Creating Landmarks. Setting Standards. Building Relationships

Presentation toATR Kim Eng SecuritiesMay 26, 2006

Cebu

CEBU. . .Gateway to

Southeast Asia

CEBU. . .Gateway to

Southeast Asia

Daily Daily >> Hong Kong >> Hong Kong 2 2 hourshours

6x/week6x/week >> Narita, >> Narita, TokyoTokyo 5 hours5 hours

DailyDaily >> Singapore>> Singapore 3 3 hourshours

Daily Daily >> HK/Singapore >> HK/Singapore 7 hours7 hours

2x/week2x/week >> Kota >> Kota KinabaluKinabalu 1 hour1 hour

2x/week2x/week >> Kuala >> Kuala LumpurLumpur 5 hours5 hours

4x/week4x/week >> Seoul>> Seoul6 hours6 hours

3x/week >> Qatar3x/week >> Qatar13 hrs.13 hrs.

Daily Daily >> Hong Kong >> Hong Kong 2 2 hourshours

6x/week6x/week >> Narita, >> Narita, TokyoTokyo 5 hours5 hours

DailyDaily >> Singapore>> Singapore 3 3 hourshours

Daily Daily >> HK/Singapore >> HK/Singapore 7 hours7 hours

2x/week2x/week >> Kota >> Kota KinabaluKinabalu 1 hour1 hour

2x/week2x/week >> Kuala >> Kuala LumpurLumpur 5 hours5 hours

4x/week4x/week >> Seoul>> Seoul6 hours6 hours

3x/week >> Qatar3x/week >> Qatar13 hrs.13 hrs.

• 55 mins. by air from Manila

• Jump off point to Vismin

• Flies to 20 domestic

destinations

• Total of: 36 flights daily to and from

Manila,

6 flights daily to and from

Davao,

4 flights daily to and from

Bacolod,

2 flights daily to and from

Cagayan de Oro

•Controls 85% of the country’s inter-island shipping industry•• 66 trips via fast craft daily

CEBU…Centrally located in the Philippines

• Total Population – 3 m• Metro Cebu Pop.- 1.6m

– Cebu City– Mandaue City– Lapulapu City– Talisay City

• Centrally located• Jump off point to VisMin

– Served by air carriers & fast crafts

• Domestic and international airport

• International seaport• International linkages

with direct flights

• Economic powerhouse of theSouth

• Hub of commerce & industry in the Visayas-Mindanao region

• Educational center– 6 universities– 22 colleges- 2 international schools

• Major Tourist destination- hotels, resorts and recreational

facilities• Major Export Earner

• skilled labor pool / Internet Savvy• Facilities for business, education,

health, leisure & recreation

Cebu in a snapshot

• Tourist arrivals grows at an average of 12% per year

Gateway to around two thirds of the Philippine archipelago.Wide variety of hotels, resorts, restaurants, golf courses, sports clubs & natural

wondersMarriott Hotel

Cebu Country ClubWaterfront Hotel

Maribago Blue Waters

TOURISMTOURISM

Cebu’s hotels and resorts –for

leisure and business

There are currently 3,772 hotel rooms and 924 resort rooms.

Shangri-La MactanIsland Resort (one of the best resorts in Asia Pacific, Business Traveller UK, 2004 5-Star Diamond Award)

Marriott Hotel(2002 Kalakbay awardfor excellence)

Maribago Bluewater Resort(1995-2003 RCI Crown Resort Award)

Plantation Bay

Waterfront

Badiian Island Resort

Pulchra Shangri-La

Maribago Bluewater

Marriott

Badiian Island Resort

TOURISMTOURISM

Growth in market due to tourists & OFW’s

- Continued increase of tourist arrivals (12% year-on-year growth)

- Hospitality Industry is on the rise.

922

56%591

8%550

1%

1,001

9%

459

17%394

33%

296

3%287

5%

0

200

400

600

800

1000

1200

1400

1600

2002 2003 2004 2005

(in Thousands) Foreign

Domestic

CEBU

Ayala came to Cebu 16 years ago

• Developed CBP, first masterplanned business district in Cebu

• Created a new business hub & triggered shift from downtown area

• Revolutionized the lifestyle of Cebuanos

• Raised the standards in real estate

• Catalyzed economic growth

• An affiliate company of Ayala Land, Inc. engaged in real property development, marketing and management in Cebu

76% Subsidiary of Cebu Holdings, Inc.

Real Estate Arm of Ayala Corporation

Ayala Land, Inc. 47.06 %

Santiago Land 15.45 %

First Metro Investments 10.00%

Public 27.49 %

100%

Ownership Structure

A subsidiary of Cebu Holdings, Inc.

Cebu Holdings, Inc. 76.26 %

Province of Cebu 8.28 %

Ayala Land, Inc. 6.74 %

Public 8.72%

100%

Total Assets: P4.7 b

Total Liabilities: P1.23 b

Total SH’s Equity: P3.4 billion

Owns 76% of Cebu Property Ventures and Development Corporation

Total Assets: P1.05 b

Total Liabilities: P70 million

Total SH’ Equity: P984 million

(As of December 2005)(As of December 2005)

HISTORY

1988

Inception of CHI

1989 199519941990

Cebu Business Park

2001

Creating Landmarks. Setting Standards. Building Relationships.

IPO

Acquisition of Cebu Property Ventures and Dev’t Corp (CPVDC) stocks

Asiatown IT Park declared Special Economic Zone

Ayala Center Cebu

• Developed what used to be the province-owned Club Filipino golf course in 1988 into what is now the Cebu Business Park, an integral part of Metro Cebu’s changing economic and physical landscape

Park Tower

One

Keppel Center

Cebu City Marriott

Hotel

Ayala Life-FGU

Center

WTCI-Pag-ibig

Tower

Globe Innove Plaza

Park Tower

Two

A y a l a C e n t e r C e b u

Centerpiece of Cebu Business Park

City Sports Club Cebu

HSBC

Union Bank

Cebu Holdings

Center

Shopping & Entertainment Hub of CebuDominant ABC+ Market

Lexmark

Cebu Towers

Tower Palace

Bigfoot

Parklane Hotel

New Terminal

A y a l a C e n t e r C e b u

Gross Leasable Area = 77,877 sqm No. of Regular Outlets = 276 4 newly renovated cinemas Parking facilities

Basement - 827 slots

Surface – 717 slots Customer Traffic= 67,000/day

Home to Popular Foreign Brand NamesHome to Popular Foreign Brand Names

• Nine West• Springfield• Florshiem• GH Bass• Dexter• Lacoste• Lacoste Footwear Accessories• Girbaud• Bossini• Esprit• Benetton• Nike Park• Adidas

A y a l a C e n t e r C e b u

• Kamiseta• Bayo• Folded & Hung• Plains & Prints• Freeway• ForMe• Memo• So Fab• Mendrez• Rusty Lopez• Janilyn

Home to Popular Local Brand NamesHome to Popular Local Brand Names

A y a l a C e n t e r C e b u

• Starbucks• Levi’s• Marks and Spencer• Lacoste

World Class Fitness Club

• Fitness First 2nd in membership

in the Phils.

Flagship outlets:

First in Cebu ConceptsFirst in Cebu Concepts

A y a l a C e n t e r C e b u

Clustered Family Food-to-Share Dining ConceptsClustered Family Food-to-Share Dining ConceptsA y a l a C e n t e r C e b u

Synergy of Cinemas & DiningSynergy of Cinemas & Dining

Food Choices: Affordable Alternative DiningCinema: Computerized Ticketing System, Digital Dolby Sound

A y a l a C e n t e r C e b u

PerformancePerformance

Ayala Center Cebu experienced significant growth for the past years

Lease occupancy is maintained at a high level

2001 2002 2003 2004 2005

98.3% 98.7% 96.9% 98.0% 98.1%

A y a l a C e n t e r C e b u

Sales Growth

15%16%

10% 10%

13%

2%

6%

10%

14%

18%

2001 2002 2003 2004 2005

Rental Rate Growth

9%

15%

9% 8%

14%

2%

7%

12%

17%

2001 2002 2003 2004 2005

Retail ScenarioRetail ScenarioOpportunities:

Growth in market due to fast build up within & around CBP

CBP: Cebu Towers (Office Condo: 15 Levels)

Tower Palace (Condo: 17 Levels)

Lexmark 1 (Office: 23 levels)

Lexmark 2 (Office: 7 levels) AITP: Skyrise Building (Office Condo: 8 Levels; GFA =22k sqm )

Primary Industrial Property Corp 11 (Office Condo: 10 Levels; GFA=21k sqm)

Primary Industrial Property Corp 14 (Office Condo: 12 Levels; GFA =28k sqm)

A y a l a C e n t e r C e b u

Cebu Business ParkThe premier business district of Cebu

Master-planned communityIntegrated development

Cebu Business Park

Cebu City Marriott HotelCity Sports Club CebuOffice Condos Ayala Life – FGU Center Cebu Cebu Holdings CenterResidential Condos Park Tower One Park Tower Two

•Allied Bank Asian Bank Banco Filipino BPI (2 lots) Chinabank Far East Bank HSBC MetroBank Keppel Monte Bank PNB RCBC Solidbank

• HSBC•Unionbank• BPI Family Bank• Ayala Life Assurance• FGU Insurance• PAG-IBIG• Insular Life Assurance Co. (3 lots)• Lacson & Lacson Insurance Brokers• Multinational Investment Bank• National Life Insurance• Philippine First Insurance Corp.• Pioneer Insurance & Surety Corp.• State Investment House, Inc.

Leading Banks and Financial Institutions

Year to date take up: 2 lots vs. 1 lot in 2005

Few lots left in inventory of Commercial Lots

Asiatown I.T. Park-a project of CHI’s subsidiary, CPVDC

eOffice Locators:

NEC Telecom Software Philippines, Inc.

Tsuneishi Technical Services (Phils.), Inc.

PeopleSupport Philippines, Inc.

NCR Cebu Development Center

Epson Precision (Phils.), Inc.

Globe Telecom/eOffice

NEC 278

TTSP 180

PSPI 1300

NCR 160

Epson 40

eTelecare 1000

Dash Eng’g 350

SPI 191

GlobeTel 374

Asiatown I.T. Park Workforce

Contribution to Cebu Economy:P100 million monthly payroll =P1.2 Billion in 2005

ESB Locators:eTelecareDash EngineeringSPI Technologies

Fast Build-up; Increasing Demand

Total Gross Floor Area: 162,168.48 sq. metersYear to date Take-up: 7 lots vs. 2 lots in 2005

Future Locators: School, hotel, more IT office buildings

Professional Certification, Training and Review Center

Cebu Educational Development Foundation for Information Technology

C e d f – I T

1,312 beneficiariesof trainings and proficiency exams- a consortium of industry, academe, government and NGO's -seeks to increase the quantity and improve the quality of professionals in the Information and Communications Technology (ICT) and IT-Enabled Services Industry through proactive intervention in the HR development sector.    

A seaside residential haven located in Catarman, Liloan, Cebu

One of only 23 lighthouse communities in the world;The first in the Philippines

Phase 1: Gross sales P189.7 millionLaunched on October 18, 2005 ; 93% take up in 7 daysSold out in January 2006

Customer Centric Innovations- rated Excellent by 45% of Amara buyers

2005 Market Leader: 54% relative market share vs. competitors

A m a r a w e b s i t e link

R e v e n u e s

-

2001-2005 (in millions)

0

100

200

300

400

500

600

700

800

672

01

512

02

538

03

641

04 05

690

Financial Highlights

Steadily Increasing

•Commercial Center•Commercial Lots•Projects•Equity & others

% % % % %

37 53 54 52 54

11 17 30 15 13

46 24 8 15 10

6 6 8 18 23

100% 100% 100% 100% 100%

CHI

Net Income

-

50

100

21

01

46

02

83

03

2001-2005 (in millions)

91

04

150

05

117

Financial Highlights

34% AnnualAverage Increase

CHI

First Quarter 2006

Cebu Holdings, Inc. & SubsidiariesStatement of Income (consolidated)

FOR THE PERIODS ENDED MARCH 31, 2006 AND MARCH 31, 2005 2 0 0 6 2 0 0 5

(In Million Pesos) Jan. - March Jan. - March

IncomeReal estate P 238 P 126 Interest and other income 10 4 Equity in net earnings of an affiliate 10 6

258 136

Cost and expensesReal estate 114 62 Interest and others 6 10 General and administrative expense 33 24 Provision for Income Tax 27 10

181 106 Income before Minority Interest 77 29

Minority Interest 3 1

NET INCOME after Minority Interest 74 28

Earnings Per Share 0.038 0.015

0.000

1,920,074

Financial Highlights

CHI

Balanced Scorecard

Financial Internal Business Processes

Customer

Learnings & Growth

Cebu Holdings, Inc.

Processes

2005 I n n o v a t i o n s

1)TCS MS Total Customer Satisfaction Management System

Within-the-day response

63%

04 0520

40

20

60

80 83%

product & customer service deliveries

Internal Business

2) Text Feedback System – for complaints and appreciation

Customer Satisfaction Surveys

Ayala Life – FGU CenterCebu Holdings CenterPark Tower OnePark Tower Two

8.5 (out of 10)

04 052

4

6

8

10

Result: Renewal of Property Management contracts for 2006

Office & Residential Buildings 8.2

7.8 (out of 10)

04 052

4

6

8

10Mall Merchants

Survey coverageBuilding FacilitiesUtilitiesSystems/ProceduresMarketingSecurity

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

Cost-efficient Schemes

5%

04 050

20T

22T

24T

26T

Power Consumption Reduction

(in KwHr)

Result: close to P3.0 million in savings

ACC Chiller Daily Average kWHr (2004 vs. 2005)

29,80029,076

26,555

24,094

25,733

24,628

26,22125,893

22,750

23,75624,380

23,425

26,052

27,288

25,25824,49224,36424,225

24,64824,310

22000

23000

24000

25000

26000

27000

28000

29000

30000

31000

32000

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

2004 Ave. 2005 Ave.

Ave. Daily consumption (chillers)

25,895

24,565

Processes product & customer service deliveries

Internal Business

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

RebrandingCorporate

Pantone 378

Earth GreenPantone 110

Ochre Yellow

Corporate colors symbolize:

development

vigor

nature

innovation

earthenergy

=

=

growth

creativity

value creation

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

RebrandingCorporate

Metamorphosis/Transformation

Corporate Agility / DynamismCare for the Environment

Personal and Professional GrowthFreedom with Responsibility

Creativity and Cross-pollination of Ideas

Why the Butterfly?

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

People Organizational Strengthening

In House & External Trainings

Advanced Customer Service

Learnings & Growth

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

People Organizational Strengthening

CHI PlusPersonality and Lifestyle Upliftment Strategy

Learnings & Growth

Employee WellnessHuman Resources Development

Personal and Professional Growth

Cebu Holdings, Inc. 2005 I n n o v a t i o n s

Cebu Holdings, Inc.

Corporate Culture

Learnings & Growth

People Organizational Strengthening

1988 1989 199519941990 2001

Creating Landmarks. Setting Standards. Building Relationships.

2006

CHI granted Integrated Management System (IMS) Certification to 3 standards: Quality (ISO 9001:2000), Environment (ISO14001:2004), and Health and Safety (OHSAS 18001:1999) Management Systems on March 24, 2006

Cebu Holdings, Inc.

I n i t i a t i v e s

Cebu Holding, Inc.

-the first full-line real estate company to be certified to the three management systems standards

Quality(ISO 9001:2000)

Environment(ISO 14001:2004)

Health & Safety(OHSAS 18001:1999)

-Ayala Center Cebu, the first mall in the Philippines to be certified to the three management systems standards

To uphold quality of products and servicesMinimize environmental impactProvide a healthy and safe working environment

2005 2006

P1.10

P2.25

Stock Performance

May 22

  End-2005          May 24, 2006         % changeCHI                 1.10                  2.12                    92.73%Property Index 839.86              956.62                    13.90%Phisix              2,096.04            2,252.58                     7.47% 

Creating Landmarks. Setting Standards. Building Relationships

Presentation toATR Kim Eng SecuritiesMay 26, 2006