Alphaland Corporate Presentation

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Alphaland Corporate Presentation

Who we areA unique property developer with attractive land bank at prime locations, differentiating itselfthrough the development of premium residential, commercial, leisure and resort properties withunique lifestyle propositionsMakati Place (residential)Makati Place (retail)Alphaland TowerAlphaland Bay CitySouthgate Mall and TowerMarina ClubThe City ClubBalesin Island ClubBoracay GatewayShangri-La at The Fort3


Our historySelective and strategic acquisition of land bank and development of properties over the last fiveyearsMay: Alphaland Development Inc.(then known as AlphalandCorporation) was incorporatedSep: Alphaland acquired 10ha ofland in Parañaque City for thedevelopment of Alphaland Bay CityNov: Alphaland acquired 30ha ofland in Silang, CaviteJun: Alphaland acquired theleasehold rights for 1ha of land forAlphaland Makati Place and the landfor Alphaland TowerAug: Alphaland Southgate Mallopened and Alphaland SouthgateTower was launchedNov: Completion of reverse takeover(“RTO”) of Macondray Plastics,Inc.May: Commenced construction ofAlphaland Makati Place and AlphalandTowerAug: Commenced marketing ofAlphaland Makati PlaceDec: Alphaland Southgate Tower fullyleased2007 2008 2009 2010 2011 2012Jan: Alphaland acquired andredeveloped Alphaland SouthgateMall and TowerMay: Alphaland acquired 20% inShangri-La at The FortMar: Memorandum of Agreementwas signed with Akean Resorts forthe development of BoracayGatewayApr: Memorandum of Agreementwas signed with BalesinCorporation for Alphaland BalesinIsland ClubFeb: Alphaland Balesin receivedendorsement from DOT to develop394ha of land for registration withPhilippine Economic Zone AuthorityFeb: Commenced marketing ofAlphaland TowerApr: Incorporation of Alphaland BayCity, soft opening of Balesin VillageSep: Start of breakwater for Marina ClubNov: Launch of Marina Club4


Corporate and shareholding structureSimplified corporate structureAlphaland Holdings(Singapore) Pte. Ltd.(“Ashmore”)MasrickstarCorporationBoerstarCorporationRVO CapitalVenturesCorporationAzurestarCorporationOthers38.7% 35.8% 8.5% 7.2% 1.4% 8.5%AlphalandCorporation(the “Company” or “Group”)100.0% 100.0%100.0% 50.0% 20.0%Alphaland BalesinAlphalandAklan BoracayAlphalandShangri-LaIsland ResortDevelopment Inc.Properties, Inc.Bay City Corp.at the FortCorporation• Southgate Mall andTower• Makati Place• Alphaland Tower• Silang• Balesin Island Club• 60% interest inBoracay Gateway JV• Alphaland Bay City JVwith Wenceslao GroupIn addition, Alphaland develops and sells preferred shares of the following clubs, which are owned, operated and managed by anaffiliate not within the Group:• Balesin Island Club• The City Club at Alphaland Makati Place• Marina Club (Launched on 8 November 2012)5


Business strategies1Deliver “real value” to customers as excellence sells itself2Create markets in unique leisure developments3Penetrate domestic and international markets4Selective acquisition and strategic developments6


Alphaland’s unique approach to propertydevelopmentWe focus on and develop properties that cater to discerning customers who are able to trulyunderstand and appreciate the finer details in our developmentsLive – Work – PlayEmphasis on design and quality• International-standardarchitectural and interiordesign• Landmark propertiesInterior of Alphaland Makati Placeresidential unitOffer ultimate lifestyle choices• Clubs (1) – City, Marina, Balesin• Exclusive properties• Catering to high net worthindividuals in the country,expatriates and foreigninvestorsConceptual design for Marina ClubclubhouseFocus on location and convenience• Urban projects are in primeand strategic locations• Resort projects areconveniently locatedBalesin Island – Phuket village(1) Through the sale of the clubs’ preferred shares. Clubs are owned, operated and managed by an affiliate not within the Group.7


Overview of Alphaland’s projectsWe have a robust pipeline of residential, commercial, leisure and resort developments, whichhave significantly appreciated since the Company acquired the landProperty name 2012 2013 2014 2015Alphaland Southgate Operational since 2009AlphalandBalesinPartially operationalConstructioncompletionAlphalandMakati PlaceCompletion of Mall and City ClubCompletion of residentialCompletion of hotel / servicedapartmentsAlphalandMakati TowerConstruction completionAlphalandBay CityDevelop Marina ClubExpected project completion timeline (1) 8Opening ofMarina ClubContinuation of development ofBay CityShangri-Laat the FortConstruction completionBoracay GatewayDevelopment of Boracay Gateway(1) This chart reflects the completion dates currently being targeted by the Company, which are subject to a number of factors and may change from time to time.


Strong management team and shareholdersWe believe that our management team’s collective experience in the real estate industry, as wellas in other businesses in the Philippines, has allowed us to successfully execute our strategiesManagementPositionMario OretaPresidentMarriana YuloChief Finance OfficerGen. Cyrano AustriaSVP for ProjectsRodolfo PonferradaCorporate Secretary &General CounselJoanna DuarteVP for Sales & MarketingKenneth GoVP for Planning & DesignJosefino B. SiasatVP for PurchasingYears of relevantexperience40102010233015Major shareholdersJoint venture between the Ongpin Group and AshmoreGroupRoberto V. Ongpin, Chairman and CEO• Mr. Ongpin has extensive experience in theBoard of Directors of listed companies in thePhilippines and overseas• Relevant position includes his role as non-Executive Director of Shangri-La Asia Ltd.Eric O. Recto, Vice-Chairman, CorporateInformation Officer• Likewise, Mr. Recto has extensive experiencein the Board of Directors and managementteams of listed companies in the Philippines• Notable position includes his role asPresident of Petron CorporationAshmore Group plc• Private equity fund• Based in London with over US$60 billion inassets under management (1)(1) Ashmore website, as of 30 June 2012.9


Achievements in 2012 year-to-dateKey financial milestonesFinancial metric as of 9M 2012 PHP in millions vs. 9M 2011Revenue (1) 702.5 84.4%Adjusted EBITDA (1) 413.2 112.1%Profit before tax 2,574.9 1,302.1%Adjusted Profit before tax (2) 335.8 82.9%Net income 1,878.8 590.6%Adjusted net income (3) 311.4 20.2%Net debt to equity (%) 17.3% 10.8%(1) Includes realized gains on sale of AFS investments.(2) Excludes pre-tax gain on fair value change of investment properties and gain on bargain purchase.(3) Excludes after tax gain on fair value change of investment properties, gain on bargain purchase and net income from discontinued operations. Assumes 30% tax rate.10


Operational updateProperty name Status as at 3Q 2012Alphaland Southgate Tower • Completed and 100% occupiedAlphaland Southgate Mall • Completed and 93% occupiedAlphaland Makati PlaceThe City Club at AlphalandMakati Place• 75% of Phase 1 completed and the mall expected to be operational by 1Q 2013, residentialtower 1 expected turnover by end 2014• 71 residential units have been pre-sold as of September 30, 2012• 75% construction completed and expected to be operational by 1Q 2013• 440 shares sold (including shares attached to residential units) as of September 30, 2012 (outof a total of 5,000 shares, of which 90% will be sold on a secondary basis by the Company)Alphaland Tower • 82% of construction completed and expected to be operational by January 2013Alphaland Balesin IslandClubAlphaland Marina Club• 82% of construction completed and expected to be 100% complete by 1Q 2013• 4 out of the 7 villages are operational after the soft opening of the club in April 2012• 430 local and 100 international shares sold as of September 30, 2012 (out of a total of 7,000shares, of which 90% will be sold on a secondary basis by the Company)• Construction of club formally launched on 8 November 2012 and scheduled to open in 2014• Expected to sell 5,000 shares, of which 90% will be sold on a secondary basis by theCompanyShangri-La at the Fort • 12.5% of construction completed to-date, and hotel scheduled to complete in 201411


Our Projects


Prime city locationsAlphaland Makati Place, Alphaland Tower and Alphaland SouthgateClose to other prime offices, hotels, shopping complexes and medical buildingsMakati MedicalCentre & Medical CityAlphalandMakati PlaceRCBCTowerAlphalandSouthgateGreenbeltMallThe EnterpriseCentreAlphalandTowerPhilamlifeTowerGloriettaMallMakatiShangri-LaAyala TowerOne and AyalaTriangleThe PeninsulaManilaMandarinOriental13


Prime city locations (cont’d)Alphaland Bay City is adjacent to Mall of Asia and new Entertainment CityNinoy AquinoInternationalAirportSM Mallof AsiaAlphalandBay CityEntertainment CityBloomberry’sSolaire CasinoBelle GrandeResorts & CasinoResorts WorldManila BayshoreManila BayResorts14


ProjectsAlphaland SouthgateDescription• Conveniently located at the corner of Epifanio de losSantos Avenue (EDSA) and Pasong Tamo• 20-storey modern structure clad in glass, connected toan MRT terminal, arising from a six-story podium and ashopping mall• Equally accessible from Makati’s central business districtand neighboring residential subdivisions• Operational since August 2009Key operatingstatisticsOccupancy as at30 September 2012TowerMall100% 93%Average lease life 5 years 2 to 3 yearsGFA c. 37,000 sqm c. 17,000 sqmNLA c. 32,540 sqm c. 7,640 sqmKey tenantsBusiness processoutsourcingSupermarket,fastfood chainsView from rooftop of mallView from driveway15


Projects (cont’d)Alphaland Tower – Status updateDescription• Strategically located along Ayala Avenue• 34-storey building with LEED (Leadership in Energy andEnvironmental Design) certification• Only new source of premium corporate office in thevicinity in 2013Alphaland Tower – South elevationOccupancy• Profiles of target tenants primarily include multinationalcorporations and financial services companiesFloor area• GFA: c. 48,000 sqm• NLA: c. 31,000 sqmEstimated timeline (1) :• December 2012: Project completion• January 2013: Commencement of operationsDevelopment cost (2) :• Total estimated development cost: PHP 3.1 billionFunding expected to come from:• Existing PHP 2.4 billion loan facility from DBP, LBP,BOC and Maybank, of which PHP 1.5 billion has beendrawn as of 30 September 2012(1) These are the completion dates currently being targeted by the Company, which are subject to a number of factors and may change from time to time.(2) These are the Company’s current expected development costs, which are subject to a number of variables and other factors, many of which are outside the control of the Company, and are basedon assumptions that include, without limitation, expected construction costs, interest rates and timetable and expected raw material and other input and development costs, many of which have notyet been contracted for the Company, and accordingly these expected development costs are subject to change from time to time.16


Projects (cont’d)Alphaland Makati Place – Residential, Retail and HotelDescription• Mixed-use development designed by Wong & Ouyang, a leading international architectural and design firm• Strategically located at Ayala Ave. extension, near other condominium developments, prime offices, and a reputablehospitalPlanned hotel / serviced apartments(One tower)Residential (Two towers)MallThe City Club at Alphaland MakatiPlace (1)• Average lease life:− 5 to 15 years (anchor)− 3 to 5 years (average)• Key tenants include a supermarket, ahardware store and a bookstore(1) Owned, operated and managed by an affiliate not within the Group.17


Projects (cont’d)The City Club at Alphaland Makati Place (1)Garden poolDescription• Two hectares of leisure, entertainment and businessfacilities• Expected to occupy the top three floors of the six-storeypodium at Alphaland Makati Place• Within walking distance from major offices, residentialbuildings and commercial establishmentsGymnasiumReception area(1) Owned, operated and managed by an affiliate not within the Group.18


Projects (cont’d)Status update on Alphaland Makati PlaceOn-time and within budgetMall City Club ResidentialHotel / ServicedApartmentExpected completionTotal estimated developmentcost (1)1Q 2013(87% pre-leased)1Q 2013 2014 2015c. PHP 8.4 billionFunding expected to come from:• PHP 7.0 billion term loan – in talks with several banks for a syndicated loan− This amount includes refinancing of drawn amount (PHP 1.2 billion) from the existing PHP 1.75 billion loan facilityfrom DBP, LBP, BOC and Maybank• Remainder expected to come from internal cash flows (pre-sales, share sales and equity)Corner of Ayala Avenue and Malugay StreetView from FEUCorner of Ayala Avenue and Malugay Street(1) These are the Company’s current expected development costs, which are subject to a number of variables and other factors, many of which are outside the control of the Company, and are basedon assumptions that include, without limitation, expected construction costs, interest rates and timetable and expected raw material and other input and development costs, many of which have not yetbeen contracted for the Company, and accordingly these expected development costs are subject to change from time to time.19


Projects (cont’d)Balesin Island Club (1)Description• Over 400ha island with seven themed villages inspired by world renowned seaside destinations containing 292 villas, including 14 suites in theclubhouse, across approximately 90ha• Approximately 18 minutes away from Metro Manila by Jet Stream 32Development cost:• Total estimated development cost: PHP 3.2 billion (2)Funding expected to come from:• PHP 2 billion credit line from Bank of Commerce(1) Owned, operated and managed by an affiliate not within the Group.(2) These are the Company’s current expected development costs, which are subject to a number of variables and other factors, many of which are outside the control of the Company, and arebased on assumptions that include, without limitation, expected construction costs, interest rates and timetable and expected raw material and other input and development costs, many of whichhave not yet been contracted for the Company, and accordingly these expected development costs are subject to change from time to time.20


Projects (cont’d)Village developmentsat Balesin:Bali• 98 villas are operational todate• Expected to have anadditional 81 villas operationalby end November andremaining 113 villas by 1Q2013Mykonos• Nusa Dua Bar and MykonosTaverna are operational andMykonos Cove Deck iscompleted• Phuket Sala is operational and30 Phuket villas to beoperational by end November• Construction at Toscana is inprogress and expected tohave 32 villas, and beoperational by 1Q 2013• Recently added Costa del Solvillage, which is expected tohave 48 villas and beoperational by 1Q 2013PhuketSt. TropezToscana21


Projects (cont’d)Alphaland Bay CityDescriptionArtist’s impression of retail strip• Expected to be built around the Marina Club, AlphalandBay City is expected to be a 32ha premium, selfcontainedseaside community• It is envisioned to be a premier location for premiumresidential, office, commercial and retail developments• Marina Club launched on 8 November 2012Artist’s impression of the Marina ClubArtist’s impression of Parkside residential section22


Projects (cont’d)Boracay GatewayAerial views of Boracay GatewayDescription• Fully-integrated master-planned leisure township, withsports, recreation, residential, and retail / commercialareas, including an all-weather polo field and countryclub• 5 to 10 minutes away by boat from Boracay islandBeach adjacent to Boracay Gateway23


Projects (cont’d)Shangri-La at The FortDescription• Expected to be built to the specifications of a premium hotel• 60-storeys containing hotel guest rooms, residences forlease and sale, a sports club and a retail area• Located in Bonifacio Global City, which is a 30-minute drivefrom the airport and 10-minute drive from Makati CBDConstruction information• Estimated to be completed by 2014 (1)• Alphaland’s ownership: 20%• Investment to date: PHP 1.1 billion• Already fully funded(1) These are the completion dates currently being targeted, which are subject to a number of factors and may change from time to time.24


Financial Performance


Income statementRevenues (Includes realized gains on sale of AFS investments)(in PHP millions)EBITDA (Includes realized gains on sale of AFS investments)(in PHP millions)622703184381n.m. 54%51% 59%413336195Profit before tax (Excludes pre-tax gain on fair value change ofinvestment properties and gain on bargain purchase)(in PHP millions)2010 2011 9M11 9M12n.m. 49% 48% 48%302336184Net income (Excludes after tax gain on fair value change ofinvestment properties, gain on bargain purchase and net incomefrom discontinued operations. Assumes 30% tax rate.)(in PHP millions)(108)2010 2011 9M11 9M12EBITDA marginn.m. 44% 68% 44%273 259311(184)2010 2011 9M11 9M12PBT margin(209)2010 2011 9M11 9M12Net income margin26


Balance sheetTotal assets(in PHP millions)Net debt(in PHP millions)33,85639,8478.7% 8.4% 17.3%4,91817,9851,1582,0522010 2011 9M122010 2011 9M12Net debt/equityInvestment properties at fair value(in PHP millions)Shareholders’ equity(in PHP millions)15,33818,04621,16424,33828,47313,3412010 2011 9M12ABC ASG AT ABIC AMP Silang Caticlan AMC2010 2011 9M1227


Strong balance sheet management withstaggered debt maturitiesDebt maturity profile as at 30 September 2012(PHP in millions)16.4% 19.8% 9.5% 16.4% 11.5% 8.1% 18.2%Key debt metricsAmount(PHP billion)Gross debt 5.3 (1)Net debt 4.9 (1)93Interestcoverage3.1x (1)80034516079341983135720015450465338250240942012 2013 2014 2015 2016 2017 After 2017Facility 1 Facility 2 Facility 3 Credit line 1(2)• Well staggered debtmaturity profile• The Company hassufficient debt capacityto support its capitalexpenditurerequirements in the next12 to 24 months• Significant undrawn butcommitted lines% total debt(1) As at and for the quarter ended 30 September 2012. Interest coverage is calculated as LTM EBITDA / interest paid and other financing charges.EBITDA includes realized gains on sale of AFS investments.(2) Represents drawdowns from PHP2 billion Bank of Commerce credit line, which are payable 180 days after drawdown. 28


Appendix


Our portfolioA variety of existing and potential properties which can be developed further to maximize valueProperty name Location Type Approximate sizeAlphaland SouthgateMall and TowerMakati CityOffice, RetailTower NLA: 32,540 sqmMall NLA: 7,640 sqmBalesin Island Club (1) Quezon Province Club membership Site area: 424haAlphaland Makati Place(ex. The City Club)Makati CityRetail,Residential,Hotel/serviced apartmentsMall NLA: 5,700 sqmResidential sellable area: 42,731 sqmHotel/serviced apartments: 13,285 sqm (202 rooms)The City Club (1) Makati City Club membership -Alphaland Tower Makati City OfficeNLA: 31,000 sqmFor sale: 6,730 sqmAlphaland Bay City Parañaque City Township development Site area: 32haMarina Club (1) Parañaque City Club membership -Boracay Gateway Aklan Province Township development Site area: 500haShangri-La at The Fort Bonifacio Global City Residential, Hotel574 hotel rooms97 hotel residences98 luxury homesSilang Cavite Province Land Site area: 30ha• Alphaland also owns a 50% stake in Alphaland Heavy Equipment Corporation(1) Owned, operated and managed by an affiliate not within the Group.30

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