Analyst Briefing1Q 2019

In PHP billions 1Q 2018 1Q 2019 %changeRevenues1 13.0 14.7 13.6%Real Estate Sales 8.5 9.5 11.1%Rental 3.4 3.9 16.5%Hotel 0.4 0.6 56.1%Other Revenues1 0.7 0.7 6.6%

Cost & Expenses 9.5 10.8 13.9%Residential 4.6 5.1 11.0%Hotel 0.2 0.3 62.1%Operating Expenses 2.4 2.9 22.6%Interest & Other Charges 1.2 1.0 -17.4%Tax Expense 1.1 1.4 34.0%

Operating Income1 5.0 5.8 16.4%Pre-tax Income1 4.5 5.3 17.6%Net Income1 3.5 3.9 12.6%

Attributable to Parent1 3.3 3.6 10.6%Minority Interest 0.2 0.3 48.9%

Operating Margin 38.3% 39.3% +100Net Income Margin 26.9% 26.7% -20

PERFORMANCE UPDATE

2

• Double-digit growth for all segments

• Rental growth in line with 2020 target

• Cost growth growing behind of topline growth

• D&A ↑17%, P525mn vs P612mn

1Excluding P189mn non-recurring gain

• Stable margins on EBIT and earnings

• Residential segment continues strong growth

• Unrealized FOREX losses ↓ 98%

• Steep growth trajectory for hotels

• Tax expense growth from new accounting treatment

In PHP billions 1Q 2018 1Q 2019 %change

Real Estate Sales 8.5 9.5 11.1%

Rental 3.4 3.9 16.5%

Hotel 0.4 0.6 56.1%

Non-Core1 0.7 0.7 6.6%

Total Revenues 13.0 14.7 15.0%

CONSOLIDATED REVENUE BREAKDOWN

• ESNEA ↑ 48%, IOI ↑33%

3

• Rental income growth pushes contribution

to 27% of revenues

• RES anchors revenues at 64% of total

64%66%68%69%73%72%71%70%72%75%

82%

27%25%24%23%19%

17%17%16%14%13%

11%

4%3%3%3%2%2%1%2%1%1%

1%5%6%5%6%6%

9%11%12%12%11%5%

1Q 20192018201720162015201420132012201120102009

Residental Revenues Rental Income Hotel Operations Non-core

• Fast-growing hotel segment

• Double-digit growth for all segments

1Excluding P189mn non-recurring gain

1Q 2019 PROJECT LAUNCHES

4

South Beach Place Westside CityP 7.9 billion | 7% sold

Sunny Coast Residential Resort Westside CityP 5.3 billion | 35% sold

The Albany - YorkshireMcKinley WestP 3.0 billion | 48% sold 5

1Q 2019 PROJECT LAUNCHES

Countrywoods Cluster 2 Twin LakesP 920 milllion | 54% sold

Two Regis The Upper EastP 1.6 billion23% sold

1Q 2018 PROJECT LAUNCHES

6

# Megaworld Corporation Township P 23.1 bn

1 South Beach Place Westside City P 7.9 bn

2Sunny Coast Residential

ResortWestside City P 5.3 bn

3 Two Regis Upper East P 1.6 bn

4 One Corporate Maple Grove P 1.5 bn

5 The Albany Yorkshire Mckinley West P 3.0 bn

6 Saint Mark Residences Mckinley Hill P 3.8 bn

Global-Estate Resorts, Inc. P 920 mn

7 Countrywoods Cluster 2 Twin Lakes P 920 mn

TOTAL P 24.0 bnOne Corporate PlaceMaple GroveP 1.5 billion | 29% sold

11.323.5

37.653.0

17.639.9

54.670.5

33.551.6

70.691.1

35.55.6

12.6

17.7

23.6

5.6

12.6

17.7

23.6

7.3

16.1

23.6

30.0

8.0

2.9

5.8

8.2

10.9

2.9

5.8

8.2

10.9

1.9

8.4

11.6

14.3

4.6

1Q 2016 1H 2016 9M 2016 2016 1Q 2017 1H 2017 9M 2017 2017 1Q 2018 1H 2018 9M 2018 2018 1Q 2019

MEG ELI & SPI GERI

SALES RESERVATIONS

7

• Group - ↑13%

• MEG - ↑6%

• ELI & SPI - ↑10%

• GERI - ↑139%

11.3 12.2 14.1 15.4 17.622.3

14.7 15.9

33.5

18.1 19.0 20.5

35.55.6 7.0 5.1 5.9

5.6

7.0

5.1 5.9

7.3

8.8 7.5 6.4

8.0

2.92.8 2.4

2.82.9

2.8

2.42.8

1.9

6.53.2 2.8

4.6

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

MEG ELI & SPI GERI

19.9

41.9

63.5

87.6

26.1

58.3

80.5

105.0

42.7

76.1

105.8

135.5

48.0

19.926.1

42.748.0

22.0 21.7 24.0

32.2

22.2 24.5

33.429.7 29.7

Cumulative

Quarterly

in PHP billions

in PHP billions

4.6 4.55.7

6.7

8.6

11.4

13.2 13.6

16.117.536.9%

34.4%36.1% 36.8%

40.5%

44.3%46.0% 44.9%

47.1% 46.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross Profit Gross Profit Margin

STABLE OVERALL RESIDENTIAL MARGINS

In PHP billions 1Q 2018 1Q 2019 %Change

Real Estate Sales 8.5 9.5 11.1%

-Cost of Real Estate Sales 4.6 5.1 11.0%

Total Gross Profit 3.9 4.4 11.2%

Gross Profit Margin 46.0% 46.1% +10 bps8

in PHP billions

• High residential margin stable at current levels

• Double-digit growth

DIVERSIFIED REAL ESTATE SALES MIX

9

In PHP billions 1Q 2018 1Q 2019 %ChangeEstablished Areas 7.0 6.2 -11.1%Taguig 2.1 1.9 -12.0%Makati 1.3 0.7 -46.4%Laguna 0.4 0.7 73.9%Batangas 0.1 0.4 212.3%Iloilo 0.2 0.3 57.8%Cebu 0.3 0.2 -19.2%Others 2.5 1.9 -22.3%

Emerging Areas 1.6 3.3 109.8%Paranaque 0.9 2.3 169.4%Cavite 0.2 0.4 106.7%Bacolod 0.1 0.0 -66.8%Davao 0.1 0.1 8.3%Others 0.3 0.4 25.9%

Subsidiaries 8.5 9.5 11.1%Parent 5.7 6.4 11.9%GERI 1.2 1.2 4.9%ELI 1.1 1.1 5.0%SPI 0.5 0.7 27.8%

• 65% from establish areas providing stable base

• 35% from emerging areas providing boost in RES

• Including new townships such as Capital Town, Eastland Heights, and The Upper East

• Robust growth from Westside City and Maple Grove

• Strong growth on parent anchoring 68% of total RES

• MM ex-Westside City contributes 50% of total RES

• Robust growth in Luzon townships

1.1 1.1 1.1 1.2 1.3 1.3 1.4 1.5 1.5

1.8 1.8 1.8 1.8 2.1 2.1 2.2 2.3 2.4

1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 20190.2 0.2 0.2 0.6 0.7 0.9 0.2 0.32.7 2.9 3.6 4.0 4.6 5.5

1.3 1.5

3.3 4.15.1

6.07.3

8.7

2.1 2.4

2013 2014 2015 2016 2017 2018 1Q 2018 1Q 2019 2020

136 166 170 170 237 272 304 433368 432 509 621

737 8511,013

1,119

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

12.5

YoY

Rental portfolio (‘000 sqm)

7.3

1,123

9.0

20

791

2,022

Office Lifestyle Malls & Others Intersegment & Others

Office Lifestyle Malls & Others

CAGR 20%

10.6

974

17%6.2

GROWING RENTAL INCOME DRIVEN BY OFFICE & LIFESTYLE MALL LEASING

10

2.9 2.9 3.0 3.0 3.4 3.43.8

QoQ

in PHP billions in PHP billions

Office Lifestyle Malls & Others

1,3171,552

1,785

3.715.2

504 598 679

3.6 4.2

3.9

2019

Acrovia City One Paseo 23,100

Davao Park District Clocktower 1,300

Iloilo Business Park One Fintech Place 16,300

McKinley West One LeGrand Tower 48,300

Uptown Bonifacio World Commerce Place 103,500

Total GLA 192,500 sqm

2020Capital Town Pasudeco Tower 1 10,000

Iloilo Business Park Two Fintech Place 17,100

Uptown Bonifacio Worldwide Plaza 67,300

Westside City One Fintech Tower 21,600

Total GLA 116,000 sqm

2021Capital Town Pasudeco Tower 2 9,900

Capital Town Casa de Emperador 7,700

Iloilo Business Park IBP BPO 10 18,000

Iloilo Business Park IBP BPO 11 18,000

Mactan Newtown TMN BPO 6 10,000

The Upper East TUE BPO 1 10,000

The Upper East TUE BPO 2 10,000

Westside City Two Fintech Tower 28,000

Total GLA 111,600 sqm

OFFICE PIPELINE

11

One LeGrand Tower (2019) World Commerce Place (2019)

Two Fintech Place (2020) One Fintech Tower (2020)

COMMERCIAL PIPELINE2019

Alabang West Alabang West Retail 1

Arcovia City One Paseo

Arcovia City The View Deck

Boracay Newcoast Boracay Belmont

Davao Park District Clock Tower

Davao Park District Davao Finance Center

Eastwood City Eastwood Global Plaza

Eastwood City One Eastwood Tower 2

Iloilo Business Park Festive Walk Parade 1B

Iloilo Business Park One Madison Tower 1 and 2

Makati Greenbelt Hamilton 2

Makati Salcedo Skysuites

McKinley Hill Venice Grand Canal Mall Area 7

McKinley West Le Grand Park

Uptown Bonifacio Uptown Parksuites

Uptown Bonifacio Uptown Ritz

Uptown Bonifacio World Commerce Place

Westside City Bayshore 1

Total GLA 40,600 sqm 12

Clock Tower (2019)

Uptown Parksuites (2019)

COMMERCIAL PIPELINE

13

2020

Boracay Newcoast Boracay Beachfront

Boracay Newcoast Boracay Arrival

Davao Park District Art Deco

Davao Park District Colonnade

Highland City Skymall

Iloilo Business Park One Fintech Place

Iloilo Business Park Two Fintech Place

Mactan Newtown Mactan Newtown Beach

Maple Grove The Greenhouse

McKinley West One Le Grand Tower

Northill Gateway The Ruins

Westside City Sunset Boulevard & One Fintech

Total GLA 120,500 sqm

2021Boracay Newcoast Boracay Chancellor

Capital Town Sugarmill Mall

Davao Park District One Lakeshore Drive

Makati San Antonio Residences

Shaw The Pad

The Upper East Upper East Cinemax Mall

Total GLA 51,600 sqm

The Ruins (2020)

The Greenhouse (2020)

GROWING RENTAL INCOME – HIGH MARGIN BUSINESS

In PHP billions 1Q 2018 1Q 2019 %changeRevenuesRental 3.4 3.9 16.5%Intersegment Sales & Interest Income 0.2 0.3 22.9%

Rental Revenues 3.6 4.2 16.9%-Operating Expense 1.0 1.1 14.0%Rental Operating Income 2.6 3.1 18.0%+Interest Expense 0.1 0.1 -13.8%Rental EBIT 2.7 3.2 16.3%+Dep. & Amor. 0.4 0.5 21.3%Rental EBITDA 3.1 3.7 17.0%

Rental EBIT Margin 76.3% 75.9% -40 bpsRental EBITDA Margin 87.5% 87.6% +10 bps

• Strong expansion on EBIT and EBITDA

14

Current EBITDA MixRental53%

Hotel Operations2%

Current EBIT MixRental 50%

Hotel Operations1%Real Estate

49% Real Estate45%

• Rental revenues with intersegment sales up 17%

• High and stable margins

48.150.640.538.931.7

8.83.8

25.125.134.4

22.320.9

24.824.8

1Q 2019201820172016201520142013

Gross Debts Loans

$250,000,000 4.25% April 2013 2023

₽12,000,000,000 5.35% March 2017 2024

Bonds Date Issued MaturityCoupon Rate

in PHP billions

Bonds Loans

₽48,139,869,242 ~5.00% Various Various

Loans Year Issued MaturityAve. Rate

28.6 33.5

52.6

74.9

61.2

DEBT MATURITY PROFILE

15

75.7

Floating Rate20%

Fixed Rate80%

73.3

2013 2014 2015 2016 2017 2018 1Q 2019

Debt to Equity 28% 26% 39% 43% 46% 41% 38%

Net Debt to Equity Net Cash 7% 22% 31% 36% 31% 30%

in PHP billions

SOLID BALANCE SHEET

16

73.375.774.9

61.2

52.6

33.528.6

16.317.516.416.422.825.1

31.8

38%41%46%42%39%

26%28% 30%31%36%

31%

22%

7%

1Q 2019201820172016201520142013

Gross debt Cash and cash equivalents Debt to Equity Ratio Net Debt to Equity Ratio

13.0

49.344.746.250.2

5.94.22.8

4.3

1Q 2019FY 2018201720162015

2015PHP54.5B

2016PHP49.0B

2017PHP48.9B

2018PHP55.2B

2019PHP65B

5-YEAR CAPEX PLAN PHP285.8B UNTIL 2019

17

in PHP billions

54.549.0 48.9

Actual CAPEX

Land Acquisition Project Development

55.2

13.0

55%

25%

20%

Residential Investment Properties Land Acqusition

CAPEX Allocation

P36B

P16B

P13B

• Diversified township roster• 24 townships across the country• Growing contributions from outside MM

• High residential base• High blended GPM at ~46%

FY 2018 presales at P48bn (~P140bn 2019 guidance)FY 2018 launches at P24bn (~P105bn 2019 guidance)

• Growing high margin rental business• Rental EBIT margin at 75%• Rental EBITDA margin at 88%

2020 Rental Income Target: P20bn

KEY TAKEAWAYS

18