Presentation to
ATR Kim Eng Securities
May 26, 2006
Creating Landmarks. Setting Standards. Building Relationships
Cebu
CEBU. . .
Gateway to
Southeast Asia
Daily
>> Hong Kong
2 hours
6x/week >> Narita, Tokyo
5 hours
Daily
>> Singapore
3 hours
Daily
>> HK/Singapore
7 hours
2x/week >> Kota Kinabalu
1 hour
2x/week >> Kuala Lumpur
5 hours
4x/week >> Seoul
6 hours
3x/week >> Qatar
13 hrs.
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 country’s
inter-island shipping industry
•• 66 trips via fast craft daily
Cebu in a snapshot
• Economic powerhouse of the
South
• Hub of commerce & industry in
the Visayas-Mindanao region
• Educational center
– 6 universities
– 22 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
• Total Population – 3 m
• Metro Cebu Pop.- 1.6m
–
–
–
–
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
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
TOURISM
Cebu’s hotels and
resorts –for leisure
and business
Shangri-La Mactan
Island Resort (one of
the best resorts in Asia
Pacific, Business
Traveller UK, 2004 5Star Diamond Award)
Marriott Hotel
(2002 Kalakbay award
for excellence)
Badiian Island Resort
Marriott
Pulchra
Maribago Bluewater
Resort
(1995-2003 RCI Crown
Resort Award)
Plantation Bay
Shangri-La
Waterfront
Maribago Bluewater
There are currently 3,772 hotel rooms and 924 resort rooms.
Badiian Island Resort
CEBU

Growth in market due to tourists & OFW’s
- Continued increase of tourist arrivals (12% year-on-year growth)
1600
1400
459
1200
394
(in Thousands)
17%
Foreign
33%
1000
Domestic
800
287
5%
600
296
3%
922
400
200
550
591
1%
8%
2002
2003
56%
1,001
9%
0
- Hospitality Industry is on the rise.
2004
2005
Ayala came to Cebu 16 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
•
An affiliate company of
Ayala Land, Inc. engaged in
real property development,
marketing and management
in Cebu
Real Estate Arm of Ayala Corporation
76% Subsidiary of Cebu Holdings, Inc.
Ownership Structure
A subsidiary of Cebu Holdings, Inc.
Ayala Land, Inc.
47.06 %
Cebu Holdings, Inc.
76.26 %
Santiago Land
15.45 %
Province of Cebu
8.28 %
Ayala Land, Inc.
6.74 %
Public
8.72%
First Metro
Investments
10.00%
Public
27.49 %
100%
100%
(As of December 2005)
Total Assets: P4.7 b
Total Liabilities: P1.23 b
Total SH’s Equity: P3.4 billion
Owns 76% of Cebu Property
Ventures and Development
Corporation
(As of December 2005)
Total Assets: P1.05 b
Total Liabilities: P70 million
Total SH’ Equity: P984 million
Creating Landmarks. Setting Standards. Building Relationships.
HISTORY
Asiatown IT Park
declared Special
Economic Zone
Acquisition of Cebu
Property Ventures
and Dev’t Corp
(CPVDC) stocks
IPO
Ayala Center Cebu
Cebu Business Park
Inception of
CHI
1988
1989
1990
1994
1995
2001
•
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 Cebu’s changing
economic and physical landscape
Park
Tower
Two
Park
Tower
One
Ayala Center Cebu
Shopping & Entertainment Hub of Cebu
Dominant ABC+ Market
City
Sports
Club Cebu
Globe
Innove
Plaza
Cebu
Holdings
Center
HSBC
Union
Bank
Tower
Palace
Keppel
Center
New
Terminal
Lexmark
Cebu City
Marriott
Hotel
Bigfoot
Ayala LifeFGU
Center
Cebu
Towers
WTCIPag-ibig
Tower
Parklane
Hotel
Centerpiece of Cebu Business Park
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
Ayala Center Cebu
Home to Popular Foreign Brand Names
• Nine West
• Springfield
• Florshiem
• GH Bass
• Dexter
• Lacoste
• Lacoste
Footwear
Accessories
• Girbaud
• Bossini
• Esprit
• Benetton
• Nike Park
• Adidas
Ayala Center Cebu
Home to Popular Local Brand Names
• Kamiseta
• Bayo
• Folded & Hung
• Plains & Prints
• Freeway
• ForMe
• Memo
• So Fab
• Mendrez
• Rusty Lopez
• Janilyn
Ayala Center Cebu
First in Cebu Concepts
Flagship outlets: • Starbucks
• Levi’s
• Marks and Spencer
• Lacoste
World Class Fitness Club
• Fitness First
 2nd in membership
in the Phils.
Ayala Center Cebu
Clustered Family Food-to-Share Dining Concepts
Ayala Center Cebu
Synergy of Cinemas & Dining
Food Choices: Affordable Alternative Dining
Cinema: Computerized Ticketing System, Digital Dolby Sound
Ayala Center Cebu
Performance

Ayala Center Cebu experienced significant growth for the past years
Rental Rate Growth
Sales Growth
18%
15%
16%
17%
15%
13%
14%
14%
10%
10%
12%
10%
8%
2002
2003
9%
7%
6%
2%
2%
2001

9%
2002
2003
2004
2001
2005
Lease occupancy is maintained at a high level
2001
2002
2003
2004
2005
98.3%
98.7%
96.9%
98.0%
98.1%
2004
2005
Ayala Center Cebu
Retail Scenario
Opportunities:

Growth in market due to fast build up within & around CBP
CBP: Cebu Towers (Office Condo: 15 Levels)
Tower Palace (Condo: 17 Levels)
Lexmark 1 (Office: 23 levels)
Lexmark 2 (Office: 7 levels)
 AITP: Skyrise Building (Office Condo: 8 Levels; GFA =22k sqm )
Primary Industrial Property Corp 11

(Office Condo: 10 Levels; GFA=21k sqm)
Primary Industrial Property Corp 14
(Office Condo: 12 Levels; GFA =28k sqm)
Cebu Business Park
The premier business district of Cebu
Master-planned community
Integrated development
Cebu Business Park
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
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
• HSBC
•Unionbank
• 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.
Few lots left in inventory of Commercial Lots
Year to date take up: 2 lots vs. 1 lot in 2005
Asiatown I.T. Park
-a project of CHI’s subsidiary, CPVDC
Globe Telecom/eOffice
eOffice Locators:
NEC Telecom Software Philippines, Inc.
Tsuneishi Technical Services (Phils.), Inc.
PeopleSupport Philippines, Inc.
NCR Cebu Development Center
Epson Precision (Phils.), Inc.
NEC
TTSP
PSPI
NCR
Epson
eTelecare
Dash Eng’g
SPI
GlobeTel
278
180
1300
160
40
1000
350
191
374
Asiatown I.T. Park Workforce
ESB Locators:
eTelecare
Dash Engineering
SPI Technologies
Contribution to Cebu Economy:
P100 million monthly payroll =P1.2 Billion in 2005
Fast Build-up; Increasing Demand
Total Gross Floor Area: 162,168.48 sq. meters
Year to date Take-up: 7 lots vs. 2 lots in 2005
Future Locators: School, hotel, more IT office buildings
Cedf–IT
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
A seaside residential haven located in Catarman, Liloan, Cebu
One of only 23 lighthouse communities in the world;
The first in the Philippines
Phase 1: Gross sales P189.7 million
Launched on October 18, 2005 ; 93% take up in 7 days
Sold out in January 2006
Customer Centric Innovations- rated Excellent by 45% of Amara buyers
2005 Market Leader: 54% relative market share vs. competitors
Amara website
link
CHI
Revenues
Financial
Highlights
2001-2005 (in millions)
800
700
690
672
641
600
538
512
500
Steadily
Increasing
400
300
200
100
0
-
•Commercial Center
•Commercial Lots
•Projects
•Equity & others
01
02
%
03
%
04
%
%
05
%
37
53
54
52
54
11
17
30
15
13
46
24
8
15
10
6
6
8
18
23
100%
100%
100%
100%
100%
Financial
CHI
Net Income
Highlights
2001-2005 (in millions)
150
117
34%
Annual
Average
Increase
91
83
100
46
50
21
01
02
03
04
05
CHI
First
Quarter
2006
Cebu Holdings, Inc. & Subsidiaries
Statement of Income (consolidated)
FOR THE PERIODS ENDED MARCH 31, 2006 AND MARCH 31, 2005
2006
(In Million Pesos)
Jan. - March
Income
Real estate
Interest and other income
Equity in net earnings of an affiliate
Cost and expenses
Real estate
Interest and others
General and administrative expense
Provision for Income Tax
Income before Minority Interest
Minority Interest
NET INCOME after Minority Interest
Earnings Per Share
Financial
Highlights
P
2005
Jan. - March
238 P
10
10
258
126
4
6
136
114
6
33
27
181
77
62
10
24
10
106
29
3
1
74
28
0.038
0.015
Balanced Scorecard
Financial
Internal Business Processes
Customer
Learnings & Growth
2005
Cebu Holdings, Inc.
Innovations
1)TCS MS
Total Customer Satisfaction
Management System
Within-the-day response
80
60
20
40
20
83%
63%
04
05
2) Text Feedback System – for complaints and appreciation
Internal Business
Processes
product &
customer
service deliveries
2005
Cebu Holdings, Inc.
Innovations
Customer Satisfaction Surveys
Office & Residential Buildings
Ayala Life – FGU
Center
Cebu Holdings Center
Park Tower One
Park Tower Two
10
8
6
4
8.5 (out of
8.2
10)
2
04
05
Result: Renewal of Property Management contracts for 2006
Mall Merchants
Survey coverage
Building Facilities
Utilities
Systems/Procedures
Marketing
Security
10
8
6
4
7.8 (out of
10)
2
04
05
2005
Cost-efficient Schemes
Cebu Holdings, Inc.
Innovations
Ave. Daily consumption (chillers)
(in KwHr)
ACC Chiller Daily Average kWHr (2004 vs. 2005)
32000
31000
29,800
30000
29,076
29000
28000
27000
26,052
27,288
26,555
26000
25000
24000
23000
23,756
25,893
24,628 24,648
24,492
24,310
24,094 24,364 24,225
24,380
23,425
22,750
26,221
25,733
25,258
22000
Jan.
Feb.
Mar.
Apr.
May
Jun.
2004 Ave.
Jul.
Aug.
2005 Ave.
Sept.
Oct.
Nov.
Dec.
26
T
24
T
22
T
20
T
0
Result: close to P3.0 million in savings
25,895
5%
24,565
04
Power
Consumption
Reduction
05
Internal Business
Processes
product &
customer
service deliveries
2005
Cebu Holdings, Inc.
Innovations
Corporate colors symbolize:
Earth Green
Pantone 378
Ochre Yellow
Pantone 110
growth
earth
nature = development
value creation
energy
= creativity
vigor
innovation
Corporate
Rebranding
2005
Cebu Holdings, Inc.
Innovations
Why the Butterfly?
Corporate Agility / Dynamism
Care for the Environment
Personal and Professional Growth
Metamorphosis/Transformation
Freedom with Responsibility
Creativity and Cross-pollination of Ideas
Corporate
Rebranding
2005
Cebu Holdings, Inc.
Innovations
In House &
External Trainings
Advanced
Customer
Service
PeopleStrengthening
LearningsOrganizational
&
Growth
2005
Cebu Holdings, Inc.
Innovations
CHI Plus
Personality and
Lifestyle
Upliftment
Strategy
Employee Wellness People
Learnings Organizational Strengthening
Human Resources
Development
&
Personal
and Professional Growth
Growth
Cebu Holdings, Inc.
Corporate Culture
People
Learnings
& Growth Organizational Strengthening
Creating Landmarks. Setting Standards. Building Relationships.
CHI granted
Integrated
Management
System (IMS)
Certification to 3
standards: Quality
(ISO 9001:2000),
Environment
(ISO14001:2004),
and Health and
Safety (OHSAS
18001:1999)
Management
Systems on March
24, 2006
1988
1989
1990
1994
1995
2001
2006
Cebu Holdings, Inc.
Initiatives
Cebu Holding, Inc.
-the first full-line real estate company to be certified to the
three management systems standards
-Ayala Center Cebu, the first mall in the Philippines to be certified to the
three management systems standards
Quality
Environment
Health & Safety
(ISO 9001:2000)
(ISO 14001:2004)
(OHSAS 18001:1999)
To uphold quality of products and services
Minimize environmental impact
Provide a healthy and safe working environment
Stock Performance
End-2005
CHI
1.10
Property Index 839.86
Phisix
2,096.04
May 24, 2006
2.12
956.62
2,252.58
% change
92.73%
13.90%
7.47%
P2.25
May 22
P1.10
2005
2006
Presentation to
ATR Kim Eng Securities
May 26, 2006
Creating Landmarks. Setting Standards. Building Relationships