First Pacific Co. Ltd. · HKEX:142
First Pacific — Investor Presentation (December 2019)
33 slides from First Pacific's investor presentation, Dec 2, 2019
Slide 1: Information Summary for Investors
Information Summary for Investors HKEx: 00142 Nine-Month Data 2019 Creating ADR: FPAFY long-term value www.firstpacific.com Copyright © First Pacific Company Limited 2 December 2019. 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: Gross Asset Value of $5.8 Billion
Gross Asset Value of $5.8 Billion Investment Objectives Roxas Holdings $33 mln (0.6%) o Unlock value, enhance cash flows to deliver dividend/distribution returns, grow share price, and Philex finance further investment in value-enhancing Group $390 businesses, taking into consideration all relevant
Slide 5: $33.8 Bln of Major Assets Represented in Portfolio
$33.8 Bln of Major Assets Represented in Portfolio Philex Group s at i o n Plant ar S u g & $ 1 .4 1 b ln Diversified Portfolio, Strong Returns o Balanced weighting of mature and growth $804 mln investments PLDT o Balanced weighting of different sectors o 15 years of growth: Gross Asset Value $4.70
Slide 6: 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 7: Entering 10th Year of 25% Dividend Payout
Entering 10th Year of 25% Dividend Payout Core Holdings Deliver Contribution Growth 1H 2019 Free Cash Flow (USD mln) 100 89.5 90 68.4 80.5 o Turnover rose 6% to $4.09 billion vs. $3.84 billion on strong 80 growth at Indofood and MPIC 70 13.5 60 o Contribution from three core holdings (Indofood, MPIC
Slide 8: Headline Group Data 9M 2019 & End-September (USD mln)
Headline Group Data 9M 2019 & End-September (USD mln) Core Gross Net Cash Gearing Interest Total Turnover EBITDA Profit/(Loss) Debt Debt/(Cash) On Hand (times) Cover Equity PLDT 2,400.4 1,117.6 350.5 3,441.7 2,918.1 523.6 1.32 6.9 2,206.2 MPIC(i) 1,284.7 616.7 241.1 4,707.3 3,550.7 1,156.6 0.73 4.5
Slide 9: Interest Bill Reduced Following Bond Repayment
Interest Bill Reduced Following Bond Repayment Head Office Balance Sheet as at end-June 2019 Head Office Bond Issues at a Glance o Gross assets $5.5 billion at end-June 2019 o o Gross debt $1.65 billion, gross debt cover 3.3x Net debt $1.57 billion, net debt cover 3.5x Principal Coupon Price* 4.0 x
Slide 10: 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 Dec3ember 2019 Equality index
Slide 11: CBP Division Powers Earnings Surge
CBP Division Powers Earnings Surge 9M 2019 Financial Highlights Revenues & Core Income (USD mln) 6,000 5,350 o Revenues rose 6% to IDR57.8 trillion vs. IDR54.7 trillion on surging 5,237 5,136 4,763 5,004 sales at Consumer Branded Products unit, and strong sales at 5,000 Bogasari flour division 3,872
Slide 12: Sales Growth Led by Noodles, Seasonings
Sales Growth Led by Noodles, Seasonings 9M 2019 Financial Highlights Net Sales & Core Income (USD mln) 3,000 2,657 2,688 o Net sales rose 11% in Rupiah terms to IDR32.8 trillion vs. 2,526 2,580 2,360 IDR29.5 trillion on growth led by Noodles, Food Seasonings 2,500 2,311 2,085 and Dairy 2,000 o EBITD
Slide 13: Weak CPO Prices Impact Earnings
Weak CPO Prices Impact Earnings 9M 2019 Financial Highlights External Sales & Net Profit/(Loss) (USD mln) 1,500 1,259 o External sales fell 2% to IDR10.1 trillion vs. IRD10.3 trillion 1,091 1,173 1,029 984 mainly due to continuing weak palm prices 5.0 x 12.0 1,000 726 712 o Plantations sales fell 6%
Slide 14: Telco Core Income Continues Higher
Telco Core Income Continues Higher 9M 2019 Financial Highlights Revenues & Core Income (USD mln) 4,000 3,712 3,572 o Service revenues (net) rose 8% to ₱116.3 billion due 3,500 3,298 3,000 2,927 to a 20% increase in the Individual business segment, 3,000 followed by Enterprise and Home, slightly offs
Slide 15: Data Service Revenues Drive 9M Earnings Growth
Data Service Revenues Drive 9M Earnings Growth Individual Business Leads Growth on Mobile Data Surge Individual Service Revenues (PHP bln) 19.0 o 9M 2019 Individual service revenues rose 20% to ₱52.6 billion, 17.0 now 45% of total; 3Q growth at 21% to ₱18.2 billion o Consumer Individual business see
Slide 16: PLDT & Smart Beat Globe in Every Category
PLDT & Smart Beat Globe in Every Category PLDT Network Is the Country’s Best, Say Observers Capex Is Focused on LTE/3G Expansion, Last Mile o 2019 capex budget of ₱78.4 billion to expand PLDT’s network o Number of 4G LTE base stations rose by 5,500 in the first lead and accelerate expansion of home
Slide 17: Toll Roads, Electricity, Water, Hospitals
Toll Roads Electricity Water Hospitals Rail/Logistics/AFP 29%-100% stakes 46% & 62% stakes* 53%-100% stakes 60% 20%-99% stakes 100% 14 Hospitals Light Rail Manila 3 Primary Care Clinics 55% 35% § Largest healthcare provider in the Philippines 10.5% § Present in all major island groups 56% 14% § Larg
Slide 18: Core Businesses Driving Growth
Core Businesses Driving Growth 9M 2019 Financial Highlights Outlook o Contribution from operating companies rose 6% to ₱16.4 o Continuing strong demand growth for MPIC services seen billion vs. ₱15.4 billion led by Power, Toll Roads, Water and continuing to lift revenues; core income growth to be sl
Slide 19: Double-Digit Earnings Growth at Meralco
Double-Digit Earnings Growth at Meralco 9M 2019 Financial Highlights & Outlook: Meralco Distribution Revenues & Core Income (USD mln) 1,400 o Distribution revenues rose 7% to ₱49.2 billion vs. 1,144 1,183 1,177 1,200 ₱46.2 billion on 6% growth in volume sold and 1,207 949 average distribution tariff
Slide 20: Roads & Water Businesses Begin to See Higher Tariffs
Roads & Water Businesses Begin to See Higher Tariffs 9M 2019 Financial Highlights & Outlook: Toll Roads Revenues & Core Income (USD mln) 350 294 o Revenues rose 20% to ₱13.5 billion vs. ₱11.3 billion on 300 260 260 strong traffic growth and toll increases on Philippine roads, 250 239 212 214 and con
Slide 21: Silangan Project Shifts Into Gear
Silangan Project Shifts Into Gear 9M 2019 Financial Highlights 250 Revenues & Core Income (USD mln) 215 o Operating revenues fell 19% to ₽5.31 billion vs. ₽6.59 billion as 201 198 a result of less ore milled and lower grades leading to lower 200 158 metal production, compounded by lower copper price
Slide 22: Appendix
Appendix Shareholder Information Selected Financial Data
Slide 23: Contribution and Profit Summary
Contribution and Profit Summary Contribution to Turnover Group profit(i) For the six months ended 30 June 2019 2018 2019 2018 US$ millions Indofood 2,716.9 2,596.8 80.3 70.3 PLDT(ii) - - 58.3 62.7 MPIC 858.6 767.7 70.0 69.1 FPW(iii) - - 0.7 10.3 Philex(ii) - - (1.2) 4.1 FPM Power 364.0 347.8 (7.1) (
Slide 24: Head Office Free Cash Flow
Head Office Free Cash Flow(i) For the six months ended 30 June 2019 2018 US$ millions Cash dividend and fee income 68.4 67.5 Head Office overhead expense (9.2) (11.7) Net cash interest expense (37.5) (33.9) Tax paid (0.3) (3.5) Net cash inflow from operating activities 21.4 18.4 Net investments(ii)
Slide 25: Group Net Debt and Gearing
Group Net Debt and Gearing Consolidated At 30 June 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 1,573.4 1,822.5 0.86x 1,550.2 2,039.7 0.76x Indofood 1,164.5 3,622.3 0.32x 1,444.7 3,456.1 0.42x MPIC 3,432.7
Slide 26: Adjusted NAV per Share
Adjusted NAV per Share At At 30 September 31 December 2019 2018 US$ millions Basis Indofood (i) 2,384.6 2,261.7 PLDT (i) 1,206.3 1,182.0 MPIC (i) 1,270.2 1,166.9 Philex (i) 165.9 134.1 PXP (i) 127.1 160.6 FPW (ii) 325.0 325.0 FPM Power (iii) 230.0 230.0 FP Natural Resources (iv) 33.2 36.5 Head Offic
Slide 27: 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 28: Shareholding Structure of the Company
Shareholding Structure of the Company Shareholder Breakdown Investor Mln Shares 1 Brandes Investment Partners 339 7.8% 2 Lazard Asset Management 179 4.1% 3 M&G Investment Management 108 2.5% All 4 Southeastern Asset Management 75 1.7% Others 5 Marathon Asset Management 72 1.7% Pr 6 GIC Asset Managem
Slide 29: Insider Ownership & Institutional Shareholder Statistics
Insider Ownership & Institutional Shareholder Statistics Turnover Directors’ Total Interest* Shares Options N/A 25% Low Anthoni Salim NED, Chairman 1,925,474,957 - 6.5 x 58% Manny Pangilinan ED, CEO 70,493,078 - Very Active 0.4% High 0.1% 6.5 Chris Young ED, CFO 6.5 x 16 8,385,189 - Benny Santoso NE
Slide 30: FPC's Economic Interest
FPC’s Economic Interest 41.9% 25.6% 50.1% (%) 19 .3% .1% 40 % .9 34 26 .1 .1% % 47 .3% 29 22.1% 17.3% 41.9% 12.2% 41.9% 50.6% 50 % .0% 1 2.3 46 % .2 .2 % 34 23.1% 42 .4% 41.5% 25.2% 30
Slide 31: Notes
Notes 31
Slide 32: 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 33: 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 www.firstpacific.com 33
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