Megaworld Corp. · PSE:MEG
Megaworld — FY2019 Earnings Presentation
30 slides from Megaworld's earnings presentation, 2020
Slide 1: FY 2019 Megaworld Analyst Briefing
WX FY 2019 MEGAWORLD ANALYST BRIEFING SER. . | PF ABECR. MRURUSEL £8 ees! A sSuSeS
Slide 2: FY2019 Financial Highlights
FY2019 FINANCIAL HIGHLIGHTS P67.3 bn P75.9 bn P19.3 bn TOTAL REVENUES GROSS DEBT NET PROFIT Rentals Real Estate P16.8 bn P42.6 bn P17.9 bn ATTRIBUTABLE 26 % NET DEBT/EQUITY NET PROFIT Hotels P2.5 bn Others P29.6 bn P5.4 bn P48.2 bn EBITDA CAPEX SPENDING 2
Slide 3: FY2019 Performance Update
FY2019 PERFORMANCE UPDATE in Pbn FY19 FY18 % Remarks REVENUES 67.3 57.4 17% Strong core growth ↓100 bps GP Margin Real Estate Sales 42.6 38.0 12% Project completion of higher-valued projects 45.1% Rentals 16.8 14.3 18% Steady occupancy rates; Capacity increases 46.1% Hotels 2.5 1.5 67% Increased roo
Slide 4: Total Revenues
TOTAL REVENUES (Pbn) 5-Year CAGR: 10% Breakdown ** 63.7 4.2 57.4 5.2 69% 3.9 50.1 8.8 2019 4.4 45.0 44.3 3.5 41.0 7.5 3.2 4.9 27% 3.1 3.1 5.1 4.9 6.2 4% 4.6 5.4 4.8 3.4 49.1 41.6 71% 35.6 29.9 31.4 31.5 2018 26% 2014 2015 2016 2017 2018 2019 3% MEG GERI ELI SPI *2014 figures exclude non-recurring ga
Slide 5: EBITDA & Margin
EBITDA (Pbn)* & MARGIN 5-Year CAGR: 14% Breakdown** 43% 44% 42% 41% 29.6 37% 37% 0.4 25.0 1.4 21.2 0.3 3.4 45% 2019 53% 18.3 1.2 0.3 2.9 16.6 15.1 1.2 0.3 2.4 0.6 0.8 2% 0.5 1.8 0.8 0.8 1.4 1.1 24.5 20.5 17.3 15.4 12.7 13.8 48% 2018 50% 2014 2015 2016 2017 2018 2019 2% MEG GERI ELI SPI EBITDA Margin
Slide 6: Attributable Net Profit & Margin
ATTRIBUTABLE NET PROFIT (Pbn) & MARGIN 5-Year CAGR: 15% NET PROFIT (Pbn) & MARGIN 26% 27% 26% 26% 5-Year CAGR: 16% 27% 28% 29% 23% 17.9 27% 22% 19.3 0.1 23% 24% 0.1 15.2 0.5 1.2 15.8 0.6 13.1 0.1 0.1 2.1 13.7 11.5 0.4 0.5 0.1 1.2 0.1 10.2 0.5 11.8 0.6 1.7 9.1 0.1 1.2 10.6 0.1 1.5 0.3 0.4 9.4 0.3 0.5
Slide 7: Capital Expenditures
CAPITAL EXPENDITURES (Pbn) 2020 CAPEX 54.5 55.2 4.3 49.0 48.9 5.9 48.2 2.8 0.4 4.2 39.8 Investment Properties 30% P36 bn 50.2 49.3 46.2 47.9 44.7 39.8 Residential 70% 2014 2015 2016 2017 2018 2019 Project Development Land Acquisition 7
Slide 8: Gross Debts
GROSS DEBTS (Pbn) 74.9 75.7 75.9 Type of Debt Bonds 3.4 5.3 4.7 32% 2.0 2.1 1.4 Loans 5.1 4.1 5.0 68% 61.2 3.2 52.6 2.0 3.9 2.5 1.5 2.0 Interest Rate 33.5 Floating 2.1 35% 0.1 64.4 64.3 64.7 0.2 Fixed 52.1 65% 46.6 31.1 Currency PH Peso 2014 2015 2016 2017 2018 2019 72% US Dollar MEG GERI ELI SPI 28
Slide 9: Net Debt & Net Debt/Equity
NET DEBT (Pbn) & NET DEBT/EQUITY 21% 28% 32% 27% 22% 8% MEG 36% 31% 31% 58.5 58.2 26% 2014 2015 2016 2017 2018 2019 22% 2.8 4.9 52.8 0.7 3% 6% 7% 7% 0.2 -3% 1.9 4.2 -11% 2.3 7% 44.8 0.3 GERI 2.8 2.4 0.9 2014 2015 2016 2017 2018 2019 0.8 29.8 2.2 0.1 -3% 0% 4% 3% 1% 1% 53.1 50.7 45.9 40.2 ELI 8.4 28.
Slide 10: Core Businesses
CORE BUSINESSES REAL ESTATE OFFICES MALLS HOTELS 10
Slide 11: FY 2019 Operational Highlights
FY 2019 OPERATIONAL HIGHLIGHTS P149 bn 26 TOWNSHIPS (4,284 Hectares) 1.3 m RESERVATION SALES OFFICE GLA (SQM) 25 35.6 31 24 5 640 34.5 140 4,300 has 453 k 50 350 15.4 62 LANDBANK 5 251 RETAIL GLA (SQM) 12.4 1,200 18.5 561 72 300 P85 bn 173 34 53 11 150 30 3,637 PROJECT LAUNCHES HOTEL ROOM KEYS 11
Slide 12: Real Estate
REAL ESTATE P42.6 bn REAL ESTATE SALES P149 bn RESERVATION SALES P85 bn PROJECT LAUNCHES 12
Slide 13: Real Estate Sales & Margins
REAL ESTATE SALES (Pbn) & MARGINS 3-Year CAGR: 12% 47% 46% 42.6 45% 45% GP (Pbn) & Margin 17.5 19.2 3.6 16.1 38.0 13.6 1.0 1.0 0.9 1.8 3.5 0.8 1.5 34.1 3.4 1.5 1.7 2.9 3.4 3.3 2.2 30.4 3.0 3.5 6.1 11.7 13.1 9.1 10.6 2.7 3.9 6.4 4.0 2016 2017 2018 2019 5.3 MEG GERI ELI SPI GP Margin 3.9 32% 32% EBITD
Slide 14: Real Estate Sales Mix
REAL ESTATE SALES MIX By Classification Taguig 8.4 ↓11% Makati 2.8 ↓29% 4%1% 12% Pasay/Parañaque 10.8 ↑ 155% 8% 2019 Quezon City/Pasig 5.6 ↑ 25% 75% Other MM Areas 3.2 ↓31% CALABARZON 6.0 ↑ 18% Other Luzon Areas 0.5 ↑ 41% Residential Units 3%0% 14% Iloilo 1.5 ↓ 3% Condotels 5% Residential Lots 2018
Slide 15: Reservation Sales
RESERVATION SALES (Pbn) 148.7 3% 6% 0% By Classification 135.4 12.8 12% 1% 12.2 18.4 78% 105.0 17.8 19.2 87.2 9.3 14.3 85.0 85.3 Residential Units Office Units 14.3 Condotels Residential Lots 6.0 6.8 10.2 Commercial Lots Industrial Lots 11.3 10.9 11.9 13.0 13.5 14.6 11.0 98.3 Asian 91.1 Buyer’s Prof
Slide 16: Project Launches
PROJECT LAUNCHES (Pbn) PROJECT NAME LOCATION VALUE MEGAWORLD 63.8 South Beach Place (1 tower) Westside City 7.9 8% 4% By Classification Sunny Coast Residential Resort 2 & 3 Westside City 12.4 4% Two Regis Upper East 1.6 One Corporate Place Maple Grove 1.5 The Albany Yorkshire Mckinley West 3.0 Saint
Slide 17: Key Launches
KEY LAUNCHES Kingsquare Residences San Lazaro, Manila P 5.2 billion | 43% sold Chancellor Hotel Highland City – T1 The Arcadia Boracay Newcoast Highland City Porac, Pampanga P 3.2 billion | 81% sold P 3.1 billion | 98% sold P 2.6 billion | 12% sold Arden Botanical Village Arden Botanical Estate P 2.
Slide 18: Rentals
RENTALS P16.8 bn RENTAL REVENUES P10.5 bn MEGAWORLD PREMIER OFFICES P6.3 bn MEGAWORLD LIFESTYLE MALLS 18
Slide 19: Rental Income
RENTAL INCOME (Pbn) 5-Year CAGR: 20% RENTAL EBITDA & MARGIN 16.8 14.3 88% 88% 89% 87% 6.3 86% 85% 11.8 5.5 10.0 8.7 4.6 15.9 4.0 13.4 7.1 10.9 3.6 9.2 9.2 6.4 2.9 10.5 8.7 2014 2015 2016 2017 2018 2019 7.3 6.0 Rental EBITDA EBITDA Margin 5.1 4.2 2014 2015 2016 2017 2018 2019 Prime Offices Lifestyle
Slide 20: Rental Portfolio
RENTAL PORTFOLIO (‘000 sqm) MEGAWORLD PREMIER OFFICES MEGAWORLD LIFESTYLE MALLS 1,312 453 433 1,119 237 96 1,013 92 219 325 851 184 288 46 737 269 109 23 621 10 78 44 186 1,075 5 341 357 900 829 279 742 259 266 659 577 181 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Metro Manila Prov
Slide 21: Hotels
HOTELS P2.5 bn HOTEL REVENUES P0.6 bn HOTEL EBITDA 3,637 HOTEL ROOM COUNT 21
Slide 22: Hotel Revenues, Room Count and EBITDA
HOTEL REVENUES (Pbn) 5-Year CAGR: 29% HOTEL ROOM COUNT 2.5 3,637 0.8 2,554 1,744 1,185 556 556 1.5 2014 2015 2016 2017 2018 2019 1.3 0.2 1.2 0.3 41% 37% 0.8 EBITDA (Pm) & MARGIN 0.4 31% 28% 28% 0.7 1.7 25% 0.3 1.3 0.3 1.0 0.8 643 0.4 0.5 428 304 304 364 364 2014 2015 2016 2017 2018 2019 2014 2015 20
Slide 23: 2020 Targets
2020 TARGETS P50 bn +110 k RESERVATION SALES OFFICE GLA (SQM) P4 bn PROJECT LAUNCHES 2020 +26 k RETAIL GLA (SQM) P36 bn +526 CAPEX BUDGET HOTEL ROOM KEYS 23
Slide 24: Megaworld Premier Offices
MEGAWORLD PREMIER OFFICES PROJECT TOWNSHIP GLA 2020 One (2019) and Two Fintech Towers (2022) Iloilo Business Park Two Fintech Place Iloilo Business Park 17,600 Worldwide Plaza Uptown Bonifacio 69,200 One Fintech Tower Westside City 17,500 Mactan World Museum The Mactan Newtown 5,400 Total GLA 109,70
Slide 25: Megaworld Lifestyle Malls
MEGAWORLD LIFESTYLE MALLS PROJECT TOWNSHIP 2020 Lafayette Iloilo Business Park 808 Building Iloilo Business Park World Commerce Plaza Uptown Bonifacio The View Deck Arcovia City One Legrand Tower Mckinley West Clock Tower Davao Park District Skymall (2021) Collonade Davao Park District Highland City
Slide 26: Megaworld Hotels
MEGAWORLD HOTELS HOTEL NAME TOWNSHIP ROOM KEYS 2020 Kingsford Hotel Westside City 526 Belmont Hotel 2021 Mactan Chancellor Hotel Boracay Boracay Newcoast 554 2022 Grand Westside Hotel Westside City 1,530 Belmont Hotel Mactan The Mactan Newtown 550 Total 2,080 Kingsford Hotel Grand Westside Hotel 26
Slide 27: Impact of COVID-19 Pandemic on the Business
IMPACT OF COVID-19 PANDEMIC ON THE BUSINESS REAL ESTATE OFFICES MALLS HOTELS • Work stoppage on construction • POGO operations were • Community quarantine also • Occupancy dropped significantly sites and slowdown on the temporarily closed. requires temporary adjustment due to travel restrictions and
Slide 28: Addressing the Impact of COVID-19 Pandemic
ADDRESSING THE IMPACT OF COVID-19 PANDEMIC 28
Slide 29: Key Takeaways
KEY TAKAWAYS With cash preservation as a main objective, The township model is the way of the future MEG has decided to reduce its overall capex as convenience becomes a way of life. Best to P36bn as it plans to finish only its ongoing model in securing a community. projects. MEG expects the BPO sec
Slide 30: FY 2019 Megaworld Analyst Briefing
WX FY 2019 MEGAWORLD ANALYST BRIEFING SER. . | PF ABECR. MRURUSEL £8 ees! A sSuSeS