D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — H1 2022 Earnings Presentation
38 slides from D.m. Wenceslao & Associates's earnings presentation, Aug 12, 2022
Slide 1: 1H 2022 Analysts' Briefing
1H 2022 Analysts’ Briefing August 12, 2022 0
Slide 2: Disclaimer
Disclaimer The information in this document has been prepared by D.M. Wenceslao & Associates, Incorporated (“DMW”) and does not constitute a recommendation regarding the securities of DMW. The statements contained in this document speak only as at the date as of which they are made, and DMW expressl
Slide 3: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 2 32 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2021 and 2024 Manila Bay Future Office Supply to grow by 16% from 2021-2024 change in % to new 2022 – 2024 supply 14,985,099 sq.m. Location end of 2021 end of 2024 % change 300K sq.m. supply average: 681,000 sq.m. Others, 5%
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end 2021 and 2024 Bay Area to Account for 57% of New Supply from 2022-2024 change in % to new end of 2021 end of 2024 % change Location units supply 2022F – 2024F supply average: 8,070 units 166,390 units Alabang 4,880
Slide 6: High Vaccination Rate Cushions Impact of Rising COVID Cases to PH's Healthcare Capacity
High Vaccination Rate Cushions Impact of Rising COVID Cases to PH's Healthcare Capacity Vaccines Administered First dose Second dose Booster dose % of population: in mn Fully Vaccinated: 66% 180.00 Booster Dose: 15% PH average daily new cases rising to ~3,000 but still well below peak of over 39,000
Slide 7: NCR and Other Key Areas Transitioned to Alert Level 1 since March 1
NCR and Other Key Areas Transitioned to Alert Level 1 since March 1 Alert Level 1 Alert Level 2 Alert Level 3 Alert Level 4 Alert Level 5 Age All ages allowed, All ages allowed, All ages allowed, Below 18 years old and Below 18 years old and subject to LGU Rules subject to LGU Rules subject to LGU R
Slide 8: Valuation of Assets in Aseana
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 7 32 Sustainability
Slide 9: Updated summary of land holdings in Aseana City as of June 30, 2022
Updated summary of land holdings in Aseana City as of June 30, 2022 Remaining Land Reserves (287,968 sq.m.) Land Used/Allocated for Development Land Allocated (276,050 sq.m.) for Future Sales (4,218 sq.m.) Completed Properties Land Allocated for (36,659 sq.m.) Future Leases (4,532 sq.m.) Land Holdin
Slide 10: Value of properties inside of Aseana City as of December 31, 2021
Value of properties inside of Aseana City as of December 31, 2021 Owned Land Holdings Completed Properties(1) Pipeline Properties Land area (sq.m.) Total leasable/saleable floor area (sq.m.) Leasable/saleable floor area (sq.m.) Roads and right of way Land currently Aseana One One Parq 18,368 leased
Slide 11: Development Pipeline
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 10 32 Sustainability
Slide 12: Commercial Pipeline Milestones: PARQAL
Commercial Pipeline Milestones: PARQAL Construction Progress 75% 11
Slide 13: Hypergrowth Stage: Massive New and Upcoming Completions
Hypergrowth Stage: Massive New and Upcoming Completions Total Building Leasable Floor Area (sq.m.) +70,148 sqms +71,639 sqms 232,499 162,351 89,914 90,712 2019A 2020A 2021A 2022F 8912 Asean Ave Parqal 58 Jupiter 12
Slide 14: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 38% 13
Slide 15: Pipeline of Premier Assets
Pipeline of Premier Assets Aseana Plaza (formerly Aseana Five and Six) Commercial Leasing • After Parqal, close to ~200,000sqms of Gross Leasable Area will be added to our portfolio in the medium term with the planned completions of 1) Aseana Plaza and 2) Aseana Mainstreet 2. One Parq Suites Residen
Slide 16: Notable Recent Transactions in 1H2022
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 15 32 Sustainability
Slide 17: January 2022 Land Sale
January 2022 Land Sale Block 3, Lot 4-D-2 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 16
Slide 18: Land Sales Crystallize Value of Assets
Land Sales Crystallize Value of Assets Prices of sold land per sq.m. (PHP’000) 3.5x +4% 440 425 Value of reclaimed land in 2006 Actual DMW Land Sale Transactions 250 185 125 31.5 2006* 2015 2016 2017 2019 2021/1Q2022 Pre-Pandemic COVID Pandemic 17
Slide 19: D.M. Wenceslao Signs Contract of Lease with St. Luke's Medical Center
D.M. Wenceslao Signs Contract of Lease with St. Luke’s Medical Center Higher of Fixed Rate or Percentage of Sales Land Lease Scheme 13,896 50 Years Square Meters Lease Term 18
Slide 20: Operating and Financial Highlights
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 19 32 Sustainability
Slide 21: 1H2022 Net Income Jumps 56% YoY to ₱1.3 billion
1H2022 Net Income Jumps 56% YoY to ₱1.3 billion PHP 1H2022 1H2021 Change Rentals Land P 488,099,100 P 493,423,860 -1% Building 398,737,226 389,076,298 +2% Other revenues 219,669,159 91,499,141 +140% 1,106,505,485 973,999,299 +14% Land Sales 787,600,000 - N/A P2.36 billion Sale of condominium units 4
Slide 22: In focus: Leasing
In focus: Leasing P1.11B Land We pay particular attention to recurring income sources to provide our lease with Ayala us with higher earnings visibility. We primarily target traditional Land provides for a companies, including logistics, BPOs, and gaming and tourism-related minimum guaranteed rent o
Slide 23: Robust leasing activity reflects high level of sustainability
Robust leasing activity reflects high level of sustainability Recurring Income Contribution(1) (%) Total Leasable Floor Area (sq.m.) Total recurring revenues 162,351 162,351 21% 40% 17% 89,914 90,712 31% 7% 9% 1H2021 1H2022 % to Total Revenues 78% 47% Land (PHP mm) 493 488 2019 2020 2021 1H2022 Buil
Slide 24: In focus: Residential
In focus: Residential Residential sales % to Revenue contribution P466.2M total revenues We are complementing the speed of development in the area with 2019 16% Accounted for 20% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2020 27% accounts that m
Slide 25: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 80% 83% 82% 76% 72% 72% 65% 62% 2,819 2,845 2,271 2,486 2,071 1,934 1,707 1,690 2019 2020 2021 1H2022 2019 2020 2021 1H2021 Gross Profit Gross Profit Margin Operating Profit Operating
Slide 26: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 12% 12% 14% 10% 13% 9% 6% 3% 2019 2020 2021 1H2022 2019 2020 2021 1H2022 Current Ratio(3) (x) Asset to Equity(4) (x) 1.67x 1.74x 1.61x 1.47x 1.56x 1.51x 1.57x 1.53x 2019 2020 2021 1H2022 2019 2020 2021 1H202
Slide 27: Progress Report on Use of proceeds
Progress Report on Use of proceeds Pixel Residences P286M 8912 Asean Ave. P2.4B Parqal P2.4B MidPark Towers P540M Aseana Plaza P113M 26
Slide 28: Summary: 1H 2022 highlights
Summary: 1H 2022 highlights 1H 2022 Summary FY 2022 Outlook • Consolidated revenues amounted to ₱2.4 billion and net • The newly completed 69,000sqm GLA 8912 Asean Ave and income reached ₱1.3 billion, 56% higher YoY. Core net income the over 2,000sqm GLA 58 Jupiter are expected to post to parent gre
Slide 29: COVID-19 Response
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 28 32 Sustainability
Slide 30: DMWAI's Response to the COVID-19 Pandemic
DMWAI’s Response to the COVID-19 Pandemic Supporting our Business Partners Expanding Reach to Clients: through these Trying Times Adopting to the New Normal ✓ More market-friendly terms such as no escalation ✓ Monthly virtual presentations and webinars via and lower rates were introduced to our smal
Slide 31: Employee Vaccination Program
Employee Vaccination Program 30
Slide 32: Safety Seal – Certified Mixed Use and Office Buildings
Safety Seal – Certified Mixed Use and Office Buildings 31
Slide 33: Sustainability
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 1H2022 19 Operating and Financial Highlights 28 COVID-19 Response 32 32 Sustainability
Slide 34: DM Wenceslao's Five Pillars of Sustainability
DM Wenceslao’s Five Pillars of Sustainability 33
Slide 35: Corporate Sustainability Assessment Percentile Rank
Corporate Sustainability Assessment As of March 2022, DMW 73% performed in the top third in the Real Estate Industry of S&P Global Corporate Percentile Rank Sustainability Assessment. (100 being the highest) 34
Slide 36: Q&A
Q&A www.dmwai.com www.aseanacity.com 35 iro@dmwai.com 35
Slide 37: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1H2022 1H2021 Change (%) Rentals Land P 488,099,100 P 493,423,860 -1% Building 398,737,226 389,076,298 +2% Other revenues 219,669,159 91,499,141 +140% 1,106,505,485 973,999,299 +14% Land sales 787,600,000 - N/A Sale of condominium units 466,242
Slide 38: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1H2022 2021 Current Assets 14,226,927,581 14,049,443,598 Non-current Assets 23,609,523,497 22,934,039,805 Total Assets P 37,836,451,078 P 36,983,483,403 Current Liabilities 8,155,349,245 8,407,529,857 Non-current Liabilities 4,319,801,444 4
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