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DMCI Holdings, Inc.
Corporate Presenta7on
1Q 2016
April 2016
Page(s)
I Overview Organiza7onal Chart 3
Timeline 4
II DMCI Holdings, Inc. Consolidated 5-‐6
III Semirara Mining & Power Corp.:
Coal Mining 7-‐8
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-‐grid): DMCI Power Corp. 18-‐20
VIII Nickel Mining: DMCI Mining Corp. 21-‐23
IX Moving Forward: Strategy & Plans 24
Agenda
2
April 2016
CONSTRUCTION REAL ESTATE
100% 100% 25% 56% 100% 100%
100%
DIVERSIFIED, ENGINEERING-‐BASED CONGLOMERATE
SAN RAFAEL*
NICKEL
50%
40%
100%
2x300MW
2x150MW
2x350MW
OFF-‐GRID POWER COAL & POWER WATER
3 *San Rafael not yet opera7onal
ZAMBALES CHROMITE
ZAMBALES (ZDMC)
BERONG (BNC)
MINDORO
PALAWAN
MASBATE
100%
100%
100% 75%
100%
100%
28 units of diesel
2X6.3 MW bunker & 8 units of diesel
4x3.89 MW bunker
April 2016
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 development arm
2006 DMCI-‐MPIC consor7um (50:50) bids for
2007 • Turnover of opera7ons to DMCI-‐MPIC in January • established aler successful bid to build, operate & own 13MW power plant in Masbate
2009 Acquisi7on of , 2x300MW coal-‐fired power plant
2010 Sale of
2012 • Transi7on from contract-‐miner (nickel) to owner: acquires ENK (Acoje mine, Zambales) and TMC (Berong mine, Palawan) • Incorpora7on of (2x150MW opera7onal by end 3Q 2015) • established.
2013 • Sale of to Marubeni Philippines Corp. (DMCI share: 25%) • wins the bid for 15-‐year PSA in Oriental Mindoro
TIMELINE OF CAPITAL MOVEMENT
4
June 2016 5
Over the past 10 years, Management has returned nearly $700M USD in dividends
0.54
0.72 0.73 0.79 0.77
0.93
34% 33%
61% 51%
59% 50%
-‐ 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
2010 2011 2012 2013 2014 2015
Core EPS & Dividend Payout RaEo: 2010 to 2015
Core Earnings per share (Basic and Diluted)
Dividend Payout Ra7o
June 2016 6
DMCI HOLDINGS, INC.
Semirara Resources: Coal & Other RESOURCES: Panian 50MT Narra 40MT Himalian 120MT Molave* 90MT Tuong (underground)
12MT ________________ COAL RESOURCES 312MT RESERVES: Panian 9MT Narra 70MT Himalian 82MT Molave TBD ________________ COAL RESERVES**
OPEN PIT 161MT UNDERGROUND 12MT TOTAL 173
Other Minerals: Limestone (1.2 billion MT), Clay (2.9 billion MT)
NARRA PIT 70 mil. mt
UNONG PIT 12 mil. Mt ( Depleted )
Total Land Area = 55 sq.km (5,500 hectares)
PANIAN PIT (ACTIVE) 17 mil. Mt Remaining
HIMALIAN 82 mil. mt
Tuong UG 12 mil. mt
Proposed UG
MOLAVE PIT 90 mil. MT*
*Pending verification
June 2016 7
*Molave Mine's coal resource es7mate of 90MT pending verifica7on
**Remaining as of December 31, 2015 **
June 2016
SEMIRARA: COAL
8
Semirara accounts for 97% of coal production in the Philippines
June 2016 9
SEMIRARA: POWER (On-‐Grid)
June 2016 10
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 10 395 2.65%
TOTAL 11,086 1,764 2,028 14,878 100.00%
June 2016 11
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 678MW 6.54%
TOTAL 7,365MW 993MW 2011MW 10,369MW 100%
*Up to 2018 only **Up to 2019 only
June 2016
12
PROPERTY DEVELOPMENT
• Middle income residential developer: mid-rise and high-rise condominiums
June 2016
13
PROPERTY DEVELOPMENT: LANDBANK
•DMCI Homes exploring new format and product line for faster growth • Current landbank good for 5 years (assuming P20B per year in sales & reservations)
2016 PROJECTS FUTURE PROJECTS TOTAL LAND AVAILABLE FOR DEVELOPMENT
TYPE AREA
Est Sales Revenue
AREA
Est Sales Revenue
AREA
Est Sales 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 97.5 105.2 146.9
*estimated revenue for 15-year lease period **78 has. in Taguig
June 2016
14
PROPERTY DEVELOPMENT
7.8 8.3 9.2 12.2 12.5 13.7
4.3 4.3 1.8 2.7 3.4 3.9 4.6 5.3 1.5 1.3
1.3 1.8 2.1 2.1 3.2 3.6
0.8 0.7
4,971 5,254 5,535 5,628 5,756 5,325
1,872 1,686
-‐
2,000
4,000
6,000
8,000
-‐ 2.0 4.0 6.0 8.0
10.0 12.0 14.0
2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
No. of U
nits Sold
In Php
Billions
DMCI Homes' Revenue, EBITDA, Net Income & Units Sold: 2010 to 1Q 2016
Revenue EBITDA Net Income Units Sold (Jan to Dec)
38% 50% 52%
45% 48% 50% 43% 39%
17% 23% 24% 22% 27% 26% 20% 15%
2010 2011 2012 2013 2014 2015 1Q 2015
1Q 2016
Gross & Net Profit Margins: 2010 to 1Q 2016
GP Margin NP Margin
19% 23%
27% 27% 28% 25% 25%
15%
7% 8% 8% 7% 8% 8% 8% 5%
2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
ROE & ROA: 2010 to 1Q 2016
ROE ROA
14,710 17,170 17,060
18,800 20,170
7,540 8,120 9,000 11,700 12,230
2010 2011 2012 2013 2014
Sales Revenue
FINANCIAL HIGHLIGHTS
38%
50% 52% 45% 48%
17% 23% 24% 22%
27%
2010 2011 2012 2013 2014
Gross Proit Margin Net Profit margin
Sales & Revenue (PHP’m) Gross and Net Income Margin
19% 23%
27% 27% 28%
7% 8% 8% 7% 8%
2010 2011 2012 2013 2014
Return on Equity Return on Asset
Return on Equity and Asset
• Rapid sales and revenue growth driven by the Company’s value-for-money philosophy which
• Consistent income margins by effective management of expenses • Improving Return on Equity reflective of the Company’s synergy with DMCI
Almost 35,000 units sold More than 20,000 turned over
•
GP a s apercentage of sale say that in the charts –
why is isincresing becaue you make a correc7on on finished units actual price is lower than your es7mated proice and you add it the oflloing year what you did not spend in previous competed a lot of prjin 2013 adj in costs reflected in a higher margin in the following hyear
September 2015 15
June 2016
CONSTRUCTION
16
• 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. Proven track record in completing projects on time or ahead of schedule.
10.8 10.4
15.1 14.4
12.1 13.5
3.4 3.0 2.6 1.8 1.9 2.3
1.5 1.9 0.5 0.5
1.2 1.1 1.3 1.3 0.5 0.7 0.2 0.2
-‐
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
In Php
Billions
ConstrucEon Revenue, Net Income & EBITDA: 2010 to 1Q 2016
Revenue
EBITDA
Net Income
June 2016 17
CONSTRUCTION
8.6
15.7
22.5 18.7
21
• Order Book at Php 29.2 billion as of Dec. 31st 2015 – up from 18.5 as of EOY 2014
29.2
5.2 10.2
4.6 3.2 3.6 5.3 3.9 6.9 2.8
1.2
1.5 11.0 9.8
20.7 26.4 19.3
0.6 0.5
0.5
0.7 2.9
2.4
2.7 2.9
-‐
10.6
9.1
6.1 2.2
0.8
2.2
0.9
-‐
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
in Php
Billions
Orderbook (end-‐of-‐period): EOY 2010 to 31 March 2016
Buildings Infrastructure Water Power
June 2016
MAYNILAD
18
7.4 8.2 10.6
12.1 13.8
15.9 16.9 18.4 19.1
4.5 4.9 4.1 5.0 7.0 7.9
9.4 10.5 11.1
12.9 13.9
3.2 3.3
3.7
(0.4)
4.0 4.4 5.2 5.9 7.3 7.8 9.2
2.1 1.6
(1.0)
4.0
9.0
14.0
19.0
24.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
Maynilad Revenue, Core EBITDA & Net Income: 2007 to 1Q 2016
Revenue
Core EBITDA
Net Income
June 2016
MAYNILAD
19
•LARGEST PRIVATE WATER CONCESSIONAIRE in the Philippines in terms of customer base. •NRW at a historic low
287 315 350 374 405 428 444 463 482
115 120
844 871 869 804 776 758 724 701 698
174 173
66% 64% 60%
53% 48%
43% 39%
34% 31% 34% 31%
25%
35%
45%
55%
65%
75%
85%
-‐
200
400
600
800
1,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
In M
CM
OperaEng Highlights: 2007 to 1Q 2016
Billed volume (mcm) Supply (in MCM) Non-‐Revenue Water (% ave)
ZDMC’s MPSA Area located in the province of Zambales (Region 3)
BNC’ MPSA and Tenement Area located in the province of Palawan (Region 4) LocaEon Area
(Ha) Resource EsEmate (MT)
Reserve, MT
Nickel Grade
Longpoint 2,358 108 No Data 1.1-‐1.8%
Morsoom 5,889 43 No Data 1.0-‐1.5%
Dangla 1,053 118 No Data 1.2-‐1.4%
Berong 288 27 12.48* 1.2-‐1.8%
TOTAL 9,588 296 12.48* 1.0-‐1.8%
LocaEon Area (Ha)
Resource EsEmate (JORC), MT
Reserve, MT Nickle Grade
Municipali7es -‐ Sta. Cruz & Candelaria
3,765 69 29* 0.8-‐2.0%
*(as of December 2015 per DENR/MGB Annual Mineral Resource/Reserve Inventory Report) June 2016 20
GRAND TOTAL
13,353 365 41.48* 0.8-‐2.0%
Berong (BNC) • DMCI Mining took over operations in January 2014 and, since the takeover, the Average Cash Cost has dropped dramatically. •Cash cost increased in 1Q 2016 due to lower production.
June 2016 21
602
1,004 1,004
271 110
$34
$48 $48
$29
$18
$32
$23 $23 $18
$23
$-‐
$10
$20
$30
$40
$50
-‐
200
400
600
800
1,000
1,200
2013 2014 2015 1Q 2015 1Q 2016
In U
SD
In Tho
usan
ds W
MT
BNC Volume, Average Price & Cash Cost: 2013 to 1Q 2016
Volume (in Thousand WMT) Average Price Average Cash Cost
856
2,141
3,062
353 90 21
1,108 1,666
3
(22) (41)
484 998
(1) (74) (1,000)
-‐
1,000
2,000
3,000
4,000
2013 2014 2015 1Q 2015 1Q 2016
In Php
Millions
BNC Revenue, EBITDA & Net Income: 2010 to 1Q 2016
Revenue EBITDA NET INCOME
Zambales (ZDMC) •DMCI Mining took over operations in 2013 – but only operated for 4 months • Then, in 2014, the Company operated the mine for only 3 months because of the issuance of a Cease and Desist Order (CDO) • Operations remained suspended in 9M 2015. However, the Company exported inventory.
June 2016 22
235 205
48 48
-‐
$29
$49
$32 $32
-‐
$25 $27
$37
$21
-‐ $-‐
$10
$20
$30
$40
$50
$60
-‐
50
100
150
200
250
2013 2014 2015 1Q 2015 1Q 2016
In USD
ZDMC Volume, Average Price & Cash Cost: 2013 to 1Q 2016
Volume (in Thousand WMT) Average Price Average Cash Cost
268
449
71 71 -‐ 22
188
3 26
(19)
10 115
-‐20
11
(20) (200)
-‐
200
400
600
2013 2014 2015 1Q 2015 1Q 2016
in Php
Millions
ZDMC Revenue, EBITDA & Net Income: 2013 to 1Q 2016
Revenue EBITDA Net Income
• In just a matter of five (5) years of operations, DPC has increased its total installed capacity in three major off-grid areas (Masbate, Palawan, Oriental Mindoro) by 300% or from 24.4MW to 74.03 MW.
June 2016 23
DMCI Power: Off-‐Grid
24.40 24.40 24.40 24.40 24.40 24.4 24.4 27.6
-‐ -‐ 6.25
32.87 34.00 38.1 25.0 27.5
-‐ -‐ -‐
-‐ -‐
15.6
15.6 15.6 -‐ 3.7
-‐
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2010 2011 2012 2013 2014 2015 1Q 2015
1Q 2016
Capa
city Build-‐up in M
W
300% Increase in Off-‐Grid Capacity: 2010 to 1Q 2016
Sultan Kudarat
Mindoro
Palawan
Masbate
24.84 59.34 68.31 103.20 132.37 210.05 40.63 54.07
11.78 13.63 13.79 14.11 13.52
10.33 7.92
11.29
-‐
5.00
10.00
15.00
-‐
50.00
100.00
150.00
2010 2011 2012 2013 2014 2015 1Q 2015
1Q 2016
In Php
In GWH
Off-‐Grid Power Aggregate GeneraEon & Composite Price: 2010 to 1Q 2016
Genera7on (in GWH) Composite Average Price per KWH in Peso
June 2016
MASBATE, PALAWAN & ORIENTAL MINDORO
24
• Increasing energy consumption results in higher power sales & profitability
1,013 1,132
994
222 220 168 215 302
50 62 158 200 237 45 57 -‐
200
400
600
800
1,000
1,200
2013 2014 2015 1Q 2015 1Q 2016
In Php
Millions
Masbate Revenue, EBITDA & Net Income: 2010 to 1Q 2016
Revenues EBITDA NET INCOME
-‐
461
44 94
-‐
172
14 36 -‐
123
9 23 -‐
100 200 300 400 500
2014 2015 1Q 2015 1Q 2016
Mindoro Revenue: EBITDA & Net Income: 2010 to 1Q
2016
Revenues EBITDA NET INCOME
4
371
658 723
167 153 1 58 93 93 34 27 1 22 48 46 22 11
-‐
200
400
600
800
2012 2013 2014 2015 1Q 2015 1Q 2016
Palawan Revenue, EBITDA & Net Income: 2010 to 1Q 2016
Revenues EBITDA NET INCOME
June 2016
“Revenue stream of DMCI Power’s operations in the Off-Grid areas is assured on a long-term basis”
25
Fuel is “pass-through” “HIGHER CASH MARGINS IN THE OFF-GRID AREAS COMPARED TO GRID”
293
842 985
1,384
1,790 2,169
433 482
29 111 136 226 308 553
109 144 25 97 128 180 248 382 74 98 -‐
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016
In Php
Millioms
Off-‐Grid Power Aggregate Revenue, EBITDA & Net Income: 2010 to 1Q 2016
Revenue
EBITDA
Net Income
June 2016 26
Business
Semirara Coal • Verifying resource es7mate in new mine (Molave).
• Will ramp up produc7on to 12MT over next 2-‐3 years.
Semirara Power
• 2x150MW expansion expected is now commercially available. The new plants will run on
CFB technology – which make them capable of running on waste-‐coal.
• Another expansion (2x350MW) set to begin construc7on in 2016.
Property • Expanding product line and developing a new format. Will expand outside Metro Manila.
• Current landbank of 105.2 hectares good for 5 years’ worth of projects.
Construc7on
• Poised to benefit directly from implementa7on of PPP projects as Government is likely to
increase spending to 5%-‐6% of GDP.
• Track-‐record capacity to mobilize and engineering exper7se give Company its compe77ve
edge.
Water • Focused on expanding in areas just outside of the West Zone: Laguna, Cavite & Bulacan.
Nickel • Plans to expand permiued areas;
Off-‐Grid Power • Well-‐posi7oned to take advantage of suppressed demand in off-‐grid areas;
MOVING FORWARD
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 contained herein. Such informa7on is subject to change without no7ce, its accuracy is not guaranteed and it may not contain all material informa7on concerning DMCI.
• In addi7on, this document contains certain financial informa7on and results of opera7on, and may
also contain certain projec7ons, plans, strategies, and objec7ves of DMCI, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertain7es that may cause actual events and DMCI’s future results to be materially different than expected or indicated by such statements. No assurance can be given that the results an7cipated by DMCI, or indicated by any such forward looking statements, will be achieved.
• This document is not an offer of securi7es for sale in the United States. Securi7es may not be offered or sold in the United States absent registra7on under the United States Securi7es Act of 1933, as amended (the “Securi7es Act”) or an exemp7on from such registra7on. This document is not an offer to sell securi7es or a solicita7on of an offer to buy securi7es in any jurisdic7on where such offer or sale is not permiued.
June 2016 27
