Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — 9M 2018 Earnings Presentation
80 slides from Gt Capital's earnings presentation, Jan 21, 2019
Slide 1: Nine Months Investor Presentation
Defined by Excellence, Refined through Partnership Jan to Sept 2018 Nine Months Investor Presentation gtcapital.com.ph 21 Jan 2019
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 31,572 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 No. 1 bank in net interest margins as of 1 end-Sept 2018 1 Most dominant automotive company Owns MERALCO, the Philippines’ largest power 1 distribution in the Philippines, with 38% market share company as of end-Sept 2018 2 Second largest Philippine bank by assets as
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 9M 2018
Financial Highlights 9M 2018 Php10.9 billion Consolidated Net Income (PPA adjustments for PCFI, MPI, TMBC, TMP) +1% Php10.8 billion 9M 2017 Php11.0 billion Core Net Income unch Php11.0 billion 9M 2017 Php161.3 billion Revenues -5% Php169.5 billion 9M 2017 TMP [-13%] - Auto Sales (TMP – Php119.3B) Ph
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 4.8% 1.2% 1.3% 4.9% 1.9% 0.5% AXA 3.2% 5.5% TMP 23.9% MPIC MPIC TMP 13.1% 14.0% 38.4% Fed Land Fed 8.1% Land MBT MBT 29.8% 6.8% 42.3% MBT + TMP = 69.6% MBT + TMP = 67.7% 9M 2017 9M 2018 13
Slide 14: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance 5% 5% Infrastructure Infrastructure 13% 14% Automotive Automotive 27% Property 41% Property 11% 12% Banking Banking 30% 42% 9M 2017 9M 2018 14
Slide 15: Metropolitan Bank and Trust Company
ENGT CAPITAL HOLDINGS INCORPORATED gg “Metrobank = a % ® | ie
Slide 16: Banking Sector Updates
Banking Sector Updates Banking still an underpenetrated sector Deposit accounts per 1,000 individuals ASEAN Members and Observers, 2017 2,277 2,242 Deposit accounts per 1,000 1,955 1,549 individuals 1,056 963 579 577 518 252 Source: International Monetary Fund Financial Access Survey, Tracking Acces
Slide 17: Peer Banks Highlights
Peer Banks Highlights Net Income (Php Billion) Net Interest Margin – NIMs (%) +6% +27% 0% 3.9% 3.6% 21.5 3.1% 16.8 17.0 BDO MBT BPI MBT BDO BPI Total Assets (Php Billion) Total Loans (Php Billion) +11% industry growth +17% industry growth +9.5% +9% +2.9% +17% +15% +13% 2,009 2,922 2,173 1,960 1,326
Slide 18: Peer Banks Highlights
Peer Banks Highlights Total Equity (Php Billion) Total Capital Adequacy Ratio and CET1 (%) +15% industry growth CAR CET1 +6% +32% +37% 17.8% 17.0% 311 16.1% 277 15.2% 13.9% Minimum 246 CAR 12.3% 11.5% 10% Minimum CET1 BDO MBT BPI MBT BDO BPI Source: 17-Q Report of Banks as of 30 Sept 2018 and BSP Re
Slide 19: Metrobank Financial Highlights
Metrobank Financial Highlights Solid net income growth Net Income (Php Billion) Well-within expectations • Php16.8B net income for 9M 2018, +27% YoY +27% • Php5.7B net income for 3Q 2018, +55% YoY • +66bps ROE improvement to 9.3% 16.8 Positive results for all growth drivers 13.2 • Sustained double-d
Slide 20: Key Performance Drivers
Key Performance Drivers Loan growth remains healthy Loans and Receivables (Php Billion) Total Loan Portfolio Breakdown Consumer +15% +10% 1,326 24% 76% Commercial +17% Consumer Loan Portfolio Breakdown 1,157 Credit Cards, others 21% 33% Home Auto 46% 9M 2017 9M 2018 Source: SEC 17Q, Bank data 20
Slide 21: Key Performance Drivers
Key Performance Drivers Sustained NIM expansion Net Interest Margin Superior NIMs in the industry • 9M 2018 at 3.88% o +9bps vs. 9M 2017 +9 bps o +11bps vs. 1H 2018 3.88% NIM drivers • Improving loan yields • CASA ratio maintained at 62% 3.79% 3.77% 3.75% 3.75% Pricing strategy anchored on profitabi
Slide 22: Key Performance Drivers
Key Performance Drivers Expanding recurring revenue base NII less Opex NII vs OPEX consistently positive • Highest NII less OPEX metric among peers Net Interest Income Operating OPEX growth of 10% Expenses • From Php29.8B to Php33.0B (Net of taxes and in Php Billion NII less Opex licenses) 45.3 51.0
Slide 23: Key Performance Drivers
Key Performance Drivers Stable asset quality Loan Growth vs. NPL Better-than-industry NPL ratio at 1.2% Net Loans NPL cover at 110% NPL Ratio 1,326 Provisions for credit and impairment losses at Php5.2B • Est. credit cost at 0.5%, well within guidance 769 Prudent balance sheet buildup 1.2% 1.2% • Po
Slide 24: Investment Case
Investment Case Solid net income growth, consistent across quarters Loan growth remains healthy Sustained NIM expansion Expanding recurring revenue base Stable asset quality
Slide 25: Toyota Motor Philippines
‘<7 GT CAPITAL HOLDINGS INCORPORATED ALWAYS BETTER CARS. ALWAYS BETTER LIVES,
Slide 26: CARS Incentives
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Incentives 26
Slide 27: CARS Rationale and Regulations
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Rationale and Regulations • Aims to increase local content from 30% to 60% • Manufacturing of model, body shell, large plastic assemblies, common parts, OEM parts, and shared testing facility are cove
Slide 28: CARS Program Updates
CARS Program Updates Comprehensive Automotive Resurgence Strategy Participating model Php1.03 billion Vehicle Php5.24 production 348 parts Confirmed as of July 2017 billion Total Toyota CARS Project Investment 91 Toyota suppliers Php4.21 Plan as of Sept 2017 30 Confirmed direct suppliers for the bil
Slide 29: CARS Program Updates: Out-house parts projects
CARS Program Updates Out-house parts projects BOI-registered auto parts partners Php495.9 Php520.0 million million Php94.5 VALERIE PRODUCTS MANUFACTURING, INC. Php167.2 million million OGIHARA (THAILAND) CO., LTD. TECHNOL EIGHT PHILIPPINES CORP. Php1.3 billion Aggregate Investments Source: The Phili
Slide 30: 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 31: 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. 31
Slide 32: Economic motorization amid low vehicle penetration
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 711 3000 350000
Slide 33: 9M18 Recap
9M18 Recap: 2017 Front Loading 2018 Toyota specific factors Toyota Vehicle Sales (In Units) 20000 2017 Front loading 18000 16000 14,277 avg. monthly sales 14000 12000 10000 8000 6000 4000 2000 0 Toyota Vehicle Sales Average Vehicle Sales (in Units) Commercial Vehicle Sales (In Units) Passenger Car S
Slide 34: Retail auto unit sales volume
Retail auto unit sales volume As of December 2018 YTD Industry 473,376 ▼ 15% Y-o-Y Toyota 400,298 ▼ 17% Y-o-Y • Front loading in 2017 183,908 153,004 • TNVS suspension August 2017; 80% of TNVS are Vios • Vios run-out in anticipation of FMC in (1H 2018) 12M 2017 12M 2018 • Limited units from IND, THA
Slide 35: Toyota monthly retail auto unit sales volume
Toyota monthly retail auto unit sales volume starting to normalize For selected months in 2018 ▲ 18% M-o-M Highest unit sales volume for 2018* Still above previous historical average 14,927 14,528 14,277 12,686 September 2018 October 2018 Historical Average December 2018 (Pre-TRAIN) Source: Company
Slide 36: Overall Market Share
Toyota continues to be the Philippines’ dominant auto company Overall Market Share As of December 2018 YTD 38% No.1 No.1 No.1 Passenger Commercial Overall 17% Car Sales Vehicle Sales Sales 9% 9% 6% 6% 5% 4% Mitsubishi Hyundai 3% Nissan Ford 1% 0.9% Honda Suzuki 0.8% Isuzu Others 0.6% GM Mazda Subaru
Slide 37: Auto Industry Market Share
Toyota continues to be the Philippines’ dominant auto company Auto Industry Market Share As of December 2018 YTD Passenger Car Commercial Vehicle 40% 30.9% of total market 32.7% of Toyota sales 37% 69.1% of total market 67.3% of Toyota sales 17% 16% 16% 10% 10% 8% 7% 6% 6% 6% 4% 4% 5% 1% 2% 1% 1% 1%
Slide 38: TMP Financial Highlights
TMP Financial Highlights Revenues Wholesale volume -12% 117,080 units; retail volume -17% -9% 130.7 119.3 Vios sales decline: 10,323 units in Php Billion Out of 23,319 total unit decline, 44% due to Vios alone Retail sales volume: 9M 2017 9M 2018 • PCs: Vios -37%, Wigo +17% Net Income ATP •
Slide 39: New model launches in 2018
TOYOTA MOVING FORWARD New model launches in 2018 Model introduction May 2018 Full-model change July 2018 39
Slide 40: Monthly retail auto unit sales volume
Monthly retail auto unit sales volume starting to normalize Full-Year 2018, Monthly Start of FMC Vios 14,927 14,426 Sales 14,528 13,217 12,867 12,315 12,686 14,147 11,406 11,403 11,265 +18% MoM 9,817 Rush +9%MoM +3%MoM Vios introduction run-out Vios sales push TRAIN Law in anticipation Stop old Vios
Slide 41: Seasonality (Five-Year Historical)
Seasonality (Five-Year Historical) 4Q accounts for highest % of sales to total Industry Retail Sales - 2012 to 2017 Average Share of Monthly Sales to Total Sales 9.5% 8.6% 8.7% 9.1% 9.1% 8.4% 8.5% 8.5% 7.7% 7.9% 9.3% 6.7% 7.2% January February March April May June July August September October Novem
Slide 42: TMP's road to unit sales recovery
TOYOTA MOVING FORWARD TMP’s road to unit sales recovery Vios monthly unit sales Vios sales push in anticipation 3,666 3,664 of All-New Vios 3,642 Start of 3,552 All New 2,965 3,158 3,219 Vios Sales 2,899 2,914 2,798 2,603 2,900 2,711 2,857 2,782 2,578 2,396 2,443 2,484 1,998 TNVS 1,851 suspension 1,
Slide 43: Rush performance vs. competitor models
Breaking away from the competition Rush performance vs. competitor models Market before Rush First month of Rush Ranked #1 after 3 months Segment Unit Sales Segment Unit Sales Segment Unit Sales April YTD May YTD July YTD 2,314 2,837 1,822 3,944 2,191 3,658 3,057 805 1,301 986 1,424 297 191 363 288
Slide 44: TMP's road to unit sales recovery
TMP’s road to unit sales recovery • Front loading in 2017 • No additional taxes/higher discretionary income • TNVS suspension August 2017; • LTFRB 10,000 new licenses for 80% of TNVS are Vios Grab; accredited five new TNVS players • Vios run-out in anticipation of • Full production of Vios and FMC i
Slide 45: 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 46: Price Comparable by Category
Price Comparable by Category in Million Philippine Peso (PHP) In Million PHP Toyota Hyundai Honda Mitsubishi Model Camry Accord Price 1.806 1.992 1.938 1.958 Model Corolla Altis Elantra Civic Price 0.961 1.477 0.970 1.065 1.168 1.693 Model Vios Accent (Sedan) City Mirage G4 Price 0.659 1.095 0.695 0
Slide 47: Price Comparable by Category in USD
Price Comparable by Category in United States Dollars (USD) In US Dollars Toyota Hyundai Honda Mitsubishi Model Camry Accord Price 34,618 38,183 37,148 37,531 Model Corolla Altis Elantra Civic Price 18,421 28,311 18,593 20,414 22,388 32,452 Model Vios Accent (Sedan) City Mirage G4 Price 12,632 20,98
Slide 48: 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 49: Toyota Dealership Expansion
Toyota Dealership Expansion Target by end of year 2014 2015 2016 2017 2018 Current 2019E Number of Dealers 45 49 52 61 69 70 72 Expansion in Next Wave Cities outside Metro Manila Negros Occidental Nueva Ecija SERVICE CENTER January 2019 January 2019 70 Dealerships as of 21 January 2019 Upcoming: Alb
Slide 50: Federal Land
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Slide 51: Metro Manila condominium inventory and prices
Inventory in units (LHS) and years (RHS) Residential condominiums, all segments, Metro Manila BPOs are mounting a comeback DERALLAND 100,000 — 58,000 | 3.0 in office demand snite 27018 2» md 5 * | 3 sn + 2.0 s A, —— " < re |. * he uf = ir, U f Qa ~ 10 Qa 10 oF i 3 Os nw ros : [ = * STatetntatatntete
Slide 52: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues Real estate sales +37% from Php6.4B to Php8.8B 10.6 +32% – Lot sales to Sunshine Fort (Php2.24B) and GHR2 (Php0.45B) in Php Billion 8.0 – Deferred revenue of Php4.4B to be realized upon sale of units (Estimated NIAT equivalent is Php770M) Reservation Sa
Slide 53: Federal Land Highlights
Federal Land Highlights Redesigning of podium for additional commercial space Increasing retail spaces within high- density residential communities Additional GFA of approximately 20,000 sq. m Higher revenue CLOCKWISE, FROM LEFT • Grand Hyatt Residences 1 recognition • Central Park West with project
Slide 54: Project Launches
Project Launches The Seasons BONIFACIO Dec 2018 54
Slide 55: Project Launches
Project Launches Grand Hyatt Manila Residences South Tower GRAND CENTRAL PARK, BONIFACIO GLOBAL CITY October 2018 LTS No. 33452 in 55
Slide 56: 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 57: 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 58: Actual drone shot of Lancaster New City
Actual drone shot of Lancaster New City 58
Slide 59: San Juan.
San Juan. ae Ermita =32 ain CAVITEX Go Mandaluyong paside ie * Mania Bay Target completion: 2020 nN ROW progress: 85% Angono Status: Ongoing pre- nh "| construction activities f Taytay Target completion: 2021 ROW progress: 48% Target completion: 2021 Status: Ongoing construction ROW progress: 21% St
Slide 60: Lancaster New City map
6 NLEX-SLEX Connector Road Skyway Extension NAIA Expressway Entertainment City 4 2 Cavitex C-5 South Link LRT-1 1 CALAX 3 Extension Alabang 1,700 hectares Daang-Hari MCX SLEX EPZA CALAX Exit LRT-6 5 Aveia Federal Land/ EPZA Alveo 60
Slide 61: Property Development Sweet Spot
The Low-Cost Property Sector Property Development Sweet Spot Surplus/ Price Range % to Total Segment Demand Supply Segment (Deficit) PHP USD Households Socialized 1,146,275 551,109 (595,166) Socialized <400k <9k 23.0 Economic 2,509,271 618,542 (1,890,729) Economic 400k – 9k – 28k 66.3 1.25m Low cost
Slide 62: Recent Lot Sales
Recent Lot Sales Imus Sale to Toyota Manila Bay Group to build Toyota Imus dealership Php223.8 million 1,700 13,429 sq. m @ hectares Php16,667/sq. m total June 2018 Sale to MetroPac Movers, Inc. Php1.1 billion 202,110 sq. m @ Php5,628/sq. m July 2018 Map not drawn to scale 62
Slide 63: Lancaster New City: Now Open
66 1,700 57,000 Retail/commercial Hectares of land Residents locators Now Open Soon to Open express 1,000-seater BPO hub Global leader from Australia in high-quality, human-annotated training data for machine learning and artificial intelligence 63
Slide 64: PRO-FRIENDS Financial Highlights
PRO-FRIENDS Financial Highlights Revenues Real estate sales from Php4.5B to Php7.3B 7.8 +60% - Inclusive of lot sales to TMBC and MMI (Php1.22B) +63% 4.9 in Php Billion 0.5 - Affordable housing +36% 0.4 7.3 Other Income Reservation Sales Php17.5B 4.5 RES (Php1.9B/mo.) YTD Houses Built 3,71
Slide 65: GT Capital Holdings Incorporated
tp GT CAPITAL HOLDINGS INCORPORATED
Slide 66: Insurance Industry Updates
Insurance Industry Updates As of June 2018 Total Premiums Total Assets +23% +3 % 159 1,471 1,354 195 +15% 224 130 43 in Php Billion +11% 39 in Php Billion +1% +28% 116 1,214 1,230 91 1H 2017 1H 2018 1H 2017 1H 2018 Legend Life insurance sector General/Non-Life insurance sector Source: Insurance Comm
Slide 67: Insurance penetration as a % of GDP
Still an underpenetrated sector Insurance Penetration as a % of GDP, 2017 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 67
Slide 68: FY 2017 Life Insurance Industry Rankings
FY 2017 Life Insurance Industry Rankings Net Premium Income, in billion Php 32.1 26.2 20.3 19.9 19.2 17.6 11.7 Sun Life 9.9 BPI Philam 8.2 Philam PRU 6.5 Manulife Insular BDO Life ManuCHIB UCPB Life is the world’s number one insurance brand in terms of value Source: Insurance Commission, May 2018 68
Slide 69: FY 2017 General/Non-Life Industry Rankings
FY 2017 General/Non-Life Industry Rankings Net Premiums Written, in billion Php Source: Insurance Commission, June 2018 69
Slide 70: 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 71: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium New Business (APE) +21% from Php4.7B to Php5.6B growth in Protection & Health line 22.7 28.0 +24% o Regular Premium (RP) +19% Traditional +47% in Php Billion 23.8 Unit-linked +14% 18.8 AXA +26% o Single Premium (SP) +29% 3.8 4.3 CPAIC +11%
Slide 72: Strong synergy and growth
Strong synergy and growth • Persistency Ratio: 85.2% ▲from 83.7% in 9M 2017 • Exclusive financial advisors: 4,470 • Total bancassurance (Metrobank and PSBank) branches: 953 • AXA branches nationwide 38 Assets Under Management +8% 110.7 102.5 In Billion PHP 9M 2017 9M 2018 72
Slide 73: GT Capital Holdings Incorporated
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Slide 74: 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 75: 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 76: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income (Core) Power 14.1 15.4 0.3 +10% o Meralco - Core NI Php16.7B +9% in Php Billion 0.2 0.5 0.6 Logistics / Indra o GBPC - Core NI Php1.9B LRMC/AFPI 7.6 8.5 Hospitals Energy sales +12% 3.0 3.3 2.8 3.0 Meralco/Beacon/GBPC Toll Roads -
Slide 77: 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 78: Macroeconomic Indicators
Macroeconomic Indicators Foreign direct investments Inflation USD10.7 billion FY 2018E 5.2% ▲7% from 10.1 billion Y-o-Y as of December 2018 Gross international reserves Population USD78.5 billion 106.6 million end-December 2018 External Debt-to-GDP 23.5% as of Sept 2018 Personal remittances of 11 mi
Slide 79: Macroeconomic Indicators
Macroeconomic Indicators Third Quarter 2018 GDP Growth Components of GDP (%) As of 3Q 2018 6.1% Still the fastest 19.4% Consumption among the 3.3% ASEAN-5 11.8% Government 67.2% 4.4% Investments 2.6% 5.2% Household Consumption +6% In USD Billion Year-on-Year GDP Per Capita in USD, nominal 114.6 115.
Slide 80: Outstanding Company
are recognized by the Institute of Corporate Directors as TOP-PERFORMING COMPANIES based on the ASEAN CORPORATE Mr. JV Alde Ms. Jette Gamboa Mr. Francis Suarez GOVERNANCE PSBank President Metrobank SVP GT Capital Group CFO SCORECARD Outstanding Company Philippines - Automobiles & Components Sector 8