D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — 9M 2022 Earnings Presentation
41 slides from D.m. Wenceslao & Associates's earnings presentation, Nov 15, 2022
Slide 1: 9M 2022 Analysts' Briefing
9M 2022 Analysts’ Briefing November 15, 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 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 2 32 Sustainability and Accolades
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 increase by 15% from 2021-2024 change in % to new 14,899,100 sq.m. Location end of 2021 end of 2024 % change 250K sq.m. supply 2022F 2023F 2024F 2022 – 2024 supply average: 652
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 Allows for Full Return to Normalcy
High Vaccination Rate Allows for Full Return to Normalcy Vaccines Administered First dose Second dose Booster dose in mn 180.00 160.00 PH average daily new cases at <2,000 well below peak of over 39,000 20 140.00 PH ICU Bed Occupancy remains low at 24% well-below peak of 79% 120.00 164mn doses admin
Slide 7: Normalization and Full Reopening of the Economy
Normalization and Full Reopening of the Economy NCR and Other Key Areas Transitioned to Alert Level 1 since March • Alert Level 1 allows for normalcy in most activities. • Age restrictions were lifted • Commercial developments and other establishments were allowed to operate at full capacity • Inter
Slide 8: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 7 32 Sustainability and Accolades
Slide 9: Updated summary of land holdings in Aseana City as of September 30, 2022
Updated summary of land holdings in Aseana City as of September 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 H
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: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 10 32 Sustainability and Accolades
Slide 12: Commercial Pipeline Milestones: PARQAL
Commercial Pipeline Milestones: PARQAL Construction Progress 84% 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 Office Retail and F&B 232,499 23% 162,351 15% 89,914 90,712 77% 23% 23% 85% 77% 77% 2019 2020 2021 2022F 8912 Asean Ave Parqal 58 Jupiter 12
Slide 14: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 44% 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: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 15 32 Sustainability and Accolades
Slide 17: January 2022 Land Sale Php787.6 million
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: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 19 32 Sustainability and Accolades
Slide 21: DMW's Chief Finance Officer
Benigno A. Tatunay DMW’s Chief Finance Officer • Prior to joining DMW, Mr. Tatunay served as CFO of a real estate company for over a decade • Held positions in treasury, accounting, and audit in various companies • Over two decades of combined real estate experience • Certified Public Accountant • P
Slide 22: 9M2022 Net Income Rises 39% YoY to ₱1.7 Billion
9M2022 Net Income Rises 39% YoY to ₱1.7 Billion PHP 9M2022 9M2021 Change Rentals Land P 736,434,707 P 731,508,943 +1% Building 580,810,712 592,933,562 -2% Other revenues 277,632,892 134,323,781 +107% 1,594,878,311 1,458,766,286 +9% Land Sales 787,600,000 - N/A P3.18 billion Sale of condominium units
Slide 23: In focus: Leasing
In focus: Leasing P1.59B 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
Slide 24: 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 166,015 158,079 158,079 150,444 23% 36% 18% 30% 7% 9% 9M2021 9M2022 % to Total Revenues 73% 50% Land (PHP mm) 732 736 Building 593 580 2019 2
Slide 25: In focus: Residential
In focus: Residential Residential sales % to Revenue contribution P801.1M total revenues We are complementing the speed of development in the area with 2019 16% Accounted for 25% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2020 27% accounts that m
Slide 26: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 80% 83% 79% 76% 72% 68% 65% 62% 2,819 2,845 2,271 2,486 2,510 2,177 2,071 1,707 2019 2020 2021 9M2022 2019 2020 2021 9M2022 Gross Profit Gross Profit Margin Operating Profit Operating
Slide 27: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 12% 14% 10% 13% 9% 9% 6% 3% 2019 2020 2021 9M2022 2019 2020 2021 9M2022 Current Ratio(3) (x) Asset to Equity(4) (x) 1.61x 1.67x 1.72x 1.47x 1.56x 1.51x 1.57x 1.53x 2019 2020 2021 9M2022 2019 2020 2021 9M2022
Slide 28: 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 27
Slide 29: Summary: 9M 2022 highlights
Summary: 9M 2022 highlights 9M 2022 Summary FY 2022 Outlook • Consolidated revenues amounted to ₱3.2 billion and net • The newly completed 69,000sqm GLA 8912 Asean Ave and income reached ₱1.7 billion, 39% higher YoY. Core net the over 2,000sqm GLA 58 Jupiter are expected to post income to parent gre
Slide 30: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 29 32 Sustainability and Accolades
Slide 31: 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 32: Employee Vaccination Program
Employee Vaccination Program 31
Slide 33: Safety Seal – Certified Mixed Use and Office Buildings
Safety Seal – Certified Mixed Use and Office Buildings 32
Slide 34: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 15 Notable Recent Transaction/s in 9M2022 19 Operating and Financial Highlights 29 COVID-19 Response 33 33 Sustainability and Accolades
Slide 35: DM Wenceslao's Five Pillars of Sustainability
DM Wenceslao’s Five Pillars of Sustainability 34
Slide 36: 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) 35
Slide 37: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 36
Slide 38: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 37
Slide 39: Q&A
Q&A www.dmwai.com www.aseanacity.com 38 iro@dmwai.com 38
Slide 40: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 9M2022 9M2021 Change (%) Rentals Land P 736,434,707 P 731,508,943 +1% Building 580,810,712 592,933,562 -2% Other revenues 277,632,892 134,323,781 +107% 1,594,878,311 1,458,766,286 +9% Land sales 787,600,000 - N/A Sale of condominium units 801,0
Slide 41: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 9M2022 2021 Current Assets 14,424,548,015 14,049,443,598 Non-current Assets 24,095,322,463 22,934,039,805 Total Assets P 38,519,870,478 P 36,983,483,403 Current Liabilities 8,397,789,411 8,407,529,857 Non-current Liabilities 4,375,750,171 4
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