Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — H1 2019 Earnings Presentation
79 slides from Gt Capital's earnings presentation, September 2019
Slide 1: Investor Presentation First Half 2019
Investor Presentation September 2019 First Half 2019 FINANCIAL AND OPERATING RESULTS gtcapital.com.ph
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 14 Metropolitan Bank and Trust Company (MBT) 17 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 • Medical diagnostics • Federal
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 55.93% Grand Titan Public Float 44.07% Property Infrastructure Banking Automotive Insurance Development and Utilities 21.0% 36.0% 51% 100% 15.55% 26.47%1 36.36%8 40%5 25.3%2,3 15% owned by Ty family- related entities 40.7% 60.0% 28% 58.1% 4 1 Free float
Slide 12: Financial Highlights 1H 2019
On the road to sustainable recovery Financial Highlights 1H 2019 Php7.34 billion Consolidated Net Income (MBT +19%, FLI +14% , TMP -3% , TMBC 0%) +3% Php7.14 billion 1H 2018 Php7.42 billion Core Net Income (FV adjustments for PCFI, MPI, TMBC, TMP) +4% Php7.15 billion 1H 2018 Php104.3 billion Revenue
Slide 13: GT Capital Consolidated Core Net Income Comparative
Strong second quarter 2019 GT Capital Consolidated Core Net Income Comparative 1Q 2018 vs. 1Q 2019 2Q 2018 vs. 2Q 2019 1H 2018 vs. 1H 2019 -9% +17% +4 % FLI +39% FLI -23% TMP +24% TMP -24% MBT +22% MBT +15% TMBC +17% TMBC -22% MPIC +0.3% MPIC +1% 7.4 AXA +46% AXA -53% 7.1 Life -6% Life +50% in Php B
Slide 14: GT Capital Net Income Contribution 1H2019
GT Capital Net Income Contribution 1H2019 AXA TFSPH TMBC Others TFSPH TMBC 3.8% 1.9% 0.6% AXA 1.5% 1.6% 0.6% Others 3.1% 3.4% TMP TMP 25.2% MPIC 23.4% MPIC 13.3% 15.4% FLI FLI 6.1% 5.6% MBT MBT 44.1% 50.1% MBT + TMP = 69.2% MBT + TMP = 73.5% 1H 2018 1H 2019 14
Slide 15: Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector Insurance Insurance Infrastructure 3.1% 3.8% Infrastructure 13.3% 15.4% Automotive Automotive 27.9% Property 26.0% Property 7.5% 9.0% Banking Banking 44.1% 50.1% 1H 2018 1H 2019 15
Slide 16: Pro-forma NI Contribution by Sector
Positive developments in property will contribute around 22% to FY19E GT Capital Pro-forma NI Contribution by Sector Insurance Insurance Infrastructure 2.4% 3.8% 10.1% Infrastructure 15.4% Automotive Automotive 5.7% 19.7% 27.9% Property Property Property 9.0% 29.8% 29.8% Banking Banking [VALUE] 38.0
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Slide 18: 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 18
Slide 19: Peer Banks Highlights
Peer Banks Highlights Net Interest Margin – NIMs (%) Total Loans (Php Billion) +6bps +38bps +49bps 3.8% 4.0% +9% +6% +11% 3.4% 2,120 1,398 1,354 MBT BDO BPI BDO MBT BPI CASA Deposits (Php Billion) Total Assets (Php Billion) +3% 1,686 -2% +2% +7% +5% +12% 1,133 3,065 986 2,278 2,135 BDO BPI MBT BDO M
Slide 20: 1H 2019 Peer Banks Highlights
1H 2019 Peer Banks Highlights MBT still most profitable bank in terms of core business (NII less Opex) while having the strongest investment portfolio NII less Opex (Php Billion) Total Investments (Php Billion) 8.8 +11% 8.1 477.2 427.7 2.4 404.2 MBT BPI BDO MBT BDO BPI Cost-to-Income Ratio (In %) Ne
Slide 21: Peer Banks Highlights
Peer Banks Highlights Total Equity (Php Billion) Total Capital Adequacy Ratio and CET1 (%) +15% +7% +8% CAR CET1 349 17.1% 16.4% 15.7% 15.6% 297 14.2% 260 12.4% BDO MBT BPI MBT BDO BPI Source: 17-Q Report of Banks as of 30 June 2019 21
Slide 22: Key Performance Drivers
Key Performance Drivers Loan Portfolio (Php Billion) Total Loan Portfolio Breakdown +6% Consumer 24% +6% 1,398 Commercial 76% +6% Consumer Loan Portfolio Breakdown Credit Cards, 1,324 Others +16% 24% 32% Home +7% Auto 44% 1H 2018 1H 2019 unch Source: 17Q Report as of 31 March 2019 22
Slide 23: Consistent earnings growth
Consistent earnings growth 1H 2019 Operating Highlights 1H 2019 Net Income (PHP bn) +18% Results are well-within expectations 13.0 • PHP13.0 bn net income, +18% YoY Sustained earnings growth on the back of 11.0 quality performance drivers Positive results for all growth drivers • Loan growth +6% f
Slide 24: Healthy deposit growth while CASA maintained above 60%
Healthy deposit growth while CASA maintained above 60% Deposit Base CASA Ratio +4% CASA TD 1,624 1,559 +8% Time 38% 39% LTNCD in Php Billion +2% 986.2 965.0 CASA 62% 61% 1H 2018 1H 2019 1H 2018 1H 2019 24
Slide 25: Sustained NIM expansion
Sustained NIM expansion Net Interest Margin (NIM) MBT Industry Pricing strategy anchored on 3.83% 3.77% profitability NIMs consistently above industry 3.38% and sustained at same level • +6 bps vs. 1H 2018 3.11% NIM drivers • Improving loan yields • CASA ratio maintained above 60% 1H 2018 1H 2019 25
Slide 26: Recurring revenue growth outpacing costs
Recurring revenue growth outpacing costs NII Less OPEX NII growth outpacing costs • NII growth 10% vs. 7% OPEX growth +10% NII less OPEX metric most favorable vs peers 33.3 36.5 • Traditional banking revenues more 7.4 8.8 +19% than cover for operating expenses In Php Billion 56.9 46.0 4.9 8.1 +7% (2
Slide 27: Improving efficiency ratios
Improving efficiency ratios Cost Income Ratio (CIR) Realizing efficiency gains • CIR dropped from 58.0% to 55.7% 58.0% Non interest income +16% • Service fees & bank charges increased 8% from PHP6.1 bn to PHP6.6 bn • Trading and FX gains at PHP3.6 bn 55.7% Opex growth slowest among peers • Branch ne
Slide 28: Asset quality better than industry
Asset quality better than industry NPL Ratio MBT Industry Prudent balance sheet buildup 1.60% • Modest portfolio growth without 1.50% compromising credit standards 1.36% and asset quality 1.14% Better-than-industry NPL ratio Provisions for credit and impairment losses at Php4.6 bn • Estimated credit
Slide 29: Investment Case
Investment Case Credit demand driven by solid economic growth Healthy deposit growth with above 60% CASA ratio Sustained NIM expansion Recurring revenue growth outpacing costs Improving efficiency ratios Asset quality better than industry 29
Slide 30: GT Capital Holdings Incorporated
GT CAPITAL HOLDINGS INCORPORATED
Slide 31: Comprehensive Auto Resurgence Strategy (CARS) Incentives
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Incentives 31
Slide 32: 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 33: CARS Program Updates
CARS Program Updates Comprehensive Automotive Resurgence Strategy Php5.38 B Total Toyota CARS Project Php1.3 Aggregate Investment Plan as of July 2019 billion Investments Out-house parts projects 30% 50% 58% BOI-registered auto parts partners Php520.0 before Gov‟t CARS actual CARS requirement millio
Slide 34: Toyota inaugurates Php1-billion high tech press line
CARS Program Updates Toyota inaugurates Php1-billion high tech press line Includes a 1600-ton servo-type press machine with automated sheet feeder and unloader robot Marks the start of local production for side member panels - TMP’s single largest localization project under the CARS Program Side mem
Slide 35: CARS Unit Sales Progress
CARS Unit Sales Progress Units sold of Toyota Vios since launch of CARS Program model launched in July 2018 to date (cumulative) Aug 2019 Dec 2018 32,242 June 2019 11,336 Sept 2018 March 2019 26,933 Aug 2018 3,503 18,423 On track to meet 1,658 CARS sales volume commitment Introduction of FMC Vios Ju
Slide 36: 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. 36
Slide 37: Philippines enjoying 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 1,232 3000 3500
Slide 38: 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 39: Retail auto unit sales volume
TOYOTA’S ROAD TO RECOVERY Retail auto unit sales volume As of August 2019 YTD In Units Industry factors: 262,401 Industry 257,417 • Signs of recovery due to easing inflation, declining interest rates, and rebound in ▲ % 2 consumer confidence Y-o-Y 96,716 100,657 • August unit sales due to sensitivit
Slide 40: Retail auto unit sales volume, June 2019
Highest monthly volume so far in 2019 Retail auto unit sales volume For the month of June 2019 In Units 32,808 35,267 Industry 11,403 14,568 ▲ 4% Y-o-Y Toyota Jun-18 Industry Toyota Jun-19 ▲ 28% Y-o-Y Market Share for the Month of June 2019 41% 15% 11% 8% 6% 5% 4% 4% 3% 2% 1% 1% 1% MITSUBISHI NISSAN
Slide 41: Auto Industry Market Share
Toyota is still PH‟s dominant auto brand Auto Industry Market Share As of August 2019 YTD Passenger Car Commercial Vehicle 42% in 8M 39% in 1Q 37% in 8M 33% in 1Q 45% in 2Q 39% in 2Q 16% 16% 16% 14% 9% 8% 6% 7% 5% 5% 4% 3% 4% 3% 1.1% 1.0%1.0%0.6% 0.9% 0.8%0.6%0.6% 0.3% Source: Company data, CAMPI, A
Slide 42: Overall Market Share
Toyota is still PH‟s dominant auto brand Overall Market Share As of August 2019 YTD 35% in 1Q 41% in 2Q 38% in 8M19 24,243 Unit difference No.1 No.1 No.1 Passenger Commercial Overall 16% Car Sales Vehicle Sales Sales 11% 9% 6% 6% 5% 3% MITSUBISHI NISSAN 3% HYUNDAI FORD 1% SUZUKI HONDA 0.7% 0.7% ISUZ
Slide 43: Green shoots grow taller than before
Green shoots grow taller than before Toyota vehicle sales post strongest growth in two years despite still relatively weak consumer confidence Toyota Vehicle Sales (Absolute YoY Change) vs. Inflation (In %) and BSP Consumer Expectations Survey (In %) 6,000 10.2 4,000 +28% 2,000 -0.5 -1.3 0 August -2
Slide 44: Base effect
Base effect Toyota retail volume in Jan. 2018 had spill over from Dec. 2017 front loading TMP Retail Sales - 2009 to 2018 Average Share of Monthly Sales to Total Sales 9.8% 9.4% 9.3% 8.6% 8.7% 8.4% 8.1% 8.1% 8.0% 7.8% 6.9% 6.9% January February March April May June July August September October Nove
Slide 45: TMP Financial Highlights
TMP Financial Highlights Revenues Wholesale -3% 72,794 units +25% -- o Hiace (Mar), Avanza (May) phased out o Offset by Rush +124% (May 2018) in Php Billion in Php Billion 42 Retail +0.4% 73,454 units (vs +2% Industry) 34 76 76 o PCs: Vios +10%, Wigo -19% o CVs: Hilux +35%, Fortuner -16%, Innova
Slide 46: New model launches
TOYOTA MOVING FORWARD New model launches December January 2018 2019 Feb 2019: Commuter, GL Grandia, GL Grandia Tourer August 2019: Super Grandia July 2019 Rebirth of a luxury sports car 46
Slide 47: Dealership Expansion
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 2020 2021 LUZON 32 35 28 METRO MANILA March 2019 DARAGA Albay 19 2020 20 2021 20 VISAYAS 14 2020 15 2021 15 July 2019 Valenzuela MINDANAO Upcoming: Cebu (renovation), Lucena
Slide 48: 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 49: 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 50: 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 51: 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 5
Slide 52: GT Capital Holdings Incorporated
GT CAPITAL 52 HOLDINGS INCORPORATED
Slide 53: Residential Supply and Demand
RESIDENTIAL SUPPLY AND DEMAND Managed growth for new launches Metro Manila Residential Condominium Supply and Demand 60,000 50,000 Forecasted Supply 45,000 40,000 35,000 34,900 Units 30,000 21,600 20,000 20,000 1H 10,000 2019A 0 2014 2015 2016 2017 2018 2019E 2020E 2021E Launches (Supply) Pre-sales
Slide 54: Office Supply and Demand
OFFICE SUPPLY AND DEMAND 1H19 office demand continues to exceed supply; Office supply and vacancy expected to decline by 2020 Metro Manila New Office Supply vs. Vacancy Rate 1.4 6.0% 6.0% 6.0% 5.5% 5.0% 5.0% 1.2 4.0% 3.0% 3.5% GLA in Mn SQM 1 0.8 0.6 0.4 0.2 0 2013 2014 2015 2016 2017 2018 1H19A / 2
Slide 55: Federal Land Financial Highlights
Federal Land Financial Highlights Revenues Reservation sales +52% from Php5.9 to Php8.9B 5.2 5.9 +12% Inventory +30% (1,364 units to 1,774 units) in Php Billion Launched 2 new projects: Mi Casa and The Estate Booked real estate sales +12% from Php4.1 to Php4.6B Rent +11% from Php563M to Ph
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: Exchange of Pro-Friends Shares for Land
Exchange of Pro-Friends Shares for Land Agreement signed on 10 May 2019 (Subject to regulatory approvals) Approximately Redemption 702 hectares Php20 of 64,530,712 Series A Preferred Shares of selected assets Billion in PCFI (51% of PCFI) 58
Slide 59: Exchange of Pro-Friends Shares
Exchange of Pro-Friends Shares Investment History 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 inev
Slide 60: Ongoing infrastructure projects map
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 61: 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 62: Valuation Methodology
CALABARZON and Cavite Valuation Methodology Demographics • 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% 62
Slide 63: Infrastructure and IT-BPM 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 FTEs in Million CAVITEX-C5 CALAX 1.50 1.01 1.09 1.16 South Link 1.24 Completion 1.30 Completion 1.00 0.3
Slide 64: 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 65: GT Capital Holdings Incorporated
GT CAPITAL S INCORPORATED
Slide 66: 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 Insurance Penetration as a % of GDP life insurance premiums by country Top 15 fastest growing markets, 2017-2025 % CAGR 21.31 UAE 10 17.94 Indonesia 9.2 Philippines Life: 1.24% Phili
Slide 67: Insurance Industry Updates: Premium Income
Insurance Industry Updates Premium income may increase as PSEi continues its bull run Life Insurance Premiums vs. Philippine Stock Exchange Index (PSE) Performance Industry Premium Income - Life 8,558 8,600 63.0 8,400 61.0 8,171 61.8 8,200 59.0 8,000 7,921 PSEi Closing Level 8,000 57.0 7,788 57.8 58
Slide 68: Insurance Industry Updates
Insurance Industry Updates As of March 2019 (released July 2019) Total Assets Total Premiums +8 % -9% 1,590.9 81 1,472.6 74 232.9 19 222.6 +5% 20 +7% in Php Billion in Php Billion 1,249.0 +9% 1,358.0 62 -12% 54 1Q 2018 1Q 2019 1Q 2018 1Q 2019 Legend Life insurance sector General/Non-Life insurance s
Slide 69: Insurance Rankings as of Full-Year 2018
Insurance Rankings as of Full-Year 2018 Life Sector Market Share 16% based on Premium Income 13% 10% 10% 8% Sun Life AXA Philam Life PRU Life UK BPI-Philam 5 General Sector Market Share non-life insurers ordered 10% based on Premiums Earned closed by IC in March 2018 8% 8% 6% 6% PGA Malayan BPI/MS P
Slide 70: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium Life APE -9% from Php3.8B to Php3.5B 19.33 -23% due to significant drop in single premium in Php Billion 14.98 16.50 RP +8% SP -59% 12.18 AXA -26% SP/RP mix 2.83 CPAIC -1% o New business: 25:75 to 11:89 2.79 o Premium income: 59:41 to 33:6
Slide 71: Strong synergy and growth
Strong synergy and growth • Exclusive financial advisors: 13,066 due to absorption of Charter Ping An • Total bancassurance (Metrobank and PSBank) branches: 957 • AXA branches nationwide: 68 Assets Under Management 106 +13 % 120 In Billion PHP 1H 2018 1H 2019 71
Slide 72: Metro Pacific Investments
PACIFIC Rs INVESTMENTS
Slide 73: 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 74: 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 75: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income (Core) Power 10.6 11.2 0.2 +5% oGBPC - Core NI Php1.2B -1% oMeralco - Core NI Php12.3B +14% in Php Billion 0.2 0.4 0.3 Logistics / Indra 2.1 2.3 LRMC/AFPI 2.3 2.4 Hospitals Toll Roads - Core NI Php2.4B +6% Maynilad/MWIC 5.8 6.1 MPTC
Slide 76: Philippine Administration Agenda
Philippine Administration Philippine Administration Agenda Agenda Continue Continue stable stable Increase PH’s Increase PH’s Relax Relax constitutional constitutional Increase Increase macroeconomic macroeconomic competitiveness competitiveness restrictions restrictions on on infrastructure infrast
Slide 77: Macroeconomic Indicators
Macroeconomic Indicators Benign inflation Foreign direct investments 1.7% USD3.5 billion 6M 2019 Month of Aug 2019 Gross international reserves Population USD85.6 billion 107.9 million 7.5 months of import cover External Debt-to-GDP 23.8% as of 1H 2019 Personal remittances of 11 million OFWs USD16.3
Slide 78: Macroeconomic Indicators
Macroeconomic Indicators First Half 2019 GDP Growth Components of GDP (%) As of 1H 2019 5.5% Still the fastest 20.0% Consumption among the 2.6% ASEAN-5 12.2% Government 67.8% 4.7% Investments 0.1% 5.1% Household Consumption +6% In USD Billion Year-on-Year GDP Per Capita in USD, nominal 114.6 115.4 1
Slide 79: Best Managed Bank in the Philippines
Best Managed Bank in the Philippines Chairman Arthur Ty CEO Leadership Achievement Award ASEAN Corporate Governance Scorecard is a Rated Company Best Triple Arrow One of the Top Philippine Companies for 2018 Investor Relations Company 79