Business Profile

Semirara Mining and Power Corporation (SMPC) is an emerging key player in the Philippine
power industry, with its significant coal reserves and increasing power generation capacity.
Early Years
Incorporated in the Philippines on 26 February 1980, SMPC has exclusive rights to explore,
extract and develop the largest coal mine in the country. The mine site is located in Semirara
Island in Antique province.
After commencing commercial operations in 1983, the Company struggled through operational
inefficiencies, debt restructuring, loan foreclosures, falling coal prices and the devaluation of the
Philippine Peso.
In April 1997, Philippine Stock Exchange-listed DMCI Holdings, Inc. (DMC) acquired a 40%
interest in SMPCs Common Shares, including PHP2.5 billion of its outstanding loans.
Following SMPCs sustained financial difficulties, DMC agreed to a debt-to-equity conversion in
1998, raising its total interest in SMPC to 74%.
After gaining a controlling interest in SMPC, DMC appointed a new management team in
August 1999. The team was composed of local and expatriate staff.
Since then, SMPC has adopted flexible, cost-efficient and more advanced mining techniques to
increase the quantity and improve the quality of its coal production. From an initial annual
product coal production of 806,451 tons run-of-mine (ROM) coal in 1997, the Company was
able to produce 7.12 million MT ROM coal in 2013.
DMC currently holds 56% ownership of SMPC.

Integrating Forward
In 2009, the Company acquired two 300-megawatt (MW) coal-fired power plants from the
National Power Corporation.

Located in Calaca, Batangas, both units were primarily designed to run as base-load plants using
coal from Semirara Island. However, due to low budget allocations from the Philippine
government, the plants rapidly deteriorated, reducing their dependable capacity to around 350
MW.
To address the problem, the Calaca plants underwent rehabilitation and retrofitting in 2011. This
enabled the Company to deliver additional power to the Luzon grid.
From a rated capacity of 50%, Unit 1 now operates at around 75%. Unit 2 currently operates at
around 90%, compared to approximately 66% prior to the rehabilitation.
SMPC plans to increase its total generation capacity by another 600MW, to meet the growing
power demand in Luzon and Visayas. The Calaca complex has an environmental compliance
certificate for up to 1,800 MW.
Vision, Mission and Values

VISION:
Coal Towards an Energy-Sufficient Philippines
MISSION:
To fulfil its commitment to provide affordable power to the Filipino people through the
responsible use of coal as an energy source, Semirara Mining and Power Corporation will
continue to:

Remain as the undisputed leader in the coal mining industry and verticallyintegrated coal-based power producer in the Philippines

Play a vital role in the energy sector and work in harmony with the
government to promote the use of coal as a reliable and economical power
source

Supply its customers with quality coal that meets their stringent
specifications

Provide reasonable economic returns to its investors and business partners

Empower its employees to prosper in a climate of integrity and excellence

Work in partnership with its host communities to improve their sustainability,

while engaging in the judicious use and rational conservation of the country's
natural resources

VALUES:

We conduct ourselves and manage our business according to the following:

Teamwork that enables us to work towards common goals;

Excellence that drives us to deliver outstanding results;

Loyalty that keeps us steadfast over challenges and time;

Integrity that upholds the cornerstone of our business ethics;

Commitment that fuels realization of our mission; and

Professionalism that embodies our work quality.

Organizational Chart

Corporate Objectives

Our Companys strategies are focused towards optimizing shareholder value and
ensuring inclusive sustainable growth of its business. Our corporate objectives are:

Continuing Growth
Supported by establishing a quality management system in core production and sub-processes to
achieve operational excellence and by increasing domestic and export shipments to strengthen
market presence.

Value Creation
Supported by expansion activities in the Companys forward integration of its coal to power
generation operations and business development of allied products.
Value Protection and Sustainability
Supported by capital and asset management through cost optimization, talent development and
an environment, health and safety management system, among others.
How We Measure Value Against Short-Medium-Long-Term Targets
Actual operating performance is reported and measured against Return on Capital employed,
based on the following:

Board-approved Budget

Key financial indicators such as profitability, earnings growth, liquidity, return on equity,
dividend yield

Social and sustainability indicators involving governance, environmental, health, safety,

and community engagement

Expansion activities and business development programs are regularly reported during
Management, Audit Committee and Board meetings.