First Pacific Co. Ltd. · HKEX:142
First Pacific — FY2019 Earnings Presentation
34 slides from First Pacific's earnings presentation, Mar 24, 2020
Slide 1: 2019 Full Year Results Presentation
2019 Full Year Results Presentation HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 24 March 2020. All rights reserved. inAsia
Slide 2: Consumer Foods, Infrastructure, Natural Resources, Telecommunications
Consumer Foods Infrastructure Natural Resources Telecommunications First Pacific owns 50.1% of First Pacific owns 41.9% of First Pacific owns 31.2% of First Pacific owns 25.6% of Indofood and has an MPIC and has economic Philex and Two Rivers, a PLDT which in turn owns economic interest of 40.3% int
Slide 3: 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 4: Covid-19 Response
Covid-19 Response First Pacific Has Stress-Tested its Liquidity Indofood Is Gearing up to Help Those in Need o The company has laid out several scenarios of potential o In a practice it has followed for many years when impacts on liquidity Indonesia faces natural disaster, Indofood is gearing up to
Slide 5: Renewed Focus on Core Assets
Renewed Focus on Core Assets Core Assets Are Engines of Growth Diverse Emerging ASEAN Portfolio o First Pacific’s key investments are based in the fast- o Our Hong Kong-based investment management and growing economies of Southeast Asia, a region we know holding company has developed three core asse
Slide 6: Gross Asset Value of $3.23 Billion
Gross Asset Value of $3.23 Billion Investment Objectives Roxas Holdings o Unlock value, enhance cash flows to deliver $19 mln (0.6%) dividend/distribution returns, grow share price, and Philex finance further investment in value-enhancing Group $220 businesses, taking into consideration all relevant
Slide 7: $19.8 Bln of Major Assets Represented in Portfolio
$19.8 Bln of Major Assets Represented in Portfolio tio n s Philex Group $319 Planta ar & Su g mln $726 Diversified Portfolio, Strong Returns o Balanced weighting of mature and growth investments mln o Balanced weighting of different sectors PLDT ICBP o 15 years of growth: Gross Asset Value grew at a
Slide 8: 10th Year of 25% Dividend Payout
10th Year of 25% Dividend Payout Core Holdings Deliver 9% Contribution Growth 2019 Recurring Profit (USD mln) 300 289.5 6.0 290.0 o Turnover rose 4% to $8.0 billion vs. $7.7 billion on strong 290 28.7 growth at Indofood and MPIC 280 o Contribution from three core holdings (Indofood, MPIC, 270 (18.4)
Slide 9: Headline Group Data 2019 & End-Year (USD mln)
Headline Group Data 2019 & End-Year (USD mln) Core Gross Net Cash Gearing Interest Total Turnover EBITDA Profit/(Loss) Debt Debt/(Cash) On Hand (times) Cover Equity PLDT 3,280.7 1,547.7 486.9 3,802.4 3,321.2 481.2 1.45 5.8 2,296.6 MPIC(i) 1,709.5 793.2 302.5 4,935.0 3,361.0 1,574.0 0.69 5.1 4,858.7
Slide 10: Funds in Hand to Repay Last Secured Bond
Funds in Hand to Repay Last Secured Bond Head Office Balance Sheet as at end-2019 Head Office Bond Issues at a Glance o Gross assets $5.1 billion at end-2019 o o Gross debt $1.67 billion, gross debt cover 3.1x Net debt $1.34 billion, net debt cover 3.8x Principal Coupon Price* 4.0 x 12.0 Term Maturi
Slide 11: Sustainability Matters Rise in Importance
Sustainability Matters Rise in Importance ISS Governance QualityScore of 4 at First Pacific Member of Key ESG Indexes o First Pacific has a QualityScore rating of 4 from Institutional o First Pacific is a founding member of Bloomberg’s Gender Shareholder Services as of March 2020 Equality index – on
Slide 12: CBP Division Powers Earnings Surge
CBP Division Powers Earnings Surge 2019 Financial Highlights Revenues & Core Income (USD mln) 6,000 o Revenues rose 4% to IDR76.6 trillion vs. IDR73.4 trillion on double- 5,237 5,414 5,004 5,136 4,763 digit sales growth at Consumer Branded Products unit and strong 5,000 sales at Bogasari flour divis
Slide 13: Sales Growth Led by Noodles, Seasonings
Sales Growth Led by Noodles, Seasonings 2019 Financial Highlights Net Sales & Core Income (USD mln) 3,500 o Net sales rose 10% in Rupiah terms to IDR42.3 trillion vs. 2,990 3,000 IDR38.4 trillion on growth led by Noodles, Food Seasonings 2,580 2,657 2,688 and Dairy 2,500 2,360 o EBITDA rose 15% to I
Slide 14: Weak CPO Prices Impact Earnings
Weak CPO Prices Impact Earnings 2019 Financial Highlights External Sales & Net Profit/(Loss) (USD mln) 1,500 1,091 1,173 o External sales fell 3% to IDR13.7 trillion vs. IDR14.1 trillion 1,029 984 965 mainly due to continuing weak commodity prices 5.0 x 12.0 1,000 o Plantations sales fell 4% to IDR8
Slide 15: Record High Service Revenues on Data Surge
Record High Service Revenues on Data Surge 2019 Financial Highlights Revenues & Core Income (USD mln) 4,000 3,572 o Service revenues (net) rose 7% to record high ₱157.7 3,500 3,298 3,000 3,129 2,892 billion due to a 20% increase in the Individual 3,000 business segment, followed by Enterprise and Ho
Slide 16: Data Service Revenues Drive Earnings Growth
Data Service Revenues Drive Earnings Growth Individual Business Leads Growth on Mobile Data Surge Individual Service Revenues (PHP bln) 25.0 o 2019 Individual service revenues rose 20% to ₱72.1 billion, now 46% of total; 4Q growth at 18% to ₱19.4 billion 20.0 o Individual business seen continuing st
Slide 17: PLDT & Smart Beat Globe in Every Category
PLDT & Smart Beat Globe in Every Category PLDT Network Is the Country’s Best, Say Observers Capex Delivers Widening Lead in Prepaid ARPU o 2019 capex spending of ₱72.9 billion expanded PLDT’s o Number of 4G LTE base stations rose by 8,400 in 2019 to network lead and accelerated expansion of home bro
Slide 18: MPIC Toll Roads, Electricity, Water, Hospitals
Toll Roads Electricity Water Hospitals Rail/Logistics/AFP 29%-100% stakes 46% & 62% stakes* 53%-100% stakes 20% 20%-99% stakes 100% 15 Hospitals Light Rail Manila 4 Primary Care Clinics 55% 35% § Largest healthcare provider in the Philippines 10.5% § Present in all major island groups 56% 14% § Larg
Slide 19: Core Income Rises to New Record
Core Income Rises to New Record 2019 Financial Highlights Outlook o Contribution from operating companies rose 7% to ₱20.89 o Continuing strong demand growth for MPIC services seen billion vs. ₱19.56 billion led by Toll Roads, Power and continuing to lift revenues; core income growth to be slowed Ho
Slide 20: Meralco Earnings Rise to New Record
Meralco Earnings Rise to New Record 2019 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Income (USD mln) 1,600 o Distribution revenues rose 6% to ₱65.89 billion vs. 1,400 1,278 ₱62.02 billion on 6% growth in volume sold and 1,144 1,183 1,177 1,200 1,207 average distribution tar
Slide 21: Roads & Water Businesses Begin to See Higher Tariffs
Roads & Water Businesses Begin to See Higher Tariffs 2019 Financial Highlights & Outlook: Toll Roads Revenues & Core Income (USD mln) 400 o Revenues rose 19% to ₱18.50 billion vs. ₱15.49 billion on 350 294 359 strong traffic growth and toll increases on Philippine roads, 300 260 239 and consolidatio
Slide 22: Higher Gold Price Eases Output Fall
Higher Gold Price Eases Output Fall 2019 Financial Highlights Revenues & Core Income (USD mln) o Operating revenues fell 11% to ₽7.40 billion vs. ₽8.31 billion as 250 207 201 198 a result of less ore milled and lower grades leading to lower 200 158 metal production, compounded by lower copper prices
Slide 23: Appendix
Appendix Shareholder Information Selected Financial Data
Slide 24: Adjusted NAV per Share
Adjusted NAV per Share At At 31 December 31 December 2019 2018 US$ millions Basis Indofood (i) 2,506.2 2,261.7 PLDT (i) 1,077.8 1,182.0 MPIC (i) 908.7 1,166.9 Philex (i) 127.5 134.1 PXP (i) 94.8 160.6 FP Natural Resources (ii) 25.5 36.5 FPM Power (iii) - 230.0 FPW (iv) - 325.0 Head Office - Other as
Slide 25: Contribution and Profit Summary
Contribution and Profit Summary Contribution to Turnover Group profit(i) For the 12 months ended 31 December 2019 2018 2019 2018 US$ millions Indofood 5,405.9 5,136.1 163.4 134.7 PLDT(ii) - - 119.3 120.7 MPIC 1,709.5 1,575.8 126.8 120.9 Philex(ii) - - 1.0 2.9 FPM Power 713.4 728.6 (10.5) (6.2) FP Na
Slide 26: Head Office Free Cash Flow
Head Office Free Cash Flow(i) For the 12 months ended 31 December 2019 2018 US$ millions Cash dividend and fee income 165.1 202.9 Head Office overhead expense (17.8) (26.2) Net cash interest expense (72.5) (71.2) Tax paid (0.4) (3.6) Net cash inflow from operating activities 74.4 101.9 Net proceeds
Slide 27: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 31 December 2019 At 31 December 2018 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,330.6 1,740.0 0.76x 1,550.2 2,039.7 0.76x Indofood 664.2 3,886.0 0.17x 1,444.7 3,456.1 0.42x MPIC 3,361
Slide 28: A Decade in the Capital Markets
A Decade in the Capital Markets $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 ($160 mln of 2012 7-yr) ($60 mln of 2010 10-yr) $219 mln Bond Redemption (2010 7-yr) 2009 2010 2012 2013 2015 2017 2018 2019 $282 mln Rights O
Slide 29: Shareholding Structure of the Company
Shareholding Structure of the Company % Shareholder Breakdown Investor Mln Shares float 1 Brandes Investment Partners 321 14% 2 Lazard Asset Management 154 7% 3 GIC Asset Management 110 5% 4 Seafarer Capital Partners 93 4% All 5 Dimensional Fund Advisors 70 3% Others 6 M&G Investment Management 70 3
Slide 30: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Turnover Directors’ Total Interest* Shares Options Anthoni Salim NED, Chairman 1,925,474,957 - N/A 28% Low Manuel V. Pangilinan ED, CEO 70,493,078 - 6.558% Chris Young ED, CFO 6.5 x 16 8,385,189 - Very Active 0.3% Tedy Djuhar NED - - High 0.1%
Slide 31: FPC's Economic Interest
FPC’s Economic Interest 41.9% 25.6% 25.6% (%) 19 .1% .0% 50 % .3 40 26 .1 .0% % 47 .3% 35 22.1% 29.2% 41.9% 17.4% 41.9% 12.3% 50 % .6% 1 2.3 46 % .2 .9 % 31 23.1% 42 .4% 31.9% 8.4% 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 investee companies, and no part of this presentation shall form the basis of or be re
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 4374 info@firstpacific.com firstpacific.com 33