First Pacific Co. Ltd. · HKEX:142
First Pacific — First Pacific Co Ord — H1 2024 Earnings Presentation
47 slides from First Pacific's earnings presentation, Aug 23, 2024
Slide 1: Investor Presentation: First-Half 2024 Financial & Operational Results
Investor Presentation First-Half 2024 Financial & Operational Results HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 23 August 2024. All rights reserved. inAsia
Slide 2: Consumer Food Products, Infrastructure, Telecommunications, Natural Resources
Consumer Food Infrastructure Telecommunications Natural Resources Products First Pacific has an First Pacific holds an First Pacific holds an First Pacific has an economic interest of economic interest of economic interest of economic interest of 50.1% in Indofood, 46.3% in MPIC, 22.0% 25.6% in PLDT
Slide 3: Gross Asset Value of $4.9 Billion
Gross Asset Value of $4.9 Billion 1 Diversified Investments, Strong Returns Philex rs & othe o Balanced weighting of mature and growth $270 investments ml n o Balanced weighting of different sectors (5%) o Investment geography limited to the fast- PLDT2 13 cm growing markets of emerging Asian econom
Slide 4: 2024 First-Half Earnings Continue Record Run
2024 First-Half Earnings Continue Record Run 1H 2024 Recurring Profit Rises 13% to Record 400 Change in Recurring Profit (USD mln) o Turnover declined 8% to $4,995.1 million on lower 350 22.3 6.8 1.4 339.4 5.0 x 11.0 revenue at PacificLight Power (PLP) 300.8 30.4 300 o Contribution from operations r
Slide 5: Investment Grade Ratings & ICR of 4.3x at end-June
Investment Grade Ratings & ICR of 4.3x at end-June Head Office Borrowings at end-June 2024 (USD mln) Record High Dividend Income & Investment Grade 500 o Record high dividend income of $324 million in 2023 420 400 followed by strong first half of 2024 400 350 o Interest coverage ratio 4.3x well abov
Slide 6: FPC Leads Group Companies in Lifting ESG Targets
FPC Leads Group Companies in Lifting ESG Targets Head Office GHG Emissions (tons of CO2-e) First Pacific Scope 2 Emissions Fall to Zero in 2023 300 15 o First Pacific Head Office Scope 2 greenhouse gas emissions reached zero in 2023 owing to the purchase of carbon offsets from the Company’s electric
Slide 7: Sales, Core Profit Continue to New Highs
Sales, Core Profit Continue to New Highs 1H 2024 Financial Highlights Net Sales & Core Profit (USD mln) 8,000 o Net sales rose 2% to record high IDR57.3 trillion vs. IDR56.1 6,926 7,430 7,338 7,000 trillion on sales growth by the CBP division 6,000 5,583 o EBIT rose 33% to highest-ever IDR11.8 trill
Slide 8: Sales, Core Profit Again at Record Highs
Sales, Core Profit Again at Record Highs 1H 2024 Financial Highlights 5,000 Net Sales & Core Profit (USD mln) o Net sales rose 7% in Rupiah terms to a record high IDR37.0 4,344 4,461 4,500 trillion vs. IDR34.5 trillion on growth led by Noodles 3,960 4,000 o All businesses delivered revenue and EBIT
Slide 9: Sales by Division & Geography
Sales by Division & Geography Change in External Sales (IDR bln) External Sales by Division (IDR bln) 58,000 57,500 1,958 57,296 1H23 1H24 Change Share 57,000 Noodles 24,549 26,507 8.0% 46.3% 56,500 56,087 Dairy 4,697 4,723 0.6% 8.2% 56,000 Snack Foods 2,016 2,210 9.6% 3.9% 8.8 x 11.5 55,500 194 170
Slide 10: Selected Time Series Data
Selected Time Series Data Sales over time (IDR bln) 2018 2019 2020* 2021 2022 2023 Change Consumer Branded Products 38,710 42,753 46,969 56,964 65,258 68,598 5% Bogasari (flour & pasta) 21,245 22,839 22,965 25,883 31,879 30,413 -5% Agribusiness 14,050 13,600 14,551 19,692 17,770 15,974 -10% Distribu
Slide 11: Power, Toll Roads, Water, Healthcare
Power Toll Roads Water Healthcare Others 48%-100% stakes 45%-100% stakes 53%-100% stakes 20% stake 36%-100% stakes 48% 53% 36% 24 Hospitals 100% 100% 6 Radiotherapy 100% Centers Philippine 50% Coastal Storage § Largest private hospital network in 100% 58% the Philippines § MPTC operates and § Maynil
Slide 12: MPIC Assets Draw Closer to FPC After Privatization
MPIC Assets Draw Closer to FPC After Privatization Privatization Brings New Shareholders, Higher Payout Others 2.3% MPIC Ownership After Privatization o In 4Q 2023 First Pacific and other investors delisted MPIC at a valuation MIG of $2,963.2 million o The price paid to minority shareholders was ₱5.
Slide 13: Post-Privatization Earnings Records Continue in First Half
Post-Privatization Earnings Records Continue in First Half 1H 2024 Financial Highlights Dividend Income (USD mln) 500 o Contribution from investee companies rose 20% to a record high ₱14.8 billion vs. 450 ₱12.4 billion on contribution growth led by power and toll roads businesses 400 o Core profit r
Slide 14: Distribution Drives Earnings to Record High
Distribution Drives Earnings to Record High 1H 2024 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Profit (USD mln) 1,600 o Gross revenues rose 6% to highest-ever ₱237.5 billion vs. 1,400 1,284 1,223 1,244 ₱224.8 billion on higher volume sold 1,200 1,085 o Core profit rose 21%
Slide 15: LNG & Renewables Power Generation Ambitions
LNG & Renewables Power Generation Ambitions Meralco Buys Majority Stake in SPNEC MGen Invests in 2,500MW LNG Power Project o MGreen has acquired 50.5% of Manila-listed Solar oMGen to take 60% stake in Chromite Gas Holdings (CGHI) Philippines New Energy Corporation (SPNEC.PM) for ₱15.9 with Therma Na
Slide 16: Toll Road Revenues, Core Profit at Record High
Toll Road Revenues, Core Profit at Record High Revenues & Core Profit (USD mln) 600 490 500 420 400 300 274 354 4.9 x 13.2 236 268 200 100 54 79 1.3 x 3.5 105 105 49 59 0 2020 2021 2022 2023 1H23 1H24 Revenues Core Profit 1H 2024 Financial Highlights & Outlook: Toll Roads o Revenues rose 18% to reco
Slide 17: Snapshot of MPTC Assets
Snapshot of MPTC Assets Regional Breadth of MPTC Toll Road Network Annual Capex (PHP mln) 30,000 25,000 o MPTC is 99.9% owned by MPIC o MPTC holds 44.9% of CII Bridges & Roads in Vietnam 20,000 15,000 4.0 x 11.3 o MPTC owns 98.2% of Nusantara Infrastructure in Indonesia 10,000 5,000 0 12.8 x 3.8 o F
Slide 18: Water Earnings Rise Sharply on Higher Tariffs
Water Earnings Rise Sharply on Higher Tariffs 1H 2024 Financial Highlights & Outlook: Water Revenues & Core Profit (USD mln) 500 463 445 o Maynilad revenues rose 23% to record high ₱16.4 billion 450 492 400 420 vs. ₱13.3 billion as a result of higher effective tariffs and 350 billed volume 287 300 o
Slide 19: Healthcare Business & Light Rail Manila
Healthcare Business & Light Rail Manila Light Rail Traffic Surges, Slashing Core Loss Health Revenues Rise 23% on Higher Patient Count o LRMC revenues rose 22% to ₱1.4 billion vs. ₱1.1 billion o The rebranded hospitals business “Metro Pacific Health” on 7% increase in daily ridership to 315,127 pass
Slide 20: Data Drive Revenues and EBITDA to New Record Highs
Data Drive Revenues and EBITDA to New Record Highs 1H 2024 Financial Highlights Service Revenues# & Telco Core Profit (USD mln) o Service revenues# rose 4% to a record high 4,000 3,508 3,763 3,586 3,633 ₱103.4 billion led by Individual mobile business and Enterprise data services business 3,000 o EB
Slide 21: Individual Business Leads Growth Again
Individual Business Leads Growth Again Individual Business Sees Surge in Data Usage Individual Revenue Split (PHP bln) 25.0 o 1H 2024 Individual service revenues rose 4% to ₱41.9 billion vs. ₱40.2 billion on 14% ARPU growth and increase 20.0 in number of active data users o 1H 2024 postpaid service
Slide 22: Philippines' Leading Digital Banking Platform
Philippines’ Leading Digital Banking Platform Number One Fintech Platform in the Philippines All-In-One Digital Banking App* o PLDT share of losses down to ₱700 million vs. ₱1.2 o PayMaya is now Maya with its own digital bank and billion (PLDT ownership stake is 38%) crypto exchange o Cash flow posi
Slide 23: Capex Passes its Peak & Investment Grade Ratings
Capex Passes its Peak & Investment Grade Ratings Capex Spending Down After Leadership Secured Capex Coming Down (USD mln) o 2024 capex target of ₱75-78 billion continues drive down 2,500 50% from capex peak in 2022, and includes new capex 2,000 40% commitments and continued delivery of earlier commi
Slide 24: Earnings Remain Strong as Net Debt Falls 21%
Earnings Remain Strong as Net Debt Falls 21% 1H 2024Highlights Show Record Highs Revenue & Core Profit (USD mln) 2,500 o Revenue declined 28% to S$1,062.0 million vs. S$1,470.6 2,029 million on lower selling prices following stabilization of the 2,000 1,748 domestic power market o EBITDA fell 25% to
Slide 25: Silangan Mine Seen Opening in 2025
Silangan Mine Seen Opening in 2025 1H 2024 Financial Highlights Operating Revenues & Core Profit (USD mln) 250 o Operating revenue fell 5% to ₽4.4 billion vs. ₽4.6 billion on 212 lower volume milled and lower grades 200 171 185 o Cash production costs rose 12% to ₱814/ton vs. ₽729/ton largely on sha
Slide 26: Appendix
Appendix Shareholder Information Selected Financial Data 26
Slide 27: Adjusted NAV per Share
Adjusted NAV per Share At At At Basis 31 December 31 December 30 June US$ millions 2022 2023 2024 Indofood (i) 1,879.3 1,839.3 1,626.4 PLDT (i) 1,304.8 1,276.1 1,354.5 MPIC (ii) 811.0 1,371.0 1,295.2 FPM Power/PLP (iii) 150.0 370.0 370.0 Philex (i) 145.6 154.8 121.6 PXP Energy (i) 76.4 39.6 28.5 Hea
Slide 28: Differing Perspectives on NAV per Share
Differing Perspectives on NAV per Share How to Value MPIC? At Considering Considering o First Pacific values its 30 June CLSA’s Six Analysts’ 46.3% of MPIC at its US$ millions 2024 MPIC Valuation MPIC Valuation* privatization valuation Indofood 1,626.4 1,626.4 1,626.4 o CLSA uses the market PLDT 1,3
Slide 29: Contribution & Profit Summary
Contribution & Profit Summary Contribution to Turnover Group profit(i) For the six months ended 30 June 2023 2024 2023 2024 US$ millions Indofood 3,741.6 3,584.6 137.2 167.6 PLDT (ii) - - 73.4 74.8 MPIC 532.3 624.4 79.3 101.6 FPM Power/PLP 1,098.3 786.1 63.7 47.3 Philex(ii) - - 5.1 3.4 FP Natural Re
Slide 30: Contribution & Profit 2018 to 2023
Contribution & Profit 2018 to 2023 (USD mln) 2018 2019 2020 2021 2022 2023 Indofood 134.7 163.4 194.4 237.0 265.8 285.1 PLDT 120.7 119.3 134.9 139.1 133.7 143.2 MPIC 120.9 126.8 84.8 98.1 104.4 159.8 FPM Power/PLP (6.2) (10.5) (2.5) 21.8 82.4 118.8 Philex 2.9 1.0 8.0 19.3 13.4 7.6 FPNR/Roxas (0.3) (
Slide 31: Head Office Debt & Cash Flow
Head Office Debt & Cash Flow Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2024 1,466.8 (70.9) 1,395.9 Movement (11.2) (83.9) (95.1) At 30 June 2024 1,455.6 (154.8) 1,300.8 Head Office cash flow For the six months ended 30 June 2023 2024 US$ millions Dividend and fee income
Slide 32: Head Office Cash Flow 2018-2023
Head Office Cash Flow 2018-2023 For the year ended 31 December (USD mln) 2018 2019 2020 2021 2022 2023 Dividend income Indofood 88.0 49.7 78.4 81.1 78.2 71.2 PLDT 64.5 73.0 80.6 89.2 116.4 103.6 MPIC 28.1 27.9 29.0 29.7 27.7 30.2 FPM Power/PLP - - - - - 116.6 Philex 3.0 - 0.4 2.5 2.0 0.9 Fees and ot
Slide 33: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 31 December 2023 At 30 June 2024 Total Net Equity/ Gearing(ii) Net Total Gearing(ii) US$ millions Debt/(cash)(i) (Deficit) (times) Debt(i) Equity (times) Head Office 1,395.9 976.1 1.43x 1,300.8 849.4 1.53x Indofood 2,327.1 6,353.0 0.37x 2,293.5 6,102.8 0.38
Slide 34: MPIC Group Net Debt and Gearing
MPIC Group Net Debt and Gearing Consolidated At 31 December 2023 At 30 June 2024 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) MPIC Head Office 1,129.9 2,869.9 0.39x 1,049.2 2,727.8 0.38x Metro Pacific Tollways 2,193.3 1,433.9 1.53x 2,212.9 1,
Slide 35: Effect of 1% Change in USD Exchange Rate on Profitability and NAV
Effect of 1% Change in USD Exchange Rate on Profitability and NAV Profit effect of Group Total USD Hedged Unhedged 1% change in net profit exposure amount amount currency effect Head Office(i) 1,379.1 - 1,379.1 - - Indofood 2,842.3 - 2,842.3 28.4 11.1 MPIC 126.8 - 126.8 1.3 0.4 FPM Power (41.2) - (4
Slide 36: Borrowings, Cash, and Effect of 1% Change in Interest Rates
Borrowings, Cash, and Effect of 1% Change in Interest Rates on Profitability At 30 June 2024 Fixed Variable Cash Consolidated interest rate interest rate and cash Net US$ millions Borrowings(i) Borrowings(i) Equivalents(ii) Debt Head Office 694.7 760.9 (154.8) 1,300.8 Indofood 2,735.1 1,734.7 (2,176
Slide 37: Revenue Breakdown by Geography & Sector
Revenue Breakdown by Geography & Sector Consumer Food Products (USD mln) 2020 2021 2022 2023 1H23 1H24 Change Indonesia 4,736.7 5,367.9 5,710.0 5,649.0 2,935.5 2,787.7 -5.0% Philippines 173.2 122.7 219.7 61.1 49.4 10.5 -78.7% Singapore 51.7 204.3 141.8 128.4 67.4 48.1 -28.6% Middle East, Africa & Ot
Slide 38: First Pacific's Investment & Management Approach
First Pacific’s Investment & Management Approach Investment Criteria & Strategies Investment Objectives o Geographic focus on emerging Asian economies o Create shareholder value by growing First o Industry focus on consumer foods, infrastructure, Pacific’s recurring earnings and dividends and natura
Slide 39: Market Performance & Peer Comparison
Market Performance & Peer Comparison 2023 Market Performance Parallels Financial Results 32% o 2023 was FPC’s best year ever in many ways – record high earnings and dividend income forming a solid foundation for growth 6% 5% 4.8 x 10.0 3% 2% 2% o 142.HK rose 33% in 2023 from HK$2.33 to HK$3.11 and r
Slide 40: Proven Track Record in the Capital Markets
Proven Track Record in the Capital Markets $282 mln Rights Offer $500 mln Rights Offer (one-for-five (one-for-eight at HK$3.40/share) at HK$8.10/share) 7-yr $400 mln 7-yr $300 mln 7.375% 7-yr $175 mln 5.75% 7-yr $350 mln 4.375% 6.00% Unsecured Secured Bond Unsecured Bond Unsecured Bond Bond (redeeme
Slide 41: Senior Management of First Pacific
Senior Management of First Pacific John W. Ryan Joseph H.P. Ng Manuel V. Pangilinan Christopher H. Young Stanley H. Yang Assoc. Director & CSO Assoc. Director & CFO Managing Director & CEO Executive Director Assoc. Director Group Corp. Development Richard P.C. Chan Peter T.H. Lin Victorico P. Marily
Slide 42: Shareholding Structure of the Company
Shareholding Structure of the Company Minority Shareholders (mln shares) 2023.12 2024.03 2024.06 % Stake 1 Brandes Investment Partners 283 283 287 6.8%1 2 Lazard Asset Management 117 100 95 2.2%2 3 The Vanguard Group 79 82 85 2.0%3 4 Letko, Brosseau & Associates 77 82 82 1.9%4 Salim 5 JG Summit & Go
Slide 43: Director Ownership & Minority Shareholder Statistics
Director Ownership & Minority Shareholder Statistics Concentration Directors’ Interests Unvested Vested Share Shares The Share Awards Options Rest Top 10 Anthoni Salim NED, Chairman 1,925,474,957 - - 16% Manuel Pangilinan ED, CEO 70,493,078 - - 47% 6.58,385,189 x 16 6.5 x 6.5 Next 25 of all shares C
Slide 44: FPC's Economic Interest (%)
FPC’s FPC’s Economic Economic 25.6% Interest 46.3% 25.6% Interest (%) (%) 22.0% 50.1% 40.3% 22.0% 40.3% Pinehill 54.7% 46.3% 36.5% 24.4% 30.3% 20.8% 18.1% 46.2% 13.2% 45.4% 50.9% 9.3% 16.6% 46.2% 42.4% 46.2% 44 Data as of 30 June 2024.
Slide 45: Notes
Notes 45
Slide 46: 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 47: 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 4302 Email us at info@firstpacific.com WeChat ID: firstpacific-142hk firstpacific.com