Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — FY2020 Earnings Presentation
37 slides from Megawide Construction's earnings presentation, Apr 15, 2021
Slide 1: Analyst Briefing: FY2020 Operating and Financial Results
Analyst Briefing FY2020 Operating and Financial Results Unaudited Financial Statements 15 April 2021
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: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT In PhP M FY2020 FY2019 YoY% REMARKS Total Revenues 12,923 19,882 (35%) Construction 10,842 15,309 (29%) Suspension of activities Airport Operations 1,109 3,691 (70%) Impact of travel bans Airport Merchandising 70 326 (79%) Landport Operations 902 555 62% Lease commencem
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME / (LOSS) (PhP M) 19,882 4,807 1,111 555 80 326 121 529 3,691 12,923 902 2,771 508 222 2,329 102 1,109 70 -6 748 5 15,309 193 -1,184 10,842 2,251 -6 1,825 (865) FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 BREAKDOWN REVENUE
Slide 5: Infected Margins
INFECTED MARGINS In PhP M FY2020 FY 2019 FY2018 REMARKS Gross Profit Margin 19% 23% 26% Construction 13% 13% 15% Resumption of construction activities Airport Operations 43% 58% 69% Travel ban impact Airport Merchandising 70% 73% 76% Terminal Operations 61% 44% - Lease commencement of assets EBITDA
Slide 6: Stable Financial Condition
STABLE FINANCIAL CONDITION In PhP M 31 December 2020 31 December 2019 Change % Cash & Financial Assets 7,226 6,519 708 11% Other Current Assets 29,219 28,947 272 1% Current Assets 36,446 35,466 980 3% Concession Assets 29,929 29,437 492 2% Non Current Assets 44,911 45,299 (387) -1% Total Assets 81,3
Slide 7: Relaxed Leverage Ratios
RELAXED LEVERAGE RATIOS In PhP M 31 December 2020 31 December 2019 Parent1 GMCAC2 Conso Parent1 GMCAC2 Conso Cash/financial assets 5,705 979 7,226 3,592 1,169 6,519 Total Debt 18,146 23,864 45,920 19,573 24,278 47,753 Equity 15,823 8,138 20,532 12,300 9,322 17,999 D-E Ratio 1.15x 2.93x 2.24x 1.59x 2
Slide 8: Manageable Maturity Towers
MANAGEABLE MATURITY TOWERS INITIATIVES: • 2021: Revisit capital markets to redeem Series 1 maturity • Optimize favourable interest rate environment for refinancing • Push back maturity towers to 2025 • Execute a more relaxed debt servicing schedule 2021E 2022F 2023F 2024F 2025F 2026F P4B Series 1 Pr
Slide 9: Engineering, Procurement & Construction
ENGINEERING, PROCUREMENT & CONSTRUCTION
Slide 10: Safety Measures in Place
SAFETY MEASURES IN PLACE SAFETY MEASURES IN PLACE: • Regular testing of personnel • Proper PPE upon entry • Expanded barracks & services • Natural distancing from pre-cast system • Lock-in status • 80% workforce availability • Concentration on live projects 9
Slide 11: Break Even Amid Restrictions
BREAK EVEN AMID RESTRICTIONS QUARTERLY PERFORMANCE (PhP M) ANNUAL REVENUE & NET INCOME (PhP M) 18,000 4000 16,000 3500 4,783 14,000 3000 4,342 3,737 3,626 3,799 12,000 2500 3,616 3,430 10,000 2000 2,989 2,568 2,551 8,000 1500 2,336 15,309 6,000 12,688 1000 10,842 857 1,063 4,000 500 508 2,000 0 102
Slide 12: Healthy and Diverse Order Book
HEALTHY AND DIVERSE ORDER BOOK SEGMENT ORDER BACKLOG 100 80.0 70.0 Residential, 33% 80 Order Book (PhP B) 68.4 * 60.0 Office, Commercial and No. of Projects Industrial, 52% 50.0 60 52.4 50.1 40.0 40 39.1 38.5 30.0 32.6 50 43 20.0 20 37 41 30 21 10.0 Infra and Facilities, 0 0.0 15% 2015 2016 2017 201
Slide 13: Airport Operations
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Slide 14: Safe and Sound Travels
SAFE AND SOUND TRAVELS SAFETY MEASURES IN PLACE: • COVID testing facility, free for OFWs (results <24 hours) • Contactless interaction • Cashless purchases • Physical distancing • Floor markings and safety signages • Single Terminal (T2 for Int’l Arrivals) 13
Slide 15: Travel Ban Effect
TRAVEL BAN EFFECT QUARTERLY PERFORMANCE (PhP M) ANNUAL REVENUES (PhP M) 978 918 904 892 857 816 803 676 646 3,691 2,996 111 110 1,109 85 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2018 2019 2020 Note: Numbers do not include airport merchandising revenues 14
Slide 16: Domestic-Passenger and PSC Driven
DOMESTIC-PASSENGER AND PSC DRIVEN PASSENGER TYPE REVENUE BREAKDOWN Aero, 12% Int'l 29% PSC, 44% Non-Aero, Domestic 44% 71% 15
Slide 17: Travel Restricted
TRAVEL RESTRICTED BREAKDOWN PASSENGER VOLUME P487M -76% YoY INTERNATIONAL 44% -81% 789K ANNUAL TRAFFIC DOMESTIC (in millions) Dom Int'l 12.6 11.5 4.2 9.9 3.8 -77% 8.9 8.0 6.9 3.1 1.93M 2.0 2.5 1.7 2.7 0.8 5.2 5.9 6.4 6.8 7.7 8.3 1.9 2014 2015 2016 2017 2018 2019 2020 16
Slide 18: Air Traffic Movement Confined
AIR TRAFFIC MOVEMENT CONFINED BREAKDOWN AIR TRAFFIC MOVEMENT P132M 12% -70% YoY INTERNATIONAL 44% -79% 6.0K ANNUAL ATMs DOMESTIC (in millions) 105.7 Dom Int'l 99.5 9.9 28.4 25.3 72.6 -73% 62.3 21.3 56.3 16.4 20.5K 13.4 11.6 26.5 6.0 44.7 48.9 56.2 65.3 74.2 77.3 20.5 2014 2015 2016 2017 2018 2019 20
Slide 19: Growth in Non-Aero Revenue Share
GROWTH IN NON-AERO REVENUE SHARE BREAKDOWN 44% P490M -61% YoY NON-AERO SHARE TO TOTAL 44% 34% 31% 32% 28% 23% 21% 2014 2015 2016 2017 2018 2019 2020 18
Slide 20: Landport Operations
LANDPORT OPERATIONS
Slide 21: Safety Protocols Implemented
SAFETY PROTOCOLS IMPLEMENTED SAFETY MEASURES IN PLACE: • Automated temperature reading • Sanitizing stations • Physical distancing • Roving guards and ushers • Seat and floor markers • Safety reminders on PA system • Advanced booking through PITX app 20
Slide 22: Adapting to New Normal
ADAPTING TO NEW NORMAL QUARTERLY RENTAL REVENUE (in Php M) Office Commercial OFFICE (72K sqms) 21 • 75% leased out 34 • P1,000/sqm/month (ave) 31 53 266 199 186 93 24 4Q2019 1Q2020 2Q2020 3Q2020* 4Q2020 ANNUAL REVENUE RETAIL (12K sqms) (in Php M) • 80% leased out • 60% operational • P1,200/sqm/month
Slide 23: Passenger Spending Recovers
F&B Services Consumer Goods 15% 10% RETAIL MIX 75% Jan-19 4 5 Feb-19 Mar-19 PASSENGER SPENDING RECOVERS Apr-19 May-19 6 7 5 6 Jun-19 Jul-19 10 Aug-19 16 Sep-19 20 26 Oct-19 Nov-19 26 Dec-19 Jan-20 31 31 Feb-20 33 Mar-20 35 Apr-20 AVERAGE SPP (PhP) May-20 20-Jun Jul-20 Aug-20 28 28 29 Sep-20 24 Oct-2
Slide 24: Consistent Foot Traffic
CONSISTENT FOOT TRAFFIC DAILY BASIS MONTHLY FOOT TRAFFIC (‘000) 56,354 56,064 55,529 53,510 51,892 43,276 39,620 62.4 60.9 59.7 58.0 68.0 55.6 49.6 50.6 48.2 59.8 46.4 55.8 51.9 38.9 36.4 36.6 45.1 MONDAY TUESDAY WEDNESDAYTHURSDAY FRIDAY SATURDAY SUNDAY 39.3 40.6 28.5 26.8 BY THE HOUR 10.2 4,214 3,8
Slide 25: Recent Developments
REECENT DEVELOPMENTS
Slide 26: Suncity Westside City
SUNCITY WESTSIDE CITY EPC CONTRACT • P6.3B Main Contract: Westside City (Phase 1 Site B) • P20B Supplemental Agreement: Design development, architectural, structural, and civil works, management contract for NSCs • Excavation works ongoing • Development timetable: 30 months 25
Slide 27: Aglipay STP
AGLIPAY STP EPC CONTRACT • P2.1B Contract with MWC and Suez • Construction of Sewage Treatment Plant (STP) • 60 million liters treating capacity per day • Completion (STP) by 2024 and sewer network by 2025 26
Slide 28: MCRP Package 1
MCRP PACKAGE 1 EPC CONTRACT • Civil works for 17 kms (Calumpit and Apalit Stns.) • Contract Cost: P8.4B (35% share) • Supply of concrete and formworks • Start of construction 2Q2021 • Estimated completion: 2025 27
Slide 29: Carbon Market Redevelopment
CARBON MARKET REDEVELOPMENT 28
Slide 30: Pivot to Infrastructure
PIVOT TO INFRASTRUCTURE Source: DPWH 29
Slide 31: Philippine Infra Spending
PHILIPPINE INFRA SPENDING 1,200 Amount (Pbn) Share to GDP 6.0% 1,000 5.5% 5.4% 5.4% 800 5.0% 4.9% 600 4.5% 4.5% 4.2% 4.2% 400 4.0% 3.9% 200 3.5% 591 691 886 1,050 786 1,121 1,018 0 3.0% 2016 2017 2018 2019 2020E 2021F 2022F Source: DPWH 30
Slide 32: Metro Manila Subway System
METRO MANILA SUBWAY SYSTEM EPC CONTRACT • 36km-long, 13-station first subway system within Metro Manila • JICA funded • Bidding to start 2Q2021 • To participate in 3-4 packages with Japanese consortium partner 31
Slide 33: North South Commuter Rail (South Line)
NORTH SOUTH COMMUTER RAIL (SOUTH LINE) EPC CONTRACT • 56-KM Commuter Rail: Manila to Calamba City • Long-Haul Passenger Rail Operations: Manila - Legaspi City (Bicol Region) • To participate in 5-6 packages with same consortium partners for MCRP 32
Slide 34: Landport Opportunities (Luzon)
LANDPORT OPPORTUNITIES (LUZON) DESIGN, DEVELOPMENT AND O&M • Proposal presented 4Q2020 • Baguio LGU counterpart • Agri-agra component: convergence point for “farm-to-market” model • Connectivity with existing PITX landport 33
Slide 35: Increasing Pre-Cast Capacity
INCREASING PRE-CAST CAPACITY PLANNED PRE-CAST CAPACITY (‘000 cu m / month) 35.5 12.5 2020 2021F 2022F 2023F 2024F 2025F 34
Slide 36: Construction Services Ramp Up Program
CONSTRUCTION SERVICES RAMP UP PROGRAM CAPACITY UTILIZATION UNIT Pre-COVID 2020 2021F PRECAST 57% 30% 66% FORMWORKS 44% 56% 60% BATCHING PLANT 41% 15% 52% C. E. L. S 55% 38% 60% 35
Slide 37: Thank you
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