First Pacific Company (142) Deutsche Bank ADR Virtual Investor Conference 2025 summary

Key business highlights

• Core holdings include Indofood, Metro Pacific Investments, PLDT, and PacificLight Power, spanning food, infrastructure, telecom, and energy sectors in Southeast Asia.

• Asset base is geographically diversified: over half in the Philippines, 38% in Indonesia, and 7% in Singapore.

• Focus on defensive, essential industries with majority or significant stakes to ensure operational influence and stable cash flows.

• Progressive dividend policy aims for annual increases, with 2024 marking a record per-share distribution.

• Recurring profit has reached record highs for four consecutive years, with strong first-half 2025 growth.

Financial performance and capital structure

• Dividend income hit a record in 2023, boosted by new contributions from Singapore's PLP.

• Gross debt stands at $1.4 billion, with a balanced mix of fixed and floating rates; $200 million due in January 2025 already refinanced.

• Investment-grade credit ratings from S&P and Moody's support favorable borrowing terms.

• Market capitalization is $3.5 billion, with a price-to-earnings ratio under 5, indicating potential value.

• Capital allocation is primarily at the subsidiary level, with major CapEx in Indofood, toll roads, and Meralco.

Portfolio company updates

• Indofood continues to post record revenues, with noodles as the main revenue driver and strong EBIT margins despite commodity price volatility.

• Metro Pacific Investments was privatized in 2023 to focus on long-term growth; key assets include Meralco, toll roads, and Maynilad, with the latter's IPO scheduled soon.

• PLDT maintains steady earnings and a high payout ratio, with additional upside from its fintech arm, Maya.

• PacificLight Power in Singapore is expanding with a new hydrogen-ready plant expected online in 2029.