DMCI Holdings Inc. · PSE:DMC
DMCI — Q3 2018 Earnings Presentation
35 slides from DMCI's earnings presentation, Nov 12, 2018
Slide 1: Analyst Briefing: 3rd Quarter of 2018 Financial & Operating Results
ANALYST BRIEFING 3rd Quarter of 2018 Financial & Operating Results East Board Room, DMCI Holdings, Inc. 12 November
Slide 2: Contents
CONTENTS • DMCI Holdings Inc.: Net Income 3Q 2018 vs. 3Q 2017 • 3Q 2018 Business Unit Performance Coal & On-Grid Power (Semirara) Real Estate Development (DMCI Homes) Construction (DMCI) Nickel (DMCI Mining) Off-Grid Power (DMCI Power) Water Concession (Maynilad) • Parent Balance Sheet as of 30 Sept
Slide 3: Drivers of Core Net Income
DRIVERS OF CORE NET INCOME (In Million Php) 3Q 2018 3Q 2017 Change % % of Core Semirara 450 2,026 (1,576) -78% 20% Real Estate Development 967 1,036 (69) -7% 43% Construction 276 354 (78) -22% 12% DMCI Mining (88) 63 (151) -240% -4% DMCI Power 123 96 27 28% 5% Maynilad (25% effective) 456 458 (2) 0%
Slide 4: Real Estate Development
Real Estate Development (In Million Php) 3Q 2018 3Q 2017 % Real Estate Revenues 4,221 5,077 -17% COS & Operating Expenses (Cash) (3,156) (3,927) -20% EBITDA 1,065 1,150 -7% Depreciation & Amortization (108) (84) 29% Interest Expense 128 (8) -1700% Interest Income 92 41 124% Other Income (Expense) 21
Slide 5: 2018 Launch Calendar
2018 Launch Calendar # of BUILDINGS MONTH PROJECT / TYPE January FAIRLANE RESIDENCES, Pasig City 1x high rise, 51-story July THE ATHERTON, Paranaque 3x high rise, 15-story September SATORI RESIDENCES, Pasig City 5x high rise, 14/15-story October ASTON RESIDENCES, Pasay City 1x high rise, 45-story 4x
Slide 6: Real Estate Development
Real Estate Development Php (in 3Q 2018 3Q 2017 % Change millions) Units PHP 9,427 8,255 +14% Parking 1,037 972 +7% Total PHP 10,464 9,227 +13% 3Q 2018 3Q 2017 % Change # of Units 2,138 2,288 -7% # of Parking 1,464 1,454 +1% Php (in 3Q 2018 3Q 2017 % Change millions) Price / Unit PHP 4.41 PHP 3.61 +
Slide 7: Construction
CONSTRUCTION (In Million Php) 3Q 2018 3Q 2017 % Construction Revenues 3,732 3,176 18% COS and Operating Expenses (Cash) (3,240) (2,567) 26% EBITDA 492 609 -19% Depreciation & Amortization (152) (177) -14% Interest Expense (1) (2) -50% Interest Income - 1 -100% Other Income (Expense) 32 14 129% Benef
Slide 8: Construction
CONSTRUCTION Booked Revenues Backlog Product Line Contract as of % of Total Revenues Jan-Sept Total to 30 Sept ’18 as of 31 Dec ‘17 ‘18 Date Buildings 46,146 29,476 4,632 34,108 12,038 42% Infra 41,397 26,165 3,353 29,518 11,879 42% Power 22,878 19,343 1,457 20,800 2,078 7% Utilities 6,082 2,866 726
Slide 9: Nickel Mining
NICKEL MINING (In Million Php) 3Q 2018 3Q 2017 % Nickel Ore Revenues - 242 -100% COS and Operating Expenses (Cash) (135) (190) -29% EBITDA (135) 52 -360% Depreciation & Amortization (10) (31) -68% Interest Expense - (3) -100% Interest Income 1 1 0% Other Income (Expense) 7 9 -22% Benefit (Provision)
Slide 10: Nickel Mining
NICKEL MINING Period on Period 3Q 2018 3Q 2017 % Shipment (in WMT) N/A 219,035 -100% Average Nickel Grade N/A 1.47% -100% Average Selling Price (in USD) N/A $21 -100% Revenue (in PHP millions) N/A P242 -100% YTD Comparison 9M 2018 9M 2017 % Shipment (in WMT) 482,762 476,155 1% Average Nickel Grade 1
Slide 11: Off-Grid Power
OFF-GRID POWER (In Million Php) 3Q 2018 3Q 2017 % Power Revenues 1,148 675 70% COS and Operating Expenses (Cash) (943) (500) 89% EBITDA 205 175 17% Depreciation & Amortization (47) (52) -10% Interest Expense (9) (7) 29% Interest Income 1 - 100% Other Income (Expense) - - Benefit (Provision) for Inco
Slide 12: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD (stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 3Q 2018 3Q 2017 % Revenues 6% 5,592 5,336 COS & Operating Expenses (Cash) (1,657) (1,411) -1% EBITDA 9% 3,935 3,925 Depreciation & Amortization (753) (852) 11% Interest Expense (494) (454) 22% Inte
Slide 13: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD HOLDINGS (not Maynilad stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 3Q 2018 3Q 2017 % Revenues 5,592 5,337 6% COS & Operating Expenses (Cash) (1,657) (1,412) -1% EBITDA 3,935 3,925 9% Depreciation & Amortization (868) (952) 9% Interest Expense
Slide 14: Holdings' Balance Sheet
HOLDINGS’ BALANCE SHEET • Parent Company net cash positive with PHP 6.9 BN (In Million Php) 30 Sept ‘18 31 Dec ‘17 % Cash & Cash Equivalents* 7,511 8,502 -12% 2,445 2,031 20% Receivables** 15,450 15,450 0% Investments in subsidiaries and associates 114 110 4% Other assets Total assets 25,520 26,093
Slide 15: Disclaimer
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 conta
Slide 16: Drivers of Core Net Income (9M)
DRIVERS OF CORE NET INCOME (In Million Php) 9M 2018 9M 2017 Change % % of Core Semirara 5,064 6,491 (1,427) -22% 47% Real Estate Development 2,704 2,654 50 2% 25% Construction 952 851 101 12% 9% DMCI Mining 133 117 16 14% 1% DMCI Power 337 324 13 4% 3% Maynilad (25% effective) 1,476 1,335 141 11% 14
Slide 17: Real Estate Development
Real Estate Development (In Million Php) 9M 2018 9M 2017 % Real Estate Revenues 14,747 14,434 2% COS & Operating Expenses (Cash) (11,292) (10,948) 3% EBITDA 3,455 3,486 -1% Depreciation & Amortization (312) (249) 25% Interest Expense (120) (249) -52% Interest Income 253 148 71% Other Income (Expense
Slide 18: Real Estate Development
Real Estate Development Php (in 9M 2018 9M 2017 % Change millions) Units PHP 30,310 28,371 +7% Parking 3,169 2,972 +7% Total PHP 33,479 31,343 +7% 9M 2018 9M 2017 % Change # of Units 6,854 7,684 -10% # of Parking 4,461 4,516 -1% Php (in 9M 2018 9M 2017 % Change millions) Price / Unit PHP 4.42 PHP 3.
Slide 19: Construction
CONSTRUCTION • Core Net Income for DMCI Holdings up +36% for 1H 2018 due to realization of variation orders from completed projects and higher building accomplishment rate (In Million Php) 9M 2018 9M 2017 % Construction Revenues 10,491 9,052 16% COS and Operating Expenses (Cash) (8,745) (7,408) 18%
Slide 20: Construction
CONSTRUCTION Booked Revenues Backlog as of Product Line Contract 30 Sept ’17* % of Total Revenues Jan-Sept Total to (includes related as of party) 31 Dec ‘16 ‘17 Date Buildings 20,785 8,782 3,411 12,193 8,592 32% Infra 37,399 19,691 3,368 23,059 14,340 55% Power 19,296 17,790 1,045 18,835 461 2% Uti
Slide 21: Nickel Mining
NICKEL MINING (In Million Php) 9M 2018 9M 2017 % Nickel Ore Revenues 978 700 40% COS and Operating Expenses (Cash) (597) (484) 23% EBITDA 381 216 76% Depreciation & Amortization (44) (104) -58% Interest Expense (4) (9) -56% Interest Income 2 4 -50% Other Income (Expense) 21 11 91% Benefit (Provision
Slide 22: Off-Grid Power
OFF-GRID POWER (In Million Php) 9M 2018 9M 2017 % Power Revenues 2,937 2,049 43% COS and Operating Expenses (Cash) (2,365) (1,495) 58% EBITDA 572 554 3% Depreciation & Amortization (138) (153) -10% Interest Expense (24) (20) 20% Interest Income 1 - 100% Other Income (Expense) - - 0% Benefit (Provisi
Slide 23: Off-Grid Power
OFF-GRID POWER Operational Indicators 9M 2018 9M 2017 % Sales Volume, GwH *excluding Sultan Kudarat 225.95 181.43 25% Masbate 81.99 73.73 11% Palawan 96.35 69.32 39% Mindoro 47.61 38.38 24% Sultan Kudarat 0.05 0.11 -55% Average Selling Price (ASP), Php/kWh Masbate 15.15 12.83 18% Palawan 11.51 9.97
Slide 24: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD HOLDINGS (not Maynilad stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 9M 2018 9M 2017 % Revenues 16,553 15,578 6% COS & Operating Expenses (Cash) (4,744) (4,782) -1% EBITDA 11,809 10,796 9% Depreciation & Amortization (2,545) (2,325) 9% Interest
Slide 25: Water Concession (Maynilad)
*Figures presented are taken from MAYNILAD (stand-alone) WATER CONCESSION (MAYNILAD*) (In Million Php) 9M 2018 9M 2017 % Revenues 6% 16,553 15,578 COS & Operating Expenses (Cash) (4,742) (4,780) -1% EBITDA 9% 11,811 10,798 Depreciation & Amortization (2,202) (1,980) 11% Interest Expense (1,663) (1,3
Slide 26: Semirara Consolidated
Semirara Consolidated (In Million Php) 9M 2018 9M 2017 % Revenues 30,868 31,933 -3% COS & Operating Expenses (Cash) (14,866) (14,404) 3% EBITDA 16,002 17,529 -9% Depreciation & Amortization (5,713) (4,486) 27% Interest Expense (611) (473) 29% Interest Income 91 73 25% Other Income (Expense) (438) (1
Slide 27: Semirara Consolidated
Semirara Consolidated (In Million Php) 3Q 2018 3Q 2017 % Revenues 6,909 12,082 -43% COS & Operating Expenses (Cash) (3,809) (6,092) -37% EBITDA 3,100 5,990 -48% Depreciation & Amortization (1,784) (1,760) 1% Interest Expense (194) (174) 11% Interest Income 13 20 -35% Other Income (Expense) (143) 37
Slide 28: Semirara Coal
Semirara Coal (In Million Php) 3Q 2018 3Q 2017 % Coal Revenues 1,836 5,901 -69% COS & Operating Expenses (cash) (1,648) (3,391) -51% EBITDA 188 2,510 -93% Depreciation & Amortization (843) (1,088) -23% Interest Expense (59) (81) -27% Interest Income (1) 10 -110% Other Income (Expense) (184) (25) 636
Slide 29: Semirara Coal
Semirara Coal (In Million Php) 9M 2018 9M 2017 % Coal Revenues 17,674 17,021 4% COS & Operating Expenses (Cash) (9,365) (8,491) 10% EBITDA 8,309 8,530 -3% Depreciation & Amortization (2,943) (2,638) 12% Interest Expense (247) (210) 18% Interest Income 48 39 23% Other Income (Expense) (486) (162) 200
Slide 30: Semirara Power (SCPC & SLPGC)
Semirara Power (SCPC & SLPGC) (In Million Php) 9M 2018 9M 2017 % Power Revenues 13,194 14,912 -12% COS & Operating Expenses (Cash) (5,501) (5,913) -7% EBITDA 7,693 8,999 -15% Depreciation & Amortization (2,770) (1,848) 50% Interest Expense (364) (263) 38% Interest Income 43 34 26% Other Income (Expe
Slide 31: Semirara Power (SCPC & SLPGC)
Semirara Power (SCPC & SLPGC) (In Million Php) 3Q 2018 3Q 2017 % Power Revenues 5,073 6,181 -18% COS & Operating Expenses (Cash) (2,161) (2,701) -20% EBITDA 2,912 3,480 -16% Depreciation & Amortization (941) (672) 40% Interest Expense (135) (93) 45% Interest Income 14 10 40% Other Income (Expense) 4
Slide 32: Semirara Power (SCPC)
Semirara Power (SCPC) (In Million Php) 9M 2018 9M 2017 % Power Revenues 9,763 9,386 4% COS & Operating Expenses (Cash) (4,344) (4,140) 5% EBITDA 5,419 5,246 3% Depreciation & Amortization (1,873) (893) 110% Interest Expense (120) (38) 216% Interest Income 14 6 133% Other Income (Expense) 14 7 100% B
Slide 33: Semirara Power (SCPC)
Semirara Power (SCPC) (In Million Php) 3Q 2018 3Q 2017 % Power Revenues 4,072 4,022 1% COS & Operating Expenses (Cash) (1,853) (2,046) -9% EBITDA 2,219 1,976 12% Depreciation & Amortization (638) (306) 108% Interest Expense (45) (17) 165% Interest Income 6 2 200% Other Income (Expense) 14 18 -22% Be
Slide 34: Semirara Power (SLPGC)
Semirara Power (SLPGC) (In Million Php) 9M 2018 9M 2017 % Power Revenues 3,431 5,526 -38% COS & Operating Expenses (Cash) (1,157) (1,773) -35% EBITDA 2,274 3,753 -39% Depreciation & Amortization (897) (955) -6% Interest Expense (244) (225) 8% Interest Income 29 28 4% Other Income (Expense) 34 44 -23
Slide 35: Semirara Power (SLPGC)
Semirara Power (SLPGC) (In Million Php) 3Q 2018 3Q 2017 % Power Revenues 1,001 2,159 -54% COS & Operating Expenses (Cash) (308) (655) -53% EBITDA 693 1,504 -54% Depreciation & Amortization (303) (366) -17% Interest Expense (90) (76) 18% Interest Income 8 8 0% Other Income (Expense) 27 44 -39% Benefi