Real Estate

F i n a n c i a l Infrastructure S e r v i c e s Power Generation

Industrial Telecom Technologies Analysts’ Briefing Full-year 2017 Financial and Operating Results W a t e r March 12, 2018 Healthcare

Social Commitment Education FY 2017 Financial Hig h lig ht s

Strong double-digit growth of and AC Energy boosted Ayala’s net earnings in 2017

FY 2017 Financial Results (₱ billions)

₱30.3 billion +16% Net Income • Driven by robust earnings of Ayala Land, AC Energy, and AG Holdings

₱35.8 billion +12% Equity in Net Earnings • Buoyed by double-digit growth primarily of Ayala Land, AC Energy, IMI, and AC Auto

2 FY 2017 Equity Earnings

Ayala Land and AC Energy bolstered Ayala’s equity earnings during the year

FY 2017 Equity in Net Earnings by Business Unit (In ₱ billions)

+21% +2% 11.9 10.8

-3%

+30% +1% 4.6 +2% 2.9 3.5 7x 1.2 0.9

Others

3 4Q 2017 Financial Hig h lig ht s

Ayala Land and BPI lifted the parent’s fourth-quarter net earnings

4Q 2017 Financial Results (₱ billions)

₱7 billion +10% Net Income • Bolstered by robust earnings from Ayala Land, BPI, and AC Energy – lifted by improved results at parent

₱8.9 billion +7% Equity in Net Earnings • Lifted by broad-based YoY earnings growth from Ayala Land and BPI

4 2017 Parent Capital Expenditure

We deployed ~77% of our budgeted capital spend, with a majority invested in AC Energy

Parent-level actual capex spent for FY 2017 (In ₱ Billion) 21 Budgeted Spent 16.1

9.5

5.4 4.9 3.2 3.3 2.9 2.7 1.6 2.4 0.3 0.2 0.5

Strategic Total Opportunities

4 2018 Planned Capital Expenditures

We continue to be positive about our trajectory, as reflected in higher group-wide planned capex for 2018

Ayala Group Planned Capex Ayala Parent Planned Capex

7% Others 8% 24%

9% 45% ₱249.4B 47% ₱51.8B 6% 13% 8%

7% 18% 3% 6% Strategic Opportunities

4 Financial Management

Our balance sheet remains at comfortable levels to finance our expansion initiatives and meet our debt and dividend obligations

ClickAs to of edit Dec Master 31, As of Dec 31, Schedule of DebtClick Maturities to edit Master1* 2016 2017 (₱ billions) 20 Audited Audited PHP USD PARENT Gross debt ₱76.0B ₱83.3B 10 Cash ₱16.4B ₱18.6B

Net debt ₱59.6B ₱64.7B 0 18 19 20 21 22 23 24 25 25 26 27 Net D/E ratio Total Parent Click to edit0.56 Master 0.59 Debt Profile* Equity YE2016 YE2017 LTV ratio 11.1% 6.4% Debt in ₱ 66% 58.5% Cash flow 2.04x 2.33x Debt with fixed rates 75% 92.6% adequacy ratio Blended cost of debt 4.3% 4.2% CONSOLIDATED Avg. remaining life 4.0 years 15.4 years Net D/E ratio Total Equity 0.63 0.69 *Excludes preferred shares 1Excludes perpetual bonds Summary of Business Unit Performance

A resurgence in property sales, combined with the strength of its leasing business, drove Ayala Land’s net earnings for the year

FY 2017 Financials KEY HIGHLIGHTS ▪ Property development revenues jumped 23% to ₱101.5 billion* on the back of new bookings and project completions ₱25.3 billion +21% ▪ Reservation sales reached ₱122 billion, up 13% ▪ Commercial leasing revenues grew to ₱31 billion, up 10% Net Income on new mall openings, stabilized occupancy of office spaces, and performance of hotels and resorts ▪ Established estates accounted for 54% of net income mix, while new estates and growth centers accounted for the remaining 46% ▪ Recurring income businesses contributed 35% of net income ▪ Capex spend for 2017 reached ₱91.4 billion ▪ 28 residential projects worth ₱88.8 billion were launched ▪ Five new malls (189,000 GLA) and six new offices (185,000 GLA) were opened ▪ Six new hotel and resort facilities were opened in 2017, Seagrove, Cebu adding 556 rooms to Ayala Land’s portfolio *Includes accretion income 6 Summary of Business Unit Performance

The sustained performance of BPI’s core banking business tempered the absence of one-off gains

1Q17FY 2017 Net Financials Income (₱ billions) 1Q 2017 ConsolidatedKEY HIGHLIGHTS Net Income (₱ billions) ▪ Total revenues climbed 7% to ₱71 billion ▪ Net interest income rose 13% to ₱48 billion on asset growth and improvement in net interest margin ₱22.4 billion +1.7% ▪ Non-interest income declined 5% to ₱22.9 billion in the Net Income absence of trading gains registered in 2016 ▪ Achieved 16% growth of fee-based income to ₱19.9 billion driven by cards, trust and investment management, insurance fees, bank commissions, and service charges ▪ Cost-to-income ratio was slightly higher at 54.3% on the bank’s continued digitalization initiatives ▪ Loan book recorded robust 16% growth to ₱1.2 trillion driven by corporate loans (accounting for 81% of total loans) ▪ Gross 90-day NPL ratio stood at 1.29%; ▪ Reserve cover ratio increased from 119 to 129% ▪ BPI created a new client group focused on SMEs ▪ It launched a stock rights offering of up to ₱50 billion in support of strategic initiatives

7 Summary of Business Unit Performance

Higher opex and depreciation charges from increased investments in its data network weighed on Globe’s net earnings

1Q17FY 2017 Net Financials Income (₱ billions) KEY HIGHLIGHTS ▪ Gross service revenues reached ₱127.9 billion, up 6% on demand for data-related products ▪ Mobile revenues rose 7% to ₱98.5 billion ₱15.1 billion -5% ▪ Mobile subscriber base stood at 60.7 million, a 3% decline Net Income due to change in prepaid subscriber reporting ▪ Mobile data now accounts for 44% of total mobile revenues ▪ Home broadband revenues were at ₱15.6 billion, up 7% on a 15% increase in its subscriber base for an end-2017 total of 1.3 million subscribers ▪ Corporate data segment increased 4% to ₱10.3 billion ▪ EBITDA grew 7% to ₱53.3 billion ▪ EBITDA margin at 42% ▪ Capex spend reached ₱42.5 billion in support of network infrastructure enhancements ▪ Rolled out digital payment platform through GCash scan- to-pay in malls, major retailers, and convenience stores

8 Summary of Business Unit Performance

Higher opex and business development costs tempered ’s bottomline

FY 2017 Financials KEY HIGHLIGHTS ▪ Revenues up 5% to ₱18.5 billion ▪ The contributions of Laguna Water and Boracay Water, as well as higher supervision fees recognized by Estate ₱6.2 billion +1% Water, balanced out flat revenue growth in the Manila Net Income Concession ▪ Operating expenses expanded 19% to ₱7.4 billion ▪ Higher billed volume across all business lines, with non- Manila Concession segments posting 14% growth ▪ Total billed volume at 738.7 mcm, 3% higher y-o-y ▪ 2% increase in Manila Concession billed volume helped offset impact of tariff reduction ▪ 48% increase in capital expenditures for 2017 ▪ Completed Marikina North Sewerage Treatment Plant (100 million liter daily capacity) ▪ Undertaking joint ventures in Ilagan and Leyte, and acquired 18.72% of Thailand’s Eastern Water and 20% of Indonesia’s PT Sarana Tirta Ungaran

9 Summary of Business Unit Performance

Fresh equity earnings contribution from its geothermal asset and better performance of wind farms drove AC Energy’s net earnings

FY 2017 Financials KEY HIGHLIGHTS ▪ Equity earnings from operating assets up 66% to ₱2.5 billion, propelled by fresh contributions from geothermal asset and strong performance of wind platforms ₱3.5 billion +31% ▪ Services income derived from financial close of a new Net Income power plant also boosted net earnings ▪ To date, AC Energy has an attributable capacity of ~1,300MW of conventional and ~300MW of renewable energy

12 Summary of Business Unit Performance

AC Energy made new investments in the Philippines, Indonesia, and Vietnam to support its growth strategy

1Q 2017 ConsolidatedStrategic Net acquisitions Income (₱ and billions) developments

Salak & Bronzeoak Development Sidrap Wind Ninh Thuan GNPower Darajat Platform Farm Solar Project Dinginin Geothermal (Indonesia) (Vietnam) Unit 2 (Indonesia)

▪ 19.8% ownership stake ▪ Visayas Renewables ▪ AC Energy DevCO • Located in Sidrap, • Initial phase of 30 MW ▪ Project financing for ▪ Partnership with Star owns equity stakes in provides operations South Sulawesi, solar project broke Unit 2 of GNPD’s 2 x Energy Group, Star the following and management Indonesia ground in January 668 MW coal fired Energy Geothermal renewable energy support to: • Partnership with UPC 2018 power plant in Bataan and EGCO assets: 1. San Carlos Solar Renewables Indonesia • Investment for this achieved financial ▪ ~637MW total Energy Ltd. phase is expected to close in Dec 2017 capacity 1. San Carlos Solar 2. Negros Island Solar • ~75MW total reach 800 billion VND ▪ Unit 2 scheduled for ▪ ~126MW in Energy Energy generating capacity • Partnership with BIM completion by 2020 attributable capacity 2. Negros Island Solar 3. Monte Solar Energy • First utility-scale wind Group of Vietnam to ▪ Approximately 50% Energy 4. San Carlos BioPower farm project in develop over 300 MW ownership stake 3. Monte Solar Energy 5. South Negros Indonesia of solar power projects ▪ Estimated project cost BioPower in Ninh Thuan at US$1.7 billion province 10 Summary of Business Unit Performance

AC Energy is restructuring its businesses to enable more focused strategies and greater flexibility

GN Power SLTEC Northwind Power North Luzon Montesol Mariveles Renewables

Salak and Darajat Small Island Visayas GNPower GNPower Geothermal Power Projects Renewables Kauswagan Dinginin

Sidrap Project Ninh Thuan project Summary of Business Unit Performance

The improved performance of AC Industrials’ electronics manufacturing and automotive retail units boosted earnings

FY2017 Financials 1Q 2017 ConsolidatedIMI Key Highlights Net Income (₱ billions) • Net income jumped 21% to US$34 million on contributions of recent acquisitions, and industrial and auto segments • Revenues exceeded US$1 billion mark during 2017 ₱1.2 billion +4% • IMI stock rights offering raised ₱4.998 billion AC Industrials • Acquired 80% of UK-based STI Enterprises Limited in April Net Income AC Automotive Key Highlights • Net income at ₱671 million, a 36% increase • Revenues up 37% to ₱31.2 billion on strong sales • AC Auto sold 26,976 units across all brands in 2017— equivalent to a 5.7% market share

AC Industrials Key Highlights • Continues to expand its global portfolio of industrial, disruptive technologies through strategic acquisitions • 94.9% of MT Technologies GmBH • 78.2% of Merlin Solar Technologies, Inc.*

*following the close of the transaction and 13 other related activities Summary of Business Unit Performance

AC Industrials’ strategic acquisitions support its goal of harnessing disruptive technologies in the industrial space

1Q 2017 Consolidated NetStrategic Income acquisitions(₱ billions)

KTM VIA Optronics STI Enterprises MT Technologies Merlin Solar Motorcycles Ltd. GmBH Technologies, Inc.

▪ AC Auto and KTM formed a ▪ IMI acquired 76% of ▪ IMI acquired 80% of UK- • AC Industrials acquired • AC Industrials acquired joint venture company that German-based VIA based STI Enterprises Ltd. 94.9% of German-based MT 78.2% of US-based Merlin will develop, construct, own, Optronics in August 2016 Technologies GmBH Solar Technologies, Inc. and manufacture KTM ▪ STI provides electronics motorcycles ▪ VIA is a leading optical design and manufacturing • MT is an automotive • Merlin develops bonding and display solutions in both circuit supplier of models, tools, differentiated solar ▪ Largest European solutions provider with board assembly and full and plastic parts to solutions resulting in motorcycle manufacturer in applications across a wide box-build manufacturing for automotive original products with high the world variety of sectors high-reliability industries equipment manufacturers durability, flexibility, and including the aerospace, and automobile Tier 1 increased solar output ▪ Over 1,800 units since defense, and security suppliers production started in June sectors 2017 Summary of Business Unit Performance

We are strengthening the operations of our existing public-private partnership projects, while exploring new opportunities for growth

1Q17 Net Income (₱ billions) Public-Private Partnership1Q Projects 2017 Consolidated Net Income (₱ billions)

LRT1 MCX AFCS

▪ Improved average daily ridership to ▪ Serves an average of ~29,000 vehicles ▪ Rolled out ~4.6 million cards ~435,000, a 6% increase from 2016 daily, a 20% increase from 2016 ▪ Accumulated ~₱11.8 billion in transaction ▪ Increased available LRVs from 77 to 109, ▪ Petition for toll rate adjustment received value across rail, bus and retail platforms since taking over operations in Sept. 2015 by the Toll Regulatory Board ▪ Improved headway to 3.35 minutes, from 3.61 minutes in 2016 ▪ Rail replacement project completed in 2017, while station improvements are ongoing

12 Summary of Business Unit Performance

We are strengthening the operations of our existing public-private partnership projects, while exploring new opportunities for growth

New Opportunities 1Q 20179M17 Consolidated Operating Statistics Net Income (₱ billions) 1Q 20179M17 ConsolidatedProject Operating highlights Net Statistics Income (₱ billions)

~₱350 billion Project cost over life of concession 1Q17 Net Income (₱ billions)

NAIA Rehabilitation

• Unsolicited proposal to rehabilitate, upgrade, expand, operate, and maintain NAIA (February 2018) • Changi Airport Consultants Pte. Ltd. to provide technical support • As part of a consortium with Aboitiz InfraCapital, Alliance Global, Group, AEDC, Filinvest Development Corporation, JG Summit Holdings, and Metro Pacific Investments Corporation

12 Summary of Business Unit Performance

We are strengthening the operations of our existing public-private partnership projects, while exploring new opportunities for growth

New Opportunities1Q 20179M17 Consolidated Operating Net Statistics Income (₱ billions) 1Q 20179M17 ConsolidatedProject Operating highlights Net Statistics Income (₱ billions)

60% AC Infra ownership

1Q17 Net Income (₱ billions)

Fulfillment solutions

• Signed Investment Agreement to invest in a fulfillment solutions company • AC Infra to hold up to 60% of outstanding common shares; remaining 40% to be held by ZALORA affiliate Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg

12 Summary of Business Unit Performance

Our health and education businesses continue to expand their reach and improve operations to provide critical services to more Filipinos

▪ Generika’s revenues increased 15% to ₱3.3 billion, ▪ Total student population of over 24,000 across on improved sales and store expansion APEC schools and University of Nueva Caceres ▪ Opened 100 new stores, for a total footprint ▪ APEC expects to graduate first cohort of 2,000 of 750 at year-end Grade 12 students in June 2018 ▪ Generika won the inaugural Inclusive Business ▪ UNC expects to graduate around 700 students in Award at the 10th ASEAN Business Awards March 2018 ▪ FamilyDOC served over 85,000 unique patients ▪ APEC has 23 sites across Metro Manila, Cavite, Rizal across its 25 community-based clinics* and Batangas ▪ Rolled out a pilot FamilyDOC Express inside a ▪ UNC is preparing for the return of the college Generika drugstore freshmen in SY 2018-19 by building a 3-storey ▪ Clinic network now covers Cavite, Laguna, Las facility that will provide 20 additional classrooms Pinas, Paranaque, Taguig, Pateros, Pasig, and and 4 laboratories Quezon City 15 *As of February 2018 Summary of Business Unit Performance

Our health and education businesses continue to expand their reach and improve operations to provide critical services to more Filipinos

FY 2017 Financial Results

₱3.3 billion +15% Generika revenues ▪ Generika’s revenues increased 15% to ₱3.3 billion, on improved sales and store expansion ▪ Opened 100 new stores, for a total footprint of 750 at year-end ▪ Generika won the inaugural Inclusive Business Award at the 10th ASEAN Business Awards ▪ FamilyDOC served over 85,000 unique patients across its 25 community-based clinics* ▪ Rolled out a pilot FamilyDOC Express inside a Generika drugstore ▪ Clinic network now covers Cavite, Laguna, Las Pinas, Paranaque, Taguig, Pateros, Pasig, and Quezon City 15 *As of February 2018 Summary of Business Unit Performance

Our health and education businesses continue to expand their reach and improve operations to provide critical services to more Filipinos

FY 2017 Operating Statistics

24,000+ Total student population ▪ Total student population of over 24,000 across APEC schools and University of Nueva Caceres ▪ APEC expects to graduate first cohort of 2,000 Grade 12 students in June 2018 ▪ UNC expects to graduate around 700 students in March 2018 ▪ APEC has 23 sites across Metro Manila, Cavite, Rizal and Batangas ▪ UNC is preparing for the return of the college freshmen in SY 2018-19 by building a 3-storey facility that will provide 20 additional classrooms and 4 laboratories

15 Summary of Business Unit Performance

Ayala is ramping up its education business through mergers and acquisitions

Potential student population

~50,000+ Student population after acquisition of National Teachers College and ▪ January 2018: Signed a non-binding term sheet potential merger with for a potential merger with iPeople Inc., including its subsidiary Malayan Education System, Inc. iPeople, Inc. (operates Mapua University in Intramuros and Makati and also Malayan Colleges in Laguna and Davao); subject to confirmatory due diligence, final terms, corporate and regulatory approvals. ▪ February 2018: Executed a share purchase agreement for the acquisition of approximately 96% shares of National Teachers College; subject to regulatory approvals.

15 Business Overview

We continue to be positive about our growth trajectory as we move closer to our 2020 goals

Increasing our profitability by doubling our Diversifying the portfolio by increasing net income and improving return on common contributions of emerging businesses and equity expanding international businesses

Net Income and Return on Common Equity Equity Earnings from Emerging and International Businesses

50.0 Contribution of Contribution of 2X Emerging International Businesses Businesses 20% 10% 30.3 16% 26.0 7% 22.3 11.8% 12.4% 15% 5% 12.1% 12.6% 13.2% 3%

2015 2016 2017 2018 2019 2020 2015 2016 2017 2020 2015 2016 2017 2020

24 International Expansion

Ayala is expanding its global footprint through its various businesses

25 Key Takeaways

Key Takeaways

Strong performances of Ayala Land and AC Energy fueled our net earnings in 2017, lifted by transaction gains

We remain positive about the environment with higher group- wide planned capital spending

We continue to make headway in our emerging businesses with recent strategic developments

We have a comfortable balance sheet that can support our investments and fulfill our debt and dividend obligations

16 DISCLAIMER

Statements in this presentation describing the Company’s objectives, projections, estimates, expectations may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include, among others economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws, and other statutes and incidental factors.

For more information, please contact: Ayala Corporation – Investor Relations Unit

[email protected] http://ayala.com.ph/investor_relations