Investor Presentation

October Click to edit Master subtitle style 2012

July 2, 2009

Recap of Q2 Priorities

Presentation Outline

Company Overview Update on 5-10-15 Plan and 5-10FourFour-Pillar Strategy

We are the leading real estate developer in the Philippines

Largest, most diversified property company Spun off from Ayala Corp. in 1988, IPO in 1991 Market capitalization of US$8.0B*, 50% free-float Shareholder structure
50% owned by Ayala Corporation 23% foreign-owned**

Platinum Award for All Around Excellence in Financial Performance, Management, Corporate Governance, Social Responsibility, Environmental Responsibility, and Investor Relations
The Asset Magazine 2009-11

Platinum Plus Ranking for Corporate Governance

Institute of Corporate Directors Corporate Governance Scorecard 2011

Best Overall Developer in the Philippines

Euromoney Real Estate Awards 2005-2012
*as of 19 September 2012 ** inclusive of voting preferred shares 3

 with a balanced portfolio of complementary businesses

PROPERTY DEVELOPMENT
RESIDENTIAL 5 brands serving different income segments 90 ongoing projects nationwide
(~P133B in value)

COMMERCIAL LEASING
SHOPPING CENTERS 35 shopping centers
1.13M sqm GLA 96% leased-out leased-

COMMERCIAL / INDUSTRIAL LOTS Commercial

NUVALI (200 hectares)

OFFICE 5 HQ type buildings

72K sqm GLA 93% leased out

Industrial
Laguna Technopark (5.3 hectares)

30 BPO office buildings

412K sqm GLA 85% leased out

HOTELS & RESORTS

HOTELS Branded
634 rooms 347 rooms under construction

SERVICES
CONSTRUCTION 83 projects P75B gross order book
85% ALI 15% 3rd party

RESORTS El Nido (192 rooms)

Apulit Miniloc Lagen Pangulasian (To open by 2H12)

PROPERTY MANAGEMENT 144 facilities P1.3B outstanding contract value

90% ALI 10% 3rd party

Seda Hotels
628 rooms under construction (BGC, Davao, CDO, NUVALI)

 and a diverse income base

NET INCOME PER BUSINESS LINE (1H12)
Amaia subd, 2% Avida condos, 5% Avida subd, 7% Alveo condos, 6%

NET INCOME PER GROWTH CENTER (1H12)

Services, 9% Commercial lots, 14%

Manila 3% Quezon City 4% Alabang 3% Cebu 6% Bonifacio Global City 10% Makati 31%

Hotels and resorts, 3% Offices, 9%

47%
Alveo subd, 8% ALP condos, 7% ALP subd, 12%

Nuvali 28%

30%
Shopping centers, 18%

We offer a broad range of residential products across all price points

Income Classes of 18M Households
(1%) (P120-250K/mo) (4%) (P50-120K/mo)

Brand

Segment

Price range P6.535M P4.010.0M P1.3 4.5M

Ave/unit P12M P6M P2.5M

A-AAA

High end Upscale Middle income

C/C-(32%)
(P15-50K/mo)

Economic housing Social Enterprise Community

P600K 1.3M

P900K

P400-650K

P500K

D/E
(63%)

Source: Natl Statistics Office, 2009 FIES

We have a huge and actively replenished landbank for sustainable growth

LANDBANK (hectares)

5,865 hectares of developable landbank across the country

PER TYPE OF BUSINESS (hectares)
CBD Estates, 16% Residential, 55%

In-city* Suburban
611 564 554
2,908 3,465

775

5,090 3,892

2009

2010

2011

1H12

Hotels & Resorts, 17% Comml Leasing, 12%

*includes Makati, Bonifacio Global City, other Metro Manila, Metro Cebu, Metro Davao, Bacolod, Iloilo, Cagayan de Oro

Land available for long-term growth

7

 located along key regional growth centers

Regional Land Acquisitions
1 Growth Centers Cebu Davao Bacolod Ilo Ilo CDO Baguio Pampanga Subic Bataan Batangas Lucena Naga Palawan Tarlac Cabanatuan Pangasinan
2009 2010 2011

Baguio Cabanatuan Subic Bataan Pampanga Lucena Naga Batangas Legaspi

2 3 4 5 6 7 8 9 10

Palawan

Iloilo Bacolod Cebu

11 12 13

Cagayan de Oro Davao

Total Landholding (in has)
< 10 10 - 100 > 100

14 15 16

TOTAL AREA ACQUIRED (in hectares)

6.5

796.0

949.6

Existing since 2009 New / ongoing / planned acquisition

 and within strategic areas around Metro Manila

Vertis 30 ha.
North Gateway
ITS

Growth Centers 1 2 3 4 5 6
7

2009

2010

2011

Makati Bonifacio Global City Ortigas/Mandaluyong Eastwood/C5 Manila-South QC QC North

Reclamation

8
ITS ITS
NLEX/SLEX EDSA

Alabang Cubao Monumento Batasan Cavite NUVALI Bulacan Rizal/Marikina

9 10 11 12 13 14 15

FTI-Taguig 74 ha. FTISouth Gateway

C-5 CITRA-PNCC SKYWAY (PROPOSED) NAIA EXPWY PROJ, PH-2 (PROPOSED) CAVITE EX[RESSWAY CAVITE-LAGUNA EXPRESSWAY (PROPOSED) C-6 ALIGNMENT (PROPOSED) LRT LINE 1

TOTAL AREA ACQUIRED (in hectares) Existing since 2009 New / ongoing / planned acquisition

34.2

19.0

92.3

 further enhanced by our recent acquisition of the FTI property

Mixed Use Residential Commercial ITS Terminal Mixed Use Residential

RATIONALE Envisioned to be a new business district close to Makati and BGC Serves as southern gateway to Metro Manila and complements northern gateway in Vertis Within planned key access points:
Bus Rapid Transit (BRT) system 1 of 3 Intermodal Transport System (ITS) sites C-5 and Skyway connector road

Makati BGC

ITS

BRT System C-5 and Skyway connector

ITS

FTI

Ready for immediate development

10

Presentation Outline

Company Overview Update on 5-10-15 Plan and 5-10FourFour-Pillar Strategy

11

We are operating under very favorable economic fundamentals

POSITIVE GDP GROWTH
7.3% 6.1% 3.7% 2.3 % 1.1% 3.5 % 6.1 % 6.2 % 10.6% 10.1% 9.8% 9.6%

ROBUST PRIVATE CONSUMPTION GROWTH

AFFORDABLE MORTGAGE
(10-year rates)

09

10

11

1H12

09

10

11

1H12

09

10

11

12F

ROBUST OF REMITTANCES
(US$ billon)

RISING BPO REVENUES

(US$billon) US$billon) 27.4

GROWING TOURIST ARRIVALS

(millions)

10.0

17.3

18.9

20.0

21.3
13.2 3.0 3.5 4.6

7.2

9.1

11.0

3.9

09

10

11E

12F

09

10

11

12F

16F

09

10

11

12F

16F 12

Source: Global Source Partners, NSCB, BSP, BPAP, Dept of Tourism

 that support our 5-10-15 Plan 5-105 years (2014), P10B in NIAT and 15% ROE
In GROWTH Residential Malls Office Hotels & Resorts Landbank

MARGIN IMPROVEMENT
CAPITAL EFFICIENCY ORGANIZATIONAL DEVELOPMENT

13

Our Net Income and ROE are on track with target

NET INCOME (Pbn) 7.1 5.5 4.0 10.0

P Billions

1H12 net income up 28% YoY ROE up 1%-point to 13%

*based on annualized 1H12 figures
14

09

10 Actual

11

12 13 14F 5-10-15 Plan

RETURN ON EQUITY 12% 13%* 15%

8%

10%

09

10 Actual

11

12 13 5-10-15 Plan

14F

We are launching 67 projects nationwide worth P90B

50 residential projects 7 shopping centers 7 office buildings 3 tourism & other

facilities
*In strategic locations within master-planned communities master15

We will continue our aggressive launch plan across all residential brands

Planned FY12 unit launches 20% more than FY11

50% in the economic and socialized housing segments

RESIDENTIAL UNIT LAUNCHES (000)

ALP Alveo Avida Amaia/BellaVita

24.8K 20.6K

Sales value of P70B, 15% higher YoY Supported by an aggressive sales push, both domestically and internationally

10.2K

2.2K

2009

2010

2011

2012F

16

... with sales and bookings keeping in step

Sales Take-up (Pbn)

P6.5B average monthly take-up in 1H12

(vs P4.0B in 1H11, up 64%)

P19.3 P19.8 P13.7 P10.1 P15.1 P12.8

Amaia Avida Alveo ALP

P3.5B average monthly bookings

(vs P2.2B in 1H11, up 57%) OF sales amounted to P3.3B (up 22%; 16% share to total)

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Booked Sales (Pbn) P11.5 P11.0 P9.9 P8.5 P6.6 P6.7

Amaia Avida Alveo ALP

Unbooked revenues at P50B (from P41B as of 1Q12)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

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 as robust demand is seen across all brands

The Suites (BGC)

Launch: June 2012 Total value: P9.7B Highlight: 235 units (out of 238 available units) sold on launch date

Avida Towers 34th St. (BGC)

Launch: Oct 2011 Total value: P2.1B Highlight: 89% taken up, Tower 2 launched Sept 2012

Launch: Dec 2011 Total value:P3.7B Highlight: 78% taken-up; 2nd Tower launched July 2012

Launch: June 2012 Total value: P1.3B Highlight: average monthly take up of 80 units since launch
Amaia Skies Avenida 18

The Maridien (BGC)

We are growing our shopping center portfolio Shopping Centers

Build premium malls in key cities Roll-out smaller formats through Arvo and Primavera 1H12 Performance
Average lease-out rate at 96% Average building lease rates 6% higher YoY at P1,089/month Same-store-sales up 8% YoY (Land lease up 9%;
building lease up 6%)
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MALL EXPANSION (000 sqm GLA)

Under construction Operational GLA 360 165 993 1,007 233 1,080 1,266

2009

2010

2011

2012

Harbor Point (Subic)

 as well as our leasable office space Office Focus on Metro Manila

and key cities around the country Within integrated, master planned developments 1H12 performance
Average lease-out rate at 86% Occupied BPO GLA at 338K sqm (up 19% YoY) Average BPO lease rates up 4% YoY to P587/month
20

OFFICE EXPANSION (000 sqm GLA)

Under construction Operational GLA

285 136 449 502

40 359
2009

103 397
2010

2011

2012

U.P.-AyalaLand TechnoHub U.P.-

 and the number of our hotel rooms

Hotels REVPAR* up 12% to
P3,831/night
Average occupancy at 80% (from 71%) Average room rate at P4,799/night (from 4,784/night)
HOTEL AND RESORTS ROOM BUILD-UP
Under construction Operational

683 717 634 1,017 1,243 634 2011 2012

347 634 2009

2010

Resorts REVPAR up 37% to

P6,104/night
Average occupancy at 51%
(from 50%)

Average room rate at P11,998/night (from P8,903/night)

*Revenue per available room

Seda BGC Interior

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We recently increased our ownership in Fairmont Hotel and Raffles Suites & Residences to 100%
Acquired equity stake of Kingdom Hotels, Inc. for US$24M
Expand hotel portfolio and enhance recurring income base Strengthen Makatis position as the premier CBD

Components of Fairmont Hotel and Raffles Suites & Residences:

Fairmont Hotel (280 rooms) Raffles Suites (32 suites) Raffles Residences
(27 out of 237 units remain for sale)

Additional revenues from sale of Raffles Residences and fees from serviced apartment operations

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Our capex is tracking ahead of the P37B plan

1H12 Capex breakdown
Office 4% Hotels 5% Malls 17% Land acquisition 33% Land devt 3% Residential 38%

Capex for project completion 21% higher YoY

Accelerated land banking to ensure long-term growth

1H12 Capex performance P18.7B P12.5B 3.1 50% 10.4 12.6 6.1
Land acquisition
Project completion

FY12 capex projected to reach P70B*

*includes FTI and KHI acquisition

1H11

1H12
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We have consistently improved our margins through strict cost-containment efforts costNIAT MARGIN* AND GAE RATIO
NIAT margin
MARGIN PERFORMANCE OF BUSINESS UNITS 1H2012 Residential Horizontal 45% 35% 50% 47% 33% 52% 1H2011

20%

Property development (Gross profit)

GAE to revenue

15%

Vertical Comml/Indl lots

Commercial leasing (EBITDA)

Shopping Centers 61% 60%

9.2% 8.0%

Office

79% 31% 6%

81% 31% 5%

Hotels & Resorts

(EBITDA)

Services

09

10

1H11

1H12

(EBITDA)

Procurement strategy and project cost control New design and construction methodologies Reengineering operational workflow and processes Spend management and energy-saving initiatives
*before Non-controlling Interest

24

We continue to pay higher dividends and pursue asset-light modes of acquisition asset-

5%-point annual increase in payout ratio, to reach 50% by 2014 60% of land area acquired from 2009-11 completed via JDA and long term leases

CASH DIVIDENDS (PhP million) & PAYOUT RATIO (%)

3,000
2,500

(40%) 2,856

2,000 1,500 1,000 500 0 2009 2010

1,910 (35%) 1,211 (30%) 780 (16%)

2011

2012

25

 increase leverage at lower cost and longer maturities

BORROWING COST AND TENORS
Average tenor (years)

DEBT MATURITY PROFILE

11.0 10.0 9.0

7.9%
7.8% 7.4% 7.0% 6.6% 6.2%
5.8%

Blended borrowing rate

7.5% 6.8% 4.4 3.0 3.9 5.7% 2009 2010 1H11 1H12 4.8

6.0 5.0 4.0 3.0 2.0 1.0 -

8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 2.8 0.5 0.1
4.7 3.8

1.2

6.1

1.8

9.4

7.6 3.6 2.0 1.4 1.3 0.1 0.1 3.1 0.9 5.7

5.4% 5.0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

15B Bond

Subsidiaries

Parent

Raised P15B in fixed rate bonds (April 2012)

7 years: 5.625% 10 years: 6.0%

220 bps reduction in blended borrowing rates since 2009 Well-programmed debt maturity profile
26

 while still maintaining a healthy financial position

BALANCE SHEET* (Php millions)
Change June 2012 December 2011 Amount 12,030 18,892 4,365 % 49% 55% 7%

Cash & cash equivalents Total borrowings Stockholders equity

Current ratio Debt-to-equity ratio Net debt-to-equity ratio

36,826 53,423 66,713 1.72:1 0.80:1 0.25:1

24,795 34,531 62,348

1.65:1 0.55:1 0.16:1

*includes proceeds from P15B bond issuance in April but excludes P13.6B top-up equity placement in July

27

We continue to enhance efficiencies and strengthen our risk management system

Pro-active talent management
PID program Retention programs Training and development Employee engagement

Outsourcing of corporate services and construction projects Strengthening EWRM systems and processes

AYALA LANDS EWRM STRUCTURE

Identify Risks

Monitor Risks

Analyze Risks

Treat Risks
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Why should you invest in Ayala Land?

The best way to access the Philippine growth story Long-term orientation Longwith proven track record for building large-scale, largemixed-use communities mixed Balanced portfolio of strong businesses, now addressing broader economic segments nationwide
Makati Central Business District 1960 TODAY

Bonifacio Global City 2000 TODAY

Clear plan for profitable growth and improving capital returns Prudent capital management, supported by a strong balance sheet

NUVALI 2006

TODAY

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THANK YOU