PSE Circular for Brokers No. 2019-99

August 13, 1999 PSE CIRCULAR FOR BROKERS NO. 2019-99 August 12, 1999 Securities & Exchange Commission Director Linda A. Daoang Money Market Department S.E.C. Building, EDSA Mandaluyong City Philippine Stock Exchange Disclosure Department Listing and Disclosure Group 4/F PSE Center, Exchange Road Ortigas Center, Pasig City SUBJECT : 1999 First Semester Performance Gentlemen : We are pleased to inform you of the unaudited consolidated financial performance of Ayala Corporation for the first semester of 1999, to wit: Ayala Corporation generated a consolidated net income of P3.11 Billion for the first semester of 1999. Factoring out one-time gains from the sale of Ayala Land shares in 1998, the Company's first half results reflected a growth of 7% compared to the same period last year. Among its subsidiaries and affiliates, Globe Telecom, Inc. and Pure Foods Corporation turned in strong performances and these companies' combined contributions accounted for 22% of the Group's net earnings. Globe Telecom posted a net income of P404 Million, a significant increase from last year's P5 Million for the same period. The rapid increase in the number of Globe's subscribers continued to generate more revenues for the Company. Globe Telecom expects continued strong growth in its postpaid and prepaid mobile subscriber base which totaled 462,552 as of June 30, 1999. Its fixed-line subscribers grew 62% year-on-year to 145,504 from 89,544 in the first half of 1998. As a consequence of the subscriber growth for both cellular and fixed-line businesses, more international calls were routed through Globe's international gateway facility, enabling Globe to register a 68% increase in international long-distance net operating revenues. Pure Foods Corporation, on the other hand, posted a consolidated net income of P500 Million, a reversal of its loss position for the same period last year. The Company's strong operating performance was sustained with the sales volume of its meats, flour and poultry businesses growing by an average of 20%. Ayala Land, Inc. posted a consolidated net income of P1.21 Billion for the period, 18% lower than the 1998 level. Land sales and lease income continued to drive revenues, accounting for more than half of the Company's total revenues. Despite increased competition, income from the Company's office-rental portfolio continued to be stable as its buildings' average occupancy rates remained at a high 96%. The sale of residential lots at Westgrove and Ayala Heights and industrial lots at Laguna Technopark generated P896 Million in revenues. Bank of the Philippine Islands recorded P2.4 Billion in consolidated net income, slightly lower than last year's P2.8 Billion. Interest income amounted to P4.9 Billion as interest rates dropped and demand for loans remained soft. Nonetheless, the improvement in loan demand was evident in May when its loan portfolio increased by P3 Billion to P98.4 Billion. Non-performing loans remained in check with the NPL ratio at 6.4%. The bank's total resources increased to P217.7 Billion and was driven by growth in deposits to P173 Billion. Ayala Corporation continues to see emerging opportunities in the local business environment. Its ability to tap opportunities is backed by the Company's financial strength and the solid performance of its business lines. The foregoing is submitted in compliance with the rules of the SEC and the PSE. Very truly yours, (SGD.) RUFINO LUIS T. MANOTOK Managing Director & Head, Strategic Planning Group