D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Q1 2019 Earnings Presentation
20 slides from D.m. Wenceslao & Associates's earnings presentation, May 10, 2019
Slide 1: D.M. Wenceslao & Associates, Incorporated 1Q 2019 Analyst Briefing
D.M. Wenceslao & Associates, Incorporated 1Q 2019 Analyst Briefing 10 May 2019
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: Points of Focus
Completed in 2018, Aseana Aseana Three City,isour ourdevelopment third commercial project office withbuilding total land with area total of leasable floor 107.5 area hectares of 30,914 located sq.m.along It is located the coastal at the waters cornerof of Manila D. Macapagal Bay bordering Blvd. andt
Slide 4: Stable Economic Growth Sustains Office Demand
Stable Economic Growth Sustains Office Demand Sustained Demand to Absorb New Office Deliveries… …And to Result in Rising Average Office Rental Rates 2018 – 2021 vacancy 1,200 2018 – 2021 rent 30% 1,200,000 average: 6.3% 8.0% increase average: 5% 1,000 20% 1,000,000 Percentage Growth PHP/sq.m./month
Slide 5: Continued Growth in Business Districts Boost Residential Sales
Continued Growth in Business Districts Boost Residential Sales Metro Manila Residential Supply Forecast, end 2019 and 2021 (1) Future Supply Concentrated in Manila Bay and Fort Bonifacio (3) Location end of 2019 end of 2021 % change 2018 – 2021 supply 2018 – 2021 demand average: 7,600 average: 7,000
Slide 6: In focus: Office lease renewal at Aseana One
In focus: Office lease renewal at Aseana One Aseana One 2012 20,189 year completed leasable floor area in sq.m. P480 6.6 average lease rate average lease term per sq.m. in years 2,777 PEZA land area in sq.m. accredited 2019 100% data as of 31 Mar occupancy rate P870 40% average lease rate year-on-ye
Slide 7: Development Pipeline
Pixel Residences is our first residential development, with 170 units ranging from 36 sq.m. to 88 sq.m. It was launched in July 2016 and was sold out in June 2017. 2 Points of Focus 6 Development Pipeline 9 Operating and Financial Highlights 15 Summary 6
Slide 8: Commercial: Stepping up our recurring business model
Commercial: Stepping up our recurring business model 8912 Asean Ave. (formerly Aseana Four) Apr 2018 68,000+ groundbreaking sq.m. leasable GFA 15 floors with highly flexible specifications Dec 2020 target turnover Broke ground Apr 2018 Parqal Office & Retail 67,000+ use sq.m. leasable GFA 4/9 26,000
Slide 9: Residential: Making good progress on many fronts
Residential: Making good progress on many fronts Pixel Residences 2016 170 year launched total units Apr 2019 P125,000 topped off per sq.m. base price <12 P1.7 billion months pre-selling project value P1.2 billion unrecognized revenues Topped off Apr 2019 MidPark Towers 20 Nov 2018 309 launch date u
Slide 10: Operating and Financial Highlights
MidPark Towers is our second residential project, with 669 units ranging from 36 sq.m. to 108 sq.m. Two of its four towers were launched in November 2018. 2 Points of Focus 6 Development Pipeline 9 Operating and Financial Highlights 15 Summary 9
Slide 11: Office renewal and residential completion lift revenues
Office renewal and residential completion lift revenues PHP 3M 2019 3M 2018 Change (%) Rentals Land P 255,243,279 P 245,563,437 4% Building 193,518,445 165,607,785 17% Other revenues 45,112,440 42,185,733 7% 493,874,164 453,356,955 9% +13% y-o-y Construction contracts 1,745,622 61,801,659 -97% Reven
Slide 12: Robust Leasing Activity
Robust Leasing Activity Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) 550 493 453 89,914 89,914 450 350 43% 46% 250 59,000 150 31% 32% 50 8% 8% -50 3M 2018 3M 2019 % to Total Revenues 86% 83% Land (PHP mm) 246 255 Building 166 194 2017 2018 3M 2019 Other Revenues 42 45 Pe
Slide 13: Superior Profitability Scorecard
Superior Profitability Scorecard Gross Profit (PHP mm) Operating Profit (PHP mm) 87% 80% 67% 57% 475 461 356 342 3M 2018 3M 2019 3M 2018 3M 2019 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attributable to Equity Holders of the Parent (PHP m
Slide 14: Low Leverage, High Financial Liquidity
Low Leverage, High Financial Liquidity Debt To Equity(1) (%) Return on Equity(2) (%) 20% 29% 14% 13% 11% 10% 2017 2018 3M 2019 2017 2018 3M 2019 Current Ratio(3) (x) Assets to Equity(4) (x) 2.35x 1.61x 1.58x 1.64x 1.65x 0.75x 2017 2018 3M 2019 2017 2018 3M 2019 Notes: All data as at December 31 of e
Slide 15: Use of Proceeds
Use of Proceeds Application Balance of the Allocation of Application for the quarter Offering Proceeds Offering Proceeds as of 31 Dec 2018 ended 31 Mar 2019 as of 31 Mar 2019 Pipeline project development ₱ 3,731,213,878 ₱ 491,657,589 ₱ 110,389,102 ₱ 3,129,167,187 Land assets 2,880,101,954 - - 2,880,
Slide 16: Summary
SinceParqal, 2013, Aseana our newest Business mixed-use Park Estate development Association stretching (ABPEA)from has partnered Diokno Ave. with to regulatory authorities Macapagal in developing Ave.isand setimplementing to breathe colorful a comprehensive vibe into Aseana program City. to Combined
Slide 17: Summary: 1Q 2019 Highlights
Summary: 1Q 2019 Highlights 1Q 2019 Summary 2019 Outlook • Recurring income from rentals grew 9% to • Residential P493.9 million or 83% of total revenues • Unbooked revenues of P1.2 billion from • Average lease rate in Aseana One up by Pixel Residences for recognition 40% year-on-year to P870 per sq
Slide 18: Q&A
Parqal, a low-rise mixed-use main street concept adjacent to a greenway Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 17
Slide 19: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 3M 2019 3M 2018 Change (%) Rentals Land P 255,243,279 P 245,563,437 4% Building 193,518,445 165,607,785 17% Other revenues 45,112,440 42,185,733 7% 493,874,164 453,356,955 9% Construction contracts 1,745,622 61,801,659 -97% Sale of condominium
Slide 20: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 31 Mar 2019 31 Dec 2018 Current Assets 15,021,996,328 14,766,421,688 Non-current Assets 15,498,653,738 14,895,230,939 Investment in Shares of Stock Held for termination 127,062,953 127,062,953 Total Assets P 30,647,713,019 P 29,788,715,580
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