2006 Report - DM Consunji, Inc

businessynergy
We have built a strong foundation
in construction and engineering and
created a focused multi-business in
real estate, coal mining and recently,
we ventured into power and water.
Like a deck of cards standing in
full force, creating a solid base that
supports each distinction, the synergy
among our businesses has built success
from the ground up, complementing
each core competencies.
And our
focus has been and will always be on
the quality of our investments as we
reach a new level of excellence.
contents
DMCI Holdings, Inc. Annual Report 2006
Message to Stockholders
02
Financial Highlights
07
Construction
08
Real Estate12
Coal Mining16
Power and Water
20
Corporate Governance
22
Corporate Social Responsibility
24
Board of Directors
26
Subsidiaries’ Principal Officers
28
Financial Statements
IBC
Our Vision
To be an institution in the construction
industry committed to the economic and social
development of the country
To be the leading integrated Philippine
construction company
To be a well-managed professional company with
strong technical and commercial performance
adhering to the highest ethical standards
To provide opportunity for employees to develop
talents, skills and personality, rewarding merit and
hard work with fair compensation to live in dignity
To be the most innovative and cost-efficient
provider of comprehensive construction services.
our
fellow
stockholders,
Using our core competencies in general engineering and construction management, DMCI Holdings, Inc. has laid new foundations
for a focused multi-business company aimed at stable growth and sustainable returns. The results from our coal mining and real
estate sectors led the way towards more recurring business as envisioned. Late in 2006, we ventured into two new industries,
namely water and power with the successful acquisition of Maynilad Water Services, Inc. and the off-grid power supply rights over
Masbate Power Generation. Below is a graphic illustration of this direction:
synergy in
business operations
Strategic acquisitions and investments capitalising on core competencies
LARGEST PRIVATE
WATER UTILITY
REAL ESTATE CONTRACTOR,
DEVELOPER AND PROJECT MANAGER
Pipe laying and
water systems engineering
Structural construction
and engineering
Power plant construction
Materials handling
and equipment management
COAL SUPPLY TO POWER PLANTS
C O R P O R A T I O N
SMALL POWER UTILITIES GROUP (SPUG)
OPERATOR AND LOW-COST
POWER PRODUCER USING
COAL-FIRED POWER PLANTS
LARGEST COAL MINE
IN THE PHILIPPINES
“Our new investments in the water and power
segments are also expected to contribute
significantly towards revenue growth and profits.
With this, we are confident with our direction
towards focused expansion.”
Net Income
1,350
1,150
950
750
550
350
150
-50
-250
2002
2003
2004
2005
2006
CONSTRUCTION
REAL ESTATE
COAL MINING
Revenues
6,000
5,000
4,000
3,000
2,000
1,000
0
2002
2003
2004
2005
2006
CONSTRUCTION
REAL ESTATE
COAL MINING
With the skills and resources gained in more than 50 years
billion, respectively. Our total revenues amounted to P8.702
of doing construction, D.M. Consunji, Inc. (“DMCI”) will be
billion, a decrease of 13% from P10.029 billion in 2005 due to
the focal point upon which the Company will build its new
the low demand for local coal but was compensated by the
platform of focused multiple businesses. DMCI will supply its
improvement in the real estate and construction sectors. The
construction know-how, engineering expertise and technical
accompanying graphs are comparative figures for each of the
capabilities to the other businesses providing a total synergy in
sectors.
business operations.
We note that through the years, we have been increasing
In 2006, your company earned a consolidated net income of
and expanding our revenue base and income streams initially
P1.383 billion vis-a-vis P4.181 billion in 2005 and excluding
dominated by construction.
the one-time gain from the sale of shares in the coal mining
segments are now delivering revenues and profits exceeding the
business, the recurring incomes are P1.034 billion and P1.814
construction business. Our new investments in the water and
Our mining and real estate
Stock
Price
(2005 & 2006)
(Php per share)
6.1
6.5
6
5.5
5.5
4.9
5
4
3.5
4.35
4.1
4.5
4.1
3
2.7
3.1
2.6
Feb
Mar
Apr
2.75
3.00
3.2
3.05
Sep
Oct
3.1
2.44
2
Jan
3.4
3.75
3.4
2.5
3.75
3.75
3.85
3.45
3.15
5.1
May
Jun
Jul
Aug
Nov
Dec
power segments are also expected to contribute significantly
towards revenue growth and profits. With this, we are confident
with our direction towards focused expansion.
The investments we are making today will not just sustain but
DAVID M. CONSUNJI
Chairman
enhance future dividends consistent with the increase in our
year-end stock prices from P3.15 in 2005 to P6.10 in 2006.
On April 3, 2007 and June 15, 2006, your Board of Directors
approved and declared cash dividend of P0.10 per share or
P242.35 in 2007 and P225.55 2006. These were paid on May
28, 2007 and July 20, 2006, respectively.
CESAR A. BUENAVENTURA
Vice Chairman
With these initiatives, we are transforming DMCI Holdings,
Inc. into an infrastructure conglomerate having interests in
construction, mining, real estate, water distribution, and power
generation providing basic services to a developing economy.
Rest assured that we shall econtinue to direct our efforts
towards improving shareholder value. We thank you for your
continued support and confidence.
ISIDRO A. CONSUNJI
President
financial
highlights
General Construction
2006
Revenue
1,747 Net Income before minority interest
but after tax
137 Depreciation, Depletion and Amortization
60 Net Finance income (expense)
(6)
Income taxes
86 Property, plant and equipment additions
139 Segment Assets
5,405 Segment Liabilities
1,092 Coal Mining Real Estate
Development
4,688 1,905 601 1,336 (159)
309 1,504 6,265 2,254 287
12
112
59
35
5,541
3,947
Parent Company & Others
Total
362 8,702
358
11
59
9
13
3,361
1,619
1,383
1,419
6
463
1,691
20,572
8,912
2005
Revenue
2,709 5,553 1,508 178 10,029
Net Income before minority interest
but after tax
74 1,592 140 2,375 4,181
Depreciation, Depletion and Amortization
92 1,239 4
3
1,338
Net Finance income (expense)
18 (63)
(10)
42 (14)
Income taxes
51 423 81 12 567
Property, plant and equipment additions
84 1,798 4
- 1,886
Segment Assets
3,743 6,935 6,026 327 17,031
Segment Liabilities
923 2,798 2,683 148 6,552
6IZIRYIERH2IX-RGSQI
(Amounts in million Php)
&97-2)777)+1)287
-R1MPPMSR4IWSW
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&97-2)777)+1)287
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4EVIRX
construction
Our core competencies in general construction and engineering
has once again been proven with notable projects awarded
during the year and remarkable year-end financial results.
During the year, D. M. Consunji, Inc. (DMCI) posted an upsurge in
net income of 85% and gained revenues from exisiting projects
such as the KAMANAVA Area Flood Control & Drainage, SubicTarlac Express Deck Fabrication, Robinson’s One Adriatico Tower,
Magsaysay Bridge Deck Fabrication in Mindanao, and Paragon
Corporate Center in Alabang.
In the last quarter of the year, two projects were awarded
to DMCI which are: the Shangri-la Resort and Spa Boracay
and Robinson’s Cybergate Tower 3 with contract amount of
P1.2 billion and P265 million respectively. These projects are
expected to complete on May and February 2008 respectively.
DMCI has also demonstrated its expertise and competencies
in other construction related activities through its Special
Business Units: Equipment Management Business Unit (EMD),
3,200
137
2,790
127
the Ready Mix Concrete Business Unit (RMC), and the Formwork
140
Management Business Unit (FMBU).
130
118
2,700
150
120
110
2,200
1,747
74
1,949
1,953
1,700
2003
2004
2005
2006
DMCI recorded an orderbook P2.541 billion as of year-end 2006
100
including six projects awarded during the year amounting to
90
P1.753 billion. The Company has also successfully tapped the
80
foreign market by providing technical and management services
70
on concrete pre-casting and monorail station construction to a
Japanese company for Dubai Palm Jumairah Monorail System.
In addition, DMCI has been providing construction services to a
US-based company in Diego Garcia. DMCI continues to explore
expanding its presence in the UAE market.
“During the year, D. M. Consunji, Inc. (DMCI) posted an upsurge in
net income of 85% and gained revenues from existing projects.”
DMCI is currently gearing up its organization to be able to serve
the engineering and construction requirements of the Group’s
investments into the water utility and power business.
The challenges of the diversified market and the country’s
economic position are shaping the grounds of growth and
profitability as DMCI will continue to live with its values and
ethics. Our experienced people coupled with the management
support will be the key elements to work in synchronize with
the challenges ahead.
DMCI is working on deck fabrication of Subic-Tarlac Expressway Package 2
which costs P254 million. It is expected to complete on September 2007.
subic-tarlac express deck fabrication
10
10
paragon corporate center
“The entry of the Company
into the water utility and
power businesses will
also prove helpful to our
construction business as it will
require engineering and water
system for the improvement
of water services, and our
general construction and
maintenance management
expertise in power plant
construction.”
11
11
real estate
12
12
4,900
4,354
970
4,400
770
3,900
3,400
2,492
2,900
2,400
1,900
1,400
370
1,508
1,240
287
710
900
400
570
1,905
-23
470
2003
36
718
2004
140
2005
170
-30
2006
More than 50 years have passed since David M. Consunji first
Our mission is to be the leading choice among homebuyers who
set forth to establish a company that would gain repute for
want family-oriented developments that offer uncompromised
excellence in the construction industry. This institution has
value, along with real affordable comforts. The company’s
paved the way for another company to make its own mark for
impressive list of projects targets the underserved market of
the Filipino people, by providing quality and affordable homes
middle income earners who seek to realize their dream: to own
for the young, middle income family: DMCI Homes.
a home they can truly call their own. It is our desire to create
clients’ satisfaction and lasting value for them, and provide a
DMCI Homes has gone far with its 21 existing and ongoing
rewarding work environment for our employees.
housing development projects strategically located all over
Metro Manila, South Luzon, and Boracay, offering approximately
We seek to invest and produce lifestyle-related housing projects
12,000 homes to mid-income families.
that showcase its in-city modern living, resort living, medium
density structure, themed development, and worry-free living with
property management. We partner with responsive customercentered management and sales teams to focus primarily on the
buying power of the average and mid-income Filipino families
here and abroad. Our international sales accounted 20% of our
total sales for the year and we see Overseas Filipino Workers
(OFWs) as a growing market to cater to and offer our ongoing
and forthcoming projects in 2007.
During the year, we have started five new projects namely: Tivoli
Garden Residences (Mandaluyong), Cypress Towers (Taguig),
Rosewood Pointe (Taguig), Riverfront Residences (Pasig), and
13
Alta Vista Boracay (Boracay). DMCI Homes does not only aim to
DMCI Homes is also in the business of understanding our
liquefy its land bank but it has entered into joint ventures with
customers, knowing what exactly they want to know, what
Crown Equities, Inc. for the development of Cypress Towers,
is important to them, and what suits their needs. We are
and with Equitable PCI Bank for the development of Riverfront
empowering today’s buyers with the knowledge that there is
Residences located in Pasig.
a variety of exciting living options from which they can choose
from. Any DMCI Homes purchase refers to the smart choice
Being one of our fast growing subsidiaries, DMCI Homes is
made by informed buyers, who are influenced by aspirations to
targeting to sell 3,422 units valued at approximately Php 7.5
search for the right home. For these reasons, we are shaping
billion for 2007. Its exceptional performance during the year
our company around our employees and their relationships
resulted to Php 287 million net income and Php 1.905 billion
with our clients. Their personal understanding of our customers’
of revenues.
needs leads to the kind of effective solutions for which our
employees actively deliver consistent service.
From a virtually young company started seven years ago,
DMCI Homes is now ready to embark on a more ambitious
direction, as the only triple A builder / developer catering to
the underserved market with quality homes in fully serviced,
centrally located communities. Last December, the company has
focused its efforts to seriously enhancing its brand as the “hero
of the underserved” and accepting the challenge to connect
with its target market.
14
15
16
16
coalmining
6,000
1,246
1,400
5,553
5,500
4,688
5,000
1,000
5,066
4,500
1,200
1,002
4,000
800
3,500
600
3,000
400
2,500
2,000
2,177
1,517
353
200
4
1,500
0
102
2002
2003
2004
2005
2006
*NET OF MINORITY
“Being the prime coal producer in
the country today, with an estimated
of 150 million metric tons of coal
reserve, Semirara has expanded its
market to cement companies and
industrial users of coal.”
Semirara Mining Corporation (Semirara) sees greater challenges
ahead despite the lower profitable level in the year 2006.
Being the prime coal producer in the country today, with an
estimated of 150 million metric tons of coal reserve, Semirara
has expanded its market to cement companies and industrial
users of coal. Sales to industrial market increased by 56% to
49 thousand MTs in the current period from 31 thousand MTs in
the previous year. Market diversification of Semirara has been
a success with the significant increase in demand of coal for
non-traditional customers.
Despite the decline in its overall results, Semirara enjoys its
competitiveness which showcases its long-term growth, stability,
and profitability. Semirara sees a stronger place to expand its
coal delivery to international market as it made a trial shipment
of coal to South China in February 2007 with 28,835 metric
tons. This was followed by the delivery of 22,711 metric tons of
coal to India last May. Consequently, after the successful trial
shipments to China and India, more coal supply contracts have
been signed between different export buyers, including major
international traders in the coal industry.
Semirara, represented by its stock symbol “SCC” does not only
stand for its being a publicly-listed mining company in the
country, but it pertains to its dedication to provide investment
17
returns, quality products and services, and social responsibility
to its Shareholders, Customers, and Community.
Shareholders
The long-term success that Semirara envisioned is to build
shareholder value.
Cash dividends have an important role
in providing our shareholders with a solid return on their
investments.
On March 6, 2006 the Board of Directors of
Semirara approved and declared cash dividend of P1.20 per
common share of P333.09 to stockholders of record as of March
27, 2006. This was paid on April 20, 2006. This was followed
by payment of another cash dividend of the same amount on
April 30, 2007 to stockholders of record as of April 12, 2007.
Customers
Semirara is dedicated to providing its customers the best
quality and good price of coal. Its expansion and modernization
programs were successfully executed that resulted to the
increase in material movement capacity of up to 4.5 million
metric tons run-on-mine coal per year, and the total waste
stripped up to 43%.
Expansion of the coal washing plant
has improved the quality of coal. Notably, the drying facilities
were installed during the year to cater to the cement industry,
which is a growing market segment of Semirara. With the two
panianminesite
unongmine
18
18
successful coal deliveries to emerging markets in Southeast
Electrification. Since 2000, Semirara has been actively providing
Asian countries, Semirara has realigned its business strategies
livelihood projects and free education benefiting more than
to improve and expand operations to provide competitive
500 families from the three barangays of the island—Semirara,
edge in the offshore market. Semirara gives high value to its
Alegria, and Tinogboc.
relationship with its customers.
Electrification project has served 946 households as of December
Community
2006 or 69% of the total households in the island.
Semirara, beyond its mining business, has been dedicated to
serve and protect the community where it operates. Semirara
Semirara has provided employment in which 80% accounts to
island has been benefiting from the various corporate social
mining jobs. Semirara also offers employment opportunities to
responsibility (CSR) projects of Semirara. Implementing CSR
the locals of Panay and other regions in the country.
projects are not just part of the Corporate Governance policies
of Semirara but as a social obligation and ethical responsibility
In contribution to the national wealth, Semirara has paid a total
which the company provides to one of its important stakeholders
of P884 million to the local and national government for the
—the people of Semirara Island.
period of 22 years since it took over Semirara Coal Corporation
in 1988. This includes the 16 years of mining operations in Unong
Semirara aims to fulfill the Five Es of its CSR programs—
mine with P286 million contributions, and 6 years operations in
Education,
Panian mine with P598 million.
Employment,
Economics,
Environment,
and
19
power
20
&water
$ 0 3 1 0 3 " 5 * 0 /
OUR NEW BUSINESSES
Our strategic acquisitions have placed your Company to a strong position towards business growth and
focused expansion. We have entered into new joint ventures in water and power industries. Our decision
to focus our efforts on the management of outside capital through joint ventures and new acquisitions was
well timed. We believe that this strategy will create a much more valuable enterprise as we expect favorable
contributions from our new businesses.
Water
Further, the consortium is planning to improve Maynilad’s non-
Your Company is confident that its acquisition of a water
revenue water (NRW) performance. Given the current NRW of
utility company will pave the way to succeeding growth. We
68%, we target to bring this down to 55% in 2007.
have established a 50-50 joint venture with Metro Pacific
Investments Corporation (MPIC) which is the DMCI-MPIC Water
Power
Company (DMCI-MPIC), that won the bid to acquire 84% stake
Recently, we established DMCI Power Corporation to venture
on Maynilad and last January 24, 2007, a formal turnover was
into the power sector, which will provide energy mainly to off-
held in Malacanang Palace.
grids, mining and industrial users. DMCI Power will concentrate
on developing and operating coal fired power plants fuelled by
Maynilad holds a 25-year exclusive concession, granted by
Semirara coal. During the last quarter of the year, we prepared
Metropolitan Water Sewerage System (MWSS) on behalf of
for the bid for Masbate Power Generation, one of the National
the Philippine Government, to provide water and sewerage
Power Corporation’s (NPC) off-grid, small power utilities group
services in the west zone of Metro Manila. Maynilad covers 9
(SPUG).
cities and 3 municipalities in Metro Manila, and one city and
Certificate (ECC) for the coal-fired power plant in Concepcion,
5 municipalities in the province of Cavite. Maynilad currently
Iloilo and we are expecting its release in 2007.
We also applied for the Environmental Compliance
supplies 2,100 million liters per day (mld) to about 6 million
people in the west zone area.
The privatization of Small Power Utilities Group (SPUG) Areas
was mandated by Department of Energy (DOE) Circular No.
We are optimistic that Maynilad will provide us solid returns
2004-01-001 issued on January 26, 2004. The circular called
given its huge and growing market.
Maynilad’s capital
for the periodic assessment of the requirements and prospects
expenditure over the life of the concession is P40 billion and
of bringing power generation and associated power delivery
we estimate construction works to DMCI of roughly 25% of P10
systems to commercial viability on an area-by-area basis,
billion. In 2006, Maynilad posted a net income of P1 billion
including a program to encourage private sector participation
and registered revenues of P7.585 billion. We are confident
in the SPUG areas.
that it will be one of the major players in your Company’s
long-term success in the years ahead.
21
corporategovernance
DMCI Holdings, Inc. is committed to continue the tradition of
consider substance over form in the presentation of accounts;
business ethics and integrity. Our management and employees
disclose and discuss all material risks; disclose and explain the
share that tradition in over 50 years of corporate existence.
rationale for all material estimates; show manner of compliance,
Now that our business has expanded, we are extending this
or explain deviations, if any, with applicable corporate governance
tradition to our subsidiaries and affiliates so we can make a
codes; discuss goals, plans, and progress; and provide access
difference in the lives of the people we work with.
to the register of shareholders showing beneficial ownership. In
addition to annual disclosures, the Company shall comply with
Recently, the Board of Directors has approved your Company’s
all applicable disclosure requirements. Disclosures should be
Code of Business Conduct and Ethics not only in compliance
timely and adequate to enable investors, third party analysts,
with the principles of Corporate Governance, but in respect with
or rating agencies to assess the quality of corporate governance
conducting business with honesty, dedication, accountability,
and the true financial condition of the Company.
and responsibility.
CODE OF BUSINESS CONDUCT AND ETHICS
Standards of Business Conduct
DMCI Holdings, Inc. (the “Company”) is committed to doing
Observance of Law – Directors, Executive Officers and
business in accordance with the highest professional standards,
Employees must carry out their duties with professionalism
business conduct and ethics and all applicable laws, rules, and
and in accordance with ethical standards. They must conduct
regulations in the Philippines.
The Company, its directors,
business in accordance with the law, the charter of the Company,
officers, and employees are dedicated to promote and adhere
and a high standard of commercial morality. They shall at all
to the principles of good corporate governance by observing
times act with loyalty to the Company, ensuring that its goals,
and maintaining its core business principles of accountability,
strategies, policies and practices are moral, proper, and legal.
integrity, fairness, and transparency.
They must be prepared to dissociate themselves from the
This Code of Business Conduct and Ethics (the “Code”) sets
Company in the event that despite their efforts, ethical and
forth the Company’s business principles and values which shall
legal standards are being seriously compromised. They should
guide and govern all business relationships of the Company, its
refer to the Company’s statements of best practice as part of
directors, officers and employees in carrying out their duties
their decision-making process.
and responsibilities effectively.
Conflict of Interest – Directors, Executive Officers and Employees
Principles and Values
owe a fiduciary duty to the Company that requires them to
Accountability – The Company shall take full responsibility for
act in the best interest of the Company. Actual and potential
all its business decisions, actions/inactions, and conduct, and
conflicts of interest should be avoided or otherwise identified,
shall perform its duties and functions with utmost responsibility,
disclosed, and explained in sufficient detail to enable valid
integrity, honesty, loyalty and efficiency. The Company’s principal
judgments to be made on their adverse impact. The persons
objective is to enhance economic value to all its stakeholders
who are conflicted should not participate in the discussion and
– employees, customers, shareholders and business partners
decision on the issue in question, nor be entitled to vote on any
– by making the most efficient use of resources and meeting its
resolution where they are conflicted. Related party contracts
environment, community, and social obligations.
should be disclosed in the annual report.
Transparency and Disclosure - To ensure transparency, the
Compliance - All Directors, Executive Officers and Employees
Company’s annual reports should disclose true and fair accounting
should strive to identify and raise potential issues before they
information prepared in accordance with applicable standards;
become problems and should ask about the application of
22
or Employee who becomes aware of any existing or potential
Corporate Governance
Board Committees
violation of this Code shall promptly notify the Company’s
2006-2007
this Code whenever in doubt. Any Director, Executive Officer
Compliance Officer. The Company will take such disciplinary or
preventive action as it deems appropriate to address any existing
or potential violation of this Code brought to its attention. The
Nomination and Election
Company will not tolerate retaliation for reports of violations of
this Code made in good faith.
Fair Dealings - The Company does not seek competitive
OSCAR S. REYES (Independent) Chairman
DAVID M. CONSUNJI
Member
ISIDRO A. CONSUNJI
Member
advantages through illegal or unethical business practices.
Each Director, Executive Officer and Employee should
endeavor to deal fairly with the Company’s customers,
Compensation and Remuneration
service providers, suppliers, and competitors. No Director,
Executive Officer or Employee should take unfair advantage
VICTOR S. LIMLINGAN (Independent)
Chairman
of anyone through manipulation, concealment, abuse of
JORGE A. CONSUNJI
Member
privilege information, misrepresentation of material facts, or
CESAR A. BUENAVENTURA
Member
any unfair dealing practices.
Confidentiality – Directors, Executive Officers, and Employees
Audit
must observe the confidentiality of non-public information and
not disclose it to any other person without the authority of
EVARISTO T. FRANCISCO (Independent) Chairman
the Board. A Director, Executive Officer or Employee who has a
OSCAR S. REYES (Independent)
Member
special allegiance to a particular shareholder may not disclose
ISIDRO A. CONSUNJI
Member
confidential information to that particular shareholder without
the authority of the Board.
HERBERT M. CONSUNJI
Corporate Opportunities - Each Director, Executive Officer and
Compliance Officer
Employee owes a duty to advance the Company’s legitimate
interests when the opportunity to do so arises. He may not:
CRISTINA C. GOTIANUN
(a) receive or seek to receive a benefit from opportunities that
Internal Auditor
are discovered through his involvement with the Company
(including, without limitation, his use of the Company’s property,
JORGE A. CONSUNJI
information, or his position); or (b) compete with the Company,
Special Committee on Violation of the Manual
directly or indirectly, for business opportunities in the areas (or
lines) of business in which the Company is engaged or in new
areas (or lines) of business in which the Company has disclosed
its intent or plans to engage.
23
corporatesocial
resposibility
Giving back to the Community…….
Whatever we gain, we want to give back to the community
where we operate, uplifting their economic condition as well
as empowering the people to be independent and productive.
The majority of our efforts focused on employment, education,
economy, environment, and electrification for the people of
Semirara Island.
Environmental Protection
Protecting and conserving the natural resources has been
mandated by the Mines and Geosciences Bureau’s Social
Development Management Program (SDMP) to small and largescale mining companies in the Philippines.
The SDMP is a
tool for the development and implementation of community
programs and activities in consultation and partnership with
the host and neighboring communities. The programs include
infrastructure, livelihood opportunities, education and health
projects, and other basic social services for the host and
neighboring communities.
In compliance with this program, Semirara spent a total of
P16 million for environmental programs during the year. The
company envisions to plant one million trees in 2012 through inland reforestation and to date, over 38,000 trees were planted
all over the island. Total reforestation since 2000 is 581,670
hills that include island-wide and Unong mine with 364,808
hills and 216,862 hills respectively. Semirara has also launched
Bantay-Gubat to protect and conserve existing forest trees.
These rehabilitation programs were participated by Semirara
employees and the communities.
In addition, Semirara is targeting 250 hectares of mangroves in
2012 for coastal protection. At present, mangrove plantation
has reached 183.4 hectares and various mangrove nurseries
were created all over the island.
24
Employment and Economic
In Divine Word School of Semirara Island (DWSSI), a total of
Semirara provides livelihood programs that have increased
538 pupils are enrolled and 330 from elementary and high
productivity and created jobs for the locals of the island. These
school graduates since 2003. Semirara has spent a total P25
are deep-sea fishing (Semirara Fishermen Association-SEMFA),
million for school facilities and improvements during the year.
farming (Integrated Pest Management-IPM), seaweed farming
The company is also providing enhancement programs for out-
(Lantay Method), and dressmaking.
of-school youth that teach technical skills in metal fabrication,
woodworking and oxy-ace, and benchwork welding practices.
SEMFA started fishing in 2001 with only one boat and 28
members. To date, there are five SEMFA boats acquired which
On the other hand, Semirara Training Center, Inc. (STCI) is a non-
benefited 200 families, and with total net sales of P2.4 million
stock, non-profit corporation that promotes manpower training
for the year.
Total available for distribution amounted to
and development programs to produce technically equipped
P1.569 million in which 50% of P784 thousand is the total
and vocationally skilled workforce, contributing to the economic
crew share.
and human development of the island of Semirara.
STCI
programs include technical (mobile equipment and industrial
IPM training aims to increase yield per hectare of rice, vegetables,
machine technology), short-term training program (machine
and corn which will generate extra income for farmers.
It
shop practice, automotive mechanic, refrigeration and air-
will also reduce production expenses and maximize available
conditioning, and industrial electricity), skills upgrading (basic
resources for crop production as well as maintain sustainable
pneumatics, electro-pneumatics, basic hydraulics, welding, and
supplies for basic farm commodities of the island. They have
motor rewinding), and women’s skills training and livelihood
organized a cooperative called Asosasyon ng Mga Magsasaka
programs (dressmaking, housekeeping/chambermaid, and food
at Mangingisda ng Barangay Alegria, Inc. (Association of
and beverage serving). During the year, Semirara has invested
Farmers and Fishermen of Barangay Alegria, Inc.).
a total of P2.7 million for STCI which comprises the operating
expenses, trainee allowances, and training equipment.
On the other hand, Semirara has supported the seaweed
farming and dressmaking which provided extra income
Electrification
to farmers of Barangay Tinogboc and company employees’
To date, Semirara has provided electricity to over 900 households
dependents respectively.
in the three barangays with its 15-MW newly renovated coalfired power plant located in the island. Currently, the power
Education
generation costs P5.00/kwh, in which Semirara subsidies half
Education is an important project that the company wants
of it. Semirara also spent P3.8 million for the electrical posts
to provide to the children of Semirara Island. The company
installed in island. By the end of the year, the community’s
donated, aside from classrooms, tables and chairs to elementary
kilowatt hour consumption reached 724,620 kwh or 31%
and high schools, learning facilities such as library, science
increase from the previous year. This improvement has resulted
laboratory, computers, and air-conditioned audio-visual room.
to establishing of small businesses and additional jobs for the
To date, 371 students are enrolled in Semirara National High
locals of Semirara.
School for school year 2006-2007 and a total of 381 graduates
since 2001.
25
Isidro A. Consunji PRESIDENT
credibleaders
Board of Directors
David M. Consunji CHAIRMAN
Cesar A. Buenaventura VICE CHAIRMAN
Herbert M. Consunji VICE PRESIDENT and
26
CHIEF FINANCE OFFICER
Victor A. Consunji DIRECTOR
Jorge A. Consunji DIRECTOR
Evaristo T. Francisco INDEPENDENT
DIRECTOR
Victor S. Limlingan INDEPENDENT
DIRECTOR
Oscar S. Reyes INDEPENDENT
Atty. Noel A. Laman CORPORATE SECRETARY
DIRECTOR
27
27
subsidiaries’principalofficers
BOARD OF DIRECTORS AND OFFICERS
DAVID M. CONSUNJI
CESAR A. BUENAVENTURA
ISIDRO A. CONSUNJI
HERBERT M. CONSUNJI
VICTOR A. CONSUNJI
JORGE A. CONSUNJI
OSCAR S. REYES
EVARISTO T. FRANCISCO
VICTOR S. LIMLINGAN
ATTY. NOEL A. LAMAN
MA. EDWINA C. LAPERAL
CRISTINA C. GOTIANUN
Chairman
Vice Chairman
Director & President
Director, Vice President & Chief Finance Officer
Director
Director
Independent Director
Independent Director
Independent Director
Corporate Secretary
Treasurer
Asst. Treasurer
D. M. CONSUNJI, INC.
JORGE A. CONSUNJI
EDILBERTO C. PALISOC
MA. EDWINA C.L APERAL
CRISTINA C. GOTIANUN
ELMER G. CIVIL
DOUGLAS R. CUNANAN
LUIS C. PASTOR
REBECCA E. CIVIL
DAVID R. VILLAVIRAY
REYNALDO L. SAN JUAN
CHRISTOPHER R. RODRIGUEZ
JOSE E. MAGAJES
FRANCISCO M. ZALAMEDA, JR.
ATTY. RICARDO P. BALTBAT III
President and COO
Executive Vice President and General Manager for Construction
Treasurer
Vice President and Chief Finance Officer
Vice President and General Manager, Housing Business Unit
Vice President and Business Development Manager
Vice President and Operations Manager
Asst. Vice President for Budget and Contracts
Asst. Vice President for Engineering
Asst. Vice President for Procurement
General Manager, Formworks Business Unit
General Manager, Equipment Management Business Unit
General Manager, Ready Mix Concrete
Corporate Counsel and OIC for Administration
DMCI PROJECT DEVELOPERS, INC.
ISIDRO A. CONSUNJI
ALFREDO R. AUSTRIA
MA. EDWINA C. LAPERAL
HERBERT M. CONSUNJI
CRISTINA C. GOTIANUN
ELMER G. CIVIL
REYNALDO C. SALAZAR
FLORANTE C. OFRECIO
MAY L. PRISCILLA
ALFONSO C. CERVERO
President
Managing Director
Treasurer Director for Administration
Director for Finance
Director for Design & Construction
Director for Business Development
Director for Sales
Director for Marketing
Director for Customer Care
SEMIRARA MINING CORPORATION
ISIDRO A. CONSUNJI
VICTOR A. CONSUNJI
HERBERT M. CONSUNJI
GEORGE SAN PEDRO
GOERGE B. BAQUIRAN
JAIME B. GARCIA
NESTOR D. DADIVAS
ATTY. JOHN R. SADULLO
28
Chief Executive Officer
President and Chief Operating Officer
Treasurer
Vice President for Operation and Resident Manager
Vice President for Special Projects
Vice President, Procurement and Materials Management
Chief Finance Officer
Corporate Secretary and Counsel
DMCI HOLDINGS, INC.
3/F DACON Building
2281 Don Chino Roces Avenue
Makati City, Metro Manila 1231 Philippines
Tel: +63 (2) 888.3000
Fax: +63 (2) 816.7362
LEGAL COUNSEL
Castillo Laman Tan Pantaleon
San Jose Law Offices
4F The Valero Tower
122 Valero Street, Salcedo VIllage
Makati City, Metro Manila, Philippines
Tel: + 63 (2) 810.4371 /817.2724
Fax: + 63 (2) 819.2724 /25 & 817.5938
STOCK TRANSFER AGENT
Securities Transfer Services, Inc.
4F Benpres Building
Meralco Avenue corner Exchange Road
Ortigas Center, Pasig City, Metro Manila, Philippines
Tel: +63 (2) 449.6149 to 58
Fax: +63 (2) 631.7148
Agency: K2 Interactive (Asia) Inc.
Photography: Cesar Caina
MASBATE PSA signing and Maynilad turnover photos courtesy of Malacañang,
29