FY 2015 Investor Presentation March 2016 Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positioned to address growth opportunities in the Real Estate sector. • With clear strategies, Ayala Land is on-track to deliver its 2020-40 plan to achieve sustainable and balanced growth. 2 Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positioned to address growth opportunities in the Real Estate sector. • With clear strategies, Ayala Land is on-track to deliver its 2020-40 plan to achieve sustainable and balanced growth. 3 Steady fundamentals of the Philippine Economy PH Real GDP Growth Rate External Debt-to-GDP 7.1% 6.7% 33.7% 6.1% 32.0% 5.8% 28.9% 28.2% 25.9% 3.7% 2011 2012 2013 2014 2015 2011 2012 2013 2014 1H 2015 Inflation Rate Gross International Reserves (In USD billion) 4.6% 4.1% 83.8 83.2 3.2% 80.7 3.0% 79.8 1.4% 75.3 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Source: BSP, Trading Economics 4 Complemented by key drivers that foster the growth of the Real Estate Sector Average Mortgage Rates BPO Revenues (in USD billions) 5-Year 10-Year 15-Year 13.5% 21 12.5% 9.8% 16 18 11.5% 8.8% 11 13 7.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2011 2012 2013 2014 2015 F 2015 Tourist Arrivals (in millions) Overseas Filipino Remittances Foreign Domestic (in USD billions) 47.7 26 44.1 23 24 37.5 20 21 30.2 23.1 2.8 3.2 3.5 3.9 5.0 2010 2011 2012 2013 2014 2011 2012 2013 2014 2015 Source: BSP, BPAP, NSCB, 5 Supported by consumption, increasing per capita income and a growing middle class Household Consumption Growth Philippine Household Segmentation (Consumption is 67% of GDP $3.7T) (B&C+ HH now at 16%) 145 K 6.6% 0.7% A-AAA (120k+) 90 K 1.2 5.7% B (50-120k) 6.1% 6.2% 130 K 0.8 2.3 10.6% C+ (30-50k) 5.7% 5.7% 129 K 1.1 1.7 25.2% C/C- (15-30k) 88 K 0.7 1.8 1.5 5.4 0.5 4.6 1.1 42% 2011 2012 2013 2014 2Q 2015 32% 3.9 4.4 3.2 Per Capita Income (in USD at current prices) 12.4 12.4 57.8% D-E (15k-) 10.2 10.7 10.8 3,371 3,457 3,544 2,832 3,123 2000 2003 2006 2009 2012 2011 2012 2013 2014 2015F Source: NSO FIES 2012, ALI Corplan Analysis; Per Capita Income based on BSP Statistics (2015F population of 101.4 mn) 6 Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positioned to address growth opportunities in the Real Estate sector. • With clear strategies, Ayala Land is on-track to deliver its 2020-40 plan to achieve sustainable and balanced growth. 7 Ayala Land: Leading and most diversified Philippine property developer with more than 8,900 has of land bank • Incorporated in 1988 as a subsidiary of Ayala Tuguegarao Corporation, publicly listed in July 1991 Baguio • Ownership - AC: 48%, Public: 52% Pangasinan • Present in 55 growth centers across the Philippines Tarlac Cabanatuan Pampanga SJDM Anvaya, Bataan Bulacan Cavite Metro Manila • 8,948 hectares of developable land bank Laguna Rizal Batangas Lucena Naga Legazpi Suburban In City* 8,948 8,453 8,639 Sicogon 984 994 890 El Iloilo Nido Bacolod Cebu 5,695 4,885 708 7,964 560 7,459 7,749 4,986 4,325 CDO 2011 2012 2013 2014 2015 Davao *Includes Makati, Bonifacio Global City, other Mega Manila, Metro Cebu, Metro Davao, Bacolod, Iloilo, Cagayan de Oro Nationwide development footprint 8 Diversified product lines that address various market segments Residential Sales Take-Up (In Php Bn) Malls (in GLA) 105.3 Operational Under Construction 2,363 101.7 91.9 1,782 ALP 77.6 1,530 1,546 911 1,346 Alveo 497 51.7 342 287 Avida 266 Amaia 1,452 1,188 1,259 1,336 BellaVita 1,080 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Offices (in GLA) Hotel Room Keys Operational Under Construction Operational Under Construction 1,430 5,105 1,305 4,228 799 715 2,781 749 693 2,894 2,066 591 1,929 893 240 237 1,549 162 462 612 715 765 2,001 2,162 2,324 429 509 562 1,467 784 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 9 Solid track record in developing large scale, integrated mixed-use estates Mature Estates 1960 2000 Makati Central Business District Bonifacio Global City 1990 2006 Cebu Park District Nuvali 10 New Estates in Mega Manila Makati Taguig Quezon City Alabang Cloverleaf Vermosa (21 has.) (74 has.) (29 has.) (6.6 has.) (11 has.) (700 has.) Entertainment Gateway of the City Center of Convergence in Pocket Urban Modern District South QC the South Haven Suburban GFA build out: GFA build out: GFA build out: GFA build out: GFA build out: GFA build out: 1.3m sqm. 3.6m 1.8m sqm 339k sqm 406k sqm 5.9m sqm • Residential: • Residential: • Residential: • Residential • Residential: • Residential: 66% 31% 36% 62% 69% 76% • Office and • Office and • Office and • Office and • Retail: 17% • Commercial: retail: 25% retail: 26% retail: 55% retail: 31% • Hospital: 11% 26% • Hotel and • Other • Hotels and • Others: 7% • Others: 3% others: 9% Commercial: others: 9% 43% 11 Expanding presence in new estates: Luzon Bulacan (98 has.) Pampanga (1,025 has.) Palawan (325 has.) Vibrant City Living Corridor to the North Island Resort Estate • GFA build out: 768k sqm. • GFA build out: 639 has. • GFA build out: 500k sqm • Residential: 22% • Residential: 87% • Residential: 30% • Retail: 13% • Office and retail: 3% • Hotel: 60% • Other Commercial : 65% • Others: 10% • Retail: 5% • Others: 5% 12 Expanding presence in new estates: VisMin Capitol Central Negros Occidental Negros Occidental Iloilo Cagayan De Oro Davao (9 has.) (215 has.) (21 has.) (3 has.) (10.1 has.) Commercial and Quality Living Emerging Business Commercial District Commercial District Residential District District • GFA build out: • GFA build out: • GFA build out: • GFA build out: • GFA build out: 155k sqm 942k sqm. 287k sqm 109k sqm 173k sqm • Residential: 6% • Residential : • Residential • Residential: • Residential: • Office and 93% 38% 19% 34% Retail: 89% • Office and • Office and • Office and • Office and • Hotel: 5% Retail: 6% Retail: 52% Retail: 71% Retail: 59% • Other • Hotel, Hospital • Hotel: 10% • Hotel: 7% Commercial: and Others: 1% 10% 13 Balanced and Complementary Businesses Property Commercial Hotels and Services Development Leasing Resorts Residential Shopping Centers Hotels Construction • 5 brands serving 1.45m sqm GLA 2,324 Rooms • 244 projects different income • 49 shopping centers • P124b net order segments Branded (1,294 rooms) book (99.9% ALI) Offices • ( Marriott, Raffles, Office for Sale 715k sqm GLA Holiday Inn, Intercon*) Property • Makati and BGC • 5 HQ (72k GLA) Seda (817 rooms) Management • 38 BPO (643k GLA) • (BGC, Centrio, Abreeza, • 196 managed Nuvali, Iloilo) Commercial/ properties Industrial Lots • P1.1b contract Resorts • Arca South value (97% ALI) El Nido (213 rooms) • Alviera • (Apulit, Miniloc, Lagen • Nuvali and Pangulasian) • Laguna Technopark *to be redeveloped by Jan 2016 14 Decentralized Organization Residential Shopping Centers Office Hotels & Resorts Property Shared Regional Construction Management Services APRISA BUSINESS PROCESS SOLUTIONS, INC. an AyalaLand company 15 Highly trusted Brand Residential Malls Offices #1 in Residential #2 in Shopping #2 in Development Centers GLA Offices GLA Hotels and Resorts Mixed-Use Estates Industrial Parks #1 in no. of Hotel #1 in size #1 in export revenue Room Keys and location and employment generation 16 Key Messages • The Philippine Real Estate sector remains resilient and continues to grow given the steady fundamentals of the Philippine Economy. • Ayala Land, with its strategic land bank, diversified product lines and solid track record in developing integrated mixed-use estates is uniquely positioned to address growth opportunities in the Real Estate sector. • With clear strategies, Ayala Land is on-track to deliver its 2020-40 plan to achieve sustainable and balanced growth. 17 Balanced and sustainable growth through the 2020-40 Plan Net Income After Tax 40 20% Annual Growth Rate P40B NIAT By 2020 17.6 14.8 11.7 Sustainable and balanced growth strategy: 50% from Residential Development 2013 2014 2015 2016 2017 2018 2019 2020 • Mix: 50% Horizontal, 50% Vertical 50% from Leasing • 3x GLA growth: Malls, Office, Hotels and Resorts 18 Platform for growth in place Makati Cebu Bonifacio Global City Nuvali 1960 1990 2000 2006 Present Present Present Present Capitol Central 18 estates as of 30 Sep 2015 19 Residential: Steady launch of various product lines Wide product offering to address a broader market segment Based on Income Classes of 18M Households Segment Price Range Average/unit High End P9 - 180M P18M “A-AAA” – (1%) (US$200-4M) (US$400k) (P120-250K/mo) Upscale P4 - 33M P8M (US$100-735K) (US$178k) “B” – (4%) Middle Income P2.5 - 14M P5M (P50-120K/mo) (US$38-300K) (US$100K) Economic Housing P600K – 1.5M P1.2M “C/C-” (32%) (US$15-63K) (US$30K) (P15-50K/mo) Social Enterprise P400K - 1M P600K Community (US$10-25K) (US$15K) • 3.9M* current housing backlog “D/E”- (P63%) • Annual supply of 200K* units vs.