Gt Capital Holdings, Inc. · PSE:GTCAP
Gt Capital — 9M 2019 Earnings Presentation
78 slides from Gt Capital's earnings presentation, Nov 26, 2019
Slide 1: Investor Presentation Nine Months 2019
Investor Presentation November 2019 Nine Months 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: GT Capital Group Financial Highlights 9M 2019
GT Capital Group Financial Highlights 9M 2019 Consolidated Net Income +40% Php15.3 billion* (MBT +29%, FLI +10% , TMP +13% , TMBC +30%) Php10.9 billion 9M 2018 Php12.4 billion Core Net Income (FV adjustments for MBT, MPI, PCFI, TMP, TMBC, +20% Php10.3 billion 9M 2018 Gain on disposal PCFI) Php159.1
Slide 13: GT Capital Consolidated Core Net Income Comparative
GT Capital Consolidated Core Net Income Comparative 1Q 2018 vs. 1Q 2019 2Q 2018 vs. 2Q 2019 3Q 2018 vs. 3Q 2019 FLI -23% TMP -24% -6% FLI +39% TMP +22% +24% FLI +7% TMP +48% +43% MBT +15% MBT +22% MBT +49% TMBC -22% TMBC +17% TMBC +114% MPIC +0.3% MPIC +1% MPIC +7% AXA Life +50% GI >100% AXA Life -6
Slide 14: GT Capital Net Income Contribution 9M 2019
GT Capital Net Income Contribution 9M 2019 AXA TFSPH TMBC TFSPH TMBC 2.0% 0.6% AXA 4.1% 1.4% 0.6% 3.3% TMP MPIC MPIC TMP 25.1% 14.7% 11.9% 24.4% FLI FLI 6.8% 7.2% MBT MBT 46.1% 51.1% MBT + TMP = 71.2% MBT + TMP = 75.5% 9M 2018 9M 2019 14
Slide 15: GT Capital Net Income Contribution by Sector
GT Capital Net Income Contribution by Sector \ Insurance Insurance 4.1% 2.7% Auto Infrastructure Auto FLI Infrastructure 9.8% 21.9% 14.7% 27.9% 5.6% Property 7.2% Gain on PCFI Redemption 18% Banking Banking 41.9% 46.1% Banking + Auto = 74.0% Banking + Auto = 63.8% 9M 2018 9M 2019 *Property includes
Slide 16: Metrobank
il ih & Metrobank
Slide 17: 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 18: Peer Banks Highlights
Peer Banks Highlights Net Interest Margin – NIMs (%) Total Loans (Php Billion) +3 bps +10% industry growth 4.1% 3.9% 3.3% +7% +7% +8% 2,141 1,412 1,372 BDO MBT BPI BDO MBT BPI CASA Deposits (Php Billion) Total Assets (Php Billion) +4% industry growth +10% industry growth +6% 1,745 -2% +5% +6% +10% +
Slide 19: 9M 2019 Peer Banks Highlights
9M 2019 Peer Banks Highlights Net Interest Income (Php Billion) NII less Opex (Php Billion) +10% 13.3 88.5 11.6 56.2 48.7 2.6 BDO MBT BPI MBT BPI BDO Cost-to-Income Ratio (In %) NII to Total Revenue (%) -300bps 64.7 54.1 52.0 70.3% 68.5% 66.7% BDO MBT BPI MBT BPI BDO Source: 17Q Report, Investor Pre
Slide 20: Peer Banks Highlights
Peer Banks Highlights Total Equity (Php Billion) Total Capital Adequacy Ratio and CET1 (%) CAR CET1 +10% 362 17.6% 16.8% 16.3% 15.9% 305 14.6% 268 13.1% 10.5% min CET1 BDO MBT BPI MBT BDO BPI Source: 17-Q Report of Banks as of 30 September 2019 20
Slide 21: Credit demand driven by solid economic growth
Credit demand driven by solid economic growth Loan Portfolio (PHP Billion) Total Loan Portfolio Breakdown Commercial Consumer +7% 24% +5% 24% 1,412 76% +7% 76% 1,326 9M 2018 9M 2019 Consumer Loan Portfolio Breakdown Credit Cards Auto 24% 43% 32% Home 9M 2018 9M 2019 21
Slide 22: Consistent earnings growth
Consistent earnings growth 9M 2019 Operating Highlights 9M 2019 Net Income (Php bn) +29% Results are well-within expectations • Php21.6 bn net income, +29% YoY 21.6 oSustained earnings growth on the back of quality performance drivers 16.8 Positive results for all growth drivers • Loan growth +7% fr
Slide 23: Healthy deposit growth while CASA maintained above 60%
Healthy deposit growth while CASA maintained above 60% Deposit Base CASA Ratio CASA Deposit Balance CASA TD Total Deposit 1,542 +2% 1,577 572 38% 36% 587 CASA 955 1,005 62% 64% +5% 9M 2018 9M 2019 9M 2018 9M 2019 23
Slide 24: Sustained NIM expansion
Sustained NIM expansion Net Interest Margin (NIM) MBT UKB Pricing strategy anchored on profitability 3.88% 3.91% NIMs consistently above industry and sustained at same level 3.38% • +3 bps vs. 9M 2018 3.11% NIM drivers • Reduction in funding cost faster than drop in loan yields • CASA ratio improved
Slide 25: Recurring revenue growth outpacing costs
Recurring revenue growth outpacing costs NII Less OPEX NII growth outpacing costs • NII growth 10% vs. 9% OPEX growth NII less OPEX metric most favorable vs peers • Traditional banking revenues more 51.0 56.2 +14% than cover for operating expenses In Php Billion 11.7 13.3 88.5 71.5 8.8 11.6 2.7 40.9
Slide 26: Improving efficiency ratios
Improving efficiency ratios Cost Income Ratio (CIR) Realizing efficiency gains • CIR dropped from 58% to 54% 58% Cost growth slowest vs peers • Branch network relatively flat at 957 • Lower cost-to-serve and push for use of online channels Total OPEX (PHP bn) 54% 39.3 42.9 9M 2018 9M 2019 9M 2018 9M
Slide 27: Asset quality better than industry
Asset quality better than industry NPL Ratio MBT UKB Prudent balance sheet buildup 1.60% • Modest portfolio growth without 1.52% compromising credit standards and asset quality 1.36% 1.16% Better-than-industry NPL ratio Provisions for credit and impairment losses at Php7.8 bn • Estimated credit cost
Slide 28: Summary
Summary Credit demand driven by solid economic growth Healthy deposit growth, with a CASA ratio above 60% Downward interest rates support NIM expansion Recurring revenue growth outpacing costs Improving Operating Ratios Asset quality better than industry 28
Slide 29: GT Capital Holdings Incorporated
GT CAPITAL HOLDINGS INCORPORATED
Slide 30: CARS Incentives
Comprehensive Auto Resurgence Strategy (CARS) Implementing Rules and Regulations – 23 December 2015 Incentives 30
Slide 31: 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 32: 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 33: 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 34: 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) Oct 2019 Dec 2018 37,958 June 2019 11,336 Sept 2018 March 2019 26,933 Aug 2018 3,503 18,423 Within CARS sales 1,658 volume commitment Introduction of FMC Vios July 2018 22
Slide 35: 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. 35
Slide 36: 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 37: Still Top: 2018 Global Toyota Sales 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 38: Retail auto unit sales volume
Retail auto unit sales volume As of September 2019 YTD In Units Industry factors: Industry o Signs of recovery due to easing inflation, 292,364 297,263 ▲ %2 declining interest rates, and rebound in consumer confidence Y-o-Y 109,402 9M 2019 results: 114,117 Toyota o Driven by Vios and Innova sales gr
Slide 39: Retail auto unit sales volume
Retail auto unit sales volume As of October 2019 YTD In Units 10M 2019 results: o Reduced the backlog on Alphard 130,520 Toyota and Land Cruiser o Highest unit sales for the year in 124,329 ▲ %5 October 2019 (16,403 units) Y-o-Y o Record-high Vios monthly unit 10M 2018 10M 2019 sales 3,238 Toyota o
Slide 40: Auto Industry Market Share
Toyota is still PH‟s dominant auto brand Auto Industry Market Share As of September 2019 YTD Passenger Car Commercial Vehicle 42% in 9M 39% in 1Q 37% in 9M 33% in 1Q 45% in 2Q 39% in 2Q 42% in 3Q 39% in 3Q 30.9% of total market 69.1% of total market 33.6% of Toyota sales 66.4% of Toyota sales 16% 16
Slide 41: Overall Market Share
Toyota is still PH‟s dominant auto brand Overall Market Share As of September 2019 YTD 35% in 1Q 41% in 2Q 40% in 3Q 38% in 9M19 24,243 Unit difference No.1 No.1 No.1 Passenger Commercial Overall 16% Car Sales Vehicle Sales Sales 11% 9% 6% 6% 5% MITSUBISHI 3% NISSAN 2% HYUNDAI SUZUKI 1% FORD HONDA 0
Slide 42: 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 43: 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 44: TMP Financial Highlights
TMP Financial Highlights Revenues Wholesale volume +0.4% to 104,226 units; Retail volume +4.3% (vs 1.7% Industry volume) +2% 119.3 121.4 Retail Sales volume (year-to-date): in Php Billion o PCs: Vios +31%, Wigo -16% o CVs: Hilux +24%, Innova +16%, Fortuner -19%, Hiace -3%, Rush +50% 9M 2018 9M 2
Slide 45: New model launches
TOYOTA MOVING FORWARD New model launches July 2019 January 2019 Feb 2019: Commuter, GL Grandia, GL Grandia Tourer Aug 2019: Super Grandia September 2019 Full-model change and intro of Hybrid variant September 2019 Improvement and introduction of Hybrid variant 45
Slide 46: Dealership Expansion
Rising Together Dealership Expansion Target by end of year to 2014 New Heights 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 2021 20 20 VISAYAS 14 2020 15 2021 15 July 2019 Valenzuela MINDANAO 10 2
Slide 47: 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 48: Price Comparable by Category
Price Comparable by Category in Million Philippine Peso (PHP) In Million PHP Toyota Hyundai Honda Mitsubishi Model Camry Accord Price 1.821 2.022 1.938 Model Corolla Altis Elantra Civic Price 0.999 1.595 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 49: Price Comparable by Category in 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 19,211 30,673 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 50: 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 51: Federal Land
rh PRU Whe) Yt) | a ar . 7! ()FEDERAL LAND Gi> GT Capital Holdings GT CAPITAL 51 HOLDINGS INCORPORATED
Slide 52: 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 29K 21,600 26K 20,000 9M 10,000 2019A 0 2014 2015 2016 2017 2018 2019E 2020E 2021E Launches (Supply) Pre-sales
Slide 53: Office Supply and Demand
OFFICE SUPPLY AND DEMAND 9M19 office supply exceeds demand; 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% 6.2% 5.0% 5.3% 4.7% 1.2 4.0% 3.0% GLA in Mn SQM 1 0.8 0.6 0.4 9M 2019A 0.2 0 2013 2014 2015 2016 2017 2018 2019E 2020E
Slide 54: Federal Land Financial Highlights
Federal Land Financial Highlights • Reservation sales +85% from Php8.9B to Revenues Php16.5B -13% – Launched 4 new projects: The Estate, Mi- 10.6 Casa, Quantum Amethyst, Marco Polo Park 9.2 2.7 Place in Php Billion – Real estate sales (exc. lot sale Php2.7B) 7.9 +15% +15% from Php6.1B to Php7.0B due
Slide 55: 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 56: 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) 57
Slide 57: 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 58: Infrastructure projects and target completion dates
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 59: 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 60: 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% 61
Slide 61: 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 62: 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 63: GT Capital Holdings Incorporated
GT CAPITAL S INCORPORATED
Slide 64: 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 65: Insurance Industry Updates: Industry Premium Income - Life
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 66: 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 67: 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 68: AXA Philippines Financial Highlights
AXA Philippines Financial Highlights Gross Premium Life New Business -7% from Php5.6B to Php5.2B -19% dragged by low SP sales due to market 28.05 volatility 23.44 in Php Billion Growth in Protection & Health line +34% (Now 20% of premium revenues) 23.78 19.26 AXA -19% ■ Regular Premium (RP) +6
Slide 69: Strong synergy and growth
Strong synergy and growth • Exclusive financial advisors: 6,615 vs 5,272 in 1H 2019 • Total bancassurance (Metrobank and PSBank) branches: 957 • AXA branches nationwide: 65 Assets Under Management 111 +6% 118 In Billion PHP 9M 2018 9M 2019 70
Slide 70: Metro Pacific Investments
PACIFIC Ds INVESTMENTS
Slide 71: 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 72: 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 73: Metro Pacific Financial Highlights
Metro Pacific Financial Highlights Share in Operating Net Income Power 15.4 16.4 +6% oMeralco - Core NI Php18.5B +11% in Php Billion 0.2 0.3 0.6 0.7 3.2 Energy sales +6% 3.0 3.7 3.3 Logistics / Indra LRMC/AFPI oGBPC - Core NI Php2.0B +3% Hospitals 8.5 9.0 Maynilad/MWIC MPTC Toll Roads - Core NI
Slide 74: Philippine Administration Agenda
Philippine Administration Philippine Administration Agenda Agenda Continue Continue stable stable Increase Increase PH’s PH’s Relax Relax constitutional constitutional Increase Increase macroeconomic macroeconomic competitiveness competitiveness restrictions restrictions on on infrastructure infrast
Slide 75: Macroeconomic Indicators
Macroeconomic Indicators Benign inflation Foreign direct investments 0.8% USD4.5 billion 8M 2019 Month of Oct 2019 Gross international reserves Population USD85.7 billion 108.3 million 7.5 months of import cover External Debt-to-GDP 23.8% as of Aug 2019 Personal remittances of 11 million OFWs USD22.
Slide 76: Macroeconomic Indicators
Macroeconomic Indicators Third Quarter 2019 GDP Growth Components of GDP (%) As of 9M 2019 6.2% Still the fastest 27.0% Consumption among the 0.1% ASEAN-5 11.0% 62.0% Government 4.4% Investments 0.1% 5.0% Household Consumption +9% In USD Billion Year-on-Year GDP Per Capita in USD, nominal 114.6 115.
Slide 77: Our Outlook for Growth
Our Outlook for Growth Rebounding Favorable GDP growth exchange rate Pickup in loan Continued strong Benign growth in 4Q margins Stronger consumer inflation confidence Broader coverage Improvement in POC Lower Completion of projects Increased Interest rate infrastructure environment spending 78
Slide 78: 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