D&l Industries, Inc. · PSE:DNL
D&l Industries — 1H26 Earnings Presentation
27 slides from D&l Industries's earnings presentation, August 2026
Slide 1: D&L's new plant in Batangas, Philippines
D&L’s new plant in Batangas, Philippines
Slide 2: 1H26 Highlights
1H26 Highlights 1 1H26 net income reached P1.5 bn, up 8% YoY; 2Q26 net income reached P786 mn, up 10% YoY 2 HMSP margins improved by 2.1 ppts for the period; Sales mix shifted toward HMSP (51% of sales) FCF turned positive on lower capex and easing commodity prices; 3 Net gearing down to 91% (from 9
Slide 3: 1H26 Net income reached ₱1.5 bn, up 8% YoY
1H26 Net income reached ₱1.5 bn, up 8% YoY *nu mbe r o f out sta nd ing sha res: 7, 14 2, 85 7,9 90 3
Slide 4: 1H26 Net Income up 8% YoY
1H26 Net Income up 8% YoY Net Income (Php mn) Net income breakdown Consumer Products ODM, 7% 3,318 Food Ingredients, 16% 2,643 2,590 2,295 2,342 +8% Specialty 1,396 1,502 Plastics, Chemrez 38% Group, 39% FY21 FY22 FY23 FY24 FY25 1H25 1H26 Start of commercial operations of Batangas plant. Incremental
Slide 5: 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 4Q25 1Q26 2Q26 400 333 300 264 246 200 160 149 139 97 100 20 - -16 -100 -101 -111 -132 -132 -137 -200 Pre-operating rental expenses -300 -315 -400 -390 -500 S
Slide 6: Sales mix
Sales mix REVENUES % share to total group revenues 33% 34% 33% 31% 42% 41% 40% 39% 42% 37% 37% 43% 38% 49% 47% 49% 54% 67% 66% 67% 69% 59% 60% 61% 58% 63% 63% 62% 58% 57% 51% 53% 51% 46% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1H26 High Margin Specialty Produc
Slide 7: HMSP Quarterly Volume Growth (YoY)
HMSP Quarterly Volume Growth (YoY) HMSP volume growth (YoY) 40% Confluence of events such as the late36% 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% growt
Slide 8: Exports sales
Exports sales FY19 FY20 FY21 FY22 FY23 FY25 1H25 1H26 EXPORT/ SALES 29% 33% 31% 27% 30% 26% 28% 23% Breakdown of exports 14.4 Oleochemicals 13.6 29% 12.4 Food 10.2 49% 9.1 -17% 7.4 Specialty Plastics 19% 6.3 6.1 Consumer Products ODM 3% In P bn FY20 FY21 FY22 FY23 FY24 FY25 1H25 1H26 8
Slide 9: Export vs Domestic Market
Export vs Domestic Market Sales (P bn) Gross Profits (P bn) +8% 19.2 20.7 -17% +14% 2.6 7.4 -20% 2.3 6.1 1.4 1.1 1H25 1H26 1H25 1H26 1H25 1H26 1H25 1H26 Exports Domestic Exports Domestic Blended Gross Profit Margins 18.5% 12.5% +24% Exports Domestic 9
Slide 10: 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% 13.4% 13.9% 13.1% 13.9% We expect margins to improve over 12.6% 12.4% 12.0% 10.5% 11.7% 10.8% 9.9% 10.9% 8.9% EBIT Margin time as we further inve
Slide 11: FCF turned positive in 1H26
FCF turned positive in 1H26 In P mn 1H26 FY25 EBITDA 3,222 5,852 Interest Received 12 3 Paid taxes (145) (315) Non cash items 4 170 Change in working (652) (5,143) capital Net Operating Cash 2,441 567 Flow Capex (114)* (849)* Free Cash Flow 2,327 (281) *cash basis capex 11
Slide 12: Capex normalizing after the completion of Batangas plant
Capex normalizing after the completion of Batangas plant Capex (P mn)* 3,497 • Capex peaked in 2022 and 3,179 started to normalize in 2023 after the completion of the plant • No other major capex 2,114 requirement in the near-term 1,552 1,441 1,160 767 443 456 167 2017 2018 2019 2020 2021 2022 2023
Slide 13: 1H26 Group Results
1H26 Group Results Food Ingredients Oleochemicals & Specialty Consumer D&L Industries - Other Specialty Plastics Products ODM Consolidated Chemicals % change in (10%) +6% +17% +22% +1% Revenues % change in Net (12%) (17%) +24% +27% +8% Income* 13
Slide 14: 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 Jun-26 Dec-25 Jun-26 Dec-25 Book Value 22,686 22,869 Cash 3,211 3,394 BVPS1 (in P) 3.18 3.20 Debt-to- Current Assets 33,257 32,795 3.7x 4.3x EBITDA 13.2% Debt-to- equity Total Assets 52,873 53,012 1.05x 1.11x 11.0% 1
Slide 15: Capital Structure
Capital Structure Borrowings (Pmn) Equity (Pmn) Net Gearing 96% interest 21,790 22,869 22,686 91% 4x cover 20,868 73% 73% 20,651 19,105 57% 66% P20.6 net 17,764 25,296 23,814 Billion debt 17,112 21,090 17,135 ~5.9% average 15,487 13,790 8% 17% 3,400 5,150 p.a. cost of debt* 2019 2020 2021 2022 2023
Slide 16: Net debt, effective interest rate, and interest cover
Net debt, effective interest rate, and interest cover 35 7.0% 21.9 22.0 21.9 21.3 20.7 20.6 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
Slide 17: 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 18: Working Capital Cycle
Working Capital Cycle 25,000 CASH CONVERSION 190 14,000 140 INVENTORY 170 143 139 12,000 120 20,000 114 150 107 120 110 10,000 111 100 130 101 20,625 91 15,000 110 8,000 80 19,790 74 74 90 74 12,704 12,593 16,300 6,000 11,767 60 10,000 13,142 70 9,531 9,284 11,823 4,000 50 8,150 40 5,000 30 2,000 6,
Slide 19: Investor Relations
INVESTOR RELATIONS Ownership as of June 2026 #70 Shares bought back by the Lao Family Public, 25% Lao % of # of Shares Family, Year outstanding (in mn) 75% P25 bn* Since IPO 642 shares 9% Foreign Ownership as % Ranked 70th of Outstanding Shares among 2025 106 1.6% Philippines’ largest companies 2026
Slide 20: Investor Relations
INVESTOR RELATIONS Return since IPO Price Change Total Return DNL PM +63% +187% PCOMP Index +8% +23% Price as of 7/30: P3.50 Market Cap as of 7/30: P25bn USD 406 mn (USD1:P61.57) Outstanding Shares: 7,142,857,990 Dividend yield at DNL 6.7% at current +63% levels PCOMP 12/12 06/14 12/14 06/15 06/16 1
Slide 21: Q&A
Q&A 21
Slide 22: 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 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
HE CNOIRDM1 Index (Us) 2094.75 KO1 Comdty (USD) 1115.69275 CNO & CPO 5-yr Price Chart Track / Annotate = News “ Zoo Last Pric F 3000 p 2500 > 2000 r 1500 r 1000 F500 2022 2023 2024 2085 2026
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 2.7885% p.a. 3 years +50 bps Base offer: P3bn (Series A) 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