Megaworld Corp. · PSE:MEG

Megaworld — FY2017 Earnings Presentation

14 slides from Megaworld's earnings presentation, 2018

  1. Slide 1: Results Briefing FY 2017

    Results Briefing FY 2017

  2. Slide 2: Performance Update

    PERFORMANCE UPDATE In PHP billions 2016 2017 %change Revenues 46.7 50.3 7.6% Real Estate Sales 27.5 28.9 5.3% • Driven by an expanding geographical sales mix Rental 10.0 11.8 18.2% • Healthy rental income growth in line with expectations Hotel 1.2 1.3 14.9% Other Revenues 8.1 8.2 1.5% Cost & Expense

  3. Slide 3: Consolidated Revenue Breakdown

    CONSOLIDATED REVENUE BREAKDOWN 2016 2017 Rental Income Rental Income Real Estate 21% Real Estate 24% 71% 69% Hotel Operations Hotel Operations 3% 3% Interest & Other Interest & Other 5% 4% In PHP billions 2016 2017 %change Real Estate Sales 27.5 28.9 5.3% Interest income on 1.7 1.7 2.7% • 4.5% incre

  4. Slide 4: Project Updates

    PROJECT UPDATES The Albany – Kingsley, McKinley West Saint Honore, Iloilo Business Park P2.4 bn | 35% take-up P700 mn| 91% take-up Maple Grove Commercial District Eastland Heights Village, Eastland Heights P8.3 bn| 73% take-up P2.6bn| 8% take-up 4

  5. Slide 5: Stable Overall Residential Margins

    STABLE OVERALL RESIDENTIAL MARGINS In PHP billions 2016 2017 %change Real Estate Sales (RES) 27.5 28.9 5.3% +Interest income on 1.3 1.4 7.3% Real Estate Sales Total RES 28.8 30.3 5.4% -Cost of RES 15.5 16.3 5.1% Gross Profit on RES 13.3 14.0 5.7% Gross Profit Margin 46.1% 46.3% +20bps • Sustainable

  6. Slide 6: Diversified Real Estate Sales Mix

    DIVERSIFIED REAL ESTATE SALES MIX in PHP billions 2016 (% of sales) 2017 (% of sales) 2017 by Brand 2017 by Location MEG 19.0 69% 20.1 70% MM Taguig 6.1 22% 6.1 21% Ex-Fort GERI Bonifacio Makati 3.0 11% 3.8 13% 16% 52% MEG Pasay& Parañaque 2.8 10% 2.6 9% 70% Fort ELI Bonifacio 15% Luzon Quezon City

  7. Slide 7: Growing Rental Income – High Margin Business

    GROWING RENTAL INCOME – HIGH MARGIN BUSINESS In PHP billions 2016 2017 %change Revenues Rental 8.7 11.8 19.0% Intersegment Sales & 0.6 0.7 9.0% Interest Income Rental Revenues 9.3 12.5 17.6% -Operating Expense 3.0 3.5 17.4% Rental Operating Income 6.3 9.0 17.7% +Interest Expense 0.4 0.5 9.0% Rental

  8. Slide 8: Growing Rental Income Driven by Office & Commercial Leasing

    GROWING RENTAL INCOME DRIVEN BY OFFICE & COMMERCIAL LEASING Increasing Rental Income (in PhP billions) Rental 20 • P10bn in 2016 • P20bn in 2020 12.1 • Over 1 million GLA in 10.3 8.9 2016 7.2 17% 6.2 15% 6.0 7.3 • Over 2 million GLA in 5.1 3.3 4.1 23% 2020 27% 3.6 4.0 4.6 2.7 2.9 0.2 0.2 0.2 0.3 0.2

  9. Slide 9: Solid Balance Sheet

    SOLID BALANCE SHEET in PHP billions 46% 43% 39% 36% 31% 28% 26% 25% 22% 74.9 61.2 7% 52.6 31.8 33.5 26.8 28.6 25.1 22.8 20.1 16.4 16.4 2012 2013 2014 2015 2016 2017 Total Borrowings Cash & Cash Equivalents Debt to Equity Net Debt to Equity FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 2017 Debt to Equity

  10. Slide 10: Debt Maturity Profile

    DEBT MATURITY PROFILE Borrowings Loans 69.8 in PHP billions 61.2 Floating 52.6 40.5 Rate <1% 38.9 33.5 31.7 28.6 3.8 8.8 Fixed 20.1 Rate 6.5 34.4 99% 24.8 24.8 20.9 22.3 13.6 2012 2013 2014 2015 2016 2017 Bonds Loans Bonds Coupon Rate Date Issued Maturity $250,000,000 4.25% April 2013 2023 $200,000,

  11. Slide 11: 5-Year Capex Plan

    5-YEAR CAPEX PLAN PHP285.8B UNTIL 2019 PHP285.8B 2015 2016 2017 2018 2019 PHP54.5B PHP48.8B PHP48.9B PHP60B 2017 CAPEX Spending 2018 CAPEX Budget Investment Properties Investment 30% Residential Residential Properties P28 B 50% P16.7 B Land Land Acquisitions Acquisitions 20% P4.2 B 11

  12. Slide 12: Total of 23 Townships Covering 4,004 Hectares

    Megaworld PHILIPPINE’S PREMIER TOWNSHIP DEVELOPER AND GERI PIONEER OF THE “LIVE-WORK-PLAY-LEARN” LIFESTYLE Suntrust 35.6 ha 18.5 ha 5 ha 12.4 ha 50 ha 25 ha 34.5 ha 640 ha 15.4 ha 62 ha 31 ha 561 ha 140 ha * 300 ha 1,200 350 ha ha 150 ha Total of 34 ha 30 ha 23 Townships 53 ha 72 ha Covering 173 ha

  13. Slide 13: Key Takeaways

    KEY TAKEAWAYS • Diversified township roster • 23 townships across the country • Growing contributions from outside MM • High residential base • High blended GPM at ~46% 2017 presales at P105bn (P110bn 2018 guidance) 2017 launches at P39bn (P60bn 2018 guidance) • Growing high margin rental business •

  14. Slide 14: Results Briefing FY 2017

    Results Briefing FY 2017

Megaworld — FY2017 Earnings Presentation on 6ix