Dmci Holdings Inc. · PSE:DMC
Dmci — 1Q 2016 Earnings Presentation
27 slides from Dmci's earnings presentation, June 2016
Slide 1: DMCI Holdings, Inc. Corporate Presentation 1Q 2016
DMCI Holdings, Inc. Corporate Presenta7on 1Q 2016
Slide 2: Agenda
Agenda Page(s) I Overview Organiza7onal Chart 3 Timeline 4 II DMCI Holdings, Inc. Consolidated 5-‐6 III Semirara Mining & Coal Mining 7-‐8 Power Corp.: Power (on-‐grid) 9 IV Property: DMCI Homes, Inc. 10-‐13 V Construc7on: D.M. Consunji, Inc. 14-‐15 VI Water: Maynilad 16-‐17 VII Power (off-‐gr
Slide 3: Diversified, Engineering-Based Conglomerate
DIVERSIFIED, ENGINEERING-‐BASED CONGLOMERATE CONSTRUCTION REAL ESTATE COAL & POWER WATER NICKEL OFF-‐GRID POWER 100% 100% 56% 25% 40% 100% 100% 2X6.3 MW bunker 100% 2x300MW 75% 100% & 8 units of diesel BERONG (BNC) MASBATE 100% 2x150MW 100% 100% 28 units of diesel ZAMBALES (ZDMC) PALAWAN 50% 2x350
Slide 4: Timeline of Capital Movement
TIMELINE OF CAPITAL MOVEMENT 1954 Founding of , a general construcEon company 1995 Lis7ng of on the Philippine Stock Exchange 1997 • Acquisi7on of and • Acquisi7on of mark beginning of transforma7on from construc7on firm into diversified engineering-‐based Group 2000 Establishment of , property devel
Slide 5: Core EPS & Dividend Payout Ratio: 2010 to 2015
Over the past 10 years, Management has returned nearly $700M USD in dividends Core EPS & Dividend Payout RaEo: 2010 to 2015 1.00 0.93 0.90 0.79 0.77 0.80 0.72 0.73 0.70 0.60 0.54 Core Earnings per share (Basic 0.50 61% 59% and Diluted) 0.40 51% 50% Dividend Payout Ra7o 0.30 34% 33% 0.20 0.10 -‐ Jun
Slide 6: DMCI Holdings, Inc.
DMCI HOLDINGS, INC. June 2016 6
Slide 7: Semirara Resources: Coal & Other
PANIAN PIT Semirara Resources: MOLAVE PIT 90 mil. MT* (ACTIVE) 17 mil. Mt Coal & Other *Pending Remaining verification RESOURCES: Panian 50MT NARRA PIT Narra 40MT 70 mil. mt Himalian 120MT Molave* 90MT Tuong UG Tuong (underground) 12 mil. mt 12MT ________________ HIMALIAN COAL RESOURCES 312MT 82 mil
Slide 8: Semirara: Coal
SEMIRARA: COAL Semirara accounts for 97% of coal production in the Philippines June 2016 8
Slide 9: Semirara: Power (On-Grid)
SEMIRARA: POWER (On-‐Grid) June 2016 9
Slide 10: Power (On-Grid): Philippine Capacity Mix
POWER (On-‐Grid): Philippine Capacity Mix / Dependable Capacity Fuel Type Luzon Visayas Mindanao TOTAL % Coal 4,949 679 360 5,988 40.25% Natural Gas 2,739 – – 2,739 18.41% Geothermal 513 741 98 11,352 9.09% Oil-‐based 1,059 239 718 2,016 13.55% Hydro 1,543 3 842 2,388 16.05% Other RE 283 102 10 39
Slide 11: Power (On-Grid): Additional Capacity 2016-2021
POWER (On-‐Grid): Addi7onal Capacity 2016-‐2021 Fuel Type Luzon Visayas* Mindanao** TOTAL % Coal 6,380MW 720MW 1,760MW 8,860MW 85.45% Natural Gas 550MW – – 550MW 5.30% Geothermal 43MW 49MW – 92MW 0.88% Oil-‐based – 19MW 17MW 36MW 0.35% Hydro – 21MW 132MW 153MW 1.48% Other RE 392MW 184MW 102MW 678
Slide 12: Property Development
PROPERTY DEVELOPMENT • Middle income residential developer: mid- rise and high-rise condominiums June 2016 12
Slide 13: Property Development: Landbank
PROPERTY DEVELOPMENT: LANDBANK 2016 PROJECTS FUTURE PROJECTS TOTAL LAND AVAILABLE FOR DEVELOPMENT TYPE AREA Est Sales AREA Est Sales AREA Est Sales Revenue Revenue Revenue HRB 10.9 42.3 8.9 42.1 19.9 84.4 MRB 1.7 1.7 83.4** 55.4 85.1 57.1 COMMERCIAL 0.2 5.4* – – 0.2 5.4 TOTAL 12.9 49.4 92.3 97.5 105
Slide 14: DMCI Homes Revenue, EBITDA, Net Income & Units Sold
PROPERTY DEVELOPMENT DMCI Homes' Revenue, EBITDA, Net Income & Units Sold: 2010 to 1Q 2016 14.0 8,000 12.0 5,535 5,628 5,756 No. of Units Sold 5,254 5,325 In Php Billions 4,971 6,000 10.0 8.0 13.7 4,000 6.0 12.2 12.5 3.2 3.6 1,872 1,686 4.0 7.8 8.3 1.8 9.2 2.1 2.1 5.3 2,000 1.3 4.6 2.0 1.8 2.7 3.4 3
Slide 15: Financial Highlights
• GP a s apercentage of sale say that in FINANCIAL HIGHLIGHTS the charts – Gross and Net Income Return on Equity and Sales & Revenue (PHP’m) Margin Asset 52% 27% 27% 28% 20,170 50% 48% 18,800 45% 23% 17,170 17,060 38% 19% 14,710 11,700 12,230 27% 9,000 23% 24% 22% 7,540 8,120 17% 8% 8% 8% 7% 7% why
Slide 16: Construction Revenue, Net Income & EBITDA
CONSTRUCTION ConstrucEon Revenue, Net Income & EBITDA: 2010 to 1Q 2016 16.0 15.1 14.4 13.5 14.0 12.1 12.0 10.8 10.4 In Php Billions 10.0 Revenue 8.0 EBITDA 6.0 Net Income 3.4 3.0 4.0 2.6 1.9 2.3 1.9 1.8 1.5 2.0 1.2 1.1 1.3 1.3 0.5 0.7 0.5 0 .2 0.5 0 .2 -‐ 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 20
Slide 17: Construction Orderbook
CONSTRUCTION Orderbook (end-‐of-‐period): EOY 2010 to 31 March 2016 40.0 29.2 35.0 2.2 2.7 30.0 22.5 0.9 21 02.8 .4 2.9 18.7 in Php Billions 25.0 20.0 15.7 10.6 6.1 2.2 26.4 20.7 19.3 15.0 8.6 0.7 2.9 0 1.5 .2 9.1 10.0 0 -‐.6 11.0 9.8 2.8 0 1.5 .5 5.0 10.2 5.2 4.6 5.3 6.9 3.2 3.6 3.9 -‐ 2010 201
Slide 18: Maynilad Revenue, Core EBITDA & Net Income
MAYNILAD Maynilad Revenue, Core EBITDA & Net Income: 2007 to 1Q 2016 24.0 18.4 19.1 19.0 16.9 15.9 13.8 13.9 14.0 12.9 Revenue 12.1 10.6 10.5 11.1 9.4 Core EBITDA 8.2 7.9 9.0 7.4 7.0 Net Income 5.0 4.5 4.9 4.1 9.2 3.2 3.3 4.0 7.3 7.8 4.4 5.2 5.9 3.7 4.0 2.1 1.6 (1.0) 2007 (0.4) 2008 2009 2010 2011 2
Slide 19: Maynilad Operating Highlights
MAYNILAD OperaEng Highlights: 2007 to 1Q 2016 1,000 871 869 85% 844 804 776 758 75% 800 724 701 698 66% 64% 65% In MCM 600 60% 463 482 428 444 350 374 53% 405 55% 400 287 315 48% 43% 45% 174 173 200 39% 115 120 34% 34% 35% 31% 31% -‐ 25% 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
Slide 20: ZDMC and BNC MPSA Areas
ZDMC’s MPSA Area located in the province of Zambales (Region 3) LocaEon Area Resource Reserve, MT Nickle (Ha) EsEmate Grade (JORC), MT Municipali7es -‐ 3,765 69 29* 0.8-‐2.0% Sta. Cruz & Candelaria BNC’ MPSA and Tenement Area located in the province of Palawan (Region 4) LocaEon Area Resource Rese
Slide 21: Berong (BNC) Volume, Price & Cash Cost
BNC Volume, Average Price & Cash Cost: 2013 to 1Q 2016 Berong (BNC) 1,200 $50 $48 $48 1,000 In Thousands WMT $40 1,004 1,004 • DMCI Mining took over 800 $32 $34 $30 In USD $29 operations in January 2014 600 602 $23 $23 $23 $18 $18 $20 and, since the takeover, the 400 $10 Average Cash Cost has 200 27
Slide 22: Zambales (ZDMC) Volume, Price & Cash Cost
ZDMC Volume, Average Price & Cash Cost: 2013 to 1Q 2016 250 235 $60 Zambales (ZDMC) 205 $49 $50 200 $40 150 $29 $37 In USD $32 $32 $30 •DMCI Mining took over 100 $25 $27 $21 $20 operations in 2013 – but only 48 48 50 $10 operated for 4 months -‐ -‐ -‐ $-‐ 2013 2014 2015 1Q 2015 1Q 2016 • Then, i
Slide 23: DMCI Power: Off-Grid Capacity Build-up
300% Increase in Off-‐Grid Capacity: 2010 to 1Q 2016 Capacity Build-‐up in MW 80.00 DMCI Power: Off-‐Grid 70.00 15.6 3.7 -‐ 15.6 60.00 -‐ -‐ 15.6 50.00 Sultan Kudarat • In just a matter of five (5) 40.00 32.87 34.00 38.1 25.0 27.5 Mindoro years of operations, DPC has 30.00 -‐ -‐ -‐ 6.25 Palaw
Slide 24: Masbate, Palawan & Oriental Mindoro
MASBATE, PALAWAN & ORIENTAL MINDORO Masbate Revenue, EBITDA & Net Income: 2010 to 1Q 2016 Mindoro Revenue: EBITDA 1,200 1,132 & Net Income: 2010 to 1Q 1,013 994 1,000 2016 In Php Millions 800 461 500 600 400 302 300 400 172 215 222 220 200 123 168 94 200 50 4 5 62 100 44 1 4 36 2 3 158 200 237 57 -
Slide 25: Off-Grid Power Aggregate Revenue, EBITDA & Net Income
Off-‐Grid Power Aggregate Revenue, EBITDA & Net Income: 2010 to 1Q 2016 2,500 2,169 2,000 1,790 In Php Millioms 1,384 Revenue 1,500 985 1,000 842 EBITDA 553 433 482 500 293 226 308 Net Income 29 2 5 111 97 136 128 180 248 382 109 144 74 98 -‐ 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016 Fuel is “p
Slide 26: Moving Forward
MOVING FORWARD Business • Verifying resource es7mate in new mine (Molave). Semirara Coal • Will ramp up produc7on to 12MT over next 2-‐3 years. • 2x150MW expansion expected is now commercially available. The new plants will run on CFB technology – which make them capable of running on waste-‐coal.
Slide 27: Disclaimer
Disclaimer • The informa7on contained in this document is strictly confiden7al. Neither DMCI Holdings, Inc. (DMCI), nor its advisors make any representa7on regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in any informa7on containe