Ayala Land Inc. · PSE:ALI
Ayala Land — Morgan Stanley APAC Summit 2023
30 slides from Ayala Land's conference presentation, Nov 13, 2023
Slide 1: Morgan Stanley APAC Summit Investor Deck
Morgan Stanley APAC Summit Investor Deck November 2023
Slide 2: Contents
Contents • Company Background • 9M23 Performance 2
Slide 3: Our Mission-Vision and Strategy
Our Mission-Vision Enhancing land and enriching lives for more Filipinos Our Strategy We develop estates in key growth centers across the country to create sustainable communities and provide platforms for our residential, malls, offices, hotels, resorts, and logistics businesses to achieve market l
Slide 4: Ayala Land: 35 years of creating sustainable communities
Ayala Land: 35 years of creating sustainable communities 50 ESTATES ALI is incorporated Mixed-use Estates Launched (2010-2022) In 35 years Forbes Park and ALI is listed NUVALI is Makati CBD is launched • Broadfield developed • Arca South • Cresendo • Altaraza • Centrio • Batangas • The Junction • Al
Slide 5: Diversified product offerings across the real estate sector
Diversified product offerings that capture opportunities across the real estate sector and mitigate risks Tower One Glorietta is ALI launches is completed UP Technohub established Market! Market! at the 1st REIT is completed BGC opens Seda Hotel brand is ALI acquires established El Nido Resorts Trin
Slide 6: Largest and most established property developer in the Philippines
Ayala Land is the largest and most established property developer in the Philippines • Incorporated in 1988, publicly listed in July 1991 • 51.0% owned by Ayala Corporation Revenues and Total Assets (in Php Billions) Revenues Total Assets 783 721 745 714 669 574 536 142 166 169 125 106 127 96 2016 2
Slide 7: Solid nationwide presence with a land bank of 12,273 hectares
Solid nationwide presence with a land bank of 12,273 hectares Present in 57 growth centers across the Philippines Tuguegarao Baguio Pangasinan Gross Land Bank (in hectares) Tarlac Cabanatuan Pampanga SJDM Anvaya, Bataan Bulacan 12,192 12,483 12,498 12,273 Cavite Metro Manila 11,624 Laguna Rizal Luce
Slide 8: Well-diversified portfolio to capitalize on opportunities and mitigate risks
Well-diversified portfolio provides the advantage to capitalize on various opportunities and mitigate risks Estate Property Commercial Service Strategic Development Development Leasing Businesses Investments 50 Estates across the 5 Residential Brands Malls Construction Philippines Philippines • Ayal
Slide 9: A highly trusted Brand
A highly trusted Brand #1 #2 Mixed-Use Estates, Malls GLA size and location #1 #1 Residential Offices GLA Development #1 #3 Industrial Estate Hotel Development Rooms 9
Slide 10: Government remains optimistic of long-term growth
Government remains optimistic of long-term growth despite near-term macroeconomic headwinds FY 2023 GDP Forecast S&P 5.2% IMF 5.3% Moody’s 5.4% World Bank 5.6% ADB 5.7% Fitch 5.7% BSP 6.0% - 7.0% Actual 3Q 2023 5.9% 9M 2023 5.5% FY 2022 7.6% 10
Slide 11: Long-term growth drivers support our business segments
Long-term growth drivers are in place to support our various business segments Strong Household Consumption (As a % to GDP) o 73.1% as of FY 2022 Business Monitor International (BMI ▪ 2019 – 72.4% Research) of Fitch Solutions projects PH GDP to reach US$2.3 trillion by 2050, 18th ▪ 2020 – 73.6% larg
Slide 12: A young population driving housing demand
A young population driving housing demand • The PH (115M) has the second largest population in the ASEAN, which grew at a 1.5% CAGR in 2015-2020; youngest among peers with a median age of 24 years. • By FY30E, the population is expected to grow to 125M, with median age still in the 25–29-year age gr
Slide 13: Growing middle class, favorable demographics and young population
A growing middle class, favorable demographics and a young population will support growth Income Classes based on 25M Households Size Range Condominium Lots/ H&L Segment (in sqm) Price Price 2015 2018 Luxury Lots: 450-1,400 P31 – 246.5M P24.8 - 77M Condos: 62-493 (US$554k-4.4M) (US$442k – A-AAA (2%)
Slide 14: Our diversified portfolio will drive long-term shareholder value
Our diversified portfolio will drive long-term shareholder value 12K+ HA OF LANDBANK 50 32 INTEGRATED 2 TOURISM ESTATES 5 COMMERCIAL ESTATES MIXED-USE ESTATES ESTATES 5 RESIDENTIAL ESTATES 6 INDUSTRIAL ESTATES BALANCED AND COMPLEMENTARY BUSINESSES: Property Development, Commercial Leasing, Services
Slide 15: ESG practices are embedded in our business model
ESG practices are embedded in our business model AYALA LAND’S FOUR SUSTAINABILITY FOCUS AREAS 1 Site 2 Pedestrian 3 Resource 4 Local Economic Resilience Mobility, Transit Efficiency Development Connectivity Environmental Social Governance • Reduced and offset 85% of Scopes • Supported 1600 Social En
Slide 16: Solid performance in 2022
Solid performance in 2022 NET INCOME Property 2020 2021 2022 Development +52% Revenues (Php B) Growth 66.6 75.9 +14% 81.2 +7% 20 +40% 18.6 Residential Sales > Launches 12.2 18 16 14 (Php B) 2020 2021 2022 12 10 8.7 Launched Projects (Php B) 10.6 75.3 91.4 8 Sales Reservations (Php B) 81.9 92.2 104.9
Slide 17: Contents
Contents • Company Background • 9M23 Performance 17
Slide 18: Ayala Land 9M 2023 Performance Highlights
Ayala Land 9M 2023 Performance Highlights TOTAL REVENUES NET INCOME CAPEX NET GEARING P98.9B +15% P18.4B +38% P57.6B 0.75:1 Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING P57.2B +4% P30.8B +32% 57.2 RESIDENTIAL SHOPPING CENTERS 55.2 P47.5B +4% P15.7B +40% RESERVATION SALES 30.8 OFFICES P85
Slide 19: Total revenues of P98.9B +15%; net income of P18.4B +38%
Total revenues of P98.9B +15%; net income of P18.4B +38% INCOME STATEMENT 9M 2023 9M 2022 Change % (in Php millions) Total Revenues 98,916 86,311 12,605 15% GAE RATIO Real Estate 96,277 84,203 12,074 14% 6.3% Interest and Other Income 2,640 2,108 532 25% 5.9% in 9M 2022 Equity in Net Earnings of Ass
Slide 20: Steady residential bookings and vibrant commercial activity fueled higher revenues
Steady residential bookings and vibrant commercial activity fueled higher revenues REVENUE BREAKDOWN 9M 2023 9M 2022 Change % (in Php millions) Property Development 57,241 55,249 1,993 4% Residential 47,533 45,580 1,953 4% Steady bookings and higher project completions Office for Sale 2,798 2,130 66
Slide 21: Residential Brands: 9M23 sales of P85.9B +11%
Residential Brands: 9M23 sales of P85.9B +11% RESERVATION SALES (in Php Billions) 9M23 LAUNCHES 30.6 11 projects (P36.3B) 28.0 27.6 27.7 27.6 3Q23: 5 projects (P4.3B) 24.1 25.2 ALP 21.8 22.1 Alveo PRODUCT BREAKDOWN 71% Vertical Avida 29% Horizontal Amaia Bellavita 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q
Slide 22: New Estates: Southmont
New Estates: Southmont Southmont Silang, Cavite | 789 hectares “Elevated Modern Suburb” • Key features: o Direct access to CALAX through Silang East Interchange o 3-ha Sports Club o Chiang Kai Shek College • P12B project cost • Build out o 69% Residential o 11% Commercial o 20% Institutional, common
Slide 23: Malls: Improving occupancy and higher rents boosted revenues
Malls: Improving occupancy and higher rents boosted revenues MALL PORTFOLIO Openings (4Q 2023) 2.1M sqm GLA ONE AYALA 32 Malls, 63 Amenity Retail 44K GLA Makati CBD OCCUPANCY 84% LEASE OUT RATE 91% PIPELINE 243K GLA AYALA MALLS VERMOSA 5K GLA (Ph1) Imus, Cavite 43K GLA Total 23
Slide 24: Offices: Stable occupancy and higher rents
Offices: Stable occupancy and higher rents Openings (4Q 2023) OFFICE PORTFOLIO 1.4M sqm ONE AYALA 65 BPOs, 6 HQs SOUTH TOWER 12K GLA OCCUPANCY Makati CBD 89% MIX Vacant 11% Co-Working 3% POGO 2% HQ BPO 11% 73% PIPELINE 215K GLA 24
Slide 25: Hotels-Resorts: Higher occupancy and room rates
Hotels-Resorts: Higher occupancy and room rates Newly Opened 9M 2023 Hotels Resorts SEDA MANILA TOTAL Branded: 660 El Nido: 193 BAY ROOMS Seda: 3,122 Lio B&Bs: 50 (3Q 2023) Bay Area, 4,358 Circuit: 255 Sicogon B&Bs: 78 Paranaque City AVERAGE 230 (of 350) rooms OCCUPANCY 67% (+11 pt) 42% (+14 pt) PIP
Slide 26: Ancillary formats strengthen the leasing portfolio
Ancillary formats strengthen the leasing portfolio (FACTORY BUILDINGS and WAREHOUSES) 309Ksqm GLA 2,032 Beds 1,411 Seats ALogis Calamba – 93,794 Amorsolo 196 rooms, 728 beds 6,473 sqm of GLA Laguna Technopark - 102,458 BGC 5th Avenue 375 rooms, 1,244 beds Cavite Technopark – 17,811 Sacred Heart 32 r
Slide 27: Capex spend of P57.6B
Capex spend of P57.6B CAPEX BREAKDOWN 9M 2023 (in Php billions) Actual Residential 31.2 Others Malls 2.1 Estate 2% Offices 1.9 Development Hotels and Resorts 0.8 17% Land Acquisition 10.4 Estate Development 10.0 Others 1.2 Total 57.6 Land Acquisition P57.6B Residential 54% HISTORICAL CAPEX 18% 110 1
Slide 28: Well-managed debt with 93% contracted long-term, 84% fixed
Well-managed debt with 93% contracted long-term, 84% fixed; average borrowing cost of 4.9%, maturity of 4.6 years Total Borrowings: Php248.9B: Short-term Php16.9B (5%), Long-term Php232.0B (95%), Average Maturity 4.6 years Long-term Debt Maturity (in Php Billions) Short-term Debt Maturity (in Php Bi
Slide 29: A strong balance sheet with a net gearing ratio of 0.75:1
A strong balance sheet with a net gearing ratio of 0.75:1 Balance Sheet September December (in Php Millions) 2023 2022 Cash & Cash Equivalents 12,181 12,508 Total Borrowings 248,908 236,039 Stockholders’ Equity 313,872 293,665 Current Ratio 1.78 1.78 Debt-to-Equity Ratio 0.79 0.80 Net Debt-to-Equity
Slide 30: Investor Relations
Investor Relations Website ir.ayalaland.com.ph Email investorrelations@ayalaland.com.ph Scan the QR code to join the IR mailing list