D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — FY2022 Earnings Presentation
38 slides from D.m. Wenceslao & Associates's earnings presentation, Mar 16, 2023
Slide 1: FY 2022 Analysts' Briefing
FY 2022 Analysts’ Briefing March 16, 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 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 2 30 Sustainability and Accolades
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 14% from 2022-2025 change in % to new 15,418,500 sq.m. Location end of 2022 end of 2025 % change 300K sq.m. supply 2023 – 2025 supply Alabang, 6% average: 573,400 s
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 2022F – 2024F supply average: 6,860 units Location units supply 171,760 units Alaban
Slide 6: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 5 30 Sustainability and Accolades
Slide 7: Updated summary of land holdings in Aseana City as of December 31, 2022
Updated summary of land holdings in Aseana City as of December 31, 2022 Remaining Land Reserves (287,968 sq.m.) Land Used/Allocated for Development Land Allocated (276,050 sq.m.) for Future Sales (4,218 sq.m.) Completed Properties Land Allocated for (36,659 sq.m.) Future Leases (4,532 sq.m.) Land Ho
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% Php2.4 Billion Net Cash Position >Php230 Billi
Slide 9: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 8 30 Sustainability and Accolades
Slide 10: Commercial Pipeline Milestones: PARQAL
Commercial Pipeline Milestones: PARQAL Construction Progress 89% 9
Slide 11: 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 10
Slide 12: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 52% 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: Aseana City Under Construction
Aseana City Under Construction 13
Slide 15: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 14
Slide 16: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 15
Slide 17: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 16 30 Sustainability and Accolades
Slide 18: January 2022 Land Sale Php787.6 million
January 2022 Land Sale Block 3, Lot 4-D-2 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 17
Slide 19: Land Sales Crystallize Value of Assets
Land Sales Crystallize Value of Assets 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 18
Slide 20: 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 19
Slide 21: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 20 30 Sustainability and Accolades
Slide 22: 2022 Net Income Rises to ₱2.1 Billion
2022 Net Income Rises to ₱2.1 Billion PHP 2022 2021 Change Rentals Land P 1,010,414,057 P 967,938,663 +4% Building 808,006,773 811,036,957 0% Other revenues 355,463,327 213,216,218 +67% 2,173,884,157 1,992,191,838 +9% Land Sales 787,600,000 787,600,000 0% P4.2 billion Sale of condominium units 1,250
Slide 23: In Focus: Leasing
In Focus: Leasing P2.2B 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 24: Robust leasing activity reflects high level of sustainability
Robust leasing activity reflects high level of sustainability Recurring Income Contribution(1) (%) Total Leased Land Area (2) (sq.m.) Total recurring revenues 166,015 24% 158,079 158,079 28% 150,444 19% 24% 6% 8% 2021 2022 % to Total Revenues 58% 52% Land (PHP mm) 968 1,010 Building 811 808 2019 202
Slide 25: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P1.3B total revenues We are complementing the speed of development in the area with 2019 16% Accounted for 30% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2020 27% accounts that met
Slide 26: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 80% 83% 76% 77% 72% 65% 62% 65% 3,245 2,486 2,728 2,819 2,845 2,271 2,071 1,707 2019 2020 2021 2022 2019 2020 2021 2022 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attributabl
Slide 27: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 12% 14% 10% 9% 9% 12% 6% 3% 2019 2020 2021 2022 2019 2020 2021 2022 Current Ratio(3) (x) Asset to Equity(4) (x) 1.61x 1.67x 1.63x 1.47x 1.52x 1.48x 1.53x 1.49x 2019 2020 2021 2022 2019 2020 2021 2022 Notes:
Slide 28: Continuously Growing Dividends Even During Expansion Phase
Continuously Growing Dividends Even During Expansion Phase Dividend Per Share (Php) 0.07 0.06 0.05 0.05 0.04 2019 2020 2021 2022 2023 27
Slide 29: 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 28
Slide 30: 2022 Summary and 2023 Outlook
2022 Summary and 2023 Outlook 2022 Summary 2023 Outlook • Consolidated revenues amounted to ₱4.2 billion and net • The over 70,000sqm Parqal, which will open in 2023, will income reached ₱2.1 billion. Core net income to parent grew provide fresh recurring earnings contribution. 13% YoY and is 27% hi
Slide 31: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Pipeline 16 Notable Transaction/s in FY2022 20 Operating and Financial Highlights 30 30 Sustainability and Accolades
Slide 32: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 31
Slide 33: Corporate Sustainability Assessment Percentile Rank
Corporate Sustainability Assessment As of February 2023, DMW 88% performed in the top quintile in the Real Estate Industry of S&P Global Corporate Percentile Rank Sustainability Assessment. (100 being the highest) 32
Slide 34: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 33
Slide 35: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 34
Slide 36: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 35
Slide 37: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 2022 2021 Change Rentals Land P 1,010,414,057 P 967,938,663 +4% Building 808,006,773 811,036,957 0% Other revenues 355,463,327 213,216,218 +67% 2,173,884,157 1,992,191,838 +9% Land sales 787,600,000 787,600,000 0% Sale of condominium units 1,25
Slide 38: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 2022 2021 Current Assets 13,572,337,227 14,049,443,598 Non-current Assets 25,072,195,710 22,934,039,805 Total Assets P 38,644,532,936 P 36,983,483,403 Current Liabilities 8,302,500,868 8,407,529,857 Non-current Liabilities 4,168,816,044 4,3
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