QUARTERLY BRIEFING CALL 1Q2017 30 June 2017 Financial Performance - - PowerPoint PPT Presentation

QUARTERLY BRIEFING CALL – 1Q2017

30 June 2017

Financial Performance

In PhP millions; Unaudited First Quarter ending March 31, 2017

2

Net Sales EBITDA EBIT Net Income

1,101.6 1,418.3

Q1 2016 Q1 2017

1,249.8 1,610.0

Q1 2016 Q1 2017

793.9 1,030.6

Q1 2016 Q1 2017

Margins Q1 2016 Q1 2017 Gross Profit 47% 46% EBITDA 39% 43% EBIT 35% 38% Net Income 25% 27% +29% +30%

3,167.7 3,768.9

Q1 2016 Q1 2017

+19% +29%

Financial Performance

3

Unaudited First Quarter ending March 31, 2017

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 277.4 303.1 9% Income from Operations 1,221.9 1,414.4 16% 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 229.8 320.7 40% Net Income 793.9 1,030.6 30%

Balance Sheet Position

4

Unaudited First Quarter ending March 31, 2017

Total Assets Total Liabilities Total Equity

27,568.8 31,232.4

2016 31-Mar-17

9,342.9 12,020.3

2016 31-Mar-17

18,225.9 19,212.1

2016 31-Mar-17

+13% +29% +5% 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

Balance Sheet Position

5

Unaudited First Quarter ending March 31, 2017

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

Balance Sheet Position

6

Unaudited First Quarter ending March 31, 2017

In PhP millions 31 Dec 2016 31 Mar 2017 Trade and other payables 2,348.3 2,586.7 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 Provision for mine rehab 26.1 26.4 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

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

• ption (75,000,000 common shares) which is fully taken-up

8

Far East Cement Corp. RSA and Family KB Space Holdings, Inc. South Western Cement Corporation

60.2% 28.3% 100.00% 100.00% 100.00%

PUBLIC

11.5%

Recent Developments

Cebu Cement Plant Capex Disbursement

Project Component (in PhP Billion) Disbursement Timetable

• Est. Project

Cost 2017 (4Q) 2018 2019 2020 2 Million MT Integrated Cement Manufacturing Plant 7.5 - 8.5 2.25 - 2.55 3.0 - 3.4 1.5 - 1.7 0.75 - 0.85 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

9

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

Plans and Strategies

Eagle’s Annual Cement Capacity (million metric tons)

10

3.1 5.1 5.1 7.1 7.1 9.1

2015 2016 2017 2018 2019 2020

✓ 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

Line 3 completion Cebu Plant (Line 4) completion Line 2 completion

End of Presentation Thank you

Cash Flow Statement

12

Unaudited First Quarter ending March 31, 2017

In PhP millions 31 Mar 2016 31 Mar 2017 Net cash provided by operating activities 1,950.3 1,381.3 Net cash used in investing activities (415.4) (1,083.2) 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