Megawide Construction Corporation · PSE:MWIDE
Megawide Construction — Q3 2016 Earnings Presentation
40 slides from Megawide Construction's earnings presentation, 2016
Slide 1: Investor Relations Company Presentation
INVESTOR RELATIONS Company Presentation As of Q3 2016
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: Company milestones timeline
* Awarded the Mactan tial Publi Ofeting Cebu International Airport project (GMR Megawide Cebu Airport * Constructed the Precast Plant in DepED Corporation) Taytay : *Obtained Iso * First high-rise * Kicked-off the five- 9001:2008 and residential project year diversification ” 180 14001:2004 * Regist
Slide 4: Company Background
COMPANY BACKGROUND hil MEGAWIDE e e fil MEGAWIDE a ‘ ANY CITICORESS aa POWER N fost MWM TERMINALS Che i *Expected to be folded in Q1 2018 | Le i] be Engineering, Procurement Airport Progressive Renewable Energy & Construction Property Development hl MEGAWIDE ENGINEERING EXCELLENCE
Slide 5: Company Background
COMPANY BACKGROUND Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development. The Largest Building Construction Company in the Country Largest Private Airport Operator in the Philippines Progressive Property Developer in th
Slide 6: Philippines – A Snap Shot
PHILIPPINES – A SNAP SHOT PHILIPPINES – A SNAP SHOT Land Size: 300,000 sq km Median Age: 24 years old Unemployment: 6.2% 5
Slide 7: Financial Position – Balance Sheet Q3 2016
FINANCIAL POSITION – BALANCE SHEET Q3 2016 As of Sept 30, 2016 As of Dec 31, 2015 Increase (decrease) Consolidated Parent Consolidated Parent Consolidated Parent ASSETS Cash & Financial Assets P 10,469.58 P 8,290.97 P 9,262.98 P 9,067.63 13% 9% Trade Receivables 4,598.95 4,825.86 7,805.46 7,963.46 (
Slide 8: Financial Position – Income Statement Q3 2016
FINANCIAL POSITION – INCOME STATEMENT Q3 2016 Sept 30, 2016 % Sept 30, 2015 % Movement % REVENUES Contract Revenues P 12,347.29 P 9,686.00 P 2,661.30 27% Airport Operations Revenues 1,379.37 1,102.98 276.39 25% 13,726.67 100% 10,788.98 100% 2,937.69 27% DIRECT COSTS Contract cost 10,463.59 8,088.29
Slide 9: Results of Operations – Income
RESULTS OF OPERATIONS – INCOME RESULTS OF OPERATIONS – Q3 2016 Actual Actual % Q3 Q3 % 2015 2014 Change 2016 2015 Change Consolidated Revenues Construction 13,958 9,842 42% 12,347 9,686 27% Airport 1,484 200 642% 1,379 1,103 25% Total 15,442 10,042 54% 13,727 10,789 27% Consolidated EBITDA Construct
Slide 10: Results of Operations – Key Metrics Q3 2016
RESULTS OF OPERATIONS – KEY METRICS Q3 2016 9
Slide 11: Results of Operations – Key Metrics Q3 2016
RESULTS OF OPERATIONS – KEY METRICS Q3 2016 10
Slide 12: Results of Operations – Key Metrics Q3 2016
RESULTS OF OPERATIONS – KEY METRICS Q3 2016 As of As of As of Sept 30, 2016 June 30, 2016 Dec 31, 2015 Consolidated Consolidated Consolidated Gross Profit Margin Construction Segment 15% 17% 15% Airport Segment 81% 81% 77% Consolidated 22% 23% 21% EBITDA Margin Construction Segment 15% 17% 15% Airpo
Slide 13: Construction Operations
1 CONSTRUCTION OPERATIONS The Megawide Engineering Excellence • Most advanced pre-cast construction facility in Asia • Largest fully computerized and automated Batching Plants in the Philippines • Innovative formworks system from Germany • Young and modern fleet of equipment Taytay, Rizal September
Slide 14: The Leading Construction Company Business in the Country
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY Megawide is a Triple-AAA PCAB Licensed general contractor primarily engaged in civil, structural and architectural works, MEPF, and other specialty engineering services. Megawide has constructed over 6.5 million square meters of gross fl
Slide 15: PPP Projects won during the Aquino Administration
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY PPP Projects won during the Aquino Administration Mactan-Cebu Southwest Integrated Transport PPP for School Infrastructure International Airport System Project 1, 2 GMR-Megawide Cebu Developer MWM Terminals Phase 1 Citicore-Megawide Develope
Slide 16: Preferred contractor of leading property developers
1 THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY Megawide is the preferred contractor of leading property developers with its consistent track record and engineering excellence. Notes: Y2015 Expiration of ITH 15
Slide 17: Construction Operations
1 CONSTRUCTION OPERATIONS • 78% accomplishment of 2016 guidance, albeit slower quarter revenue velocity. • E2016 expected to end +13% vs LY. • Continued diversification of order book mix of residential and low cost housing, office and commercial, and infrastructure projects. 16
Slide 18: Construction Operations
1 CONSTRUCTION OPERATIONS • Construction Net Income slightly down by -5% vs Q3 2015 but expected to end 2016 +3.5% vs 2015. • Q3 2016 Net Income of P854mn represents 85% accomplishment of 2016 guidance due to strong Q1 and Q2 results. • Construction GP Margins continue to remain sustainable and stea
Slide 19: Construction Operations – Order Book
1 CONSTRUCTION OPERATIONS • Megawide’s order book stands strong at P39.47 Bn as of end Sept 2016, providing revenue visibility for the next 2 to 3 years. • New contracts as of 3Q 2016 at P12.73Bn, expanded sideways in anticipation of two scheduled PPP biddings. • New contracts include Double Dragon’
Slide 20: Construction Operations – New Projects
1 CONSTRUCTION OPERATIONS NEW PROJECTS Project Double Dragon Corporate Office West Project Urban Deca Ortigas GFA 26,655 SQ.M GFA 800,256 SQM Project Urban Deca Tower Cubao GFA 131,974 SQM Project Double Dragon Corporate Office North GFA 22,309 SQ.M 19
Slide 21: Construction Operations – New Projects
1 CONSTRUCTION OPERATIONS NEW PROJECTS Project Southeast Asian Campus Project One Manchester GFA 84,400 SQ.M GFA 40,000 SQ.M Project St. Moritz Private Estate Project 10 West GFA 35,841 SQ.M GFA 42,537.06 SQ.M 20
Slide 22: Largest Private Airport Operator in the Philippines
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES On April 22, 2014 the company and its JV Partner GMR won the Concession for brownfield development of Mactan- Cebu International Airport under Build-Operate-Transfer Modality. Concession Period is 25-years. Mactan-Cebu International Airport i
Slide 23: Airport Connectivity: New Flights
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Connectivity: New flights as of JUNE 2016 Los Angeles, USA , Osaka & Nagoya, Japan Taipei, Taiwan Taipei, Taiwan & Narita, Japan Dubai, UAE Busan, South Korea 22
Slide 24: Airport Passenger Traffic
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Mactan-Cebu Airport handled passenger traffic of 7.97 million in 2015 Since Y2003, traffic has grown at Compounded Annual Growth (CAGR) of 10.12%. The pace of traffic growth over the next 5 years is expected to continue at 10.34% CAGR. Breakd
Slide 25: Growth in Sales per Person
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Since handover, the leasable space has increased by 38.5% and is expected to further increase upon completion of Terminal 2. Expanding Retail Stores Exciting Food & Beverage Outlets Growth in Sales per Person 25x 2x 2014 2015 Suvarnabhumi Airport
Slide 26: Airport Awards
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES AWARDS 2014 •Guide to Sleeping in Airports 18th Best Airport in Asia •Partnerships Awards International •Shortlist for Best Transit Project 2015 •Euromoney-IJGlobal Asia Pacific PPP Deal of the Year •The Asset Triple A Infrastructure Awards Best
Slide 27: Airport Revenues
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES • Q3 Airport Revenues +25% vs Q3 2015, driven by growth in Aero, Non-aero revenues and passenger growth, is 79% of E2016 target of +17% vs LY. • Non-Aero revenues from commercial and rental revenues increased +57% due to new concessionaire contra
Slide 28: Airport EBITDA and Net Income
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES • Airport EBITDA increased +35% vs Q3 2015, with EBITDA Margin at 71%. • Net Income for Airport jumped 94% vs same period LY, and is 78% accomplishment vs E2016 guidance. • Airport Net Income Margin registered at 55% for Q3 2016 vs 35% in Q3 2015
Slide 29: Air Traffic and Passenger Volume
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES Air Traffic Volume 3Q 2015 3Q 2016 % Increase Domestic 39,009 42,143 8% Int’l 10,349 12,005 16% Total 49,358 54,148 10% • International Flights continue to grow faster than Domestic with new flight connections from Cebu to DXB, LAX, Taipei Passen
Slide 30: Airport Business Updates
2 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES BUSINESS UPDATES • Thai Smile, Vanilla Air and T’way are new airlines coming into Philippines • New Routes Confirmed Route Frequency Start date • Air Busan plans to increase frequency to Pusan starting in the Winter schedule -- 7x Thai Smile Bang
Slide 31: Southwest Integrated Transport System
3 PROGRESSIVE PROPERTY TRANSPORT DEVELOPER SOUTHWEST INTEGRATED TRANSPORT SYSTEM The Southwest Integrated Transport Terminal is projected to deliver a recurring income base from terminal operations, leasable retail, office, and commercial space upon project completion in end 2018.
Slide 32: Fast Growing Pure Renewable Energy Power Generator
4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 100% 100% 100% 100% 100% 96.11% Silay Solar Next Generation First Toledo Himamaylan Upper Maslog Rio Norte Hydro Power Solar Energy Biomass Power, Hydro Power, Corporation Inc. (Negros Corporation (Negros Occ) (Bataan) (Cebu) Occidental) (Isabela)
Slide 33: Renewable Energy Asset Types and Targets
4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR The Company currently has 3 types of power assets: 1. Operating projects - total installed capacity of 103MW Solar Power; awaiting FIT 2. Projects under advanced development - total of 110MW of mix Solar (60) Hydro Power (40) and Biomass (12) to
Slide 34: Financial Highlights – Guidance Y2016
FINANCIAL HIGHLIGHTS – Guidance Y2016 33
Slide 35: Historical Core EPS and Dividend Payout History
HISTORICAL CORE EARNINGS PER SHARE (EPS) 0.48 0.48 0.54 0.36 0.35 0.41 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 E 2016 NOTE: Core EPS for FY2013 excludes a one-time trading gain of P306Mn. Dividend Payout History Record Date Type Amount Date of Payment October 14, 2011 Common Shares P257,100,001.00 N
Slide 36: Business Catalysts
BUSINESS CATALYSTS The continued stability of the Philippines, coupled with the new Duterte Administration will further give Megawide a foundation for future growth. Increase In $30Bn OFW BPO Sector’s DENR’s thrust: Government Remittance and VP continued growth green Infrastructure Robredo’s Focus o
Slide 37: Business Updates | PPP Projects for Bidding
BUSINESS UPDATES | PPP Projects for Bidding 5 REGIONAL AIRPORTS PRISON FACILITIES Cost P110.42Bn Cost Php 50.18 B Mode Operate-Add-Transfer Concession Build- Transfer-and-Maintain (including Runway) (BTM) Concession Period 30 years Cooperation Period 20 Years BACOLOD P20.26Bn ILOILO P30.40Bn DAV
Slide 38: Summary
SUMMARY Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development with four core business segments: The Largest Building Construction Company in the Country - preferred contractor of blue chip companies Largest Private Airp
Slide 39: Company Information
38 COMPANY INFORMATION Company Name Office Address Telephone Numbers Website Email Address 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@
Slide 40: Megawide
na MEGAWIDE
Megawide Construction — Q3 2016 Earnings Presentation on 6ix