D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Investor Day (August 2023)
44 slides from D.m. Wenceslao & Associates's investor day presentation, August 2023
Slide 1: DMW Management Presentation
DMW Management Presentation August 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: Company Background, Key Investment Highlights, Operating and Financial Highlights
2 Company Background 10 Key Investment Highlights 33 Operating and Financial Highlights 2 40 Sustainability
Slide 4: The Company at a Glance
The Company at a Glance… 58 YEARS IN BUSINESS AAAA PCAB LICENSE 77 HAS. LANDBANK 56 HAS. INSIDE ASEANA 21 HAS. OUTSIDE ASEANA RESIDENTIAL COMMERCIAL CONSTRUCTION 162,351sqms Other Businesses COMMERCIAL GLA 174,102sqms LEASED OUT LAND 60,000sqms RESIDENTIAL GFA *as of November 2021 **Colliers’ valuat
Slide 5: The Company at a Glance
The Company at a Glance… Robust Balance Growing Income Rising Dividends Sheet P21 B 2,122 913 0.12x Debt to Equity 0.06 0.07 MARKET CAPITALIZATION 639 Ratio 0.05 0.05 P26 B 927 P2.3 B Net Cash 0.04 Position BOOK VALUE P230 B + 1.5x Current 1H19 1H23 Ratio 2018 2022 2018 2019 2020 2021 2022 NET ASSET
Slide 6: Distinct Profile with Strong Embedded Upside Across Businesses
Distinct Profile with Strong Embedded Upside Across Businesses We are an an integrated property developer with expertise in land reclamation, construction and real estate development >140 construction >2.4mn sqms land 174,102 sqms 4 Condo Projects 162,351 sqms GLA & projects reclaimed leased-out lan
Slide 7: Key Milestones – Demonstrating Execution Track Record
Key Milestones – Demonstrating Execution Track Record 2018-2019 ▪ Completion of Aseana Three ▪ DMW lists on the PSE ▪ Launch of MidPark Towers ▪ Groundbreaking of 8912 2003 2016 Asean Ave, MidPark Entered into first land Towers, 58 Jupiter, and 2012 ▪ Launch of lease and commenced Parqal Completion
Slide 8: Aseana City
de ASEANA CITY | 1984 D.M.WENCESLAO- 7 AND ASSOCIATES, INCORPORATED
Slide 9: Aseana City Taking Shape
Aseana City Taking Shape B .M.WENCESLAO-— 3 AND ASSOCIATES, INCORPORATED
Slide 10: Aseana City Taking Shape
Aseana City Taking Shape D.M.WENCESLAO~ 9 AND ASSOCIATES, INCORPORATED
Slide 11: Company Background, Key Investment Highlights, Operating and Financial Highlights
2 Company Background 10 Key Investment Highlights 33 Operating and Financial Highlights 10 40 Sustainability
Slide 12: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 11
Slide 13: 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 14: Aseana City – Strategically Located and Anchored by Tourism, Recreational Developments, and Retail Malls
Aseana City – Strategically Located and Anchored by Tourism, Recreational Developments, and Retail Malls Aseana City ✓ Located along the shoreline of Manila Bay bordering Pasay City and extending east to Roxas Ortigas CBD Boulevard within Parañaque City (<12km) ✓ Located within the estate are 1) the
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: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 16
Slide 18: An Integrated Master Developer with Competitive Advantages across Business Lines
An Integrated Master Developer with Competitive Advantages across Business Lines Integrated master developer covering the entire value chain - land creation, infrastructure construction and property development Capital recycling for future growth Our Current Focus Construction Land sale For sales La
Slide 19: Holistic Estate Development
Holistic Estate Development GLOBAL COMMUNITY URBAN RECREATION Master planned district Holistic development for all lifestyles Global infrastructure & Balanced locator mix service standards Detailed Promote Regular Attractive development continued review tenant mix plan investments ✓ Update the maste
Slide 20: Holistic Estate Development
Holistic Estate Development 19
Slide 21: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 20
Slide 22: 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 21
Slide 23: Commercial Pipeline Milestones: PARQAL Construction Progress
Commercial Pipeline Milestones: PARQAL Construction Progress 94% 22
Slide 24: PARQAL Walkthrough
PARQAL Walkthrough D.M.WENCESLAO 23 AND ASSOCIATES, INCORPORATED,
Slide 25: Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 64% 24
Slide 26: 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 27: Thrived Amidst COVID-19 Pandemic and Macroeconomic Headwinds
Thrived Amidst COVID-19 Pandemic and Macroeconomic Headwinds 1 Core Net Income Higher than Pre-Pandemic Core Net Income* (Php Million) 2,122 913 1,882 1,677 639 1,311 927 2018 2019 2020 2021 2022 1H2019 1H2023 2 Maintained and Grew Cash Dividends Amidst the Pandemic 1 Cash Dividends (Php/ Share) 0.0
Slide 28: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 27
Slide 29: 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 30: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Support from Leading Local Financial Net Debt/(net cash) (PHP mn) Institutions 2021 2022 1H2023 (2,384) (2,413) (2,286) Healthy borrowing profile ▪ DMW maintains good relationships with and is well supported by leading local ▪ DMW maintains strict finan
Slide 31: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 30
Slide 32: 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 33: Significant Land Value Appreciation
Significant Land Value Appreciation 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 & 2022 Pre-Pandemic COVID Pandemic 32
Slide 34: Company Background, Development Pipeline, Operating and Financial Highlights
2 Company Background 10 Development Pipeline 33 Operating and Financial Highlights 33 40 Sustainability
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 substantial increase in provide fresh recurring earnings contribution. residential earnings and su
Slide 41: Company Background, Key Investment Highlights, Operating and Financial Highlights
2 Company Background 10 Key Investment Highlights 33 Operating and Financial Highlights 40 40 Sustainability
Slide 42: D.M. Wenceslao’s Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 41
Slide 43: Corporate Sustainability Assessment: 88th Percentile Rank
Corporate Sustainability Assessment 88th Percentile Rank or Top 12% Among a global universe of S&P-assessed real estate companies as of February 2023 42
Slide 44: www.dmwai.com
www.dmwai.com www.aseanacity.com iro@dmwai.com 43
D.M. Wenceslao & Associates — Investor Day (August 2023) on 6ix