Dmci Holdings Inc. · PSE:DMC
Dmci — Investor Presentation (April 2014)
49 slides from Dmci's investor presentation, April 2014
Slide 1: DMCI Holdings, Inc.
DMCI Holdings, Inc. 3/F, DACON Building 2281 Pasong Tamo Ext. Makati 1231 Philippines Dr. Victor Limlingan, Managing Director April 2014 1
Slide 2: Disclaimer
Disclaimer • The information contained in this document is strictly confidential. 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 con
Slide 3: The DMCI Group: Engineering Expertise
The DMCI Group: Engineering Expertise 3
Slide 4: Contents
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 4
Slide 5: History of DMCI
History of DMCI • Founded in 1954, it is acknowledged as one of the leaders in the Philippine construction industry • Built more than 500 buildings & structures (including national landmarks) • One of the first to use precast, pre-stressed & high-strength ready-mixed concrete 5
Slide 6: David M. Consunji, Founder
David M. Consunji Founder • “…building is not just an occupation or even just a profession, but a calling. • Constructing honestly and well is a task that combines huge social value, enormous technical challenges, and a great ethical obligation to be fair to clients and employees.” 6
Slide 7: Contents
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 7
Slide 8: The DMCI Group: Subsidiaries
The DMCI Group: Subsidiaries Listed subsidiaries NAV (Pm)* Stakes *April 2014, CLSA Semirara 67,830 56% Unlisted subsidiaries Maynilad Water 25,805 25% DMCI Homes 49,299 100% Construction 39,576 100% DMCI Power 7,095 100% DMCI Mining 2,552 100% (ex - TMC) Toledo Mining 989 93% ENK Plc Not available
Slide 9: The DMCI Group: Net Income & NAV
The DMCI Group: Net Income & NAV Net Income Php NAV (Pm)* Subsidiaries After Minority Interest, For the year ended *April 2014, CLSA % of 2013 December 31, 2013 (In Mn Php) Semirara & 7% 4,246 67,830 Sem-Calaca (5% & 2%, respectively) Maynilad Water 1,915 25,805 7% (DMCI - MPIC) DMCI Homes 2,655 49,
Slide 10: The DMCI Group: Book Value vs Market Price
The DMCI Group: Book Value vs Market Price Listed subsidiaries NAV Book value (PhP) NAV/BK** April 2014, CLSA 2013 Semirara 67,830,000,000 20,127,511,704 3.37 Unlisted subsidiaries Maynilad Water 25,805,000,000 20,602,000,000 1.25 DMCI Homes 49,299,000,000 9,553,392,140 5.16 Construction 39,576,000,
Slide 11: The DMCI Group: Net Income & Book Value
The DMCI Group: Net Income & Book Value Net Income Php Book value (PhP) Subsidiaries After Minority Interest, For the year ended 2012 % of 2013 December 31, 2013 (In Mn Php) Semirara & Sem- 25% Calaca 4,246 20,127,511,704 (6% & 19%, respectively) Maynilad Water 1,915 20,602,000,000 11% (DMCI - MPIC)
Slide 12: Contents
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 12
Slide 13: DMCI Holdings, Inc.: Portfolio
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 13
Slide 14: Power
Power Sem-Calaca: 1,000 MW expansion in addition to existing 600 MW capacity. Phase 1: ongoing construction of 2x150 MW plants (CFB). Phase 2: planned construction of 2x350 MW plant (pulverized coal) 14
Slide 15: Construction Progress (1 of 2)
94% 61% 100% Main Powerhouse Boiler Steel Structure Coal Yard Construction Progress (1 of 2) As of March 2014 15
Slide 16: Construction Progress (2 of 2)
94% 94% 94% Chimney ESP Area Circulating Water Trench Construction Progress (2 of 2) As of March 2014 16
Slide 17: Power (Sem-Calaca)
Power (Sem-Calaca) BEFORE 2009 AFTER 2012 2013 Generation (GWh) 181 Generation (GWh) 2, 463 3,638 Revenue (Php Mn) 444 Revenue (Php Mn) 9, 700 14,760 Net Income (PhP Mn) 59 Net Income (PhP Mn) 3, 280 5,780 Purchase Price (Php Mn) 16, 290 100% owned by SCC NAV (Php Mn)* 64,600 64,600 * Based on CLSA
Slide 18: Construction
Construction Awards ~ TPLEX, NAIA Expressway & MRT 7; Prospects ~ Metro Manila Skyway, LRT 1 Ext. & CALA Expressway; NLEX-SLEX Connector Rd., LRT Line 2 East Ext., & C-6 Skyway (Stage 4) 18
Slide 19: Award 1: TPLEX Expressway
Award 1: TPLEX Tarlac-Pangasinan-La Union-Expressway 15B Php* 19 * 15B Php out of 20B Php total for the entire project
Slide 20: Awards 2: MRT-7
Awards 2: MRT - 7 20B Php 20
Slide 21: Award 3: NAIA Expressway
Award 3: NAIA Expressway 10B Php 21
Slide 22: Award 4: NAIA Terminal 1 Rehab
Award 4: NAIA Terminal 1 Rehab 1.3B Php Construction Period: January 2014 – January 2015 Project inclusions: Architectural works, improvement of mechanical, electrical and plumbing, and structural retrofitting 22
Slide 23: Award 5: NAIA Expressway At-Grade Works
Award 5: NAIA Expressway At-Grade Works 849M Php Construction of the Embankment and Utilities for the At-Grade Portion of NAIA-X Project Proponent: Entertainment City Estate Management Inc. (ECEMI) At-Grade Entertainment City 23
Slide 24: Award 6: Connector Road (CITRA)
Award 6: Connector Road (CITRA)* 25B Php • Blue Segment = MPIC • Red Segment = CITRA • 5 km _Common Segment_ *No Photo Available: Award 2: Embankment 3B PhP & Award 3: Terminal 1 2B Php 24
Slide 25: Prospects 1: LRT-1 Extension
Prospects 1: LRT - 1 Extension 25
Slide 26: Prospects 2 and 3: Connector Road, CALA Expressway
Prospects 2: Connector Road (MPIC) (ABOVE LEFT: blue segment) Prospects 3: CALA Expressway (ABOVE RIGHT) 26
Slide 27: Prospects 4: C-6 (CITRA)
Prospects 4: C - 6 (CITRA) 50B Php estimated 27
Slide 28: DMCI Holdings, Inc.: Portfolio
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 28
Slide 29: DMCI Mining
DMCI Mining Improvement of operating capacity of nickel assets (ENK & TMC) underway. Long term option is to use Direct Shipping Ore to create capital to undertake nickel processing of lateritic nickel ore (<1.2% nickel ore) 29
Slide 30: Nickel Assets: ENK & Toledo
Nickel Assets: ENK & Toledo ENK TOLEDO Interest 100% 96.04% Berong, Long Point & Moorsom, Location Acoje, Zambales Ipilan, Ulugan Berong – 8.84 MT @ 1.55% nickel Acoje – 50.14 MT @1.08% nickel Long point & Moorsom – 120 MT Minerals @ 1.27 nickel Zambales - 23.5 MT @ 1.18% nickel Ipilan – 43.37 MT @
Slide 31: DMCI Power (SPUG)
DMCI Power (SPUG) Investing in off-grid areas & delivering power at a competitive price. Construction & operation of coal-fired plants in order to reduce cost or production to ~ Php 5.00/kWh. DMCI Power to use 100% Semirara coal. 31
Slide 32: SPUG Power Plants 1: Masbate Project
SPUG Power Plants 1: MASBATE PROJECT (24.4M LOCATION RATED CAPACITY FUEL TYPE aro BUNKER FOR MoBO NIIGATA / DIESEL 1X IMW MIT-KILTON / meni oer 17.4 MW LOCATION RATED CAPACITY FUEL TYPE 2X IMW CAT CATAINGAN 1X 2MW MIT-KILTON / DIESEL 4amw LOCATION RATED CAPACITY FUEL TYPE 2X 1MW CAT AROROY 1X 1 MIT-
Slide 33: SPUG Power Plants 2: Palawan Project
SPUG Power Plants 2: PALAWAN PROJECT (33.14MW) LOCATION [ RATED CAPACITY FUEL TYPE 18 X 1.21 MIT-AKSA 1X 1.268 MIT-KILTON IRAWAN 5X 1.25 CAT/ DIESEL 29.298 MW LOCATION RATED CAPACITY FUEL TYPE 3 X 1.268 MIT-KILTON / ABORLAN 3.804 MW DIESEL
Slide 34: SPUG Power Plants 3: Oriental Mindoro
SPUG Power Plants 3: 15MW Bunker Power Plant Oriental, Mindoro Location : Calapan, Oriental Mindoro Off-taker : Mindoro Electric Cooperative (ORMECO) Supply Cont : 20 yrs. Power Supply Agreement with Minimum Energy Off-take of 50.6GWh p.a. Est. Proj. Cost : PhP 900M 34
Slide 35: Infrastructure
Infrastructure • Proponent vs. Contractor 35
Slide 36: DMCI Holdings, Inc.: Portfolio
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 36
Slide 37: Coal
Coal Maintain production: 7.7 MTs/yr 37
Slide 38: Semirara (Coal Mining)
Semirara (Coal Mining) BEFORE 1996 AFTER 2012 2013 Production (‘000 MT) 806 Production (‘000 MT) 7,657 7,861 ROM Revenue (Php Mn) 654 Revenue (Php Mn) 14,450 12,573 Net Income (PhP Mn) (2, 335) Net Income (PhP Mn) 3,088 1,800 Total Consoliated FOB Price (Php Mn) 997 FOB Price (Php Mn) 2,454 2,185 Pu
Slide 39: Semirara Island: Mines & Deposits
Semirara Island: Mines & Deposits PANIAN -COAL SILICA BOBOG MINE CLAY UNONG-COAL 12 MILLION MT DEPLETED Earlier Studies LIMESTONE AustroMineral Contractors, 1980 to 1985 Dames & Moore, 1982 Geomontan, 1990 Monenco Consultants Limited, 1990 Minarco Asia HIMALIAN-COAL Pacific Pty, Limited, 2004 Queens
Slide 40: Real Estate
Real Estate Our “Hold” approach in Real Estate translates into modest growth. Target 10% year-on-year growth in sales from 2013 to 2014. Projected increase in 2013 to 2014 net income is also 10%. 40
Slide 41: Maynilad Water
Maynilad Water After the partial sale of its stake in Maynilad Water, DMCI Holdings maintains or “holds” at 25% ownership. 41
Slide 42: Water
Water BEFORE 2007 AFTER 2012 2013 Billed Volume (mcm) 286 Billed Volume (mcm) 428 444 Revenue (Php Mn) 7, 377 Revenue (Php Mn) 15,834 16,777 100% 100% Net Income (PhP Mn) 1, 666 Net Income (PhP Mn) 6,386 6,846 100% 100% NRW (%) 66.00 NRW (%) 43.47 38.71 Purchase Price (Php Mn) Market Value (Php Mn)
Slide 43: Arbitration: Maynilad's stance
Arbitration: Maynilad’s stance • Maynilad is a concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS) given the exclusive right to manage water and wastewater operations in the West Zone of the Greater Manila Area as defined in the Concession Agreement (CA) entered into by both par
Slide 44: Contents
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 44
Slide 45: DMCI Holdings, Inc. - Target Portfolio (2019)
DMCI Holdings, Inc. - Target Portfolio (2019) Portfolio 2014 2019 Grow Power 25% 30% Construction 25% 10% Develop DMCI Mining 0% 10% DMCI Power 0% 10% Infrastructure 0% 10% Hold Coal 15% 10% Real Estate 20% 10% Maynilad 15% 10% 45
Slide 46: 2014 Portfolio
2014 Portfolio ~ Maynilad Power Real Estate Construction Coal 46
Slide 47: 2019 Target Portfolio
2019 Target Portfolio ~ Maynilad Real Estate Power Coal Construction Infrastructure DMCI Power DMCI Mining 47
Slide 48: Contents
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 48
Slide 49: Pledge to Investors
Pledge to Investors • DMCI will seek a fair, not an over valuation of its shares • DMCI will focus on the long-term, not the short-term • DMCI will respect the rights of its Minority Stockholders 49