About First Philippine Holdings

First Philippine Holdings Corporation engages in the power generation, real estate development, manufacturing, construction services and other businesses. Segments Power Generation This segment includes First Gen Corporation (First Gen). First Gen is the major clean and renewable independent power producer in the Philippines, with installed capacity of 3,490 megawatts (MW) as of December 31, 2017. All of First Gen’s power generation plants are operational and are majority-owned and controlled by First Gen through its subsidiaries. First Gen engages in the business of power generation through various operating companies, such as First Gas Power Corp. (FGPC), which operates the 1,000 MW Santa Rita natural gas-fired power plant; FGP Corp. (FGP), which operates the 500 MW San Lorenzo natural gas-fired power plant; Prime Meridian Powergen Corporation, which operates the 100 MW Avion natural gas-fired power plant; First Natgas Power Corp. (FNPC), which operates the 420 MW San Gabriel natural gas-fired power plant; FG Bukidnon Power Corporation (FG Bukidnon), which operates the 1.6 MW FG Bukidnon mini-hydroelectric power plant; Energy Development Corp. (EDC), with an aggregate installed capacity of approximately 1,340 MW of geothermal, wind and solar power; and First Gen Hydro Power Corp. (FG Hydro), which operates the 132 MW Pantabangan-Masiway hydroelectric power plants. AlliedGen Power Corp. (AGPC) wholly-owns FNPC, the project company of the 420 MW San Gabriel natural gas-fired power plant (San Gabriel). AGPC is a wholly-owned subsidiary of First Gen. FNPC is the project company of the San Gabriel that is located adjacent to the existing Santa Rita and San Lorenzo power plants in Santa Rita, Batangas City. The San Gabriel project serves the mid-merit and the base load requirements of the Luzon Grid. FNPC entered into a power supply agreement with Manila Electric Company (Meralco) for the sale and purchase of approximately 414 MW of baseload capacity. As a wholly-owned subsidiary of First Gen, FGES markets and sells electricity generated by First Gen and EDC to address the power requirements of contestable customers. In addition, it provides value added services relevant to its core business. FGES holds a retail electricity supplier license effective for a period of five years from May 2016 until May 2021. EDC and its subsidiaries are primarily engaged in the business of exploring, developing, and operating geothermal energy and other indigenous renewable energy projects in the Philippines, and utilizing geothermal energy and other indigenous renewable energy sources for electricity generation. EDC conducts commercial operations in the four of its fifteen geothermal contract areas: Tongonan, Kananga, Leyte - EDC operates three geothermal steamfield projects in Leyte, which deliver steam to the Tongonan geothermal power plant, owned by EDC’s subsidiary, Green Core Geothermal Inc. (GCGI), and the four EDC-owned Unified Leyte geothermal power plants. Southern Negros, Valencia, Negros Oriental - EDC operates two geothermal steamfield projects in Southern Negros, which deliver steam to the two GCGI-owned Palinpinon geothermal power plants and EDC-owned Nasulo geothermal power plant. Bacon-Manito, Albay and Sorsogon - EDC operates two geothermal steamfield projects, which deliver steam to two Bac-Man Geothermal Inc. (BGI)-owned geothermal power plants in Albay and Sorsogon. Mt. Apo, Kidapawan, Cotabato - EDC operates one geothermal steamfield project, which delivers steam to two EDC-owned geothermal power plants on Mt. Apo. Aside from its geothermal business, EDC operates hydroelectric power plants through FG Hydro, a 60%-owned subsidiary of EDC. FG Hydro generates revenue from the sale of electricity generated by its 132 MW PMHEPP located in Nueva Ecija. EDC also operates EBWPC, a wholly-owned subsidiary of EDC that started to generate electricity from its 150-MW Burgos Wind located in Ilocos Norte, which was sold to the WESM until April 2015. EDC also operates solar energy projects, which includes the 6.82-MW Burgos Solar Project (Phases 1 and 2) located in Burgos, Ilocos Norte and EDC Siklab Power Corporation’s solar rooftop installations in various Gaisano malls. The two-phased Burgos Solar Project achieved commercial operations on March 5, 2015 for Phase 1 and January 19, 2016 for Phase 2. On April 17, 2015, EDC received the FIT COC for its Burgos Solar Project - Phase 1, which was granted by the ERC on April 6, 2015. The FIT COC specifies that the project, having a total capacity of 4.16 MW is entitled to the FIT rate of ?9.68 per kWh, subject to adjustments as may be approved by the ERC, from March 5, 2015 to March 4, 2035. On March 1, 2016, the ERC issued to EDC the FIT COC for the Burgos Solar Project - Phase 2. The COC specifies that the project, having a total capacity of 2.66 MW is entitled to the FIT rate of ?8.69 per kWh, subject to adjustments as may be approved by the ERC, from January 19, 2016 to January 18, 2036. Real Estate Development This segment includes the company’s following investments: Rockwell Land is a premier property developer for residential and commercial projects that cater to the high-end and upper-mid markets mainly in Metro Manila. It primarily engages in the residential development of high-rise condominiums, as well as in retail and office leasing and cinema and hotel operations. The company holds a 70% stake in First Philippine Industrial Park (FPIP), with the remaining 30% owned by Sumitomo Corporation. FPIP primarily purchases, acquires, owns, holds, and subdivides industrial land. It is tasked to develop and manage an industrial estate for sale or lease to various manufacturing or service-oriented entities. FPIP is registered with Philippine Economic Zone Authority (PEZA) pursuant to Republic Act (R.A.) 7916, as amended, as an Ecozone Developer/Operator. First Philippine Realty Corporation (FPRC) primarily leases, owns, acquires, or sells real and personal properties. FPRC is a wholly-owned subsidiary of the company. The company’s wholly-owned subsidiary, First Philippine Properties Corporation (FPPC), primarily acquires, leases, develops, and manages any land and real estate. FPPC owns various subsidiaries, which are involved in the same nature of business. In 2015, FPPC acquired, through its wholly-owned subsidiaries, First Industrial Township, Inc.; First Industrial Township Utilities, Inc.; and First Industrial Township Water, Inc. (collectively as FIT group or FIT) properties located at the Philtown Industrial Park, Tanauan, Batangas, consisting of land and improvements with a total area of 464,961 square meters. Manufacturing This segment includes various subsidiaries, such as Philippine Electric Corporation (Philec); First Philec, Inc (FPI); First Sumiden Circuits, Inc. (FSCI) and First Sumiden Realty, Inc. (FSRI); and First Philippine Electric Corporation (First Philec). First Philec’s manufacturing operations are conducted through the following subsidiaries: The company engages in the manufacture of EU components, such as current, dry-type and small kilo-volt ampere distribution transformers, distribution and power transformers, automatic voltage regulators (AVRs) and special line equipment (SLEs) and technical servicing. First Philec Manufacturing Technologies Corporation (FPMTC) was established to serve as a vehicle for growth for the manufacturing group’s electrical businesses. First Philec established First Philec Solar Corporation (FPSC), a joint venture with SunPower Philippines Manufacturing Ltd. that is engaged in the production of solar-grade silicon wafers that form the core in the production of high-efficiency solar cells and panels for solar energy generation. First PV Ventures Corporation’s (First PV) primary purpose is to invest in, purchase or dispose of real and personal property, specifically in the businesses of solar power and generation and other alternative sources of energy and manage the businesses of all its operating units. First PV own 70% interest in First Philec Nexolon Corporation (FPNC) with remaining 30% owned by a Korean company, Nexolon Co. Ltd (Nexolon). Construction and Other Services The following are the company’s investments in this segment: First Balfour Inc. (First Balfour) is the construction company within the company. Under First Balfour are ThermaPrime Drilling Corporation (TDC), Therma One Transport Corp (Therma One) and Torreverde Corp. First Balfour engages into the construction of power plants, transmission lines, and electro-mechanical works for industrial plants and related activities. TDC is involved in providing services for the drilling and workover of exploratory or developmental geothermal wells. Therma One engages in the hauling, trucking and delivery of all kinds of goods, materials and, in relation therewith, the renting and leasing of trucks, tractors, vans, buses, trailers and other forms of motor vehicles, and light and heavy equipment for use in transportation, construction and related services. Torreverde Corp. engages in the business of quarrying and the production of rocks, stones and other related products, and to search and prospect quarrying sites and produce, develop and crush concrete aggregates and other related products and transport for trading and distribution. Asian Eye Institute, Inc (AEI) is an eye institute that serves local and foreign patients for a range of specialized medical services, delivered in the safety and comfort of modern facilities, and using some of the most advanced technology available in the world. Primarily to service the fuel transport needs of Meralco and the oil refineries in Batangas, First Philippine Industrial Corporation (FPIC) operates the country’s major commercial petroleum pipeline. FPIC is 60% owned by the company with Shell Petroleum Co., Ltd (UK) owning the remaining 40%. FPIC has a pipeline concession, which was granted under R.A. 387, otherwise known as the Petroleum Act of 1949 as amended. Power Distribution - Meralco The company has a 3.95% ownership in Meralco that is classified as available-for-sale financial asset. History First Philippine Holdings Corporation was founded in 1961.