DMCI Holdings Inc. · PSE:DMC
DMCI — Investor Presentation (April 2016)
27 slides from DMCI's investor presentation, April 2016
Slide 1: DMCI Holdings, Inc. Corporate Presentation
DMCI Holdings, Inc. Corporate Presenta7on April 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 2014
Over the past 10 years, Management has returned nearly $700M USD in dividends Core EPS & Dividend Payout RaEo: 2010 to 2014 0.90 0.79 0.77 0.80 0.72 0.73 0.70 0.60 0.54 61% Core Earnings per share (Basic 0.50 59% and Diluted) 0.40 51% Dividend Payout Ra7o 0.30 34% 33% 0.20 0.10 -‐ 2010 2011 2012 20
Slide 6: DMCI Holdings, Inc.
DMCI HOLDINGS, INC. • Net Income up 16% in 2014. April 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 Market share of power plants increased to 45% of sales volume and 46% of gross revenues in 2015, displacing export sales, due to more reliable performance of Calaca plants April 2016 8
Slide 9: Semirara: Power (On-Grid)
SEMIRARA: POWER (On-‐Grid) •Revenue and Net Income decreased in 2014 because of unavailability of Unit 2. •2015 Revenue & Net Income are up & margins have recovered. •We resumed paying regular corporate income tax in 2015. April 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 April 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: Property Development
PROPERTY DEVELOPMENT • Strong ROE’s reflective of the Company’s synergy with DMCI •Consistent income margins in spite of lower pricing relative to competition April 2016 14
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
CONSTRUCTION • ENGINEERING TALENT with around 700 civil engineers and 13,000 in workforce – capable of taking on complex jobs • ABILITY TO MOBILIZE QUICKLY with size of equipment inventory with over Php 7 billion in inventory • EXCEPTIONAL REPUTATION built up over the past 60 years as AAA contractor
Slide 17: Construction
CONSTRUCTION 29.2 22.5 21 18.7 15.7 8.6 • Order Book at Php 29.2 billion as of Dec. 31st 2015 – up from 18.5 as of EOY 2014 April 2016 17
Slide 18: Maynilad
MAYNILAD •In spite of regulatory issues, the Company was able to grow its net income 18% in 2015 from the same period last year. April 2016 18
Slide 19: Maynilad
MAYNILAD •LARGEST PRIVATE WATER CONCESSIONAIRE in the Philippines in terms of customer base. •NRW at a historic low April 2016 19
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 and Cost
Berong (BNC) BNC Volume, Average Price & Cash Cost: 2013 to 2015 • DMCI Mining took over 1,500 $48 $48 $50 In Thousands WMT $32 $ 34 In USD operations in January 2014 1,000 $30 1 $,004 23 $23 1,004 and, since the takeover, the 500 $10 602 Average Cash Cost has -‐ $(10) dropped dramatically. 2013 20
Slide 22: Zambales (ZDMC) Volume, Price and Cost
ZDMC Volume, Average Price & Cash Cost: 2013 to 2015 235 250 $60 Zambales (ZDMC) 200 205 $49 $29 $40 In USD 150 $37 $32 100 $25 $27 •DMCI Mining took over 48 $20 operations in 2013 – but only 50 operated for 4 months -‐ $-‐ 2013 2014 2015 Volume (in Thousand WMT) Average Price • Then, in 2014, the
Slide 23: DMCI Power: Off-Grid
300% Increase in Off-‐Grid Capacity: 2010 to 2015 Capacity Build-‐up in MW 80.00 DMCI Power: Off-‐Grid 70.00 15.6 60.00 -‐ -‐ 50.00 Mindoro • In just a matter of five (5) 40.00 32.87 34.00 38.1 Palawan 30.00 -‐ years of operations, DPC has -‐ -‐ 6.25 20.00 Masbate increased its total installed
Slide 24: Masbate, Palawan & Oriental Mindoro
MASBATE, PALAWAN & ORIENTAL MINDORO Masbate Revenue, EBITDA & Net Income: 2010 to 2015 Mindoro Revenue: 1,500 EBITDA & Net Income: 1,132 2010 to 2015 In Php Millions 981 1,013 994 1,000 842 600 461 500 293 302 400 135 168 215 172 123 29 2 5 111 97 127 158 200 237 200 -‐ -‐ -‐ -‐ 2010 (half) 2011
Slide 25: Off-Grid Power Aggregate Revenue, EBITDA & Net Income
Off-‐Grid Power Aggregate Revenue, EBITDA & Net Income: 2010 to 2015 2,500 2,169 2,000 1,790 In Php Millioms 1,384 Revenue 1,500 985 1,000 842 EBITDA 553 500 293 226 308 Net Income 29 25 111 9 7 136 128 180 248 382 -‐ 2010 2011 2012 2013 2014 2015 Fuel is “pass-through” “HIGHER CASH MARGINS IN THE
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