Megawide Construction Corporation · PSE:MWIDE

Megawide Construction — 9M 2020 Earnings Presentation

37 slides from Megawide Construction's earnings presentation, Nov 17, 2020

  1. Slide 1: Analyst Briefing: Operating and Financial Results, Nine Months of 2020

    ANALYST BRIEFING 17 November 2020 Operating and Financial Results Nine Months of 2020

  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: Consolidated Income Statement

    CONSOLIDATED INCOME STATEMENT In PhP M 9M2020 9M2019 YoY% REMARKS Total Revenues 9,032 13,694 -34% Construction 7,412 10,526 -30% Quarantine guidelines / suspension Airport Operations 998 2,714 -63% Travel bans due to COVID-19 Airport Merchandising 70 248 -72% Landport Operations 552 207 167% Lease

  4. Slide 4: Financial Highlights

    FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME / (LOSS) (PhP M) 13,694 3,537 835 207 67 248 100 379 2,714 9,032 117 431 3 552 1,723 1,752 -266 998 70 10,526 485 11 -771 274 7,142 1,696 983 (918) 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 BREAKDOWN REVENUE EBITDA NET

  5. Slide 5: Margin Performance

    MARGIN PERFORMANCE In PhP M 9M2020 9M2019 FY 2019 REMARKS Gross Profit Margin 19% 24% 23% Construction 11% 14% 13% Suspension of activities due to quarantine Airport Operations 45% 58% 58% Lower revenue due to travel bans Airport Merchandising 72% 75% 73% Terminal Operations 82% 28% 44% Lease commen

  6. Slide 6: Financial Position

    FINANCIAL POSITION 30 September In PhP M 31 Dec 2019 Movement % Change 2020 Cash & Financial Assets 4,251 6,519 -2,268 -35% Other Current Assets 28,629 28,947 -318 -1% Current Assets 32,880 35,466 -2,586 -7% Concession Assets 29,791 29,437 354 1% Non Current Assets 44,883 45,299 -416 -1% Total Asset

  7. Slide 7: Liquidity and Gearing Ratios

    LIQUIDITY AND GEARING RATIOS In PhP M 30 September 2020 31 December 2019 Parent1 GMCAC2 Conso Parent1 GMCAC2 Conso Cash/financial assets 1,901 1,097 4,251 3,592 1,169 6,519 Total Debt 19,013 23,891 46,814 19,573 24,278 47,753 Equity 11,137 8,551 16,170 12,300 9,322 17,999 D-E Ratio 1.71x 2.79x 2.90x

  8. Slide 8: COVID Tracing: Effects on Operations

    COVID TRACING: EFFECTS ON OPERATIONS ECQ MECQ GCQ MECQ GCQ (March 16 – (May 16 – (June 16 – (Aug 4 – (Aug 19 – May 15) June 15) Aug 3) Aug 18) Sep 30) • Operations • Construction • Private construction suspended • Essential sectors activities continue resume (proper • Anti-COVID 19 allowed as usual

  9. Slide 9: Engineering, Procurement & Construction

    ENGINEERING, PROCUREMENT & CONSTRUCTION

  10. Slide 10: Healthy and Diverse Order Book

    HEALTHY AND DIVERSE ORDER BOOK Order Book (PhP B) SEGMENT 100 No. of Projects 60.0 90 Office, Commercial and 80 50.0 Industrial, 37% 50.1 52.4 70 40.0 60 39.1 40.7 38.5 50 30.0 Residential, 58% 32.6 40 30 20.0 50 43 20 37 41 10.0 30 22 10 0 0.0 2015 2016 2017 2018 2019 9M2020 Infra and Facilities, 5

  11. Slide 11: Slowly Catching Up

    SLOWLY CATCHING UP QUARTERLY PERFORMANCE (PhP M) 4,783 SAFETY PROTOCOLS: 4,342 • Testing of personnel 3,737 3,626 3,799 3,616 • Expanded barracks 2,989 2,568 2,551 • Physical distancing 2,336 • Lock-in status 1,063 • 50-60% workforce present • Concentration on live projects 1Q18 2Q18 3Q18 4Q18 1Q19

  12. Slide 12: Airport Operations

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  13. Slide 13: Travel Ban Effect

    TRAVEL BAN EFFECT 978 918 904 892 SAFETY PROTOCOLS: 857 816 809 • COVID testing (results within 24 hours) 676 646 • Contactless interaction • Cashless purchases • Physical distancing 116 74 • Floor markings and safety signages • Single Terminal (T2 for Int’l Arrivals) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3

  14. Slide 14: Domestic-Passenger and PSC Driven

    DOMESTIC-PASSENGER AND PSC DRIVEN PASSENGER TYPE REVENUE BREAKDOWN Aero, 12% Int'l 30% PSC, 46% Non-Aero, Domestic 42% 70% 13

  15. Slide 15: PSC Affected by Slower Passenger Traffic

    PSC AFFECTED BY SLOWER PASSENGER TRAFFIC PASSENGER VOLUME INTERNATIONAL 9M2020 BREAKDOWN -76% 772K 46% DOMESTIC P461M -69% YoY -71% 1.8M 14

  16. Slide 16: Air Traffic Movement Restricted

    AIR TRAFFIC MOVEMENT RESTRICTED AIR TRAFFIC MOVEMENT INTERNATIONAL 9M2020 BREAKDOWN -73% 12% 5.7K P118M -64% YoY DOMESTIC -67% 18.8K 15

  17. Slide 17: Expanding Non-Aero Revenue Share

    EXPANDING NON-AERO REVENUE SHARE NON-AERO SHARE TO TOTAL 9M2020 BREAKDOWN 42% 34% 31% 32% 28% 23% P420M 21% -33% YoY 42% 2014 2015 2016 2017 2018 2019 9M2020 16

  18. Slide 18: Landport Operations

    LANDPORT OPERATIONS

  19. Slide 19: Adapting to New Normal

    ADAPTING TO NEW NORMAL OFFICE (72K sqms) • 100% leased out • P1,000/sqm/month (ave) Operational Leased out Under nego RETAIL (12K sqms) 29% 29% 24% 23% 23% 23% 23% 23% 23% 27% • 80% leased out • 60% operational 23% 16% 16% 16% 16% 16% 16% 12% • P1,200/sqm/month (ave) 37% 42% TENANT MIX 61% 61% 61% 6

  20. Slide 20: Resumption of Leases

    RESUMPTION OF LEASES RENTAL REVENUE (in Php M) Office Commercial POST QUARANTINE PROTOCOLS: • Automated temperature reading 32 31 • Sanitizing stations • Physical distancing 53 199 185 • Additional PTP routes 93 24 • Increased bus seating capacities 4Q2019 1Q2020 2Q2020 3Q2020* *PAS adjustment of –P

  21. Slide 21: Slowly Reaching Normalcy

    SLOWLY REACHING NORMALCY AVERAGE SPP (Php) AVERAGE FOOT TRAFFIC (‘000) 35 62.4 60.9 33 59.7 31 31 55.6 68.0 28 28 29 49.6 48.2 26 26 59.8 24 55.8 51.9 42.0 36.4 36.6 20 45.1 39.3 40.6 29.0 16 27.0 10 7.3 6 7 6 4 5 5 20

  22. Slide 22: Recent Developments

    REECENT DEVELOPMENTS

  23. Slide 23: Preferred Shares

    PREFERRED SHARES • SEC issuance of Registration Order and Permit to Sell  Issue Size: PHP3.0B (with PHP2.0B oversubscription option)  Indicative Rate: Series 2A @4.75% (2.5 years) Series 2B @5.75% (5 years)  Offer Period: November 10-17, 2020  Target Listing: November 27, 2020  Joint Lead Under

  24. Slide 24: NAIA Rehabilitation Project (OPS)

    NAIA REHABILITATION PROJECT (OPS) ORIGINAL PROPONENT STATUS  GMR 40% equity participation in consortium  P109B Total Project Cost  NEDA-TWG evaluation  Compliant with BOT Law Sec 5.4 (c) PASSENGER VOLUME PERFORMANCE Year (in millions) Growth (YoY) 2013 33 3% 2014 34 4% 2015 37 7% 2016 40 8% 2017

  25. Slide 25: Our NAIA Proposal

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  26. Slide 26: Phase

    PHASE 1 * Initial Security Check reconfiguration * Entrance Canopy upgrade + Terminal Facilities * Check-in and Retail Area reconfiguration * Baggage Handling System (8HS) improvements arking Improvement * Canopies provision + Drainage improvernents * Terminal Facilities * Check-in Area reconfigurat

  27. Slide 27: Megawide Engineering A First-World Philippines

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  28. Slide 28: Capacity Augmentation

    CAPACITY AUGMENTATION

  29. Slide 29: Concept: The NAIA Green Valley

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  30. Slide 30: Existing Car Park Existing Terminal

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  32. Slide 32: Green Valley

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  34. Slide 34: PITX Lot 2 Development

    PITX LOT 2 DEVELOPMENT DESIGN, DEVELOPMENT AND O&M  Undergoing Final Design and Conceptualization  ~P5B Total Project Cost  Development timetable: 1-2 years 33

  35. Slide 35: Carbon Market Redevelopment (OPS)

    CARBON MARKET REDEVELOPMENT (OPS) ORIGINAL PROPONENT STATUS  JV with Cebu Local Government Unit  P5B Total Project Cost (Ph1 P2B)  Swiss Challenge period ended Nov 11, 2020 34 34

  36. Slide 36: Pre-Cast Capacity Build-Up

    PRE-CAST CAPACITY BUILD-UP PRE-CAST CAPACITY (m3/month) EXISTING 9,900 2019 New 2,922 2020 Planned 6,948 TOTAL 19,770 2023-2024 Forecast 40,000 AFFORDABLE/SOCIALIZED HOUSING SEGMENT HORIZONTAL INFRASTRUCTURE 35 35

  37. Slide 37: Thank you

    fil MEGAWIDE A First- World Philippines Thank you Contact us Follow us

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