Annual Shareholders’ Meeting Presentation
JUNE 28, 2017 44 SHOPPING CENTERS 67 RESIDENTIAL BUILDINGS STRONG CASHFLOW CONSUMER PLAY 35 HOUSING SUBDIVISIONS MULTIPLE LOCATIONS MULTIPLE BRANDS 13 OFFICE BUILDINGS 15 HOTELS LEADING BPO OFFICE SPACE PROVIDER DIVERSIFIED HOSPITALITY PORTFOLIO 17 MIXED-USE DEVELOPMENTS
2 A LEADING PHILIPPINE PROPERTY COMPANY
• Mall • Office Ilocos Norte • Residential RLC is a leading Philippine Projects •Mall property company, with broad • Mall Nueva Ecija Isabela geographical presence in Metro •Mall • Mall Tarlac Pangasinan •Malls Manila, Luzon, Visayas and •Residential Project Pampanga •Residential Projects • Mall Bulacan Mindanao, for all business divisions Rizal • Residential Projects •Malls National Capital Region Laguna •Malls and brands across all markets •Office Buildings Cavite •Malls •Hotels Batangas •Condominiums •Hotel • Residential Projects 17 MIXED-USE DEVELOPMENTS •Malls •Mall •Residential Projects •Hotel Antique •Mall 44 MALLS Leyte Capiz •Mall •Mall •Malls 13 OFFICE DEVELOPMENTS •Hotel Iloilo Cebu •Hotel •Mall Negros Occidental •Office •Hotel •Residential Projects 15 HOTELS •Malls Palawan •Hotel Agusan del Norte •Mall •Residential Project •Hotel 67 RESIDENTIAL BUILDINGS Negros Oriental Misamis Oriental •Mall 35 HOUSING SUBDIVISIONS •Go Hotel Davao del Norte • Mall as of 31 March 2017 • Residential Projects •Malls •Hotel Davao del Sur •Residential Projects •Malls South Cotabato
•Mall •Residential Projects
3 DIVERSIFIED BUSINESS MODEL AND EARNINGS BASE
MALLS INVESTMENT PORTFOLIO CY2016 Q1CY17 Revenue 66% 71% OFFICES Contribution EBITDA Contribution 85% 86%
DEVELOPMENTS EBIT Contribution 78% 80%
HOTELS
INTEGRATED DEVELOPMENT
PORTFOLIO AND CY2016 Q1CY17 Revenue Contribution 34% 29% RESIDENTIAL EBITDA Contribution 15% 14% EBIT
Contribution 22% 20%
NFRASTRUCTURE I
4 FINANCIAL PERFORMANCE HIGHLIGHTS
vs. vs. vs. FY16 CY16 Q1 CY17 (In Php Millions) SPLY SPLY SPLY
Revenues 22,512 +14% 22,809 +12% 5,434 -1%
Cost and Expenses 10,488 +16% 10,762 +17% 2,514 +0%
EBITDA 12,023 +13% 12,047 +8% 2,920 -2%
EBIT 8,452 +12% 8,273 +5% 1,968 -6%
Income before Tax 8,184 +8% 7,633 -4% 1,822 -16%
Net Income 6,150 +8% 5,755 -3% 1,381 -11%
CY2016 CONTRIBUTION
REVENUES EBIT
22% 34% 45% 6% 47%
8% 25% 13%
5 STRONG FINANCIAL POSITION
RLC has a sound financial position and capital base, and exhibits prudence in debt management
TOTAL ASSETS SHAREHOLDERS’ EQUITY (in Php B) (in Php B)
129.3 62.9 62.8 124.4
111.7 58.4
CY2015 CY2016 Q1CY17 CY2015 CY2016 Q1CY17
EARNINGS PER SHARE NET DEBT TO EQUITY
₱1.45 ₱1.41 60% 63% 51%
₱0.34
CY2015 CY2016 Q1CY17 CY2015 CY2016 Q1CY17
6 STABLE CASH FLOWS ANCHORED BY RECURRING INCOME AND REVENUE
RLC’s investment portfolio generates steady earnings flow boosted by the growth potential from its development portfolio
REVENUES (in Php B) EBITDA (in Php B) CAGR: +13% CAGR: +13% 13.86 16.55 17.46 20.31 22.81 7.50 8.73 9.23 11.11 12.05
67% 64% 66% 67% 66% 86% 82% 84% 83% 85%
33% 36% 34% 33% 34% 14% 18% 16% 17% 15% CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16 EBIT (in Php B) NET INCOME (in Php B) CAGR: +11% CAGR: +8%
5.37 6.21 6.37 7.91 8.27 4.28 4.32 5.10 5.95 5.76
70% 81% 75% 77% 76% 78% 82% 78% 76% 72%
30% 19% 25% 23% 24% 22% 18% 22% 24% 28% CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
Investment Portfolio Development Portfolio
7 REVENUES (in Php M)
+8%
9,385 10,138 +11%
2,432 2,689 . Second largest mall operator in the CY15 CY16 Q1CY16 Q1CY17 Philippines with 44 malls nationwide, 9 within Metro Manila and 35 in EBITDA (in Php M) other urban areas +8% . 1,276,000 sqm in Gross Leasable 6,804 Area 6,286 +10% . 2,420,000 sqm in Gross Floor Area 1,559 1,722 . 95% latest system-wide occupancy CY15 CY16 Q1CY16 Q1CY17 . Over 8,100 retailers EBIT (in Php M)
+1% 3,834 3,869 +11% 889 983 CY15 CY16 Q1CY16 Q1CY17
8 NEW MALL DEVELOPMENTS
Robinsons Galleria Cebu GLA: 58,900 sqm Date Opened: Dec. 2015
Robinsons Place Tagum Robinsons Place Gen. Trias Robinsons Place Jaro GLA: 34,700 sqm GLA: 33,700 sqm GLA: 23,200 sqm Date Opened: April 2016 Date Opened: May 2016 Date Opened: Sept. 2016
MALL EXPANSIONS GALLERIA REDEVELOPMENT
Robinsons Place Ilocos Robinsons Place Tacloban Robinsons Galleria Mall Expansion Expansion Redevelopment GLA: 16,500 sqm GLA: 15,000 sqm Completion: 2017 Date Opened: July 2016 Date Opened: Dec. 2016 9 Growth driven by strong domestic consumption
REVENUES (in Php B) GLA (in millions sqm) CAGR: +11% CAGR: +9% 10.138 8.351 9.385 7.571 1.276 6.582 1.081 1.151 0.910 0.976
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
EBITDA (in Php B) EBIT (in Php B) CAGR: +10% CAGR: +6%
6.286 6.804 3.869 5.194 5.623 3.420 3.834 4.601 3.071 3.265
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
10 REVENUES (in Php M)
+24%
3,004 2,430 +8%
683 734 . Leading BPO office space CY15 CY16 Q1CY16 Q1CY17 provider with 331,000 sqm net leasable space EBITDA (in Php M) . Total leased space for our 13 +19% office developments is 97% 2,714 2,278 . Dominant landlord in the +4% Ortigas Central Business 611 633 CY15 CY16 Q1CY16 Q1CY17 District
EBIT (in Php M)
+21% 2,085 1,727 +5% 457 480 CY15 CY16 Q1CY16 Q1CY17
11 NEW OFFICE DEVELOPMENTS
Robinsons Galleria Cebu Complex Date Completed: Sept. 2016 NLA: 8,000 sqm
Robinsons Place Ilocos Complex Date Completed: Sept. 2016 NLA: 7,000 sqm 12 Growth buoyed by robust demand from IT-BPM sector
REVENUES (in Php B) NLA (in thousands sqm) CAGR: +21% CAGR: +14%
331 3.004 275 310 2.430 1.650 193 193 1.419 1.444
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
EBITDA (in Php B) EBIT (in Php B) CAGR: +19% CAGR: +21%
2.714 2.278 2.085 1.582 1.727 1.362 1.390 1.120 0.970 1.014
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
13 REVENUES (in Php M)
+1% 1,797 1,807
+6%
429 456 CY15 CY16 Q1CY16 Q1CY17 . Multi-branded hotel portfolio spanning essential service hotels to standard and deluxe hotels, with 15 hotel EBITDA (in Php M) properties +5% . Company-owned brands continue to 643 673 expand and grow International Brands +8% 151 163
CY15 CY16 Q1CY16 Q1CY17
EBIT (in Php M) Company-owned Brands +5%
476 498
+8%
109 117 CY15 CY16 Q1CY16 Q1CY17
14 NEW HOTEL DEVELOPMENTS
Go Hotels Lanang Date Opened: Sept. 2016 No. of Rooms: 183
Karaksa Hotel Go Hotels Manila Airport Road Go Hotels North EDSA Location: Osaka, Kyoto Date Opened: Sept. 2016 Date Opened: Jan. 2017 No. of Rooms: 69 & 36 No. of Rooms: 199 No. of Rooms: 167 15 Growth boosted by flourishing hospitality industry
REVENUES (in Php B) No. of Hotel Rooms CAGR: +6% CAGR: +12%
1.807 1.580 1.797 1.441 1.500 2,174 2,357 1,790 2,019 1,505
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
EBITDA (in Php M) EBIT (in Php M) CAGR: +10% CAGR: +14% 673 563 643 467 533 476 498 352 397 296
CY12 CY13 CY14 CY15 CY16 CY12 CY13 CY14 CY15 CY16
16 SALES TAKE-UP REALIZED REVENUES (NET OF CANCELLATIONS) -4% 9,100 8,723 807 2,490 -26% 952 2,532 306 3,064 827 1,843 +17% 277 5,083 7,861 483 3,564 1,116 6,695 -20% 734 1,939 1,554 678 1,143 240 349 CY2015 CY2016 1Q2016 1Q2017 CY2015 CY2016 Q1CY16 Q1CY17
CY16 . EBITDA amounted to P1.86 billion . EBIT amounted to P1.82 billion
Q1 CY17 . EBITDA amounted to P402.5 million . EBIT amounted to P387.9 million
17 NEW RESIDENTIAL PROJECT LAUNCHES
Galleria Residences Cebu Tower 1 Acacia Escalades Brighton Bacolod Cebu City Pasig City Bacolod City Launch Date: Nov. 2015 Launch Date: Dec. 2015 Launch Date: Feb. 2016
Axis Residences Tower B Brighton Puerto Princesa The Residences at The Westin Mandaluyong City Puerto Princesa City Ortigas Center Launch Date: Feb. 2016 Launch Date: Oct. 2016 Launch Date: Oct. 2016
67 RESIDENTIAL BUILDINGS 35 HOUSING SUBDIVISIONS 18 +9% +8% +15% +1% 1.391 1.505 +16% +4% 1.262 1.276 1.056 1.095
.913 GLA (millions sqm) (millions GLA
FY2013 FY2014 FY2015 FY2016 Oct-Dec '16 CY2017 CY2018 4 New Malls 1 Expansion 6 New Malls 2 New Malls 4 New Malls 1 Expansion 3 New Malls 1 Expansion 1 Expansion 2 Expansions
Robinsons Place Naga Robinsons Place Iligan Robinsons North Tacloban Robinsons Place Butuan Exp. Date of Opening: 2H CY17 Date of Opening: 2H CY17 Date of Opening: 2H CY17 Date of Opening: 2H CY17
19 +28% +22% 518 +7% +42% +13% 404 310 331 331 275 193
NLA (thousands sqm) (thousands NLA FY2013 FY2014 FY2015 FY2016 CY2016 CY2017 CY2018 Cyberscape Tera Tower Galleria Cebu Galleria Cebu Cyber Sigma Exxa Tower Alpha Ilocos Ilocos Cybergate Naga Zeta Tower Cyberscape Cybergate Delta Cyberscape Beta Tarlac Gamma
Cyber Sigma Cybergate Delta Cybergate Naga Date of Opening: 2H CY17 Date of Opening: 2H CY17 Date of Opening: 2H CY17 20 +19% +19% +4% +15% +4% 2,815 3,348 +17% 2,357 2,174 2,263
1,623 1,896 No. ofRooms Hotel FY2013 FY2014 FY2015 FY2016 CY2016 CY2017 CY2018 Summit Galleria Cebu GoH- GoH-Lanang GoH-Lanang Summit Naga GoH- Summit Alpha Ortigas Butuan Davao Davao Dusit Thani Mactan Tacloban GoH-Naga Summit GoH-Iligan Magnolia GoH-Tuguegarao
Summit Galleria Cebu Summit Tacloban Go Hotels Iligan Date of Opening: 2H CY17 Date of Opening: 2H CY17 Date of Opening: 2H CY17 21 9,313
8,623 8,966 9,155 8,723 Up
- 5,749 Sales Take
FY2012 FY2013 FY2014 FY2015 FY2016 CY2016
22 CAPITAL EXPENDITURE AND LANDBANK (PHILIPPINES)
CAPITAL EXPENDITURE (Philippines) Capital expenditure program in line with overall corporate strategy 16,984 16,000 14,975 15,778 14,274 14,218 10,769 10,283 8,495 6,423 Investment Capex 6,009 7,867 Development Capex Land Acquisition 4,328 3,982 4,228 3,450 5,404 4,244 4,169 1,327 2,950 3,937 947 4,570 876 4,055 1,971 402 FY2013 FY2014 FY2015 FY2016 CY2016 Q1CY17 CY2017B
LAND BANK as of 31 Mar. 2017 (Philippines) RLC has sufficient land bank to support growth in the next 4-5 years
SUMMARY Area (has.) ESTIMATED VALUE In Php B Malls 207.2 Metro Manila 10.5 Condominiums 6.5 Luzon 12.4 Offices 10.4 Visayas 2.8 Homes 413.3 Mindanao 3.4 Hotels 3.5 TOTAL 29.1 TOTAL 640.9
23 RECENT DEVELOPMENTS
Acquisition in Philippines CAINTA PROPERTY
Land Development to commence in 2017
Ortigas Extension, Plot Location Cainta, Rizal Plot Area 18 hectares Planned Development Mixed-use Nature of Acquired from Acquisition Mitsubishi Corporation Year Acquired 2015
24 RECENT DEVELOPMENTS
Acquisition in Chengdu, China CHENGDU BAN BIAN JIE
Construction contract has been awarded Group 2/5/6 Ban Bian Jie Ji Tou Plot Location 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
25 THANK YOU!