Aboitiz Equity Ventures, Inc. (AEV) Earnings Call Transcript & Summary

Okay. So good afternoon, everyone. So welcome again. For this part of the day, we are going to report on the consolidated financial and operating performance of Aboitiz Equity Ventures. I would like to repeat some of our house rules. So questions have been requested from our guests in advance, which we will address during the Q&A portion of this event. We will also entertain live questions from the audience if there are any. And finally, questions that we are not able to answer during the Q&A session will be answered via e-mail. So we are now going to report on the consolidated financial and operating performance of Aboitiz Equity Ventures as well as our non-listed businesses, namely our Food Group, AboitizLand and Aboitiz InfraCapital. Again, we would like to remind everybody, this portion of our event will be recorded for documentation purposes and will be uploaded on our website after this event. By joining this session, you consent your name, voice and image being recorded for use in dissemination. If you do not consent to the foregoing, please do not join the session. So to present for Food, we have Mr. William Paradies, COO, Food & Nutrition and Philippines Country Director of the Food Group. To present for Land, we have Mr. Dave Rafael, President and CEO of AboitizLand. To present for Infrastructure, we will have Mr. Cosette Canilao, President and CEO of Aboitiz InfraCapital. And to present the Group's consolidated financials as well as to give us an update on our acquisition of Coca-Cola Bottlers Philippines or CCBPI. We have Mr. Toto Hilado, the CFO of Aboitiz Equity Ventures. At the end of the presentation, we will conduct a satisfaction survey and then proceed our Q&A session, where we will address questions related to AEV and its non-listed businesses as well as our CCBPI acquisition. Questions related to our other publicly listed companies, namely UnionBank and Aboitiz Power will be addressed offline after this briefing. So before I turn you over to Mr. William Paradies, we will kick off the Food Group's presentation with a video. [Presentation]

Good afternoon, everybody. Thank you for being here with us. I'm standing in for Tristan, who's out sick, who usually do this. So let me start by taking us through the Food Group's financial highlights for the year 2023. Food Group ended the year with a net income after tax of PHP 1.3 billion, which was a large improvement over the year prior. This was due to improvements in margins, both from our Agribusiness and Flour units and notwithstanding the challenges affecting our -- Okay. Sorry, is that better? Notwithstanding the challenges affecting our sales volume across almost all business units. The full year saw total revenue declined by 4% year-on-year, driven by reductions in both Food & Nutrition sales along with a decrease in revenue from our regional Agribusiness unit. Key contributors to the decline in Food & Nutrition were our Flour and Trading divisions. However, comparing quarter-on-quarter, Food Group as a whole was able to sustain an uptrend in revenue throughout the year. EBITDA was up 8% year-on-year to PHP 5 billion, driven by a 26% increase in contribution from the Agribusiness unit, which was toned down by the Food & Nutrition that posted a decline year-on-year on losses mainly from the Farms business. Correspondingly, EBITDA margin was up 57 basis points year-on-year. And quarter-on-quarter, we saw improvement throughout the year as margin went -- came up from just above 1% to end the year at 5%. Despite of the challenges in volume as well as a high interest rate environment, the Food Group finished 2023 with a better bottom line due to active management of our pricing strategy as well as cost efficiencies. Food Group's revenue decreased 4% year-on-year to PHP 101 billion, pulled down, as mentioned by the lower sales from both units, Agribusiness and Food & Nutrition. Food & Nutrition business contributed PHP 17.6 billion, which was 9% below the prior year. Revenue reduction in our Flour division was due to decline in demand for flour products due to higher prices coming off of the prior year with record high commodity prices. Farms, meanwhile, improved slightly as volume increased with higher demand in the second half and our Agribusiness unit delivered a total of PHP 72 billion in revenue, which was 10% lower than the prior year. Demand challenges were felt from both our Aqua and Livestock segments as a reduction in swine population around the whole region was felt, bringing lower overall consumption of most classes of protein, which had an impact all the way down the chain. In terms of revenue contribution, however, Agribusiness continues to be the main driver of the total Food Group, contributing consistently around 3/4 of our business. With regards to EBITDA, our EBITDA showed an 8% increase year-on-year to PHP 5 billion, owing to the 26% jump from our Agribusiness unit, which offset the decline in Food & Nutrition. Both our Flour and Agribusiness division's operating profit showed a sustained improvement well into the year despite challenges from volume. Flour margins improved as commodity prices leveled off from record highs in the prior year as well as effective cost management. Agribusiness unit margins improved as well as a result of the same trend in commodity prices. This, along with benefits from formulation cost reductions, SKU rationalization and lower production costs resulted in the mentioned overall improvement in EBITDA more than making up for the slight reduction in revenue. Our Farms division ended with a negative EBITDA of PHP 573 million. This was dragged down by a number of factors, mainly by the cost of underutilized assets as well as a sharp drop in selling prices in the second half of the year. On the other hand, Trading division also ended in the red due to a decline in volume from lower demand as well as lower margins from drop in commodity prices. As for NIAT, again, Food Group closed 2023 with a net income of PHP 1.28 billion. This is an improvement from the PHP 8 million in the prior year. And also on a positive note, a reversal from the net loss position that we began the year at over PHP 500 million in the first quarter. Now please allow me to update you on some of our key projects. First would be -- I think you can go already to the next. Yes. So let's start with our Agribusiness division and the construction of our Yunnan mill in China. The lease of our current plant in the area in Kunming expires in April '24. So we're constructing a new feedmill to replace that capacity and it will also be better located. The Yunnan Mill has a capacity to produce up to 150,000 metric tons of livestock feed per year. And part of this additional capacity includes an additional ruminant production line and a mass conditioning line, which will allow us to enter into new segments of the feed market region -- in this region. This facility can also be expanded to produce up to 70,000 metric tons per year if we choose to expand. Schedule is on track to complete commissioning next month and commercial operations will start the month thereafter in May. Another important project that we're looking forward to is the construction of our new feedmill in Long An Vietnam. The Long An Mill will give us the ability to grow the livestock feed business in the Southern region of Vietnam. This mill will have a capacity of up to 200,000 metric tons per year and can potentially be increased by another 100,000 metric tons. This facility will supplement the production already existing from our Binh Duong and Dong Nai plants, which have a combined capacity of 132,000 metric tons and are currently running at full utilization. Schedule is likewise on track to commission this month, and we are looking forward to the production for this new line shortly after. As for the Farms division, we also continue to grow our meat brand, The Good Meat, and develop more channels. We opened 3 company-owned branches and 4 franchise locations in 2023, along with 45 new supermarket concessions. Our product is now available throughout various digital platforms, along with our physical channels of our own stores, franchises and network of over 200 supermarkets. So to recap, our business segments across the region faced challenges as demand soften, coming off of peak commodity prices the year prior and into the first quarter, which led to a reduction in demand and hence, a reduction in the top line of 4% year-on-year. Despite the lower sales volume as well as higher interest rate environment though, the Food Group managed to improve EBITDA as a result of improved input cost throughout the year and effective management of both selling prices and cost efficiencies. For our Farms division, the recovery will be seen with better asset utilization as we repopulate our one of our Breeder Farms, which was empty last year as well as having full production from our new Breeder Farm 3 site, which was only producing for part of the year last year. We also continue to build up our channel development and increase our mix of branded product to earn better prices. So that's it for the Food Group. Thank you very much.

Thank you so much, William. May we now call on Mr. Dave Rafael for AboitizLand. [Presentation]

Good afternoon, everyone. I'm here to present the performance AboitizLand in 2023. So based on the key operational and financial metrics of our [indiscernible], most of them, residential sales was almost the same as the previous year. However, revenues climbed by 1% at PHP 3.9 billion. Gross profit improved from PHP 1.5 billion to PHP 1.7 billion, and our core EBITDA also improved by 12% from PHP 928 million to over PHP 1 billion. So 2023 was another banner year for -- this is the third year in a row that we were able to maintain our good sales performance. We were able to hit close to PHP 5 billion in gross sales in 2023. In terms of operational milestones now, next slide, please, okay? So as I said, in sales, we booked PHP 5 billion in Gross Reserved Sales. We were able to again improve our conversion rate of these sales to 92% now, because of some of our -- because of our Vecino app and all the other innovations that we've been introducing and also a booking efficiency within 14 days. We've also been ramping up our foray into international sales to really tap the overseas Filipino market. In 2023, our sales from International sales went up to as much as 26%, whereas in the previous year, we just only had 12%. In Construction, we continuously look for new technologies, new innovations to improve our construction. So we've gotten into -- we've tapped this precast panel construction, which really reduces the duration and the quality of house construction. We've reduced turnaround time of house acceptance by 57%. And most important, in spite of increasing labor and construction costs throughout the year, we were able to maintain our construction cost budget and therefore, maintain our margins. In terms of collection, we recorded a record collection of PHP 3 billion, which is 16% higher than the previous year. So this is largely due to, again, new innovations like our RFTO Database and Gaviti. And in terms of customer service, we're really proud to say that we're improving our customer service as we continue to digitize that part of our business. We maintained a full year customer satisfaction score of 81%. Faster response and resolution times, 50% above SLA targets. And we've launched the digitized property management service via the Vecino Properties. Next slide, please. So in 2023, we continue to garner a lot of awards from various awards giving bodies in recognition of the quality, and the quality of our projects in the different parts of the Philippines. Okay. Next slide, please. So in terms of new launch, just last year, we only launched 2. We launched Priveya Hills, which is an existing project, but this was a new phase in Priveya Hills in Mandaue. So it sold very well. We sold nearly 50% in a matter of 3 months, so almost [ 900 million ] in gross reservations. We also launched The Strides, which is a medium-rise -- it's 3 buildings, 3 condos, all medium raise in the villages at Lipa, which is straight across the LIMA Estate. So we launched it late last year, and we've already sold 50% of the first building, and we're going to be launching the second building this year. Next slide. So AboitizLand will continue to do what it's been doing all these past years. We will continue to harvest the existing inventory of our projects and really try to finish off. We will maximize group landbank. There's a lot of landbank within the different Aboitiz companies. So we have been past to really try to maximize value from all of these different lands. And also last year, we had a 50-50 joint venture in a co-living business called Point Blue, but this middle of last year, we decided to buy out our partner. So we are now in full control and operations of our business called Point Blue, which is mostly located in BGC and in Makati. Okay. Next. So in summary, key takeaways. So I said AboitizLand has continued to, in 2023, met its key operational and financial metrics. Data-centric approach in sales and collections enabled the business surpassed prior year performance, while innovations in construction and customer service lead to reduced turnaround time that increase overall operational efficiency. AboitizLand has earned accolades as one of the best employer in Asia, and we're developing exceptional projects in the country. In 2024, AboitizLand will focus on harvesting from its current resources to achieve sustainable financial growth. And lastly, AboitizLand maintains a cautiously optimistic stance towards the future growth of the business and the real estate sector.

Thank you so much, Dave. For Aboitiz InfraCapital, may we call on Ms. Cosette Canilao.

Hi. Good afternoon, everyone, and thank you for joining us in today's briefing. I am pleased to report that 2023 marked a significant milestone for Aboitiz InfraCapital as the company exhibited significant growth in all Major key performance indicators, including revenue, EBITDA, net income after tax and beneficial CapEx. This success can be attributed to the strategic investments in both new and existing assets, supported by robust performance in our 4 key sectors, namely Economic Estates, Airports, Water and Digital Infrastructure. In Economic Estates, we are recognized as Asia's top developer of smart industrial mixed-use developments, attracting both local and foreign businesses and generating meaningful job opportunities within a complete infrastructure ecosystem. In Airports, Mactan-Cebu International Airport recorded its strongest post-pandemic rebound yet as it offered more flights to cater to the increasing demand of domestic and international travelers. In Water, we're proud of the much awaited completion of our mega infrastructure bulk water project last year. In Digital Infrastructure, we have expanded our presence in the tower industry through the nationwide development and operation of telco powers to boost connectivity. Now let's go into the AIC's financial performance. Please note that the figures displayed on the left side of the screen represent the contribution of AIC to AEV, while those on the right reflect the full performance of each of our core business units. Distinction is intended to provide you with a clear understanding of the scale of our operations and the critical drivers of AIC's growth. Aboitiz InfraCapital recorded total revenue of PHP 6.7 billion for the fiscal year, marking a significant 46% increase from the previous year. This growth was driven by income generated across all 4 sectors, notably boosted by AIC 's acquisition of Mactan-Cebu International Airport. Our Economic Estate business demonstrated exceptional performance in 2023, achieving revenues of PHP 5.7 billion through robust industrial and commercial sales. Furthermore, our airports business significantly contributed to our revenue growth. This year -- last year marked MCIA's initial full year as part of the AIC Group, generating $3.6 billion. We expect our other 2 sectors to contribute more in the coming years, especially with Apo Agua's full commercial operations and Unity Digital's goal to double its scale and expand its footprint. Focusing on EBITDA, AIC delivered a total of PHP 3 billion to the Aboitiz Group last year, reflecting a notable 43% growth from the previous year. This growth was primarily fueled by the 2 sectors, Economic Estates and Airports, which generated PHP 2.7 billion and PHP 2.1 billion, respectively. Additionally, the sector's EBITDA performance was reinforced by cost optimization and efficiency enhancement across all sectors. Transitioning to our net income after tax or NIAT. We are proud to announce that AIC has surpassed the PHP 2 billion mark for the first time, driven mainly by the remarkable performance of our Economic State and Airport sectors. Looking ahead, we anticipate continued growth and substantial returns from our investments as we focus on optimizing our assets and seizing more commercial opportunities across all our 4 business verticals this year. Heading now quickly to each of our business sectors performance milestones. Through strategic expansion, smart and sustainability initiatives and the introduction of enhanced offerings AIC's economic estates has successfully positioned itself as a preferred partner for our businesses seeking complete integrated infrastructure solutions. As of end of last year, our Economic Estates [ boasts ] an impressive portfolio of over 1,600 hectares with more than 200 locators nationwide. It also helps stimulate local employment with over 100,000 jobs generated. Moreover, it successfully launched 2 key initiatives in our LIMA Estates in Batangas. These are the Pods at LIMA, a 600-bed dormitory exclusively built for our locator employees and the Red Link Shuttle services hub providing sustainable and efficient transport around the Estates. These initiatives are aimed at enhancing the living experience and address the housing concerns of the employees of our locators. Our new Tari estate in Tarlac will soon add 200 hectares to our portfolio, further expanding AIC's economic asset nationwide footprint. In the Airport sector, MCIA experienced a significant rebound in passenger traffic last year, with a total passenger count surging to PHP 10 million or 81% growth versus 2022 levels. This is attributed to the expansion of domestic and international destinations, totaling over 30 destinations served by more than 20 airlines. New direct flights to Hong Kong and Singapore launched last October 2023 also contributed to this uptick. With regard to the other regional airports, negotiations have been completed for Laguindingan Airport, and AIC is looking forward to rehabilitating and improving said airport. For Bohol-Panglao International Airport negotiations are ongoing and we expect it to be finished by the end of the year. For our Water business, Apo Agua officially commenced full operations in February of this year. This is now the country's largest operating bulk water supply facility with a water treatment capacity of over 300 MLD. LIMA Water has -- on the other hand, LIMA Water has successfully reduced its non-revenue water across all Economic Estates and has been recognized for its efforts in enhancing water efficiency management. We expect our Water business to become a major contributor to AIC's continued growth in the years to come as it is actively under look out for M&As and JV opportunities to expand its portfolio. Lastly, Unity Digital continues to strengthen its presence in the Digital Infrastructure space as we welcome the new year with over 1,000 sites. The company has been actively deploying Build-to-Suit tower sites to complement the towers we acquired through successful Sale and Lease Back deals with PLDT-Smart and Globe. Moving forward, Unity Digital will prioritize driving co-location across its towers to enhance digital connectivity nationwide. In 2023, we achieved notable recognition as a leading infrastructure developer and operator in the country. We received multiple awards across the region. These include Leading Infrastructure Development Company at the World Business Outlook Awards and the Circle of Excellence - Sustainability Company of the Year at the Asia CEO Awards for the holding company. Our Economic States was recognized for the third consecutive year as the Best Industrial Developer and Best Industrial Development in Asia at the PropertyGuru Asia Property Awards. MCIA also became the first and only airport in the country to receive the Airport Customer Experience Accreditation from the Airport Council International in recognition of its excellent customer experience, management and practices. In addition to our strong financial performance, we are pleased to report that AIC and its business units actively pursued various CSR and sustainability initiatives last year, aimed at creating positive impact within the communities where we operate. This includes providing free Data Annotation training for women to prepare them for remote online work opportunities under our partnership with Connected Women as well as a Labor Program in our Estates that seek to train and link qualified job seekers to our partner locators. Noteworthy sustainability initiatives of our business units include securing BERDE Stage 1 5-Star Certification for our LIMA Tower One development. The solar panel project in one of LIMA Water's treatment facilities and Apo Agua's rehabilitation of the Panigan Tamugan watershed to help protect Davao City's future water source. In summary, 2023 proved to be truly exciting and fruitful year for Aboitiz InfraCapital as we successfully achieved the goals we had set for ourselves. As we move forward, we will focus on enhancing and optimizing our current assets across all sectors, driving growth by pursuing viable commercial prospects and leveraging synergies to provide enhanced value to our stakeholders. Our Economic Estates business is positioned for continuous growth and transformation. It continues to lay the foundation for an infrastructure ecosystem with the launch of new projects within our existing and upcoming assets as well as enhancing our service offerings. For Airports, we hold a strong sense of optimism regarding its growth trajectory, particularly as passenger traffic at MCIA is nearing pre-pandemic levels. Today, AIC has complete takeover of MCIA. By the last quarter of this year, we are committed to enhancing service quality and setting benchmarks for airports nationwide. For Water, Apo Agua will be increasing its production capacity and will continue to provide Davaoenos with safe and reliable water while our Estate water business will expand its facilities and introduce ancillary services. We recognize that prioritizing the exploration of new business opportunities is key to support the future growth in this sector. Finally, for Digital Infra, Unity plans to further expand its scale and strengthen its base with a strategic mix of built and acquired assets with a focus on promoting co-location. That concludes my presentation. Thank you so much for listening to me.

Thank you very much, Cosette. And now to present AEV's consolidated financials as well as discuss the acquisition of CCBPI, may we call on Mr. Toto Hilado.

Good afternoon, everyone. Thank you for joining us today. Let me now summarize the performance of AEV Group. 2023 was a remarkable year for the Aboitiz Group. Looking back, we can probably say that despite the ongoing global challenges, we have continued to adapt, innovate and collaborate, reaffirming our collective strength and determination to pursue our transformation. On top of completing our bulk water project and several renewable energy projects, 2023 mark our entry into the branded consumer foods segment through Coca-Cola Beverage Philippines, Inc. and into the tower leasing business through Unity Digital Infrastructure. We are maintaining our momentum in 2024. In the last few weeks, we completed our acquisition of Coke, commercially operated Apo Agua, and announced our foray into the LNG space. We remain enthusiastic for what lies ahead in 2024. Let me now go to our full year 2023 Earnings Results. Net income came in at PHP 23.5 billion or 2% lower year-on-year. Core net income, on the other hand, was higher by 8% driven by a 10% growth in EBITDA. Power and Financial Services [indiscernible] of AEV's consolidated net income after tax versus 89% in 2022. This is consistent with our long-term diversification strategy. Our balance sheet continues to be strong and supportive of our expansion pipeline. Consolidated net debt-to-equity improved to 0.7x as of December 2023 from 0.79x in December 2022 and our Parent-level net debt-to-equity remains low at 0.14x. The 10% year-on-year increase in our beneficial EBITDA for 2023 was mainly driven by the double-digit EBITDA growth of Aboitiz Power, Aboitiz Infra and AboitizLand, which more than offset the year-on-year decline in income of UnionBank. The 10% year-on-year growth in the Group's beneficial EBITDA in 2023 drove AEV's full year core net income 8% higher to PHP 22.1 billion. However, if we take into account non-recurring gains, mainly arising from FX revaluation of assets, net income was slightly lower by 2%. Non-recurring gains in 2022 reached PHP 3.5 billion compared to PHP 1.4 billion in 2023. Our balance sheet remains strong and poised for our future growth. Total assets increased by 2% to PHP 827 billion due to increased investments in Aboitiz Infra and our participation in UnionBank's SRO. Total liabilities remain flat at PHP 452 billion which resulted in the improvement of our solvency and leverage ratios. Consolidated currency ratio stands at 2.2x, while our net debt-to-equity slightly improved to 0.7x. Parent-level debt rose to PHP 42 billion in '23 from PHP 36.1 billion due to increased borrowings for our investments, including the Coke transaction, which financially closed last February '23. Despite this, the balance sheet remains under leverage at 0.14. For 2024, the Aboitiz Group, together with our partners, have allocated a total of PHP 153 billion in capital expenditures. This is more than double the PHP 65 billion we spent in 2023. PHP 73 billion of our total CapEx budget for this year is earmarked for Aboitiz Power while the Parent will spend another PHP 40 billion for the acquisition of 40% of Coke. Another PHP 26 billion is earmarked for Aboitiz Infra to fund its ongoing Power acquisitions and the development of its Economic Estates. The rest of the budget will be for Airports, further enhancement of UnionBank's Digital Infra, the completion of Food Group's capacity expansion projects and maintenance of other businesses. This figure does not include our investment in chromite gas. On March 5 of this year, AEV approved regular cash dividends in the amount of PHP 1.40 per share to all stockholders on record as of March '19. This is payable on March '26. The total dividend payable for 2024 amounts to PHP 7.9 billion, which is equivalent to and consistent with our practice of paying 1/3 of the company's previous year's net income. Based on the closing price of PHP 49 on the day, our dividend was announced, this translates to a dividend yield of 2.9%. As part of our diversification in the consumer sector, we are pleased to announce that AEV, in partnership with Coca-Cola Europacific Partners, or CCEP, has successfully completed the acquisition of Coca-Cola Beverages Philippines, Inc., or CCBPI, on February 23, 2024. AEV now probably owns 40% of CCBPI, the sole bottler and distributor of the Coca-Cola Company products in the Philippines. A shareholders' agreement between AEV and CCEP with comprehensive governance terms is now in effect, ensuring a smooth integration and collaboration between our two companies. Integrating CCBPI into our portfolio opens up numerous opportunities for the Aboitiz Group. Not only does this strengthen our position in the branded consumer goods sector and generate synergies across AEV's wide-ranging business interest in the country, but would also enhance AEV's future cash flows, further priming the group's balance sheet for further expansion over the long term. CCBPI operates in a large [ attractive ] non-alcoholic ready-to-drink or NARTD category, currently valued at around [ $8 billion ]. In 2023, CCBPI sold 655 million unit cases and grew its revenues by 13% year-on-year to approximately PHP 107 billion. I think it's the eighth largest market for Coke. This translated to operating profits of approximately PHP 7.5 billion in profit after taxes of almost PHP 5.5 billion. Given that the Philippines is the 13th largest country globally with solid GDP growth, a population of 115 million, with 1.5% population growth per year, a young population and fast-growing middle-class, CCBPI's long-term growth prospects remain much intact. Let me now close my presentation with a few key takeaways. Over the last 3 years, our acquisitions have positioned AEV strategically in high-growth segments in the Philippine economy, which not only offer attractive long-term returns but also enhance our internal synergies. In the near term, AEV will focus on optimizing the operations of Mactan Airport, CP's consumer business, Coke and [indiscernible] while continuing to improve the profitability of our existing subsidiaries. Heading to 2024, we are confident that we can generate more revenue from the synergies that we can derive as a [ technomenate ] with interest in power, banking, food, real estate, infrastructure and fast-moving consumer goods for the benefit of our shareholders and our contribution to nation building. Thank you for joining us here today, and thank you for your continued support. Have a pleasant evening.

Thank you so much. So while we set up for Q&A, we would like to request our audience to complete the satisfaction survey, which you may access via the QR code on screen. The QR code on your tables labeled AEV, or you may also manually complete the printed survey forms on the tables, which we will collect after this event. So may we request our presenters, William, Dave, Cosette and Toto to please come up the stage for Q&A. Okay. So now on to our Q&A. [Operator Instructions] Before you ask your question, we would like to request you to state your name and institution and the name of the person you would like to address your question to. Okay. So maybe we'll go first to our advanced questions. So this question is for Cosette. Given the Group's appetite on Airports, what is the outlook on domestic tourism for the Philippines?

Well, the domestic tourism will still -- I think there are some aircraft issues that the airlines are still experiencing. And -- but hopefully, that will be resolved in 2024. We're working on certain -- I think the domestic tourism would still be solid, but again, impacted by the issues on aircraft availability.

Thank you so much. So next question is for Dave. We have 2 questions on Land. So on the AboitizLand, what is the total value of launches in 2023? And is there a target for 2024?

As I mentioned earlier, we launched 2 projects, the one in Priveya North, which is in Mandaue. The value of that is about, I would say, roughly about PHP 2.5 billion. And then we also launched the first of 3 buildings, 3 mid-rise buildings in LIMA, in our villages at Lipa. And the value of that, I would say, is approximately maybe PHP 300 million, PHP 400 million.

Okay. The next question is related to sales. So can you talk about some of the data-centric innovations that AboitizLand has implemented in sales and collection? And in relation to that, what is the Group's strategy to further grow sales reservation for Aboitiz Land?