D&l Industries, Inc. · PSE:DNL
D&l Industries — Q1 2025 Earnings Presentation
28 slides from D&l Industries's earnings presentation, May 7, 2025
Slide 1: D&L Industries Media Presentation for 1Q25
D&L’s expansion site in Batangas, Philippines FILIPINO MANUFACTURING CUSTOMIZED B2B2C SPECIALTY PRODUCTS D&L INDUSTRIES Media Presentation for 1Q25 May 07, 2025
Slide 2: 1Q25 Highlights
1Q25 Highlights 1 1Q25 earnings up 10% YoY to P681 mn as Batangas plant continues to ramp up operations 2 Total volume for the quarter was up 33% YoY although rapid increase in commodity prices tempered potential boost to earnings 3 Export sales up 69% YoY; contribution to total sales at record leve
Slide 3: 1Q25 earnings +10% YoY, +28% QoQ
1Q25 earnings +10% YoY, +28% QoQ Net Income (Php mn) Net income breakdown Consumer 3,318 Products Specialty ODM, 3% Plastics, 2,643 30% 2,295 2,342 Food Ingredients, 38% +10% 618 681 Chemrez Group, 28% FY21 FY22 FY23 FY24 1Q24 1Q25 Start of commercial operations of Batangas plant. Incremental expens
Slide 4: Batangas plant continues to ramp up operations
Batangas plant continues to ramp up operations Quarterly income of Batangas plant 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 400 333 300 246 200 149 100 - -16 -100 -101 -111 -132 -132 -137 -200 -300 Pre-operating rental expenses -315 -400 -390 -500 Start of commercial operations, depreci
Slide 5: Batangas Plant – D&L's next leg of growth
Batangas Plant – D&L’s next leg of growth 5
Slide 6: Condensed Income Statement
Condensed Income Statement *number of outstanding shares: 7,142,857,990 6
Slide 7: Exports sales
Exports sales FY19 FY20 FY21 FY22 FY23 FY24 1Q24 1Q25 EXPORT/ SALES 21% 29% 33% 31% 27% 30% 32% 34% Breakdown of exports Oleochemicals 13.6 16% 12.4 Specialty Plastics 10% 10.2 Consumer 9.1 Products Food ODM 73% 1% 6.3 +69% 4.7 4.8 2.9 In P bn FY19 FY20 FY21 FY22 FY23 FY24 1Q24 1Q25 7
Slide 8: Export vs Domestic Market
Export vs Domestic Market Sales (P bn) Gross Profits (P bn) +58% 9.4 +69% +90% -11% 6.0 4.8 1.0 0.9 0.88 2.9 0.47 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 Exports Domestic Exports Domestic Blended Gross Profit Margins 18.3% 9.8% +24% Exports Domestic 8
Slide 9: HMSP Volume Growth (YoY)
HMSP 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% 11% 10% Average quarterly YoY 7% 8% 7% 6% growth = 5% 3% 6%
Slide 10: Sales mix
Sales mix REVENUES % share to total group revenues 33% 34% 33% 31% 41% 40% 39% 37% 37% 38% 42% 42% 43% 49% 47% 52% 67% 66% 67% 69% 59% 60% 61% 63% 63% 62% 58% 58% 57% 51% 53% 48% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 High Margin Specialty Products (HMSP) Com
Slide 11: Condensed Statement of Cash Flows
Condensed Statement of Cash Flows In P mn 1Q25 FY24 EBITDA 1,411 5,012 Interest Received 6 10 Paid taxes 1 (595) Non cash items 14 82 Change in working (4,723) (4,462) Largely due to unprecedented capital increase in coconut oil prices Net Operating Cash (3,291) 48 Flow Capex (66) (1,090) Free Cash
Slide 12: 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 1,160 443 456 196 2017 2018 2019 2020 2021 2022 2023 2024
Slide 13: 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% 13% 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% 9.0%
Slide 14: 1Q25 Group Results
1Q25 Group Results Food Ingredients Oleochemicals & Specialty Consumer D&L Industries - Other Specialty Plastics Products ODM Consolidated Chemicals % change in +65% +82% +6% +49% +62% Revenues % change in Net +18% +27% (5%) (30%) +10% Income 14
Slide 15: DOE finally increased Biodiesel blend to 3% (B3)
DOE finally increased Biodiesel blend to 3% (B3) from 2% (B2) last October 1, 2024; targets B4 by October 2025 and B5 by October 2026 Impact of a higher biodiesel blend Biofuels industry short overview to the industry 2006 – Biofuels law was passed with the intention of a 5% biodiesel blend (B5) Vol
Slide 16: 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 17: 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 Mar-25 Dec-24 Mar-25 Dec-24 Cash 2,358 2,838 Book Value 22,471 21,790 Current Assets 31,777 28,396 BVPS1 (in P) 3.15 3.05 Debt-to-equity Total Assets 50,996 48,369 1.03x 0.97x (Borrowings/E quity) Return on Borrowing
Slide 18: Capital Structure
Capital Structure Borrowings (Pmn) Equity (Pmn) Net Gearing 92% 84% 22,471 interest 4x 21,790 20,651 20,868 cover 19,105 65% 63% 57% 17,764 23,107 P20.7 net 16,565 17,112 21,090 Billion debt 17,135 15,487 13,790 10% 17% ~6.2% average p.a. cost of debt* 8% 5,150 3,400 3,400 2018 2019 2020 2021 2022 2
Slide 19: Net debt, effective interest rate, and interest cover
Net debt, effective interest rate, and interest cover 35 7.0% 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 2.2 1.0% 2.1 2.0 1.9 1.9 2.1 1.6 1
Slide 20: Working Capital Cycle
Working Capital Cycle 25,000 CASH CONVERSION 190 16,000 140 INVENTORY 139 170 14,000 120 143 131 20,000 150 111 107 127 120 12,000 130 100 101 21,125 10,000 15,000 110 90 91 91 80 8,000 90 74 16,300 13,900 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 21: Investor Relation
INVESTOR RELATION Ownership as of 12-Month Daily Trading Average* March 2025 #56 Public, 27% Lao Family, 73% P41 bn* w US$176k Foreign Ownership as % Ranked 56th of Outstanding Shares among Philippines’ 14 largest companies 14 14 14 14 14 14 12 % 13 % % % % 12 % 12 13 11 % % by market cap % % % % %
Slide 22: Investor Relations
INVESTOR RELATIONS Return since IPO Price Change Total Return DNL PM +165% +279% PCOMP Index +10% +25% Price as of 05/02: P5.70 Market Cap as of 05/02: P41bn USD 732 mn (USD1:P55.59) Outstanding Shares: 7,142,857,990 DNL +165% DLNDY:US Unsponsored ADR (BNY Mellon & Citi) PCOMP 1ADR = 25 Ordinary +10
Slide 23: Q&A
Q&A 23
Slide 24: Foundation of future growth
Foundation of future growth High value, high margin products: Expansion in export zones & “Pack at source” initiative 24
Slide 25: FIT Expansion
FIT Expansion Natura Aeropack D&L Premium Foods Natura Aeropack 25
Slide 26: CNO & CPO 5-yr Price Chart
CNO & CPO 5-yr Price Chart 26
Slide 27: 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 28: 3yr and 5yr BVAL rates
3yr and 5yr BVAL rates D&L Bond Listing September 2021 28