Semirara Mining & Power Corp. · PSE:SCC

Semirara Mining & Power — Investor Presentation (June 2016)

48 slides from Semirara Mining & Power's investor presentation, June 2016

  1. Slide 1: Semirara Mining & Power Corporation Company Profile

    SEMIRARA MINING & POWER CORPORATION Company Profile

  2. Slide 2: Vision, Mission and Values

    VISION, MISSION AND VALUES Our Vision: COAL Towards An Energy-Sufficient Philippines Our Mission: To fulfill its commitment to provide affordable power to the Filipino people through the responsible use of coal as energy source, Semirara Mining and Power Corporation will continue to remain as: •The

  3. Slide 3: Organizational Structure

    ORGANIZATIONAL STRUCTURE A member of the DMCI Holdings, Inc. group of companies 100% 100% 100% 100% 100% 100% 100% *Sem-Cal *Sem- *Southwest *St. Raphael Industrial *Semirara *Semirara Balayan Sem-Calaca Luzon Power Power Park Claystone, Energy Power Power Power Corp. Generation Generation Developer

  4. Slide 4: Investment Thesis

    INVESTMENT THESIS The only vertically integrated Strong engineering core coal-fired power plants in the Low coal production cost competence Philippines • operates the biggest coal mine • controls the biggest deposit of • established leading DMCI in the country that accounts for open pit mineable coa

  5. Slide 5: Island Profile

    ISLAND PROFILE Semirara Island, Caluya Province of Antique Manila 350 Km. Land Area = 55 sq. km. or 5,500 hectares Calaca Three (3) Barangays Batangas Nine (9) Sitios 250 Km. Population ~ 16,661 Livelihood – Fishing & Farming San Jose Occ. Mindoro 50 Km. Boracay/ Semirara Island Caticlan 60 Km. Libe

  6. Slide 6: Sem-Calaca Location

    SEM-CALACA LOCATION • Luzon & Visayas Grids are inter-connected 2 x 300 MW SEM-Calaca Power Corp Luzon Coal-Fired Power Plant Grid*  167 hectare complex  Units 1 & 2 cover 67 hectares Visayas  about 115kms Grid* south of Manila  270kms by sea from Semirara Island Mindanao Grid

  7. Slide 7: Milestones

    MILESTONES • 1940 Pres. Quezon through Proclamation # 649 declared the islands of Semirara, Sibay, • and Caluya of Antique as coal mining reservation • 1980 Incorporated in the Philippines as a limited liability company • 1983 Initial public offering, listing on the Philippines Stock Exchange • 1984

  8. Slide 8: Milestones

    MILESTONES • 2009 Acquisition of 2 x 300 MW Calaca power plants (Sem-Calaca Power Generation Corp.) Silver Awardee for SEC’s Top PLCs for Corporate Governance • 2010 Stock Rights Offering of 59.375m shares increased outstanding common shares to 356.25m Silver Awardee for SEC’s Top PLCs for Corporate

  9. Slide 9: Milestones: Investment in Sem-Calaca

    MILESTONES Investment in Sem-Calaca The 2 x 300 MW coal-fired power plants in Calaca, Batangas was acquired by the Company in 2 December 2009 for $361.7 M

  10. Slide 10: Semirara Resources: Coal and Other Reserves

    SEMIRARA RESOURCES Coal and Other Reserves PANIAN PIT (ACTIVE) ► Coal Resources / Reserves 8 mil. Mt Open Pit ………. 238 million mt MOLAVE PIT Remaining reserves 80 mil. Mt Newly Remaining As of Jan .1, 2016 Discovered NARRA PIT 70 mil. Mt Resources Reserves ► Other Minerals Limestone …….. 1.2 Billion

  11. Slide 11: Semirara Resources: Facilities

    SEMIRARA RESOURCES Facilities Panian BRGY. SEMIRARA Himalian Unong BUNLAO SPRING BRGY. TINOGBOC BRGY. ALEGRIA

  12. Slide 12: Sem-Calaca Facilities

    SEM-CALACA FACILITIES 300MW 300MW Coal Yard Unit 1 Unit 2 Stacks Coal Unloading - built: 1984 - built: 1995 Facility Powerhouse Electrostatic Precipitator NGCP Switchyard Boiler

  13. Slide 13: Sem-Calaca Facilities

    SEM-CALACA FACILITIES Silo Stacker/Reclaimer Conveyor Coal Yard Transfer Tower Coal Unloading Facility

  14. Slide 14: Sem-Calaca OEM / EPC

    SEM-CALACA OEM / EPC EQUIPMENT UNIT 1 UNIT 2 Steam Generator Foster Wheeler (FWEC), Asea Brown Boveri/ USA Combustion Eng’g (ABB-CE), USA Steam Turbine Toshiba, Japan GEC-Alsthom, France Electric Generator Toshiba, Japan GEC-Alsthom, France Condenser Toshiba, Japan GEC-Alsthom, France EPC Mitsui and

  15. Slide 15: Production & Operations

    PRODUCTION & OPERATIONS

  16. Slide 16: Coal Production Flow Diagram

    COAL PRODUCTION FLOW DIAGRAM 5 6 Washing Blending & Pre-acceptance Washable 7 Shiploading Coal Clean Coal 4 Stockpiling 1 Waste Stripping 3 Hauling, 2 Coal Extraction

  17. Slide 17: Coal Specifications

    COAL SPECIFICATIONS PARAMETER TYPICAL Gross Calorific Value, Btu/lb (Air Dried) 8,700 - 10,000 Gross Calorific Value, Btu/lb (As Received) 7,300 - 9,000 Proximate Analysis - Ash % 6 - 17 Fixed Carbon % 33 - 44 Volatile Combustible Matter 34 - 40 Total Sulfur, % (Air Dried, ASTM D2015) 0.20 - 1.00 To

  18. Slide 18: Coal Mining Equipment

    COAL MINING EQUIPMENT Capacity # OF UNITS EQUIPMENT 2009 2010 2011 2012 2013 2014 2015 2016 LOADING 16 m3 Excavators 7 7 8 16 2 4 4 4 15 m3 Excavators 2 5 5 5 8 8 9 9 12 m3 Excavators 4 4 4 4 8 8 11 11 7 m3 Excavators 4 2 2 2 2 1 1 1 TOTAL 17 18 19 27 20 21 25 25 HAULING 100-tonne Dump Trucks 102 12

  19. Slide 19: Historical Coal Production

    HISTORICAL COAL PRODUCTION Unong and Panian Annual Coal Production Record Production: 9,000 8.5 M MTs 1997 Start of Unong operations 1983 Start of Coal Production at 177,858 MTs 8,000 1984 Introduction of bucketwheel operation 7,000 6,000 DMC Started In thousand MTs acquired Unong closed; exporting

  20. Slide 20: 2015 Philippine ROM Coal Production

    2015 PHILIPPINE ROM COAL PRODUCTION In metric tons ALBAY CEBU 21,683 MTs SURIGAO 42,621 MTs 0% 57,099 MTs 1% 0% ZAMBOANGA SSCM 13,748 MTs 112,267 MTs 0% 1% SEMIRARA 8,160,966 MTs 97% Total: 8.17 M MTs Source: DOE

  21. Slide 21: Calaca Historical Gross Energy Generation

    CALACA HISTORICAL GROSS ENERGY GENERATION 4,500 Unit 1 = used blended coal (imported/local) Acquired 4,000 by SCC 3,500 3,000 In GWh 2,500 2,000 1,500 1,000 500 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20

  22. Slide 22: Sem-Calaca Rehabilitation Program

    SEM-CALACA REHABILITATION PROGRAM Target Key Parameters KEY PARAMETERS PRE-REHAB POST-REHAB (UNIT 1) (2010) (2013) Net Heate Rate; BTU/Kwh 12,140 10,438 Capability; MW 150 245 Availability; % 69 83 Coal usage; MT/Nkwhr 0.705 0.60 Rehab Period: 8 August 2010 – 6 November 2010 KEY PARAMETERS PRE-REHAB

  23. Slide 23: Sales & Marketing

    SALES & MARKETING

  24. Slide 24: Philippine Coal Customers

    PHILIPPINE COAL CUSTOMERS Petron Corp. Eagle Cement Corp. Lima, Bataan Bulacan Asia Pacific Energy Corp. HOLCIM Philippines Inc. Pampanga Norzagaray, Bulacan United Pulp and Paper Co., Inc. Solid Cement Corp. Calumpit, Bulacan Antipolo City, Rizal PNOC Exploration Corp. Lafarge Cement Corp. North Ha

  25. Slide 25: Coal Export Markets

    COAL EXPORT MARKETS

  26. Slide 26: Coal Sales Volume

    COAL SALES VOLUME In ‘000 MTs 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Total Sales Local Sales 18-year average annual growth rate. Total sales – 15%; Local sales – 12%; Philippine total consumption – 8% *inclusive of 467K MTs of unwashed coal delivered to SLPGC

  27. Slide 27: SCC Philippine Market Share

    SCC PHILIPPINE MARKET SHARE 2015 COAL CONSUMPTION SCC MARKET SHARE Industrial Plants 100% 1,104,185 MTs 5% Cement 80% Plants 3,348,362 MTs 15% 60% 76% Others SCC 40% 20% Power Plants 17,553,854 MTs 24% 80% 0% Total Local Consumption: 22.01 M MTs Source: DOE

  28. Slide 28: Existing Coal-Fired Power Plants

    EXISTING COAL-FIRED POWER PLANTS 2 x 647 MW Sual Coal-Fired 25 MW CFB UPPC Coal- Power Plant, Pangasinan Fired Power Plant, Bulacan (TeaM Energy) (UPPC) 2 x 315 MW Masinloc Coal- 2 x 82 MW CFB PEDC, Iloilo Fired Power Plant, (Global Business Power Corp.) Pangasinan (AES) 3 x 82 MW CFB CEDC, Cebu 50

  29. Slide 29: Committed Power Projects

    COMMITTED POWER PROJECTS Luzon Grid Committed Power Projects Proponent Location Type Rated Capacity Project Costs Target (MW) (PHP Billion) Commissioning South Luzon Thermal Energy Corp. (SLTEC) Puting Bato, West, Calaca, Batangas Coal-Fired 135.0 12.9 August 2014 South Luzon Thermal Energy Corp. (S

  30. Slide 30: Cement & Industrial Coal End-Users

    CEMENT & INDUSTRIAL COAL END-USERS Source: DOE/ERDB, 11 Jul 2012

  31. Slide 31: Installed Capacity & Dependable Capacity

    INSTALLED CAPACITY & DEPENDABLE CAPACITY In MW Installed Capacity Dependable Capacity Total Fuel Type Luzon Visayas Mindanao Luzon Visayas Mindanao Installed Dependable Coal 4,738 822 382 4,446 679 360 5,942 5,486 Natural Gas 2,801 0 0 2,739 0 0 2,801 2,739 Geothermal 938 1,071 109 513 741 98 2,117

  32. Slide 32: Luzon Supply & Demand Outlook 2013-2030

    LUZON SUPPLY & DEMAND OUTLOOK 2013-2030 Source: DOE

  33. Slide 33: Visayas Supply & Demand Outlook 2013-2030

    VISAYAS SUPPLY & DEMAND OUTLOOK 2013-2030 Source: DOE

  34. Slide 34: Mindanao Supply & Demand Outlook 2013-2030

    MINDANAO SUPPLY & DEMAND OUTLOOK 2013-2030 Source: DOE

  35. Slide 35: Financial Highlights

    FINANCIAL 5: Rin RPG: BEe 3 q a8) (ES THE PHILIPPINE Stock ExcuaNc, Ine ao- WAS OF 10:15 i a HOG 2345.22 23.74 ME is fee 22.10 ND 5330/97 95'o3 five es mo -23° 2.14 PRO 1255.13 14/33 Re ‘BI = ws a na UDD UD: B00 Be af Ty a af Ban 1 Ps 7 BG 2 0 [ VALUE [PRICE | CHANGE | PO EA = : BAX rs : Bee 2 2 PRI

  36. Slide 36: Consolidated Revenues and NIAT

    CONSOLIDATED REVENUES AND NIAT In Million Pesos 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - (5,000) NP Ratio -357% -8% -41% -177% -2% -7% 7% 28% 29% 13% 10% 9% 15% 17% 23% 26% 28% 24% 34% Revenues NIAT *Consolidated

  37. Slide 37: Balance Sheet

    BALANCE SHEET In Million Pesos 60,000 50,000 40,000 30,000 20,000 10,000 0 -10,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014* 2015* Assets 2,598 3,506 3,679 2,736 3,240 3,413 3,099 3,862 6,928 6,511 6,558 6,111 24,26 30,49 35,62 36,18 44,72 51,90

  38. Slide 38: Historical Dividends

    HISTORICAL DIVIDENDS 5 4,500 4.0 4.0 4.0 4.0 4.0 4 4,000 Total dividends (In million PHP) Dividend per share (In PHP) 4 3.3 3,500 3 3,000 3 2,500 2.0 2.0 2 2,000 2 1.3 1,500 1 1,000 0.4 0.4 1 500 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Payout Ratio 21% 55% 175% 209% 101% 143% 78%

  39. Slide 39: Stock Price Movement

    STOCK PRICE MOVEMENT PhP 12 North Wall Acquisition of IPO Price: dividend Slide Sem-Calaca PHP 36 declaration 200% Export US Debt stock Resumption Shares maiden Crisis dividends of Subprime West Wall Buyback voyage SRO operations Crisis Slide

  40. Slide 40: Opportunities

    OPPORTUNITIES Current Market Market Market Opportunities Share Growth Annual Production: 97% in 8% annual SCC’s ECC allows maximum 8M MTs production growth rate in production of 16 M MTs 2014 Annual Domestic domestic coal SCC’s coal qualities are Coal Consumption: 18% in consumption acceptable to

  41. Slide 41: Community Social Responsibility

    COMMUNITY SOCIAL RESPONSIBILITY

  42. Slide 42: 5 E's Program

    5 E’s PROGRAM Electrification Economic Empowerment Education & Skills Training Environmental Protection Emergency Preparedness

  43. Slide 43: Electrification

    ELECTRIFICATION matte LP a an, “* Sal iolalie:

  44. Slide 44: Economic Empowerment

    ECONOMIC EMPOWERMENT 37% of the total Mining and Power workforce of 4,414 are from Western Visayas,22% from Calabarzon, 7% from NCR and 34% from other regions.

  45. Slide 45: ECONOMIC EMPOWERMENT

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  46. Slide 46: Education & Skills Training

    EDUCATION & SKILLS TRAINING

  47. Slide 47: Environmental Protection

    ENVIRONMENTAL PROTECTION

  48. Slide 48: Emergency Preparedness

    EMERGENCY PREPAREDNESS

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