D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — H1 2019 Earnings Presentation
20 slides from D.m. Wenceslao & Associates's earnings presentation, Aug 1, 2019
Slide 1: 1H 2019 Analyst Briefing
1H 2019 Analyst Briefing 1 August 2019
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: Market Overview, Operating and Financial Highlights, Summary
Our established track record in land reclamation and construction equip us with ready-to-use, easily deployed capabilities and expertise, as well as in- house resources and personnel for our own real estate projects and our implementation of Aseana City’s master plan. 2 Market Overview 5 Operating a
Slide 4: Stable economic growth sustains office demand
Stable economic growth sustains office demand Sustained Demand to Absorb New Office Deliveries… …And to Result in Rising Average Office Rental Rates 2018 – 2021 vacancy 1,200 end-1Q 2019 2018 – 2021 rent 30% 1,200,000 average: 6.3% 8.0% average rent: P965 increase average: 5% 1,000 20% 1,000,000 Vac
Slide 5: Continued growth in business districts boost residential sales
Continued growth in business districts boost residential sales Metro Manila Residential Supply Forecast, end 2019 and 2021 (1) Future Supply Concentrated in Manila Bay and Fort Bonifacio (1) Location end of 2018 end of 2019 end of 2021 % change 2018 – 2021 supply 2018 – 2021 demand (2021/ 2018) aver
Slide 6: Operating and Financial Highlights
2 Market Overview 5 Operating and Financial Highlights 13 Summary 5
Slide 7: Office renewal and residential completion lift revenues
Office renewal and residential completion lift revenues PHP 1H 2019 1H 2018 Change (%) Rentals Land P 497,444,984 P 482,192,981 3% Building 392,489,115 351,900,929 12% Other revenues 93,439,186 85,900,927 9% 983,373,285 919,994,837 7% +17% y-o-y Construction contracts 12,130,599 114,517,783 -89% Rev
Slide 8: In focus: Higher office lease renewal rates signify strong market
In focus: Higher office lease renewal rates signify strong market MANILA BAY AREA (1) Comparative lease rates LEASE RATE 1,200 Aseana 1 Aseana 2 Aseana 3 Indicative Asking Lease Rate: 1,000 PHP650 to PHP1,600 per sq.m./mo. 800 Transacted Lease Rate: PHP700 to PHP1,500 per sq.m./mo. 600 400 SUPPLY (G
Slide 9: In focus: Growth in residential pre-sales affirm asset attractiveness
In focus: Growth in residential pre-sales affirm asset attractiveness REVENUE RECOGNITION POLICY Pixel Residences 20% collection of the contract price 1,600 1,507 1,459 60% PAYMENT TERMS 57% Millions 1,341 Pixel Residences 1,157 50% 1,200 20%-80% 40% 20% installment payment is paid during 38% th
Slide 10: Robust leasing activity
Robust leasing activity Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) 1,262 1,080 950 89,914 89,914 750 39% 45% 550 59,000 350 33% 31% 150 8% 7% -50 1H 2018 1H 2019 % to Total Revenues 85% 78% Land (PHP mm) 482 497 2017 2018 1H 2019 Building 352 392 Other Revenues 86 93 P
Slide 11: Superior profitability scorecard
Superior profitability scorecard Gross Profit (PHP mm) Operating Profit (PHP mm) 82% 78% 65% 60% 757 982 707 891 1H 2018 1H 2019 1H 2018 1H 2019 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attributable to Equity Holders of the Parent (PHP m
Slide 12: Low leverage, high financial liquidity
Low leverage, high financial liquidity Debt To Equity(1) (%) Return on Equity(2) (%) 20% 29% 14% 12% 11% 10% 2017 2018 1H 2019 2017 2018 1H 2019 Current Ratio(3) (x) Assets to Equity(4) (x) 2.35x 1.61x 1.56x 1.64x 1.65x 0.75x 2017 2018 1H 2019 2017 2018 1H 2019 Notes: All data as at December 31 of e
Slide 13: Use of Proceeds
Use of Proceeds Application Balance of the Allocation of Application for the quarter Offering Proceeds Offering Proceeds as of 31 Mar 2019 ended 30 Jun 2019 as of 30 Jun 2019 Pipeline project development ₱ 3,731,213,878 ₱ 602,046,691 ₱ 381,318,168 ₱ 2,747,849,019 Land assets 2,880,101,954 - - 2,880,
Slide 14: Summary
Aseana City is 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 Market Overview 5 Operating and Financial Highlights 13 Summary 13
Slide 15: Summary: 1H 2019 Highlights
Summary: 1H 2019 Highlights 1H 2019 Summary 2019 Outlook • Recurring income from leasing grew 7% to • Residential P983.4 million or 78% of total revenues • Unbooked revenues of P1.1 billion from • Residential sales rose six times to Pixel Residences for recognition P266.7 million on increased percen
Slide 16: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com
Slide 17: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1H 2019 1H 2018 Change (%) Rentals Land P 497,444,984 P 482,192,981 3% Building 392,489,115 351,900,929 12% Other revenues 93,439,186 85,900,927 9% 983,373,285 919,994,837 7% Construction contracts 12,130,599 114,517,783 -89% Sale of condominiu
Slide 18: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 30 Jun 2019 31 Dec 2018 Current Assets 15,303,551,144 14,766,421,688 Non-current Assets 16,161,533,734 14,895,230,939 Investment in Shares of Stock Held for termination 127,062,953 127,062,953 Total Assets P 31,592,147,831 P 29,788,715,580
Slide 19: In focus: Peer trading performance summary
In focus: Peer trading performance summary Land area (sq.m.) Valuation by Colliers (PHP mm) @P270,000/ Share sq.m. land Analysts’ Roads and Completed properties (1) prices valuation Consensus Average right of way Land currently Land currently leased (2) 14,991 @ 70% 14,016 leased 155,418 42,722 9% d
Slide 20: New Independent Director: Mr. Oscar S. Reyes
New Independent Director: Mr. Oscar S. Reyes Present Directorships Master of Business Administration Other Listed Companies Ateneo Graduate Business School • Manila Water Company, Inc. • Pepsi-Cola Products Philippines Inc. Bachelor of Arts, Major in Economics (Cum Laude) • Basic Energy Corporation
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