Investment Strategy and Interests - First Pacific Company Limited holds economic interests of 50.1% in Indofood, 25.6% in PLDT, and 46.1% in MPIC as of March 30, 2023[7]. - The company aims to invest in rapidly growing Asian emerging economies, focusing on consumer food, telecommunications, infrastructure, and natural resources[4]. - First Pacific's investment strategy includes targeting assets with strong growth potential and significant cash flow capabilities[4]. - The company has a 68.7% economic interest in FPM Power, 31.2% in Philex, 35.7% in PXP, and 80.9% in FP Natural Resources[7]. - First Pacific's investments are primarily located in the Asia-Pacific region, with a focus on companies that hold a strong or dominant market position in their respective industries[4]. Financial Performance - Revenue for 2022 reached $10,304.9 million, an increase from $9,103.2 million in 2021, representing a growth of 13.2%[11]. - Net profit for the year was $1,049.6 million, up from $895.7 million in 2021, indicating a growth of 17.2%[11]. - Profit attributable to equity holders was $391.6 million, compared to $333.3 million in 2021, reflecting a 17.4% increase[11]. - Operating cash flow for the year was $366.95 million, slightly down from $379.22 million in 2021[11]. - The gross profit margin for 2022 was 29.66%, a decrease from 31.07% in 2021[11]. - The return on average equity was 15.43%, up from 13.25% in 2021, showing an improvement of 16.5%[11]. - The total assets amounted to $600.98 million, down from $620.85 million in 2021[11]. - The current ratio remained stable at 1.26, consistent with the previous year's ratio[11]. - The debt-to-equity ratio was 0.82, an increase from 0.74 in 2021, indicating a rise in leverage[11]. Shareholder Returns and Dividends - First Pacific is committed to enhancing shareholder returns through dividends and share price appreciation[3]. - The dividend payout ratio was 23.46%, compared to 24.53% in 2021, indicating a slight decrease in the proportion of earnings distributed as dividends[11]. - The company plans to distribute $119.4 million, which is 24% of regular profit[23]. - The company announced a final dividend of HKD 0.115 per share, a 16% increase from the previous year, totaling $119.4 million for the year[35]. Operational Highlights - The company is actively involved in various sectors, including power generation, mining, and agriculture, to diversify its investment portfolio[7]. - The number of employees increased to 101,203 from 100,120 in 2021[12]. - First Pacific's subsidiaries include Indofood, the largest vertically integrated food company in Indonesia, and PLDT, the leading telecommunications provider in the Philippines[7]. Market and Economic Outlook - Despite global uncertainties, Indofood expects continued growth in Indonesia's GDP in 2023, supporting overall sales growth[62]. - The company anticipates continued strong economic growth in its operational markets, with management well-prepared to meet customer needs and shareholder expectations[143]. Corporate Governance and Sustainability - The company aims to improve its reporting and governance standards to meet international benchmarks[4]. - First Pacific emphasizes sustainable long-term returns by considering environmental, social, and governance factors in its investment decisions[3]. - The company has established a corporate governance committee primarily composed of independent non-executive directors to oversee governance practices[181]. - The company has implemented a whistleblowing policy to assist employees and business partners in reporting suspected misconduct[185]. - The company is committed to creating a collaborative and creative environment to enhance long-term sustainable performance for shareholders[183]. Corporate Social Responsibility - First Pacific raised over 50 million PHP (approximately 900,000 USD) for immediate financial and material assistance to affected areas in response to Typhoon Odette in December 2021[170]. - The company emphasizes environmental protection through sustainable reforestation and community engagement initiatives[167]. - The company is committed to improving community welfare through education and health initiatives[167]. - First Pacific's commitment to sustainability and corporate social responsibility is reflected in its long-term plans to improve local livelihoods and education levels[2332]. Employee Engagement and Diversity - Employee gender diversity shows a balanced ratio, with females making up 51% and males 49% as of December 31, 2022[198]. - The board has established a gender diversity target of at least 20% female representation[195]. - The company emphasizes a culture of inclusion and regularly reviews its corporate culture to ensure alignment with its values and strategies[196].

Financial Performance - Revenue increased by 13.2% from $9.1032 billion (HK$71.005 billion) to $10.3049 billion (HK$80.3782 billion) in 2022[2] - Operating profit contribution rose by 17.2% from $506.4 million (HK$3.9499 billion) to $593.3 million (HK$4.6277 billion)[2] - Net profit attributable to shareholders increased by 17.5% from $333.3 million (HK$2.5997 billion) to $391.6 million (HK$3.0545 billion)[3] - Basic earnings per share based on recurring profit rose by 21.1% from 9.88 cents (77.1 HK cents) to 11.96 cents (93.3 HK cents)[2] - The company reported a net profit of $1,049.6 million for the year ended December 31, 2022, an increase of 17.2% from $895.7 million in 2021[4] - Total revenue for the year ended December 31, 2022, was $10,304.9 million, an increase from $9,103.2 million in 2021, representing a growth of approximately 13.2%[10] - The company's recurring profit for 2022 was $508.8 million, up from $426.5 million in 2021, indicating a year-over-year increase of about 19.3%[12] Dividends and Shareholder Returns - Total dividend per ordinary share for the year increased to HK$22.00 (US$2.82) from HK$19.00 (US$2.43) in 2021[2] - The final dividend declared by the board of First Pacific is HKD 11.5 (USD 1.47) per share, an increase of 16% from HKD 10.0 (USD 1.28) in 2021, with total dividends for 2022 amounting to USD 119.4 million, representing approximately 24% of recurring profit[38] - The company repurchased shares amounting to $54.3 million during the year[5] - The company repurchased a total of 39,706,000 shares at a cost of approximately HKD 113.1 million ($14.5 million) in 2022[125] Assets and Liabilities - Total liabilities to equity ratio increased from 0.74 times to 0.82 times[2] - Net debt increased by 8.0% from $7.8655 billion (HK$61.3509 billion) to $8.4932 billion (HK$66.247 billion)[2] - The equity attributable to shareholders decreased slightly by 0.1% from $32.986 billion (HK$257.291 billion) to $32.965 billion (HK$257.127 billion)[2] - The company reported a significant increase in accounts receivable, rising to $89.2 million from $55.5 million, an increase of 60.0%[4] - The company’s total liabilities decreased to $11,017.4 million from $11,328.8 million, a decline of 2.8%[4] - The total assets as of December 31, 2022, were $7,069.3 million, down from $7,314.5 million at the beginning of the year[5] - The total assets, excluding financial instruments and deferred tax assets, amounted to $20,165.3 million as of December 31, 2021[14] Cash Flow and Financing - The net cash flow from operating activities for 2022 was $1,424.0 million, up from $1,245.9 million in 2021, representing an increase of 14.3%[7] - The net cash flow from financing activities was $4,464.6 million in 2022, a decrease from $5,941.2 million in 2021, reflecting a decline of 24.8%[7] - The company’s cash flow hedges resulted in unrealized losses of $(1,002.8) million compared to $(434.4) million in the previous year[4] - The company recorded a net cash inflow from operating activities of 155.5 million USD in 2022, compared to 136.4 million USD in 2021[106] Market and Business Segments - The company operates in four main business segments: consumer food, telecommunications, construction, and natural resources, with a focus on markets in Indonesia, the Philippines, Singapore, and the Middle East[11] - Revenue from consumer food sales was $7,478.2 million in 2022, up from $6,869.4 million in 2021, indicating a growth of about 8.9%[10] - Revenue from real estate sales in the construction segment increased to $1,755.3 million in 2022 from $1,201.3 million in 2021, reflecting a significant growth of approximately 46%[10] - The company plans to expand its market presence in Southeast Asia, particularly in Indonesia and the Philippines, where revenue contributions were $5,710.0 million and $882.9 million respectively in 2022[12] Operational Efficiency and Cost Management - The company aims to improve operational efficiency and reduce costs through strategic initiatives and potential mergers and acquisitions in the upcoming fiscal year[12] - Employee compensation costs decreased to $826.3 million in 2022 from $871.1 million in 2021, a reduction of about 5.1%[17] - The average number of employees increased to 100,668 in 2022 from 99,828 in 2021, showing a growth in workforce[30] Risk Management and Governance - The company has maintained high standards of corporate governance, with a committee primarily composed of independent non-executive directors overseeing governance practices[128] - The independent auditor, Ernst & Young, issued an unqualified opinion on the financial statements for the year ended December 31, 2022[131] - The company has updated its corporate governance code to reflect amendments to listing rules, enhancing transparency and accountability[129] Future Outlook - The group expects continued strong growth in its Southeast Asian markets and Indofood's global food business, supporting profit growth for nearly all investee companies in 2023[42] - PLDT expects mid-single-digit revenue growth and plans to reduce capital expenditures to between PHP 80 billion and PHP 85 billion[69] - The company plans to expand its market presence and invest in new technologies to drive future growth, although specific figures were not disclosed during the call[21]

Financial Performance - First Pacific Company Limited reported a revenue of $5.1 billion, representing a 20% increase compared to the previous period[7]. - The company achieved a recurring profit of $263.3 million, which is a 26% increase year-on-year[7]. - The net profit attributable to shareholders was $241.7 million, reflecting a 34% increase from the prior year[7]. - The company's revenue increased by 20% to $5.1 billion, driven by higher average selling prices of palm oil and other key products from Indofood[15]. - Reported profit increased by 34% to $241.7 million, reflecting the rise in regular profit and the recognition of non-recurring income[15]. - The company reported a total revenue of $1,784 million for the period ending June 30, 2022, representing a significant increase compared to $1,578.8 million in the previous period[126]. - The net income for the same period was $558 million, up from $399 million, indicating a growth of approximately 39.9%[126]. - The company reported a profit of $589.5 million for the six months ended June 30, 2022, compared to $497.6 million in the same period of 2021, representing an increase of approximately 18.5%[124]. Asset and Debt Management - The total assets of First Pacific increased by 3%, reaching approximately $3 billion[7]. - As of June 30, 2022, total debt amounted to approximately $1.5 billion, with a net debt of about $1.3 billion and an average maturity of 3.3 years[22]. - The company's net debt increased from $1,322.2 million on January 1, 2022, to $1,318.8 million by June 30, 2022, reflecting a change of $3.4 million[88]. - The company's debt-to-equity ratio rose to 1.09x as of June 30, 2022, compared to 0.99x on December 31, 2021, indicating a higher level of leverage[90]. - The total debt of the group amounts to $11,010.8 million, with $4,911.0 million in US dollars and $4,319.4 million in Pesos[102]. - The group has a net debt of $8,264.5 million after accounting for cash and cash equivalents[102]. Dividend and Shareholder Returns - The interim dividend per share was set at $0.135, a 22% increase compared to the previous year[8]. - The company announced an interim dividend of HKD 0.105 per share ($0.0135), a 17% increase from the previous year's interim dividend[19]. - The interim cash dividend declared was $0.105 per ordinary share, totaling $57.4 million, an increase from $49.9 million in 2021[148]. Sector Contributions - Contribution to operating profit by country showed the Philippines at 46% with $1.391 billion, Indonesia at 41% with $1.244 billion, and Singapore at 12.9% with $39 million[7]. - By sector, consumer food contributed 40% with $121 million, telecommunications 24% with $73 million, infrastructure 33% with $98.7 million, and natural resources 3% with $9.8 million[7]. - The company anticipates continued growth in its consumer goods and infrastructure segments, supported by strategic investments and market expansion initiatives[134]. Investments and Acquisitions - First Pacific's investments in Indofood, PLDT, and MPIC reflect a balanced asset allocation in core industries[3]. - An investment of $20 million was made in Voyager Innovations Holdings Pte. Ltd. to expand its digital ecosystem[18]. - The company subscribed to Philex's rights issue for a total of PHP 800 million ($15.1 million) to support the development of the Silangan project[18]. - MPIC signed an agreement to acquire 51% of The Laguna Creamery, Inc. for 198 million pesos ($3.6 million)[56]. - MPIC acquired the remaining 61.9% equity of Landco for a total consideration of 429 million pesos (8.2 million USD) on March 31, 2022[175]. Operational Efficiency and Challenges - Operating cash inflow for the first half of 2022 decreased by 4% to $58.9 million, primarily due to a depreciation in the average exchange rate of the peso against the dollar[24]. - The gross profit margin decreased from 33.6% to 30.9%, impacted by rising raw material costs, particularly for wheat flour and cooking oil[27]. - The company is optimistic about the future prospects of its core businesses, including Indofood, PLDT, and MPIC, despite ongoing macroeconomic challenges[25]. Market and Economic Outlook - The outlook for household consumption in Indonesia remains optimistic as the economy improves and travel restrictions ease, with a focus on competitiveness and cost control[38]. - The Singapore government forecasts GDP growth of 3.0% to 5.0% for 2022, indicating a continued upward trend in electricity demand[72]. - The company plans to expand its market presence and invest in new product development to drive future growth[126]. Foreign Exchange and Derivative Losses - The company recorded a foreign exchange and derivative loss of $49.7 million, up from $22.5 million in the previous year[17]. - The company experienced a foreign exchange loss of $621.3 million during the period, compared to a loss of $249.0 million in the previous year, reflecting an increase in losses of approximately 149.0%[124]. Employee and Compensation - The employee count increased to 100,968 as of June 30, 2022, from 100,333 in the previous year[121]. - The company reported a total of $441.1 million in employee compensation for the first half of 2022, slightly down from $442.2 million in the same period of 2021[120]. Sustainability and ESG Initiatives - The company aims to enhance its ESG standards to international levels while pursuing growth in emerging Asian economies[3]. - PLDT is committed to reducing greenhouse gas emissions by 40% by 2030 from a 2019 baseline, integrating sustainability into its operations[49].

Investment Interests - First Pacific Company Limited holds economic interests of 50.1% in Indofood, 25.6% in PLDT, and 44.6% in MPIC as of March 30, 2022[8]. - The company focuses on investments in fast-growing Asian emerging economies, specifically in consumer food, telecommunications, infrastructure, and natural resources[5]. - First Pacific emphasizes investments in firms with strong market positions and significant cash flow potential[5]. - First Pacific has a strategic focus on acquiring undervalued assets with high growth potential and possible synergies[5]. - The company has invested in Philex Mining Corporation, which is one of the largest metal mining companies in the Philippines, producing gold, copper, and silver[7]. - First Pacific's investment in MPIC includes significant stakes in the Philippines' largest utility and infrastructure companies[7]. Financial Performance - In 2021, MPHI reported revenue of $9,103.2 million, a 27.7% increase from $7,130.5 million in 2020[21]. - The net profit for 2021 was $895.7 million, up from $667.6 million in 2020, representing a 34.1% increase[21]. - The contribution from operations in 2021 was $506.4 million, compared to $409.7 million in 2020, indicating a 23.6% growth[21]. - Basic earnings per share increased to $7.72 in 2021 from $4.65 in 2020, reflecting a 65.5% rise[21]. - The total assets of MPHI reached $620.85 million in 2021, slightly up from $620.12 million in 2020[21]. - The gross profit margin for 2021 was 31.07%, down from 32.37% in 2020[21]. - MPHI's dividend payout ratio was 24.53% in 2021, compared to 25.21% in 2020[21]. - Total assets decreased to $26,566.7 million in 2021 from $26,943.6 million in 2020, a decline of 1.4%[22]. - Net debt reduced to $7,865.5 million in 2021, down from $8,205.6 million in 2020, representing a decrease of 4.1%[22]. - Operating cash flow increased to $1,245.9 million in 2021, compared to $1,036.6 million in 2020, an increase of 20.2%[22]. Strategic Plans and Initiatives - The company plans to expand its power business through investments in new projects and acquisitions, including the acquisition of Indolakto to enhance its dairy product portfolio[20]. - The company plans to distribute dividends of $104.6 million, which is 25% of the recurring profit[25]. - The company aims to optimize its product portfolio, launch new products, and improve customer loyalty to strengthen its market leadership[54]. - The company aims to enhance its corporate social responsibility initiatives, allocating 2% of annual profits towards community development projects[155]. - First Pacific Group maintained a dual mission in 2021 to achieve stable growth while giving back to the community, marking its 40th anniversary[161]. Corporate Social Responsibility - First Pacific's corporate social responsibility initiatives focused on education, environmental protection, and community welfare[160]. - The group provided funding and development plans for digital compatibility and community development projects[160]. - First Pacific Group donated approximately HKD 3 million (USD 384,615) to support vulnerable communities in Hong Kong, Indonesia, and the Philippines affected by the COVID-19 pandemic[162]. - In Indonesia, the Indonesian Buddhist Tzu Chi Foundation distributed over 8 million kilograms of rice to more than 1.6 million families by the end of 2021[163]. - First Pacific Group's fundraising efforts for Typhoon Odette victims in December 2021 raised over PHP 45 million (USD 911,669) to provide essential aid[164]. Governance and Compliance - The company has established a governance framework primarily composed of independent non-executive directors to oversee corporate governance practices[173]. - The company has adopted its own corporate governance code, which is updated in accordance with relevant amendments to listing rules to ensure compliance with international and local best practices[173]. - The company has implemented a whistleblowing policy to assist employees and business associates in reporting any suspected misconduct[177]. - The board of directors consists of ten members, including eight non-executive directors, five of whom are independent non-executive directors, exceeding the minimum requirement[178]. - The company has a board diversity policy that emphasizes the importance of diverse backgrounds, including gender, age, and professional experience[186]. Market and Operational Insights - The company reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2023, reaching $1.2 billion[151]. - User data showed a 20% increase in active subscribers, totaling 5 million users by the end of the quarter[152]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[154]. - A strategic acquisition of a regional competitor is anticipated to enhance operational efficiency and increase customer base by 15%[151]. - Research and development investments have increased by 30%, focusing on sustainable technologies and digital transformation[152].