Chairman’s Message – Megawide 2022 ASR

Chairman's MEssage

“We are gaining speed and momentum on the path to
our vision.”

EDGAR SAAVEDRA

Chairman and CEO

Amidst pressure from internal deficiencies and external forces, the wins we achieved this year became the boost we needed to accelerate our journey towards a First-World Philippines — this time, with a strong ESG agenda to help show us the way.

Shaping the Vision

Our 25th year marks more than two decades of innovating, evolving, and engineering ideas and projects that made us into one of the country’s leading infrastructure innovators.

We believe these are projects that help elevate the country through quality of design and engineering that delivers efficient solutions, modern systems, and convenience to stakeholders — conditions believed to only be available in first-world countries.

We hope that the structures and services we create will serve as symbols and catalysts of progress, not just in our landscape but in the mindset of the Filipino: that we can live in a First-World environment, and all citizens can have First-World opportunities.

Evading Risks and Accelerating Diversification

The Company may have divested one of its major assets, but it boosted the greater organization to be in a better position to achieve its long-term goals.

It enabled us to ease our balance sheet and provided flexibility in pursuing our broader growth agenda. In addition, the transaction unlocked funds that will accelerate our diversification into more cycle-resilient, scalable, and emerging growth segments. Furthermore, the move will enable us to diversify and strengthen our stakeholder base, as we explore other ventures and pursue a more focused ESG agenda.

Revitalizing our Position

In 2022, Megawide recorded Php 14.8 billion in revenues and delivered a net income of Php 2.83 billion, reversing the Php 893.2 million loss reported the previous year. The net income figure includes the exceptional gain from the airport transaction, representing part of the upfronted value from our divestment in GMCAC, and one-off items related to terminated projects in the construction business that were negatively impacted by the pandemic in 2020.

The proceeds also enabled us to deliver part of our outstanding bank debts, which resulted in a much more comfortable bank debt-to-equity ratio of 1.4x by the end of December 2022 from 2.6x at the end of December 2021. As we pursue our inclusive growth and shared prosperity goals, our revitalized financial position will offer us much needed flexibility and capital raising capacity.

Pursuing shared Prosperity

While our strategic objectives steer our business decisions, we firmly believe that ESG should be central to our operations as well. One of our realizations from the pandemic was that our corporate existence goes beyond the material and financial benefits we impart to shareholders. We embrace that we are equally responsible to the environment, the society, and all stakeholders.

While CSR programs help us actively give back to local communities, ESG is likewise built into our infrastructure and development projects. For instance, we support sustainable mobility through efficient transportation infrastructure and green technology and design.

Boosted for the Future

There is much to look forward to and much to be done. I am grateful to our stakeholders who have stood by Megawide through the decades, and employees who are committed to our vision. I am equally thankful to our host communities, creditors, trade partners, and regulators for their continued support and confidence in our organization. Thank you for sharing our vision and keeping our passion for a First-World Philippines burning bright. On to the next twenty-five years!