Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — Investor Presentation (June 2019)
44 slides from Megawide Construction's investor presentation, June 2019
Slide 1: Investor Presentation June 2019
INVESTOR PRESENTATION June 2019 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: 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 3
Slide 4: 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* 7.6% (1Q2019)*** MEDIAN AGE: 23.5** 2.2M GROWIN
Slide 5: Our Milestones
OUR MILESTONES MEGAWIDE WAS ESTABLISHED 7 a EXCELLENCE IN G (_) YEARS PITX(PPP) INITIAL PUBLIC OFFERING PSIP PHASE 2 (PPP) Cenmeiunegtanceens ASTRON PROT START OF sr " bolo OPERATIONS Taypay Rizal, me of te pent Setnet Aa MCIA T2 AND PITX 2011 2018 | ce] a a a Fal ga 2007 2012 2014 2017 TRIPLE A LIC
Slide 6: Growing Revenue Trajectory
GROWING REVENUE TRAJECTORY Revenues 7,000 Revenue 33% 31% 31% 25,000 GPM 27% 30% GPM 31% 6,000 24% 28% 29% 22% 25% 26% 20,000 21% 5,000 26% 26% 24% 27% 17% 16% 17% 20% 4,000 15,000 23% 25% 25% 14% 23% 15% 3,000 22% 23% 10,000 21% 10% 2,000 20% 20% 19% 17,658 19,159 15,992 10,880 15,442 5,000 4,894 5
Slide 7: Increasing Recurring Income Stream
INCREASING RECURRING INCOME STREAM EBITDA EBITDA Margin 33% 5,000 EBITDA Margin 29% 35% 1,400 31% 35% 4,500 23% 25% 28% 30% 30% 1,200 26% 30% 4,000 26% 23% 20% 21% 21% 25% 1,000 25% 3,500 20% 19% 19% 3,000 18% 18% 17% 20% 800 20% 2,500 13% 18% 15% 600 15% 2,000 1,500 400 10% 10% 1,093 1,069 1,018 1,
Slide 8: 1Q2019 Consolidated Income Statement
1Q2019 CONSOLIDATED INCOME STATEMENT In Php M 1Q 2019 4Q 2018 1Q 2018 QoQ % YoY% Total Revenues 3,565 3,246 4,450 10% -20% Construction 2,568 2,337 3,737 10% -31% Airport Operations 892 816 646 9% 38% Airport Merchandising 85 75 67 13% 27% Landport Operations 20 18 - 11% - Direct Costs 2,467 2,478 3
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PHP m) EBITDA (PHP m) NET INCOME (PHP m) 4,450 636 67 1,136 1,184 3,565* 1,020 25 646 3,246** 26 34 85 34 75 892 480 584 816 370 282* 534 174 3,737 26 2,337 2,568 25 73 630 566 33 452 241 186 116 1Q 2018 4Q2018 1Q 2019 1Q 2018 4Q2018 1Q 2019 1Q 2018 4Q2018 1
Slide 10: Margin Performance
MARGIN PERFORMANCE In PHP M 1Q 2019 1Q 2018 FY 2018 FY 2017 FY 2016 Gross Profit Margin 31% 26% 27% 24% 22% Construction 15% 15% 15% 16% 15% Airport Operations 71% 86% 75% 82% 81% Airport Merchandising 74% 75% 76% 72% - EBITDA Margin 33% 26% 29% 23% 20% Construction 22% 17% 19% 16% 15% Airport Opera
Slide 11: Financial Position
FINANCIAL POSITION In PHP m 31-Mar-19 31-Dec-18 Movement % Change Cash & Financial Assets 4,201 5,761 (1,560) -27% Other Current Assets 20,454 19,029 1,425 7% Total Current Assets 24,655 24,790 (135) -1% Concession Assets 28,371 28,289 82 0% Total Non Current Assets 42,179 41,115 1,064 2% Total Asse
Slide 12: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS PROFITABILITY In PHP m As of March 2019 As of December 2018 13% 14% 0.80 12% 0.70 12% Parent* GMCAC** Conso Parent GMCAC Conso 10% *** 10% 9% 9% 0.60 Cash/financial 0.50 2,367 1,646 4,201 3,615 1,941 5,761 8% assets 0.40 6% 0.30 Total Debt 12,736 24,514 38,074 11,655 24,
Slide 13: Engineering, Procurement, and Construction (EPC)
1 Engineering, Procurement, and Construction (EPC)
Slide 14: 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 15: 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 15
Slide 16: Solid Track Record in Various Infrastructure Projects
SOLID TRACK RECORD IN VARIOUS 11 INFRASTRUCTURE PROJECTS 1 PPP for School Infrastructure Mactan-Cebu Parañaque Integrated Clark International Airport Project Phases 1 & 2 International Airport Terminal Exchange (Hybrid PPP) Combined Project Cost: Project Cost: Project Cost: Project Cost: Php 15.1 Bi
Slide 17: Revenues Picking Up
11 REVENUES PICKING UP REVENUES (in PHP bn) REVENUES (PHP bn) Revenue GP Margin 4.2 4.3 17.5% 18.0 4.1 4.1 17.0% 17.0% 3.7 16.0 16.5% 16.0% 3.6 16.0% 16.4% 14.0 16.2% 12.0 15.5% 15.0% 15.0% 15.0% 15.0% 15.0% 14.2% 10.0 3.0 8.0 14.5% 14.0% 6.0 2.6 13.5% 4.0 2.4 13.0% 2.0 7.7 8.2 10.9 9.8 14.0 15.8 16
Slide 18: Order Book Remains Robust
11 ORDER BOOK REMAINS ROBUST ORDER BOOK VS REVENUE 1Q 2019 ORDER BOOK (SEGMENT) 60.0 20.0 Commercial Order 16.7 and book 15.8 18.0 50.0 Residential, Industrial, 14.0 16.0 59% 33% 14.0 40.0 10.9 12.7 9.8 Order 12.0 30.0 8.2 backlog 10.0 > 2-3 8.0 20.0 years 6.0 2.6 4.0 10.0 2.0 Infrastructure, 18.8 2
Slide 19: Airport Business Segment
TRANSPORT INFRASTRUCTURE 2 Airport Business Segment
Slide 20: Megawide
hi MEGAWIDE
Slide 21: 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 22: 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* 22 *as of Mar 2019
Slide 23: Expanding Airline Partnerships
2 EXPANDING AIRLINE PARTNERSHIPS 2 24 Partner Carriers 6 domestic carriers 18 foreign carriers 23
Slide 24: 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 24
Slide 25: Exciting Product Offerings
2 EXCITING PRODUCT OFFERINGS F & B area Non-food retail outlets 100% leased-out and operational 100% operational 25
Slide 26: Creating Better Value
2 CREATING BETTER VALUE OPERATING STATISTICS HANDOVER 2014 CURRENT ~55K ATM ~100K ATM AIR TRAFFIC MOVEMENT annually annually 4.5M pax 12.5M pax TERMINAL CAPACITY annually annually 38.5K 100K TERMINAL AREA Sq. m. Sq. m. ~2,200 Sq. m. ~6,000 Sq. m. RETAIL SPACES GLA GLA 26
Slide 27: Traffic Growth Sustained
22 TRAFFIC GROWTH SUSTAINED 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 5
Slide 28: Steadily Growing Earnings
2 STEADILY GROWING EARNINGS AIRPORT REVENUE* 4-yr CAGR EBITDA** (In Php M) 2,996 19% (In PHP M) AERO-RELATED 12% NON-AERO 22% 70% PSC 2,298 13% 32% 1,872 30% 71% 12% 1,484 31% 11% 14% 28% 2,109 23% 892 38% 1,641 56% 12% 37% 1,303 56% 34% 200 66% 60% 42% 971 13% 584 21% 54% 36% 21% 66% 90 2014 2015 2
Slide 29: Healthy Revenue and EBITDA Generation
22 HEALTHY REVENUE AND EBITDA GENERATION 75% 892 REVENUES * 858 (In Php M) 816 676 646 570 586 567 575 EBITDA ** 465 483 493 585 584 (In PHP M) 431 534 510 481 420 430 389 402 368 329 321 285 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 * Excludes airport merchandising revenues 1Q19 of
Slide 30: Growing Passenger Mix
22 GROWING PASSENGER MIX PASSENGER MIX International International 33% 34% 2018 1Q19 Domestic Domestic 67% 66% BREAKDOWN OF INT’L TOURISTS 2018 % 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 Jap
Slide 31: Increasing Capacity for Growth
2 INCREASING CAPACITY FOR GROWTH TOTAL TERMINAL AREA (in sqms) TOTAL PROJECT COST Capacity Augmentation P34.0BN T2 19,970 P6.6Bn T1 Capacity Augmentation 62,315 62,315 62,315 1 July 2018: Operational 7 June 2018: 38,483 38,483 42,541 42,541 Inauguration P11.0Bn Terminal 2 2014-2017 E2018 E2019-2023
Slide 32: Integrated Transport Exchange Business Segment
TRANSPORT INFRASTRUCTURE 3 Integrated Transport Exchange Business Segment
Slide 33: Premier Landport in the Philippines
33 PREMIER 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
Slide 34: Capacity Building Up
3 CAPACITY BUILDING UP PASSENGER FOOT TRAFFIC DAILY BUS TRIPS 70,000 134 134 53,800 55,000 41,500 793 28,200 755 755 699 699 9,800 Nov-18 Feb-19 May-19 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Peak Average Short Haul Long Haul INTER-MODAL TRANSPORT OPTIONS & DESTINATIONS SHORT HAUL • Provincial bus • PUJs
Slide 35: Initial Revenue Contribution
3 INITIAL REVENUE CONTRIBUTION OFFICE (72K sqms, 100% pre-leased)* Tower 2 Tower 4 Tower 1 T/O Date: May 2019 Tower 3 T/O Date: T/O Date: May 2019 Pre-Leased T/O Date: Mar 2019 Pre-leased POGO Mar 2019 Pre-leased Fintech Pre-leased POGO POGO RETAIL (12K sqms, 51% leased)* OPERATIONAL PER CATEGORY SO
Slide 36: 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 36 36
Slide 37: Business Updates
BUSINESS UPDATES
Slide 38: 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: Bought bid documents: Contract Cost: P9.36 Billion • FilinvestNorth
Slide 39: MCIA Expansion Project (Unsolicited Proposal)
MCIA EXPANSION PROJECT (Unsolicited Proposal) MEGAWIDE-GMR PROPOSAL KEY HIGHLIGHTS Three Main Phases: Project Cost P208 billion (US$4 billion) Phase 1: Takeover airside facility and subsequently undertake the following: Submitted: 07 June 2017 rehabilitation of the existing runway and taxiwa
Slide 40: NAIA Rehabilitation Project (Unsolicited Proposal)
NAIA REHABILITATION PROJECT (Unsolicited Proposal) MEGAWIDE-GMR PROPOSAL KEY HIGHLIGHTS Improve airside capacity Project Cost P150 Bn (~US$3 Bn) Implement terminal improvements Introduce key performance measures Concession Period 18 years Build future capacity Technical Partner Mitre C
Slide 41: PNR East West Rail Project (Unsolicited Proposal)
PNR EAST WEST RAIL PROJECT (Unsolicited Proposal) STATIONS TYPE CONNECTION Lerma Elevated LRT-1, LRT-2 UST Elevated Antipolo Elevated PNR Welcome Rotonda Elevated Banawe Elevated G. Araneta Elevated Roces Elevated Timog Elevated EDSA Underground Quezon Memorial Underground MRT-3 University Avenue Un
Slide 42: 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 43: 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
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