FORGING AHEAD IN NEW MARKETS WITH A SUSTAINABLE GROWTH PLAN 2014 ANNUAL REPORT I. Company History II. The Company’s Vision III. Financial Highlights IV. Message to Stockholders V. Brand Collaborations VI. Our Communities VII. Our Projects VIII. Highlights of 2014 IX. Corporate Governance X. Corporate Social Responsibility XI. Awards, Citations, Nominations Company History How It All Started Century Properties was founded by Jose E.B. Since its listing on the Philippine Stock Exchange Antonio in 1986, the same year that became a turning in 2012, the company has completed 7 buildings, point in the Philippines’ political and social history. As totaling 5,233 units with gross floor area of 447,931 Filipinos rebuilt their lives after the peaceful People square meters. Power Revolution, Century Properties was laying the foundation for what was to become something big. The company’s roster of noteworthy developments include the upcoming Century Spire, which received A lean start-up of six individuals of modest means but the Asia Pacific Property Awards for Best Mixed- huge aspirations, Century Properties initially ventured use Development in the Philippines for 2015; the into real estate marketing for third-party real estate Azure Urban Resort Residences, winner of the Best developers. After tremendous success, the company Condo Development Award in the Philippines at then branched into property management and then, the Southeast Asia property Awards for 2015; the eventually, real estate development. 73-storey Gramercy Residences, the first Fully- serviced and Hyper-Amenitized residential building in Raised PHP 1.6 billion Through the years, Century Properties earned a the Philippines, and the award-winning Essensa East from 800 million shares reputation for its ability to revolutionize housing Forbes in Fort Bonifacio. issued, increasing free concepts in the country, including the concept of Completed “backdoor float to 33.2% “fully-fitted, fully-furnished units”, which is now an Other awards received by the company include Top listing” with EAPRC2 industry standard. Ten Developers in the Philippines awards in 2013 2014 and 2014 from BCI Asia, Real Estate Personality of Issued PHP 1.6 billion The company has, likewise, been known for its the Year in 2012 from Southeast Asia Awards, Best convertible bond to strategic collaborations with global brands such as Structured Trade Finance Solution 2014 from The Dutch pension fund APG Trump, General Electric, Missoni Home, Versace Asset Award, and Rising Stars by Finance Asia in Launched its first Home, Paris Hilton, Daniel Libeskind, Armani Casa, 2013. large-scale house Forbes and yoo inspired by Starck. Began development and lot development of upscale Century Properties has, certainly, come a long way Began 2012 condominiums 2013 Aside from its quality residential developments, from its humble beginnings in 1986. From the initial Operations Century Properties was the first to develop medical six individuals at inception, the company now has arts facilities, from its early Medical Plaza projects in over 3,000 employees in development operations, Opened Century City Mall, the company’s Makati City and Ortigas, to its newest medical arts sales and marketing, and construction. It also has 2006 – 2009 building, Centuria Medical Makati, the first one- over 4,000 in-house agents and brokers in the first retail mall stop, outpatient IT-medical center in the Philippines. Philippines and abroad. 2010 – 2011 2000 Copleted maiden Centuria will also cater to medical tourists. 1989 With its growth and experience of almost 30 years, offering of PHP 2.7 Almost 30 years since its inception, Century Century Properties remains committed to deliver 2004 billion Unsecured Fixed Rate Retail Bond Properties has become one of the most highly ground-breaking, quality real estate that can be 1991 – 1994 PHP 2.3 billion re-IPO experienced real estate companies in the country. considered truly world class. 1986 selling 1.33 billion shares, increasing Completed issuance free float to 27% of stock dividend with Expanded into large-scale stock dividend rate of mixed-use developments 20.66% with Century City Entered the luxury Completed Centuria CPMI1, the country’s condominium segment Medical Makati, first independent Entered affordable to with the completion of the country’s first real estate property middle-income segment Essensa East Forbes one-stop, outpatient management company, IT-medical center was established (1) Century Properties Management Inc. (2) East Asia Power Resources Corporation Our vision is to be the Philippines’ We strive for innovation, pursuing fresh The foremost developer of innovative, well- ideas and architecture so that everything designed, sustainable residential and we make looks, feels, and behaves like commercial developments, and to be nothing else on the market. Company’s the trusted partner of global citizens in realizing their goals of owning a home or We adapt sustainable practices and an investment property in the Philippines. find that preserving our planet for future Vision generations is a fun and engaging part of We hold fast to the principles of good our development philosophy. design and proper construction, knowing that successful projects depend on We value every single Century Properties their mastery and the application of best stakeholder like family and are committed practices. to their dignity, personal growth, and wellbeing by providing tangible love and We work with the most trusted names in care through superior products and architectural design and luxury living to services. provide our clients with great properties of life-enhancing value. We are listeners, preferring hard truth over false acclaim, as honest appraisals are We treasure talented individuals and the powerful means of growth and progress. synergy they create when working as a solid, committed team. We are pioneers, knowing that to influence an unknowable future we must We work with purpose, creating properties never be afraid to step out in humble faith. that surpass the needs of our clients, encourage communities, and enhance the surrounding landscape. Financial Highlights Significant Growth Since Listing Sustained Earnings Growth on the Philippine Stock Exchange Key Income Statement Details Gross profit from real estate Total revenues (Php Million)* development (Php Million)* In Million Php 2011 2014 3-Year CAGR CAGR: 39.5% Margin (%) Revenue 4,702 12,761 39.5% 42 45 42 46 12,761 NIBT 1,247 3,171 36.5% 10,809 CAGR: 44.7% 5,306 NIAT 866 2,159 35.6% 9,611 4,192 Amount of Credit Facilities 2,395 16,740 91.2% 3,962 2011 2014 change 4,702 Interest Rate (1) 8.9% 5.6% -3.3% 1,751 2011 to 2014 No. of Buildings Completed 7 Gramercy, Knightsbridge, Rio, Santorini, St. Tropez, Projects 2011 2012 2013 2014 2011 2012 2013 2014 Century City Mall, Centuria (*) With Interest Accretion Units Completed 5,233 units GFA Completed 447,931 sqm Note: (1) Excludes interest rate for the subordinated secured loan facility with Phoenix Property Investors amounting to USD 30 million which is not yet availed EBITDA (Php Million) Profit After Tax (Php Million) Margin (%) Margin (%) Healthy Balance Sheet 29 27 26 25 18 19 17 17 CAGR: 55% 3,249 CAGR: 35.6% 2,159 Amount in Php Million 2011 2012 2013 2014 2,810 2,603 1,850 1,845 Cash and Cash Equivalents 367 902 1,439 4,429 Total Assets 10,033 18,556 26,165 31,650 1,363 866 Total Borrowings 883 3,661 6,039 10,931 Net Debt 516 2,759 4,600 9,502 Stockholder’s Equity 4,322 8,241 11,435 13,304 2011 2012 2013 2014 2011 2012 2013 2014 (1) With Interest Accretion The Philippines has emerged as a growth leader resulted in a significant gain in market share. Message to in Asia. Once a country beset with high inflation Since we believe that the positive structural story and low growth, the average pace of growth in of Philippine real estate will continue to remain the first half of the decade was 6.3%. Despite intact, we took great strides last year to craft our Stockholders the slight deceleration of real growth to 6.1% in roadmap for the next five years. 2014, the Philippines’ growth rate still remained higher than its Southeast Asian peers. The We aptly named our plan Century 2020, a plan country’s improved governance and reforms have that will allow us to shift our focus from top- translated into strong economic fundamentals line growth to other important determinants of that may help keep the country’s growth rate at shareholder value. around 6% for the remainder of the decade. We are in the process of diversifying into allied The Philippine real estate industry has benefitted real estate segments to further strengthen from the economy’s strength, which, according our portfolio. We will continue our vertical to indicators, is based on fundamentals and developments and investment properties not merely speculation. This is reflected in our businesses, but will soon venture into horizontal performance last year. developments for first-time home buyers and leisure and tourism development estates. In 2014, we made considerable progress in growing our business. Your company’s revenues Our vertical developments business remains reached P12.76 billion, reflecting a three-year sound. Last year, we generated pre-sales compounded annual growth rate (CAGR) of 40%, of P21.7 billion. At the end of 2014, 91% of with net income after tax amounting to P2.16 our current inventory was already pre-sold. billion, for a three-year CAGR of 36%. Our gross This is significant because the consistently profit from real estate development and profit high level of pre-sales from ongoing projects margins have remained healthy at 46% and 17%, and, consequently, expected cash collections respectively. We ended the year with total assets provides the company with visibility over future of P31.65 billion and shareholders’ equity of cash flows.