D&l Industries, Inc. · PSE:DNL
D&l Industries — Q1 2026 Earnings Presentation
27 slides from D&l Industries's earnings presentation, May 2026
Slide 1: D&L's new plant in Batangas, Philippines
D&L’s new plant in Batangas, Philippines
Slide 2: 1Q26 Highlights
1Q26 Highlights 1 1Q26 net income reached ₱717mn, up 5% YoY and 12% QoQ 2 Margins improved, with 1Q26 blended GPM up 0.7 ppt YoY and HMSP GPM up 2.8 ppts YoY 3 FCF turned positive, supported by lower incremental working capital requirements as coconut oil prices started to normalize and capex was mu
Slide 3: 1Q26 net income reached ₱717mn, up 5% YoY and 12% QoQ
1Q26 net income reached ₱717mn, up 5% YoY and 12% QoQ *number of outstanding shares: 7,142,857,990 3
Slide 4: Net Income Breakdown
Net Income Breakdown Net Income (Php mn) Net income breakdown Consumer Products ODM, 6% 3,318 Food Ingredients, 2,643 2,590 13% 2,295 2,342 Specialty Chemrez Plastics, Group, 41% 39% +5% 681 717 FY21 FY22 FY23 FY24 FY25 1Q25 1Q26 Start of commercial operations of Batangas plant. Incremental expenses
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 400 333 300 264 246 200 160 149 97 100 20 - -16 -100 -101 -111 -132 -132 -137 -200 Pre-operating rental expenses -300 -315 -400 -390 -500 Start of c
Slide 6: Exports sales
Exports sales FY19 FY20 FY21 FY22 FY23 FY25 1Q25 1Q26 EXPORT/ SALES 29% 33% 31% 27% 30% 26% 34% 24% Breakdown of exports 14.4 13.6 Oleochemicals 12.4 33% Food 10.2 48% 9.1 Specialty Plastics 19% 6.3 -36% 4.8 Consumer Products 3.1 ODM 0% In P bn FY20 FY21 FY22 FY23 FY24 FY25 1Q25 1Q26 6
Slide 7: Export vs Domestic Market
Export vs Domestic Market Sales (P bn) Gross Profits (P bn) +3% -36% 9.4 9.7 -34% +23% 4.8 3.1 1.1 0.9 0.6 0.9 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 Exports Domestic Exports Domestic Blended Gross Profit Margins 18.8% 11.6% +24% Exports Domestic 7
Slide 8: HMSP Quarterly Volume Growth (YoY)
HMSP Quarterly 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% grow
Slide 9: 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% 42% 37% 37% 38% 42% 43% 49% 47% 54% 51% 67% 66% 67% 69% 59% 60% 61% 58% 63% 63% 62% 58% 57% 51% 53% 46% 49% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 10: Pass-through pricing mechanism as natural hedge against volatility in forex and commodity prices
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% 13.4% 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: Condensed Statement of Cash Flows
Condensed Statement of Cash Flows In P mn 1Q26 FY25 EBITDA 1,543 5,842 Interest Received 13 7 Paid taxes (123) (400) Non cash items (12) 111 Change in working (959) (5,970) capital Net Operating Cash 462 (410) Flow Capex (123)* (812)* Free Cash Flow 339 (1,222) *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 1,160 767 443 456 128 2017 2018 2019 2020 2021 2022 2023
Slide 13: 1Q26 Group Results
1Q26 Group Results Food Ingredients Oleochemicals & Specialty Consumer D&L Industries - Other Specialty Plastics Products ODM Consolidated Chemicals % change in (16%) +33% +10% +19% (10%) Revenues % change in Net (69%) +34% +22% +65% +5% Income 13
Slide 14: Biodiesel blend to remain at 3% (B3); B4 and B5 implementation 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 15: 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 16: 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-26 Dec-25 Mar-26 Dec-25 Cash 3,647 3,394 Book Value 23,576 22,869 Current Assets 37,030 32,796 BVPS1 (in P) 3.30 3.20 Return Ratios starting to improve Debt-to- equity 12.2% Total Assets 56,724 53,017 1.06x 1.11x
Slide 17: Capital Structure
Capital Structure Borrowings (Pmn) Equity (Pmn) Net Gearing 98% interest 21,790 22,869 23,576 90% 3x cover 20,868 73% 73% 20,651 19,105 57% 66% P21.3 net 17,764 25,296 24,953 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 18: 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 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
Slide 19: Working Capital Cycle
Working Capital Cycle 25,000 CASH CONVERSION 190 14,000 140 INVENTORY 170 12,000 120 143 139 20,000 150 107 120 110 10,000 111 100 106 130 101 91 15,000 20,530 110 8,000 80 19,790 74 90 74 12,704 12,832 16,300 6,000 11,767 60 10,000 13,142 70 9,531 70 9,284 11,823 4,000 50 40 8,150 5,000 30 2,000 6,
Slide 20: Investor Relations
INVESTOR RELATIONS Ownership as of March 2026 #68 Shares bought back by the Lao Family Public, 25% Lao % of Family, # of Shares Year outstanding 75% (in mn) P26 bn* shares Since IPO 642 9% Foreign Ownership as % Ranked 64th of Outstanding Shares among 2025 106 1.6% Philippines’ largest companies 14
Slide 21: Investor Relations
INVESTOR RELATIONS Return since IPO Price Change Total Return DNL PM +67% +191% PCOMP Index 0.24% +15% Price as of 4/30: P3.58 Market Cap as of 4/30: P26bn USD 417 mn (USD1:P61.48) Outstanding Shares: 7,142,857,990 Dividend yield at DNL 5.9% at current +67% levels PCOMP 12/12 06/13 12/13 06/14 12/14
Slide 22: Q&A
Q&A 22
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
CNO & CPO 5-yr Price Chart Annotate News Zoom Last Price BE CNOIRDM2 Index (USD)-2225.00 KO1 Comdty (USD) 1133,9946 3000 | 12568.8794) Ww 2500 Ny sod 1000 500
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 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 27: 3yr and 5yr BVAL rates
3yr and 5yr BVAL rates D&L Bond Listing September 2021 27