FILIPINO MANUFACTURING CUSTOMIZED B2B2C

SPECIALTY
PRODUCTS

D&L INDUSTRIES
Investor Presentation

May 2020

A-
 D&L INDUSTRIES is a Filipino company that makes customized, specialty
ingredients for food and chemicals

% FOOD INGREDIENTS
60%
Revenue OLEOCHEMICALS & OTHER
23%
Revenue

31% 34%
SPECIALTY CHEMICALS
Of Proforma 1Q20 Fats, oils and other specialty
Coco-biodiesel, oleochemicals,
food ingredients
Revenue Net Income resins and powder coatings Net Income

%
Of Proforma 1Q20 Net
Income

13% 4%
Revenue Revenue
SPECIALTY PLASTICS AEROSOLS
Pigment blends, color and
additive masterbatches and 28% Aerosol & non-aerosol products
for homecare, personal care 11%
engineered polymers Net Income and maintenance chemicals Net Income

Due to rounding, numbers may not add up precisely

D&L parent is 0.3% of revenues through Management Service Fees / -1% of Net Income A- 2
Except for the D&L Industries consolidated balances, which are already net of eliminations, the rest are presented gross of intercompany sales and other elimination
 KEY BUSINESS STRATEGIES

Maintain Market Innovate

Leadership Continuously

Capitalize on Growing Enhance Production and Expand

Domestic Consumer Market Business Processes Globally

A- 3
Our history of serving customers spans across 50+ years

POLYMER & COLOURS, INC.

Colorants Specialty Engineered Polymers

Aerosols Oleochemicals Fats IPO
For Plastics
1963 1976 1984 1987 2000 2006 2012

Corro-coat, Corro-Coat Inc.

1971 early 1985 1988 becomes 2014
Inc. IPO
Colorants, 1980s
Polystyrene Color
Chemicals and Powder
Resins Masterbatches Biodiesel
Additives For Coating
& Additives Acquisition
Plastics, Paints Emulsion
and Inks Dispersion

A- 4
 As the leading B2B2C company in the Philippines, we have longstanding customer
relationships with mostly consumer companies
Shortening
Flavored Toppings
Length of Customer Relationships Flavored Glazes
Icings
(in Years)
34 Frying Oils
Gravy Mixes
27
>70%
Breading
Dipping Sauces
of sales are to
consumer companies
23 Body Fragrance
Sprays
19 Insect Control Sprays
Spray Paints

15
Brake Cleaners
Flavored Coatings

11
Syrups & Fudges
Whipped Cream
Soft Ice Cream
9 Mix
Pancake Mix
6 Butter Compounds
Margarines
Maple Flavored
Syrups

A- 5
Majority of the Board are independent directors while 3 out of 7 board
members are female – highlights the importance we place on good
corporate governance and gender diversity.
BOARD OF DIRECTORS*
Alvin D. Lao,
Yin Yong L. Lao, John L. Lao, 48 years old
67 years old 64 years old CEO & President
Chairman & Director Vice Chairman Director of Axis REIT; Former
Trustee - Association of Chairman/President – President of EO Philippine
Petrochemical Manufacturers Aero-Pack Chapter, member since 2000
of the Philippines B.S. in IT (Honours) and
B.S. in Business Statistics from the University of
B.A. in General Studies Administration Western Australia
Ateneo de Manila University University of the East MBA from the MIT Sloan School
Years of D&L experience : 43 Years of D&L experience: 42 of Management.
Years of D&L experience: 19

INDEPENDENT DIRECTORS
Mercedita Nolledo, 78 years old
Filemon Berba, 81 years old
Lawyer and CPA
Member of Institute of Corporate Directors
Former Senior Managing Director & Corporate
Former President of Globe and Manila Water
Secretary of Ayala Corp.
B.S. Electrical Engineering from the University
Chairman, BPI Investment Management;
of the Philippines
Director of Xurpas, Inc. ; Trustee, - Ayala
MBA from the Wharton School of the University
Foundation and BPI Foundation
of Pennsylvania
B.S. Business Administration & Bachelor of
Laws from the University of the Philippines

Corazon S. Dela Paz-Bernardo, 78 years old Lydia Balatbat-Echauz, 71 years old

CPA Former President of Far Eastern University
Former President & CEO of Social Security Director of Metro Pacific Investments
System A.B. in Economics and Mathematics from
Former Senior Partner and Chair at Joaquin St. Theresa’s College
Cunanan & Co (PricewaterhouseCoopers MBA from Ateneo de Manila University
Philippines) DBA from De La Salle University
First non-European President of the
International Social Security Association
B.S. Accountancy from University of the East
MBA from Cornell University

*Mr. Dean L. Lao and Mr. Leon L. Lao, D&L’s founders, together with Mr. Alex L. Lao stepped down as directors of
D&L. Nonetheless, all three continue to attend Board meetings as part of the newly created Advisory Board. Mr. Dean A- 6
L. Lao remains as Chairman Emeritus.
Professional managers and second generation family members with
more than 20 years of experience in sales, marketing & business
development compose our Senior Management team.

SENIOR MANAGEMENT

Amorsolo M. Rosario, 58 years old Joselito P. Rivera, 56 years old

Chief Financial Officer, Treasurer, & Chief Chief Operating Officer
Compliance Officer Former Global Head for Leadership at Ericsson
Former SVP of Finance of Nestle Phils. Corporate HQ in Sweden
27 years in Nestle (PHL, AUS, UK, & SWI) Lead Adviser for Marikina Local Government
B.S. Bus Admin & Accountancy from the Chairperson, Board of Trustees, and OIC
University of the Philippines President of Pamantasan Lungsod ng Marikina
Executive Development Program of Switzerland A.B. Psychology from Ateneo de Manila
International Institute for Management University
Development
Years of D&L experience: 7

Dean A. Lao, Jr.

52 years old Vincent D. Lao,
Managing Director of Chemrez Lester A. Lao, 45 years old
Chairman - United Coconut Association of the 50 years old Managing Director of Oleo-Fats
Phils; Director - ASEAN Oleochemical Managing Director of FIC & DLPC Previously Assistant Trader at Shuwa Co.
Manufacturing Group, President - Philippine B. A. S. in Information Business from Ltd. In Japan ,1994-1995
Oleochemical Manufacturers Association & Edith Cowan University B.A. in Economics and Japanese Studies
Philippine Biodiesel Association, Advanced Years of D&L experience: 28 from the University of Western Australia
Management Program of Harvard Business Years of D&L experience: 23
School
Years of D&L experience: 22

A- 7
 Our wholly owned subsidiaries are focused on core activities such as R&D,
sales, supply chain, and manufacturing, with shared services* handled by the
D&L group
Lao Family
59.8% Jadel Holdings Co., Inc.
(Lao Family holding company)
100%

11.2% Individual Family Members FOOD INGREDIENTS

Foreign Ownership as % 71%

of Outstanding Shares
100%
OLEOCHEMICALS, RESINS,
& SPECIALTY CHEMICALS

Public

29% 100% 55.5% POLYMER & COLOURS, INC.

SPECIALTY PLASTICS

Source: Stock Transfer Service Inc.

100%
AEROSOLS
*(legal, MIS, accounting and finance, HR)

A- 8
We are shaped and driven by R&D and disciplined innovation

OUR MISSION
• We are dedicated to growth. We are not complacent, timid, or
satisfied with status quo
• We are committed to increase productivity and profitability, but

•
not at the expense of ethics
We will continuously enhance our reputation for quality and
14% 1.3%
value. Our products and services must always represent good Tech staff
value for money and be competitive in the market place as % of Tech spend as
• We will maintain our market leadership through creativity, total
manpower
% of revenues
innovation and excellence in performance tempered with
experience
• We are proud of our employees. We consider them as our most
valuable asset. We will maintain an atmosphere where our
people can develop their abilities and potential while working
11% 69%
Tech spend as of revenues is
together enthusiastically to achieve our goal
% of non-raw driven by R&D
• We will contribute to the well-being of the communities in which material cost
we operate, and accept our responsibilities as citizens of the
Philippines

We are research-oriented. We will keep abreast of

Allows us Greatest
Biggest to have barrier
the latest technology and have our fingers on the source of
margin and
pass
through
to new
entrants/
pulse of the market to identify the market needs income pricing competition
mechanism
that must be met

A- 9
We have an integrated supply chain that maximizes efficiency of working capital
management

> >
FLEET OF BARGES
Direct access to fleet of 6
barges with an aggregate
capacity of 10,000 metric
tons to transport crude oils
and raw materials to its
refineries and storage tanks
near the port
STORAGE CAPABILITY
Ability to store 33,000 metric
tons of oil; refining facility of
300,000 metric tons per
annum is strategically
located near port, optimizing
transportation efficiency
INTERCONNECTED
GROUND TRANSPORT
SYSTEM
Superior ground logistics of 42
road tankers with total
capacity of over 1,064 metric
tons; ensures just-in-time
delivery to customer, thereby
increasing supply chain
efficiency

Key Benefits • Know-how of entire supply chain process ensures that the company can
anticipate and allocate the optimal resources for transportation of its
of Supply products
Chain
Process • Not dependent upon third-parties to provide logistics

A- 10
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, facilities, warehouses, and barges

MSSF from subsidiaries

are eliminated in consolidation

1Q20: P63 mn 1Q20: 15 mn

1% of total costs and expenses 0.3% of total revenues

A- 11
 Our dividend policy increased from a 25% to 50% payout ratio* (effective 2016)

Dividen 64%
d Per 2014 2015 2016 2017 2018 2019 Cash Dividends (Pmn)
Share Payout Ratio* 64% 2,044

64%
Total P0.20 P0.15 P0.20 P0.235 P0.26 P0.286 1,857
63% 1,679
Regular P0.10 P0.15 P0.16 P0.185 P0.205 P0.223 1,429
51%
Special P0.10
100%
P0.04 P0.05 P0.055 P0.063 714
stock 26%
536 536
Dividends Cash
Ex-Date June 21, 2019

Record Date June 26, 2019

Payment Date July 22, 2019

2014 2015 2016 2017 2018 2019
Dividend yield of 4.5% based on March 6, 2020
closing price of Php6.41/sh.

*based on previous year’s recurring net income A- 12

 We consistently achieve earnings growth and continue to
improve on returns

Food Ingredients Oleochemicals & Specialty Aerosols D&L Industries –

Other Specialty Plastics Consolidated
Chemicals

FY2018
Net P1.01 P1.22 P762 P194 P3.19
Income billion billion million million billion
3Y CAGR +7% +14% +13% +25% +12%
28%
25%
22%
19% 20% 19% 20% 19% 19% 19%
17% 17% 18%
16%
Return on Equity
Return on Invested Capital

2012 2013 2014 2015 2016 2017 2018

D&L parent is 0.2% of revenues through Management Service Fees / 0.2% of Consolidated Net Income
A-13
Assumes 100% ownership of all subsidiaries
 We have been awarded and recognized both locally and internationally

Finance Asia
2019 – Best Mid-Cap Company, 7th 2017 – Top 50 Global
2015 – Alvin D. Lao, CFO
Best Investor Relations Challengers (2nd place)
Best IR by a senior 2016 & 2015 - Asia’s
2018 – 2nd Best Mid-Cap Company
management team 200 Best Under a
2015 & 2016 – Best Mid-Cap
Small & mid-cap – South Billion
Company
East Asia
2015 –Alvin D. Lao as Best CFO –
2nd Place; Best Investor Relations –
9th place
2014 – 3rd Best Mid-Cap

2014 - Top 10 2013- Islamic Market

Corporate Governance ASEAN Index
and Sustainability 2014 & 2015 - Top 50
Report Best Performing
2014- Best Managed
Philippine-listed
Company– Small Cap
Companies - ASEAN
Category (Philippines)
Corporate Governance
candidate
Scorecard

2015 - Global Equity Index 2013 - Global

Asia Pacific ex Japan All Small Cap
Cap & Small Cap Index

A- 14
INVESTOR RELATIONS
Ownership as of
12-Month Daily Trading Average* March 2020

#48 Public,
29.1%

Lao
Family,
70.9%

P38 bn* w US$525k Foreign Ownership as %

Rank 48 among of Outstanding Shares
Philippines’
largest companies
by market cap

*as of April 30, 2020 A- 15

Net Foreign Buying (Selling)
In P mn DNL Market

YTD (215) (49,408)

YTD until ECQ

20 (22,108)
announcement
Post ECQ
(235) (27,300)
announcement

DNL net foreign buying (selling) during Market net foreign buying (selling)
ECQ during ECQ
5 0
0 3/16 3/23 3/30 4/6 4/13 4/20 4/27
-500
-5 3/16 3/23 3/30 4/6 4/13 4/20 4/27
-10 -1000
-15
-1500
-20
-25 -2000
-30
-2500
-35
-40 -3000

Numbers are as of April 30, 2020 A- 16

INVESTOR RELATIONS
Return since IPO as of 04/30/2020
Price Change Total Return
DNL PM +146% +208%

PCOMP Index -2% +13% Price as of 04/30: P5.29

Market Cap as of 04/30: P38bn
DNL USD 749mn (USD1:P50.42)
+146% Outstanding Shares: 7,142,857,990

DLNDY:US
PCOMP Unsponsored ADR
(BNY Mellon & Citi)
-2% 1ADR = 25 Ordinary

DATE EVENT VENUE

June 2, 2020 Nomura Investment Forum Asia Virtual Conference

A- 17
CORPORATE SOCIAL RESPONSIBILITY
of D&L’s annual net

1% income is commited to
corporate social
responsibility programs
through the foundation

AREAS OF FOCUS
P40mn 114
donation to the Full scholarships given
foundation in 2019 between 3 communities
Education

317 670
Educational Assistance Indigent students
scholars with partner sponsored for
organizations Christmas gift-giving
Values formation

A- 18
Our CSR projects focus on education and values formation

PROGRAM BENEFICIARIES
Partner Based Educational Program College, TechVoc, High School, Elementary
and Hearing Impaired students nationwide

Community Based Educational Program Various communities and elementary schools

where D&L plants are located

ELL Teachers Welfare Program Retired teachers of Grace Christian High

School and teachers of Purple Centers
Foundation

Scholarships for the Most In-Need Children &

LBL Educational Program Dependents of D&L Employees
Educational Excellence Grants for Children of
D&L employees

A- 19
1Q20 Results

A- 20
1Q20 Highlights

1 1Q20 Net Income at P515 mn

2 Revenues down by 3% YoY

Sales mix tilted towards commodities as demand for the

3 period focused on very basic raw materials

Export sales +12% YoY; Export contribution to total sales

4 at 22%

Net gearing at 12%; Cash conversion cycle lower with

5 notable improvement in AR days

A- 21
1 1Q20 Net Income at Php 515 mn

Net Income (Php mn) Net income breakdown

D&L parent,
-5%

Aerosols,
11% Food
3,187 Ingredients,
2,905 31%
2,630 2,620
2,287
2,033
Specialty
-13% -31% Plastics,
q-o-q y-o-y 28%
748
590 515
Chemrez
Group, 34%

FY14 FY15 FY16 FY17 FY18 FY19 4Q19 1Q20 1Q19

A- 22
 1Q20 Condensed Income Statement
2 Revenues down 3% YoY

*number of outstanding shares: 7,142,857,990 A- 23

 Sales mix tilted towards commodities as demand for the period focused
3 on very basic raw materials
REVENUES
% share to total group revenues

33% 34% 33% 31%

40% 39% 37% 36%
42% 41% 42%

67% 66% 67% 69%

60% 61% 63% 64%
58% 59% 58%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20
High Margin Specialty Products (HMSP) Commodities*

*Commodities = Refined Vegetable Oils & Biodiesel A- 24

 Segment volume growth and GP Margin
1Q20 Y-o-Y Volume Growth
High Margin Commodities Total Overall Gross Profit Margin
Specialties
18%
15% 15% 14% 13% 15%
12% 12% 12%
-6% +53% +22%
Food Ingredients
FY12FY13FY14FY15FY16FY17FY18FY191Q20

23% 25%
15% 18% 19% 17% 22%
-16% -35% -26% 12% 13%

Oleochemicals & Other

Specialty Chemicals FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY191Q20

27% 25% 25% 27% 28% 27% 27% 25%

22%

-8% -
-8%
Specialty Plastics
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1Q20
35% 31% 33% 33%
31% 29% 33%
25% 29%
+12% - +12%
Aerosols FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1Q20

Total Volume
Tonnage*
-9% +21% +5%

*excludes Aerosols, which are measured in unit pieces A- 25

 Quarterly HMSP volume growth
Demand for HMSP weighed down by the enhanced community quarantine

HMSP volume growth (YoY)

Confluence of events such as the

late passage of the budget, US-
14% China trade war, and spillover of
13%
negative consumer sentiment
Average quarterly YoY 10.5%
dampened overall volume in 2019
growth = 5% 7.2% 8%

3.4%
2%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Jan-Feb Mar '20 1Q20
'20

-4.6% -0.5% -1.4% -1.0%

-6%
Peak of inflation -8.9%
-10.7%
sentiment acceleration
High base effect from election-related spending
in 1H16

-22%

Significant decline in HMSP

volume following the
implementation of Enhanced
Community Quarantine

HMSP = High Margin Specialty Products A- 26

 Historical Commodity Margins
Quarterly Margins
15.2%

12.7%
11.8%

10.1% 10.4%

9.0%
7.4%
6.5% 6.6%

Blended
Commodity 4.4%
Margin

A- 27
 4 Exports revenue contribution stood at 22%

EXPORT/
18% 18% 25% 24% 21% 19% 22% Breakdown of exports
SALES

6.8
6.3
Oleochemicals
27%
4.7
4.1
3.5 Food
+12% 42%
y-o-y
Specialty Plastics
1.1 1.3 31%

Aerosols
0%

In P bn FY15 FY16 FY17 FY18 FY19 1Q19 1Q20

A- 28
 Financial & Operating Highlight

1Q20 y-o-y FY19 y-o-y

Historical ROE & ROIC
Revenue growth -3% -16%
ROIC 22.1%
Recurring income growth -31% -18% 19.6%
19.9% 19.2% 18.8%

18.9% 19.1% 19.2% 14.3%

Blended GPM 17.5% 20.9% 14.6% 15.3%
11.7%
ROE

64% HMSP 69% HMSP

Sales Mix 36% CMTDY 31% CMTDY 2014 2015 2016 2017 2018 2019 1Q20

Free Cash Flows -93mn +3.2bn

Net Gearing +12% 8%

ROE 11.7% 15.3%

ROIC 14.3% 18.8%

A- 29
Financial & Operating Highlight

Condensed Statement of Cash Flows

In PMN 1Q20 FY19

EBITDA 889 4,099

Interest Received 8 5

Paid taxes 91 (714)

Non cash items (26) (41)

Higher average
Change in working
commodity prices (649) 1,377
capital
for the period
Net Operating Cash
314 4,726
Flow
Capex (407) (1,534)

Free Cash Flow (93) 3,193

A- 30
 Pass-through pricing mechanism as natural hedge against
volatility in forex and commodity prices

20.9% GP Margin
19.1%
16.8% 17.5% We’ve seen margins improve since
15.7% EBIT Margin
13.4% 15.1% 2010 due to our investment in R&D.
12.6% 12.6%
12.0% 11.7% NI Margin
10.5%
8.9% High Margin Specialty Products drive
6.3%
9.1%
margin expansion

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20
2,500

2,000

Coconut Oil ($/mt)

1,500 Average 1Q20 Prices
Coconut Oil +23% y-o-y
1,000
Palm Oil +23% y-o-y
Palm Oil ($/mt)
500

-
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
56
USDPHP exchange rate
54
52 Average PhP:US$
50
1Q20: P50.8
48
46
1Q19: P52.1
44
42
40
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Source: D&L data, Bloomberg A- 31

1Q20 Group Results

Food Ingredients Oleochemicals & Specialty Aerosols D&L Industries -

Other Specialty Plastics Consolidated
Chemicals

% change
in +10% -26% -13% +48% -3%
Revenues
% change
in Net -34% -36% -28% +44% -31%
Income*

Due to rounding, numbers may not add up precisely

*D&L parent is 0.3% of revenues through Management and Shared Service Fees / -5% of Net Income A- 32
Except for the D&L Industries consolidated balances, which are already net of eliminations, the rest are presented gross of intercompany sales and other elimination
Balance Sheet remains robust
As of end As of end As of end As of end
In Pmn In Pmn
March-20 Dec-19 March-20 Dec-19
Cash 1,648 1,990 Book Value 17,627 17,112

Current Assets 14,277 13,413 BVPS1 (in P) 2.47 2.40

Debt-to-
equity
Total Assets 24,172 22,301 0.21x 0.20x
(Borrowings/
Equity)
Return on
Borrowings 3,700 3,400 11.7% 15.3%
Equity
Return on
Total Liabilities 6,546 5,188 Invested 14.3% 18.8%
Capital2
48
In Pmn 1,552
28 31
24 25
590 18 18
453
182 170
28
FY19 1Q20 FY14 FY15 FY16 FY17 FY18 FY19 1Q20

CapEx Depreciation & Amortization Repair & Maintenance Interest Cover (x)

1number of outstanding shares: 7,142,857,990

2Return on Invested Capital = Pre tax income / Invested Capital A- 33
Invested Capital = Total Assets – Cash – Non-interest bearing liabilities
 Capital Structure
5 Balance sheet in a solid position to withstand external pressure

Borrowings (Pmn) Equity (Pmn) Net Gearing

38%

17,627 interest
13,970
15,217
16,565 17,112 18x cover
10,962
25%
12,750
P2.1 net
Billion debt
15%
12%
6,600 10%
6,021 8%
4,179
4,850
3,400
8%
3,400 3,700
~4.69% average
p.a. cost of debt*
2014 2015 2016 2017 2018 2019 1Q20

Numbers are as of March 31, 2020 A- 34

*inclusive of DST
Working Capital Cycle
Notable improvement in AR days for the period
5,000 ACCOUNTS RECEIVABLE 80
12,000 CASH CONVERSION 190
4,500 70
161 170 60 60
10,000 147 4,000 58 55
150 53 60
122 120 141 3,500 50 4,046
8,000 130 4,338 50
9,621 3,000
101 110
2,500 2,868 3,281 40
6,000 8,614 90 3,467
6,680 7,879 2,000 3,704
30
5,320 70
4,000 6,024 1,500
50 20
1,000
2,000 30 10
500
10
- 0
- -10 2014 2015 2017 2018 2019 1Q20
2014 2015 2017 2018 2019 1Q20
7,000 140 1,200 30
INVENTORY ACCOUNTS PAYABLE
6,000 120 1,000
117 25
101
5,000 104 100
800
4,000 89 80 22 21 20
82 6,170 5,210 600
3,000 72 5,301 5,713
60 16 16 15 15
400 1,053 15
2,000 40 959
3,504 3,702 819 10
1,000 20 200 803 799
887
- - - 5
2014 2015 2017 2018 2019 1Q20 2014 2015 2017 2018 2019 1Q20
Account balance (P mn) Cycle (in days)

Working Capital Cycle in prior periods were recalculated to exclude impact of VAT A- 35
Due to rounding, numbers may not add up precisely
 Foundation of future growth
High value, high margin products:
Expansion in export zones & “Pack at source” initiative

A- 36
FIT expansion progress
Photo taken last February 13, 2020

A- 37
FIT expansion perspective; to rise in 2021

A- 38
APPENDIX

A- 39
NEWS AND DEVELOPMENTS
2017
APPOINTMENT OF NEW INDEPENDENT DIRECTORS

Corazon S. Dela Paz-Bernardo, 76 years old

CPA
Former President & CEO of Social Security System
Former Senior Partner and Chair at Joaquin Cunanan & Co (PricewaterhouseCoopers Philippines)
First non-European President of the International Social Security Association
B.S. Accountancy from University of the East
MBA from Cornell University

Lydia Balatbat-Echauz, 69 years old

Former President of Far Eastern University
Director of Metro Pacific Investments
A.B. in Economics and Mathematics from St. Theresa’s College
MBA from Ateneo de Manila University
DBA from De La Salle University

A- 40
NEWS AND DEVELOPMENTS
2016
OLEO-FATS premium soft oils,
Distribution agreement with
including coconut • Exports within Asia Pacific
(FOOD Bunge Limited
oil (under Bunge’s • Food service and retail
INGREDIENTS) (NYSE:BG)
Farm Origin brand)

• Dean L. Lao, one of D&L’s founders, stepped down as Director. He remains as

Chairman Emeritus.
• John L. Lao stepped down as President and Chief Executive Officer. He remains
Effective
as Director.
August 1
• Alvin D. Lao is the new President and CEO and joins the board as Director.
• Amorsolo M. Rosario is the new CFO.
Management
Changes
Effective • Mercedita S. Nolledo joins the Board of Directors as Independent Director
April 4

A- 41
BUNGE SOFT OIL PRODUCTS

Source: Bunge Commercial Brochures A- 42

NEWS AND DEVELOPMENTS

2015
INCREASE IN CAPITAL STOCK
Dividends taken
from retained
earnings as of
March 31, 2015
No changes in
equity
Capital Stock Pre - Inc in ACS Post - Inc in ACS

Authorized ₱4,000,000,000 ₱18,000,000,000 Issued and

Outstanding
Subscribed ₱3,571,428,995 ₱7,142,857,990 shares doubled
effective
Paid-up ₱6,826,595,440 ₱10,398,024,435 September 17,
2015
Issued & Outstanding Shares 3,571,428,995 7,142,857,990

Non-recurring
gain of P83
SALE OF CHEMREZ PROPERTY million from sale
of land booked in
66 INDUSTRIA – 6,000 sqm
4Q2015

A- 43
NEWS AND DEVELOPMENTS
2014
• buying 65.3% of Chemrez for • Taking Chemrez private for
P6/share competitive reasons
Strategic
Transaction • Chemrez now wholly-owned • New product innovations
subsidiary Rationale with large potential for
Details
• funded with 2/3s short-term margin improvement
debt, 1/3 cash
ACQUISITION
OF CHEMREZ • Transaction completed on
• Valued Chemrez at 13x 2015
October 10
PER
• D&L now owns 99.7% of
Financial • Offer price at 24% premium
Status Chemrez Technologies
Rationale over Chemrez’s 60-day moving
• Full consolidation started
average before the
October 7
announcement (Aug 29)

OLEO-FATS Supply contract

• Exports within Asia Pacific
with specialty fats and oils & specialty
(FOOD • Food service
Ventura Foods ingredients
INGREDIENTS) (US)

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