D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — PSE STAR Investor Day 2024
47 slides from D.m. Wenceslao & Associates's conference presentation, Aug 15, 2024
Slide 1: PSE STAR August 15, 2024
PSE STAR August 15, 2024 D.M. WENCESLAO AND ASSOCIATES, INCORPORATED
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 5 Company Background 13 Key Investment Highlights 33 Operating and Financial Highlights 2 41 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2023 and 2027 POGO Ban Impact: It’s 2024, Not 2019 10% Location end of 2023 end of 2027F 1,300 1,297 1,295 1,292 1,290 1,287 1,284 1,282 1,279 1,277 1,274 1,271 1,269 1,266 1,264 1,261 9% 10% 1,258 1,256 1,253 1,251 1,248 1,2
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end-2023 and 2026 Location end of 2023 end of 2026 change in units % change % of new supply Alabang 5,660 8,440 2,780 49% 11% Araneta Center 5,140 5,140 0 0% 0% Eastwood City 9,630 9,630 0 0% 0% Fort Bonifacio 42,550 46
Slide 6: Agenda
2 Property Market Overview 5 Company Background 13 Key Investment Highlights 33 Operating and Financial Highlights 5 41 Sustainability
Slide 7: The Company at a Glance
The Company at a Glance… 59 YEARS IN BUSINESS AAAA PCAB LICENSE 83 HAS. LANDBANK 62 HAS. INSIDE ASEANA 21 HAS. OUTSIDE ASEANA RESIDENTIAL COMMERCIAL CONSTRUCTION 235,846 sqms Other Businesses COMMERCIAL GLA 186,246 sqms LEASED OUT LAND 60,000sqms RESIDENTIAL GFA *as of November 2021 **Colliers’ valu
Slide 8: The Company at a Glance
The Company at a Glance… Robust Balance Growing Income Rising Dividends Sheet P20 B 1,676 918 0.07x 0.08 MARKET CAPITALIZATION Debt to Equity 0.07 639 Ratio 0.06 P33 B 927 P1.7 B Net Cash 0.05 0.05 BOOK VALUE Position 0.04 P250 B 2.9x Current NET ASSET VALUE* Ratio 2018 2019 2020 2021 2022 2023 2018
Slide 9: 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 186,246 sqms 4 Condo Projects 235,846 sqms GLA & projects reclaimed leased-out lan
Slide 10: Key Milestones – Demonstrating Execution Track Record
Key Milestones – Demonstrating Execution Track Record 2022 - 2024 2014 - 2015 2017 ▪ Signed Contract of Lease with St. Luke’s for a 1.4ha lot in Aseana and subsequent lease ▪ Completion of ▪ Completion of expansion to 1.9ha total Aseana Two Aseana 3 Office ▪ Awarded the City of Building Dreams ▪ Com
Slide 11: Aseana City | 1984
de ASEANA CITY | 1984 BD.M. WENCESLAO 10 AND ASSOCIATES, INCORPORATED
Slide 12: Aseana City Taking Shape
Aseana City Taking Shape D.M.WENCESLAO 11 AND ASSOCIATES, INCORPORATED
Slide 13: Aseana City Taking Shape
Aseana City Taking Shape D.M.WENCESLAO 12 AND ASSOCIATES, INCORPORATED
Slide 14: Agenda
2 Property Market Overview 5 Company Background 13 Key Investment Highlights 33 Operating and Financial Highlights 13 41 Sustainability
Slide 15: 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 Key Project Completions Drive Sustained Growth 4 Growth Anchored on Robust Financial Standing 5 Grossly Undervalued 14
Slide 16: Updated summary of land holdings in Aseana City as of June 2024
Updated summary of land holdings in Aseana City as of June 2024 Land Used/Allocated Remaining Land Reserves for Development (311,881 sq.m.) (311,656 sq.m.) Land Allocated Completed for Future Sales Properties (4,218 sq.m.) (36,659 sq.m.) Land Allocated for Future Leases (4,532 sq.m.) Land Leased Lan
Slide 17: 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 18: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 Redemptorist-Aseana LRT Station 17
Slide 19: Aseana City Loop
Aseana City Loop Nie PIT + ASEANA CITY LOOP + WOR i "NORTHBOUND ROUTE > =) SOUTHBOUND ROUTE — PITx ) SM Mall of Asia PAVCIEIN EMS EWI SESY) ) St. John Paul II Chapel 8912 Asean Ave. ; ? Pargal (Abueva Drive) » Parqal (lmao Drive) ; Pargal (lmao Drive) St. John Paull Il Chapel Nissan (Bradco Ave.) Ni
Slide 20: 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 Key Project Completions Drive Sustained Growth 4 Growth Anchored on Robust Financial Standing 5 Grossly Undervalued 19
Slide 21: 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 22: 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 23: Holistic Estate Development
Holistic Estate Development 22
Slide 24: 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 Key Project Completions Drive Sustained Growth 4 Growth Anchored on Robust Financial Standing 5 Grossly Undervalued 23
Slide 25: Key Project Completions Drive Sustained Growth
Key Project Completions Drive Sustained Growth Total Building Leasable Floor Area (sq.m.) Office Retail and F&B 235,846 22% 162,351 162,351 15% 15% 90,712 78% 23% 85% 85% 77% 2020 2021 2022 2023-1H2024 8912 Asean Ave Parqal 58 Jupiter 24
Slide 26: Commercial Development Milestones: PARQAL
Commercial Development Milestones: PARQAL Commenced Operations Sep 30, 2023 25
Slide 27: Commercial Development Milestones: PARQAL
Commercial Development Milestones: PARQAL 26
Slide 28: Residential Pipeline: MIDPARK TOWERS
Residential Pipeline: MIDPARK TOWERS Construction Progress 84% 27
Slide 29: 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 30: 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 Key Project Completions Drive Sustained Growth 4 Growth Anchored on Robust Financial Standing 5 Grossly Undervalued 6 2
Slide 31: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 25% 14% 12% 8% 7% 9% 9% 6% 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Current Ratio(3) (x) Asset to Equity(4) (x) 2.8x 2.9x 1.7x 1.6x 1.5x 1.5x 1.4x 1.4x 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Notes: D
Slide 32: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Support from Leading Local Financial Net Debt/(net cash) (PHP mn) Institutions 2022 2023 1H2024 (1,790) (1,734) (2,413) Healthy borrowing profile ▪ DMW maintains good relationships with and is well supported by leading local ▪ DMW maintains strict finan
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 Key Project Completions Drive Sustained Growth 4 Growth Anchored on Robust Financial Standing 5 Grossly Undervalued 32
Slide 34: Value of DMW’s Aseana City Assets as of December 31, 2023
Value of DMW’s Aseana City Assets as of December 31, 2023 Colliers / Third Party Valuation of DMW’s Aseana City Assets PHP246 Billion Valuation of DMW’s Assets in Aseana Completed and Pipeline properties Land currently leased-out Php58B Php68B 28% 23% Php1.8 Billion Net Cash Position ~Php250 Billion
Slide 35: Agenda
2 Property Market Overview 5 Company Background 13 Key Investment Highlights 33 Operating and Financial Highlights 34 41 Sustainability
Slide 36: 1H2024 Net Income Rises to ₱918 million
1H2024 Net Income Rises to ₱918 million PHP 1H2024 1H2023 Change Rentals Land P 679,968,273 P 596,685,906 +14% Building 669,262,347 419,832,406 +59% Other revenues 223,161,822 155,465,397 +44% 1,572,392,442 1,171,983,709 +34% Land Sales - - N/A P1.8 billion Sale of condominium units 234,821,537 703,
Slide 37: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 1H2024 % to revenues Rentals Land P 679,968,273 37% Building & other rental 892,424,169 49% Sale of condominium units 234,821,537 13% Construction contracts 11,382,118 1% Total Revenues 1,818,596,097 Gross Pr
Slide 38: Opening 2024: The Landmark in Ayala Mall Manila Bay
Opening 2024: The Landmark in Ayala Mall Manila Bay 37 37
Slide 39: In Focus: Leasing
In Focus: Leasing P1.6 Billion 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.
Slide 40: Robust Leasing Activities
Robust Leasing Activities Recurring Income Contribution(1) (%) Total Leased Land Area (sq.m.) Total recurring revenues 186,246 186,246 166,015 37% 150,444 30% 37% 21% 8% 12% 1H2023 1H2024 % to Total Revenues 58% 86% Land (PHP mm) 597 680 Building 420 669 2021 2022 2023 1H2024 Other Revenues 155 223
Slide 41: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P234 Million total revenues We are complementing the speed of development in the area with 2021 18% Accounted for 13% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2022 30% accounts t
Slide 42: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 71% 77% 76% 72% 65% 64% 52% 3,245 2,486 2,728 2,845 2,930 2,136 1,383 1,158 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit (PHP mm
Slide 43: Summary and Outlook
Summary and Outlook 1H2024 Summary 2024 Outlook • Consolidated revenues amounted to ₱1.8 billion and net • Sustained strong tenant take-up across the portfolio, income rose to ₱918 million. particularly from logistics and traditional tenants, will continue to improve occupancy rates. • Leasing reven
Slide 44: Agenda
2 Property Market Overview 5 Company Background 13 Key Investment Highlights 33 Operating and Financial Highlights 43 41 Sustainability
Slide 45: D.M. Wenceslao’s Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 44
Slide 46: Corporate Sustainability Assessment: 89th Percentile Rank
Corporate Sustainability Assessment 89th Percentile Rank or Top 11% Among a global universe of S&P-assessed real estate companies as of Jan 2024 45
Slide 47: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 46
D.M. Wenceslao & Associates — PSE STAR Investor Day 2024 on 6ix