Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — FY2018 Earnings Presentation
44 slides from Megawide Construction's earnings presentation, 2019
Slide 1: Investor Presentation FY2018 Results
INVESTOR PRESENTATION FY2018 RESULTS 1
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: Our Milestones
OUR MILESTONES EXCELLENCE IN G (_) YEARS PITX(PPP) INITIAL PUBLIC a i. _ Foi FASE ch START OF MEGAWIDE nenbicree pirate OPERATIONS ase end sired contruction fem can Hemevetcle MCIA T2 AND PITX 1997 2015 2018 a = @ gE al = a 2007 2012 2014 2017 TRIPLE A LICENSE PSIP PHASE 1 (PPP) QUADRUPLE A FIRST HG
Slide 4: Company Background
COMPANY BACKGROUND A publicly listed diversified engineering conglomerate focused on CONSTRUCTION and INFRASTRUCTURE DEVELOPMENT Engineering, Procurement, Transport and Construction Infrastructure Residential Office and Infrastructure Industrial Airport Progressive Property Dev’t Commercial 4
Slide 5: Philippines' Growth Drivers
PHILIPPINES’ GROWTH DRIVERS ROBUST INFRASTRUCTURE SPENDING PHP8.0 TRILLION (2017-2022) 5% OF GDP STABLE GDP GROWTH RESILIENT OFW REMITTANCES 6.2% (FY2018) 3.0% (FY2018) 6.6% (2019E)* US$32.2BN YOUNG POPULATION INCREASING TOURIST ARRIVALS TOTAL: 107.4M* 7.7% (FY2018)*** MEDIAN AGE: 23.5** 7.13M GROWI
Slide 6: FY2018 Consolidated Income Statement
FY2018 CONSOLIDATED INCOME STATEMENT In Php M FY2018 FY2017 Mov’t % Remarks Total Revenues 15,992 19,159 -3,167 -17% Lower construction revenues Construction 12,688 16,713 -4,024 -24% Due to timing of project completion Airport Operations 2,996 2,298 698 30% 15% growth in passenger volume Airport Me
Slide 7: FY2018 Financial Highlights
FY2018 FINANCIAL HIGHLIGHTS YoY PERFORMANCE REVENUES (PHP m) EBITDA (PHP m) NET INCOME (PHP m) 19,159 148 4,349 4,589 125 2,248 2,298 15,992 64 96% 290 96% 43 1,894 2,996 1,641 2,109 29% 98 128% 30% 1,115 940 (16%) 16,713 12,688 (24%) 2,644 2,355 (11%) 1,090 857 (21%) FY2017 FY2018 FY2017 FY2018 FY2
Slide 8: Margin Performance
MARGIN PERFORMANCE In PHP M FY 2018 FY 2017 FY 2016 Gross Profit Margin 27% 24% 22% Construction 15% 16% 15% Airport Operations 75% 82% 81% Airport Merchandising 76% 72% - EBITDA Margin 29% 23% 20% Construction 19% 16% 15% Airport Operations 70% 71% 70% Airport Merchandising 43% 43% - Net Income Mar
Slide 9: Financial Position
FINANCIAL POSITION In PHP m 31-Dec-18 31-Dec-17 Movement % Change Cash & Financial Assets 5,761 8,140 (2,379) -29% Other Current Assets 19,029 10,559 8,470 80% Total Current Assets 24,790 18,699 6,091 32% Concession Assets 28,289 25,608 2,681 10% Total Non Current Assets 41,115 35,719 5,396 15% Tota
Slide 10: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS MARGINS PROFITABILITY 27% 14% 13% 0.80 24% 12% 21% 22% 12% 10% 0.70 9% 0.60 17% 10% 8% 7% 0.50 11% 12% 12% 10% 0.40 9% 6% 0.30 4% 0.20 2% 0.10 0.35 0.41 0.57 0.70 0.56 0% 0.00 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Gross Profit Margin Net Margin Earnings per s
Slide 11: Engineering, Procurement, and Construction (EPC)
1 Engineering, Procurement, and Construction (EPC)
Slide 12: Leading Construction Company in the Country
LEADING CONSTRUCTION COMPANY 11 IN THE COUNTRY Megawide integrates innovative construction technologies that deliver precision, savings, and speed TAYTAY PRECAST FACILITY Precast production Batching plants Location Taytay, Rizal Formwork systems Operational September 2012 Land Area About 71,00
Slide 13: Quadruple A PCAB-Licensed General Contractor
QUADRUPLE A PCAB-LICENSED 11 GENERAL CONTRACTOR MAJOR CLIENTS Primarily engaged in Civil, Structural, MEPF, Architectural, and other specialty engineering services such as Line and Grade, Earthworks, and BIM 13
Slide 14: Solid Track Record in Various Infrastructure Projects
SOLID TRACK RECORD IN VARIOUS 11 INFRASTRUCTURE PROJECTS 1 PPP for School Infrastructure Mactan Cebu Paranaque Integrated Terminal Clark International Airport Project Phases 1 & 2 International Airport Exchange (Hybrid PPP) Combined Project Cost: Project Cost: Php34 billion Project Cost: Php5.6 bill
Slide 15: Significant Contribution
11 SIGNIFICANT CONTRIBUTION REVENUES NET INCOME (PHP m) (in PHP bn) Revenue Net Income GP Margin Net Margin 17.5% 14.0% 1200 18.0 12.9% 17.0% 12.3% 16.0 12.0% 16.5% 17.0% 1000 16.4% 16.0% 9.7% 14.0 16.0% 10.0% 16.2% 15.0% 800 12.0 8.4% 15.5% 15.0% 15.0% 10.0 8.0% 7.0% 7.0% 7.0% 15.0% 14.2% 6.4% 600
Slide 16: Healthy Project Pipeline
11 HEALTHY PROJECT PIPELINE ORDER BOOK VS REVENUE FY2018 ORDER BOOK (SEGMENT) 60.0 Order book 20.0 Infrastructure 16.7 50.0 Revenue 15.8 18.0 10% 14.0 16.0 Commercial 40.0 14.0 and 10.9 12.7 Industrial 9.8 Order 12.0 backlog 23% 30.0 8.2 10.0 > 2-3 8.0 20.0 years 6.0 4.0 Residential 10.0 67% 2.0 18.
Slide 17: Airport Business Segment
TRANSPORT INFRASTRUCTURE 2 Airport Business Segment
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Slide 19: Strategic Location
2 STRATEGIC LOCATION 2 2nd largest city in the Philippines ~2.9 Million people1 Strong export sector Natural hub of Phil archipelago ~80% of inter-island shipping capacity in Phils2 Tourism gateway A preferred BPO location Among Top 20 BPO locations globally3 Among top-ranked destinations ~20% 5-yea
Slide 20: Increased Connectivity
2 INCREASED CONNECTIVITY 30 Domestic Destinations* (From 23 in November 2014) Average of 100 inbound and 100 outbound domestic flights per day* 20 International Destinations* (From 7 in November 2014) Average of 39 inbound and 39 outbound international flights per day* 20 *as of Jan 2019
Slide 21: Expanding Airline Partnerships
2 EXPANDING AIRLINE PARTNERSHIPS 2 26 Partner Carriers 7 domestic carriers 19 foreign carriers 21
Slide 22: Efficient and Multi-Awarded Operations
2 EFFICIENT AND MULTI-AWARDED OPERATIONS 2018 2017 CAPA Center for Aviation Best Airport for Asia-Pacific Property Guru Award Special Recognition for (10-20 MPPA Category) Public Facility 2016 2015 22
Slide 23: Exciting Product Offerings
2 EXCITING PRODUCT OFFERINGS Non-food retail outlets F & B area 96% operational (4th Quarter 2018) 100% leased-out and operational 100% operational (1st Quarter 2019) 23
Slide 24: Creating Better Value
2 | CREATING BETTER VALUE Operating Statistics Handover 2014 Currently . . ~56K ATM ~100K ATM Air Traffic Movement F/ F 7 F / F 7 annually annually e@eeeee 4.5M 42.5M ; , .5M pax OM pax Terminal Capacity REE annually annually 38.5K 100K Terminal Area e .m. .m. ld sam sam ~3,000 Sq. m. ~6,000 Sq. m.
Slide 25: Robust Traffic Growth
22 ROBUST TRAFFIC GROWTH 193.0 AIR TRAFFIC PASSENGER TRAFFIC 30.4 (in ‘000) 174.0 (in millions) 39.4 Domestic Int'l 152.2 26.2 10.2 36.1 Domestic Int'l 125.2130.6 32.0 21.7 9.0 119.4 112.1116.3 99.5 27.8 28.0 17.5 7.5 16.3 86.6 25.0 26.5 27.7 15.3 14.0 6.0 72.6 25.3 12.7 5.7 21.3 153.6 11.5 5.4 56.3
Slide 26: Steadily Growing Revenues
2 STEADILY GROWING REVENUES AIRPORT REVENUE* AVERAGE REVENUE PER PASSENGER** (In Php M) (PHP) 2,996 30% AERO-RELATED 372 26% NON-AERO PSC 2,298 23% 295 27% 970 34% 1,872 26% 232 38% 1,484 642% 723 36% 168 536% 57% 532 260 701% 339 232 29% 210 186 1,655 16% 1,280 644% 1,108 13% 200 977 26 42 29 131 2
Slide 27: Diverse Recurring Streams
22 DIVERSE RECURRING STREAMS REVENUE MIX *Non- regulated 13% QUARTERLY REVENUE Regulated (in Php M) 2016 2017 2018 45% +51% 32% 55% +42% 858 +13% +15% 816 +26% +18% +17% +32% 676 646 570 586 568 575 PSC Non-aero Aero-related 483 493 465 1st Step-Up: Effective June 2015 431 Passenger 2nd Step-Up: Eff
Slide 28: Healthy Financial Performance
22 HEALTHY FINANCIAL PERFORMANCE EBITDA * NET INCOME ** 75% 2,500 80% 71% 60% 1,200 70% 70% 49% 65% 70% 2,000 50% 48% 1,000 60% 40% 800 1,500 45% 50% 34% 40% 30% 31% 600 25% 1,000 30% 20% 400 20% 500 10% 200 10% 90 971 1,302 1,641 2,109 49 501 903 1,115 940 0% 0 - 0% 2014 2015 2016 2017 2018 2014 20
Slide 29: Growing Passenger Mix
22 GROWING PASSENGER MIX PASSENGER MIX International International 31% 33% 2017 2018 Domestic Domestic 69% 67% BREAKDOWN OF INT’L TOURISTS 2018 % OF CEBU TO TOTAL PH INT’L ARRIVALS 7.1 Others 15% 6.6 Korea 42% Taiwan 2% 6.0 EU, 4% Australia 2% USA 6% China 11% 1.9 29% 2.8 35% 1.6 30% 2016 2017 2018
Slide 30: Increasing Capacity for Growth
2 INCREASING CAPACITY FOR GROWTH TOTAL TERMINAL AREA (sqms) Capacity Augmentation T2 19,970 TOTAL PROJECT COST T1 P34.0BN 1 July 2018: 62,315 62,315 62,315 Operational P6.6Bn 7 June 2018: Capacity Inauguration Augmentation 38,483 38,483 42,541 42,541 May-June 2018: 2014-2017 E2018 E2019-2023 E2024 T
Slide 31: Integrated Transport Exchange Business Segment
TRANSPORT INFRASTRUCTURE 3 Integrated Transport Exchange Business Segment
Slide 32: First Landport in the Philippines
33 FIRST LANDPORT IN THE PHILIPPINES 2 Owner Location MWM Terminals (Megawide-Waltermart) Manila-Cavite Expressway, Paranaque City Project Size 4.59 Hectares Agreement Build-Transfer-Operate for 35 years Project Cost Php 5.6 B Opening Date Nov 4, 2018 Terminal area: 1,000 buses/200k passengers O
Slide 33: World-Class Terminal Features
3 WORLD-CLASS TERMINAL FEATURES MULTI-MODAL TRANSPORT OPTIONS FOOT TRAFFIC 53,798 • Provincial bus 51,813 • City bus 38,147 36,400 41,470 • UV Express Shuttle 28,279 • P2P 16,216 9,861 • PUJs/Taxi • Ride Sharing Nov-18 Dec-18 Jan-19 Feb-19 • Future LRT Connection Peak Average 33
Slide 34: Recurring Income Streams
3 RECURRING INCOME STREAMS OFFICE Tower 2 Tower 4 Tower 1 T/O Date: May 2019 Tower 3 T/O Date: T/O Date: June 2019 On-going leasing T/O Date: Mar 2019 Pre-leased Feb 2019 Pre-leased BPO Pre-leased POGO POGO RETAIL (40% of area leased)* SOON: OPERATIONAL PER CATEGORY OPERATIONAL SOON: • Bank • Access
Slide 35: Stable Source and Returns
3 STABLE SOURCE AND RETURNS LEASING REVENUE BREAKDOWN ESTIMATED EARNINGS Retail Podium 1,062 1,011 17% 62% 60% 658 607 445 57% 255 Office E2019 E2020 E2021 Towers 83% Lease revenue (PHPm) EBITDA (PHPm) EBITDA Margin 35 35
Slide 36: Business Updates
BUSINESS UPDATES
Slide 37: Clark International Airport (Hybrid PPP)
CLARK INTERNATIONAL AIRPORT (Hybrid PPP) Engineering Procurement & Construction Operations and Maintenance (O&M) Construction of new building terminal to November 9, 2018 Bidding accommodate 8 mppa: 53% completion Participated: Contract Cost: P9.36 Billion Bought bid documents: • Megawide-GMR •
Slide 38: MCIA Expansion Project (Unsolicited Proposal)
MCIA EXPANSION PROJECT (Unsolicited Proposal) Three Main Phases: Phase 1: Takeover airside facility and subsequently undertake the following: a. rehabilitation of the existing runway and taxiways b. construction of an additional full length parallel taxiway c. development of additional rapid exit ta
Slide 39: NAIA Rehabilitation Project (Unsolicited Proposal)
NAIA REHABILITATION PROJECT (Unsolicited Proposal) Megawide-GMR Proposal Infrastructure Plan Project Cost P150Bn 1. Improve airside capacity and Concession Period 18 Years implement terminal improvements Technical Partner Mitre Corporation 2. Introduction of key performance 3rd Runway Not viable mea
Slide 40: PNR East West Rail Project (Unsolicited Proposal)
PNR EAST WEST RAIL PROJECT (Unsolicited Proposal) Connecting Stations Type In October 2015, the Consortium of East West Rail Network Corporation (EWRC) and Alloy MTD (Alloy) made Lerma Elevated LRT-1, LRT-2 an unsolicited proposal for undertaking the East UST Elevated West Transit Rail Project, wh
Slide 41: Dividend History
DIVIDEND HISTORY Record Date Type Amount Date of Payment October 14, 2011 Common Shares P257,100,001.00 November 10, 2011 July 20, 2012 Cash P150,024,528.20 August 15, 2012 July 19, 2013 Stock P380,636,801.00 August 14, 2013 October 22, 2014 Stock P750,000,000.00 November 17, 2014 February 27, 2015
Slide 42: Business Catalysts
BUSINESS CATALYSTS The continued stability of the Philippine economy, coupled with the Duterte Administration`s Build, Build, Build program, will further give Megawide a foundation for future growth. Increase In $30Bn OFW BPO Sector’s Government Remittance and continued growth; Infrastructure 4.65Mn
Slide 43: Company Information
COMPANY INFORMATION Company Name Office Address Telephone Numbers Website Email Address Megawide Construction Corporation 20 N. Domingo St., Brgy. Valencia, Quezon City (02) 655-1111 www.megawide.com.ph ¢fb.com/MegawideConstructionCorporationOfficial etwitter.com/megawidebuilds investorrelations@meg
Slide 44: JOIMVOSW Id
JOIMVOSW Id