AYALA LAND ASM SPEECH
2020 ANNUAL STOCKHOLDERS’ MEETING
MESSAGE OF THE CHAIRMAN FERNANDO ZOBEL DE AYALA
APRIL 22, 2020
To my fellow Shareholders, good morning.
Through the years, Ayala Land has remained both resilient and resolute in its singular goal of enhancing land and enriching the lives of more Filipinos. This was demonstrated in 2019 as we built and invested in more projects across the country.
The Philippine economy grew 5.9% in 2019, slightly slower than the previous years. However, fundamental growth drivers such as BPO revenues and overseas Filipino remittances remained strong. From its peak in 2018, inflation rates stabilized and remained within government
targets. This allowed the Bangko Sentral ng Pilipinas to cut both the benchmark rates and reserve requirements to spur growth in the country.
We also saw a boost in the government’s infrastructure spending. It grew by 8% to exceed the PHP1-trillion mark for the first time.
Ayala Land continued to benefit from this positive momentum. Our net income grew by 13% to PHP33.2 billion in 2019. We continued to allocate significant resources to contribute to the development of new growth centers, helping to promote growth and progress to more people across the country.
We continued to be optimistic about the domestic environment and spent PHP108.7 billion in capital expenditure during the year. This is equivalent to 64% of our revenues amounting to PHP168.8 billion, to create and develop new projects, particularly in the residential and leasing segments.
Ayala Land continued to develop large-scale masterplanned mixed-use estates, helping spur growth and progress in many communities. To date, Ayala Land has a total of 29 estates located in different parts of the country. In these growth hubs, we provide living and recreational options for the communities that we serve— homes, office towers, malls, and industrial parks.
In 2019, Ayala Land established three new estates—two in Luzon and one in the heart of Metro Manila. This is in line with our commitment to develop new growth areas and revitalize established districts. The 120-hectare ALVEO Broadfield in Biñan, Laguna will produce 80 hectares for commercial activity and 40 hectares for residential projects. The 290-hectare Cresendo in Tarlac City, on the other hand, will enhance the province’s push to become a new metropolis with affordable living and lifestyle options. Over 80% of Cresendo will be devoted to residential areas and open spaces. Meanwhile, the 11-hectare The Junction Place in Quezon City will expand Ayala Land’s footprint in Metro Manila.
We have always aspired to provide Filipinos with high-quality living, working, and recreational options. In 2019, we launched 48 new projects worth PHP158.9 billion, the equivalent of close to 95% of our gross revenues.
Furthermore, we will continue Ayala Land’s efforts to protect the environment, which is an integral and core aspect of our business model. We reduced emissions from our commercial properties by 72%, keeping us on track with our carbon neutrality target by 2022. In addition, we doubled the number of our green building portfolio to 10 LEED certified buildings as of end-2019. Finally, we opened two processing facilities, in Arca South and Lio Palawan, to convert plastic waste in our properties into inputs for eco-bricks and eco-pavers to be used in our developments.
In closing, I would like to thank the management and staff of Ayala Land for their dedication and hard work. I am proud of their high engagement in the many communities that we serve, providing opportunities for employment, livelihood, and productivity while ensuring their health and safety.
I would like to especially thank our President and CEO Bobby Dy, whose leadership has sustained Ayala Land’s position as a dominant player in the Philippine property industry.
Finally, I thank our Board of Directors for their guidance and our many stakeholders for your continued trust and support to Ayala Land.
The publication of this message comes at a time when the world is facing enormous economic, health, and social challenges brought about by the COVID-19 pandemic. Ayala Land is doing everything it can to support its employees and reaching out to help some of the most vulnerable communities in our country. Notwithstanding the challenges the world and our country are facing today, we remain optimistic of the long-term prospects as we continue to develop, innovate, and build for our many stakeholders.
At this point, I would like to call Mr. Bobby Dy to present his annual report.
Thank you very much. A good day to all of you.