Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — Investor Presentation (2016)
35 slides from Megawide Construction's investor presentation, 2016
Slide 1: Investor Relations Company Presentation
INVESTOR RELATIONS Company Presentation As of 1H 2016
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
Slide 3: Company milestones timeline
22 §GiMecawine * Awarded the Mactan * Initial Public Cebu International Offering . A Airport project (GMR Megawide Cebu Airport * Constructed the Precast Plant in DefeD carport Taytay : = *Obtained ISO * First high-rise * Kicked-off the five- 9001:2008 and residential project: year diversification '
Slide 4: Company Background
COMPANY BACKGROUND Construction Airport Property Power* *Expected to be folded in Q3 of 2016 4
Slide 5: Company Background
COMPANY BACKGROUND Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development. The Largest Building Construction Company in the Country Largest Private Airport Operator in the Philippines Progressive Property Developer in th
Slide 6: Financial Position – Balance Sheet
FINANCIAL POSITION – BALANCE SHEET As of June 30, 2016 As of Dec 31, 2015 Increase (decrease) Consolidated Parent Consolidated Parent Consolidated Parent ASSETS Cash & Financial Assets P 10,932.74 P 9,246.10 P 9,262.98 P 9,067.63 18% 2% Trade Receivables 7,474.03 7,606.15 7,805.46 7,963.46 (4%) (4%)
Slide 7: Results of Operations – Income Statement
RESULTS OF OPERATIONS – INCOME STATEMENT June 30, 2016 % June 30, 2015 % Movement % REVENUES Contract Revenues P 9,173.29 P 4,977.54 P 4,195.75 84% Airport Operations Revenues 895.98 723.53 172.45 24% 10,069.27 100% 5,701.07 100% 4,368.20 77% DIRECT COSTS Contract cost 7,626.75 4,145.23 3,481.52 84%
Slide 8: Results of Operations – 1H 2016
RESULTS OF OPERATIONS – INCOME STATEMENT RESULTS OF OPERATIONS – 1H 2016 Actual Actual % 1H 1H % Revenue 2015 2014 Change 2016 2015 Change Airport 9% Consolidated Revenues Const Construction 13,958 9,842 42% 9,173 4,978 84% 91% Airport 1,484 200 642% 896 723 24% Total 15,442 10,042 54% 10,069 5,701
Slide 9: Results of Operations – Key Metrics 1H 2016
RESULTS OF OPERATIONS – KEY METRICS 1H 2016 Profitability Ratios 0.35 25% 23% 0.23 14% 12% 7% 5% Gross Profit Net Profit Margin Return on Equity Earnings per Margin Share June 2016 June 2015 Liquidity Ratios Solvency Ratios 2.36 5.52 4.67 2.02 1.80 1.57 0.70 0.71 Net Debt-to-Equity Interest Debt-to-
Slide 10: Results of Operations – Key Metrics 1H 2016
RESULTS OF OPERATIONS – KEY METRICS 1H 2016 As of 1H 2016 As of Dec 31, 2015 Consolidated Parent Consolidated Parent Gross Profit Margin Construction Segment 17% 17% 15% 15% Airport Segment 81% 77% Consolidated 23% 21% EBITDA Margin Construction Segment 17% 17% 15% 15% Airport Segment 69% 65% Consol
Slide 11: The Megawide Engineering Excellence
1 CONSTRUCTION OPERATIONS 1 The Megawide Engineering Excellence Most advanced pre-cast construction facility in Asia Largest fully computerized and automated Batching Plants in the Philippines Innovative formworks system from Germany Young and modern fleet of equipment Taytay Precast Facilit
Slide 12: The Leading Construction Company in the Country
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY Megawide is a Triple-AAA PCAB Licensed general contractor primarily engaged in civil, structural and architectural works, MEPF, and other specialty engineering services. Megawide has constructed over 6.5 million square meters of gross fl
Slide 13: PPP Projects won during the Aquino Administration
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY 1 PPP Projects won during the Aquino Administration Mactan-Cebu International Southwest Integrated PPP for School Airport Transport System Infrastructure Project 1, 2 GMR-Megawide Cebu Developer MWM Terminals Phase 1 Citicore-Megawide Develo
Slide 14: The Leading Construction Company in the Country
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY 1 Megawide is the preferred contractor of choice for leading property developers with its consistent track record and engineering excellence. Construction Revenues Net Construction Income Income Margin 13% 15,745.18 12.8% 12.3% 6.97% 6.4%
Slide 15: Construction Operations
1 CONSTRUCTION OPERATIONS Construction Revenue 15,745.18 13% Order Book Mix 1H 2016 13,958.49 9,173.29 84% 4,977.54 1H 2015 1H 2016 Y2015 E2016 Office & Comm'l 35% Net Construction Income Residential 47% Income Affordable Housing 10% Margin 7.6% Infra 7% 6.97% 6.4% 4% Power 1% 972.99 1,007.13 10.7%
Slide 16: Construction Operations – Order Book
1 CONSTRUCTION OPERATIONS Order Book New Contracts 42.29 39.06 40.00 37.73 35.00 30.00 22.63 25.00 20.30 18.80 20.00 17.60 14.10 12.90 15.00 12.42 12.40 10.00 5.20 5.00 - Y2011 Y2012 Y2013 Y2014 Y2015 Jun-16 Y2011 Y2012 Y2013 Y2014 Y2015 Jun-16 Megawide continues to enjoy a strong order book and h
Slide 17: New Projects
1 CONSTRUCTION OPERATIONS NEW PROJECTS Project Double Dragon Corporate Office West Project Double Dragon Corporate Office North GFA 26,655 SQ.M GFA 22,309 SQ.M Client Double Dragon Client Double Dragon 17
Slide 18: New Projects
1 CONSTRUCTION OPERATIONS NEW PROJECTS Project Southeast Asian Campus Project One Manchester GFA 84,400 SQ.M GFA 40,000 SQ.M Project St. Moritz Private Estate Project 10 West GFA 35,841 SQ.M GFA 42,537.06 SQ.M 18
Slide 19: New Projects
1 CONSTRUCTION OPERATIONS NEW PROJECTS Project Urban Deca Ortigas Project Urban Deca Tower Cubao GFA 800,256 SQM GFA 131,974 SQM Client 8990 Holdings, Inc. Client 8990 Holdings, Inc. 19
Slide 20: Largest Private Airport Operator in the Philippines
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES On April 22, 2014 the company and its JV Partner GMR won the Concession for brownfield development of Mactan- Cebu International Airport under Build-Operate-Transfer Modality. Concession Period is 25-years. Mactan-Cebu International Airport i
Slide 21: Mactan-Cebu Airport connectivity
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Mactan-Cebu International Airport now connects Cebu to 23 local airports and 12 international destinations and handles as of June 2016. Connectivity: New flights as of JUNE 2016 Los Angeles, USA , Osaka & Nagoya, Japan Taipei, Taiwan Dubai, UAE T
Slide 22: Airport passenger traffic
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Mactan-Cebu Airport handled passenger traffic of 7.97 million in 2015 Since Y2003, traffic has grown at Compounded Annual Growth (CAGR) of 10.12%. The pace of traffic growth over the next 5 years is expected to continue at 10.34% CAGR. Compou
Slide 23: Growth in Sales per Person
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Since handover, the leasable space has increased by 38.5% and is expected to further increase upon completion of Terminal 2. Expanding Retail Stores Exciting Food & Beverage Outlets Growth in Sales per Person 25x 2x 2014 2015 Suvarnabhumi Airport
Slide 24: Awards
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES AWARDS 2014 •Guide to Sleeping in Airports 18th Best Airport in Asia •Partnerships Awards International •Shortlist for Best Transit Project 2015 •Euromoney-IJGlobal Asia Pacific PPP Deal of the Year •The Asset Triple A Infrastructure Awards Best
Slide 25: Airport recurring revenue and income
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Mactan-Cebu International Airport under a Build-Operate-Transfer Modality provides a recurring revenue base and high net income margin for a period of 25 years. Megawide is poised to participate in the bidding for the five (5) regional airports i
Slide 26: Airport Operations – 1H 2016
2 AIRPORT OPERATIONS – 1H 2016 Airport Revenues 1,735.91 Airport Revenue Mix 1H 2016 1,483.89 17% 26% 895.98 24% 723.53 74% Aero Non Aero 1H 2015 1H 2016 Y2015 E2016 Passenger Traffic Volume (in Millions) Airport Income 55% 1H 2015 1H 2016 % Increase 92% 962.77 Domestic 3.10 3.33 7% Net Income Int’l
Slide 27: Progressive Property Transport Developer
3 PROGRESSIVE PROPERTY TRANSPORT DEVELOPER Lease Revenues EBITDA EBITDA Margin 537.55 479.24 425.50 65% 63% 351.90 61% 303.52 259.10 E2019 E2020 E2021 SOUTHWEST INTEGRATED TRANSPORT SYSTEM The Southwest Integrated Transport Terminal is projected to deliver a recurring income base from terminal opera
Slide 28: Fast Growing Pure Renewable Energy Power Generator
4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 100% 100% 100% 100% 100% 96.11% Silay Solar Next Generation Himamaylan Upper Maslog First Toledo Rio Norte Hydro Power, Inc. Power Biomass Power, Hydro Solar Energy Corporation (Negros Technology, Inc. Inc. (Negros Corporation Corp. (Cebu) (Isabel
Slide 29: Fast Growing Pure Renewable Energy Power Generator
4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR The Company currently has 3 types of power assets: 1. Operating projects - total installed capacity of 103MW Solar Power; awaiting FIT 2. Projects under advanced development - total of 110MW of mix Solar (60) Hydro Power (40) and Biomass (12) to
Slide 30: Financial Highlights – Guidance Y2016
FINANCIAL HIGHLIGHTS – Guidance Y2016 Consolidated Revenues Consolidated Income 20,000.00 Net 2,500.00 11.1% 17,754 Income 18,000.00 Margin 15,442 15% 1,973 16,000.00 2,000.00 9.5% 12.8% 14,000.00 34% 12,000.00 1,398 1,474 10,880 1,500.00 8.8% 10,042 10,000.00 887 8,000.00 1,000.00 6,000.00 4,000.00
Slide 31: Historical Earnings Per Share (EPS)
Historical Earnings Per Share (EPS) Megawide Core EPS 0.54 0.48 0.48 0.41 0.36 0.35 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 E 2016 NOTE: Core EPS for FY2013 excludes a one-time trading gain of P306Mn. 31
Slide 32: Business Catalysts
BUSINESS CATALYSTS: The continued stability of the Philippines, coupled with the new Duterte Administration will further give Megawide a foundation for future growth. Increase In $30Bn OFW BPO Sector’s DENR’s thrust: Government Remittance and continued growth green Infrastructure VP Robredo’s Demand
Slide 33: PPP Projects for Bidding
BUSINESS UPDATES PPP Projects for Bidding 5 REGIONAL AIRPORTS PRISON FACILITIES Cost Php 108.2 B Cost Php 50.18 B Mode Operate-Add-Transfer Concession Build- Transfer-and-Maintain (BTM) Cooperation Period 20 Years BACOLOD BOHOL DAVAO CAGAYAN DE ORO ILOILO 33
Slide 34: Summary
SUMMARY Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development with four core business segments: The Largest Building Construction Company in the Country - preferred contractor of blue chip companies Largest Private Airp
Slide 35: Fast Growing Pure Renewable Energy Power Generator
4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR