Megaworld Corp. · PSE:MEG
Megaworld — Q1 2019 Earnings Presentation
18 slides from Megaworld's earnings presentation, 2019
Slide 1: Analyst Briefing 1Q 2019
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Slide 2: Performance Update
PERFORMANCE UPDATE In PHP billions 1Q 2018 1Q 2019 %change Revenues1 13.0 14.7 13.6% • Double-digit growth for all segments Real Estate Sales 8.5 9.5 11.1% • Residential segment continues strong growth Rental 3.4 3.9 16.5% • Rental growth in line with 2020 target Hotel 0.4 0.6 56.1% • Steep growth t
Slide 3: Consolidated Revenue Breakdown
CONSOLIDATED REVENUE BREAKDOWN 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q 2019 70% 69% 68% 66% 64% 75% 72% 71% 72% 73% 82% 14% 16% 17% 17% 23% 24% 25% 27% 13% 19% 11% 1% 1% 2% 1% 2% 1% 11% 12% 12% 11% 9% 2% 3% 3% 3% 4% 5% 6% 6% 5% 6% 5% Residental Revenues Rental Income Hotel Operations No
Slide 4: 1Q 2019 Project Launches
1Q 2019 PROJECT LAUNCHES South Beach Place Sunny Coast Residential Resort Westside City Westside City P 7.9 billion | 7% sold P 5.3 billion | 35% sold 4
Slide 5: 1Q 2019 Project Launches
1Q 2019 PROJECT LAUNCHES Countrywoods Cluster 2 Twin Lakes P 920 milllion | 54% sold Two Regis The Upper East P 1.6 billion 23% sold The Albany - Yorkshire McKinley West P 3.0 billion | 48% sold 5
Slide 6: 1Q 2018 Project Launches
1Q 2018 PROJECT LAUNCHES # Megaworld Corporation Township P 23.1 bn 1 South Beach Place Westside City P 7.9 bn Sunny Coast Residential 2 Westside City P 5.3 bn Resort 3 Two Regis Upper East P 1.6 bn 4 One Corporate Maple Grove P 1.5 bn 5 The Albany Yorkshire Mckinley West P 3.0 bn 6 Saint Mark Resid
Slide 7: Sales Reservations
SALES RESERVATIONS Cumulative 135.5 in PHP billions 14.3 105.0 105.8 30.0 10.9 11.6 87.6 10.9 80.5 23.6 76.1 23.6 8.2 63.5 58.3 8.4 8.2 23.6 5.8 17.7 16.1 48.0 • Group - ↑13% 41.9 17.7 12.6 42.7 91.1 4.6 5.8 1.9 8.0 26.1 70.5 7.3 70.6 19.9 12.6 53.0 2.9 54.6 51.6 2.9 37.6 5.6 39.9 33.5 35.5 5.6 11.3
Slide 8: Stable Overall Residential Margins
STABLE OVERALL RESIDENTIAL MARGINS in PHP billions 46.0% 47.1% 46.0% 44.3% 44.9% 40.5% 36.9% 36.8% 17.5 34.4% 36.1% 16.1 13.2 13.6 11.4 8.6 6.7 5.7 4.6 4.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gross Profit Gross Profit Margin In PHP billions 1Q 2018 1Q 2019 %Change Real Estate Sales 8.5
Slide 9: Diversified Real Estate Sales Mix
DIVERSIFIED REAL ESTATE SALES MIX In PHP billions 1Q 2018 1Q 2019 %Change Established Areas 7.0 6.2 -11.1% • 65% from establish areas providing stable base Taguig 2.1 1.9 -12.0% • MM ex-Westside City contributes 50% of total RES Makati 1.3 0.7 -46.4% Laguna 0.4 0.7 73.9% • Robust growth in Luzon tow
Slide 10: Growing Rental Income Driven by Office & Lifestyle Mall Leasing
GROWING RENTAL INCOME DRIVEN BY OFFICE & LIFESTYLE MALL LEASING YoY QoQ 20 in PHP billions in PHP billions 3.7 3.8 3.9 15.2 3.4 3.4 G R 20% 2.9 2.9 3.0 3.0 CA 12.5 10.6 2.2 2.3 2.4 9.0 8.7 2.1 2.1 7.3 1.8 1.8 1.8 1.8 6.2 7.3 6.0 5.1 17% 3.3 4.1 3.6 4.2 4.6 5.5 2.4 1.3 1.3 1.4 1.5 1.5 3.6 4.0 2.1 1.1
Slide 11: Office Pipeline
OFFICE PIPELINE 2019 Acrovia City One Paseo 23,100 Davao Park District Clocktower 1,300 Iloilo Business Park One Fintech Place 16,300 McKinley West One LeGrand Tower 48,300 Uptown Bonifacio World Commerce Place 103,500 Total GLA 192,500 sqm 2020 Capital Town Pasudeco Tower 1 10,000 Iloilo Business P
Slide 12: Commercial Pipeline
COMMERCIAL PIPELINE 2019 Alabang West Alabang West Retail 1 Arcovia City One Paseo Arcovia City The View Deck Boracay Newcoast Boracay Belmont Davao Park District Clock Tower Davao Park District Davao Finance Center Eastwood City Eastwood Global Plaza Eastwood City One Eastwood Tower 2 Iloilo Busine
Slide 13: Commercial Pipeline
COMMERCIAL PIPELINE 2020 Boracay Newcoast Boracay Beachfront Boracay Newcoast Boracay Arrival Davao Park District Art Deco Davao Park District Colonnade Highland City Skymall Iloilo Business Park One Fintech Place Iloilo Business Park Two Fintech Place Mactan Newtown Mactan Newtown Beach Maple Grove
Slide 14: Growing Rental Income – High Margin Business
GROWING RENTAL INCOME – HIGH MARGIN BUSINESS Current EBIT Mix Current EBITDA Mix Rental Rental 50% 53% Hotel Operations Hotel Operations Real Estate 1% 2% 49% Real Estate 45% In PHP billions 1Q 2018 1Q 2019 %change Revenues Rental 3.4 3.9 16.5% Intersegment Sales & 0.2 0.3 22.9% Interest Income Rent
Slide 15: Debt Maturity Profile
DEBT MATURITY PROFILE Gross Debts Loans in PHP billions 74.9 75.7 73.3 61.2 25.1 Floating 34.4 25.1 52.6 Rate 22.3 20% 20.9 33.5 28.6 Fixed 50.6 48.1 Rate 24.8 38.9 40.5 24.8 31.7 80% 3.8 8.8 2013 2014 2015 2016 2017 2018 1Q 2019 Bonds Loans Bonds Coupon Rate Date Issued Maturity $250,000,000 4.25%
Slide 16: Solid Balance Sheet
SOLID BALANCE SHEET 42% 46% in PHP billions 39% 36% 41% 38% 31% 31% 30% 28% 26% 22% 74.9 75.7 73.3 7% 61.2 52.6 31.8 33.5 28.6 25.1 22.8 16.4 16.4 17.5 16.3 2013 2014 2015 2016 2017 2018 1Q 2019 Gross debt Cash and cash equivalents Debt to Equity Ratio Net Debt to Equity Ratio 2013 2014 2015 2016 20
Slide 17: 5-Year Capex Plan
5-YEAR CAPEX PLAN PHP285.8B UNTIL 2019 2015 2016 2017 2018 2019 PHP54.5B PHP49.0B PHP48.9B PHP55.2B PHP65B CAPEX Allocation Actual CAPEX in PHP billions 54.5 55.2 4.3 49.0 48.9 5.9 2.8 4.2 25% P16B 55% P36B 50.2 46.2 49.3 44.7 20% P13B 13.0 13.0 2015 2016 2017 FY 2018 1Q 2019 Residential Investment
Slide 18: Key Takeaways
KEY TAKEAWAYS • Diversified township roster • 24 townships across the country • Growing contributions from outside MM • High residential base • High blended GPM at ~46% FY 2018 presales at P48bn (~P140bn 2019 guidance) FY 2018 launches at P24bn (~P105bn 2019 guidance) • Growing high margin rental bu