Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — 9M 2018 Earnings Presentation
28 slides from Megawide Construction's earnings presentation, 2018
Slide 1: Analyst Briefing: First Nine Months of 2018
ANALYST BRIEFING First Nine Months of 2018 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: 9M2018 Consolidated Income Statement
9M2018 CONSOLIDATED INCOME STATEMENT In Php M 9M 2018 9M 2017 Mov’t % Remarks Total Revenues 12,746 14,265 (1,519) (11%) Lower construction revenues Construction 10,352 12,443 (2,091) (17%) Due to timing of new projects Airport Operations 2,180 1,723 456 26% 15% growth in passenger volume Airport Me
Slide 4: 9M2018 Financial Highlights
9M2018 FINANCIAL HIGHLIGHTS Construction Airport Merchandising % Change YoY PERFORMANCE Revenues (Pm) EBITDA (Pm) Net Income (Pm) 14,265 3,568 1,715 1,720 12,746 3,304 99 90 149% 21 36 72 243% 1,723 215 117% 2,180 26% 1,239 1,575 27% 811 907 12% 12,442 10,352 (17%) 2,029 1,903 (6%) 883 (16%) 741 9M2
Slide 5: Margin Performance
MARGIN PERFORMANCE In Php M 9M 2018 9M 2017 FY 2017 FY 2016 Gross Profit Margin 28% 24% 24% 22% Construction 17% 15% 16% 15% Airport Operations 79% 82% 82% 81% Airport Merchandising 76% 74% 72% - EBITDA Margin 28% 23% 22% 20% Construction 18% 16% 15% 15% Airport Operations 72% 72% 71% 70% Airport Me
Slide 6: Financial Position
FINANCIAL POSITION In Php M 30-Sep-18 31-Dec-17 Movement % Change Cash & Financial Assets 8,751 8,140 611 8% Other Current Assets 12,977 10,559 2,418 23% Total Current Assets 21,728 18,699 3,029 16% Concession Assets 27,991 25,608 2,383 9% Total Non Current Assets 40,351 35,719 4,632 13% Total Asset
Slide 7: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS MARGINS PROFITABILITY 28% 13% 12% 12%* 14% 0.80 24% 21% 22% 12% 0.70 9% 0.70 0.69* 0.60 17% 10% 13% 8% 7% 0.57 0.50 11% 12% 10% 0.40 9% 6% 0.41 0.30 4% 0.35 0.20 2% 0.10 0% 0.00 2014 2015 2016 2017 9M2018 2014 2015 2016 2017 9M2018 Gross Profit Margin Net Profit Margin *
Slide 8: Engineering, Procurement, and Construction (EPC)
1 ENGINEERING, PROCUREMENT, v and CONSTRUCTION (EPC)
Slide 9: Solid Construction Revenues
1 SOLID CONSTRUCTION REVENUES REVENUES (in PHP bn) REVENUES (PHP bn) Revenue +11% 17.5% GP Margin +6% 5.5 18.0 17.0% 16.0 16.5% 17.0% 16.0% 16.4% 14.0 4.2 4.1 4.1 4.3 16.0% 16.2% 12.0 15.5% 15.0% 15.0% 15.0% 14.2% 10.0 3.7 3.7 3.6 14.5% -11% 8.0 3.4 10.4 3.2 14.0% 6.0 3.0 4.0 13.5% 13.0% 2.0 7.7 8.2
Slide 10: Healthy Project Pipeline
1 HEALTHY PROJECT PIPELINE ORDER BOOK VS REVENUE ORDER BOOK MIX 9M18 0.0 1.20 Office & Comm'l, 0.0 1.00 24% 0.0 0.80 0.0 0.60 P39.7B 32.6 Order 0.0 39.1 38.5 0.40 20.3 39.7 backlog 18.8 22.6 16.7 Infra, 0.0 14.0 15.8 > 2-3 years 0.20 10.9 9.8 10.4 13% 8.2 - - 2012 2013 2014 2015 2016 2017 9M18 Resid
Slide 11: Airport Business Segment
2 AIRPORT BUSINESS SEGMENT
Slide 12: Robust Traffic Growth
2 ROBUST TRAFFIC GROWTH 193.0 AIR TRAFFIC PASSENGER TRAFFIC 30.4 (in ‘000) 174.0 (in millions) 39.4 26.2 10.2 Domestic Int'l 152.2 Domestic Int'l 36.1 21.7 9.0 125.2 130.6 32.0 119.4 112.1 116.3 17.5 7.5 105.3 27.8 28.0 27.7 15.316.3 86.6 24.5 25.0 26.5 14.0 6.0 12.7 5.7 72.6 11.3 5.4 56.3 62.2 21.3
Slide 13: Steadily Growing Revenues
STEADILY GROWING REVENUES AIRPORT REVENUE* REVENUE PER PASSENGER (In Php M) (PHP) AERO-RELATED NON-AER0 PSC 2,298 23% 2,180 26% 295 27% 274 24% 1,872 26% 232 38% 1,484 642% 723 36% 698 30% 168 536% 532 57% 322 339 701% 232 210 186 1,280 16% 25% 1,108 13% 1,207 200 977 644% 26 42 29 131 2014 2015 201
Slide 14: Diverse Recurring Streams
2 DIVERSE RECURRING STREAMS Revenue Mix QUARTERLY REVENUE 2016 2017 2018 (in Php M) Regulated +51% Non- regulated 13% 858 +13% +15% 45% +32% +26% +18% +17% 646 676 570 586 568 575 32% 55% 483 493 465 431 Q1 Q2 Q3 Q4 PSC Aero Non-aero 1st Step-Up: Effective June 2015 FINANCIAL RATIOS 2017 2016 2015 P
Slide 15: Healthy Financial Performance
2 HEALTHY FINANCIAL PERFORMANCE EBITDA* ANNUAL QUARTERLY 72% 2016 1,800 70% 71% 80% 1,600 65% 2017 70% 585 1,400 75% 60% 2018 509 1,200 45% 50% 481 1,000 420 433 40% 389 399 800 368 30% 329 320 600 285 20% 400 10% 200 90 971 1,302 1,641 1,575 - 0% 2014 2015 2016 2017 9M2018 EBITDA Margin Q1 Q2 Q3 Q4
Slide 16: Growing Passenger Mix
2 GROWING PASSENGER MIX Passenger Mix International International, 31% 34% 2017 9M2018 Domestic Domestic, 69% 66% Breakdown of International Tourists 2017 % of Cebu to Total PH Int’l Arrivals 8.1 Others11% Taiwan 2% Korea 41% 6.7 EU, 4% Australia 3% 5.4 China 10% USA 9% 1.6 24% 2.2 27% 1.0 19% Japan
Slide 17: Integrated Transport Exchange Business Segment
3 INTEGRATED TRANSPORT EXCHANGE BUSINESS SEGMENT
Slide 18: First Landport in the Philippines
3 FIRST LANDPORT IN THE PHILIPPINES 2 Owner MWM Terminals (Megawide-Waltermart)* Location 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 PITX is the first Landport in the Philippines. I
Slide 19: Location and Connectivity
LOCATION AND CONNECTIVITY Located at the southwest of Metro Entertainment Manila, PITX will serve as a major City connecting hub between Cavite and Metro Manila. Expected ~50,000 pax daily by provincial buses Major Sources % pax1 % buses2 Cavite City 37% 15% Dasmariñas 9% 8% Imus 8% 2% General Trias
Slide 20: Terminal Features
TERMINAL FEATURES 2 Multi-modal Transport Options • Provincial bus • Centralized Ticketing System • City bus • UV Express Shuttle • Online Booking with Seat Selection • P2P • PUJs/Taxi • Public Information Displays • Ride Sharing • Future LRT Connection • Terminal Management System 20
Slide 21: Recurring Revenue Streams
RECURRING REVENUE STREAMS RETAIL PODIUM OFFICE TOWERS (12K sqms retail GLA) ongoing leasing (18K sqms GLA/tower) Food Non-food Others • Bank • Apparel • Grocery 37% • Services 63% Towers 1 & 2 Towers 3 & 4 • Completion end- • For completion 1H2019 2018 • Ongoing negotiations • Pre-leased for pre-lea
Slide 22: Business Updates
BUSINESS UPDATES
Slide 23: 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 Participated: Contract Cost: P9.36 Billion Bought bid documents: • Megawide-GMR • FilinvestNorth L
Slide 24: 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 25: 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 Technical Partner Mitre Corporation improvements 3rd Runway Not viable 2. Introduction of key performance mea
Slide 26: PNR East West Rail Project (Unsolicited Proposal)
PNR EAST WEST RAIL PROJECT (Unsolicited Proposal) In October 2015, the Consortium of East West Connecting Stations Type Network Rail Corporation (EWRC) and Alloy MTD (Alloy) Lerma Elevated LRT-1, LRT-2 made an unsolicited proposal for undertaking the East West Transit Rail Project, which is a UST
Slide 27: Q&A
Q&A
Slide 28: 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
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