Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — H1 2019 Earnings Presentation
28 slides from Megawide Construction's earnings presentation, 2019
Slide 1: Financial and Operating Highlights First Half 2019
FINANCIAL AND OPERATING HIGHLIGHTS First Half 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: 1H2019 Consolidated Income Statement
1H2019 CONSOLIDATED INCOME STATEMENT In PhP M 2Q 2019 1Q 2019* QoQ % 1H 2019 1H 2018 YoY% Total Revenues 4,611 3,572 29% 8,184 8,810 -7% Construction 3,616 2,568 41% 6,184 7,363 -16% Airport Operations 897 899 0% 1,796 1,322 36% Airport Merchandising 73 85 -14% 158 125 27% Landport Operations 25 20
Slide 4: Financial Highlights: Quarterly Performance
FINANCIAL HIGHLIGHTS QUARTERLY PERFORMANCE 5,000 700 637 585 600 498 4,000 500 418 Revenue 400 Net Income 313 3,000 300 174 200 4,450 4,361 3,936 3,246 3,572 4,611 2,000 100 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 4 -
Slide 5: Financial Highlights: Performance
FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME (PhP M) 4,611** 1,373 418**** 73 3,572* 1,190 29 3,246 897 1,020 17 85 34 313*** 75 34 899 543 26 816 174 204 590 534 105 3,616 25 2,337 2,568 799 33 186 198 452 566 116 4Q2018 1Q 2019 2Q 2019 4Q2018 1Q 2019 2Q 2019 4Q2018 1Q
Slide 6: Margin Performance
MARGIN PERFORMANCE In PhP M 1H 2019 1H 2018 FY 2018 FY 2017 FY 2016 Gross Profit Margin 26% 26% 27% 24% 22% Construction 15% 16% 15% 16% 15% Airport Operations 58% 86% 75% 82% 81% Airport Merchandising 75% 75% 76% 72% - EBITDA Margin 31% 27% 29% 23% 20% Construction*** 22% 18% 19% 16% 15% Airport Op
Slide 7: Financial Position
FINANCIAL POSITION In PhP M 30-Jun-19 31-Dec-18 Movement % Change Cash & Financial Assets 5,354 5,761 (407) -7% Other Current Assets 21,858 19,029 2,829 15% Total Current Assets 27,212 24,790 2,421 10% Concession Assets 28,580 28,289 291 1% Total Non Current Assets 43,144 41,115 2,029 5% Total Asset
Slide 8: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS In PhP M As of June 2019 As of December 2018 Parent* GMCAC** Conso Parent GMCAC Conso Cash/financial assets 2,932 1,273 5,354 3,615 1,941 5,761 Total Debt 13,988 24,431 39,244 11,655 24,300 36,780 Equity 12,963 9,106 18,470 12,725 8,796 18,004 D-E Ratio 1.08 2.68 2.12 0.
Slide 9: Engineering, Procurement, and Construction (EPC)
1 Engineering, Procurement, and Construction (EPC)
Slide 10: Recovery on Track
11 RECOVERY ON TRACK REVENUES (PhP B) REVENUE (Php B) Revenue GP Margin 5.5 17.5% 18.0 17.0% 4.2 4.1 4.1 4.3 16.0 16.5% 17.0% 16.0% 16.4% 14.0 16.0% 16.2% 3.7 3.7 3.6 3.6 15.0% 15.0% 15.0% 12.0 3.4 15.5% 3.2 10.0 3.0 15.0% 14.2% 2.6 8.0 14.5% 2.3 6.0 14.0% 4.0 13.5% 13.0% 2.0 7.7 8.2 10.9 9.8 14.0 1
Slide 11: Healthy New Contracts and Order Book
11 HEALTHY NEW CONTRACTS AND ORDER BOOK ORDER BOOK (PhP B) 1H 2019 ORDER BOOK (SEGMENT) 60.0 Order Book 50.1 51.7 50.0 Office, Commercial and No. of Projects Industrial, 28% 39.1 38.5 40.0 32.6 Order 30.0 backlog 22.6 Residential, > 2-3 20.3 65% 20.0 18.8 years Infra, 7% 10.0 23 27 38 50 37 41 43 30
Slide 12: Serving Huge Demand for Pre-cast
1 SERVING HUGE DEMAND FOR PRE-CAST CLIENT: Phirst Park Homes Tanza, Cavite 12 12
Slide 13: Airport Business Segment
TRANSPORT INFRASTRUCTURE 2 Airport Business Segment
Slide 14: Robust Earnings Stream
22 ROBUST EARNINGS STREAM 36% 75% YoY Growth Increase in revenue 1,796 REVENUES * (In PhP M) 1,674 1,322 1,156 1,143 1,119 1,133 EBITDA** (In PhP M) 976 990 896 832 809 724 760 689 614 549 422 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 * Excludes airport revenues 1H19 of PhP 158M ** Computed as Op
Slide 15: Healthy Revenue and EBITDA
2 HEALTHY REVENUE AND EBITDA AIRPORT REVENUE 4-yr EBITDA** (In Php M) CAGR (In PhP M) 2,996* 19% AERO-RELATED 22% 70% NON-AERO 372 PSC 30% 2,298 14% 71% 295 970 1,872 36% 1,796 232 38% 70% 1,484 723 215 168 532 65% 591 40% 2,109 339 1,641 14% up YoY 1,655 1,303 1,280 1,133 1,108 971 200 977 990 33%
Slide 16: PSC: Passenger Growth Sustained
2 PSC: PASSENGER GROWTH SUSTAINED 1H19 BREAKDOWN PASSENGER VOLUME (millions) 1H19 1H18 % Increase P990M 33% 55% Domestic 4.29 3.87 11% International 2.08 1.89 10% Total 6.37 5.76 10% 28 Domestic 22 International Destinations Destinations PASSENGER TRAFFIC 3,500,000 3,000,000 2,500,000 1st Step up: e
Slide 17: Non-Aero: Expanding Space and Offerings
2 NON-AERO: EXPANDING SPACE AND OFFERINGS NEW SHOPS AT TERMINAL 2 1H19 BREAKDOWN 32% P591M 40% RETAIL GLA (in sqms) T2 T1 POST-RENOVATION T1 COMMERCIAL SPACE AREA 3,800 3,800 3,200 3,500 4,200 2,000 2016 2017 2018 2019E Rental revenues from concession tenants such as F&B and Retail. NON-AERO Also in
Slide 18: Aero: New Flights, Increased Frequencies
2 AERO: NEW FLIGHTS, INCREASED FREQUENCIES 1H19 BREAKDOWN P215M AIR TRAFFIC VOLUME (thousands) 13% 38% 1H19 1H18 % Increase Domestic 38,888 37,719 3% International 13,459 12,124 11% Total 52,347 39,843 5% Details of new routes/frequency in 2019 Airline Destination Start Date Aircraft/Frequency INTER
Slide 19: Integrated Transport Exchange Business Segment
TRANSPORT INFRASTRUCTURE 3 Integrated Transport Exchange Business Segment
Slide 20: Increasing Foot Traffic
3 INCREASING FOOT TRAFFIC AVERAGE PASSENGER AVERAGE DAILY TRIPS* FOOT TRAFFIC 4,195 3,847 59,700 3,598 3,514 50,300 36,400 36,600 9,800 315 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Nov-18 Jan-19 Mar-19 May-19 Jul-19 *include arrivals and departures 20
Slide 21: Expanding Connectivity
3 EXPANDING CONNECTIVITY 21 21
Slide 22: Initial Revenue Contribution
3 INITIAL REVENUE CONTRIBUTION OFFICE (72K sqms) Tower 4 Tower 3 Start of Start of operations: Tower 2 operations: Aug 2019 Aug 2019 Start of operations: Tower 1 4Q19 Start of operations: 4Q19 RETAIL (12K sqms) OPERATIONAL UPCOMING • 58% leased out (July 2019) ➢ 79% F&B ➢ 11% Retail ➢ 10% Services •
Slide 23: 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 23 23
Slide 24: Business Updates
BUSINESS UPDATES
Slide 25: MCIA Mixed-Use Development
MCIA MIXED-USE DEVELOPMENT PROPOSAL KEY HIGHLIGHTS ➢ Hotel complex ➢ Total area for dev’t: 4.5 Hectares ▪ ~400 guest rooms ▪ International hotel chain brand ➢ Concept: complimentary mixed-use ➢ Development timetable: 2-3 years ➢ Commercial area ▪ Travel retail mall concept ▪ Follow airport and hotel
Slide 26: ESG Compliance
nH ESG COMPLIANCE ENGINEERING FIRST-WORLD - SUSTAINABILITY fil MEGAWIDE SUSTAINABILITY REPORT 2018 26 MEGAWIDE CSR POLICY STATEMENT TNR unten) engineer a First-World Philippines, Megawide Construction Corporation commits to do its utmost to exemplify First-World corporate social responsibility. WG r
Slide 27: Sustainability Initiatives
SUSTAINABILITY INITIATIVES 27 27
Slide 28: JOIMVOSW
JOIMVOSW 15
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