Macroasia Corp. · PSE:MAC
Macroasia — Investor Presentation (March 2018)
37 slides from Macroasia's investor presentation, Mar 22, 2018
Slide 1: Analysts' Briefing: Highlights of 2017 Operations
ANALYSTS’ BRIEFING Highlights of 2017 Operations March 22, 2018 Penthouse, PNB Allied Bank Center 6754 Ayala Avenue, Makati City Philippines
Slide 2: Disclaimer
DISCLAIMER By accepting this material, you acknowledge, understand and accept the following: 1. This material has been prepared for information and illustrative purposes only, and maybe subject to change without notice, as operating conditions of the Company are never constant; 2. This material may
Slide 3: Agenda
AGENDA Key Points Growing Under The Spotlight Getting Bigger Standing On Solid Ground Moving Forward To Higher Ground 3
Slide 4: Key Points
KEY POINTS A. MAC GETS BIGGER! Our core business units continue to drive solid growth. B. MAC RESTS ON SOLID GROUND! A healthy balance sheet keeps well-supported the continuing or new expansion projects C. MAC IS POISED FOR FOCUSED-GROWTH IN A SUNRISE INDUSTRY, EVEN BEYOND BORDERS! We see MAC’s grow
Slide 5: Growing Under The Spotlight
GROWING UNDER THE SPOTLIGHT 5
Slide 6: Growing Under The Spotlight: PSE Sector Index Services
GROWING UNDER THE SPOTLIGHT PSE SECTOR INDEX: SERVICES Last From February 2017, Trade Free Float Market Name of Listed Company Symbol Price Outstanding Shares Float % Capitalization %Weight MAC has invited (03/9/18) analysts, fund 1 PLDT Inc. TEL 1,521.00 216,055,775 50 164,310,417,648.00 27.58 2 IN
Slide 7: Growing Under The Spotlight
GROWING UNDER THE SPOTLIGHT MAC has been recognized as among the best by its airline clients from all over the world. Its catering and ground handling units have been receiving awards from airlines. Its MRO JV has been successful in competing on the global base maintenance market. It also helps that
Slide 8: Getting Bigger: Consolidated P&L Highlights
GETTING BIGGER MAC Group financial results point to sustainable top-line and bottom-line performance. CONSOLIDATED P&L HIGHLIGHTS in PHP millions THE GROWTH STORY CONTINUES... 3,500 +26% 2,939 3,000 +22% 2,500 2,335 +12% 1,921 2,000 1,723 +100% 1,500 1,336 1,081 +146% +46% 1,000 +29% +90% 668 456 +1
Slide 9: Lufthansa Technik Philippines (LTP)
Lufthansa Technik Philippines (LTP) Maintenance, Repair and Overhaul Services (Biggest MAC investment, 49% ownership by MAC) 9
Slide 10: Lufthansa Technik Philippines: Revenues and Operating Income
Lufthansa Technik Philippines Revenues (PHP millions) Operating income (PHP millions) 2,500. and margin (%) 18% 16% 16% CAGR = 28.7% CAGR = 70.8% 2,000. 14% 12,827.5 2,040.3 12% 1,500. 11% 9% 10% 9,653.4 8% 7,740.8 1,000. 6% 1,014.0 500. 4% 699.3 2% . 0% 2015 2016 2017 2015 2016 2017 LTP’s earns in
Slide 11: Lufthansa Technik Philippines: Net Income
Lufthansa Technik Philippines Net Income (PHP millions) 2,000. and margin (%) 15% 16% 1,800. CAGR = 80.2% 14% 1,600. Year ROE 1,893.4 12% 2015 31% 1,400. 11% 10% 2016 34% 1,200. 2017 45% 1,000. 8% 8% 800. 1,014.8 6% Margins continue to increase due to 600. continuing growth in line maintenance 4% 40
Slide 12: Lufthansa Technik Philippines: Line Maintenance
Lufthansa Technik Philippines • In 2017, traffic volume resulted into more flights of line maintenance clients • PALEx fleet of six (6) A321 planes were transferred for line maintenance with LTP in Oct 2017 • PAL fleet increased in mid-December with 2 Line Maintenance revenues of new B777 USD70m is
Slide 13: Lufthansa Technik Philippines: Base Maintenance
Lufthansa Technik Philippines • Strong third-party business (65% of BM revenues), especially in the A380 layovers (50th A380 event since 2012 was marked in 2017 (Qantas A380) • Support for PAL’s “Get That 5-Star” Initiative translated into cabin refurbishment work Base Maintenance of USD83m is 54% o
Slide 14: MacroAsia Catering Services (MACS)
MacroAsia Catering Services (MACS) Airline Catering, Institutional Catering and Food Service Management (67%-owned by MAC, 33% by SATS of Singapore)
Slide 15: Catering Services: Market Share
MacroAsia Catering Services MACS operates in NAIA, in a 2-hectare leased area. MACS is the preferred caterer 12% of foreign airlines. PAL inflight meals are not being provided by MACS (only Mabuhay lounge meals). MACS also runs Foreign Airline institutional kitchens outside NAIA (e.g., Market Share
Slide 16: Catering Services: Average Daily Meals
MacroAsia Catering Services Average Daily Meals Core inflight meal business grew by 8% but non-airline meal business slowed down in 2017. CAGR = 10.8% 14,926 14,681 Marketing for non-airline 11,893 4,885 3,858 meals being produced inside 10,580 the NAIA kitchen was 10,092 constrained by facility 3,6
Slide 17: Catering Services: Revenues and Operating Income
MacroAsia Catering Services Revenues (PHP millions) Operating income and margin (%) CAGR = 14.8% 300.0 CAGR = 55.0% 25% +7% 250.0 19% 20% 1,541.0 200.0 14% 1,446.4 15% 150.0 276.6 1,168.8 10% 8% 219.6 100.0 5% 50.0 91.4 0.0 0% 2015 2016 2017 2015 2016 2017 Service fees being charged by MAC & SATS in
Slide 18: Catering Services: Net Income Before Service Fee
MacroAsia Catering Services Net income and margin before Service Fee (millions Php, %) 300.0 17% 18% CAGR = 47.4% 16% 16% 250.0 14% 200.0 250.3 12% 241.8 +4% 10% 10% 150.0 8% 100.0 6% 115.3 4% 50.0 2% 0.0 0% 2015 2016 2017
Slide 19: Catering Services: Net Income and Margin
MacroAsia Catering Services Net income and margin 200.0 (millions Php, %) 14% Year ROE 2015 15% 180.0 12% 12% 2016 33% 160.0 9% 2017 23% CAGR = 53.2% 10% 140.0 120.0 • Lower 2017 net income is mainly due to the 8% increase in service fees to MAC & SATS 100.0 (PHP40m increase). 174.5 6% 80.0 5% 142.9
Slide 20: MACS Volume Developments
MacroAsia Catering Services MACS Volume Developments 16,000 14,000 Volume of meals is expected to grow further after MSFI facility is completed this 2018. 12,000 Facility challenges were faced in 2017 for the 20- 10,000 yr old kitchen that has been opened for 24/7 ever since it started in 1998. 8,00
Slide 21: A Preferred-VVIP Caterer
MacroAsia Catering Services A Preferred-VVIP Caterer 2017 ASEAN Summit • Brunei • Cambodia • India • Laos • Russia • South Korea
Slide 22: 2018 Inflight Meals Growth
MacroAsia Catering Services 2018 Inflight Meals Growth: Royal Brunei Airlines (BI) • 1st catering provisioning, Feb. 01, 2018 China Eastern (Shanghai) • 1st catering provisioning, Mar. 25, 2018
Slide 23: Expanding Production Capacity In 2018
MacroAsia Catering Services Expanding Production Capacity In 2018 • MSFI Facility in Sucat: slated for operations by 2H 2018
Slide 24: Expanding Production Capacity In 2018
MacroAsia Catering Services Expanding Production Capacity In 2018 • MSFI Facility in Sucat: slated for operations by 2H 2018
Slide 25: Expanding Production Capacity In 2018
MacroAsia Catering Services Expanding Production Capacity In 2018 • MSFI Facility in Sucat: slated for operations by 2H 2018
Slide 26: MacroAsia Service Corporation (MASCORP)
MacroAsia Service Corporation (MASCORP) Gateway Services, Ground Handling (100% MAC)
Slide 27: Airport Services Corporation: Revenues and Operating Income
MacroAsia Airport Services Corporation Revenues (millions Php) Operating income and margin (millions Php, %) 120. 12% 10% 100. 10% 10% CAGR = 41.3% 1,032.4 CAGR = 77.2% +52% 80. +51% 8% 678.8 6% 60. 6% 105.0 516.9 40. 4% 69.5 20. 2% 33.5 . 0% 2015 2016 2017 2015 2016 2017
Slide 28: Airport Services Corporation: Net Income and Margin
MacroAsia Airport Services Corporation Net income and margin Year ROE (millions Php, %) 2015 11% 80. 8% CAGR = 94.5% 7% 2016 22% 7% 70. 7% 2017 26% 60. 6% 50. +53% 5% • Net income increased mainly due to increase in flights handled in 40. 4% 4% 71.2 more number of airports served 30. 3% • Efficienci
Slide 29: 27 Stations
MacroAsia Airport Services Corporation LUZON VISAYAS MINDANAO Basco Tacloban Dipolog From 7 stations Laoag Kalibo Zamboanga in 2016 to Tuguegarao Roxas General Santos Clark Cebu Davao 27 stations in Manila – NAIA 1, 2, & 3 Iloilo Surigao 2017 Naga Bacolod Butuan Legazpi Cotabato Busuanga Cagayan De
Slide 30: Manila Market Share
MacroAsia Airport Services Corporation Manila Market Share 8% KEY CURRENT MARKET MASCORP DEVELOPMENTS: 17% Sky Logistics PAL Express • Winding down of Miascor MIASCOR groundhandling operations has Others resulted into its clients looking for new providers. 17% • Following the news of Miascor’s closu
Slide 31: Continuing Growth In 2018
MacroAsia Airport Services Corporation Continuing Growth In 2018 • Number of airports where MASC will be present will reach 30 New airports include: • Sibulan Airport (Dumaguete) • Labo Airport (Ozamiz) • Tagbilaran Airport (Bohol) • New clients (MIASCOR accounts): • Manila • Cebu • Jetstar Japan -
Slide 32: Standing On Solid Ground: Balance Sheet Highlights
STANDING ON SOLID GROUND BALANCE SHEET HIGHLIGHTS (in PHP millions) As of End: 2017 2016 Inc (Dec) % Change Cash 1,005.3 559.7 445.6 79.6% Total Assets 6,610.1 4,796.3 1,813.8 37.8% Total Loans 720.3 187.8 532.5 283.6% Total Liabilities 1,988.4 961.0 1,027.4 106.9% Total Equity 4,621.7 3,835.5 786.2
Slide 33: Standing On Solid Ground: Income Statement Highlights
STANDING ON SOLID GROUND Audited Increase/ (In Php Millions) 2017 2016 (Decrease) % CONSOLIDATED INCOME STATEMENT HIGHLIGHTS NET SERVICE REVENUE (in PHP millions) In-flight and other catering 1,541.5 1,446.4 95.2 7% Ground handling and aviation 1,032.4 678.8 353.7 52% Rental and administrative 197.2
Slide 34: Moving Forward To Higher Ground: Company Developments
MOVING FORWARD TO HIGHER GROUND SOME CURRENT COMPANY DEVELOPMENTS a) ENHANCING FOCUSED-GROWTH: Transfer of water subsidiaries from MacroAsia Properties Development Corporation to another holding company under control of MacroAsia Corporation b) REVISITING COMPANY CAPITAL AND EARNINGS RETAINED: Decla
Slide 35: Outlook and Guidance
MOVING FORWARD TO HIGHER GROUND OUTLOOK AND GUIDANCE: KEEPING THE 20% BOTTOMLINE GROWTH AS 2018 TARGET FOR NOW. 35
Slide 36: Some Indicators for 2018
MOVING FORWARD TO HIGHER GROUND SOME INDICATORS FOR 2018: • From PHP905M capex spending in 2017, the MAC Group is allocating PHP2.6B for capex to expand (excluding investments to be allocated for M&A transactions). Of this PHP2.6B budget, PHP1.9B is for aviation-services related businesses. No capit
Slide 37: Q&A
Q&A