Ayala Land Inc. · PSE:ALI
Ayala Land — 9M 2016 Earnings Presentation
21 slides from Ayala Land's earnings presentation, Nov 7, 2016
Slide 1: 9M 2016 Analysts' Briefing
9M 2016 | Analysts’ Briefing 07 November 2016
Slide 2: Outline
Outline 9M 2016 Results • Financial Statements • Margins • Capex • Operating Statistics 2
Slide 3: Key Messages
Key Messages 1. Ayala Land continues to deliver a strong bottom line with a net income of P15.1b, up 17% year-on-year driven by higher revenues and consistent margin improvement initiatives. 2. Total revenues grew 14% to P85.5b driven by the sustained growth of the residential and office for sale se
Slide 4: Net income up 17% to P15.1b
Net income up 17% to P15.1b Income Statement • Real Estate Revenues 9M 2016 9M 2015 Change % (in Php millions) higher by 14% Total Revenues 85,489 75,047 10,442 14% Real Estate* 84,092 73,637 10,455 14% • GAE ratio improved to Interest & Other Income 1,397 1,410 (13) -1% 5.7% from 6.2% Equity in Net
Slide 5: Steady performance of core businesses
Steady performance of core businesses Revenue Breakdowns 9M 2016 9M 2015 Amount % (in P millions) Property Development 56,198 50,289 5,909 12% Residential 47,065 43,079 3,986 9% New bookings and project completion Office for Sale 4,645 4,366 279 6% Contribution of ALVEO Park Triangle South Tower Com
Slide 6: Margins across various product lines
Margins across various product lines Margin Performance 9M 2016 9M 2015 Property Development (Gross profit) Residential Horizontal 42% 43% Lower margin on newly launched projects due to higher land Vertical 34% 35% and development cost Office for Sale 38% 38% Sustained margins of newly launched proj
Slide 7: Continued diversification into new growth centers
Continued diversification into new growth centers NIAT contribution per business center 36% ] 32% Other Vismin ] Other Luzon 40% Other MM ] 34% FTI ] Manila 27% Vertis Cebu 24% ] ] Alabang BGC Nuvali Makati 2011 2012 2013 2014 2015 9M 2016 7
Slide 8: Continued diversification of core business segment
Continued diversification of core business segment NIAT contribution per core business segment 34% Hotels & Resorts 27% ] ] 29% Office Malls Commercial and Industrial Lots Residential and Office for sale 36% ] 38% 38% ] ] ] 2011 2012 2013 2014 2015 9M 2016 Note: Excludes NIAT from services. Target i
Slide 9: Solid balance sheet to support growth
Solid balance sheet to support growth Balance Sheet September December Change % (in P millions) 2016 2015 Cash & Cash Equivalents* 23,680 19,540 4,139 21% Total Borrowings 158,892 130,996 27,896 21% Stockholders’ Equity 165,569 149,825 14,446 10% Current Ratio 1.09 1.14 Debt-to-Equity Ratio ** 0.97
Slide 10: Sustained capital efficiency via stretched maturities
Sustained capital efficiency via stretched maturities lower cost of debt and managed debt mix As of September 30, 2016 Total Borrowings: Php158.9B: Short-term Php31.8B (20%), Long-term Php127.1B (80%) 9.0% 35 7.9% Short-term Debt Maturity (in Php Billions) 8.0% 7.3% 29.2 30 Long-term Debt Maturity (
Slide 11: Total capex spent reached P63.9b
Total capex spent reached P63.9b 9M 2016 Capex Breakdown 9M 2016 Capex Spend (In Php billions) FY 2016 9M 2016 Budget Actual Land Acquisition Land Acquisition 15.4 10.8 17% Residential 34.1 25.7 Malls 13.6 8.6 Others* 10% Residential Offices 7.2 6.1 40% Hotels and Resorts 3.0 2.8 Estate Estate Devel
Slide 12: Residential: Sales take-up 2% higher year-on-year
Residential: Sales take-up 2% higher year-on-year Sales Take-Up (In Php Bn) • Sales take-up: P84.3b (average of P9.4b in monthly 31.2 29.0 30.5 30.4 29.2 sales) 24.7 ALP 22.0 23.4 22.4 Alveo • Overseas Filipino Sales : P19.6b Avida (23% of total) Amaia Bellavita • Booked sales: P57.9b (up 12% yoy) 3
Slide 13: Continued build-up of unbooked revenues
Continued build-up of unbooked revenues Unbooked Revenues • Unbooked revenues up 6% (in billion php) vs P129b in 2015 137 129 122 99 65 48 19 12 2009 2010 2011 2012 2013 2014 2015 9M 2016 13
Slide 14: Key Launches: Residential
Key Launches: Residential Riomonte - Tranche 5 (July 2016) Nuvali -134 units, P1.4b | 40% cum. take-up 14
Slide 15: Key Launches: Residential
Key Launches: Residential Callisto - Tower 1 (September 2016) The Veranda - North Tower (September 2016) Circuit, Makati - 430 units, P3.5b | 13% cum. take-up Arca South, Taguig - 195 units, P1.7b | 16% cum. take-up 15
Slide 16: Key Launches: Residential
Key Launches: Residential Atria – Tower 2 (August 2016) Atria, Iloilo - 160 units, P793m | 13% cum. take-up 16
Slide 17: Malls: Total GLA of 1.57m sqm
Malls: Total GLA of 1.57m sqm* Completion Malls Construction Pipeline Total • Average Occupancy Rate: 93% • Average Mall Lease Rate: P1,154/sqm/month Date GLA for completion (in k sqm) 983k 2016 (57) Lio El Nido Retail, Palawan 3 • Same Mall Rental Growth: 5% Southpark, Alabang MM 47 Solaire Retail,
Slide 18: Offices: Total of 753k sqm
Offices: Total of 753k sqm* Completion Offices Construction Pipeline Total • Average Occupancy Rate: 90% Date GLA for Completion (in k sqm) 791k • Average Offices Lease Rate: P734/sqm/month 2016 (28) Ayala Center BPO, Cebu 28 • Average leased-out rate: 96% Vertis North BPO 2, QC MM 42 Southpark BPO,
Slide 19: Hotels and Resorts: Total of 1,991 rooms in operation
Hotels and Resorts: Total of 1,991 rooms in operation Completion Hotels Construction Pipeline Total 9M 2016 Hotels Resorts Date Rooms for Completion 3,742 2016 (42) El Nido B&B 1 42 No. of rooms Branded: 961 El Nido Resorts: 2017 (806) Seda Vertis North, QC MM 438 in operation Seda: 817 213 Seda Lio
Slide 20: In Summary
In Summary 1. Ayala Land continues to deliver a strong bottom line with a net income of P15.1b, up 17% year-on-year driven by higher revenues and consistent margin improvement initiatives. 2. Total revenues grew 14% to P85.5b driven by the sustained growth of the residential and office for sale segm
Slide 21: 9M 2016 Analysts' Briefing
9M 2016 | Analysts’ Briefing 07 November 2016