ANALYST BRIEFINGFirst Nine Months of 2018

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

9M2018 CONSOLIDATED INCOME STATEMENT

In Php M 9M 2018 9M 2017 Mov’t % Remarks

Total Revenues 12,746 14,265 (1,519) (11%) Lower construction revenues

Construction 10,352 12,443 (2,091) (17%) Due to timing of new projects

Airport Operations 2,180 1,723 456 26% 15% growth in passenger volume

Airport Merchandising 215 99 116 117%

Direct Costs 9,128 10,860 (1,731) (16%)

Construction 8,618 10,520 (1,902) (18%) In line with lower revenue

Airport Operations 459 313 146 46% Increase in amortization and utilities of T2

Airport Merchandising 51 26 25 97% In line with growth of revenue

Gross Profit 3,618 3,405 213 6%

Other Operating Expenses 935 819 116 14% Due to airport operations and merchandising

Operating Profit 2,683 2,587 96 4%

Other Income (Charges) (588) (437) (151) 35% Due to increase in finance costs

Profit before tax 2,095 2,149 (55) (3%)

Tax Expense 375 434 (59) (14%) In line with profit before tax performance

Income before Non Controlling Interest 1,720 1,716 4 0% 92% of full year 2018 guidance

Non-Controlling Interest 399 333 66 20%

NIAT Attributable to MWIDE Equity

Holders1,321 1,383 (62) (4%)

3

9M2018 FINANCIAL HIGHLIGHTS

-

40%

53%

7%

NET INCOME

53%43%

4%

EBITDA

81%

17%

2%

REVENUE

% Change MerchandisingAirportConstruction

12,44210,352

1,723

2,180

99

215

9M2017 9M2018

Revenues (Pm)

2,029 1,903

1,239 1,575

3690

9M2017 9M2018

EBITDA (Pm)

883 741

811907

21 72

9M2017 9M2018

Net Income (Pm)

(17%)

26%

117%

(6%)

27%

149%

(16%)

12%

243%

14,265

12,746 3,3043,568 1,715 1,720

% SHARE

YoY PERFORMANCE

4

MARGIN PERFORMANCE

In Php M 9M 2018 9M 2017 FY 2017 FY 2016

Gross Profit Margin 28% 24% 24% 22%

Construction 17% 15% 16% 15%

Airport Operations 79% 82% 82% 81%

Airport Merchandising 76% 74% 72% -

EBITDA Margin 28% 23% 22% 20%

Construction 18% 16% 15% 15%

Airport Operations 72% 72% 71% 70%

Airport Merchandising 42% 37% 43% -

Net Income Margin 13% 12% 12% 11%

Construction 7% 7% 7% 6%

Airport Operations 42% 47% 49% 48%

Airport Merchandising 34% 21% 29% -

5

FINANCIAL POSITION

In Php M 30-Sep-18 31-Dec-17 Movement % Change

Cash & Financial Assets 8,751 8,140 611 8%

Other Current Assets 12,977 10,559 2,418 23%

Total Current Assets 21,728 18,699 3,029 16%

Concession Assets 27,991 25,608 2,383 9%

Total Non Current Assets 40,351 35,719 4,632 13%

Total Assets 62,079 54,418 7,661 14%

Current Liabilities 11,286 9,413 1,873 20%

Non Current Liabilities 31,198 26,869 4,329 16%

Total Liabilities 42,484 36,282 6,202 17%

Equity 19,595 18,136 1,459 8%

6

LIQUIDITY AND GEARING RATIOS

* Annualized

** Interest Bearing loans: 9M18 – P30.1bn

*** Net debt: 9M18 - P23.6bn

7

0.350.41

0.57

0.70 0.69*

7%

9%

12%13%

12%*

0%

2%

4%

6%

8%

10%

12%

14%

2014 2015 2016 2017 9M2018

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

PROFITABILITY

*Earnings per share (PHP) *Return on Equity

17%

21% 22%24%

28%

9% 10% 11% 12% 13%

2014 2015 2016 2017 9M2018

MARGINS

Gross Profit Margin Net Profit Margin

0.9

1.8 1.82.0

1.9

0.7

1.4 1.41.6

1.4

2014 2015 2016 2017 9M2018

LIQUIDITY

Current Ratio Quick Ratio

6.4 4.4 4.1 4.9 5.4

1.3 1.4

1.6 1.61.7

0.8 0.80.9

1.21.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2014 2015 2016 2017 9M2018

SOLVENCY

Net Debt to EBITDA**Gross Debt to Equity***Net Debt to Equity Ratio

vENGINEERING, PROCUREMENT,

and CONSTRUCTION (EPC)1

SOLID CONSTRUCTION REVENUES1

9

7.7 8.2 10.9 9.8 14.0 15.8 16.7 18.6

14.2%

17.0%16.4%

16.2%15.0% 15.0%

16.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

2011 2012 2013 2014 2015 2016 2017 E2018

REVENUES (in PHP bn)Revenue

GP Margin +6%+11%

750 1,013 1,092 838 973 1,017 1,090 1,301

9.7%

12.3%12.9%

8.4%

7.0%6.4% 7.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 2015 2016 2017 E2018

0

200

400

600

800

1000

1200

1400

NET INCOME (PHP m)Net IncomeNet Margin +19%

* 2015 Expiration of ITH

+7%

10.4

-11%

-16%

386

311

158 163

276

314293

207241

203

297

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

NET INCOME (PHP m)

5.5

3.7

3.2 3.4

4.2 4.1 4.1 4.3

3.7 3.6

3.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

REVENUES (PHP bn)

741

HEALTHY PROJECT PIPELINE1

10

8.2 10.9 9.8

14.0 15.8 16.7

10.4

18.8 20.3 22.6

39.1 38.5 32.6

39.7

-

0.20

0.40

0.60

0.80

1.00

1.20

-

10.0

20.0

30.0

40.0

50.0

60.0

2012 2013 2014 2015 2016 2017 9M18

ORDER BOOK VS REVENUE

Revenue Order book Net Income

14.112.4

17.6

37.7

12.710.8

16.8

2012 2013 2014 2015 2016 2017 9M18

NEW CONTRACTS(PHP bn)

P39.7B

Office & Comm'l,

24%

Infra, 13%

Residential, 63%

ORDER BOOK MIX 9M18

Office & Comm'l

21%

Infra6%

Residential 73%

ORDER BOOK MIX 2017

Order

backlog

> 2-3 years

AIRPORT BUSINESS SEGMENT

2

5.2 5.9 6.4 6.8 7.6 8.4 9.1 9.9 10.6 11.5 14.2

17.2 20.2

1.7 2.0 2.5 3.1 3.7

4.3 4.9

5.4 5.7

6.0

7.5

9.0

10.2

6.9 8.0 8.9 9.9

11.3 12.7

14.0 15.3 16.3

17.5

21.7

26.2

30.4 PASSENGER TRAFFIC(in millions)

Domestic Int'l

Air Traffic Volume

2017 2016 % Increase

Domestic 65,300 56,210 16%

International 21,300 16,383 30%

Total 86,600 72,593 19%

Passenger Volume Growth

2017 2016 % Increase

Domestic 6.84 6.38 7%

International 3.13 2.52 24%

Total 9.97 8.89 12%

44.7 48.9 56.2 65.380.9 87.1 89.8 91.7 97.4 102.6

120.2 137.9

153.6

11.6 13.416.4

21.3

24.5 25.0 26.5 27.7

27.8 28.0

32.0

36.1

39.4

56.3 62.2 72.6

86.6

105.3 112.1 116.3 119.4

125.2 130.6

152.2

174.0

193.0 AIR TRAFFIC(in ‘000)

Domestic Int'l

ROBUST TRAFFIC GROWTH2

12

9M2018 9M2017 % Increase

Domestic 55,286 49,338 12%

International 19,204 15,890 21%

Total 74,490 65,228 14%

9M2018 9M2017 % Increase

Domestic 5.70 5.12 11%

International 2.94 2.37 24%

Total 8.64 7.50 15%

STEADILY GROWING REVENUES

29

186 210

232

322

2014 2015 2016 2017 9M2018

REVENUE PER PASSENGER (PHP)

131

9771,108

1,280 1,207

42

339

532

723698

26

168

232

295274

2014 2015 2016 2017 9M18

AIRPORT REVENUE*(In Php M)

AERO-RELATED

NON-AER0

PSC

1,484

1,872

2,2982,180

200

* excludes airport merchandising revenues of P215M13

644%13%

16% 25%

701%

57%36% 30%

536%

38%

27%24%

642%

26%

23%26%

DIVERSE RECURRING STREAMS2

FINANCIAL RATIOS 2017 2016 2015

Current Ratio 1.0 1.3 0.4

Gross Debt to Equity 2.7 2.6 2.5

Net Debt to Equity 2.5 2.3 2.5

Gross Debt to EBITDA 12.4 13.0 14.4

Return on Equity 16% 15% 9%

Passenger

Service

Charge (PSC)

1st Step-Up: Effective June 2015

2nd Step-Up: Effective July 2018

Domestic – retained at P300

International – from P750 to P850

Aero Related

Aircraft service charges – fees from

airlines for the payment for aero

bridges, ground handling, fuel, etc.

Non-aero

Rental revenues from concession

tenants such and Retail. Also includes

advertising, car parking and other

rental revenues14

431465 483 493

570 586 568 575646

676

858

Q1 Q2 Q3 Q4

QUARTERLY REVENUE(in Php M)

2016 2017 2018

+32% +26% +18% +17%

+13% +15%

+51%

55%

45%

Revenue Mix

PSC Aero Non-aero

Regulated

*Non-regulated: commercial revenues + aero-related

Non-

regulated

32%

13%

75%

2

15* excludes airport merchandising EBITDA of P90M and NI of P72M

and using UOP method of depreciation effective 1Q18

EBITDA*

NET INCOME

HEALTHY FINANCIAL PERFORMANCE

90 971 1,302 1,641 1,575

45%

65%70% 71% 72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2014 2015 2016 2017 9M2018

ANNUAL

EBITDA Margin

285329

368320

389420 433

399

481509

585

Q1 Q2 Q3 Q4

QUARTERLY

2016

2017

2018

187

294274

148

271 280260

304

370 369

168

Q1 Q2 Q3 Q4

QUARTERLY2016

2017

2018

49 501 903 1,115 907

25%

34%

48%49%

42%

0

200

400

600

800

1,000

1,200

0%

10%

20%

30%

40%

50%

60%

2014 2015 2016 2017 9M2018

ANNUAL

Net Income Net Margin

Domestic, 66%

International, 34%

Domestic69%

International31%

Passenger Mix

2017 9M2018

EU: UK, Germany & France

Breakdown of International Tourists 2017

Korea 41%

Japan 20%

USA 9%

China 10%

Australia 3%EU, 4%

Taiwan 2%Others11%

1.0 1.6 2.2

5.4

6.7

8.1

2015 2017 2019EOther Ph Int'l arrivals (Mn) Total

% of Cebu to Total PH Int’l Arrivals

GROWING PASSENGER MIX 2

16

19% 24% 27%

INTEGRATED TRANSPORT EXCHANGE BUSINESS SEGMENT 3

FIRST LANDPORT IN THE PHILIPPINES3

18

PITX is the first Landport in the

Philippines. It will serve

passengers going to and from

provinces southwest of Metro

Manila and vice versa.

35-year PPP contract

Build-Transfer-Operate modality

1 terminal area; 1,000 buses/

200k passengers

4 office-grade towers, 17.9K GLA each

12K retail GLA

2Owner MWM Terminals (Megawide-Waltermart)*

Location Manila-Cavite Expressway, Paranaque City

Project Size 4.59 Hectares

Agreement Build-Transfer-Operate for 35 years

Project Cost Php 5.6 B

Opening Date Nov 4, 2018

18

LOCATION AND CONNECTIVITY

Major Destinations % pax1 % buses2

Pasay 28% 19%

Taguig 28% 0%

Parañaque 10% 26%

Expected ~50,000 pax daily by provincial buses

Located at the southwest of Metro

Manila, PITX will serve as a major

connecting hub between Cavite and

Metro Manila.

Major Sources % pax1 % buses2

CaviteCity 37% 15%

Dasmariñas 9% 8%

Imus 8% 2%

General Trias 5% 2%

Kawit 5% 0%

Trece Martires 5% 9%

Other nearby connections• Mall of Asia Ferry Terminal (North)

• LRT-1 Asia World Station (North Avenue Station to Dr. Santos Station)

• MRT-3 (Edsa Taft Station to LRT-1 Baclaran Station)

19

Entertainment

City

TERMINAL FEATURES

• Centralized Ticketing System

• Online Booking with Seat Selection

• Public Information Displays

• Terminal Management System

Multi-modal Transport Options

• Provincial bus

• City bus

• UV Express Shuttle

• P2P

• PUJs/Taxi

• Ride Sharing

• Future LRT Connection

2

20

RECURRING REVENUE STREAMS

63%

37%

Food Non-food

OFFICE TOWERS

(18K sqms GLA/tower)

RETAIL PODIUM

(12K sqms retail GLA) ongoing leasing

Towers 1 & 2• Completion end-

2018

• Pre-leased

Towers 3 & 4• For completion 1H2019

• Ongoing negotiations

for pre-leasing

21

717 1,137 1,189437 716 773

61%

63% 65%

59%

60%

61%

62%

63%

64%

65%

66%

0

200

400

600

800

1,000

1,200

1,400

E2019 E2020 E2021

Lease revenue (PHPm) EBITDA (PHPm)EBITDA Margin

Others

• Bank

• Apparel

• Grocery

• Services

BUSINESS UPDATES

CLARK INTERNATIONAL AIRPORT (Hybrid PPP)

23

Engineering Procurement & Construction Operations and Maintenance (O&M)

Construction of new building terminal to

accommodate 8 mppa

Contract Cost: P9.36 Billion

50-50 JV with GMR

Hybrid PPP Structure: Build-and-Transfer (BT)

Construction Period: May 2018 – May 2020

Payment Terms based on three milestones, upon

completion of:

1. the shell of the new building terminal

2. the landside facilities

3. the remaining balance of work

Bought bid documents:

• Megawide-GMR

• Metro Pacific Investments

Corp.

• Filinvest Development Corp.

• San Miguel Holdings Corp.

• Prime Asset Ventures, Inc.

• Central Luzon Infrastructure

Consultancy, Inc. consortium;

• GVK Airport Developers Ltd.

• Groupe ADP.

Participated:

• FilinvestNorth Luzon Airport

Consortium: Filinvest

Development Corp., Gokongwei-

led JG Summit Holdings, Inc..

Philippine Airport Ground

Support Solutions, Inc., and

Changi Airport Philippines.

• X-Droid Consortium: Angkasa

Pura II, Globalport 900, Inc.,

Mazy’s Capital, Inc. and Desco,

Inc. and Philippines AirAsia, Inc.

November 9, 2018 Bidding

MCIA EXPANSION PROJECT (Unsolicited Proposal)

Three Main Phases:

Phase 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

Phase 2: Construction of a second

parallel and independent runway

Phase 3: Construction of Terminal 3

24

Submitted 07 June 2017

Investment: P208 billion (US$4 billion)

Original Proponent Status

Awaiting NEDA approval

Progressive Property Dev’t Opportunity

6.5 Hectares land as part of the existing

concession, ripe for development for

mixed-use concept.

NAIA REHABILITATION PROJECT (Unsolicited Proposal)

Megawide-GMR Proposal

Project Cost P150Bn

Concession Period 18 Years

Technical Partner Mitre Corporation

3rd Runway Not viable

Passenger Volume in 4 years 72 mppa

Aircraft movement/hr 40-60

Infrastructure Plan

1. Improve airside capacity and

implement terminal

improvements

2. Introduction of key

performance measures

3. Building future capacity

25

In October 2015, the Consortium of East West

Rail Corporation (EWRC) and Alloy MTD (Alloy)

made an unsolicited proposal for undertaking

the East West Transit Rail Project, which is a

9.7 km railway line in Metro Manila.

On 27th March, 2017, Megawide entered into an

Investment Agreement with EWRTC to acquire

60% stake in the consortium.

The project is subdivided into two components:

Build-Transfer (BT) for the construction, civil

works and electromechanical systems; and

Build-Operate-Transfer (BOT) for the

operations & management (O&M) for 30

years.

Stations TypeConnecting

Network

Lerma Elevated LRT-1, LRT-2

UST Elevated

Antipolo Elevated PNR

Welcome Rotonda Elevated

Banawe Elevated

G. Araneta Elevated

Roces Elevated

Timog Elevated

EDSA Underground

Quezon Memorial Underground MRT-3

University Avenue Underground MRT-7

PNR EAST WEST RAIL PROJECT (Unsolicited Proposal)

26

Q & A

COMPANY INFORMATION

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