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Recap of Q2 Priorities

July 2, 2009

Investor PresentationInvestor PresentationOctober 2012October 2012

Presentation OutlinePresentation Outline

••Company Company OverviewOverview

2

••Update on “5Update on “5--1010--15” 15” Plan and Plan and FourFour--Pillar StrategyPillar Strategy

• “Platinum Award for All Around Excellence in Financial

We are the leading real estate developer We are the leading real estate developer

in the Philippines …in the Philippines …

• Largest, most diversified property company

• Spun off from Ayala Corp. in 1988, IPO in 1991

• Market capitalization of US$8.0B*, 50% free-float

• Shareholder structure�50% owned by Ayala Corporation

�23% foreign-owned**

• “Platinum Award for All Around Excellence in Financial Performance, Management, Corporate Governance, Social Responsibility, Environmental Responsibility, and Investor Relations” �The Asset Magazine 2009-11

• “Platinum Plus Ranking for Corporate Governance”�Institute of Corporate Directors’ Corporate Governance Scorecard 2011

• Best Overall Developer in the Philippines�Euromoney Real Estate Awards 2005-2012

*as of 19 September 2012

** inclusive of voting preferred shares 3

RESIDENTIALRESIDENTIAL•• 5 5 brands brands serving serving different income different income segmentssegments

•• 90 90 ongoing ongoing projects projects nationwidenationwide

COMMERCIAL / COMMERCIAL / INDUSTRIAL INDUSTRIAL LOTSLOTS•• CommercialCommercial

�� NUVALI NUVALI (200 hectares)(200 hectares)

•• IndustrialIndustrial�� Laguna Laguna

PROPERTY DEVELOPMENTPROPERTY DEVELOPMENT COMMERCIAL LEASINGCOMMERCIAL LEASING

SHOPPING SHOPPING CENTERSCENTERS•• 35 shopping 35 shopping centerscenters�� 1.13M 1.13M sqmsqm GLA GLA �� 96% leased96% leased--outout

OFFICE OFFICE •• 5 HQ type 5 HQ type buildingsbuildings�� 72K 72K sqmsqm GLAGLA�� 93% leased out 93% leased out

•• 30 BPO office 30 BPO office buildingsbuildings

… with a balanced portfolio of … with a balanced portfolio of complementary businesses …complementary businesses …

nationwidenationwide(~P133B (~P133B in in value)value)

�� Laguna Laguna TechnoparkTechnopark(5.3 hectares)(5.3 hectares)

SERVICESSERVICESHOTELS & RESORTSHOTELS & RESORTS

buildingsbuildings�� 412K 412K sqmsqm GLAGLA�� 85% leased out85% leased out

HOTELSHOTELS•• BrandedBranded�� 634 rooms634 rooms�� 347 rooms under 347 rooms under

constructionconstruction

•• SedaSeda HotelsHotels�� 628 rooms under 628 rooms under

construction (BGC, construction (BGC, Davao, CDO, NUVALI)Davao, CDO, NUVALI)

RESORTSRESORTS•• El El NidoNido (192 rooms)(192 rooms)

�� ApulitApulit�� MinilocMiniloc�� LagenLagen�� PangulasianPangulasian

(To open by 2H12)(To open by 2H12)

CONSTRUCTIONCONSTRUCTION•• 83 projects 83 projects

•• P75B gross order P75B gross order bookbook�� 85% ALI85% ALI�� 15% 315% 3rdrd partyparty

PROPERTY PROPERTY MANAGEMENTMANAGEMENT•• 144 facilities 144 facilities

•• P1.3B outstanding P1.3B outstanding contract valuecontract value�� 90% ALI90% ALI�� 10% 310% 3rdrd party party

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Amaia subd,

2%

Avida

condos, 5%

Avida

subd, 7%

Alveo

condos, 6%

Commercial

lots, 14%

Services, 9%

NET INCOME PER

BUSINESS LINE (1H12)

NET INCOME PER

BUSINESS LINE (1H12)

NET INCOME PER

GROWTH CENTER (1H12)

NET INCOME PER

GROWTH CENTER (1H12)

… and a diverse income base… and a diverse income base

Makati

31%

Quezon City

4%

Manila

3%

Alveo subd,

8%

ALP condos,

7%

ALP subd,

12%Shopping

centers, 18%

Offices, 9%

Hotels and

resorts, 3%

55

31%

Nuvali

28%Bonifacio

Global City

10%

Cebu

6%

Alabang

3%

4%

30%

47%

“B”(P50-120K/mo)

“C/C-”(P15-50K/mo)

“A-AAA”(P120-250K/mo)

Income Classes of 18M Households Segment Price range Ave/unit

High end P6.5–35M P12M

Upscale P4.0–10.0M P6M

Middle

incomeP1.3– 4.5M P2.5M

(32%)

(4%)

(1%)

We offer a broad range of residential We offer a broad range of residential products across all price pointsproducts across all price points

Brand

“C/C-”(P15-50K/mo)

“D/E”(63%)

Source: Nat’l Statistics Office, 2009 FIES

Economic

housing

P600K–

1.3MP900K

Social

Enterprise

Community

P400-650K P500K

6

LANDBANK (hectares)LANDBANK (hectares)

• 5,865 hectares of

developable landbank

across the country

We have a huge and actively replenished We have a huge and actively replenished landbanklandbank for sustainable growth …for sustainable growth …

2,908 3,465

3,892

5,090 554

564

611

775

In-city*

Suburban

*includes Makati, Bonifacio Global City, other Metro Manila, Metro Cebu, Metro Davao, Bacolod, Iloilo, Cagayan de Oro

7

• Land available for

long-term growth

PER TYPE OF BUSINESS (hectares)PER TYPE OF BUSINESS (hectares)

Residential,

55%

Comm’l

Leasing,

12%

Hotels &

Resorts,

17%

CBD

Estates,

16%

2009 2010 2011 1H12

2,908 3,465

… located along key regional growth centers…… located along key regional growth centers…

NagaLucena

Batangas

Subic

Cabanatuan

Baguio

Bataan

Legaspi

Pampanga

Growth Centers 2009 2010 2011

1 Cebu

2 Davao

3 Bacolod

4 Ilo Ilo

5 CDO

6 Baguio

7 Pampanga

Regional Land Acquisitions

Davao

Cagayan de Oro

CebuBacolod

Iloilo

Batangas

Palawan

Legaspi8 Subic

9 Bataan

10 Batangas

11 Lucena

12 Naga

13 Palawan

14 Tarlac

15 Cabanatuan

16 Pangasinan

TOTAL AREA ACQUIRED (in hectares) 6.5 796.0 949.6

< 10

10 - 100

> 100

Total Landholding (in has)

Existing since 2009

New / ongoing / planned acquisition 8

ITS

Vertis 30 ha.Vertis 30 ha.North GatewayNorth Gateway

… and within strategic areas around Metro Manila …… and within strategic areas around Metro Manila …

Growth Centers 2009 2010 2011

1 Makati

2 Bonifacio Global City

3 Ortigas/Mandaluyong

4 Eastwood/C5

5 Manila-South QC

6 QC North

7 Reclamation

NLEX/SLEX

EDSA

C-5

CITRA-PNCC SKYWAY

(PROPOSED)

NAIA EXPWY PROJ, PH-2

(PROPOSED)

CAVITE EX[RESSWAY

CAVITE-LAGUNA

EXPRESSWAY

(PROPOSED)C-6 ALIGNMENT

(PROPOSED)

LRT LINE 1

ITS

FTIFTI--TaguigTaguig 74 ha.74 ha.South GatewaySouth Gateway

ITS

Existing since 2009

New / ongoing / planned acquisition 9

7 Reclamation

8 Alabang

9 Cubao

10 Monumento

11 Batasan

12 Cavite

13 NUVALI

14 Bulacan

15 Rizal/Marikina

TOTAL AREA ACQUIRED

(in hectares)34.2 19.0 92.3

… further enhanced by our recent … further enhanced by our recent acquisition of the FTI propertyacquisition of the FTI property

BGC

Mixed Use Mixed Use

ResidentialResidentialCommercialCommercial

Mixed Use Mixed Use

ResidentialResidentialITS ITS

TerminalTerminal

RATIONALE

• Envisioned to be a new

business district close to

Makati and BGC

• Serves as southern gateway

to Metro Manila and

complements northern Makati

10

BGC

ITS

ITSFTI

complements northern

gateway in Vertis

• Within planned key

access points: � Bus Rapid Transit (BRT) system

� 1 of 3 Intermodal Transport

System (ITS) sites

� C-5 and Skyway connector road

• Ready for immediate

development

BRT System

C-5 and Skyway

connector

Makati

••Company Company OverviewOverview

Presentation OutlinePresentation Outline

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••Update on “5Update on “5--1010--15” 15” Plan and Plan and FourFour--Pillar StrategyPillar Strategy

We are operating under very We are operating under very

favorable economic fundamentals…favorable economic fundamentals…

10.6%10.1% 9.8% 9.6%

AFFORDABLE MORTGAGE (10-year rates)

AFFORDABLE MORTGAGE (10-year rates)

1.1%

7.3%

3.7%

6.1%

POSITIVE GDP GROWTHPOSITIVE GDP GROWTH

2.3 %

3.5 %

6.1 % 6.2 %

ROBUST PRIVATE

CONSUMPTION GROWTH

ROBUST PRIVATE

CONSUMPTION GROWTH

09 10 11E 12F

17.318.9 20.0 21.3

ROBUST OF REMITTANCES (US$ billon)

ROBUST OF REMITTANCES (US$ billon)

12

09 10 11 12F 16F

7.2 9.1

11.0 13.2

27.4

RISING BPO REVENUES RISING BPO REVENUES ((US$billonUS$billon))

RISING BPO REVENUES RISING BPO REVENUES ((US$billonUS$billon))

09 10 11 12F 16F

3.0 3.5 3.9

4.6

10.0

GROWING TOURIST ARRIVALS(millions)

GROWING TOURIST ARRIVALS(millions)

09 10 11 12F

Source: Global Source Partners, NSCB, BSP, BPAP, Dept of Tourism

09 10 11 1H12 09 10 11 1H12

… that support our “5… that support our “5--1010--15” Plan15” Plan

In 5 years (2014),

P10B in NIAT and 15% ROE

GROWTH

MARGIN

IMPROVEMENT

CAPITAL

EFFICIENCY

ORGANIZATIONAL

DEVELOPMENT

13

LandbankLandbank

ResidentialResidential

MallsMalls

OfficeOffice

Hotels &

Resorts

Hotels &

Resorts

•1H12 net income up 28% YoY

10.0

4.0 5.5

7.1

P B

illi

on

s

NET INCOME (Pbn)NET INCOME (Pbn)

Our Net Income and ROE are Our Net Income and ROE are

on track with targeton track with target

*

28% YoY

•ROE up 1%-pointto 13%

09 10 11 12 13 14FActual 5-10-15 Plan

14

8%10%

12% 13%* 15%

09 10 11 12 13 14F

Actual 5-10-15 Plan

RETURN ON EQUITYRETURN ON EQUITY

*based on annualized 1H12 figures

•• 5050 residential projectsresidential projects

•• 77 shopping centersshopping centers

77

We are launching 67 projects We are launching 67 projects

nationwide worth P90Bnationwide worth P90B

77

•• 77 office buildingsoffice buildings

•• 33 tourism & other tourism & other

facilitiesfacilities

*In strategic locations within *In strategic locations within

mastermaster--planned communitiesplanned communities

15

20.6K

24.8KALP

Alveo

Avida

Amaia/BellaVita

RESIDENTIAL UNIT LAUNCHES (‘000)RESIDENTIAL UNIT LAUNCHES (‘000)

We will continue our aggressive launch plan We will continue our aggressive launch plan

across all residential brands…across all residential brands…

• Planned FY12 unit launches 20% more than FY11

�50% in the economic and socialized housing segments

16

2009 2010 2011 2012F

10.2K

2.2K

socialized housing segments

• Sales value of P70B,

15% higher YoY

• Supported by an aggressive sales push, both domestically and internationally

... with sales and bookings keeping in step…... with sales and bookings keeping in step…

• P6.5B average monthly

take-up in 1H12 (vs P4.0B in 1H11, up 64%)

• P3.5B average monthly

P10.1

P13.7P15.1

P12.8

P19.3 P19.8

Amaia

Avida

Alveo

ALP

Sales Take-up (Pbn)

17

• P3.5B average monthly

bookings (vs P2.2B in 1H11, up 57%)

�OF sales amounted to P3.3B

(up 22%; 16% share to total)

• Unbooked revenues at

P50B (from P41B as of 1Q12)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

P6.6 P6.7

P8.5

P11.5 P9.9

P11.0

Amaia

Avida

Alveo

ALP

Booked Sales (Pbn)

… as robust demand is seen across all brands… as robust demand is seen across all brands

Launch: June 2012

Total value: P9.7B

Highlight: 235 units

(out of 238 available

units) sold on launch

Launch: Oct 2011

Total value: P2.1B

Highlight: 89%

taken up, Tower 2

launched Sept

2012Avida Towers 34th St. (BGC)

18

units) sold on launch

date

Launch: Dec 2011

Total value:P3.7B

Highlight: 78%

taken-up; 2nd Tower

launched July 2012

The Maridien (BGC)

2012Avida Towers 34 St. (BGC)

The Suites (BGC)

Launch: June 2012

Total value: P1.3B

Highlight: average

monthly take up of

80 units since

launch

Amaia Skies Avenida

Shopping Shopping CentersCenters

• Build premium malls in key cities

• Roll-out smaller formats through Arvo and Primavera

1H12 Performance

We are growing our shopping center portfolio…We are growing our shopping center portfolio…

MALL EXPANSION (‘000 sqm GLA)MALL EXPANSION (‘000 sqm GLA)

993 1,007 1,0801,266

165233

360

Under construction

Operational GLA

• 1H12 Performance

� Average lease-out rate at 96%

� Average building lease rates 6% higher YoY at P1,089/month

� Same-store-sales up 8% YoY (Land lease up 9%; building lease up 6%)

Harbor Point (Subic)Harbor Point (Subic)

19

2009 2010 2011 2012

OfficeOffice

• Focus on Metro Manila and key cities around the country

•Within integrated, master planned developments

… as well as our leasable office space…… as well as our leasable office space…

359 397 449 50240

103136

285

Under construction

Operational GLA

OFFICE EXPANSION (‘000 sqm GLA)OFFICE EXPANSION (‘000 sqm GLA)

planned developments

• 1H12 performance

�Average lease-out rate at 86%

�Occupied BPO GLA at 338K sqm (up 19% YoY)

�Average BPO lease rates up 4% YoY to P587/month

U.P.U.P.--AyalaLandAyalaLand TechnoHubTechnoHub

20

2009 2010 2011 2012

HotelsHotels

• REVPAR* up 12% to

P3,831/night

�Average occupancy at 80%

(from 71%)

�Average room rate at P4,799/night

… and the number of our hotel rooms… and the number of our hotel rooms

634 634 634

1,243 347

717 1,017

683

Under construction

Operational

HOTEL AND RESORTS ROOM BUILD-UPHOTEL AND RESORTS ROOM BUILD-UP

21

�Average room rate at P4,799/night

(from 4,784/night)

ResortsResorts

• REVPAR up 37% to

P6,104/night

�Average occupancy at 51%

(from 50%)

�Average room rate at

P11,998/night (from P8,903/night) SedaSeda BGC InteriorBGC Interior

*Revenue per available room

2009 2010 2011 2012

We recently increased our ownership in Fairmont We recently increased our ownership in Fairmont

Hotel and Raffles Suites & Residences to 100%Hotel and Raffles Suites & Residences to 100%

• Acquired equity stake of Kingdom Hotels, Inc. for US$24M

�Expand hotel portfolio and enhance recurring income base

�Strengthen Makati’s position as the premier CBD

• Components of Fairmont Hotel • Components of Fairmont Hotel and Raffles Suites & Residences:

�Fairmont Hotel (280 rooms)

�Raffles Suites (32 suites)

�Raffles Residences (27 out of 237 units remain for sale)

• Additional revenues from sale of Raffles Residences and fees from serviced apartment operations 22

• Capex for project

completion 21%

higher YoY

• Accelerated land

Our Our capexcapex is tracking ahead of the P37B planis tracking ahead of the P37B plan

1H12 Capex breakdown

Residential

38%

Land

acquisition

33%

Malls

17%

Hotels

5%

Office

4%Land devt

3%

• Accelerated land

banking to ensure

long-term growth

• FY12 capex projected

to reach P70B*

1H11 1H12

10.4 12.6

3.1

6.1Land

acquisition

Project

completion

50%

P12.5B

P18.7B

1H12 Capex performance

23*includes FTI and KHI acquisition

We have consistentlyWe have consistently improved our improved our marginsmarginsthroughthrough strict coststrict cost--containment effortscontainment efforts

NIAT MARGIN* AND GAE RATIO NIAT MARGIN* AND GAE RATIO

15%

20%NIAT margin

GAE to revenue

MARGIN PERFORMANCE OF BUSINESS UNITS

1H2012 1H2011

Property development (Gross profit)

Residential

Horizontal 45% 47%

Vertical 35% 33%

Comm’l/Ind’l lots 50% 52%

Commercial leasing (EBITDA)

Shopping Centers 61% 60%

• Procurement strategy and project cost control

• New design and construction methodologies

• Reengineering operational workflow and processes

• Spend management and energy-saving initiatives24

9.2%8.0%

09 10 1H11 1H12

Shopping Centers 61% 60%

Office 79% 81%

Hotels & Resorts(EBITDA)

31% 31%

Services(EBITDA)

6% 5%

*before Non-controlling Interest

• 5%-point annual

increase in payout

ratio, to reach 50%

by 2014

CASH DIVIDENDS (PhP million)

& PAYOUT RATIO (%)

CASH DIVIDENDS (PhP million)

& PAYOUT RATIO (%)

2,856

2,500

3,000(40%)

We continue to pay higher dividends and We continue to pay higher dividends and pursue apursue assetsset--light modes of acquisition…light modes of acquisition…

by 2014

• 60% of land area

acquired from 2009-11

completed via JDA and

long term leases

780

1,211

1,910

0

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012

(16%)

(30%)

(35%)

25

… increase leverage at lower cost … increase leverage at lower cost and longer maturities…and longer maturities…

DEBT MATURITY PROFILEDEBT MATURITY PROFILE

4.7

7.6

6.1 1.8

3.8

1.2

-

9.4

5.7 3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0 BORROWING COST AND TENORSBORROWING COST AND TENORS

4.4

3.0 3.9

4.8

7.9%7.5%

6.8%

2.0

3.0

4.0

5.0

6.0

5.8%

6.2%

6.6%

7.0%

7.4%

7.8%

Average tenor (years)

Blended borrowing rate

26

• Raised P15B in fixed rate bonds (April 2012)

�7 years: 5.625%

�10 years: 6.0%

• 220 bps reduction in blended borrowing rates since 2009

• Well-programmed debt maturity profile

2.8

4.7

0.5 0.1 0.1 0.1 1.3

3.1

0.9

3.8 3.6

1.4 2.0

-

-

-

-

1.0

2.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

15B Bond Subsidiaries Parent

5.7%

-

1.0

5.0%

5.4%

5.8%

2009 2010 1H11 1H12

… while still maintaining a healthy … while still maintaining a healthy financial positionfinancial position

BALANCE SHEET* (Php millions)

Change

June

2012

December

2011Amount %

Cash & cash

equivalents36,826 24,795 12,030 49%

27

Total borrowings 53,423 34,531 18,892 55%

Stockholder’s equity66,713 62,348 4,365 7%

Current ratio 1.72:1 1.65:1

Debt-to-equity ratio 0.80:1 0.55:1

Net debt-to-equity ratio0.25:1 0.16:1

*includes proceeds from P15B bond issuance in April

but excludes P13.6B top-up equity placement in July

• Pro-active talent

management�PID program

�Retention programs

�Training and development

�Employee engagement

We continue to enhance efficiencies and We continue to enhance efficiencies and

strengthen our risk management systemstrengthen our risk management system

�Employee engagement

• Outsourcing of corporate

services and construction

projects

• Strengthening EWRM

systems and processes

28

Identify Risks

Analyze Risks

Treat Risks

Monitor Risks

AYALA LAND’S EWRM STRUCTURE

•• The best way to access the The best way to access the Philippine growth storyPhilippine growth story

•• LongLong--term orientationterm orientationwith proven track record for with proven track record for building largebuilding large--scale, scale, mixedmixed--use communitiesuse communities

•• Balanced Balanced portfolio of strong portfolio of strong

Makati Central Business District 1960 TODAY

Bonifacio Global City 2000 TODAY

Why Why should you invest in Ayala should you invest in Ayala Land?Land?

•• Balanced Balanced portfolio of strong portfolio of strong businesses, businesses, now now addressing addressing broader economic segments broader economic segments nationwidenationwide

•• Clear Clear plan for profitable growth plan for profitable growth and and improving capital returnsimproving capital returns

•• Prudent capital management, Prudent capital management, supported by a strong supported by a strong balance sheetbalance sheet

NUVALI 2006 TODAY

29

THANK YOUTHANK YOU