D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — 9M 2019 Earnings Presentation
23 slides from D.m. Wenceslao & Associates's earnings presentation, Oct 30, 2019
Slide 1: 9M 2019 Analyst Briefing
9M 2019 Analyst Briefing 30 October 2019 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: Aseana: A city taking shape
Aseana: A city taking shape Q&A 2 Operating and Financial Highlights 12 Other Items 2 2
Slide 4: Updated summary of land holdings in Aseana City
Updated summary of land holdings in Aseana City Remaining Land Reserves (297,311 sq.m.) Land Used/Allocated for Development Land Allocated (272,048 sq.m.) for Future Sales (7,798 sq.m.) Completed Land Allocated for Properties Future Leases (38,420 sq.m.) (20,103 sq.m.) Land Holdings Land Leased (569
Slide 5: New land leases in areas not slated for near-term development
New land leases in areas not slated for near-term development Caltex 7/11 10K South Concrete 1,187 sq.m. 81 sq.m. 6,372 sq.m. 10 years 10 years 5 years Undeveloped Undeveloped Undeveloped commercial zone commercial zone commercial zone leased to a gasoline leased to a leased to a cement service stat
Slide 6: Residential segment as revenue growth driver
Residential segment as revenue growth driver PHP 9M 2019 9M 2018 Change (%) Rentals Land P 736,750,507 P 722,574,538 2% Building 594,339,433 557,189,981 7% Other revenues 142,175,967 129,204,275 10% 1,473,265,907 1,408,968,794 5% +21% y-o-y Construction contracts 49,052,530 121,036,454 -59% Revenue
Slide 7: In focus: Leasing
In focus: Leasing Recurring income P1,473.3M contribution We pay particular attention to recurring income sources to provide us with higher earnings visibility. We primarily target traditional 76% rentals from land, buildings and other companies, including logistics, BPOs, and gaming and tourism-rel
Slide 8: In focus: Residential
In focus: Residential Revenue P422.7M contribution We are complementing the speed of development in the area with residential offerings in the mid-income and upscale categories, 22% from 5% in 9M 2018 on increased percentage ranging in size from 36 sq.m. to 108 sq.m. of project completion and ongoin
Slide 9: Robust leasing activity reflects high level of sustainability
Robust leasing activity reflects high level of sustainability Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) Total recurring revenues 1,600 1,409 1,473 1,400 89,914 89,914 1,200 39% 1,000 45% 800 59,000 600 400 35% 31% 200 0 8% 7% 9M 2018 9M 2019 % to Total Revenues 88% 76
Slide 10: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 84% 76% 69% 58% 1,126 1,480 1,110 1,343 9M 2018 9M 2019 9M 2018 9M 2019 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attribu
Slide 11: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 20% 29% 14% 12% 11% 10% 2017 2018 9M 2019 2017 2018 9M 2019 Current Ratio(3) (x) Assets to Equity(4) (x) 2.35x 1.61x 1.49x 1.64x 1.65x 0.75x 2017 2018 9M 2019 2017 2018 9M 2019 Notes: All data as at December
Slide 12: Use of proceeds
Use of proceeds Application Balance of the Allocation of Application for the quarter Offering Proceeds Offering Proceeds as of 30 Jun 2019 ended 30 Sep 2019 as of 30 Sep 2019 Pipeline project development ₱ 3,731,213,878 ₱ 983,364,859 ₱ 762,582,902 ₱ 1,985,266,117 Land assets 2,880,101,954 - - 2,880,
Slide 13: Summary: 9M 2019 highlights
Summary: 9M 2019 highlights 9M 2019 Summary 2019/2020 Outlook • Recurring income from leasing rose 5% to • Residential P1,473.3 million or 76% of total revenues • On-time completion and handover of first • Building leasing showed sustained growth residential project, Pixel Residences, with consolida
Slide 14: Operating and Financial Highlights / Other Items
5 Operating and Financial Highlights 13 Other Items 13 13
Slide 15: Event after the reporting period: Sale of land for P425,000/sq.m.
Event after the reporting period: Sale of land for P425,000/sq.m. LOT AREA: 2,202 S Q UA R E M E T E R S E. ROMEO DRIVE COR. BROCKA STREET, ASEANA CITY, PARAÑAQUE CITY P935.85 million Transaction amount Cost of sale 7% 93% Gross profit margin Aseana City P425,000/ sq.m. Land price 14
Slide 16: Ongoing planned growth and developments unlock land value
Ongoing planned growth and developments unlock land value Prices of sold land per sq.m. (PHP’000) Land sales transactions since 2015 CAGR (2015 – 2019) = 36% Date of Sales CAGR (2008 – 2019) = 17%* CAGR (2006 – 2019) = 21%** 425 Land Area Contract (₱ mm) 3.4x Purchaser (sq.m.) Usage to Sell +70% Anc
Slide 17: (Cont'd) Ongoing planned growth and developments unlock land value
(Cont’d) Ongoing planned growth and developments unlock land value 5 Projects site preparation 14 Projects ongoing construction _____________________________ 6 Offices 3 Retail 1 Mall 3 Residential condominiums 2 Hotels 4 Underground utilities and road development 16
Slide 18: Ayala Malls Manila Bay opens flagship mall
Ayala Malls Manila Bay opens flagship mall Ayala Malls Manila Bay 400,000 sq.m. gross floor area with 10-level office space and 350-room Seda Hotel Opened in Sep 2019 Macapagal Blvd. corner Asean Avenue About Ayala Malls Manila Bay land lease Total leased land area: 102,297.48 sq.m. Lease period: 45
Slide 19: Sequoia Hotel opens second branch in Aseana City
Sequoia Hotel opens second branch in Aseana City Sequoia Hotel 175 guestrooms studio-type rooms Opened in Oct 2019 Block 2 Lot 15 About Sequoia Hotel Sequoia Hotel is a 12-story business-friendly hotel standing on a 1,412 sq.m. lot area offering 175 studio-type rooms, pool and conference facilities.
Slide 20: Other income: Share in net earnings of joint ventures
Other income: Share in net earnings of joint ventures Nissan Dealership 2,500 sq.m. 10 years (option to extend for 5 years) To be completed by 2021 Located along BRADCO Avenue and within steps from Aseana Powerstation Building About Bay Resources and Development Corporation (BRADCO) In 1992, DMW ent
Slide 21: Q&A
Q&A www.dmwai.com www.aseanacity.com 20 iro@dmwai.com
Slide 22: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 9M 2019 9M 2018 Change (%) Rentals Land P 736,750,507 P 722,574,538 2% Building 594,339,433 557,189,981 7% Other revenues 142,175,967 129,204,275 10% 1,473,265,907 1,408,968,794 5% Construction contracts 49,052,530 121,036,454 -59% Sale of cond
Slide 23: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 30 Sep 2019 31 Dec 2018 Current Assets 15,084,056,510 14,766,421,688 Non-current Assets 17,282,156,252 14,895,230,939 Investment in Joint Venture Held for termination 127,062,953 127,062,953 Total Assets P 32,493,275,715 P 29,788,715,580 Cu
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