First Pacific Co. Ltd. · HKEX:142

First Pacific — 3Q 2022 Earnings Presentation

35 slides from First Pacific's earnings presentation, Dec 15, 2022

  1. Slide 1: First Pacific 3Q22 Equity Investor Handout

    Copyright © First Pacific Company Limited 15 December 2022. All rights reserved.

  2. Slide 2: First Pacific Group Holdings and Economic Interests

    FIRST PACIFIC | FIRST PACIFIC Consumer Food ; Telecommunications Products Indofood #PLDT Indofoodcsp Smart First Pacific holds an economic interest of 25.6% in PLDT which in turn owns 100% of Smart, First Pacific has an economic interest of 50.1% in Indofood, 40.3% in ICBP, 40.3% in Pinehill, and 50

  3. Slide 3: Change in Recurring Profit and Head Office Cash Flow

    Change in Recurring Profit (USD mln) 300 280 263.3  9.8 2.9 1.8 1.1 0.5 1.5 260 36.2 240 7.1 x 11.0 220  209.5 200 180 13.1 x 3.8  160 140 120 100   1H22 Head Office Cash Flow (USD mln) 200 66.3  180 20.9 160 138.6 140 (22.9) 120 (23.3) (7.4) (5.6) (2.4) 100 113.0  7.0 x 11.0 80 60 40  13.1

  4. Slide 4: Head Office Borrowings and Outstanding Bonds

    Outstanding Bonds  Principal 4.0 x 12.0 Coupon Price Term Maturity  12.1 x 3.7 US$357.8 mln 4½% 98.895 10-Year US$350.0 mln 4⅜% 94.668 7-Year 16 April 2023 11 Sept 2027   Mid-market data as at 1 December 2022.          Head Office Borrowings at End-June 2022 (USD mln) 500 400.0 400 357.

  5. Slide 5: Diversified Investments, Strong Returns

    Roxas Holdings Diversified Investments, Strong Returns $12 mln (0.3%) Philex  Balanced weighting of mature and growth Group1 investments $244 mln  Balanced weighting of different sectors (6%)  18 years of growth: Gross Asset Value grew at a compound annual growth rate of 9% from end-2003 to end-2

  6. Slide 6: First Pacific's Investment & Management Approach

    First Pacific’s Investment & Management Approach Investment Criteria & Strategies oO Oo Oo Oo Geographic focus on emerging Asian economies Industry focus on consumer foods, infrastructure, natural resource, and telecommunications Investee companies will have strong or dominant market positions Compa

  7. Slide 7: Head Office GHG Emissions

         Head Office GHG Emissions (tons of CO2-e) 350 35  300 30 250 25  200 7.7 x 11.0 20 150 1.3 x 8.1 15  100 10 50 5  0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021  Scope 1 Scope 2 Scope 3 GHG/floor area (CO2-e/sq ft) (RH scale)  7

  8. Slide 8: Indofood Net Sales & Core Profit

    Net Sales & Core Profit (USD mln) 8,000  6,926 7,000 6,000 5,414 5,583 5,509  5,136 5,065 6.5 x 11.2 5,000  4,000 12.9 x 3.8 3,000  2,000 1,000 346 407 561 391 443 279  0 2018 2019 2020 2021 9M21 9M22 Net Sales Core Profit   EBIT Margins Compared 9M21 9M22 Noodles 24.1% 21.9% Dairy 10.4% 6.2%

  9. Slide 9: ICBP Net Sales & Core Profit

    Net Sales & Core Profit (USD mln) 4,000  3,500 3,333 3,186 2,990 2,965  3,000 2,688 7.0 x 11.0 2,500  2,000  1,500 1,000 13.1 x 3.7 295 365 398 360 351  500  0 2018 2019 2020 9M21 9M22  Net Sales Core Profit EBIT Compared Share of EBIT* (IDR bln) 9M21 9M22 Noodles 7,402 7,811 Dairy 708 449 Sn

  10. Slide 10: Indofood External Sales and Borrowings

    Change in External Sales (IDR bln) External Sales by Source (IDR bln) 85,000 396 385 316 147 76 80,822 682 540 80,000 3,837 9M21 9M22 Change 75,000 72,808 5,153 29,526 34,679 17% 7.6 x 11.5 7.1 x 11.0 6,579 7,119 8% 70,000 2,478 2,863 16% 1.3 x 3.8 1.3 x 11.2 (3,519) 1,690 2,006 19% 65,000 783 859 1

  11. Slide 11: PLDT Service Revenues & Telco Core Profit

    Service Revenues# & Telco Core Profit (USD mln) 4,000  3,508 3,763 3,129 ₱ 3,000 2,892 2,829 2,728  ₱ 2,000 6.1 x 12.9  1,000 491 11.2567x 3.8613 487 472 472  ₱ 0 2018 2019 2020 2021 9M21 9M22 Service revenues Telco Core Profit  Change in Service Revenues# (PHP mln) 150,000 1,937 146,505 145,00

  12. Slide 12: PLDT Revenue Sources

    Revenue Sources (PHP bln)  ₱  Data and Broadband Data & B’band ₱113.2 7.0 x 7.0  ₱ ₱ Services  Voice ₱22.6 80% 13.0of Total x 3.6 SMS ₱4.2  Int’l Long Dist. ₱1.9    ₱ ₱ ₱ ₱   ₱        ₱    12

  13. Slide 13: Smart 5G Network Performance

                ₱    5G Availability (% of time) 5G Reach (1 worst, 10 best) 5G Download Speed (Mbps) 0.0 3.0 x 7.0 5.0 10.0 15.0 20.0 0.0 3.0 x 7.0 1.0 2.0 3.0 4.0 5.0 0.0 3.0 x 7.0 20.0 40.0 60.0 1.3 x 11.3 9.2 x 11.3 17.3 x 11.3 Smart Smart Smart Globe Globe Globe Source: Opensignal, 3

  14. Slide 14: Metro Pacific Investments Portfolio

    14 METRO See PACIFIC INVESTMENTS 47.5% MERALCO 100% MERALCO GEN POWER GENERATION 58% Water -100% stakes MP7C ™ a A METRO PACIFIC TOLLWAYS M. i] d aynila SCTEX NLEX y cavirex ANN Nusantara infrastructure ge 100% = ee ZX Metro Pacific BS = Water lad is the t private water in the country 10.5mm populat

  15. Slide 15: MPIC Change in Contribution and Core Profit

      ₱ ₱  ₱ ₱  ₱ ₱    ₱ ₱    ₱  ₱ Change in Contribution (PHP mln) Operating Revenues & Core Profit (USD mln) 16,000 1,200 1,393 15,339 15,000 1,000 956 883 826 7.0 x 11.3 476 14,000 222 800 700 7.0 x 11.1 40 78 657 13,130 1.3 x 11.1 13,000 600 12,000 400 303 13.0 x 11.1 250 194 220 207 11,0

  16. Slide 16: Meralco Distribution Revenues & Core Profit

    Distribution Revenues & Core Profit (USD mln) 1,600  ₱ ₱ 1,400 1,278 1,284 1,177 1,223 1,200 972 ₱ ₱ 1,000 826  ₱ ₱ 800 7.6 x 12.2 600 499   ₱ 400 425 462 11.9 x 3.8 439 369 365 ₱ 200 ₱ ₱ 0  ₱ ₱ 2018 2019 2020 2021 9M21 9M22  ₱ ₱ Distribution Revenues Core Profit  ₱ ₱ Note: Meralco franchise

  17. Slide 17: Toll Roads Revenues & Core Profit

    Revenues & Core Profit (USD mln) 400 359 354 306 300 294 274 253 200 5.0 x 13.0 100 84 102 1.3 x 4.0 54 79 55 76 0 2018 2019 2020 2021 9M21 9M22 Revenues Core Profit  ₱  ₱ ₱    ₱ ₱ ₱ ₱ Note: NLEX concession until 2037; SCTEX until 2043; CAVITEX until 2033/2046. 17

  18. Slide 18: Maynilad Revenues & Core Profit

    Revenues & Core Profit (USD mln) 500  ₱ ₱ 450 465 463 445 418 400 339 350 319  ₱ 300 250 7.0 x 11.1 200  ₱ 150 100 147 13.0 x 3.7 150 132 132 97 87 50  0 2018 2019 2020 2021 9M21 9M22  ₱ ₱ Revenues Core Profit Note: Maynilad concession until 31 July 2037.  ₱ ₱  ₱  ₱  ₱ ₱    ₱ ₱  ₱ ₱  1

  19. Slide 19: FPM Power Recent P&L

    Recent P&L (USD mln) 1,400  1,298.3 1,200  1,000  800 600 675.1 5.8 x 8.9   400 200 15.2 x 3.8 35.8 17.2 199.3 153.9 0 9M21 9M22 Revenue EBITDA* Core Profit    Singapore Monthly Average Electricity System Demand (MW) 6,600 6,430 6,352 6,303 6,364 6,412 6,375 6,356 6,400 6,225 6,198 6,200 6,1

  20. Slide 20: Philex Revenues, Core Profit and Silangan Resource Estimate

    Operating Revenues & Core Profit (USD mln) 250  ₽ ₽ 200 171 212 158 143 147  ₱ 150 100 4.8 x 11.9 131 51 ₽ 50 11 3 12.2 x 3.8 23 38 29 0  ₽ ₽ 2018 2019 2020 2021 9M21 9M22 Revenues Core Profit        ₽  Silangan Mineral Resource Estimate   4.6 x0.67 10.7 5,280  438 0.55 9,390  133 571

  21. Slide 21: Summary Outlook

    Summary Indofood Earnings Seen Continuing Strong O Earnings growth seen steady in 2022 and beyond on demand growth in Pinehill markets supported by growing appetite for Indofood products domestically OIndofood is traditionally a beneficiary of higher soft commodity prices with stronger Agribusiness

  22. Slide 22: Appendix

    22 Appendix Shareholder Information Selected Financial Data

  23. Slide 23: Valuation of Group Holdings

    At At 30 September 31 December 2022 2021 US$ millions Basis Indofood (i) 1,739.3 1,948.7 PLDT (i) 1,420.5 1,962.8 MPIC (i) 750.8 1,011.2 Philex (i) 112.9 243.8 PXP Energy (i) 45.5 67.0 FP Natural Resources (ii) 11.9 14.6 Head Office - Other assets (iii) 105.9 98.8 - Net debt (1,288.7) (1,322.2) Tota

  24. Slide 24: Contribution to Group Profit

    Contribution to Turnover Group profit(i) For the six months ended 30 June 2021 2022 2021 2022 US$ millions Indofood 3,293.4 3,639.8 122.9 124.4 PLDT(ii) - - 71.2 73.0 MPIC 448.5 464.8 49.9 59.7 FPM Power 412.9 863.7 2.8 39.0 Philex(ii) - - 6.9 9.8 FP Natural Resources 71.2 103.6 (4.5) (3.4) Contribu

  25. Slide 25: Net Debt and Head Office Cash Flow

    Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2022 1,435.2 (113.0) 1,322.2 Movement 22.2 (25.6) (3.4) At 30 June 2022 1,457.4 (138.6) 1,318.8 Head Office cash flow For the six months ended 30 June 2021 2022 US$ millions Dividend and fee income 68.0 66.3 Head Office overhead

  26. Slide 26: Consolidated and Associated Companies Debt and Gearing

    Consolidated At 31 December 2021 At 30 June 2022 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,322.2 1,336.5 0.99x 1,318.8 1,213.1 1.09x Indofood 2,263.2 5,998.2 0.38x 2,736.0 6,040.2 0.45x MPIC 3,819.5 4,547.2 0.84x 3,904.5 4,31

  27. Slide 27: Turnover by Geography

    US$ millions 2018 2019 2020 2021 1H21 1H22 Indonesia 4,691.5 4,859.2 4,770.2 5,450.2 2,608.7 2,896.1 Philippines 1,367.6 1,439.2 965.2 922.4 509.1 553.5 Singapore 780.3 765.3 622.7 1,398.8 519.7 911.2 ME, Africa & Others 353.5 477.3 772.4 1,331.8 588.5 711.1 Australasia 40.4 44.0 - - - - Total 7,233

  28. Slide 28: Bond and Rights Offer History

    $152 mln bond tender $215 mln Bond ($69 mln of 2010 7-yr) Redemption ($83 mln of 2010 10-yr) (2012 7-yr)  $220 mln bond tender $252 mln Bond ($160 mln of 2012 7-yr) Redemption ($60 mln of 2010 10-yr) (2020 10-yr)  $219 mln Bond $54 mln Bond $121 mln Bond  Redemption Repurchase Redemption (2010 7-

  29. Slide 29: Management Team

    John W. Ryan Joseph H.P. Ng Manuel V. Pangilinan Christopher H. Young Ray C. Espinosa Assoc. Director & CSO Assoc. Director & CFO Managing Director & CEO Executive Director Associate Director Richard P.C. Chan Peter T.H. Lin Stanley H. Yang Marilyn A. Victorico P. Vargas Exec. Vice President, EVP, G

  30. Slide 30: Shareholder Breakdown

    Shareholder Breakdown Minority Shareholders Mln Shares % Stake 1 Brandes Investment Partners 269 6.3% 2 Lazard Asset Management 141 3.3% 3 Capital International 107 2.5% 4 Letko, Brosseau & Associates 81 1.9% All 5 The Vanguard Group 74 1.7% Others 6 Kopernik Global Investors Tampa 72 1.7% 17.0% 7 S

  31. Slide 31: Shareholder Concentration and Directors' Interests

    Concentration Directors’ Interests Options Unvested (vested & Shares The Share Awards unvested) Rest Anthoni Salim NED, Chairman 1,925,474,957 - - 13% Top 10 Manuel Pangilinan ED, CEO 70,493,078 - - 6.5 x45% Next 25 6.5 of all shares Chris Young ED 6.5 8,385,189 x 16 - - 13% Axton Salim NED - - - he

  32. Slide 32: First Pacific Economic Interests

    FPC’s FPC’s Economic Economic 25.6% 25.6% Interest Interest 45.4% (%) (%) 50.1% 21.5% 40.3% 21.5% 40.3% Pinehill 54.5% 45.4% 36.1% 24.0% 30.0% 20.4% 17.9% 45.4% 13.1% 34.6% 50.8% 9.1% 16.2% 46.2% 42.4% 46.2% 32 Data as at 30 September 2022.

  33. Slide 33: Notes

    Notes

  34. Slide 34: Important Notice

    34 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

  35. Slide 35: Contact Us

    Contact Us FIRST PACIFIC 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

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