D&L Industries, Inc. · PSE:DNL
D&L Industries — Investor Presentation (January 2026)
45 slides from D&L Industries's investor presentation, Jan 8, 2026
Slide 1: D&L's new plant in Batangas, Philippines
D&L’s new plant in Batangas, Philippines
Slide 2: D&L Industries makes customized specialty ingredients for food and chemicals
D&L INDUSTRIES is a Filipino company that makes customized, specialty ingredients for food and chemicals 61% 30% 9M25 FOOD INGREDIENTS Revenue OLEOCHEMICALS & OTHER Revenue 11% 49% Fats, oils and other specialty SPECIALTY CHEMICALS food ingredients Coco-biodiesel, oleochemicals, resins and powder co
Slide 3: Key Business Strategies
KEY BUSINESS STRATEGIES Maintain Market Innovate Leadership Continuously Capitalize on Growing Enhance Production and Expand Domestic Consumer Market Business Processes Globally 3
Slide 4: Our history of serving customers spans across 60 years
Our history of serving customers spans across 60 years POLYMER & COLOURS, INC. Colorants Specialty Engineered Polymers Commercial operations of For Plastics Aerosols Oleochemicals Fats IPO D&L’s FIT Batangas plant 1963 1976 1984 1987 2000 2006 2012 2023 Corro-coat, Corro-Coat Inc. 1971 early 1985 19
Slide 5: Leading B2B2C company with longstanding customer relationships
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) 38 Frying Oils Gravy Mixes 31 >70% Breading Dipping Sauces of sales are to consu
Slide 6: Majority of the Board are independent directors
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, 54 years old 72 years old 70 years old CEO & President Cha
Slide 7: Second generation family members in Senior Management
Second generation family members with more than 20 years of experience in sales, marketing & business development compose our Senior Management team. SENIOR MANAGEMENT Dean A. Lao, Jr. Franco Diego Lao, 46 years old 57 years old Chief Financial Officer, Treasurer, & Chief President & CEO of Chemrez
Slide 8: D&L Ownership Structure
D&L Ownership Structure FOOD INGREDIENTS Lao Family 63.3% Jadel Holdings Co., Inc. (Lao Family holding company) 100% 10.5% Individual Family Members Foreign Ownership as % 73.8% OLEOCHEMICALS, RESINS, of Outstanding Shares & SPECIALTY CHEMICALS 100% 14 14 14 14 14 13 % % % % % 13 12 11 % 12 12 11 %
Slide 9: We are shaped and driven by R&D and disciplined innovation
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 reputatio
Slide 10: Integrated supply chain that maximizes efficiency of working capital management
We have an integrated supply chain that maximizes efficiency of working capital management > > INTERCONNECTED FLEET OF BARGES STORAGE CAPABILITY GROUND TRANSPORT Direct access to fleet of 6 Ability to store 33,000 metric SYSTEM barges with an aggregate tons of oil; refining facility of Superior grou
Slide 11: 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 12: Dividend policy increased from 25% to 50% payout ratio
Our dividend policy increased from a 25% to 50% payout ratio* (effective 2016) Cash Dividends (Pmn) Payout Ratio* Dividend Per 2020 2021 2022 2023 2024 2025 65% Share 2,143 Dividend yield at Total P0.183 P0.191 P0.24 P0.30 P0.209 P0.213 4.7% at current 65% levels 65% 1,714 65% Regular P0.183 P0.141
Slide 13: 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 14: 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 15: Awarded and recognized locally and internationally
We have been awarded and recognized both locally and internationally Finance Asia 2019 – Best Mid-Cap Company, 7th Best Investor Relations 2024 – ASEAN Honored Company; Crissa Bondad as 3rd Best Investor 2018 – 2nd Best Mid-Cap Company 2017 – Top 50 Global Relations Professional in Asia ex- 2015 & 2
Slide 16: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 1% of D&L’s annual net income is committed to corporate social responsibility programs through the foundation 2024 AREAS OF FOCUS P31.2M 103 Committed amount Direct scholars in from D&L 5 communities Education 388 16,872 Educational Assistance Total beneficiaries scho
Slide 17: CSR projects focus on education and values formation
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 loca
Slide 18: 9M25 Results
9M25 Results 18
Slide 19: 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 20: 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 21: 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 22: Condensed Income Statement
Condensed Income Statement *number of outstanding shares: 7,142,857,990 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: 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% 12% 11% 10% Average quarterly YoY 7% 8% 7% 6% growth = 5% 3%
Slide 26: 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 27: 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 28: Capex normalizing after 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 29: Pass-through pricing mechanism as natural hedge
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 30: 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* 30
Slide 31: Biodiesel blend to remain at 3% (B3)
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 32: 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 33: 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 34: 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 35: 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 36: Q&A
Q&A DésiL
Slide 37: FIT Expansion
FIT Expansion Natura Aeropack D&L Premium Foods Natura Aeropack 37
Slide 38: CNO & CPO 5-yr Price Chart
CNO & CPO 5-yr Price Chart 38
Slide 39: 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 40: 3yr and 5yr BVAL rates
3yr and 5yr BVAL rates D&L Bond Listing September 2021 40
Slide 41: News and Developments 2017
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 Interna
Slide 42: News and Developments 2016
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 Directo
Slide 43: Bunge Soft Oil Products
BUNGE SOFT OIL PRODUCTS PROFESSIONA ————Eyy 43
Slide 44: News and Developments 2015
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 doub
Slide 45: News and Developments 2014
NEWS AND DEVELOPMENTS 2014 • buying 65.3% of Chemrez for • Taking Chemrez private for P6/share competitive reasons Transaction • Chemrez now wholly-owned Strategic • New product innovations Details subsidiary Rationale with large potential for • funded with 2/3s short-term margin improvement debt, 1
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