Investor Presentation

October 2014

Key Messages
Ayala Land is in a strong position to benefit from the Philippine growth story,
with major businesses aligned with key drivers of the economy.
We are the most diversified property conglomerate with a solid track record
in developing large scale, integrated, mixed-use and sustainable communities.

A trusted developer with a nationwide footprint, diversified product

offerings across different market segments, and a strategic and valuable
land bank

Executing well on a clear and aggressive growth strategy

Delivering solid operating and financial performance

Riding on a more sustainable Philippine economy

PH Real GDP Growth Rate

Debt-to-GDP
54.8%

7.6%

6.8%

7.2%

6.4%

52.4%
51.0%

51.5%

3.7%

2010

49.2%

2011

2012

2013

Q2 2014

2010

2013

Q1 2014

4.9%

4.6%
3.8%

$75.3b

2011

2012

Gross International Reserves

Inflation Rate

2010

2011

3.2%

3.0%

2012

2013

$83.8b

$83.2b

$80.6b

2012

2013

Jul-14

$62.4b

Jul-14

2010

2011

Source: BSP, Trading Economics

Businesses aligned with key economic drivers

Household Consumption Growth

Overseas Filipino Remittances

6.6%
5.7%

5.7%

5.8%
$19b

$21b

$20b

$23b

$24b (F)

3.4%
$11.4b
(H1)
2010

2011

2012

2013

Q1 2014

2010

2011

BPO Revenues

2012

2013

2014

Tourist Arrivals
$18b (F)

6m (F)

$16b
$13b
$11b

3.5m

$9b

3.9m

4.3m

4.7m

2.4m
(H1)
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Source: BSP, BPAP, NSCB, Dept of Tourism

Key Messages
Ayala Land is in a strong position to benefit from the Philippine growth story,
with major businesses aligned with key drivers of the economy.
We are the most diversified property conglomerate with a solid track record
in developing large scale, integrated, mixed-use and sustainable communities.

A trusted developer with a nationwide footprint, diversified product

offerings across different market segments, and a strategic and valuable
land bank

Executing well on a clear and aggressive growth strategy

Delivering solid operating and financial performance

Ayala Land: The leading and most diversified property

developer in the Philippines

Incorporated in 1988 as a subsidiary of Ayala Corp, the oldest

business house in the Philippines.
Publicly listed in July 1991
Central
Luzon

Key Shareholders
48.9%
Public

Bicol
Region

Southern
Tagalog

51.1%

Western
Visayas

(Foreign:23%)

Market Cap (as of 29Aug2014)

P375B
P233B

CAR

P468B

Eastern
Visayas

Central
Visayas

P351B

P215B

Northern
Mindana
o
Southern

P159B

Mindanao
2009

2010

2011

2012

2013

Aug-14

Nationwide development footprint

6

Solid track record in developing large scale, integrated

and mixed-use estates
Makati

Cebu

Bonifacio Global City

Nuvali

1960

1990

2000

2006

Today

Today

Today

Today

5-yr Capex: P125b*

5-yr Capex: P25b

5-yr Capex: P66b

5-yr Capex: P51b

*Makati capex includes Circuit - P42B

Expanding presence in new estates: Metro Manila

Makati (21 has.)

Taguig (74 has.)

Quezon City (29 has.)

Alabang (6.6 has.)

Entertainment District

Gateway of the South

City Center of QC

Convergence in the South

GFA build out: 1.3m

sqm.
Residential: 66%
Office and retail:
25%
Hotel and others: 9%

GFA build out: 3.6m

Residential: 31%
Office and retail:
26%
Other Commercial:
43%

GFA build out: 1.8m sqm

Residential :36%
Office and retail: 55%
Hotels and others:
9%

GFA build out: 339k sqm

Residential 62%
Office and retail:
31%
Others: 7%

5-year Capex: P42.5b

5-year Capex: P80b

5-year Capex : P32b

5-year Capex: P7b

Expanding presence in new estates: North Luzon

Bulacan (98 has.)

Pampanga (1,025 has.)

Vibrant City Living

Corridor to the North

GFA build out: 768k sqm.

Residential: 22%
Retail: 13%
Other Commercial : 65%

GFA build out: 639 has.

Residential: 87%
Office and retail: 3%
Others: 10%

5-year Capex: P6.8b

5-year Capex: P5.2b

Expanding presence in new estates: VisMin

Negros Occidental
(215 has.)

Iloilo
(21 has.)

Cagayan De Oro
(31 has.)

Davao
(10.1 has.)

Quality Living

Emerging Business
District

Commercial District

Commercial District

GFA build out: 942k

sqm.
Residential : 93%
Office and Retail: 6%
Other Commercial:
1%
5-year Capex: P6.4b

GFA build out: 287k

sqm
Residential 38%
Office and Retail:
52%
Hotel, Hospital and
Others: 10%
5-year Capex: P7.5b

GFA build out: 109k

sqm
Residential: 19%
Office and Retail:
71%
Hotel: 10%
5-year Capex: P344m

GFA build out: 173k

sqm
Residential: 34%
Office and Retail:
59%
Hotel: 7%
5-year Capex: P6b

10

Balanced and complementary businesses

Property
Development

Commercial
Leasing

Hotels and
Resorts

Services

Residential
5 brands serving
different income
segments

Shopping Centers
43 shopping centers
1.3m GLA
93% occupancy

Hotels
Branded (1,294 rooms)

Construction
175 projects
P75b net order
book (98% ALI, 2% 3rd

Offices
5 HQ (72k GLA)
37 BPO (509k GLA)
91% occupancy
95% leased

Seda (665 rooms)

(Intercon, Marriott,
Raffles, Holiday Inn)

party)

Commercial/
Industrial Lots
Arca South (8.8
has.)
Nuvali (200 has.)
Laguna Technopark
(389 has.)

(BGC, Centrio, Abreeza,

Nuvali)

Resorts
El Nido (203 rooms)

(Apulit, Miniloc, Lagen

and Pangalusian)

Property
Management
271 Facilities
P1.6b outstanding
contract value
(97% ALI, 3% 3rd party)

11

Key Messages
Ayala Land is in a strong position to benefit from the Philippine growth story,
with major businesses aligned with key drivers of the economy.
We are the most diversified property conglomerate with a solid track record
in developing large scale, integrated, mixed-use and sustainable communities.

A trusted developer with a nationwide footprint, diversified product

offerings across different market segments, and a strategic and valuable
land bank

Executing well on a clear and aggressive growth strategy

Delivering solid operating and financial performance

12

Expanding geographic presence to address new markets

34%

27%

24%

22%

19%

Other Vismin
Other Luzon

34%

Other MM
FTI
Manila
Vertis
Cebu
Alabang
BGC
Nuvali
Makati

2009

2010

2011

2012

2013

H1 2014

Net Income contribution per location

13

Wide product offering to address a broader market

New Income Pyramid:Middle class (B to C+) benefiting the most
(up from 11% to 16% of population)
Philippine Households by Income Class
(Total of 21.4m)

Class

Monthly
Income

HH%

# of HH

AAA

250K up

0.1%

18 K

AA
A

180K - 250K
120K - 180K

0.1%
0.5%

29 K
98 K

50K - 120K

5.7%

1,217 K

C+

30K - 50K

10.6%

2,281 K

C/C-

15K - 30K

25.2%

5,936 K

DE

15K below

57.8%

12,387 K

Source: NSO FIES 2012, ALI Corplan Analysis

3.9M current housing backlog

Annual supply of 200K units vs. annual demand of 345K units
(HUDCC estimates from 2012-2030)

Similar strategy is being adopted by all other business lines

14

Diversified income sources to achieve balanced growth

36%

43%

]
]

44%
39%
45%

Services
Hotels & Resorts
Office

40%

Malls
Comm'l / Ind'l Lots
Bellavita
Amaia
Avida
Alveo
ALP

2009

2010

2011

2012

2013

H1 2014

*Target is to increase the recurring income contribution to 50%

15

Strategic and valuable land bank

8,453 hectares of developable landbank
across the country
Positioned near infrastructure projects and
targeted at key growth centers
Acquired mostly through asset-light modes
Concentrated in 31 growth centers
8,453
Suburban

CAR
Baguio
Pangasinan
Pampanga
Tarlac
Central Bataan
Bulacan
Luzon
CaviteMetro Manila Bicol
Batangas Region
Southern
Tagalog
Western
Visayas

994

In City*

Palawan

5,695
3,930
443

2009

4,411
576

2010

4,885

708

Eastern
Visayas

Iloilo
Negros Occidental
Cebu

Central
Visayas

560

Cagayan de Oro

2011

2012

2013

Existing
New

Northern
Mindana Davao
o
Southern
Mindanao

*Includes Makati, Bonifacio Global City, other Mega Manila, Metro

Cebu, Metro Davao, Bacolod, Iloilo, Cagayan de Oro

16

Key Messages
Ayala Land is in a strong position to benefit from the Philippine growth story,
with major businesses aligned with key drivers of the economy.
We are the most diversified property conglomerate with a solid track record
in developing large scale, integrated, mixed-use and sustainable communities.

A trusted developer with a nationwide footprint, diversified product

offerings across different market segments, and a strategic and valuable
land bank

Executing well on a clear and aggressive growth strategy

Delivering solid operating and financial performance

17

Earnings target surpassed on the 4th year of our plan

Growth
Aggressive launches
Strategic land acquisition

Margin Improvement
Reduced costs

4.0

2009

5.5

2010

Net Income (Pbn)

11.7
10.0
9.0
7.1

2011

2012

2013

2014F

Capital Efficiency
Increased leverage
Higher dividends

Return on Equity (P bn)

Organizational Development
Enterprise-wide risk management
Training and decentralization

Brand-Building
Customer service
Product differentiation

12%

13% 13%

15%

10%
8%

2009

2010 2011
Actual

2012 2013 2014F

5-10-15 Plan
18

On track with building up the investment portfolio

Malls

Mall Expansion

: Double the GLA

Operational

Offices

Under construction

1,783

: Triple the GLA

Hotels

1,264

: Quadruple the no.

of room keys

Under construction

1,346

257

266

993

1,007

1,080

2009

2010

2011

Offices Build-up
Operational

Launches

1,530

1,558

150

342

287

304

1,188

1,271

1,329

2012

2013

2014

Hotels Roll-out
Operational

Launches

Under construction

Launches

3,934

386
38
348
2009

549

591

154

162

395

429

2010

2011

749

799

1,100

240

237

262

509

562

581

2012

2013

2,894

926

1,929

893

846

462
1,467

2,001

2,162

2012

2013

2014

257

2014

1,399

1,549

615

765

784

784

784

2009

2010

2011

19

Effective execution through subsidiarization

Residential

Shopping Centers

Office

Hotels &
Resorts

OFFICES

Regional

Construction

Property
Management

Shared
Services

APRISA BUSINESS PROCESS SOLUTIONS, INC.

an AyalaLand company

20

Synergies maximized through strong corporate support

Investment
Committee

Finance

Treasury

Procurement

Corporate
Working Group

Innovation
and Design

Master
Planning

Land
Acquisition

Risk
Management

Subsidiaries

21

Key Messages
Ayala Land is in a strong position to benefit from the Philippine growth story,
with major businesses aligned with key drivers of the economy.
We are the most diversified property conglomerate with a solid track record
in developing large scale, integrated, mixed-use and sustainable communities.

A trusted developer with a nationwide footprint, diversified product

offerings across different market segments, and a strategic and valuable
land bank

Executing well on a clear and aggressive growth strategy

Delivering solid operating and financial performance

22

Solid Earnings and Revenue Growth

1H 2013

1H 2014

26%
P46.2B

P36.6B

25%
P5.6B

Total Revenues

P7.1B

Revenue Breakdown
(in P millions)

1H 2014 1H 2013 Amount

Property Development
Residential
Office for Sale
Comml/Indl lots

31,087
26,067
827
4,193

23,819
18,374
261
5,184

Commercial Leasing
Shopping Center
Office
Hotels and Resorts

10,364
5,520
2,096
2,748

8,493
5,036
1,596
1,861

Services
Gross Construction
Property Mgmt.

14,574
14,100
474

10,503
9,892
611

(11,277)
44,749
1,449
46,198

(7,026)
35,790
844
36,634

Interco Adjustments
Real Estate Revenues
Interest & Other Income
Total Revenues

7,268 31%
7,692 42%
566 217%
-990 -19%
1,870
484
500
887

22%
10%
31%
48%

4,072 39%
4,208 43%
(137) -22%
(4,251)
8,959
605
9,564

61%
25%
72%
26%

Net Income

23

Steady improvement in margins across various product lines

Margin Performance

1H 2014

1H 2013

40%

42%

34%
38%
51%

34%
34%
35%

Shopping Centers

62%

62%

Steady performance of malls

Office

83%

80%

Higher average lease rates and

improved cost efficiency

Hotels & Resorts

29%

18%

Higher margin contribution of new hotels

Services (EBITDA)

10%

8%

Better margins from MDC

Property development
(Gross profit)
Residential
Horizontal
Vertical
Office for Sale
Commercial and
Industrial Lots

Lower margins from recently acquired lots

of AGE and Nuvali
Steady margins from vertical products
Contribution of higher margin Avida offices
Sale of higher margin commercial lots in FTI,
Altaraza and Nuvali

Commercial leasing (EBITDA)

24

Solid balance sheet

Balance Sheet
(in P millions)
Cash & Cash Equivalents*
Total Borrowings
Stockholders Equity**
Current Ratio

June
2014

December
2013

Change

48,900

40,778

8,122

20%

118,930
102,690

101,902
98,470

17,028
4,220

17%
4%

1.46

1.45

6.4

6.5

Debt-to-Equity Ratio

1.16

1.04

Net Debt-to-Equity Ratio

0.68

0.61

Return on Equity

14%

13%

Interest Coverage Ratio

*Includes FVPL (financial assets at fair value through profit and loss)
**Attributable to equity holders of ALI

25

Debt profile: stretched maturities, lower cost and managed mix

As of June 30, 2014
Outstanding Balance: Php119B, ST loans Php8.1B
20
18

7.3%

16

16.7
6.2%

14

Short-term loans

5.3% 5.1%

12

10.5

4.4%

6.6

2.0

8.0
5.6

8.0%
7.0%

5.0%

8.1

9.0%

6.0%

11.5 11.8 11.7 11.7

10

Long-term Debt Maturity

(in Php Billions)
Borrowing Cost

7.9%

6.1

5.5

4.0%

6.9

3.0%
2.0%

2.9 2.6

2.0

2.0
0.9

0.6

1.0%
0.0%

09

10

11

12

13

14

15

16

17

18

2011

20

21

22

23

24

Float
47%

Float
42%
Fixed
58%

19

Fixed
53%

2012

25

26

27

28

29

30

2013

32

33

Float
22%

Float
31%
Fixed
69%

31

Fixed
78%

End-June 2014
26

Capex spend of P32.9b in line with target

H1 2014 Capex Spend

Capex Schedule

(In Php billions)

(In Php billions)

FY
Target

Land Acquisition
Project Completion

Land
Acquisition:
P13.2b

P72b

P66b

P70b

40%
P30b
60%
Project
Completion
P19.7b

P16b

P21b

13

18

2009

2010

50
25

2011

31

2012

39

2013

2014T

27

Sales take-up: up 11% yoy to P48.6b

Sales Take-Up (In Php Bn)
27.3

24.2 24.2
ALP

23.9

19.8 18.8 19.8 19.6

21.3

1H 2014
vs 1H 2013

Alveo
Avida

Sales Take up

up 11%

Amaia

Bookings

up 7%

BellaVita
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
2012 2012 2012 2013 2013 2013 2013 2014 2014

Booked Sales (In Php Bn)

15.4 15.1

ALP
Alveo

11.0

22.0
17.5

16.5 16.3
14.1

13.1

1H 2014 Overseas Filipino (OF) Sales:

Php 8.3b (Up 30% yoy)
Represents 27% of total bookings

Avida
Amaia
BellaVita
2Q
2012

3Q
2012

4Q
2012

1Q
2013

2Q
2013

3Q
2013

4Q
2013

1Q
2014

2Q
2014

28

Steady growth in unbooked revenues

Unbooked Revenues

Arbor Lanes

Lumira

(in Php billions)

120
99

High Park

65

Verve

48

12

2009

The Courtyards

19

2010

2011

2012

2013 1H 2014

Avida Towers Vita

Amaia Steps
Nuvali

10x the level in 2009

3x residential revenues in FY 2013

29

Shopping Centers: GLA up 10% yoy

Total Malls GLA: 1.3m sqm
(vs. 1.2m sqm. in 1H 2013)
Average occupancy: 93%
Average building lease rates: up 4%
to P1,148/sqm/month
Same store rental growth: up 10%
1H 2014 additional GLA: 61,000 sqm
Fairview Terraces (60k sqm)
Bonifacio Central Square New
Wing (1,000 sqm managed)

Bonifacio Central Square

30

Shopping Centers Update

Malls under construction:

304k sqm
Mall

GLA (in k sqm)

Circuit Mall

59

Solenad 3

47

Vertis

47

SouthPark Alabang

47

Paradigm Pasig

28

UP Town Center

26

BGC West Block

24

Circuit Lane

10

Shops at Atria

Boni Stopover

McKinley Exchange

SouthPark

Circuit
31

Offices: GLA up 8% yoy

Total GLA: 581k sqm

Building N

(vs. 537k in 1H 2013)

Average occupancy: 91%; leased out rate

at 95%

Average BPO lease rates: up 4% to

Php638/sqm / month with the opening
of non-CBD locations.

1H 2014 additional GLA: 18,900 sqm

UP Bldg N (9,450 sqm GLA)
UP Bldg O (9,450 sqm GLA)

Building O

32

Offices Update
Offices under construction:

Circuit

350k GLA
Name
Paradigm Corp Center
Circuit
Vertis
SouthPark BPO
Boni Stopover
AC Cebu Corp Center
PSE @ BGC
BGC Corp Center
ATC BPO
Cebu eBloc 4
McKinley Exchange
Fairview BPO
UP Town Center BPO

GLA (in k sqm)

47
45
41
38
35
29
30
27
18
16
10
10
4

McKinley Exchange

BGC Corp
Center

ATC BPO

SouthPark

Cebu eBloc 4

33

Hotels and Resorts: Room count up 8% yoy

Seda Nuvali

Total room count: 2,162 rooms

(vs. 2001 in 1H 2013)
H1 2014

Hotels

Resorts

No. of rooms
in operation

Branded: 1,294
Seda: 665

El Nido Resorts:
203

Revpar/night

P3,816
(up 47% )

P8,011
(up 23%)

Average
room rate

P5,321
(up 5%)

P15,005
(up 4%)

Average
occupancy

72%
(up 20 pts)

53%
(up 9 pts)

El Nido

1H 2014 Additional Rooms: 160

Seda Nuvali (150)
El Nido (10)

34

Hotels and Resorts update

Seda Hotels under construction:

Seda Vertis

846 rooms

Seda Circuit

Vertis North (438 rooms)

Circuit (255 rooms)
Iloilo (153 rooms)
Seda Iloilo

35

On track with 2014 Plans:

P142b worth of projects in 2014
Residential Projects
Office Buildings and Shopping Centers
Hotels and Resorts
Commercial Estate
New Retail and Healthcare formats

o
o
o
o
o

Value of Launches
(in billion Pesos)

Residential/Office for Sale

Malls, Offices, Hotels and Resorts
110
73

140

142 (F)

108

107

90

62
62
10
52

11

20

32

35

2010

2011

2012

2013

2014

36

Awards and Recognition

Southeast Asia Property Awards
Best Developer in the Philippines (2014)
Euromoney Real Estate Awards
Best Overall Developer in the Philippines
(2005-2014)
Sustainable Business Awards
Winner Strategy and Vision (2014)
Institutional Investor
Best Sell-Side IR Program (2014)
Frost and Sullivan
Builder of the Year in the Philippines (2014)
Finance Asia
4th Best Managed Company
3rd Best in Corporate Governance
7th Best in Investor Relations
(2014)
Channel News Asia
Green Luminary Award (2014)

37

Awards and Recognition

The Asset Magazine
Platinum Award
All Around Excellence in Financial
Performance, Management, Corporate Governance, Social
Responsibility, Environmental Responsibility and Investor Relations
(2013, Winner since 2009)
APREA Best Practices
Country Award, Best Submission from the Philippines (2013)
Asia Money Awards
Best Large Cap Company of the Year
(2013)
PSE Bell Awards
Bell Awards for Corporate Governance
(2012)
Institute of Corporate Directors
Platinum Plus Ranking for Corporate Governance
(2005-2011)

38

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