Dmci Holdings Inc. · PSE:DMC
Dmci — Shareholder Meeting (July 2013)
18 slides from Dmci's shareholder meeting presentation, Jul 31, 2013
Slide 1: President's Report
7/31/2013 President’s Report Annual Stockholders’ Meeting 31 July 2013 Manila Golf & Country Club Economic Performance GDP Growth (%): Philippines vs Other Asian Countries* 15 10 6.6 5 0 2008 2009 2010 2011 2012 ‐5 Philippines China Malaysia Indonesia Thailand Singapore Korea Taiwan *Data from NSCB
Slide 2: Sustained Performance
7/31/2013 Locally‐based industries Revenue Net Income Construction Real Estate Power Construction Real Estate Power 2011 2012 2011 2012 Globally‐linked industries Revenue Net Income Coal Nickel Coal Nickel 2011 2012 2011 2012 5 Sustained Performance 8% 2% ₱52 B ₱ 9.8 B ₱48 B ₱ 9.6 B ₱43 B ₱ 7.8 B 20
Slide 3: Multiple Drivers
7/31/2013 Multiple Drivers 50,000 Revenues 40,000 30,000 20,000 10,000 ‐ 2008 2009 2010 2011 2012 10,000 9,000 Net Income 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 ‐ 2008 2009 2010 2011 2012 Water Real Estate Power Coal Mining Construction Nickel Mining Parent 7 8 3
Slide 4: Growth in Private Sector; Building Projects Deliver Growth
7/31/2013 Growth in Private Sector Annual Construction Gross Value (in Php billions) 900 800 700 600 500 400 300 200 100 0 2010 2011 2012 *Data from NSCB website 9 Building Projects Deliver Growth 44% 9% ₱14.7 B ₱10.7 B ₱10.3 B ₱1.2 B ₱1.2 B ₱1.1 B 2010 2011 2012 2010 2011 2012 Revenues Net Income 1
Slide 5: PPP Rolled Out Projects
7/31/2013 PPP Rolled Out Projects LRT Line 1 South Cavite‐Laguna School Mactan‐Cebu Extension O&M Expressway Infrastructure International Project Airport NLEX‐SLEX Modernization of Rehabilitation, Automatic Fare Connector Road Phil. Orthopedic O&M of Angat Collection System Hospital Hydro‐Electric P
Slide 6: Delivering Exceptional Projects
7/31/2013 Delivering Exceptional Projects Tivoli Gardens (Iris) Royal Palm (Rawai) – 462 units – 840 units Maricielo Villas – 516 units Sienna Park – 985 units Accolade Place – 130 units 14 6
Slide 7: Robust Financial Growth
7/31/2013 Robust Financial Growth 15% 27% 9,5 00 ₱9.2 B 2,5 00 ₱2.2 B 9,0 00 2,0 00 ₱1.8 B 8,5 00 ₱8.2 B 1,5 00 ₱1.3 B 8,0 00 ₱7.7 B 1,0 00 7,5 00 500 7,0 00 0 6,5 00 2010 2011 2012 2010 2011 2012 Revenues Net Income 15 7
Slide 8: Cash Dividends Paid to DMCI-PDI; Operating Efficiencies
7/31/2013 Cash Dividends Paid to DMCI‐PDI 100 ₱94 M 90 Php 275 million 80 70 60 ₱58 M 50 ₱48 M ₱45 M 40 ₱30 M 30 20 10 0 2008 2009 2010 2011 2012 17 Operating Efficiencies 1200 60% 53% Supply 2% 1000 48% 50% 43% Billed Volume 6% 800 40% 803 600 776 758 30% NRW 5% 400 374 405 428 20% 200 10% 2012 Key
Slide 9: Capex; Financial Momentum Sustained
7/31/2013 Capex 10 Php 40 billion ₱9 B 9 ₱8 B 8 ₱7 B ₱7 B 7 ₱6 B 6 5 4 3 ₱3 B 2 1 0 2007 2008 2009 2010 2011 2012 19 Financial Momentum Sustained 15% 9% ₱15.8 B ₱13.8 B ₱6.4 B ₱12.0 B ₱5.9 B ₱4.8 B 2010 2011 2012 2010 2011 2012 Revenue Net Income 20 9
Slide 10: Expanding Shareholder Roster
7/31/2013 Expanding Shareholder Roster Effective Interest Pre‐deal Post‐deal Feb 2013 Ownership Ownership MPIC 56.80% 52.80% DMCI 40.98% 25.24% Marubeni – 20.00% ESOP/Others 2.22% 1.96% 100.00% 100.00% 21 10
Slide 11: Drop in Coal Prices
7/31/2013 Drop in Coal Prices 11% 7% 16.5 3,078 3,50 0 10.0 16 3,00 0 2,343 2,453 15.5 ₱16.2B 2,50 0 15 2,00 0 ₱3.3 B ₱3.1 B 14.5 1,50 0 ₱2.5 B 14 ₱14.4B 1,00 0 ₱14.2B 13.5 500 1.0 13 ‐ 2010 2011 2012 2010 2011 2012 Net Income Revenues FOB Price (Php/ton) 23 24 11
Slide 12: Rehab Boosted Generation; Sustained Growth
7/31/2013 Rehab Boosted Generation 32% 2,463 1,859 1,642 1,932 720 1,132 915 727 531 2010 2011 2012 Unit 1 Unit 2 Energy Generation (GWh) 25 Sustained Growth 1% 21% 15.0 4.90 4.75 5.00 ₱3.3 B 4.12 4.50 13.0 4.00 ₱2.7 B 11.0 ₱9.6 B ₱9.7 B ₱8.8 B 3.50 9.0 2.2 1.4 3.00 7.0 2.3 2.50 ₱1.4 B 2.00 5.0 7.4
Slide 13: Power Plant Expansion
7/31/2013 Power Plant Expansion • 2x150 MW capacity • Circulating Fluidized Bed (CFB) technology • Project completion in 2015 27 13
Slide 14: Effects of Reduced Price and Production Drop in Operating Results
7/31/2013 Effects of Reduced Price and Production Volume Sold 7% 1,800 1,600 235 1,400 63 745 1,200 1,000 Load Port 800 1,465 600 1,241 400 836 200 0 2010 2011 2012 Benguet Acoje Stockpile (In Thousand WMT) 29 Drop in Operating Results 22% 63% 3.5 1,872 1,900 1,556 1,700 ₱917 M 3 1,500 2.5 ₱2.4 B 1,
Slide 15: New Nickel Acquisitions
7/31/2013 New Nickel Acquisitions European Nickel (ENK PLC) Interest Acquired ‐ 60% Acquisition Cost ‐ USD 55 M Toledo Mining Corp. (TMC) Interest Acquired ‐ 68 % (17% as of 2012) Acquisition Cost ‐ USD 25 M (USD 5 M as of 2012) 31 15
Slide 16: Giving Back to the Community
7/31/2013 Giving Back to the Community Giving Back to the Community 16
Slide 17: Commitment to Shareholder Returns; Commitment to Lasting Value
7/31/2013 Commitment to Shareholder Returns (Amounts in Php) 4.00 3.50 3.00 2.50 Php 5.8 B 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 2012 EPS 0.64 1.77 2.96 3.61 3.69 Dividend Per Share* 0.20 0.50 1.00 1.20 1.20 Special Dividends* 0 0 0 0 1.00 *Paid subsequent year 35 Commitment to Lasting Value
Slide 18: End of Presentation
7/31/2013 End of Presentation Annual Stockholders’ Meeting 31 July 2013 Manila Golf & Country Club 18