D.M. Wenceslao & Associates, Incorporated (“DMW”) Management Presentation 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 expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. This presentation may not be all-inclusive and may not contain all the information that you may consider material. By preparing this presentation, none of DMW, its management, its advisers or any of their respective affiliates, shareholders, directors, employees, agents or advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. None of DMW, any of its advisers or any of their respective affiliates, shareholders, directors, employees, agents or advisers makes any expressed or implied representation or warranty as to the accuracy and completeness of the information contained herein and none of them shall accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice.
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This presentation does not constitute a prospectus, offering circular or other offering memorandum in whole or in part. This presentation does not form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of DMW or any of its subsidiaries or affiliates in any jurisdiction or as an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax or other product advice. There shall be no sale of any of DMW's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such state or jurisdiction. This presentation must not be distributed to the press or any media organization.
Page 1 Key Presenters
Delfin Angelo C. Wenceslao Heherson M. Asiddao Rachelle C. Paunlagui Chief Executive Officer Chief Finance Officer Investor Relations Officer
Page 2 Table of Contents
Section 1. DMW at a Glance 2. Key Investment Highlights 3. Business Strategies 4. Financial Highlights
Page 3 DMW at a Glance
Page 4 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
Commercial Property Land Sales and Land Construction 1 Building Leasing 2 Development 3 Leasing 4 Reclamation 5
◼ 8 existing developed ◼ 8 pipeline projects ◼ Owns one of the ◼ More than 50-year ◼ Licensed AAAA properties with (3 residential and largest and contiguous track record in contractor (less than leasable floor area of 5 commercial) with land holdings in Metro infrastructure 25 construction 89,914 sq.m. total saleable area of Manila construction and companies have this 85,000 sq.m. and land reclamation license in the ◼ 7 of which are ◼ With land holdings of total leasable floor with over 2.4 million Philippines(1)) located in Aseana 576,276 sq.m. in area of 290,000 sq.m. sq.m. of land City: Aseana One, Aseana City ◼ Holds a right to match reclaimed to date Aseana Two, Aseana ◼ Pixel Residences is the lowest bid or a ◼ 20,103 sq.m. Three, Aseana 100% pre-sold ◼ Able to secure land at right of first refusal allocated for future Powerstation low cost relative to to undertake certain ◼ With 283,312 sq.m. leases and Building, Aseana Town current market prices construction works in unallocated land bank 10,000 sq.m. Center, Aseana through land Aseana City available for further allocated for future Square and S&R reclamation services development sales ◼ Ready-to-use, easily deployed capabilities, as well as in-house resources and personnel for Aseana Notes: City's master plan 1. Out of nearly 10,600 contractors licensed by the Philippine Contractor’s Accreditation Board (PCAB) as of December 17, 2018
Page 5 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 ▪ Pixel Residences starts Undertook pile driving Aseana Square pre-selling activities ▪ 8912 Asean Ave. commences works for Frabel Industrial ▪ Additional lease agreements construction and Commercial Fishport ▪ Aseana Square with Ayala Land ▪ MidPark Towers starts pre- commences construction ▪ Aseana Three fully leased out selling activities
2012 Completion of Aseana One 1965 1991 Establishment of DMW Reclamation works for Aseana City began 2018 2017 2016 2014 - 2015 2012 2004 - 2008 2003 2014 - 2015 1991 2004 1965 1976 1979 1986 ▪ Completion of Aseana Two Developed Aseana Power ▪ Awarded the City of Dreams Station 2003 development and construction 1986 th 1965 - 76 Entered into first land lease 2008 works (100 construction project awarded to DMW) Undertook multiple projects Embarked on and commenced recognition of dredging activities revenue from leasing of land to All reclamation works in ▪ Commencement of Ayala Land and infrastructure works Aseana City completed with various government for Navotas Fishport S&R lease institutions across the Complex ▪ Aseana Three commences Philippines construction
Page 6 Key Investment Highlights
Page 7 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 8 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 9 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 Ortigas CBD Roxas Boulevard within Parañaque City (<12km)
Extensive Transport Network ✓ 5 – 10 minutes to Manila Ninoy Aquino Makati CBD (<6km) International Airport (“NAIA”) via NAIA Expressway ✓ Less than two kilometers to Parañaque Integrated Terminal Exchange (PITX), a transport terminal that links provincial buses to other inter-city transport systems ✓ Future LRT Line 1 extension stops along BGC Aseana City (targeted for completion in (<9km) 2021) ✓ Improves connectivity to other cities such as Alabang, Cavite and Laguna
PAGCOR’s Entertainment City ✓ A gaming and entertainment complex under development and the setting of high-end integrated casino resorts, such as City of Dreams Manila, Solaire Resort & Casino, and Okada Manila ✓ Westside City Resorts World casino (to be completed in 2021)
SM Group’s Mall of Asia ✓ One of the largest shopping malls in the world, attracting roughly 200,000 people every day Page 10 A Strategic and Sizeable Land Bank in Aseana City
Positioned as the next major mixed-use CBD in Metro Manila anchored by tourism, recreational developments and retail malls Remaining Land Reserves (313,415 sq.m.) Land Used/Allocated Land Allocated for for Development Future Sales (262,862 sq.m.) (10,000 sq.m.)
Completed Land Allocated for Properties Future Leases (36,659 sq.m.) (20,103 sq.m.)
Land Leased Land Holdings (155,418 sq.m.) (576,276 sq.m.)
Unallocated Land (283,312 sq.m.) Land Allocated for Pipeline Projects (56,769 sq.m.)
Roads & Right of Way (14,016 sq.m.)
Page 11 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 floor area (sq.m.) Leasable/saleable floor area (sq.m.) Parkside Roads and Aseana Town Place 2 right of way Aseana Center MidPark Land currently 29,925 14,016 Powerstation 12,849 Aseana One Towers leased 8912 Asean Ave. 155,418 Building 20,189 46,818 4,710 68,980 Pixel Aseana Residences Completed Square 13,106 Remaining properties 2,137 Parqal land 67,439 36,659 Aseana Two Aseana Six reserves 14,289 62,316 313,415 Pipeline Aseana Three Aseana Aseana Five properties 30,914 Mainstreet 2 58,680 56,769 36,856
Total: 576,276 sq.m. Total: 85,087 sq.m. Total: 384,000 sq.m.
Valuation (PHP mm) Valuation (PHP mm) Valuation (PHP mm)(3) Parkside Completed properties (1) MidPark Place 2 14,991 Aseana One 8912 Asean Towers 1,254 (2) 9% Aseana Town 1,903 Ave. 1,973 Land currently leased 2,123 Center 42,722 Aseana Two 27% Pipeline properties 4,388 17,705 1,497 Pixel 11% Residences 996 Aseana Three Aseana Six Parqal 5,573 Remaining 2,197 2,258 land reserves (2) Aseana Powerstation 85,516 Aseana Aseana 53% Building Square Aseana Five 2,848 Mainstreet 2 1,963 2,159 1,565
Total: PHP160,934 mm Total: PHP14,991 mm Total: PHP17,705 mm Notes: Colliers’ inspection date is at November 23, 2018 1. Excluding S&R Building 2. DMW holds a 60% shareholding interest in Bay Area Holdings, Inc. or BAHI through Fabricom, Inc. as of December 31, 2018. 3. As is, where is basis Page 12 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 13 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) 985
805 782
655
561 500 CAGR = 21% 390
300 319 255 273 234
31.5
2006 2018 2018* 2019F 2017 2018 2019F 2017 2018 2019F 2017 2018 2019F Aseana City Ortigas CBD Fort Bonifacio Makati CBD
Source: Colliers 4Q2018 Property Market Overview *Aseana City (2018 Actual) is based on transacted price of P318,888/ sq.m. VAT exclusive for a 5,626.88 sq.m. parcel of land sold in March 2018 www.afprsbs.com/uploads/3/7/5/2/37521453/3__aseana_6b-d_.jpg www.afprsbs.com/uploads/3/7/5/2/37521453/tor_aseana_6e_new.pdf
Page 14 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 15 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
Land reclamation Residential development
Infrastructure Land preparation and zoning Commercial development
Purchase of land For recurring Land lease revenue
Provision of Ancillary Citywide Services
Integrated end-to-end master planning and development
Value creation Value extraction
Maximising returns across the value chain
Page 16 Land Reclamation and Construction
Licensed AAAA contractor with established track record and proven abilities
One of the top national construction companies in land reclamation, having reclaimed c.2,424,834 sq.m. of land to date
Completed more than 100 projects including large scale and complex government projects
Over 50 years of operating history and track record in land reclamation and infrastructure construction
Introduction of a right to match the lowest bid or ROFR for any piling, concreting and foundation works undertaken in Aseana City
Type Representative projects Terms Details
✓ Reclaimed c.2,040,000 sq.m. of land in the Central Business Park Pile-driving Land and foundation reclamation ✓ Together with WHI, DMW obtained titles to 1,074,714 sq.m. of land pursuant to a duly executed works S&R, Aseana Tune Hotels Ayala Malls Bay Area Reclamation Agreement
Construction of infrastructure, Housing roads and TPLEX Lucena Alabang-Zapote Marala Sanville Subdivision Greenville Homes bridges Fishport Fly-Over Bridge
Trenching and ✓ Laying of electrical cables from Vertical a mainland power source in cable-laying various locations construction Toll Canopy Plaza Admin Building Aseana of TPLEX of TPLEX Three
Page 17 Land Sales and Leasing
Revenue from Land Sales and Rentals (PHP mm) 1 Land Sales
Starting 2016, we have successfully negotiated with our land 2,008 buyers to pay the consideration in full upon signing of the purchase agreement 1,088 Development plans to comply with our master plan and submitted 18 to 48 months from the signing
1,461 Some contracts provide a ROFR to purchase the property 601 development on the same terms as those offered to other prospective buyers or transferees
967
9651 2 Land Leasing 919 861 Long-term land leases of 10 to 20 years
Grant longer leases to qualifying tenants such as Ayala Land for 45 years
2016 2017 2018 Yearly escalation rates generally ranging from 5% to 10%
Land Rentals Land Sales
Page 18 Commercial Building Leasing
Aseana One/ Two/ Three ✓ Highly flexible in specifications ✓ PEZA-accredited, suited for BPOs and logistics companies ✓ Tenants include:
Aseana One Aseana Two
Completed Properties in Aseana City(1) ✓ Total land area: 36,659 sq.m. ✓ Total leaseable floor area: 85,087 sq.m. ✓ Lease term: 5-10 years ✓ Fixed lease rate + in some cases, variable payment (typically 3%-5% of the tenant’s monthly gross product sales)(2) ✓ Fixed annual escalation rates: 3%-10% ✓ Valuation (as is, where is basis): PHP14,991 mm Aseana Three Notes: 1. Completed properties include Aseana One, Aseana Two, Aseana Three, Aseana Square, Aseana Powerstation Building and Aseana Town Center 2. Applicable to retail tenants Page 19 Property Development
8912 Asean Ave. (formerly Aseana Four) / Aseana Five / Six ✓ Targeted at BPOs, logistics companies and gaming and tourism-related companies ✓ Located near Ayala Land’s mall development which includes a transport terminal ✓ PEZA accreditation for all the office buildings ✓ Typical start of pre-leasing activities three to 10 months after commencement of construction ✓ Total leaseable floor area: approximately 190,000 sq.m. ✓ Valuation (as is, where is basis): PHP6,194 mm 8912 Asean Ave. (formerly Aseana Four) (2020)
Aseana Five & Six (2022)
Page 20 Property Development (Cont’d)
Pixel Residences MidPark Towers (formerly Parkside Place) (Oct 2019) (2023)
Pixel Residences ✓ Designed by Spark Architects in collaboration with Casas Architects ✓ Fully sold out with unrecognized revenue of PHP1,342 mm as of December 31, 2018 Residential Developments ✓ Strategically located near schools, parks, transportation options and retail developments ✓ Targeting middle to higher income individuals and working families ✓ Start pre-selling activities 12 months prior to ground breaking ✓ Total saleable floor area: approximately 85,000 sq.m. ✓ Valuation (as is, where is basis): PHP4,372 mm ✓ Market Value/ Gross Development Value (GDV): PHP17,705 mm Parqal (formerly Aseana Mainstreet 1 & 2) Parqal (formerly Aseana Mainstreet 1 & 2) ✓ Total leaseable floor area: 103,000 sq.m. (2021) ✓ Valuation (as is, where is basis): PHP7,138 mm
Page 21 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 22 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 Leasing of 919.4 Land Holdings 860.5
2016 2017 2018
Increasing Building Leasing Revenues with Strong Office Demand in Manila Bay Leasing of (In PHP mm) CUSA(1) Commercial 762.1 429.7 Space 344.6
2016 2017 2018
Increasing Ancillary Revenues from CUSA(1) and Complementary and Captive Sub-businesses Complementary and (In PHP mm) Captive Sub-businesses 173.8 91.7 65.9
Note: 1. Refers to Common Use Service Areas 2016 2017 2018 Page 23 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 24 Proven Expertise and Management Track Record
Long history Over 50 years of experience in the construction industry
Licensed by the Philippine Licensing Board as a “AAAA" contractor (highest classification by PCAB) – High credibility only 20 construction companies in the Philippines have this distinction(1)
Well established track record Completed over 100 major construction projects including land reclamation for Aseana City, ports, highways, bridges and building foundations
DMW has completed a multitude of projects in numerous fields and disciplines across real estate and construction spaces and has consistently met project completion and delivery timetables over the past seven years
Capabilities expertise Managerial expertise Regulatory expertise Cost expertise
• Integrated range of services and • Chairman Mr. Delfin J. Wenceslao Jr • Deep understanding of regulatory • Able to project capex and costs products covering the entire landscape and complex approval accurately by leveraging development cycle allowing for more ‒ Highly influential figure in the processes extensive experience in control of execution timetables Philippine construction and real reclamation and construction estate industry • Excellent relationship with local • Capture opportunities for the ‒ Over 50 years of experience governmental and regulatory • Centralized procurement and provision of ancillary citywide authorities sourcing ‒ Former President of Philippine services such as public surveillance Constructors Association and public transport • Enhanced ability to expedite • Highly experienced senior approval process and facilitate management team with average of timely delivery of projects over 20 years of experience in the construction and real estate industry
Sources: Company, Philippine Contractors Accreditation Board (PCAB) Note: 1. Out of 10,000 contractors in the Philippines as of November 7, 2018 Page 25 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 26 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
1,032 29%
2017 2018 3M 2019
11% 10%
(7,020) (7,109)
2017 2018 3M 2019
Healthy borrowing profile and conservative funding strategy for land sales ◼ DMW maintains good relationships with and is well supported by leading local ◼ DMW maintains strict financial and risk management policies in order to minimize its net financial institutions, providing borrowings to equity ratio and its financial and operational risks credibility and reputability ◼ Such prudent capital management has allowed DMW to avoid mid-construction stoppages or ◼ More than 77% of DMW’s existing credit delays facilities remain undrawn as of Dec ◼ Land sales are a key source of internal funds to finance DMW’s real estate development and 2018 construction project costs – DMW requires buyers to pay consideration in full upon the signing ◼ Relatively low borrowing rates with of the purchase agreement, resulting in a favorable payment policy that enables DMW to average cost of debt at 4% as of Dec avoid the risks of delayed payments and cash collections 2018
Figures as of year-end December unless stated otherwise Notes: 1. Net debt is calculated by subtracting cash and cash equivalents from total loans and borrowings 2. Debt to equity ratio is calculated by dividing total loans and borrowings by total equity Page 27 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 An Integrated Master Developer with Competitive Advantages Across Business Lines
4 A Diversified Earnings Base With Substantial and Recurring Revenue Streams
5 A Proven Management Track Record
6 A Strong Financial Position Based on Prudent Financial Management
Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth 7 Trends
Page 28 Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth Trends (1/3)
1 Robust GDP and Population Growth 2 Improving Investment Grade Ratings
Population (mm) Rating
91.0 92.6 94.2 96.5 98.2 99.9 101.6 103.2 104.9 106.6 Baa2/BBB Baa3/BBB- 7.7% 6.8% 7.1% 6.9% 6.7% Ba1/BB+ 6.1% 5.9% 6.2% Ba2/BB 3.7% Ba3/BB- 1.1% B+/B1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16
Sep-00 Sep-02 Sep-04 Sep-06 Sep-08 Sep-10 Sep-12 Sep-14 Sep-16
May-01 May-03 May-05 May-07 May-09 May-11 May-13 May-15 May-17 GDP Growth Rate at Constant 2000 Prices (%) Moody's S&P Fitch
Steady Flow of Remittances from 3 Overseas Filipino Workers 4 Growth in the BPO Sector 5 Growth in the Gaming Sector
Values in USD bn No. of FTEs Values in USD bn ▪ As at end-2018, PAGCOR had issued 40 2,000,000 50.0 1.8 M 57 POGO licenses (up from 51 as of end- 2017), with the expectation of 40.0 30 1,500,000 38.9 issuing additional licenses
30.0 20 1.1 M ▪ PAGCOR revenues from POGO 1,000,000 operations almost doubled to 22.9 20.0 P6,115 mm in 2018 from P3,127 10 500,000 mm in 2017 (vs. P74 mm in 2016) 10.0 .1 M
- 1.5 -
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2017*
2004 2006 2008 2010 2012 2014 2016
2020F* 2022F* 1Q 2Q 3Q 4Q 2018F*
Note: PAGCOR: Philippine Amusement and Gaming Corporation Source: Colliers Industry Market Report
Page 29 Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth Trends (2/3)
Sustained Demand to Absorb New Office Deliveries…
2018 – 2021 vacancy 1,200 2018 – 2021 rent 30%
1,200,000 average: 6.3% 8.0% increase average: 5% PercentageGrowth
1,000 PercentageGrowth 1,000,000 20% 6.0% 800 800,000 6.5% 6.4% PHP1,080 6.0% 6.3% 10% 5.3% 600 sq.m. 600,000 5.0% 4.0% 5.0% 0% 400,000 400 2.0% 200,000 PHP/sq.m./month 200 -10%
0 0.0% - -20% 2017 2018 2019F 2020F 2021F 2022F 2002 2005 2008 2011 2014 2017 2021F Metro Manila New Supply (LHS) Take-up (LHS) Metro Manila Office Rental Rate y-o-y growth Vacancy at Year End (RHS)
Strong Manila Bay Office Net Take-up and Low Vacancy Rates… …To Support Continued Growth in Manila Bay Office Lease Rates
350,000 10% 2018 Transacted Lease Rates: 950 1,000 ▪ Makati CBD Premium: P1,200-P1,750 300,000 8% ▪ Makati CBD Grade A: P900-P1,400 900 ▪ BGC Grade A: P950-P1,500 250,000 ▪ Manila Bay Grade A: P900-P1,000 200,000 6% 800 733 4.3% 692
sq.m. 150,000 4% 700 633 100,000 1.6% 1.0% 600 PHP/sq.m./month DMW lease rates: 0.2% 2% 50,000 New lease: P1,100 500 Renewal: P850 - 0% 2012 2013 2014 2015 2016 2017 2018 400 2012 2013 2014 2015 2016 2017 2018 Annual Net Take-up (sqm, LHS) Overall Vacancy (RHS) Source: Colliers Industry Market Report Manila Bay Grade A Note: 1. In terms of gross leasable area Page 30 Well-positioned to Benefit from Strong Macroeconomic Fundamentals and Attractive Industry Growth Trends (3/3)
(1) Metro Manila Residential Supply Forecast, end 2019 and 2021 Future Supply Concentrated in Manila Bay and Fort Bonifacio (3)
Location end of 2019 end of 2021 % change 2018 – 2021 supply 2018 – 2021 demand average: 7,600 average: 7,000 141,760 units Alabang 4,430 4,430 - 8,000
Araneta Center 4,550 4,550 - Others, 23,960 6,000 Eastwood City 8,540 9,170 7.4% Makati CBD, 28,700
Fort Bonifacio 35,140 40,330 14.8% 4,000 Fort Bonifacio, 40,330
Makati CBD 27,700 28,700 3.6% No. of Units of No. Bay Area 22,260 28,810 29.4% 2,000 Ortigas CBD, 19,960
Ortigas Center 18,730 19,960 6.6% Manila Bay, 28,810 0 Rockwell Center 5,270 5,810 10.2% Manila Bay Ortigas CBD Fort Bonifacio Makati CBD Total end of 2021F Total 126,620 141,760 12.0% 2018 2019F 2020F 2021F
Average Monthly Take-up Highest in Manila Bay (in units) (2) Strong Growth in Average Residential Condominium Prices (PHP ‘000/sq.m.)
Bay Area Makati Fort Bonifacio Ortigas Alabang CBD 241 214 205 Luxury - 7 4 7 - 200 178 High-end 26 14 8 13 45 158 148 152 147 131 Mid-end 43 62 25 32 11 121 124
Affordable - 5 - - 9
Average (3Q 2018) 40 33 12 24 16
Average (4Q 2018) 50 44 13 48 12 2015 2017 2018 2015 2017 2018 2015 2017 2018 2015 2017 2018 Units sold (end-2018) 96% 97% 97% 94% 96% Manila Bay Ortigas CBD Fort Bonifacio Makati CBD
Source: (1) Colliers, (2) Santos Knight Frank Page 31 Business Strategies
Page 32 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 33 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 mix plan investments
✓ Update the master plan regularly to ✓ Detailed plan will ensure proper ✓ Attract a robust mix of quality tenants ✓ Implement key infrastructure such as review progress made guidance and progress tracking and locators standardized citywide services to enhance livability ✓ Ensure broad long-term strategies are ✓ Current plan capitalises on the ✓ Balanced tenant or locator mix will appropriately adjusted in view of anticipated growth in office, retail, cultivate a vibrant next generation ✓ Continually attract top developers such macroeconomic developments and tourism, outlets in neighboring district that supports commercial, retail as Ayala Land to invest in Aseana City market conditions Entertainment City and Mall of Asia and residential purposes developments
Page 34 Grow Aseana City into a “Next Generation” CBD within Metro Manila (Cont’d)
Page 35 Develop a Portfolio of High Quality Real Estate Projects
Commercial Leasing Residential Sales
8912 Asean Ave. Aseana Five Aseana Six Pixel Residences MidPark Towers Parkside Place 2
▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: ▪ Targeted Completion: 2020 2022 2022 Oct 2019 2023 2023 ▪ Total Leasable Floor ▪ Total Leasable Floor ▪ Total Leasable Floor ▪ Total Saleable Floor ▪ Total Saleable Floor ▪ Total Saleable Floor Area: 68,980 sq.m. Area: 58,680 sq.m. Area: 62,316 sq.m. Area: 13,106 sq.m. Area: approx. 43,956 Area: approx. 28,329 sq.m. sq.m. ▪ Valuation (as is, where ▪ Valuation (as is, where ▪ Valuation (as is, where ▪ Market Value (as is, is): PHP1,973 mm is): PHP1,963.3 mm is): PHP2,257.9 mm where is): PHP995.7 mm ▪ GDV: PHP9,789.3 mm ▪ GDV: PHP6,358.8 mm ▪ Market Value (as if completed): P1,556.5 mm
✓ Target higher mid-end consumer market - middle-class working families, ✓ Focus on the demand of BPOs, POGOs, logistics companies and companies in executives, expatriates working at adjacent developments and foreign buyers businesses relating to gaming, recreational activities, tourism, entertainment and hospitality ✓ Intend to work closely with real estate brokers and consultancies that handle a large number of high net worth individuals ✓ Develop commercial space that is highly flexible in terms of specifications appealing to a wide range of tenants ✓ Obtain PEZA accreditation for our office buildings ✓ Refine the integration of our capabilities with our centralized resources
Page 36 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 Public- Private Partnership projects that involve a land reclamation component
Page 37 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 year gaming and tourism-related companies, demographic groups Focus on suitable lessees and that are expected to experience an purchasers to complement and increase in demand for commercial maximize the revenue potential of space within the vicinity our real estate portfolio
Captive Sub-businesses Residential Sales Provision of gas, transportation and security services Long term strategy to take over land sales Other sub-businesses that we may enter into include centralized gas Manila Bay area has a price supply, standardized road premium over other business navigation, commercial advertising districts in Metro Manila signages, and construction of skywalks linking buildings to encourage “walkability”
Page 38 Aseana City Master Plan
Page 39 Financial Highlights
Page 40 Robust Top-line Growth Driven By Increasing Recurring Income
Revenues (PHP mm)
Key Events: Key Events: Key Events: ◼ Pile driving works began for ◼ Sale of 2,521 sq.m. of land to Uni-Asia ◼ Completion and full occupancy of Ayala Mall ◼ Completion and full occupancy of Aseana Aseana Three ◼ Sale of 2,180 sq.m. land parcel Square ◼ Start of pre-selling of MidPark to Bay Prime and 874 sq.m. to ◼ Full occupancy of Aseana Town Center Towers Harton ◼ Additional lease agreements entered with ◼ Full year effect of Aseana Two’s Ayala Land for 9,980 sq.m. of land lease ◼ Pixel Residences fully pre-sold
2,778 47 Condominium Sales 2,104 2,152 1,088 Land Sale 119 601 Rental
1,901 Construction 1,271 1,441
231 202 131 2016 2017 2018
Page 41 Profit Expansion Supported by Strong Profit Margins from Rentals and Land Sales
Gross Profit (PHP mm) Operating Profit (PHP mm)
84% 84% 80% 78% 64% 57%
2,339 2,158 1,806 1,372
475 342 2017 2018 3M 2019 2017 2018 3M 2019 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin
EBITDA(1) (PHP mm) Net Profit Attributable to Equity Holders of the Parent (PHP mm)
89% 86% 81% 70% 63% 56%
2,247 1,911 1,558 1,507 374 507 2017 2018 3M 2019 2017 2018 3M 2019 EBITDA EBITDA Margin Net Profit Net Profit Margin Notes: 1. EBITDA = operating profit + depreciation and amortization 2. Net profit margin = Net profit/ revenues
Page 42 Strong Performance Across All Operational Metrics
Recurring Income Contribution(1) (%) Total Leasable Floor Area(2) (sq.m.)
550 493 453 450 89,914 89,914 43% 350 46% 250 59,000 150 31% 32% 50 8% 8% -50 3M 2018 3M 2019 % to Total Revenues 86% 83% Land (PHP mm) 246 255 Building 166 194 2017 2018 3M 2019 Other Revenues 42 45
Period Ending Occupancy (%) Total Leased Land Area (sq.m.)
100.0% 94.1% 98.0% 155,418 155,418
150,521
2017 2018 3M 2019 2017 2018 3M 2019
Notes: All data as at December 31 of each year except for 3M 2019 (March 31, 2019) 1. Recurring income is derived by dividing revenue from rentals by total revenue. Rentals comprise land, building and other revenues. Sum of the parts may not equal 100% due to rounding. 2. Calculated based on the ratio of total leased floor area to total leasable floor area made available Page 43 Improving Debt Serviceability, Sustainable Returns & Working Capital
Debt To Equity(1) (%) Return on Equity(2) (%)
20% 29%
14% 13%
11% 10%
2017 2018 3M 2019 2017 2018 3M 2019
Current Ratio(3) (x) Assets to Equity(4) (x)
2.35x
1.61x 1.58x 1.64x 1.65x
0.75x
2017 2018 3M 2019 2017 2018 3M 2019 Notes: All data as at December 31 of each year except for 3M 2019 (March 31, 2019) 1. Our debt to equity ratio is derived by dividing our total loans and borrowings by total equity. It measures the degree of our financial leverage. 2. Our annualized return on equity is derived by dividing net profit by average shareholders’ equity. It measures how profitable we are at generating profit from each unit of shareholder equity. 3. Our current ratio is derived by dividing current assets by current liabilities at the end of a given period. It measures our ability to pay short-term obligations. 4. Our asset to equity ratio is derived by dividing total assets by shareholders’ equity. It measures our financial leverage and long-term solvency Page 44 Historical & Planned Capital Expenditure
Historical & Planned Capital Expenditure (PHP mm)
Historical Planned
5,352 5,145
3,832
1,379
849 457
2016 2017 2018 2019E 2020E 2021E
◼ Projected capital expenditure relates primarily to the development of pipeline projects ◼ Proceeds of IPO, together with our cash flow and available bank borrowings, will be sufficient to fund the planned capital expenditures
Page 45 Progress Report on Use of Proceeds
Application Balance of the Allocation of Application for the quarter Offering Proceeds Offering Proceeds as of 31 Dec 2018 ended 31 Mar 2019 as of 31 Mar 2019 Pipeline project development ₱ 3,731,213,878 ₱ 491,657,589 ₱ 110,389,102 ₱ 3,129,167,187 Land assets 2,880,101,954 - - 2,880,101,954 Infrastructure development 524,345,738 50,732,032 45,624,756 427,988,950 within Aseana City General corporate purposes 463,552,030 34,307,810 19,280,390 409,963,830
₱ 7,599,213,600 ₱ 576,697,431 ₱ 175,294,248 ₱ 6,847,221,921
Pixel Residences I P50.4M 8912 Asean Ave. I P2.9M Parqal I P31.2M MidPark Towers I P25.9M
applied offering proceeds as of 31 Mar 2019 Page 46 www.dmwai.com [email protected]
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