D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — FY2021 Earnings Presentation
43 slides from D.m. Wenceslao & Associates's earnings presentation, Mar 31, 2022
Slide 1: FY 2021 Analysts' Briefing
FY 2021 Analysts’ Briefing March 31, 2021 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 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 2 37 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 17.5% from 2021-2024 change in % of total new 2022 – 2024 supply 15,020,668 sq.m. Location end of 2020 end of 2024 % change 250K sq.m. supply average: 691,269 sq.m. 202
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 65% of New Supply from 2022-2024 change in % to new end of 2020 end of 2024 % change Location units supply 2022F – 2024F supply average: 7,990 units 166,160 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 160.00 140.00 146mn doses administered 11 120.00 60% of PH population is fully vaccinated 100.00 PH average daily new cases ~500 well below peak of over 39,000 65 80.00 PH ICU Bed Occu
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 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 7 37 Sustainability
Slide 9: Updated summary of land holdings in Aseana City as of Dec 31, 2021
Updated summary of land holdings in Aseana City as of Dec 31, 2021 Remaining Land Reserves (305,329 sq.m.) Land Used/Allocated for Development Land Allocated (260,479 sq.m.) for Future Sales (6,008 sq.m.) Completed Land Allocated for Properties Future Leases (36,659 sq.m.) (20,103 sq.m.) Land Holdin
Slide 10: Value of properties inside of Aseana City
Value of properties inside of 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 right of way Land currently Aseana One One Parq 18,368 leased 20,189 31,857 150,444 Mi
Slide 11: Development Pipeline
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 10 37 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 64% 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 24% 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: Accessibility of Aseana City and the LRT 1 Cavite Extension
Accessibility of Aseana City will further be improved by the LRT 1 Cavite Extension 17
Slide 19: Notable Recent Transactions
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 18 37 Sustainability
Slide 20: December 2021 Land Sale (4Q2021)
December 2021 Land Sale (4Q2021) Block 3, Lot 4-D-1 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 19
Slide 21: January 2022 Land Sale (1Q2022)
January 2022 Land Sale (1Q2022) Block 3, Lot 4-D-2 1,790 Square Meters Php787.6 million Total Contract Price ex- VAT 93% Land Sale Gross Margin 20
Slide 22: 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 21
Slide 23: Landers Leased a Parcel of Land in Aseana City
Landers Leased a Parcel of Land in Aseana City Higher of Fixed Rate or Percentage of Sales Land Lease Scheme 15,064 25 Years Square Meters Lease Term 22
Slide 24: Operating and Financial Highlights
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 23 37 Sustainability
Slide 25: 2021 Core Earnings Higher than Pre-Pandemic
2021 Core Earnings Higher than Pre-Pandemic PHP 2021 2020 Change Rentals Land P967,938,663 P978,480,504 -1% Building 811,036,957 809,094,738 0% Other revenues 209,575,542 172,690,275 +21% 1,988,551,162 1,960,265,517 +1% Construction contracts 51,509,315 24,802,115 +108% P3.44 billion in total revenu
Slide 26: In focus: Leasing
In focus: Leasing P1.99B 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 o
Slide 27: 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 36% 28% 162,351 30% 24% 90,712 89,914 89,914 6% 6% 2020 2021 % to Total Revenues 72% 58% Land (PHP mm) 979 968 2018 2019 2020 2021 Building
Slide 28: In focus: Residential
In focus: Residential Residential sales % to Revenue contribution P615.4M total revenues We are complementing the speed of development in the area with 2018 6% Accounted for 25% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2019 16% accounts that me
Slide 29: Superior profitability scorecard consistent with resilient portfolio
Superior profitability scorecard consistent with resilient portfolio Gross Profit (PHP mm) Operating Profit (PHP mm) 84% 83% 80% 76% 72% 64% 65% 62% 1,806 2,819 2,071 2,845 1,372 2,271 1,707 2,486 2018 2019 2020 2021 2018 2019 2020 2021 Gross Profit Gross Profit Margin Operating Profit Operating Pro
Slide 30: Financial strength supports growth aspirations
Financial strength supports growth aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 14% 12% 14% 10% 11% 9% 6% 3% 2018 2019 2020 2021 2018 2019 2020 2021 Current Ratio(3) (x) Asset to Equity(4) (x) 1.61x 1.61x 1.67x 1.64x 1.47x 1.56x 1.51x 1.57x 2018 2019 2020 2021 2018 2019 2020 2021 Notes:
Slide 31: Capex and Dividends
Capex and Dividends Capital Expenditures (Phpmn) Dividend Per Share (Php) 4000 3715 3433 0.061 3500 3000 2815 0.047 0.047 2500 2037 0.035 2000 1500 1000 500 0 2019A 2020A 2021A 2022F 2019 2020 2021 2022 30
Slide 32: 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 31
Slide 33: Summary: FY 2021 highlights
Summary: FY 2021 highlights FY 2021 Summary 2022 Outlook • Consolidated revenues amounted to ₱3.4 billion, and net • The newly completed 69,000sqm GLA 8912 Asean Ave and income to parent stood at ₱2.1 billion in FY 2021. Core net the over 2,000sqm GLA 58 Jupiter are expected to post income jumped 44
Slide 34: COVID-19 Response
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 33 37 Sustainability
Slide 35: 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 36: Employee Vaccination Program
Employee Vaccination Program 35
Slide 37: Safety Seal – Certified Mixed Use and Office Buildings
Safety Seal – Certified Mixed Use and Office Buildings 36
Slide 38: Sustainability
2 Property Market Overview 7 Valuation of Assets in Aseana 10 Development Pipeline 18 Notable Recent Transactions 23 Operating and Financial Highlights 33 COVID-19 Response 37 37 Sustainability
Slide 39: DM Wenceslao's Five Pillars of Sustainability
DM Wenceslao’s Five Pillars of Sustainability 38
Slide 40: Corporate Sustainability Assessment Percentile Rank
Corporate Sustainability Assessment As of March 2022, DMW 73% performed in the top third in the Real Estate Industry in S&P Global Corporate Percentile Rank Sustainability Assessment. (100 being the highest) 39
Slide 41: Q&A
Q&A www.dmwai.com www.aseanacity.com 40 iro@dmwai.com 40
Slide 42: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 2021 2020 Change (%) Rentals Land P967,938,663 P978,480,504 -1% Building 811,036,957 809,094,738 0% Other revenues 209,575,542 172,690,275 +21% 1,988,551,162 1,960,265,517 +1% Construction contracts 51,509,315 24,802,115 +108% Sale of condomini
Slide 43: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 2021 2020 Current Assets 14,049,443,598 12,249,418,082 Non-current Assets 22,934,039,805 20,607,603,420 Total Assets P 36,983,483,403 P 32,857,021,502 Current Liabilities 8,407,529,858 8,356,600,808 Non-current Liabilities 4,351,775,428 2,2
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