D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — FY2023 Earnings Presentation
33 slides from D.m. Wenceslao & Associates's earnings presentation, Mar 19, 2024
Slide 1: FY 2023 Analysts' Briefing
FY 2023 Analysts’ Briefing March 19, 2024 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 10 Development Pipeline 15 Operating and Financial Highlights 2 25 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2023 and 2027 Bay Area will account for 8% of 1.76mn sqms new supply in 2024-2027 change in % to new Location end of 2023 end of 2027 % change sq.m. supply 250K 2024F 2025F 2026F 2027F Makati CBD 3,366,000 3,414,000 48,000 1%
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end-2023 and 2026 Location end of 2023 end of 2026 change in units % change % of new supply Alabang 5,660 8,440 2,780 49% 11% Araneta Center 5,140 5,140 0 0% 0% Eastwood City 9,630 9,630 0 0% 0% Fort Bonifacio 42,550 46
Slide 6: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 10 Development Pipeline 15 Operating and Financial Highlights 5 25 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of December 2023
Updated summary of land holdings in Aseana City as of December 2023 Land Used/Allocated Remaining Land Reserves for Development (311,881 sq.m.) (311,656 sq.m.) Land Allocated Completed for Future Sales Properties (4,218 sq.m.) (36,659 sq.m.) Land Allocated for Future Leases (4,532 sq.m.) Land Leased
Slide 8: Value of DMW's Aseana City Assets as of December 31, 2023
Value of DMW’s Aseana City Assets as of December 31, 2023 Colliers / Third Party Valuation of DMW’s Aseana City Assets PHP246 Billion Valuation of DMW’s Assets in Aseana Completed and Pipeline properties Land currently leased Php58B Php68B 28% 23% Php1.8 Billion Net Cash Position ~Php250 Billion DMW
Slide 9: Agenda
2 Property Market Overview 6 Valuation of Assets in Aseana 9 Development Pipeline 15 Operating and Financial Highlights 8 24 Sustainability
Slide 10: Commercial Pipeline Milestones: PARQAL
Commercial Pipeline Milestones: PARQAL Commenced Operations 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 2023 8912 Asean Ave Parqal 58 Jupiter 10
Slide 12: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 80% 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 i= SOUTHBOUND ROUTE PITx SM Mall of Asia Ayala Malls Manila Bay @ St. John Paul II Chapel 8912 Asean Ave. ; « Parqal (Abueva Drive) Parqal (lmao Drive) *, Pargal (Imao Drive) St. John Paull Il Chapel Nissanl(Bradcolave:) Nissan (B
Slide 16: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 10 Development Pipeline 15 Operating and Financial Highlights 15 25 Sustainability
Slide 17: 2023 Net Income Increases Over Threefold to ₱7.3 Billion
2023 Net Income Increases Over Threefold to ₱7.3 Billion PHP 2023 2022 Change Rentals Land P 1,281,004,246 P 1,010,414,057 +27% Building 982,676,920 808,006,773 +22% Other revenues 324,602,561 355,463,327 -9% 2,588,283,727 2,173,884,157 +19% Land Sales - 787,600,000 N/A P4.1 billion Sale of condomin
Slide 18: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 2023 % to revenues Rentals Land P 1,281,004,246 31% Building & other rental 1,307,279,481 32% Sale of condominium units 1,356,887,485 33% Construction contracts 153,790,324 4% Total Revenues 4,098,961,536 Gro
Slide 19: In Focus: Leasing
In Focus: Leasing P2.6B 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 186,246 24% 31% 166,015 158,079 150,444 19% 24% 8% 8% 2022 2023 % to Total Revenues 51% 63% Land (PHP mm) 1,010 1,281 Building 808 983 2020 2021 2022 2023 Other Revenues 355 325 Tot
Slide 21: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P1.4B total revenues We are complementing the speed of development in the area with 2020 27% Accounted for 33% 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% 71% 65% 62% 52% 3,245 2,486 2,728 2,845 2,930 2,136 2,071 1,707 2020 2021 2022 2023 2020 2021 2022 2023 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Core Profit ex-Land Sa
Slide 23: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 25% 14% 12% 8% 6% 10% 9% 9% 2020 2021 2022 2023 2020 2021 2022 2023 Current Ratio(3) (x) Asset to Equity(4) (x) 3.0x 1.7x 1.6x 1.5x 1.5x 1.5x 1.5x 1.4x 2020 2021 2022 2023 2020 2021 2022 2023 Notes: Data as
Slide 24: Continuously Growing Dividends
Continuously Growing Dividends Dividend Per Share (Php) 0.08 0.07 0.06 0.05 0.05 0.04 2019 2020 2021 2022 2023 2024 Dividend Distribution per Year 23
Slide 25: Summary and Outlook
Summary and Outlook 2023 Summary 2024 Outlook • Consolidated revenues amounted to ₱4.1 billion and net • Sustained strong tenant take-up across the portfolio will income increased more than threefold to ₱7.3 billion. continue to improve occupancy rates and boost rental revenues and margins. • Exclud
Slide 26: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 10 Development Pipeline 15 Operating and Financial Highlights 25 25 Sustainability
Slide 27: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 26
Slide 28: 89th Percentile Rank or Top 11%
Corporate Sustainability Assessment 89th Percentile Rank or Top 11% Among a global universe of S&P-assessed real estate companies as of Jan 2024 27
Slide 29: DMW Enterprise Risk Manual 2023 Update
DMW Enterprise Risk Manual 2023 Update Top Risk Management Action Plans Audit Action Plan Assurance Providers Work-from-home Policy/Process • Monitoring of occupancy rates and • Senior Management trend reducing leasing trends • Property Management • Enrich tenant experience through integrated demand
Slide 30: DMW Enterprise Risk Manual 2023 Update
DMW Enterprise Risk Manual 2023 Update Top Risk Management Action Plans Audit Action Plan Assurance Providers Interest rate Policy/Process • Review of hedging strategies • Senior Management fluctuations • Monitoring of debt levels and • Treasury Department • Hedging strategies for interest rate expo
Slide 31: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 30
Slide 32: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 2023 2022 Change Rentals Land P 1,281,004,246 P 1,010,414,057 +27% Building 982,676,920 808,006,773 +22% Other revenues 324,602,561 355,463,327 -9% 2,588,283,727 2,173,884,157 +19% Land sales - 787,600,000 N/A Sale of condominium units 1,356,88
Slide 33: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 2023 2022 Current Assets 25,236,609,946 13,572,337,229 Non-current Assets 27,114,537,736 25,072,195,711 Total Assets 52,351,147,682 38,644,532,940 Current Liabilities 8,295,640,614 8,302,500,868 Non-current Liabilities 5,365,311,224 4,168,8
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