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TRANSCRIPT
CROWN ASIACHEMICALS CORPORATION
Analysts’ Briefing March 22, 2017
Management Team
Business Groups/Divisions
Financial highlights
Business Groups/Divisions and Products
2017 Business Plans
OUTLINE
Walter H. VillanuevaChairman of the Board
Head & General Manager -PVC/Pipes Group
Eugene H. Lee-VillanuevaPresident
General Manager - Compounds Division
Tita P. Villanueva, CPAVice President – Comptroller
Nicasio T. PerezVice President – Treasurer
Derrick P. VillanuevaGeneral Manager – Pipes Division
Hans Joseph T. PerezAsst. General Manager - PPR/HDPE Division
MANAGEMENT TEAM
1989 1990 1998 2003
2006 March 2011 April 2015 August 2015
Incorporated
and started
operations trading
imported PE
compounds and
paraffin waxes
Began the business of
producing and
marketing of PVC
compounds for wires
and cables
Added to the business the
manufacturing of flexible PVC
electrical in 1998; Electrical
Pipes and Fittings and potable
water pipes in 2000; Sanitary
pipes in 2002; Pressure main
distribution & Telco conduit
pipes in 2006)
Expanded the applicationof PVC compounds for IC
Tubes, Films & Sheets, and Bottles.
Bottles
IC Tubes Films & Sheets
Started trading
CROWN HDPE pipes
and fittings
Opened first
provincial sales and
distribution office for
pipes in Davao City
Listed at the Philippine Stock
Exchange on April 27, 2015
Started manufacturing
PPR pipes and fittings
BACKGROUND
SEPTEMBER 2015 JANUARY 2016 FEBRUARY 2016
MAY 2016 OCTOBER 2016
Started manufacturing
HDPE pipes
Expanded production
capacity of Compounds
Division
Launched the Enduro
PVC product line
CSR Initiative
JANUARY 2016
Installed New Compounds
Extruder
Installed new Pipe Extruder for wide-diameter Sanitary Pipe.
BACKGROUND
PVC/PIPES GROUP
COMPOUNDS
DIVISION
PP-R / HDPE
DIVISION
PIPES DIVISION
ROOF MATERIALS
DIVISION
BUSINESS GROUPS
FINANCIAL HIGHLIGHTS
SUMMARY OF COMPREHENSIVE INCOME
In Millions (Php) 2014 2015 2016Increase/
(Decrease)
REVENUES 850.74 1,072.84 1,115.98 4.02%
GROSS PROFIT 211.31 277.61 298.40 7.49%
Other Operating Expense 115.96 126.74 138.16 9.02%
OPERATING INCOME 95.35 150.87 160.24 6.21%
Other Income (Charges) (1.63) (4.53) 4.35 196.05%
INCOME BEFORE TAX 93.72 146.35 164.59 12.46%
INCOME TAX EXPENSE 28.34 46.21 50.02 8.26%
NET INCOME 65.38 100.15 114.57 14.40%
Earnings per Share 0.14 0.17 0.18
SUMMARY OF FINANCIALPOSITION
65%65%63%
In Millions (Php) 2014 2015 2016Increase/
(Decrease)
Current Assets 604.24 732.1 802.47 10%
Noncurrent Asset 224.81 267.93 342.64 28%
TOTAL ASSETS 829.05 1,000.02 1,145.11 15%
Current Liabilities 251.1 132.64 193.33 46%
Noncurrent Liabilities 15.05 17.47 19.33 11%
TOTAL LIABILITIES 266.15 150.11 212.66 42%
TOTAL EQUITY 562.9 849.91 932.45 10%
Total Liabilities & Equity 829.05 1,000.02 1,145.11 15%
KEY PERFORMANCEINDICATORS
65%65%63%
2014 2015 2016
Current Ratio 2.41x 5.52x 4.15x
Total Liabilities to Equity Ratio
0.47 0.18 0.23
Days Inventory 137 days 138 days 149 days
Days Receivable 63 days 63 days 74 days
Days Payable 67 days 52 days 59 days
Earnings per Share 0.14 0.17 0.18
COMPOUNDS DIVISION
COMPOUNDS DIVISION
65%65%
COMPOUNDS DIVISION
65%65%63%
COMPOUNDS SALES
***
COMPOUNDS SALES BY APPLICATIONS
65%65%63%
2014 2015 2016
Wires and Cables 75.37% 80.68% 77.78%
Films & Sheets 5.96% 4.25% 4.24%
Bottles 6.98% 4.88% 7.60%
IC Tubes 7.59% 6.47% 8.59%
Others 4.10% 3.71% 1.79%
TOTAL 100.00% 100.00% 100.00%
PVC/PIPES GROUP
UV PROTECTION
CROWN manufactures pipes using a
proprietary formulation for protecting its
Sanitary pipes and Flexible electrical pipes from
the effects of ultraviolet (UV) rays and
weathering. This extends the life of the pipes
resulting in cost savings to the user.
Crown UV-Protected pipes are durable
and can be stored and installed outdoors without
fear of fast degradation and brittleness that can
be caused by long term direct exposure to
sunlight.
PVC PIPES PRODUCTS
CROWN SUPREME CROWN BLUE CROWN PRESSURE MAIN BLUE
CROWNFLEX
CROWN HI-TECH CROWN TELECOM CROWN UNIVERSAL CROWN SANITARY
PVC PIPES PRODUCTS
BLUE FITTINGS
CROWN PRESSURE MAIN BLUE FITTINGS
ENDURO PIPES
CROWN SANITARY FITTINGS
PP-R / HDPE DIVISION
PP-R / HDPE DIVISION
PP-R SOCKET WELDER
PPR PIPES CROWN HDPE
CROWN PIPE CUTTER
PP-R PRODUCTS
The CROWN PP-R series, that adheres to
International Standards (DIN 8077/8078), are
manufactured with high grade quality material for
maximum safety, strength and durability to suit
essential needs for a wide range of hot and cold water
applications.
PP-R Pipes can be used for the following:
• Residential cold and hot water system;
• Underground heating system;
• Conveyor of Industrial water and chemical materials;
• Potable and pure water pipelines;
• Hot water recycling system;
• Compressed air pipelines; and
• Other industrial and agricultural pipelines.
PP-R FITTINGS(CROWN ASIA CHEMICALS MANUFACTURES FULL RANGE OF PPR FITTINGS)
HDPE 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
HDPE FITTINGS
PIPES MARKET CATEGORIES
65%65%PROJECT SALES TRADE SALES
• EXPRESSWAYS/ROADS• AIRPORTS• SUBDIVISIONS• SOLAR POWER PLANTS• MALLS• MIXED USE DEVELOPMENTS• HOSPITALS• HOTELS• SCHOOLS• OFFICE/BPO BUILDINGS• RESIDENTIAL BUILDINGS• TOWN HOUSES• HERITAGE RESORT
• DISTRIBUTORS• WHOLESALERS• DEALERS
PIPES GROUP SALES
PIPES GROUP SALESBY APPLICATIONS
65%65%63%
2014 2015 2016
Sanitary 44.19% 44.96% 44.54%
PPR/HDPE 2.73% 5.92% 11.51%
Electrical 40.82% 39.15% 34.10%
Potable 6.12% 5.21% 4.99%
Watermain 1.69% 1.83% 2.11%
Telecom 1.11% 0.23% 0.72%
Others 3.33% 2.72% 2.03%
TOTAL 100.00% 100.00% 100.00%
BUSINESS PLANS 2017
BUSINESS PLANS 2017
• Acquisition of Property.
The present property of 3.2 hectares inGuiguinto, Bulacan is already fully utilized.The company will start searching for suitableproperties for future expansion.
BUSINESS PLANS 2017
•Expand Capacity of Pipes Group.
The Pipes Division acquired a newextruder capable to produce big-sized PVCpipes with diameter ranging from 315mm to630mm. These big-sized pipes will be used incanals, waterways, subdivision drainage,secondary and municipal roads drainage, andvertical collective drainage in high-risebuildings.
BUSINESS PLANS 2017
BUSINESS PLANS 2017
BUSINESS PLANS 2017
• Broaden sales reach to more key cities.
The company will undertake moreaggressive marketing campaigns in key regionsin Luzon, Visayas and Mindanao. Morebusiness development personnel are beingmobilized to reach key practitioners in theconstruction industry.
BUSINESS PLANS 2017
BATAAN
MINDORO
PALAWAN
CEBU
LEYTE
DAVAO
BUSINESS PLANS 2017
• Launch uPVC Roofing Materials (UnplasticizedPVC Roofing Materials).
This new product will be launched aroundthe second half of 2017. Construction ofproduction facilities are underway.
CROWN ASIACHEMICALS CORPORATION
TITA P. VILLANUEVA
Investor Relations Officer
Email Address: [email protected]