D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — FY2019 Earnings Presentation
28 slides from D.m. Wenceslao & Associates's earnings presentation, Feb 20, 2020
Slide 1: FY 2019 Analyst Briefing
FY 2019 Analyst Briefing 20 February 2020 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: Points of Focus, Development Pipeline, Operating and Financial Highlights
Parqal, a word play on “Park” and “Kalye”, is a five-hectare development with leasable gross floor area of 70,000 sq.m. It is composed of nine independent four-story buildings that will occupy two blocks of Macapagal Boulevard. Its architectural expression has a modernized approach towards form, cha
Slide 4: Updated summary of land holdings in Aseana City
Updated summary of land holdings in Aseana City Remaining Land Reserves (303,836 sq.m.) Land Used/Allocated for Development Land Allocated (265,523 sq.m.) for Future Sales (7,798 sq.m.) Completed Land Allocated for Properties Future Leases (38,420 sq.m.) (20,103 sq.m.) Land Holdings Land Leased (569
Slide 5: Value of properties in Aseana City rises to P209.8 billion, up 30% YoY
Value of properties in Aseana City Rises to P209.8 billion, up 30% YoY 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 Parkside right of way Residences Place 2 Land curre
Slide 6: Sale of land for P425,000/sq.m., up 70% from 2017 (1/2)
Sale of land for P425,000/sq.m., up 70% from P250,000/sq.m. in 2017 (1/2) LOT AREA: S Q UA R E M E T E R S E. ROMEO DRIVE COR. BROCKA STREET, ASEANA CITY, PARAÑAQUE CITY P935.85 million Transaction amount Cost of sale 7% 93% Gross profit margin Aseana City P425,000/ sq.m. Land price 5
Slide 7: Sale of land for P425,000/sq.m., up 70% from 2017 (2/2)
Sale of land for P425,000/sq.m., up 70% from P250,000/sq.m. in 2017 (2/2) Prices of sold land per sq.m. (PHP’000) Land sales transactions since 2015 CAGR (2015 – 2019) = 36% CAGR (2008 – 2019) = 17%* CAGR (2006 – 2019) = 21%** Date of Sales 425 Land Area Contract (₱ mm) 3.4x +70% Purchaser (sq.m.) U
Slide 8: Well situated in both office and residential segments (1/2)
Well situated in both office and residential segments (1/2) Metro Manila Office Supply Forecast, end 2019 and 2022 (1) Future Office Supply Highest in Manila Bay from 2020-2022 (1) end of end of change in % % to new 14,952,600 sq.m. 2020 – 2022 supply 2020 – 2022 demand Location 2019 2022 sq.m. chan
Slide 9: Well situated in both office and residential segments (2/2)
Well situated in both office and residential segments (2/2) Metro Manila Residential Supply Forecast, end 2019 and 2022 (1) Bay Area to Account for 68% of New Supply from 2020-2022 (1) end of end of change % % to new Location 2019 2022 in units change supply 2020 – 2022 supply 2020 – 2022 demand 158
Slide 10: Development Pipeline
Aseana Plaza (formerly Aseana Five and Six) 3 Points of Focus 9 Development Pipeline 12 Operating and Financial Highlights 20 Summary 9
Slide 11: Pipeline of premier assets under construction inside Aseana City
Pipeline of premier assets under construction inside Aseana City Aseana Plaza (formerly Aseana Five and Six) Parqal MidPark Towers 8912 Asean Ave. 10
Slide 12: and outside of Aseana City
and outside of Aseana City 58 Jupiter in Makati City 11
Slide 13: Operating and Financial Highlights
Aseana Plaza (formerly Aseana Five and Six) 2 Points of Focus 9 Development Pipeline 12 Operating and Financial Highlights 20 Summary 12
Slide 14: Stable recurring income sources and growing residential segment
Stable recurring income sources and growing residential segment PHP 2019 2018 Change (%) Rentals Land P 979,051,345 P 965,248,664 1.4% Building 793,491,115 762,108,933 4.1% Other revenues 186,239,052 173,841,016 7.1% 1,958,781,512 1,901,198,613 3.0% +63% y-o-y Land sales 935,850,000 1,252,800 74,600
Slide 15: In focus: Leasing
In focus: Leasing Ayala Land revenue Land contribution P1,958.8M % to land % to our lease with Ayala Land provides for a We pay particular attention to recurring income sources to provide leases total minimum guaranteed us with higher earnings visibility. We primarily target traditional rent or, if
Slide 16: In focus: Residential
In focus: Residential Residential sales % to Revenue total revenues P547.7M contribution 2017 2% We are complementing the speed of development in the area with 16% from 6% in 2018 on 2018 6% residential offerings in the mid-income and upscale categories, increased accounts that ranging in size from
Slide 17: Robust leasing activity reflects high level of sustainability
Robust leasing activity reflects high level of sustainability Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.) Total recurring revenues 1,901 1,959 2,000 89,914 89,914 1,500 45% 28% 59,000 1,000 500 35% 23% 0 8% 5% 2018 2019 % to Total Revenues 88% 56% Land (PHP mm) 965 979
Slide 18: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 84% 84% 80% 78% 64% 65% 2,339 1,806 2,807 2,158 1,372 2,267 2017 2018 2019 2017 2018 2019 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm)
Slide 19: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 20% 29% 14% 12% 11% 3% 2017 2018 2019 2017 2018 2019 Current Ratio(3) (x) Asset to Equity(4) (x) 2.35x 1.61x 1.52x 1.64x 1.56x 0.75x 2017 2018 2019 2017 2018 2019 Notes: All data as at December 31 of each ye
Slide 20: Progress Report on Use of proceeds
Progress Report on Use of proceeds Application Balance of the Allocation of Application for the quarter Offering Proceeds Offering Proceeds as of 30 Sep 2019 ended 31 Dec 2019 as of 31 Dec 2019 Pipeline project development ₱ 3,731,213,878 ₱ 1,745,947,761 ₱ 250,455,941 ₱ 1,734,810,176 Land assets 2,8
Slide 21: Summary
Aseana Plaza (formerly Aseana Five and Six) 2 Points of Focus 9 Development Pipeline 12 Operating and Financial Highlights 20 Summary 20
Slide 22: Summary: FY 2019 highlights
Summary: FY 2019 highlights FY 2019 Summary 2020 Outlook • Appraised values of our properties in Aseana • Recurring income to see increases in occupancy, City were valued at P209.8 billion, 30% higher rents and ancillary revenues from leasing of than the prior year, according to Colliers land and bu
Slide 23: Q&A
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 Q&A www.dmwai.com www.aseanacity.com 22 iro@dmwai.com 22
Slide 24: Event after reporting period: MOU with St. Luke's Medical Center
Event after reporting period: MOU with St. Luke’s Medical Center About St. Luke’s Medical Center St. Luke’s Medical Center is recognized as the leading and most respected healthcare institution in the Philippines. Its two facilities in Quezon City and Global City, Taguig have a combined total of 1,1
Slide 25: Event after reporting period: MOU with St. Luke's Medical Center
Event after reporting period: MOU with St. Luke’s Medical Center TERM LOT AREA YEARS S Q UA R E M E T E R S 24
Slide 26: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 2019 2018 Change (%) Rentals Land P 979,051,345 P 965,248,664 1.4% Building 793,491,115 762,108,933 4.1% Other revenues 186,239,052 173,841,016 7.1% 1,958,781,512 1,901,198,613 3.0% Land sales 935,850,000 1,252,800 74,600.7% Construction contra
Slide 27: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 31 Dec 2019 31 Dec 2018 Current Assets 13,310,339,496 14,766,421,688 Non-current Assets 17,965,820,603 14,895,230,939 Investment in Joint Venture Held for termination - 127,062,953 Total Assets P 31,276,160,099 P 29,788,715,580 Current Liab
Slide 28: Sale of land for P425,000/sq.m.
Sale of land for P425,000/sq.m. 27
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