D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — 9M 2018 Earnings Presentation
26 slides from D.m. Wenceslao & Associates's earnings presentation, Nov 13, 2018
Slide 1: D.M. Wenceslao & Associates, Incorporated 9M 2018 Analyst Briefing
D.M. Wenceslao & Associates, Incorporated 9M 2018 Analyst Briefing 13 November 2018
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: Local and Global Developments Operating Performance Development Pipeline
Aseana City, our development project with total land area of 107.5 hectares located along the coastal waters of Manila Bay bordering the City of Pasay and the City of Parañaque 2 Local and Global Developments 6 Operating Performance 11 Development Pipeline 16 Financial Highlights 23 Summary Page 2
Slide 4: Local and Global Developments
Local and Global Developments US$/barrel Higher global oil prices US$ billion Lower market valuation 787 ASEAN markets by capitalization 100 800 713 $79.35 Dec-17 Sep-18 80 549 559 600 521 452 456 431 60 400 290 40 250 20 200 127 149 0 0 Singapore Vietnam Philippines Malaysia Thailand Indonesia Oct-
Slide 5: GDP and Inflation: A Historical Perspective
GDP and Inflation: A Historical Perspective % US$ Inflation Real GDP GDP per capita 22 3,000 18 2,500 14 2,000 10 1,500 6 1,000 2 500 -2 - Mar-86 Mar-91 Mar-96 Mar-01 Mar-06 Mar-11 Mar-16 Sep-88 Sep-93 Sep-98 Sep-03 Sep-08 Sep-13 Sep-18 Gross Domestic Product Consumer Price Index Average Average per
Slide 6: Measures Toward Inflation Control
Measures Toward Inflation Control Directives to boost food supply Suspension of second tranche of fuel taxes The Palace has issued Administrative Order No. 13 and Philippine economic managers have Memorandum Orders No. 26 to 28 to boost food supply recommended the suspension of the second Administra
Slide 7: Operating Performance
Public art between Red Planet Hotel and Aseana Two walkway 2 Local and Global Developments 6 Operating Performance 11 Development Pipeline 16 Financial Highlights 23 Summary Page 6
Slide 8: Updated Summary of Land Holdings in Aseana City
Updated Summary of Land Holdings in Aseana City Positioned as the next major mixed-use CBD in Metro Manila anchored by tourism, recreational developments and retail malls Remaining Land Reserves (313,415 sq.m.) Land Used/Allocated Land Allocated for for Development Future Sales (262,862 sq.m.) (10,0
Slide 9: Robust Leasing Activity
Robust Leasing Activity Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) 1,750 1,479 1,507 1,550 1,327 89,914 1,350 1,229 1,150 40% 950 31% 49% 39% 750 56,863 59,000 550 29% 45,432 350 16% 14% 19% 150 5% 11% 7% 6% -50 9M 2015 2016 2017 2018 % to Total Revenues 75% 61% 50% 83
Slide 10: Office Updates
Office Updates Commercial lease breakdown by property Existing completed developments Aseana Three, 37% ✓Aseana One and Two sign new leases at P950/sq.m., Aseana One, 23% 70% higher than the rates of the expiring contracts Aseana Two, 16% P558.2 million Aseana Town Center, 8% ✓Aseana Three secures P
Slide 11: Land Lease Updates
Land Lease Updates Land lease breakdown by tenant profile(1) Ayala Malls Bay Area Department stores, 79% ✓Phase 1 (Target opening in April 2019) Retail, 4% Automotive retail, 4% ✓Phase 2 (Ongoing civil and structural works) P721.6 million Education services, 3% ✓Landmark Manila Bay (Ongoing pile dri
Slide 12: Development Pipeline
Public art between Red Planet Hotel and Aseana Two walkway 2 Local and Global Developments 6 Operating Performance 11 Development Pipeline 16 Financial Highlights 23 Summary Page 11
Slide 13: Residential Updates
Residential Updates Pixel Residences ✓100% pre-sold as of June 2017 ✓Total saleable floor area: 13,106 sq.m. ✓Total leasable floor area: 622 sq.m. ✓28% completed with unrecognized revenue of P1,065 million as of Sep 30, 2018; 0% cancellation ✓Buyer profile: Middle to higher income Filipinos and Pixe
Slide 14: Pipeline Updates: Larger Footprint for Parqal
Pipeline Updates: Larger Footprint for Parqal Parqal (formerly Aseana Mainstreet 1) ✓Part of Aseana City’s greenway—a pedestrian park and promenade that stretches from Roxas Boulevard to Manila Bay ✓Revised leasable floor area to approximately 67,000 sq.m. from original estimate of 45,378 sq.m. ✓Mix
Slide 15: Other Ongoing Developments within Aseana City
Other Ongoing Developments within Aseana City 6 Offices 2 Residential condominiums 5 Mixed-use 2 Retail 2 Hotels 3 Underground Utilities and Roadworks Page 14
Slide 16: Transport Link Updates: PITX
Transport Link Updates: PITX Paranaque Integrated Terminal Exchange (PITX) formerly Southwest Integrated Bus Terminal Exchange (SWITex) ✓Inaugurated on Nov 5, 2018 ✓Urban transport terminal that links provincial buses from Cavite and Batangas to other in-city transport systems such as buses, taxis,
Slide 17: Financial Highlights
Aseana Three, a 15-story PEZA-accredited office building with total leasable floor area of 30,914 sq.m. Agenda 2 DMW at a Glance 9 Operating Performance 17 Financial Highlights 22 Summary 2 Local and Global Developments 6 Operating Performance 11 Development Pipeline 16 Financial Highlights 23 Summa
Slide 18: Deliberate Control Over Land Sales
Deliberate Control Over Land Sales PHP 9M 2018 9M 2017 Change (%) Rentals Land 721,594,865 685,157,775 5% Building 558,169,654 328,897,674 70% Other revenues 199,208,328 112,319,343 77% 1,478,972,847 1,126,374,792 31% P1,780.4 million Land sales 1,252,800 1,088,290,000 -100% Revenues Construction co
Slide 19: Superior Profitability Scorecard
Superior Profitability Scorecard Gross Profit (PHP mm) Operating Profit (PHP mm) 80% 77% 76% 75% 64% 62% 62% 59% 2,333 1,651 1,337 1,867 1,320 1,045 1,357 1,049 2015 2016 2017 9M 2018 2015 2016 2017 9M 2018 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm)
Slide 20: Low Leverage, High Financial Liquidity
Low Leverage, High Financial Liquidity Debt To Equity(1) (%) Return on Equity(2) (%) 18% 42% 16% 16% 15% 33% 26% 11% 2015 2016 2017 9M 2018 2015 2016 2017 9M 2018 Current Ratio(3) (x) Assets to Equity(4) (x) 3.13x 3.81x 3.34x 3.03x 1.72x 1.41x 1.55x 2.04x 2015 2016 2017 9M 2018 2015 2016 2017 9M 201
Slide 21: Use of Proceeds for Pipeline Project Development
Use of Proceeds for Pipeline Project Development Application of the Offering Proceeds Balance of the as of and for the Offering Proceeds Allocation of Quarter ended as of Offering Proceeds September 30, 2018 September 30, 2018 Pipeline project development ₱ 3,731,213,878 ₱ 449,821,429 ₱ 3,281,392,44
Slide 22: Consolidated Statements of Profit or Loss
Consolidated Statements of Profit or Loss PHP 1Q 2018 2Q 2018 3Q 2018 9M 2018 Rentals Land 242,901,942 239,291,039 239,401,884 721,594,865 Building 168,269,280 183,631,649 206,268,725 558,169,654 Other revenues 61,703,259 66,205,767 71,299,302 199,208,328 Recurring income 472,874,482 489,128,454 516
Slide 23: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position PHP Sep 30, 2018 Dec 31, 2017 Change (%) Current Assets 16,327,263,389 8,212,136,455 99% Non-current Assets 21,762,682,966 20,838,465,600 4% Total Assets 38,089,946,355 29,050,602,055 31% Current Liabilities 5,218,128,502 5,305,109,945 -2% Non-current Li
Slide 24: Summary
MidPark Towers, our second residential development with total saleable floor area of approximately 42,000 sq.m. and leasable floor area of 2,000 sq.m. 2 Local and Global Developments 6 Operating Performance 11 Development Pipeline 16 Financial Highlights 23 Summary Page 23
Slide 25: Summary: 9M 2018 Highlights
Summary: 9M 2018 Highlights Demonstrated scalability creates short and long term opportunities • Recurring income from rentals up 31% to • Total saleable area of approximately P1,479.0 million or 83% of total revenues 85,000 sq.m. and total leasable floor area of 290,000 sq.m. to be completed by 202
Slide 26: Q&A
Parqal, a low-rise mixed-use main street concept adjacent to a greenway Q&A www.dmwai.com iro@dmwai.com Page 25
D.M. Wenceslao & Associates — 9M 2018 Earnings Presentation on 6ix