Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — FY2021 Earnings Presentation
35 slides from Megawide Construction's earnings presentation, Apr 22, 2022
Slide 1: Analyst Briefing: Operating and Financial Results for FY2021
Analyst Briefing Operating and Financial Results for FY2021 22 April 2022
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: Table of Contents
I CONSOLIDATED FINANCIAL PERFORMANCE II EPC Table of Contents III AIRPORT IV LANDPORT V CARBON MARKET VI ANTI-DUMMY CASE UPDATE
Slide 4: FY2021 Performance
FY2021 Performance
Slide 5: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT In PhP M 2021 2020 % Revenues 15,643.97 12,923.22 21% Contract revenues 14,329.46 10,842.20 32% Sustained activities Airport operations revenues 576.04 1,108.67 -48% Restricted travel Trading operations revenues 23.43 69.94 -67% Limited comm’l activities Terminal operat
Slide 6: Segment Breakdown
SEGMENT BREAKDOWN REVENUE (Pmn) EBITDA (Pmn) NET INCOME / (LOSS) (Pmn) 15,644 715 12,923 576 23 2,842 902 (893) 70 2,806 (875) 1,109 78 471 740 401 367 299 10 2 14,329 -497 10,842 2,510 1,758 -1,358 -746 -393 -130 -10 -14 2021 2020 2021 2020 2021 2020 4% -1% 5% 6% 18% 21% -5% 87% 91% -72% Constructi
Slide 7: Margin Performance
MARGIN PERFORMANCE 2021 2020 2019 Gross Profit Margin 18% 19% 23% Construction 15% 13% 13% Airport Operations 33% 43% 58% Airport Merchandising 32% 70% 73% Terminal Operations 48% 61% 44% EBITDA Margin 18% 22% 24% Construction 18% 16% 15% Airport Operations -23% 27% 63% Airport Merchandising -41% 14
Slide 8: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS In PhP M 31 December 2021 31 December 2020 Parent1 GMCAC2 Conso Parent1 GMCAC2 Conso Cash/financial assets 3,180 280 5,846 5,705 979 7,226 Total Debt 20,418 25,237 49,502 18,146 23,864 45,920 Equity 16,637 6,786 19,201 15,823 8,138 20,532 D-E Ratio 1.23 3.72 1.07 1.15 2.93 2
Slide 9: Long-Term Financial Management
LONG-TERM FINANCIAL MANAGEMENT PARENT D-E RATIO WITHIN MORE RELAXED DEBT MATURITY COVENANT TOWERS 2.33x Covenant 1.59 1.23 1.15 2019 2020 2021 2022F 2023F 2024F 2025F 2026F 9
Slide 10: EPC: Pivoting to infrastructure and stability
EPC: Pivoting to infrastructure and stability
Slide 11: Managing Cyclicality
MANAGING CYCLICALITY 2021 BREAKDOWN Const Solutions 7% 16,689 15,309 14,329 12,688 10,842 EPC 93% QUARTERLY PERFORMANCE (PhP M) 2017 2018 2019 2020 2021 HIGHLIGHTS: 4,783 4,342 • Exceeded pre-COVID (2018) levels 3,799 3,773 3,616 3,572 3,563 3,430 3,421 • More stable quarterly performance 2,568 2,55
Slide 12: Healthy and More Balanced Order Book
HEALTHY AND MORE BALANCED ORDER BOOK ORDER BACKLOG SEGMENT 100 80.0 90 70.0 80 Order Book (PhP B) 68.4 Residential, 34% 60.0 Office, Commercial and Industrial, 70 No. of Projects 60.0 49% 50.0 60 52.4 50 50.1 50 37 41 40.0 40 39.1 30.0 30 32.6 43 38.5 20.0 20 30 10 21 21 10.0 Infra and Facilities, 0
Slide 13: Looking Ahead: Metro Manila Subway
LOOKING AHEAD Est. Cost Package Section Scope (PhpB) 2.98 km with 2 North Ave. to underground CP 102 17 East Ave. stations at Quezon Ave. & East Ave. METRO MANILA SUBWAY 6.58 km with 2 East Ave. to underground CP 103 38 • Total length of ~25 kms Ortigas Ave. stations at Anonas and Katipunan • 13 und
Slide 14: Looking Ahead: North-South Commuter Railway
LOOKING AHEAD Est. Cost Package Section Scope (PhpB) 1.1km, elevated rail CP S-01 Solis to Blumentritt 13 with 1 station Blumentritt 7.9km, elevated rail, CP S-02 28 to Paco with 3 stations NORTH-SOUTH 7.9km, mostly COMMUTER RAIL* CP S-03A Paco to Nichols elevated rail, 25 with 2 stations • Distance
Slide 15: Looking Ahead: Emerging Construction Solutions
LOOKING AHEAD EMERGING CONSTRUCTION SOLUTIONS 1,000 8% 900 7% 7% • Construction Solutions* 800 6% 6% ➢ More than doubled from 2020 700 ➢ Highest share to total construction 600 4% 5% revenues todate 500 4% ➢ Adding value to internal projects 138% 400 ➢ Growing external order book 2% 3% 300 2% 200 1%
Slide 16: Airport: Waiting on the Wings
Airport: Waiting on the Wings
Slide 17: Huge Upside in the Horizon
HUGE UPSIDE IN THE HORIZON 2021 BREAKDOWN AERO RELATED, 3,691 P77M PSC, P190M 2,996 2,298 NON-AERO, P308M 1,109 576 2017 2018 2019 2020 2021 QUARTERLY REVENUES (PhP M) 210 HIGHLIGHTS: • Significant jump in 4Q21 performance 133 • Revenues to catch up 114 119 111 110 • Non-aero share continue to rise
Slide 18: Passenger Traffic Recovering
PASSENGER TRAFFIC RECOVERING PASSENGER MONTHLY 21.1 BREAKDOWN (in ‘000) Dom 28.5 Int'l Int'l 20.6 12.8 13% 7.7 12.2 16.9 8.4 58.5 13.7 55.5 15.0 62.1 5.4 52.6 5.4 111.0 115.5 169.4 218.3 73.7 81.7 89.4 73.2 Domestic 87% PASSENGER VOLUME (‘000) 2021 2020 % Decrease Domestic 1,164.0 1,932.3 -40% Int’l
Slide 19: Gateway to Europe / Middle East Unlocked
GATEWAY TO EUROPE / MIDDLE EAST UNLOCKED ATM MONTHLY BREAKDOWN Dom 291 Int'l Int'l 333 10% 302 103 69 98 153 109 70 70 131 58 1,060 1,220 1,367 1,693 2,219 818 845 771 860 788 997 701 Domestic 90% ATM YTD 2021 2020 % Decrease Domestic 12,770 20,533 -38% Int’l 1,372 6,033 -77% Total 14,142 26,566 -47
Slide 20: Non-Aero Holding Up
NON-AERO HOLDING UP COMMERCIAL GLA (sqms) NON-AERO SHARE TO TOTAL 60% 10.0 T1 Ph 2 400 400 9.1 9.0 Airport village 50% 7.8 1,800 1,800 1,800 7.1 8.0 T2 40% 6.1 7.2 7.0 T1 Ph1 5.0 6.0 3,800 3,800 3,800 30% 5.0 4.0 3,800 20% 3.0 4,200 4,200 4,200 10% 2.0 3,200 3,500 2,000 28% 31% 32% 34% 44% 54% 1.0 0
Slide 21: Looking Ahead: Global Air Travel Forecast
LOOKING AHEAD GLOBAL AIR TRAVEL FORECAST (% of 2019 Traffic) • Domestic Boost 103% ➢ Managed infections and relaxed 94% restrictions 83% ➢ Campaign for 2022 National Elections ➢ Summer Season • International Revival ➢ Lifting of global travel restrictions ➢ Turkish Airlines (new) and Emirates (retur
Slide 22: Landport: Filling in the void
Landport: Filling in the void
Slide 23: Industry-Wide Low Occupancy
INDUSTRY-WIDE LOW OCCUPANCY 2021 BREAKDOWN REVENUE (Pmn) PFRS 16 18% 759 Retail 587 13% 555 Office 69% 18 QUARTERLY RENTAL REVENUE 2018 2019 2020 2021 (in Php M) 21 Office HIGHLIGHTS: Commercial 34 31 23 • Office occupancy remains high 19 266 • Commercial revenues growing 30 199 186 169 20 154 • Pas
Slide 24: Breaching Pre-Pandemic Level
Jan-20 Feb-20 61 60 Mar-20 56 Apr-20 May-20 10 27 Jun-20 Jul-20 Aug-20 29 Sep-20 39 Oct-20 Nov-20 46 51 Dec-20 58 Jan-21 Feb-21 52 53 Mar-21 45 Apr-21 26 May-21 41 Jun-21 51 Jul-21 47 Aug-21 28 Sep-21 35 AVERAGE DAILY FOOT TRAFFIC (‘000) Oct-21 51 Nov-21 62 Dec-21 80 BREACHING PRE-PANDEMIC LEVEL Jan
Slide 25: Slowly Filling the Void
SLOWLY FILLING THE VOID RETAIL (12K sqms) OFFICE (72K sqms) • 65% occupancy • 83% with signed contracts • ~P1,200/sqm/month (ave) • ~P1,000/sqm/month (ave) RETAIL MIX Services, 10% Consumer Goods, 15% IV III I II F&B, 75% 25
Slide 26: Looking Ahead: Office and Commercial
LOOKING AHEAD • Office ➢ Tower 2 (5th & 9th Floors) signed ➢ Add’l GLA fitting out: 6,500 sqms ➢ Ave Lease Rate: P900/sqm/mo • Commercial ➢ New exciting offerings ➢ Add’l GLA fitting out: 1,250 sqms ➢ Ave Lease Rate: P1,200/sqm/mo 26
Slide 27: Carbon Market: District Revitalization
Carbon Market: District Revitalization
Slide 28: Carbon Masterplan
CARBON MASTERPLAN 28
Slide 29: Sto. Nino Statue and Chapel Consecrated
STO. NINO STATUE AND CHAPEL CONSECRATED 29
Slide 30: Interim Market Exterior
INTERIM MARKET EXTERIOR «ge , Wee = (CARBON MARKET 3? —= SES
Slide 31: Interior: Ready for Tenants
INTERIOR: READY FOR TENANTS 31
Slide 32: Fruits and Vegetables
FRUITS AND VEGETABLES 32
Slide 33: Looking Ahead: GLA Build Up
LOOKING AHEAD GLA BUILD UP • 2022 ➢ Interim market operational ➢ GLA: 4,000 sqms ➢ Ave Lease Rate: P1,200/sqm/mo • Phase 1 ongoing ➢ GLA: ~50,000 sqms (2027 fully built-up) ➢ Ave Lease Rate: P1,500/sqm/mo 2022F 2023F 2024F 2025F 2026F 2027F Interim Market Comm'l Puso Village Bayfront 33
Slide 34: Update on Alleged Anti-Dummy Law Case
Update on Alleged Anti-Dummy Law Case
Slide 35: Thank you
hil MEGAWIDE <oanwe Philippines Thank you Contact us