QUARTERLY BRIEFING CALL – 1Q2017 30 June 2017
Financial Performance Net Sales EBITDA 3,768.9 +19% +29% 3,167.7 1,610.0 1,249.8 Q1 Q1 Margins 2016 2017 Gross 47% 46% Profit Q1 2016 Q1 2017 Q1 2016 Q1 2017 EBITDA 39% 43% EBIT Net Income EBIT 35% 38% Net 25% 27% Income +29% +30% 1,418.3 1,030.6 793.9 1,101.6 Q1 2016 Q1 2017 Q1 2016 Q1 2017 In PhP millions; Unaudited First Quarter ending March 31, 2017 2
Financial Performance In PhP millions Q1 2016 Q1 2017 Growth Net Sales 3,167.7 3,768.9 19% Cost of Goods Sold 1,668.4 2,051.4 23% Gross Profit 1,499.3 1,717.4 15% Operating Expense 9% 277.4 303.1 Income from Operations 16% 1,221.9 1,414.4 Finance Costs – net (77.9) (67.0) 14% Other Income/(Loss) – net (120.3) 3.9 103% Income before Income Tax 1,023.7 1,351.3 32% Provision in Income Tax 40% 229.8 320.7 Net Income 793.9 1,030.6 30% Unaudited First Quarter ending March 31, 2017 3
Balance Sheet Position Total Assets Total Liabilities Total Equity 31,232.4 +13% 19,212.1 +5% 27,568.8 18,225.9 +29% 12,020.3 9,342.9 2016 31-Mar-17 2016 31-Mar-17 2016 31-Mar-17 In PhP millions 31 Dec 2016 31 Mar 2017 Current Ratio (x) 3.34 3.58 Financial Debt to Equity (x) 0.33 0.42 Debt to Equity (x) 0.51 0.63 Financial Covenant on DE 2.5x Unaudited First Quarter ending March 31, 2017 4
Balance Sheet Position In PhP millions 31 Dec 2016 31 Mar 2017 Cash and cash equivalent 6,620.9 8,906.7 Trade and other receivables 484.9 543.1 Inventories 1,374.0 1,370.7 Other current assets 729.0 976.4 Current Assets 9,208.8 11,797.0 AFS financial assets 181.0 181.7 Property, plant and equipment 15,774.0 16,615.2 Investment properties 577.8 577.8 Other noncurrent assets 1,827.2 2,060.8 Noncurrent Assets 18,360.0 19,435.4 Total Assets 27,568.8 31,232.4 Unaudited First Quarter ending March 31, 2017 5
Balance Sheet Position In PhP millions 31 Dec 2016 31 Mar 2017 2,348.3 2,586.7 Trade and other payables Income tax payable 411.7 712.7 Current Liabilities 2,760.0 3,299.4 Loans payable 5,957.1 8,091.9 Net retirement benefits 29.6 33.2 26.1 26.4 Provision for mine rehab Net deferred tax liabilities 570.1 569.3 Noncurrent Liabilities 6,582.9 8,720.9 Total Liabilities 9,342.9 12,020.3 Capital Stock 7,500.0 7,500.0 Retained Earnings Appropriated 3,500.0 3,500.0 Unappropriated 5,961.7 6,947.3 Other equity reserves 1,264.1 1,264.8 Total Equity 18,225.9 19,212.1 Unaudited First Quarter ending March 31, 2017 6
KEY FINANCIAL HIGHLIGHTS For the first quarter ended March 31, 2017 • Net Sales increased by 19% to PhP3.8 billion from PhP3.2 billion due to higher sales volume partly offset by lower prices • EBITDA increased by 29 % to PhP1.6 billion from PhP1.2 billion • EBIT increased by 29% to PhP1.4 billion from PhP1.1 billion • Net Income increased by 30% to PhP1.03 billion from PhP793.9 million Translating to healthy margins • Gross Profit Margin is at 46% • EBITDA Margin improved to 43% from 39% • EBIT Margin improved to 38% from 36% • Net Income Margin improved to 27% from 25% • Current ratio at 3.6x with cash at PhP8.9 billion • Financial debt to equity is at 0.42x Unaudited First Quarter ending March 31, 2017 7
Recent Developments Eagle IPO : Successfully listed in the Philippine Stock Exchange raising PhP7.5 billion in gross proceeds from the firm offer (500,000,000 common shares) and PhP1.125 billion in gross proceeds from the overallotment option (75,000,000 common shares) which is fully taken-up 100.00% Far East RSA and Family PUBLIC Cement Corp. 11.5% 28.3% 60.2% 100.00% 100.00% South Western KB Space Cement Holdings, Inc. Corporation 8
Recent Developments Cebu Cement Plant Capex Disbursement Project Component Disbursement Timetable (in PhP Billion) Est. Project 2017 2018 2019 2020 Cost (4Q) 2 Million MT Integrated 7.5 - 8.5 2.25 - 2.55 3.0 - 3.4 1.5 - 1.7 0.75 - 0.85 Cement Manufacturing Plant Port Facilities 1.0 - 2.0 - 0.30 - 0.60 0.70 - 1.40 - Cement Terminals 1.0 - 2.0 - 0.15 - 0.30 0.50 - 1.0 0.35 - 0.70 TOTAL 9.5 - 12.5 2.25 - 2.55 3.45-4.30 2.70 - 4.10 1.10 - 1.55 Use of Proceeds Partially finance construction of a 2 Million MT capacity cement plant and its support facilities in Cebu (“Cebu Cement Plant”) Details It will include construction of a manufacturing plant in Cebu, and distribution centers and marine terminals in Southern Luzon, Visayas, and Mindanao such as, but not limited to, the following areas: Camarines Sur, Camarines Norte, Bacolod, Iloilo, Negros Occidental, Negros Oriental, Palawan, Sorsogon, Leyte, and Davao 9
Plans and Strategies Eagle’s Annual Cement Capacity (million metric tons) 9.1 7.1 7.1 5.1 5.1 3.1 2015 2016 2017 2018 2019 2020 Line 2 Line 3 Cebu Plant (Line 4) completion completion completion ✓ Increase integrated production capacity and expand distribution channels in key growth regions in the country ✓ Ensure sustainability and proximity of raw material sources ✓ Enhance customer and product value proposition ✓ Maintain price competitiveness 10
End of Presentation Thank you
Cash Flow Statement In PhP millions 31 Mar 31 Mar 2016 2017 Net cash provided by operating activities 1,950.3 1,381.3 Net cash used in investing activities (1,083.2) (415.4) Net cash provided by (used in) financing activities (138.6) 1,988.4 Net Increase in cash and cash equivalents 1,396.3 2,286.5 Effects of exchange rate changes on cash and cash equivalents (19.9) (0.7) Cash and cash equivalents, beginning 4,472.9 6,620.9 Cash and cash equivalents at period end 5,849.3 8,906.7 Unaudited First Quarter ending March 31, 2017 12
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