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.  

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