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

Conference highlights

• Presented full-year 2024 results, with an update on Q1 numbers expected soon and anticipated to be similar.

• Focus remains on emerging Asia, investing in consumer food, infrastructure, telecommunications, and natural resources.

• Portfolio includes dominant businesses: Indofood (instant noodles), Metro Pacific (infrastructure), PLDT (telecom), and Philex Mining.

• Gross asset value at end of March was $5.3 billion, with Indofood as the largest holding.

• Four consecutive years of record profits and dividends, with a progressive dividend policy aiming for annual increases.

Financial performance and outlook

• Earnings growth led by Indofood and MPIC, with recurring profit and cash income rising steadily.

• Dividend income expected to exceed $300 million annually, supporting growing shareholder distributions.

• Maintains investment-grade credit ratings, with manageable debt maturities and interest costs just over 5%.

• Share price discount to net asset value narrowed from 60% to 35% between end-2022 and March 2024.

• Analyst coverage from Citi and CLSA values the company and its assets significantly higher than internal estimates.

Business segment updates

• Indofood achieved record revenues and core profit, driven by instant noodles, with strong margins and global growth potential.

• Metro Pacific's main contributors are power (Meralco), toll roads, and water, with water segment set for IPO in July.

• Toll roads in Indonesia and the Philippines continue to see robust growth, benefiting from regional economic expansion.

• PLDT's growth is fueled by data services, with Maya digital bank turning profitable and targeting the unbanked population.

• Pacific Light Power in Singapore had a record year and is expanding with new hydrogen-ready and fast-start power plants.

• Philex Mining expects a turnaround with the new Silangan mine, offering higher ore grades and production ramp-up.