Sec Form 17-A
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May 28, 2020 PHILIPPINE STOCK EXCHANGE 9th Floor, Philippine Stock Exchange Tower, 28th Street corner 5th Avenue, BGC Taguig City Attention: Mr. Jose Valeriano B. Zuño III Head - Disclosure Department PHILIPPINE DEALING AND EXCHANGE CORPORATION 29th Floor, BDO Equitable Tower Paseo de Roxas, Makati City Attention: Atty. Marie Rose M. Magallen-Lirio Head, Issuer Compliance and Disclosure Department Subject: Vista Land & Lifescapes, Inc.: SEC 17A – December 31, 2019 Gentlemen: Please see attached SEC 17A Report. Very truly yours, Brian N. Edang Officer-in-Charge COVER SHEET C S 2 0 0 7 0 3 1 4 5 S.E.C. Registration Number V I S T A L A N D & L I F E S C A P E S , I N C . (Company’s Full Name) L O W E R G R O U N D F L O O R , B U I L D I N G B , E V I A L I F E S T Y L E C E N T E R , V I S T A C I T Y , D A A N G H A R I , A L M A N Z A (Business Address: No. Street/City/Province) Brian N. Edang 226-3552 ext 0088 Contact Person Company Telephone Number 1 2 3 1 17-A 0 6 1 5 Month Day FORM TYPE Month Day Calendar Year Annual Meeting Secondary License Type, If Applicable Dept. Requiring this Doc. Amended Articles Number/Section Total Amount of Borrowings Total No. of Stockholders Domestic Foreign ---------------------------------------------------------------------------------------------------------- To be accomplished by SEC Personnel concerned File Number LCU Document I.D. Cashier SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-A ANNUAL REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SECTION 141 OF THE CORPORATION CODE OF THE PHILIPPINES 1. For the fiscal year ended December 31, 2019 2. SEC Identification Number 03145 3. BIR Tax Identification No. 006-652-678-000 4. Exact name of issuer as specified in its charter VISTA LAND & LIFESCAPES, INC. 5. Philippines 6. (SEC Use Only) Province, Country or other jurisdiction of Industry Classification Code: incorporation or organization 7. Lower Ground Floor, Building B, Evia Lifestyle Center, Vista City, Daanghari, Almanza II, Las Piñas City 1740 Address of principal office Postal Code 8. (632) 806-5758 Issuer's telephone number, including area code 9. N/A Former name, former address, and former fiscal year, if changed since last report. 10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Shares (net of 416,128,700 treasury shares as of 31 December 2019) 12,698,007,676 Shares Amount of Debt Outstanding P143.8 billion 11. Are any or all of these securities listed on a Stock Exchange? Yes [ X ] No [ ] d Name of Stock Exchange: Philippine Stock Exchange Class of securities listed: Common Stocks 13,114,136,376 Common shares have been listed with the Philippine Stock Exchange as of December 31, 2019 12. Check whether the issuer: (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation Code of the Philippines during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports); Yes [ x ] No [ ] (b) has been subject to such filing requirements for the past ninety (90) days. Yes [ x ] No [ ] 13. State the aggregate market value of the voting stock held by non-affiliates of the registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of a specified date within sixty (60) days prior to the date of filing. If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided the assumptions are set forth in this Form: P23.92 billion as of December 31, 2019 APPLICABLE ONLY TO ISSUERS INVOLVED IN INSOLVENCY/SUSPENSION OF PAYMENTS PROCEEDINGS DURING THE PRECEDING FIVE YEARS: 14. Check whether the issuer has filed all documents and reports required to be filed by Section 17 of the Code subsequent to the distribution of securities under a plan confirmed by a court or the Commission. Yes [ ] No [ ] NOT APPLICABLE DOCUMENTS INCORPORATED BY REFERENCE 15. Briefly describe documents incorporated by reference and identify the part of SEC Form 17-A into which the document is incorporated: Consolidated Financial Statements as of and for the year ended December 31, 2019 (incorporated as reference for Item 7 and 12 of SEC Form 17-A TABLE OF CONTENTS PART I – BUSINESS .................................................................................................................................... 1 ITEM 1. BUSINESS ...................................................................................................................................... 1 ITEM 2. PROPERTIES ................................................................................................................................ 27 ITEM 3. LEGAL PROCEEDINGS ................................................................................................................... 27 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ........................................................ 27 PART II – OPERATIONAL AND FINANCIAL INFORMATION ................................................................. 27 ITEM 5. MARKET FOR ISSUER’S COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS ........................ 27 ITEM 6. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION ............................................ 31 ITEM 7. FINANCIAL STATEMENTS ............................................................................................................... 53 ITEM 8. INFORMATION ON INDEPENDENT ACCOUNTANT AND OTHER RELATED MATTERS .............................. 53 PART III – CONTROL AND COMPENSATION INFORMATION ............................................................... 54 ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE ISSUER .................................................................. 54 ITEM 10. EXECUTIVE COMPENSATION ........................................................................................................ 57 ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT .............................. 58 ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS .............................................................. 60 PART IV – CORPORATE GOVERNANCE ................................................................................................ 61 ITEM 13. ANNUAL CORPORATE GOVERNANCE REPORT (ACGR) WILL BE FILED SEPARATELY ....................... 61 PART V – SUSTAINABILITY REPORT ..................................................................................................... 62 PART VI – EXHIBITS AND SCHEDULES ................................................................................................. 91 ITEM 14. EXHIBITS AND REPORTS ON SEC FORM 17 – C ........................................................................... 91 0 PART I – BUSINESS Item 1. Business Overview Vista Land & Lifescapes, Inc. (Vista Land) is one of the leading integrated property developers in the Philippines and the largest homebuilder in the country overall. The Company believes that it is one of the few leading integrated property developers in the Philippines that is focused on the mass market segment. The Company operates its residential and commercial property development business through six distinct business units. Camella Homes, Communities Philippines, Crown Asia, Brittany, and Vista Residences are focused on residential property development, while Vistamalls is involved in commercial property development. Briefly, these business units may be distinguished as follows: Camella Homes. For over 40 years, Camella Homes has serviced the affordable housing segment (houses priced below ₱5.0 million) in the Mega Manila area. It markets its houses primarily under the “Camella” brand. According to the July 2018 Philippine Survey and Research Center (“PSRC”) “MANA 2018” Study, Camella was acknowledged as the most preferred brand overall in the Philippine housing market, with a brand awareness rate of 98%. As of December 31, 2019, Camella Homes recorded ₱14,284.66 million in real estate revenues, representing 44% of the Company’s total real estate revenues; Communities Philippines. Communities Philippines and its subsidiaries offer residential properties outside the Mega Manila area under the “Camella” and “Crown Asia” brands. In the last five years, majority of Communities Philippines’ new projects were launched under the “Camella” brand, the Company’s affordable housing brand. The Company believes that Communities Philippines and its subsidiaries have the widest coverage of developments in the regions outside Mega Manila by any homebuilder in the Philippines and utilizes mostly Camella Homes’ expertise and designs to offer houses in areas outside of the Mega Manila area that it believes are on par, in terms of quality, with the developments in the Mega Manila area. As of December 31, 2019, Communities Philippines and its subsidiaries recorded ₱14,608.92 million in real estate revenues, representing 45% of the Company’s total real estate revenues; Crown Asia. Crown Asia caters to the upper mid-cost housing segment