First Pacific Co. Ltd. · HKEX:142

First Pacific — First Pacific Co Ord — Q2 2023 Earnings Presentation

36 slides from First Pacific's earnings presentation, Aug 25, 2023

  1. Slide 1: First Pacific 1H 2023 results

    Copyright © First Pacific Company Limited 25 August 2023. All rights reserved.

  2. Slide 2: First Pacific group holdings and economic interests

    FIRST PACIFIC FIRST PACIFIC Consumer Food Products Telecommunications Indofood #PLDT Indofooacsp Smart First Pacific has an economic interest of 50.1% in Indofood, 40.3% in ICBP, 40.3% in Pinehill, and 50.9% in RHI. First Pacific holds an economic interest of 25.6% in PLDT which in turn owns 100% of

  3. Slide 3: Change in Recurring Profit and 1H23 Head Office Cash Flow

    Change in Recurring Profit (USD mln) 320 300.8 300 24.7  19.6 280 7.1 x 11.0 263.3  260 12.8 0.4 (8.7) 13.1 x 3.8 240 (6.6) (4.7)  220 200   1H23 Head Office Cash Flow (USD mln) 250 142.9 203.6 200  150 7.0 x 11.0 96.6  100 9.2 50 13.1 x 11.2 (35.1)  (6.8) (1.9) (1.3) 0   3

  4. Slide 4: ICR & Dividend Income; Head Office Borrowings

    ICR & Dividend Income (USD mln) 300 6.0   226 4.5x  190 204 200 4.0  165 3.8x 7.0 x 11.0 143  100 2.0  13.1 x 3.8 67   0 0.0  2019 2020 2021 2022 1H22 1H23 Philex & Others PLP  MPIC PLDT  Indofood* Interest Coverage Ratio (times) *Indofood distributes dividends once a year, in the third q

  5. Slide 5: Diversified Investments, Strong Returns

    Roxas Holdings $11 mln (0.2%) Diversified Investments, Strong Returns Philex  Balanced weighting of mature and growth Group1 $297 investments mln  Balanced weighting of different sectors (6%)  18 years of growth: Gross Asset Value grew at a compound annual growth rate of 7% from end-2003 to end-2

  6. Slide 6: Current Ownership Structure and Pro-Forma Post-Delisting

    Current Ownership Structure Pro-Forma Post-Delisting 10 x 10 10.0 x 10.0 1.3 x 4.5 14.1 x 4.5 First Pacific 46.1% First Pacific 49.3% Mit-Pacific 17.3% MIG 0.2% MIG 8.7% Others 5.0% GT Capital 17.1% GT Capital 19.6% Others 36.6% Note: Pro-forma scenario assumes 95% acceptance of the tender offer by

  7. Slide 7: Reasons for and Benefits of MPIC Delisting

    Reasons for and Benefits of MPIC Delisting FIRST PACIFIC A successful delisting of MPIC will simplify the structure of the First Pacific Group and will enable the Group to eliminate the listing of a subsidiary holding company. This will also simplify compliance with listing and disclosure requiremen

  8. Slide 8: Head Office GHG Emissions

         Head Office GHG Emissions (tons of CO2-e) 350 35  300 30 250 25  200 20 150 9.6 x 11.0 15  100 1.3 x 8.3 10 50 5  0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022  Scope 1 Scope 2 Scope 3 GHG/floor area (CO2-e/sq ft) (RH scale)  8

  9. Slide 9: Indofood Net Sales & Core Profit

    Net Sales & Core Profit (USD mln) 8,000  6,926 7,430 7,000 6,000 5,583  6.5 x 11.2 5,000  4,000 3,742 3,640 12.9 x 3.8 3,000  2,000 1,000 407 563 607 276 311  0 2020 2021 2022 1H22 1H23  Net Sales Core Profit  EBIT Margins Compared 1H22 1H23 Noodles 19.9% 26.2%  Dairy 7.4% 6.6% Snack Foods 6

  10. Slide 10: ICBP Net Sales, Core Profit and Balance Sheet

    Net Sales & Core Profit (USD mln) 5,000  4,500 4,344 3,960 4,000 3,500 3,186  7.0 x 11.0 3,000 2,500 2,247 2,300 13.1 x 3.7 2,000  1,500  1,000 398 478 490 500 209 312  0 2020 2021 2022 1H22 1H23  Net Sales Core Profit EBIT Margins Compared Balance Sheet (IDR bln) 30% 25% YE22 1H23 20% Short T

  11. Slide 11: Change in External Sales; Borrowings & Cash

    Change in External Sales (IDR bln) External Sales by Division (IDR bln) 57,000 1,998 56,087 56,000 1H22 1H23 Change 55,000 735 22,551 24,549 9% 54,000 7.6 x 11.5 7.1 x 11.0 573 4,931 4,697 -5% 52,787 213 53,000 129 1,887 2,016 7% 4 29 125 1.3 x 3.8 1.3 x 11.2 52,000 (273) (234) 1,355 1,480 9% 562 56

  12. Slide 12: PLDT Service Revenues & Telco Core Profit

    Service Revenues# & Telco Core Profit (USD mln) 4,000 3,561 3,763  ₱ 3,602 3,000 6.1 x 12.9  ₱ 1,847 1,799 2,000 11.2 x 3.8 903 1,000 613 608  327 318  ₱ 0 2020 2021 2022 1H22 1H23  Service revenues Telco Core Profit Change in Service Revenues# (PHP mln)  100,000 998 99,251 99,000 2,596 98,000

  13. Slide 13: PLDT Revenue Sources

    Revenue Sources (PHP bln)  ₱  Data and Broadband Data & B’band ₱77.5 7.0 x 7.0 Services Voice ₱13.7  82% 12.9 x 3.6 SMS ₱2.5  Int’l Long Dist. ₱0.8 of Total   ₱ ₱  ₱  ₱  ₱    ₱ ₱      ₱    13

  14. Slide 14: PLDT Debt & Cash Balances

      ₱         ₱ Debt & Cash Balances (USD mln) 6,000   5,000  ₱ 4,000 ₱ 3,000 7.2 x 11.0 13.1 x 10.2 ₱ 2,000   1,000  0  2020 2021 2022 1H23  Debt Balance Cash & Short-Term Investments Net Debt  14

  15. Slide 15: Metro Pacific Investments portfolio

    METRO PACIFIC INVESTMENTS FIRST PACIFIC 47.5% MERALCO 100% MERALCO GEN POWER GENERATION 58% Water -100% stakes MP7C ™ a METRO PACIFIC TOLLWAYS. M. a d SCTEX NLEX aynila cantex eee | = ee ZX Metro Pacific BS = Water —N~. Nusantara infrastructure ge lad is the t private water in the country 10.5mm pop

  16. Slide 16: MPIC Change in Contribution; Revenues & Core Profit

      ₱ ₱  ₱ ₱  ₱ ₱      ₱ ₱  Change in Contribution (PHP mln) Operating Revenues & Core Profit (USD mln) 14,000 1,000 12,398 883 934 3,104 900 826 12,000 800 9,782 7.0 x 11.3 10,000 810 700 166 7.0 x 11.1 104 600 532 8,000 465 1.3 x 11.1 (1,568) 500 13.0 x 11.1 6,000 400 4,000 300 207 250 260

  17. Slide 17: Meralco Distribution Revenues & Core Profit

    Distribution Revenues & Core Profit (USD mln) 1,600  ₱ ₱ 1,400 1,223 1,288 1,200 1,085 ₱ ₱ 1,000  ₱ ₱ ₱ 800 6.0 x 11.0 587 607 600 499 498  ₱ ₱ ₱ 400 439 13.1 x 3.8 250 348 200  ₱ ₱ 0 2020 2021 2022 1H22 1H23  Distribution Revenues Core Profit Note: Meralco distribution franchise until 2028. Ge

  18. Slide 18: Metro Pacific Tollways Revenues & Core Profit

    Revenues & Core Profit (USD mln) 500 420 400 354 300 274 4.9 x 13.2 202 236 200 100 54 1.3 x 3.7 79 105 48 49 0 2020 2021 2022 1H22 1H23 Revenues Core Profit  ₱  ₱ ₱    ₱ ₱ ₱ ₱ ₱ Note: NLEX concession until 2037; SCTEX until 2043; CAVITEX until 2033/2046. 18

  19. Slide 19: Maynilad Revenues & Core Profit

    Revenues & Core Profit (USD mln) 500 463 445  ₱ ₱ 450 420 400  ₱ ₱ 350 300  ₱ 250 200 7.0 x 11.1 214 241 150 100 132 13.0 x 3.7 132 111 79  50 58  ₱ ₱ 0  2020 2021 2022 1H22 1H23  Revenues Core Profit Note: Maynilad concession until 31 July 2037.  ₱ ₱  ₱ ₱  ₱ ₱  ₱ ₱         19

  20. Slide 20: FPM Power Recent P&L

    Recent P&L (USD mln) 2,000 1,797  1,500 1,194 998   1,000 571 5.5 x 11.0 864 500  0 (24) 13.1 x 3.8 60 215 96 162 2020 2021 2022 1H22 1H23 -500  Revenue Core Profit/(Loss)    Singapore Monthly Average Electricity System Demand (MW) 6,600 6,400 6,200 6,000 5,800 6.0 x 22.8 5,600 5,400 5,200 1

  21. Slide 21: Philex Operating Revenues & Core Profit

    Operating Revenues & Core Profit (USD mln) 250  ₽ ₽ 212 200 185  ₱ ₽ 171 150  ₽ ₽ 100 6.5 x 11.0 104 83   50 23 13.1 x 3.8 51 32 26 13  0  2020 2021 2022 1H22 1H23  Revenues Core Profit  Production Cost per Metric Tonne (PHP) Key Performance Indicators 1H22 1H23 Change 230 244 6% 1H22 1H23

  22. Slide 22: Appendix

    22 Appendix Shareholder Information Selected Financial Data

  23. Slide 23: Total valuation and value per share

    At At Basis 31 December 30 June US$ millions 2022 2023 Indofood (i) 1,879.3 2,150.4 PLDT (i) 1,304.8 1,313.1 MPIC (i) 811.0 1,142.6 FPM Power (ii) 150.0 370.0 Philex (i) 145.6 131.6 PXP Energy (i) 76.4 49.1 FP Natural Resources (iii) 9.9 10.8 Head Office - Other assets (iv) 134.7 135.9 - Net debt (1

  24. Slide 24: Contribution to Group profit and turnover

    Contribution to Turnover Group profit(i) For the six months ended 30 June 2022 2023 2022 2023 US$ millions Indofood 3,639.8 3,741.6 124.4 137.2 PLDT(ii) - - 73.0 73.4 MPIC 464.8 532.3 59.7 79.3 FPM Power - - 39.0 63.7 Philex(ii) 863.7 1,098.3 9.8 5.1 FP Natural Resources 103.6 39.0 (3.4) (10.0) Cont

  25. Slide 25: Net debt movement and Head Office cash flow

    Cash and cash US$ millions Borrowings equivalents Net debt At 1 January 2023 1,459.0 (96.6) 1,362.4 Movement 5.9 (107.0) (101.1) At 30 June 2023 1,464.9 (203.6) 1,261.3 Head Office cash flow For the six months ended 30 June 2022 2023 US$ millions Dividend and fee income 66.3 142.9 Head Office overhe

  26. Slide 26: Consolidated and associated companies gearing

    Consolidated At 31 December 2022 At 30 June 2023 Net Total Gearing(ii) Net Total Gearing(ii) US$ millions Debt(i) Equity (times) Debt(i) Equity (times) Head Office 1,362.4 1,139.5 1.20x 1,261.3 1,084.2 1.16x Indofood 2,549.7 5,834.0 0.44x 2,497.4 6,316.2 0.40x MPIC 4,398.8 4,276.9 1.03x 4,721.7 4,48

  27. Slide 27: Turnover by geography: Consumer Food Products and Infrastructure

    Consumer Food Products (USD mln) 2019 2020 2021 2022 1H22 1H23 Indonesia 4,817.5 4,736.7 5,367.9 5,710.0 2,871.5 2,935.5 Philippines 241.1 173.2 122.7 219.7 113.7 49.4 Singapore 51.9 51.7 204.3 141.8 47.5 67.4 Middle East, Africa & Others 521.3 772.4 1,331.3 1,551.7 710.7 728.3 Total 5,631.8 5,734.0

  28. Slide 28: First Pacific's Investment & Management Approach

    28 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 Co

  29. Slide 29: 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 $358 mln Bond  ($160 mln of 2012 7-yr) Redemption Redemption ($60 mln of 2010 10-yr) (2010 10-yr) (2013 10-yr)  $219 mln Bond $54 mln Bond $121 mln Bond Red

  30. Slide 30: Management team

    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 Marilyn A. Ray C. Espinosa Victorico P. Vargas Exec. V

  31. Slide 31: Shareholder Breakdown

    Shareholder Breakdown Minority Shareholders Mln Shares % Stake 1 Brandes Investment Partners 271 6.4% 2 Lazard Asset Management 118 2.8% 3 Capital International 90 2.1% 4 The Vanguard Group 78 1.8% All 5 Letko, Brosseau & Associates 77 1.8% 6 Kopernik Global Investors Tampa 76 1.8% Others 7 Dimensio

  32. Slide 32: Shareholder concentration and Directors' interests

    Concentration Directors’ Interests Vested Unvested Share Shares The Share Awards Options Rest Anthoni Salim NED, Chairman 1,925,474,957 - - 14% Top 10 Manuel Pangilinan ED, CEO 70,493,078 - - 6.5 x48% Next 25 6.5 of all shares Chris Young ED 6.5 8,385,189 x 16 - - 14% Axton Salim NED - - - held by i

  33. Slide 33: Group structure and economic interests

    FPC’s FPC’s Economic Economic 25.6% 25.6% Interest Interest 46.1 (%) (%) 50.1% 21.9% 40.3% 21.9% 40.3% Pinehill 54.7% 46.1% 36.3% 24.3% 30.1% 20.7% 18.0% 46.0% 13.1% 35.1% 50.9% 9.2% 16.5% 46.2% 42.4% 46.2% Data as at 30 June 2023. 33

  34. Slide 34: Notes

    Notes

  35. Slide 35: 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

  36. Slide 36: 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

First Pacific Co Ord — Q2 2023 Earnings Presentation on 6ix