First Pacific Co. Ltd. · HKEX:142
First Pacific — H1 2021 Earnings Presentation
31 slides from First Pacific's earnings presentation, Aug 25, 2021
Slide 1: Investor Presentation First Half 2021 Results
Investor Presentation First Half 2021Results HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 25 August 2021. All rights reserved. inAsia
Slide 2: Consumer Foods, Infrastructure, Natural Resources, Telecommunications
Consumer Foods Infrastructure Natural Resources Telecommunications First Pacific has an First Pacific holds an First Pacific has an First Pacific holds an economic interest of economic interest of economic interest of economic interest of 50.1% in Indofood, 43.4% in MPIC, 19.6% in 31.2% in Philex an
Slide 3: Earnings Rise, Dividend Up, Share Repurchases Continue
Earnings Rise, Dividend Up, Share Repurchases Continue Recurring Profit Rises 38% & Interim Distribution 1H21 Recurring Profit (USD mln) 240 Jumps 2.0 HK cents to 9.0 HK cents per share 220 4.6 209.5 4.7 5.5 o Indofood and PLDT delivered their highest-ever first-half 200 6.0 8.7 revenues on lockdown
Slide 4: Prudent Capital and Balance Sheet Management
Prudent Capital and Balance Sheet Management Head Office Balance Sheet as of end-June 2021 Bonds Outstanding o Gross debt $1.4 billion, gross debt cover 3.8x o Net debt $1.3 billion, net debt cover 4.0x Principal 4.0 x 12.0 Coupon Price* Term Maturity Net Debt to GAV ratio at 27%, Gearing at 80% US$
Slide 5: 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 6: Gross Asset Value of $4.91 Billion
Gross Asset Value of $4.91 Billion Diversified Investments, Strong Returns Roxas Holdings $22 mln (0.4%) o Balanced weighting of mature and Philex growth investments Group* o Balanced weighting of different sectors $495 mln o 17 years of growth: Gross Asset Value (10%) grew at a compound annual grow
Slide 7: UNPRI, UNGC & ILO Among New Commitments
UNPRI1, UNGC2 & ILO3 Among New Commitments New Commitments to Global Standards Proxy Advisor Ratings o First Pacific’s formal Responsible Investment Policy implements the six United Nations Principles of Responsible Investment1 HS Sustainability Benchmark Index AA- 1st Decile o The Company has signe
Slide 8: Covid-19 Response
Covid-19 Response First Pacific Has Stress-Tested Operations & Liquidity Indofood Is Gearing up to Help Those in Need o The Covid-19 pandemic has coincided with greater o In a practice it has followed for many years when demand for many of the products and services provided Indonesia faces natural d
Slide 9: Noodles Lead Earnings to Record High
Noodles Lead Earnings to Record High 1H 2021 Financial Highlights Net Sales & Core Profit (USD mln) o Net sales rose 20% to record high IDR47.3 trillion vs. IDR39.4 trillion 6,000 5,136 5,414 5,583 on sales growth at Consumer Branded Products division followed by 5,000 the Agribusiness, Bogasari flo
Slide 10: Sales, EBITDA, Profit Reach Record Highs
Sales, EBITDA, Profit Reach Record Highs 1H 2021 Financial Highlights Net Sales & Core Profit (USD mln) 3,500 3,186 o Net sales rose 22% in Rupiah terms to a record high 2,990 3,000 IDR28.2 trillion vs. IDR23.0 trillion on growth led by 2,688 Noodles, driven by inclusion of sales by Pinehill followi
Slide 11: Data Drive Revenues to Record, Core Profit Up
Data Drive Revenues to Record, Core Profit Up 1H 2021 Financial Highlights Service Revenues# & Telco Core Income (USD mln) 4,000 o Service revenues# rose 10% to record high 3,508 3,129 ₱91.6 billion due to higher data and 3,000 2,892 broadband revenues in wireless and fixed line 6.1 x 12.9 1,651 1,8
Slide 12: Home Business Leads Growth
Home Business Leads Growth Individual Business Leads Growth in Mobile Data Revenue Sources (PHP bln) Surge o 1H 2021 Individual service revenues rose 7% to ₱43.8 billion, now 49% of service revenues o Individual business seen continuing strong revenue growth Data & B’band ₱68.3 7.0Services x 11.0 Da
Slide 13: Industry Observers Agree Which Provider Is Best
Industry Observers Agree Which Provider Is Best PLDT Network Is the Country’s Best, Say Observers Integrated Fixed & Wireless Network Architecture o Independent industry observers agree PLDT’s customer o Demand-driven 2021 capex budget of ₱88-92 billion to be experience is the market’s best in both
Slide 14: Electricity, Toll Roads, Water, Hospitals
Electricity Toll Roads Water Hospitals Others 46% stake 45%-100% stakes 53%-100% stakes 20% 20%-99% stakes 45.5% 18 Hospitals 5 Radiotherapy Centers 100% § Largest healthcare 36% provider in the Philippines § Present in all major § Maynilad is the island groups Philippine 100% largest water utility
Slide 15: Core Profit Rebounds on Toll Road Turnaround
Core Profit Rebounds on Toll Road Turnaround 1H 2021 Financial Highlights Earnings Growth and Sustainability Commitment o Contribution from operating companies rose 11% to o 2021 earnings seen rising as gradual exit from ₱8.5 billion vs. ₱7.7 billion on higher contributions community quarantine with
Slide 16: Earnings Rise as First Solar Plant Launched
Earnings Rise as First Solar Plant Launched 1H 2021 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Income (USD mln) 1,600 o Distribution revenues rose 7% to ₱31.5 billion vs. 1,400 1,278 ₱29.5 billion on 7% higher volumes sold 1,177 1,223 o Core EBITDA up 52% on higher revenues
Slide 17: Toll Roads Earnings Surge on Traffic Growth
Toll Roads Earnings Surge on Traffic Growth 1H 2021 Financial Highlights & Outlook: Toll Roads Revenues & Core Income (USD mln) 400 359 o Revenues rose 36% to ₱8.3 billion on eased quarantine 350 294 restrictions 300 274 o Core income rose more steeply, doubling to ₱1.9 250 billion vs. ₱922 million
Slide 18: Profit Leaps on Surging Copper Prices
Profit Leaps on Surging Copper Prices 1H 2021 Financial Highlights Operating Revenues & Core Income (USD mln) 200 158 o Operating revenue rose 29% to ₽4.7 billion vs. 143 171 150 ₽3.7 billion as a result of a surge in the average realized price of copper and higher gold price, offset in part by a st
Slide 19: Appendix
Appendix Shareholder Information Selected Financial Data 19
Slide 20: 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 21: Adjusted NAV per Share
Adjusted NAV per Share At At 30 June 31 December 2021 2020 US$ millions Basis Indofood (i) 1,872.7 2,143.9 PLDT (i) 1,463.8 1,541.5 MPIC (i) 1,054.0 1,178.5 Philex (i) 301.5 235.2 PXP (i) 90.2 127.3 FP Natural Resources (ii) 21.5 27.2 Head Office - Other assets (iii) 103.3 104.9 - Net debt (1,300.2)
Slide 22: Contribution & Profit Summary
Contribution & Profit Summary Contribution to Turnover Group profit For the six months ended 30 June 2021 2020 2021 2020 US$ millions (Restated) Indofood 3,293.4 2,671.4 122.9 93.8 PLDT - - 71.2 62.5 MPIC 448.5 394.5 49.9 44.4 Philex - - 6.9 2.2 FPM Power 412.9 253.9 2.8 (1.8) FP Natural Resources 7
Slide 23: Head Office Net Debt & Cash Flow
Head Office Net Debt & Cash Flow Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2021 1,430.9 (111.4) 1,319.5 Movement 1.3 (20.6) (19.3) At 30 June 2021 1,432.2 (132.0) 1,300.2 Head Office cash flow For the six months ended 30 June 2021 2020 US$ millions Dividend and fee inco
Slide 24: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 30 June 2021 At 31 December 2020 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,300.2 1,451.6 0.90x 1,319.5 1,621.2 0.81x Indofood 2,466.3 5,731.6 0.43x 2,548.1 5,598.2 0.46x MPIC 3,731.0
Slide 25: Proven Track Record in the Capital Markets
Proven Track Record in the Capital Markets $152 mln bond tender $215 mln Bond ($69 mln of 2010 7-yr) Redemption Over a Decade of Strong Market Performance ($83 mln of 2010 10-yr) (2012 7-yr) o First Pacific has issued a total of six bonds totaling over $2 billion in the decade from 2010 $220 mln bon
Slide 26: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Minority Shareholders Mln Shares % Stake 1 Brandes Investment Partners 322 7.4% 2 Lazard Asset Management 139 3.2% 3 GIC Asset Management 110 2.5% 4 Seafarer Capital Partners 97 2.2% All 5 Letko, Brosseau & Associates 87 2.0% Others 6 Dimen
Slide 27: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Turnover Total Interest of Directors Unvested Shares Options Share Awards Anthoni Salim NED, Chairman 1,925,474,957 - - Not Stated Manuel Pangilinan ED, CEO 70,493,078 - - Low 34% 6.5 x 6.5 57% Chris Young Axton Salim ED, CFO NED 6.5 6,774,906
Slide 28: First Pacific's Economic Interests
FPC’s FPC’s Economic Economic 25.6% 25.6% Interest Interest 43.4% (%) (%) 50.1% 19.7% 40.3% 19.7% 40.3% Pinehill 53.4% 43.4% 35.9% 22.9% 29.9% 19.5% 17.8% 43.4% 13.0% 33.1% 50.8% 8.7% 15.5% 46.2% 42.4% 46.2% 28
Slide 29: Notes
Notes 29
Slide 30: 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 31: 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 4306 Email us at info@firstpacific.com firstpacific.com 31
First Pacific Company — H1 2021 Earnings Presentation on 6ix