copyright © first pacific company limited 5 april 2016. all rights … · 2017-03-14 · 2015...

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 relied upon in connection with any contract or commitment.

Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on third party sources and involve known and unknown risks and uncertainties. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

There is no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

The dollar sign (“$”) is used throughout this presentation to represent U.S. dollars except where otherwise indicated.

2

Natural ResourcesTelecommunications

First Pacific owns 31.2% of Philex and Two Rivers, a Philippine affiliate, holds 15.0%. First Pacific holds an effective economic interest of 41.6% in Philex Petroleum, 31.4% in IndoAgri, and 40.4% in Roxas Holdings.

InfrastructureConsumer Foods

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

First Pacific owns 50.1% of Indofood and has an economic interest of 40.3% in ICBP. FPC owns 50.0% of Goodman Fielder.

First Pacific owns 52.1% of MPIC and holds economic interests of 48.0% of PacificLight, 27.5% of Maynilad, and 21.4% in Meralco.

3

Investment Objectives

Unlock value, enhance cash flows to deliver dividend returns, grow share price, and finance further investment in value-enhancing businesses

Investment Criteria

Be located in or trading with fast-growing Asian economies

Be related to our four industry sectors (telecommunications, consumer foods, infrastructure and natural resources)

Have a dominant market position in their sectors

Possess the potential for delivering substantial cash flows to investors

Allow FPC to establish management control or significant influence

30%38%28%

4%

TelecomsConsumer FoodsInfrastructureNatural Resources

PLDT$2.4 bln

30% of GAV

MPIC$1.9 bln

24% of GAV

Indofood$2.4 bln

31% of GAV

PLP$335 mln

(4%)

Data as at 31 March 2016; rounding may affect totals. Head Office cash not included.

Sugar & coconut investments $50 mln (0.6%)

Goodman Fielder$554 mln

7% of GAV

4

Note: Area of pie chart and piechart segments represents marketcapitalization (or investment costfor unlisted assets) as at 31 March2016. Rounding may affect totals.

25%34%33%

9%

TelecomsConsumer FoodsInfrastructureNatural Resources

Diversified Portfolio, Strong Returns

Balanced weighting of the more mature assets as well as newer ones

Balanced weighting of different sectors

11 years of strong growth: GAV compound annual growth rate of 17% from end-2003 to end-March 2016

CAGR of 29% in dividend income to First Pacific from 2003 to 2015

China Minzhong$454 mln

Indofood$4.8 bln

Meralco$7.9 bln

MPIC$3.6 bln

ICBP$6.7 bln

PLDT$9.3 bln

5

Plantations$2.3 bln

Manuel V. PangilinanManaging Director and CEO

Robert C. Nicholson

Executive Director

Joseph H.P. Ng

Exec. Vice President,

Group Finance

Edward A. Tortorici

Executive Director

John W. Ryan


Investor Relations

Ray C. Espinosa

Associate Director

Stanley H. Yang


Corp. Development

Chris H. Young

Chief Financial Officer

Victorico P. Vargas

Assistant Director

6

Marilyn A.

Victorio-Aquino

Assistant Director

0

2,000

4,000

6,000

8,000

10,000

Telecommunications Food/Consumer InfrastructureNatural Resources Net debt (Head Office)

277

322 320306 304

269

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015

PLDT MPIC Indofood Philex Goodman Fielder Others

$1 mln

$1 mln

$269 mln

$178 mln

$22 mln

$66 mln

$1 mln

Operating Companies Deliver Dividends

PLDT dividend policy: 75% of core income plus look-back

MPIC: 25% of core income paid in 2015

Indofood: 40% of net income plus 10% special dividend

Philex: Payout dependent on capex needs and metal prices

Goodman Fielder: Dividend increase seen in 2016

Asset Value Grows Steadily Over Time

Value of assets controlled by FPC grew by 17% compound annual growth rate from end-2003 to end-March 2016

Investment thesis to benefit from steady high growth in emerging Asian economies

FPC Management aim to continue growth in value both organically and by acquisition over time

Historical Dividend Income (USD mln)

7,860

1,212

Value of Assets (USD mln)

PLDT

MPIC

Indofood

Philex

Roxas

Fees

TOTAL

2015 Dividend Income

7

-100

0

100

200

300

400

500

2012 2013 2014 2015

PLDT Indofood Goodman Fielder

MPIC FPM Power FPNR

Philex FPM Infra Recurring profit

462.7

432.9

(28.1)

(15.0)(5.3)

(5.4) (2.2)

1.3

11.6 13.3

370

380

390

400

410

420

430

440

450

460

470

Contribution Reduced by FX, Commodity Prices, PLDT

Turnover down 6% at $6.44 billion on weak Rupiah (average exchange rate down 12% in 2015)

Total contributions down 6% at $432.9 million vs. $462.7 million, held back in dollar terms by exchange-rate weakness for the IDR and the PHP (down 2.6%), lower commodity prices for Indofood’s products and transformation at PLDT MPIC contribution up 11% to $118.2 million on strong

growth in demand for its infrastructure services Goodman Fielder makes first-ever contribution of $13.3

million following completion of acquisition in March 2015 Indofood contribution down 18% to $130.3 million on weak

Rupiah and CPO prices PLDT contribution down 8% to $180.7 million as high-margin

legacy businesses are replaced by lower-margin data-intensive revenues

Philex contribution down 52% to $4.9 million on weaker gold and copper prices and lower volumes

PLP negative contribution improves to $10.7 million vs. $12.0 million despite difficult market conditions

FP Natural Resources contribution swings to a negative $3.8 million on lower cane supply

Recurring profit down 9% at $293.9 million on higher interest and other expenses

Reported net profit rises 5% owing to lower provisioning than a year earlier

2015 Contribution (USD mln)

Contribution (USD mln)

8

0

320 300

400 400 384

0

100

200

300

400

500

2016 2017 2018 2019 2020 2021 2022 2023

Unsecured Bank Loans Secured Bonds Unsecured Bonds

Head Office Gearing & Cash Interest Cover

Head Office GearingCash Interest CoverGAV/Net DebtNet Debt (USD mln)

20140.56x

3.1x6.8x

1,228

20090.36x

9.6x8.9x

651.7

20100.46x15.5x

8.7x816.9

20110.71x

4.5x6.6x

1,170

20120.67x

4.0x7.2x

1,134

20130.51x

3.4x6.7x

1,160

Head Office Balance Sheet No Head Office recourse for subsidiary or

affiliate borrowing Cash interest cover at 2.6x Gearing at 0.79x

Head Office Asset Cover Gross assets $6.9 billion at end-2015 Gross debt $1.8 billion, gross debt cover

3.8x Net debt $1.7 billion, net debt cover 4.1x Average maturity of 4.2 years Blended interest cost of 5.3%

Head Office Borrowings Borrowings dominated by bonds: 82%

bonds, 18% bank loans Fixed borrowing costs for 82% of

borrowings offer a secure safeguard against rising interest rate trend

Unsecured debt amounts to 61% of the total

Bloomberg ticker FIRPAC <Corp> <Go>

20150.76x

2.6x4.1x

1,675

FPMH FinanceFPT FinanceFPC FinanceFPC Treasury

7⅜%6⅜%6.0%4½%

Coupon

7-Year10-Year

7-Year10-Year

Term

July 2017Sept 2020June 2019April 2023

MaturityIssuer

US$300 mlnUS$400 mlnUS$400 mlnUS$400 mln

Principal

Head Office Bond Issues at a Glance

Head Office Debt Maturity Profile (USD mln)

2.3%3.8%3.5%4.4%

YTM*

*Recent yield to maturity data from Bloomberg. 9

164,943

162,930

(4,999)

(1,291) (409)(244) (8)

13 492 984

3,449

154,000

156,000

158,000

160,000

162,000

164,000

166,000

3,561 3,796 3,847 3,712 3,572

903 877 908 842 772

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011 2012 2013 2014 2015

Service revenues Core Income

2015 Earnings Highlights Revenues down 1% at ₱162 billion as

increasing data revenues offset by declining revenues from legacy businesses

Core income down 6% to ₱35.2 billion largely on lower EBITDA and higher financing costs, partly offset by lower income tax provision

EBITDA margin down four points at 43% on replacement of high-margin legacy businesses (e.g. international long distance, SMS) by lower-margin capex-intensive data businesses like mobile internet

Weaker PHP (down 2.6% in average exchange rate) is a factor in USD translation

Cellular blended net ARPU stable all year

Outlook 2016 capex seen at ₱43 billion, similar to

2015 level amid technology push to build world-class telecommunications network

Bundling of fixed-line and mobile services to bring advantage unmatched in the market

Impact of higher quality telecommunications services is already felt across the network

Now a majority of service revenues, data services to continue growing overall share

Service revenue growth to be led by Data & Network and Broadband services

Revenues & Core Income (USD mln)

Change in Service Revenues (PHP mln)

10

0

20

40

60

80

100

120

Growing Maturing Shrinking

2012 2013 2014 2015

Evolution of Service Revenues (PHP bln)

2012

2015Growing

Maturing

Growing

Maturing

Shrink-ing

Shrinking

The Particular Advantages of PLDT’s Market Position Possession of a major fixed-line network offers enormous

advantage compared with pure-play mobile operators Extensive fixed-line coverage allows for lower backhaul

capex relative to peers Allows PLDT to offload much wireless data onto Wi-Fi

hotspots

Global Growth Continues at a Torrid Pace Mobile broadband subscriptions rose nearly 1/3 in 2015

to over 3.9 billion in 2015 Global 106% growth in mobile internet data traffic

between 2014 and 2015 40% of all mobile phone subscriptions are smartphones

11

4%

11%

19%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Australia New Zealand International

9M 2015 Revenues (USD mln) 9M 2015 EBIT (USD mln)Core EBIT Margins

Australia$17.5 mln

(17%)

New Zealand$43.9 mln

(43%)

International$41.1 mln

(40%)

Leading Australian Food Company In March 2015 First Pacific and Wilmar 50:50 joint venture bought 100% of Goodman Fielder, valuing the company at A$1.3

billion (US$1.0 billion), or US$1.4 billion enterprise valuation including debt First Pacific and Wilmar aim to turn around domestic operations which have seen earnings decline since 2010 Key strategy is to grow sales to Asia where FPC and Wilmar have strong distribution networks in fast-growing economies Leading Australian food company, owner of iconic brands strong in the Australian and New Zealand markets Producer and marketer of bread, milk, margarine, flour, dressings, condiments, dips, mayonnaise, frozen pastry, cake mix,

pies, savories, desserts, sauces, vinegar and cooking oils No.1 or No.2 positions in most of the larger product categories in which it competes with sales to over 30,000 outlets Headquartered in Sydney and employs over 6,000 people in Australasia and the Pacific Islands Manufactures products in over 40 plants in Australia, New Zealand, Papua New Guinea, Fiji and New Caledonia Note: Goodman Fielder fiscal year-end was 30 June 2015 but is now moved to 31 Dec. 2015 Data in this presentation reflect March-December nine-month data, covering the first nine months of new management

Australia$482 mln

(43%)New Zealand

$415 mln(37%)

International$220 mln

(20%)

12

Bakery

One of the largest bakers in the Australasian region with key brands Including: Helga’s, Wonder White, Nature’s Fresh and Vogel’s (under license) in addition to our growing artisan bread business

Dairy

Meadow Fresh is a leading dairy brand in New Zealand with an emerging presence in exporting dairy products to the fast-growing markets of emerging Asia

Flour & Cake Mix

Leading the baking revival across Australia, New Zealand and the Pacific by developing and innovating three core brands: White Wings, Flame and Edmonds

Spreads

Leading the way in healthy innovation in our core brands in each market, including market leaders MeadowLea and Olive Grove

Dressings & Mayonnaise

Innovating our leading brands to provide flavor variety to make fresh food an integral part of every home every day, growing across our markets

13

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2011 2012 2013 2014 2015

CBP Bogasari Agribusiness Distribution

5,174 5,345 5,286 5,350

4,763

360 348 320 332 265

0

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2013 2014 2015

Revenues Core Income

2015 Earnings Revenues up 0.7% at IDR64.1 trillion as stronger sales

in the Consumer Branded Products and Distribution businesses offset lower sales by Agribusiness and Bogasari flour units

Core income fell 10% in Rupiah terms to IDR3.56 trillion vs. IDR3.95 trillion, hurt by lower prices and higher staff costs at Agribusiness

Core income down 20% in USD terms due to 12% Rupiah depreciation vs. year earlier

EBIT margin flat at 11.5%, held up by CBP margins

Major Businesses Consumer Branded Products (noodles, dairy, snack

foods, food seasonings, nutrition and special foods, and non-alcoholic beverages)

Bogasari (flour and pasta). Largest flour miller in Indonesia and one of the world’s largest manufacturers by volume of wheat-based instant noodles

Agribusiness (oil palm, rubber, sugar cane, cocoa and tea plantations, cooking oils, margarine and shortenings). # 4 largest listed plantation company in the world, with 246,000 ha of total oil palm planted area

Distribution and Cultivation & Processed Vegetables (fresh and processed vegetables)

Extensive distribution network across Indonesia

Change in Sales by Business (IDR bln)


External sales only.

14

Noodles

Production capacity of 16.3 billion packs/year in 15 factories

Dairy

Five dairy factories of annual capacity of 650,000 tonnes

Snack Foods

Four factories with annual capacity of 49,000 tonnes

All snack foods (except biscuits) via 51%-owned subsidiary Indofood Fritolay, a joint venture with an affiliate of PepsiCo

Food Seasonings

Two food seasonings factories with annual production capacity of 138,000 tonnes (soy sauce, chili sauce, tomato sauce, bouillon, instant seasonings, cordial syrups)

Culinary products marketed & sold via 50-50 j.v. with Nestlé

Nutrition and Special Foods

Annual production capacity of 24,100 tonnes

Products are baby and infant cereal, baby and infant biscuits and milk for expectant and nursing mothers

Beverages

Indofood’s JV with Asahi to make non-alcoholic drinks began production in 2014

New categories include ready-to-drink tea, coffee and functional drinks (energy drinks)

Noodles (mln packs) Dairy (Tonnes) Snack Foods (Tonnes) Food Seasonings (Tonnes) Special Foods (Tonnes) Beverages (mln liters)

20146,730

170,280 17,920 48,380

7,070 560

20156,469

183,900 16,310 48,380

6,720 672

Key BrandsInstant Noodles Biscuits

Snacks

OilsDairy

15

2015 Sales (USD mln)

Snack Foods$148 mln (6%)

Noodles$1.56 bln

64%

Dairy$437 mln

18%

Nutrition & SpecialFoods $45.4 mln(2%)

Figures are before intersegment elimination.

Food Seasonings$92.7 mln (4%)

Toll Roads29%-100% stakes

Electricity32.5%* stake

Water52.8% stake

Hospitals60.0% stake

11 Hospitals1 Mall-Based

Diagnostic Center

*FPC Group’s total interest is 50%.

Rail/AFP20%-55% stakes

55%Light Rail Manila

20%AF Payments

CII Bridges & Roads45% stake

Cavitex100% stake

Don Muang Tollway29.45% stake

NLEX & SCTEX 75.60%

50%

34.96%

15%

Makati Medical CenterManila Doctors Hospital

Asian HospitalCardinal Santos Medical Center

Our Lady of Lourdes Hospital

De Los SantosMedical CenterCentral Luzon

Doctors HospitalRiverside

Medical CenterDavao Doctors Hospital

West Metro Medical Center

Sacred Heart Hospital of Malolos, Bulacan

MegaClinic

16

10,079

12,644

8 9 443 589

1,516

5,000

7,000

9,000

11,000

13,000

15,000

2014 Total Hospitals Rail/AFP Water Toll Roads Power 2015 Total

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009 2010 2011 2012 2013 2014 2015

Water Power Hospitals Toll Roads

510

661724

761816

118156 170 191 227

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015


2015 Earnings Highlights Core income rose 22% to ₱10.3 billion vs. ₱8.51 billion on

double-digit contribution growth by Power, Toll Roads and Water

Power contribution boosted by increased shareholding and non-electric revenues

Toll Roads boosted by traffic increase, bigger stake in MNTC and contribution from Don Muang Tollway

Water boosted by higher volumes, lower staff costs Hospitals contribution up despite sell-down of stake

Outlook FY 2016 core income difficult to forecast owing to continuing

regulatory uncertainties Major new toll road projects expected to launch in short to

medium term following CALAX and Cebu-Cordova wins Light rail and contactless payments consortiums are latest

project launches in PPP development Further infrastructure investments sought including power

generation

Contribution (PHP mln)

Change in Contribution (PHP mln)


17

Map of Mineral Assets

Silangan Mine(Boyongan &

Bayugo)

KalayaanProject

PadcalMine

Data from Philex Mining annual report and press release of October 28, 2015.Boyongan and Bayugo are Silangan ore bodies.

Total of Mining Mineral Resources

Metrictonnes(mln)

Au(‘000 oz.)

0.24 0.52 0.66

173 273 125

571

PadcalBoyonganBayugo

Total

9013,120 1,820

5,841

Cu(mln lb.)

Au(g/t)

Cu(percent)

0.48 0.72 0.66

2,680 6,300 2,700

11,680

18

Company Overview

Philex and its subsidiaries are primarily engaged in large-scale exploration, development, and utilization of mineral resources

Listed on Philippines Stock Exchange with a market cap of US$606m

Philex operates the operating Padcal mine in Benguet

SMECI, a subsidiary of Philex, owns the Silanganproject covering the Boyongan and Bayugo deposits

Philex owns 64.8% of Philex Petroleum, a listed Philippines oil & gas company

Padcal’s mine life has been extended by two years to 2022 with the declaration of additional mineral reserves

Efforts are underway to increase production at the Padcal mine

Silangan project is the development of a high grade gold and copper ore mine

Located in the northeast corner of Mindanao, 20 km south of Surigao City

Definitive feasibility study and permits expected to be completed in 2016

Targeted annual production of 107 million lb. of copper and 168,000 oz. of gold

Projected mine life over 30 years

20

SalimGroup45%

Brandes7.8%

AllOthers

11%

Shareholder Breakdown

Lazard7.0%

Brandes Investment Partners

Lazard Asset Management

Deutsche Bank Private WM

GIC Asset Management

Marathon Asset Management

MFS Investment Management

City of London IM

BlackRock Fund Advisors

Thompson Siegel & Walmsley

Kabouter Management

The Vanguard Group

Ohio Public Employees

ATR KimEng Asset Management

Asset Value Investors

Nordea IM (Denmark)

Oldfield Partners, LLP

Templeton Asset Management

Dimensional Fund Advisors

Templeton Global Advisors

State Street Global Advisors

Segantii Capital Management

Quantitative Management

Invesco Canada

Maple-Brown Abbott

Letko, Brosseau & Associates

7.8%

7.0%

4.0%

2.9%

1.8%

1.5%

1.5%

1.5%

1.4%

1.3%

1.1%

1.0%

0.95%

0.83%

0.83%

0.76%

0.72%

0.67%

0.64%

0.60%

0.56%

0.53%

0.51%

0.49%

0.48%

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

334

301

170

124

76

65

63

62

59

55

46

44

41

35

35

32

31

29

27

25

24

23

22

21

21

Institution Mln Shares %

IPREO data as at 29 February 2016. Institutional investors only. Analysis performed for First Pacific counts 256 institutional shareholders owning 2,204,464,073 shares. Total shares out: 4,268,465,603.

Core Profit F’casts (USD mln)

BofA/Merrill

Citigroup

CLSA

HSBC

Mizuho

Price Targets for First Pacific (HKD/Share)

$6.15

$6.80

$6.40

$6.50

$7.50

Target

Underperform

Buy

Underperform

Buy

Buy

Rating

31 Mar 2016

31 Mar 2016

31 Mar 2016

9 Dec 2015

31 Mar 2016

Date 2016

250

289

308

311

151

2017

288

297

346

346

198

2018

307

326

393

IPREO data as at 29 February 2016. Institutional investors only. Analysis performed for First Pacific counts 256 institutional shareholders owning 2,204,464,073 shares. Total shares out: 4,268,465,603.

Concentration Investment Style

TheRest8%

Turnover

Next 1521%

Next 2512%

of all shares held by institutionalinvestors are held by

the top 10.

Value60%Growth

15%

Index11%

Yield 1%

Other8%

Top 1059%

Alternative3%

Very Active 3% N/A11%

Low58%

Medium27%

Very Active 4%High 0.6%

Average 3603052.73$6.67

Geography

USA55%

Singapore17%

UK11%

21

*Mizuho’s figure is net profit post-nonrecurring items.

* *

22

For the year ended 31 DecemberUS$ millionsPLDT(ii)

IndofoodMPICFPW(iii)

Philex(ii)

FPM PowerFP Natural ResourcesFPM InfrastructureContribution from operations(iv)

Head Office items:- Corporate overhead- Net interest expense- Other expenses

Recurring profit(v)

Foreign exchange and derivative losses(vi)

(Loss)/gain on changes in fair value of plantationsNon-recurring items(vii)

Profit attributable to owners of the parent

2015

-4,763.4

816.5--

663.5193.6

-6,437.0

2015

180.7130.3118.2

13.34.9

(10.7)(3.8)

-432.9

(31.8)(94.4)(12.8)293.9(48.5)

(1.7)(158.6)

85.1

Contribution toGroup profit(i)Turnover

2014

-5,350.4

761.5--

729.4--

6,841.30

2014

195.7158.4106.6

-10.2

(12.0)1.62.2

462.7

(31.5)(90.0)(17.3)323.9(9.3)

0.7(234.3)

81.0

(i) After taxation and non-controlling interests, where appropriate.

(ii) Associated companies.

(iii) Joint venture.

(iv) Contribution from operations represents the recurring profit contributed to the Group by its operating companies.

(v) Recurring profit represents the profit attributable to owners of the parent excluding the effects of foreign exchange and derivative losses, loss/gain on changes in fair value of

plantations and non-recurring items.

(vi) Foreign exchange and derivative losses represent the losses on foreign exchange translation differences on the Group’s unhedged foreign currency denominated net borrowings

and payables and the changes in the fair values of derivatives.

(vii) Non-recurring items represent certain items, through occurrence or size, which are not considered as usual operating items. 2015’s non-recurring losses of US$158.6 million

mainly represent the Group’s impairment provision in respect of its investments in Philex (US$89.1 million), PLDT’s impairment provisions for its fixed assets affected by network

upgrade (US$32.7 million) and investment in Rocket Internet shares (US$28.7 million) and MPIC’s project expenses (US$5.7 mill ion). 2014’s non-recurring losses of US$234.3

million mainly represent the Group’s impairment provision in respect of its investments in Philex (US$188.0 million), PLDT’s impairment provisions for its fixed assets affected by

network upgrade (US$17.6 million), Philex and MPIC’s manpower rightsizing costs (US$4.9 million), MPIC’s project expenses (US$3.0 million) and taxes incurred in hospital

group reorganization (US$2.6 million).

23

Consolidated

US$ millionsHead Office Indofood MPIC FPM Power FP Natural Resources Group adjustments (iii)

Total Associated companies and joint venturesPLDT Goodman Fielder Philex

(i) Includes short-term deposits, pledged deposits and restricted cash.

(ii) Calculated as net debt divided by total equity.

(iii) Group adjustments mainly represents elimination of goodwill arising from acquisitions prior to 1 January 2001 against the Group’s retained earnings and other

standard consolidation adjustments to present the Group as a single economic entity.

At 31 December 2015Net

Debt(i)

1,675.31,053.31,282.3

465.4191.6

-4,667.9

2,431.7336.9182.1

TotalEquity2,112.6 3,488.4 3,202.4

397.2 215.0

(1,786.5)7,629.1

2,420.3606.6579.8

Gearing(ii)

(times)0.79x0.30x0.40x1.17x0.89x

-0.61x

1.00x0.56x0.31x

Net Debt/(cash)(i)

1,227.5 1,027.0

716.7 487.9 (3.2)

‐ 3,455.9

2,313.7 438.0 112.3

At 31 December 2014Total

Equity2,198.8 3,657.3 2,897.9

456.3 92.1

(1,585.4)7,717.0

3,011.4 980.5 604.7

Gearing(ii)

(times)0.56x 0.28x 0.25x 1.07x

‐ ‐

0.45x

0.77x 0.45x 0.19x

US$ millionsNon-current assets

Property, plant and equipmentPlantationsAssociated companies and joint venturesGoodwillOther intangible assetsInvestment propertiesAccounts receivable, other receivables and prepaymentsAvailable-for-sale assetsDeferred tax assetsPledged deposits and restricted cashOther non-current assets

Current assetsCash and cash equivalents and short-term depositsPledged deposits and restricted cash Available-for-sale assetsAccounts receivable, other receivables and prepaymentsInventories

Assets classified as held for sale

Current liabilitiesAccounts payable, other payables and accrualsShort-term borrowingsProvision for taxationCurrent portion of deferred liabilities, provisions and payables

Liabilities directly associated with the assets classified as held for sale

Net current assetsTotal assets less current liabilitiesEquity

Issued share capitalShares held for share award schemeRetained earningsOther components of equityEquity attributable to owners of the parentNon-controlling interests

Total equityNon-current liabilities

Long-term borrowings Deferred liabilities, provisions and payablesDeferred tax liabilities

At 31 December 2015(Audited)

3,061.11,151.14,360.51,023.83,151.2

9.78.8

44.1199.5

30.0312.1

13,351.9

1,612.351.7

124.8758.5631.0

3,178.31,062.64,240.9

1,241.0998.6

44.7348.1

2,632.4436.2

3,068.61,172.3

14,524.2

42.7(6.0)

1,508.71,603.53,148.94,480.27,629.1

5,363.31,128.9

402.96,895.1

14,524.2

At 31 December 2014(Audited)

2,731.81,210.73,568.41,057.62,511.8

-11.8

193.8200.2

30.9385.9

11,902.9

2,265.953.259.2

661.2717.2

3,756.7982.4

4,739.10

1,192.40912.0

51.0321.9

2,477.3335.9

2,813.21,925.9

13,828.8

42.9(8.7)

1,540.11,854.13,428.44,288.67,717.0

4,893.9850.0367.9

6,111.813,828.8

Change

12.1%(4.9%)22.2%(3.2%)25.5%

-(25.4%)(77.2%)

(0.4%)(2.9%)

(19.1%)12.2%

(28.8%)(2.8%)

110.8%14.7%

(12.0%)(15.4%)

8.2%(10.5%)

4.1%9.5%

(12.4%)8.1%6.3%

29.9%9.1%

(39.1%)5.0%

(0.5%)(31.0%)

(2.0%)(13.5%)

(8.2%)4.5%

(1.1%)

9.6%32.8%

9.5%12.8%

5.0%24

508.5

114.1

268.9 49.7

(456.6)

(115.5)(94.2) (27.6) (19.0) (0.1)

0

100

200

300

400

500

600

700

800

900

BeginningCash

Div & FeeIncome

Net NewBorrowings

NetInvestments

DividendPayments

InterestExpense

Head Office ShareRepurchases

Taxes &Others

Ending Cash

25

For the year ended 31 DecemberUS$ millionsDividend and fee incomeHead Office overhead expenseNet cash interest expenseTaxesNet cash inflow from operating activitiesNet investments (i)

Financing activities- Dividends paid- Repurchase of shares- Net new borrowings- Others

Loans to associated companies, netDecrease in cash and cash equivalentsCash and cash equivalents at 1 JanuaryCash and cash equivalents at 31 December

2015

268.9 (27.6)(94.2)

(0.3)146.8

(456.6)

(115.5)(19.0)

49.7 0.2

-(394.4)

508.5 114.1

2014

304.2 (31.0)(87.6)

(0.3)185.3 (72.7)

(115.9)(28.0)

-(0.7)

(32.7)(64.7)573.2 508.5

(i) 2015’s net investments represent principally the investments in an additional 40.2% effective interest in Goodman Fielder of US$423.4 million. 2014’s comparative amount represents principally the investments in a 9.8% interest in Goodman Fielder of approximately US$130 million and investment financings to FP Natural Resources of approximately US$35 million, partly offset by the proceeds from the transfer of a 75% interest in FPM Infrastructure Holdings Limited to MPIC of US$101 million.

Cash Flow 2015

26

(i) Based on quoted share prices applied to the Group’s economic interests.

(ii) Represents investment costs in a 50.0% economic interest in Goodman Fielder at 31 December 2015 and

based on quoted share price applied to the Group’s 9.8% interest in Goodman Fielder at 31 December 2014.

(iii) Represents investment costs in FPM Power.

(iv) Mainly represents RHI (based on quoted share price applied to the Group’s effective economic interest) and

other assets.

(v) Represent investment cost in SMECI’s convertible notes.

At 31 December US$ millionsPLDTIndofoodMPICFPWPhilexPhilex PetroleumFPM PowerFP Natural ResourcesHead Office - Other assets

- Net debtTotal valuationNumber of Ordinary Shares in issue (millions)Value per share

- U.S. dollars- HK dollars

Company's closing share price (HK$)Share price discount to HK$ value per share (%)

2014

3,589.9 2,385.3 1,493.9

100.8 390.3

32.1 335.3

63.4 112.7

(1,227.5)7,276.2 4,287.0

1.7013.24

7.6941.9

Basis(i)(i)(i)(ii)(i)(i)

(iii)(iv)(v)

2015

2,418.3 1,649.1 1,604.7

554.0 213.3

5.5 335.3

79.4 107.1

(1,675.3)5,291.4 4,268.5

1.249.675.1446.8

64,107

65,475

(2,185)

(407)

55 489

3,416

59,000

60,000

61,000

62,000

63,000

64,000

65,000

66,000

0%

10%

20%

30%

40%

50%

0

10

20

30

40

50

2011 2012 2013 2014 2015 2016F

Wireless Fixed line BPO Capex to service revenues (%)

Capex Rises to Finance Growth (PHP bln)

Data Revenues Deliver Strong GrowthMobile internet, data and broadband service

revenues at ₱49.5 billion or 30% of total service revenues and up 15% from year-ago

Maturing revenue streams (SMS, domestic cellular and fixed-line voice, others) made up 58% of service revenues or ₱93.6 billion and down 4% from year-ago

Falling revenue streams at ₱19.7 billion, down 20% and make up 12% of service revenues

Capex to Build World-Class Network Expansion of 3G and 4G access networks Buildout of 4G coverage and capacity: FD-LTE

for mobile and TD-LTE as upgrade path for fixed-wireless technologies

Continuing network optimization Enhancement of indoor penetration and

outdoor coverage via spectrum optimization, i.e. “re-farming”

Augmenting network resiliency and redundancy to improve operational stability and reliability

Increasing data center capacity to 8,000 racks

Integration of Smart and Sun networks for cost and operational efficiencies

Expansion in international connectivity and caching to improve internet speeds

49,712

49,973

(1,836) (71)

2,168

46,500

47,000

47,500

48,000

48,500

49,000

49,500

50,000

50,500

Cellular Data Svc. Rev. (PHP bln) Fixed Line Svc. Rev. (PHP bln)

27

0

10

20

30

40

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Dec-15 Jan-16

2G Only 3G & LTE

Newer Businesses Surge as Subscribers Flock to New Technology Fiber to the Home initiative runs high-capacity DSL past 850,000 homes Overall broadband subscriber growth of 27% to 5.19 million at end- 2015 Fixed-line non-service revenues (e.g. Cignal over Fibr, FamCam,) surge 64%

to ₱3.4 billion Number of 3G and LTE handsets surges 72% in year to January 2016, 2G

down 25% as customers move to smartphone culture

Data Continues to Make a Difference on Double-Digit Growth Wireless broadband subscriber base rises 32% to 3.93 million Cellular data revenues rise despite 10% fall in SMS volume owing to surge

in mobile internet revenues Corporate data revenues up 14% to ₽11.1 billion Largest data center business in the Philippines with 6 centers and 3,150

racks, expanding to 8,000 racks in 8 data centers by end-2016 Data revenues now more than half of all cellular revenues Cellular data revenues outweigh cellular voice revenues for first time at

₱50.0 billion vs. ₱45.5 billion for cellular voice Data & Other Network now more than half of all fixed-line revenues at

₱33.7 billion vs. ₱31.7 billion for all other fixed-line revenues

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2011 2012 2013 2014 2015

Fixed Smart Sun

9.9 10.9

14.1 16.1

8.3

10.4

9.7

11.1

0

10

20

30

40

50

60

2014 2015

Wireless Broadband Fixed Broadband

Mobile Internet Corporate Data

Data & Broadband Revenues (PHP bln)

Broadband Subscriptions (mln)

Handsets on Network (mln)

28

International

Crest Chicken and Tuckers Ice Cream are continuing to gain momentum in both the domestic market in Fiji (where they are the dominant brands in both their categories), and in the export market.

In Papua New Guinea, Flame Flour and Twisties are market-leading brands and continue to deliver good results. Goodman Fielder is also growing imports of MeadowLea margarine and Praise dressings and mayonnaise from Australia.

The Meadow Fresh brand of UHT milk continues to build its presence in China and South-East Asia. The products are being co-branded with both the Goodman Fielder and Meadow Fresh logos, to promote Goodman Fielder as a trusted source of quality food products from New Zealand and Australia.

Australia

Improving performance in the Baking business. Goodman Fielder Australia’s largest Bakery brand, Helga’s, delivered 6.5% volume growth in 2015 versus 2014, and the expansion into the Artisan category continues to be successful with volume growing at 13% (9M 2015 vs. 9M 2014).

Goodman Fielder is building Grocery brands that resonate with consumers, and the Praise mayonnaises and dressings are a good example of this. Praise is the number one brand in Australia, and Goodman Fielder has continued to innovate in this category to ensure the brand is meeting consumers’ needs.

A dedicated Food Services team has been launched to support this growing market segment. An innovative Food Services website has also been developed, to allow Goodman Fielder to better engage with thousands of customers with comprehensive product and ingredient information, recipes, and cooking ideas.

New Zealand

A raft of new product development in the Dairy business including the launch of organic milk and premium flavored milk and yoghurts, all under the Puhoi Valley brand. All have generated excitement from consumers and are easily exceeding the respective business cases.

An expansion of the UHT milk plant in Christchurch has been completed, increasing Goodman Fielder’s capacity to meet growth opportunities across Asia Pacific. The NZ$27 million project has seen the extension of the existing UHT building, installation of a new pasteurizing, sterilizing and palletizing line as well as the installation of a new 250 ml high speed filler.

The company’s Baking business has also embarked on new product development which has seen new premium white breads, lower carbohydrate variants, and gluten and dairy free options.

Renewed focus on the businesses sweet bake and pie offerings has seen necessary investment generate export opportunities to Australia and the Asia-Pacific region.

Edmonds continues to be New Zealand’s number one baking brand, and has expanded its range of premium flour, gluten-free flour, baking premixes, and mayonnaises and dressings to suit consumers’ evolving tastes.

29

124.4

86.5

(31.9)(7.6) (1.0)

2.6

0

20

40

60

80

100

120

140

Outlook Cost-saving and efficiency improvements, particularly in

Australia have already been identified and are being implemented

A key goal for 2016 is to expand the Asia-Pacific businesses particularly sales of diversified dairy products into China

New UHT production plant in New Zealand commissioned in late 2015

Expect to continue to see significant contributions from the International operations

Earnings Highlights International business saw its EBIT rise 4.8% to

AUD55.8 million on 9.8% sales increase to AUD298.9 million Papua New Guinea volume for flour and stock

feed rose strongly All main categories in Fiji saw sales volume growth

except stock feed China business benefited from higher milk sales

and stronger than expected volumes for bakery fats

Exports from New Zealand and Australia were higher owing to the opening of new markets and categories

New Zealand EBIT fell 11.3% to AUD59.7 million due to pricing pressure in loaf and reduced volumes in grocery, predominantly butters & spreads

New Zealand sales fell 7.4% to AUD564.4 million Australia EBIT fell 57.2% to AUD23.8 million as sales

fell 9.5% to AUD654.3 million Australia volumes were broadly in line or better

for all categories except Loaf Pricing was hurt by competitive pressure in Loaf

and increased direct marketing expense in 2015 Significant improvement in cost of sales owing to

lower input costs, overhead recoveries and reduced waste and returns, particularly in loaf

Normalized Operating EBIT (AUD mln)

30

1,977 2,210 2,312 2,385

2,526 2,360

185 225 231 205 218 222

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014 2015

Net Sales Core Income

30,813

32,564

(81) (13)

1,081

632 100 32

29,500

30,000

30,500

31,000

31,500

32,000

32,500

33,000

2015 Financial Highlights Net sales up 6% in Rupiah terms to IDR31.7 trillion vs.

IDR30.0 trillion on growth led by Noodles and Dairy Noodle sales up 5% to IDR21.0 trillion on 1% volume

growth Dairy sales up 12% to IDR5.88 trillion as volume rises

17% Snack Foods sales down 1% to IDR1.99 billion as

higher prices offset 9% volume decline Food Seasonings sales up 9% to IDR1.25 trillion as

higher prices offset 3% volume decline Nutrition & Special Foods sales up 6% to IDR610

billion as higher prices offset 4% decline in volume Beverages sales fall 4% to IDR1.84 trillion on flat

volume, lower prices Liquidity strong: cash on hand of IDR7.66 trillion

Outlook Launch of premium “Indomie My Noodlez” product

targets 70-million strong youth and child demographic

Entering new business categories, developing food service and export businesses to accelerate growth

Oil & fats products venture with Tsukishima to produce various margarines, whipped bread filling cream, batter conditioner and other products

Purchase of Danone’s liquid milk business to strengthen ability to meet demand for liquid milk

Diaper venture with Japan’s Oji marks entry into $600 million market with CAGR over 20% in medium term

Before intersegment elimination.

Net Sales & Core Income (USD mln)

Change in Sales

31

1,439 1,474 1,262 1,259

1,029

170 115 50 64 4

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015

Revenues Net Profit

2015 Financial Highlights Revenues down 8% to IDR13.8 trillion vs. IDR15.0

trillion on soft commodity prices, lower contribution from both Plantations and Edible Oils & Fats divisions

Attributable profit of IDR58 billion vs. IDR759 billion on lower sales, higher forex losses and share of losses in CMAA Brazilian sugar investment

Lower commodity prices and the weakened IDR were major factors in full year financial results

Operational Highlights Strong FFB nucleus and CPO production growth

FFB nucleus production at 3,414,000 tonnes, up 5% year on year. 4Q15 production up 14% quarter on quarter

In line with this, CPO production came in up 5% year on year at just over 1 million tonnes, up 14% in 4Q15 at 283,000 tonnes

Outlook Organic expansion focused on new plantings of oil

palm and sugar in Indonesia

CPO production capacity expanding with construction of new mills and expansion of current mill assets in 2016

Downstream: expansion of Surabaya refinery by 1,000 tonnes/day by 2017 and construction of 200 tonnes/day margarine plant at Tanjung Priok in 3Q15

Focus on maximizing productivity, tightening control of costs and continually monitoring supply chain to improve efficiencies

As at 31 December 2015, the Group has ≈ 87,057 ha of planted oil palm plasma area of which 965ha were new plantings in 2015.2015 new plantings for oil palm were 1,641 ha vs. 6,350 ha in 2014.

(1)

(2)

Indonesia Planted Area (hectares)

Planted Area

Planted Oil Palm (1)

MatureImmature

Other CropsRubberSugar CaneOthers (Tea, Cocoa)Industrial Timber

300,633

246,359 187,400

58,959

54,274 21,338 13,358

3,362 16,216

0.2%

0.1%1.2%

-3.1%

0.5%-1.7%2.3%9.6%0.3%

(2)

300,050

246,055 185,181

60,874

53,995 21,697 13,062

3,067 16,169

31 Dec. 2014 31 Dec. 2015 Change

Revenues & Net Profit (USD mln)

32

11.5%10.3%

7.3%

15.0%

4.0%

11.5%12.2%

7.0%

10.9%

3.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Indofood CBP Bogasari Agribusiness Distribution

2014 (left column) 2015 (right column)

Positioned for the Future Strong domestic growth broadly expected over

medium term with cut in fuel subsidies seen boosting economic growth

56 new products & packaging refreshes in 2015 Noodle production capacity rising with completion of

factory in Palembang in November 2015 and in Cirebon in June 2016

Increased market share in most product categories: noodles, liquid milk, biscuits, water, RTD tea

Bogasari flour milling capacity biggest in Indonesia Acquired Danone’s liquid milk business in Indonesia to

boost Indolakto fresh milk business Construction of a fifth dairy plant (in Purwosari) raises

dairy production 40% to 540,000 tonnes/year New plant produces sweetened condensed milk, ultra-

high temperature milk and sterilized bottled milk Rapidly expanding palm oil refining infrastructure to

prepare for strong increases in CPO plantation output RSPO certified palm oil increased by 45,000 tonnes in

2015 to bring total to 377,000 tonnes or 38% of total output, creating one of the world’s biggest socially and environmentally responsible producers of CPO

Sell-down of China Minzhong stake to simplify Indofood’s overall business while retaining strategic interest

At end-2015 more than 450,000 retail outlets supplied by Indofood distribution system

Share of Sales in 2015 (USD mln)

Bogasari$1.15 bln

(24%)

ConsumerBranded Products

$2.35 Bln(49%)

Agribusiness$899 mln (19%)

Distribution$370 mln (8%)

External sales only.

EBIT Margin of Business Groups

33

317335

22.7 28.7

0

50

100

150

200

250

300

350

400

2014 2015


194

212

48 56

0

50

100

150

200

250

2014 2015


413 419

198 212

0

50

100

150

200

250

300

350

400

450

2014 2015


1,2691,207

408 414

0

200

400

600

800

1,000

1,200

1,400

2014 2015

Distribution Revenues Core Income

Revenues up 9% in USD terms on traffic growth and vehicle mix on both NLEX and CAVITEX

Core income up 17% on higher equity stake and slower growth in net interest expense

NLEX sees 9% increase in traffic, CAVITEX up 8%

2015 capex more than doubles to $144 million despite tariff freeze

Revenues up 1% in USD terms on higher billed volume and inflationary tariff increase

Core income up 8% on revenue growth and lower headcount and provisions

NRW at 29.3% at end-year vs. 33.9% year-earlier

Billed volume up 4% to 482 MCM vs. 463 MCM

Scheduled rate rebasing sees regulatory uncertainty

Distribution revenues down 5% in USD terms as average distribution rate falls to ₽1.38/kWh from ₽1.56/kWh

Core income up 2% on 83% increase in non-electricity revenues

8% decline in pass-through revenues largely on lower generation charge

Core EBITDA margin flat at 12%

Revenues up 6% in USD terms on increase in outpatients served and “high-intensity” cases

Core income up 26% on slower growth in operating expenses and lower financing costs

Beds available up 4% at 2,210 vs. 2,134

9% rise in doctors to 5,869 Number of hospitals now at

10 as potential greenfield projects are considered

Maynilad (USD mln) MPTC (USD mln)

Hospitals (USD mln)Meralco (USD mln)

34

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

100

105

110

115

120

125

130

135

140

145

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Billed Volume (MCM) Average NRW (%) Period End NRW (%)

2015 Earnings Highlights

Revenue growth of 4% in PHP terms to ₱19.1 billion on 4% rise in billed volume and inflationary tariff increase of 4.2%

Billed volume up 4% to 482 million cubic meters vs. 463 million cubic meters a year earlier

Billed customers up 6% to 1.27 million vs. 1.19 million Population coverage at 9.79 million people vs. 9.68 million End-period non-revenue water down to 29.3% vs. 32.9% Capex up 84% to ₽8.01 billion, focused on wastewater

treatment for public health

Outlook Rate rebasing for period 2013-2017 remains stalled

notwithstanding Maynilad victory in arbitration at end-2014 MWSS regulator continues to refuse to implement required

tariff as Maynilad takes Finance Ministry to international arbitration in Singapore to guide it towards meeting its commitments

Actively extending network to unconnected potential customers

Acquisition of 10% stake in Subic Water and investment in PhilHydro signal further expansion plans

MPIC in joint venture with Manila Water to provide bulk water supply to Metro Cebu Water District

Minority shareholder Marubeni (20%) brings technical and engineering expertise

Volume Supplied (MCM)Volume Billed (MCM)Consolidated Volume Billed (MCM)Average NRW (%)End-Period NRW (%)End-Period Billed CustomersCapex (PHP mln)

701.0 463.2 473.4 33.9%32.9%

1,190,062 4,345

Maynilad Performance

2014 2015

698.0 481.5 493.9 31.0%29.3%

1,265,625 8,005

Change

-0.4%4%4%

-9%-11%

6%84%

Service Area & Tariffs

35

2015 Earnings Highlights Revenues up 12% in PHP terms to ₱9.69 billion on

strong traffic growth on all toll roads under management

Core income up 19% to ₱2.57 billion on lower provision for heavy maintenance, higher shareholding in MNTC and slower growth in net interest expense

Average daily vehicle entries on all four toll roads under management up 8% in 29=015 to 489,162

Outlook Arbitration underway for long-delayed toll increase

on NLEX, compensation of ₱3 billion is sought for failure to authorize mandated toll increases in 2013-2015

Arbitration to take up to 18 months

Granted Original Proponent Status for 8.3 km Cebu-Cordova Bridge project for ₽27.9 billion

Won bid to build 45 km CALA Expressway for ₽28.7 billion for IRR estimated at 10-14%

SCTEX hand-over by Government in October 2015

₱1.6 billion Segment 9 (2.4 km) opened in 2015

Segment 9 to be followed by ₱10.5 billion Segment 10 (5.6 km elevated expressway) seen operational by 2017

₱10.0 billion 7.6 km expansion of Cavitex sought

₱18.0 billion Connector Road to see Swiss Challenge later in 2016

Citi Link (8 km)Part of NLEX concession

Connector Road (8 km)Subject to Swiss Challenge

NAIA ExpresswayCAVITEX (14 km)

120K vehicles/day

Harbour Link (11 km)Part of

NLEX concession

NLEX (84 km)200K vehicles/day

CALA Expressway(45 km)

Skyway/SLEX

Note: Roads not yet built areportrayed as dotted lines.

36

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

2010 2011 2012 2013 2014 2015

Core EPS Dividend/Share Payout Ratio (RH axis)

2015 Earnings Highlights Core income up 4% to record high ₱18.9 billion

vs. ₱18.1 billion on lower tax rate and favorable impact of rulings on under-recoveries

Full-year dividend per share also up 4%, to ₱15.08 vs. core EPS of ₱16.76 for 90% payout ratio for second year in a row

Distribution revenues fell 2% to ₱55.1 billion despite 6% increase in volume sold due to lower average distribution rate of ₱1.49/kWh vs. ₱1.61/kWh

Cash and cash equivalent on the balance sheet of ₱50.8 billion at end-2015 with free cash of ₱20.5 billion

2015 energy sales of 37,124 GWh vs. 35,160 GWh led by 7% increase in residential demand and 6% in commercial demand followed by 3% rise in industrial demand

Outlook Maximum Annual Price stable at ₱1.38/kWh in

July 2015, up 42% from ₱0.97/kWh on joining First Pacific Group

Continuing investment in electricity generation to assure greater revenue diversification

Rate rebasing due to begin from July 2015 to assure continuing stable regulatory regime

Dividends Rising (PHP/Share)

Share of Power Bill (₱8.26/kWh)

Generation54%

Subsidies, Taxes,Universal Charge

12%

FIT-Allowance 0.5%

Distribution(Meralco)

18%

Transmission 11%

System Loss 4%

37

377,000 387,000 386,000

402,000 413,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

300,000

320,000

340,000

360,000

380,000

400,000

420,000

440,000

460,000

480,000

Sep Oct Nov Dec Jan

Daily Passengers (LH axis) Total Trips (RH axis)

New Investment In Light Rail Takeover of LRT1, one of three light rail lines in the

National Capital Region, in September 2015 Line currently has 20 stations along 20.7 km line from

Baclaran to Monumento MPIC has 55% stake in Light Rail Manila Corp.,

alongside Ayala Corp and Macquarie Infrastructure 32-year concession and right to build ₱65 billion rail

extension Major improvements already completed include:

station lighting, elevators, escalators, repair and refurbishment of rolling stock

Seven stations to be renovated in 2016, further 14 in 2017

Rail replacement planned gradually to allow increase in train speed to 60kph from 40kph currently to vastly boost capacity

AFP Beep Card Launches Automated Fare Payments Cards issued in Q4 2015 totaled 1.3 million vs. target

of 300,000 Beep cards now being used on more than half of all

light rail journeys In talks to introduce Beep card in retail shops, bus

transportation services and tollways Revenues seen growing sharply in 2016

Sharp Rise in Ridership

38

0

100

200

300

400

500

600

Jan

14

Feb

14

Mar

14

Ap

r 1

4

May

14

Jun

14

Jul 1

4

Au

g 1

4

Sep

14

Oct

14

No

v 1

4

Dec

14

Jan

15

Feb

15

Mar

15

Ap

r 1

5

May

15

Jun

15

Jul 1

5

Au

g 1

5

Sep

15

Oct

15

No

v 1

5

Dec

15

New Participant in Singapore Power Market

First Pacific formed 60%-40% joint venture with Meralco PowerGen (FPM Power) to purchase 70% of GMR Energy (now renamed PacificLight Power), Singapore’s newest power plant

Entered commercial operations in February 2014 Two gas-fired turbines of 400 MW each with net

capacity of 385.5 MW in each turbine Vesting contracts for ≈16% of off-take (119 MW) with

remainder available for retail and merchant deliveries First power plant in Singapore fully fueled by LNG Class F combined cycle combustion turbine power

project uses some of the world’s cleanest technology and highest thermal efficiency

Power Block of Power Plant

39

Market ShareGenerationRetail

Plant DataCapacity FactorAvailability FactorTrips / Forced Outage

8.5% 3.7%

58.1% 94.5%

13

2014

9.0% 5.5%

62.7% 97.1%

3

2015

Key Performance IndicatorsContracted Position (MW)

133

180 180

142

187 180

6.7

-16.9

15.6 11.4 13.80.4

-50

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015

Revenues Net Profit

Refined sugar

Alcohol

Raw sugar

Molasses

Liquid sugar

Tolling fees

Others

First Pacific and IndoAgri JV Invests in Philippines Sugar

2015 revenues (year-end is September 30) rose 4% to $148 million from $143 million as a surge in sales of ethanol offset a fall in sales of refined sugar

Net profit fell 28% to $7.4 million vs. $10.3 million largely due to higher cost of raw materials and lower volume of cane milled

The investment in Roxas builds on IndoAgri investment in Brazilian sugar producer and sugar plantation network in Indonesia

First Pacific-IndoAgri joint venture bought 34% stake in Roxas Holdings for $56.6 million in November 2013, later raising it to 50.9% in February 2015

First Pacific holds 70% of joint venture for effective economic interest of 40.4% in Roxas Holdings

Roxas has milling capacity of 35,500 tonnes of cane per day, more than 31% greater than the number two Philippine producer, and market share of 18% of all refining capacity

Key Performance Indicators

Raw Sugar Production (mln bags)Refined Sugar Production (mln bags)Milling Recovery (Lkg*/tonne of cane)Ethanol Production (mln liters)EBITDA (PHP mln)Return on Equity

6.8252.3952.040

14.2171,8068.0%

6.1522.0571.983

32.2581,6699.0%

2013-14 2014-152012-13

*One Lkg is one fifty-kilogram bag of sugar.

Revenues and Net Profit (USD mln)

Revenue Share 2015

31%

27%

29%

5.0462.8211.938

69.355966

0.2%

8%5%

40

297

373

217245

245 205

92

129

40 35 25 20

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014 2015


2015 Earnings Highlights Operating revenues down 14% at ₽9.36 billion as a

result of lower metal prices Core income down 19% at ₽905 million on lower

revenues Realized gold price down 10% to $1,147/oz. Realized copper price down 23% to $2.29/lb. Cost-cutting initiatives result in 13% decline in

operating expenses to ₱7.32 billion On per-tonne basis, cash production cost falls 7% to

₱502/tonne vs. ₱541/tonne

2015 Production Highlights Days of production flat at 357 in 2015 vs. 359 Ore milled at 25,768 tonnes/day, down 3% on-year

from 26,479 tonnes/day owing to upgrades and power outages

Gold production 107,887 oz., up 3% from 105,008 oz. Gold grade unchanged at 0.438 grams/tonne Copper production down 4% to 34.1 million lb. vs. 35.4

million lb. on lower grades Copper grade worsened to 0.205% from 0.212% Metal recoveries from mined ore improved as a result

of process re-engineering and higher efficiencies

Outlook Padcal mine life extended by two years to 2022 with

declaration of further proved mineral reserves Definitive Feasibility Study for Silangan Project expected

in 2016 Bulk sampling from ore body completed Declaration of Mining Project Feasibility approved by

Department of Environment and Natural Resources


12.18

11.00

(0.60)

(0.55) (0.08)

0.003 0.04

10.00

10.50

11.00

11.50

12.00

12.50

2014 CashCost perTonne

Labor Materialsand

Supplies

Power Otherexpenses

PurchaseContracts

2015 CashCost perTonne

Cash Cost per Tonne (USD/tonne)

41

Silangan Project Update Preliminary Feasibility Study for Silangan project

indicates a potential 30-year mine life with production costs below $500/oz. of gold and $1.50/lb. of copper in the first five years of production

Silangan production could begin at an initial rate of 5 million tonnes/year

Bankers have been appointed to identify a strategic partner for the Silangan Project

Positioned for the Future Padcal mine life has been extended to 2022 Efforts are underway to increase production at the

Padcal mine with resulting volume increase to somewhat offset lower grades for gold and copper

Exploration of Padcal mine meter levels 800-600 results in new measured and indicated resources on these levels

Bumolo is in the region of Padcal. Boyongan and Bayugo are Silangan ore bodies.

0

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Cost per oz. Avg. Realized Price

Gold Production Cost & Price (USD/oz.)

Grand Total of Mineral ResourcesMetrictonnes(mln)

Au(‘000 oz.)

0.20 0.20 0.52 0.66

258 22

273 125

678

PadcalBumoloBoyonganBayugo

Total

1,17296

3,120 1,820

5,937

Cu(mln lb.)

Au(g/t)

Cu(percent)

0.37 0.30 0.72 0.66

3,036 210

6,300 2,700

11,890

0.00

2.00

4.00

6.00

2011 2012 2013 2014 2015

Cost per lb. Avg. Realized Price

Copper Production Cost & Price (USD/lb.)

Purchase Contracts $60 (6%)

Materials& Supplies$326 (35%)

Power$338 (36%)

Labor$171 (18%)

Cash Cost per Troy Oz.

Other Expenses $43 (5%)

42

First Pacific Company Limited(Incorporated with limited liability under the laws of Bermuda)

24th Floor, Two Exchange Square8 Connaught Place, Central

Hong KongTel: +852 2842 4374

[email protected]

www.firstpacific.com

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