DMCI Holdings, Inc. 3/F, DACON Building 2281 Pasong Tamo Ext. Makati 1231 Philippines Dr. Victor Limlingan, Managing Director April 2014 1
Disclaimer • The information contained in this document is strictly confidential. 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, its accuracy is not guaranteed and it may not contain all material information concerning DMCI. • In addition, this document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives 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 uncertainties 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 anticipated by DMCI, or indicated by any such forward looking statements, will be achieved. • This document is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the United States Securities Act of 1933, as amended (the “Securities Act”) or an exemption from such registration. This document is not an offer to sell securities or a solicitation of an offer to buy securities in any jurisdiction where such offer or sale is not permitted. 2
The DMCI Group: Engineering Expertise 3
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 4
History of DMCI • Founded in 1954, it is acknowledged as one of the leaders in the Philippine construction industry • Built more than 500 buildings & structures (including national landmarks) • One of the first to use precast, pre-stressed & high-strength ready-mixed concrete 5
David M. Consunji Founder • “…building is not just an occupation or even just a profession, but a calling. • Constructing honestly and well is a task that combines huge social value, enormous technical challenges, and a great ethical obligation to be fair to clients and employees.” 6
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 7
The DMCI Group: Subsidiaries NAV (Pm)* Listed subsidiaries Stakes *April 2014, CLSA Semirara 67,830 56% Unlisted subsidiaries Maynilad Water 25,805 25% DMCI Homes 49,299 100% Construction 39,576 100% DMCI Power 7,095 100% DMCI Mining 2,552 100% (ex - TMC) Toledo Mining 989 93% ENK Plc Not available 100% Total 180, 591 8
The DMCI Group: Net Income & NAV Net Income Php NAV (Pm)* Subsidiaries % of 2013 After Minority Interest, For the year ended *April 2014, CLSA December 31, 2013 (In Mn Php) Semirara & 7% 4,246 67,830 Sem-Calaca (5% & 2%, respectively) Maynilad Water 1,915 25,805 7% (DMCI - MPIC) DMCI Homes 2,655 49,299 5% (PDI) Construction 1,275 39,576 3% (DMCI) DMCI Power 254 7,095 4% (incl. TMC) DMCI Mining 169 3,472 5% 18,937 Total 198,004 9.56% (core net income plus one-time gain on sale (P8,423 - Parent) 9
The DMCI Group: Book Value vs Market Price NAV Book value (PhP) Listed subsidiaries NAV/BK** April 2014, CLSA 2013 Semirara 67,830,000,000 20,127,511,704 3.37 Unlisted subsidiaries Maynilad Water 25,805,000,000 20,602,000,000 1.25 DMCI Homes 49,299,000,000 9,553,392,140 5.16 Construction 39,576,000,000 5,913,515,873 6.69 DMCI Power 7,095,000,000 876,092,267 8.10 DMCI Mining 2,552,000,000 2,950,434,040 0.86 (ex - TMC) Toledo Mining*** 989,000,000 1,760,395,000 0.48 ENK Plc Not available 2,124,623,030 - * Book value (as of 31 March 2013) for Toledo Mining converted from 27,903,108 British Pounds Sterling ** All figures are taken from the 2013 audited financial statements (with the exception of Toledo Mining); and NAV figures date to approximately April 2014, CLSA *** NAV based on Financial Statements 10 Text
The DMCI Group: Net Income & Book Value Net Income Php Book value (PhP) Subsidiaries % of 2013 After Minority Interest, For the year ended 2012 December 31, 2013 (In Mn Php) Semirara & Sem- 25% 4,246 20,127,511,704 Calaca (6% & 19%, respectively) Maynilad Water 1,915 20,602,000,000 11% (DMCI - MPIC) DMCI Homes 2,655 9,553,392,140 28% (PDI) Construction 1,275 5,913,515,873 31% (DMCI) DMCI Power 254 876,092,267 29% (incl. TMC) 169 DMCI Mining 2,950,434,040 15% 18,937 Total 60,022,946,024 31% (core net income plus one-time gain on sale (P8,423 - Parent) 11
Contents • History of DMCI • The DMCI Group: Financials • Portfolio Management • Target Portfolio (5-year plan) • Investors 12
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 13
Power Sem-Calaca: 1,000 MW expansion in addition to existing 600 MW capacity. Phase 1: ongoing construction of 2x150 MW plants (CFB). Phase 2: planned construction of 2x350 MW plant (pulverized coal) 14
94% 61% 100% Main Powerhouse Boiler Steel Structure Coal Yard Construction Progress (1 of 2) As of March 2014 15
94% 94% 94% Chimney ESP Area Circulating Water Trench Construction Progress (2 of 2) As of March 2014 16
Power (Sem-Calaca) BEFORE AFTER 2009 2012 2013 Generation (GWh) 181 Generation (GWh) 2, 463 3,638 Revenue (Php Mn) 444 Revenue (Php Mn) 9, 700 14,760 Net Income (PhP Mn) 59 Net Income (PhP Mn) 3, 280 5,780 Purchase Price (Php Mn) 16, 290 100% owned by SCC NAV (Php Mn)* 64,600 64,600 * Based on CLSA estimated NAV (as of April 2014) 17
Construction Awards ~ TPLEX, NAIA Expressway & MRT 7; Prospects ~ Metro Manila Skyway, LRT 1 Ext. & CALA Expressway; NLEX-SLEX Connector Rd., LRT Line 2 East Ext., & C-6 Skyway (Stage 4) 18
Award 1: TPLEX Tarlac-Pangasinan-La Union-Expressway 15B Php* 19 * 15B Php out of 20B Php total for the entire project
Awards 2: MRT - 7 20B Php 20
Award 3: NAIA Expressway 10B Php 21
Award 4: NAIA Terminal 1 Rehab 1.3B Php Construction Period: January 2014 – January 2015 Project inclusions : Architectural works, improvement of mechanical, electrical and plumbing, and structural retrofitting 22
Award 5: NAIA Expressway At-Grade Works 849M Php Construction of the Embankment and Utilities for the At-Grade Portion of NAIA-X Project Proponent: Entertainment City Estate Management Inc. (ECEMI) At-Grade Entertainment City 23
Award 6: Connector Road (CITRA)* 25B Php • Blue Segment = MPIC • Red Segment = CITRA • 5 km _Common Segment_ *No Photo Available : Award 2: Embankment 3B PhP & Award 3: Terminal 1 2B Php 24
Prospects 1: LRT - 1 Extension 25
Prospects 2 : Connector Road (MPIC) (ABOVE LEFT: blue segment) Prospects 3 : CALA Expressway (ABOVE RIGHT) 26
Prospects 4: C - 6 (CITRA) 50B Php estimated 27
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 28
DMCI Mining Improvement of operating capacity of nickel assets (ENK & TMC) underway. Long term option is to use Direct Shipping Ore to create capital to undertake nickel processing of lateritic nickel ore (<1.2% nickel ore) 29
Nickel Assets: ENK & Toledo ENK TOLEDO Interest 100% 96.04% Berong, Long Point & Moorsom, Location Acoje, Zambales Ipilan, Ulugan Berong – 8.84 MT @ 1.55% nickel Acoje – 50.14 MT @1.08% nickel Long point & Moorsom – 120 MT Minerals @ 1.27 nickel Zambales - 23.5 MT @ 1.18% nickel Ipilan – 43.37 MT @ 1.20 nickel 30
DMCI Power (SPUG) Investing in off-grid areas & delivering power at a competitive price. Construction & operation of coal-fired plants in order to reduce cost or production to ~ Php 5.00/kWh. DMCI Power to use 100% Semirara coal. 31
SPUG Power Plants 1: 32
SPUG Power Plants 2: 33
SPUG Power Plants 3: 15MW Bunker Power Plant Oriental, Mindoro Location : Calapan, Oriental Mindoro Off-taker : Mindoro Electric Cooperative (ORMECO) Supply Cont : 20 yrs. Power Supply Agreement with Minimum Energy Off-take of 50.6GWh p.a. Est. Proj. Cost : PhP 900M 34
Infrastructure • Proponent vs. Contractor 35
DMCI Holdings, Inc.: Portfolio • Grow A. Power (Sem-Calaca) B. Construction • Develop A. DMCI Mining (metal-mining) B. DMCI Power (SPUG) C. Infrastructure (as a proponent) • Hold A. Coal (Semirara Mining) B. Real Estate (DMCI Homes) C. Maynilad Water 36
Coal Maintain production: 7.7 MTs/yr 37
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