Ayala Land Inc. · PSE:ALI

Ayala Land — FY2003 Earnings Presentation

27 slides from Ayala Land's earnings presentation, Feb 12, 2004

  1. Slide 1: Ayala Land, Inc. 2003 Unaudited Results

    Ayala Land, Inc. 2003 Unaudited Results Analysts' Briefing February 12, 2004

  2. Slide 2: P & L Highlights

    P & L Highlights 16 ™ P2.71 billion in net 14 14.62 (P h p B illio n ) income, up 8% y-o-y 12 12.21 10 8 ™ P14.62 billion in 6 revenues, up by 20% 4 y- o- y 2 2.52 2.71 0 2002 2003 Revenues Net Income

  3. Slide 3: Revenue Breakdown by Product Lines

    Revenue Breakdown by Product Lines 2003 Revenues = P14.62B Rentals Land Sales 24% 19% Residential Unit Interest & Other Sales Income 13% 12% Construction Mass Housing Projects Hotel Core-Mid 13% 5% Operations Residentials 9% 5%

  4. Slide 4: Rentals

    Rentals 2003 2002 % Change P 3.59 B P 3.33 B 8% ™ 79% of 2003 rental revenues came from shopping centers; 18% from office; 3% from other leased properties ™ Growth in rentals mainly due to additional contribution from GB 2 & 3; 5-12% escalation in basic rent of merchants ™ Ayala Center’s total sales

  5. Slide 5: Shopping Centers

    Shopping Centers ™ Existing projects Ave.Bldg.Occ.Rate Ave.Rental Rate Ayala Center 95% P1,000 MRT Ayala retail 92% P850 San Antonio Plaza 100% P1,150 Metro Point 83% P730 Alabang Town Center 97% P610 Ayala Center Cebu 97% P585 Pavilion Mall 93% P570 ™ Market! Market! ¾ 50% complete as of end-2003 ¾

  6. Slide 6: Office Buildings

    Office Buildings ™ Existing projects Ave.Occ.Rate Ave.Rental Rate Tower One 92% P720 6750 Ayala Avenue 98% P675 MSE Building 99% P470 Ayala Life FGU Center 77% P650 ™ People Support Center ¾ 5-storey building; 15,800 sqms (office leasable area) ¾ Construction period: May 2004 to April 2005

  7. Slide 7: Land Sales

    Land Sales 2003 2002 % Change P 2.85 B P 2.11 B 35% ™ Increase in land sales due to: ¾ Higher sales bookings at Ayala Westgrove Heights, Ayala Hillside Estates & Plantazionne Verdana Homes ¾ Higher sales at Laguna Technopark ¾ Sale of two Madrigal Business Park lots ¾ Sale of non-strategic Makati lo

  8. Slide 8: Residential Subdivisions

    Residential Subdivisions ™ Projects Launch Date No. of Units Take-up Westgrove Heights Aug. 1998 1,329 86% Greenfield Estates Mar. 2000 457 78% Hillside Estates * Sept. 2002 121 84% Paseo de Magallanes Apr. 2001 residential 65 89% commercial 28 93% Tamarind Cove * May 2003 9 56% Ferndale Homes (lots

  9. Slide 9: Residential Unit Sales

    Residential Unit Sales 2003 2002 % Change P 1.88 B P 1.57 B 20% ™ Higher revenues from residential unit sales due to: ¾ New residential condominium projects such as One Legazpi Park and The Residences at Greenbelt – Laguna Tower ¾ Recognition of additional completion rate at Montgomery Place and Fer

  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 72% 100% One Legazpi Park Mar. 2002 369 96% 34% The Residences at GB June 2003 249 61% 3% Single-Detached/Townhomes Ferndale Homes (H&L) Aug. 1998 154 89% Montgo

  11. Slide 11: Mass Housing

    Mass Housing 2003 2002 % Change P 1.86 B P 1.42 B 31% ™ Growth in mass housing revenues due to: ¾ 29% increase in sales bookings to 1,451 units from 1,121 units in 2002 ¾ Launch of new projects such as Sta. Catalina Village, One Aeropolis and Sta. Arcadia Estates

  12. Slide 12: Mass Housing

    Mass Housing ™ New Projects Launch Date No. of Units Take-up* St. Alexandra Estates Apr. 2002 147 22% St. Gabriel Heights Apr. 2002 394 49% Villa/Hacienda Sta.Monica Sept. 2002 573 79% Sta. Catalina Village Oct. 2002 637 95% One Aeropolis June 2003 240 82% Sta. Arcadia Village Oct. 2003 residential

  13. Slide 13: Core-Mid Residentials

    Core-Mid Residentials 2003 2002 % Change P 658 M P 508 M 29% ™ Increase due to recognition of revenues from The Columns ™ CII’s 2003 revenue breakdown: ¾ Verdana Homes 69% ¾ The Columns 27% ¾ Verdana Village Center 4%

  14. Slide 14: Core-Mid Residentials

    Core-Mid Residentials ™ Ongoing projects Launch Date No. of Units Take-up Completion The Columns Tower 1 Nov. 2002 284 93% 20% Tower 2 Mar. 2003 284 71% 6% Tower 3 Oct. 2003 284 13% 0% Verdana Homes Phase 1 Mar. 2002 241 lots 100% 50 H&L 98% Phase 2 Aug. 2002 227 lots 100% 38 H&L 100% Verdana Villag

  15. Slide 15: Hotels

    Hotels 2003 2002 % Change P 1.28 B P 1.31 B -2% ™ Reduced occupancy and room rates at Hotel InterContinental Manila & Oakwood Premier Ayala Center ™ Partly offset by improved performance of Cebu City Marriott Hotel

  16. Slide 16: Hotels

    Hotels ™ Projects Occ. Rate Room Rate Hotel Intercon 66% P3,170 Oakwood 69% P4,917 Cebu Marriott 76% P1,860 ™ Market average occupancy rates - MCBD hotels 63% - Cebu hotels 66%

  17. Slide 17: Construction

    Construction 2003 2002 % Change P 759 M P 922 M -18% ™ MDC maintained a relatively full workload given ALI’s new projects ™ However, projects involving third-party clients were limited ¾ Private sector activities capped by rising construction material costs and peso depreciation ¾ Public infrastruct

  18. Slide 18: Interest & Other Income

    Interest & Other Income 2003 2002 % Change P 1.74 B P 1.05 B 66% ™ Increase mainly due to: ¾ Gain on sale of shares ¾ Higher interest income from installment sales

  19. Slide 19: NOI Margins

    NOI Margins 2003 2002 Real Estate 40% 45% Hotels 17% 17% ™ Decline in 2003 real estate margins due to: ¾ Lower margin on rental properties due to increase in Real Property Tax and higher insurance costs ¾ Shift in sales mix towards lower margin business lines ¾ Higher volume of brokered residential

  20. Slide 20: Revenue Breakdown by SBUs

    Revenue Breakdown by SBUs 2003 Revenues = P14.62B Land & Commercial Community Devt. Centers Group Group Mass Housing 20% 15% Group 14% Residenital Buildings Group Support Groups* 13% & Corporate Corporate 26% Business Group Visayas-Mindanao Group 6% Core-Mid Group 1% 5% * hotels, construction and pr

  21. Slide 21: Balance Sheet Highlights

    Balance Sheet Highlights As Asof ofDecember December31, 31,2003 2003 Php Billion Cash 4.85 Current ratio 1.78:1 Total Assets 67.01 Bank D/E ratio 0.41:1 Bank Debt 14.38 Net D/E ratio 0.27:1 Equity 35.27

  22. Slide 22: Asset Breakdown by SBUs

    Asset Breakdown by SBUs End-2003 Assets = P67B (at cost) Commercial Centers Group Land & Community Devt. 16% Residenital Buildings Group Group 17% 11% Mass Housing Group 11% Corporate 9% Corporate Business Support Groups* Group 8% FBDC 10% Visayas-Mindanao Group 4% Core-Mid Group 8% 6% * hotels, con

  23. Slide 23: Landbank

    Landbank End-2003 End-2003 3,677 hectares Calabarzon Other Luzon 76% Areas Visayas- 2% Metro Manila 11% Mindanao 11%

  24. Slide 24: Receivables Update

    Receivables Update ™ P5.75B in-house receivables as of end-2003 ™ Sold receivables 2001 P 20M 2002 112M 2003 820M Total P 952M

  25. Slide 25: Projects and Capital Expenditures Parent Company

    Projects and Capital Expenditures Parent Company ™ Disbursed 66% of the P7.9B 2003 budget ™ 2004 budget 7% higher than previous year’s actual expenditures 2003: P5.2B Residential Bldgs./ Equity Investments Townhouses 54% 23% 2004: P5.6B Residential Commercial Centers / Equity Investments Subdivision

  26. Slide 26: Projects and Capital Expenditures Consolidated

    Projects and Capital Expenditures Consolidated 2003: P8.2B Equity Investments 32% Residential Bldgs./ Townhouses 19% Commercial Centers / 2004: P9.5B Residential Office / etc. Subdivisions 25% 24% Commercial Centers / Equity Investments Office / etc. 6% 28% Residential Bldgs./ Townhouses 26% Residen

  27. Slide 27: Ayala Land, Inc.

    Ma Ayala Land, Inc.

Ayala Land — FY2003 Earnings Presentation on 6ix