D&l Industries, Inc. · PSE:DNL
D&l Industries — Q3 2023 Earnings Presentation
27 slides from D&l Industries's earnings presentation, Nov 8, 2023
Slide 1: D&L's new plant in Batangas, Philippines
D&L’s new plant in Batangas, Philippines
Slide 2: 9M25 Highlights
9M25 Highlights 1 9M25 net income +8% YoY; 3Q25 +12% YoY 2 Volume growth remains resilient, up 11% YoY, despite unprecedented surge in coconut oil prices 3 Exports continue to drive growth with GP +22% YoY in 9M25 4 Capex continues to trend lower, providing room for deleveraging once commodity price
Slide 3: 9M25 earnings +8% YoY
9H25 earnings +8% YoY Net Income (Php mn) Net income breakdown Consumer Products ODM, 7% 3,318 Food Ingredients, 11% 2,643 2,295 2,342 +8% Specialty 1,950 Plastics, 1,810 33% Chemrez Group, 49% FY21 FY22 FY23 FY24 9M24 9M25 Start of commercial operations of Batangas plant. Incremental expenses weigh
Slide 4: Batangas plant consistently books profits
Batangas plant consistently books profits Quarterly income of Batangas plant 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 400 333 300 264 246 200 149 97 100 - -16 -100 -101 -111 -132 -132 -137 -200 -300 Pre-operating rental expenses -315 -400 -390 -500 Start of commercial operati
Slide 5: Condensed Income Statement
Condensed Income Statement *number of outstanding shares: 7,142,857,990 5
Slide 6: Exports sales
Exports sales FY19 FY20 FY21 FY22 FY23 FY24 9M24 9M25 EXPORT/ SALES 21% 29% 33% 31% 27% 30% 31% 27% Breakdown of exports Oleochemicals 13.6 22% 12.4 +20% 11.0 10.2 Food 9.1 9.2 Specialty Plastics 64% 13% 6.3 Consumer Products 4.7 ODM 1% In P bn FY19 FY20 FY21 FY22 FY23 FY24 9M24 9M25 6
Slide 7: Export vs Domestic Market
Export vs Domestic Market Sales (P bn) Gross Profits (P bn) +49% 30.3 20.3 +8% +20% 3.4 +22% 3.2 11.0 1.9 9.2 1.5 9M24 9M25 9M24 9M25 9M24 9M25 9M24 9M25 Exports Domestic Exports Domestic Blended Gross Profit Margins 17.2% 11.4% +24% Exports Domestic 7
Slide 8: HMSP Quarterly Volume Growth (YoY)
HMSP Quarterly Volume Growth (YoY) HMSP volume growth (YoY) 40% Confluence of events such as the late 36% 36% passage of the budget, US- China 33% trade war, and spillover of negative consumer sentiment dampened overall volume in 2019 13%14% 13% 13% 12% 11% 10% Average quarterly YoY 7% 8% 7% 6% grow
Slide 9: Robust biodiesel sales shifted the sales mix towards commodities
Robust biodiesel sales shifted the sales mix towards commodities REVENUES % share to total group revenues 33% 34% 33% 31% 41% 40% 39% 37% 37% 38% 42% 42% 43% 49% 47% 54% 67% 66% 67% 69% 59% 60% 61% 63% 63% 62% 58% 58% 57% 51% 53% 46% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 10: Condensed Statement of Cash Flows
Condensed Statement of Cash Flows In P mn 9M25 FY24 EBITDA 4,237 5,012 Interest Received 4 10 Paid taxes (231) (595) Non cash items 58 82 Change in working (4,607) (4,462) Largely due to unprecedented capital increase in coconut oil prices Net Operating Cash (539) 48 Flow Capex (431) (1,090) Free Ca
Slide 11: Capex normalizing after the completion of Batangas plant
Capex normalizing after the completion of Batangas plant Capex (P mn)* • Capex peaked in 2022 and started to normalize in 2023 after the completion of the plant 3,497 • No other major capex 3,179 requirement in the near-term 2,114 1,552 1,441 1,160 443 456 568 2017 2018 2019 2020 2021 2022 2023 2024
Slide 12: Pass-through pricing mechanism as natural hedge against volatility
Pass-through pricing mechanism as natural hedge against volatility in forex and commodity prices 20.9% 19.1% 16.8% 18.3% 17.3% GP Margin 15.1% 15.7% 14.8% 15.3% 13.4% 13.9% 12.9% We expect margins to improve over 12.6% 12.4% 12.0% 10.5% 11.7% 10.8% 9.9% 10.9% time as we further invest in R&D 8.9% 9.
Slide 13: 9M25 Group Results
9M25 Group Results Food Ingredients Oleochemicals & Specialty Consumer D&L Industries - Other Specialty Plastics Products ODM Consolidated Chemicals % change in +40% +90% +3% +32% +40% Revenues % change in Net (66%) +88% +2% +50% +8% Income* 13
Slide 14: Biodiesel blend to remain at 3% (B3); B4 and B5 postponed
Biodiesel blend to remain at 3% (B3); B4 and B5 implementation postponed Biofuels industry short overview Impact of a higher biodiesel blend 2006 – Biofuels law was passed with the to the industry intention of a 5% biodiesel blend (B5) 2007 – implementation of 1% blend (B1) Volume Overall industry 2
Slide 15: Asset-Light Model
ASSET-LIGHT MODEL Rental expenses Management and Shared Service Fees (paid to affiliates) (MSSF) D&L provides management and shared services to its subsidiaries and affiliates, including executive management and admin support such as legal, MIS, accounting, human resource, and finance land, faciliti
Slide 16: Balance Sheet remains robust
Balance Sheet remains robust As of end As of end As of end As of end In Pmn In P mn Sept-25 Dec-24 Sept-25 Dec-24 Cash 3,013 2,838 Book Value 22,218 21,790 Current Assets 33,147 28,396 BVPS1 (in P) 3.11 3.05 Return Ratios starting to improve Debt-to- equity 11.7% Total Assets 52,339 48,369 1.13x 0.9
Slide 17: Capital Structure
Capital Structure Borrowings (Pmn) Equity (Pmn) Net Gearing 22,218 99% interest 3x 21,790 20,651 20,868 84% cover 19,105 P22 net 65% 63% 57% 25,010 17,764 16,565 17,112 21,090 Billion debt 17,135 15,487 13,790 10% 17% ~6.15% average 3,400 8% 3,400 5,150 p.a. cost of debt* 2018 2019 2020 2021 2022 20
Slide 18: Net debt, effective interest rate, and interest cover
Net debt, effective interest rate, and interest cover 35 7.0% 21.9 22.0 20.7 30 6.0% 18.2 Interest Cover (LHS) 25 5.0% 14.3 14.5 20 12.5 4.0% 12.0 12.0 11.9 11.9 11.2 10.0 15 9.5 3.0% 9.0 8.6 Effective Interest Rate (RHS) 6.6 10 2.0% 4.4 Net Debt (P bn) 3.7 4.0 2.9 2.8 3.0 5 1.0% 2.1 2.2 2.0 1.9 2.1
Slide 19: Working Capital Cycle
Working Capital Cycle 25,000 CASH CONVERSION 190 16,000 140 INVENTORY 139 170 14,000 120 143 20,000 150 111 107 127 120 117 12,000 130 100 101 20,914 10,000 15,000 110 90 91 80 8,000 82 90 74 16,300 14,066 60 10,000 70 6,000 11,823 13,142 50 11,767 40 4,000 7,705 5,000 9,284 30 2,000 8,150 9,531 20
Slide 20: Investor Relation
INVESTOR RELATION Ownership as of September 2025 #64 Shares bought back by the Lao Family Public, 26% Lao % of Family, # of Shares Year outstanding 74% (in mn) P32 bn* shares Since IPO 593 8.3% Foreign Ownership as % Ranked 64th of Outstanding Shares among 2024 20 0.3% Philippines’ largest companies
Slide 21: Investor Relations
INVESTOR RELATIONS Return since IPO Price Change Total Return DNL PM +112% +236% PCOMP Index +2% +18% Price as of 11/03: P4.49 Market Cap as of 11/03: P32bn USD 546 mn (USD1:P58.74) Outstanding Shares: 7,142,857,990 DNL +112% Dividend yield at 4.7% at current levels PCOMP +2% 12/12 06/13 12/13 06/14
Slide 22: Q&A
Q&A 22
Slide 23: Foundation of future growth
Foundation of future growth High value, high margin products: Expansion in export zones & “Pack at source” initiative 23
Slide 24: FIT Expansion
FIT Expansion Natura Aeropack D&L Premium Foods Natura Aeropack 24
Slide 25: CNO & CPO 5-yr Price Chart
CNO & CPO 5-yr Price Chart 25
Slide 26: Maiden Bond Offering
MAIDEN BOND OFFERING *Awarded Best New Bond (Philippines) by the Asset Magazine Offer Size Interest Rate Tenor Spread over BVAL Base offer: P3bn (Series A) 2.7885% p.a. 3 years +50 bps Oversubscription option: P2bn (Series B) 3.5962% p.a. 5 years +60 bps Bond Rating PRS Aaa with Stable Outlook Use o
Slide 27: 3yr and 5yr BVAL rates
3yr and 5yr BVAL rates D&L Bond Listing September 2021 27