Dmci Holdings Inc. · PSE:DMC
Dmci — Q2 2024 Earnings Presentation
43 slides from Dmci's earnings presentation, September 2024
Slide 1: Q2/H1 2024 Investor Presentation
Q2/H1 2024 Investor Presentation September 2024
Slide 2: Table of Contents
Table of Contents 3 About DMC 11 2Q24 Results Summary, Updates and Outlook 5 The DMCI Creed 20 DM Consunji, Inc. 6 Our Businesses 21 DMCI Homes 7 Business Footprint 22 Semirara Mining and Power Corporation 8 Investment Proposition 23 DMCI Power 9 Shared Value 24 DMCI Mining 10 Awards 25 Maynilad 26
Slide 3: About DMCI Holdings
INTRODUCTION About DMCI Holdings § The only publicly listed holding company in the Philippines that has engineering and construction as its core competency § Included in the Philippine Stock Exchange Index (PSEi), PSE Dividend Yield (PSE DivY) Index, Bloomberg Gender Equality Index (GEI) and MSCI Ph
Slide 4: Key Figures
INTRODUCTION Key Figures As of the end of June 2024 unless otherwise stated Years listed Market Capitalization Dividend Yield 28 ₱147.9 B 13.6% 12-month dividend / VWAP Return on Equity Mining Capacity Generation Capacity 10% 18 MMT 1.06 GW H1 2024 Annual, coal and nickel On-grid and off-grid power
Slide 5: DMCI Creed
INTRODUCTION DMCI CREED We believe: That construction is a noble profession That labor and capital should cooperate with whose activities are vital to economic one another so that labor may live with development and national progress; dignity and capital may find its just rewards; That fair competit
Slide 6: Business Portfolio
INTRODUCTION Business Portfolio • We invest in construction and engineering related-businesses • Our companies are pioneers and key players in their respective industries D.M. CONSUNJI, INC. (100%) DMCI POWER (100%) Builder of landmarks Largest off-grid energy supplier DMCI HOMES (100%) DMCI MINING
Slide 7: Geographic Footprint
INTRODUCTION Geographic Footprint • We invest exclusively in the Philippines • Our investments are mostly outside of Metro Manila • We create jobs and livelihood opportunities in undeveloped, underdeveloped and far-flung areas INVESTMENT ENGINEERING EARTH-MOVING DMC DMCI Power SMPC (mine site) Mayni
Slide 8: Investment Proposition
INTRODUCTION Investment Proposition Strategic Business Portfolio Healthy Balance Sheet • Resilient cash-generating energy and water • Current assets total to Php 152 billion businesses • Current ratio at 298% • Real estate, construction and mining well- • Net debt to equity at 12%, among the lowest
Slide 9: Shared Value
INTRODUCTION Shared Value As of 2023 Employees and Environment Government and Workers Host Community 35,495 ₱1.71 bn ₱9.65 bn Total Workforce Rehabilitation Spending Royalties Paid 10,330 1,875 ha ₱13.81 bn Non-Metro Manila Habitats Adopted Taxes Paid Employees 547,412 186,305 397 Consolidated Train
Slide 10: Awards and Recognitions
INTRODUCTION Awards and Recognitions • Best Senior Management • Included in Bloomberg For two straight years (2023 and 2024): • 3 Golden Arrow Award • Investor Relations Support Gender Equality Index for • Asia’s Best CEO – Mr. Isidro A. Consunji • Consistently outperformed peers (4th place) three c
Slide 11: Q2 2024 Financial Performance
INTRODUCTION Q2 2024 Financial Performance Record utility earnings buffer top contributors' weakness In Php mn Q2 2024 Q2 2023 Change KEY TAKEAWAYS SMPC (56.65%) 3,419 5,765 -41% § Quarterly earnings receded on weaker results of SMPC, DMCI Homes and DMCI Mining DMCI Homes 737 1,255 -41% § Slid 1% Qo
Slide 12: H1 2024 Financial Performance
INTRODUCTION H1 2024 Financial Performance Commodities and real estate weigh heavily on group results In Php mn H1 2024 H1 2023 Change KEY TAKEAWAYS SMPC (56.65%) 7,110 10,879 -35% § Semestral earnings contracted on reduced contributions from SMPC, DMCI Homes DMCI Homes 1,421 2,248 -37% § Robust res
Slide 13: Balance Sheet Key Takeaways
INTRODUCTION In Php mn Jun 2024 Dec 2023 Change KEY TAKEAWAYS Cash and cash equivalents 29,697 32,158 -8% § Total assets down 2% on lower cash, contract assets, fixed Receivables and contract asset 50,669 53,408 -5% Inventories assets and prepaid expenses 68,320 67,902 1% Investments in associates 2
Slide 14: Q2/H1 2024 Financial Results Summary
INTRODUCTION Q2/H1 2024 Financial Results Summary Record utility earnings buffer top contributors' weakness Project delays and fewer contracts Earnings climb for the 13th straight dampen results quarter Lagged effects of the pandemic Soft market weighs heavily on slash toplines performance Cooling p
Slide 15: Updates and Outlook
Updates and Outlook Macroeconomic challenges present both risks and opportunities Focus on large-scale industrial and Continued expansion in Palawan and infrastructure projects to boost order Semirara Island to address growing book demand Two project launches in H2 2024; Ongoing permitting for new m
Slide 16: Cemex Asian South East Corporation (CASEC) Acquisition
CORPORATE UPDATE Cemex Asian South East Corporation (CASEC) Acquisition INVESTMENT RATIONALE Our acquisition is driven by a bullish outlook on cement demand, along with the compelling combination of Growth Opportunities Attractive Valuation Management Quality attractive valuation, solid management a
Slide 17: CASEC Acquisition
CORPORATE UPDATE CASEC Acquisition OVERVIEW DMC is indirectly acquiring a majority stake (51%) in CHP, while its subsidiary SCC is indirectly acquiring 10%. Post-transaction, the DMCI Group will hold an effective ownership of 56.65% in CHP. DMC (56.75%) Public SCC (11.75%) 10.14% APO Cement 100% (Ce
Slide 18: CASEC Valuation
CORPORATE UPDATE CASEC Valuation INVESTMENT HIGHLIGHTS Enterprise Value USD 660 mn Equity Value USD 305.6 mn Total Investment USD 173.43 for 56.75% stake Financing Plan Bond or Preferred Shares Estimated Timeline December 1, 2024 (Target) CAVEAT: Data presented on this slide are preliminary and base
Slide 19: CASEC Acquisition Updates and Estimated Timeline
CORPORATE UPDATE CASEC Acquisition Updates and Estimated Timeline Key Updates 3Q 2024 4Q 2024 2025 3rd Quarter § Filed application with § PCC Decision (target) § Payment of MTO REGULATORY Philippine Competition § Launch Mandatory Commission (PCC) in Tender Offer (target) June; info gathering § Final
Slide 20: D.M. Consunji, Inc.
INTRODUCTION Founded in 1954 by the “Grandfather of Philippine Construction Industry”, D.M. Consunji, Inc. (DMCI) is one of the leading engineering-based integrated construction firms in the country. To date, it has completed over 1,100 projects of varying scale and complexity. ₱7.31 B ₱417 M ₱41.0
Slide 21: DMCI Homes
INTRODUCTION Founded in 1999 to address the surge in demand for urban homes, DMCI Homes is one of the leading mid-segment developers in the Philippines. After pioneering resort-like condominium living in the Philippines, it went on to develop a patented green architecture design technology called Lu
Slide 22: Semirara Mining and Power Corporation
INTRODUCTION Semirara Mining and Power Corporation (SMPC) is the largest coal producer in the Philippines, and the only power generator in the country that produces its own fuel (coal). It supplies baseload power to the national grid through its subsidiaries Sem-Calaca Power Corporation (SCPC) and S
Slide 23: DMCI Power
INTRODUCTION DMCI Power Corporation (DPC) was established in 2006 to provide affordable electricity to small and remote islands in the Philippines. It currently operates and maintains thermal, bunker and diesel plants in parts of Masbate, Oriental Mindoro and Palawan. 15MW Palawan Thermal Plant sync
Slide 24: DMCI Mining
INTRODUCTION In 2007, DMCI Mining Corporation was formed to engage in ore, metal and mineral exploration, development and shipping, among others. It has one operating nickel mining asset, Zambales Diversified Metals Corporation (ZDMC). Its other asset, Berong Nickel Corporation (BNC), is working on
Slide 25: Maynilad
INTRODUCTION Maynilad Water Services, Inc. (Maynilad) is the largest water distributor in the Philippines based on customer base. It has a 25-year legislative franchise to establish, operate and maintain the waterworks system in the West Zone of the Greater Manila Area. ₱16.44 B ₱5.76 B ₱1.40 B Reve
Slide 26: Annex
Annex § 10-Year Performance § Historical Financial and Operating Results § Consolidated § DMCI § DMCI Homes § SMPC § DMCI Power § DMCI Mining § Maynilad § Other Updates 26
Slide 27: 10-Year Performance
10-Year Performance Dividend Performance Total Assets and Market Capitalization In Php bn 300.0 25.00 250% 250.0 20.00 200% 200.0 15.00 150% 150.0 10.00 100% 100.0 5.00 50% 50.0 - 0% H1 2015 2016 2017 2018 2019 2020 2021 2022 2023 - 2024 Total Cash Dividends* 0.48 0.48 0.48 0.96 0.48 0.48 0.96 1.20
Slide 28: Historical Financial Performance: Consolidated results
Historical Financial Performance Consolidated results In Php mn Q2 2024 Q2 2023* % H1 2024 H1 2023* % 2023 2022 2021 2020 Construction 240 139 73% 338 412 -18% 573 630 929 121 Real Estate 737 1,255 -41% 1,616 2,249 -28% 4,675 4,469 4,721 1,370 Integrated Energy 3,419 5,765 -41% 7,110 10,879 -35% 15,
Slide 29: Construction Financial Highlights
CONSTRUCTION FINANCIAL HIGHLIGHTS Project delays and fewer contracts dampen results Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Revenues down on project delays and fewer Revenues 3,615 4,209 -14% 7,309 8,720 -16% ongoing projects, reducing construction activity COS 3,118
Slide 30: Construction Operating Highlights
CONSTRUCTION OPERATING HIGHLIGHTS Revenues Breakdown (in Php mn) 20,930 Revenue Breakdown 20,260 19,499 In Php mn Q2 2024 Q2 2023 Change 3,040 17,010 2,271 1,487 16,509 1,625 3,041 2,414 1,710 Building* 2,348 2,505 -6% 4,832 7,248 4,187 3,172 6,384 Infrastructure 343 747 -54% 6,707 2,432 7,309 5,047
Slide 31: Real Estate Financial Highlights
REAL ESTATE FINANCIAL HIGHLIGHTS Lagged effects of the pandemic slash toplines Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Revenues slumped on lower recognition from Revenues 3,457 5,887 -41% 6,518 10,736 -39% ongoing and newly-qualified accounts, and COS 2,066 3,811 -46%
Slide 32: Real Estate Operational Highlights
REAL ESTATE OPERATIONAL HIGHLIGHTS Sales and reservations (in units) Ave. selling price 10,628 8 0.20 Key Metrics Q2 2024 Q2 2023 Change 6.82 7.10 6 6.1 6.24 0.15 8,284 5.31 5.51 7,701 Sales and reservations (units) 1,718 1,289 33% 4,345 4 0.10 2,897 Residential units 1,260 711 77% 5,353 5,180 3,375
Slide 33: Integrated Energy Financial Highlights
INTEGRATED ENERGY FINANCIAL HIGHLIGHTS Cooling prices moderate the impact of increased sales volume Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Revenues dropped on double-digit declines Revenues 18,168 23,865 -24% 36,594 44,573 -18% in ASP, slightly offset by increased co
Slide 34: Coal Operating Highlights
COAL OPERATING HIGHLIGHTS Commercial-grade coal Production & Strip Ratio ending inventory (in MMT) Q2 2024 Q2 2023 Change 12.5 Strip Ratio (S/R) 11.3 12.2 11.0 11.9 9.9 Aggregate* 11.4 17.7 -35% 16.0 16.0 1.1 1.2 15.2 14.3 Effective** 11.4 17.7 -35% 13.2 0.8 0.9 10.2 0.7 Production (in MMT) 5.2 3.0
Slide 35: On-Grid Power Operating Highlights
ON-GRID POWER OPERATING HIGHLIGHTS Ave. Capacity (in MW) & Availability (in %) Gross Generation (in GWh) Key Metrics Q2 2024 Q2 2023 Change 900 100% 778 4,677 4,890 710 749 739 706 672 Plant Availability (%) 81% 80% 1% 700 86% 80% 3,589 3,959 3,735 1,698 286 284 81% 1,554 293 SCPC 71% 84% -15% 500 2
Slide 36: Off-Grid Power Financial Highlights
OFF-GRID POWER FINANCIAL HIGHLIGHTS Earnings climb for the 13th straight quarter Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Revenues up on increased power sales amid Revenues 2,156 2,063 5% 3,855 3,777 2% declining selling prices COS 1,603 1,675 -4% 2,841 3,115 -9% OPEX
Slide 37: Off-Grid Power Operating Highlights
OFF-GRID POWER OPERATING HIGHLIGHTS Gross Generation (in GWh) Installed Capacity (in MW) Key Metrics Q2 2024 Q2 2023 Change 159.8 159.8 Gross Generation (in GWh) 149.7 132.0 13% 447.4 479.7 136.4 136.4 136.4 30.0 30.0 388.0 100.6 117.3 Masbate 50.8 46.0 10% 336.1 370.9 103.5 - 15.0 15.0 15.0 Palawan
Slide 38: Nickel Financial Highlights
NICKEL FINANCIAL HIGHLIGHTS Soft market undermines topline performance Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Revenues slumped on cooling index prices, Revenues 437 1,080 -60% 1,029 2,392 -57% lower average nickel grade sold and reduced COS 206 317 -35% 485 557 -13%
Slide 39: Nickel Operational Highlights
NICKEL OPERATIONAL HIGHLIGHTS Production and Shipment Ending Inventory (in WMT ‘000) (in WMT ‘000) Key Metrics Q2 2024 Q2 2023 Change 1,945 Production* (in WMT ‘000) 328 523 -37% 1,648 1,680 1,449 Shipment* (in WMT ‘000) 322 487 -34% 1,172 Inventory (in WMT ‘000) 116 131 -11% 1,788 795 453 469 1,584
Slide 40: Water Financial Highlights
WATER FINANCIAL HIGHLIGHTS Stellar results on higher billed volume, better tariff Q2 Q2 H1 H1 KEY TAKEAWAYS In Php mn Change Change 2024 2023 2024 2023 § Best-ever earnings for the reporting periods Revenues 8,414 7,090 19% 16,441 13,313 23% Total cash cost 2,819 2,553 10% 5,424 4,780 13% § Strong r
Slide 41: Water Operational Highlights
WATER OPERATIONAL HIGHLIGHTS Key Metrics Q2 2024 Q2 2023 Change Production and Billed Volume Customer Mix Production* (in MCM) 193.0 194.8 -1% 727.3 725.8 762.3 756.2 774.8 19.7% 16.2% 16.1% 17.3% 18.4% 18.4% 535.3 536.4 519.6 526.9 538.5 Billed Volume (in MCM) 141.9 137.5 3% 385.2 276.6 80.1% 83.8%
Slide 42: 2023 Annual and Sustainability Reports
OTHER UPDATES 2023 Annual and Sustainability Reports The year 2023 was marked by a confluence of economic challenges and This Sustainability Report provides a comprehensive and transparent uncertainties that tested the resilience of the global and Philippine economies. assessment of the environmenta
Slide 43: Disclaimer and Contact Information
DISCLAIMER Neither DMCI Holdings, Inc. (DMCI), nor its advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in any information contained herein. Such information is subject to change without notice, it