Megawide Construction Corporation FY 2017 Analysts Briefing 12 April 2018

Transcription

1 Megawide Construction Corporation FY 2017 Analysts Briefing 12 April 2018 CONSOLIDATED INCOME STATEMENT In Php M FY 2017 FY 2016 Mov t % Remarks Total Revenues 19,159 17,658 1,501 9% Exceeded guidance at +6% Construction 16,713 17, % Exceeded guidance at +5% Airport Operations 2,298 1, % Exceeded guidance at +12% Airport Merchandising % Direct Costs 14,545 13, % Construction 14,084 13, % Airport Operations % Airport Merchandising % Gross Profit 4,614 3, % Other Operating Expenses 1,191 1, % Operating Profit 3,423 2, % Other Income (Charges) (596) (411) (185) 45% OTL on sale of retail Tbills; impairment loss Profit before tax 2,827 2, % Tax Expense % Due to increase in profit Income before Non Controlling Interest 2,248 1, % Exceeded guidance at +13% Non-Controlling Interest % NIAT Attributable to MWIDE Equity Holders 1,781 1, % 1

2 FY 2017 FINANCIAL HIGHLIGHTS REVENUE 12% 1% EBITDA 38% 1% 50% NET INCOME 2% Construction Airport Merchandising 87% 61% 48% CONSTRUCTION +6% 16, % 2,446 AIRPORT** +31% 1, % 1,158 CONSOLIDATED +9% 19, % 2,584 +7% 1, % 4, % 2,248 Revenue EBITDA Net Income *In M Php **Includes airport merchandising Revenue EBITDA Net Income Revenue EBITDA Net Income FY 2017 MARGIN PERFORMANCE In Php Million FY 2017 FY 2016 Remarks Gross Profit Margin 24% 22% Due to increase in both Cons & Airport Construction 16% 15% GP increased by 11% Airport Operations 82% 81% GP increased by 24% Airport Merchandising 72% - EBITDA Margin 22% 20% Construction 15% 15% Airport Operations 71% 70% Airport Merchandising 43% - Net Income Margin 12% 11% Construction 7% 6.44% Airport Operations 49% 48% Airport Merchandising 29% - 2

3 FINANCIAL POSITION In Php M 31-Dec Dec-16 Movement % Change Cash & Financial Assets 8,140 10,938 (2,798) (26%) Other Current Assets 10,559 10, % Total Current Assets 18,699 20,971 (2,272) (10%) Concession Assets 25,608 20,339 5,269 26% Total Non Current Assets 35,719 30,113 5,606 19% Total Assets 54,418 51,085 3,331 7% Current Liabilities 9,413 11,459 (2,046) (18%) Non Current Liabilities 26,869 23,416 3,453 15% Total Liabilities 36,282 34,875 1,407 4% Equity 18,136 16,210 1,926 12% LIQUIDITY AND GEARING RATIOS PROFITABILITY RATIOS % 21% 22% 24% 9% 10% 11% 12% 7% 9% 12% 13% Gross Profit Margin Net Profit Margin Return on Equity Earnings per Share LIQUIDITY RATIOS SOLVENCY RATIOS Current Ratio Quick Ratio Gross Debt to Equity Net Debt to Equity Ratio Net Debt to EBITDA * Interest Bearing loans: FY P25.8bn FY 2017 P28.9bn **Net debt: FY P14.8bn FY 2017 P20.8bn 3

4 CONSTRUCTION OPERATIONS Construction Revenues Revenue (in M Php) 32.0% GP Margin Net Income Margin 22.0% 12.0% +11% +6% 18,585 15,786 16,713 13,958 10,880 9,842 7,742 8, % 17.0% 16.4% 16.2% 15.0% 15.0% 16.0% 9.7% 12.3% 12.9% 8.4% 7.0% 6.4% 7.0% Quarterly Revenues ,0 (in Php M) 14,0 5,478-24% +11% 4,189 4, % +24% +40% -33% 4,107 4,146 4,272 4,270 3,695-20% 9,0 3,174 3,439 2,346 2,632 4,0 2.0% E2018-1,0 Q1 Q2 Q3 Q4 Construction Income (in M Php) 750 1,013 1, % +7% 1, ,017 1,090 Quarterly Income (in Php M) +52% % -28% 1% % % -56% +117% E2018 * 2015 Expiration of ITH Q1 Q2 Q3 Q4 4

5 CONSTRUCTION OPERATIONS ORDER BOOK (in Php Bn) ORDER BOOK MIX FY17 Office & Comm'l 21% Infra 6% NEW CONTRACTS (in Php Bn) Residential 73% ORDER BOOK MIX FY16 Office & Comm'l 28% Infra 7% Residential 65% 5

6 AIRPORT OPERATIONS Air Traffic (in 0) Domestic Int'l Passenger Traffic 30.4 Domestic Int'l (In Million) FY 2017 Air Traffic Volume % Increase Domestic 56,210 65,3 16% International 16,383 21,3 30% Total 72,593 86,6 19% FY 2017 Passenger Volume Growth % Increase Domestic % International % Total % AIRPORT OPERATIONS AIRPORT REVENUE In Php M AERO NON-AER0 PSC 1, % 1, % % +23% 2, % +36% QUARTERLY REVENUE (in Php M) % +26% +17% +17% % +24% +27% +23% , % 1, Passenger Service Charge (PSC) Aero Related Non-aero 1 st Step-Up: Effective June 2015 Domestic from P2 to P3 International from P550 to P % Aircraft service charges fees collected from airlines for the payment for aero bridges, ground handling, fuel, etc. Rental revenues from concession tenants such and Retail. Also includes advertising, car parking and other rental revenues Q1 Q2 Q3 Q4 FY 2017 Revenue Mix PSC 56% AERO RELATED 13% NON-AERO 31% 6

7 AIRPORT OPERATIONS AIRPORT EBITDA In Php M Margin 65% % 1,302 71% +26% 1,641 Quarterly EBITDA (in Php M) +23% +36% +28% % % % % +49% % Q1 Q2 Q3 Q4 AIRPORT NET INCOME In Php M Margin 25% 34% % % +24% 1,115 Quarterly Income (in Php M) +113% +44% -5% +105% +104% 294-5% % % Q1 Q2 Q3 Q4 AIRPORT OPERATIONS Passenger Mix International 28% International 31% FY 2016 FY 2017 Domestic 72% Breakdown of International Tourists 2016 Taiwan 2% Others 5% EU, 4% Australia 3% China 7% Korea 48% Domestic 69% % of Cebu Int l Arrivals to Total PH Int l Arrivals USA 10% Japan 21% EU: UK, Germany & France E 2019E Cebu Int'l arrivals (Mn) Other Ph Int'l arrivals (Mn) 7

8 AIRPORT OPERATIONS PARTNER AIRLINE CARRIERS 8 Local 17 International AIRPORT OPERATIONS Details of new routes/frequency in 2017 Airline Destination Start Date Aircraft/Frequency DOMESTIC PAL Clark March 26 A321/3 PAL General Santos March 26 A320/7 PAL Puerto Princesa March 26 A321/7 PAL Busuanga March 26 Q4/7 PAL Surigao March 26 Q4/7 PAL Butuan March 26 A320/7 Air Asia Davao April 22 A320/7 Air Asia Puerto Princesa April 22 A320/7 Cebu Pacific Busuanga May 15 ATR5/3 Cebu Pacific Cotabato May 16 ATR5/4 Air Asia Kalibo June 19 A320/7 AirJuan Tagbilaran June 19 Cessna Caravan AirJuan Bantayan June 19 Cessna Caravan AirJuan Biliran June 19 Cessna Caravan AirJuan Siquijor June 19 Cessna Caravan PAL Tagbilaran June 22 A320 Cebu Pacific Masbate July 26 ATR-5 Air Juan Maasin Aug 1 Cessna Caravan/2 Air Juan Sipalay Aug 2 Cessna Caravan/2 PAL Camiguin Dec 1 Q4/7 PAL Siargao Dec 1 Q4/7 PAL Legazpi Dec 1 Q4/7 PAL Ozamiz Dec 1 Q4/7 Details of new routes/frequency in 2017 Airline Destination Start Date Aircraft/Frequency INTERNATIONAL Xiamen Airlines Fuzhuo April 18 B738/2 PAL Chengdu Jan 16 A321/3 Sichuan Airlines Chongqing Mar 28 A321/4 Lucky Air Kunming June 1 B737-8/3 AirAsia Kuala Lumpur July 15 A320 China Eastern Shanghai Oct 18 A320/7* Juneyao Airlines Shanghai Oct 31 A321/3 Okay Airways Xi an Oct 31 B737-8/3 PAL Beijing Nov 26 A320/1 PAL Bangkok Dec 2 A320/3 Pan Pacific Muan Dec 9 A320/2 Pan Pacific Incheon Dec 10 A320/7 *Daily/effective Oct then resumes 18Jan18 onwards Details of new routes/frequency in 2018 Airline Destination Start Date Aircraft/Frequency INTERNATIONAL China Eastern Guangzhou Jan 20 A320/2 Pan Pacific Pusan Feb 15 A320/2 DOMESTIC Air Juan Ormoc Mar 15 Cessna Caravan/2 Air Juan Catbalogan Mar 19 Cessna Caravan/2 8

9 2018 GUIDANCE REVENUES EBITDA NET INCOME* (In M Php) +12% 21, % 4,949 +9% +19% +14% 19,159 17,658 4, % +66% +19% 15,442 3,611 1, % 3, % 1, % 2,248 (18%) 1,853 10,042 1, E2018 *includes minority interest E E SEGMENT GUIDANCE 0 Revenue EBITDA Net Income In M Php 9,8421, % 13,958 CONSTRUCTION 2, % 15,786 2,3 16,713 2,584 1,017 1,090 18, E2018 P24bn new contracts for 2018, including Clark EPC of P4.8bn +6% +12% +7% +11% 1,2 1,8 1,014 1,020 1,026 1,032 1,038 1,044 1,050 1,056 1,062 1,068 1,074 1,080 1,086 1,092 1,098 1,104 1,110 1,116 1,122 1,128 1,134 1,140 1,146 1,152 1,158 1,164 1,170 1,176 1,182 1,188 1,194 1,2 1,206 1,212 1,218 1,224 1,230 1,236 1,242 1,248 1,254 1,260 1,266 1,272 1,278 1,284 1,290 1,296 1,302 1,308 1,314 1,320 1,326 1,332 1,338 1,344 1,350 1,356 1,362 1,368 1,374 1,380 1,386 1,392 1,398 1,404 1,410 1,416 1,422 1,428 1,434 1,440 1,446 1,452 1,458 1,464 1,470 1,476 1,482 1,488 1,494 1,5 1,506 1,512 1,518 1,524 1,530 1,536 1,542 1,548 1,554 1,560 1,566 1,572 1,578 1,584 1,590 1,596 1,602 1,608 1,614 1,620 1,626 1,632 1,638 1,644 1,650 1,656 1,662 1,668 1,674 1,680 1,686 1,692 1,698 1,704 1,710 1,716 1,722 1,728 1,734 1,740 1,746 1,752 1,758 1,764 1,770 1,776 1,782 1,788 1,794 1,8 1,806 1,812 1,818 1,824 1,830 1,836 1,842 1,848 1,854 1,860 1,866 1,872 1,878 1,884 1,890 1,896 1,902 1,908 1,914 1,920 1,926 1,932 1,938 1,944 1,950 1,956 1,962 1,968 1,974 1,980 1,986 1,992 1,998 2,4 2,010 2,016 2,022 2,028 2,034 2,040 2,046 2,052 2,058 2,064 2,070 2,076 2,082 2,088 2,094 2,1 2,106 2,112 2,118 2,124 2,130 2,136 2,142 2,148 2,154 2,160 2,166 2,172 2,178 2,184 2,190 2,196 2,202 2,208 2,214 2,220 2,226 2,232 2,238 2,244 2,250 2,256 2,262 2,268 2,274 2,280 2,286 2,292 2,298 2,304 2,310 2,316 2,322 2,328 2,334 2,340 2,346 2,352 2,358 2,364 2,370 2,376 2,382 2,388 2,394 2,4 2,406 2,412 2,418 2,424 2,430 2,436 2,442 2,448 2,454 2,460 2,466 2,472 2,478 2,484 2,490 2,496 2,502 2,508 2,514 2,520 2,526 2,532 2,538 2,544 2,550 2,556 2,562 2,568 2,574 2,580 2,586 2,592 2,598 2,604 2,610 2,616 2,622 2,628 2,634 2,640 2,646 2,652 2,658 2,664 2,670 2,676 2,682 2,688 2,694 2,7 2,706 2,712 2,718 2,724 2,730 2,736 2,742 2,748 2,754 2,760 2,766 2,772 2,778 2,784 2,790 2,796 2,802 2,808 2,814 2,820 2,826 2,832 2,838 2,844 2,850 2,856 2,862 2,868 2,874 2,880 2,886 2,892 2,898 2,904 2,910 2,916 2,922 2,928 2,934 2,940 2,946 2,952 2,958 2,964 2,970 2,976 2,982 2,988 2,994 3,0 +15% 9,0 +19% 8,0 7, ,0 5,0 4,0 3,0 2,0 1, ,0 18,0 17,0 16,0 2,974 15,0 14,0 13,0 12,0 11,0 10,0 1, % 1, AIRPORT* +26% 1,872 1, % 2, % 903 1,115 2,781 1,641 1, % E2018 EBITDA to grow while NIAT to contract due to recognition of dep n and interest expense with the opening of T2 by June 2018 * Excludes Airport Merchandising +21% +20% 50%) 9

10 CLARK INTERNATIONAL AIRPORT (Hybrid PPP) Megawide EPC component Construction of new terminal to accommodate 8 million passengers per annum Contract Cost: P9.36 Billion 50/50 JV with GMR Estimated Construction Period: 29 months Payment Terms based on three milestones: Upon completion of the shell of the new building terminal Upon completion of the landside facilities Upon completion of the remaining balance of works O&M Component Expected Release of Bid Documents: April 2018 Expected Awarding of the contract: 2Q

11 UNSOLICITED PROPOSAL FOR MCIA Submitted last 07 June 2017 Investment: P208 billion (US$4 billion) Three Main Phases: 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 taxiways and runway holding positions 2. Construction of a second parallel and independent runway 3. Construction of Terminal 3 NAIA Unsolicited Proposal Megawide-GMR Proposal Project Cost P150Bn Concession Period 18 Years Technical Partner Mitre Corporaion 3 rd Runway Not viable Passenger Volume in 4 years 72 mppa Aircraft movement/hr Infrastructure Plan 1. Improve airside capacity and implement terminal improvements 2. Introduction of key performance measures 3. Building future capacity 11

12 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 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. 12