Megaworld Corp. · PSE:MEG
Megaworld — Q1 2018 Earnings Presentation
13 slides from Megaworld's earnings presentation, 2018
Slide 1: Results Briefing 1Q 2018
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Slide 2: Performance Update
PERFORMANCE UPDATE In PHP billions 1Q 2017 1Q 2018 %change Revenues 12.0 13.1 9.2% • Core earnings up 8.4% Real Estate Sales 6.9 7.2 5.0% Rental 2.9 3.4 16.5% • Steep rental income growth underpins robust results Hotel 0.3 0.4 9.9% Other Revenues 1.9 2.1 13.1% • RGPPYS (↑16%), ESNEA (↑13%), & IOI (↑
Slide 3: Consolidated Revenue Breakdown
CONSOLIDATED REVENUE BREAKDOWN 1Q 2017 1Q 2018 Rental Income Rental Income Real Estate 24% Real Estate 26% 69% 67% Hotel Operations Hotel Operations 3% 3% Interest & Other Interest & Other 4% 4% In PHP billions 1Q 2017 1Q 2018 %change Real Estate Sales 6.9 7.2 5.0% • Residential business up 6% as a
Slide 4: Stable Overall Residential Margins
STABLE OVERALL RESIDENTIAL MARGINS In PHP billions 1Q 2017 1Q 2018 %change Real Estate Sales (RES) 6.9 7.2 5.0% +Interest income on 0.3 0.3 11.8% Real Estate Sales Total RES 7.2 7.5 5.3% -Cost of RES 3.9 4.1 6.3% Gross Profit on RES 3.3 3.4 4.1% Gross Profit Margin 46.1% 45.5% -60bps • Slight dip in
Slide 5: Diversified Real Estate Sales Mix
DIVERSIFIED REAL ESTATE SALES MIX in PHP billions 1Q 2017 (% of sales) 1Q 2018 (% of sales) 1Q 2018 by Brand 1Q 2018 by Location MEG 4.6 66% 4.8 67% MM Taguig 1.4 20% 1.2 18% Ex-Fort GERI Bonifacio Makati 0.9 12% 1.2 16% 16% 52% MEG 67% ELI Fort Pasay& Parañaque 0.4 6% 0.6 8% Luzon 17% Bonifacio Ex-
Slide 6: Project Launches
PROJECT LAUNCHES Park Bayshore McKinley Residential West Resorts P6.5 billion Phase 2 P18.5 billion The Belvedere Three P1.0 billion 6
Slide 7: Growing Rental Income – High Margin Business
GROWING RENTAL INCOME – HIGH MARGIN BUSINESS In PHP billions 1Q 2017 1Q 2018 %change Revenues Rental 2.9 3.4 16.5% Intersegment Sales & 0.1 0.2 73.7% Interest Income Rental Revenues 3.0 3.6 18.9% -Operating Expense 0.9 1.0 13.9% Rental Operating Income 2.1 2.6 20.9% +Interest Expense 0.1 0.1 14.5% R
Slide 8: Growing Rental Income Driven by Office & Lifestyle Mall Leasing
GROWING RENTAL INCOME DRIVEN BY OFFICE & LIFESTYLE MALL LEASING Increasing Rental Income (in PhP billions) Rental 20 • P12bn in 2017 • P20bn in 2020 • Over 1 million GLA in 8.9 2016 7.2 6.2 6.0 • Over 2 million GLA in 5.1 3.5 4.1 15% 3.0 18% 2020 23% 3.6 4.0 1.8 2.1 2.9 1.3 0.2 0.2 0.3 1.1 0.1 0.1 O
Slide 9: Solid Balance Sheet
SOLID BALANCE SHEET in PHP billions 46% 45% 43% 39% 36% 36% 31% 28% 26% 22% 74.9 74.5 61.2 7% 52.6 31.8 33.5 28.6 25.1 22.8 16.4 16.4 15.3 2013 2014 2015 2016 2017 1Q 2018 Total Borrowings Cash & Cash Equivalents Debt to Equity Net Debt to Equity FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 1Q 2018 Debt
Slide 10: Debt Maturity Profile
DEBT MATURITY PROFILE Borrowings Loans in PHP billions 74.9 74.5 61.2 Floating 52.6 40.5 39.4 Rate <1% 38.9 33.5 31.7 28.6 Fixed 3.8 8.8 Rate 34.4 35.1 99% 24.8 24.8 20.9 22.3 2013 2014 2015 2016 2017 1Q 2108 Bonds Loans Bonds Coupon Rate Date Issued Maturity $250,000,000 4.25% April 2013 2023 $200,
Slide 11: 5-Year Capex Plan
5-YEAR CAPEX PLAN PHP285.8B UNTIL 2019 PHP285.8B 2015 2016 2017 2018 2019 PHP54.5B PHP48.8B PHP48.9B PHP60B 1Q 2018 CAPEX Spending 2018 CAPEX Budget Investment Properties Residential & 30% Investment Residential Properties 50% P9.4 B Land Acquisitions 20% 11
Slide 12: Key Takeaways
KEY TAKEAWAYS • Diversified township roster • 23 townships across the country • Growing contributions from outside MM • High residential base • High blended GPM at ~46% 1Q 2018 presales at P43bn (P110bn in 2018) 1Q 2018 launches at P37bn (P60bn in 2018) • Growing high margin rental business • Rental
Slide 13: Results Briefing 1Q 2018
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