PRESS RELEASE Refer to Anna Salgado | asalgado@megawide.com.

ph
17 August 2020 0917.5637629 | 655.1111 local 710

Megawide landport operations delivers P255 million income in 1H2020

Company builds Runway to Resilience Program amid post-COVID environment

Megawide Construction Corporation’s (Megawide’s or the Company’s) landport, the Parañaque

Integrated Terminal Exchange (PITX), delivered revenues of P599 million and a Net Income of P255
million for the first six months of the year. The newest segment of Megawide’s three-legged
business portfolio also contributed 40% to the Group’s consolidated earnings before interest, taxes,
depreciation and amortization (EBITDA) during the period, from practically nil in the same period last
year.

“When we inaugurated PITX two years ago, we were very excited about its social impact and
business prospects. Barely one year of full-blown terminal and commercial operations, we are
starting to reap the benefits of this undertaking – not just for the Company but more importantly for
our commuting public,” Edgar Saavedra, Megawide Chairman and CEO said.

The landport’s performance cushioned the weakness in Megawide’s traditional growth engines – the
construction business, which was mostly inactive during the quarantine season, and airport
operations, which suffered from international and local travel bans. As a result, the Company’s
consolidated revenues during the period was 21% lower from the previous year at P6.44 billion, with
construction contributing P4.88 billion, airport operations accounting for P888 million, and airport
merchandising chipping in P69 million.

The Company’s consolidated EBITDA amounted to P1.45 billion. However, interest expenses and
other non-cash charges amounting to a combined P1.12 billion for the period, associated largely
with the Mactan-Cebu International Airport (MCIA) concession, resulted in a net loss attributable to
equity holders of P398 million, the first in Megawide’s history.

The construction business maintained a healthy order book of P48 billion despite the absence of
new contracts due to the slowdown in property development and project launches from real estate
players. The Company, however, is close to securing new contracts in the second half of the year,
worth at least approximately P10 billion, to beef up its order book.

Airport operations recorded lower passenger volumes of 742,000 and 1.7 million in the first half of
2020, compared with 2.1 million and 4.3 million for the international and domestic segments,
respectively, which naturally affected all revenue segments.

“The situation we are in is unprecedented but we remain in high spirits for the Company’s prospects
moving forward. This is the reason why we are building our runway for the future, which we
envision to propel us to even greater heights in the years to come,” commented Saavedra.

The Company has developed a Runway to Resilience Program post-COVID, anchored on four points:
1) Push Back, 2) Rev Up, 3) Full Throttle, and 4) Take Off. The Company will prioritize its financial
and operational health and will (1) Push Back on unnecessary costs and expenses as well as
eliminate inefficient processes and resources. To support this, Megawide will (2) Rev Up its
digitalization efforts, liability management initiatives, and occupational health and safety practices
to meet the objective.
The Company believes this foundation will enable it to go (3) Full Throttle to seek new projects,
build up its non-human capital and capacity, and explore strategic funding to support these goals.
Once cleared, the Company expects to (4) Take Off to its portfolio expansion program and a bigger
infrastructure platform, and an opportunity to forward integrate with complementary businesses
within the Group to build a stronger yet more agile organization.

“We are aware that there will be significant headwinds that will come our way as we pursue this
path but we trust in our experience, rely on the strengths gained throughout the years, and remain
firm on our vision towards Engineering a First-World Philippines,” Saavedra added.

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