First Pacific Co. Ltd. · HKEX:142
First Pacific — Q1 2022 Earnings Presentation
34 slides from First Pacific's earnings presentation, Jun 11, 2022
Slide 1: Investor Presentation Including 1Q 2022 Results of Investee Companies
Investor Presentation Including 1Q 2022 Results of Investee Companies HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 11 June 2022. All rights reserved. inAsia
Slide 2: Consumer Food Products, Telecommunications, Infrastructure, Natural Resources
Consumer Food Telecommunications Infrastructure 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, 25.6% in PLDT which in 44.0% in MP
Slide 3: Earnings Rise to Record, FY Distribution Up 31%
Earnings Rise to Record, FY Distribution Up 31% Recurring Profit Rises 33% to Record High & FY 2021 Recurring Profit (USD mln) 500 Distribution Up 4.5 HK cents to 19.0 HK cents/Share o Indofood and PLDT delivered their highest-ever revenues 450 400 24.3 7.1 x 13.3 11.3 8.6 4.2 1.0 426.5 11.0 on lock
Slide 4: Investment Grade Ratings From S&P and Moody's
Investment Grade Ratings From S&P and Moody’s Head Office Balance Sheet as of end-2021 Bonds Outstanding o Investment-grade issuer credit ratings from S&P and Moody’s(1) 4.0 x 12.0 Principal Coupon Price Term Maturity o S&P rating: BBB- with Stable outlook o Moody’s rating: Baa3 with Stable outlook
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 $5.2 Billion
Gross Asset Value of $5.2 Billion Diversified Investments, Strong Returns Roxas Holdings $18 mln (0.4%) Philex o Balanced weighting of mature and Group* growth investments $395 o Balanced weighting of different sectors mln o 18 years of growth: Gross Asset Value (8%) grew at a compound annual growth
Slide 7: 2021 ESG Report Introduces Indofood Coverage
2021 ESG Report Introduces Indofood Coverage 2021 ESG Report Extended to Include Indofood Proxy Advisor Ratings o With the publication of Indofood’s first Sustainability Report at end-May 2022 for fiscal 2021, First Pacific will publish its first- HS Sustainability Benchmark Index A+ 1st quartile ev
Slide 8: Core Profit at Record High Despite Margin Pressure
Core Profit at Record High Despite Margin Pressure 1Q 2022 Financial Highlights Net Sales & Core Profit (USD mln) 8,000 o Net sales rose 12% to record high IDR27.4 trillion vs. 6,926 IDR24.6 trillion on sales growth led by Consumer Branded 7,000 Products division; overseas sales now $370 million, or
Slide 9: Price & Volume Growth in Every Category
Price & Volume Growth in Every Category 1Q 2022 Financial Highlights Net Sales & Core Profit (USD mln) 4,500 o Net sales rose 14% in Rupiah terms to a record high 4,000 3,960 IDR17.2 trillion vs. IDR15.1 trillion on growth led by 3,500 3,186 Noodles, with Pinehill growing faster than expected 2,990
Slide 10: Data Drive Revenues to Record, Core Profit Up
Data Drive Revenues to Record, Core Profit Up 1Q22 Financial Highlights Service Revenues# & Telco Core Profit (USD mln) 4,000 o Service revenues# rose 5% to record high 3,508 3,763 3,000 2,892 3,129 ₱48.0 billion led by higher data and 3,000 broadband revenues in fixed line o EBITDA* rose 10% to rec
Slide 11: Home Business Leads Growth
Home Business Leads Growth Home Business Continues to Expand Fixed Wireless Revenue Sources (PHP bln) o 1Q 2022 Home service revenues rose 25% to ₱13.6 billion on surging new home broadband installations o Gross fiber installations up 303,000 in Q1 from end-2021, net additions of 213,000 connections
Slide 12: Maintained Leadership in Network Quality
Maintained Leadership in Network Quality 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 2022 capex budget of ₱85 billion (vs. earlier experience is the market’s best in both fix
Slide 13: Sale and Leaseback of Towers for ₱77 billion
Sale and Leaseback of Towers for ₱77 billion Sale and Leaseback of 5,907 Cell Towers Costs, Debt Reduced; Special Div to Shareholders o 2,934 towers to be sold to a unit of EdgePoint for ₱35 billion o Tower portfolios sold for attractive EV/EBITDA multiple of 20x o 2,973 towers to be sold to a unit
Slide 14: MPIC: Electricity, Toll Roads, Water, Hospitals
Electricity Toll Roads Water Hospitals Others 46% stake 45%-100% stakes 53%-100% stakes 20% stake 36%-100% stakes 45.5% 53% 36% 19 Hospitals 100% 100% 6 Radiotherapy 100% Centers 50% Philippine Coastal § Largest private Storage healthcare provider 100% 58% in the Philippines § MPTC operates and § Ma
Slide 15: Core Profit Rebounds on Toll Road Turnaround
Core Profit Rebounds on Toll Road Turnaround 1Q22 Financial Highlights Earnings Growth, Buybacks, and Sustainability o Contribution from investee companies rose 14% to o FY 2022 earnings growth from continuing economic ₱4.3 billion vs. ₱3.8 billion on higher contributions recovery leading towards hi
Slide 16: Earnings Rise; Renewables Grow
Earnings Rise; Renewables Grow 1Q22 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Profit (USD mln) 1,600 o Distribution revenues rose 6% to ₱15.3 billion vs. 1,400 1,284 ₱14.4 billion on 6% higher volumes sold 1,278 1,223 1,183 1,177 1,200 o Core profit rose 10% to ₱5.6 billio
Slide 17: Toll Roads Earnings Surge on Traffic Growth
Toll Roads Earnings Surge on Traffic Growth 1Q22 Financial Highlights & Outlook: Toll Roads Revenues & Core Profit (USD mln) 400 359 354 o Revenues rose 15% to ₱4.8 billion on eased quarantine 350 294 restrictions allowing traffic growth, and higher toll rates 300 260 274 o Core profit rose more ste
Slide 18: Swing to Profit & New Solar Project
Swing to Profit & New Solar Project 2021 Financial Highlights Recent P&L (USD mln) 1,400 o PLP improved its financial performance in 2021 as electricity 1,200 1,194 demand in Singapore continued its recovery from the COVID-19 1,000 lows of 2020 to reach an all-time high in 2021 (see line chart below
Slide 19: Profit Rises to 10-Year High on Copper Price
Profit Rises to 10-Year High on Copper Price 1Q22 Financial Highlights Operating Revenues & Core Profit (USD mln) 250 198 212 o Operating revenue rose 24% to ₽10.5 billion vs. 200 171 158 ₽8.5 billion as a result of a surge in the average 143 realized price of copper and higher gold price, offset in
Slide 20: Summary
Summary Indofood Earnings Seen Continuing Strong PLDT Sees Home Leading Growth o Earnings growth seen continuing in 2022 and o Continuing strong demand growth for residential beyond on strong demand growth in Pinehill fiber broadband leads to the Home business markets supported by growing appetite f
Slide 21: Appendix
Appendix Shareholder Information Selected Financial Data 21
Slide 22: COVID-19 Response
COVID-19 Response First Pacific Has Stress-Tested Operations & Liquidity Indofood Is Helping 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 disaster, In
Slide 23: Adjusted NAV per Share
Adjusted NAV per Share At At 31 March 31 December 2022 2021 US$ millions Basis Indofood (i) 1,820.4 1,948.7 PLDT (i) 1,974.7 1,962.8 MPIC (i) 970.9 1,011.2 Philex (i) 237.6 243.8 PXP Energy (i) 59.8 67.0 FP Natural Resources (ii) 18.2 14.6 Head Office - Other assets (iii) 97.4 98.8 - Net debt (1,360
Slide 24: Contribution & Profit Summary
Contribution & Profit Summary Contribution to Turnover Group profit(i) For the year ended 31 December 2020 2021 2020 2021 US$ millions Indofood 5,583.1 6,925.9 194.4 237.0 PLDT(ii) - - 134.9 139.1 MPIC 825.5 882.5 84.8 98.1 Philex(ii) - - 8.0 19.3 FPM Power 571.0 1,194.5 (2.5) 21.8 FP Natural Resour
Slide 25: Head Office Debt & Cash Flow
Head Office 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 4.3 (1.6) 2.7 At 31 December 2021 1,435.2 (113.0) 1,322.2 Head Office cash flow For the year ended 31 December 2020 2021 US$ millions Dividend and fee income 189
Slide 26: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 31 December 2020 At 31 December 2021 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,319.5 1,621.2 0.81x 1,322.2 1,336.5 0.99x Indofood 2,548.1 5,598.2 0.46x 2,263.2 5,998.2 0.38x MPIC 3,7
Slide 27: 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 $220 mln bond ten
Slide 28: Senior Management of First Pacific
Senior Management of First Pacific Joseph H.P. Ng Christopher 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.
Slide 29: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Minority Shareholders Mln Shares % Stake 1 Brandes Investment Partners 310 7.3% 2 Lazard Asset Management 137 3.2% 3 Capital International 114 2.7% 4 Letko, Brosseau & Associates 81 1.9% All 5 Dimensional Fund Advisors 75 1.7% Others 6 Seaf
Slide 30: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Concentration Directors’ Interests Options Unvested (vested & Shares The Share Awards unvested) Rest 12% Anthoni Salim NED, Chairman 1,925,474,957 - - Top 10 Manuel Pangilinan ED, CEO 70,493,078 - - Next 25 13% 46% of all shares Chris Young ED
Slide 31: First Pacific's Economic Interests
FPC’s FPC’s Economic Economic 25.6% 25.6% Interest Interest 44.0% (%) (%) 50.1% 20.0% 40.3% 20.0% 40.3% Pinehill 53.6% 44.0% 36.0% 23.2% 29.9% 19.7% 17.9% 43.9% 13.0% 33.5% 50.8% 8.8% 15.7% 46.2% 42.4% 46.2% Data as at 31 December 2021. 31
Slide 32: Notes
Notes 32
Slide 33: 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 34: 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 34
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