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FY 2019
Analyst Briefing
FY2019 FINANCIAL HIGHLIGHTS
P17.9bn
ATTRIBUTABLE
NET PROFIT
P48.2bn
CAPEX SPENDING
P67.3 bn
TOTAL REVENUES
P75.9bn
GROSS DEBT
P29.6bn
EBITDA
2
26%
NET DEBT/EQUITY
P19.3bn
NET PROFIT
Real EstateP42.6 bn
RentalsP16.8 bn
HotelsP2.5 bn
OthersP5.4 bn
in Pbn FY19 FY18 % Remarks
REVENUES 67.3 57.4 17% Strong core growth
Real Estate Sales 42.6 38.0 12% Project completion of higher-valued projects
Rentals 16.8 14.3 18% Steady occupancy rates; Capacity increases
Hotels 2.5 1.5 67% Increased room capacity
Others 5.4 3.6 48%
COSTS & EXPENSES 48.0 41.4 15% Costs growth from higher sales and rental
Cost of Sales 23.4 20.5 14% Higher project completion
Hotel Costs 1.4 0.8 68% Pre-operating expenses from new hotels
Operating Expenses 13.9 11.3 24% Depreciation (↑20%); Commission (↑48%)
Interest & Other Charges 3.3 3.3 -1%
Income Taxes 6.1 5.5 10%
PRE-ACQUISITION INCOME 0 0.2 -
EBITDA 29.6 25.0 19% Higher contribution from rental segment
NET PROFIT 19.3 15.8 22% Higher contribution from rental segment
ATTRIBUTABLE NET PROFIT 17.9 15.2 18%
FY2019 PERFORMANCE UPDATE
GP
Marg
inEB
ITD
A M
arg
inN
P M
arg
in
45.1%
46.1%
44.0%
43.5%
28.7%
27.6%
2019 2018 3
↓100 bps
↑50 bps
↑ 110 bps
29.9 31.4 31.535.6
41.6
49.1
3.45.4 4.8
6.2
7.5
8.8
4.65.1 4.9
4.9
4.4
5.2
3.1
3.2 3.1
3.5
3.9
4.2
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI
69%
27%
4%
71%
26%
3%
Real Estate Rentals Hotels
Breakdown **
TOTAL REVENUES (Pbn)
41.045.0 44.3
50.1
57.4
63.7
2019
2018
5-Year CAGR: 10%
*2014 figures exclude non-recurring gains of P12.2bn
**Core Revenues only (Residential, Rentals and Hotels); excludes finance and other income4
12.7 13.815.4
17.3
20.5
24.51.1
1.4
1.8
2.4
2.9
3.4
0.80.8
0.8
1.2
1.2
1.4
0.50.6
0.3
0.3
0.3
0.437% 37%
41%42%
43% 44%
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI EBITDA Margin
Breakdown**
EBITDA (Pbn)* & MARGIN
15.116.6
18.321.2
25.0
29.6
2019
2018
5-Year CAGR: 14%
45%53%
2%
48%50%
2%
Real Estate Rentals Hotels5*2014 figures exclude non-recurring gains of P12.2bn
**Core Revenues only (Residential, Rentals and Hotels); excludes finance and other income
7.8 8.9 10.111.5
13.516.50.9
0.8
1.1
1.5
1.7
2.1
0.50.6
0.5
0.6
0.5
0.6
0.30.3
0.1
0.1
0.1
0.123% 24%
27%27% 28% 29%
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI NP Margin
9.410.6
11.8
13.7
15.8
19.3
NET PROFIT (Pbn) & MARGIN
ATTRIBUTABLE NET PROFIT (Pbn) & MARGIN
5-Year CAGR: 15%
6
7.78.9
10.111.4
13.4
16.10.60.6
0.8
1.2
1.2
1.2
0.40.4
0.4
0.5
0.4
0.5
0.30.3
0.1
0.1
0.1
0.1
22%23%
26% 26% 26% 27%
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI ANP Margin
9.110.2
11.513.1
15.2
17.9
5-Year CAGR: 16%
*2014 figures exclude non-recurring gains of P12.2bn
39.8
50.246.2 44.7
49.3 47.9
4.3
2.8 4.2
5.9
0.4
2014 2015 2016 2017 2018 2019
Project Development Land Acquisition
2020 CAPEX
CAPITAL EXPENDITURES (Pbn)
39.8
54.5
49.0 48.9
55.2
48.2
P36 bn
Investment
Properties
30%
Residential
70%
7
31.1
46.652.1
64.4 64.3 64.70.2
2.0
3.9
5.1 4.1 5.0
0.1
1.5
2.0
2.0 2.1 1.4
2.1
2.5
3.2
3.4 5.3 4.7
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI
GROSS DEBTS (Pbn)
33.5
52.6
61.2
74.9 75.7 75.9
Fixed
65%
Floating
35%
PH Peso
72%US Dollar
28%
Typ
e o
f D
eb
tIn
tere
st R
ate
Cu
rren
cy
Loans
68%
Bonds
32%
8
10.0
28.4
40.2
53.1 50.745.9
-2.8-0.9
0.8
1.92.3
2.4
0.1
0.9
0.70.2
0.3
1.8
2.2
2.8
2.8 4.9
4.2
7%
22%
31%
36%
31%
26%
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI Net Debt-to-Equity
NET DEBT (Pbn) & NET DEBT/EQUITY
8.4
29.8
44.8
58.5 58.2
52.8
MEG
GER
IELI
SP
I
8%21% 28% 32% 27% 22%
2014 2015 2016 2017 2018 2019
-11%-3% 3% 6% 7% 7%
2014 2015 2016 2017 2018 2019
-3% 0% 4% 3% 1% 1%
2014 2015 2016 2017 2018 2019
92% 96%115% 108%
184% 154%
2014 2015 2016 2017 2018 20199
10
CORE BUSINESSES
REAL ESTATE OFFICES MALLS HOTELS
FY 2019 OPERATIONAL HIGHLIGHTS
4,300has
LANDBANK
P149bn
RESERVATION SALES
P85bn
PROJECT LAUNCHES
1.3m
OFFICE GLA (SQM)
453k
RETAIL GLA (SQM)
26 TOWNSHIPS(4,284 Hectares)
3,637HOTEL ROOM KEYS
25
31
5
34.5
50
15.4
5
12.4
18.5
72
173
34
53 11
150
30
300
561
1,200
251
62
350
140
640
24
35.6
11
REAL ESTATE
RESERVATION SALES
PROJECT LAUNCHES
P149 bn
REAL ESTATE SALES
P42.6 bn
P85 bn
12
19.721.9
24.7
29.5
3.9
5.3
6.4
6.1
4.0
3.9
3.5
3.5
2.7
3.0
3.4
3.6
2016 2017 2018 2019
MEG GERI ELI SPI
GP
(P
bn
) &
Marg
inEB
ITD
A (
Pb
n)
& M
arg
in 31%32% 32%
31%
9.711.5 12.7 13.6
2016 2017 2018 2019
Residential EBITDA EBITDA Margin
3-Year CAGR: 12%
REAL ESTATE SALES (Pbn) & MARGINS
30.4
34.1
38.0
42.6
9.1 10.6 11.7 13.1
2.22.9
3.43.3
1.51.7
1.51.8
0.80.9
1.01.0
45%47% 46% 45%
2016 2017 2018 2019
MEG GERI ELI SPI GP Margin
13.6
17.5 19.216.1
13
REAL ESTATE SALES MIX
8.4
2.8
10.8
5.6
3.2
6.0
0.5
1.5
1.5
2.0
0.4
Taguig
Makati
Pasay/Parañaque
Quezon City/Pasig
Other MM Areas
CALABARZON
Other Luzon Areas
Iloilo
Cebu
Boracay
Other Vis-Min
Areas
↓11%
↓29%
↑ 155%
↑ 25%
↓31%
↑ 18%
↑ 41%
↓ 3%
↓ 12%
↑ 13%
↑ 61%
By Classification
75%
8%
12%4%1%
78%
5%
14%3%0% Residential Units
Condotels
Residential Lots
Commercial Lots
Industrial Lot
2019
2018
14
RESERVATION SALES (Pbn)
By
Cla
ssif
icati
on
54.2 52.0 53.0
70.5
91.198.3
13.5 14.6 11.0
10.9
14.3
19.2
11.3 11.9 13.0
14.3
17.8
18.4
6.0 6.8 10.2
9.3
12.2
12.8
2014 2015 2016 2017 2018 2019
MEG GERI ELI SPI
85.0 85.387.2
105.0
135.4
148.7
78%
1%
12%
6%3% 0%
Residential Units Office Units
Condotels Residential Lots
Commercial Lots Industrial Lots
Bu
yer’
s P
rofi
le
75%
13%
12%
Local
Asian
OFW
15
PROJECT LAUNCHES (Pbn)PROJECT NAME LOCATION VALUE
MEGAWORLD 63.8
South Beach Place (1 tower) Westside City 7.9
Sunny Coast Residential Resort 2 & 3 Westside City 12.4
Two Regis Upper East 1.6
One Corporate Place Maple Grove 1.5
The Albany Yorkshire Mckinley West 3.0
Saint Mark Residences Mckinley Hill 3.8
Bryant Parklane - West Wing Capital Town 0.9
International Corporate Plaza Iloilo Business Park 2.0
Park McKinley West - Phase 2 - Tower C McKinley West 7.9
Arcovia Palazzo - Towers 1 & 2 Arcovia City 7.4
Kingsquare Residence San Lazaro, Manila 5.2
Arden Botanical Village Arden Botanical Estate 2.7
The Pearl Global Residences Mactan Newtown 2.3
Manhattan Plaza Tower 3 Manhattan Garden City 5.2
GLOBAL-ESTATE 11.0
Countrywoods Cluster 2 Twin Lakes 2.0
Tulip Gardens Towers 2-3 Southwoods City 3.6
The Lindgren Arden Botanical Estate 1.4
Ocean Garden Villas Cluster B Boracay Newcoast 0.8
Chancellor Hotel Boracay Cluster 2&3 Boracay Newcoast 3.2
EMPIRE-EAST 3.1
Highland City – Arcadia T1 Highland City 3.1
SUNTRUST PROPERTIES 6.8
Sofia Terraces Baguio City 1.2
East Park Residences Davao City 3.0
The Arcadia Porac, Pampanga 2.6
TOTAL 84.7
By C
lass
ific
ati
on
By L
oca
tio
n
62%
38%
Provincial
Metro Manila
84%
4%4%
8%
Residential Units Office Units
Condotel Residential Lots
16
KEY LAUNCHES
The Pearl Global Residences
The Mactan Newtown
P 2.3 billion | 37% sold
Highland City – T1
Highland City
P 3.1 billion | 98% sold
Arden Botanical Village
Arden Botanical Estate
P 2.7 billion | 100% sold
The Arcadia
Porac, Pampanga
P 2.6 billion | 12% sold
Kingsquare Residences
San Lazaro, Manila
P 5.2 billion | 43% sold
17
Chancellor Hotel
Boracay Newcoast
P 3.2 billion | 81% sold
RENTALS
MEGAWORLD PREMIER OFFICES
MEGAWORLD LIFESTYLE MALLS
P10.5 bn
RENTAL REVENUES
P16.8 bn
P6.3 bn
18
RENTAL INCOME (Pbn)
RENTAL EBITDA & MARGIN
4.25.1
6.07.3
8.7
10.52.9
3.6
4.0
4.6
5.5
6.3
2014 2015 2016 2017 2018 2019
Prime Offices Lifestyle Malls
7.1
8.7
10.0
11.8
14.3
16.8
5-Year CAGR: 20%
86%85%
87%88%
88% 89%
6.4
9.2 9.2 10.9
13.4 15.9
2014 2015 2016 2017 2018 2019
Rental EBITDA EBITDA Margin
19
RENTAL PORTFOLIO (‘000 sqm)
MEGAWORLD LIFESTYLE MALLS MEGAWORLD PREMIER OFFICES
577659
742829
900
1,07544
78
109
184
219
237
2014 2015 2016 2017 2018 2019
Metro Manila Provincial
621
737
851
1,013
1,119
1,312
181
259 266 279
341 3575
1023
46
9296
2014 2015 2016 2017 2018 2019
Metro Manila Provincial
186
269288
325
433453
20
HOTELS
HOTEL EBITDA
HOTEL ROOM COUNT
P0.6 bn
HOTEL REVENUES
P2.5 bn
3,63721
0.4 0.5
0.81.0
1.3
1.7
0.30.3
0.4
0.3
0.2
0.8
2014 2015 2016 2017 2018 2019
MEG GERI
HOTEL REVENUES (Pbn)
0.7
HO
TEL R
OO
M C
OU
NT
5-Year CAGR: 29%
0.8
1.2
1.3
1.5
2.5
556 556 1,185
1,744
2,554
3,637
2014 2015 2016 2017 2018 2019
EB
ITD
A (
Pm
) &
MA
RG
IN
304 304 364 364 428
643
41% 37%31% 28% 28% 25%
2014 2015 2016 2017 2018 2019
Hotel EBITDA Margins
22
2020
P50bn
RESERVATION SALES
P4 bn
PROJECT LAUNCHES
+110k
OFFICE GLA (SQM)
+26k
RETAIL GLA (SQM)
+526HOTEL ROOM KEYS
P36bn
CAPEX BUDGET
2020 TARGETS
23
MEGAWORLD PREMIER OFFICES
PROJECT TOWNSHIP GLA
2020
Two Fintech Place Iloilo Business Park 17,600
Worldwide Plaza Uptown Bonifacio 69,200
One Fintech Tower Westside City 17,500
Mactan World Museum The Mactan Newtown 5,400
Total GLA 109,700 sqm
2021
Enterprise 1 (IBP BPO 11) Iloilo Business Park 36,700
Suntrust Finance Center Westside City 20,800
1 Upper East Avenue Upper East 8,600
Total GLA 66,100 sqm
2022
International Finance Center Uptown Bonifacio 69,000
Two McWest McKinley West 54,400
Two Fintech Tower Westside City 17,600
IBP BPO 10 Iloilo Business Park 39,000
Pasudeco Tower 1 Capital Town 9,000
TMN BPO 6 The Mactan Newtown 10,600
Lapu Lapu Civic Square The Mactan Newtown 11,000
The Upper East BPO 2 Upper East 8,600
Total GLA 219, 200 sqm
Worldwide Plaza (2020)Uptown Bonifacio
One (2019) and Two Fintech Towers (2022)Iloilo Business Park
International Finance Center (2022)Uptown Bonifacio
24
MEGAWORLD LIFESTYLE MALLS
PROJECT TOWNSHIP
2020
Lafayette Iloilo Business Park
808 Building Iloilo Business Park
World Commerce Plaza Uptown Bonifacio
The View Deck Arcovia City
One Legrand Tower Mckinley West
Clock Tower Davao Park District
Collonade Davao Park District
Art Deco Davao Park District
Uptown Palazzo Uptown Bonifacio
Total GLA 25,500 sqm
2021
Clark Cityfront Clark, Pampanga
8 Sunset Blvd and One Fintech Westside City
Clark Parking Square Clark, Pampanga
Highland Skymall Highland City
San Antonio Residences Makati
Boracay Chancellor Boracay Newcoast
The Pad Shaw
Palladium Iloilo Business Park
810 Building Iloilo Business Park
Total GLA 81,000 sqm
The Pad (2021)Shaw, Pasig City
Skymall (2021)Highland City, Cainta
Uptown Palazzo (2020)Uptown Bonifacio
The View Deck (2020)Arcovia City
25
MEGAWORLD HOTELS
Belmont Hotel
Mactan
Kingsford
Hotel
Grand
Westside
Hotel
HOTEL NAME TOWNSHIP ROOM KEYS2020
Kingsford Hotel Westside City 526
2021
Chancellor Hotel Boracay Boracay Newcoast 554
2022
Grand Westside Hotel Westside City 1,530
Belmont Hotel Mactan The Mactan Newtown 550
Total 2,080
26
IMPACT OF COVID-19 PANDEMIC ON THE BUSINESS
REAL ESTATE
• Work stoppage on construction
sites and slowdown on the
supply chain may potentially
lead to delays on the targeted
completion and turnover of
projects.
• Demand is negatively affected
due to reduced liquidity of
potential customers and
slowdown of construction
progress.
OFFICES
• POGO operations were
temporarily closed.
• BPO offices remain opearational,
while social distancing measures
are implemented
MALLS
• Community quarantine also
requires temporary adjustment
of mall operating hours which
could reduce foot traffic.
• All Megaworld Lifestyle Malls in
Metro Manila have temporarily
closed except for those tenants
that continue to provide the
basic needs of our office tenants,
residents and the neighboring
communities in our townships.
HOTELS
• Occupancy dropped significantly
due to travel restrictions and
cancellation of bookings and
MICE activities.
• Most hotels have limited
operations, with in-city hotels
utilized as lodgings for the BPOs
and repatriated OFWs.
27
ADDRESSING THE IMPACT OF COVID-19 PANDEMIC
28
KEY TAKAWAYS
The township model is the way of the future
as convenience becomes a way of life. Best
model in securing a community.
MEG expects the BPO sector to continue to
drive growth in office space. As the country’s
largest office landlord, MEG has the scale to
take advantage of the expected surge in BPO
office demand.
MEG’s initiatives on digital transformation
should strengthen its business moving
forward.
With cash preservation as a main objective,
MEG has decided to reduce its overall capex
to P36bn as it plans to finish only its ongoing
projects.
MEG has 4,300 hectares of developable land
in prime locations. This is MEG’s most
valuable asset which will be difficult for most
developers to replicate.
MEG has the lowest financial gearing among
the major listed property companies. This
can give it more flexibility in terms of
leveraging once business activity picks up.
29
FY 2019
Analyst Briefing