Dmci Holdings Inc. · PSE:DMC
Dmci — Q2 2019 Earnings Presentation
44 slides from Dmci's earnings presentation, Aug 13, 2019
Slide 1: Analyst Briefing: 2nd Quarter of 2019 Financial & Operating Results
ANALYST BRIEFING 2nd Quarter of 2019 Financial & Operating Results East Board Room, DMCI Holdings, Inc. 13 August 2019
Slide 2: Contents
CONTENTS • DMCI Holdings Inc.: Net Income 2Q 2019 vs. 2Q 2018 • 2Q 2019 Business Unit Performance Coal & On-Grid Power (Semirara) Real Estate Development (DMCI Homes) Construction (DMCI) Nickel (DMCI Mining) Off-Grid Power (DMCI Power) Water Concession (Maynilad) • Parent Balance Sheet as of 30 June
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS 2Q 2019 FINANCIAL RESULTS 1H FINANCIAL RESULTS Core Net Income YoY Core Net Income YoY -6% -17% 2Q19 2Q18 1H19 1H18
Slide 4: Summary of Business Unit Performance
SUMMARY OF BUSINESS UNIT PERFORMANCE • 2Q19 Core Net Income +6% YoY Core Net Income YoY • 2Q19 Unit Sales +17% despite +29% increase in Price • YTD 2 projects launched; additional 4-5 launches scheduled in 3rd & 4th Quarter 2019 +6% • Landbank in 1H19 ~ 160 hectares, (majority NCR) vs. ~135 hectares
Slide 5: Summary of Business Unit Performance
SUMMARY OF BUSINESS UNIT PERFORMANCE Core Net Income YoY • Construction Revenues 1H19 +15% and +9% in 2Q19 YoY; Core Net Income 1H19 - 35% • PHP 2 Billion in newly awarded contracts -74% 2Q19; 2Q19 orderbook PHP 23.9 Billion • Signed NSCR (Malolos-Tutuban) contract Package 1 (in JV w/ TAISEI); direc
Slide 6: Summary of Business Unit Performance
SUMMARY OF BUSINESS UNIT PERFORMANCE • 2Q19 Core Net Income -58% due to -31% Core Net Income YoY decrease in ASP’s & lower nickel grade (approx. 10%) • 4 shipments in 2Q19; 1H19 13 shipments against: -58% • 1 shipments planned 3Q19 due to sea swells; 5-6 shipments planned for 4Q19 • 1H19 Stockpile:
Slide 7: Summary of Business Unit Performance
SUMMARY OF BUSINESS UNIT PERFORMANCE Core Net Income YoY • Net Income -4% 2Q19 due to Sultan Kudarat contract expiration & other cost (cash & non-cash) increases -4% • Costs offset by higher ASP’s • Total contracted capacity as of 2Q19: 61 MW against 63 MW YoY • 15MW CFB plant in Masbate expected co
Slide 8: Summary of Business Unit Performance
SUMMARY OF BUSINESS UNIT PERFORMANCE Core Net Income YoY +7% • 1H 2019 Billed Volume +3% • 1H 2019 Revenue +13% • In September 2018, Maynilad granted partial rate adjustment: P5.73/cu.m 2Q19 2Q18
Slide 9: Holdings' Balance Sheet
HOLDINGS’ BALANCE SHEET (In Million Php) 30 June ‘19 31 Dec ‘18 % Cash & Cash Equivalents* 3,344 4,625 -28% Receivables** 2,820 1,528 85% Investments in subsidiaries and associates 15,450 15,450 0% Other assets 56 57 -2% Total assets 21,670 21,660 0% Accounts payable 17 18 -6% Other liabilities 11 1
Slide 10: Summary
SUMMARY • SCC’s earnings for 1H 2019 can be viewed from the perspective of its two businesses. Though Coal production was strong, it was offset by lower than average selling prices. As expected, due to planned outages, Power also posted dampened earnings – which Coal’s performance could not offset.
Slide 11: Appendices
APPENDICES 2Q19 & 1H19 Consolidated I/S & Selected Operating Highlights Semirara, Homes, DMCI Construction, Mining, Power (off-grid), & Maynilad
Slide 12: Drivers of Core Net Income
DRIVERS OF CORE NET INCOME (In Million Php) 2Q 2019 2Q 2018 Change % % of Core Semirara 2,231 2,187 44 2% 56% Real Estate Development* 708 669 39 6% 18% Construction 81 340 (259) -76% 2% DMCI Mining 70 176 (106) -60% 2% DMCI Power 133 138 (5) -4% 3% Maynilad (25% effective) 676 633 43 7% 17% Parent
Slide 13: Drivers of Core Net Income
DRIVERS OF CORE NET INCOME (In Million Php) 1H 2019 1H 2018 Change % % of Core Semirara 3,648 4,948 (1,300) -26% 53% Real Estate Development 1,189 1,129 60 5% 17% Construction 440 676 (236) -35% 6% DMCI Mining 173 221 (48) -22% 2% DMCI Power 233 214 19 9% 3% Maynilad (25% effective) 1,112 1,020 92 9
Slide 14: Real Estate Development
Real Estate Development (In Million Php) 2Q 2019 2Q 2018* % Restated: PFRS 15 Real Estate Revenues 5,030 5,975 -16% COS & Operating Expenses (Cash) (3,995) (5,064) -21% EBITDA 1,035 911 14% Depreciation & Amortization (167) (110) 52% Interest Expense (43) (174) -75% Interest Income 127 83 53% Other
Slide 15: Real Estate Development
Real Estate Development (In Million Php) 1H 2019 1H 2018* % Restated: PFRS 15 Real Estate Revenues 9,468 10,526 -10% COS & Operating Expenses (Cash) (7,805) (9,065) -14% EBITDA 1,663 1,461 14% Depreciation & Amortization (229) (204) 12% Interest Expense (160) (248) -35% Interest Income 239 161 48% O
Slide 16: 2019 Launch Calendar
2019 Launch Calendar # of BUILDINGS MONTH PROJECT / TYPE February CAMERON RESIDENCES, Quezon City 1x high rise, 46-story June THE CRESTMONT, Quezon City 1x high rise, 50-story ALLEGRA GARDEN PLACE, Pasig City 2x high rise, 56/55-story 2x high rise/1x mid rise, September SONORA GARDEN RESIDENCES, Las
Slide 17: Real Estate Development
Real Estate Development Php (in 1H 2019 1H 2018 % Change millions) Units PHP 18,260 20,883 -13% Parking 1,805 2,132 -15% Total PHP 20,065 23,015 -13% 1H 2019 1H 2019 % Change # of Units 3,552 4,716 -25% # of Parking 2,438 2,997 -19% Php (in 1H 2019 1H 2018 % Change millions) Price / Unit PHP 5.14 PH
Slide 18: Real Estate Development
Real Estate Development Php (in 2Q 2019 2Q 2018 % Change millions) Units PHP 8,284 7,111 17% Parking 731 788 -7% Total PHP 9,015 7,899 14% 2Q 2019 2Q 2018 % Change # of Units 1,461 1,612 -9% # of Parking 982 1,145 -14% Php (in 2Q 2019 2Q 2018 % Change millions) Price / Unit PHP 5.67 PHP 4.41 29% Pri
Slide 19: Construction
CONSTRUCTION (In Million Php) 2Q 2019 2Q 2018 % Construction Revenues 3,896 3,583 9% COS and Operating Expenses (Cash) (3,619) (2,964) 22% EBITDA 277 619 -55% Depreciation & Amortization (164) (164) 0% Interest Expense (2) (1) 100% Interest Income 1 1 0% Other Income (Expense) 25 (11) -327% Benefit
Slide 20: Construction
CONSTRUCTION (In Million Php) 1H 2019 1H 2018 % Construction Revenues 7,781 6,759 15% COS and Operating Expenses (Cash) (6,879) (5,505) 25% EBITDA 902 1,254 -28% Depreciation & Amortization (328) (337) -3% Interest Expense (2) (1) 100% Interest Income 4 3 33% Other Income (Expense) 35 (34) -203% Ben
Slide 21: Construction
CONSTRUCTION Booked Revenues Backlog Product Line Contract as of % of Total Revenues Jan-June Total to 30 June ’19 as of 31 Dec ‘18 ’19 Date Buildings 26,019 13,660 2,298 15,958 10,060 42% Infra 24,448 12,282 3,143 15,425 9,022 37% Power 6,346 2,863 1,162 4,025 2,321 10% Utilities 6,311 3,158 628 3,
Slide 22: Construction
CONSTRUCTION Booked Revenues Backlog Product Line Contract as of % of Total Revenues Jan-June Total to 30 June ’18* as of 31 Dec ‘17 ‘18 Date Buildings 44,331 29,476 3,063 32,539 11,792 41% Infra 40,235 19,343 791 28,345 11,889 41% Power 23,134 26,165 2,180 20,134 2,999 10% Utilities 7,388 4,546 602
Slide 23: Nickel Mining
NICKEL MINING (In Million Php) 2Q 2019 2Q 2018 % Nickel Ore Revenues 484 670 -28% COS and Operating Expenses (Cash) (229) (269) -15% EBITDA 255 401 -36% Depreciation & Amortization (61) (17) 259% Interest Expense - (2) -100% Interest Income 3 1 200% Other Income (Expense) (25) 6 -517% Benefit (Provi
Slide 24: Nickel Mining
NICKEL MINING (In Million Php) 1H 2019 1H 2018 % Nickel Ore Revenues 985 978 1% COS and Operating Expenses (Cash) (491) (462) 6% EBITDA 494 516 -4% Depreciation & Amortization (113) (34) 232% Interest Expense - (4) -100% Interest Income 5 1 400% Other Income (Expense) (5) 14 -136% Benefit (Provision
Slide 25: Nickel Mining
NICKEL MINING Period on Period 2Q 2019 2Q 2018 % Shipment (in WMT) 342,861 327,192 5% Average Nickel Grade 1.60% 1.75% -9% Average Selling Price (in USD) $27 USD $39 USD -31% Revenue (in PHP millions) PHP 484 PHP 670 -28% YTD Comparison 1H 2019 1H 2018 % Shipment (in WMT) 681,360 482,762 41% Average
Slide 26: Off-Grid Power
OFF-GRID POWER (In Million Php) 2Q 2019 2Q 2018 % Power Revenues 1,268 1,040 22% COS and Operating Expenses (Cash) (1,025) (828) 24% EBITDA 243 212 15% Depreciation & Amortization (71) (36) 97% Interest Expense (8) (9) -11% Interest Income - - 0% Other Income (Expense) - - 0% Benefit (Provision) for
Slide 27: Off-Grid Power
OFF-GRID POWER (In Million Php) 1H 2019 1H 2018 % Power Revenues 2,250 1,789 26% COS and Operating Expenses (Cash) (1,824) (1,422) 28% EBITDA 426 367 16% Depreciation & Amortization (119) (91) 31% Interest Expense (18) (15) 20% Interest Income - - 0% Other Income (Expense) - - 0% Benefit (Provision)
Slide 28: Off-Grid Power
OFF-GRID POWER Operational Indicators 2Q 2019 2Q 2018 % Sales Volume, GwH *excluding Sultan Kudarat 93.78 79.94 17% Masbate 33.12 29.34 13% Palawan 40.31 33.74 19% Mindoro 20.35 16.85 21% Sultan Kudarat 0.00 0.01 -100% Average Selling Price (ASP), Php/kWh 1H 2019 13.72 1H 2018 10.92 25% Masbate 16.6
Slide 29: Off-Grid Power
OFF-GRID POWER Operational Indicators 1H 2019 1H 2018 % Sales Volume, GwH *excluding Sultan Kudarat 169.50 142.91 19% Masbate 59.76 53.10 13% Palawan 73.52 61.57 19% Mindoro 36.22 28.24 28% Sultan Kudarat 0.00 0.02 -100% Average Selling Price (ASP), Php/kWh 13.28 12.41 Masbate 15.57 14.35 9% Palawan
Slide 30: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD HOLDINGS (not Maynilad stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 2Q 2019 2Q 2018 % Revenues 6,486 5,715 13% COS & Operating Expenses (Cash) (1,522) (1,453) 5% EBITDA 4,964 4,262 16% Depreciation & Amortization (1,021) (844) 21% Interest Exp
Slide 31: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD HOLDINGS (not Maynilad stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 1H 2019 1H 2018 % Revenues 12,172 10,961 11% COS & Operating Expenses (Cash) (3,264) (3,087) 6% EBITDA 8,908 7,874 13% Depreciation & Amortization (2,002) (1,677) 19% Interest
Slide 32: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD (stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 2Q 2019 2Q 2018 % Revenues 6,486 5,715 13% COS & Operating Expenses (Cash) (1,522) (1,452) 5% EBITDA 4,964 4,263 16% Depreciation & Amortization (900) (730) 23% Interest Expense (501) (460) 9% Inte
Slide 33: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD (stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 1H 2019 1H 2018 % Revenues 12,172 10,961 11% COS & Operating Expenses (Cash) (3,264) (3,085) 6% EBITDA 8,908 7,876 13% Depreciation & Amortization (1,769) (1,449) 22% Interest Expense (998) (1,169)
Slide 34: Semirara Consolidated
Semirara Consolidated (In Million Php) 2Q 2019 2Q 2018 % Revenues 13,637 12,529 9% COS & Operating Expenses (Cash) (7,897) (6,312) 25% EBITDA 5,740 6,217 -8% Depreciation & Amortization (1,885) (2,155) -13% Interest Expense (358) (195) 84% Interest Income 193 38 408% Other Income (Expense) (180) (18
Slide 35: Semirara Consolidated
Semirara Consolidated (In Million Php) 1H 2019 1H 2018 % Revenues 23,375 23,959 -2% COS & Operating Expenses (Cash) (13,411) (11,057) 21% EBITDA 9,964 12,902 -23% Depreciation & Amortization (3,686) (3,929) -6% Interest Expense (638) (417) 53% Interest Income 207 78 165% Other Income (Expense) (121)
Slide 36: Semirara Coal
Semirara Coal (In Million Php) 2Q 2019 2Q 2018 % Coal Revenues 8,692 7,484 16% COS & Operating Expenses (cash) (4,996) (3,991) 25% EBITDA 3,696 3,493 6% Depreciation & Amortization (1,077) (1,229) -12% Interest Expense (135) (90) 50% Interest Income 2 28 -93% Other Income (Expense) 23 (201) -111% Be
Slide 37: Semirara Coal
Semirara Coal (In Million Php) 1H 2019 1H 2018 % Coal Revenues 15,678 15,838 -1% COS & Operating Expenses (Cash) (8,753) (7,717) 13% EBITDA 6,925 8,121 -15% Depreciation & Amortization (2,072) (2,100) -1% Interest Expense (273) (188) 45% Interest Income 3 49 -94% Other Income (Expense) 53 (302) -118
Slide 38: Semirara Power (SCPC & SLPGC)
Semirara Power (SCPC & SLPGC) (In Million Php) 2Q 2019 2Q 2018 % Power Revenues 4,945 5,045 -2% COS & Operating Expenses (Cash) (2,901) (2,321) 25% EBITDA 2,044 2,724 -25% Depreciation & Amortization (808) (926) -13% Interest Expense (223) (105) 112% Interest Income 191 10 1810% Other Income (Expens
Slide 39: Semirara Power (SCPC & SLPGC)
Semirara Power (SCPC & SLPGC) (In Million Php) 1H 2019 1H 2018 % Power Revenues 7,697 8,121 -5% COS & Operating Expenses (Cash) (4,658) (3,340) 39% EBITDA 3,039 4,781 -36% Depreciation & Amortization (1,614) (1,829) -12% Interest Expense (365) (229) 59% Interest Income 204 29 603% Other Income (Expe
Slide 40: Semirara Power (SCPC)
Semirara Power (SCPC) (In Million Php) 2Q 2019 2Q 2018 % Power Revenues 2,031 3,589 -43% COS & Operating Expenses (Cash) (2,089) (1,709) 22% EBITDA (58) 1,880 -103% Depreciation & Amortization (478) (628) -24% Interest Expense (93) (1) 9200% Interest Income 182 3 5967% Other Income (Expense) 54 17 2
Slide 41: Semirara Power (SCPC)
Semirara Power (SCPC) (In Million Php) 1H 2019 1H 2018 % Power Revenues 3,647 5,691 -36% COS & Operating Expenses (Cash) (3,318) (2,491) 33% EBITDA 329 3,200 -90% Depreciation & Amortization (958) (1,235) -22% Interest Expense (153) (75) 104% Interest Income 182 8 2175% Other Income (Expense) 67 - 1
Slide 42: Semirara Power (SLPGC)
Semirara Power (SLPGC) (In Million Php) 2Q 2019 2Q 2018 % Power Revenues 2,914 1,456 100% COS & Operating Expenses (Cash) (812) (612) 33% EBITDA 2,102 844 149% Depreciation & Amortization (330) (298) 11% Interest Expense (130) (104) 25% Interest Income 9 7 29% Other Income (Expense) (257) 2 NM Benef
Slide 43: Semirara Power (SLPGC)
Semirara Power (SLPGC) (In Million Php) 1H 2019 1H 2018 % Power Revenues 4,050 2,430 67% COS & Operating Expenses (Cash) (1,340) (849) 58% EBITDA 2,710 1,581 71% Depreciation & Amortization (656) (594) 10% Interest Expense (212) (154) 38% Interest Income 22 21 5% Other Income (Expense) (241) 7 -3543
Slide 44: 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 conta