ir presentation september 2015 3 - dmci holdings · 14,710 17,170 17,060 18,800 20,170 7,540 8,120...

DMCI Holdings, Inc.

Corporate Presenta7on

September 2015

September 2015

Page(s)

I Overview Organiza7onal Chart 3

Timeline 4

II DMCI Holdings, Inc. Consolidated 5-‐6

III Semirara Mining & Power Corp.:

Coal Mining 7-‐8

Power (on-‐grid) 9

IV Property: DMCI Homes, Inc. 10-‐12

V Construc7on: D.M. Consunji, Inc. 13-‐14

VI Water: Maynilad 15-‐16

VII Power (off-‐grid): DMCI Power Corp. 17-‐19

VIII Nickel Mining: DMCI Mining Corp. 20-‐22

IX Moving Forward: Strategy & Plans 23

X Appendix 1H 2015 Briefing 25

Agenda

2

September 2015

CONSTRUCTION REAL ESTATE

100% 100% 25% 56% 100% 100%

100%

DIVERSIFIED, ENGINEERING-‐BASED CONGLOMERATE

SAN RAFAEL*

NICKEL

50%

40%

100%

2x300MW

2x150MW

2x350MW

OFF-‐GRID POWER COAL & POWER WATER

3 *San Rafael not yet opera7onal

ZAMBALES CHROMITE

ZAMBALES (ZDMC)

BERONG (BNC)

MINDORO

PALAWAN

MASBATE

100%

100%

100% 75%

100%

100%

28 units of diesel

2X6.3 MW bunker & 8 units of diesel

4x3.89 MW bunker

September 2015

1954 Founding of , a general construcEon company

1995 Lis7ng of on the Philippine Stock Exchange

1997 • Acquisi7on of and • Acquisi7on of mark beginning of transforma7on from construc7on firm into diversified engineering-‐based Group

2000 Establishment of , property development arm

2006 DMCI-‐MPIC consor7um (50:50) bids for

2007 • Turnover of opera7ons to DMCI-‐MPIC in January • established aker successful bid to build, operate & own 13MW power plant in Masbate

2009 Acquisi7on of , 2x300MW coal-‐fired power plant

2010 Sale of

2012 • Transi7on from contract-‐miner (nickel) to owner: acquires ENK (Acoje mine, Zambales) and TMC (Berong mine, Palawan) • Incorpora7on of (2x150MW opera7onal by end 3Q 2015) • established.

2013 • Sale of to Marubeni Philippines Corp. (DMCI share: 25%) • wins the bid for 15-‐year PSA in Oriental Mindoro

TIMELINE OF CAPITAL MOVEMENT

4

September 2015 5

Over the past 10 years, Management has returned nearly $700M USD in dividends

September 2015

• Net Income up 28% in 1H 2015 versus the same period last year.

6

DMCI HOLDINGS, INC.

Semirara Resources: Coal & Other RESOURCES: Panian 50MT Narra 40MT Himalian 120MT Molave* 90MT Tuong (underground)

12MT ________________ TOTAL RESOURCES 312MT RESERVES: Panian 17MT Narra 70MT Himalian 82MT Molave TBD ________________ TOTAL RESERVES 169MT Other Minerals: Limestone (1.2 billion MT), Clay (2.9 billion MT)

NARRA PIT 70 mil. mt

UNONG PIT 12 mil. Mt ( Depleted )

Total Land Area = 55 sq.km (5,500 hectares)

PANIAN PIT (ACTIVE) 17 mil. Mt Remaining

HIMALIAN 82 mil. mt

Tuong UG 12 mil. mt

Proposed UG

MOLAVE PIT 90 mil. MT*

*Pending verification

September 2015 7 *Molave Mine's coal resource es7mate of 90MT pending verifica7on

September 2015

SEMIRARA: COAL

8

7.1 6.5 7.2 7.6

8.9

4.2

Semirara accounts for 97% of coal production in the Philippines

Market share of power plants increased to 45% of sales volume and 46% of gross revenues in 2015, displacing export sales, due to more reliable performance of Calaca plants

September 2015

SEMIRARA: POWER (On-‐Grid)

•Revenue and Net Income went down in 2014 because of unavailability of Unit 2. •1H 2015 Revenue & Net Income are up & margins have recovered. •We have begun paying regular corporate income tax this year (2015).

9

September 2015

10

PROPERTY DEVELOPMENT • Middle income residential developer: mid-rise and high-rise condominiums

•DMCI Homes exploring new format and product line for faster growth

September 2015

11

• Strong ROE’s reflective of the Company’s synergy with DMCI •Consistent income margins in spite of lower pricing relative to competition

PROPERTY DEVELOPMENT

14,710 17,170 17,060

18,800 20,170

7,540 8,120 9,000 11,700 12,230

2010 2011 2012 2013 2014

Sales Revenue

FINANCIAL HIGHLIGHTS

38%

50% 52% 45% 48%

17% 23% 24% 22%

27%

2010 2011 2012 2013 2014

Gross Proit Margin Net Profit margin

Sales & Revenue (PHP’m) Gross and Net Income Margin

19% 23%

27% 27% 28%

7% 8% 8% 7% 8%

2010 2011 2012 2013 2014

Return on Equity Return on Asset

Return on Equity and Asset

•  Rapid sales and revenue growth driven by the Company’s value-for-money philosophy which

•  Consistent income margins by effective management of expenses •  Improving Return on Equity reflective of the Company’s synergy with DMCI

Almost 35,000 units sold More than 20,000 turned over

•

GP a s apercentage of sale say that in the charts –

why is isincresing becaue you make a correc7on on finished units actual price is lower than your es7mated proice and you add it the oflloing year what you did not spend in previous competed a lot of prjin 2013 adj in costs reflected in a higher margin in the following hyear

September 2015 12

September 2015

CONSTRUCTION

13

• ENGINEERING TALENT with around 700 civil engineers and x number in workforce – capable of taking on complex jobs • ABILITY TO MOBILIZE QUICKLY with size of equipment inventory with over Php 7 billion in inventory • EXCEPTIONAL REPUTATION built up over the past 60 years as AAA contractor. Proven track record in completing projects on time or ahead of schedule.

September 2015

CONSTRUCTION

14

8.6

22.5

15.7 21

18.5

31.7

5.2 10.2

4.6 3.2 3.6 3.4

2.8

1.2

1.5 11 9.8

23.9

0.6 0.5

0.5

0.7 2.9

1.2

-‐

10.6

9.1

6.1 2.2

3.2

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014 1H 2015

in Php

billions

Order Book Breakdown: EOY 2010 to End of Period 1H 2015

Buildings INFRA Water Power

• Order Book at an all-time high at Php 31.7 billion – up from 18.5 as of EOY 2014

September 2015

MAYNILAD

•In spite of regulatory issues, the Company was able to grow its net income 22% in 1H 2015 from the same period last year.

15

September 2015

MAYNILAD

16

•LARGEST PRIVATE WATER CONCESSIONAIRE in the Philippines in terms of customer base. •NRW at a historic low

ZDMC’s MPSA Area located in the province of Zambales (Region 3)

BNC’ MPSA and Tenement Area located in the province of Palawan (Region 4) LocaEon Area

(Ha) Resource EsEmate (MT)

Reserve, MT

Nickel Grade

Longpoint 2,358 108 No Data 1.1-‐1.8%

Morsoom 5,889 43 No Data 1.0-‐1.5%

Dangla 1,053 118 No Data 1.2-‐1.4%

Berong 288 27 11.6* 1.2-‐1.8%

TOTAL 9,588 296 11.6* 1.0-‐1.8%

LocaEon Area (Ha)

Resource EsEmate (JORC), MT

Reserve, MT Nickle Grade

Municipali7es -‐ Sta. Cruz & Candelaria

3,765 69 29* 0.8-‐2.0%

*(as of August 2015) September 2015 17

GRAND TOTAL

22,941 365 40.6* 0.8-‐2.0%

Berong (BNC) • DMCI Mining took over operations in January 2014 and, since the takeover, the Average Cash Cost has dropped dramatically. •Margins therefore are much higher now (as of 1H 2015) even in the face of weak global commodities prices

September 2015 18

Zambales (ZDMC) •DMCI Mining took over operations in 2013 – but only operated for 4 months • Then, in 2014, the Company operated the mine for only 3 months because of the issuance of a Cease and Desist Order (CDO) • Operations remain suspended in 1H 2015. However, the Company exported inventory

September 2015 19

• In just a matter of five (5) years of operations, DPC has increased its total installed capacity in three major off-grid areas (Masbate, Palawan, Oriental Mindoro) by 300% or from 24.4MW to 74.03 MW.

September 2015 20

DMCI Power: Off-‐Grid

September 2015

MASBATE, PALAWAN & ORIENTAL MINDORO

21

• Increasing energy consumption results in higher power sales & profitability

September 2015

“Revenue stream of DMCI Power’s operations in the Off-Grid areas is assured on a long-term basis”

22

Fuel is “pass-through” “HIGHER CASH MARGINS IN THE OFF-GRID AREAS COMPARED TO GRID”

September 2015 23

Business

Semirara Coal • Verifying resource es7mate in new mine (Molave).

• Poten7al to ramp up produc7on over next 2-‐3 years.

Semirara Power

• 2x150MW expansion expected to be commercially available by last quarter of 2015. The new

plants will run on CFB technology – which make them capable of running on waste-‐coal.

• Another expansion (2x350MW) with a strategic partner planned for end-‐2015 or early 2016.

Property • Expanding product line and developing a new format. Will expand outside Metro Manila.

• Current landbank of 109 hectares good for 4-‐5 years’ worth of projects.

Construc7on

• Poised to benefit directly from implementa7on of PPP projects as Government is likely to

increase spending to 5%-‐6% of GDP.

• Track-‐record capacity to mobilize and engineering exper7se give Company its compe77ve

edge.

Water • Focused on expanding in areas just outside of the West Zone: Laguna, Cavite & Bulacan.

Nickel • Plans to expand permised areas while remaining cost efficient.

Off-‐Grid Power • Well-‐posi7oned to take advantage of suppressed demand in off-‐grid areas;

MOVING FORWARD

Disclaimer •  The informa7on contained in this document is strictly confiden7al. Neither DMCI Holdings, Inc.

(DMCI), nor its advisors make any representa7on regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in any informa7on contained herein. Such informa7on is subject to change without no7ce, its accuracy is not guaranteed and it may not contain all material informa7on concerning DMCI.

•  In addi7on, this document contains certain financial informa7on and results of opera7on, and may

also contain certain projec7ons, plans, strategies, and objec7ves of DMCI, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertain7es that may cause actual events and DMCI’s future results to be materially different than expected or indicated by such statements. No assurance can be given that the results an7cipated by DMCI, or indicated by any such forward looking statements, will be achieved.

•  This document is not an offer of securi7es for sale in the United States. Securi7es may not be offered or sold in the United States absent registra7on under the United States Securi7es Act of 1933, as amended (the “Securi7es Act”) or an exemp7on from such registra7on. This document is not an offer to sell securi7es or a solicita7on of an offer to buy securi7es in any jurisdic7on where such offer or sale is not permised.

September 2015 24

September 2015 25

APPENDIX

ANALYST BRIEFING 1H 2015 Results

Monday, 24 August 2015 Training Room, DMCI Annex 2278 Pasong Tamo, Ext.

September 2015 26

Agenda

•  DMCI Holdings’ Share in Net Income •  Business Segment 1H 2015 Results:

Semirara Mining & Power Corporation

DMCI Homes (Property) Maynilad DMCI Mining (Nickel) DMCI Power (Off-Grid) D.M. Consunji, Inc. (Construction)

•  Parent Balance Sheet

September 2015 27

Holdings’ Share in Net Income Unaudited

(In Million Php) 1H 2015 1H 2014 Change

Semirara (56%) 2,670 1,504 78%

Property Development 1,717 1,653 4%

Maynilad (25%) 1,148 943 22%

Nickel Mining (75%) 454 365 24%

Off-Grid Power 215 125 72%

Construction 333 591 -‐44%

Parent & Others 52 (53) 198%

Net Income 6,589 5,128 28%

September 2015 28

Contribution to Net Income

5%

26%

41%

17%

3% 7%

1% 0%

1H 2015

September 2015

11%

32%

29%

18%

3% 7%

0% 0%

1H 2014

Construc7on

Property

Semirara

Maynilad

Off-‐Grid Power

Nickel

Parent

29

Semirara (Consolidated) Unaudited


Revenues 13,717 13,979 -‐2%

COS & Operating Expenses (7,046) (10,174) -‐31%

EBITDA 6,671 3,805 75%

Depreciation & Amortization (1,107) (1,129) -‐2%

Interest Expense (151) (145) 4%

Interest Income 22 24 -‐8%

Other Income (Expense) 182 121 50%

Benefit (Provision) for Income Tax (891) (5) 17,720%

Net Income 4,726 2,671 77%

Net Income for Non-Controlling (2,056) (1,167) 76%

Net Income for DMCI Holdings, Inc. 2,670 1,504 78%

September 2015 30

Semirara (Coal) Unaudited


Coal Revenues 6,526 9,051 -‐28%


EBITDA 1,944 3,297 -‐41%

Depreciation & Amortization (591) (633) -‐7%


Interest Income 15 10 50%


Benefit (Provision) for Income Tax (2) (2) 0%

Net Income 1,420 2,701 -‐47%

Net Income for Non-Controlling (620) (1,180) -‐47%

Net Income for DMCI Holdings, Inc. 800 1,521 -‐47%

September 2015 31

Semirara Coal Sales 1H 2015 vs. 1H 2014

4.3

1.9 1.9 0.9

1.2

0.5 1.1

0.5

0.6

0.2 0.5

0.2

3.3

1.6

6.6

2.9

0

2

4

6

8

10

Rev. 1H 2015 Vol. 1H 2015 Rev. 1H 2014 Vol. 1H 2014 Revenu

e (billion Ph

p) / Volum

e (m

illion MT)

Power Cement Others Export

September 2015

ASP 2,300

ASP 2,149

32

Semirara (Power) Unaudited


Power Revenues 7,191 4,928 46%


EBITDA 4,727 508 831%

Depreciation & Amortization (516) (496) 4%




Benefit (Provision) for Income Tax (889) (3) 29,533%

Net Income 3,306 (30) NM

Net Income for Non-Controlling (1,436) 13 NM

Net Income for DMCI Holdings, Inc. 1,870 (17) NM

September 2015 33

Property Development Unaudited


Real Estate Revenues 6,992 6,483 8%


EBITDA 2,435 1,886 29%


Interest Expense (244) (247) -‐1%


Other Income (Expense) 256 680 -‐62%

Benefit (Provision) for Income Tax (736) (647) 14%

Net Income 1,717 1,653 4%

Net Income for Non-Controlling – – –

Net Income for DMCI Holdings, Inc. 1,717 1,653 4%

September 2015 34

Property Development Sales and Reservations 1H 2015 vs. 1H 2014

76% 70%

9% 14%

14% 14% 1% 5%

1H 2015 1H 2014

Increase in Bank Financing

Forecast

Cash

In-‐House

Bank Financing

September 2015

(in million Php)

1H 2015 1H 2014 Change

Sales & Reservations

4,689 4,571 3%

Total P10,441 P10,075 4%

35

Higher Bank-Financing = Lower Risk

33%

48%

32% 25%

13% 7%

49%

37%

55% 62%

72% 79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2010 2011 2012 2013 2014 2015

Percen

tage of S

ales per Year

Bank Financing On the Rise: 2010-‐2015

IN-‐HOUSE

BANK

September 2015 36

Maynilad Holdings Unaudited

September 2015


Revenues 9,336 8,996 4%


EBITDA 6,952 6,237 11%

Depreciation & Amortization (1,285) (1,169) 10%

Interest Expense (1,050) (1,085) 3%


Other Income (Expense) (285) (427) -‐33%

Benefit (Provision) for Income Tax 156 124 26%

Net Income 4,548 3,736 22%

Net Income for Non-Controlling (325) (267) 22%

Net Income for Maynilad Holdings 4,223 3,469 22%

Net Income for DMCI Holdings, Inc. 1,148 943 22%

37

Maynilad Operating Performance 1H 2015 vs 1H 2014

0

50

100

150

200

250

300

350

400

1H 2015 1H 2014

32.3 34.4

238.53 229.52

352.34 349.72

NRW %

Billed Volume (MCM)

Water Supply (MCM)

September 2015 38

Nickel Mining Unaudited

(In Million Php) 1H 2015 1H 2014* Change

Nickel Ore Revenues 2,166 212 922%*

COS and Operating Expenses (912) (209) 336%

Equity in Net Earnings – 206

EBITDA 1,254 209 500%


Interest Expense – – NM

Interest Income 1 – NM

Other Income (Expense) (52) 190 -‐127%

Benefit (Provision) for Income Tax (309) 28 -‐1,204%

Net Income 620 369 68%

Net Income for Non-Controlling (166) (4) –

Net Income for DMCI Holdings, Inc. 454 365 24% September 2015 39

Off-Grid Power Unaudited


Power Revenues 1,077 889 21%

COS and Operating Expenses (787) (701) 12%

EBITDA 290 188 54%



Interest Income – – NM

Other Income (Expense) 6 – NM

Benefit (Provision) for Income Tax (15) (17) -‐12%

Net Income 215 125 72%

Net Income for Non-Controlling – – –

Net Income for DMCI 215 125 72%

September 2015 40

Construction Unaudited


Construction Revenues 6,369 7,752 -‐18%

COS and Operating Expenses (5,548) (6,620) -‐16%

EBITDA 821 1,132 -‐27%


Interest Expense (23) – NM



Benefit (Provision) for Income Tax (116) (167) -‐31%

Net income 333 591 -‐44%

Net Income for Non-Controlling – – 0

Net Income for DMCI Holdings, Inc. 333 591 -‐44%

September 2015 41

DMCI Holdings, Inc.

September 2015 42

ir presentation september 2015 3 - dmci holdings · 14,710 17,170 17,060 18,800 20,170 7,540 8,120...

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