QUARTERLY BRIEFING CALL – 1Q201730 June 2017
Financial Performance
In PhP millions; Unaudited First Quarter ending March 31, 20172
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
MarginsQ1
2016Q1
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 millions31 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 millionTranslating 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, 20177
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 commonshares) and PhP1.125 billion in gross proceeds from the overallotmentoption (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 DisbursementProject 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 cementplant and its support facilities in Cebu (“Cebu Cement Plant”)
Details It will include construction of a manufacturing plant in Cebu, anddistribution centers and marine terminals in Southern Luzon,Visayas, and Mindanao such as, but not limited to, the followingareas: Camarines Sur, Camarines Norte, Bacolod, Iloilo, NegrosOccidental, 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 PresentationThank 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