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DMCI Holdings, Inc.
Corporate Presenta7on
April 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 aker 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
April 2016 5
0.54
0.72 0.73 0.79 0.77
34% 33%
61% 51%
59%
-‐ 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
2010 2011 2012 2013 2014
Core EPS & Dividend Payout RaEo: 2010 to 2014
Core Earnings per share (Basic and Diluted)
Dividend Payout Ra7o
Over the past 10 years, Management hasreturned nearly $700M USD in dividends
April 2016
• Net Income up 16% in 2014.
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
April 2016 7
*Molave Mine's coal resource es7mate of 90MT pending verifica7on
**Remaining as of December 31, 2015 **
April 2016
SEMIRARA: COAL
8
Semirara accounts for 97% of coal production in the Philippines
Market share of powerplants increased to 45% of salesvolume and 46% of gross revenuesin 2015, displacing exportsales, due to more reliableperformance of Calaca plants
April 2016 9
•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.
SEMIRARA: POWER (On-‐Grid)
April 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%
April 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
April 2016
12
PROPERTY DEVELOPMENT
• Middle income residential developer: mid-rise and high-rise condominiums
April 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
April 2016
14
• Strong ROE’s reflective of the Company’s synergy with DMCI
•Consistent income margins in spite of lower pricing relative to competition
PROPERTY DEVELOPMENT
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
April 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.
April 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
April 2016
MAYNILAD
•In spite of regulatory issues, the Company was able to grow its net income 18% in 2015 from the same period last year.
18
April 2016
MAYNILAD
19
•LARGEST PRIVATE WATER CONCESSIONAIRE in the Philippines in terms of customer base.
•NRW at a historic low
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) April 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.
•Margins therefore remain high (as of FY2015) even in the face of weak global commodities prices
April 2016 21
856
2,141 3,062
21
1,108 1,666
(41)
484 998
(1,000) -‐
1,000 2,000 3,000 4,000
2013 2014 2015
In Php
Millions
BNC Revenue, EBITDA & Net Income: 2010 to 2015
Revenue EBITDA NET INCOME
602 1,004 1,004
$34 $48 $48
$32 $23 $23
$(10)
$10
$30
$50
-‐
500
1,000
1,500
2013 2014 2015
In U
SD
In Tho
usan
ds W
MT
BNC Volume, Average Price & Cash Cost: 2013 to 2015
Volume (in Thousand WMT) Average Price Average Cash Cost
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.
April 2016 22
268
449
71 22
188
3 10
115
-‐20 (100)
-‐
100
200
300
400
500
2013 2014 2015
in Php
Millions
ZDMC Revenue, EBITDA & Net Income: 2013 to 2015
Revenue EBITDA Net Income
235 205
48
$29 $49
$32 $25 $27
$37
$-‐
$20
$40
$60
-‐
50
100
150
200
250
2013 2014 2015
In USD
ZDMC Volume, Average Price & Cash Cost: 2013 to 2015
Volume (in Thousand WMT) Average Price
Average Cash Cost
• 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.
April 2016 23
DMCI Power: Off-‐Grid
24.40 24.40 24.40 24.40 24.40 24.4 -‐ -‐ 6.25
32.87 34.00 38.1
-‐ -‐ -‐
-‐ -‐ 15.6
-‐ 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00
2010 2011 2012 2013 2014 2015
Capa
city Build-‐up in M
W
300% Increase in Off-‐Grid Capacity: 2010 to 2015
Mindoro
Palawan
Masbate
24.84 59.34 68.31 103.20 132.37 210.05
11.78 13.63 13.79 14.11 13.52
10.33
-‐
5.00
10.00
15.00
-‐
50.00
100.00
150.00
2010 2011 2012 2013 2014 2015
In Php
In GWH
Off-‐Grid Power Aggregate GeneraEon & Composite Price: 2010 to 2015
Genera7on (in GWH) Composite Average Price per KWH in Peso
April 2016
MASBATE, PALAWAN & ORIENTAL MINDORO
24
• Increasing energy consumption results in higher power sales & profitability
293
842 981 1,013
1,132 994
29 111 135 168 215
302
25 97 127 158 200 237 -‐
500
1,000
1,500
2010 (half) 2011 2012 2013 2014 2015
In Php
Millions
Masbate Revenue, EBITDA & Net Income: 2010 to 2015
Revenues EBITDA NET INCOME
-‐
461
-‐
172
-‐ 123
-‐
200
400
600
2014 2015
Mindoro Revenue: EBITDA & Net Income:
2010 to 2015
Revenues EBITDA NET INCOME
4
371
658 723
1 58 93 93
1 22 48 46 -‐
200
400
600
800
2012 2013 2014 2015
Palawan Revenue, EBITDA & Net Income: 2010 to 2015
Revenues EBITDA NET INCOME
April 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
29 111 136 226 308
553
25 97 128 180 248 382 -‐
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015
In Php
Millioms
Off-‐Grid Power Aggregate Revenue, EBITDA & Net Income: 2010 to 2015
Revenue
EBITDA
Net Income
April 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 or 1x350MW) planned for 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 while remaining cost efficient.
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.
April 2016 27