D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Q1 2023 Earnings Presentation
30 slides from D.m. Wenceslao & Associates's earnings presentation, May 12, 2023
Slide 1: 1Q 2023 Analysts' Briefing
1Q 2023 Analysts’ Briefing May 12, 2023 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 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Operating and Financial Highlights 2 24 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2022 and 2025 Manila Bay Future Office Supply to increase by 7% from 2022-2025 change in % to new 15,256,300 sq.m. Location end of 2022 end of 2025 % change 2023 – 2025 supply sq.m. supply 300K average: 519,300 sq.m. Alabang,
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end 2022 and 2025 Bay Area to Account for almost half of New Supply from 2023-2025 change in % of new end of 2022 end of 2025 % change 2022F – 2024F supply average: 6,860 units Location units supply 171,760 units Alaban
Slide 6: Agenda: Valuation of Assets in Aseana
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Operating and Financial Highlights 5 24 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of March 31, 2023
Updated summary of land holdings in Aseana City as of March 31, 2023 Land Used/Allocated for Development Remaining Land Reserves (284,137 sq.m.) (279,881 sq.m.) Completed Land Allocated Properties for Future Sales (36,659 sq.m.) (4,218 sq.m.) Land Allocated for Future Leases (4,532 sq.m.) Land Lease
Slide 8: Value of DMW's Aseana City Assets as of December 31, 2022
Value of DMW’s Aseana City Assets as of December 31, 2022 Collier’s Valuation of DMW’s Aseana City Assets (PHP mm) PHP227 Billion Colliers’ Valuation of DMW’s Assets in Aseana Completed and Pipeline properties Land currently leased 54,167 55,351 24% 24% Php2.2 Billion Net Cash Position >Php230 Billi
Slide 9: Agenda: Development Pipeline
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Operating and Financial Highlights 8 24 Sustainability
Slide 10: Commercial Pipeline Milestones: PARQAL Construction Progress
Commercial Pipeline Milestones: PARQAL Construction Progress 91% 9
Slide 11: Hypergrowth Stage: Massive New and Upcoming Completions
Hypergrowth Stage: Massive New and Upcoming Completions Total Building Leasable Floor Area (sq.m.) Office Retail and F&B 232,499 23% 162,351 162,351 15% 15% 90,712 77% 23% 85% 85% 77% 2020 2021 2022 2023F 8912 Asean Ave Parqal 58 Jupiter 10
Slide 12: Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 61% 11
Slide 13: 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 14: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 13
Slide 15: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 14
Slide 16: Aseana City Loop
Aseana City Loop Nias PIT + ASEANA CITY LOOP + WOR . NORTHBOUND ROUTE =9 SOUTHBOUND ROUTE PITx SM Mall of Asia Ayala Malls Manila Bay @ St. John Paul Il Chapel 8912 Asean Ave. ; » Parqal (Abueva Drive) Parqal (lmao Drive) * Pargal (Imao Drive) St. John Paull Il Chapel Nissanl(Bradcolave:) Nissan (Br
Slide 17: Agenda: Operating and Financial Highlights
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Operating and Financial Highlights 16 24 Sustainability
Slide 18: 1Q2023 Net Income Reaches ₱526 Million
1Q2023 Net Income Reaches ₱526 Million PHP 1Q2023 1Q2022 Change Rentals Land P 312,725,698 P 247,144,201 +27% Building 207,222,429 214,578,527 -3% Other revenues 80,931,640 98,621,873 -18% 600,879,767 560,344,601 +7% Land Sales - 787,600,000 -100% P1.1 billion Sale of condominium units 427,239,894 2
Slide 19: In Focus: Leasing
In Focus: Leasing P601M Land We pay particular attention to recurring income sources to provide our lease with Ayala Land provides for a us with higher earnings visibility. We primarily target traditional minimum guaranteed companies, including logistics, BPOs, and tourism-related businesses. rent o
Slide 20: Robust leasing activity reflects high level of sustainability
Robust leasing activity reflects high level of sustainability Recurring Income Contribution(1) (%) Total Leased Land Area (2) (sq.m.) Total recurring revenues 166,015 174,102 158,079 150,444 16% 29% 13% 19% 6% 7% 1Q2022 1Q2023 % to Total Revenues 35% 55% Land (PHP mm) 247 313 Building 215 207 2020 2
Slide 21: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P427M total revenues We are complementing the speed of development in the area with 2020 27% Accounted for 39% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2021 18% accounts that met
Slide 22: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 76% 77% 72% 70% 65% 62% 58% 3,245 2,486 2,728 2,845 2,071 1,707 764 641 2020 2021 2022 1Q2023 2020 2021 2022 1Q2023 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attributabl
Slide 23: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 10% 9% 9% 14% 8% 12% 12% 6% 2020 2021 2022 1Q2023 2020 2021 2022 1Q2023 Current Ratio(3) (x) Asset to Equity(4) (x) 1.7x 1.6x 1.6x 1.5x 1.5x 1.5x 1.5x 1.5x 2020 2021 2022 1Q2023 2020 2021 2022 1Q2023 Notes:
Slide 24: Summary and Outlook
Summary and Outlook 1Q2023 Summary 2023 Outlook • Consolidated revenues amounted to ₱1.1 billion and net • The over 70,000sqm Parqal, which will open in 2023, will income reached ₱526 million driven by a significant jump in provide fresh recurring earnings contribution. residential earnings and supp
Slide 25: Agenda: Sustainability
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Operating and Financial Highlights 24 24 Sustainability
Slide 26: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 25
Slide 27: Corporate Sustainability Assessment Percentile Rank
Corporate Sustainability Assessment As of February 2023, DMW 88% performed in the top quintile in the Real Estate Industry of S&P Global Corporate Percentile Rank Sustainability Assessment. (100 being the highest) 26
Slide 28: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 27
Slide 29: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1Q2023 1Q2022 Change Rentals Land 312,725,698 247,144,201 +27% Building 207,222,429 214,578,527 -3% Other revenues 80,931,640 98,621,873 -18% 600,879,767 560,344,601 +7% Land sales - 787,600,000 -100% Sale of condominium units 427,239,894 233,0
Slide 30: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1Q2023 2022 Current Assets 14,085,581,580 13,572,337,229 Non-current Assets 25,510,035,055 25,072,195,711 Total Assets 39,595,616,635 38,644,532,940 Current Liabilities 8,932,761,753 8,302,500,868 Non-current Liabilities 4,213,002,761 4,168
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