�

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.

Message to Stockholders 02

Financial Highlights 07

Construction 08

Real Estate �2

Coal Mining �6

Power and Water 20

Corporate Governance 22

Corporate Social Responsibility 24

Board of Directors 26

Subsidiaries’ Principal Officers 28

Financial Statements IBC

contents

businessynergy

DMCI Holdings, Inc. Annual Report 2006

�

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.

�

2

ourfellow

stockholders,2

�

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:

C O R P O R A T I O N

REAL ESTATE CONTRACTOR, DEVELOPER AND PROJECT MANAGER

LARGEST COAL MINE IN THE PHILIPPINES

SMALL POWER UTILITIES GROUP (SPUG)OPERATOR AND LOW-COST POWER PRODUCER USING COAL-FIRED POWER PLANTS

COAL SUPPLY TO POWER PLANTS

LARGEST PRIVATEWATER UTILITY

Materials handling and equipment management

Structural constructionand engineering

Pipe laying and water systems engineering

Power plant construction

synergy inbusiness operations

Strategic acquisitions and investments capitalising on core competencies

“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.”

44

�

With the skills and resources gained in more than �0 years

of doing construction, D.M. Consunji, Inc. (“DMCI”) will be

the focal point upon which the Company will build its new

platform of focused multiple businesses. DMCI will supply its

construction know-how, engineering expertise and technical

capabilities to the other businesses providing a total synergy in

business operations.

In 2006, your company earned a consolidated net income of

P�.�8� billion vis-a-vis P4.�8� billion in 200� and excluding

the one-time gain from the sale of shares in the coal mining

business, the recurring incomes are P�.0�4 billion and P�.8�4

billion, respectively. Our total revenues amounted to P8.702

billion, a decrease of ��% from P�0.029 billion in 200� due to

the low demand for local coal but was compensated by the

improvement in the real estate and construction sectors. The

accompanying graphs are comparative figures for each of the

sectors.

We note that through the years, we have been increasing

and expanding our revenue base and income streams initially

dominated by construction. Our mining and real estate

segments are now delivering revenues and profits exceeding the

construction business. Our new investments in the water and

1,350

1,150

950

750

550

350

150

-50

-250

2002 2003 2004 2005 2006

CONSTRUCTION

REAL ESTATE

COAL MINING

Net Income

6,000

5,000

4,000

3,000

2,000

1,000

0

2002 2003 2004 2005 2006

Revenues

CONSTRUCTION

REAL ESTATE

COAL MINING

6

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

enhance future dividends consistent with the increase in our

year-end stock prices from P�.�� in 200� to P6.�0 in 2006.

On April �, 2007 and June ��, 2006, your Board of Directors

approved and declared cash dividend of P0.�0 per share or

P242.�� in 2007 and P22�.�� 2006. These were paid on May

28, 2007 and July 20, 2006, respectively.

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.

DAVID M. CONSUNJI

Chairman

CESAR A. BUENAVENTURA

Vice Chairman

ISIDRO A. CONSUNJI

President

6.5

6

5.5

5

4.5

4

3.5

3

2.5

2Jan

Stock Price (2005 & 2006)(Php per share)

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5.5

4.1

3.15

3.1

3.45

3.4

4.1

2.6

3.85

2.7

3.75

2.44

4.35

2.75

3.75

3.00

3.75

3.2

4.9

3.05

5.1

3.4

3.1

6.1

7

Parent General CoalMining RealEstate Company Total Construction Development &Others2006Revenue �,747 4,688 �,90� �62 8,702 Net Income before minority interest but after tax ��7 60� 287 ��8 �,�8� Depreciation, Depletion and Amortization 60 �,��6 �2 �� �,4�9 Net Finance income (expense) (6) (��9) ��2 �9 6 Income taxes 86 �09 �9 9 46� Property, plant and equipment additions ��9 �,�04 �� �� �,69� Segment Assets �,40� 6,26� �,�4� �,�6� 20,�72 Segment Liabilities �,092 2,2�4 �,947 �,6�9 8,9�2

2005 Revenue 2,709 �,��� �,�08 �78 �0,029 Net Income before minority interest but after tax 74 �,�92 �40 2,�7� 4,�8� Depreciation, Depletion and Amortization 92 �,2�9 4 � �,��8 Net Finance income (expense) �8 (6�) (�0) 42 (�4)Income taxes �� 42� 8� �2 �67 Property, plant and equipment additions 84 �,798 4 - �,886 Segment Assets �,74� 6,9�� 6,026 �27 �7,0�� Segment Liabilities 92� 2,798 2,68� �48 6,��2

(AmountsinmillionPhp)

financialhighlights

8construction

8

9

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 8�% and gained revenues from exisiting projects

such as the KAMANAVA Area Flood Control & Drainage, Subic-

Tarlac 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 � with contract amount of

P�.2 billion and P26� 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),

the Ready Mix Concrete Business Unit (RMC), and the Formwork

Management Business Unit (FMBU).

DMCI recorded an orderbook P2.�4� billion as of year-end 2006

including six projects awarded during the year amounting to

P�.7�� billion. The Company has also successfully tapped the

foreign market by providing technical and management services

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 8�% and gained revenues from existing projects.”

150

140

130

120

110

100

90

80

70

2003 2004 2005 2006

3,200

2,700

2,200

1,700

127

118

74

137

1,949 1,953

2,790

1,747

�0

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 P2�4 million. It is expected to complete on September 2007.

subic-tarlac express deck fabrication

�0

��

“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.”

paragon corporate center

��

�2estatereal

�2

��

Our mission is to be the leading choice among homebuyers who

want family-oriented developments that offer uncompromised

value, along with real affordable comforts. The company’s

impressive list of projects targets the underserved market of

middle income earners who seek to realize their dream: to own

a home they can truly call their own. It is our desire to create

clients’ satisfaction and lasting value for them, and provide a

rewarding work environment for our employees.

We seek to invest and produce lifestyle-related housing projects

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 customer-

centered 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 estate

970

770

570

370

170

-30

2003 2004 2005 2006

4,900

4,400

3,900

3,400

2,900

2,400

1,900

1,400

900

400-23

36140

287

470

718

1,905

1,508

710

1,240

2,492

4,354

More than �0 years have passed since David M. Consunji first

set forth to establish a company that would gain repute for

excellence in the construction industry. This institution has

paved the way for another company to make its own mark for

the Filipino people, by providing quality and affordable homes

for the young, middle income family: DMCI Homes.

DMCI Homes has gone far with its 2� existing and ongoing

housing development projects strategically located all over

Metro Manila, South Luzon, and Boracay, offering approximately

�2,000 homes to mid-income families.

�4

Alta Vista Boracay (Boracay). DMCI Homes does not only aim to

liquefy its land bank but it has entered into joint ventures with

Crown Equities, Inc. for the development of Cypress Towers,

and with Equitable PCI Bank for the development of Riverfront

Residences located in Pasig.

Being one of our fast growing subsidiaries, DMCI Homes is

targeting to sell �,422 units valued at approximately Php 7.�

billion for 2007. Its exceptional performance during the year

resulted to Php 287 million net income and Php �.90� billion

of revenues.

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.

DMCI Homes is also in the business of understanding our

customers, knowing what exactly they want to know, what

is important to them, and what suits their needs. We are

empowering today’s buyers with the knowledge that there is

a variety of exciting living options from which they can choose

from. Any DMCI Homes purchase refers to the smart choice

made by informed buyers, who are influenced by aspirations to

search for the right home. For these reasons, we are shaping

our company around our employees and their relationships

with our clients. Their personal understanding of our customers’

needs leads to the kind of effective solutions for which our

employees actively deliver consistent service.

��

�6miningcoal

�6

�7

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 ��0 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 �6% to

49 thousand MTs in the current period from �� 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 28,8�� metric

tons. This was followed by the delivery of 22,7�� 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

“Being the prime coal producer in the country today, with an estimated of ��0 million metric tons of coal reserve, Semirara has expanded its market to cement companies and industrial users of coal.”

1,400

1,200

1,000

800

600

400

200

0

2002 2004 2005 2006

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,5004

102

1,246

1,002

1,5172,177

5,066

5,553

2003

353

4,688

*NET OF MINORITY

�8

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 P�.20 per

common share of P���.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 �0, 2007 to stockholders of record as of April �2, 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.� million

metric tons run-on-mine coal per year, and the total waste

stripped up to 4�%. 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

unongmine

panianminesite

�8

�9

successful coal deliveries to emerging markets in Southeast

Asian countries, Semirara has realigned its business strategies

to improve and expand operations to provide competitive

edge in the offshore market. Semirara gives high value to its

relationship with its customers.

Community

Semirara, beyond its mining business, has been dedicated to

serve and protect the community where it operates. Semirara

island has been benefiting from the various corporate social

responsibility (CSR) projects of Semirara. Implementing CSR

projects are not just part of the Corporate Governance policies

of Semirara but as a social obligation and ethical responsibility

which the company provides to one of its important stakeholders

—the people of Semirara Island.

Semirara aims to fulfill the Five Es of its CSR programs—

Education, Employment, Economics, Environment, and

Electrification. Since 2000, Semirara has been actively providing

livelihood projects and free education benefiting more than

�00 families from the three barangays of the island—Semirara,

Alegria, and Tinogboc.

Electrification project has served 946 households as of December

2006 or 69% of the total households in the island.

Semirara has provided employment in which 80% accounts to

mining jobs. Semirara also offers employment opportunities to

the locals of Panay and other regions in the country.

In contribution to the national wealth, Semirara has paid a total

of P884 million to the local and national government for the

period of 22 years since it took over Semirara Coal Corporation

in �988. This includes the �6 years of mining operations in Unong

mine with P286 million contributions, and 6 years operations in

Panian mine with P�98 million.

20 waterpower

&20

2�

Water

Your Company is confident that its acquisition of a water

utility company will pave the way to succeeding growth. We

have established a �0-�0 joint venture with Metro Pacific

Investments Corporation (MPIC) which is the DMCI-MPIC Water

Company (DMCI-MPIC), that won the bid to acquire 84% stake

on Maynilad and last January 24, 2007, a formal turnover was

held in Malacanang Palace.

Maynilad holds a 2�-year exclusive concession, granted by

Metropolitan Water Sewerage System (MWSS) on behalf of

the Philippine Government, to provide water and sewerage

services in the west zone of Metro Manila. Maynilad covers 9

cities and � municipalities in Metro Manila, and one city and

� municipalities in the province of Cavite. Maynilad currently

supplies 2,�00 million liters per day (mld) to about 6 million

people in the west zone area.

We are optimistic that Maynilad will provide us solid returns

given its huge and growing market. Maynilad’s capital

expenditure over the life of the concession is P40 billion and

we estimate construction works to DMCI of roughly 2�% of P�0

billion. In 2006, Maynilad posted a net income of P� billion

and registered revenues of P7.�8� billion. We are confident

that it will be one of the major players in your Company’s

long-term success in the years ahead.

Further, the consortium is planning to improve Maynilad’s non-

revenue water (NRW) performance. Given the current NRW of

68%, we target to bring this down to ��% in 2007.

Power

Recently, we established DMCI Power Corporation to venture

into the power sector, which will provide energy mainly to off-

grids, mining and industrial users. DMCI Power will concentrate

on developing and operating coal fired power plants fuelled by

Semirara coal. During the last quarter of the year, we prepared

for the bid for Masbate Power Generation, one of the National

Power Corporation’s (NPC) off-grid, small power utilities group

(SPUG). We also applied for the Environmental Compliance

Certificate (ECC) for the coal-fired power plant in Concepcion,

Iloilo and we are expecting its release in 2007.

The privatization of Small Power Utilities Group (SPUG) Areas

was mandated by Department of Energy (DOE) Circular No.

2004-0�-00� issued on January 26, 2004. The circular called

for the periodic assessment of the requirements and prospects

of bringing power generation and associated power delivery

systems to commercial viability on an area-by-area basis,

including a program to encourage private sector participation

in the SPUG areas.

waterpower

OURNEWBUSINESSES

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.

22

consider substance over form in the presentation of accounts;

disclose and discuss all material risks; disclose and explain the

rationale for all material estimates; show manner of compliance,

or explain deviations, if any, with applicable corporate governance

codes; discuss goals, plans, and progress; and provide access

to the register of shareholders showing beneficial ownership. In

addition to annual disclosures, the Company shall comply with

all applicable disclosure requirements. Disclosures should be

timely and adequate to enable investors, third party analysts,

or rating agencies to assess the quality of corporate governance

and the true financial condition of the Company.

StandardsofBusinessConduct

Observance of Law – Directors, Executive Officers and

Employees must carry out their duties with professionalism

and in accordance with ethical standards. They must conduct

business in accordance with the law, the charter of the Company,

and a high standard of commercial morality. They shall at all

times act with loyalty to the Company, ensuring that its goals,

strategies, policies and practices are moral, proper, and legal.

They must be prepared to dissociate themselves from the

Company in the event that despite their efforts, ethical and

legal standards are being seriously compromised. They should

refer to the Company’s statements of best practice as part of

their decision-making process.

Conflict of Interest – Directors, Executive Officers and Employees

owe a fiduciary duty to the Company that requires them to

act in the best interest of the Company. Actual and potential

conflicts of interest should be avoided or otherwise identified,

disclosed, and explained in sufficient detail to enable valid

judgments to be made on their adverse impact. The persons

who are conflicted should not participate in the discussion and

decision on the issue in question, nor be entitled to vote on any

resolution where they are conflicted. Related party contracts

should be disclosed in the annual report.

Compliance - All Directors, Executive Officers and Employees

should strive to identify and raise potential issues before they

become problems and should ask about the application of

corporategovernanceDMCI Holdings, Inc. is committed to continue the tradition of

business ethics and integrity. Our management and employees

share that tradition in over �0 years of corporate existence.

Now that our business has expanded, we are extending this

tradition to our subsidiaries and affiliates so we can make a

difference in the lives of the people we work with.

Recently, the Board of Directors has approved your Company’s

Code of Business Conduct and Ethics not only in compliance

with the principles of Corporate Governance, but in respect with

conducting business with honesty, dedication, accountability,

and responsibility.

CODEOFBUSINESSCONDUCTANDETHICS

DMCI Holdings, Inc. (the “Company”) is committed to doing

business in accordance with the highest professional standards,

business conduct and ethics and all applicable laws, rules, and

regulations in the Philippines. The Company, its directors,

officers, and employees are dedicated to promote and adhere

to the principles of good corporate governance by observing

and maintaining its core business principles of accountability,

integrity, fairness, and transparency.

This Code of Business Conduct and Ethics (the “Code”) sets

forth the Company’s business principles and values which shall

guide and govern all business relationships of the Company, its

directors, officers and employees in carrying out their duties

and responsibilities effectively.

PrinciplesandValues

Accountability – The Company shall take full responsibility for

all its business decisions, actions/inactions, and conduct, and

shall perform its duties and functions with utmost responsibility,

integrity, honesty, loyalty and efficiency. The Company’s principal

objective is to enhance economic value to all its stakeholders

– employees, customers, shareholders and business partners

– by making the most efficient use of resources and meeting its

environment, community, and social obligations.

Transparency and Disclosure - To ensure transparency, the

Company’s annual reports should disclose true and fair accounting

information prepared in accordance with applicable standards;

2�

this Code whenever in doubt. Any Director, Executive Officer

or Employee who becomes aware of any existing or potential

violation of this Code shall promptly notify the Company’s

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

Company will not tolerate retaliation for reports of violations of

this Code made in good faith.

Fair Dealings - The Company does not seek competitive

advantages through illegal or unethical business practices.

Each Director, Executive Officer and Employee should

endeavor to deal fairly with the Company’s customers,

service providers, suppliers, and competitors. No Director,

Executive Officer or Employee should take unfair advantage

of anyone through manipulation, concealment, abuse of

privilege information, misrepresentation of material facts, or

any unfair dealing practices.

Confidentiality – Directors, Executive Officers, and Employees

must observe the confidentiality of non-public information and

not disclose it to any other person without the authority of

the Board. A Director, Executive Officer or Employee who has a

special allegiance to a particular shareholder may not disclose

confidential information to that particular shareholder without

the authority of the Board.

Corporate Opportunities - Each Director, Executive Officer and

Employee owes a duty to advance the Company’s legitimate

interests when the opportunity to do so arises. He may not:

(a) receive or seek to receive a benefit from opportunities that

are discovered through his involvement with the Company

(including, without limitation, his use of the Company’s property,

information, or his position); or (b) compete with the Company,

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.

Corporate Governance Board Committees2006-2007

Nomination and Election

OSCAR S. REYES (Independent) Chairman

DAVID M. CONSUNJI Member

ISIDRO A. CONSUNJI Member

Compensation and Remuneration

VICTOR S. LIMLINGAN (Independent) Chairman

JORGE A. CONSUNJI Member

CESAR A. BUENAVENTURA Member

Audit

EVARISTO T. FRANCISCO (Independent) Chairman

OSCAR S. REYES (Independent) Member

ISIDRO A. CONSUNJI Member

HERBERT M. CONSUNJI

Compliance Officer

CRISTINA C. GOTIANUN

Internal Auditor

JORGE A. CONSUNJI

Special Committee on Violation of the Manual

24

corporatesocialresposibility

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.

EnvironmentalProtection

Protecting and conserving the natural resources has been

mandated by the Mines and Geosciences Bureau’s Social

Development Management Program (SDMP) to small and large-

scale 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

P�6 million for environmental programs during the year. The

company envisions to plant one million trees in 20�2 through in-

land reforestation and to date, over �8,000 trees were planted

all over the island. Total reforestation since 2000 is �8�,670

hills that include island-wide and Unong mine with �64,808

hills and 2�6,862 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 2�0 hectares of mangroves in

20�2 for coastal protection. At present, mangrove plantation

has reached �8�.4 hectares and various mangrove nurseries

were created all over the island.

2�

EmploymentandEconomic

Semirara provides livelihood programs that have increased

productivity and created jobs for the locals of the island. These

are deep-sea fishing (Semirara Fishermen Association-SEMFA),

farming (Integrated Pest Management-IPM), seaweed farming

(Lantay Method), and dressmaking.

SEMFA started fishing in 200� with only one boat and 28

members. To date, there are five SEMFA boats acquired which

benefited 200 families, and with total net sales of P2.4 million

for the year. Total available for distribution amounted to

P�.�69 million in which �0% of P784 thousand is the total

crew share.

IPM training aims to increase yield per hectare of rice, vegetables,

and corn which will generate extra income for farmers. It

will also reduce production expenses and maximize available

resources for crop production as well as maintain sustainable

supplies for basic farm commodities of the island. They have

organized a cooperative called Asosasyon ng Mga Magsasaka

at Mangingisda ng Barangay Alegria, Inc. (Association of

Farmers and Fishermen of Barangay Alegria, Inc.).

On the other hand, Semirara has supported the seaweed

farming and dressmaking which provided extra income

to farmers of Barangay Tinogboc and company employees’

dependents respectively.

Education

Education is an important project that the company wants

to provide to the children of Semirara Island. The company

donated, aside from classrooms, tables and chairs to elementary

and high schools, learning facilities such as library, science

laboratory, computers, and air-conditioned audio-visual room.

To date, �7� students are enrolled in Semirara National High

School for school year 2006-2007 and a total of �8� graduates

since 200�.

In Divine Word School of Semirara Island (DWSSI), a total of

��8 pupils are enrolled and ��0 from elementary and high

school graduates since 200�. Semirara has spent a total P2�

million for school facilities and improvements during the year.

The company is also providing enhancement programs for out-

of-school youth that teach technical skills in metal fabrication,

woodworking and oxy-ace, and benchwork welding practices.

On the other hand, Semirara Training Center, Inc. (STCI) is a non-

stock, non-profit corporation that promotes manpower training

and development programs to produce technically equipped

and vocationally skilled workforce, contributing to the economic

and human development of the island of Semirara. STCI

programs include technical (mobile equipment and industrial

machine technology), short-term training program (machine

shop practice, automotive mechanic, refrigeration and air-

conditioning, and industrial electricity), skills upgrading (basic

pneumatics, electro-pneumatics, basic hydraulics, welding, and

motor rewinding), and women’s skills training and livelihood

programs (dressmaking, housekeeping/chambermaid, and food

and beverage serving). During the year, Semirara has invested

a total of P2.7 million for STCI which comprises the operating

expenses, trainee allowances, and training equipment.

Electrification

To date, Semirara has provided electricity to over 900 households

in the three barangays with its ��-MW newly renovated coal-

fired power plant located in the island. Currently, the power

generation costs P�.00/kwh, in which Semirara subsidies half

of it. Semirara also spent P�.8 million for the electrical posts

installed in island. By the end of the year, the community’s

kilowatt hour consumption reached 724,620 kwh or ��%

increase from the previous year. This improvement has resulted

to establishing of small businesses and additional jobs for the

locals of Semirara.

26

credibleaders

David M. Consunji CHAIRMAN Cesar A. Buenaventura VICE CHAIRMAN

Isidro A. Consunji PRESIDENT

Herbert M. Consunji VICE PRESIDENT and CHIEF FINANCE OFFICER

Board of Directors

27

Victor A. Consunji DIRECTOR

Victor S. Limlingan INDEPENDENT DIRECTOR

Evaristo T. Francisco INDEPENDENT DIRECTOR

Oscar S. Reyes INDEPENDENT DIRECTOR

Atty. Noel A. Laman CORPORATE SECRETARY

Jorge A. Consunji DIRECTOR

27

28

BOARDOFDIRECTORSANDOFFICERS

DAVID M. CONSUNJI ChairmanCESAR A. BUENAVENTURA Vice ChairmanISIDRO A. CONSUNJI Director & PresidentHERBERT M. CONSUNJI Director, Vice President & Chief Finance OfficerVICTOR A. CONSUNJI Director JORGE A. CONSUNJI DirectorOSCAR S. REYES Independent DirectorEVARISTO T. FRANCISCO Independent Director VICTOR S. LIMLINGAN Independent DirectorATTY. NOEL A. LAMAN Corporate SecretaryMA. EDWINA C. LAPERAL TreasurerCRISTINA C. GOTIANUN Asst. Treasurer

D.M.CONSUNJI,INC.

JORGE A. CONSUNJI President and COOEDILBERTO C. PALISOC Executive Vice President and General Manager for ConstructionMA. EDWINA C.L APERAL TreasurerCRISTINA C. GOTIANUN Vice President and Chief Finance OfficerELMER G. CIVIL Vice President and General Manager, Housing Business UnitDOUGLAS R. CUNANAN Vice President and Business Development ManagerLUIS C. PASTOR Vice President and Operations ManagerREBECCA E. CIVIL Asst. Vice President for Budget and ContractsDAVID R. VILLAVIRAY Asst. Vice President for EngineeringREYNALDO L. SAN JUAN Asst. Vice President for ProcurementCHRISTOPHER R. RODRIGUEZ General Manager, Formworks Business UnitJOSE E. MAGAJES General Manager, Equipment Management Business UnitFRANCISCO M. ZALAMEDA, JR. General Manager, Ready Mix Concrete ATTY. RICARDO P. BALTBAT III Corporate Counsel and OIC for Administration

DMCIPROJECTDEVELOPERS,INC.

ISIDRO A. CONSUNJI PresidentALFREDO R. AUSTRIA Managing DirectorMA. EDWINA C. LAPERAL Treasurer HERBERT M. CONSUNJI Director for AdministrationCRISTINA C. GOTIANUN Director for FinanceELMER G. CIVIL Director for Design & ConstructionREYNALDO C. SALAZAR Director for Business DevelopmentFLORANTE C. OFRECIO Director for Sales MAY L. PRISCILLA Director for Marketing ALFONSO C. CERVERO Director for Customer Care

SEMIRARAMININGCORPORATION

ISIDRO A. CONSUNJI Chief Executive OfficerVICTOR A. CONSUNJI President and Chief Operating OfficerHERBERT M. CONSUNJI TreasurerGEORGE SAN PEDRO Vice President for Operation and Resident ManagerGOERGE B. BAQUIRAN Vice President for Special ProjectsJAIME B. GARCIA Vice President, Procurement and Materials ManagementNESTOR D. DADIVAS Chief Finance OfficerATTY. JOHN R. SADULLO Corporate Secretary and Counsel

subsidiaries’principalofficers

29

DMCI HOLDINGS, INC.

�/F DACON Building

228� Don Chino Roces Avenue

Makati City, Metro Manila �2�� Philippines

Tel: +6� (2) 888.�000

Fax: +6� (2) 8�6.7�62

LEGAL COUNSEL

Castillo Laman Tan Pantaleon

San Jose Law Offices

4F The Valero Tower

�22 Valero Street, Salcedo VIllage

Makati City, Metro Manila, Philippines

Tel: + 6� (2) 8�0.4�7� /8�7.2724

Fax: + 6� (2) 8�9.2724 /2� & 8�7.�9�8

STOCK TRANSFER AGENT

Securities Transfer Services, Inc.

4F Benpres Building

Meralco Avenue corner Exchange Road

Ortigas Center, Pasig City, Metro Manila, Philippines

Tel: +6� (2) 449.6�49 to �8

Fax: +6� (2) 6��.7�48

Agency: K2 Interactive (Asia) Inc. Photography: Cesar Caina

MASBATE PSA signing and Maynilad turnover photos courtesy of Malacañang,