Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — 9M 2019 Earnings Presentation
21 slides from Megawide Construction's earnings presentation, Sep 30, 2019
Slide 1: Financial and Operating Highlights
FINANCIAL AND OPERATING HIGHLIGHTS Nine Months Ended September 30, 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: 9M2019 Consolidated Income Statement
9M2019 CONSOLIDATED INCOME STATEMENT In PhP M 9M 2019 9M 2018 YoY% REMARKS Total Revenues 13,694 12,746 7% Construction 10,526 10,352 2% Rebound on track Airport Operations 2,714 2,180 25% In line with expectations Airport Merchandising 248 215 15% Landport Operations 207 - 100% Initial lease commen
Slide 4: Financial Highlights: Rebound performance on track
FINANCIAL HIGHLIGHTS QUARTERLY PERFORMANCE (PHPm) 6,000 1,400 1,287 1,230 1,168 1,111 1,139 1,200 1,083 5,000 1,000 888 4,000 800 Revenue EBITDA 5,510 600 3,000 4,450 4,611 4,361 3,936 400 3,572 3,246 2,000 200 1,000 - 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 • Rebound performance on track 4 -
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME (PhP M) 13,694* 3,481 3,537** 1,720 12,746 248 90 100 72 215 2,180 2,714 1,575 1,723 907 835*** 67 10,352 10,526 379 1,815 1,696 741 431 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 9M2019 BREAKDOWN REVENUE EBITDA NET INCO
Slide 6: Margin Performance
MARGIN PERFORMANCE In PhP M 9M 2019 9M 2018 REMARKS FY 2018 FY 2017 FY 2016 Gross Profit Margin 24% 28% 27% 24% 22% Construction 14% 17% Focus on L-T, high-value projects 15% 16% 15% Airport Operations 58% 79% T2 related costs 75% 82% 81% Airport Merchandising 75% 76% 76% 72% - EBITDA Margin 26% 27%
Slide 7: Financial Position
FINANCIAL POSITION In PhP M 30-Sep-19 31-Dec-18 Movement % Change Cash & Financial Assets 6,335 5,761 574 10% Other Current Assets 23,298 19,029 4,268 22% Total Current Assets 29,633 24,790 4,843 20% Concession Assets 29,377 28,289 1,088 4% Total Non Current Assets 45,104 41,115 3,989 10% Total Asse
Slide 8: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS In PhP M As of September 2019 As of December 2018 Parent* GMCAC** Conso Parent GMCAC Conso Cash/financial assets 3,633 1,306 6,335 3,615 1,941 5,761 Total Debt 15,061 24,483 43,340 11,655 24,300 36,780 Equity 12,888 9,176 18,434 12,725 8,796 18,004 D-E Ratio 1.17 2.67 2.
Slide 9: Engineering, Procurement, and Construction (EPC)
1 Engineering, Procurement, and Construction (EPC)
Slide 10: Recovery on Track
11 RECOVERY ON TRACK QUARTERLY PERFROMANCE (PhP M) 6,000 756 800 652 700 5,000 520 600 576 524 4,000 484 500 Revenue 3,000 400 EBITDA 319 5,026 4,342 300 2,000 3,616 2,989 200 2,337 2,337 2,568 1,000 100 - - 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 • Building forward momentum 10
Slide 11: Healthy New Contracts and Order Book
11 HEALTHY NEW CONTRACTS AND ORDER BOOK ORDER BOOK (PhP B) 9M 2019 ORDER BOOK (SEGMENT) 60.0 50.1 52.2 50.0 39.1 38.5 Office, Commercial and 40.0 Industrial, 37% 32.6 Order 30.0 backlog Residential, 60 22.6 58% 50 > 2-3 20.3 20.0 40 18.8 years 30 10.0 20 10 23 27 38 50 37 41 43 30 Infra, 0 0.0 5% 20
Slide 12: Airport Business Segment
TRANSPORT INFRASTRUCTURE 2 Airport Business Segment
Slide 13: Robust Earnings Stream
22 ROBUST EARNINGS STREAM 25% 75% YoY Growth REVENUES * Increase in revenue 1,000 (In PhP M) 899 897 918 857 900 816 800 646 676 700 EBITDA** 570 586 568 575 (In PhP M) 585 590 590 600 465 483 493 534 543 431 481 510 500 420 430 402 368 389 400 329 321 285 300 200 100 - 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Slide 14: PSC: Passenger Growth Sustained
2 PSC: PASSENGER GROWTH SUSTAINED 9M19 BREAKDOWN PASSENGER VOLUME (millions) 9M19 9M18 % Increase P1.49M 23% 55% Domestic 6.30 5.70 10% International 3.19 2.94 9% Total 9.48 8.64 10% 27 Domestic 23 International Destinations Destinations PASSENGER TRAFFIC 3,500,000 3,000,000 2,500,000 1st Step up: e
Slide 15: Non-Aero: Expanding Space and Offerings
2 NON-AERO: EXPANDING SPACE AND OFFERINGS NEW SHOPS AT TERMINAL 2 9M19 BREAKDOWN 33% P900M 29% RETAIL GLA (in sqms) T1 Ph 2 Airport village 400 T1 RENOVATION (PHASE 1) T2 1,800 T1 Ph1 3,800 3,800 3,800 3,200 3,500 4,200 4,200 2,000 2016 2017 2018 2019E 2020F AIRPORT VILLAGE Rental revenues from conc
Slide 16: Aero: New Flights, Increased Frequencies
2 AERO: NEW FLIGHTS, INCREASED FREQUENCIES 9M19 BREAKDOWN AIR TRAFFIC VOLUME (thousands) 13% P325M 9M19 9M18 % Increase 19% Domestic 57,876 55,286 5% International 20,850 19,204 9% Total 78,726 74,490 6% AVE. DAILY FLIGHTS Domestic 203 204 International 181 AIR TRAFFIC 139 30,000 120 80 55 59 69 25,
Slide 17: Integrated Transport Exchange Business Segment
TRANSPORT INFRASTRUCTURE 3 Integrated Transport Exchange Business Segment
Slide 18: Building Critical Mass
3 BUILDING CRITICAL MASS AVERAGE PASSENGER AVERAGE DAILY TRIPS* FOOT TRAFFIC vs SPP (PHP) 25.4 70000 5,365 5,193 60000 22 4,849 50000 17 40000 4,020 12 30000 3,430 20000 7 36,407 39,287 36,612 40,578 59,715 55,811 49,630 45,081 48,167 51,940 10000 3.8 2 0 *includes arrivals and departures 18
Slide 19: Initial Revenue Contribution
3 INITIAL REVENUE CONTRIBUTION OFFICE (72K sqms) Tower 4 Tower 3 Lease Lease commenced: Tower 2 commenced: Oct 2019 Oct 2019 Lease commencement: Tower 1 4Q19 Lease commencement: 4Q19 OPERATIONAL RETAIL (12K sqms) • 70% leased out (Sept 2019) ➢ 79% F&B ➢ 11% Retail ➢ 10% Services • 75% operational (e
Slide 20: 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 (PhP M) EBITDA (PhP M) EBITDA Margin 20 20
Slide 21: JOIMVOSW
JOIMVOSW 15
Megawide Construction — 9M 2019 Earnings Presentation on 6ix