Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — Q1 2017 Earnings Presentation
24 slides from Megawide Construction's earnings presentation, May 19, 2017
Slide 1: Investor Relations Company Presentation as of Q1 2017
5/19/2017 INVESTOR RELATIONS Company Presentation As of Q1 2017 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 Corp
Slide 2: Company Background
5/19/2017 2 COMPANY BACKGROUND 3 2
Slide 3: Key Investment Highlights; Philippines – A Snapshot
5/19/2017 KEY INVESTMENT HIGHLIGHTS Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development. The Largest Building Construction Company in the Country Largest Private Airport Operator in the Philippines Progressive Propert
Slide 4: FY2016 and Q1 2017 Consolidated Income Statement
5/19/2017 FY2016 CONSOLIDATED INCOME STATEMENT In Php M FY2016 FY2015 Movement % Remarks Total Revenues 17,658 15,442 2,216 14% Buoyed by growth in private sector Construction 15,786 13,958 1,828 13% projects Airport 1,872 1,484 388 26% Passenger traffic increased by 12% Direct Costs 13,787 12,217 1
Slide 5: FY 2016 and Q1 2017 Highlights
5/19/2017 FY 2016 HIGHLIGHTS Revenue EBITDA Net Income Construction 13% P15.8B 12% P2.3B 5% P1.0B Airport 26% P1.9B 34% P1.3B 80% P903M Consolidated 14% P17.7B 19% P3.6B 30% P1.9B AIRPORT AIRPORT AIRPORT 2016 11% 36% 47% CONSTRUCTION CONSTRUCTION CONSTRUCTION 89% 64% 53% AIRPORT AIRPORT AIRPORT 10%
Slide 6: FY 2016 and Q1 2017 Margin Performance
5/19/2017 FY 2016 MARGIN PERFORMANCE In Php Million FY 2015 FY 2016 Remarks Gross Profit Margin 21% 22% Driven by higher GP margins from Airport Construction 15% 15% Airport 77% 81% Higher GPM due to growth of Non-Aero EBITDA Margin 20% 21% Construction 15% 15% Airport 65% 70% Net Income Margin 10%
Slide 7: FY 2016 and Q1 2017 Financial Position
5/19/2017 FY 2016 FINANCIAL POSITION In Php M 31-Dec-16 31-Dec-15 Movement % Change Cash & Financial Assets 10,938 9,263 1,675 18% Other Current Assets 10,033 13,232 (3,199) (24%) Total Current Assets 20,971 22,495 (1,524) (7%) Concession Assets 20,339 16,370 3,969 24% Total Non Current Assets 9,775
Slide 8: Liquidity and Gearing Ratios; Construction Operations
5/19/2017 LIQUIDITY AND GEARING RATIOS PROFITABILITY RATIOS 0.57 2014 2015 2016 Q1 2017 0.41 0.35 21% 22% 23% 17% 0.17 9% 10% 11% 12% 9% 12% 7% 3% Gross Profit Margin Net Profit Margin Return on Equity Earnings per Share LIQUIDITY RATIOS SOLVENCY RATIOS 2014 2015 2016 Q1 2017 2014 2015 2016 Q1 2017\
Slide 9: The Leading Construction Company Business in the Country
5/19/2017 1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY Megawide is a Triple-AAA PCAB Licensed general contractor primarily engaged in civil, structural and architectural works, MEPF, and other specialty engineering services. Megawide has constructed over 6.5 million square meters o
Slide 10: Construction Revenues, Income and Order Book
5/19/2017 1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY Megawide is the preferred contractor of choice for leading property developers with its consistent track record and engineering excellence. Construction Revenues +13% Quarterly Revenues 2015 2016 2017 (in Php M) 15,786 (in Php M)
Slide 11: Construction Operations: New Projects 2017
5/19/2017 1 CONSTRUCTION OPERATIONS NEW PROJECTS 2017 ORTIGAS AND COMPANY SOUTHEAST ASIA RETAIL INC. Project Estancia Project Landers Arcovi GFA 78,000.00 sq.m GFA 16,000.00 sq.m Project Landers Alabang GFA 8,852.00 sq.m Project Edades Suites GFA 16,613.00 sq.m 20 1 CONSTRUCTION OPERATIONS NEW PROJE
Slide 12: Largest Private Airport Operator in the Philippines
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES On April 22, 2014 the company and its JV Partner GMR won the Concession for brownfield development of Mactan- Cebu International Airport under Build-Operate-Transfer Modality. Concession Period is 25-years. Mactan-Cebu International
Slide 13: Airport Passenger Traffic and Air Traffic Movement
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 7.8 7.4 Passenger Traffic 7.1 Air Traffic Movement 6.8 6.5 6.3 48.1 46.6 6.0 45.1 Domestic Int'l (In Million) 43.7 42.3 5.7 40.9 39.6 5.5 Domestic Int'l 38.2 36.9 5.2 35.6 34.4 5.0 33.2 32.0 4.8 30.8 29.7 4.5 28.7 4.3 27.6 26.0 4.1 24.5
Slide 14: Airport Revenue and Financial Ratios
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES +26% AIRPORT REVENUE 1,872 QUARTERLY REVENUE In Php M 232 (in Php M) 2015 2016 1Q17 AERO 1,484 +38% +32% 570 +29% 168 +27% NON-AER0 532 +23% +24% 493 465 483 +57% PSC 431 339 380 381 374 349 570 1,108 +13% 69 +28% 977 200 179 +56% 26 42
Slide 15: Airport EBITDA, Net Income and Passenger Mix
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Quarterly EBITDA 2015 2016 2017 AIRPORT EBITDA In Php M 70% 70% (in Php M) +36% +20% 389 +42% +34% 368 +32% Margin 65% 1,302 +49% 329 306 320 285 971 243 231 191 45% 90 2014 2015 2016 Q1 Q2 Q3 Q4 AIRPORT NET INCOME Quarterly Income 2015
Slide 16: Airport Terminal Area and New Routes 2016
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Terminal Area 2014-2017 E2018 E2019-2023 E2024 Total Project Cost (in sqm) In Php Bn Terminal 1 38,483 38,483 42,541 42,541 Capacity Augmentation Bid 6.6 Premium Terminal 2 - 62,315 62,315 62,315 16.4 Cap. Aug. - - - 19,970 TOTAL 38,483
Slide 17: New Routes 2017; Progressive Property Developer
5/19/2017 2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Details of new routes/frequency in 2017 DOMESTIC Airline Destination Start Date Aircraft/Frequency PAL Clark Jan 30 A321/4 INTERNATIONAL PAL General Santos March 26 A321/7 Thai Smile BKK May-17 A320/7 PAL Puerto Princesa March 26 A321/7
Slide 18: Fast Growing Pure Renewable Energy Power Generator
5/19/2017 4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 100% 100% 100% 100% 100% 96.11% Silay Solar Next Generation First Toledo Himamaylan Upper Maslog Rio Norte Hydro Power Solar Energy Biomass Power, Hydro Power, Corporation Inc. (Negros Corporation (Negros Occ) (Bataan) (Cebu) Occidental)
Slide 19: Financial Highlights – 2017 Guidance
5/19/2017 FINANCIAL HIGHLIGHTS - 2017 GUIDANCE Revenue EBITDA Net Income Construction 5% P16.58B 5% P2.42B 14% P1.16B Airport 12% P2.1B 15% P1.5B 11% P1.0B Consolidated 6% P18.68B 9% P3.92B 13% P2.16B 36 FINANCIAL HIGHLIGHTS - 2017 CONSOLIDATED GUIDANCE CONSOLIDATED CONSOLIDATED CONSOLIDATED NET REV
Slide 20: 2017 Segment Guidance; Core EPS and Dividends
5/19/2017 FINANCIAL HIGHLIGHTS - 2017 SEGMENT GUIDANCE CONSTRUCTION AIRPORT +12% Revenue EBITDA Net Income +5% 2,000 Revenue EBITDA Net Income 4,000 18,000 2,100 2,200 +13% 16,580 +26% 2,100 15,786 1,800 16,000 1,872 2,000 3,500 +42% +15% 1,900 13,958 1,600 +642% 1,5001,800 +5% 14,000 1,302 1,700 3,
Slide 21: Business Catalysts; PPP Projects for Bidding
5/19/2017 BUSINESS CATALYSTS The continued stability of the Philippines, coupled with the new Duterte Administration will further give Megawide a foundation for future growth. Increase In $30Bn OFW BPO Sector’s DENR’s thrust: Government Remittance and continued growth green Infrastructure 4.65Mn Hou
Slide 22: PPP Projects for Bidding; Unsolicited Proposal Submitted
5/19/2017 BUSINESS UPDATES | PPP Projects for Bidding REGIONAL PRISON FACILITY Cost Php 50.18 B Concession Build- Transfer-and-Maintain (BTM) Cooperation Period 20 Years The Regional Prison Facility, to be located in Fort Magsaysay in Nueva Ecija, includes the financing, detailed design and construc
Slide 23: Summary
5/19/2017 SUMMARY Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development with four core business segments: The Largest Building Construction Company in the Country - preferred contractor of blue chip companies Largest Pr
Slide 24: Megawide
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