Megawide Construction Corporation · PSE:MWIDE

Megawide Construction — Q1 2020 Earnings Presentation

40 slides from Megawide Construction's earnings presentation, 2020

  1. Slide 1: Financial and Operating Highlights

    FINANCIAL AND OPERATING HIGHLIGHTS Full Year 2019 and 1st Quarter 2020 Unaudited Financial Results 1

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of Megawide Construction Corporation (the “Company”). This presentation, as well as discussio

  3. Slide 3: Presentation Outline

    PRESENTATION OUTLINE • FY2019 and 1Q2020 Financial and Operating Results • COVID-19 SITUATIONER • Project Updates 3

  4. Slide 4: FY2019 Consolidated Income Statement

    FY2019 CONSOLIDATED INCOME STATEMENT In PhP M FY2019 FY2018 YoY% REMARKS Total Revenues 19,787 15,992 24% Construction 15,214 12,688 20% Recovery on track Airport Operations 3,691 2,996 23% In line with expectations Airport Merchandising 326 290 13% Landport Operations 555 18 2983% Initial lease com

  5. Slide 5: 1Q2020 Consolidated Income Statement

    1Q2020 CONSOLIDATED INCOME STATEMENT In PhP M 1Q2020 1Q2019 YoY% REMARKS Total Revenues 5,063 3,565 42% Construction 3,908 2,568 52% Recovery on track Airport Operations 803 892 -10% Due to travel bans Airport Merchandising 65 85 -24% Initial lease commencement of Landport Operations 287 20 1334% ot

  6. Slide 6: Margin Performance

    MARGIN PERFORMANCE In PhP M 1Q2020 FY 2019 FY 2018 FY 2017 REMARKS Gross Profit Margin 26% 23% 26% 24% Construction 15% 13% 15% 16% Focus on L-T, high-value projects Airport Operations 57% 58% 69% 82% Lower revenue due to Int’l travel bans Airport Merchandising 75% 73% 76% 72% Terminal Operations 74

  7. Slide 7: Financial Position

    FINANCIAL POSITION In PhP M 31-Mar-2020 31-Dec-19 31-Dec-18 Movement % Change Cash & Financial Assets 4,544 6,519 5,761 758 13% Other Current Assets 29,313 28,982 19,029 9,952 52% Total Current Assets 33,867 35,500 24,790 10,710 43% Concession Assets 29,480 29,437 28,289 1,147 4% Total Non Current A

  8. Slide 8: Liquidity and Gearing Ratios

    LIQUIDITY AND GEARING RATIOS In PhP M As of March 2020 As of December 2019 Parent* GMCAC** Conso Parent* GMCAC** Conso Cash/financial assets 1,561 1,117 4,554 3,592 1,169 6,519 Total Debt 18,691 24,289 46,882 19,573 24,278 47,753 Equity 11,573 9,233 17,354 12,233 9,322 17,932 D-E Ratio 1.62 2.63 2.7

  9. Slide 9: Financial Highlights

    FINANCIAL HIGHLIGHTS ANNUAL PERFORMANCE (PhP M) Revenue EBITDA 17,658 19,159 19,787 • 2019 rebound year for 15,442 15,992 construction segment 4,349 4,401 4,712 • QonQ: Construction 3,611 3,023 cyclicality smoothened FY15 FY16 FY17 FY18 FY19 out by Airport EBITDA contribution QUARTERLY PERFORMANCE (

  10. Slide 10: Financial Highlights FY2019

    FINANCIAL HIGHLIGHTS FY2019 PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME (PhP M) 15,992 19,787 4,712 1,894 4,401* 121 98 326 555 125 106 290 18 3,691 1,044** 2,996 2,329 940 2,109 80 15,214 529 12,688 2,185 2,156 857 441 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY2019 BREAKDOWN REVEN

  11. Slide 11: Financial Highlights 1Q2020

    FINANCIAL HIGHLIGHTS 1Q2020 PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME (PhP M) 5,063 1,416 65 24 3,565 287 1,132* 255 282 206** 85 803 34 20 26 134 892 472 576 73 3,908 17 2,568 665 186 523 144 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q2020 BREAKDOWN REVENUE EBITDA NET INCOME 1% 6

  12. Slide 12: Engineering, Procurement, and Construction (EPC)

    1 Engineering, Procurement, and Construction (EPC)

  13. Slide 13: Recovery in Motion

    RECOVERY IN MOTION REVENUES (PhP B) CONSTRUCTION REVENUES 15.8 16.7 15.2 14.0 12.7 20% 2015 2016 2017 2018 2019 P15.2B NEW CONTRACTS (PhP B) 37.7 29.5 • EPC strong rebound in 2019 19.4 12.7 • New contracts continue to expand 10.8 order book 2015 2016 2017 2018 2019 13 13

  14. Slide 14: Recovery in Motion

    1 RECOVERY IN MOTION QUARTERLY PERFORMANCE (PhP M) Revenue EBITDA 4,668 4,342 3,908 3,737 3,626 3,616 2,989 2,568 2,336 593 674 548 652 665 524 520 460 370 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 14

  15. Slide 15: Healthy Order Book (FY2019)

    1 HEALTHY ORDER BOOK (FY2019) SEGMENT Office, Commercial and Industrial, 47% Residential, P52B 50% Order book 30 Projects Order backlog > 2-3 years Infra and Facilities, 3% AREA % COMPLETION 20-80% 80-100% 1% 16% Visayas 24% Metro Manila 68% Other Luzon 0-20% 83% 8% 83% of orderbook is in the 1st Tr

  16. Slide 16: Emerging Growth Segment (FY2019)

    EMERGING GROWTH SEGMENT (FY2019) BU REVENUES FROM EXTERNAL (PhP M) PRE-CAST SALES Other BU 315 Pre Cast 235 768 147% 27 P768M 310 58 2017 2018 2019 Precast Sales Mix FY2019 • Pre-cast sales record year in 2019, 2.5x revenues in 2018 • 40% External customer sales External , 40% Internal , 60% • Other

  17. Slide 17: Healthy Order Book (1Q2020)

    1 HEALTHY ORDER BOOK (1Q2020) Order Book (PhP B) No. of Projects 100 60.0 90 52.5 50.0 80 50.1 48.7 70 40.0 60 39.1 38.5 50 32.6 30.0 40 20.0 30 50 20 41 43 37 10.0 30 28 10 0 0.0 2015 2016 2017 2018 2019 1Q2020 17

  18. Slide 18: Airport Business Segment

    2 Airport Business Segment

  19. Slide 19: FY2019: Building Momentum

    FY2019: BUILDING MOMENTUM REVENUE BREAKDOWN Aero 11% 23% 75% Revenue Growth Non-Aero PSC Revenue* 55% 3,691 34% EBITDA** 2,996 2,298 2,329 2,109 1,872 1,641 1,484 1,303 PASSENGER TYPE 971 Int'l 2015 2016 2017 2018 2019 34% Domestic 66% 19 * Excludes airport merchandising revenues FY19 of PhP 326M **

  20. Slide 20: PSC: Sustained Passenger Growth

    PSC: SUSTAINED PASSENGER GROWTH PASSENGER VOLUME PASSENGER VOLUME (millions) Int'l INTERNATIONAL Domestic 4.3 3.8 3.1 11% 2.5 2.1 4.3M 7.7 8.4 6.4 6.8 5.9 2015 2016 2017 2018 2019 FY19 BREAKDOWN DOMESTIC P2.02M 22% 9% 55% 8.4M 20 20

  21. Slide 21: Aero: New Flights, Increased Frequencies

    AERO: NEW FLIGHTS, INCREASED FREQUENCIES FY19 BREAKDOWN AIR TRAFFIC MOVEMENT P433M 2014: 7 destinations 11% 17% INTERNATIONAL 2019: 25 destinations 55% 12% 28.4K AIR TRAFFIC (‘000) Domestic Int'l 2014: 23 destinations 28.4 2019: 25 destinations DOMESTIC 25.4 21.4 16.4 13.8 4% 74.1 77.3 66.1 77.3K 51

  22. Slide 22: Non-Aero: Expanding Space and Offerings

    NON-AERO: EXPANDING SPACE AND OFFERINGS FY19 BREAKDOWN 34% P1.24B 28% COMMERCIAL GLA (sqms) T1 Ph 2 400 Airport village T2 1,800 1,800 T1 Ph1 3,800 3,800 3,800 3,500 4,200 4,200 3,200 2,000 2016 2017 2018 2019 2020E 22

  23. Slide 23: 1Q2020: COVID-19 Impact

    1Q2020: COVID-19 IMPACT REVENUE BREAKDOWN Aero 11% 75% 1,200 Revenue* PSC EBITDA** Non-Aero 1,000 53% 978 36% 892 904 918 857 800 816 803 646 676 600 585 576 590 605 534 557 481 510 472 400 200 PASSENGER TYPE - Int'l 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 30% Domestic 70% 23 * Excludes airport

  24. Slide 24: PSC: Slower Passenger Traffic

    PSC: SLOWER PASSENGER TRAFFIC 1Q2020 BREAKDOWN PASSENGER VOLUME P423M -13% YoY INTERNATIONAL 53% -29% 742K Int'l PASSENGER VOLUME (‘000) Domestic 1,026 1,064 1,100 1,038 DOMESTIC 940 1,049 899 771 948 766 742 836 769 -16% 1.7M 1,605 1,913 1,602 1,719 1,756 2,113 1,829 1,966 1,993 2,269 2,001 2,084 1

  25. Slide 25: Aero: Travels Restricted

    AERO: TRAVELS RESTRICTED 1Q2020 BREAKDOWN AIR TRAFFIC MOVEMENT 11% INTERNATIONAL 53% P93M -12% YoY -18% 5.3K Int'l AIR TRAFFIC Domestic 6,912 7,547 6,147 DOMESTIC 6,549 7,390 6,156 5,372 5,975 7,082 5,337 5,558 5,327 5,191 -10% 17.3K 15,081 18,496 15,761 16,722 18,458 19,264 17,481 18,881 19,069 19,

  26. Slide 26: Non-Aero: Expanding Share

    NON-AERO: EXPANDING SHARE NEW SHOPS AT TERMINAL 2 1Q2020 BREAKDOWN 36% P288B -5% YoY T1 RENOVATION (PHASE 1) NON-AERO SHARE TO TOTAL 36% 34% 31% 32% 28% 23% 21% AIRPORT VILLAGE 2014 2015 2016 2017 2018 2019 1Q2020 26

  27. Slide 27: Integrated Transport Exchange Business Segment

    3 Integrated Transport Exchange Business Segment

  28. Slide 28: Initial Contribution

    INITIAL CONTRIBUTION FY19 & 1Q20 PERFORMANCE 2019 LEASING REVENUE BREAKDOWN Retail Podium 20% 555 287 255 18 106 -18 FY2018** FY2019*** 1Q2020 Office Towers Revenue* EBITDA (PhP M) 80% * Includes PAS 17 adjustment **Nov 2018 – start of operations ***Oct 2019 – initial lease commencement PAS 17 (Leas

  29. Slide 29: Gaining Traction

    GAINING TRACTION AVERAGE DAILY TRIPS* 5,790 OFFICE (72K sqms) 5,365 • 100% leased out 5,075 4,849 • P1,000/sqm/month (ave) 4,020 3,430 RETAIL (12K sqms) • 80% leased out • 60% operational • P1,200/sqm/month (ave) AVERAGE PASSENGER Operational Leased out Under nego FOOT TRAFFIC vs SPP (PHP) PHP 40.00

  30. Slide 30: COVID-19 Situationer

    COVID-19 SITUATIONER ——

  31. Slide 31: COVID-19 Impact (Base Case Scenario)

    COVID-19 IMPACT (BASE CASE SCENARIO) ECQ effective MECQ effective May 15, March 16-May 15, 2020: gradual return to NEW NORMAL: • Operations temporarily suspended • Slow ramp-up of productivity (supply chain, labor availability) • Prioritize employees; Implement anti-COVID 19 protocol in all • Opport

  32. Slide 32: Project Updates

    PROJECT UPDATES ——

  33. Slide 33: Clark International Airport (Hybrid PPP)

    CLARK INTERNATIONAL AIRPORT (Hybrid PPP) Engineering Procurement & Construction  Scope: Construction of new building terminal to accommodate 8 mppa (96% complete December 2019)  Contract Cost: P9.36 Billion  Structure: Hybrid PPP; Build-Transfer (BT)  Proponent: 50-50% JV with GMR  Construction

  34. Slide 34: MCIA Testing Facility

    MCIA TESTING FACILITY COVID RESPONSE  Scope: Construction of COVID19 Testing Facility (to be certified by the DOH/RITM)  Contract Cost:  Structure: JV with Cebu City LGU (unsolicited proposal)  Proponent: GMCAC (GMR-Megawide)  Development timetable: 30 days MORE COVID-19 LABS. National Task For

  35. Slide 35: Malolos-Clark Railway Project

    MALOLOS-CLARK RAILWAY PROJECT Engineering Procurement & Construction  Scope: Phase 2, Package 1: covers civil works for 17 kilometers of PNR Clark, including Calumpit and Apalit Stations.  Contract Cost: P25B  Structure: EPC  Proponent: Consortium with Hyundai Engineering and Dong Ah Constructio

  36. Slide 36: Carbon Market Redevelopment

    CARBON MARKET REDEVELOPMENT Original Proponent Status  Scope: Remake of Carbon Market  Phase 1: New public market including, night market, and other commercial establishments, transport and ferry terminals, new Sto. Nino Park and chapel  Phase 2: Potential mixed-use development (hotel, MICE, reta

  37. Slide 37: PITX Lot 2 Development

    PITX LOT 2 DEVELOPMENT Design, development and O&M  Location: 1.8 hectare lot adjacent to existing PITX  Estimated Project Cost: ~P5Bn  Four-tower commercial/office complex and Bus staging area  ~70K sqms GLA (office)  ~12K sqms GLA (retail)  Possible Tenant Mix  BPO/traditional offices  Min

  38. Slide 38: MCIA Mixed-Use Development

    MCIA MIXED-USE DEVELOPMENT EPC / Foreign Brand Hotel Operations  Scope: Hotel complex  ~400 guest rooms  International hotel chain brand  Commercial area  Travel retail mall concept  Follow airport and hotel “look-and-feel”  Total area for dev’t: 4.5 Hectares  Concept: complimentary mixed-us

  39. Slide 39: Pre-Cast Capacity Build Up

    PRE-CAST CAPACITY BUILD UP Pre-Cast Plant Capacity (cu m/month) Existing 9,900 Plan (2019) 2,922 Plan (2020) 6,948 Total 19,770 • To double existing capacity to almost 20,000 cu m/month 39

  40. Slide 40: Megawide

    hl MEGAWIDE ——

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