FIN FINANCIAL ANCIAL AND AND OPERA OPERATING TING HIGH - - PowerPoint PPT Presentation

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FIN FINANCIAL ANCIAL AND AND OPERA OPERATING TING HIGH HIGHLIGHTS LIGHTS

Nine Months Ended September 30, 2019

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 discussions arising therefrom, may contain statements relating to future expectations and/or projections of the Company by its management team, with respect to the Company and its portfolio companies. These statements are generally identified by forward-looking words such as “believe”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, or other similar words. These statements are: (i) presented on the basis of current assumptions which the company’s management team believes to be reasonable and presumed correct based on available data at the time these were made, (ii) based on assumptions regarding the Company’s present and future business strategies, and the environment in which it will operate in the future, (iii) a reflection of our current views with respect to future events and not a guarantee of future performance, and (iv) subject to certain factors which may cause some

• r all of the assumptions not to occur or cause actual results to diverge significantly from those projected.

Any and all forward looking statements made by the Company or any persons acting on its behalf are deemed qualified in their entirety by these cautionary statements. This presentation is solely for informational purposes and should in no way be construed as a solicitation or an offer to buy or sell securities or related financial instruments of the Company and/or any of its subsidiaries and/or affiliates.

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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 commencement Direct Costs 10,393 9,128

14%

Construction 9,052 8,618

5%

Industry supply / capacity constraints Airport Operations 1,130 459

146%

T2-related costs Airport Merchandising 62 51

21%

Landport Operations 150

• 100%

Gross Profit 3,301 3,618

• 9%

Other Operating Expenses 1,060 935

13%

T2 and PITX related expenses Operating Profit 2,241 2,683

• 16%

Net Other Income (Charges)

• 1,039
• 588

77%

Additional loan drawdowns* Profit before tax 1,202 2,095

• 43%

Tax Expense 367 375

• 2%

Income before Non Controlling Interest 835 1,720

• 51%

Non-Controlling Interest

185 399

• 53%

NIAT Attributable to MWIDE Equity Holders

650 1,321

• 51%

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*Majority pertains to drawdowns made by Airport, Landport and Clark EPC.

FINANCIAL HIGHLIGHTS

• 4

4,450 4,361 3,936 3,246 3,572 4,611 5,510 1,083 1,287 1,111 888 1,139 1,230 1,168

• 200

400 600 800 1,000 1,200 1,400 1,000 2,000 3,000 4,000 5,000 6,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

QUARTERLY PERFORMANCE (PHPm)

Revenue EBITDA

• Rebound performance on track

FINANCIAL HIGHLIGHTS

• 52%

45% 8%

• 5%

NET INCOME

48% 49% 3%

EBITDA

77% 20% 2%1%

REVENUE

Merchandising Airport Construction

9M2019 BREAKDOWN PERFORMANCE

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*Includes 207M revenue from Landport operation

741 431 907 379 72 67 9M 2018 9M 2019

NET INCOME (PhP M)

10,352 10,526 2,180 2,714 215 248 9M 2018 9M 2019

REVENUE (PhP M)

1,815 1,696 1,575 1,723 90 100 9M 2018 9M 2019

EBITDA (PhP M)

13,694* 3,481 835*** 12,746 3,537** 1,720

***includes 43M net loss from Landport operation

Landport

*Includes 17M ebitda from Landport operation

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% 29% 23% 20% Construction 16% 18% Lower margin, L-T projects 19% 16% 15% Airport Operations* 64% 72% T2 related costs 70% 71% 70% Airport Merchandising 40% 42% 43% 43%

• Net Income Margin

6% 13% 12% 12% 11% Construction 4% 7% Finance costs on loan drawdowns 7% 7% 6% Airport Operations** 14% 42% Finance costs and D&A for T2 31% 49% 48% Airport Merchandising 27% 34% 34% 29%

• 6

*Computed as operating income + depreciation and amortization expense ** Due to the impact of depreciation and amortization and financing charges of Airport

• perations

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 Assets 74,737 65,906 8,831 13% Current Liabilities 21,695 16,565 5,130 31% Non Current Liabilities 34,608 31,336 3,271 10% Total Liabilities 56,303 47,902 8,401 18% Equity 18,434 18,004 430 2% 7

LIQUIDITY AND GEARING RATIOS

* Gross D-E covenant 2.33X under Parent level ** Under project finance *** Net debt: 9M19 - P37bn

8 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 2.35 0.92 2.76 2.04 Net D-E Ratio*** 0.89 2.53 2.01 0.63 2.54 1.72

Engineering, Procurement, and Construction (EPC)

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RECOVERY ON TRACK

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10

1

• Building forward momentum

5,026 2,337 2,989 2,337 2,568 3,616 4,342 576 756 484 319 524 652 520

• 100

200 300 400 500 600 700 800

• 1,000

2,000 3,000 4,000 5,000 6,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

QUARTERLY PERFROMANCE (PhP M)

Revenue EBITDA

18.8 20.3 22.6 39.1 38.5 32.6 50.1 52.2

2012 2013 2014 2015 2016 2017 2018 9M19

ORDER BOOK (PhP B)

23 27 38 50 37 41 43 30

HEALTHY NEW CONTRACTS AND ORDER BOOK

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14.1 12.4 17.6 37.7 12.7 10.8 29.5 14.6

2012 2013 2014 2015 2016 2017 2018 9M19 NEW CONTRACTS (PhP B)

Order backlog > 2-3 years

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Office, Commercial and Industrial, 37% Infra, 5% Residential, 58%

9M 2019 ORDER BOOK (SEGMENT)

Visayas 23% Other Luzon 10% Metro Manila 64%

9M 2019 ORDER BOOK (AREA)

Airport Business Segment

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TRANSPORT INFRASTRUCTURE

431 465 483 493 570 586 568 575 646 676 857 816 899 897 918

285 329 368 321 389 420 430 402 481 510 585 534 590 543 590 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

• 100

75%

2

ROBUST EARNINGS STREAM

* Excludes airport merchandising revenues 9M19 of PhP 248M ** Computed as Operating income + depreciation and amortization expense

EBITDA**

(In PhP M)

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13 REVENUES *

(In PhP M)

25%

YoY Growth Increase in revenue

• Constant value creation

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PASSENGER SERVICE CHARGE (PSC)

1st Step up: effected June 2015 Domestic: from P200-P300 International: from P550-P750 2nd Step up: effected July 2018 Domestic: maintained at P300 International: from P750-P850 Inflation adjustment: Nov 2019 Domestic: +10% International: +10% PASSENGER VOLUME (millions) 9M19 9M18 % Increase Domestic 6.30 5.70 10% International 3.19 2.94 9% Total 9.48 8.64 10%

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

PASSENGER TRAFFIC

Dom Intl

PSC: PASSENGER GROWTH SUSTAINED

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27 Domestic Destinations 23 International Destinations

55% 9M19 BREAKDOWN

P1.49M 23%

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2 NON-AERO: EXPANDING SPACE AND OFFERINGS

NON-AERO Rental revenues from concession tenants such as F&B and Retail. Also includes advertising, car parking and other rental revenues

3,200 3,500 2,000 4,200 4,200 3,800 3,800 3,800

1,800 400 2016 2017 2018 2019E 2020F RETAIL GLA (in sqms)

T1 Ph 2 Airport village T2 T1 Ph1

T1 RENOVATION (PHASE 1)

33% 9M19 BREAKDOWN

P900M 29% NEW SHOPS AT TERMINAL 2

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AIRPORT VILLAGE

16 AIR TRAFFIC VOLUME (thousands) 9M19 9M18 % Increase Domestic 57,876 55,286 5% International 20,850 19,204 9% Total 78,726 74,490 6%

AERO: NEW FLIGHTS, INCREASED FREQUENCIES

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• 5,000

10,000 15,000 20,000 25,000 30,000

AIR TRAFFIC

Dom Intl

AERO RELATED Aircraft service charges – fees from airlines for the payment for aero bridges, ground handling, fuel, etc.

13% 9M19 BREAKDOWN

P325M 19%

16 55 120 139 181 203 204 15 33 45 59 69 80 2014 2015 2016 2017 2018 9M19

• AVE. DAILY FLIGHTS

Domestic International

Integrated Transport Exchange Business Segment

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TRANSPORT INFRASTRUCTURE

BUILDING CRITICAL MASS

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3

*includes arrivals and departures

36,407 39,287 36,612 40,578 59,715 55,811 49,630 45,081 48,167 51,940

3.8 25.4

2 7 12 17 22

AVERAGE PASSENGER FOOT TRAFFIC vs SPP (PHP)

3,430 4,020 5,365 4,849 5,193

AVERAGE DAILY TRIPS*

Tower 3 Lease commenced: Oct 2019 Tower 4 Lease commenced: Oct 2019

Tower 1 Lease commencement: 4Q19 Tower 2 Lease commencement: 4Q19

3 INITIAL REVENUE CONTRIBUTION

OFFICE (72K sqms)

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RETAIL (12K sqms)

• 70% leased out (Sept 2019)

➢ 79% F&B ➢ 11% Retail ➢ 10% Services

• 75% operational (end-2019)

OPERATIONAL

20 Office Towers 83% Retail Podium 17%

LEASING REVENUE BREAKDOWN

445 1,011 1,062 255 607 658 57% 60% 62% E2019 E2020 E2021

ESTIMATED EARNINGS

Lease revenue (PhP M) EBITDA (PhP M) EBITDA Margin

3 STABLE SOURCE AND RETURNS

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