Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — Q1 2019 Earnings Presentation
83 slides from Gt Capital's earnings presentation, July 2019
Slide 1: First Quarter 2019 Financial and Operating Highlights
PON GT CAPITAL HOLDINGS INCORPORATED FIRST QUARTER 2019 FINANCIAL AND OPERATING HIGHLIGHTS ~ BUILDING ON - NEW OPPORTUNITIES , a Sees a —- apse INVESTOR PRESENTATI eg iS ey lent June-July 2019 " Pa es
Slide 2: Notice/Disclaimer
Notice/Disclaimer The information in this presentation has been prepared by GT Capital Holdings, Inc. (the "Company"). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and represent that you are a pers
Slide 3: Table of Contents
Table of Contents Strategic Direction 6 GT Capital Corporate Profile 8 History of Strategic Partnerships 9 GT Capital Component Companies 10 Current Corporate/Ownership Structure 11 Group Consolidated Financial Highlights 12 Net Income Contribution 13 Metropolitan Bank and Trust Company (MBT) 15 Toy
Slide 4: Strong Group-wide Footprint
Strong Group-wide Footprint over 3.8M ₱2.4T Million 10,000 953 52 Trillion 20,000 individual institutional and branches remittance employees total resources depositors SME clients nationwide centers Group-wide 60,000 over 1.6M 69 80% 3,108 vehicles built annually Toyota units sold in dealerships Pay
Slide 5: Strong Group-wide Footprint
Strong Group-wide Footprint 31,687 12 global strategic 24.3 group-wide employees including contractual partners Million customers & agency 1,525 Branches Across an e nationwide spectrum lients Present in 9,893 Institutional 68 High net worth Upper middle-income Small and medium enterprises active Mi
Slide 6: Strategic Direction
Strategic Direction New Sectors Exploring underpenetrated Synergy sectors with new strategic partners Cross-selling within the GT Capital Group Expansion in Existing Sectors Extending the value chain of existing businesses 6
Slide 7: Strategic Direction
Strategic Direction Cross-selling New Sectors within the GT Capital Group Synergy Exploring underpenetrated sectors with new strategic partners • Toyota unit sales through • New strategic partners MBT/PSBank auto loans/TFS • Infrastructure (MPIC) lease-to-own package • Logistics (for Toyota) • Feder
Slide 8: Corporate Profile
Corporate Profile GT Capital directly owns market-dominant businesses in underpenetrated sectors of Strategic Partnerships with the Philippine economy, namely banking; Best-of-Class Brands automotive assembly, importation, dealership, and financing; infrastructure; property development; and life- an
Slide 9: Trusted by partners from Japan and around the world
Trusted by partners from Japan and around the world Toyota Manila Bay Corp ORIX Corporation ORIX Corporation and is established with Global Business Power is partners with Federal Federal Land enter into Toyota Financial Services (TFS) Toyota Motor Philippines is established Mitsui & Co. Ltd as Sumi
Slide 10: GT Capital Component Companies
GT Capital Component Companies Best Managed Bank in the Philippines 1 for 2018 according to The Asian Banker 1 Most dominant automotive company Owns MERALCO, the Philippines’ largest power 1 distribution in the Philippines, maintaining 35% to company 40% market share from 2015-2019 2 Second largest
Slide 11: Current Corporate Ownership Structure
Current Corporate Ownership Structure Grand Titan Public Float 56.19% 43.81% Auto Assembly and Importation, Property Infrastructure Motorcycle Banking Dealership, and Financing Development Insurance and Utilities Financing 40.0%5 21.0% 36.0% 51.0% 25.3%2,3 15.55%6 20%8 26.47 %1 36.36%9 80% 10
Slide 12: Financial Highlights 1Q 2019
Financial Highlights 1Q 2019 year-on-year (vs. 1Q18) Php3.42 billion Consolidated Net Income -8% Php3.74 billion 1Q 2018 Php3.47 billion Core Net Income (FV adjustments for PCFI, MPI, TMBC, TMP) -8% Php3.76 billion 1Q 2018 Php47.0 billion Revenues +3% Php45.5 billion 1Q 2018 Auto Sales (TMP – Php33.
Slide 13: GT Capital Net Income Contribution By Component Company
GT Capital Net Income Contribution By Component Company AXA TFSPH TMBC PCFI TFSPH TMBC PCFI 3.1% 1.7% 0.5% AXA 2.7% 1.5% 0.4% 2.2% 4.5% TMP TMP MPIC 26.8% MPIC 20.1% Fed 13.2% 12.1% Fed Land Land 5.1% 4.2% MBT MBT 47.1% 54.0% MBT + TMP = 73.9% MBT + TMP = 74.1% 1Q 2018 1Q 2019 13
Slide 14: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance Infrastructure 4% Infrastructure 5% 13% 12% Automotive 29% Automotive Property 22% Property 7% 7% Banking Banking 47% 54% 1Q 2018 1Q 2019 14
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Slide 16: Banking Sector Highlights
Banking Sector Highlights Deposit accounts per 1,000 individuals ASEAN Members and Observers, 2018 2,299 Deposit accounts per 1,000 2,227 1,880 1,610 1,564 individuals 955 634 591 317 225 Source: International Monetary Fund Access to Financial Services Survey 16
Slide 17: 1Q 2019 Peer Banks Highlights
1Q 2019 Peer Banks Highlights MBT delivered NIM expansion and prudent operational expenditures NII less Opex (Php Billion) Operating Expenses (Php Billion) 4.6 +22% +10% +24% 4.0 28.3 13.5 12.1 -0.6 MBT BPI BDO BDO MBT BPI Cost-to-Income Ratio (In %) Net Interest Margin – NIMs (%) 66.5 55.6 +9bps 53
Slide 18: 1Q 2019 Peer Banks Highlights
1Q 2019 Peer Banks Highlights Total Equity (Php Billion) Total CAR and CET1 (%) +35% CAR CET1 Minimum CET1 338 289 257 17.4% 16.6% 15.7% 15.0% 14.0% 12.4% BDO MBT BPI 11% Total Loans* (Php Billion) +9.9% industry growth +8% +9% +12% 2,010 1,360 1,350 BDO MBT BPI MBT BDO BPI *excludes IBL and spurra
Slide 19: Metrobank Financial Highlights
Metrobank Financial Highlights Operating Income Net Interest Income +12% (Php18.1B or 74% of Operating Income) +11% ₋ Loan portfolio +9% at Php1.36T o Commercial +9% in Php Billion 6.0 6.5 Non-Interest Income o Consumer +5% 16.1 18.1 +8% o NIMs at 3.84% Net Int. Income Non-Interest income +8
Slide 20: Key Performance Drivers
Key Performance Drivers Loans and Receivables (Php Billion) Total Loan Portfolio Breakdown +9% Consumer 1,360 24% Commercial 76% Consumer Loan Portfolio Breakdown 1,253 Credit Cards, Others 22% 33% Home Auto 45% 1Q 2018 1Q 2019 Source: 17Q Report as of 31 March 2019 20
Slide 21: Investment Case
Investment Case Solid net income growth Loan growth remains healthy Sustained NIM expansion Expanding recurring revenue base Stable asset quality
Slide 22: GT Capital Holdings Incorporated
GT CAPITAL HOLDINGS INCORPORATED
Slide 23: Comprehensive Auto Resurgence Strategy (CARS) Incentives
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Incentives 23
Slide 24: CARS Rationale and Regulations
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Rationale and Regulations • Manufacturing of model, body shell, large plastic assemblies, common parts, OEM parts, and shared testing facility are covered • Php9.0 billion maximum incentive in the for
Slide 25: CARS Program Updates
CARS Program Updates Comprehensive Automotive Resurgence Strategy Php5.24 B Php1.3 Aggregate Total Toyota CARS Project Investment Plan as of Sept 2017 billion Investments Out-house parts projects BOI-registered auto parts partners Php1.03 B Php4.21 B Php520.0 Vehicle production Parts localization mi
Slide 26: CARS Program Updates: In-house parts projects
CARS Program Updates In-house parts projects approved on 7 June 2017 Press parts (Body shell) Large plastic parts manufacturing Stamping die storage expansion at Press Shop • Machine installation/ trial 1H 2018 24 Nov 2017 – Inauguration of TMP’s new • Investment plan Php1.29 billion plastic molding
Slide 27: Factors in relation to industry car sales
Factors in relation to industry car sales Historically, gasoline prices have not had a significant correlation with Philippine industry car sales. More significant contributors to auto sales would be the affordability of car loan interest rates and the increase in Filipinos’ disposable incomes. 27
Slide 28: Philippines enjoying benefits of economic motorization
The Philippines is now enjoying the benefits of economic “motorization” amid low vehicle penetration Industry car sales vs. PH GDP per capita Motor vehicle penetration in ASEAN Units USD Vehicles per 1,000 individuals, 2017 500000 4000 Vehicles per 1000 450000 individuals 3500 400000 1,232 3000 3500
Slide 29: 2018 Global Toyota Sales Performance Rankings
2018 Global Toyota Sales Performance Rankings 2018 1 Market United States Total 9 2,426,795 2 Japan 1,564,309 3 P.R. China 1,474,543 Still Top 4 Indonesia 357,390 5 Thailand 315,113 6 Canada 231,646 7 Australia 225,880 Despite sales compression 8 Brazil 202,843 9 Philippines 153,004 2017 10 11 India
Slide 30: TMP's Road to Recovery: Retail auto unit sales volume
TMP’S ROAD TO RECOVERY Retail auto unit sales volume As of June 2019 YTD In Units Industry factors: • Signs of recovery in volume from 73,454 Toyota seasonally high 4Q 73,136 ▲< % 1 • Flat YoY due to easing inflation and rebound in consumer sentiment Y-o-Y TMP lower-than-industry in May due to: 6M 2
Slide 31: Retail auto unit sales volume, June 2019
Retail auto unit sales volume Month-to-date June 2019 In Units Toyota 14,568 Toyota 11,403 ▲ 28% Y-o-Y Jun-18 Toyota Jun-19 Market Share, Month of May 2019 [industry not yet available for June] 41% No.1 No.1 No.1 Passenger Commercial Overall Car Sales Vehicle Sales Sales 15% 11% 8% 6% 5% 4% 4% 3% 2%
Slide 32: Monthly Market Share
Monthly Market Share Highest Market Share in May 2019 Toyota Market Share (Standalone Month) 37.6% 39.4% 40.8% 35.8% 30.3% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Toyota Market Share (Year-to-date) 37.6% 36.8% 35.7% 34.6% 33.3% 1M19 2M19 3M19 4M19 5M19 32
Slide 33: Signs of recovery
Signs of recovery Industry vehicle sales grew YoY for the first time in 12-mos. last Feb. 2019 due to easing inflation and rebound in consumer sentiment Industry Vehicle Sales (Absolute YoY Change) vs. Inflation (In %) and BSP Consumer Expectations Survey (In %) 15,000 10,000 13.1 6.7 5,000 0 -0.5 -
Slide 34: Seasonality
Seasonality Seasonality Volume Volume to to improve improve due due to to higher higher 2Q 2Q to to 4Q 4Q seasonality seasonality TMP TMP historically historically below below industry industry in in 1Q 1Q due due to to competitors competitors fiscal fiscal year-end year-end Seasonality Seasonality
Slide 35: Base effect
Base effect Toyota retail volume in Jan. 2018 had spill over from Dec. 2017 front loading Jan 2018. TMP Retail Sales Units - 2018 spill over Average Share of Monthly Sales to Total Sales 9.8% 8.6% 8.4% 9.4% 8.0% 8.3% 9.2% 9.5% 7.5% 7.5% 7.4% 6.4% January February March April May June July August Sep
Slide 36: Hiace Run-out
Hiace Run-out (PH Largest market in the world at 17,000 units/annum) Contributed 11% of monthly sales in 2018 Hiace Retail Sales (In Units) 1,789 1,609 1,570 1,524 1,561 1,530 1496 1,370 1,497 1,172 1,410 1,180 Hiace run-out 822 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 F
Slide 37: Overall Market Share
Toyota achieved 37% market share in 5M19 Overall Market Share As of May 2019 YTD 37% 24,243 No.1 Passenger No.1 Commercial No.1 Overall Unit difference Car Sales Vehicle Sales Sales 16% 11% 10% 6% 5% 5% 4% Mitsubishi Nissan 3% Hyundai Ford 1% Honda Suzuki 0.7% 0.7% Isuzu Others 0.7% Kia Subaru Mazda
Slide 38: Auto Industry Market Share
Toyota continues to be the Philippines‟ dominant auto company Auto Industry Market Share As of May 2019 YTD Passenger Car Commercial Vehicle 41% 31.3% of total market 34.7% of Toyota sales 35% 68.7% of total market 65.3% of Toyota sales 16% 17% 16% 14% 10% 9% 7% 6% 5% 5% 4% 4% 3% 3%0.9% 0.7% 1% 1% 0
Slide 39: New model launch update
New model launch update Dominant in respective segments May 2018 45% segment share since launch July 2018 34% segment share since launch Dec. 2018 76% segment share since launch Feb. 2019 55% segment share since launch
Slide 40: TMP Financial Highlights (YoY)
TMP Financial Highlights (YoY) Revenues WSV -4% 32,394 units; RSV -3% vs. 0% Industry +0.2 o Hiace: Runout Feb 2019 33.7 33.8 % o Fortuner & Vios: increased in Php Billion network discount o Avanza: Runout March 2019 Sales volume: 1Q 2018 1Q 2019 o PCs: Vios -6%, Wigo -14% Net Income ATP o CVs:
Slide 41: New model launches
TOYOTA MOVING FORWARD New model launches February 2019 Php1.442-2.686M | FY’18: 11.0% of sales January 2019 Php1.638 – 2.203M | FY’18: 0.3% of sales Introduced May 2018 July 2018 Dec 2018 41 Php958k – 1.090M Php659k – 1.110M Php1.806 – 2.007M FY’18: 7.0% of sales FY’18: 16.8% of sales FY’18: 0.1% of
Slide 42: Toyota Dealership Expansion
Toyota Dealership Expansion Target by end of year 2014 2015 2016 2017 2018 2019 2020E 2021E Number of Dealers 45 49 52 61 69 71 79 83 March 2019 July 2019 DARAGA Albay Valenzuela NEAR BULACAN 71 Dealerships as of July 2019 Upcoming: Cebu (renovation), Lucena (Quezon), Sucat (Paranaque), Antipolo (Ri
Slide 43: Toyota Brand Attributes
Toyota Brand Attributes Globally trusted brand QUALITY, DURABILITY, RELIABILITY (QDR) Dealership network offering full range of services Availability of original parts, supplies and service Corporate policy of High resale value (up to 50% manufacturing original of original selling price for 5 parts
Slide 44: Price Comparable by Category (PHP)
Price Comparable by Category in Million Philippine Peso (PHP) In Million PHP Toyota Hyundai Honda Mitsubishi Model Camry Accord Price 1.821 2.022 1.938 Model Corolla Altis Elantra Civic Price 0.961 1.492 0.970 1.065 1.115 1.608 Model Vios Accent (Sedan) City Mirage G4 Price 0.662 1.113 0.790 1.038 0
Slide 45: Price Comparable by Category (USD)
Price Comparable by Category in United States Dollars (USD) Model Camry Accord Price 35,497 39,415 37,778 Model Corolla Altis Elantra Civic Price 18,733 29,084 18,908 20,760 21,735 31,345 Model Vios Accent (Sedan) City Mirage G4 Price 12,904 21,696 15,400 20,234 16,140 20,819 14,327 16,355 Model Inn
Slide 46: Grab drivers are now in better hands with Toyota
Grab drivers are now in better hands with Toyota Deal signed among TMP, TFS, Grab PH For existing Grab partners • Special loan packages • Maintenance Packages • Trade-in discounts • Fuel rebates • Free dash cam • Available in all Toyota dealerships w/in NCR Signed 24 Oct 2018 Effective 05 Nov 2018 4
Slide 47: GT Capital at Federal Land
GT CAPITAL AT HOLDINGS INCORPORATED
Slide 48: Residential Supply and Demand
RESIDENTIAL SUPPLY AND DEMAND Condominium demand continues to exceed supply; Unsold inventory expected to be steady from 2019 to 2021 Metro Manila Residential Condominium 60,000 Supply, Demand and Unsold Inventory 50,000 Forecasted Supply 40,000 34,067 34,900 Units 30,000 21,601 20,000 10,000 0 2014
Slide 49: Office Supply and Demand
OFFICE SUPPLY AND DEMAND 1Q19 office demand exceeded supply; Office supply and vacancy expected to decline by 2020 Metro Manila Office Supply (In SQM) vs. Average Vacancy Rate (In %) 1.4 6.0% 6.0% 6.0% 5.5% 1.2 5.0% 5.0% 4.0% 3.5% 3.0% GLA in Mn SQM 1 0.8 0.6 0.4 0.2 0 2013 2014 2015 2016 2017 2018
Slide 50: Federal Land Current Projects
Federal Land Current Projects 30 On-going Projects 8 Different Locations • 7 launched in 2011 • 11 launched in 2012 • 6 cities within Metro Manila • 5 launched in 2013 • 2 cities outside Metro Manila • 4 launched in 2014 Recurring Income at 9% of total revenue • 3 launched in 2015 • 4 launched in 20
Slide 51: Project Launches
Project Launches Two projects launched in 1Q 2019; Two more planned Number of units are all estimates and subject to change The Estate AYALA AVENUE Feb 2019 188 units, Php18.0B (JV 50%) Mi Casa Tower 1 BAY AREA, PASAY March 2019 158 units, Php3.8B 51
Slide 52: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues Reservation Sales Reservation - Sales+20% to Php4.3B Amount: +20% from Php3.6B to Php4.3B Real Estate fromSales -12% units to to 1.715 Php1.8B due -5% - Inventory +118% 786 units 2.6 to lower Real POC estate sales (due -12% to delayed from Php2.0 to
Slide 53: Gearing Up for Future Growth
GEARING UP FOR FUTURE GROWTH Master-planned townships continue to grow and are nearing completion Grand Central Park Bonifacio Metro Park Bay Area 10 hectares Madison Park West 36 hectares Six Senses Park Avenue Residences (6) Grand Hyatt Park West Manila-Metrobank Central Park West Palm Beach West
Slide 54: Land Bank Location
Land Bank Location Land Bank Location (in hectares) Macapagal Metro Manila Metro Manila Quezon City Kalaw, Manila Bay Area, Pasay 14.8 Marikina Ermita, Manila Fort Bonifacio Marikina 8.8 Mandaluyong Mandaluyong 5.3 Makati Fort Bonifacio 1.9 Binan Laguna Binondo Manila Kalaw, Manila 0.6 Paranaque 0.3
Slide 55: PRO-FRIENDS Share Redemption May 2019
PRO-FRIENDS Share Redemption 10 May 2019 55
Slide 56: Exchange of Pro-Friends Shares for Land
Exchange of Pro-Friends Shares for Land Agreement signed on 10 May 2019 (Subject to regulatory approvals) Redemption 702 hectares of 64,530,712 of selected assets Series A Preferred Shares in PCFI Approximately (51% of PCFI) Php20 Billion 56
Slide 57: Investment History 2015 to 2018
Investment History 2015 to 2018 • GT Capital invested Php16.0 billion for a 51.0% direct equity stake in Pro-Friends • Tranche 1: August 2015, Php7.24B for 22.68% • Tranche 2: June 2016, Php8.76B for 28.3% • Investment rationale: attain foothold in horizontal, affordable, low-cost housing sector 57
Slide 58: PRO-FRIENDS Financial Highlights
PRO-FRIENDS Financial Highlights Revenues Ave. Bank Takeout from Php655M to Php853M 1.7 2.1 2.1 +20% Real estate sales +20% from Php1.6B to Php1.9B in Php Billion 1.7 0.2 0.9 0.2 Rental income +76% to Php23M due to 1.9 9.5 1.5 Other Income GLA increase, additional tenants, & rate 6.3 RES e
Slide 59: Target Completion Dates of Infrastructure Projects
TARGET COMPLETION DATES: 6 NLEX-SLEX Connector Road CAVITEX - 2021 CAVITEX C-5 South Link - 2021 Skyway Extension CALAX - 2022 NAIA Expressway Entertainment City 4 2 Cavitex CAVITEX C-5 South Link LRT-1 1 CALAX 3 Extension Alabang Ongoing Daang-Hari MCX infrastructure projects may EPZA CALAX Exit 1
Slide 60: Rising property values from infra and property developments
Rising property values from infra & other NLEX-SLEX Connector Road property developments Sale to McDonald‟s NAIA Expressway Skyway Extension Php64.0 million 2,027 sq. m @ Entertainment City Php31,579/sq. m February 2019 Sale to Toyota Manila Bay Group to build Toyota Imus dealership CAVITEX CAVITEX
Slide 61: Valuation Methodology
Valuation Methodology • 702 hectares of Selected Assets appraised by Cuervo Appraisers • Reyes Tacandong issued fairness opinion on Enterprise Value of PCFI using various methodologies • Values converge at Php20 Billion for 51% 61
Slide 62: Redemption Rationale
Redemption Rationale • The selected 702 hectares are best suited for master-planned, mixed- use developments o Use for affordable homes no longer optimal and best use of land bank • Land values no longer suitable for affordable housing • Spin-off inevitable • Partners to focus on areas of expertise
Slide 63: CALABARZON and Cavite Demographics
Redemption of PRO-FRIENDS Shares CALABARZON and Cavite Demographics CALABARZON CAVITE 21% 2nd largest 35 Source of OFWs contributor to GDP economic/industrial Highest in the Philippines only Metro Manila larger estates $2,058 37.2% 15 Contribution to accredited PEZA zones GDP per capita manufacturin
Slide 64: Infrastructure and IT-BPAP Roadmap
Infrastructure and IT-BPAP Roadmap IT-BPM labor workforce outside Metro Manila is expected to grow 10% annually Cumulative IT-BPM Full-Time Employees (FTEs) and Infrastructure Project Completions CAVITEX-C5 South Link CALAX Completion Completion 1.24 1.30 1.40 1.16 FTEs in Million 1.20 1.01 1.09 1.0
Slide 65: Office Supply Outside Metro Manila
Office Supply Outside Metro Manila Cavite expected to have the second highest office supply pipeline in the coming years, due to infra developments 2018 to 2025 Expected Office Supply Pipeline in Luzon (excluding Metro Manila) 250,000 Gross Leasable Area (In SQM) 200,000 Estimated supply: 17,625 sqm
Slide 66: Return on GT Capital's Investment
Return on GT Capital‟s Investment Return on Investment • GT Capital Net Income Initial Php16.0 Contribution Investment Billion from PRO-FRIENDS versus CAGR +18% Approximate Value of Php20.0 ―Selected Assets‖ Billion • Return on investment of Dividends from Php0.9 PRO-FRIENDS over 3 yrs Billion 31% T
Slide 67: GT Capital Holdings Incorporated
GT CAPITAL S INCORPORATED
Slide 68: Insurance penetration still underpenetrated
Still an underpenetrated sector Insurance Penetration as a % of GDP 21.31 Philippines Life: 1.24% 17.94 Non-Life: 0.55% Total: 1.79% 11.56 8.60 8.22 Non-Life Life 5.28 4.76 4.57 3.69 2.36 2.10 1.79 Source: SwissRe global reinsurance company, October 2018 68
Slide 69: Philippines one of the fastest-growing insurance markets
The Philippines is one of the fastest- growing insurance markets in the world Projected 10-year CAGRs of industry-wide life insurance premiums by country Top 15 fastest growing markets, 2017-2025 % CAGR UAE 10 Indonesia 9.2 Philippines Philippines 9.1% China 8.8 Brazil 8.1 Colombia 7.2 Mexico 6.9 Th
Slide 70: Insurance Industry Updates
Insurance Industry Updates Premium income hit record in 1Q18, due to strength in equities market 1Q19 premiums are coming from a high base Life Insurance Premiums vs. Philippine Stock Exchange Index (PSEi) Performance 8,558 Industry Premium Income - Life 8,600 61.8 63.0 Single Premium 8,400 Life: 42
Slide 71: Insurance Industry Updates
Insurance Industry Updates The Philippine insurance industry continues to be an underpenetrated high-growth sector Life and General Premium Income (In Php Bn) 278.0 11% 199.3 217.2 222.4 248.4 189.8 CAGR 147.1 Increase in premiums of Php24 billion per annum 2012 2013 2014 2015 2016 2017 2018 Life an
Slide 72: Insurance Industry Updates
Insurance Industry Updates As of December 2018 Total Premiums Total Equity (Net Worth) +12% +5 % 278 337 248 320 49 45 82 in Php Billion +9% 87 -6% in Php Billion 203 +13% 229 202 +9% 220 FY 2017 FY 2018 FY 2017 FY 2018 Legend Life insurance sector General/Non-Life insurance sector Source: Insurance
Slide 73: Life Insurance Ranking
Life Insurance Ranking Premium Income, December 2018 Market Share 16% 13% 10% 10% 8% 7% 6% 5% 4% 4% Source: Insurance Commission, 2019 73
Slide 74: Strong synergy and growth
Strong synergy and growth • Persistency Ratio: 85.3% • Exclusive financial advisors: 5,272 • Total bancassurance (Metrobank and PSBank) branches: 957 • AXA branches nationwide 55 Assets Under Management +11% 104 94 In Billion PHP 1Q 2018 1Q 2019 74
Slide 75: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium LIFE New Business (APE) -14% from Php2.0 to 10.94 -32% Php1.8B due to a high base in 2018; continued growth in Protection & Health line in Php Billion 7.43 o RP +9% Traditional +46% (Health & Protection) 9.50 6.04 AXA -36% Unit-linked +2% 1.
Slide 76: Metro Pacific Investments
PACIFIC Rs INVESTMENTS GT CAPIT, HOLoINes Incoa=on MMA)
Slide 77: Strategic Partnership Agreement between GT Capital and Metro Pacific
Strategic Partnership Agreement between GT Capital (GTCAP) and Metro Pacific (MPI) Two transactions signed on 27 May 2016 Acquisition of 15.55% of Metro Pacific Sale of 56% of Global Business Power Investments Corp. (MPI) for Php29.9 Corp. (GBPC) to Beacon PowerGen billion at Php6.10 per share Holdi
Slide 78: Rationale & Significant Influence
Rationale & Significant Influence Rationale Accounting Criteria • Diversification of power for “Significant Influence” investments in the Visayas into the • Two board seats high-growth infrastructure and • Joint selection of an Independent utilities sectors Director • Many of MPIC’s ongoing PPP • Re
Slide 79: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income (Core) Power +8% o Meralco - Core NI Php5.6B +14% in Php Billion 0.1 0.1 Logistics / Indra 0.2 0.2 o GBPC - Core NI Php0.4B -44% LRMC/AFPI 2.4 2.7 1.1 1.1 Hospitals Toll Roads - Core NI Php1.1B +1% Meralco/Beacon/GBPC 0.8 0.9 (0.1)
Slide 80: Philippine Administration Agenda
Philippine Administration Agenda Continue stable Increase PH’s Relax constitutional Increase macroeconomic competitiveness restrictions on infrastructure policies and the ease of foreign ownership, spending to 9% doing business except for land of GDP by 2022 Boost rural Ensure security Develop human
Slide 81: Macroeconomic Indicators
Macroeconomic Indicators Inflation Foreign direct investments 3.4% USD1.9 billion 1Q 2019 as of June 2019 Gross international reserves Population USD85.0 billion 107.4 million 7.5 months of import cover External Debt-to-GDP 24.0% as of 1Q 2019 Personal remittances of 11 million OFWs USD7.3Bln First
Slide 82: Macroeconomic Indicators
Macroeconomic Indicators First Quarter 2019 GDP Growth Components of GDP (%) As of 1Q 2019 5.6% Still the fastest 19.3% Consumption among the 11.2% 2.8% ASEAN-5 Government 69.5% 4.5% Investments 1.2% 5.1% Household Consumption +6% In USD Billion Year-on-Year GDP Per Capita in USD, nominal 114.6 115.
Slide 83: Awards and recognition
Rated is a Company Triple Arrow One of the Top Philippine Companies for 2018 ASEAN Corporate Governance Scorecard Best Managed Bank in the Philippines Chairman Arthur Ty CEO Leadership Achievement Award 83