AYALA LAND, INC. AND SUBSIDIARIES ‘CONSOLIDATED STATEMENTS OF FINANGIAL POSITION ‘amounte in Thousands) December 24 20. 205. ASSETS ‘current Assets ‘Gash and cash equivalents (Notes 4 and 29) 17,037,347 #20413.041 Shor-terminvesiments (Notes § and 29) ‘358,120 e149 Financial assets a far value through prot o loss (Netos6 end 20) 85,174 495,498 ‘Accounis and notas receivable (Netes 7 and.29) 101,445,909 105038 306 trvertories (Note 8) 146,743,592 120287686 (Other current assets (Nete 8) $8,020,962 48591052 “Total Cure Assets 4104 205,434,260 Noncurrent assets Noneurtnt account and notes receivable (Notes 7 and 20) 46,024,255 45563,880 Financial asses 2 far value through other compretensive income (FVOA) (Notes 10 and29) 4811443 1529,179 vestments in associates and joint ventures (Note 11) zeeo1.284 253171581 Right-otuse arsete (Nate 33) sgoogi7s 1356.42 Investment properties (Note 12) 2a7.684950 — 243043,448 Property and equpment (Note 13) “3446,968 43,062,357 Deferred tax assets net (Note 23) aaazsis T1527 083 (Other noneurrent assets (Notes 14 ard 34g27/3 34.880 477 “Teal Noreurers Assets 397, 718.489,028 721,494,374 P1323. 278© Short-term Investments ‘Short-term Investments consist of money market placements made for varying periods of more than three (3) months and up to one (1) year and earn interest at the respective short-term investment rates, ‘The annual interest rates of the short-term investments are as follows: 2020 2019 a Te US Dollar 0.08% 10 0.10% 18% 10 20% &_ Financial Assets at FVTPL This account consists ot Investment in Unit Investment Trust Funds (UITF) Investment in ARCH Capital Fund ‘The Group invests in money market UITF which aims to generate Iquilly and stable income by investing ina divessifed portfolio of primatily short-erm fixed income instruments and with no rminimurn holding petiod requirement. Investment in ARCH Capital Fund pertains to monetary interest in a fund in which the management takes the view that these are held for trading and itis a portfolio of identiied property funds invested and managed by prolessional managers.ln 2020, the Group also invested in Treasury Bills which are shortterm secure investments issued by ‘he Philippine government through the Bureau of Treasury (BT) and these are held for trading, ‘The Group's investment in UITF includes investment in BPI, As of December 31, 2020, the Group invested in UITE wit a fei value of P200 milion for BPI Money Market Fund and PQS milion for BP USD Short Term Funds. The Funds’ Net Asse! Value (NAV) was at P61.961.9 lion with duration of 255 days and R41,101.9 milion with duration of 307 days, respectively. ‘As of December 31, 2018, the Group invested in BPI MMF with a fair value of R80.9 milion. The BPI MMF's NAV was at 23,860 6 milion with duration of 131 days. ‘The folowing table provides the fair value hierarchy of the Group's financial asses at FVTPL which ‘are measured at far value as of December 31, 2020 and 2019. Date otvaluasen san et ul mel lesen Unt ete Tu erenes Fane (Tr) cecomber34 2020 rasee me ramoee . venti Ae Capta Fund ecanberat-atan "War a Saat teamentn fess ie Becember34 20003982 Sassi = 2019 ve mnuent ig a uedonces in Santcant naovabe Date vate ra ee v3 ‘ene Unt eter ru reeset Furs (UTR) December 31.2019 roB405 meals e eam ARGHCaptsFund ——Dacenberst 20m Sanaa = = seso8t ‘The fair value ofthe investment in UITF is based on net asset values as of reporting dates, ‘The fair value of the investment in ARCH Capital Fund is determined using the discounted cash flow (OCF) method. Under the DCF method in fund fair valuation, itis estmeted using assumptions Fegarding the benefits and liabities of ownership over the underlying asset's Ife including an exit or tetrmina Value. This method involves the projection ofa series of cash flows on areal property interact. To this projected cash flow eeriee, a market derived decount rate ie applied to establish the Present value of the income stream, associated withthe underlying asset. The exit yield is nocmally ‘seperately determined and differs from the dscount rate. Signficant inputs considered were rental, ‘growth and discount rates. The higher the rental and growth rates, the higher the far value. The higher the discount rates, the lower the fair value. “The fair value of invastment in treasury bills is based on BVAL reference rates on government ‘secutties. For the year ended December 31, 2020, the BVAL reference rates range from 1.002% to 3.953%. Reconciliation of fa velue measurement of Investment in ARCH Fund is shown below: Balance at begioning of year Redemptions AAdcitions. ¥ Unrealized loss (48,600) 7.248)Reconciliation of fak value measurement of investment in UITF is shown below: 2020 2019 (a Thousands) Balance at beginning of year 96,405 5,724 Redemptions (1,904,759) (741,276) ‘Additions 2.477,936 748,74 Unreaized gains included under “Other income” 5, Balance at end of yea 378,056 96,405. © Inventories This account consists of: 2020 209 "ur Tousen Real estate - et cost Residential and condominium units 84,011,309 P65.659,786 Residential and commercial lots 61,137,607 52,363,871 Offices - at cost 1,594,676 2.264.229 743,592 F120. 287, 586, A summary of the movements in inventories is get out below: 2020 Residential and commercial ite units offces Total “in Thousands) Balances at bogining of year pezscoert Peceen ros paae4aze 120,207,606 and sequied during the yoor ‘sare 47740267 ~ 013389 Corstructon development costs incured Taae\ea7 14 7e8,408 zagate 12,155,409 repels (ocegrised ae oat fea tts sates) (Note 22) (issx741) (16093619) age) (2,816.27 Transfes fom to) nvestrent properties Balances stend of COREA i mi 2 19 estenia anc Resdertalané "“condominu Tir Tousen piggr5078 F2.5T0700 PIO4STIL - = 7N7/509.063 24189 821800986303 205 ‘we = 8 (7211541) @360051) —(62.355001) s.080.382 88 1.955.100 ‘The Group has no purchase commitments pertaining to its inventories as of December 31, 2020 and 2019. ‘There are no lions and encurbrencee on the Group's real estate inventories.10. Financial Assets at Fair Value through OCI “This account consists of: 2020 2019 (ee Trousancs) Shares of stock: ‘Quoted 1,578,590 PI478.444 Unquoted ‘483,17 505,486 2,061,767 7,983,928 Net unrealized loss (550,324) (454,749) i,511,643 1.529.178 Investments in quoted shares of stock include shares held for clubs wherein the Group does not ‘exercise control or demonstrate significant influence. Investments in unquoted shares of stock include unlisted shares of public utilty companies which the Group will continue to carry as part of the infrastructure that it prevides to ts real estate projects. ‘The Group made additional investments in equity instruments amounting to 99.0 illion and, F935 ilon in 2020 and 2018, respectively. The Group also disposed investments amounting to 21.1 million and P569 millon in 2020 and 2019, respectively. No gain or loss was recognized from the digposal Movements in the reserves for financial assets at FVOCI as of Devember 31, 2020 and 2019 are as follows: 2020 2019 (ie Thoszande) Balance at beginning of year (454,749) (451.529) Fa value changes during the year (426,088) (3.220) Balance at end of year (880,837) ___(P454.749) ‘The Group entered into and designated interest rate swaps as hedging instruments 2s a cashtlow hedge from loans beating interest at floating rate. The fer value of the interest rate swap is estimated Lsing valuation tochniques with observabie inputs, which usos present valuo calculations and incorporate various input including interest rate curves. Total fair value amounted to 330 milion, ‘As of December 31, 2020 and 2019 reserves for financial asse's at FVOC! attributable to non- ‘controling interests amounted to 132.6 milion and F2.6 million, respectively. ‘The folowing tablo provides the fai velue hierarchy of the Group'e financial aceots a far valuo through OCI which are measured st fair value as cf December 31, 2020 and 2019 (in thousands).‘Quoted prices in Sigincant —_signifeant anets inputs put ate of Valuston Tora __(uevel)__ Level) (Levels) ‘Quoted Realestate December 31,2029 RASA 705——ABA,TOS ~ . Foam ad enue December34,2029 —"2eaiout—eg044 = = Real Decomber31,2029 $4980 84980 : - sities and enecay Decomber31,209 340034300 : : ‘Teecommumeaton December 31,2029 ozs 228 : ancl ace: management December34, 2029 ‘0 00 : = Unquated “Trim ard leisure Various - ssea6 Fancal exec management Vatous, = ae sities and energy Various > rar Realestate Vatous: : 748 Fee 985 December 31,2019 Quoted eal estate Decombe'31,2019 PS2SS41—_P5RS.SAI a a “eure end iste Decombe 31,2019 26292722 az - - Francia asset management December 31,2019 81622 BI 622 - - Reta Deconbe 31,2019 54658 4.BEB . - Utes ond ener Deconbe 31,2019 15905 15.965 . - TTelecemmamiation December 31,2019 2816 2818 = - 50 ‘Casied pieosin —Sigifcart__Sonicant ‘eive ceavable unabeenatie rmarets outs pus Date of Vauaton Tol (level) evel?) avai) ae “Tourism endleisure Vericus 59,101 e e sities and energy Venus 19787 = - estes venus 11888 = : Tea POSESTi. Investments in Associates and Joint Ventures ‘Thie account coneiets of: 2020 2019 ‘in Thazarco) lavestment in stocks ~ cost Balance at beginning of year 21,022,390 19,492,702 Additions 1,837,901 1,529,688 Redemption (326,602) = Balance at ena of year 22,833,689 27,022,300 ‘Accumulated equiy in net earnings: Balance at beginning of year P4.266,661 3,787,105 Equity in net earrings ‘586,502 ‘965.787 Dividends received (758,714) (386.241) Balance at end of 194,439 4,365,651 Subtotal 726,728,128 25,389,041 uty share in cumuiative translation adjustment (126,874) (71,460) 6,601,254 B25 317.581 “The equity share in cumuatve translation adjustments represents exchange differences arising trom the tanslation of financial statements ofthe foreign operators, whose functonal currency is her than Philippine Peso.