D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Q1 2022 Earnings Presentation
39 slides from D.m. Wenceslao & Associates's earnings presentation, May 17, 2022
Slide 1: 1Q 2022 Analysts' Briefing
1Q 2022 Analysts’ Briefing May 17, 2022 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: Agenda
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transaction/s 20 Operating and Financial Highlights 29 COVID-19 Response 2 33 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2020 and 2024 Manila Bay Future Office Supply to grow by 13.6% from 2021-2024 change in % of total new 2022 – 2024 supply 14,896,499 sq.m. Location end of 2020 end of 2024 % change 300K sq.m. supply average: 649,880 sq.m. Oth
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end 2020 and 2024 Bay Area to Account for 64% of New Supply from 2022-2024 change in % to new end of 2020 end of 2024 % change Location units supply 2022F – 2024F supply average: 8,210 units 166,820 units Alabang 4,880
Slide 6: High Vaccination Rate Allows for Continued Re-opening
High Vaccination Rate Allows for Continued Re-opening Vaccines Administered in mn First dose Second dose Third dose % of population: 160.00 First dose: 62% 140.00 Second dose: 62% 150mn doses administered Third dose: 12% 14 120.00 62% of PH population is fully vaccinated 100.00 PH average daily new
Slide 7: NCR and Other Key Areas Transitioned to Alert Level 1 since March 1
NCR and Other Key Areas Transitioned to Alert Level 1 since March 1 Alert Level 1 Alert Level 2 Alert Level 3 Alert Level 4 Alert Level 5 Age All ages allowed, All ages allowed, All ages allowed, Below 18 years old and Below 18 years old and subject to LGU Rules subject to LGU Rules subject to LGU R
Slide 8: Valuation of Assets in Aseana
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transaction/s 20 Operating and Financial Highlights 29 COVID-19 Response 7 33 Sustainability
Slide 9: Updated summary of land holdings in Aseana City as of March 31, 2022
Updated summary of land holdings in Aseana City as of March 31, 2022 Remaining Land Reserves (302,984 sq.m.) Land Used/Allocated for Development Land Allocated (261,034 sq.m.) for Future Sales (4,218 sq.m.) Completed Land Allocated for Properties Future Leases (36,659 sq.m.) (19,548 sq.m.) Land Hold
Slide 10: Value of properties inside of Aseana City as of December 31, 2021
Value of properties inside of Aseana City as of December 31, 2021 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 right of way Land currently Aseana One One Parq 18,368 leased
Slide 11: Development Pipeline
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transaction/s 20 Operating and Financial Highlights 29 COVID-19 Response 10 33 Sustainability
Slide 12: Commercial Milestones: 8912 Asean Ave.
Commercial Milestones: 8912 ASEAN AVE. July 15, 2020 Inaugurated: Oct 29, 2021 11
Slide 13: Commercial Milestones: 58 Jupiter
Commercial Milestones: 58 JUPITER Inaugurated: Dec 9, 2021 12
Slide 14: Commercial Pipeline Milestones: Parqal
Commercial Pipeline Milestones: PARQAL Construction Progress 70% 13
Slide 15: Hypergrowth Stage: Massive New and Upcoming Completions
Hypergrowth Stage: Massive New and Upcoming Completions Total Building Leasable Floor Area (sq.m.) +70,148 sqms +71,639 sqms 232,499 162,351 89,914 90,712 2019A 2020A 2021A 2022F 8912 Asean Ave Parqal 58 Jupiter 14
Slide 16: Residential Pipeline Milestones: MidPark Towers
Residential Pipeline Milestones: MIDPARK TOWERS Construction Progress 28% 15
Slide 17: 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 18: Notable Recent Transactions
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transaction/s 20 Operating and Financial Highlights 29 COVID-19 Response 17 33 Sustainability
Slide 19: January 2022 Land Sale
January 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 18
Slide 20: Land Sales Crystallize Value of Assets
Land Sales Crystallize Value of Assets 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 2021/1Q2022 Pre-Pandemic COVID Pandemic 19
Slide 21: Operating and Financial Highlights
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transaction/s 20 Operating and Financial Highlights 29 COVID-19 Response 20 33 Sustainability
Slide 22: 1Q2022 Core Net Income Jumps Almost Three-Fold YoY to ₱961 Million
1Q2022 Core Net Income Jumps Almost Three-Fold YoY to ₱961 Million PHP 1Q2022 1Q2021 Change Rentals Land P247,144,201 P257,292,441 -4% Building 214,578,527 192,336,160 +12% Other revenues 98,621,873 47,142,162 +109% 560,344,601 496,770,763 +13% Land Sales 787,600,000 - N/A P1.58 billion in total rev
Slide 23: In focus: Leasing
In focus: Leasing P560M Land We pay particular attention to recurring income sources to provide our lease with Ayala us with higher earnings visibility. We primarily target traditional Land provides for a companies, including logistics, BPOs, and gaming and tourism-related minimum guaranteed rent or
Slide 24: 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 162,351 162,351 16% 37% 13% 89,914 90,712 28% 7% 6% 1Q2021 1Q2022 % to Total Revenues 72% 35% Land (PHP mm) 257 247 2019 2020 2021 1Q2022 B
Slide 25: In focus: Residential
In focus: Residential Residential sales % to Revenue contribution P233.0M total revenues We are complementing the speed of development in the area with 2019 16% Accounted for 15% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2020 27% accounts that m
Slide 26: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 85% 77% 80% 76% 72% 65% 62% 2,819 2,845 2,271 2,486 2,071 1,707 1,351 1,218 2019 2020 2021 1Q2022 2019 2020 2021 1Q2022 Gross Profit Gross Profit Margin Operating Profit Operating
Slide 27: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 17% 14% 12% 13% 10% 9% 6% 3% 2019 2020 2021 1Q2022 2019 2020 2021 1Q2022 Current Ratio(3) (x) Asset to Equity(4) (x) 1.61x 1.67x 1.71x 1.47x 1.56x 1.51x 1.57x 1.56x 2019 2020 2021 1Q2022 2019 2020 2021 1Q202
Slide 28: Progress Report on Use of proceeds
Progress Report on Use of proceeds Pixel Residences P286M 8912 Asean Ave. P2.4B Parqal P2.4B MidPark Towers P540M Aseana Plaza P113M 27
Slide 29: Summary: 1Q 2022 highlights
Summary: 1Q 2022 highlights 1Q 2022 Summary 2022 Outlook • Consolidated revenues amounted to ₱1.6 billion, and core • The newly completed 69,000sqm GLA 8912 Asean Ave and net income to parent jumped almost three-fold to ₱961 the over 2,000sqm GLA 58 Jupiter are expected to post million from ₱365 mil
Slide 30: COVID-19 Response
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transactions 20 Operating and Financial Highlights 29 COVID-19 Response 29 33 Sustainability
Slide 31: DMWAI's Response to the COVID-19 Pandemic
DMWAI’s Response to the COVID-19 Pandemic Supporting our Business Partners Expanding Reach to Clients: through these Trying Times Adopting to the New Normal ✓ More market-friendly terms such as no escalation ✓ Monthly virtual presentations and webinars via and lower rates were introduced to our smal
Slide 32: Employee Vaccination Program
Employee Vaccination Program 31
Slide 33: Safety Seal – Certified Mixed Use and Office Buildings
Safety Seal – Certified Mixed Use and Office Buildings 32
Slide 34: Sustainability
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 17 Notable Recent Transactions 20 Operating and Financial Highlights 29 COVID-19 Response 33 33 Sustainability
Slide 35: DM Wenceslao's Five Pillars of Sustainability
DM Wenceslao’s Five Pillars of Sustainability 34
Slide 36: Corporate Sustainability Assessment Percentile Rank
Corporate Sustainability Assessment As of March 2022, DMW 73% performed in the top third in the Real Estate Industry of S&P Global Corporate Percentile Rank Sustainability Assessment. (100 being the highest) 35
Slide 37: Q&A
Q&A www.dmwai.com www.aseanacity.com 36 iro@dmwai.com 36
Slide 38: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1Q2022 1Q2021 Change (%) Rentals Land P247,144,201 P257,292,441 -4% Building 214,578,527 192,336,160 +12% Other revenues 98,621,873 47,142,162 +109% 560,344,601 496,770,763 +13% Land sales 787,600,000 - +100% Sale of condominium units 233,002,5
Slide 39: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1Q2022 2021 Current Assets 14,887,108,071 14,049,443,598 Non-current Assets 23,187,112,888 22,934,039,805 Total Assets P 38,074,220,959 P 36,983,483,403 Current Liabilities 8,691,439,400 8,407,529,857 Non-current Liabilities 4,339,571,205 4
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