Dmci Holdings Inc. · PSE:DMC
Dmci — Q1 2023 Earnings Presentation
60 slides from Dmci's earnings presentation, May 10, 2023
Slide 1: Q1 2023 Analysts' Briefing
Q1 2023 Analysts’ Briefing 10 May 2023 Makati City via remote communication
Slide 2: Earnings down on high base effect
Earnings down on high base effect In Php mn Q1 2023 Q1 2022 Change CONTRIBUTION HIGHLIGHTS SMPC (56.65%) 5,114 8,520 -40% § Total net income dropped on high base effect of historic coal performance DMCI Homes 1,104 1,414 -22% Maynilad (25%) 523 319 64% § With the exception of Maynilad and DMCI Power
Slide 3: DMC earnings more than double Q/Q, pre-pandemic
DMC earnings more than double Q/Q, pre-pandemic YoY Q/Q Pre-pandemic In Php mn Q1 2023 Q1 2022 Change Q4 2022 Change Q1 2019 Change SMPC (56.65%) 5,114 8,520 -40% 2,280 124% 1,282 299% DMCI Homes 1,104 1,414 -22% 616 79% 481 130% Maynilad (25%) 523 319 64% 359 46% 436 20% DMCI Mining 473 499 -5% 198
Slide 4: Revenues decline on market headwinds, pandemic effects
Revenues decline on market headwinds, pandemic effects In Php mn Q1 2023 Q1 2022 Change CONSOLIDATED HIGHLIGHTS Revenues 33,032 43,765 -25% § Total revenues down on lower commodity shipments, Cost of sales 13,652 15,888 -14% easing coal prices, reduced construction accomplishments, fewer real estate
Slide 5: Key Takeaways
In Php mn Mar 2023 Dec 2022 Change KEY TAKEAWAYS Cash and cash equivalents 35,032 28,408 23% § Total assets up 5% on higher cash and Receivables and contract asset 56,461 56,148 1% inventories from SMPC (+Php 8.4 bn) and DMCI Inventories 65,801 61,525 7% Homes (+Php 2.1 bn) Investments in associates
Slide 6: Topline slumps on pandemic-induced order book slowdown
Topline slumps on pandemic-induced order book slowdown KEY TAKEAWAYS In Php mn Q1 2023 Q1 2022 Change Revenues 4,511 5,939 -24% § Revenues dropped on lower construction accomplishment and fewer projects COS 3,896 5,140 -24% OPEX 103 114 -10% § COS fell in line with revenues Core EBITDA 512 685 -25%
Slide 7: Public projects gaining traction
Public projects gaining traction Revenue Breakdown Q1 2023 Q1 2022 Change KEY TAKEAWAYS In Php mn Building* 2,353 2,093 12% § Building revenues up double digits on the back of higher accomplishments in NCCC Mall and Darong Infrastructure 1,116 1,994 -44% depot projects, coupled with completion of so
Slide 8: Weaker revenues on cancellations, anemic pandemic sales
Weaker revenues on cancellations, anemic pandemic sales In Php mn Q1 2023 Q1 2022 Change KEY TAKEAWAYS Revenues 4,849 5,949 -18% § Revenue contraction largely due to higher sales cancellations COS 3,168 3,983 -20% (which led to revenue reversals) and fewer accounts that qualified for recognition, cu
Slide 9: Sales, launches pick up on market recovery
Sales, launches pick up on market recovery Key Metrics Q1 2023 Q1 2022 Change KEY TAKEAWAYS Sales and reservations (units) 2,478 2,026 22% § Total unit sales driven by Sage Residences (Mandaluyong), Residential units 1,417 1,145 24% Allegra Garden Place and newly-launched projects Parking slots 1,06
Slide 10: Earnings down on high base effect of historic coal results
Earnings down on high base effect of historic coal results In Php mn Q1 2023 Q1 2022 Change KEY TAKEAWAYS Revenues 20,708 29,057 -29% § Revenues retreat from best-ever quarterly results; weaker coal performance offset by all-time high power revenues; COS- COS 5,154 5,484 -6% cash costs fell at slowe
Slide 11: Exports restricted to manage price volatility
Exports restricted to manage price volatility KEY TAKEAWAYS Q1 2023 Q1 2022 Change Strip Ratio § Higher strip ratio (S/R) due to stripping activities in South Block Aggregate* 8.4 5.6 50% 6 and Narra mines; total materials moved increased 31% from Effective** 8.4 5.6 50% 42.1 to 55.2 BCM Production
Slide 12: Improved availability and spot sales
Improved availability and spot sales Key Metrics Q1 2023 Q1 2022 Change KEY TAKEAWAYS Plant Availability (%) 86% 58% 48% § Overall plant availability, average capacity, gross generation and SCPC 99% 50% 98% power sales surged mainly from the commercial operation of SLPGC 72% 65% 11% SCPC Unit 2 on O
Slide 13: Bottom line uptick despite planned outages
Bottom line uptick despite planned outages In Php mn Q1 2023 Q1 2022 Change KEY TAKEAWAYS Revenues 1,714 1,378 24% § Better topline fueled by higher selling prices and electricity COS dispatch 1,440 1,127 28% OPEX 3 5 -36% § COS grew faster primarily due to increase in fuel price (pass- Core EBITDA
Slide 14: Maintenance outages temper gross generation, dispatch
Maintenance outages temper gross generation, dispatch Key Metrics Q1 2023 Q1 2022 Change KEY TAKEAWAYS Gross Generation (in GWh) 99.7 98.5 1% § Gross generation flattish due to maintenance shutdown Masbate 36.5 38.1 -4% of the 15MW Masbate thermal plant Palawan 45.7 43.4 5% Oriental Mindoro 17.6 17.
Slide 15: Berong mine and stockpile depletion continues to clip revenues
Berong mine and stockpile depletion continues to clip revenues In Php mn Q1 2023 Q1 2022 Change KEY TAKEAWAYS Revenues 1,314 1,421 -8% § Revenues dropped on lower shipments, cushioned by better COS 245 257 -5% selling prices OPEX 266 263 1% § Slower COS decline due to fixed costs, i.e. shipping and
Slide 16: Record quarterly production on ECC approval
Record quarterly production on ECC approval Key Metrics Q1 2023 Q1 2022 Change KEY TAKEAWAYS Production* (in WMT ‘000) 599 318 88% § ZDMC secured Environmental Compliance Shipment (in WMT ‘000) 487 620 -21% Certificate (ECC) approval for 2 million WMT/year last BNC - 255 -100% January, allowing high
Slide 17: Improved rates, consumption and customer mix bolster revenues
Improved rates, consumption and customer mix bolster revenues In Php mn Q1 2023 Q1 2022 Change KEY TAKEAWAYS Revenues 6,223 5,292 18% § Revenues strengthened on adjusted tariff, higher billed volume and better customer mix Total cash cost 2,227 1,748 27% Non-cash opex 740 1,158 -36% § Faster rise in
Slide 18: Higher production in time for commercial demand rebound
Higher production in time for commercial demand rebound Key Metrics Q1 2023 Q1 2022 Change KEY TAKEAWAYS Production* (in MCM) 187.1 184.3 2% § Production rebounded mostly on low base effect of water Billed Volume (in MCM) 127.6 124.0 3% service interruptions in Q1 2022 Customer Mix Domestic 81.5% 83
Slide 19: Summary
Summary Consolidated earnings down on high base effect, but more than double Q/Q, pre-pandemic Topline slumps on pandemic- Weaker revenues on cancellations, induced order book slowdown anemic pandemic sales Earnings down on high base effect Bottom line uptick despite planned of historic coal results
Slide 20: Outlook
Outlook Mixed results due to challenging macroeconomic conditions, slowing global growth and operating headwinds. Majority of ongoing projects Cancellations recede as demand slowly set for completion in 2023; returns; new product formats seen to public projects could provide drive growth some lift C
Slide 21: Annex
Annex § Capex Update § Market Forecasts § Debt Profile § ESG Highlights § DMCI Holdings and Subsidiaries Income Statement § Parent Balance Sheet § Subsidiaries and Associate Financial and Operations Highlights 21
Slide 22: Capex Update
Capex Update In Php bn Q1 2023 Q1 2022 Change 2023F 2022 Change 2023F Proceeds DMCI 0.2 0.1 100% 0.4 0.2 100% Equipment mostly for new infra projects DMCI Homes 4.2 3.3 27% 18.6 15.8 18% Construction activities and land banking Mining equipment, plant maintenance and SMPC 0.8 2.0 -60% 6.0 4.3 39% Un
Slide 23: Debt Profile
Debt Profile FLOATING* AND FIXED LOAN MATURITY SCHEDULE Consolidated Php 52.3 bn DMCI Consolidated DMCI Homes SMPC Php 0.2 bn DMCI Power DMCI DMCI Mining 0% 20% 40% 60% 80% 100% Php 36.3 bn DMCI Homes Floating Fixed *also pertains to fixed loans subject to repricing by Q4 2024 Php 9.6 bn SMPC BLENDE
Slide 24: 2022 Sustainability Report
2022 Sustainability Report The cover features dynamic vector illustrations of DMCI Group employees in motion. These images capture the essence of our diverse workforce, which has been instrumental in our inclusion in the Bloomberg Gender-Equality Index (GEI) for three consecutive years. In addition,
Slide 25: Environmental Stewardship Q1 2023
Environmental Stewardship Q1 2023 329 ha 2 ha 3,155 10,254 MT 15% Habitats Protected Reforested Trees Planted Waste Generated Recycling and Restored Areas Rate 23,540 115 35% Mangroves Animals Protected New Suppliers Accredited Planted or Reproduced Using Environmental Criteria CONSOLIDATED • DMCI •
Slide 26: Social Responsibility
Social Responsibility Q1 2023 30,381 6% 8,004 6 5.8 Direct Employees Female Direct Indirect Employees Average Training Average Training Employees Hours (per employee) Hours (male) 0.03 0.03 9.5 54% LTIFR Employees LTIFR Contractors Average Training New Suppliers Accredited Hours (female) Using Socia
Slide 27: ESG Highlights
ESG Highlights DMCI Youth Exposure Program On January 14, 2023, 15 youths from Life Project for Youth (LP4Y) Green Village experienced a first-hand understanding of the working environment in a construction company. The participants visited the Equipment Management Group (EMG) where they learned abo
Slide 28: ESG Highlights
ESG Highlights DMCI Homes Donations and Employee Contributions to Barangay Bangkal, Makati City Led by the Human Resources Department, DMCI Homes employees held a Virtual Charity Bingo Event as part of the company’s “Kaakbay sa Pamayanan” CSR Program last February 17, 2023. DMCI Homes employees rais
Slide 29: ESG Highlights
ESG Highlights DMCI Power Tree Planting Activities DMCI Power planted a total of 1,830 trees including Molave, Bamboo (fancy bamboo, tinikan, taiwanak, tibuhos, giant bamboo), Narra, Abio, and Balayong in Masbate Tree Q1 2023 in Oriental Mindoro, Masbate and Palawan. Planting Activity “Love Affair W
Slide 30: ESG Highlights
ESG Highlights Emergency Oil Spill Response Coastal Clean Up Activity DPC Calapan conducted an emergency DPC, together with 16 DMCI employees, response to the oil spill in Oriental Mindoro organized a coastal clean up activity in Palawan last March 3, 2023. in celebration of the World Water Day last
Slide 31: ESG Highlights
ESG Highlights ZDMC Education and Educational Support Program Various forms of assistance were provided to different schools and communities in Zambales with a total spending of P166k in Q1 2023. This includes subsidies for child development workers in several barangays, and donations for learners i
Slide 32: ESG Highlights
ESG Highlights ZDMC Health Services, Facilities and Professionals Program The company provided various forms of health assistance to different barangays in Zambales with a total spending of P405k in Q1 2023. This includes subsidies for barangay health workers in Naulo, Uacon, and Yamot, health suppl
Slide 33: ESG Highlights
ESG Highlights ZDMC Infrastructure and Support Services Program DMCI Mining provided various forms of infrastructure and services assistance to different barangays in Zambales with a total spending of P855.7k in Q1 2023. This includes the provision of materials to 100 farmers in Pamibian, Candelaria
Slide 34: ESG Highlights
ESG Highlights BNC Road Improvement Activities DMCI Mining carried out surfacing, backfilling, sand and gravel dumping, and compacting of access road including the installation of culvert to ensure safe road conditions and ease of travel to and from Sitio Daan, Apurawan, Aborlan, Palawan BNC also im
Slide 35: ESG Highlights
ESG Highlights BNC Installation of Solar Street Lights To improve the safety and security of the constituency of Barangay Berong, Quezon, Palawan, BNC installed 30 units of street lights in Q1 2023 with a total spending of P1.8 million. CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MIN
Slide 36: ESG Highlights
ESG Highlights BNC Released Pawikan Hatchlings BNC successfully released one hundred-five (105) sea turtles or pawikan hatchlings along the coast of Sitio Tagbolante, Barangay Berong, Quezon, Palawan. This is in contribution to the conservation efforts to protect Pawikan populations in the country.
Slide 37: DMCI Holdings and Subsidiaries Income Statement
DMCI Holdings and Subsidiaries Income Statement in Php millions Q1 2023 Q1 2022 % Revenues 33,032 43,765 -25% Cost of Sales (13,652) (15,888) -14% Operating Expenses (2,314) (1,815) 27% Government share (Coal) (3,217) (6,086) -47% Core EBITDA 13,849 19,976 -31% Equity in net earnings 536 345 55% Oth
Slide 38: Parent Balance Sheet
Parent Balance Sheet In Php millions Mar 2022 Dec 2022 % Cash and cash equivalents 2,469 2,086 18% Receivables 11,118 1,209 819% Investments in subsidiaries and assoc. 15,450 15,450 0% Other assets 60 59 0% Total Assets 29,096 18,804 55% Accounts payable 9,608 74 12863% Other liabilities 7 9 -22% To
Slide 39: 2023 Financial Results
2023 Financial Results STANDALONE INCOME STATEMENT in Php millions Q1 2023 Q1 2022 % Revenues 4,511 5,939 -24% Cost of Sales (3,896) (5,140) -24% Operating Expenses (103) (114) -10% Total Cash Cost (3,999) (5,254) -24% Core EBITDA 512 685 -25% Noncash items (189) (209) -10% Other income (expense) 64
Slide 40: 2023 Financial Results
2023 Financial Results CONDENSED BALANCE SHEET Total, Total, In Php millions DMCI JV DMCI JV % Mar 2023* Dec 2022* Cash and cash equivalents 485 513 998 765 642 1,407 -29% Receivables 8,064 2,014 9,355 8,024 1,964 9,225 1% CIE 1,345 1,125 2,470 1,093 1,188 2,281 8% Inventories 961 - 961 983 1 984 -2
Slide 41: Project Completion Status and Historical Order Book
Project Completion Status and Historical Order Book As of March 2023 Order Book (in Php bn) Infrastructure Total (Php 2.8 bn) 68.2 (Php 18.7 bn) 58.7 36% 26.6 49.3 21% 24% 22.6 64% 42.3 18.7 35.2 17.5 22% 15.2 23.6 14.8 10.2 33% Buildings (Php 15.9 bn) 3.4 2.8 24.1 20.9 20.4 18% 17.0 15.9 28% 15% 20
Slide 42: Ongoing and Prospect Bids and Estimates
Ongoing and Prospect Bids and Estimates Buildings (Residential and Mixed Use), Data Center, Hospitals, Railways, Bridges, Roads, Causeway, Water Transmission Lines, Water Treatment Plant, Water Type of Projects Reclamation Facilities, Water Pumping Stations and Reservoir, Water Pipelaying, Fuel Impo
Slide 43: Government Project Prospects
Government Project Prospects ALLIED SERVICES FOR NORTH-SOUTH METRO MANILA SUBWAY PROJECT COMMUTER RAILWAY CONTRACTORS (PHASE 1) Source: DOTR • 37-km from Valenzuela Projects • Concrete Products to Pasay City Details Allied • Steel Fabrication • 9 packages Services • Equipment Management • Formworks
Slide 44: Project Updates
Project Updates DOTR CHIEF LEADS GROUNDBREAKING OF MMSP’S QUEZON AVE. AND EAST AVE. STATIONS QUEZON CITY, (PIA) -- Department of Transportation (DOTr) Secretary Jaime Bautista on Friday (April 28) led the groundbreaking ceremony Contract Package 102 (CP 102) ng Metro Manila Subway Project (MMSP) The
Slide 45: Newly-Awarded Project
Newly-Awarded Project SOUTH COMMUTER RAILWAY PROJECT CONTRACT PACKAGE (CP-S02) (Joint Venture With Acciona Construction Philippines) Location: España, Sta. Mesa and Paco Manila Schematic photo Client: Department of Transportation (DOTr) A part of the North-South Commuter Railway (NSCR) System, the p
Slide 46: Newly Awarded Project
Newly Awarded Project DINAPIGUE CAUSEWAY Location: Brgy. Dimaluade Dinapigue, Isabela Client: Dinapigue Mining Corporation A design and build civil works project to improve and expand the client’s existing causeway. The project is expected to be completed by the end of 2023. February 2023 April 2023
Slide 47: 2023 Financial Results
2023 Financial Results STANDALONE INCOME STATEMENT CONDENSED BALANCE SHEET in Php millions Q1 2023 Q1 2022 % in Php millions Mar 2023 Dec 2022 % Revenues 4,849 5,949 -18% Cash and cash equivalents 4,768 3,561 34% Receivables 30,698 30,799 0% Cost of Sales (3,168) (3,983) -20% Inventories 48,014 46,6
Slide 48: 2023 Projects Update
2023 Projects Update Ongoing No. of No. of Units Sales Value % Sold Projects 21 30,815 Php 180.4 bn 81% In the Pipeline (2023) No. of No. of Units Sales Value Projects 8 11,952 Php 88.7 bn Solmera Coast CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD 49
Slide 49: Q1 2023 Financial Results
Q1 2023 Financial Results STANDALONE INCOME STATEMENT Q1 2022 In Php millions COAL SCPC SLPGC Others Combined COAL SCPC SLPGC Others Combined % Revenues 15,492 5,559 2,096 70 23,217 25,719 3,131 1,677 44 30,571 -24% COS (4,101) (2,377) (949) (59) (7,486) (4,500) (1,380) (1,051) (44) (6,975) 7% OPEX
Slide 50: Q1 2023 Financial Results
Q1 2023 Financial Results CONSOLIDATED INCOME STATEMENT Q1 2023 Q1 2022 In Php millions COAL SCPC SLPGC Others Conso COAL SCPC SLPGC Others Conso % Revenues 12,983 5,559 2,096 70 20,708 24,205 3,131 1,677 44 29,057 -29% COS (3,422) (999) (674) (59) (5,154) (4,245) (452) (742) (45) (5,484) -6% OPEX (
Slide 51: Q1 2023 Financial Results
Q1 2023 Financial Results CONSOLIDATED BALANCE SHEET In Php millions SMPC SCPC SLPGC Others Mar 2023 SMPC SCPC SLPGC Others Dec 2022 % Cash and cash equivalents 18,908 3,566 2,459 187 25,120 15,534 2,552 1,797 173 20,056 25% Receivables 7,198 2,996 1,387 34 11,615 7,447 1,074 1,650 27 10,198 14% Inv
Slide 52: 2023 Guidance Updates
2023 Guidance Updates COAL SEGMENT POWER SEGMENT Planned SCPC Unit 1 SCPC Unit 2 Production Sales Outage 30 days 80 days Total From October 11 From January 2024 16 MMT 15 to 16 MMT 145 days SLPGC Unit 1 SLPGC Unit 2 40 days 40 days Mine Plan* Q1 Ending From August 1 November 23 Molave Narra Inventor
Slide 53: 2023 Plant Outage Summary
2023 Plant Outage Summary Unit 1 Unit 1 Planned Unplanned Planned Unplanned • none • May 1 to 12 (Target) • none • January 20 to February 1 Unit 2 Unit 2 Planned Unplanned Planned Unplanned • none • January 12 to 13 • January 7 to • February 18 to 21 February 12 CONSOLIDATED • DMCI • DMCI HOMES • SM
Slide 54: Q1 2023 Financial Results
Q1 2023 Financial Results STANDALONE INCOME STATEMENT CONDENSED BALANCE SHEET in Php millions Q1 2023 Q1 2022 % in Php millions Mar 2022 Dec 2021 % Revenues 1,714 1,378 24% Cash and cash equivalents 207 197 5% Receivables 3,512 3,496 0% Cost of Sales (1,440) (1,127) 28% Inventories 585 579 1% Operat
Slide 55: Q1 2023 Operating Highlights
Q1 2023 Operating Highlights INSTALLED CAPACITY- 144.8 MW By Area By Fuel Type Oriental Coal Mindoro 10% 14% Bunker 29% Masbate 42% Palawan 44% Diesel 61% 2x4.17 MW Diesel Plant in Caingan, Masbate Started operations in January 2023 CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING
Slide 56: Q1 2023 Financial Results
Q1 2023 Financial Results STANDALONE INCOME STATEMENT CONDENSED BALANCE SHEET in Php millions Q1 2023 Q1 2022 % in Php millions Mar 2023 Dec 2022 % Revenues 1,314 1,421 -8% Cash and cash equivalents 1,424 1,101 29% Receivables 84 183 -54% Cost of Sales (245) (257) -5% Inventories 125 66 89% Operatin
Slide 57: Q1 2023 Operating Highlights
Q1 2023 Operating Highlights Selling Prices, Nickel Grade and Forex 60 55 1.50% 54 51 49 49 50 49 1.46% 48 1.45% 42 40 1.40% 30 30 27 1.36% 1.35% 1.35% 20 1.33% 1.33% 1.30% 10 0 1.25% ZDMC Operations 2019 2020 2021 2022 Q1 2023 Forex (USD/Php) Ave. Selling Price (USD/WMT) Ave. Nickel Grade (%) CONSO
Slide 58: Q1 2023 Financial Results
Q1 2023 Financial Results STANDALONE INCOME STATEMENT CONDENSED BALANCE SHEET in Php millions Q1 2023 Q1 2022 % in Php millions Mar 2023 Dec 2022 % Revenues 6,223 5,292 18% Cash and cash equivalents 8,005 10,439 -23% Cost of Sales (1,316) (1,004) 31% Trade and other receivables 3,605 3,832 -6% Other
Slide 59: Q1 2023 Operating Highlights
Q1 2023 Operating Highlights POPULATION SERVED & AVAILABILITY BILLED VOLUME (IN MCM) 10.3 120.0 10.2 97.5 92.7 100.0 98.0 10.1 94.6 44.3 42.5 10 80.0 40.8 9.9 58.8 60.0 9.8 10.2 9.7 10.0 40.0 9.9 9.6 9.8 9.7 20.0 9.5 9.4 0.0 2019 2020 2021 2022 Q1 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 60: Disclaimer Contact Information
Disclaimer 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 contained herein. Such information is subject to change without notice, it