Semirara Mining & Power Corp. · PSE:SCC

Semirara Mining & Power — Q1 2017 Earnings Presentation

28 slides from Semirara Mining & Power's earnings presentation, May 22, 2017

  1. Slide 1: Q1 2017 Results Briefing

    Q1 2017 Results Briefing 22 May 2017

  2. Slide 2: Consolidated Financial Highlights

    CONSOLIDATED FINANCIAL HIGHLIGHTS In million Php, except ratios Q1 2016 Q1 2017 Variance Revenues 6,470 10,351 56% Coal 3,940 6,778 72% Power 2,530 3,572 41% Depreciation 664 1,208 82% Coal 395 723 83% Power 269 485 80% EBITDA 3,826 6,032 58% EBITDA Margin 59% 58% -1% NIAT 2,910 4,423 52% EPS 2.72 4

  3. Slide 3: Segment Financial Highlights

    SEGMENT FINANCIAL HIGHLIGHTS Operating businesses Coal SCPC SLPGC Q1 2016 Q1 2017 Variance Q1 2016 Q1 2017 Variance Q1 2016 Q1 2017 Variance Revenues (In M Php) 4,647 8,135 75% 1,656 2,421 46% 1,053 1,148 9% Ave. Price 1,593 2,250 41% 3.90 4.13 6% 4.22 4.90 16% Cost of Sales - MT/Kwhr 651 887 36% 1.

  4. Slide 4: Q1 2017 Volume Sold vs Cost of Sales

    Q1 2017 VOLUME SOLD vs COST OF SALES COAL SCPC SLPGC 3,700 3,500 1,400 700 2.75 2.70 2.70 3,600 3,000 1,200 600 3,500 2,500 1,000 2.20 500 2.20 3,400 2,000 800 2.00 400 1.70 1.70 3,616 3,300 1,500 600 300 1,170 1.20 887 643 1.20 3,200 1,000 400 586 200 3,206 0.70 0.70 3,100 500 200 100 234 3,000 - -

  5. Slide 5: Consolidated Revenues and NIAT

    CONSOLIDATED REVENUES AND NIAT Q1 2016 vs Q1 2017 Gross Revenues NIAT 12 5 56% 5 52% 10 1.15 0.55 4 8 4 2.42 1.28 3 1.04 0.86 6 3 1.66 2 4 0.69 6.78 2 2.59 2 1 3.94 1.37 1 - - 2016 2017 2016 2017 Coal SCPC SLPGC 56%  in revenues, 52%  in NIAT. SCPC performed better in the current quarter as Unit 2

  6. Slide 6: Cash Generation & Utilization - Consolidated

    CASH GENERATION & UTILIZATION - CONSOLIDATED Q1 2017 12.0 Debt Repayment Debt Availment Php0.5 Php1.4 Capex Php2.0 10.0 Cash Generation Php3.6 8.0 In Billion PHP 6.0 Cash End Php9.5 4.0 Cash Beginning Php7.0 2.0 - GENERATION UTIIZATION

  7. Slide 7: Consolidated Assets, Liabilities, & Equity

    CONSOLIDATED ASSETS, LIABILITIES, & EQUITY FY 2016 (Audited) vs Q1 2017 (Unaudited) 6% 1% 13% ASSETS LIABILITIES EQUITY 80 70 0 0 60 23 24 50 40 22 4 30 21 0 3 7 12 11 7 20 4 4 25 24 29 10 21 16 15 - (0) (0) (0) (10) 12.31.16 03.31.17 12.31.16 03.31.17 12.31.16 03.31.17 Coal SCPC SLPGC Others

  8. Slide 8: Coal Production

    COAL PRODUCTION Q1 2016 vs Q1 2017 Materials Moved Coal Production 40.0 4.5 35.0 S/R S/R 4.0 7.61 7.97 3.5 30.0 3.0 25.0 2.5 20.0 35.2 2.0 4.1 30.8 3.7 15.0 1.5 10.0 1.0 5.0 0.5 - - 2016 2017 2016 2017 14%  in materials moved, 10%  in coal production. Increase in materials moved is due to increase

  9. Slide 9: Coal Sales

    COAL SALES Q1 2016 vs Q1 2017 9 8 REVENUE (billion pesos) / VOLUME (million MT) 7 6 ASP ASP 1,593 5.3 2,250 5 4 3 2.9 0.3 2.2 0.4 2 0.2 1.7 0.3 0.1 0.1 1 0.1 2.2 0.2 1.3 1.0 1.1 0 Rev 2016 Vol 2016 Rev 2017 Vol 2017 Php4.6 B 2.9M MT Php8.1 B 3.6 M MT POWER CEMENT OTHERS EXPORT 24%  in volume sold,

  10. Slide 10: Coal Sales Mix

    COAL SALES MIX Q1 2016 vs Q1 2017 Q1 2016 Q1 2017 35% 61% 32% 58% 5% 4% 2% 3% 2.91 M MTs 3.62 M MT 27% 27% 62% 65% 7% 5% 4% 3% Php 4.64 B Php 8.14 B Power Cement Others Export 11%  off-take of power plants, 11% Cement, 64%  Other Plants, 32%  exports. Increase in saleable coal mostly went to expo

  11. Slide 11: SCPC Power Plants' Performance

    SCPC POWER PLANTS’ PERFORMANCE Q1 2016 vs Q1 2017 Gross Gen, Total Plant Ave. Capacity, Total Plant 600 - 63% 300 50% 500 250 400 200 300 562 150 283 200 100 346 188 100 50 - - 0 2016 2017 2016 2017 Unit 2 Unit 1 Capacity Factor, Total Plant 50% 63% 40% 30% 20% 43% 26% 10% 0% 2016 2017

  12. Slide 12: SCPC Power Plants' Availability & Outages

    SCPC POWER PLANTS’ AVAILABILITY & OUTAGES Q1 2016 vs Q1 2017 Availability (Hours) 2,500 8% 2,000 TP 46% TP 42% Planned Outage, Hrs 2016 2017 Variance 1,500 Unit I - 1,536 100% 1,000 92% Unit II - - - 84% Total Plant - 1,536 100% 500 Unplanned Outage, Hrs 2016 2017 Variance - 2016 2017 Unit I 347 624

  13. Slide 13: SCPC Energy Sales

    SCPC ENERGY SALES Q1 2016 vs Q1 2017 2016 2017 Variance BCQ Revenue in Pesos, Net 1,626 2,418 49% BCQ Volume Sold (GWh) 422 586 39% BCQ, Ave Price 3.85 4.13 7% Spot Sale in Pesos 30 4 -88% Spot Volume Sold (GWh) 2 1 -64% Spot Sales, Ave Price 13.44 4.48 -67% Total Revenue in Pesos 1,656 2,421 46% To

  14. Slide 14: SCPC Energy Sales Mix

    SCPC ENERGY SALES MIX Q1 2016 vs Q1 2017 2016 2017 8% 6% 1% 1% 7% 0% 0% 0% 84% 93% 424 GWH 586 GWH 6% 2%1% 6% 0%0% 7% 0% 85% 94% PHP 1.66 B PHP 2.42 B Meralco Batelec I Trans Asia Spot Others Meralco remains to be the single biggest customer of the Company, accounting for 93% of sales volume and 94%

  15. Slide 15: SLPGC Power Plants' Performance

    SLPGC POWER PLANTS’ PERFORMANCE Q1 2016 vs Q1 2017 Gross Gen, Total Plant Ave. Capacity, Total Plant 250 2% 7% 217 221 250 200 65 200 150 147 88 118 150 100 100 152 50 50 127 113 74 - - 2016 2017 2016 2017 Unit 4 Unit 3 Capacity Factor, Total Plant 40% 3% 35% 30% 25% 20% 15% 33% 34% 10% 5% 0% 2016 2

  16. Slide 16: SLPGC Power Plants' Availability & Outages

    SLPGC POWER PLANTS’ AVAILABILITY & OUTAGES Q1 2016 vs Q1 2017 Availability (Hours) 2,500 2% 2,000 TP 45% TP 44% 1,500 34% Planned Outage, Hrs 2016 2017 Variance 58% Unit I - 744 100% 1,000 Unit II - 1,080 100% 55% Total Plant - 1,824 100% 500 30% - Unplanned Outage, Hrs 2016 2017 Variance 2016 2017

  17. Slide 17: SLPGC Energy Sales

    SLPGC ENERGY SALES Q1 2016 vs Q1 2017 2016 2017 Variance BCQ Revenue in Pesos, Net 955 932 -2% BCQ Volume Sold (GWh) 208 172 -17% BCQ, Ave Price 4.59 5.42 18% Spot Sale in Pesos 101 216 113% Spot Volume Sold (GWh) 41 62 50% Spot Sales, Ave Price 2.45 3.46 41% Total Revenue in Pesos 1,057 1,148 9% To

  18. Slide 18: SLPGC Energy Sales Mix

    SLPGC ENERGY SALES MIX Q1 2016 vs Q1 2017 2016 2017 24% 27% 17% 29% 43% 31% 31% 0 250 GWH 234 GWH 17% 19% 10% 36% 45% 37% 37% PHP 1.06 B PHP 1.15 B MPower GNPower VECO Spot SMEC MPower is the single biggest customer of SLPGC, accounting for 43% of sales volume and 45% of revenues.

  19. Slide 19: Key Takeaways

    KEY TAKEAWAYS • Coal passed second wave of DENR audit • Coal’s strong performance due to increased production sold at higher ASP • Higher global coal prices pushed power ASP up • SCPC: Performance rebounded with higher energy generation • SLPGC: Drop in profitability is due to accounting of deprecia

  20. Slide 20: Appendix

    APPENDIX

  21. Slide 21: Comparative Statements of Comprehensive Income - Coal

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - COAL For the period ending March (in million Php) Q1 2016 Q1 2017 Variance Revenue 4,647 8,135 3,488 75% Costs of Sales 1,908 3,206 1,298 68% Gross Margin 2,739 4,929 2,190 80% Gross Profit Ratio 59% 61% 3% Govt Share 693 1,274 582 84% Gen & Admin Exp

  22. Slide 22: Comparative Statements of Comprehensive Income - SCPC

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SCPC For the period ending March (in million Php) Q1 2016 Q1 2017 Variance Revenue 1,676 2,445 770 46% Contracted Energy 1,630 2,423 793 49% Spot Sales 30 4 (26) -88% PPD (4) (5) (1) 38% Other Income (Fly Ash) 20 24 4 21% Cost of Energy Sales 805 1,17

  23. Slide 23: Comparative Statements of Comprehensive Income - SLPGC

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SLPGC For the period ending March (in million Php) Q1 2016 Q1 2017 Variance Revenue 260 1,151 891 343% Contracted Energy 253 933 679 268% Spot Sales 216 216 PPD (2) (0) 2 -91% Other Income (Fly Ash) 8 3 (6) -68% Cost of Energy Sales 147 643 497 339% G

  24. Slide 24: Comparative Statements of Comprehensive Income - Consolidated

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - CONSOLIDATED For the period ending March (in million Php) SMC SCPC SLPGC Q1 2016 SMC SCPC SLPGC Q1 2017 Coal 3,940 - - 3,940 6,778 - - 6,778 Power - 1,656 260 1,916 - 2,422 1,151 3,572 Income from commissioning 780 780 REVENUE 3,940 1,656 1,040 6,636

  25. Slide 25: Comparative Statements of Financial Position - Consolidated (Assets)

    COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of March 2017 (Unaudited) vs December 2016 (Audited) – In million pesos SMC SCPC SLPGC SBPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 100% 100% 100% 100% PARENT 03.31.2017 12.31.2016 DIRECT DIRECT DIRECT DIRECT DIRECT INDIRECT DIRECT

  26. Slide 26: Comparative Statements of Financial Position - Consolidated (Liabilities)

    COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of March 2017 (Unaudited) vs December 2016 (Audited) – In million pesos SMC SCPC SLPGC SBPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 100% 100% 100%INDI PARENT 100% DIRECT 03.31.2017 12.31.2016 DIRECT DIRECT DIRECT DIRECT DIRECT RECT

  27. Slide 27: Consolidated Loan Profile

    CONSOLIDATED LOAN PROFILE In Millions Business Dec Jan-Mar Mar Segment 2016 Availment Payment 2017 Coal (USD) 70.8 70.8 Coal (PHP Equivalent) 3,518 3,549 Coal (PHP) 2,100 1,400 3,500 Total Coal (PHP) 5,618 1,400 7,049 SCPC (PHP) 1,728 64 1,664 SLPGC (PHP) 9,344 - 426 8,918 TOTAL (PHP) 16,690 1,400 4

  28. Slide 28: Disclaimer

    DISCLAIMER •Semirara Mining and Power Corporation (the “Company”) and its advisors assumes no responsibility or liability regarding actions or decision that may be taken regarding any information resulting from unintentional errors or omissions contained in this document. •In addition, this document

Semirara Mining and Power — Q1 2017 Earnings Presentation on 6ix