D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Investor Presentation (January 2021)
46 slides from D.m. Wenceslao & Associates's investor presentation, January 2021
Slide 1: D.M. Wenceslao & Associates, Incorporated Management Presentation
D.M. Wenceslao & Associates, Incorporated (“DMW”) Management Presentation
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: Key Presenters
Key Presenters Heherson M. Asiddao Julius Guevara Reiko G. Yaeo Chief Finance Officer VP for Corporate Planning Investor Relations Officer Page 3
Slide 4: Table of Contents
Table of Contents Section 1. DMW at a Glance 2. Key Investment Highlights 3. Business Strategies 4. Financial Highlights 5. Response to the Covid-19 Pandemic Page 4
Slide 5: DMW at a Glance
DMW at a Glance “0D. M. WENCESLAO \\'] AND ASSOCIATES, INCORPORATED Page 5
Slide 6: The Company at a Glance
The Company at a Glance… 55 YEARS IN BUSINESS AAAA PCAB LICENSE 140 CONST. PROJECTS 3 RESIDENTIAL CONDOS 13 COMMERCIAL BLDGS. Residential Commercial Construction 71 HAS. LANDBANK Other Businesses RES’L GFA (SQM): 60,000 COMM’L GLA (SQM): 90,712 MARKET CAP*: 25 B NPAT**: 2.4 B *as of Dec 30, 2020 (in
Slide 7: 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 Land Reclamation Land Sales and Property Commercial 1 Construction 2 3 Leasing 4 Development 5 Building Leasing ◼ Lic
Slide 8: Key Milestones – Demonstrating Execution Track Record
Key Milestones – Demonstrating Execution Track Record 2017 2018 2016 ▪ Pixel Residences fully pre-sold ▪ Completion of Aseana Three 1979 ▪ Completion of construction of ▪ DMW lists on the PSE Undertook pile driving ▪ Pixel Residences starts Aseana Square ▪ 8912 Asean Ave. commences works for Frabel
Slide 9: 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 10: Key Investment Highlights
Key Investment Highlights Page 10
Slide 11: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well-positioned for Future Growth Favorable Acquisition Costs for Our Land Holdings Provide a Solid Foundation for Value Appreciation and 2 Profitability 3 A Diversified Earnings Base With Substantial and Recurring
Slide 12: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well-positioned for Future Growth Favorable Acquisition Costs for Our Land Holdings Provide a Solid Foundation for Value Appreciation and 2 Profitability 3 A Diversified Earnings Base With Substantial and Recurring
Slide 13: Aseana City – Conveniently Located and Anchored by Tourism, Recreational Developments and Retail Malls
Aseana City – Conveniently 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 Boulevard within Parañaque City Ortigas CBD (<12km) Extensive Transport Network ✓ 5 – 10 min
Slide 14: A Strategic and Sizeable Land Bank in Aseana City
A Strategic and Sizeable Land Bank in AseanaCity Positioned as the next major mixed-use CBD in Metro Manila anchored by tourism, recreational developments and retail malls Remaining Land Reserves (299,484 sq.m.) Land Used/Allocated for Development Land Allocated (269,875 sq.m.) for Future Sales (7,7
Slide 15: DMW’s Land Holdings, Completed Properties and Pipeline Projects in Aseana City
DMW’s Land Holdings, Completed Properties and Pipeline Projects in Aseana City Owned Land Holdings Completed Properties(1) Pipeline Properties Land area (sq.m.) Total leasable/saleable floor area (sq.m.) Leasable/saleable floor area (sq.m.) Roads and Pixel One Parq right of way Residences Suites Lan
Slide 16: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well-positioned for Future Growth Favorable Acquisition Costs for Our Land Holdings Provide a Solid Foundation for Value Appreciation and 2 Profitability 3 A Diversified Earnings Base With Substantial and Recurring
Slide 17: Rapidly Appreciating Land Holdings Secured at Low Cost
Rapidly Appreciating Land Holdings Secured at Low Cost Land secured at low cost relative to current market prices as it was obtained in consideration of our land reclamation services Valuation per sq.m. (PHP’000) 858 828 830 800 782 655 CAGR (2006 – 2019) = 21% CAGR (2015 – 2019) = 36% 425 390 354 3
Slide 18: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well-positioned for Future Growth Favorable Acquisition Costs for Our Land Holdings Provide a Solid Foundation for Value Appreciation and 2 Profitability 3 A Diversified Earnings Base With Substantial and Recurring
Slide 19: A Diversified Earnings Base with Substantial and Recurring Revenue Streams
A Diversified Earnings Base with Substantial and Recurring Revenue Streams Increasing Land Leasing Revenues Due to Scarcity of Leasable Land in Metro Manila (In PHP mm) 965.2 979.1 Leasing of 919.4 Land Holdings 2017 2018 2019 Increasing Building Leasing Revenues with Strong Office Demand in Manila
Slide 20: Key Investment Highlights
Key Investment Highlights 1 A Strategic and Sizeable Land Bank in Aseana City that is Well-positioned for Future Growth Favorable Acquisition Costs for Our Land Holdings Provide a Solid Foundation for Value Appreciation and 2 Profitability 3 A Diversified Earnings Base With Substantial and Recurring
Slide 21: Well-positioned to Weather the Impact of the Covid-19 Pandemic (1/3)
Well-positioned to Weather the Impact of the Covid-19 Pandemic (1/3) 1 Strong Economic Rebound in the Succeeding Years 2 Improving Investment Grade Ratings Rating 91.0 92.6 94.2 96.5 98.2 99.9 101.6 103.2 104.9 106.6 107.3 108.9 Baa1/BBB+ Baa2/BBB 10.0% Baa3/BBB- 7.7% 6.8% 7.1% 6.1% 5.9% 6.9% 6.7% 6
Slide 22: Well-positioned to Weather the Impact of the Covid-19 Pandemic (2/3)
Well-positioned to Weather the Impact of the Covid-19 Pandemic (2/3) 2021 to mark a period of recovery with office vacancies improving… …and Office rents recovering by 2022 1,000,000 9% 1,200 25% 8.3% 20% 8% 1,000 800,000 7.5% 15% Percentage Growth 7% 6.5% 800 10% PHP/sqm/mo. 600,000 5.9% 6% 5.5% 5%
Slide 23: Well-positioned to Weather the Impact of the Covid-19 Pandemic (3/3)
Well-positioned to Weather the Impact of the Covid-19 Pandemic (3/3) Metro Manila Residential Supply Forecast, end 2019 and 2021 (1) Future Supply Concentrated in Manila Bay and Fort Bonifacio (1) end of end of change % % to new Location 2019 2022 in units change supply 2020 – 2022 supply average: 7
Slide 24: Business Strategies
Business Strategies “0D. M. WENCESLAO \\'] AND ASSOCIATES, INCORPORATED Page 24
Slide 25: Business Strategies
Business Strategies 1 Grow Aseana City into a “Next Generation” CBD within Metro Manila 2 Develop a portfolio of high-quality real estate projects 3 Multi-pronged Approach to Growing our Land Bank 4 Enhance our earnings base and grow our recurring income streams Page 25
Slide 26: Grow Aseana City into a “Next Generation” CBD within Metro Manila
Grow Aseana City into a “Next Generation” CBD within Metro Manila 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 m
Slide 27: Grow Aseana City into a “Next Generation” CBD within Metro Manila (Cont’d)
Grow Aseana City into a “Next Generation” CBD within Metro Manila (Cont’d) Page 27
Slide 28: Develop a Portfolio of High-Quality Real Estate Projects
Develop a Portfolio of High-Quality Real Estate Projects Commercial Leasing Residential Sales 8912 Asean Ave. Aseana Plaza Parqal Pixel Residences MidPark Towers One Parq Suites ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted ▪ Launch Date: 2022
Slide 29: Multi-Pronged Approach to Growing Our Land Bank
Multi-Pronged Approach to Growing Our Land Bank Strategic acquisitions of land assets or purchase land from WHI with whom DMW has a ROFR Pursue strategic and opportunistic acquisition of land and other properties outside Aseana City Opportunistically undertake large-scale and complex Government and
Slide 30: Enhance Our Earnings Base and Grow our Recurring Income Streams (Cont’d)
Enhance Our Earnings Base and Grow our Recurring Income Streams (Cont’d) Land Leasing Commercial Leasing Allocate at least 5,000 sq.m. of Five planned commercial land for long-term leasing and developments targeting at BPOs, 2,000 sq.m. of non-core land for POGOs, logistics companies and sale each y
Slide 31: Aseana City Master Plan
Aseana City Master Plan Page 31
Slide 32: Financial Highlights
Financial Highlights Page 32
Slide 33: Robust Top-line Growth Driven By Steady Recurring Income
Robust Top-line Growth Driven By Steady Recurring Income Revenues (PHP mm) Key Events: Key Events: Key Events: Key Events: ◼ Sale of 2,521 sq.m. of land to Uni-Asia ◼ Completion and full occupancy ◼ New lease and renewal leases for ◼ Continued upsurge in revenue led by ◼ Completion and full occupanc
Slide 34: Profit Expansion Supported by Strong Profit Margins from Rentals and Land Sales
Profit Expansion Supported by Strong Profit Margins from Rentals and Land Sales Gross Profit (PHP mm) Operating Profit (PHP mm) 58% 59% 76% 73% 1,126 1,308 1,480 1,595 9M 2019 9M 2020 9M 2019 9M 2020 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Pro
Slide 35: Strong Performance Across All Operational Metrics
Strong Performance Across All Operational Metrics Recurring Income Contribution(1) (67%) Total Leasable Floor Area(2) (sq.m.)* 90,712 45% 28% 33% 35% 23% 28% 89,914 89,914 8% 5% 6% 2018 2019 9M 2020 % to Total Revenues 88% 56% 67% Land (PHP mm) 965 979 733 Building 762 793 611 2018 2019 2020 Other R
Slide 36: Improving Debt Serviceability, Sustainable Returns & Working Capital
Improving Debt Serviceability, Sustainable Returns & Working Capital Debt To Equity(1) (%) Return on Equity(2) (%) 14% 12% 12% 11% 3% 2% 2018 2019 9M 2020 2018 2019 9M 2020 Current Ratio(3) (x) Assets to Equity(4) (x) 1.61x 1.61x 1.63x 1.64x 1.56x 1.49x 2018 2019 9M 2020 2018 2019 9M 2020 Notes: All
Slide 37: A Strong Financial Position Based on Prudent Financial Management
A Strong Financial Position Based on Prudent Financial Management Support from Leading Local Financial Net Debt/(net cash)(1) (PHP mm) Debt to Equity(2) (%) Institutions 11% 2018 2019 9M 2020 3% 2% (5,530) (7,020) (6,760) 2018 2019 9M 2020 Healthy borrowing profile and conservative funding strategy
Slide 38: Historical & Planned Capital Expenditure
Historical & Planned Capital Expenditure Historical & Planned Capital Expenditure (PHP mm) Historical Planned 5,123 4,755 3,433 2,815 1,379 849 2017 2018 2019 2020A 2021E 2022E ◼ Projected capital expenditure relates primarily to the development of pipeline projects ◼ Proceeds of IPO, together with
Slide 39: Progress Report on Use of Proceeds
Progress Report on Use of Proceeds Pixel Residences P256M 8912 Asean Ave. P1.5B Parqal P1.1B MidPark Towers P486M Aseana Plaza P217M Total applied offering proceeds as of Sept 30, 2020 Page 39
Slide 40: FY 2020 Highlights
FY 2020 Highlights 9M 2020 Summary 2020 Outlook • Sustained top-line growth of 13% to P2,200.4 million • Continued upsurge in revenue led by the from P1,945 million year-on-year. residential segment: • 67% increase in residential sales, up to P707.3 million • Pixel Residences: Ongoing turnover and w
Slide 41: Response to the Covid-19 Pandemic
Response to the Covid-19 Pandemic Page 41
Slide 42: Supporting our Business Partners through these Trying Times
Supporting our Business Partners through these Trying Times ✓ More market-friendly terms such as no escalation and lower rates were introduced to our smaller tenants* ✓ Rent discounts and other concessions like rent deferment and waiving of penalties were provided to our retail lessees* *All concess
Slide 43: Expanding Reach to Clients: Adopting to the New Normal
Expanding Reach to Clients: Adopting to the New Normal ✓ Monthly virtual presentations and webinars via Zoom/MS Teams to tap clients wherever they are, in lieu of open houses and usual marketing events ✓ Bringing our residential projects closer to our market through hosted tours that warmly showcase
Slide 44: The Health and Safety of our Employees and Other Stakeholders Remain as our Top Priority
The Health and Safety of our Employees and Other Stakeholders Remain as our Top Priority ✓ Preventive measures were taken as early as January when the news of the virus first came out ✓ Allotted a Php100 million emergency contingency fund for its employees and tenants to ensure continuance of wages,
Slide 45: Covid-19 Aid: Extending a Helping Hand to the Community
Covid-19 Aid: Extending a Helping Hand to the Community ✓ Donated 100 sacks of rice and rapid test kits to the city of Paranaque through the Office of Mayor Edwin Olivarez Page 45
Slide 46: www.dmwai.com iro@dmwai.com
www.dmwai.com iro@dmwai.com Page 46
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