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Presentation to Investors16 October 2017
Slide 2 of 14
Presentation to Investors 16 October 2017
Table of Contents
Slide
• The Philippine Economy • Corporate structure• Description of Businesses:
- Real estate• Metro Manila• Tagaytay Highlands / Midlands• Land held for development
- APC Group, Inc. - Gaming: Premium Leisure Corp.
• Historical Financials• Recent Dividend History
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Presentation to Investors 16 October 2017
Philippines: Strong Macroeconomic Fundamentals
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Presentation to Investors 16 October 2017
Corporate Structure and Lines of Business
61.8million shares(less than 1%)
3.7 billion shares(48.8% )
REAL ESTATE GAMING PORTFOLIO INVESTMENTS
City of Dreams Manila• Land and Buildings• Lease agreement with Melco Group
Land bank and finished real estate
24.9 billion shares(78.7%)
APC GROUP, INC.• Energy and Natural
resources• Listed on PSE (APC)
100%
224.3 millionshares
(50.1% of issued shares)
Tagaytay Highlands and Midlands developments SM PRIME HOLDINGS, INC.• One of the largest
integrated property developers in Asia
• Listed on PSE (SMPH)
PREMIUM LEISURE CORP.• Gaming Investments• Listed on PSE (PLC)
PREMIUMLEISURE & AMUSEMENT, INC. • Holding Company for
PAGCOR license• Operating agreement
with Melco Group
PACIFIC ONLINE SYSTEMS CORP.• Lease of Lottery and
Keno equipment• Listed on PSE (LOTO)
100%
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Presentation to Investors 16 October 2017
• 6.2 hectares of land: 4.2 hectares owned and 2.0 hectares leased through 2035 (renewable) from thePhilippine Social Security System (SSS) in PAGCOR Entertainment City, ASEANA Business Park, Paranaque City.
• City of Dreams Manila building, with more than 30 hectares of gross floor area.
Real Estate: Metro Manila
• Recurring rental income from land and building lease to the Philippine Subsidiary of Melco Resorts andEntertainment Limited (Melco).
• 9,734 square meters of land held for future development near City of Dreams Manila.
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Presentation to Investors 16 October 2017
Real Estate: Tagaytay Highlands and Midlands Complexes
• Premium residences in gated communities between 2,000 to 2,500 feet above sea level.
• Themed luxury residences situated about 1,000 feet above sea level with picture-perfect view of scenic Taal Lake
Highlands Projects Midlands and Greenlands Projects
Tagaytay Highlands International Golf Club
• 18-hole championship golf course• Scenic views of Taal Lake and Mt.
Makiling.
The Country Club at Tagaytay Highlands
• Fully-equipped Sports Center. Various F&B options.
• Swiss-engineered cable car ascending to mountain peak.
• Currently with 27 holes, and eventually 36 holes.
• Connected to Tagaytay Highlands by 48-seater Swiss Funicular System.
Tagaytay Midlands Golf Club
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Presentation to Investors 16 October 2017
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101018
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Plantation Hills
Saratoga Hills
MidlandsGolf Course
HighlandsGolf Course
The Woodlands Pinecrest Village
The Villas
Belleview
Lakeview Heights
Alta Mira
Lakeside Fairways
Tagaytay Highlands
International Golf Club
Tagaytay Highlands
Internatioal Golf Club
The Country Club
at Tagaytay
Highlands
Tagaytay Midlands
Golf Club
Land Held for Development – Tagaytay Highlands and Midlands Complexes
View of Taal Lake
View of Laguna de Bay
View of Mt. Makiling
Tagaytay
Highlands
66 Kilometers Road
Length from Manila
Manila
Location Map
Laguna de Bay
Taal Lake
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Presentation to Investors 16 October 2017
Land Held for Development – Lakelands
TagaytayMidlands
Lakelands(approx. 333 hectares)
21 Kilometers Road Length from Tagaytay Midlands
Taal Lake
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Presentation to Investors 16 October 2017
• Listed in the Philippine Stock Exchange, under ticker “APC”.• Belle is the largest shareholder, with about 3.7 billion shares and 48.8% ownership as of
3 August 2017.• Aragorn Power and Energy Corporation, a 90% -owned subsidiary of APC, has an active
Geothermal Renewable Energy Service contract with the Department of Energy for aproject in Kalinga province with a resource potential of 120-200 MW*, in partnership withChevron Kalinga Ltd. and Guidance Management Corp.
* From the Philippine Department of Energy “Geothermal Potential of the Cordillera Region, Philippines”
Investments – APC Group
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Presentation to Investors 16 October 2017
Premium Leisure Corp. (PLC) is a public company listed on the Philippine Stock Exchange that holds the gaming assets of Belle Corporation.
Through its wholly owned subsidiary, Premium Leisure and Amusement, Inc. ( PLAI), benefits from a Philippine Amusement and Gaming Corporation (PAGCOR) license to operate an integrated resort in Entertainment City, Manila.
Involved with Belle and Melco in City of Dreams Manila, which opened on 14 December 2014.
Owns a 50.1% stake in Pacific Online Systems Corp. (POSC), a company that develops and manages online computer systems, terminals and software for the parimutuel sector of the Philippine gaming industry.
Generous dividend policy that requires it to distribute at least 80% of prior year’s unrestricted retained earnings.
Overview of Premium Leisure Corp.
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Presentation to Investors 16 October 2017
Belle Historical Financials
*Pacific Online was consolidated into Belle’s financials starting June 2014. Prior to June 2014, Pacific Online’s net income was equitized in Belle’s income statement. For comparability, Pacific Online’s revenues and earnings for 2014 are shown herein on a full year basis.
2017 2016 2016 2015 2014
CONSOLIDATED
REVENUE 4,116 3,044 6,322 5,352 3,317
EBITDA 2,443 1,727 3,678 2,756 1,413
EBIT 998 680 3,167 2,225 1,349
Net income 2,171 1,425 3,096 1,772 2,557
Recurring net income 1,634 913 2,076 1,334 1,036
Belle dividend payments:
Regular 1,003 1,003 1,003 1,003 211
Special - - - 1,900 -
ROE 12.1% 6.4% 11.7% 6.8% 10.7%
City of Dreams Lease
Revenue 1,122 1,088 2,194 2,108 1,598
EBITDA 890 632 1,465 1,258 1,053
Net Income 451 250 602 595 485
Premium Leisure Corp. (excl. Pacific Online and intercompany dividends)
Revenue 1,464 702 1,643 756 39
EBITDA 945 544 1,187 640 (31)
Net Income 816 311 753 266 1,160
Pacific Online Systems Corporation (excl. intercompany dividends)*
Revenue 1,052 891 1,888 1,718 1,731
EBITDA 420 343 769 623 663
Net Income 247 200 392 323 346
Property Development and Management (excl. mark to market gains on club shares)
Revenue 478 363 586 590 474
EBITDA 188 208 257 235 260
Net Income 120 157 149 68 43
6 MONTHS FULL YEAR (Amounts in Php millions
except percentages)
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Presentation to Investors 16 October 2017
Belle Historical Financials
City of Dreams Lease= 1,122
Premium Leisure Corp (excl. Pacific
Online) = 1,464
Pacific Online Systems
Corporation = 1,052
Property Development and Management = 478
Revenue Mix 6 Months 2017(amounts in Millions of Php, except percentages)
36%
11%
City of Dreams Lease = 890
Premium Leisure Corp (excl. Pacific
Online) = 945
Pacific Online Systems
Corporation = 420
Property Development and
Management = 188
EBITDA Mix 6 Months 2017 (amounts in Millions of Php, except percentages)
36%
39%
17% City of Dreams Lease = 1,465
Premium Leisure Corp (excl. Pacific
Online) = 1,187
Pacific Online Systems
Corporation = 769
Property Development and
Management = 257
EBITDA Mix 2016 (amounts in Millions of
Php, except percentages)
40%
32%
21%
26%
27%
8% 7%
City of Dreams Lease= 2,194
Premium Leisure Corp (excl. Pacific
Online) = 1,643
Pacific Online Systems
Corporation = 1,888
Property Development and Management = 586
Revenue Mix 2016(amounts in Millions of Php, except percentages)
26%
35%
9%
30%
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Presentation to Investors 16 October 2017
Recent Dividend History
Declaration Date Payment Date Amount Stock Price on Declaration
Date
Dividend as a % of
Stock Price₱ millions ₱/ share
February 28, 2017(Regular Dividend)
March 30, 2017 ₱1,003 ₱0.095 ₱3.42 2.78%
February 29, 2016 (Regular Dividend)
March 29, 2016 ₱1,003 ₱0.095 ₱3.08 3.08%
July 31, 2015(Regular Dividend)
August 28, 2015 ₱1,003 ₱0.095 ₱3.70 2.57%
January 27, 2015(Special Dividend)
March 9, 2015 ₱1,900 ₱0.180 ₱4.50 4.00%
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Presentation to Investors 16 October 2017
Belle Corporation Contact Information and Disclaimer
Principal Investor Relations Contact: Manuel A. GanaCorporate Information Officer
Office Number: +632 662-8807
Email Address: [email protected]
Official Website: www.bellecorp.com
PSE Ticker BEL
Bloomberg Ticker BEL:PM
Reuters Ticker BEL:PS
DisclaimerExcept for historical financial and operating data and other information in respect of historical matters, the statement contained hereinare “forward-looking statements”. Any such forward-looking statement is not guarantee of future performance and involves a numberof known and unknown risks, uncertainties, and other factors that could cause the actual performance, financial condition or results ofoperation of SM and its subsidiaries to be materially different from any future performance, financial condition or results of operationimplied by such forward-looking statement.