FIN FINANCIAL ANCIAL AND AND OPERA OPERATING TING HIGH HIGHLIGHTS LIGHTS Nine Months Ended September 30, 2019 1
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 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. 2
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 Rebound on track 2% 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% Industry supply / capacity Construction 9,052 8,618 5% 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% 3 *Majority pertains to drawdowns made by Airport, Landport and Clark EPC.
FINANCIAL HIGHLIGHTS QUARTERLY PERFORMANCE (PHPm) 6,000 1,400 1,287 1,168 1,230 1,139 1,200 1,111 1,083 5,000 1,000 888 4,000 800 Revenue 5,510 EBITDA 600 3,000 4,611 4,450 4,361 3,936 400 3,572 3,246 2,000 200 1,000 - 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 • Rebound performance on track 4 -
FINANCIAL HIGHLIGHTS PERFORMANCE REVENUE (PhP M) EBITDA (PhP M) NET INCOME (PhP M) 1,720 3,481 3,537** 13,694* 12,746 72 248 90 100 215 2,714 2,180 1,575 1,723 907 835*** 67 10,352 10,526 379 1,815 1,696 741 431 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 9M2019 BREAKDOWN REVENUE NET INCOME EBITDA -5% 3% 8% 2%1% 20% 52% 48% 49% 77% 45% Merchandising Landport Construction Airport 5 - ***includes 43M net loss from Landport operation *Includes 207M revenue from Landport operation *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% - *Computed as operating income + depreciation and amortization expense 6 ** Due to the impact of depreciation and amortization and financing charges of Airport operations
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 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 * Gross D-E covenant 2.33X under Parent level ** Under project finance *** Net debt: 9M19 - P37bn 8
1 Engineering, Procurement, and Construction (EPC)
RECOVERY ON TRACK 1 1 QUARTERLY PERFROMANCE (PhP M) 6,000 756 800 700 652 5,000 520 600 576 524 4,000 484 500 Revenue 3,000 400 319 EBITDA 5,026 300 4,342 2,000 3,616 2,989 200 2,568 2,337 2,337 1,000 100 - - 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 • Building forward momentum 10
HEALTHY NEW CONTRACTS AND ORDER BOOK 1 1 ORDER BOOK ( PhP B ) 9M 2019 ORDER BOOK (SEGMENT) 60.0 52.2 50.1 50.0 Office, Commercial and 39.1 38.5 Industrial, 37% 40.0 32.6 Order Residential, backlog 30.0 60 58% 22.6 > 2-3 50 20.3 years 18.8 20.0 40 30 10.0 20 23 27 38 50 37 41 43 30 Infra, 10 5% 0.0 0 2012 2013 2014 2015 2016 2017 2018 9M19 NEW CONTRACTS 9M 2019 ORDER BOOK (AREA) (PhP B) 37.7 Visayas 23% 29.5 Metro Manila 64% 17.6 Other 14.6 14.1 12.4 Luzon 12.7 10.8 10% 2012 2013 2014 2015 2016 2017 2018 9M19 11
TRANSPORT INFRASTRUCTURE 2 Airport Business Segment
ROBUST EARNINGS STREAM 2 2 25% YoY Growth 75% REVENUES * Increase in revenue (In PhP M) 1,000 918 899 897 857 816 900 800 676 646 EBITDA** 700 586 575 570 568 (In PhP M) 590 590 585 600 493 483 543 534 465 510 431 481 500 430 420 402 389 400 368 329 321 285 300 200 100 - 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 • Constant value creation * Excludes airport merchandising revenues 9M19 of PhP 248M ** Computed as Operating income + depreciation and amortization expense 13
PSC: PASSENGER GROWTH SUSTAINED 2 9M19 BREAKDOWN PASSENGER VOLUME (millions) 9M19 9M18 % Increase P1.49M 55% Domestic 6.30 5.70 10% 23% International 3.19 2.94 9% Total 9.48 8.64 10% 27 Domestic 23 International Destinations Destinations PASSENGER TRAFFIC 3,500,000 3,000,000 1 st Step up : effected June 2015 2,500,000 Domestic: from P200-P300 International: from P550-P750 2,000,000 PASSENGER 2 nd Step up : effected July 2018 1,500,000 SERVICE Domestic: maintained at P300 CHARGE 1,000,000 International: from P750-P850 (PSC) 500,000 Inflation adjustment: Nov 2019 Domestic: +10% - International: +10% Dom Intl 14 14
2 NON-AERO: EXPANDING SPACE AND OFFERINGS NEW SHOPS AT TERMINAL 2 9M19 BREAKDOWN 33% P900M 29% RETAIL GLA (in sqms) T1 Ph 2 400 T1 RENOVATION (PHASE 1) Airport village 1,800 T2 T1 Ph1 3,800 3,800 3,800 4,200 4,200 3,500 3,200 2,000 2016 2017 2018 2019E 2020F AIRPORT VILLAGE Rental revenues from concession tenants such as F&B and Retail. NON-AERO Also includes advertising, car parking and other rental revenues 15 15
AERO: NEW FLIGHTS, INCREASED FREQUENCIES 2 9M19 BREAKDOWN AIR TRAFFIC VOLUME (thousands) P325M 9M19 9M18 % Increase 13% 19% Domestic 57,876 55,286 5% International 20,850 19,204 9% Total 78,726 74,490 6% AVE. DAILY FLIGHTS Domestic 203 204 181 International AIR TRAFFIC 139 120 30,000 80 69 59 55 25,000 45 33 15 20,000 2014 2015 2016 2017 2018 9M19 15,000 10,000 Aircraft service charges – fees 5,000 AERO from airlines for the payment for RELATED aero bridges, ground handling, - fuel, etc. Dom Intl 16 16
TRANSPORT INFRASTRUCTURE 3 Integrated Transport Exchange Business Segment
BUILDING CRITICAL MASS 3 AVERAGE PASSENGER AVERAGE DAILY TRIPS* FOOT TRAFFIC vs SPP (PHP) 25.4 70000 5,365 5,193 60000 22 4,849 50000 17 4,020 40000 3,430 30000 12 20000 7 36,407 39,287 36,612 40,578 59,715 55,811 49,630 45,081 48,167 51,940 10000 3.8 2 0 *includes arrivals and departures 18
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