Core Viewpoint - First Pacific Company Limited is focused on defensive businesses in Southeast Asia and is set to present at the dbVIC - Deutsche Bank ADR Virtual Investor Conference on May 15, 2025, to engage with investors [1][2]. Company Overview - First Pacific is a Hong Kong-based investment holding company with operations in consumer food products, telecommunications, infrastructure, and mining [6]. - The company is listed on the Hong Kong Stock Exchange and offers shares in the U.S. through American Depositary Receipts (ADR) [6]. Financial Performance - The company has experienced six consecutive years of profit growth, with the last four years achieving record highs [3]. - First Pacific's share price increased by 25% in 2023 and 45% in 2024, with a recurring price-to-earnings (P/E) ratio of 3.6x for FY 2024 [5]. Strategic Focus - First Pacific's strategy emphasizes maximizing shareholder returns through investments in defensive industries that are not significantly affected by changes in foreign trade tariffs [3]. - The company maintains a focus on emerging economies in Southeast Asia and holds majority stakes in its investments to ensure control over cash flows [8]. Key Assets - First Pacific's portfolio includes major companies such as Indofood (largest maker of instant noodles), MPTC (largest privately owned toll road operator), Meralco (largest power company), PLDT (largest telecommunications company), and Maynilad (largest water company) in the Philippines [4]. - The company is also the largest shareholder in Philex Mining, which plans to open a second gold and copper mine in 2026 [4]. Financial Health - First Pacific has low borrowings with an interest coverage ratio of 4x and has maintained investment-grade credit ratings from Moody's and S&P Global for three years [5].

Financial Performance - Revenue for 2024 was $10,057.2 million, a decrease of 4.3% from $10,510.7 million in 2023[11] - Net profit for the year increased to $1,603.3 million, up 19.5% from $1,341.4 million in 2023[11] - Profit attributable to equity holders of the parent rose to $600.3 million, representing a 19.7% increase from $501.2 million in 2023[11] - Operating contribution from core operations was $776.5 million, an increase of 10.7% compared to $701.5 million in 2023[11] - Basic earnings per share increased to 14.15 cents, up from 11.82 cents in 2023, reflecting a growth of 19.7%[11] - The total revenue for the group decreased by 4% to $10.1 billion, primarily due to a decline in PLP's revenue, offset by increased water service charges from Maynilad and traffic volume from MPTC[41] - Regular profit increased by 11% to $672.5 million, driven by profit contributions from Indofood, MPIC, and PLDT[41] Assets and Liabilities - The total assets reached $673.95 million, an increase of 4.9% from $644.87 million in 2023[11] - Total assets increased to $28,677.9 million in 2024, up from $27,357.5 million in 2023, representing a growth of 4.8%[12] - Net debt rose to $9,098.5 million in 2024, compared to $8,450.3 million in 2023, indicating an increase of 7.7%[12] - The company's equity attributable to owners increased by 6% to $3,926.2 million in 2024 from $3,688.0 million in 2023[15] - The company's total debt as of December 31, 2024, is approximately USD 1.5 billion, with a net debt of about USD 1.3 billion and an average maturity of 3.5 years[47] Profitability Metrics - The gross profit margin improved to 36.34%, up from 32.11% in 2023[11] - The return on average equity was 17.66%, compared to 17.29% in 2023, indicating a slight improvement[11] - The adjusted net asset value per share rose to HKD 7.30 in 2024, compared to HKD 6.98 in 2023, marking a growth of 4.6%[12] - The average exchange rate for the Indonesian Rupiah against the USD decreased by 4.2% year-on-year, impacting the company's financial results[43] Dividends - The dividend payout ratio was 20.65%, consistent with the previous year, maintaining shareholder returns[11] - The dividend payout for the year is projected to reach $138.9 million, reflecting a commitment to returning value to shareholders[24] - The final dividend announced by the company is HKD 0.135 per share (USD 0.0173), an increase of 11% from HKD 0.230 per share (USD 0.0295) in 2023 to HKD 0.255 per share (USD 0.0327) in 2024[45] - The company plans to continue its progressive dividend policy to provide higher cash returns to shareholders[51] Market Outlook and Strategy - The company anticipates continued positive growth in its key markets, with Indonesia and the Philippines expected to exceed 5% growth in 2024[27] - The company plans to enhance productivity and strategically invest in new projects to capitalize on emerging opportunities[27] - The company's core business markets are expected to grow by over 5% in 2024, driven by investments in consumer goods, infrastructure, telecommunications, and natural resources[33] - The company's management is optimistic about sustainable profit growth despite potential challenges, with strategic planning in place to ensure continued profitability[34] Operational Highlights - Indofood contributed $333.3 million to the group's profit in 2024, reflecting a double-digit growth, while PLDT's profit contribution was $148.5 million, up from $143.2 million in 2023[38] - PLDT's fintech investment, Maya, recorded profitability in the last month of the year, significantly increasing its banking customer base and loan disbursements[33] - The company plans to build a 670 MW hydrogen-fueled combined cycle gas turbine facility, expected to start operations in January 2029, which will be the largest of its kind in Singapore[34] - Philex Mining's Silangan project is set to commence production by the end of Q1 2026, while the Padcal mine's operational period has been extended to 2028[34] Capital Expenditures - Capital expenditures reached $1,358.4 million in 2024, an increase of 12.9% from $1,203.5 million in 2023[12] - Capital expenditures for 2024 are projected to decrease by 8% to 78.2 billion pesos ($1.4 billion), with a target to achieve positive free cash flow[88] - Capital expenditures for Meralco rose by 52% to PHP 44.7 billion (USD 779 million), reflecting network upgrades and new solar power plant developments[128] - Capital expenditures for MPTC increased by 19% to PHP 18.2 billion (USD 31.65 million), primarily for the construction of C5 South Link and Candaba[131] Corporate Governance - The board includes independent non-executive directors with diverse backgrounds in finance and management, enhancing corporate governance[192][193][194][196] - The governance structure is designed to ensure accountability and transparency, which is crucial for investor confidence[192] - The board's experience in mergers and acquisitions can facilitate future growth opportunities for the company[194][200] - The company emphasizes the importance of financial oversight and strategic planning through its experienced board members[195] Challenges and Risks - The company recorded a net foreign exchange and derivative loss of $40.2 million in 2024, compared to a gain of $19.5 million in 2023[43] - PLP's profit contribution decreased by 18% to USD 9.69 million in 2024, reflecting a decline in core profit[144] - PLP's total revenue decreased by 27% to SGD 2 billion (USD 1.5 billion) due to a drop in average selling prices[149] - The exploration activities for Service Contracts 72 and 75 have been largely suspended since 2014 and 2015, respectively, due to force majeure declarations by the Philippine Department of Energy[176]

Sara Cheung Good day, everyone, and thank you for joining us this online briefing to discuss First Pacific 2024 Full Year Financial and Operating Results. The results presentation is available on First Pacific website, www.firstpacific.com under the Investor Relations section, Presentation page. This results briefing is being recorded, and the replay will be available on First Pacific's website this evening in the Investor Relations section. For participants from the media, please note the Q&A session is op ...

Financial Data and Key Metrics Changes - The company reported record high contributions, recurring profits, and full-year distributions to shareholders, with a total payout of HKD0.25 per share [5][6] - The interest coverage ratio at the end of the year was four times, exceeding the comfort level of three times [9] - The company maintained strong cash flows and retained two investment-grade credit ratings [6][9] Business Line Data and Key Metrics Changes - Indofood achieved record revenues for the eleventh consecutive year, with EBIT margins for the Noodles division reaching 25.9%, the highest ever [10] - Metro Pacific's core profit also reached record highs, driven primarily by power, water, and toll roads, with expectations for continued strong performance in 2025 [12][13] - PLDT reported record high sales and service revenues, with mobile data and SMS showing the strongest growth [13] Market Data and Key Metrics Changes - The company increased its stake in MPIC from 46.3% to 49.9% [4] - The Philippines and Indonesia's economies are expected to double from 2018 to 2029, which may positively impact the company's performance [75] Company Strategy and Development Direction - The company plans to continue focusing on growth in its core businesses, particularly in defensive industries like power, roads, and water [75] - There is an emphasis on improving operational efficiency and reducing non-revenue water in Metro Pacific to enhance revenue [36] - The company is exploring strategic options for Maya, including potential IPO or trade sale discussions [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that current trends suggest another strong year for Metro Pacific in 2025 and 2026 [75] - The company highlighted the importance of securing long-term contracts for gas supply to mitigate past issues and enhance profitability [28] Other Important Information - The company is planning a new 600-megawatt hydrogen-ready power project expected to commence operations in January 2029 [16] - The financing mix for new power plant projects is anticipated to be approximately 60% debt and 40% equity [47] Q&A Session Summary Question: What is the expected earnings trajectory for FPM power in 2025 and 2026? - Management indicated that 2023 was an exceptional year and that profits are expected to taper gradually, with long-run marginal costs influencing future earnings [24][27] Question: Can you provide updates on the Terra Solar Phase two project? - The focus remains on Phase one of the Terra Solar project, with initial delivery expected in Q1 2026 [30] Question: What are the considerations for the spin-off of MailiNet? - The valuation is tied to strong performance and operational efficiency improvements, with a focus on reducing non-revenue water [35] Question: Will there be share buybacks given the current NAV discount? - Management stated that share buybacks are part of a dynamic capital allocation strategy and will be assessed based on liquidity and other commitments [39][41] Question: What is the financing mix for PLP's new power plant projects? - The financing is expected to consist of approximately 60% debt and 40% equity, with dividends continuing to be paid to shareholders [47] Question: What are the plans for Maya, PLDT's online bank? - Maya is experiencing significant growth, and discussions regarding its future, including potential IPO or trade sale, are ongoing [72]

Financial Data and Key Metrics Changes - The company reported record high contributions, recurring profits, and full-year distributions to shareholders, with a total payout of HKD0.25 per share [6][11][12] - The interest coverage ratio at the end of the year was four times, exceeding the comfort level of three times [8][49] - The company maintained two investment-grade credit ratings and had no borrowings due in 2025 [6][7] Business Line Data and Key Metrics Changes - Indofood achieved record revenues for the eleventh consecutive year, with EBIT margins for the Noodles division reaching 25.9%, the highest ever [9][10] - Metro Pacific's core profit also reached record highs, driven primarily by power, water, and toll roads, with expectations for continued strong performance in 2025 [11][12] - PLDT reported record high sales and service revenues, with mobile data and SMS showing the strongest growth [12][14] Market Data and Key Metrics Changes - The company noted that the electricity generation market in Singapore is expected to grow at rates exceeding 4% annually [24] - The Philippines and Indonesia's economies are projected to double from 2018 to 2029, which is expected to positively impact Metro Pacific's revenues and profits [75] Company Strategy and Development Direction - The company is focusing on capitalizing on strong growth in its core businesses, particularly in defensive industries like power and water [75][80] - There are ongoing discussions regarding the potential IPO of Metro Pacific, with a focus on finding new capital through private placements [57][62] - The company is also exploring strategic options for Maya, its fintech venture, including potential IPOs or trade sales in the future [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that current trends suggest another strong year for Metro Pacific in 2025 and 2026 [75][80] - The management highlighted the importance of improving operational efficiencies and reducing non-revenue water in Metro Pacific's water utility business to enhance valuation [33] Other Important Information - The company has secured long-term contracts for gas supply, which is expected to provide a competitive advantage in the electricity generation market [26] - The new 600 megawatt hydrogen-ready power project is anticipated to begin operations in January 2029, adding significant capacity to the portfolio [16][25] Q&A Session Summary Question: What is the expected earnings trajectory for Pacific Light Power in 2025 and 2026? - Management indicated that 2023 was an exceptional year, and while profits are expected to taper, the overall portfolio remains strong with new projects in the pipeline [24][25] Question: Can you provide updates on the Terra Solar Phase two project? - The focus remains on Phase one of the Terra Solar project, with initial deliveries expected in Q1 2026 [27][29] Question: What are the considerations for the spin-off of MailiNet? - The valuation is tied to strong performance and operational efficiencies, with a focus on reducing non-revenue water [30][33] Question: Will there be share buybacks given the current NAV discount? - Management stated that share buybacks are part of a dynamic capital allocation strategy and will be assessed based on liquidity and other commitments [35][39] Question: What is the financing mix for PLP's new power plant projects? - The financing plan anticipates approximately 60% debt and 40% equity for the project costs [45][47] Question: What are the expected returns for the new power project in Singapore? - Expected returns are projected to be in excess of 12% up to mid-teens for investments in this space [53][54] Question: Any updates on the potential IPO for Maya? - Management confirmed that Maya is at an inflection point with growing customer bases and is generating positive net income, with discussions ongoing about future strategic options [70][72]

Revenue and Profitability - Revenue decreased by 4.3% to $10,057.2 million in 2024 from $10,510.7 million in 2023[4] - Gross profit increased by 8.3% to $3,654.3 million in 2024 from $3,374.6 million in 2023[4] - Net profit attributable to shareholders increased by 19.8% to $600.3 million in 2024 from $501.2 million in 2023[5] - Basic earnings per share increased by 19.7% to $14.15 in 2024 from $11.82 in 2023[5] - Total comprehensive income for the year was $999.4 million in 2024, down from $1,375.0 million in 2023[6] - Operating profit contribution from operations increased by 10.7% to $776.5 million in 2024 from $701.5 million in 2023[5] - The company reported a net profit for the year reached $1,603.3 million, compared to $1,341.4 million in the previous year, indicating a year-over-year increase of about 19.5%[8] - The company reported a comprehensive income of $999.4 million for the year, a significant recovery from a comprehensive loss of $35.9 million in the previous year[8] - The company reported a total regular profit of $672.5 million for the year, compared to $5,245.5 million in the previous year, indicating a decrease of 87.2%[16] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.135 per share, up from HKD 0.125 per share in 2023[5] - The total proposed dividend for the year ending December 31, 2024, is $3.27 per share, an increase of 10.8% from $2.95 in 2023, totaling $1,083.8 million compared to $972.7 million in 2023[29] - The board declared a final dividend of HKD 0.135 per share, an increase of 8% from the previous year's HKD 0.125, resulting in a total dividend of HKD 0.255 per share for 2024[47] Assets and Liabilities - Non-current assets totaled $21,941.9 million in 2024, an increase from $21,299.5 million in 2023, representing a growth of 3.0%[7] - Current assets increased to $6,720.4 million in 2024 from $6,035.1 million in 2023, reflecting an increase of 11.4%[7] - Total liabilities rose to $16,747.7 million in 2024, up from $15,778.4 million in 2023, indicating a growth of 6.1%[7] - The company's equity increased to $11,930.2 million in 2024, compared to $11,566.9 million in 2023, marking a growth of 3.1%[7] - The total value of assets less current liabilities was $23,684.9 million in 2024, compared to $22,764.9 million in 2023, indicating an increase of 4.0%[7] - The total liabilities increased to $3,926.2 million by December 31, 2024, compared to $3,688.0 million at the end of 2023, reflecting a rise of approximately 6.5%[8] - The total liabilities due within one year increased to $2,548.7 million in 2024 from $2,195.3 million in 2023, indicating a rise in short-term obligations[151] Debt and Financial Ratios - The net debt increased by 7.7% to $90.985 billion as of December 31, 2024, from $84.503 billion as of December 31, 2023[5] - The debt-to-equity ratio rose to 0.76 as of December 31, 2024, from 0.73 as of December 31, 2023[5] - The total debt of the company as of December 31, 2024, is approximately $1.5 billion, with a net debt of about $1.3 billion[49] - The total debt of Indofood increased by 10% to 708 trillion Indonesian Rupiah ($4.4 billion) as of December 31, 2024[57] - The total debt increased to 2,730 billion pesos ($47 billion) with a debt-to-EBITDA ratio of 2.52 times, while the average pre-tax interest cost rose to 5.1%[76] - The total debt-to-equity ratio of the group increased to 0.76x in 2024 from 0.73x in 2023, primarily due to an increase in net debt levels, offset partially by an increase in equity reflecting profits distributed as dividends[149] Cash Flow and Investments - The net cash flow from operating activities was $1,746.5 million in 2024, slightly up from $1,730.1 million in 2023, showing a marginal increase of 0.9%[10] - Cash flow from financing activities showed a net inflow of $466.9 million in 2024, compared to $88.0 million in 2023, marking a substantial increase[10] - The company invested $692.7 million in associates in 2024, a significant increase from $69.6 million in 2023, indicating a strategic shift towards more investments[10] Employee Compensation and Expenses - The company’s employee compensation expenses related to share-based payments amounted to $1.6 million for the year, consistent with the previous year[8] - Employee compensation, including director remuneration, increased to $898.4 million in 2024 from $837.2 million in 2023, with the number of employees rising to 105,570 from 101,469[34] Market Performance and Outlook - The company’s total revenue for the year ending December 31, 2024, is expected to show growth, supported by ongoing market expansion and new product developments[35] - The outlook for 2025 remains optimistic, with a focus on balancing market share and profitability while maintaining a healthy balance sheet[70] Corporate Governance and Compliance - The company has adopted corporate governance practices in line with the applicable codes, ensuring stakeholder interests are protected[173] - The independent auditor, Ernst & Young, issued an unqualified opinion on the financial statements for the year ending December 31, 2024[176] - Detailed corporate governance practices will be disclosed in the 2024 annual report[174]

Financial Performance - The company reported a revenue of $5 billion, representing an 8% increase year-over-year[9]. - The recurring profit increased by 13%, while the reported profit rose by 20%[9]. - The company's revenue decreased by 8% to $5 billion, primarily due to a decline in PLP revenue and a 6% depreciation of the Indonesian Rupiah against the US dollar[18]. - Regular profit increased by 13% to $339.1 million, reflecting higher profit contributions from Indofood, MPIC, and PLDT[18]. - Reported profit decreased by 20% to $277.8 million, mainly due to a 6% depreciation of the Indonesian Rupiah against the US dollar, resulting in non-cash foreign exchange losses[18]. - Core profit rose by 22% from IDR 47 trillion (USD 3.11 billion) to IDR 57 trillion (USD 3.547 billion), driven by improved operating profits across all business groups[29]. - Core net profit increased by 3% to 18 billion pesos ($314.5 million) from 17.6 billion pesos ($318.3 million)[43]. - The profit attributable to the owners of the parent company for the first half of 2024 was $277.8 million, a decrease of 19.6% from $345.6 million in 2023[161]. Assets and Liabilities - The total assets reached $27 billion, reflecting a 3% growth[9]. - The net debt of the company is around $1.3 billion[9]. - Total debt for Indofood increased by 14% to IDR 73.4 trillion (USD 4.5 billion) as of June 30, 2024, up from IDR 64.5 trillion (USD 4.2 billion) at the end of 2023, with 34% maturing within the next 12 months[30]. - The total liabilities amounted to $15,799.3 million, with a notable portion related to infrastructure at $7,930.6 million[149]. - The total liabilities related to assets classified as held for sale increased from $4,592.6 million to $5,021.5 million, marking an increase of about 9.34%[137]. - The total current liabilities increased significantly from $1,814.9 million to $2,059.6 million, marking an increase of about 13.5%[137]. Market Capitalization and Dividends - The market capitalization of the company is approximately $20 billion, showing a 17% increase[9]. - The interim dividend per share is set at 1.54 cents, totaling $65.3 million[9]. - The interim dividend declared by First Pacific is HKD 0.12 (USD 0.0154) per share, representing a 14% increase from HKD 0.105 (USD 0.0135) in the first half of 2023, consistent with the growth in recurring profit[21]. - The interim cash dividend declared is 50 pesos ($0.85) per share, representing 60% of core net profit[47]. Investments and Contributions - The company focuses on investments in fast-growing emerging economies in Asia, particularly in consumer food, telecommunications, infrastructure, and natural resources[5]. - Indofood's profit contribution to the group increased by 22% to USD 167.6 million in the first half of 2024, compared to USD 137.2 million in the same period of 2023, reflecting an increase in core profit[28]. - MPIC's consolidated revenue increased by 22% to 35.8 billion PHP (624.4 million USD) from 29.4 billion PHP (532.3 million USD)[57]. - MPIC's operating profit contribution increased by 20% to 14.8 billion PHP (258.8 million USD) in the first half of 2024, driven by strong energy sales and increased traffic and tolls[56]. Foreign Exchange and Market Risks - The company faces foreign exchange risk due to unhedged USD net debt, which could affect performance based on currency fluctuations[110]. - The group's subsidiaries and associates' performance is primarily denominated in local currencies, exposing the group to foreign exchange risks upon consolidation into USD[105]. - The estimated impact on adjusted net asset value for a 1% change in exchange rates is $45.5 million, translating to an impact of 8.35 HK cents per share[106]. - A 1% change in the USD exchange rate is expected to impact the group's reported profit by $33.7 million, resulting in a net profit impact of $12.4 million[111]. Operational Performance - The average interest rate for First Pacific's debt increased from approximately 5.4% at the end of 2023 to about 5.6% due to the high interest rate environment[23]. - The cash interest coverage ratio stands at approximately 4.3 times[9]. - The cash interest coverage ratio for Indofood is approximately 6.7 times as of June 30, 2024[30]. - The company plans to continue reducing certain assets and use the proceeds primarily to pay down debt[17]. Employee and Compensation - The number of employees increased to 103,290 as of June 30, 2024, from 101,352 in 2023, marking a growth of 1.9%[124]. - Total compensation for key management personnel amounted to $65.2 million for the six months ended June 30, 2024[199]. - Employee compensation costs were $434.7 million in the first half of 2024, slightly down from $452.7 million in 2023, indicating a focus on cost efficiency[155]. Capital Expenditures and Investments - Capital expenditures decreased by 14% to 35.1 billion pesos ($612.9 million), representing 34% of service revenue, down from 41% in the first half of 2023[44]. - The capital expenditure guidance for 2024 is maintained at 75 billion to 78 billion pesos, focusing on network capacity and data traffic growth[45]. - Total capital expenditure commitments as of June 30, 2024, amounted to $1.41 billion, down from $1.86 billion as of December 31, 2023[192]. Miscellaneous - The company plans to continue product innovation and expand distribution to enhance profitability and market penetration[34]. - The company is focusing on market expansion strategies to enhance its competitive position in the industry[139]. - The company is investing in new product development and technology to drive future growth and innovation[139].

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 之 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 第 一 太 平 有 限 公 司 （根據百慕達法例註冊成立之有限公司） 網 址：www.rstpacic.com （股份代號：00142） 2024年 中 期 業 績－未 經 審 核 財務摘要 來自營運之溢利貢獻由3.487億 美 元（27.199億 港 元）增 加12.2%至3.912億 美 元（30.514億 港 元）。 經常性溢利由3.008億 美 元（23.462億 港 元）增 加12.7%至3.391億 美 元（26.45億 港 元）。 營業額由54.112億 美 元（422.074億 港 元）減 少7.7%至49.951億 美 元（389.618億 港 元）。 匯兌及衍生工具虧損為5.79千 萬 美 元（4.516億 ...

syahrir maulana/iStock via Getty Images First Pacific (OTCPK:FPAFY) (OTCPK:FPAFF) describes itself as a "Hong Kong-based investment holding company with investments located in Asia-Pacific with principal investments in consumer food products, telecommunications, infrastructure, and natural resources." Although the company is Hong Kong-based, its sources of revenue are located in the Philippines, Indonesia, and Singapore. The primary listing of the company is in Hong Kong under ticker 00142, with an average ...

Investment Interests - First Pacific Company Limited holds economic interests of 50.1% in Indofood, 25.6% in PLDT, 46.3% in MPIC, 68.8% in FPM Power, 31.2% in Philex, and 35.7% in PXP as of March 27, 2024[4]. - First Pacific's investment strategy focuses on high-growth potential assets in emerging economies, particularly in the Asia-Pacific region[3]. - The company plans to further invest in businesses with strong cash flow potential and market leadership positions[3]. - First Pacific's portfolio includes investments in PacificLight Power, Philex Mining, and PXP Energy, with a focus on energy and mining sectors[4]. Company Overview - Indofood is the largest vertically integrated food company in Indonesia and a global instant noodle brand producer, while PLDT is the leading integrated telecommunications and digital services provider in the Philippines[3]. - MPIC is a leading infrastructure investment and management company in the Philippines, with stakes in the largest power transmission, toll road, water, and healthcare companies in the country[3]. - The company is actively involved in sectors such as consumer food, telecommunications, infrastructure, and natural resources[3]. Financial Performance - Revenue for 2023 reached $10,510.7 million, an increase of 2.0% from $10,304.9 million in 2022[7]. - Net profit for 2023 was $1,341.4 million, up 27.8% compared to $1,049.6 million in 2022[7]. - Earnings attributable to shareholders increased to $501.2 million in 2023, a rise of 28.1% from $391.6 million in 2022[7]. - Operating contribution rose to $701.5 million, reflecting an 18.3% increase from $593.3 million in the previous year[7]. - The company reported a basic earnings per share of 11.82 cents, up from 9.20 cents in 2022, marking a 28.5% increase[7]. - Total assets increased to $644.87 million in 2023, compared to $600.98 million in 2022, representing a growth of 7.3%[7]. - Cash flow from operating activities improved to $40.79 million, a 22.4% increase from $33.42 million in 2022[7]. - The gross profit margin for 2023 was 32.11%, up from 29.66% in 2022, indicating a positive trend in profitability[7]. - The company’s dividend payout ratio was 20.67% in 2023, down from 23.40% in 2022, reflecting a strategic shift in capital allocation[7]. - The debt-to-equity ratio for the consolidated accounts improved to 0.73 in 2023, down from 0.82 in 2022, indicating better financial stability[7]. Sector Contributions - Indofood led the profit contribution with an operating revenue of $7.34 billion, slightly down from $7.43 billion in 2022, but still contributing $285.1 million to the group profit[30]. - PLDT's service revenue and EBITDA reached new highs, contributing $143.2 million to the group profit, reflecting growth across its three main business segments[30]. - MPIC reported record operating revenue of $1.10 billion, with a profit contribution of $159.8 million, and announced a cash dividend at a record high[30]. - PLP, a leading power supplier in Singapore, achieved record revenue and core profit, reducing its net debt by 70% and distributing $117 million in dividends[30]. Market Outlook and Strategy - The average GDP growth rate in ASEAN countries was 4.2%, with Indonesia and the Philippines showing strong growth prospects of 5.0% and 5.3% respectively for 2023[24]. - The company plans to expand its toll roads and financial technology services, indicating a focus on growth opportunities[24]. - The company remains vigilant about potential risks, including commodity price surges and geopolitical tensions, while also focusing on cost management[24]. Corporate Governance - The company has adopted a corporate governance code that includes principles and regulations outlined in the Listing Rules, with compliance noted for the year ending December 31, 2023, except for certain disclosures regarding senior management compensation[131]. - The board consists of ten directors, with five being independent non-executive directors, exceeding the requirement of at least one-third independence as per listing rules[137]. - The company has established a risk assessment committee comprising one executive director and six senior executives to oversee risk management, as it does not have a separate internal audit department[131]. - The company emphasizes a strong corporate culture that fosters collaboration and creativity, which is deemed essential for long-term sustainable performance[132]. Sustainability Initiatives - The company plans to enhance its sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[119]. - The company is committed to enhancing its corporate governance practices, with members actively participating in relevant councils and associations[128]. Related Party Transactions - The company announced a continuation of related party transactions with the Indofood Group, effective from January 1, 2023, to December 31, 2025, covering various business sectors[182]. - The total transaction amount for related party transactions with the Indofood Group for the year ending December 31, 2023, is projected to be $178.9 million[185]. - Specific transactions include $75.9 million in palm oil sales to Shanghai Resources International Trading Co. Ltd. and $48.4 million in operational services provided to IndoInternational Green Energy Resources Pte. Ltd.[184]. Strategic Acquisitions - A strategic acquisition of a local competitor is anticipated to close by Q3 2024, which is expected to enhance operational efficiencies[119]. - The acquisition offer involves purchasing approximately 36.7% of MPIC's publicly traded common shares, with a total maximum payment of 54.8 billion pesos (approximately 986 million USD) at a price of 5.20 pesos per share[179].