PPR / HDPE DIVISION PPR P IPE P RODUCTS The CROWN PP-R series that - - PowerPoint PPT Presentation

ANALYSTS’ BRIEFING

NOVEMBER12, 2015

• Background
• Business Groups, Products and Markets
• After the IPO
• Financials
• Business Plans

OUTLINE

INTRODUCTION OF EXECUTIVES

Walter H. Villanueva, Filipino Chairman of the Board General Manager – Pipes Group General Manager – PPR/HDPE Division Eugene H. Lee-Villanueva, Filipino Director President General Manager – Compounds Division Tita P. Villanueva, Filipino Director Vice President – Comptroller Nicasio T. Perez, Filipino Director Vice President – Treasurer

INTRODUCTION OF EXECUTIVES

Derrick P. Villanueva, Filipino Director General Manager – Pipes Division Hans Joseph T. Perez, Filipino Assistant General Manager-PPR/HDPE Division Samuel Leonard S. Lee Villanueva, Filipino Assistant General Manager-Compounds Division

BACKGROUND

Entered business of manufacturing PVC pipes (flexible electrical 1998; electric and potable water 2000; sanitary 2002; pressure main distribution & telco conduit pipes 2006)

1998

Expanded the application

• f PVC compounds

Bottles IC Tubes Films

2003 1990

Changed business to production and sale of PVC compounds for wires and cables Incorporated and started

• perations

trading imported PE compounds and paraffin waxes

1989 April 2015

Listed on the Philippine Stock Exchange on April 27, 2015

August 2015

Started manufacturing

• wn PPR pipes.

Started trading CROWN HDPE pipes and fittings in 2006 and manufacture own HDPE pipes in 2013

2006 & 2013 September 2015

Expanded manufacturing capacity of HDPE pipes

BUSINESS GROUPS

Compounds Division PVC Pipe Division PPR/HDPE Division

Pipes Group

COMPOUNDS DIVISION

COMPOUNDS DIVISION

Wires and Cables IC Tubes Films & Sheets Bottles Customized Compounds

COMPOUNDS SALES

42% 43% 43% 56% 58% 57% 57% 44%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 3Q 2014 3Q 2015 Export Local

COMPOUNDS SALES BY APPLICATION

82% 75% 76% 80% 5% 8% 8% 7% 5% 6% 6% 4% 5% 7% 6% 5% 3% 4% 5% 4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 3Q 2014 3Q 2015 Wires & Cables IC Tubes Films & Sheets Bottles Others

PIPES GROUP

PVC PIPE PRODUCTS

PVC PIPE FITTINGS

PVC PIPE FITTINGS

PIPE GROUP SALES

51% 54% 53% 62% 49% 46% 47% 38%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 3Q 2014 3Q 2015 Project Sales Trade Sales

PIPE GROUP SALES BY PRODUCT GROUP

2013 2014 3Q 2014 3Q 2015 Sanitary 49.72% 44.19% 45.34% 45.12% Electrical 36.93% 40.82% 38.95% 39.46% Potable 6.50% 6.12% 6.57% 5.66% PPR/HDPE 2.54% 2.73% 2.36% 5.04% Watermain 1.57% 1.69% 1.62% 1.86% Telecom 0.29% 1.11% 1.28% 0.19% Others 2.45% 3.33% 3.89% 2.67% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage of Product group Sales

REGIONS COVERED

REGIONS

• Region I (Ilocos Region)
• CAR (Cordillera Administrative

Region)

• Region II (Cagayan Valley)
• Region III (Central Luzon)
• NCR (Metro Manila)
• Region IV-A (Calabarzon)
• Region IV-B (MIMAROPA)
• Region V (Bicol Region)
• Region VI (Western Visayas)
• Region VII (Central Visayas)
• Region VIII (Eastern Visayas)
• Region IX (Zamboanga Peninsula)
• Region X (Northern Mindanao)
• Region XI (Davao Region)
• Region XII (SOCCSKSARGEN)
• Region XIII (CARAGA)
• ARMM (Autonomous Region of

Muslim Maguindanao)

PROJECT SALES

• GOVERNMENT PROJECTS
• SUBDIVISIONS
• HERITAGE RESORTS
• MALLS
• CONVENTION CENTER
• HOSPITALS
• HOTELS
• SCHOOLS
• SUPERMARKETS
• OFFICE BUILDINGS
• RESIDENTIAL BUILDINGS

MARKET CATEGORIES

TRADE SALES

• DISTRIBUTORS
• WHOLESALERS
• DEALERS

PPR / HDPE DIVISION

PPR PIPE PRODUCTS

The CROWN PP-R series that adheres to International Standards, are manufactured with high grade quality material for maximum safety, strength and durability to suit your essential needs for a wide range of hot and cold water applications.

HDPE PIPE PRODUCTS

CROWN FUERZA

• High-end and industrial piping applications

which demand higher pressure rates. CROWN SIGMA

• Gas pipe for natural gas distribution

network with pressure rate up to 4 bars.

• Drinking water pipe with pressure rate up

to 16 bars.

• Sewers, drainage, irrigation and

distribution lines. FEATURES

• Chemical resistant with thermal properties
• High flow capacity
• Long life cycle
• Non-corrosive
• Tough and flexible
• Weather and environmental stress

resistant

PPR PIPE FITTINGS

HDPE PIPE FITTINGS

AFTER THE IPO

BREAKDOWN OF NET PROCEEDS FROM THE IPO AS AT SEPTEMBER 30, 2015 Purpose Amounts Allocated Amounts Disbursed Net Construction of PP-R and HDPE manufacturing plant and warehouse, and Purchase of PP-R and HDPE equipment P66,200,000 P60,715,000 P5,485,000 Debt retirement 43,800,000 43,800,000

• Modernization of Existing Compounds and Pipes

Plants 25,000,000 3,500,000 21,500,000 Working capital purposes 68,988,361 62,150,000 6,838,361 Total P203,988,361 P170,165,000 P33,823,361

AFTER THE IPO

MARKET INFORMATION Price as of 11/06/15 P2.45 I/O Shares 630.80 million MCAP P1.55 billion 52-Week High P3.33 52-Week Low P1.41* P/E-TTM CROWN 16.83x PSEi 20.07x DNL 22.43x Regional Comparables 19.26x

*IPO Price

SUMMARY OF COMPREHENSIVE INCOME

In P millions 2013 2014

• Jan. to Sept.,

2014

• Jan. to Sept.,

2015 Increase /Decrease % REVENUES P 801.82 P 850.74 P 622.37 P 799.24 28.42% Cost of Goods Sold 628.53 639.43 474.31 612.24 29.08% GROSS PROFIT 173.29 211.31 148.06 187.00 26.30% Other Operating Expense 103.86 115.96 84.09 84.76 .80% OPERATING INCOME 69.43 95.35 63.97 102.24 59.82% Other Income (Charges) 1.64 (1.63) (0.81) (1.51) 85.96% INCOME BEFORE TAX 71.07 93.72 63.16 100.73 59.49% Income Tax Expense 21.32 28.34 19.12 30.23 58.15% NET INCOME P 49.75 P 65.38 P 44.04 P 70.50 60.06%

Earnings per Share P 0.14 P 0.14 P 0.12 P 0.15 25%

SUMMARY OF FINANCIAL POSITION

In P millions 2013 2014 September 2015 Increase/(Decrease) % Total Current Assets 480.18 604.24 748.51 23.88% Total Noncurrent Assets 177.46 224.81 262.50 16.77% TOTAL ASSETS 657.63 829.05 1,011.01 21.95% Total Current Liabilities 139.47 251.10 176.59 (29.67%) Total Noncurrent Liabilities 16.14 15.05 15.72 4.45% TOTAL LIABILITIES 155.61 266.15 192.31 (27.74%) TOTAL EQUITY 502.02 562.90 818.70 45.44% TOTAL LIABILITIES & EQUITY 657.63 829.05 1,011.01 21.95%

BUSINESS GROUPS

• ad

Sales per Business Group 65.16% 65.45% 64.79% 64.37% 34.84% 34.55% 35.21% 35.63%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 3Q 2014 3Q 2015 Compounds Pipes Group

KEY PERFORMANCE INDICATORS

2013 2014 September 2014 September 2015 Return on Assets 7.83% 8.80% 6.15% 7.66% Return on Equity 10.33% 12.28% 8.44% 10.20% Current Ratio 3.44x 2.41x 2.60x 4.24x Total Liabilities to Equity Ratio 0.31x 0.47x 0.43x 0.23x Days Inventory 96 days 137 days 173 days 184 days Days Receivable 65 days 63 days 85 days 87 days Days Payable 63 days 67 days 98 days 78 days

BUSINESS PLANS (4TH QUARTER 2015)

• Completion of PPR warehouse.
• Complete delivery of metal moulds for PPR Fittings.
• Completion of Flood Control System.
• Delivery of Compounds Division new extruder in

December, 2015.

• Acquisition of Pipe Division new Extruder.
• Acquisition of two (2) new trucks to augment delivery

capacity

BUSINESS PLANS (2016)

• Added capacity of new Compounds extruder for

bottles, IC tubings and films & sheets.

• Delivery of Pipe Division new extruder for big sized

PVC Pipes.

• Enhance customized Compounds formulations.
• Additional product in sizes, specifications, colors and

customization.

• Set-up Marketing Department.
• Broaden market reach to more key cities.
• Hiring more Field Sales Representatives, Project Group

and Business Development personnel.

• Active participation in exhibits and events.
• More advertising.

END OF PRESENTATION

TITAP . VILLANUEVA INVESTOR RELATIONS OFFICER

CONTACTDETAILS: (413)-8032 - 35

EMAILADDRESS: tpvillanueva@crownpvc.com.ph