Building a Strong Platform for Recovery, Renewed
Total Page:16
File Type:pdf, Size:1020Kb
2020 INTEGRATED REPORT BUILDING A STRONG PLATFORM FOR RECOVERY, RENEWED GROWTH, AND RESILIENCE Ayala Land’s various initiatives on stakeholder support, investment, and reinvention pave the way for recovery PAVING THE WAY FOR RECOVERY AND SUSTAINABLE GROWTH The ongoing COVID-19 pandemic and the natural calamities that of digital platforms to reach and engage buyers. Staff of APMC, struck the Philippines in 2020 are still being felt by Filipinos to this the company’s property management firm, stayed-in its managed day. Ayala Land’s swift response to face these challenges showed properties and communities while the enhanced community the resilience of both the company and its people. quarantine was enforced. In a strategic pivot, ALIzens executed a five-point action plan— Helping the Community protecting the workforce, financial sustainability, serving customers, Ayala Land employees raised PHP82.6 million under the Ayala helping the community, and thinking ahead towards recovery. Land Pays It Forward campaign to provide medical supplies and This action plan enabled Ayala Land, its employees, and its personal protective equipment to three COVID-19 designated communities to withstand the challenges and position for recovery. treatment hospitals. The company helped raise PHP425 million for Project Ugnayan and allocated PHP600 million in financial With the continued trust and confidence of its shareholders and assistance to more than 70 thousand “no work-no pay” contingent stakeholders, Ayala Land will count on bayanihan (community personnel during the critical first weeks of the quarantine. spirit) to move forward and pave the way for recovery and Recognizing the difficulties of its mall merchants, Ayala Land sustainable growth. waived PHP6.15 billion in rent and adjusted its rental scheme to assist in their economic viability. Protecting the Workforce Ayala Land immediately moved to secure the safety of its people. MDC, Ayala Land’s construction arm, established several A task force was created to implement health and safety protocols COVID-19 facilities —World Trade Center Metro Manila, Philippine across the organization. Employees were given access to Red Cross Biosafety Laboratory, Sta. Ana Hospital Manila healthcare services and working from home was enabled through Molecular Testing Laboratory, and 296 swabbing booths in several digital platforms. Frontliners were provided the required resources key locations, among others. AirSWIFT conducted 75 flights for to safely serve customers and communities. stranded tourists in various local destinations to Manila and Clark in cooperation with the Department of Tourism (DOT) and foreign Financial Sustainability embassies. Free shuttle services were also provided to medical To ensure financial sustainability, Ayala Land focused on preserving frontliners in Bonifacio Global City (BGC). the value of the company by maintaining adequate liquidity, keeping its businesses operating while ensuring that cash inflows supported Thinking Ahead to Recovery expenses, and strengthening its balance sheet for added margin of In the midst of the pandemic, Ayala Land remains hopeful that the safety given the uncertain duration of this health crisis. economy will continue to improve as the vaccine rollout continues to gain traction in 2021. The company’s business units are carefully Serving the Customers adjusting their strategies and practices to strengthen their market Following health and safety protocols, offices and other position and adapt to the new environment. With its institutional commercial leasing properties remained operational to cater to capability and strong balance sheet, Ayala Land is working tenants and locators. Malls ensured continued access to essential towards a V-shaped recovery. goods and services. Meanwhile, residential brands maximized use 2020 INTEGRATED REPORT 1 2 AYALA LAND, INC. 2020 INTEGRATED REPORT 3 4 AYALA LAND, INC. 2020 INTEGRATED REPORT 5 ABOUT THIS REPORT AYALA LAND’S INTEGRATED REPORT is released to the public on the same day as the Annual Stockholders’ Meeting. This report, released on April 21, 2021, was prepared in accordance with the International Integrated Reporting <IR> framework, developed by the International Integrated Reporting Council, referencing the Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The financial and non-financial information cover Ayala Land’s operations for the calendar period ending December 31, 2020. Except for employee data, the sustainability information on the operations of MCT Bhd., QualiMed, and Merkado Supermarket is not included in this report. The specific boundary and business units to which certain performance indicators are most material and applicable are specified in the Sustainability Reporting Index on page 162 of this report, consistent with the topic boundaries reported in previous periods. Corporate governance practices cited in this report are based on metrics defined by the ASEAN Corporate Governance Scorecard. This report is externally assured by independent assurance provider DNV. Economic, environmental, social, and governance indicators were assured using the DNV Report Verification Protocol (VeriSustain). Except for the external assurance statement, DNV was not involved in the preparation of any statement or datum in this report. This report may be downloaded at https://ir.ayalaland.com.ph. In case of questions or clarifications on its contents, you may contact Ayala Land Investor Communications and Compliance Division at [email protected]. The Environmental Stewardship and Social Engagement sections of this Integrated Report may be read in conjunction with the environmental and social data packs at https://ir.ayalaland.com.ph/sustainability/sustainability-data-and-performance. For more information on Ayala Land’s sustainability strategy, management approach and targets, please visit https://ir.ayalaland.com.ph/sustainability. 6 AYALA LAND, INC. TABLE OF CONTENTS 8 About the Company 9 Business Lines 11 Performance Highlights 12 Chairman’s Message 16 President’s Report 22 CFO’s Report 26 Business Review 50 Our Leaders 64 Business Model 76 How Ayala Land Creates Value 78 Sustainability Four Focus Areas 82 Environmental Stewardship 96 Social Engagement 110 Corporate Governance and Risk Management 138 Financial Review 162 Sustainability Reporting Index 2020 INTEGRATED REPORT 7 ABOUT THE COMPANY Ayala Land Inc. is the largest property developer in the Philippines with a solid track record in developing large-scale, integrated, mixed-use, and sustainable estates that are now thriving economic centers. Following the success of the Makati Central Business District (Makati CBD), Ayala Alabang, Cebu Park District, Bonifacio Global City (BGC), and NUVALI, we continue to increase our footprint by building estates that reach and benefit more people. With 12,483 hectares in our land bank, 30 estates, and presence in 57 growth centers across the country, we offer a balanced and complementary mix of residential developments, shopping centers, offices, hotels and resorts, and strategic investments. Construction and property management services are led by our subsidiaries Makati Development Corporation and Ayala Property Management Corporation, respectively. We pioneer standards and practices that reflect the value we place on sustainability in all our developments. As a responsible corporate citizen, we act with integrity, foresight, and prudence. Focused on our vision of “enhancing land and enriching lives for more people,” we empower our employees to deliver quality products and services and build long-term value for our shareholders. OUR VISION OUR OPERATING PRINCIPLES Enhancing land, enriching lives for more people We Build a Strong Brand. OUR VALUES There is an Ayala Land in each of us. We represent the brand. The brand exemplifies integrity, Leadership professionalism and excellence. We design, build, We allow people to make decisions within their limits and operate quality products, and create enriching of authority and to be accountable for their actions. experiences for our customers. Integrity We Empower Our People. We do the right thing. We develop and support our people, while holding them accountable and building a strong sense of Vision ownership for delivering our products and services. We build with the future in mind. We Make Things Simple and Easy. Excellence We do things in a straightforward manner and put We give our best in all that we do. more value in efficiently delivering quality products and effective solutions. Malasakit (Compassion) We care enough to go the extra mile. We Create Value for the Community. Beyond delivering fair returns, we create value over time for our communities so they can enjoy a well-lived life for generations to come. We are Stewards of the Business. We invest and use company resources prudently. We take care of what is entrusted to us. 8 AYALA LAND, INC. BUSINESS LINES ESTATE DEVELOPMENT PROPERTY DEVELOPMENT Established Estates Residential Brands Makati CBD (950 ha), Makati City, Metro Manila, 1948; AyalaLand Premier (Luxury) Ayala Alabang (670 ha), Muntinlupa City, Metro Manila, 1970; ALVEO (Upscale) Cebu Park District (78 ha), Cebu City, Cebu, 1990; Avida (Middle Income) Bonifacio Global City (240 ha), Taguig City, Metro Manila, 2003; Amaia (Entry Level) NUVALI (2,290 ha), Santa Rosa City, Laguna, 2009 BellaVita (Socialized)