First Pacific Company Limited

Good day, everyone. Thank you for joining the online briefing to discuss the First Pacific 2025 Three-Year Financial and Operating Results. The resource presentation is available on First Pacific's website, www.firstpacific.com, under the Investor Relations Session presentation page. This resource briefing is being recorded and the webpage will be available on First Pacific website this evening in the Investor Relations Session. For participants from the media, please watch the Q&A session. These are open for investors and analysts only. If you would like to ask questions, please contact us when the briefing is finished. Today we have with us our Executive Director, Mr. Chris Yang, our CFO, Mr. Joseph Ng, Associate Director, Mr. John Ryan, and Mr. Stanley Yang, and other senior executives from the head office of the First Pacific. Over to you, John, for the presentation, please.

um thank you sarah we'll all just to go through very quickly the first specific part of this presentation then i'll move to the q a uh for you folks now uh let's begin on page three with a quick reminder of some of our major investments um all of which have done pretty well in the course of 2025 and we'll discuss this later on now on page four we've got the shape of our gross asset value on december 31st 2025 The gap was about $5.3 billion. Indufood, just over a third. MPIC values there at $1.3 billion. The U.S. dollar value of the pesos we paid for it when it was privatized back in the autumn of 2023. We own now about 49.9% of MPIC. You might see there that PLP's valuation has increased to $398 million, and that's because we've put some money into it to help finance the building of a new power plant, which our financial controller, Richard Chan, might discuss later, if that's of interest to you folks. And then, of course, there's PLDT, our 25% or so owned telephone company. And then there's the Philex group of companies, which make up just over 10% of our gross asset value. Now let's move on to the earnings for 2025 on page 5. Turnover was up 2%, a little over $10 billion, higher revenue at Indofood and MPIC. Decline at PLP, Pacific Light Power. Contribution from operations reached a record high. I believe, like the recurring profit, it's been about seven years in a row we've had increases than the previous five have been records. uh indofood pldt mpic highest ever revenues and um mpic delivered their highest ever earnings as well now recurring profit as i say it's up a good double digit 10 to 740 million dollars up from about 673 million in 2024. net profit was up the similar number 10 to another record buying 661 million dollars Now, to a matter that is dear to the heart of many shareholders, the directors approved a final distribution of 14 Hong Kong cents a share. You folks will vote on that at the AGM. And that brings the full year distribution to 27 Hong Kong cents a share. And that's the highest ever on a per share basis that we have ever paid out. And that, of course, fits under our progressive dividend policy where we're committed to increasing the per share amount of money we distribute to shareholders every year apart from special circumstances as you can see on the middle chart here on the right hand side the increase in recurring profit was driven mostly by mpic and indofood and there were little declines at pldt and plp head office cash flow as you can see we had about 311 million dollars of dividend income, and there are the distributions gone out to you folks. That's the biggest amount of money sent out. And then the net cash interest expense follows. And if you look deeper into this book or want to discuss it later, you'll see that our interest bill is declining along with the interest amount that we're paying. Over on page six, a little bit more detail on our cash flow and balance sheet. As you can see here, at the present day, we have no borrowings falling due until September 2027, when our only bond, $350 million, becomes due. $200 million that was due in 2026, as you can see, has been shifted over by five years to 2031. Our interest cost is around about 4.6% for the year, and the average maturity is about 3.2 years. And I would guess over the course of the next 12 to 18 months, that 3.2 is going to become a bigger number. Our CFO, Joseph Ng, will discuss that in the Q&A if you like. Dividend income there on the bottom left shows that we've been consistently over $300 million. in recent years. And very important to us is the interest coverage ratio, as you can see, was 4.5 times in 2025. That's up from 4x the previous year. And that is well above our comfort level. Though it must be said, we don't have any plans for that number changing anytime soon on account of additional borrowing by us. Now, I'll wind up the narrative part of this meeting with a quick look at a reason that many people are invested in First Pacific. As you can see, from 2018 to 2025, we've had over a doubling of our profit at First Pacific. I think in 2018 it was around 290 million in recurring profit, and we're up to 740 in 2025. As you can see, the exchange rates of the Rupiah and the Peso were down about 11% and 14% respectively over that time. And what this does is it illustrates quite vividly the hard currency security of putting your money in for a specific so that you can secure the gains to be had from the fastest growing economies in the world, which are described by the IMF over in that bottom right-hand chart, where you can see there's a doubling over the 10 years to 2030 from 2020. Let me actually very quickly go through the main companies. Indofood had record sales, as I said. Core profit was up just 1% to a highest ever level. Many of you may have attended their investor briefing earlier today. If you haven't, we can discuss some more about their description of their earnings and predictions for the future, many of which we have put into the outlook for 2026. To speak briefly about that, there is an inference you can make that 2026 will be rather better than 2025. But of course, you know, we have that devil in the middle east conflict uh which we don't know how it will affect uh any of us going forward um we can discuss this later on if you like but there's pretty high confidence over at indo food now we're going to flip a few more pages to metro pacific looking at page 14. record high earnings as said before uh core profit up 15 and as you can see in the pie chart most of it was contributed by the power company moralco which is beginning to see a huge contribution from its still fairly new power generation business. They've gone into a very large LNG terminal accompanied by two natural gas fired power plants in Project Chromite. Stanley Yang, who worked on that transaction, can help discuss that later on. It just addresses that Generation is going to be a big part of earnings growth at Moralco going forward. The newly listed water company, Moralco, also was a very big contributor to the earnings there. And then the toll roads. Their contribution, as you can see, didn't grow so much, as illustrated in the bottom left. And that's because we owned, in part, it's because we owned a little bit less of it than we did earlier. Now, let's dash ahead. to PLDT, which is the biggest telecommunications firm in the Philippines. Service revenues record high, EBITDA at a record high, and the EBITDA margin still very strong at 52%. For-profit rose 1%, actually similar number to Indofoods. And it was helped for the first time ever by Maya, which is the 38%-owned fintech, which has – it's the only digital bank in the Philippines which is both owned by a telecommunications firm and has a banking license. It's a very interesting little company, and it moved into profit for the first time during the course of 2025 or so. And the falling column chart on the bottom right there shows you the usual story. It's data that has been driving earnings growth. And fixed line voice, too, in a kind of funny way. There's a big international element there. Now we'll skip past my end over to ELP. which had earnings slightly down. Sales were a little bit down as well. Market share steady at 9.6%. And as you can see, the monthly average electricity prices are down quite a bit from those powerful period of earnings we had in 2023. And that's really the main driver of how their earnings have gone over the past couple of years. Net debt is absolutely negligible at less than $40 million per Singapore dollars. Now, over to page 27, where PhilX Mining, which has been operating PadCal for six decades, I think, and it's still going strong for another few years until 2028, I believe. You can see that after six decades, the grades of gold and copper there in the blue box, they're rather lower than you might want to see. But if you want to see better, turn the page to the Solangan Project. uh which is accelerating towards the opening of commercial operations uh over in the next weeks and months and you can see that the grades there in the middle box are much much higher than what we've got going on at pad cal um we're very excited about the prospects for selenium and we think it's going to be a good solid contributor to first pacific uh going forward and to its parent philips now i'm going to end the introduction with a quick dash to page 52. where i would like us all to pay attention to the second line china securities depository and clearing um they're probably up at this day close towards 150 million shares we have now a third brokerage about to start uh equity research coverage of first pacific for mainland investors and this has been almost entirely due to the efforts of my colleague Sarah Chung, who's here two seats away. And these new mainland investors provide much-valued liquidity to the share trading and First Pacific, and we welcome them with open arms. That's it for the opening narrative. We can move over to Q&A.

If you have any questions, you can just put your questions in the chat box or just raise your hand.