June 28, 2017
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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) GLA (millions 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. ofHotel Rooms 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.