Earnings Call for First Half 2018 August 8, 2018 STRONG CASH FLOWS DRIVEN BY DIVERSIFIED BUSINESS MODEL
RLC’s investment portfolio continues to account for a major share in Revenues, EBITDA and EBIT
REVENUES (in Php B) EBITDA (in Php B)
Investment Investment 22.81 22.52 Portfolio 12.05 12.48 Portfolio 20.31 +13% YoY 11.11 +12% YoY
66% 71% 13.10 7.00 67% 85% 85% 6.04 11.02 83% 66% 70% 84% 81% 33% 34% 29% 30% 34% 17% 15% 15% 16% 19%
EBIT (in Php B) NET INCOME (in Php B)
Investment Investment 8.27 8.56 Portfolio Portfolio 7.91 +9% YoY +12% YoY
80% 4.84 76% 78% 4.18 76% 70% 78% 78% 73% 69% 68% 24% 22% 20% 22% 27% 30% 22% 24% 31% 32%
Investment Portfolio Development Portfolio
2 FINANCIAL PERFORMANCE HIGHLIGHTS – 1HCY18 (PHP IN MILLIONS)
REVENUE EBITDA EBIT % to % to % to YoY YoY YoY 1HCY18 RLC 1HCY18 RLC 1HCY18 RLC TOTAL RLC 13,097 100% 19% 6,997 100% 16% 4,838 100% 16% MALLS 5,817 44% 11% 3,786 54% 11% 2,111 44% 8% OFFICES 1,800 14% 20% 1,562 22% 14% 1,219 25% 16%
HOTELS 977 8% 6% 321 5% -4% 210 4% -14%
IID 57 0% 853% 7 0% 143% 5 0% 130% RESIDENTIAL 4,446 34% 33% 1,320 19% 37% 1,292 27% 38%
Net Income up by 14% at Php 3,332
3 REVENUES
+11%
. 2nd largest mall operator in the Philippines with 49 malls nationwide, 9 within Metro Manila and 40 in other urban areas . 1,439,000 sqm in Gross Leasable Area . 2,704,000 sqm in Gross Floor Area EBITDA . 95% latest system-wide occupancy . Over 9,000 retailers +11%
Partners
EBIT
+8%
4 Robinsons Place Ormoc Opened: April 2018
Robinsons Place Pavia Opened: June 2018
5 REVENUES
+20%
. Leading IT-BPM office space provider with 445,000 sqm net leasable space . Total leased space for our 18 office developments is 95% . Dominant office landlord in the EBITDA Ortigas Central Business District +14%
Partners
EBIT
+16%
6 New Office Development
Exxa Tower NLA: 39,800 sqm Date Completed: June 2018
7 REVENUES
+6%
. Multi-branded hotel portfolio spanning essential service hotels to standard deluxe hotels. . Company-owned brands continue to expand and grow . 17 hotel properties with 2,652 rooms EBITDA across all segments -4%
International Brands
Company-owned Brands EBIT
-14%
8 NET SALES TAKE-UP REALIZED REVENUES +101% 7,429 +33%
3,696
EBITDA EBIT
+37% +38%
9 PROJECT LAUNCHES
Radiance Manila Bay South The Magnolia Residences Tower D Launched: February 2018 Launched: March 2018
Aurora Escalades Phase 2 of Springdale at Pueblo Angono Launched: February 2018 Launched: June 2018 10 REVENUES
+853%
Warehouse Facility
EBITDA
+143%
EBIT Turned Over in Q1CY18 +130% Location Muntinlupa City GLA 33,000 sq.m. Property Type Warehouse Completion 1st quarter of 2018 11 ROBUST GROWTH PROSPECTS
CAPITAL EXPENDITURE (Philippines) Capital expenditure program in line with overall corporate strategy
22,507 22,500 Investment Capex 16,202 16,984 Development Capex 13,309 13,405 13,245 14,800 Land Acquisition 7,555 10,769 10,619 7,251 7,068 3,528 5,031 3,849 3,000 4,376 5,382 4,244 1,683 4,798 5,734 4,700 3,906 1,682 955 1,971 CY2013 CY2014 CY2015 CY2016 CY2017 CY2018B 1HCY18
LAND BANK as of 30 June 2018 (Philippines) RLC will continue to scout for strategic land bank across the country
AREA In Has. ESTIMATED VALUE In Php B Metro Manila 30.5 Metro Manila 20.6 Luzon 498.5 Luzon 17.8 Visayas 125.8 Visayas 2.7 Mindanao 73.0 Mindanao 2.6 TOTAL 727.8 TOTAL 43.8
12 ROBUST GROWTH PROSPECTS
CHENGDU BAN BIAN JIE We have secured license to sell for condominium units Group 2/5/6 Ban Bian Jie Ji Plot Location Tou town, Wuhou District Plot Area 8.5 hectares Plot Ratio 2.6x Gross Floor Area 220,000 sqm Planned Development Mainly residential Total Land Price* RMB 1.31 B (USD 207.36 M; PHP 9.63 B) Nature of Acquired from government Acquisition through public auction Pre-selling Schedule 2018 * Excludes transactional fees Note: USD/RMB = 6.3561 and RMB/PHP = 7.31 as of 05 Oct 2015
13 ROBUST GROWTH PROSPECTS
+5% +9% +9% +18% 1.389 1.508 1.588 +28% 613
1.276 ) +22% 518 ) sqm 405
331 sqm
-RP Tagum -RP Iligan (thousands NLA GLA (millions (millions GLA -RP Ormoc -RP Galleria South -RP General Trias -RP Naga -RP Pavia -RP Magnolia Exp. -Cyber Sigma -Exxa Tower -Giga Tower -RP Jaro -RP North Tacloban -RP Tuguegarao -Galleria Cebu -Cybergate Delta One -Zeta Tower -Cybergate Galleria Cebu -RP Ilocos Exp. -RP Antique Exp. -RP Valencia -Ilocos -Robinsons Luisita Office -RP Tacloban Exp. -RP Butuan Exp. -Cyberscape -Cybergate Magnolia -Cybergate Naga One Gamma -Delta Tower Two
+12% +23% 3,448 10,255 +7% 3,086 2,516 9,288 9,099
2,357 8,624 8,723
Up
-
No. of Hotel Rooms Hotel of No. Sales TakeSales -GoH-Lanang Davao -Summit -Dusit Thani -GoH Naga Galleria Cebu Mactan Cebu -Goh Tuguegarao *5 GoH -Summit Tacloban -Summit Naga Franchises -GoH Iligan -Summit Greenhills
INFRASTRUCTURE AND INTEGRATED DEVELOPMENTS 14 KEY MESSAGE
1. Strong Earnings Growth: Net income up by 14% to P3.33B for 1HCY18 (16% YoY 2QCY18)
2. Stable Recurring Income: Investment portfolio revenues increased by 13% to P8.7B driven by our malls and office businesses • Malls Division revenues increased by 11% • Office Buildings Division revenues increased by 20% • Hotel and Resorts Division revenues increased by 6% • Infrastructure and Integrated Division revenues increased to P57.4M
3. Record Sales Take-up: Net sales take-up surged (1HCY18) +101% at P7.4B
4. Residential Revenues: Realized revenues increased by 33% to P4.4B
5. CAPEX Update: Reached 47% utilization mainly due to investment portfolio expenditure
15 THANK YOU!
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