First Pacific : 2021 Nine-month data

Investor Presentation

Nine-Month 2021 Results

HKEx: 00142

ADR: FPAFY

www.firstpacific.com

Creating long-term value

in Asia

Copyright © First Pacific Company Limited 3 December 2021. All rights reserved.

Consumer Foods		Infrastructure		Natural Resources		Telecommunications

First Pacific has an economic interest of 50.1% in Indofood, 40.3% in ICBP, and 40.3% in Pinehill.

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First Pacific holds an economic interest of 44.0% in MPIC, 20.0% in both Meralco and Global Business Power, 53.6% in PacificLight, 23.2% in Maynilad, and 43.9% in Metro Pacific Tollways.

First Pacific has an economic interest of 31.2% in Philex and Two Rivers, a Philippine affiliate, holds 15.0%. First Pacific holds effective economic interest of 42.4% in PXP Energy, 35.9% in IndoAgri, and 50.8% in Roxas Holdings.

First Pacific holds an economic interest of 25.6% in PLDT which in turn owns 100% of Smart, its mobile telecommunications subsidiary.

Economic interest in most holdings can be found on page 29.

Earnings Rise, Dividend Up, Share Repurchases Continue

Recurring Profit Rises 38% & Interim Distribution Jumps 2.0 HK cents to 9.0 HK cents per share

• Indofood and PLDT delivered their highest-everfirst-half revenues on lockdown-induced increases in demand for both companies and, for Indofood, contribution of Pinehill businesses
• FPM Power makes first positive contribution on fuel-price competitiveness
• Contribution from operations rose 26% to $249.2 million vs. $197.4 million on strong performances by all operating companies save the sugar business RHI
• Sharply lower interest expense improved Head Office costs by $6.0 million, resulting in a 38% improvement in recurring profit to $209.5 million vs. $151.7 million
• First Pacific recorded net profit of $181.0 million vs. $100.6 million as non-recurring losses fell 90% to $5.4 million
• Interim distribution raised to 9.0 HK cents/share vs. 7.0 HK cents/share a year earlier on continuing commitment to distribute a quarter of recurring profit to shareholders
• $100 million three-year share repurchase program well under way to enhance returns to shareholders
• Operating companies forecast higher earnings over the medium term as accelerating vaccination programs prod domestic economies to new growth
• Interest coverage ratio improved to 3.5 times (next slide)

240		9M21 Recurring Profit (USD mln)
220			5.5	4.7	4.6	209.5
		6.0
200
8.7
180	29.1
160	151.7

1. (0.9)

1H20	FPNR Indofood	PLDT	Office	MPIC	Philex	Power	1H21
		Head			FPM

150									9M21 Head Office Cash Flow (USD mln)
																68.0	132.0
125
111.4
100
75
				(24.6)	(7.5)
				(6.4)	(5.1)
50					(3.8)
25
0

Opening	Cash	Expense	of shares	Overheads	investments	Oth		& Fee	Income	Cash
						Closing
							ers
		Interest	Repurchase	Corp		Net		Dividend
				.
Net

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*Mid-marketdata 1 December 2021.

Prudent Capital and Balance Sheet Management

Head Office Balance Sheet as of end-June 2021					Bonds Outstanding
o Gross debt $1.4 billion, gross debt cover 3.8x
Principal	Coupon	Price*	Term	Maturity
o Net debt $1.3 billion, net debt cover 4.0x	US$357.8 mln	4½%	103.749	10-Year	16 April 2023
o Net Debt to GAV ratio at 27%, Gearing at 80%
		US$350.0 mln	4⅜%	105.393	7-Year	11 Sept 2027
o Cash balance of $132 million

o Average debt maturity of 3.4 years

• Blended interest cost of 3.5%
• All borrowings are unsecured
• Fixed-rateborrowings amount to 74% of the total
• The Company's interest coverage ratio improved to 3.5x
• No subsidiaries, affiliates or associates have any recourse to First Pacific Head Office for any borrowings
• First Pacific's outstanding bonds (above, right) can be tracked on Bloomberg via FIRPAC

400		357.8			Head Office Borrowings at End-Nov 2021 (USD mln)
				350.0
300	300.0†
		210.0
200
				125.0			100.0
100
0
2022	2023	2024	2025	2026	2027	2028	2029
		Bank Loans			Bonds

4	† FPC has committed facilities to refinance 2022 maturities in full.

First Pacific's Investment & Management Approach

Investment Criteria & Strategies

• Geographic focus on emerging Asian economies
• Industry focus on consumer foods, infrastructure, natural resource, and telecommunications
• Companies will have strong or dominant market positions
• Companies will have potential for strong and committed profit growth, substantial cash flows and increasing dividends while following industry-leading ESG practices
• Potential co-investment in new digital and renewable energy businesses with group operating companies

Investment Objectives

• Create shareholder value by growing First Pacific's recurring earnings and dividends and increasing the share price over the medium term with emerging Asia investment focus
• By actively participating in management of operating companies grow their underlying earnings, cash flow and dividends
• Fully incorporate sustainability factors into investment decisions and management practices to manage risk and generate sustainable long-term returns

Management ApproachThree-Year Share Buyback Program Launched

o Achieve significant management influence or control	o First Pacific is currently trading at a relatively
o Engage actively in setting strategic direction,	high discount to its net asset value
business plans and performance, and ESG targets	o First Pacific has accordingly launched a three-
o Work closely with management of operating	year $100 million share repurchase program in
companies on acquisition and disposal activities	March 2021 reflecting Management's
o Develop management incentive plans including	commitment to reducing First Pacific's NAV
financial and sustainability targets to align	discount
management interests with those of stakeholders	o Repurchased shares are canceled, immediately
o Raise financial and ESG reporting standards to	increasing NAV per share, earnings per share,
world-class levels throughout the Group	and dividend per share for all shareholders

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