First Pacific Co. Ltd. · HKEX:142
First Pacific — H1 2020 Earnings Presentation
37 slides from First Pacific's earnings presentation, Aug 27, 2020
Slide 1: First-Half 2020 Financial and Operational Results
Investor Presentation First-Half 2020 Financial and Operational Results HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 27 August 2020. All rights reserved. inAsia
Slide 2: Consumer Foods, Infrastructure, Natural Resources, Telecommunications
Consumer Foods Infrastructure Natural Resources Telecommunications First Pacific owns 50.1% of First Pacific owns 42.2% of First Pacific owns 31.2% of First Pacific owns 25.6% of Indofood and has an MPIC and has economic Philex and Two Rivers, a PLDT which in turn owns economic interest of 40.3% int
Slide 3: Senior Management of First Pacific
Senior Management of First Pacific Joseph H.P. Ng Chris H. Young Manuel V. Pangilinan John W. Ryan Ray C. Espinosa Associate Director Executive Director & CFO Managing Director & CEO Associate Director Associate Director Richard P.C. Chan Peter T.H. Lin Stanley H. Yang Marilyn A. Victorico P. Vargas
Slide 4: Covid-19 Response
Covid-19 Response First Pacific Has Stress-Tested its Liquidity Indofood Is Gearing up to Help Those in Need o The early months of the Covid-19 pandemic have coincided o In a practice it has followed for many years when with greater demand for many of the products and Indonesia faces natural disaste
Slide 5: Renewed Focus on Core Assets
Renewed Focus on Core Assets Core Assets Are Engines of Growth Diverse Emerging ASEAN Investments o First Pacific’s key investments are based in the fast- o Our Hong Kong-based investment management and growing economies of Southeast Asia, a region we know holding company has developed three core as
Slide 6: Gross Asset Value of $4.63 Billion
Gross Asset Value of $4.63 Billion Objectives Roxas Holdings o Unlock value, enhance cash flows to deliver $21 mln (0.4%) dividend/distribution returns, grow share price, and Philex finance further investment in value-enhancing Group $316 businesses, taking into consideration all relevant criteria,
Slide 7: $27.0 Bln of Major Assets Represented in Holdings
$27.0 Bln of Major Assets Represented in Holdings Philex Group $551 Plant Diversified Investments, Strong Returns ation o Balanced weighting of mature and growth s&S investments ugar o Balanced weighting of different sectors mln ICBP $1.18 o 16 years of growth: Gross Asset Value PLDT grew at a compo
Slide 8: Diversified Investments Prove Resilient to Covid-19
Diversified Investments Prove Resilient to Covid-19 Recurring Profit Rises 7% on Indofood, PLDT, Cost Cuts 1H 2020 Recurring Profit (USD mln) 180 170 o Indofood and PLDT delivered their highest-ever half-year 160 4.2 3.4 0.3 151.7 revenues on lockdown-induced increase in demand 150 142.0 9.3 5.3 o M
Slide 9: Prudent Capital Management, Healthy Balance Sheet
Prudent Capital Management, Healthy Balance Sheet Head Office Balance Sheet as at end-June 2020 Head Office Bond Issues at a Glance o Gross assets $4.7 billion at end-June 2020 o o Gross debt $1.66 billion, gross debt cover 2.9x Net debt $1.31 billion, net debt cover 3.6x Principal Coupon 4.0 x 12.0
Slide 10: Maximum ISS Governance QualityScore
Maximum ISS Governance QualityScore ISS Governance QualityScore of 1; ISS ESG Prime Rating Member of Key ESG Indexes o First Pacific has a best-possible QualityScore rating of 1 from o First Pacific is a founding member of Bloomberg’s Gender Institutional Shareholder Services Equality Index – one of
Slide 11: Indofood: Noodles Business Leads Earnings Growth
Noodles Business Leads Earnings Growth 1H 2020 Financial Highlights Net Sales & Core Income (USD mln) 6,000 o Net sales rose 2% to IDR39.4 trillion vs. IDR38.6 trillion on 4% sales 5,004 5,237 5,136 5,414 growth at Consumer Branded Products unit and stronger sales at 5,000 the Distribution and Agrib
Slide 12: ICBP: Earnings Surge on Highest-Ever Margins
Earnings Surge on Highest-Ever Margins 1H 2020 Financial Highlights Net Sales & Core Income (USD mln) 3,500 o Net sales rose 4% in Rupiah terms to IDR23.0 trillion vs. 2,990 3,000 IDR22.1 trillion on growth led by Noodles and Food 2,580 2,657 2,688 Seasonings 2,500 o EBITDA rose 21% to IDR5.38 trill
Slide 13: Pinehill Joins the First Pacific Group
Pinehill Joins the First Pacific Group Noodles Business Is the Driver of Contribution Growth o Noodles contributed about 75% of EBIT at ICBP and 62% at Indofood in the first half of 2020 o Noodles contributed 60% of annual sales growth on average 2010-2019 o Pinehill Group noodle sales will immediat
Slide 14: Pinehill Transforms Indofood Into a Global Food Company
Pinehill Transforms Indofood Into a Global Food Company o The Pinehill Group began a quarter-century ago and is well 2019 pro forma EBIT (USD mln) established in its fast-growing markets and has been 1,000 closely integrated with noodle production plants and 22% 819 processes nearly identical or sim
Slide 15: IndoAgri: Higher Prices Lift Revenues
Higher Prices Lift Revenues 1H 2020 Financial Highlights External Sales & Net Profit/(Loss) (USD mln) 1,400 o Sales rose 6% to IDR6.87 trillion vs. IDR6.50 trillion mainly 1,200 1,091 1,173 984 965 due to higher prices despite the challenges of a market 5.0 x 12.0 1,000 affected by the COVID-19 outb
Slide 16: PLDT: Revenues at Record High, Core Profit Up
Revenues at Record High, Core Profit Up 1H 2020 Financial Highlights Revenues & Core Income (USD mln) 3,500 3,298 3,000 3,129 o Service revenues rose 7% to record high ₱83.5 billion 3,000 2,892 due to an 18% surge in data and broadband revenues, 2,500 partly offset by lower SMS revenues and voice 6.
Slide 17: Data Drives Earnings Growth in All Main Businesses
Data Drives Earnings Growth in All 3 Main Businesses Individual Business Leads Growth on Mobile Data Surge Shareholder Returns Data as a Share of Revenues o 1H 2020 Individual service revenues rose 16% to ₱39.8 billion, now 48% of total first-half revenues 3.1 x 5.4₱64 Core EPS 3.1 x 5.473% Individu
Slide 18: This Company Is a Data Powerhouse
This Company Is a Data Powerhouse PLDT Network Is the Country’s Best, Say Observers Capex Delivers New Lead in Postpaid ARPU o Independent industry observers agree PLDT customer o Capex/service revenues seen at 40-41% in 2020 experience is the best in the Philippines on both mobile and o Focus on LT
Slide 19: MPIC Businesses Overview
Toll Roads Electricity Water Hospitals Rail/Logistics/AFP 29%-100% stakes 46% & 62% stakes* 53%-100% stakes 20% 20%-99% stakes 100% 16 Hospitals Light Rail Manila 5 Primary Care Clinics 36% 35% § Largest healthcare provider in the Philippines 10.5% § Present in all major island groups 56% 14% § Larg
Slide 20: MPIC & Businesses Resilient Amid Pandemic
MPIC & Businesses Resilient Amid Pandemic 1H 2020 Financial Highlights Responses to Enhanced Community Quarantine (ECQ) o Contribution from operating companies fell 31% to ₱7.71 billion o All businesses pass stress test on cash flow under ECQ regime vs. ₱11.2 billion on lower contribution from most
Slide 21: ECQ Puts Brakes on Power Demand Growth
ECQ Puts Brakes on Power Demand Growth 1H 2020 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Income (USD mln) 1,600 o Distribution revenues rose 3% to ₱33.4 billion vs. 1,400 1,278 ₱32.5 billion as lower volumes offset average 1,193 1,183 1,200 1,177 distribution tariff increa
Slide 22: Toll Road Traffic Slumps in ECQ; Water Demand Steady
Toll Road Traffic Slumps in ECQ; Water Demand Steady 1H 2020 Financial Highlights & Outlook: Toll Roads Revenues & Core Income (USD mln) 400 o Revenues fell 31% to ₱6.15 billion vs. ₱8.92 billion on a 350 294 359 sharp fall in traffic late owing to ECQ lockdown 300 250 260 o Core EBITDA fell 40% to
Slide 23: Business Recovery Following Covid-19 Downturn
Business Recovery Following Covid-19 Downturn Meralco Volume (GWh) Maynilad Volume (mln cubic meters) 5,000 48 4,500 47 4,000 46 3,500 45 44 7.0 x 11 7.0 x 11 3,000 43 2,500 42 2,000 41 1,500 1,000 1.3 x 3.8 40 39 13.1 x 3.8 500 38 0 37 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 24: Philex: Swing to Profit on Surging Gold Price
Swing to Profit on Surging Gold Price 1H 2020 Financial Highlights Operating Revenues & Core Income (USD mln) o Operating revenues rose 18% to ₽3.98 billion vs. ₽3.37 billion as 250 215 198 a result of higher volumes of ore milled and improved grades of 200 158 143 gold and copper resulting in highe
Slide 25: Appendix
Appendix Shareholder Information Selected Financial Data 25
Slide 26: Adjusted NAV per Share
Adjusted NAV per Share At At 30 June 31 December 2020 2019 US$ millions Basis Indofood (i) 2,010.8 2,506.2 PLDT (i) 1,386.1 1,077.8 MPIC (i) 982.0 908.7 Philex (i) 121.4 127.5 PXP (i) 74.1 94.8 FP Natural Resources (ii) 21.9 25.5 Head Office - Other assets (iii) 101.2 99.5 - Net debt (1,327.3) (1,33
Slide 27: Contribution and Profit Summary
Contribution and Profit Summary Contribution to Turnover Group profit(i) For the six months ended 30 June 2020 2019 2020 2019 US$ millions Indofood 2,671.4 2,716.9 93.8 80.3 PLDT(ii) - - 62.5 58.3 MPIC 607.5 858.6 44.4 70.0 Philex(ii) - - 2.2 (1.2) FPM Power 253.9 364.0 (1.8) (7.1) FP Natural Resour
Slide 28: Head Office Free Cash Flow
Head Office Free Cash Flow(i) For the six months ended 30 June 2020 2019 US$ millions Cash dividend and fee income 61.1 68.4 Head Office overhead expense (6.2) (9.2) Net cash interest expense (28.6) (37.5) Tax paid (0.2) (0.3) Net Cash Inflow from Operating Activities 26.1 21.4 Net Investments(ii) (
Slide 29: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 30 June 2020 At 31 December 2019 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,308.6 1,641.1 0.80x 1,330.6 1,740.0 0.76x Indofood 732.7 4,009.1 0.18x 664.2 3,886.0 0.17x MPIC 3,756.4 5,0
Slide 30: Headline Group Data 1H20 & End-June
Headline Group Data 1H20 & End-June (USD mln) Core Gross Net Cash Gearing Interest Total Turnover EBITDA Profit/(Loss) Debt Debt/(Cash) On Hand (times) Cover Equity PLDT 1,715.8 853.9 256.8 4,722.1 3,803.5 918.6 1.59 5.9 2,392.8 MPIC(i) 607.5 313.7 105.6 5,151.6 3,756.4 1,395.2 0.75 2.8 5,002.0 MPIC
Slide 31: Proven Track Record in the Capital Markets
Proven Track Record in the Capital Markets Over a Decade of Strong Market Performance $152 mln bond tender $215 mln Bond ($69 mln of 2010 7-yr) Redemption o A total of five bond issuances totaling $1.78 billion ($83 mln of 2010 10-yr) (2012 7-yr) in the decade since 2010 o Two secured bond offerings
Slide 32: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Investor Mln Shares % Stake 1 Brandes Investment Partners 375 8.6% 2 GIC Asset Management 163 3.8% 3 Lazard Asset Management 152 3.5% 4 Seafarer Capital Partners 97 2.2% All 5 Dimensional Fund Advisors 70 1.6% Others 6 Letko, Brosseau & Ass
Slide 33: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Turnover Directors’ Total Interest* Shares Options Anthoni Salim NED, Chairman 1,925,474,957 - Not Stated Manuel Pangilinan ED, CEO 70,493,078 - 27% Low Chris Young ED, CFO 6.5 x 16 8,385,189 - 6.5 x 6.5 62% Very Active 0.2% Tedy Djuhar NED -
Slide 34: Group Structure and Economic Interests
FPC’s Economic Interest 42.2% 25.6% 25.6% (%) 19 .1% .2% 50 % Pinehill .3 * 40 26 .3 % % .3 42 .2% 40 22.3% 35.7% 18.9% 29.7% 42.1% 17.7% 12 % .5% 3 2.2 50 % .8 .8 % 41 42.4% 46 .2% 8.4% 15.1% 34 *Purchase expected to complete by end-August 2020.
Slide 35: Notes
Notes 35
Slide 36: Important Notice
IMPORTANT NOTICE This presentation is provided for information purposes only. It does not constitute an offer or invitation to purchase or subscribe for any securities of First Pacific or any of its subsidiaries or other companies it is invested in, and no part of this presentation shall form the ba
Slide 37: Contact Us
Contact Us First Pacific Company Limited (Incorporated with limited liability under the laws of Bermuda) 24th Floor, Two Exchange Square 8 Connaught Place, Central Hong Kong Tel: +852 2842 4374 Email us at info@firstpacific.com firstpacific.com 37
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