Megaworld Corp. · PSE:MEG
Megaworld — FY2023 Earnings Presentation
42 slides from Megaworld's earnings presentation, March 2024
Slide 1: Full Year 2023 Analyst Presentation
FULL YEAR 2023 ANALYST PRESENTATION
Slide 2: 2023 Snapshot
Launched Savoy Hotel Launched the Uptown 2023 SNAPSHOT Capital Town, MEG’s Modern – 6th residential first hotel in North condo in Uptown Bonifacio Received four LEED Luzon certifications for its green buildings in Uptown Bonifacio and Iloilo Business Park named Opened TAT Lab, the PH’s Launched the
Slide 3: Geographical Footprint
GEOGRAPHICAL FOOTPRINT 31 TOWNSHIPS 4,430 Hectares of Developable land (5,178 Hectares) • Quality land sufficient to support the next 15 to 20 years of development 6% 5% 2% 87% Metro Manila Luzon (ex-MM) Visayas Mindanao 3
Slide 4: The MEGreen Program
The MEGreen Program Green starts with Me. Every action we make has an impact on the environment and community we serve. This initiative consolidated various existing sustainability efforts under a unified framework, streamlining and synergizing our approach and maximizing impact. 4
Slide 5: MEGreen Program: Clean Energy and Office Energy Use
MEGREEN PROGRAM TRANSITION TO CLEAN ENERGY ENERGY USE AT THE OFFICE Properties* that shifted to Renewable Energy Source Use of Natural Light Device is Unplugged when Unused TARGET EXISTING 35% 100 Use of Energy Efficient Switch to LED lighting Laptops % 2023 2027 Lights off in Use of internal unoccu
Slide 6: MEGreen Program: Forest Management
MEGREEN PROGRAM FOREST MANAGEMENT 1,600 Target Land (Hectares) for 525 Internal Landbank (Hectares) Reforestation & Management for Forest Management ADOPT A FOREST 120 Adopted Land for Reforestation 72,000 Cacao Trees Planted on 120 hectares of Forest Managed Forest from Internal Landbank 6 6 Adopte
Slide 7: MEGreen Program: Water and Waste Management
MEGREEN PROGRAM WATER MANAGEMENT WASTE MANAGEMENT Wastewater Treatment for Non-Potable Water Usage and Irrigation 7 7
Slide 8: MEGreen Program: Social Inclusivity
MEGREEN PROGRAM SOCIAL INCLUSIVITY Medical Mission 722 Scholarship Grant 200 Eskwela ng Bayan 80 Brigada Eskwela 15,235 Hope Classroom 150 Hands in Harmony 50 TOTAL BENEFICIARIES 16,437 MEGreen Beneficiaries are limited to the 8 communities surrounding MEG Townships
Slide 9: Financial Update
ee FINANCIAL Wag= UPDATE
Slide 10: FY/4Q 2023 Profit and Loss
FY/4Q 2023 PROFIT AND LOSS In PHP YoY % QoQ % YoY % FY23 FY22 4Q23 3Q23 4Q22 Billions Change Change Change REVENUES 69.7 59.5 17% 21.1 16.6 28% 17.1 24% Record revenue levels hit COSTS & as all business segments 50.3 44.2 14% 15.2 11.9 28% 11.4 34% delivered stellar EXPENSES performances EBITDA* 30.
Slide 11: FY2023 Revenue Breakdown
FY2023 REVENUE BREAKDOWN P69.7B 17% TOTAL REVENUES P42.7B REAL ESTATE SALES 16% Successful completion of projects and the accelerated pace of construction activities OFFICE RENTALS 3% Above industry occupancy rates and sustained rental escalations MALL RENTALS 54% Improved occupancy rates, the resum
Slide 12: Strong Balance Sheet
STRONG BALANCE SHEET P102.9 BILLION GROSS DEBT P77.8B TYPE OF DEBT NET DEBT INTEREST RATE CURRENCY 30% 30% 29.8% PHP NET DEBT /EQUITY Bond Fixed 49% 51% USD Loans Floating 70% 70% P50B CAPEX SPEND 12
Slide 13: Operational Update
ie | | OPERATIONA UPDATE
Slide 14: Real Estate
REAL ESTATE P42.7B REAL ESTATE SALES ↑16% YoY P139.2B RESERVATION SALES 107% of P130B FY2023 Target P72.6B PROJECT LAUNCHES 121% of P60B FY2023 Target 14
Slide 15: Real Estate Sales
P42.9 BILLION REAL ESTATE SALES By Segment By Location By Classification 23% UPPER-MIDDLE 20% TAGUIG CITY 32% VERTICAL 25% 13.2 TO HIGH-END DEVELOPMENTS 82% SEGMENT 78% 39% METRO MANILA 2% HORIZONTAL LOW-MIDDLE EX-TAGUIG 37% TO ECONOMIC 2% DEVELOPMENTS SEGMENT LUZON 24% 21% EX-MM 2.0 18% 17% VISAYAS
Slide 16: Reservation Sales
P139.2 BILLION RESERVATION SALES Buyers’ Profile By Location By Classification LOCAL SALES METRO MANILA VERTICAL 55% 75% FOREIGN SALES PROVINCIAL 87% HORIZONTAL 45% 25% 13% 16
Slide 17: Project Launches
P72.6 BILLION PROJECT LAUNCHES By Segment By Location By Classification UPPER-MIDDLE 35% METRO MANILA 13.2 TO HIGH-END SEGMENT VERTICAL 85% 93% LOW-MIDDLE PROVINCIAL HORIZONTAL TO ECONOMIC SEGMENT 65% 15% 7% 17
Slide 18: New Launches: Positano Mactan Tower 2
NEW LAUNCHES POSITANO MACTAN Tower 2 MACTAN NEWTOWN P2.2B project value 7,158 saleable area (sqm) P307,000 average selling price per sqm 51% sold 18
Slide 19: New Launches: Paragua Sands Hotel
NEW LAUNCHES PARAGUA SANDS HOTEL PARAGUA COASTOWN P4.2B project value 9,582 saleable area (sqm) P438,000 average selling price per sqm 24% sold 19
Slide 20: New Launches: Bellara Tower 3
NEW LAUNCHES BELLARA TOWER 3 EMPIRE EAST HIGHLAND CITY P3.7B project value 26,062 saleable area (sqm) P140,000 average selling price 73% sold 20
Slide 21: New Launches: Eastland Heights Village P2D & P2E
NEW LAUNCHES EASTLAND HEIGHTS VILLAGE P2D & P2E EASTLAND HEIGHTS P2.8B project value 87,487 saleable area (sqm) P32,000 average selling price 2% sold 21
Slide 22: New Launches: Uptown Modern Tower 1
UPTOWN MODERN Tower 1 UPTOWN BONIFACIO P19.0B project value 45,110 saleable area (sqm) P421,000 average selling price per sqm 16% sold 22
Slide 23: Premier Offices
PREMIER OFFICES OFFICE RENTALS ↑3% YoY P12.6B OFFICE GLA SQM 1.5M OCCUPANCY RATE vs 92% in end-2022 88% 23
Slide 24: New Leases vs Occupancy
NEW LEASES vs OCCUPANCY 88% 81% 81% 284,173 1,037 total transactions 815 FY2023 (sqm) 133 133,400 new leases (sqm) Colliers CRBE MPO * Closed Transactions - Metro Manila ('000) Occupancy Rate - Metro Manila 88% occupancy rate Source: FY2023 Brokers report and disclosures 24 *New leases only
Slide 25: Office Portfolio
OFFICE PORTFOLIO 74% 20% BPO TRADITIONAL 3.1 YRS weighted average lease expiry 4% POGO 2% SERVICED 66% renewal rate 25
Slide 26: International Finance Center
INTERNATIONAL FINANCE CENTER UPTOWN BONIFACIO 69,000 gross leasable area (sqm) 100% construction update 100% pre-leasing commitment 26 26
Slide 27: Lifestyle Malls
LIFESTYLE MALLS P5.3B MALL RENTALS ↑54% YoY 517 MALLS ‘000 SQM GLA 93% OCCUPANCY RATE vs 90% in end-2022 2727
Slide 28: Improving Retail Performance
IMPROVING RETAIL PERFORMANCE Daily sales continue to improve; +8% YoY growth P525 AVERAGE DAILY SPEND 229,000 in 4Q23 AVERAGE DAILY FOOT TRAFFIC ( 1% vs FY2022) ( 24% vs FY2022) 100% rental collection beginning Jan 1, 2023; rental rates now back to 272 pre-pandemic level 229 171 Operational occupanc
Slide 29: 3 Stevie Awards for Megaworld Lifestyle Malls
3 Stevie Awards for Megaworld Lifestyle Malls • GOLD STEVIE – Award for Innovation in Energy & Sustainability • BRONZE STEVIE – Award for Innovation in the Use of Events • BRONZE STEVIE – Award for Innovation in Consumer Events 29
Slide 30: Sports and activity experiences at Megaworld Lifestyle Malls
Gear up for an action-packed Monza Barcade, Arcovia City sports and WiiJUMP Philippines, McKinley Hill activities in signature experiences at Megaworld Lifestyle Malls! SuperPark Philippines, Eastwood City Manila Padel Club, Arcovia City 30
Slide 31: Hotels & Resorts
HOTELS & RESORTS HOTEL REVENUES ↑46% YoY P3.8B ROOM KEYS 4,713 OCCUPANCY RATE vs 64% in 2022 (Metro Manila) 67% 31
Slide 32: Hotel Performance
HOTEL PERFORMANCE Effective pricing strategies 21% 14% 19% 17% resulted in nearly doubling the average daily rates compared to -6% pre-pandemic levels. Cost-saving initiatives have significantly improved the segment’s EBITDA margins The resumption of MICE activities during the year played FY19 FY20
Slide 33: Savoy Hotel Boracay World Luxury Hotel Award
Savoy Hotel Boracay recognized as one of the “Best Luxury Destination Hotels” in Southern Asia at the prestigious 2023 World Luxury Hotel Awards This achievement is a testament to MHR’s unwavering commitment of delivering exceptional hospitality and creating unforgettable experiences for guests. 33
Slide 34: MHR Sampaguita Seedlings Planting
MHR initiated the planting of 2,500 Sampaguita seedlings across four townships - Cavite Central Nursery, Iloilo Business Park, Boracay Newcoast, and The Mactan Newtown. A testament of Megaworld’s commitment to sustainability and preserving the Filipino heritage. 34
Slide 35: MHR Great Place To Work Certification
Megaworld Hotels and Resorts (MHR) gets Great Place To Work Certification 93% of MHR’s employees say that I feel good about the ways we contribute to the community. 35
Slide 36: 2024 and Beyond
2024 AND BEYOND 36
Slide 37: 2024 Targets
2024 TARGETS P55B P145B CAPEX BUDGET RESERVATION SALES P40B PROJECT LAUNCHES 37
Slide 38: Office Pipeline
OFFICE PIPELINE 148,000 gross leasable area (sqm) PROJECT NAME TOWNSHIP GLA YR PRE- LEASING % Enterprise One Iloilo Business Park, 39,900 2024 Iloilo City No. 01 Upper East The Upper East, 8,700 2024 5% Bacolod Enterprise Two Iloilo Business Park, 37,300 2025 Iloilo City Pasudeco Tower 1 Capital Tow
Slide 39: Malls Pipeline
MALLS PIPELINE 151,100 gross leasable area (sqm) PROJECT NAME TOWNSHIP GLA YR (sqm) Park McKinley West McKinley West, 7,000 2025 Taguig City Boracay Newcoast Boracay Newcoast, 31,500 2025 Beachwalk Aklan The Capital Mall The Capital Town, 32,200 2025 Pampanga Maple Grove Commercial Maple Grove, Cavi
Slide 40: Hotels Pipeline
HOTELS PIPELINE 3,533 room keys PROJECT NAME TOWNSHIP ROOMS YR Chancellor Hotel Boracay Newcoast, 554 2024 Boracay Aklan Grand Westside Hotel - Westside City, 685 2024 Southwing Paranaque City Grand Westside Hotel - Westside City, 845 2025 Northwing Paranaque City Belmont Hotel Iloilo Iloilo Busines
Slide 41: Key Takeaways and Outlook
KEY TAKEAWAYS OUTLOOK REAL ESTATE REAL ESTATE Surge in bookings driven by successful Continued growth of real estate revenues, driven by completion of projects and accelerated the improvement in construction activities and project completion rate bookings OFFICES OFFICES Sustained rental escalations
Slide 42: Full Year 2023 Analyst Presentation
FULL YEAR 2023 ANALYST PRESENTATION