Creating Landmarks' Setting Standards' Building Relationships

1
Mr. Teong Heng Sia July 28, 2007
Creating Landmarks. Setting Standards. Building
Relationships
2
Cebu
3
CEBU. . . Gateway to Southeast Asia
Daily gtgt Hong Kong 2 hours 6x/week gtgt Narita,
Tokyo 5 hours Daily gtgt Singapore 3 hours Daily
gtgt HK/Singapore 7 hours 2x/week gtgt Kota
Kinabalu 1 hour 2x/week gtgt Kuala Lumpur 5
hours 4x/week gtgt Seoul 6 hours 3x/week gtgt
Qatar 13 hrs.
4
CEBU Centrally located in the Philippines

• 55 mins. by air from Manila
• Jump off point to Vismin
• Flies to 20 domestic destinations
• Total of
• 36 flights daily to and from Manila,
• 6 flights daily to and from Davao,
• 4 flights daily to and from Bacolod,
• 2 flights daily to and from
• Cagayan de Oro
• Controls 85 of the countrys inter-island
  shipping industry
• 66 trips via fast craft daily

5
Cebu in a snapshot

• Total Population 3 m
• Metro Cebu Pop.- 1.9m
• Cebu City
• Mandaue City
• Lapulapu City
• Talisay City
• Centrally located
• Jump off point to VisMin
• Served by air carriers fast crafts
• Domestic and international airport
• International seaport
• International linkages with direct flights

• Economic powerhouse of theSouth
• Hub of commerce industry in the
  Visayas-Mindanao region
• Educational center
• 6 universities
• Over 35 colleges
• - 2 international schools
• Major Tourist destination
• hotels, resorts and recreational facilities
• Major Export Earner
• skilled labor pool / Internet Savvy
• Facilities for business, education, health,
  leisure recreation

6
TOURISM
Gateway to around two thirds of the Philippine
archipelago. Wide variety of hotels, resorts,
restaurants, golf courses, sports clubs natural
wonders
Marriott Hotel
Maribago Blue Waters

• Tourist arrivals grows at an average of
  12 per year

Waterfront Hotel
Cebu Country Club
7
TOURISM
CEBU VISITOR ARRIVALS January to April 2007
8
TOURISM
Cebus hotels and resorts for leisure and
business
Shangri-La Mactan Island Resort (one of the best
resorts in Asia Pacific, Business Traveller UK,
2004 5-Star Diamond Award) Marriott Hotel (2002
Kalakbay award for excellence) Maribago
Bluewater Resort (1995-2003 RCI Crown Resort
Award)
Badiian Island Resort
Plantation Bay
Marriott
Pulchra
Shangri-La
Waterfront
Badiian Island Resort
Maribago Bluewater
There are currently 3,772 hotel rooms and 924
resort rooms.
9
CEBU

• Growth in market due to tourists OFWs
• - Continued increase of tourist arrivals (12
  year-on-year growth)
• - Hospitality Industry is on the rise.

1600
1400
459
1200
17
394
(in Thousands)
Foreign
33
1000
Domestic
800
296
287
3
5
600
1,001
922
9
400
56
591
550
8
1
200
0
2002
2003
2004
2005
10

• TOURISM
• Q1 2007 produced 44.57 growth rate of foreign
  arrivals and 16.15 domestic
• Increased number of domestic/international
  flights (Cebu Pacific-50, Cathay-57)
• Sea Air is negotiating with Airways for a
  partnership to open a route from Cebu to
  Singapore via Clark
• China Airlines plans to provide direct flights
• Open Skies Policy
• Tourism sector continually influences the bank,
  retail industries, transportation firms, hotels
  and restaurants and recreational and personal
  service industries

11
Ayala came to Cebu 18 years ago

• Developed CBP, first masterplanned business
  district in Cebu
• Created a new business hub triggered shift from
  downtown area
• Revolutionized the lifestyle of Cebuanos
• Raised the standards in real estate
• Catalyzed economic growth

12

• An affiliate company of Ayala Land, Inc. engaged
  in real property development, marketing and
  management in Cebu

13
Real Estate Arm of Ayala Corporation
76 Subsidiary of Cebu Holdings, Inc.
14
Ownership Structure
A subsidiary of Cebu Holdings, Inc.
Cebu Holdings, Inc. 76.26 Province of
Cebu 8.28 Ayala Land, Inc. 6.74
Public 8.72 100
Ayala Land, Inc. 47.06 Santiago Land 15.45
First Metro Investments 10.00 Public 27.4
9 100
15
HISTORY
Creating Landmarks. Setting Standards. Building
Relationships.
16
Cebu Business Park

• Developed what used to be the province-owned Club
  Filipino golf course in 1988 into what is now the
  Cebu Business Park, an integral part of Metro
  Cebus changing economic and physical landscape

17
Cebu Business Park
Cebu Business Park
The premier business district of Cebu
Master-planned community Integrated development
Cebu City Marriott Hotel City Sports Club
Cebu Office Condos Ayala Life FGU Center
Cebu Cebu Holdings Center Residential Condos
Park Tower One Park Tower Two
18
Cebu Business Park
19
Cebu Business Park
Cebu Business Park
Other locators WTCI Pag-ibig Tower Globe /
Innove Plaza Keppel Center HSBC / Taft
Bldg Unionbank
Under Construction Lexmark Pioneer House Cebu IT
Tower Cebu Tower Palace
20
Leading Banks and Financial Institutions

• Allied Bank
• Asian Bank
• Banco Filipino
• BPI (2 lots)
• Chinabank
• Far East Bank
• HSBC
• MetroBank
• Keppel Monte Bank
• PNB
• RCBC
• Solidbank

• Unionbank
• HSBC
• BPI Family Bank
• Ayala Life Assurance
• FGU Insurance
• PAG-IBIG
• Insular Life Assurance Co. (3 lots)
• Lacson Lacson Insurance Brokers
• Multinational Investment Bank
• National Life Insurance
• Philippine First Insurance Corp.
• Pioneer Insurance Surety Corp.
• State Investment House, Inc.

21
Ayala Center Cebu
Cebu Business Parks Centerpiece
22
A y a l a C e n t e r C e b u
Ayala Center Cebu

• Gross Leasable Area 77,877 sqm
• No. of Regular Outlets 276
• 4 newly renovated cinemas
• Parking facilities
• Basement - 827 slots
• Surface 717 slots
• Customer Traffic 67,000/day

23
Ayala Center Cebu
Home to popular foreign and local brands
foreign
First-in-Cebu concepts
local

• Nine West
• Springfield
• Florshiem
• GH Bass
• Dexter
• Lacoste
• Lacoste
• Footwear
• Accessories
• Girbaud
• Bossini
• Esprit
• Benetton
• Nike Park
• Adidas

• Kamiseta
• Bayo
• Folded Hung
• Plains Prints
• Freeway
• ForMe
• Memo
• So Fab
• Mendrez
• Rusty Lopez
• Janilyn

• Starbucks
• Levis
• Marks and Spencer
• Lacoste

• Fitness First
• 2nd (in membership)
• in the Phils.

24
A y a l a C e n t e r C e b u
Clustered Family Food-to-Share Dining Concepts
25
A y a l a C e n t e r C e b u
Synergy of Cinemas Dining
Food Choices Affordable Alternative
Dining Cinema Computerized Ticketing System,
Digital Dolby Sound
26
Ayala Center Cebu Mall expansion project

• To increase the patronage of the AB market
• - bring in Rustans Supermarket
• - more popular local foreign brands and IT Hub
  
• Additional 13,000 sqm of leasable space
• Soft opening scheduled in June 2007

27
Ayala Center Cebu Lagoon Redevelopment
features
trendy,
ambience-driven
dining/entertainment
and lifestyle outlets
28
Ayala Center Cebu Lagoon Redevelopment
Greenbelt
concept
Sun up to sun down dining/shopping experience
29
A seaside residential haven located in Catarman,
Liloan, Cebu
30
One of only 23 lighthouse communities in the
world The first in the Philippines
31
Phase 1 launched on October 18, 2005 93 take
up in 7 days Sold out in January 2006 Phase 2
launched on July 1, 47 lots moved in 3 day all
lots committed to buyers at the end of December
2006
32
(No Transcript)
33
Amara
34
Clubhouse
35
Amara - Launch of future phases within 2007 - 2008
36
Asiatown IT Park
Asiatown I.T. Park

• a project of CHIs subsidiary, CPVDC

37
Sky Rise IT Building (SkyRise Realty and
Development Corporation)
38
Sky Rise IT Building (SkyRise Realty and
Development Corporation)
Retail Kuls Kitchen Tsinoy Fusion El Loco
Mexican Grill KK Restaurant Brown Cup Andy's
Crunchchicken Ziburo Resto Bar Oro China Jerseys
Pizza
39
iTwins
i2
i1
40
i1
41
i1
Retail Premium Concepts D' Breakfast Club Ila
Puti Carenderia Cuisina Da Vinci's Pizza Bo's
Coffee Club Chowabungga Everything To Go
42
i2
43
i2 Retail
Rai Rai Ken Starbucks Roma Mia Abuhan Tres Coffee
Bean
44
Chibori Restaurant
Retail Chibori Japanese Restaurant Loft Lounge
and Restaurant Patio Ecila Gourmet Co. Rons
Grill
CJRS Building
45
Globe Telecom
46
P52 million rental income eOffice One
contribution to CPVDC revenues (21)
47
Asiatown IT Park Total Workforce As of year-end
2006
48
Asiatown IT Park
Phase Two
Site Development Plan
49
Asiatown IT Park
Phase Two
Site Development Plan
50
Asiatown IT Park
Community Center
51
Asiatown I.T. Park Community Center

• Proposed Mix
• Dining
• Fast food dining w/ drive thru
• (McDonalds w/ McCafe set up)
• All Day Café
• Coffee Shops
• Popular Restaurants
• Convenience Services
• Convenience Store
• w/ pharmacy
• Business Center
• w/ Utility Payment Center
• Internet Café
• Express Banking Center/ATMs

Recharging outlets Spa / Beauty Salon Specialty
Shops Bookstore/Magazine Shop Body Care shops
Music Store Inter-active Games
(Timezone) Chill out bar
Estimated Total GLA 1, 860 sqm.
52
C e d f I T
Cebu Educational Development Foundation for
Information Technology
1,312 beneficiaries of trainings and proficiency
exams
- a consortium of industry, academe, government
and NGO's -seeks to increase the quantity and
improve the quality of professionals in the
Information and Communications Technology (ICT)
and IT-Enabled Services Industry through
proactive intervention in the HR development
sector.    
Professional Certification, Training and Review
Center
53
Balanced Scorecard
Customer
Learnings Growth
54
Four (4) BSC Perspectives
Balanced
Score
Financial
Customer
Internal Business Process
Card
Learning and Growth
55
Learning and Growth Perspective
Harnessing
People
Potentials
for
Growth
Development
56
Harnessing
Learning and Growth Perspective
People
Potentials
Growth
for
Development
Organizational Strengthening
Better culture of innovation
Better internal climate, motivation
communication
New knowledge, idea and creativity Mgt systems
New forms of employee and stakeholder
participation
57
Learning Growth Measurement Framework
BSC Perspective
Enablers
Technology Infrastructure
Staff Competencies
Climate for Action
58
Learning Growth
BSC Perspective
Entrepreneurial Creativity -Market
Learning -Creative Selling -Cross-functional
excellence -Effective Questioning -Cross
Pollination of ideas
59
Learning Growth
BSC Perspective
People create value through implementation of new
ideas
60
Learning Growth
BSC Perspective
People make it happen through their imagination,
will power and perseverance
61
Internal Business Process Perspective
Enhancing
Customer
Focus
and
Improving
Efficiencies
Operational
62
Internal Business Process Perspective
Customer
Focus
and
Enhancing
Improving
Efficiencies
Better Management Models
Operational
More improved approaches to Info, Idea
Knowledge Management
Enhanced approaches to value chain management
63
BSC Perspective
Internal Business Process

• Three times the
• EXCELLENCE
• requirements

Environment (ISO 140012004)
Health Safety (OHSAS 180011999)
Quality (ISO 90012000)
To uphold quality of products and services
Minimize environmental impact
Provide a healthy and safe working environment
64
BSC Perspective
Internal Business Process
March 2006 CHI recommended for
certification April 2006 CHI awarded ISO
certification October 2006 1st surveillance
audit April 2007 2nd surveillance audit CHI
recommended for CONTINUED certification after the
2 surveillance audits
65
BSC Perspective
Internal Business Process

• Achievement of Quality, Environment, Health
  Safety (QEHS) Objectives for 2006
• Compliance to regulatory requirements
• No nonconformity or audit findings
• Process cycle time and productivity measures
  maintained
• Systems Innovations
• 100 Project Management contract renewals
• Operating Performance Indices (OPIs) maintained

66
SAP (Systems, Applications and Products)
Collection
99.8
Real Estate Development Group
Efficiency
94
Ayala Malls Group
67
Operational
Property Management
P2 million savings
Efficiencies
Comparative Aircon Plant Average Monthly Kwhr
811,819
783,323
750,553
743,096
716,470
Decrease in Consumption
68
Customer Perspective
Achieving
Customer
Satisfaction
69
Customer Perspective
Achieving
Customer
Satisfaction
Customer Retention
Customer Acquisition
Market Share
70
Customer (Real Estate Development Group)
BSC Perspective
71
Customer (Ayala Malls Group)
BSC Perspective
Measures of Effectiveness
Continuously Improving CSR Rating
Sales increase of 9 of the same merchant (YOY)
Customer Retention
Sales increase of 10 for all merchants
Customer Satisfaction
External Customers Merchants, Shoppers Internal
Customers
maintained CSR of 7 out of 10
-
Traffic count increased by 1 (YOY) customer
base Established spending of high-end tourist
market
Customer Acquisition
AB Gated Villages
No. 1 in Cebu
Market Share
Office Workers
No. 1 in Cebu
Foreign Brand
7 out 10
100
72
Customer (Property Management )
BSC Perspective
ECS Results - Properties
8.77
9
8.53
8.20
8.29
8.14
8.07
8.13
8.10
7.92
7.69
8
7.41
1H
7.29
2005
7
6
5
2H
2005
4
3
1H
2
2006
1
0
Park Tower 1
Park Tower 2
Cebu Holdings Center
Ayala Life-FGU Center
73
Customer (Property Management )
BSC Perspective
Measures of Effectiveness
Continuously Improving CSR Rating
Customer Retention
100 renewed management contracts
8.3 PM Real Estate Group 8.1 PM Ayala Malls
Group
Customer Satisfaction
1 new property management contract (City
Sports Club Cebu)
Customer Acquisition
Market Share
Leadership in property management sector
Staff performance ratings 4.8 out of 5.0
74
Customer
BSC Perspective
Total Customer Satisfaction Management System
Increase in Resolution rate (Jan Dec 2006)
400
25 drop
350
300
250
200
Cases identified
150
100
Cases solved within the day
50
0
75
Customer
BSC Perspective
2.95
3763
4000
3652
44.84
3500
3000
48.41
2598
2500
24.5
1768
2000
Cases identified
6
1500
Cases solved within the day
923
1000
91.5
4.9
500
156
0
2004
2005
2006
76
Customer
BSC Perspective
Customer
Service
Awards
6
Maintenance Outsourced Personnel
Excellence
5
Security Guards
1
CHI associate
77
Customer
Service
Excellence
Customer
BSC Perspective
Awards
78
Financial Perspective
Optimizing
Shareholder
Value
79
P206.8 Million
P1.01 Billion
As of December 06
P4.72 Billion
P3.55 Billion
80
P83.46 Million
P248.58 Million
P1.01 Billion
As of December 06
P1.16 Billion
P1.07 Billion
81
BSC Perspective
Financial Performance
Stock Price
2002-2006
3.20
3.00
191 Y-O-Y Value Appreciation 05 vs. 06
2.50
191
2.00
1.50
1.10
104
1.00
64
0.54
32
.50
0.25
0.33
0
02
03
04
05
06
-
82
Finance
BSC Perspective
Market Capitalization
191 increase
7.0
6.14 billion
6.0
5.0
4.0
2.11 billion
3.0
2.0
1.0
0
05
06
83
Financial Performance
BSC Perspective
Revenues
2002-2006 (in millions)
1,000.0
900.0
800.0
700.0
50 Increase vs. 2005
600.0
500.0
400.0
300.0
200.0
100.0
06
02
03
04
05
0.0
84
BSC Perspective
Financial Performance
Net Income
2002-2006 (in millions)
250
207
200
117
150
76 Increase vs. 2005
91
83
100
46
50
0
02
03
04
05
06
-
85
Cash Dividend
P.05 per share
Paid on October 27, 2006
(P96 million)
BSC Perspective
Financial Performance
Historical Prices
2005 - 2007
Dec 06
3.20
Dec 05
1.10
As of Apr 20, 2007
4.25
2005
2006
2007
-
86
Total Shareholder Return
TSR (Historical)
2002-2006
200
195.69
175
150
195.69 2006 TSR
125
102.69
100
62.82
75
31.34
50
Change (06 vs. 05) 93 percentage points
25
0
06
01
02
03
04
05
-25
-
87
Financial Performance
BSC Perspective
Stock Price Relative Performance
2005 - 2006
Change
Dec 29, 2005
Dec 29, 2006
191
3.20
1.10
CHI
PSEi
2,096.04
42
2,982.54
PhiProp
839.86
50
1,261.67
-
88
Revenues P 436 m
Increased by 100 vs. 06
218 m
436 m
06
07
Revenue highlights (in millions)
2006A 2007A Commercial Lots
74 279 Commercial
Center 103 106
Projects 41 51
89
Revenues P 436 m
Increased by 100 vs. 06
218 m
436 m
06
07
Revenue highlights (in millions)

• 2006A 2007A
• Commercial Lots 74
  279
• Commercial Center 103 106
  
• Amara 26 37
• CSCC/Carpark 3 1
  
• e-Office 13 13

90
Revenues Commercial Center P106 m
Increased by 7 vs. 06
103 m
106 m
06
07
Revenue increase was mainly due to increase in
sales per square meter and rental rate
91
Revenues - Commercial Center P106 m
Increased by 7 vs 06
103 m
106 m
07
06
Revenue highlights Increase (land /
bldg) Sales / sqm 7 / 15 Rental Rate 7
/ 9
92
Revenues Commercial Lots P279 m
Increased by 276 vs. 06
74 m
279 m
06
07
Area sold (in sqm)

• 2006A 2007A 2007B
• CBP 1,556 sqm
  
• Asiatown I.T. Park 1,490 sqm
  10,493 sqm 2,251 sqm
• Total 3,046 sqm 10,493 sqm
  2,251 sqm

93
Revenues Commercial Lots P279 m
Increased by 276 vs. 06
74 m
279 m
06
07

• Area sold (in sqm)

• 2006A 2007A
• AITP 1,490 / 23k 10,493 /
  27k
• CBP 1,556 / 26k -
  Total 3,046
  10,493

94
Revenues - Projects P 51 m
Increased by 24 vs. 06
41 m
51 m
07
06
Projects (Units) 2006 A 2007 A
Amara 4
8 Sports
Club 3 -
e-Office 11 11
95
Net Operating Income P 181 m
Increased by 57 vs. 06
115 m
181 m
06
07

• NOI highlights (in millions)
• 2006A 2007A
• Commercial Lots 34 99
• Commercial Center 65 68
  
• Projects 16 14

96
Equity in Subsidiary Affiliate P 14 m
Increased by 12 vs. 06
14 m
13 m
06
07
Equity in Subs Affil (in m) 2006A 2007A CIHCI
9.6 9.1 CLCI 3.1
5.2
97
Net Income P 112 m
Increased by 52 vs. 06
112 m
74 m
06
07
98
Financial Condition
March 31, 2007
99
Assets P 4.88 b
Increased by 3 or P160 m
4.88 b
4.72 b
Dec. 06
Mar. 07
100
Assets P 4.88 b
Increased by 3 or P160m
4.88 b
4.72 b
101
Asset Components P4.88 b
(In millions Pesos)
1,869
769
243
387
390
361
161
698
102
Liabilities P .922 b
Increased by 1 or P13m
.922 b
.908 b
(In million pesos)
103
Stockholders Equity P 3.67 b
Increased by 3
3.67 b
3.55 b
104
Financial Ratios
Dec.06 Mar.07 Current Ratio
2.13 1 2.25 1
Bank Debt to Equity Ratio 0.06 1 0.05 1
Total Debt to Equity Ratio 0.26 1 0.25 1
105
CEBU PROPERTY VENTURES DEVELOPMENT CORP.
Financial Report YTD March 31, 2007
106
Revenues P 292 m
Increased by 526 vs. 06
292 m
47 m
06
07
Increase AITP 2006 A 2007 A -Area
(sqm) 1,490 10,493 -Price (per sqm)
23k 27k -Value P34m P288m e-Offic
e rental P13m P13m
107
Operating Income P 146 m
Increased by 844 vs. 06
146 m
16 m
29 m
06
07
NOI highlights 2006 A 2007 A AITP Lots
11m 138m eOffice 4m 8m
108
General Administrative Expense P 2 m
Decreased by 8 or P.2m vs. 06
2.0 m
2.2 m
'06
'07
109
Net Income P 145 m
145 m
14 m
Increased by 951 vs. 06
06
07
110
FINANCIAL CONDITION
March 31, 2007
111
Total Assets P 1.3 b
Increased by 12 or P142 m vs. 06
1.16 b
1.30 b
112
Asset Components P1.30 b
(In Millions)
Cash and Cash Equivalents P 430
Receivables P 258
Land Improvements P 116
eOffice net P 306
Subdivided Land for Sale P 166
Other Assets P 29
113
Total Liabilities P 91 m
91 m
95 m
Decreased by 4 or P3.4 m
(In Millions)
Est. Liability for Land Property dev.
P30 m
P20 m
Customers Other Deposits
P32 m
P10 m
Accounts Payable
Taxes Payable
114
Stockholders Equity P 1.21 b
1.21 b
1.07 b
Increased by 14 or P145 m vs. 06
115
Financial Ratios
03/07 12/06 Current
Ratio 8.23 1 6.70 1
Debt to Equity Ratio 0.08 1 0.09 1
116
CHI Continues to
build
Projects
Systems
Communities
Relationships
achieve
Customer loyalty
Bottom line success
Investor Confidence