Ayala Land Inc. · PSE:ALI
Ayala Land — 9M 2014 Earnings Presentation
32 slides from Ayala Land's earnings presentation, Nov 7, 2014
Slide 1: 9M 2014 Analysts' Briefing
9M 2014 Analysts’ Briefing 07 November 2014
Slide 2: Outline
Outline 1. 9M 2014 Financial and Operational Results • Financial Statements • Margin Performance • Capex • Operating Statistics • Other Updates 2. Strategic Direction • Review of the 5-10-15 Plan • 2020 Vision 2
Slide 3: Key Messages
Key Messages 1. Steady net income growth of 25% to P10.8b driven by strong performance across all business lines 2. Healthy cash position of P35.7b and a net debt level of 0.74x 3. Capex spend of P59.0b in line with target (84% of full-year) 4. Operating performance on track with plans 3
Slide 4: Steady net income growth of 25% to Php10.8b
Steady net income growth of 25% to Php10.8b Income Statement 9M 2014 9M 2013 Change % (in Php millions) Total Revenues 68,316 56,852 11,464 20% Real Estate * 66,638 55,236 11,402 21% • Revenues Interest & Other Income 1,678 1,615 62 4% higher by 20% Equity in Net Earnings of Associates and JVs 599 4
Slide 5: Healthy performance of business segments
Healthy performance of business segments Revenue Breakdown 9M 2014 9M 2013 Amount % (in P millions) Property Development 46,988 37,378 9,610 26% Residential 40,049 28,571 11,478 40% New bookings and project completion Office for Sale 2,570 586 1,984 339% Sales of ALVEO and AVIDA in BGC and ALVEO in
Slide 6: Sustained margins across various product lines
Sustained margins across various product lines Margin Performance 9M 2014 9M 2013 Property development (Gross profit) Residential Horizontal 42% 43% Higher land prices of recently acquired parcels Vertical 35% 35% Steady margins across vertical products Office for Sale 40% 40% Steady margins across
Slide 7: Continued diversification into new growth centers
Continued diversification into new growth centers NIAT contribution per business center 34% 32% 24% 27% ] ] ] Other Vismin Other Luzon Other MM FTI ] Manila 22% Vertis 19% ] ] Cebu Alabang BGC Nuvali Makati 2009 2010 2011 2012 2013 9M2014 7
Slide 8: Continued build up of recurring income business
Continued build up of recurring income business NIAT contribution per business segment 36% 33% 43% ]] Services Hotels & Resorts Office 45% 39% ] ] ] 44% Malls Comm'l / Ind'l Lots Bellavita Amaia ] Avida Alveo ALP 2009 2010 2011 2012 2013 9M 2014 *Target is to increase the recurring income contributi
Slide 9: More efficient balance sheet
More efficient balance sheet Balance Sheet September December Change % (in P millions) 2014 2013 Cash & Cash Equivalents* 35,707 40,778 (5,071) (12%) Total Borrowings 113,256 101,902 11,354 11% Stockholders’ Equity** 103,622 98,470 5,152 5% Current Ratio 1.46 1.45 Debt-to-Equity Ratio 1.09 1.04 Net
Slide 10: Debt profile: stretched maturities, lower cost and managed mix
Debt profile: stretched maturities, lower cost and managed mix As of September 30, 2014 Total Borrowings: Php113.3B, Short-term Php4.8B 18 16.6 Short Term Loan 9.0% 7.9% 16 7.3% Long Term Maturity 8.0% 14 6.2% 12.6 12.7 Borrowing Cost 7.0% 12.0 11.8 12 5.3% 5.1% 6.0% 10 4.5% 9.3 5.0% 8.0 8 7.0 4.0%
Slide 11: Capex spend of P59.0b in line with target
Capex spend of P59.0b in line with target 9M 2014 Capex Spend Capex Schedule (In Php billions) (In Php billions) FY Target Land Acquisition P72b P70b Land Project Completion P66b Acquisition: P22.5b 38% 62% P30b Project P16b P21b 50 Completion 39 P36.5b 31 25 13 18 2009 2010 2011 2012 2013 2014T 84%
Slide 12: All time high residential sales take-up: up 18% yoy
All time high residential sales take-up: up 18% yoy Sales Take-Up (In Php Bn) 31.2 27.3 24.2 24.2 23.9 ALP 19.8 19.6 21.3 9M 2014 vs 18.8 Alveo 9M 2013 Avida Sales Take up up 18% Amaia BellaVita Bookings up 15% 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2012 2012 2013 2013 2013 2013 2014 2014 2014 Booked Sales (In
Slide 13: Steady growth in unbooked revenues
Steady growth in unbooked revenues • Unbooked revenues up Unbooked Revenues 123 24% from end 2013 (in Php billions) 99 • 10x the level in 2009 • 3x residential revenues 65 in FY 2013 48 19 12 2009 2010 2011 2012 2013 9M 2014 13
Slide 14: Residential projects update
Residential projects update The Courtyards The Courtyards Soliento Imus-Dasmarinas (238 units, Php 4.4b) Nuvali (393 units, Php5.1b) 68% cum. take-up 58% cum. take-up (Launched July 2014) (Launched tranche 3 in July 2014) Soliento 14
Slide 15: Residential projects update
Residential projects update The Veranda The Veranda Arca South (231 units, Php1.8b) 65% cum. take-up (Launched Sep 2014) Lumira Nuvali (357 units, Php2.6b) 75% cum. take-up (Launched Jul 2014) Lumira 15
Slide 16: Residential projects update
Residential projects update One Union Place One Union Place (Tower 1) Arca South (477units, Php1.7b) 41% cum. take-up (Launched Aug 2014) Amaia Scapes San Pablo Laguna (313 units, Php376m) 52% cum. take-up (Launched Aug 2014) Amaia Scapes San Pablo 16
Slide 17: Office for Sale
Office for Sale Park Triangle Corp Plaza Park Triangle Corp Plaza BGC (333 units, P6.9b) 61% take-up (Launched Aug 2014) 17
Slide 18: Commercial Lots for sale
Commercial Lots for sale Westborough Center (Phase 1 and 2) Silang (92 com lots, P3.3b) 86% take-up (Launched Jul 2014) Westborough 18
Slide 19: Shopping Centers: GLA up 9% yoy
Shopping Centers: GLA up 9% yoy • Total Malls GLA: 1.33m sqm Gateway (vs. 1.22m sqm in 9M 2013) • Average occupancy: 93% • Same mall rental growth: up 9% • Average building lease rates: Solenad 3, Nuvali up 2% to P1,134/sqm/month Launched projects in 3Q 2014: 118k GLA • CMC (Cainta, 70k GLA) UP Town
Slide 20: Offices: GLA up 4% yoy
Offices: GLA up 4% yoy • Total GLA: 580k sqm Gateway (vs. 555k in 9M 2013) • Average occupancy: 93%; leased out rate at 96% • Average BPO lease rates: up 3% to Php645/sqm / month with the opening of non-CBD locations. Launched projects in 3Q 2014: 55k GLA • Gateway (Makati, 55k GLA) 20
Slide 21: Hotels and Resorts: 2,162 rooms in operation
Hotels and Resorts: 2,162 rooms in operation • Total room count: 2,162 rooms Gateway (vs. 2001 in 9M 2013) 9M 2014 Hotels Resorts No. of rooms Branded: 1,294 El Nido Resorts: in operation Seda: 665 203 Revpar/night P3,773 P6,611 (up 40% ) (up 22%) Average P5,257 P14,003 room rate (up 5%) - Average 7
Slide 22: In Summary
In Summary 1. Steady net income growth of 25% to P10.8b driven by strong performance across all business lines 2. Healthy cash position of P35.7b and a net debt level of 0.74x 3. Capex spend of P59.0b in line with target (84% of full-year) 4. Operating performance on track with plans 22
Slide 23: Outline
Outline 1. 9M 2014 Financial and Operational Results • Financial Statements • Margin Performance • Capex • Operating Statistics • Other Updates 2. Strategic Direction • Review of the 5-10-15 • 2020 Vision 23
Slide 24: 2020 Business Plan
2020 Business Plan Mr. Bobby Dy President and CEO
Slide 25: Review of the 5-10-15 plan
Review of the 5-10-15 plan Growth Net Income (Pbn) • Aggressive launches 11.7 9.0 10.0 • Strategic land acquisition 7.1 5.5 4.0 Margin Improvement • Reduced costs 2009 2010 2011 2012 2013 2014F Capital Efficiency • Increased leverage • Higher dividends Return on Equity (P bn) 15% 13% Organizational
Slide 26: The new business plan: 2020 Vision
The new business plan: 2020 Vision Net Income After Tax 40 20% Annual Growth Rate P40B NIAT 11.7 By 2020 2013 2014 2015 2016 2017 2018 2019 2020 26
Slide 27: 20-20 Vision: Grow NIAT to P40B by 2020
20-20 Vision 2020 VISION Grow NIAT to P40B by 2020 MARGIN CAPITAL ORGANIZATIONAL GROWTH BRAND IMPROVEMENT EFFICIENCY DEVELOPMENT • Continue to Continue margin • Optimize cash • Decentralize and • Leverage on provide products improvement utilization empower product to address initiatives: employees d
Slide 28: Ayala Land has developed the key CBDs in Manila and Cebu
Ayala Land has developed the key CBDs in Manila and Cebu… Makati CBD Bonifacio Global City Cebu Business Park & Cebu IT Park NUVALI 28
Slide 29: Additional growth centers in Mega Manila
Additional growth centers in Mega Manila Bulacan Vertis North Ortigas Makati BGC FTI South Park Daang Hari Alabang Westgrove Tagaytay 29
Slide 30: Additional growth centers across the Country
Additional growth centers across the Country Baguio Pampanga Subic Bataan Mega Manila Cavite Batangas Legazpi Iloilo Palawan BacolodCebu Cagayan de Oro Davao Koronadal General Santos Existing/Secured Sites New / Additional Areas 30
Slide 31: 2020 Vision predicated on the robust Philippine Economy
2020 Vision Predicated on the robust Philippine Economy • Continued growth – 6% GDP growth • Stable interest rate environment/inflation • Continued favourable mortgage lending environment • Positive outlook on key economic drivers – Consumption – OFW remittances – BPO revenues – Tourist Arrivals 31
Slide 32: Thank You.
Thank You. INVESTOR RELATIONS 30F Tower One and Exchange Plaza, Ayala Triangle, Makati City T +9083676 │ F +632 7506790 iru@ayalaland.com.ph www.ayalaland.com.ph