D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — FY2018 Earnings Presentation
23 slides from D.m. Wenceslao & Associates's earnings presentation, Feb 18, 2019
Slide 1: FY 2018 Analyst Briefing
D.M. Wenceslao & Associates, Incorporated FY 2018 Analyst Briefing 18 February 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, Development Pipeline, Operating and Financial Highlights
Aseana City, our development project with total land area of 107.5 hectares located along the coastal waters of Manila Bay bordering the City of Pasay and the City of Parañaque 6 Points of Focus 11 Development Pipeline 16 Operating and Financial Highlights 23 Summary 2
Slide 4: Summary of Land Holdings in Aseana City
Summary of Land Holdings in Aseana City Positioned as the next major mixed-use CBD in Metro Manila anchored by tourism, recreational developments and retail malls Remaining Land Reserves (313,415 sq.m.) Land Used/Allocated Land Allocated for for Development Future Sales (262,862 sq.m.) (10,000 sq.m.
Slide 5: Value of Properties Rises 21% YoY to P161B
Value of Properties Rises 21% YoY to P161B Owned Land Holdings Completed Properties(1) Pipeline Properties Land area (sq.m.) Total leasable floor area (sq.m.) Leasable/saleable floor area (sq.m.) Aseana Town Parkside Roads and right of way Land currently Aseana Center MidPark Place 2 14,016 leased P
Slide 6: Rapidly Appreciating Land Holdings Secured at Low Cost
Rapidly Appreciating Land Holdings Secured at Low Cost Valuation per sq.m. (PHP’000) 985 805 782 655 561 500 CAGR = 21% 390 300 319 255 273 234 31.5 2006 2018 2018* 2019F 2017 2018 2019F 2017 2018 2019F 2017 2018 2019F Aseana City Ortigas CBD Fort Bonifacio Makati CBD Source: Colliers 4Q2018 Propert
Slide 7: Stable Economic Growth Fuels Office Demand
Stable Economic Growth Fuels Office Demand Competitive Grade A Office Capital Values and Rent (1) Key Factors 100,000 1 Firm Macro Environment Capital Value Rent 2,000 80,000 USD/sq.m./year 1,600 ▪ Steady development of the USD/sq.m. Philippine economy with a 60,000 1,200 healthy start to 2019 buoye
Slide 8: Differentiation To Keep Brisk Residential Sales
Differentiation To Keep Brisk Residential Sales Key Trends Average Residential Condominium Prices (PHP ‘000/sq.m.) Vertical developments such as condominiums have become a popular 241 choice among local and foreign homeowners and investors. 214 205 200 The total number of condo units built in the pa
Slide 9: Development Pipeline
MidPark Towers, our second residential development with total saleable floor area of approximately 42,000 sq.m. and leasable floor area of 2,000 sq.m. 6 Points of Focus 11 Development Pipeline 16 Operating and Financial Highlights 23 Summary 8
Slide 10: Office and Retail Updates: 8912 Asean Ave. and Parqal
Office and Retail Updates: 8912 Asean Ave. and Parqal 8912 Asean Ave. April 2018 68,000+ groundbreaking sq.m. leasable GFA 15 40,000+ floors with highly flexible sq.m. offers received specifications in 2H 2018 Dec 2020 95% target turnover from traditional companies Parqal Office & Retail 67,000+ use
Slide 11: Residential Updates: MidPark Towers
Residential Updates: MidPark Towers 4 towers 669 units 36—108 10—11 sq.m. unit sizes residential floors P9 billion ≈42,000 estimated project value sq.m. saleable floor area towers units 2 launched 309 launched Nov 20 P200,000 launch date base price per sq.m. Base price, exclusive of 12% value-added
Slide 12: Case Study
Case Study Pixel Residences 2016 170 units year launched <20 P125,000 units sold in three months per sq.m. base price since launch <12 P1.7 billion months pre-selling project value P1.3 billion unrecognized revenues MidPark Towers 2018 309 year launched units launched >160 P200,000 units sold in one
Slide 13: Operating and Financial Highlights
6 Points of Focus 11 Development Pipeline 16 Operating and Financial Highlights 23 Summary 12
Slide 14: Focus on Recurring Income Over Land Sales
Focus on Recurring Income Over Land Sales PHP 2018 2017 Change (%) Rentals Land P 965,248,664 P 919,417,814 5% Building 762,108,933 429,701,872 77% Other revenues 173,841,016 91,687,180 90% 1,901,198,613 1,440,806,866 32% +23% y-o-y Construction contracts 130,524,057 202,132,945 -35% Net income grow
Slide 15: Robust Leasing Activity
Robust Leasing Activity Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) 1,901 1,950 89,914 1,441 1,450 1,271 45% 950 33% 56,863 59,000 41% 35% 45,432 450 16% 15% 3% 3% 8% -50 2016 2017 2018 % to Total Revenues 60% 52% 88% Land (PHP mm) 861 919 965 Building 345 430 762 2015
Slide 16: Superior Profitability Scorecard
Superior Profitability Scorecard Gross Profit (PHP mm) Operating Profit (PHP mm) 84% 84% 78% 67% 65% 59% 2,339 1,806 1,866 1,651 1,359 1,265 2016 2017 2018 2016 2017 2018 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit Attributable to Equity Ho
Slide 17: Low Leverage, High Financial Liquidity
Low Leverage, High Financial Liquidity Debt To Equity(1) (%) Return on Equity(2) (%) 18% 33% 16% 26% 13% 10% 2016 2017 2018 2016 2017 2018 Current Ratio(3) (x) Assets to Equity(4) (x) 3.02x 3.34x 3.03x 1.99x 1.41x 1.55x 2016 2017 2018 2016 2017 2018 Notes: 1. Our debt to equity ratio is derived by d
Slide 18: Use of Proceeds
Use of Proceeds Application of the Application of the Offering Proceeds Balance of the Allocation of Offering Proceeds for the quarter Offering Proceeds Offering Proceeds as of Sep 30, 2018 ended Dec 31, 2018 as of Dec 31, 2018 Pipeline project development ₱ 3,731,213,878 ₱ 449,821,429 ₱ 41,836,160
Slide 19: Summary
Parqal, our newest mixed-use development stretching from Diokno Ave. to Macapagal Ave.is set to breathe colorful vibe into Aseana City. Combined office and retail spaces will account for 67,000 sq.m. of leasable GFA. 6 Points of Focus 11 Development Pipeline 16 Operating and Financial Highlights 23
Slide 20: Summary: FY 2018 Highlights
Summary: FY 2018 Highlights 2018 Summary 2019 Outlook • Recurring income from rentals up 32% to • Residential P1,901.2 million or 88% of total revenues • Unbooked revenues of P1,342 million • Completion of Aseana Three raises from Pixel Residences for recognition building rental and other revenues r
Slide 21: 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 20
Slide 22: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 2018 2017 2016 Rentals Land P 965,248,664 P 919,417,814 P 860,514,881 Building 762,108,933 429,701,872 344,601,606 Other revenues 173,841,016 91,687,180 65,930,007 1,901,198,613 1,440,806,866 1,271,046,494 Construction contracts 130,524,057 202
Slide 23: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 2018 2017 2016 Current Assets 16,242,213,188 8,161,705,249 6,762,810,753 Non-current Assets 18,974,163,310 20,823,495,190 20,020,157,345 Investment in Shares of 2,866,289,204 – – Stock Held for termination Total Assets P 38,082,665,702 P 28
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