crown asia chemicals...

CROWN ASIACHEMICALS CORPORATION

Listed with PSE on April 27, 2015

INVESTORS’ BRIEFING May 9, 2018

To be the leading and preferred manufacturerand supplier of world class and innovativethermoplastic, industrial and chemicalproducts.

V I S I O N

MISSION

``To strive for market leadership by offering innovative and technologicallyup-to-date Thermoplastic products that meet or exceed both nationaland international standards ensuring quality, reliability, and value for moneyfor our customers and upholding a nurturing environment for our employees,while managing the business professionally with integrity providing goodreturn to our shareholders.’’

CITATIONS

Financial Times Top 1000 High Growth Companies in Asia Pacific

Sharia Compliant Company

PIPE GROUP

COMPOUNDS

DIVISION

PP-R / HDPE

DIVISION

PVC PIPE DIVISION

PVC ROOFING DIVISION

BUSINESS GROUPS AS AT APRIL 30, 2018

Chairman – Walter H. Villanueva

Independent Director – Ernesto Alberto

Independent Director – Marie Therese G. Santos

Independent Director – Bede Lovell Gomez

Director – Eugene H. Lee Villanueva

Director – Tita P. Villanueva, CPA

Director – Nicasio T. Perez

Director – Jefferson T. Sy

Director – Derrick P. Villanueva

BOARD OF DIRECTORS

FINANCIAL HIGHLIGHTS

SUMMARY OF INCOME

In Millions (Php) 2015 2016 2017Increase

(decrease)

REVENUES 1,072.84 1,115.98 1,255.30 12.48%

GROSS PROFIT 277.61 298.4 347.98 16.62%

Other Operating Expense 126.74 138.16 179.26 29.75%

OPERATING INCOME

150.87 160.24 168.71 5.29%

INCOME BEFORE TAX 146.35 164.59 167.97 2.05%

INCOME TAX EXPENSE 46.21 50.02 50.88 1.72%

NET INCOME AFTER TAX

100.15 114.57 117.1 2.21%

Earnings per Share 0.17 0.18 0.19

SUMMARY OF FINANCIALPOSITION

65%65%63%

In Millions (Php) 2015 2016 2017Increase

(decrease)

Current Assets 732.1 802.47 790.64 -1.47%

Noncurrent Asset 267.93 342.64 411.88 20.21%

TOTAL ASSETS 1,000.02 1,145.11 1,202.52 5.01%

Current Liabilities 132.64 193.33 148.31 -23.29%

Noncurrent Liabilities 17.47 19.33 33.45 73.05%

TOTAL LIABILITIES 150.11 212.66 181.77 -14.53%

TOTAL EQUITY 849.91 932.45 1,020.75 9.47%

Total Liabilities & Equity 1,000.02 1,145.11 1,202.52 5.01%

SUMMARY OF DIVIDENDS

2016 2017 2018CASH DIVIDENDS PER SHARE

.05 .09 0.09

COMPOUNDS DIVISION

COMPOUND SALES BY APPLICATION

LOCAL SALES VS EXPORT SALES

2015 2016 2017Wires and Cables 80.68% 77.78% 80.49%

Films & Sheets 4.25% 4.24% 3.95%

Bottles 4.88% 7.60% 6.24%

IC Tubes 6.47% 8.59% 8.5%

Others 3.71% 1.79% .82%

COMPOUND SALES BY APPLICATION

PVC/PIPES GROUP

PIPES GROUP SALESBY APPLICATIONS

65%65%63%

2015 2016 2017Sanitary 44.96% 44.54% 46.15%

PPR/HDPE 5.92% 11.51% 12.19%

Electrical 39.15% 34.10% 31.14%

Potable 5.21% 4.99% 5.16%

Watermain 1.83% 2.11% 1.96%

Telecom 0.23% 0.72% .07%

Others 2.72% 2.03% 2.28%

TOTAL 100.00% 100.00% 100%

NOTE: PVC Roof Commercial Operations starts 2018.

PVC/PIPES MARKET CATEGORIES

65%65% TRADE

• DISTRIBUTORS• WHOLESALERS• DEALERS• MODERN TRADE / RETAIL

INDUSTRIAL

• SOLAR POWER PLANTS• SHIPYARD

INSTITUTIONAL

• HOSPITAL/HEALTH INSTITUTIONS• SCHOOLS• HOTELS• CONVENTIONAL CENTER

• MALLS• MIXED USE DEVELOPMENTS• OFFICE/BPO BUILDINGS• SUPERMARKETS• TOWNSHIPS

• EXPRESSWAYS• AIRPORTS• NHA HOUSING • AIRBASE• WATERWORK SYSTEMS• CONVENTION CENTER• RAILWAYS/SUBWAYS

INFRASTRUCTURES/GOV’T

COMMERCIAL

PVC/PIPES MARKET CATEGORIES

65%65%TOURISM RESIDENTIAL

• HOTELS• RESORTS (LEISURE)• RESORT (CULTURAL)

• RESIDENTIAL BUILDINGS• TOWNHOUSES / ROW HOUSES• SUBDIVISIONS

• AyalaLand• Allhome• Federal Land• Citicore Power• Meralco• Filinvest - 100 West / Cyberzone / Vinia• National Housing Authority• Vista Land & LifesCapes Inc.• Megaworld Corporation• SM Development Corporation• SM Prime Holdings• Century Properties• NHA Housing• New San Jose Builders, Inc.• Ortigas & Company

• Shang Properties• 8990 Housing Development Corporation• Eton Properties Philippines, Inc.• Manila Golf & Country Club• Megawide Construction Corporation• Puregold• Robinsons Land Corporation• Robinsons Communities • Robinsons Hotels & Resorts• San Miguel Properties• Splendido Taal – Golf club• San Miguel Company• Sta. Lucia Land Inc.• Solar Philippines

• Starmalls• Suntrust Properties• UniHealth Southwoods /

Paranaque Hospital & Medical Center

• Solaire Resort & Casino• Allied Care Expert Medical

Center.• University of Sto. Tomas • De La Salle University • Medical City• D.M. Consunji, Incorporated• EEI Corporation l Builders of

a better Future

SOME PROJECT CLIENTS SUPPLIED TO…

1. Pursue growth/expansion (geographic and/or product diversification)

2. Expand market segments.

3. Enhance Corporate Governance.

4. Upgrade information Technology.

5. Re-engineer Corporate Organization.

6. Adopt Green Initiatives.

7. Succession planning.

BUSINESS FOCUS

GROWTH AREAS1. PVC Roofing2. New Product/s3. Additional Market Segment in Trade Sales & Projects Sales and modern

Trade / Retail4. Geographic Positioning (Local or Export )5. Business Collaborations6. Capacity Expansion

PROFITABILITY / GROWTH DRIVERS1. Efficiency / Productivity2. Cost Management3. Streamline Systems4. Risks Management against Business disruption5. Aggressive Marketing & Advertising6. Market Visibility

ON GOOD CORPORATE GOVERNANCE

The Board of Directors (BOD) has diversity of membership in terms of gender, age, work

experience, and field expertise (Chemical engineering and/or Chemical Sciences, Accounting &

Finance, controllership, Production, Entrepreneurship and management, Sales and Marketing,

Investments and fund management.

Crown Asia Chemicals Corporation (CACC) practices good corporate governance to

ensure fairness, accountability and transparency with its investors, customers, suppliers, and all

stakeholders.

.

.

• Submitted revised Manual of Corporate Governance to the SEC on May 30, 2017.

• Constituted the Corporate Governance Committee and reconstituted the Audit Committee and Risk

oversight Committee.

• Board-committees are chaired by Independent Director (ID) and majority members are Independent

Directors (3)

• The board conducted Annual performance evaluation of the BOD and Board Committees.

CACC Manual of Corporate Governance, Vision and Mission Statements, CORE Values, Company

Creed (ACE-I) Code of Business Ethics, Policies on whistle blowing and insiders Trading, Risk

Management and Related Parties among others, are incorporated in our website www.crownpvc.com.ph..

ON GOOD CORPORATE GOVERNANCE

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

65%65%INITIATIVE BENEFICIARY

Rehabilitate shelter and upgrade habitat. Philippine Eagle Habitat restoration and rehabilitation at the Ninoy Aquino Parks and Wildlife Center in Quezon City.

Technical skills at TESDA. Selected scholars from Bulacan

Fund raising partnership with United Architects of the Phil. Manila Maharlika Chapter

“The Child Hope of Asia Philippines”

Support Quezon City Government charity event. Health care to the less fortunate children and in part, for the ‘Adopt-a-Child stricken with Cancer” advocacies of the I Help Foundation of the Childhouse charitable institution.

CROWN ASIACHEMICALS CORPORATION

TITA P. VILLANUEVA

Investors Relations Officer

tpvillanueva@crownpvc.com.ph

SUSAN A. MAGALLANES

Asst. Investors Relations Officer

samagallanes@crownpvc.com.ph