Ayala Land Inc. · PSE:ALI
Ayala Land — Morgan Stanley Asia Pacific Summit 2022
32 slides from Ayala Land's conference presentation, Nov 14, 2022
Slide 1: 9M22 Investor Deck
9M22 Investor Deck Morgan Stanley Asia Pacific Summit 16 – 17 Nov 2022
Slide 2: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 3: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 4: Peaceful elections completed; the new administration received an unprecedented mandate
Peaceful elections completed; the new administration received an unprecedented mandate from the majority Vice President DOF Sara Duterte Ben Diokno Senate President BSP Miguel Zubiri Felipe Medalla Congress NEDA Martin Romualdez Arsenio Balisacan
Slide 5: Marcos Administration's 8-point Agenda
Marcos Administration’s 8-point Agenda PROTECT PURCHASING POWER REDUCE VULNERABILITY AND ENSURE SOUND MACROECONOMIC 1 AND MITIGATE SOCIOECONOMIC 2 MITIGATE SCARRING FROM THE 3 FUNDAMENTALS SCARRING COVID-19 PANDEMIC A. ENSURE FOOD SECURITY A. TACKLE HEALTH A. ENHANCE BUREAUCRATIC B. REDUCE TRANSPORT
Slide 6: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 7: Improving health conditions and economic drivers provide a smoother path to recovery
Improving health conditions and economic drivers provide a smoother path to recovery COVID 20K PEAK DAILY CASES 150-305 PH ELIGIBLE POPULATION: 93% FULLY VACCINATED 7
Slide 8: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 9: Ayala Land 9M 2022 Performance Highlights
Ayala Land 9M 2022 Performance Highlights TOTAL REVENUES NET INCOME CAPEX NET GEARING 9M P86.3B +19% 9M P13.3B +55% P44.7B 0.76:1 3Q P33.0B +39% 3Q P5.3B +107% +15% vs 2Q22 +7% vs 2Q22 Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING 9M P55.2B +7% 9M P23.3B +64% 3Q P21.1B +21% 3Q P8.7B +83%
Slide 10: Commercial lot sales, residential construction progress and leasing recovery boosted operations
Commercial lot sales, residential construction progress and the recovery in commercial leasing activity boosted operations REVENUE BREAKDOWN 9M 2022 9M 2021 Change % (in Php millions) Property Development 55,249 51,520 3,729 7% Residential 45,580 44,475 1,106 2% Higher incremental POC Office for Sal
Slide 11: 9M22 sales reservations of P77.3B (+10%); 3Q22 at P28.0B (+28%)
9M22 sales reservations of P77.3B (+10%); 3Q22 at P28.0 (+28%) SALES TAKEUP (in Php Billions) SALES 28.5 28.0 RESERVATIONS 24.1 25.2 P8.6B monthly average 22.5 21.1 21.8 22.1 19.7 LAUNCHES 20 projects (P60.0B) 3Q22: 8 projects at P25B Horizontal: 41% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1
Slide 12: Malls: 3Q22 foot traffic at 96%, tenant sales at 90% vs pre-COVID
Malls: 3Q22 foot traffic at 96%, tenant sales at 90% vs pre-COVID TOTAL GLA: 2.1M sqm Newly Completed AVERAGE OCCUPANCY: 80% AVERAGE LEASE OUT: 89% PIPELINE: 286K KEY DATA FY20 FY21 1Q22 2Q22 3Q22 Operating 60% 70% 74% 78% 80% GLA % Pre-COVID Foot Traffic 34% 38% 57% 87% 96% Tenant Sales 50% 54% 61%
Slide 13: Offices: Stable BPO and HQ Tenancy
Offices: Stable BPO and HQ Tenancy Newly Completed TOTAL GLA: 1.36M sqm OCCUPANCY: 84% PIPELINE: 160K 9M 2022 GLA Occupancy Mix Vacant Co-Working 16% 4% POGO 2% HQ BPO 9% 68% ONE AYALA EAST TOWER (March 2022) Makati CBD, 40K GLA 88% leased | PEZA-accredited 13
Slide 14: Hotels-Resorts: Higher room rates boosted performance
Hotels-Resorts: Higher room rates boosted performance Upcoming Opening 9M 2022 Hotels Resorts TOTAL Branded: 660 El Nido: 193 ROOMS Seda: 2,712 Lio B&Bs: 132 4,028 Circuit: 255 Sicogon B&Bs: 76 AVERAGE OCCUPANCY 56% (+6 pt) 28% (+15 pt) PIPELINE: 1,596 rooms SEDA NUVALI EXPANSION (Nov 2022) Nuvali,
Slide 15: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 16: Long-term growth drivers are in place to support our various business segments
Long-term growth drivers are in place to support our various business segments Strong Household Consumption Stable BPO revenues (As a % to GDP) ▪ 2021 Revenues – US$29.5B o 71.6% as of 1H 2022 +10.6%; 1.44M total head count ▪ 2019 – 72.4% ▪ Target is to grow to 2.5M jobs ▪ 2020 – 73.6% in 6 years ▪
Slide 17: A growing middle class, favorable demographics and a young population will support growth
A growing middle class, favorable demographics and a young population will support growth Income Classes based on 25M Households 2015 2018 A-AAA (1%) A-AAA (1%) P120-250K/mo By 2030, the Philippines' middle- B (6%) B (7%) income P50-120K/mo population will grow by 37.5 million – making it C/C- (40%)
Slide 18: Government remains optimistic of long-term growth despite near-term headwinds
Government remains optimistic of long-term growth despite near-term macroeconomic headwinds FY 2022 GDP Forecast New Prior World Bank 5.7% 5.9% ADB 6.0% 6.0% S&P 6.5% 6.5% Moodys 7.2% 6.1% Fitch 7.5% 8.1% BSP 6.5% - 7.5% 7.0% - 8.0% 18
Slide 19: Key Messages
Key Messages 1. The peaceful elections ushered in a new administration with a solid economic recovery and growth agenda. 2. Improving health conditions and the economic reopening boosted mobility and business activity. 3. Strong mall and hotel recovery, resilient office leasing operations, and solid
Slide 20: A strong balance sheet with a net gearing ratio of 0.76:1
A strong balance sheet with a net gearing ratio of 0.76:1 Balance Sheet September December (in Php Millions) 2022 2021 Cash & Cash Equivalents 18,690 14,998 Total Borrowings 235,834 223,097 Stockholders’ Equity 286,278 270,701 Current Ratio 1.89 1.58 Debt-to-Equity Ratio 0.82 0.82 Net Debt-to-Equity
Slide 21: Ayala Land Estates: Solid platform for renewed growth
Ayala Land Estates: Solid platform for renewed growth 12,498 HA OF LANDBANK 47 30 INTEGRATED 2 TOURISM ESTATES 5 COMMERCIAL ESTATES MIXED-USE ESTATES ESTATES 5 RESIDENTIAL ESTATES 5 INDUSTRIAL ESTATES BALANCED AND COMPLEMENTARY BUSINESSES: Property Development, Commercial Leasing, Services and other
Slide 22: ESG practices are embedded in our business model
ESG practices are embedded in our business model 4 SUSTAINABILITY 1 Site 2 Pedestrian 3 Resource 4 Local Economic FOCUS AREAS Resilience Mobility, Transit Efficiency Development Connectivity Environmental Social Governance • Achieved Carbon Neutrality on • Supported 737 Social Enterprises through •
Slide 23: References
REFERENCES
Slide 24: Our Mission-Vision
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 25: Ayala Land: A long history of creating communities
Ayala Land: A long history of creating communities ALI is incorporated Mixed-use Estates Launched (2010-2021) Forbes Park and ALI is listed NUVALI is Makati CBD is launched • Broadfield developed • Arca South • Centrio • Cresendo • Altaraza • The Junction • Alviera • Gatewalk • Abreeza Central Place
Slide 26: Expanding offerings through the years to reach more Filipinos
Expanding offerings through the years to reach more Filipinos Tower One is completed Glorietta is ALI launches established UP Technohub the 1st REIT Market! Market! at is completed BGC opens Seda Hotel brand is ALI acquires established El Nido Resorts Trinoma opens AVIDA ALVEO Amaia BellaVita is ALI
Slide 27: Ayala Land is the 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 • 50.5%* owned by Ayala Corporation Revenues and Total Assets (in Php Billions) Revenues Total Assets 721 745 714 669 574 536 166 169 125 142 96 106 2016 2017 201
Slide 28: Ayala Land is a subsidiary of Ayala Corporation
Ayala Land is a subsidiary of Ayala Corporation Real Estate Financial Services Telecommunications Power 50.5%* 48.6% 30.8% 65.0% The largest and most Pioneering financial Leading digital lifestyle A fast-growing regional established property institution and one of the and content producer, energy pl
Slide 29: Well-diversified portfolio provides the advantage to capitalize on various opportunities
Well-diversified portfolio provides the advantage to capitalize on various opportunities and mitigate risks Estate Property Commercial Service Strategic Development Development Leasing Businesses Investments 47 Estates across the 5 Residential Brands Malls Construction Philippines Philippines • Ayal
Slide 30: Solid nationwide presence with a land bank of 12,498 hectares
Solid nationwide presence with a land bank of 12,498 hectares Present in 57 growth centers across the Philippines Tuguegarao Gross Land Bank (in hectares) Baguio 12,192 12,483 12,498 Pangasinan 11,624 Tarlac Cabanatuan 9,852 10,285 Pampanga SJDM 8,948 Anvaya, Bataan Bulacan Cavite Metro Manila Lagun
Slide 31: 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 31
Slide 32: With its highly-diversified portfolio and strong balance sheet, Ayala Land will capture opportunities
With its highly-diversified portfolio and strong balance sheet, Ayala Land will capture opportunities, manage risks, protect stakeholder value, and deliver long-term earnings growth.