D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Investor Presentation (June 2022)
53 slides from D.m. Wenceslao & Associates's investor presentation, Jun 14, 2022
Slide 1: DMW Management Presentation
DMW Management Presentation June 14, 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: Key Presenters
Key Presenters Delfin Angelo C. Wenceslao Heherson M. Asiddao Julius Guevara Jeffrey Lucero Chief Executive Officer Chief Finance Officer VP for Corporate Planning Investor Relations Officer 2
Slide 4: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 3 49 Sustainability
Slide 5: The Company at a Glance
The Company at a Glance… 57 YEARS IN BUSINESS AAAA PCAB LICENSE 77 HAS. LANDBANK 56 HAS. INSIDE ASEANA 21 HAS. OUTSIDE ASEANA RESIDENTIAL COMMERCIAL CONSTRUCTION P23 B Other Businesses MARKET CAPITALIZATION* P220 B ASEANA CITY EXTERNAL VALUATION** 90% DISCOUNT TO EXTERNAL VALUATION Notes *as of Nove
Slide 6: Key Milestones – Demonstrating Execution Track Record
Key Milestones – Demonstrating Execution Track Record 2020 1965 - 86 2018 ▪ Signed land lease MOU with St. Luke’s ▪ Completion of Aseana Three 2021 ▪ DMW lists on the PSE ▪ Completion of 69,000sqm 8912 Asean Ave ▪ 8912 Asean Ave. commences ▪ Completion of 58 Jupiter in Makati 1965: Establishment of
Slide 7: 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 164,895 sqms 4 Condo Projects 162,351 sqms GLA & projects reclaimed leased-out lan
Slide 8: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 7 49 Sustainability
Slide 9: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2020 and 2024 Manila Bay Future Office Supply to grow by 13.6% from 2021-2024 change in % of total new 2022 – 2024 supply 14,896,499 sq.m. Location end of 2020 end of 2024 % change 300K sq.m. supply average: 649,880 sq.m. Oth
Slide 10: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end 2020 and 2024 Bay Area to Account for 64% of New Supply from 2022-2024 change in % to new end of 2020 end of 2024 % change Location units supply 2022F – 2024F supply average: 8,210 units 166,820 units Alabang 4,880
Slide 11: High Vaccination Rate Allows for Continued Re-opening
High Vaccination Rate Allows for Continued Re-opening Vaccines Administered First dose Second dose Third dose % of population: in mn First dose: 67% 180.00 Second dose: 65% 160.00 159mn doses administered Third dose: 13% 140.00 65% of PH population is fully vaccinated 14 120.00 PH average daily new
Slide 12: NCR and Other Key Areas Transitioned to Alert Level 1 since March 1
NCR and Other Key Areas Transitioned to Alert Level 1 since March 1 Alert Level 1 Alert Level 2 Alert Level 3 Alert Level 4 Alert Level 5 Age All ages allowed, All ages allowed, All ages allowed, Below 18 years old and Below 18 years old and subject to LGU Rules subject to LGU Rules subject to LGU R
Slide 13: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 12 49 Sustainability
Slide 14: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well Positioned for Future Growth 2 An Integrated Master Developer with Competitive Advantages Across Business Lines 3 Thrived Amidst the COVID-19 Pandemic 4 In a Hyper-Growth Stage 5 Grossly Undervalued 13
Slide 15: Aseana City – Conveniently Located and Anchored by Tourism, Recreational Developments, and Retail Malls
Aseana City – Conveniently 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 Ortigas CBD Roxas Boulevard within Parañaque City (<12km) ✓ Located within the estate is the larg
Slide 16: Updated summary of land holdings in Aseana City
Updated summary of land holdings in Aseana City Remaining Land Reserves (289,088 sq.m.) Land Used/Allocated for Development Land Allocated (274,930 sq.m.) for Future Sales (4,218 sq.m.) Completed Land Allocated for Properties Future Leases (36,659 sq.m.) (5,652 sq.m.) Land Holdings Land Leased (564,
Slide 17: 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 2021/1Q2022 Pre-Pandemic COVID Pandemic 16
Slide 18: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 Thrived Amidst the COVID-19 Pandemic 4 In a Hyper-Growth Stage 5 Grossly Undervalued 17
Slide 19: 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 20: Holistic Estate Development
Holistic Estate Development GLOBAL COMMUNITY URBAN RECREATION Master planned district Wholistic development for all lifestyles Global infrastructure & Balanced locator mix service standards Detailed Promote Regular Attractive development continued review tenant mix plan investments ✓ Update the mast
Slide 21: Holistic Estate Development
Holistic Estate Development 20
Slide 22: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well Positioned for Future Growth 2 An Integrated Master Developer with Competitive Advantages Across Business Lines 3 Thrived Amidst the COVID-19 Pandemic 4 In a Hyper-Growth Stage 5 Grossly Undervalued 21
Slide 23: Thrived Amidst the COVID-19 Pandemic
Thrived Amidst the COVID-19 Pandemic 1 Core Net Income Higher than Pre-Pandemic Core Net Income* (Php Million) +12% 1,882 1,677 2019 (Pre-Pandemic) 2021 2 Maintained and Grew Cash Dividends Amidst the Pandemic 1 Cash Dividends (Php/ Share) +29% 0.0609 0.0471 0.0471 2019 (Pre-Pandemic) 2020 2021 *Cor
Slide 24: Thrived Amidst the COVID-19 Pandemic
Thrived Amidst the COVID-19 Pandemic Support from Leading Local Financial Net Debt/(net cash) (PHP mn) Debt to Equity (%) Institutions 14% 13% 2020 2021 1Q2022 6% (2,384) (2,695) (3,617) 2020 2021 1Q2022 Healthy borrowing profile and conservative funding strategy for land sales ▪ DMW maintains good
Slide 25: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well Positioned for Future Growth 2 An Integrated Master Developer with Competitive Advantages Across Business Lines 3 Thrived Amidst the COVID-19 Pandemic 4 In a Hyper-Growth Stage 5 Grossly Undervalued 24
Slide 26: Hypergrowth Stage: Massive New and Upcoming Completions
Hypergrowth Stage: Massive New and Upcoming Completions Total Building Leasable Floor Area (sq.m.) +70,148 sqms +71,639 sqms 232,499 162,351 89,914 90,712 2019A 2020A 2021A 2022F 8912 Asean Ave Parqal 58 Jupiter 25
Slide 27: Commercial Pipeline Milestones: PARQAL Construction Progress
Commercial Pipeline Milestones: PARQAL Construction Progress 70% 26
Slide 28: Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 28% 27
Slide 29: Pipeline of Premier Assets Beyond 2022
Pipeline of Premier Assets Beyond 2022 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 Su
Slide 30: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well Positioned for Future Growth 2 An Integrated Master Developer with Competitive Advantages Across Business Lines 3 Thrived Amidst the COVID-19 Pandemic 4 In a Hyper-Growth Stage 5 Grossly Undervalued 29
Slide 31: 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 32: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 31 49 Sustainability
Slide 33: December 2021 Land Sale (4Q2021)
December 2021 Land Sale (4Q2021) Block 3, Lot 4-D-1 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 32
Slide 34: January 2022 Land Sale (1Q2022)
January 2022 Land Sale (1Q2022) Block 3, Lot 4-D-2 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 33
Slide 35: Landers Leased a Parcel of Land in Aseana City
Landers Leased a Parcel of Land in Aseana City Higher of Fixed Rate or Percentage of Sales Land Lease Scheme 15,064 25 Years Square Meters Lease Term 34
Slide 36: 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 35
Slide 37: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 36 49 Sustainability
Slide 38: 1Q2022 Core Net Income Jumps Almost Three-Fold YoY to ₱961 Million
1Q2022 Core Net Income Jumps Almost Three-Fold YoY to ₱961 Million PHP 1Q2022 1Q2021 Change Rentals Land P247,144,201 P257,292,441 -4% Building 214,578,527 192,336,160 +12% Other revenues 98,621,873 47,142,162 +109% 560,344,601 496,770,763 +13% Land Sales 787,600,000 - N/A P1.58 billion in total rev
Slide 39: In focus: Leasing
In focus: Leasing P560M Land We pay particular attention to recurring income sources to provide our lease with Ayala us with higher earnings visibility. We primarily target traditional Land provides for a companies, including logistics, BPOs, and gaming and tourism-related minimum guaranteed rent or
Slide 40: 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 162,351 162,351 16% 37% 13% 89,914 90,712 28% 7% 6% 1Q2021 1Q2022 % to Total Revenues 72% 35% Land (PHP mm) 257 247 2019 2020 2021 1Q2022 B
Slide 41: In focus: Residential
In focus: Residential Residential sales % to Revenue contribution P233.0M total revenues We are complementing the speed of development in the area with 2019 16% Accounted for 15% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2020 27% accounts that m
Slide 42: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 85% 77% 80% 76% 72% 65% 62% 2,819 2,845 2,271 2,486 2,071 1,707 1,351 1,218 2019 2020 2021 1Q2022 2019 2020 2021 1Q2022 Gross Profit Gross Profit Margin Operating Profit Operating
Slide 43: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 17% 14% 12% 13% 10% 9% 6% 3% 2019 2020 2021 1Q2022 2019 2020 2021 1Q2022 Current Ratio(3) (x) Asset to Equity(4) (x) 1.61x 1.67x 1.71x 1.47x 1.56x 1.51x 1.57x 1.56x 2019 2020 2021 1Q2022 2019 2020 2021 1Q202
Slide 44: 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 43
Slide 45: Summary: 1Q 2022 highlights
Summary: 1Q 2022 highlights 1Q 2022 Summary 2022 Outlook • Consolidated revenues amounted to ₱1.6 billion, and core • The newly completed 69,000sqm GLA 8912 Asean Ave and net income to parent jumped almost three-fold to ₱961 the over 2,000sqm GLA 58 Jupiter are expected to post million from ₱365 mil
Slide 46: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 45 49 Sustainability
Slide 47: 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 48: Employee Vaccination Program
Employee Vaccination Program 47
Slide 49: Safety Seal – Certified Mixed Use and Office Buildings
Safety Seal – Certified Mixed Use and Office Buildings 48
Slide 50: Company Background, Property Market Overview, Key Investment Highlights
3 Company Background 7 Property Market Overview 12 Key Investment Highlights 31 Notable Recent Transactions 36 Operating and Financial Highlights 45 COVID-19 Response 49 49 Sustainability
Slide 51: DM Wenceslao's Five Pillars of Sustainability
DM Wenceslao’s Five Pillars of Sustainability 50
Slide 52: 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) 51
Slide 53: Q&A
Q&A www.dmwai.com www.aseanacity.com 52 iro@dmwai.com 52
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