2019 ANNUAL REPORT CONTENTS COMPANY PROFILE Financial Highlights . 3 Project Location (Map) . 4 Directory . 5 MESSAGE TO STAKEHOLDERS . 6 A TRIBUTE TO JOHN L. GOKONGWEI, JR. 10 OUR BUSINESS UNITS Commercial Centers . 13 Residential . 15 Office Buildings . 18 Hotels & Resorts . 20 Industrial & Integrated Developments . 22 Chengdu Ban Bian Jie . 23 CORPORATE SOCIAL RESPONSIBILITY RLove Program . 25 Robinsons Mall Gift of Change . 28 Environment & Sustainability . 30 CORPORATE GOVERNANCE Our Commitment to Good Governance . 33 The Board of Directors - Responsibilities and Composition . 37 Enterprise Risk Management, Accountability, and Audit . 42 Other Matters . 45 BOARD OF DIRECTORS . 47 AUDITED FINANCIAL STATEMENTS . 49 Financial Highlights For the Years ended December 31 2019 2018 2017 2016 2015 2014 2013 (in million pesos) Gross Revenues 30,583.84 29,558.48 22,516.82 22,809.05 20,306.91 17,460.22 16,552.44 Net Income 8,692.61 8,223.96 5,884.44 5,755.32 5,952.94 4,773.87 4,318.49 Total Assets 189,651.21 174,158.16 148,126.55 124,432.16 111,711.51 88,421.50 76,808.45 Stockholders' Equity 100,077.67 93,919.72 67,372.62 62,855.31 58,444.74 53,968.36 50,425.83 8.69 8.22 29.56 30.58 5.95 5.88 22.81 5.76 20.31 22.52 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Gross Revenues Net Income (in billion pesos) (in billion pesos) 100.08 189.65 93.92 174.16 148.13 67.37 62.86 124.43 58.44 111.71 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Total Assets Stockholders' Equity (in billion pesos) (in billion pesos) 3 ROBINSONS LAND CORPORATION | 2019 ANNUAL REPORT Project Location (Map) Luzon Ilocos Norte Nueva Ecija Bulacan Batangas Rizal • Lifestyle Center • Commercial Center • Commercial Center • Lifestyle Center • Lifestyle Center • Office Development • Residential Projects • Residential Projects • Residential Projects Tarlac • Residential Projects • Commercial Center National Capital Region Cavite Palawan Pangasinan • Office Development • Lifestyle Center • Lifestyle Center • Lifestyle Center • Lifestyle Center • Residential Projects • Office Development • Hotel • Hotel • Hotel • Residential Projects • Residential Projects Pampanga Cagayan • Industrial Facilities • Lifestyle Center • Lifestyle Center • Residential Projects Laguna Camarines Sur • Residential Projects • Lifestyle Center • Lifestyle Center Isabela • Industrial Facilities • Office Development • Lifestyle Center Visayas Negros Occidental Capiz Iloilo Cebu Leyte • Lifestyle Center • Lifestyle Center • Lifestyle Center • Lifestyle Center • Lifestyle Center • Hotel • Hotel • Office Development • Hotel Antique • Residential Projects • Hotel • Commercial Center Negros Oriental • Resort • Lifestyle Center • Residential Projects • Hotel Mindanao Agusan del Norte Misamis Oriental Davao del Sur Davao del Norte South Cotabato • Lifestyle Center • Commercial Center • Commercial Center • Lifestyle Center • Commercial Center • Hotel • Residential Projects • Office Development • Residential Projects • Hotel Lanao del Norte Bukidnon • Residential Projects • Lifestyle Center • Lifestyle Center • Hotel 4 ROBINSONS LAND CORPORATION | 2019 ANNUAL REPORT Directory Address Auditors Investor Relations Level 2, Galleria Sycip Gorres Velayo & Co. Rommel Rodrigo Corporate Center, Certified Public Accountants 43/F Robinsons Equitable Tower EDSA cor. Ortigas SGV Building, 6760 Ayala Avenue, Makati City ADB Avenue corner Poveda Road Avenue, Quezon City Ortigas Center, Pasig City Tel No.: +632 8397 1888 loc. 31536 Telephone No. Stock Transfer Agent Email Address: [email protected] +632 8397 1888 Rizal Commercial Banking Corporation Trust and Investment Group Corporate Website G/F Grepalife Bldg. www.robinsonsland.com 221 Senator Gil Puyat Ave., Makati City Business Inquiries Hotel Reservations Robinsons Malls +632 8397 1888 loc. 31261 Crowne Plaza Manila Galleria +632 8633 7222 +632 8395 2177 Holiday Inn Manila Galleria +632 8633 7111 Robinsons Offices +632 8397 0171 Dusit Thani Mactan Cebu +63 32 888 1388 +632 8397 0101 loc. 35843 Robinsons Residences +632 8397 0101 loc. 32773 +63 998 888 7788 Go Hotels and Summit Hotels & Resorts +63 917 888 7788 Robinsons Homes +632 8397 0358 +632 8397 0111 5 ROBINSONS LAND CORPORATION | 2019 ANNUAL REPORT Message to Stakeholders Riding on the momentum of successful strategic initiatives, Robinsons Land Corporation (RLC) finished 2019 with another record performance. We strengthened our existing portfolio and consistently delivered on growth opportunities across our core business segments. The company also reached new heights with the addition of new, sustainable revenue streams from joint venture projects and industrial facilities, as well as our international investment. Through the collaborative work of the entire team, RLC was able to withstand external headwinds and take advantage of opportunities for long-term growth. In 2019, consolidated revenues registered at Php30.58 billion, up by 3% mainly driven by the strong performance of recurring-income businesses under the investment portfolio. Our investment portfolio composed of the malls, offices, hotels, and industrial facilities contributed 69% of total revenues, with the 31% balance coming from the sale of residential units and land parcels that form part of our development portfolio. EBITDA also increased by 5% to Php17.25 billion, while EBIT grew by 3% to Php12.28 billion. The year ended with a 6% rise in consolidated net income to Php8.69 billion from Php8.22 billion in 2018. This translated to a return on equity of 8.7% and to a cash dividend distribution of Php2.60 billion at Php0.50 per share. Apart from cash dividends, we likewise distributed to our shareholders RLC’s 100% stake in Altus Property Ventures, Inc. (APVI) as property dividend at a ratio of one (1) APVI share for every fifty-one and LANCE Y. GOKONGWEI 9384/10000 (51.9384) RLC shares held, providing them the opportunity to Chairman own shares in both companies. The Commercial Centers Division accounted for 43% of total company revenues. Mall revenues increased by 11% to end 2019 at Php13.25 billion versus Php11.94 billion in the previous year. Full-year rental contributions from four new malls strategically situated in the provincial cities of Ormoc, Iloilo, Tuguegarao, and Bukidnon fueled growth on top of same-mall rental revenue growth of 7%, and an uptick in cinema revenues. These resulted to a significant increase in EBITDA of 15% to Php8.82 billion, pushing EBIT up by 22% to Php5.17 billion. This year, RLC opened Robinsons Galleria South, its third lifestyle center under the premium Galleria brand. It is the first world-class full-service mall in San Pedro, Laguna featuring modern interiors and beautiful artwork designs. With this latest addition to its growing mall portfolio, RLC now has a total of 52 malls, 9 of which are within Metro Manila, while 43 are situated in growing urban areas nationwide. RLC also opened the new expansion wing in Robinsons Magnolia, its upscale mall in Quezon City, featuring a refreshed open-air plaza, additional lifestyle stores and dining options, new cinemas, a family amusement center, and a chapel. This brought total gross floor area to approximately 3 million square meters (sqm) and total mall leasable space to 1.57 million sqm with over 9,000 retailers for a system-wide occupancy rate of 94%. It was another banner year for our Office Buildings Division as it posted the highest revenue growth among all our businesses and contributed 17% to consolidated revenues. The success of our leasing activities for new developments, namely Cyber Sigma, Cyberscape Gamma, Exxa Tower, and Zeta Tower, and rental escalations in existing office buildings contributed to a 24% hike in revenues to Php5.32 billion from Php4.29 billion in 2018. EBITDA and EBIT likewise exhibited significant growth of 21% each to Php4.56 billion and Php3.73 billion, respectively. With the completion of Cybergate Magnolia within our Magnolia Complex in Quezon City, Giga Tower within Bridgetowne, and our second build-to-suit office development in Luisita, Tarlac, the Office Buildings Division capped 2019 with 23 operational sites in strategic locations for a total net leasable area of 592,000 sqm, a 13% increase from its 2018 record of 523,000 sqm. Leveraging on the potential of the local hospitality industry, the Hotels and Resorts Division continued its expansion strategy to build one of the best and biggest multi-branded hotel portfolios in the Philippines. We opened Summit Hotel Greenhills in San Juan City, the sixth hotel under the company-owned Summit brand; and launched Dusit Thani Mactan Cebu, our first foray into the luxury resort niche. These new developments increased total hotel room count by 14% to 3,129 operational rooms. Contributing 8% of total company revenues, hotel revenues soared by 23% to Php2.43 billion from Php1.98 billion the previous year through higher occupancy rates of company-owned brands, Go Hotels and Summit Hotels, and buoyed by increased average room rates for international hotel brands. 6 ROBINSONS LAND CORPORATION | 2019 ANNUAL REPORT In addition, we turned around the decline in last year’s EBITDA performance with a 4% increase year-on-year to end 2019 at Php702 million. Additional depreciation from new hotels caused a 19% drag in EBIT which ended at Php343 million from Php425 million in the previous year. Our Hotels and Resorts Division concluded 2019 with 20 company-owned hotel properties and 5 franchisees, and a system-wide occupancy rate of 63%. Formalized in 2016, the Industrial and Integrated Developments Division continues to be a reliable, steady source of new revenue streams. Operational industrial facilities registered lease revenues of Php138 million this year. As of December 2019, total industrial buildings leasable space has reached 77,000 sqm with locations in Sucat, Muntinlupa and Calamba, Laguna. On the other hand, developmental revenues from the partial recognition of gains from the sale of prime lots to Robinsons-DMC, Inc. (RDMCI) and Shang Robinsons Properties, Inc. (SRPI) reached Php321 million in 2019. RDMCI is a joint venture company formed by RLC and DMCI Project Developers, Inc.