Strictly Private & Confidential

D&L Industries

Filipino Manufacturing Customized Specialty Indirect consumer play

Products
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 Strictly Private & Confidential

                                 
                                   makes    
CUSTOMIZED  SPECIALTY  
INGREDIENTS    for    
     food  and  plas:cs  
 
 
 
 
 
 
 

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Indirect consumer play

30

76% of sales are to Food &

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Beverage companies
Length of Relationship in Years

20

15

10
Longstanding Customer
Relationships
5

0
>10 years 10-20 years 21- 30 years
Customers

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 Strictly Private & Confidential
D&L’s 50+ years history of innovation

Colorants, Corro-Coat, Inc.

chemicals and becomes
additives for Corro-
Powder
Colorants plastics and Aerosol specialty engineered Coat, Inc.
Coating
inks fats polymers IPO
IPO
Biodiesel
1963 1971 1976 1980 1987 1988 2000 2006 2012

Pioneer Pioneer Pioneer

The D&L portfolio today

Food ingredients Specialty Plastics Aerosols Oleochemicals & Other
Specialty Chemicals
% of FY2013
equity investment /
Revenue /
Net Income(1)
72% / 41% 23% / 38% 4% / 6% 8%

Fats, oils and other specialty Pigment blends, color and Aerosol & non-aerosol products Coco-biodiesel, oleo-
food ingredients additive masterbatches and for homecare, personal care and chemicals, resins and
engineered polymers maintenance chemicals powder coatings

(1) The remaining 1% and 7% of revenues and net income, respectively, are D&L’s standalone, which are management fees from its related parties

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 Strictly Private & Confidential

Vision & Mission

OUR MISSION
Dedication to Growth
Not complacent with status quo
Research orientation
Finger on the pulse of the market
Our vision is to Productivity & Profitability
excel and be the But not at the expense of ethics

leader in the Quality & Value

Good value for money and competitiveness in the marketplace
industries we serve
Market leadership
Through creativity, innovation, and excellence
Pride in our employees
They are our most valuable asset
Well-being of our communities
As responsible citizens of the Philippines

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Established and Fully-Integrated Supply Chain

Fleet of barges Storage capability Interconnected ground transport system

6 barges with aggregate 33,000 MT of oil storage 42 road tankers with total capacity of
capacity of 10,000 MT for capacity; 300,000 MT per over 1,064 MT ensuring just-in-time
raw material transportation annum refining capacity customer delivery

Key Benefits of Supply Chain Process

§  Know-how of entire supply chain process ensures that the company can anticipate and allocate the optimal
resources for transportation of its products
§  Not dependent upon third-parties to provide logistics
D&L’s integrated supply chain maximizes efficiency of working capital management

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 Strictly Private & Confidential

Organizational Structure

Jadel Holdings Co., Inc. Lao Family

(Lao family holding company)
Public
(Individual Family Members)
57.4% 31.5% 11.1%

100% 100% 44.5% 99. 7%

100%

55.5%

Aerosol and non- Listed  in  2000  as  Corro  Coat;  

Philippine Economic Zone aerosol products for
refined vegetable oils, Authority (PEZA) registered
Secondary  Offering  in  2006    
homecare, personal
specialty fats and oils,
care & maintenance
specialty ingredients
Colorants, Additives, and Engineered Polymers chemicals
OLEOCHEMICALS,  
RESINS,  &  SPECIALTY  
FOOD  INGREDIENTS   SPECIALTY  PLASTICS   AEROSOLS   CHEMICALS  

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Seasoned and Experienced Management

Dean L. Lao, 75 years old Leon L. Lao, 71 years old

Chairman Emeritus
§  President of Oleo-Fats, Inc.
§  Founder of the Lao group of companies
§  Years of experience in D&L: 50 years
Chairman & Director
§  President and CEO of Chemrez
§  Co-founder of D&L Industries, Inc. where he
currently serves as Director, President of First
in Colours, Inc. and D&L Polymer Colours,
Inc.
§  Years of experience in D&L: 50 years

Yin Yong L. Lao , 61 years old Alex L. Lao, 68 years old John L. Lao, 59 years old
Vice Chairman Director President & Director
§  T r u s t e e - A s s o c i a t i o n o f §  Alternate Director of Axis REIT § EVP/Director – Chemrez; Director –DLPC, D&L
Petrochemical Manufacturers of the §  B.S. in Chemical Engineering from Powder Coating, FIC Marketing Co, FIC, OFI;
Philippines Polytechnic Colleges of the Philippines Chairman/President – Aero-pack
§  B.A. in General Studies from the in 1969 § B.S. in Business Administration from the University
Ateneo de Manila University §  Years of experience in D&L: 42 years of the East in 1974
§  Years of experience in D&L: 39 years § Years of experience in D&L: 39 years

Cesar Bautista, Independent Director Filemon Berba Independent Director

- member of Institute of Corporate Directors - member of Institute of Corporate Directors
-  Director of Pilipinas Shell; Former UK - Former President of Globe and Manila
Ambassador; Former Chair and President Water
Unilever Phils. -  University of the Philippines Diliman &
-  Univ of Philippines Diliman & MS in Wharton MBA
Chemical Engineering from Ohio State

Dean A. Lao, Jr., 46 years old - Managing Director of Chemrez
§  Chairman - United Coconut Association of the Phils, Director - ASEAN
Oleochemical Manufacturing Group, President - Philippine Oleochemical
Manufacturers Association & Philippine Biodiesel Association
§  Advanced Management Program of Harvard Business School
§  Years of experience in D&L: 18 years
Alvin D. Lao, 42 years old – EVP & CFO of D&L
§  CFO and Treasurer of Chemrez Technologies Inc.; Director of Axis
REIT; VP of the Technology Club of the Philippines
§ B.S. in IT (Honours) and Statistics from the University of Western
Australia, MBA from the MIT Sloan School of Management.
§ Years of experience in D&L: 16 years

Vincent D. Lao, 40 years old - Managing Director of Oleo-Fats Lester A. Lao, 44 years old
§  Previously Assistant Trader at Shuwa Co. Ltd. In Japan ,1994-1995 Managing Director of First in Colours, Incorporated.
§  B.A. in Economics and Japanese Studies from the University of Western §  B. A. S. in Information Business from Edith Cowan University
Australia §  Years of experience in D&L: 23 years
§  Years of experience in D&L: 18 years

Senior management members have an average of 40 years of industry experience 8

News and Developments Strictly Private & Confidential

New Business Partnerships

•  One  of  the  world’s  leading  chemical  engineering   •  first  to  offer  commercially  available  biopolymers  derived  
companies   from  100%  annually  renewable  resources  
•  Petrochemical,  chemicals,  aluminum,  electronics,  
inorganic  materials    

DLPC Bionolle BIOPOLYMERS DLPC Ingeo

Compounding Starcla Market potential in DLPC to do - Plant-based
manufacturing Starch-based Europe and compounding and replacement for
and distribution eco-friendly Japan; modification petrochem-based
for local sales compound that plastics & fibers
is completely alternative to non-
and exports biodegradable FIC to handle - results in 75% less
biodegradable greenhouse gases
plastic bags marketing and
distribution than the oil-based PET
plastic

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News and Developments Strictly Private & Confidential

New Business Partnerships

a  JV  between  the  MacSmith  

Privately-­‐owned  Australian   brothers  and  the  Manildra  Group;   largest  maker  of  vegetable  oil-­‐based  
company  principally  engaged  in   into  oilseed  processing  and  
wheat  processing   packaging    
products  in  the  U.S    

Oleo-Fats, Canola Wheat Oleo-Fats, Inc. Specialty Oils &

Inc. Leading soft oil development & production Specialty Food
sales, in the Philippine of specialty oils & specialty Ingredients
marketing & market ingredients for the
distribution of Consumption to Noodles, Bakery, foodservice, retail and mayo, sauces,
canola and increase as biscuits, snacks ingredient manufacturing dressings, popcorn
wheat disposable industries in the Asia- oil, etc.
products in income Pacific region
the Philippines increases

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 Strictly Private & Confidential

News and Developments

2014  
voted  3rd  Best  Mid-­‐Cap  Company  in  the  Philippines  

one  of  the  Top  50  Best  Performing  Philippine-­‐listed  

Companies  –  ASEAN  Corporate  Governance  Scorecard    

2013   added  to  the  Global  Small  Cap  Index  

added  to  the  Islamic  Market  ASEAN  Index  

candidate  for  Best  Managed  Company–  Small  Cap  

Category  (Philippines)  
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Corporate Social Responsibility

CSR initiatives are

carried out through the
Lao Foundation
1,143 student and 28 teacher beneficiaries

AREAS  OF  FOCUS  

P16.9
million
Amount spent on CSR
Education Value Leadership Livelihood initiatives in 2013
Formation

D&L  Industries  is  commiDed  to  dona:ng  1%  of  its  annual  net  income  to  corporate  social  responsibility  
programs  through  the  Lao  Founda:on    

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Corporate Social Responsibility
PROGRAM
Adopt-A-School
Teachers Salary Sponsorship
College Sponsorship
LBL Educational Excellence Award
ELL Teachers Welfare Program
English Literacy Project
Community Outreach
Strictly Private & Confidential
BENEFICIARIES
Bagumbayan Elementary School
Philippine Christian Foundation, Inc.
Charity First Foundation, Inc.
Children of D&L Employees
Retired teachers of Grace Christian College
Various elementary schools in partnership with
Binhi English Literacy Foundation
Communities where D&L plants are located
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9M2014 Financials - Summary

In line with strategic priorities

Shifting sales mix: 66% High-Margin Specialties, 34% Low Margin Commodities

Gross Profit 1H2013 Y-o-Y

Margin change

High Margin 25.1% +4.0 ppts

Specialty Products
Low Margin 5.2% +1.1 ppts
*Refined Vegetable Oils & Low Margin Specialty Fats Commodity Products

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9M2014 Financials - Summary

PROGRESS ON OUR STRATEGIC PRIORITIES

HMSP still key revenue driver

Gross Profit 9M2014 Y-o-Y

Margin Change

High Margin 23.6% -0.8 ppt

Specialty Products
Low Margin 4.1% flat
*Refined Vegetable Oils Commodity Products

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9M2014 Financials – Quarterly Net Income Perfomance

In Pmn

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9M2014 Financials

In Pmn 9M14 9M13 Y-o-Y

Sales 10,624 7,685 +38%
COGS & Cost of Services 8,859 6,254 +42%
Gross Profit 1,765 1,430 +23%
OPEX 322 241 +34%
Operating Profit 1,444 1,190 +21%
Equitized Earnings from Chemrez 131 79 +65%
EBITDA 1,749 1,421 +23%
Taxes 260 194 +34%

Net Income 1,293 1,043 +24%

EPS* (in cents) 36.2 29.2 +24%
GPM 16.6% 18.6% -2.0ppts
EBITDAM 16.5% 18.5% -2.0ppts
NIM 12.2% 13.6% -1.4ppts

*average number of outstanding shares: 3,571,428,995

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3Q2014 Financials

In Pmn 3Q14 vs 3Q13 vs 2Q14

Sales 4,399 +60% +41%
COGS & Cost of Services 3,724 +66% +43%
Gross Profit 675 +33% +30%
OPEX 133 +71% +138%
Operating Profit 541 +26% +17%
Equitized Earnings from Chemrez 60 +102% +59%
EBITDA 663 +31% +19%
Taxes 102 +55% +45%

Net Income 494 +28% +17%

EPS* (in cents) 13.8 +28% +17%
GPM 15.3% -3.1ppts -1.3ppts
EBITDAM 15.1% -3.4ppts -2.8ppt
NIM 11.2% -2.9ppts -2.3ppts

*average  number  of  outstanding  shares:  3,571,428,995  

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9M2014 Group Results at a Glance

Revenue Breakdown
Net Income Breakdown
Management Oleochemicals
Service Fees and Other
Management
Aerosols 1% Service Fees Specialty
3% 7% Chemicals
10%
Specialty
Plastics
20% Aerosols Food
5% Ingredients
43%
Specialty
Food
Plastics
Ingredients
76% 35%

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Exports

Export/ 17% 12% 13% 12% 17% 16%

Sales
(Pmn)  
+28%  y-­‐o-­‐y  

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Group Balance Sheet and Cash Flow

In Pmn   As of end As of end In Pmn   As of end As of end

Sep 2014   Dec 2013   Sep 2014   Dec 2013  
Cash   2,260   3,438   Book Value   9,447   8,860  
Current Assets   7,860   8,016   BVPS (in P)   2.65   2.48  
Total Assets   11,279   11,403   Debt-to-equity 0.12x   0.19x  
(Borrowings/Equity)  

Borrowings   1,143   1,662   Return on Equity   18.3%   15.9%  

Total Liabilities   1,832   2,543   Return on Invested 25.3%   24.7%  
Capital1  

1  Return  on  Invested  Capital  =  (Recurring  Opera>ng  Profit  +  Equity  earnings  from  Chemrez)  /  Invested  Capital  

         Invested  Capital  =  Total  Assets  –  Cash  –  Non-­‐interest  bearing  liabili>es        

*Free  Cash  =  Net  Opera>ng  Cash  Flow  –  Capex  
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Group Capital Structure

In Pmn

P1.12  billion  NET  CASH  

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Dividends
Strictly Private & Confidential

Dividend Policy* of 25% Payout Ratio

D&L INDUSTRIES*
2.0% yield based
Dividend 2013 2014 on 24 June 2014
price of P9.82
per Share

Total P0.15 P0.20

Ex-Date 13 June 2014
Regular P0.10 P0.10
Record Date 18 June 2014
Special P0.05 P0.10
Payment Date 30 June 2014

CHEMREZ TECHNOLOGIES
2.7% yield based
on 24 June 2014
Dividend per 2013 2014 price of P4.40
Share
Total P0.09 P0.12 Ex-Date 13 June 2014
Regular P0.06 P0.06 Record Date 18 June 2014
Special P0.03 P0.06 Payment Date 30 June 2014

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Investor Relations

Price as of 12/16 : P16.12

(+275% since listing, +167% y-o-y)
Market Cap as of 12/16: P57.6bn ; USD 1.29bn (USD1:P44.71)
All time high : P17.14 All time low: P4.32

Last 3-month average daily volume: 5.0 mn shares

Last 3-month average daily turnover: P71.6 mn (USD 1.6mn)

Date Event Venue

November 25-29 2014 JP Morgan Asia Rising Dragons Kuala Lumpur, Singapore, Hong Kong

February 2-3 2015 JP Morgan Philippines 1x1 Conference Manila

February 5 2015 Maybank Kim Eng Philippine Corporate Day Kuala Lumpur

March 4-6 2015 UBS Philippines CEO Forum Manila

March 11-13 2015 CLSA Asean Access Day Bangkok

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