Cebu Landmasters, Inc. · PSE:CLI
Cebu Landmasters — FY2019 Earnings Presentation
54 slides from Cebu Landmasters's earnings presentation, 2020
Slide 1: FY2019 Investors'/Analysts' Briefing
EE CEBULANDMASTERS We Build with You in Mind FY2019 Investors’/Analysts’ Briefing
Slide 2: Key Highlights
KEY HIGHLIGHTS ° Sustained earnings growth momentum, * Consolidated NIAT grew 12% vs FY2018 to P 2.44 Billion ° Parent NIAT grew 21% vs FY2018 to P 2.01 Billion * Strong topline growth across all business segments, revenue surpassed guidance FY2019 and grew 26% to P 8.5 Billion. ° Continued build-up
Slide 3: Key Highlights
KEY HIGHLIGHTS ° Declared PO.25 per share dividends on the back of outstanding financial performance ° P 8 Billion corporate notes in place to fund expansion plans this year. ° Continuous landbank net growth to 1,245,485 sq.m. to support expansion plans, now present in 10 key VisMin cities. * Acquir
Slide 4: Agenda
a=_—,_ CEBULANDMASTERS We Build with You in Mind Agenda O1 FINANCIAL PERFORMANCE O2 PROJECT UPDATES 03 SIGNIFICANT MILESTONES FUTURE EXPANSIONS
Slide 5: Agenda
aa=_—,_ CEBULANDMASTERS We Build with You in Mind Agenda O1 FINANCIAL PERFORMANCE O2 PROJECT UPDATES 03 SIGNIFICANT MILESTONES 04 FUTURE EXPANSIONS
Slide 6: Income statement and margins
P GROSS PROFIT MARGIN Sale of real estates 8,390.5 6,692.5 25% 49% 2019 Rental 63.2 57.5 10% 54% Management fees 36.8 12.9 185% 2018 52% Hotel 8.5 .0 100% 2017 Total Revenues 8,499.0 6,762.9 26% 0% 20% 40% 60% EBITDA MARGIN Cost of Sales (4,300.7) (3,136.1) 37% Gross Profit 4,198.4 3,626.9 16% 2019
Slide 7: Revenue by series and location
• FY2019 revenues driven from Garden Real Estate Revenue 8,390.5 99% 6,692.5 99% 25% Series: MesaVirre Building B & C in Garden Series (Mid) 3,117.9 37% 3,074.7 45% 1% Bacolod; and Velmiro Uptown CDO Premier Series (High-End) 2,541.5 30% 1,284.8 19% 98% Casa Mira (Economic) 2,509.7 30% 1,900.2 28% 3
Slide 8: Continued Build-up of Unrecognized Revenues
CONTINUED BUILD-UP OF UNRECOGNIZED REVENUES DUE TO ROBUST SALES FOR THE YEAR In millions FY 2016 FY 2017 FY 2018 FY 2019 eaa——.__ CEBULANDMASTERS We Build with You in Mind
Slide 9: Location and Market Segment
Location 2017 2018 Segment 32% Cebu 70% 62% Davao 19% 1% CDO 7% 16% Bacolod 3% 11% Dumaguete 0% 9% Mindoro 0% 0% 100% 100% Market 2017 2018 Segment High-end 39% 41% Mid-market 46% 32% Economic 12% 25% Socialized 0% 0% Office Condo 2% 1% 100% 100%
Slide 10: Cash Flow in Line with Natural CLI Real Estate Cycle
CASH FLOW IN LINE WITH NATURAL CLI REAL ESTATE CYCLE Increase in NCF from Investing activities represents build-up of recurring business (Php in millions) FY2019 FY2018 “ovement % Operating Income before Working Capital Changes 3,181.5 2,774.8 15% Changes in working capital! (6,103.3) (7,577.0) 19%
Slide 11: Continuous Build-up of Capital Assets
CONTINUOUS BUILD-UP OF CAPITAL ASSETS 62% SPENT FOR PROJECT DEVELOPMENT In Billions Ds, _l6.2 Zz > Roa Land 19! acquisition | 33% 10.2 ~~ 16.2 Billion 4.8 2 i | 2015 2016 2017 2018 2019 =--—_ CEBULANDMASTERS We Build with You in Mind
Slide 12: Balance sheet and ratios
RETURN ON AVE. ASSET 2019 Cash 917.2 949.2 -32 (3%) 2018 11% Real Estate Inventory 9,447.0 6,256.5 3,190 51% 2017 12% Accounts Receivable 5,876.1 4,039.1 1,837 45% RETURN ON AVE. PARENT EQUITY Contract Asset 8,892.5 5,442.1 3,450 63% 2019 2018 31% Deposits on land for 2017 1,289.4 1,754.8 -465 (27%)
Slide 13: P8 Billion Corporate Notes
P-8BILLION CORPORATE NOTES TO FUND EXPANSION PLANS FOR THE YEAR In millions 5 Years 7 Years 10 Years SeriesD SeriesE Series F Aloenten per 90 bps 95 bps 100 bps Institution Bank of the Philippines Islands - 700 - 700] China Banking Corporation 500 1,500 - 2,000 Development Bank of the Phil. - 2,000
Slide 14: Compelling Shareholder Value
COMPELING SHAREHOLDER VALUE P.0.25 PER SHARE DIVIDENDS DECLARED ON THE BACK OF OUTSTANDING EARNINGS Declaration date: February 19, 2020 Record date: April 3, 2020 Payment date : April 30, 2020 2017 2018 2019 ROE (parent) 40% 31% 29% EPS 0.86 0.98 1.21 Book Value/ share 2.83 3.62 414 Price* /EPS 5.68
Slide 15: Agenda
—__—— CEBULANDMASTERS We Build with You in Mind Agenda O1 FINANCIAL PERFORMANCE O2 PROJECT UPDATES 03 SIGNIFICANT MILESTONES 04 FUTURE EXPANSIONS
Slide 16: Key Project Launches in 2019
KEY PROJECT LAUNCHES IN 2019 5,750 NEW INVENTORY WORTH 18 BILLION
Slide 17: Key Project Launches in 2019
KEY PROJECT LAUNCHES IN 2019 5,750 NEW INVENTORY WORTH 18 BILLION
Slide 18: Key Project Launches in 2019
KEY PROJECT LAUNCHES IN 2019 5,750 NEW INVENTORY WORTH 18 BILLION
Slide 19: Key Project Launches in 2019
KEY PROJECT LAUNCHES IN 2019 5,750 NEW INVENTORY WORTH 18 BILLION
Slide 20: Growing Leasing Portfolio
GROWING LEASING PORTFOLIO COMPLETED 5,300 SQM OF NEW GLA Retail Office Occupancy : INSQ.M 2017 2018 2019 aE—__, LANDMASTERS We Build with You in Mind
Slide 21: High Quality Office and Retail Tenants
HIGH QUALITY OFFICE AND RETAIL TENANTS
Slide 22: Growing Hotel Portfolio
GROWING HOTEL PORTFOLIO 1,100++ ROOMS IN THE PIPELINE Started to contribute to revenue with the completion of Citadines Cebu city Se ap bby vs a | ay L _—_ a oi SI ee Laut, » yf citavines CITADINES RADISSON RED P, GON DAVAO D CITY CEBU D ) 146 hotel rooms 263 hotel rooms CITADINES CEBU CITY I = CEBU
Slide 23: Hotel Key Metrics
KEY METRICS Feb-20 Ascott's Property Ratings 92.63 Ranked 3rd Worldwide Trip Advisor Popularity Index 5.0 of 115 hotels in Cebu City Booking.com 9.5 highest rating among direct competitors Google Customer Satisfaction 4.8 out of 35 reviews Agoda 9.3 based on 136 reviews
Slide 24: Ongoing Construction
ONGOING CONSTRUCTION CEBU CITADINES CEBU CITY = | 4 MALL AND 2 ¥ BASELINE HQ 7\ BASE LINE BASE LINE CENTER ONE ASTRA PLACE Residential: 100% SOLD Residential Tower 1: 95.4% Office: 94.44% a. CEBULANDMASTERS We Build with You in Mind
Slide 25: Ongoing Construction
ONGOING CONSTRUCTION CEBU 38 PARK AVENUE LATITUDE CORPORATE CENTER Residential: 98.5% SOLD Office Units: 100% SOLD CEBULANDMASTERS We Build with You in Mind
Slide 26: Ongoing Construction
ONGOING CONSTRUCTION CEBU TT MIVELA GARDEN RESIDENCES MIVESA GARDEN RESIDENCES PHASE 3 71: 360 UNITS | 82% SOLD Residential: 100% SOLD T2: 480 UNITS | 80% SOLD T3: 360 UNITS | 82% SOLD T4: 336 UNITS | 17% SOLD > CEBULANDMASTERS We Build with You in Mind
Slide 27: Ongoing Construction
ONGOING CONSTRUCTION CEBU CASA MIRA TOWERS LABANGON CASA MIRA TOWERS GUADALUPE Residential: 99.56% SOLD Residential Tower 1: 100% SOLD a_—.__ CEBULANDMASTERS We Build with You in Mind
Slide 28: Ongoing Construction
ONGOING CONSTRUCTION CEBU CASA MIRA SOUTH Residential: 94% SOLD. aaa, _ 3ULANDMASTERS We Build with You in Mind
Slide 29: Ongoing Construction
ONGOING CONSTRUCTION DUMAGUETE CASA MIRA COAST Residential: 100% SOLD aa_—._ CEBULANDMASTERS We Build with You in Mind
Slide 30: Ongoing Construction
ONGOING CONSTRUCTION BACOLOD MESAVIRRE GARDEN RESIDENCES VELMIRO PLAINS BACOLOD Residential: 14% SOLD Building A - 100% SOLD Building B - 100% SOLD Building C - 75% SOLD -EBULANDMASTERS We Build with You in Mind
Slide 31: Ongoing Construction
ONGOING CONSTRUCTION DAVAO THE PARAGON DAVAO Residential: 86% sold Hotel: 45% sold MESATIERRA GARDEN RESIDENCES Residential: 97% SOLD aaa, _ 3ULANDMASTERS We Build with You in Mind DAVAO GLOBAL TOWNSHIP
Slide 32: Agenda
aa=_—,_ CEBULANDMASTERS We Build with You in Mind Agenda O1 FINANCIAL PERFORMANCE O2 PROJECT UPDATES 03 SIGNIFICANT MILESTONES 04 FUTURE EXPANSIONS
Slide 33: CLI Awarded as Best Developer in the Philippines in 2019
CLI AWARDED AS BEST DEVELOPER IN THE PHILIPPINES IN 2019 Gamudicomph Guru PHILIPPINES PROPERTY BEST DEVELOPER CS = é JY IN THE PHILIPPINES 2019 & W I N N E R yy a BEST DEVELOPER CEBULANDMASTERS OF THE YEAR We Build with You in Mind VISAYAS AND MINDANAO PHILIPPINE BUYERS’ CHOICE PROPERTY AWARDS WD. C
Slide 34: Davao Global Township development
22- hectare township development with Residential Condominiums, Lifestyle malls, Retail strios and Premier office buildings aaa, _ 3ULANDMASTERS We Build with You in Mind
Slide 35: Purchased 18,413 sqm Beachfront Property in Mactan
PURCHASED 18,413 SQM BEACHFRONT PROPERTY IN MACTAN, CEBU Property will be developed into South Mactan’s newest resort destination with a 4-star branded hotel, beach condominiums and a beach club. CEBULANDMASTERS We Build with You in Mind
Slide 36: Purchase of Abaca Resort Mactan
PURCHASE OF ABACA RESORT MACTAN From a 9-room all-suite boutique resort, the 4,528 sqm Abaca Resort Mactan will be expanded into 125-room luxury resort develooment. aa, LANDMASTERS We Build with You in Mind
Slide 37: Citadines Cebu City
Citadines ae Cebu City THE RESIDENCE *CURRENTLY OPERATING 150 ROOMS CEBULANDMASTERS We Build with You in Mind
Slide 38: Cebu Homegrown Developers joint venture
CEBU HOMEGROWN DEVELOPERS, INC. Development of a mid-market, mixed-use, multi-tower condominium project in Mandaue City, Cebu | CLI to be the project manager JOINT VENTURE AGREEMENT SIGNING CEREMONY AboitizLand Toners MASTERS Aboitizianc Than e min onlinldy FRANCO SOBI JOSE SOBERANO I ~~~aaaemmmf FR
Slide 39: Miwela Garden Residences
MIWELA Garden Residences Fastest selling project in Cebu | 5.3 Billion worth project | 1536 units Sold 80% one month after launch | Immediately broke ground in October 2019 to start construction CEBULANDMASTERS We Build with You in Mind
Slide 40: CLI Expands Footprint in Iloilo
CLI EXPANDS FOOTPRINT IN ILOILO PARTNERS WITH IBC 1st project of the joint venture is a residential tower IBC is the developer of GT town center mall a JOINT VENTURE JOINT VENTURE AGREEMENT SIGNING EEMENT SIGNING —_—__ ILOILO RESIDENTIAL OILO RESIDENTIAL cEBUL AND TOWER TOWER MA RS CEBULANDMASTERS W
Slide 41: Iconic Building to Rise in Cebu Business Park
ICONIC BUILDING TO RISE IN CEBU BUSINESS PARK 5-STAR HOTEL, PREMIUM OFFICE BUILDING AND RETAIL SPACES = 43 year lease contract to build the mixed-use development " To be designed by world renowned architect, SOM (Burj > — Khalifa in Dubai, One World Trade Center in NY, etc.) -EBULANDMASTERS We Build
Slide 42: The Leading Residential Developer in VisMin
—E_,_ CEBULAND MASTERS We Build with You in Mind The Leading Residential Developer in VisMin 58 DEVELOPMENTS 27 PIPELINE PROJECTS 12 KEY CITIES 2019 Real Estate Market Study The study covers 10 key cities including both national and local deveopers in VisMin areas. owe’ Cebu Landmasters Residential
Slide 43: Agenda
—__— CEBULANDMASTERS We Build with You in Mind Agenda O1 FINANCIAL PERFORMANCE O2 PROJECT UPDATES 03 SIGNIFICANT MILESTONES 04 FUTURE EXPANSIONS
Slide 44: Landbank acquired and developed
Acquired 548,666 sq. m. Developed 218,385 sq. m. Ormoc Bohol 915,204 Mactan 859,882 Mandaue Dumaguete 420,278 CDO 361,537 Iloilo Bacolod Davao Cebu 2015 2016 2017 2018 2019* 2019
Slide 45: 28 Pipeline Projects, 30 Billion Worth of New Launches
28 PIPELINE PROJECTS 30 BILLION WORTH OF NEW LAUNCHES
Slide 46: Future Expansions to Strengthen VisMin Leadership
FUTURE EXPANSIONS TO STRENGTHEN VISMIN LEADERSHIP CMT Lyceum Casa Mira Iloilo DGT Condo Ph1 Velmiro Greens Bohol 38 Park Avenue T2 Casa Mira Dumaguete CM Towers Guadalupe Ph2 CM Towers Guadalupe Ph3 Casa Mira South Ph4 Iloilo Condo (GGTT JV) Casa Mira Linao Ph3 BL Ramos Ranudo Condo Velmiro Heights
Slide 47: In Summary
IN SUMMARY ° Sustained earnings growth momentum, * Consolidated NIAT grew 12% vs FY2018 to P 2.44 Billion ° Parent NIAT grew 21% vs FY2018 to P 2.01 Billion * Strong topline growth across all business segments, revenue surpassed guidance FY2019 and grew 26% to P 8.5 Billion. ° Continued build-up of
Slide 48: In Summary
IN SUMMARY ° Declared PO.25 per share dividends on the back of outstanding financial performance ° P 8 Billion corporate notes in place to fund expansion plans this year. ° Continuous landbank net growth to 1,245,485 sq.m. to support expansion plans, now present in 10 key VisMin cities. * Acquired -
Slide 49: Thank you!
aa=_—,_ CEBULANDMASTERS We Build with You in Mind Thank you! be AERA) ee)
Slide 50: Q&A
CEBULANDMASTERS We Build with You in Mind Q&A NN
Slide 51: Annex
CEBULANDMASTERS We Build with You in Mind Annex
Slide 52: CLI Well-Positioned to Emerge Strongly from COVID-19 Situation
CLI WELL-POSITIONED TO EMERGE STRONGLY _— > — FROM COVID-19 SITUATION CEBULANDMASTERS We Build with You in Mind Ql: Were CLI operations in VisMin been affected by COVID-19? We follow the guidelines set by the local government units. We try to manage by allowing our employees to work from home, condu
Slide 53: CLI Well-Positioned to Emerge Strongly from COVID-19 Situation
CLI WELL-POSITIONED TO EMERGE STRONGLY FROM COVID-19 SITUATION Q5:Will raising additional funds likely be necessary to weather the crisis? CLI was able to raise P8bn in Corporate notes. We were over-subscribed at the lowest end of the spreads, indicating strong confidence from our banking partners.
Slide 54: EE
EE CEBULANDMASTERS We Build with You in Mind