Ayala Land Inc. · PSE:ALI
Ayala Land — FY2016 Earnings Presentation
41 slides from Ayala Land's earnings presentation, Feb 15, 2017
Slide 1: FY 2016 Analysts' Briefing
WK AyalaLand FY 2016 | Analysts’ Briefing 15 February 2017
Slide 2: Contents
Contents FY 2016 Results * Financial Statements * Margins * Capex * Operating Statistics 2020-40 Plan Updates
Slide 3: Contents: 2020-40 Plan Updates
Contents 2020-40 Plan Updates
Slide 4: FY 2016 Key Messages
FY 2016 | Key Messages 1. Net income up 19% to P20.9B, on track with the 2020-40 Plan 2. Revenues up 16% to P124.6B driven by the sustained growth of the residential and office for sale segments and commercial lot sales balanced with the steady performance of the leasing business. 3. Margins are sta
Slide 5: Net income up 19% to P20.9b on track with 2020-40
Net income up 19% to P20.9b on track with 2020-40 * Real Estate Revenues higher by 16% * GAE ratio improved to 5.6% from 6.2% * EBIT margin slightly higher at 32.5% (vs. 32.2%) Income Statement (in Php millions) FY 2016 FY 2015 Change % Total Revenues 124,629 107,183 17,446 16% Real Estate* 122,591
Slide 6: Sustained growth of core businesses
Sustained growth of core businesses Revenue Breakdown (in P millions) FY 2016 FY 2015 Amount % Property Development 84,128 72,570 11,558 16% Residential 69,424 62,711 6,713 11% New bookings and project completion Office for Sale 8,786 6,907 1,880 27% Contribution of ALVEO Park Triangle Towers Comm'l
Slide 7: Margins are stable across various product lines
Margins are stable across various product lines Margin Performance FY 2016 FY 2015 Property Development (Gross profit) Residential Horizontal 43% 44% Vertical 35% 34% Office for Sale 37% 38% Commercial and Industrial Lots 41% 50% Higher contribution of lower margin lot sales Commercial Leasing (EB/T
Slide 8: Growing contribution of new growth centers
Growing contribution of new growth centers NIAT contribution per location 40% 36% Others in VisMin 32% Others in Luzon Others in MM @Arca South 34% Manila Vertis North 27% | Cebu BAlabang | BGC GNuvali Makati 2012 2013 2014 2015 2016
Slide 9: Building the recurring income for a balanced portfolio
Building the recurring income for a balanced portfolio NIAT contribution per business line Development Recurring 20.9 Recurring Income Mall Leasing 17.6 Office Leasing Hotels and Resorts 14.8 Property Management W7 Development Income 9.0 Residential and Offices for Sale : Commercial/Industrial Lots
Slide 10: Strong balance sheet to support growth
Strong balance sheet to support growth Balance Sheet December December (in P millions) 2016 2015 Cash & Cash Equivalents* 22,641 19,540 Total Borrowings 159,801 130,996 Stockholders’ Equity 172,683 149,825 Current Ratio 1.12 1.14 Debt-to-Equity Ratio ** 0.93 0.87 Net Debt-to-Equity Ratio** 0.79 0.74
Slide 11: Sustained capital efficiency via stretched maturities
Sustained capital efficiency via stretched maturities lower cost of debt and managed debt mix As of December 31, 2016 | Total Borrowings: Php159.8B: Short-term Php24.2B (15%), Long-term Php135.6B (85%) 7.9% 5 mmm Long-term Debt Maturity (in Php Billions) 7.3% ‘an Short-term Debt Maturity (in Php Bil
Slide 12: Capex breakdown
11.8 37.0 13.1 8.8 3.4 4.6 6.7 85.4
Slide 13: Residential: Sales take-up 3% higher year-on-year
Residential: Sales take-up 3% higher year-on-year Sales Take-up (in Php billions) 101.7 105.3 108.0 91.9 BALP 77.6 BAlveo mAvida BAmaia mBellaVita 2012 2013 2014 2015 2016 Net Bookings (in Php billions) 64 m9 83.3 ALP 67.8 wAlveo 51.5 mAvida BAmaia wBellaVita 2012 2013 2014 2015 2016 Note: Sales tak
Slide 14: Sustained pipeline of unbooked revenues
Sustained pipeline of unbooked revenues Unbooked Revenues (in billion php) 122 99 65 2012 2013 2014 129 2015 127 2016 14
Slide 15: Key Launches: Estates
Key Launches: Estates Ayala Center InterCon Block Redevelopment (Jan 2016) Makati CBD Retail Podium (54K GLA) Office (85K GLA) Hotels (600 Rooms) Condo for Lease (300 Rooms) Transport Terminal Investment Cost: P19bn ahotrat tora perrereeeeteerers Ht Hu
Slide 16: Key Launches: Estates
Key Launches: Estates Gatewalk Central (Jun 2016) Mandaue Cebu * Owned and developed by Cebu District Property Enterprise, Inc. (“CDPEI"), the JV company of Ayala Land and AboitizLand * Phase 1 components - Mall 115k GLA - Office 20k GLA - Avida Towers - 30-meter-wide pedestrian street with a dynami
Slide 17: Key Launches: Residential
Key Launches: Residential YK AyalaLahd)) Park Central Tower 1 (Jun 2016) Makati CBD MM 281 units, P17.2b | 71% cum. take-up Riomonte — Phase 4&5 (Jul 2016) Nuvali Laguna 134 units, P1.4b | 91% cum. take-up 17
Slide 18: Key Launches: Residential
Key Launches: Residential Callisto - Tower 1 (Sep 2016) 6 G3% —Y The Gentry (Jun 2016) Circuit Makati KA oe ‘64 Makati CBD 430 units, P3.5b | 27% cum. take-up A Ay 391 units, PA. 5b | 60% cum. take-up 4. The Veranda - North Tower (Sep 2016) Arca South Taguig 195 units, P1.7b | 27% cum. take-up Ardia
Slide 19: Key Launches: Residential Avida
Key Launches: Residential Avida Atria Tower 2 (Aug 2016) Avida Settings Lipa Phase 1 (Oct 2016) Atria lloilo Lipa Batangas 145 units, P460m | 68% cum. take-up One Union Place Tower 3 (Mar 2016) Arca South Taguig 522 units, P1.7b | 87% cum. take-up Vertic North QC MM 1,004 units, P3.3B | 39% cum. tak
Slide 20: Key Launches: Residential Amaia, BellaVita
Key Launches: Residential Amaia \VBellaVita Amaia Steps Nuvali Parkway B (November 2016) Bellavita San Miguel (May 2016) Nuvali lloilo 75 units, P241m | 80% cum. take-up 584 units, P263m | 73% cum. take-up a ui Amaia Series 2 Novaliches (December 2016) Bellavita Lian (August 2016) Quezon City Batang
Slide 21: Key Launches: Office for sale ALVEO
Key Launches: Office for sale ALVEO Park Triangle Corporate Plaza South Tower (Mar 2016) BGC 220 units, P6.3b | 60% cum. take-up
Slide 22: Launches by business line
28 61.5 5 13.9 4 7.6 3 4.7 3 0.2 43 87.8
Slide 23: Malls: Total GLA of 1.62m sqm
Malls : Total GLA of 1.62m sqm* Tutuban Center, MM | 56K GLA * Ave. Occupancy Rate: 91%** + Ave. Mall Lease Rate: P1,143/sqm/mo. *Same Mall Rental Growth: 5% Malls (in sqm) GLA FY 2015 Total 1.45m 2016 Key Additions 173k Tutuban Center, Manila MM 56k Southpark, Alabang MM 42k UP Town Center, Quezon
Slide 24: Malls Pipeline
Malls Pipeline Vermosa | 60K GLA, launched 4Q 2016 Completion Malls Construction Pipeline Total F 3 a Date GLA for completion (in k sqm) 989k** 2017 (224) Feliz Town Center, Pasig MM 79 Vertis North, QC MM 40 Cloverleaf, QC MM 38 The 30th Mall, Pasig 27 One Bonifacio High Street, BGC Taguig 21 Ayala
Slide 25: Offices: Total of 836k sqm
Offices: Total of 836k sqm* Vertis 1 QC | 41K GLA ACC Cebu BPO | 28k GLA | * Ave. Occupancy Rate: 87%** + Ave. Office Lease Rate: P725/sqm/mo. (up 4%) + Ave. Leased-out rate: 94% Offices (in sqm) GLA FY 2015 Total 715k 2016 Key Additions 121k Vertis 1 41k Ayala Center Cebu 28k Bonifacio Stopover BGC
Slide 26: Offices Pipeline
Offices Pipeline The 30th | 47K Completion Offices Construction Pipeline Total Date GLA for Completion (in k sqm) 700k 2017 (185) The 30" BPO 1, Pasig MM 47 Circuit BPO 1, Makati MM 47 Vertis North BPO 2, QC MM 43 Circuit BPO 2, Makati MM 26 Tech Tower BPO, Cebu 16 One Bonifacio High Street, BGC** 6
Slide 27: Hotels and Resorts: 2,027 rooms in operation
Hotels and Resorts: 2,027 rooms in operation | Casa Kalaw Lio, El Nido | 30 rooms FY 2016 Hotels Resorts No. of rooms Branded: 961 El Nido: 213 in operation Seda: 817 Lio: 30 Sicogon: 6 Revpar/night P3,786 P8,087 (up 0.7%) (up 7.4%) Average P5,183 P13,824 room rate (up 0.3%) (up 6.1%) Average 73% 59
Slide 28: Hotels and Resorts Pipeline
Hotels and Resorts Pipeline Seda Vertis North, QC | 438 rooms Completion Hotels Construction Pipeline Total Cates Date Rooms for Completion 3,743 Re oh # - 2017 (837) Seda Vertis North, QC MM 438 1 ° Seda Lio, Palawan 153 Seda Bacolod, Negros Occidental 154 Balai Adlao, Lio El Nido, Palawan* 20 Casa
Slide 29: Contents
Contents FY 2016 Results ¢ Financial Statements ¢ Margins * Capex * Operating Statistics 29
Slide 30: 2016: Another record year of progress
2016: Another record year of progress P20.9B Net Income After Tax +1 9 % Sustained growth of core businesses and stable margins 43 | P87.8B Launched (P61.5B - Residential Projects and Office for Sale) Solid Business Model 2 Large scale, Integrated Mixed-Use Estates 1.New Estate Gatewalk Central Cebu
Slide 31: Balanced and sustainable growth through the 2020-40 Plan
Balanced and sustainable growth through the 2020-40 Plan P40 B Sustainable and balanced growth strategy 50% from Property Development * 50% Horizontal, 50% Vertical Projects 2020 50% from Leasing * GLA growth: Malls, Office, Hotels and Resorts Net Income After Tax (in Php billions) Average Annual Gr
Slide 32: Strong macroeconomics continue to support growth
Strong macroeconomics continue to support growth PH GDP Growth 6.7% 2012 Inflation 3.2% 2012 Source: BSP, Trading Economics 7.1% 2013 3.0% 2013 6.2% 2014 41% 2014 5.9% 2015 6.8% 2016 External Debt 32.0% to GDP : 2012 Gross Int'l 33.8 Reserve (USD B) 2012 28.9% 2013 83.2 2013 28.2% 2014 25.9% 2015 25
Slide 33: Solid structural tailwinds drive momentum
Solid structural tailwinds drive momentum Average Mortgage Rates BPO Revenues (USD BILLIONS) ——5-Year ——10-Year ===15-Year 18 2012 2013 2014 2015 2016 (E) 9.70% ; - OF Remittances ssp Billions) 12.5% 8.6% 7 bal 7 LU bs 2012 2013 2014 2015 2016 11.5% (an-Nov) 6.8% TOURIST ARRIVALS (IN MILLIONS) BFore
Slide 34: Platform for growth in place
Platform for growth in place Makati Cebu BGC Nuvali 20 Estates across the Philippines With 9,852 hectares of land bank _ Present Present in 55 growth centers across the Philippines © Mrs AN A =~ circurr Norn == ARCA South|Park Cloverleaf ALVIERA 9 aun STEOGON esha SOUTH Capitol p ° Central “D/€6ZO N
Slide 35: Fueled by the completion of infrastructure projects
Fueled by the completion of infrastructure projects = \ Tollways Estimated Completion pa aes NLEX Segment 10 2017 Expressways NAIA Expressway 2017 NLEX Segment 8 2018 Skyway Stage 3 2018 C5 South Link 2019 CALAX 2020 NLEX-SLEX Connector 2020 C6 2021 Manila Taguig Expressway 2022 R7 Expressway For st
Slide 36: Residential: Pipeline of projects ready for launch
Residential: Pipeline of projects ready for launch MayalaLahidPremier
Slide 37: Leasing: Focused completion of investment properties
Leasing: Focused completion of investment properties Malls, Offices and Hotels and Resorts growth ) Lovtoll Malls GLA : 1.2 to 3.1 (in million sqm) 2013 2014 2015 2016 2017 2018 2019 2020 Regional Malls Lifestyle Malls Value Malls Community Centers YK AyalaLand OFFICES Office GLA : 0.5 to 1.5 (in th
Slide 38: Strong balance sheet to support growth
Strong balance sheet to support growth Balance Sheet December December (in P millions) 2016 2015 Cash & Cash Equivalents* 22,641 19,540 Total Borrowings 159,801 130,996 Stockholders’ Equity 172,683 149,825 Current Ratio 1.12 1.14 Debt-to-Equity Ratio ** 0.93 0.87 Net Debt-to-Equity Ratio** 0.79 0.74
Slide 39: 2017 CAPEX projection at P88B
2017 CAPEX projection at P88B Land Acquisition 12% Others a. p 8 8 B Estate Developme) 6% Hotels a) Resorts 5 * ALI Capital, Services and other investments Capex Breakdown FY 2017 (in Php billions) Budget Land Acquisition 11 Residential 41 Malls 12 Offices 9 Hotels and Resorts 5 Estate Development 5
Slide 40: FY 2016 Summary
FY 2016 | Summary 1. Net income up 19% to P20.9B, on track with the 2020-40 Plan 2. Revenues up 16% to P124.6B driven by the sustained growth of the residential and office for sale segments and commercial lot sales balanced with the steady performance of the leasing business 3. Margins are stable ac
Slide 41: AyalaLand FY 2016 Analysts' Briefing
WK AyalaLand FY 2016 | Analysts’ Briefing 15 February 2017