Ayala Land Inc. · PSE:ALI
Ayala Land — H1 2015 Earnings Presentation
25 slides from Ayala Land's earnings presentation, Aug 7, 2015
Slide 1: 1H 2015 Analysts' Briefing
1H 2015 Analysts’ Briefing 07 August 2015
Slide 2: Outline
Outline 1H 2015 Results • Financial Statements • Margins • Capex • Operating Statistics 2
Slide 3: Key Messages
Key Messages 1. Net income grew at a steady pace of 19% to P8.4b 2. Revenues increased 10% to P50.6b driven by the sustained momentum of the core real estate businesses which grew 16% before intercompany adjustments 3. Margins improved across various product lines 4. Balance Sheet remained solid in
Slide 4: Steady net income growth of 19% to P8.4b
Steady net income growth of 19% to P8.4b Income Statement • Revenues (in Php millions) 1H 2015 1H 2014 Change % higher by 10% Total Revenues 50,611 46,198 4,413 10% Real Estate* 49,525 44,749 4,777 11% Interest & Other Income 1,085 1,449 (364) -25% • GAE ratio Equity in Net Earnings of improved to A
Slide 5: Sustained momentum of core businesses
Sustained momentum of core businesses Revenue Breakdown 1H 2015 1H 2014 Amount % (in P millions) Property Development 33,946 31,087 2,859 9% Residential 28,809 26,067 2,743 11% New bookings and project completion Office for Sale 2,360 827 1,533 185% Contribution of new ALVEO launches Comm’l/Ind’l lo
Slide 6: Improved margins across various product lines
Improved margins across various product lines Margin Performance 1H 2015 1H 2014 Property Development (Gross profit) Residential Horizontal 43% 40% Sale of higher margin horizontal projects Vertical 36% 34% Steady margins across vertical projects Office for Sale 39% 38% New project launches in BGC C
Slide 7: Continued diversification into new growth centers
Continued diversification into new growth centers NIAT contribution per business center 32% 27% ] 34% ] 40% Other Vismin Other Luzon Other MM FTI Manila 19% 22% 24% ] ] ] Vertis Cebu Alabang ] ] BGC Nuvali Makati 2009 2010 2011 2012 2013 2014 1H 2015 7
Slide 8: Continued build up of recurring income business
Continued build up of recurring income business NIAT contribution per business segment 38% 36% ] ] 44% Services Hotels & Resorts Office Malls ] 43% Comm'l / Ind'l Lots ] 44% Bellavita Amaia ] ] 39% Avida 45% Alveo ] ALP 2009 2010 2011 2012 2013 2014 1H2015 *Target is to increase the recurring income
Slide 9: Solid balance sheet to support growth
Solid balance sheet to support growth Balance Sheet June December Change % (in P millions) 2015 2014 Cash & Cash Equivalents* 29,352 34,587 -5,234 -15% Total Borrowings 124,634 124,666 (31) 0% Stockholders’ Equity 127,594 106,940 20,654 19% Current Ratio 1.24 1.22 - - Debt-to-Equity Ratio** 0.86 1.0
Slide 10: Improved capital efficiency via stretched maturities and lower cost of debt
Improved capital efficiency via stretched maturities, lower cost of debt and managed debt mix As of June 30, 2015 Total Borrowings: Php124.6B, Short-term Php8.0B 9.0% 18 7.9% Short-term Debt Maturity 8.0% 7.3% 16.6 (in Php Billions) 16 7.0% 6.2% Long-term Debt Maturity 14 6.0% 5.3% 5.1% 13.6 13.7 12
Slide 11: Total capex spend reached P41.1b
Total capex spend reached P41.1b 1H 2015 Capex Spend 1H 2015 Capex Breakdown (In Php billions) Others 1H 2015 2% Actual Land Hotels Acquisition Land Acquisition 10.4 1% 25% Residential 21.2 Malls 5.0 Offices Offices 3.3 8% Hotels 0.4 Malls Residential Others 0.8 12% 52% Total 41.1 11
Slide 12: Residential: 1H 2015 Sales take-up 8% higher yoy
Residential: 1H 2015 Sales take-up 8% higher yoy • Average of P8.8b in Sales Take-Up (In Php Bn) 31.2 29.0 27.3 monthly sales 24.2 24.2 23.4 ALP 23.9 22.0 21.3 Alveo • Overseas Filipino Sales : Avida Amaia P10.6b (20% of total BellaVita sales) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2013 2013 2013 2014 2014 2014
Slide 13: Continued build-up of unbooked revenues
Continued build-up of unbooked revenues Unbooked Revenues 133 (in Php Billions) 122 • Unbooked revenues up 9% yoy (P133b vs 99 P120b in 1H 2014) • 2.4x residential 65 revenues in FY2014 (P55.9b) 48 19 12 2009 2010 2011 2012 2013 2014 1H 2015 13
Slide 14: Key Residential Updates
Key Residential Updates The Enclaves (May 2015) North Point Bacolod 131 units, P414m, 73% cum. take-up West Gallery Place (June 2015) RioMonte (May 2015) BGC Taguig Nuvali Laguna 420 units, P10.3b, 13% cum. take-up 345 units, P3,2b 75% cum. take-up 14
Slide 15: Key Residential Updates
Key Residential Updates Mondia (June 2015) Montala (June 2015) Nuvali Laguna Alviera Porac 642 units, P3.7b 784 units, P3.2b 20% cum. take-up 22% cum. take-up 15
Slide 16: Key Residential Updates
Key Residential Updates Avida Settings Alviera (Dec 2014) Atria – Tower 2 (May 2015) Alviera, Porac Pampanga Atria Park District Iloilo 532 units, P1.1b, 80% cum. take-up 321 units, P949m, 31% cum. take-up 16
Slide 17: Key Residential Updates
Key Residential Updates Scapes Gen. Trias S2 (April 2015) Gen. Trias Cavite 366 units, P650m, 20% cum. take-up Cagayan de Oro (May 2015) Cagayan de Oro 482 units, P220m, 35% cum. take-up Scapes Cam Sur 1 B1 (April 2015) Camarines Sur 205 units, P430m, 70% cum. take-up 17
Slide 18: Shopping Centers: GLA up 2% yoy
Shopping Centers: GLA up 2% yoy Key mall space completed in 1H 2015: 43k GLA • Total Malls GLA: 1.37m sqm (vs. 1.34m sqm. in 1H2014) • Serin Tagaytay – 11k • UP Town Center - 16k • Solenad – 8k • Atria - 8k Ayala Malls Serin Tagaytay (11,000 GLA) • Ave. Occupancy Rate: 95% (vs. 93% in 1H 2014) • Ave
Slide 19: Shopping Centers Update
Shopping Centers Update Key Launches in 2Q 2015 : 9k GLA Under Construction: 606k GLA Completion Mall GLA (in k sqm) 2015 Solenad Nuvali 28 (75k) Circuit Lane Makati 11 Lio Palawan 3 Iloilo Riverside 1 Legaspi 18 Antipolo 13 2016 Vertis North QC 47 (195k) Southpark Alabang 47 Solenad 3 (DS) 13 Iloil
Slide 20: Offices: GLA up 9% yoy
Offices: GLA up 9% yoy Additional office space in 1H 2015: 53k GLA • Total Office GLA: 633k sqm (vs. 580k in 1H 2014) • McKinley Exchange (10k) • Fairview Terraces (10k) • Cebu eBloc (15k) • Aegis (18k) • Ave. Occupancy Rate: 92% (vs. 91% in 1H 2014) Aegis People Support Cebu IT Park, Lahug • Ave. B
Slide 21: Offices Update
Offices Update Completion Office GLA (in k sqm) 2015 Boni Stopover 35 Key Launches: 56k GLA (106k) BGC Corp Center 27 ATC BPO 18 eBloc 4 16 UP Bldg P 10 2016 MBS (Paradigm) 47 (198k) Vertis 1 41 PSE at BGC 29 ACC Cebu BPO 29 Circuit 2 25 Southpark BPO 21 UPIS 6 2017 Circuit 45 (167k) Vertis 2 42 Cit
Slide 22: Hotels and Resorts: 2,172 rooms in operation
Hotels and Resorts: 2,172 rooms in operation Opening in 2015: 152 Rooms 1H 2015 Hotels Resorts No. of rooms Branded: 1,294 El Nido Resorts: in operation Seda: 665 213 Revpar/night P3,954 P8,620 (up 4%) (up 8%) Average P5,394 P13,198 room rate (up 1%) (down 12 %) Average 73% 65% occupancy (up 2 pts)
Slide 23: Hotels and Resorts Update
Hotels and Resorts Update Key Launches: 275 Rooms Under Construction: 2,541 Rooms Completion Hotel No. of Rooms 2015 Seda Iloilo 152 2016 Seda Bacolod 155 Mandarin 2017 Seda Vertis North 438 Hotel Seda Lio 153 2018 Seda Circuit 255 Seda Arca South 265 Seda CITP 214 Seda BGC Expansion 341 2019 Seda G
Slide 24: Key Messages
Key Messages 1. Net income grew at a steady pace of 19% to P8.4b 2. Revenues increased 10% to P50.6b driven by the sustained momentum of the core real estate businesses which grew 16% before intercompany adjustments 3. Margins improved across various product lines 4. Balance Sheet remained solid in
Slide 25: 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