Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — H1 2018 Earnings Presentation
28 slides from Megawide Construction's earnings presentation, 2018
Slide 1: Analyst Briefing: Financial Highlights as of 1H 2018
ANALYST BRIEFING Financial Highlights As of 1H 2018
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: 1H 2018 Consolidated Income Statement
1H 2018 CONSOLIDATED INCOME STATEMENT In Php M 1H 2018 1H 2017 Mov’t % Remarks Total Revenues 8,958 9,503 (545) (6%) Construction 7,363 8,296 (933) (11%) Due to timing start of new projects Airport Operations 1,322 1,156 166 14% 12% growth in passenger volume Airport Merchandising 273 51 222 434% Di
Slide 4: 1H 2018 Financial Highlights
1H 2018 FINANCIAL HIGHLIGHTS REVENUE EBITDA NET INCOME 3% 4% 6% 15% 35% Construction Airport Merchandising 82% 41% 55% 59% CONSTRUCTION AIRPORT*** +11% +21% CONSOLIDATED 18,585 2,781 +12% 21,366 +20% 1,975 +15% (50%) +15% +32% 552 4,949 (18%) 2,974 +19% (6%) 1,853 (11%) 1,301 +33% +10% 7,363 -4% 1,5
Slide 5: Margin Performance
MARGIN PERFORMANCE In Php Million 1H 2018 1H 2017 FY 2017 FY 2016 Gross Profit Margin 28% 24% 24% 22% Construction 16% 16% 16% 15% Airport Operations 86% 82% 82% 81% Airport Merchandising 74% 78% 72% - EBITDA Margin 27% 23% 22% 20% Construction 18% 17% 15% 15% Airport Operations 75% 70% 71% 70% Airp
Slide 6: Financial Position
FINANCIAL POSITION % In Php M 30-June-18 31-Dec-17 Movement Change Cash & Financial Assets 6,513 8,140 (1,628) (20%) Other Current Assets 12,999 10,559 2,441 45% Total Current Assets 19,512 18,699 813 4% Concession Assets 27,864 25,608 2,256 9% Total Non Current Assets 38,955 35,719 3,236 9% Total A
Slide 7: Liquidity and Gearing Ratios
LIQUIDITY AND GEARING RATIOS 2014 2015 2016 2017 1H2018 PROFITABILITY RATIOS 0.70 0.74* 0.57 0.41 0.35 22% 24% 28% 17% 21% 9% 10% 11% 12% 14% 7% 9% 12% 13% 14%* Gross Profit Margin Net Profit Margin Return on Equity Earnings per Share LIQUIDITY RATIOS SOLVENCY RATIOS 1.99 6.36 1.78 1.83 1.78 1.56 4.
Slide 8: Construction Business Segment
CONSTRUCTION BUSINESS SEGMENT 8
Slide 9: Solid Construction Revenues
1 SOLID CONSTRUCTION REVENUES Construction Revenues (in M Php) +11% Quarterly Revenues (in Bn Php) Q1 Q2 Q3 Q4 Revenue +6% 18,585 19,000 16,713 5.5 32.0%GP Margin 15,786 -24% Net Income Margin 13,958 +31% +24% 14,000 4.2 +11% 4.1 4.3 -12% -12% 27.0% 4.1 10,880 3.7 3.7 3.6 9,842 3.4 22.0% 3.2 -11% 7,
Slide 10: Stable & Diverse Construction Order Book
1 STABLE & DIVERSE CONSTRUCTION ORDER BOOK ORDER BOOK ORDER BOOK MIX 1H18 (in Php Bn) Office & Comm'l 39.06 38.49 39.90 28% 32.60 22.63 Infra 18.80 20.30 14% Residential 58% 2012 2013 2014 2015 2016 2017 1H18 ORDER BOOK MIX 2017 Office & NEW CONTRACTS (in Php Bn) Comm'l 37.73 21% Infra 6% 17.60 14.1
Slide 11: Airport Business Segment
AIRPORT BUSINESS SEGMENT 11
Slide 12: Robust Traffic Growth
2 ROBUST TRAFFIC GROWTH 193.0 Air Traffic 174.0 Passenger Traffic 30.4 (in ‘000) 39.4 (In Million) Domestic Int'l 152.2 26.2 10.2 36.1 Domestic Int'l 125.2 130.6 32.0 21.7 9.0 119.4 112.1 116.3 105.3 27.8 28.0 17.5 7.5 86.6 25.0 26.5 27.7 15.3 16.3 24.5 14.0 6.0 72.6 12.7 5.7 65.0 21.3 153.6 11.3 5.
Slide 13: Diverse Recurring Revenue Streams
2 DIVERSE RECURRING REVENUE STREAMS AIRPORT REVENUE +23% 2,298 QUARTERLY REVENUE (In Php M) 295 (in Php M) 2016 20172018 +26% +27% AERO +13% +15% 1,872 +32% 646 +26% 676 +17% +17% NON-AER0 232 +38% 570 586 568 575 PSC 1,484 723 +36% 483 493 465 168 532 1,322* 431 +57% 156 339 423 1,280 +16% 1,108 +1
Slide 14: Expanding Commercial Revenues
2 EXPANDING COMMERCIAL REVENUES Since handover, T1 leasable space has increased by 38.5% to 2,800sqm and is expected to further increase by 3,000 sqm upon completion of T2. 1H 2018 Revenue Mix Growth in Sales per Passenger AERO RELATED 12% PSC NON-AERO $8 56% 32% 2017 $6 $4 2016 $2 2015 2014 14
Slide 15: Healthy Financial Performance
2 HEALTHY FINANCIAL PERFORMANCE Quarterly EBITDA 2016 2017 2018 AIRPORT EBITDA (In Php M) (in Php M) +24% +21% 71% 481 +28% 509 +18% 433 +25% +26% +36% 420 Margin 70% 389 399 1,641 368 1,302 75% 329 320 65% 285 971 990*641 45% 90 2014 2015 2016 2017 1H2018 Q1 Q2 Q3 Q4 AIRPORT NET INCOME Quarterly In
Slide 16: Growing Passenger Mix
2 GROWING PASSENGER MIX Passenger Mix International International 31% 33% 2017 1H 2018 Domestic Domestic 69% 67% Breakdown of International Tourists 2017 % of Cebu Int’l Arrivals to Total PH Int’l Arrivals 8.1 Others11% Taiwan 2% Korea 41% 6.7 EU, 4% Australia 3% 5.4 China 10% USA 9% 1.6 2.2 1.0 201
Slide 17: Expanding Capacity for Growth Opportunities
2 EXPANDING CAPACITY FOR GROWTH OPPORTUNITIES TOTAL TERMINAL AREA (in sqm) TOTAL PROJECT COST Capacity Augmentation 124,826 P34.0Bn T2 104,856 19,970 T1 100,798 P6.6Bn Capacity Augmentation 62,315 62,315 62,315 38,483 42,541 42,541 P11.0Bn 38,483 38,483 Terminal 2 2014-2017 E2018 E2019-2023 E2024 RE
Slide 18: Increasing Routes and Flight Frequency
2 INCREASING ROUTES AND FLIGHT FREQUENCY Details of new routes/frequency in 2018 Airline Destination Start Date Aircraft/Frequency INTERNATIONAL China Eastern Guangzhou Jan 20 A320/2 Pan Pacific Busan Feb 15 A320/2 Air Asia Shenzen May 09 A320/3 Air Asia Hangzhou May 18 A320/2 PAL Chengdu May 1 A320
Slide 19: Integrated Transport Exchange Business Segment
INTEGRATED TRANSPORT EXCHANGE BUSINESS SEGMENT 19
Slide 20: Progressive Property Transport Developer
3 PROGRESSIVE PROPERTY TRANSPORT DEVELOPER Paranaque Integrated Transport Exchange (PITx) Lease Revenues EBITDA EBITDA Margin 1,189.38 In M Php 1,136.67 63% 65% 773.10 717.21 716.10 61% 437.50 E2019 E2020 E2021 * Megawide has effected a buyout of WM Property Management Inc.’s (WMPMI) as of 9 Aug 201
Slide 21: Business Updates
Mea ll BUSINESS UPDATES
Slide 22: Clark International Airport (Hybrid PPP)
CLARK INTERNATIONAL AIRPORT (Hybrid PPP) Engineering Procurement & Construction Operations and Maintenance (O&M) Construction of new building terminal to O&M of the existing and the proposed new passenger accommodate 8 mppa terminal, excluding airside facilities and air traffic control Contrac
Slide 23: MCIA Expansion Project (Unsolicited Proposal)
MCIA Expansion Project (Unsolicited Proposal) Three Main Phases: Phase 1: Takeover airside facility and subsequently undertake the following: a. rehabilitation of the existing runway and taxiways b. construction of an additional full length parallel taxiway c. development of additional rapid exit
Slide 24: NAIA Rehabilitation Project (Unsolicited Proposal)
NAIA Rehabilitation Project (Unsolicited Proposal) Megawide-GMR Proposal Infrastructure Plan Project Cost P150Bn 1. Improve airside capacity Concession Period 18 Years and implement terminal improvements Technical Partner Mitre Corporation 2. Introduction of key 3rd Runway Not viable performance mea
Slide 25: PNR East West Rail Project (Unsolicited Proposal)
PNR EAST WEST RAIL PROJECT (Unsolicited Proposal) In October 2015, the Consortium of East West Rail Stations Type Connecting Network Corporation (EWRC) and Alloy MTD (Alloy) made an Lerma Elevated LRT-1, LRT-2 unsolicited proposal for undertaking the East West UST Elevated Transit Rail Project, wh
Slide 26: Q&A
Q&A 26
Slide 27: Company Information
Company Name Office Address Telephone Numbers Website Email Address COMPANY INFORMATION Megawide Construction Corporation 20 N. Domingo St., Brgy. Valencia, Quezon City (02) 655-1111 www.megawide.com.ph ¢fb.com/MegawideConstructionCorporationOfficial etwitter.com/megawidebuilds investorrelations@meg
Slide 28: J0IMVDSAW I
J0IMVDSAW I
Megawide Construction — H1 2018 Earnings Presentation on 6ix