First Pacific Co. Ltd. · HKEX:142
First Pacific — FY2020 Earnings Presentation
32 slides from First Pacific's earnings presentation, Mar 30, 2021
Slide 1: Investor Presentation Full Year 2020
Investor Presentation Full Year 2020 Financial and Operational Results HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 30 March 2021. All rights reserved. inAsia
Slide 2: Consumer Foods, Infrastructure, Natural Resources, Telecommunications
Consumer Foods Infrastructure Natural Resources Telecommunications First Pacific has an First Pacific holds an First Pacific has an First Pacific holds an economic interest of 50.1% economic interest of 43.1% economic interest of 31.2% economic interest of 25.6% in Indofood and has an in MPIC, 19.6%
Slide 3: Earnings Rise, Dividend Up, Share Repurchases Begin
Earnings Rise, Dividend Up, Share Repurchases Begin Recurring Profit Up 11% on Indofood, PLDT, Reduced 2020 Recurring Profit (USD mln) 340 Head Office Expenses 7.0 321.2 320 8.0 15.6 o Indofood and PLDT delivered their highest-ever full-year 300 290.0 17.1 revenues on lockdown-induced increases in d
Slide 4: Prudent Capital and Balance Sheet Management
Prudent Capital and Balance Sheet Management Head Office Balance Sheet as of end-2020 Bonds Outstanding at End-2020 o Gross debt $1.44 billion, gross debt cover 3.7x o Net debt $1.33 billion, net debt cover 4.0x Principal Coupon Price* 4.0 x 12.0 Term Maturity Cash balance of $111 million US$357.8 m
Slide 5: Focus on Core Assets & Share Buyback
Focus on Core Assets & Share Buyback Indofood (Gross Annual Revenues of $5.6 Billion) o One of the largest food companies in Indonesia Core Assets Are Engines of Growth o One of the world’s largest instant wheat noodle o First Pacific’s key investments are based in the makers growing economies of So
Slide 6: Gross Asset Value of $4.92 Billion
Gross Asset Value of $4.92 Billion Diversified Investments, Strong Returns Roxas Holdings $21 mln (0.4%) Philex o Balanced weighting of mature and Group* growth investments $416 o Balanced weighting of different sectors mln o 17 years of growth: Gross Asset Value (8%) grew at a compound annual growt
Slide 7: UNPRI, UNGC & ILO Among New Commitments
UNPRI1, UNGC2 & ILO3 Among New Commitments New Commitments to Global Sustainability Standards Proxy Advisor Ratings o First Pacific’s formal Responsible Investment Policy implements the six United Nations Principles of Responsible Investment1 HS Sustainability Benchmark Index AA- 1st Decile o The Co
Slide 8: Covid-19 Response
Covid-19 Response First Pacific Has Stress-Tested its Operations and Indofood Is Gearing up to Help Those in Need Liquidity o In a practice it has followed for many years when Indonesia faces natural disaster, Indofood is helping o The Covid-19 pandemic has coincided with greater authorities to ensu
Slide 9: Noodles Lead Earnings to Record High
Noodles Lead Earnings to Record High FY 2020 Financial Highlights Net Sales & Core Income (USD mln) o Net sales rose 7% to IDR81.7 trillion vs. IDR76.6 trillion on 10% sales 6,000 5,414 5,583 5,004 5,237 5,136 growth at Consumer Branded Products division followed by the 5,000 Agribusiness, Distribut
Slide 10: Earnings Surge on Pinehill
Earnings Surge on Pinehill FY 2020 Financial Highlights Net Sales & Core Income (USD mln) 3,500 o Net sales rose 10% in Rupiah terms to IDR46.6 trillion vs. 2,990 3,186 3,000 IDR42.3 trillion on growth led by Noodles and Food 2,580 2,657 2,688 Seasonings with addition of four months of Pinehill 2,50
Slide 11: Pinehill Joins the FPC Group
Pinehill Joins the FPC Group Noodles Business Is the Driver of Growth o Noodles contributed approximately 81% of EBIT at ICBP in 2020 o Noodles contributed the bulk of sales growth in 2020 and will benefit from 12 months of contribution from Pinehill in 2021 o Pinehill Group noodle sales will add si
Slide 12: Data Drive Revenues to Record, Core Profit Up
Data Drive Revenues to Record, Core Profit Up FY 2020 Financial Highlights Revenues & Core Income (USD mln) 4,000 o Service revenues rose 8% to record high ₱173.6 3,500 3,298 3,000 3,508 2,892 3,129 billion due to an 18% surge in data and 3,000 broadband revenues, partly offset by lower SMS 2,500 re
Slide 13: All Three Main Businesses Deliver Record Revenues
All Three Main Businesses Deliver Record Revenues Individual Business Leads Growth in Mobile Data Surge Shareholder Returns Data as a % of Revenues o 2020 Individual service revenues rose 15% to ₱82.7 billion, now 49% of total revenues 3.1 x 5.4 Core EPS ₱ 130 3.1 x 5.4 Individual 75% FY Dividends/S
Slide 14: Industry Observers Agree Which Provider Is Best
Industry Observers Agree Which Provider Is Best 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 capex/service revenues ratio was 41% in 2020, experience is the best in the Philip
Slide 15: MPIC Toll Roads, Electricity, Water, Hospitals
Toll Roads Electricity Water Hospitals Others 45%-100% stakes 46% & 62% stakes* 53%-100% stakes 20% 20%-99% stakes 100% 18 Hospitals 6 Cancer Centers 35% § Largest healthcare provider in the Philippines 10.5% § Present in all major Philippine island groups 56% 14% § Largest water § Serving 3.7 mln C
Slide 16: MPIC & Businesses Remain Resilient
MPIC & Businesses Remain Resilient FY 2020 Financial Highlights The Move from Revenue Decline to Growth in 2021 o Contribution from operating companies fell 26% to ₱15.4 o 2020 financial performance was driven by the economic billion vs. ₱20.9 billion on lower contributions from all contraction acco
Slide 17: Demand Shift Amid COVID-19 Hurts Profits
Demand Shift Amid COVID-19 Hurts Profits FY 2020 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Income (USD mln) 1,600 o Distribution revenues fell 8% to ₱60.6 billion vs. ₱65.9 1,400 1,278 billion on lower volumes and 1% decline in average 1,183 1,223 1,193 1,177 1,200 distrib
Slide 18: Return to Growth Seen Following End of ECQ
Return to Growth Seen Following End of ECQ FY 2020 Financial Highlights & Outlook: Toll Roads Revenues & Core Income (USD mln) 400 359 o Revenues fell 27% to ₱13.6 billion vs. ₱18.5 billion on 350 294 a sharp fall in traffic owing to ECQ lockdown but is 300 250 260 275 now recovering 250 o Core inco
Slide 19: Profit Leaps on Surging Metal Prices
Profit Leaps on Surging Metal Prices FY 2020 Financial Highlights Operating Revenues & Core Income (USD mln) 250 215 o Operating revenue rose 14% to ₽8.4 billion vs. ₽7.4 198 billion as a result of improved grades of gold and copper 200 158 171 4.8 x 11.9 143 resulting in higher metal production, co
Slide 20: Appendix
Appendix Shareholder Information Selected Financial Data 20
Slide 21: 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 22: Adjusted NAV per Share
Adjusted NAV per Share At At 24 March 31 December 2021 2020 US$ millions Basis Indofood (i) 2,049.5 2,143.9 PLDT (i) 1,418.9 1,541.5 MPIC (i) 1,016.1 1,178.5 Philex (i) 212.8 235.2 PXP (i) 99.3 127.3 FP Natural Resources (ii) 20.8 27.2 Head Office - Other assets (iii) 103.6 104.9 - Net debt (1,353.6
Slide 23: Contribution & Profit Summary
Contribution & Profit Summary Contribution to Turnover Group profit For the year ended 31 December 2020 2019 2020 2019 US$ millions (Restated) Indofood 5,583.1 5,414.4 194.4 163.4 PLDT - - 134.9 119.3 MPIC 825.5 1,239.8 84.8 126.8 Philex - - 8.0 1.0 FPM Power 571.0 713.4 (2.5) (10.5) FP Natural Reso
Slide 24: Head Office Net Debt & Cash Flow
Head Office Net Debt & Cash Flow Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2020 1,655.6 (325.0) 1,330.6 Movement (224.7) 213.6 (11.1) At 31 December 2020 1,430.9 (111.4) 1,319.5 Head Office Cash Flow For the year ended 31 December 2020 2019 US$ millions Dividend and fee
Slide 25: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 31 December 2020 At 31 December 2019 Net Total Gearing Net Total Gearing US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,319.5 1,621.2 0.81x 1,330.6 1,740.0 0.76x Indofood 2,548.1 5,598.2 0.46x 664.2 3,886.0 0.17x MPIC 3,762.8 5,079
Slide 26: 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 2010 $220 mln bon
Slide 27: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Investor Mln Shares % Stake 1 Brandes Investment Partners 331 7.6% 2 GIC Asset Management 153 3.5% 3 Lazard Asset Management 142 3.3% 4 Seafarer Capital Partners 97 2.2% All 5 Letko, Brosseau & Associates 79 1.8% Others 6 Gokongwei Investor
Slide 28: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Turnover Total Interest of Directors Unvested Shares Share Awards Options Not Stated Anthoni Salim NED, Chairman 1,925,474,957 - - Manuel Pangilinan ED, CEO 70,493,078 - - 31% Low Chris Young ED, CFO 6.5 5,164,623 x 16 - 3,220,566 - 6.5 x 6.5
Slide 29: Economic Interests in Holdings
FPC’s FPC’s Economic Economic 25.6% 25.6% Interest Interest 43.1% (%) (%) 50.1% 19.6% 40.3% 26.9% 40.3% Pinehill 47.5% 43.1% 35.9% 22.8% 29.9% 19.3% 17.8% 43.1% 13.0% 32.9% 50.8% 8.6% 15.4% 46.2% 42.4% 46.2% 29
Slide 30: Notes
Notes 30
Slide 31: 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 32: 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 Email us at info@firstpacific.com firstpacific.com 32