First Pacific Co. Ltd. · HKEX:142
First Pacific — First Pacific Co Ord — FY2023 Earnings Presentation
42 slides from First Pacific's earnings presentation, Mar 27, 2024
Slide 1: Investor Presentation: Full-Year Financial & Operational Results 2023
Investor Presentation Full-Year Financial & Operational Results 2023 With Expanded Details of MPIC Units & PLDT’s Fintech Unit Maya HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 27 March 2024. All rights reserved. in Asia
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 $5.2 Billion
Gross Asset Value of $5.2 Billion Diversified Investments, Strong Returns 1 o Balanced weighting of mature and growth Philex rs investments & othe $314 o Balanced weighting of different sectors ml n o Investment geography limited to the fast- (6%) growing markets of emerging Asian economies o 20 yea
Slide 4: Earnings & Dividend Income Rise to Record Highs … Again
Earnings & Dividend Income Rise to Record Highs … Again FY 2023 Recurring Profit Rises 19% to Record Change in Recurring Profit (USD mln) 650 19.2 9.5 603.8 o Turnover rose 2% to a record high $10,510.7 million, led by 600 36.5 PacificLight Power (PLP) and MPIC 550 55.4 o Contribution from operation
Slide 5: Investment Grade Ratings & ICR of 4.4x at end-2023
Investment Grade Ratings & ICR of 4.4x at end-2023 Head Office Borrowings at End-2023 (USD mln) Record High Dividend Income & Investment Grade 500 o Record high cash dividend income of $324 million 400 420 o Interest coverage ratio 4.4x well above “comfort level” 400 o Gross debt $1.48 billion, net
Slide 6: 2023 Market Performance & Peer Comparison
2023 Market Performance & Peer Comparison 2023 Market Performance Parallels Financial Results 33% o 2023 was FPC’s best year ever in many ways, with record high earnings and dividend income building a strong foundation for o growth 142.HK rose 33% in 2023 from HK$2.33 to HK$3.11 and is up a 4.8 x 10
Slide 7: 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 250 from the Company’s elec
Slide 8: Indofood: Sales, Core Profit Continue to New Highs
Sales, Core Profit Continue to New Highs FY 2023 Financial Highlights Net Sales & Core Profit (USD mln) 8,000 o Net sales rose 1% to record high IDR111.7 trillion vs. 110.8 6,926 7,430 7,338 7,000 trillion on sales growth led by CBP and Distribution divisions 6,000 5,414 5,583 o EBITDA was flat at I
Slide 9: ICBP: Sales, Core Profit at Record Highs
Sales, Core Profit at Record Highs FY 2023 Financial Highlights Net Sales & Core Profit (USD mln) 5,000 o Net sales rose 5% in Rupiah terms to a record high IDR67.9 4,500 4,344 4,461 trillion vs. IDR64.8 trillion on growth led by Noodles, Snack 4,000 3,960 Foods, and Food Seasonings 3,500 2,990 3,18
Slide 10: Sales by Division & Geography
Sales by Division & Geography Change in External Sales (IDR bln) External Sales by Division (IDR bln) 113,000 112,000 292 101 89 29 111,704 FY22 FY23 Change Share 724 111,000 110,830 Noodles 46,480 49,535 6.6% 44.3% 3,055 110,000 Dairy 9,244 8,994 -2.7% 8.1% Snack Foods 3,906 4,198 7.5% 3.8% 8.8 x 1
Slide 11: 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 12: MPIC: 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 47.5% 52.8% 36% 23 Hospitals 100% 100% 6 Radiotherapy 100% Centers Philippine 50% Coastal Storage § Largest private hospital network in 100% 58% the Philippines § MPTC operates and § Ma
Slide 13: 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 2H 2023 First Pacific and other investors delisted and privatized MPIC MIG at a valuation of $2,963.2 million o The price paid to minority share
Slide 14: MPIC Companies Deliver Record Highs After Privatization
MPIC Companies Deliver Record Highs After Privatization 100 FY 2023 Financial Highlights End-Year Debt (PHP bln) 90 81.5 76.8 73.6 o Contribution from investee companies rose 29% to a record high ₱24.5 billion vs. 80 ₱18.9 billion on contribution growth led by power and water 70 62.6 60 o Core profi
Slide 15: Meralco: Distribution Drives Earnings to Record High
Distribution Drives Earnings to Record High FY 2023 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Profit (USD mln) 1,600 o Gross revenues rose 4% to highest-ever ₱443.6 billion vs. ₱426.5 1,400 1,278 1,223 1,284 1,244 billion driven largely by 17% increase in distribution reve
Slide 16: 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 o MGen to take 60% stake in Chromite Gas Holdings (CGHI) Philippines New Energy Corporation (SPNEC.PM) for ₱15.9 with Therma N
Slide 17: 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 4.9 x 13.2 400 359 354 300 274 200 100 102 1.3 x 3.5 54 79 105 105 0 2019 2020 2021 2022 2023 Revenues Core Profit FY 2023 Financial Highlights & Outlook: Toll Roads o Revenues rose 19% to record ₱27.2 bi
Slide 18: 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 3.8 x 11.3 o MPTC owns 76.3% of Nusantara Infrastructure in Indonesia 10,000 5,000 12.8 x 3.8 0 o F
Slide 19: Water Earnings Rise Sharply on Higher Tariffs
Water Earnings Rise Sharply on Higher Tariffs FY 2023 Financial Highlights & Outlook: Water Revenues & Core Profit (USD mln) 500 465 463 492 o Maynilad revenues rose 19% to record high ₱27.3 billion vs. 450 445 420 ₱22.9 billion as a result of higher effective tariffs and billed 400 volume 350 o Cor
Slide 20: Healthcare Business & Light Rail Manila
Healthcare Business & Light Rail Manila Light Rail Traffic Surges, Slashing Core Loss Health Revenues Rise 22% on Higher Patient Count o LRMC revenues rose 40% to ₱2.5 billion vs. ₱1.8 billion o The rebranded hospitals business “Metro Pacific Health” on 36% increase in daily ridership to 298,740 saw
Slide 21: PLDT: Data Drive Revenues and EBITDA to Record Highs
Data Drive Revenues and EBITDA to Record Highs FY 2023 Financial Highlights Service Revenues# & Telco Core Profit (USD mln) 4,000 3,633 o Service revenues# rose 3% to a record high ₱201.8 3,508 3,763 3,586 3,129 billion with all three main businesses delivering 3,000 increases o EBITDA* rose 4% to a
Slide 22: Individual Business Leads Growth
Individual Business Leads Growth Individual Business Sees Surge in Data Usage Individual Revenue Split (PHP bln) 25.0 o FY 2023 Individual service revenues rose 2% to ₱81.8 billion while 4Q figure of ₱21.2 billion was highest in two years 20.0 o 4Q23 postpaid service revenues rose 4%, prepaid rose 6
Slide 23: Philippines' Leading Digital Banking Platform
Philippines’ Leading Digital Banking Platform Number One Fintech Platform in the Philippines All-In-One Digital Banking App* o FY losses down to ₱2.2 billion vs. ₱3.2 billion in 2022 o PayMaya is now Maya with its own digital bank and (PLDT share is 38%, equal to ownership stake) crypto exchange o O
Slide 24: 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 2023 capex of ₱85.1 billion seen driving revenue growth and 2,000 50% supporting continuing increase in network traffic, down from 40% ₱96.8 billion in 2022 1,500 o Wireless ne
Slide 25: PacificLight Power: Record High Earnings & Net Debt Falls
Record High Earnings & Net Debt Falls by Two Thirds FY 2023 Highlights Show Record Highs Revenue & Core Profit (USD mln) 2,500 o Revenue rose 13% to record high S$2,723.2 million vs. 2,029 S$2,408.0 million on the strength of higher sales volumes 2,000 1,748 o EBITDA up 37% to highest-ever S$501.9 m
Slide 26: Philex: Silangan Mine Seen Opening in 2025
Silangan Mine Seen Opening in 2025 FY 2023 Financial Highlights Operating Revenues & Core Profit (USD mln) 250 o Operating revenue fell 15% to ₽8.6 billion vs. ₽10.1 billion on 212 lower metal production and lower copper prices 200 o Cash production costs rose 16% to ₱760/ton vs. ₽655/ton 171 185 la
Slide 27: Appendix
Appendix Shareholder Information Selected Financial Data 27
Slide 28: Adjusted NAV per Share
Adjusted NAV per Share At At Basis 31 December 31 December US$ millions 2022 2023 Indofood (i) 1,879.3 1,839.3 PLDT (i) 1,304.8 1,276.1 MPIC (ii) 811.0 1,371.0 FPM Power/PacificLight Power (iii) 150.0 370.0 Philex (i) 145.6 154.8 PXP Energy (i) 76.4 39.6 Head Office - Other assets (iv) 144.6 139.2 -
Slide 29: Differing Perspectives on NAV per Share
Differing Perspectives on NAV per Share How to Value MPIC? At Considering Considering o First Pacific values its 31 December CLSA’s Six Analysts’ 46.3% of MPIC at its US$ millions 2023 MPIC Valuation MPIC Valuation* privatization valuation Indofood 1,839.3 1,839.3 1,839.3 o CLSA uses the market PLDT
Slide 30: Contribution & Profit Summary
Contribution & Profit Summary Contribution to Turnover Group profit(i) For the year ended 31 December 2022 2023 2022 2023 US$ millions Indofood 7,429.8 7,338.4 265.8 285.1 PLDT (ii) - - 133.7 143.2 MPIC 934.1 1,103.8 104.4 159.8 FPM Power/PLP 1,747.6 2,029.2 82.4 118.8 Philex(ii) - - 13.4 7.6 FP Nat
Slide 31: Head Office Debt & Cash Flow
Head Office Debt & Cash Flow Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2023 1,459.0 (96.6) 1,362.4 Movement 7.8 25.7 33.5 At 31 December 2023 1,466.8 (70.9) 1,395.9 Head Office cash flow For the year ended 31 December 2022 2023 US$ millions Dividend and fee income 225.9
Slide 32: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 31 December 2022 At 31 December 2023 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt/(Cash)(i) Equity (times) Head Office 1,362.4 1,139.5 1.20x 1,395.9 976.1 1.43x Indofood 2,549.7 5,834.0 0.44x 2,327.1 6,340.9 0.37x MPI
Slide 33: Revenue Breakdown by Geography & Sector
Revenue Breakdown by Geography & Sector Consumer Food Products (USD mln) 2019 2020 2021 2022 2023 Change Indonesia 4,817.5 4,736.7 5,367.9 5,710.0 5,649.0 -1.1% Philippines 241.1 173.2 122.7 219.7 61.1 -72.2% Singapore 51.9 51.7 204.3 141.8 128.4 -9.4% Middle East, Africa & Others 521.3 772.4 1,331.
Slide 34: 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 35: Proven Track Record in the Capital Markets
Proven Track Record in the Capital Markets o Diversified and unsecured funding $152 mln bond tender $215 mln Bond strategy to maintain optimal debt ($69 mln of 2010 7-yr) Redemption capital structure ($83 mln of 2010 10-yr) (2012 7-yr) o First Pacific has issued a total of six bonds totaling over $2
Slide 36: 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 37: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Minority Shareholders Mln Shares % Stake 1 Brandes Investment Partners 290 6.8% 2 Lazard Asset Management 121 2.9% 3 Capital International 90 2.1% 4 JG Summit & Gokongwei family 79 1.9% All 5 The Vanguard Group 79 1.9% 6 Letko, Brosseau & A
Slide 38: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Concentration Directors’ Interests Unvested Vested Share Shares The Share Awards Options Rest Anthoni Salim NED, Chairman 1,925,474,957 - - 15% Top 10 Manuel Pangilinan ED, CEO 70,493,078 - - Next 256.5 x48% 6.5 of all shares Chris Young ED 6.
Slide 39: FPC's Economic Interest in Holdings
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% 35.3% 50.9% 9.3% 16.6% 46.2% 42.4% 46.2% Data as at 31 December 2023. 39
Slide 40: Notes
Notes 40
Slide 41: 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 42: 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 WeChat ID: firstpacific-142hk firstpacific.com