Analysts' Briefing: Q1 2024 Results

Q1 2024 Analysts' Briefing

08 May 2024 | Makati City

via remote communication

CONTRIBUTION HIGHLIGHTS

Reduced profitability on mostly weak contributions

In Php mn	Q1 2024	Q1 2023	Change
SMPC (56.65%)	3,691	5,114	-28%
DMCI Homes	684	994	-31%
Maynilad (25%)	663	523	27%
DMCI Power	264	134	97%
D.M. Consunji, Inc.	98	273	-64%
Parent and others	30	(1)	3,100%
DMCI Mining	(22)	473	-105%
Core net income	5,408	7,510	-28%
Nonrecurring items	196	(4)	5,000%
Reported net income	5,604	7,506	-25%

KEY TAKEAWAYS

• Earnings dropped YoY on weaker contributions from core businesses but improved QoQ (+19% from Php 4.7 bn) and versus pre-COVID (+95% from Php 2.9 bn)
• Utilities businesses (Maynilad and DMCI Power) delivered remarkable results while others sustained sharp drops
• SMPC, DMCI Homes and Maynilad contributed 93% of core net income
• 2024 nonrecurring gain relates to DMCI Homes' land sale to a joint venture with Marubeni Corporation
• 2023 nonrecurring loss mainly pertains to miscellaneous Maynilad expenses

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	2

CONSOLIDATED HIGHLIGHTS

Challenging markets weigh down topline

In Php mn		Q1 2024	Q1 2023*	Change
Revenues		27,430	33,032		-17%
Cost of sales		13,396	13,396		0%
Core EBITDA		9,623	14,105		-32%
Core net income		5,408	7,510		-28%
Nonrecurring items		196	(4)		5,000%
Reported net income		5,604	7,506		-25%
In Php bn	Mar 2024		Dec 2023		Change
Debt*	48.0		49.5		-3%
Short-term	1.4		1.5		-7%
Long-term	46.6		47.9		-3%
Ending cash balance	38.7		32.2		20%

*rounding may cause total not to match the sum of parts

**restated 2023 figures following DMCI Homes' implementation of PFRS 15 (60 to 65), effective January 1, 2024

KEY TAKEAWAYS

• Revenues fell on weaker commodity and electricity prices, lower construction accomplishments and less real estate accounts qualified for recognition
• Flat COS as reduced construction accomplishments and fuel costs offset higher coal and nickel expenses
• Net finance costs plunged by 69% to Php 91 mn owing to improved DMCI and SMPC net cash position, higher interest rates and in-house financing income
• Depreciation and amortization up 17% to Php 2.20 bn on higher shipments, new mining equipment acquisitions and capitalized stripping asset, all under SMPC
• Earnings per share fell from Php 0.57 to Php 0.42; healthy return on equity (5% for three-month period)

NOTE: See slide 23 for Debt Profile

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	3

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

In Php mn	Mar 2024	Dec 2023	Change
Cash and cash equivalents	38,665	32,158	20%
Receivables and contract asset	51,180	53,408	-4%
Inventories	67,943	67,902	0%
Investments in associates	21,260	19,092	11%
Fixed assets	53,269	54,266	-2%
Others	19,533	21,169	-8%
Total Assets	251,850	247,995	2%
Accounts and other payables*	35,522	30,496	16%
Contract liabilities	18,994	19,351	-2%
Loans payable	48,011	49,469	-3%
Others	9,899	11,242	-12%
Total Liabilities	112,426	110,558	2%
Total Equity	139,424	137,437	1%
Total Liabilities and Equity	251,850	247,995	2%
Current Ratio	274%	277%
Quick ratio	107%	99%
Net debt/Equity	7%	13%
BVPS	8.63	8.21	5%

*Includes accounts, government share and dividends payable

KEY TAKEAWAYS

• Total assets flat as higher cash generation and investments in associates offset reduced receivables, fixed assets and prepaid expenses
• Double-digitgrowth in investments owing to cash infusion of DMCI Homes in joint venture companies (Php 2.8 bn)
• Higher accounts and other payables driven by dividends payable (Php 6.6 bn)
• Loans payable down on regular loan amortizations of SMPC (Php 1.1 bn) and DMCI Homes (Php 553 mn)
• Financial position remained healthy as all key liquidity, leverage and BVPS improved
• Last April 4, the Board of Directors declared Php 0.72 per share (special and regular) or Php 9.6 billion in dividends; dividends payout on May 3

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	4

CONSTRUCTION FINANCIAL HIGHLIGHTS

Revenues slump on sluggish order book, project delays

In Php mn		Q1 2024	Q1 2023	Change
Revenues		3,693	4,511	-18%
COS		3,242	3,896	-17%
OPEX		149	103	46%
Core EBITDA		301	512	-41%
Core net income		148	302	-51%
Nonrecurring items		-	15	-100%
Reported net income		148	317	-53%
Capex		10	216	-95%
In Php bn	Mar 2024		Dec 2023	Change
Debt*	-		-	0%
Ending cash balance	4.4		4.6	-4%

*Bank loans

NOTE: See slide 23 for Debt Profile

KEY TAKEAWAYS

• Revenues contracted on combined effect of reduced construction activities, project delays and less ongoing projects
• COS decline in-line with topline; OPEX jumped owing to procurement of telephone system and program, higher personnel costs
• Core EBITDA and net income margins narrowed to 8% (from 11), and 4% (from 7%), respectively
• Depreciation fell to Php 143 mn (from Php 189 mn) on minimal capex amid fewer project requirements
• Debt-freeon both periods; net debt-to-equity improved to -57% (from -60%) on lower cash balance

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	5

CONSTRUCTION ORDER BOOK

Falling backlog on slow contract replacement

Revenue Breakdown		Q1 2024	Q1 2023	Change
In Php mn
Building*						2,067		2,353		-12%
Infrastructure						446		1,116		-60%
Joint Ventures	(JV) and billables		867		514		69%
Allied Services and others**			312		529		-41%
Total Revenues			3,693		4,511		-18%
In Php bn		Dec		Q1	Change	Booked	Mar
	2023	Awarded	Order	Revenues	2024
Building*		19.7		0.3	0.1	2.1	18.0
Infrastructure		2.3		0.2	(0.0)	0.4	2.0
Joint Ventures		19.9		-	(0.3)	0.7	18.9
Total		41.9		0.5	(0.2)	3.2	38.9

*Formerly presented as Building, Utilities and Energy projects **Formerly Project Support

**North South Commuter Railway Project

KEY TAKEAWAYS

• Topline mostly from Building projects (56%); steeper decline in Infrastructure and Allied Services due to fewer ongoing projects and slowdown in contract awarding
• Higher revenues from Joint Ventures driven by NSCR*** contract package (CP) 1
• Slim order book on sluggish external demand; two big-ticket projects yet to begin revenue recognition
• Joint Venture projects accounted for 49% of order book, followed by Building (46%) and Infrastructure (5%)
• Newly-awardedprojects from affiliates, i.e. Design-and-Build of Long Point Causeway for Berong Nickel Corporation and a 16MW bunker-fired powerplant for DMCI Power

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	6

REAL ESTATE FINANCIAL HIGHLIGHTS

Revenues continue to taper on slow pandemic sales

In Php mn	Q1 2024	Q1 2023*	Change
Revenues	3,061		4,849	-37%
COS	1,820		2,912	-38%
OPEX	807		762	6%
Core EBITDA	434		1,174	-63%
Other Income	783		634	24%
Core net income	699		1,052	-34%
Reported net income	893		1,052	-15%
Capex	4,284		4,241	1%
In Php bn		Mar 2024		Dec 2023	Change
Debt*		36.8		37.4	-2%
Ending cash balance		4.4		4.4	0%

*Implementation (effective 2024) of IFRS 15 changes to record Finance Costs as outright expense.

Restated 2023 figures for reference only. See Slide 30 for further details **Bank loans

KEY TAKEAWAYS

• Revenues decelerated for third consecutive quarter on lower recognition from both ongoing and newly-qualified accounts, tempered by less reversals from cancellations
• Slower drop (29%) in total cash costs from Php 3.7 billion to Php 2.6 billion mainly due to increased personnel costs, sales incentives and digital marketing initiatives
• While core EBITDA margins narrowed from 24% to 14%, core net income margin slightly widened from 22% to 23% on higher rental and finance income and lower provisions for income taxes
• Other income expanded to Php 783 mn on higher rental income
• Flattish capex as reduced land and equipment acquisitions (from Php 328 mn to Php 185 mn) muted the effect of higher construction spending (from Php 3.9 bn to Php 4.0 bn)

NOTE: See slide 23 for Debt Profile

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	7

REAL ESTATE OPERATIONAL HIGHLIGHTS

New product formats boost residential unit sales

Key Metrics	Q1 2024	Q1 2023	Change
Sales and reservations (units)	2,391	2,478	-4%
Residential units	1,568	1,417	11%
Parking slots	823	1,061	-22%
Ave. Selling Price (Php mn/unit)	6.82	7.26	-6%
Ave. Selling Price (Php mn/sqm)	0.146	0.134	9%
Total Sales Value (Php mn)	11,391	11,138	2%
Projects Launched
Number	1	2	-50%
Sales Value (Php bn)	22.1	21.9	1%
Unbooked Revenues (Php bn)	73.2	65.9	11%
Inventory* (Php bn)	76.7	65.5	17%
RFO	19.3	16.5	17%
Pre-selling	57.4	49.0	17%
Land Bank Size (in ha)	196.1	217.4	-10%
Metro Manila	111.1	112.8	-2%
Luzon	75.1	96.9	-22%
Visayas	6.5	6.5	0%
Mindanao	3.4	1.1	209%

*includes parking inventory

KEY TAKEAWAYS

• Decline in total units sold due to sharp drop in parking slot sales; sale of residential units boosted by The Valeron Tower (VAL) and Solmera Coast (SLC)
• Recently-launchedVAL, Anissa Heights (ANH) and SLC accounted for 42% of total units sold
• ASP/unit down due to smaller-sized ANH units; higher ASP/sqm mainly due to launch of VAL located in prime location (Pasig City)
• Higher unbooked revenues and inventory driven by seven project launches since 2022; total sales value of which at Php 67.1 bn
• Remaining SLC and ANH inventory at 15% and 3%, respectively

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	8

INTEGRATED ENERGY FINANCIAL HIGHLIGHTS

Lower selling prices, higher costs curb profits

In Php mn		Q1 2024	Q1 2023	Change
Revenues		18,426		20,708	-11%
COS		6,871		5,154	33%
OPEX		1,134		1,117	2%
Government Share		2,031		3,217	-37%
Core EBITDA		8,390		11,220	-25%
Depreciation and		1,742		1,244	40%
Amortization (D&A)
Core net income		6,538		9,029	-25%
Reported net income		6,538		9,029	-25%
Capex		1,785		832	115%
In Php bn	Mar 2024		Dec 2023	Change
Debt*	5.7		6.7	-15%
Ending cash balance	25.0		19.0	32%

*Bank loans

KEY TAKEAWAYS

• Revenues declined on stabilizing coal and electricity prices, largely offset by higher sales volume
• Cash costs grew on higher shipments and dispatch, tempered by lower government share
• Core EBITDA and net income margins thinned to 46% (from 54%) and 36% (from 44%), respectively
• D&A surged due to additional coal sales volume, mining equipment and capitalized stripping asset
• Other income rose to Php 210 mn (from Php 309 mn loss) on net forex gain (Php 78 mn), fly ash sale (Php 120 mn) and gas turbine storage fees (Php 7 mn)

NOTE: See slide 23 for Debt Profile

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	9

COAL OPERATING HIGHLIGHTS

Shift to single mine raises strip ratio, lowers production

	Q1 2024	Q1 2023	Change
Strip Ratio (S/R)		8.4
Aggregate*	12.5	49%
Effective**	12.5	8.4	49%
Production (in MMT)	4.9	6.1	-20%
Sales Volume (in MMT)	4.8	3.5	37%
Exports	2.7	1.5	78%
Domestic	2.1	2.0	6%
Own Power Plants	1.1	0.9	22%
Other Power Plants	0.5	0.7	-29%
Industrial Plants	0.2	0.2	0%
Cement	0.3	0.2	50%
ASP (in Php / MT)	2,978	4,427	-33%
High-grade Coal Ending	0.6	3.1	-81%
Inventory (in MMT)

*Actual S/R for Molave (2023) and Narra mines during the period ** Expensed S/R

***Includes inventory for 5,600, 5,300 and 5,100 kcal/kg quality coal

KEY TAKEAWAYS

• Higher S/R and lower production due to consolidation of operations to a single mine (Narra), increased stripping activities in 3 blocks and near-depletion of Molave mine last year
• FY2024 S/R remains at 13.2, 8% higher than the FY2023 actual S/R of 13.1
• Sales volume up on continuous shipments and strong Chinese (+119%) and internal demand (+22%)
• China accounted for 87% of exports, followed by South Korea (11%) and Brunei (2%)
• ASP fell on stabilizing indices and higher shipments (from 17% of total shipments to 29%) of lower-pricednon-commercial grade coal

CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • UPDATES • OUTLOOK	10