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FARTHER and FASTER C Ebu Holdings, Inc K C M Y RED 80K 40K K C M Y GREEN 80C 40C K C M Y BLUE 80M 40M K C M Y 80Y 40Y Paper K C M Y RED 80K 40K K C M Y GREEN 80C 40C K C M Y BLUE 80M 40M K C M Y 80Y 40Y Paper K C M Y RED 80K 40K K C M Y GREEN 80C 40C K C M Y BLUE 80M 40M K C M Y 80Y 40Y Paper K C M Y RED 80K 40K K C M Y GREEN FARTHER AND FASTER FARTHER C ebu Holdings, Inc ebu Holdings, . • 2017 Integrated Report 2017 Integrated FARTHER AND FASTER CEBU HOLDINGS IS MOVING FARTHER AND FASTER Farther and Faster reflects the spirit of collaboration that propels the work of Cebu Holdings to expand to emerging economic centers at a pace like never before. 2017 INTEGRATED REPORT FARTHER AND FASTER 1 ABOUT THIS REPORT Our pursuit to operate as a <IR> Framework and the Global society. We address current and sustainable company guides us to Reporting Initiative (GRI) Standards. future risks to our organization, move farther, reaching more people Our newly-adopted integrated recognize the industry’s outlook and becoming more inclusive than thinking to reporting gives us a and growth opportunities, and ever. This year, we reaffirm our broader perspective on the capitals align our corporate and managerial commitment to delivering shared that we utilize, our key activities strategies to gain more stability and value among our stakeholders by and outputs, the value we deliver, increase our significant contribution publishing a report that follows and the outcomes and impacts that to sustainable development. both Integrated Reporting we have on the environment and KEY FEATURES AND SCOPE » Presents consolidated data from (SEC) is reflected in the Information 102-12, 102-45, 102-50, 102-52, 102-54 fiscal year January 1 to December Statement sent to stockholders and is 31, 2017 coming from our internal available at our corporate website, via » 11th combined report and 1st business units and those of our www.cebuholdings.com. Integrated Report covering our general contractors for property performance on the financial, management (Ayala Property As in our past five reports, this report corporate governance, economic, Management Corporation) and has successfully completed the GRI social, and environment aspects construction (Makati Development Materiality Disclosures Service which » Insights into our programs and Corporation) verifies that GRI 102: General Standard initiatives that contribute to the » Where possible, this report provides Disclosures 2016 102-40 to 102-49 17 United Nations (UN) Sustainable three years of historical information were correctly located in both the GRI Development Goals and the Four so that there is sufficient basis for Content Index (see pages 132-137) Focus Areas of our parent company, comparison. and in the pages of this report. Ayala Land FEEDBACK 102-53 » This Report is prepared in ADDITIONAL REFERENCE accordance with GRI Standards 102-55 and ASEAN Corporate Governance Feedback and comments about our The company’s operational and Scorecard (ACGS) – see pages report can be emailed to financial performance filed with the 138-139 for the ACGS Index. [email protected]. Securities and Exchange Commission 2 Cebu Holdings, Inc. 2017 Integrated Report 04 OUR COMPANY » Joint message from the Chairman and President » Message from the Chief Finance Officer » Who We Are 26 OUR PERFORMANCE » Seagrove » » Cebu Business Park » » Cebu I.T. Park » » Gatewalk Central » » Amara » » Amaia Steps 58 STAKEHOLDER ENGAGEMENT 70 CORPORATE GOVERNANCE 116 THE YEAR IN FIGURES » Appendices » Indices » Financial Statements FARTHER AND FASTER 3 JOINT MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT 102-14 Cebu Holdings, Inc. sustained its growth path in 2017 as we focused on the continuous expansion and enhancement of our mixed-use estates in key cities in Metro Cebu. Through strategic partnerships, we have been able to move faster to build new economic districts that will extend the gains of property development to more communities. Our company has expanded its footprint across the province of Cebu and is now actively managing and developing four estates. Aside from Cebu Business Park and Cebu I.T. Park in Cebu City, we are now in Gatewalk Central in Mandaue City and Seagrove in Lapu-Lapu City. We are also present in Liloan through our seaside residential community, Amara. Creating and constantly evolving our mixed-use estates is our way of delivering on our commitment to foster economic growth and create livelihood opportunities for Cebuanos. We take pride in knowing that over 91,000 jobs were created by over 200 local and foreign companies within Cebu ANNA MA. MARGARITA B. DY CHAIRMAN 4 Cebu Holdings, Inc. 2017 Integrated Report Business Park and Cebu I.T. Park. In as Shopping Center of the Year - Large Meanwhile at Cebu I.T. Park, we are 2017, we also noted over 3,000 small Category in 2017 by the Department of currently constructing Central Bloc, business providing ancillary services Trade and Industry and the Philippine a stacked two-hectare development such as food, transportation, and Retailers Association for its initiatives which will showcase a regional mall accommodation around the estates. to constantly improve the retail offering close to 50,000 square meters experience. of retail space, two more office towers In the same year, we grew our net and another 214-room Seda Hotel. income by 11 percent to P753.4 We completed Tech Tower which million and revenues by 14 percent added 16,214 square meters to our GATEWALK CENTRAL to P3.1 billion. Our performance was total leasing portfolio and finished the The construction of Gatewalk Central driven by solid contributions from our BPI Cebu Corporate Center—an iconic in Subangdaku, Mandaue, is on full leasing business, which accounts for 69 project in partnership with Alveo Land speed and on target, as we expect percent of the total revenue. that offers office units for sale. this mixed-use estate to open its first phase in 2021. The 18-hectare CEBU BUSINESS PARK AND Property sales also improved as we mixed-use estate will offer a dynamic CEBU I.T. PARK sold units of Ayala Land Premier’s 1016 and highly-energized lifestyle Property development and commercial Residences and Park Point Residences, experience with modern residential leasing remained robust as we as well as Alveo’s Sedona Parc also in and commercial components. It will enhance our existing estates, Cebu Cebu Business Park. feature a regional mall which will add Business Park and Cebu I.T. Park. a total gross leasable area of 115,000 In 2018, Cebu Business Park will be square meters to our retail portfolio Ayala Center Cebu, located at the home to the first Seda Hotel in Cebu. upon its completion. heart of Cebu Business Park, continued The homegrown hotel brand by Ayala to enjoy high occupancy rate of 97 Land will have 301 rooms and will percent, as well as increasing merchant become a central convergence place for sales. The mall was also recognized business travelers. Through strategic partnerships, we have been able to move faster to “ build new economic districts that will extend the gains of property “ development to more communities. FARTHER AND FASTER 5 As a result of meaningful collaborations, CHI has lived up to its “ promise as a catalyst for progress in the Visayas, driven mainly by local talent. Through our mixed-use estates, we concretize our “ commitment to nation-building and sustainable development. SEAGROVE innovations in line with the four In the management of our estates, focus areas of Ayala Land, namely Site we constantly strive for efficient The year 2017 was highlighted by Resilience, Pedestrian Mobility and resource use and effective waste the launch of our newest mixed-use Transit Connectivity, Eco-efficiency and management. In 2017, we invested in estate in Punta Engaño, Lapu-Lapu Local Economic Development. various improvements including a new City. Located near Cebu’s airport and wastewater treatment facility to serve seaports, the 14-hectare Seagrove We plan and design our developments the growing community in Cebu I.T. is expected to become an exciting to make it more resilient to changes in Park. bayside, eco-fun destination, adding the environment by creating a healthy a new dimension to the leisure and balance of green open spaces and Our efforts in line with sustainability tourism industry in Cebu. built-up areas. were featured in a publication of the United Nations Development Its initial phase includes the As we prepare for our bayside Programme and the Philippine Business development of the first Holiday Inn development, Seagrove, in Lapu-Lapu, for the Environment. The book called Resort in the Philippines, as well as we initiated environment protection Transformational Business cites Cebu a boardwalk promenade with retail activities such as coastal cleanups with Business Park as the top example and entertainment concepts. We employees and coral reef studies to of how large-scale infrastructure in will be pouring in about P4 billion determine possible areas for nursery provincial capitals can bring inclusive in investment for land cost and and rehabilitation sites in the area. economic growth while driving development, as well as the hotel and We likewise collected wildings and business forward. According to the retail components during this period. seedlings of existing native and book, “CHI has poured in over P55 endemic beach forest tree species billion in land and infrastructure SUSTAINABILITY AND which we will propagate and use for investments to grow and expand Cebu INNOVATION future landscaping requirements. Business Park and Cebu I.T. Park—now As we accomplish our goals as a two of the leading economic hubs in company, it is important that the We also introduced innovations the south.” values of innovation and sustainability that push for pedestrian mobility are well-established in our operations.
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