D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — H1 2023 Earnings Presentation
29 slides from D.m. Wenceslao & Associates's earnings presentation, Aug 15, 2023
Slide 1: 1H 2023 Analysts' Briefing
1H 2023 Analysts’ Briefing August 15, 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 8% from 2022-2025 change in % to new 15,167,000 sq.m. Location end of 2022 end of 2025 % change 2023 – 2025 supply sq.m. supply 200K average: 492,300 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 2023F – 2025F supply average: 6,940 units Location units supply 172,000 units Alaban
Slide 6: Valuation of Assets in Aseana
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 5 23 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of June 30, 2023
Updated summary of land holdings in Aseana City as of June 30, 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 Leased
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% Php2.3 Billion Net Cash Position >Php230 Billi
Slide 9: Development Pipeline
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 8 23 Sustainability
Slide 10: Commercial Pipeline Milestones: PARQAL Construction Progress
Commercial Pipeline Milestones: PARQAL Construction Progress 94% 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 64% 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: 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 16: Operating and Financial Highlights
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 15 23 Sustainability
Slide 17: 1H2023 Net Income Reaches ₱913 Million
1H2023 Net Income Reaches ₱913 Million PHP 1H2023 1H2022 Change Rentals Land P 596,685,906 P 488,099,100 +22% Building 419,832,406 398,737,226 +5% Other revenues 155,465,397 219,669,159 -29% 1,171,983,709 1,106,505,485 +6% Land Sales - 787,600,000 N/A P2.0 billion Sale of condominium units 703,559,3
Slide 18: In Focus: Leasing
In Focus: Leasing P1.2B 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 19: Robust Leasing Activities
Robust Leasing Activities Recurring Income Contribution(1) (%) Total Leased Land Area (sq.m.) Total recurring revenues 166,015 174,102 158,079 150,444 21% 30% 17% 21% 9% 7% 1H2022 1H2023 % to Total Revenues 47% 58% Land (PHP mm) 488 597 Building 399 420 2020 2021 2022 1H2023 Other Revenues 220 155 T
Slide 20: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P704M total revenues We are complementing the speed of development in the area with 2020 27% Accounted for 35% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2021 18% accounts that met
Slide 21: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 76% 77% 72% 68% 62% 65% 56% 3,245 2,486 2,728 2,845 2,071 1,707 1,362 1,123 2020 2021 2022 1H2023 2020 2021 2022 1H2023 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attribu
Slide 22: 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 1H2023 2020 2021 2022 1H2023 Current Ratio(3) (x) Asset to Equity(4) (x) 1.7x 1.6x 1.5x 1.5x 1.5x 1.5x 1.5x 1.5x 2020 2021 2022 1H2023 2020 2021 2022 1H2023 Notes:
Slide 23: Summary and Outlook
Summary and Outlook 1H2023 Summary 2023 Outlook • Consolidated revenues amounted to ₱2.0 billion and net • The over 70,000sqm Parqal, which will open in 2023, will income reached ₱913 million driven by a substantial increase provide fresh recurring earnings contribution. in residential earnings and
Slide 24: Sustainability
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 23 23 Sustainability
Slide 25: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 24
Slide 26: 88th Percentile Rank or Top 12%
Corporate Sustainability Assessment 88th Percentile Rank or Top 12% Among a global universe of S&P-assessed real estate companies as of February 2023 25
Slide 27: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 26
Slide 28: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1H2023 1H2022 Change Rentals Land P 596,685,906 P 488,099,100 +22% Building 419,832,406 398,737,226 +5% Other revenues 155,465,397 219,669,159 -29% 1,171,983,709 1,106,505,485 +6% Land sales - 787,600,000 N/A Sale of condominium units 703,559,3
Slide 29: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1H2023 2022 Current Assets 14,440,461,397 13,572,337,229 Non-current Assets 25,915,718,385 25,072,195,711 Total Assets 40,356,179,782 38,644,532,940 Current Liabilities 9,367,762,655 8,302,500,868 Non-current Liabilities 4,145,027,723 4,168
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