D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Investor Presentation (April 2023)
50 slides from D.m. Wenceslao & Associates's investor presentation, April 2023
Slide 1: DMW Management Presentation
DMW Management Presentation April 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: Company Background Key Investment Highlights Notable Transactions in 2022
2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022 38 Operating and Financial Highlights 2 44 Sustainability and Accolades
Slide 4: The Company at a Glance
The Company at a Glance… 58 YEARS IN BUSINESS AAAA PCAB LICENSE 77 HAS. LANDBANK 56 HAS. INSIDE ASEANA 21 HAS. OUTSIDE ASEANA RESIDENTIAL COMMERCIAL CONSTRUCTION 162,351sqms Other Businesses COMMERCIAL GLA 166,015sqms LEASED OUT LAND 60,000sqms RESIDENTIAL GFA *as of November 2021 **Colliers’ valuat
Slide 5: The Company at a Glance
The Company at a Glance… Robust Balance Growing Income Rising Dividends Sheet 2,122 0.07 0.12x MEMBER OF PSE PROPERTY INDEX 1,882 Debt to Equity 0.06 1,677 Ratio P23 B 1,311 P2.4 B 0.05 0.05 MARKET CAPITALIZATION 927 Net Cash 0.04 Position P26 B 1.6x Current BOOK VALUE Ratio 2018 2019 2020 2021 2022
Slide 6: 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 166,015 sqms 4 Condo Projects 162,351 sqms GLA & projects reclaimed leased-out lan
Slide 7: Key Milestones – Demonstrating Execution Track Record
Key Milestones – Demonstrating Execution Track Record 2018-2019 ▪ Completion of Aseana Three ▪ DMW lists on the PSE ▪ Launch of MidPark Towers ▪ Groundbreaking of 8912 2003 2016 Asean Ave, MidPark Entered into first land Towers, 58 Jupiter, and 2012 ▪ Launch of lease and commenced Parqal Completion
Slide 8: Aseana City
de ASEANA CITY | 1984 D.M.WENCESLAO) 7 AND ASSOCIATES, INCORPORATED
Slide 9: Aseana City Taking Shape
Aseana City Taking Shape PARANAQUE CITY 1980’S | ASEANA cITY B .M.WENCESLAO) 3 AND ASSOCIATES, INCORPORATED
Slide 10: Aseana City Taking Shape
Aseana City Taking Shape -.M.WENCESLAO~ 9 AND ASSOCIATES, INCORPORATED =0=
Slide 11: Company Background Key Investment Highlights Notable Transactions in 2022
2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022 38 Operating and Financial Highlights 10 44 Sustainability and Accolades
Slide 12: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 11
Slide 13: Updated summary of land holdings in Aseana City
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 14: Aseana City – Strategically Located and Anchored by Tourism, Recreational Developments, and Retail Malls
Aseana City – Strategically 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 Roxas Ortigas CBD Boulevard within Parañaque City (<12km) ✓ Located within the estate are 1) the
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: 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 18: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 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 Holistic development for all lifestyles Global infrastructure & Balanced locator mix service standards Detailed Promote Regular Attractive development continued review tenant mix plan investments ✓ Update the maste
Slide 21: Holistic Estate Development
Holistic Estate Development 20
Slide 22: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 21
Slide 23: 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 22
Slide 24: Commercial Pipeline Milestones: PARQAL Construction Progress
Commercial Pipeline Milestones: PARQAL Construction Progress 89% 23
Slide 25: PARQAL Walkthrough
PARQAL Walkthrough []0.M, WENCESLAO PARQAL URBAN STREET LIFE REIMAGINED D.M.WENCESLAO 24 AND ASSOCIATES, INCORPORATED
Slide 26: Residential Pipeline Milestones: MIDPARK TOWERS
Residential Pipeline Milestones: MIDPARK TOWERS 25
Slide 27: 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 28: Thrived Amidst COVID-19 Pandemic and Macroeconomic Headwinds
Thrived Amidst COVID-19 Pandemic and Macroeconomic Headwinds 1 Core Net Income Higher than Pre-Pandemic Core Net Income* (Php Million) 2,122 1,882 1,677 1,311 2019 2020 2021 2022 2 Maintained and Grew Cash Dividends Amidst the Pandemic 1 Cash Dividends (Php/ Share) 0.07 0.06 0.05 0.05 2019 2020 2021
Slide 29: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 28
Slide 30: 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 31: DuPont Model
Driver of ROE: Net Income Margin DuPont Model 50% * 0.11x * 1.5x = 9% Net Income Asset Turnover Equity Multiplier ROE Margin Ratio 30
Slide 32: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Support from Leading Local Financial Net Debt/(net cash) (PHP mn) Institutions 2020 2021 2022 (2,384) (2,413) (3,617) Healthy borrowing profile and conservative funding strategy for land sales ▪ DMW maintains good relationships with and is well supporte
Slide 33: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank that is Well Positioned for Future Growth 2 An Integrated Master Developer Committed to Holistic Estate Development 3 In a Hyper-Growth Stage 4 Financial Strength Allows for the Ability to Sustain Growth 5 Grossly Undervalued 32
Slide 34: 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 35: 2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022
2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022 38 Operating and Financial Highlights 34 44 Sustainability and Accolades
Slide 36: 2022 Land Sale
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 35
Slide 37: 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 & 2022 Pre-Pandemic COVID Pandemic 36
Slide 38: 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 37
Slide 39: 2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022
2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022 38 Operating and Financial Highlights 38 44 Sustainability and Accolades
Slide 40: 2022 Net Income Rises to ₱2.1 Billion
2022 Net Income Rises to ₱2.1 Billion PHP 2022 2021 Change Rentals 2,173,884,157 1,992,191,838 +9% Land Sales 787,600,000 787,600,000 0% Sale of condominium units 1,250,744,538 615,411,761 +103% Construction contracts 8,036,115 51,509,315 -84% Total Revenues 4,220,264,810 3,446,712,914 +22% Gross pr
Slide 41: 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 42: 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 43: 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 44: 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 45: 2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022
2 Company Background 10 Key Investment Highlights 34 Notable Transactions in 2022 38 Operating and Financial Highlights 44 44 Sustainability and Accolades
Slide 46: Sustainability
Sustainability SUSTAINABILITY RATING REPORT pD.M. WENCESLAO 45 AND ASSOCIATES, INCORPORATED
Slide 47: 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 46
Slide 48: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 47
Slide 49: D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards
D.M. Wenceslao Celebrates Big Wins at the 10th Philippine Property Awards 48
Slide 50: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 49
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