PSE Circular for Brokers No. 572-00

March 7, 2000 PSE CIRCULAR FOR BROKERS NO. 572-00 Carlota is Top Sugar Producer Central Azucarera de la Carlota is leading the Philippine sugar industry for the current crop year 1999-2000 in terms of cane tonnage ground and raw sugar production. Based on statistics from the Sugar Regulatory Administration. CAC a publicly listed corporation has produced 2,054,120 bags of raw sugar from 1,181,224 tons of cane milled as of February 13 for the 20 weeks it has been in operation since the start of the current season. Carlota's sugar output is the highest in the industry. accounting for 11 percent of total production. The country posted aggregate cane tonnage of 11,257,358 tons and raw sugar output of 18,677,840 bags as of the same period. "The Company benefited from the increased capacity and improved manufacturing efficiencies of our milling factory in Negros Occidental.'' CAC president Miguel A. Gaspar said. It installed a state-of-the-art 200 tons per day John Thompson boiler, the driver of the sugar milling operations, and modernized its other production equipment. Compared to production in the same period last crop year, Carlota increased its cane milled by 115,230 tons, or 10 percent. Raw sugar output rose 36 percent or 561,145 bags over that of the previous crop year. Central Azucarera Don Pedro, also a publicly listed corporation, owns 73 percent of Carlota. CAC's and CADP's cane crushing capacities are just about equal each ranging from 10,000 tons cane per day to 12,000 tons cane per day. Together, with total combined milling capacity ranging from 20,000 to 24,000 tons cane per day, they account for the largest production capacity in the country. CADP was the country's largest refined sugar producer in the last crop year 1998-99. LibLex As general manager of CAC CADP initiated a capital investment program that has greatly improved Carlota's performance. A total of P650 million has been spent since 1997 of the projected P1 billion expansion and rehabilitation program targeted to further increase capacity and efficiency. CAC posted revenue growth of 12% in crop year 1998-99 to nearly P700 million over the previous year, despite the adverse economic situation prevailing at the time. Operating income grew to P191 million. which enabled it to post net income of P9 million during-the year.