment at the Columns ¾ Launch of Verdana commercial lots (3Q03) and Verdana Mamplasan (1Q04)

16. Slide 16: Core-Mid Residentials

    Core-Mid Residentials ™ Ongoing projects Launch Date No. of Units Take-up Completion The Columns Tower 1 Nov. 2002 284 99% 33% Tower 2 Mar. 2003 284 77% 10% Tower 3 Oct. 2003 284 53% 0% Verdana Mamplasan Feb. 2004 416 lots 11% Verdana Village Center July 2003 28 lots 46% * Take-up rates as of March

17. Slide 17: Construction

    Construction 1Q 2004 1Q 2003 % Change P 325 M P 206 M 58% ™ Primarily accounting for the increase in construction revenues were key projects like Market! Market! and Ayala Greenfield Estates

18. Slide 18: Interest & Other Income

    Interest & Other Income 1Q 2004 1Q 2003 % Change P 228 M P 182 M 25% ™ Higher interest and other income in 1Q 2004 mainly due to absence of loss on sale of investment ¾ Loss on sale of shares in Boracay landholding company in 1Q 2003

19. Slide 19: NOI Margins

    NOI Margins 1Q 2004 1Q 2003 Real Estate 36% 38% Hotels 25% 12% ™ Decline in 1Q 2004 real estate margin due to: ¾ Shift in sales mix towards lower margin business lines such as core-mid residentials and construction ¾ Lower mass housing margin due to absence of high- margin LPHI commercial lots in 1Q

20. Slide 20: Balance Sheet Highlights

    Balance Sheet Highlights As Asof ofMarch March31, 31,2004 2004 Php Billion Cash 4.01 Current ratio 1.74:1 Total Assets 68.17 Bank D/E ratio 0.40:1 Bank Debt 14.24 Net D/E ratio 0.29:1 Equity 35.81

21. Slide 21: Receivables

    Receivables ™ P6.45B in-house receivables as of end-March 2004 ™ Receivables sold todate: 2001 P 20M 2002 112M 2003 820M 1Q 2004 136M Total P1,088M ™ 2004 receivables targetted for sale: P1.67B

22. Slide 22: Projects and Capital Expenditures Parent Company

    Projects and Capital Expenditures Parent Company ™ P1.36B or 24% of the P5.6B 2004 budget disbursed 1Q2004: P1.36B Residential Bldgs./ Equity Investments 58% Townhouses 21% Residential Subd. 8% Commercial Centers / Office / etc. 2004: P5.6B 13% Equity Investments 34% Residential Bldgs./ Townhouses 2

23. Slide 23: Projects and Capital Expenditures Consolidated

    Projects and Capital Expenditures Consolidated ™ Spent P2.22B or 23% of the P9.5B 2004 budget 1Q2004: P2.22B Commercial Centers / Office / etc. Residential Subdivisions 18% 25% Equity Investments 2% 2004: P9.5B Commercial Centers / Equity Investments Office / etc. Residential Bldgs./ 6% 28% Townhous

24. Slide 24: Ayala Land, Inc.

    Ma Ayala Land, Inc.

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