D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — 9M 2023 Earnings Presentation
30 slides from D.m. Wenceslao & Associates's earnings presentation, Nov 13, 2023
Slide 1: 9M 2023 Analysts' Briefing
9M 2023 Analysts’ Briefing November 13, 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: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 2 24 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2022 and 2025 Manila Bay Future Office Supply to increase by 9% from 2022-2025 change in % to new 15,146,000 sq.m. Location end of 2022 end of 2025 % change 2023 – 2025 supply sq.m. supply 200K average: 508,000 sq.m. Alabang,
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end-2022 and 2025 Bay Area to Account for almost half of New Supply from 2023-2025 change in % of new end of 2022 end of 2025 % change 2023F – 2025F supply average: 6,940 units Location units supply 172,000 units Alaban
Slide 6: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 5 24 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of September 30, 2023
Updated summary of land holdings in Aseana City as of September 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 L
Slide 8: 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% Php2.0 Billion Net Cash Position >Php230 Billi
Slide 9: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 8 24 Sustainability
Slide 10: Commercial Pipeline Milestones: PARQAL
Commercial Pipeline Milestones: PARQAL Grand Opening Sep 30, 2023 9
Slide 11: Hypergrowth Stage: Massive New Completions
Hypergrowth Stage: Massive New Completions Total Building Leasable Floor Area (sq.m.) Office Retail and F&B 235,846 22% 162,351 162,351 15% 15% 90,712 78% 23% 85% 85% 77% 2020 2021 2022 9M2023 8912 Asean Ave Parqal 58 Jupiter 10
Slide 12: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 71% 11
Slide 13: 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 14: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 13
Slide 15: 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 16: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 15 24 Sustainability
Slide 17: 9M2023 Net Income Reaches ₱1.3 Billion on Robust Leasing Operations
9M2023 Net Income Reaches ₱1.3 Billion on Robust Leasing Operations PHP 9M2023 9M2022 Change Rentals Land P 896,061,981 P 736,434,707 +22% Building 695,461,188 580,810,712 +20% Other revenues 241,774,524 277,632,892 -13% 1,833,297,693 1,594,878,311 +15% Land Sales - 787,600,000 N/A P2.8 billion Sale
Slide 18: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 9M2023 % to revenues Rentals Land P 896,061,981 32% Building & other rental 937,235,712 34% Sale of condominium units 826,866,733 29% Construction contracts 150,729,289 5% Total Revenues 2,810,893,715 Gross P
Slide 19: In Focus: Leasing
In Focus: Leasing P1.8B 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 20: 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 32% 23% 18% 25% 9% 8% 9M2022 9M2023 % to Total Revenues 50% 65% Land (PHP mm) 736 896 Building 581 695 2020 2021 2022 9M2023 Other Revenues 278 242 T
Slide 21: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P827M total revenues We are complementing the speed of development in the area with 2020 27% Accounted for 29% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2021 18% accounts that met
Slide 22: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 77% 83% 76% 72% 70% 65% 62% 56% 3,245 2,486 2,728 2,845 2,071 1,977 1,707 1,581 2020 2021 2022 9M2023 2020 2021 2022 9M2023 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attribu
Slide 23: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 10% 9% 9% 14% 12% 7% 11% 6% 2020 2021 2022 9M2023 2020 2021 2022 9M2023 Current Ratio(3) (x) Asset to Equity(4) (x) 1.7x 1.6x 1.6x 1.5x 1.5x 1.5x 1.5x 1.5x 2020 2021 2022 9M2023 2020 2021 2022 9M2023 Notes:
Slide 24: Summary and Outlook
Summary and Outlook 9M2023 Summary 2023 Outlook • Consolidated revenues amounted to ₱2.8 billion and net • Our flagship project Parqal, which opened in September income reached ₱1.3 billion supported by stable residential 2023, will provide fresh recurring earnings contribution. revenues and rental
Slide 25: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 15 Operating and Financial Highlights 24 24 Sustainability
Slide 26: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 25
Slide 27: 88th Percentile Rank or Top 12%
Corporate Sustainability Assessment 88th Percentile Rank or Top 12% Among a global universe of S&P-assessed real estate companies as of February 2023 26
Slide 28: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 27
Slide 29: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 9M2023 9M2022 Change Rentals Land P 896,061,981 P 736,434,707 +22% Building 695,461,188 580,810,712 +20% Other revenues 241,774,524 277,632,892 -13% 1,833,297,693 1,594,878,311 +15% Land sales - 787,600,000 N/A Sale of condominium units 826,866
Slide 30: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 9M2023 2022 Current Assets 14,330,621,290 13,572,337,229 Non-current Assets 27,461,140,767 25,072,195,711 Total Assets 41,791,762,057 38,644,532,940 Current Liabilities 9,182,285,836 8,302,500,868 Non-current Liabilities 5,406,902,697 4,168
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