AUDITED FINANCIAL STATEMENTS

1 *SGVFSM005262*C O V E R S H E E TforAUDITED FINANCIAL STATEMENTSSEC Registration Number152747C O M P A N Y N A M EAYALALAND, OFFICE( No. / Street / Barangay / City / Town / Province )31stFloor,TowerOneandExchangePlaza,Ayal aTriangle,AyalaAvenue,MakatiCityForm TypeDepartment requiring the report Secondary License Type, If ApplicableAAFSC O M P A N Y I N F O R M A T I O NCompany s Email AddressCompany s Telephone NumberMobile 908-3677No. of StockholdersAnnual meeting (Month / Day)Fiscal Year (Month / Day)11,86204/2212/31 CONTACT PERSON INFORMATIONThe designated contact personMUST be an Officer of the CorporationName of Contact PersonEmail AddressTelephone Number/sMobile NumberMa. Luisa D. 908-3681 CONTACT PERSON s ADDRESS30th Floor, Tower One and Exchange Plaza, Ayala Triangle, Ayala Avenue, Makati CityNOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission withinthirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person : All Boxes must be properly and completely filled-up.

2 Failure to do so shall cause the delay in updating the corporation s records with the Commissionand/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.*SGVFSM005262*INDEPENDENT AUDITOR S REPORTThe Stockholders and the Board of DirectorsAyala Land, Floor, Tower One and Exchange Plaza, Ayala TriangleAyala Avenue, Makati CityOpinionWe have AUDITED the accompanying consolidated FINANCIAL STATEMENTS of Ayala Land, Inc. and its subsidiaries(the Group), which comprise the consolidated STATEMENTS of FINANCIAL position as at December 31, 2020 and2019, and the consolidated STATEMENTS of income, consolidated STATEMENTS of comprehensive income,consolidated STATEMENTS of changes in equity and consolidated STATEMENTS of cash flows for each of the threeyears in the period ended December 31, 2020, and notes to the consolidated FINANCIAL STATEMENTS , including asummary of significant accounting our opinion, the accompanying consolidated FINANCIAL STATEMENTS present fairly, in all material respects, theconsolidated FINANCIAL position of the Group as at December 31, 2020 and 2019, and its consolidated financialperformance and its consolidated cash flows for each of the three years in the period endedDecember 31.

3 2020 in accordance with Philippine FINANCIAL Reporting Standards (PFRSs).Basis for OpinionWe conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our responsibilitiesunder those standards are further described in theAuditor s Responsibilities for the Audit of the ConsolidatedFinancial STATEMENTS section of our report. We are independent of the Group in accordance with the Code ofEthics for Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirementsthat are relevant to our audit of the consolidated FINANCIAL STATEMENTS in the Philippines, and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe consolidated FINANCIAL STATEMENTS of the current period.

4 These matters were addressed in the context ofour audit of the consolidated FINANCIAL STATEMENTS as a whole, and in forming our opinion thereon, and we donot provide a separate opinion on these matters. For each matter below, our description of how our auditaddressed the matter is provided in that have fulfilled the responsibilities described in theAuditor s Responsibilities for the Audit of the ConsolidatedFinancial Statementssection of our report, including in relation to these matters. Accordingly, our auditincluded the performance of procedures designed to respond to our assessment of the risks of materialmisstatement of the consolidated FINANCIAL STATEMENTS . The results of our audit procedures, including theprocedures performed to address the matters below, provide the basis for our audit opinion on theaccompanying consolidated FINANCIAL Gorres Velayo & Ayala Avenue1226 Makati CityPhilippines Tel: (632) 8891 0307 Fax: (632) 8819 BOA/PRC Reg.

5 No. 0001, October 4, 2018, valid until August 24, 2021 SEC Accreditation No. 0012-FR-5 (Group A),November6, 2018, valid until November5, 2021A member firm of Ernst & Young Global Limited*SGVFSM005262*- 2 -Real Estate Revenue RecognitionThe Group s revenue recognition process, policies and procedures are significant to our audit because theseinvolve application of significant judgment and estimation: (1) assessment of the probability that the entity willcollect the consideration from the buyer; (2) application of the output method as the measure of progress indetermining real estate revenue; (3) determination of the actual costs incurred as cost of sales; and (4)recognition of cost to obtain a evaluating whether collectability of the amount of consideration is probable, the Group considers thesignificance of the buyer s initial payments (buyer s equity) in relation to the total contract price.

6 Collectability isalso assessed by considering factors such as past history with buyers, age of residential and officedevelopment receivables and pricing of the property. Management regularly evaluates the historical salescancellations and back-outs, after considering the impact of coronavirus pandemic, if it would still support itscurrent threshold of buyers equity before commencing revenue measuring the progress of its performance obligation over time, the Group uses the output method. Thismethod measures progress based on physical proportion of work done on the real estate project which requirestechnical determination by the Group s specialists (project engineers). This is based on the monthly projectaccomplishment report prepared by the third party surveyor as approved by the construction manager whichintegrates the surveys of performance to date of the construction activities for both sub-contracted and thosethat are fulfilled by the Group determining the actual costs incurred to be recognized as cost of sales, the Group estimates costs incurredon materials, labor and overhead which have not yet been billed by the Group identifies sales commission after contract inception as the cost of obtaining the contract.

7 Forcontracts which qualified for revenue recognition, the Group capitalizes the total sales commission due to salesagent as cost to obtain contract and recognizes the related commission payable. The Group uses percentageof completion (POC) method in amortizing sales commission consistent with the Group s revenue disclosures related to real estate revenue are included in Notes 2 and 3 to the consolidated ResponseWe obtained an understanding of the Group s revenue recognition the buyers equity, we evaluated management s basis of the buyer s equity by comparing this to thehistorical analysis of sales cancellations from buyers with accumulated payments above the collectionthreshold. We also considered the impact of the coronavirus pandemic to the level of cancellations during theyear. We traced the analysis to supporting documents such as deed of the application of the output method, in determining real estate revenue, we obtained an understanding ofthe Group s processes for determining the POC, and performed tests of the relevant controls.

8 We obtained thecertified POC reports prepared by the project engineers and assessed their competence and objectivity byreference to their qualifications, experience and reporting responsibilities. For selected projects, we conductedocular inspections, made relevant inquiries, including inquiries on how the coronavirus pandemic affected thePOC during the period and obtained the supporting details of POC reports showing the completion of the majoractivities of project member firm of Ernst & Young Global Limited*SGVFSM005262*- 3 -For the cost of sales, we obtained an understanding of the Group s cost accumulation process and performedtests of the relevant controls. For selected projects, we traced costs accumulated, including those incurred butnot yet billed costs, to supporting documents such as invoices and accomplishment reports from thecontractors and official the recognition of cost to obtain a contract, we obtained an understanding of the sales commissionprocess.

9 For selected contracts, we agreed the basis for calculating the sales commission capitalized and theportion recognized in profit or loss, particularly: (a) the percentage of commission due against contracts withsales agents, (b) the total commissionable amount ( , net contract price) against the related contract to sell,and, (c) the POC against the POC used in recognizing the related revenue from real estate for Lease ConcessionsIn line with the rental relief framework implemented by the government to support businesses and the broadereconomy due to the impact of Covid-19, the Group waived its right to collect rent and other charges as part ofvarious lease concessions it granted to lessees such as lease payment holidays or lease payment Group assessed that the lease concessions it granted to lessees do not qualify as lease modificationssince the terms and conditions under the corresponding lease contracts have not been modified by the Group accounted for the lease concessions in the form of negative variable rent which the Group recordedwhen the concession is granted regardless of the period to which the concession pertains.

10 The Group saccounting for lease concession under PFRS 16 is significant to our audit because there were numerous leaseconcessions granted to lessees during the period; the recorded amounts are material to the consolidatedfinancial STATEMENTS ; and accounting for lease concession involves the application of significant judgment indetermining whether or not the lease concession is a lease disclosures related to the lease concession granted by the Group are included in Notes 3 and 33 to theconsolidated FINANCIAL ResponseWe determined the population of lease contracts and obtained an understanding of the type, extent andperiods covered under the various lease concessions granted by the Group to the lessees during the a sample basis, we tested the population of lease agreements covered by the lease concessions bycomparing the lease contracts under the operations report against lease contract database which includecontract number, contract name, contract type and rental rate, among a test basis.