INVESTOR RELATIONS Company Presentation As of 1H 2016 DISCLAIMER - - PowerPoint PPT Presentation

INVESTOR RELATIONS Company Presentation

As of 1H 2016

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 o 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 or 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.

DISCLAIMER

2

Power* Property Construction

COMPANY BACKGROUND

Airport 4

*Expected to be folded in Q3 of 2016

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 the Country Fast growing Pure Renewable Energy Power Generator in the Philippines

COMPANY BACKGROUND

5

ENGINEERING EXCELLENCE

As of June 30, 2016 As of Dec 31, 2015 Increase (decrease)

Consolidated Parent Consolidated Parent Consolidated Parent ASSETS Cash & Financial Assets Trade Receivables Construction Materials Cost in Excess of Billings Other Current Assets Total Current Assets Concession Assets Property, Plant &Equipment Investments in Subs and JVs Other Non Current Assets Total Non Current Assets TOTAL ASSETS P 10,932.74 7,474.03 475.73 2,814.27 1,897.67 23,594.44 17,795.88 4,945.10 872.91 2,780.06 26,393.94 P 49,988.39 P 9,246.10 7,606.15 475.73 2,814.27 1,768.40 21,910.65

• 4,918.98

4,054.06 268.76 9,241.80 P 31,152.45 P 9,262.98 7,805.46 292.79 3,553.70 1,580.54 22,495.46 16,369.90 4,948.12 818.79 3,882.56 26,019.38 P 48,514.83 P 9,067.63 7,963.46 292.79 3,553.70 1,463.95 22,341.53

• 4,928.22

4,023.45 245.01 9,196.68 P 31,538.21 18% (4%) 62% (21%) 20% 5% 9% 0% 7% (28%) 1% 3% 2% (4%) 62% (21%) 21% (2%) 0% 0% 1% 10% 0% (1%) LIABILITIES Current Loans Trade Payables Advances from customers Billings in Excess of Costs Other Current Liabilities Total Current Liabilities Non Current Loans Other Non Current Liabilities Total Non Current Liabilities TOTAL LIABILITIES P 2,949.46 6,549.29 1,302.42 819.32 84.13 11,704.62 20,310.08 332.39 20,642.47 32,347.09 P 2,949.46 6,236.88 1,302.42 819.32 54.86 11,362.94 4,982.50 75.70 5,058.19 16,421.13 P 3,591.60 6,664.24 1,692.22 590.42 108.75 12,647.22 18,950.80 312.61 19,263.41 31,910.63 P 3,591.60 6,384.94 1,692.22 590.42 46.76 12,305.94 5,003.53 70.81 5,074.34 17,380.28 (18%) (2%) (23%) 39% (23%) (7%) 7% 6% 7% 1% (18%) (2%) (23%) 39% 17% (8%) 0% 7% 0% (6%) EQUITY 17,641.30 14,731.32 16,604.20 14,157.93 6% 4%

FINANCIAL POSITION – BALANCE SHEET

6

June 30, 2016 % June 30, 2015 % Movement %

REVENUES Contract Revenues Airport Operations Revenues DIRECT COSTS Contract cost Cost of airport operations GROSS PROFIT OTHER OPERATING EXPENSES OPERATING PROFIT OTHER INCOME (CHARGES) Finance Costs Finance income Others – net PROFIT BEFORE TAX TAX EXPENSE NET PROFIT P 9,173.29 895.98 10,069.27 7,626.75 174.44 7,801.19 2,268.08 523.82 1,744.26 (321.58) 85.74 30.57 (205.27) 1,538.99 361.39 P 1,177.60 100% 77% 23% 5% 17% 3% 1% 0% 2% 15% 4% 12% P 4,977.54 723.53 5,701.07 4,145.23 125.42 4,270.65 1,430.42 362.27 1,068.15 (263.10) 55.12 97.54 (110.44) 957.71 167.62 P 790.09 100% 75% 25% 6% 19% 5% 1% 2% 2% 17% 3% 14% P 4,195.75 172.45 4,368.20 3,481.52 49.02 3,530.54 837.66 161.55 676.11 58.48 30.62 (66.97) 94.83 581.28 193.77 P 387.51 84% 24% 77% 84% 39% 83% 59% 45% 63% 22% 56% (69%) 86% 61% 116% 49% Net Profit Attributable to: Parent Company Non-controlling Interest P 985.36 192.24 P 1,177.60 P 688.00 102.09 P 790. 09 P 297.36 90.15 P 387.51 43% 88% 49% EPS P 0.35 P 0.23

RESULTS OF OPERATIONS – INCOME STATEMENT

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Actual 2015 Actual 2014 % Change 1H 2016 1H 2015 % Change Consolidated Revenues Construction Airport Total 13,958 1,484 15,442 9,842 200 10,042 42% 642% 54% 9,173 896 10,069 4,978 723 5,701 84% 24% 77% Consolidated EBITDA Construction Airport Total 2,059 971 3,030 1,769 90 1,859 16% 979% 63% 1,548 614 2,162 1,006 422 1,428 54% 45% 51% Consolidated Net Income Construction Airport Total 973 501 1,474 838 49 887 16% 922% 66% 697 481 1,178 535 255 790 30% 89% 49%

RESULTS OF OPERATIONS – 1H 2016

8

Const 91% Airport 9%

Revenue

Const 72% Airport 28%

EBITDA

Const 59% Airport 41%

Net Income

RESULTS OF OPERATIONS – INCOME STATEMENT

9

Gross Profit Margin Net Profit Margin Return on Equity Earnings per Share 23% 12% 7% 0.35 25% 14% 5% 0.23

June 2016 June 2015

Profitability Ratios

RESULTS OF OPERATIONS – KEY METRICS 1H 2016

Current Ratio Quick Ratio 2.02 1.57 2.36 1.80

June 2016 June 2015

Debt-to-Equity Ratio Interest Coverage Ratio 0.70 5.52 0.71 4.67

June 2016 June 2015

Liquidity Ratios Solvency Ratios

Net Debt-to-Equity Ratio

As of 1H 2016 As of Dec 31, 2015

Consolidated Parent Consolidated Parent Gross Profit Margin Construction Segment Airport Segment Consolidated 17% 81% 23% 17% 15% 77% 21% 15% EBITDA Margin Construction Segment Airport Segment Consolidated 17% 69% 21% 17% 15% 65% 20% 15% Net Profit Margin Construction Segment Airport Segment Consolidated 8% 54% 12% 8% 7% 34% 10% 7%

10

RESULTS OF OPERATIONS – KEY METRICS 1H 2016

 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

The Megawide Engineering Excellence

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1 CONSTRUCTION OPERATIONS

1

Taytay Precast Facility Profile

Location

Taytay, Rizal

Operation Since September 2012 Land Area

200,000 sq meters

Production Area

15,000 sq meters

Max Production Capacity

66,000 cubic meters / year

 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 floor area for most

• f the top companies and developers in the country.

THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY

1 12

PPP for School Infrastructure Project 1, 2

Phase 1 Developer

Citicore-Megawide Consortium, Inc.

Location

Region III and IVA

Agreement Build-Lease-Transfer Duration 10 Years Phase 2 Developer

Megawide Construction Corporation

Location Regions I, II, III, CAR Agreement Build-Transfer Contract Cost

Php 15.06 B (combined)

Southwest Integrated Transport System

Developer

MWM Terminals

Location

Cavite Expressway, Paranaque City

Agreement Build-Transfer-Operate Duration 35 Years Project Cost

Php 3.5 B

Mactan-Cebu International Airport

Developer

GMR-Megawide Cebu Airport Corporation

Location

Airport Road, Lapu-Lapu City

Agreement Build-Operate- Transfer Duration 25 Years Project Cost Php 34 B

Upward integration from construction revenue as project proponent to generate recurring revenues post-construction completion of operation asset.

PPP Projects won during the Aquino Administration

13

1

THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY

1

7,742.13 8,204.81 10,880.44 9,842.33 13,958.49 15,745.18 Y2011 Y2012 Y2013 Y2014 Y2015 E2016

Construction Revenues

750.21 1,012.57 1,092.36 838.15 972.99 1,007.13 Y2011 Y2012 Y2013 Y2014 Y2015 E2016

Construction Income

9.7% 12.3% 12.8% 8.52% 6.97% 6.4%

Net Income Margin

4% 13%

Notes: Y2015 Expiration of ITH

 Megawide is the preferred contractor of choice for leading property developers with its consistent track record and engineering excellence.

14

1

THE LEADING CONSTRUCTION COMPANY BUSINESS IN THE COUNTRY

1

4,977.54 9,173.29 13,958.49 15,745.18 1H 2015 1H 2016 Y2015 E2016

Construction Revenue

13% 534.60 696.73 972.99 1,007.13 1H 2015 1H 2016 Y2015 E2016

Construction Income

7.6% 4% 30% 84% 10.7% Net Income Margin

Order Book Mix 1H 2016 Office & Comm'l 35% Residential 47% Affordable Housing 10% Infra 7% Power 1%

15

CONSTRUCTION OPERATIONS

1

6.97% 6.4%

 Strong Construction Revenues due to higher percentage of completion and projects in superstructure phase.  Order book is a more balanced project mix of residential and low cost housing, office and commercial, infrastructure and power projects.

CONSTRUCTION OPERATIONS

1  Megawide continues to enjoy a strong order book and has posted the highest order booking at P42.29 Bn as of end June 2015, providing revenue visibility for the next 2 years.  New contracts likewise continue to grow, as of 1H 2016 at P12.4Bn including Double Dragon’s Meridien Plaza Ph2, 10 West, St. Moritz, Megaworld’s Southeast Asean Campus and 8990’s Tondo and Cubao Projects. 16

12.90 18.80 20.30 22.63 39.06 42.29 Y2011 Y2012 Y2013 Y2014 Y2015 Jun-16

Order Book

• 5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00 Y2011 Y2012 Y2013 Y2014 Y2015 Jun-16

5.20 14.10 12.42 17.60 37.73 12.40

New Contracts

CONSTRUCTION OPERATIONS

1 17

NEW PROJECTS

Project Double Dragon Corporate Office West GFA 26,655 SQ.M Client Double Dragon Project Double Dragon Corporate Office North GFA 22,309 SQ.M Client Double Dragon

18

Project Southeast Asian Campus GFA 84,400 SQ.M Project One Manchester GFA 40,000 SQ.M Project St. Moritz Private Estate GFA 35,841 SQ.M Project 10 West GFA 42,537.06 SQ.M

NEW PROJECTS

CONSTRUCTION OPERATIONS

1

19

Project Urban Deca Tower Cubao GFA 131,974 SQM Client 8990 Holdings, Inc. Project Urban Deca Ortigas GFA 800,256 SQM Client 8990 Holdings, Inc.

NEW PROJECTS

CONSTRUCTION OPERATIONS

1

 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 is the 2nd Largest Gateway in the Philippines (next to NAIA).  The Company took over the Operations and Maintenance of the Airport last November 1, 2014  Construction broke ground last June 30, 2015 for the construction of the new Terminal 2. Terminal 2 aims to increase passenger handling capacity from 4.5M to 12.5M per annum. Target completion is end of 2018.

LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2 20

21 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2

Connectivity: New flights as of JUNE 2016

Busan, South Korea Taipei, Taiwan Dubai, UAE Taipei, Taiwan & Narita, Japan Los Angeles, USA , Osaka & Nagoya, Japan

Mactan-Cebu International Airport now connects Cebu to 23 local airports and 12 international destinations and handles as of June 2016.

2,273 2,612 2,779 3,070 3,732 3,991 4,763 5,413 6,216 6,771 6,996 7,140 7,960 8,900 10,000 11,100 11,800 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 E2016 E2017 E2018 E2019

Passenger Traffic (in million)

Compounded Annual Growth

 Mactan-Cebu Airport handled passenger traffic of 7.97 million in 2015  Since Y2003, traffic has grown at Compounded Annual Growth (CAGR)

• f 10.12%. The pace of traffic growth over the next 5 years is expected

to continue at 10.34% CAGR.

22 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2 Passenger Volume and Comparison Growth (2014 vs. 2015)

2014 2015 Increase (in %)

Domestic 5.21 5.90 13.24%

International

1.69 2.07 22.50% Total 6.90 7.97 15.50%

Breakdown of Foreign Tourists (Year 2015)

Korea, 44% Japan, 19% USA, 10% China, 8% Australia, 4% Germany, 3% UK, 2% Canada, 2% France, 2% Taiwan, 2% Others, 5%

23 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2

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

2014 Mactan-Cebu International Airport 2015 Mactan-Cebu International Airport

Growth in Sales per Person

Suvarnabhumi Airport Bangkok, Thailand

2x 25x

24 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2

• Euromoney-IJGlobal

Asia Pacific PPP Deal of the Year

• The Asset Triple A

Infrastructure Awards

Best Transport Deal – Highly Commended

• Project Finance International

Asia Pacific Transport Deal of the Year

AWARDS

• Guide to Sleeping in Airports

18th Best Airport in Asia

• Partnerships Awards International
• Shortlist for Best Transit Project

2014 2015

199.96 1,483.89 1,735.91 Y2014 Y2015 E2016

Airport Revenues

55.53 500.83 962.77 Y2014 Y2015 E2016

Airport Income

34% 55%

17% 92%

28%

Net Income Margin

73% 27%

Revenue Mix E2016

Aero Non Aero

Mactan-Cebu International Airport under a Build-Operate-Transfer Modality provides a recurring revenue base and high net income margin for a period of 25 years. Megawide is poised to participate in the bidding for the five (5) regional airports identified as part of the country’s PPP. 25 LARGEST PRIVATE AIRPORT OPERATOR IN THE PHILIPPINES 2

723.53 895.98 1,483.89 1,735.91 1H 2015 1H 2016 Y2015 E2016

Airport Revenues

17% 24%

74% 26%

Airport Revenue Mix 1H 2016

Aero Non Aero

26 AIRPORT OPERATIONS – 1H 2016 2 Passenger Traffic Volume (in Millions) 1H 2015 1H 2016 % Increase Domestic 3.10 3.33 7% Int’l 1.00 1.18 18% Total 4.10 4.51 10% Air Traffic Volume 1H 2015 1H 2016 % Increase Domestic 26,860 28,681 7% Int’l 6,766 7,712 14% Total 33,626 36,393 8%

255.49 480.87 500.83 962.77 1H 2015 1H 2016 Y2015 E2016

Airport Income

54% 88% 92% 35% Net Income Margin 34% 55%

425.50 479.24 537.55 259.10 303.52 351.90 E2019 E2020 E2021

Lease Revenues EBITDA

61% 63% 65%

EBITDA Margin

27 PROGRESSIVE PROPERTY TRANSPORT DEVELOPER 3

SOUTHWEST INTEGRATED TRANSPORT SYSTEM

The Southwest Integrated Transport Terminal is projected to deliver a recurring income base from terminal

• perations, leasable retail, office, and commercial space upon project completion in end 2018.

FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 4

Silay Solar Power, Inc. (Negros Occidental)

100% 100% 100% 100% 100%

Next Generation Power Technology, Inc. (Bataan) First Toledo Solar Energy

• Corp. (Cebu)

Himamaylan Biomass Power,

• Inc. (Negros

Occidental) Rio Norte Hydro Corporation (Isabela)

96.11%

Upper Maslog Hydro Corporation (Eastern Samar)

28 4 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR

Power assets



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 start

construction within Y2016.

• 3. Projects under pre-development (robust pipeline of over 20 projects with an aggregate capacity of over 800MW)

1,682 4,886 8,247 21,835 28,462 1,446 3,665 6,348 19,099 25,077

• 5,000.0

10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 2017 2018 2019 2020 2021 Revenues EBITDA

83% Average EBITDA Margin

• 500

103 250

• 160
• 50
• 100

200 300 400 500 600 700 800 900 1,000 Today By 2021 Hydro Solar Biomass Wind

In the next 5 years, the Company is targeting to achieve approximately 1,000MW of RE composed of a diverse mix of sources. With this portfolio and mix, the Company is projecting to achieve over P25 billion in revenues by 2021 from a 2017 expected level of around P1,6 billion.

29 FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 4

• 2,000.00

4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 14,000.00 16,000.00 18,000.00 20,000.00 Y2013 Y2014 Y2015 E2016

Consolidated Revenues

Construction Revenues Airport Revenues Power Revenues

10,042 15,442 17,754

• 500.00

1,000.00 1,500.00 2,000.00 2,500.00 Y2013 Y2014 Y2015 E2016

Consolidated Income

Construction Income Airport Income Power Income

1,398 887 1,474 1,973 12.8% 8.8% 9.5% 11.1% Net Income Margin

34%

10,880

FINANCIAL HIGHLIGHTS – Guidance Y2016

15%

30

Historical Earnings Per Share (EPS)

0.36 0.48 0.48 0.35 0.41 0.54 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 E 2016

Megawide Core EPS

31 NOTE: Core EPS for FY2013 excludes a one-time trading gain of P306Mn.

The continued stability of the Philippines, coupled with the new Duterte Administration will further give Megawide a foundation for future growth.

BUSINESS CATALYSTS:

Increase In Government Infrastructure Spending

17 identified PPP projects, including regional airport bundles

$30Bn OFW Remittance and VP Robredo’s Focus on 1.4Mn

• ut of 4.65Mn

Housing Backlog BPO Sector’s continued growth Demand for Office Building contracts DENR’s thrust: green consciousness and sustainable sources of energy

32

 5 REGIONAL AIRPORTS

PPP Projects for Bidding

BACOLOD BOHOL DAVAO ILOILO CAGAYAN DE ORO

BUSINESS UPDATES  PRISON FACILITIES

33

Cost Php 50.18 B Concession Build- Transfer-and-Maintain (BTM) Cooperation Period 20 Years Cost Php 108.2 B Mode Operate-Add-Transfer

The Largest Building Construction Company in the Country - preferred contractor of blue chip companies Largest Private Airport Operator in the Philippines

• leading position for bidding for new airports

Progressive Property Developer in the Country

• develop mixed-use anchored on infrastructure

Fast growing Pure Renewable Energy Power Generator in the Philippines – with diverse source of mix Megawide (PSE: MWIDE) is a publicly listed diversified engineering conglomerate focused in Construction and Infrastructure Development with four core business segments:

SUMMARY

34

ENGINEERING EXCELLENCE

FAST GROWING PURE RENEWABLE ENERGY POWER GENERATOR 4