About First Pacific Company

First Pacific Company Limited operates as an investment management and holding company with operations located in the Asia-Pacific. The company’s principal business investments relate to consumer food products, infrastructure, natural resources and telecommunications. The company’s portfolio has a balance of assets in its core industries and markets in PT Indofood Sukses Makmur Tbk (Indofood), PLDT Inc. (PLDT), and Metro Pacific Investments Corporation (MPIC). Indofood is the largest vertically integrated food company in Indonesia and PLDT is the dominant telecommunications and digital services provider in the Philippines with the largest fixed broadband network and the most modern and sophisticated wireless network in the country. MPIC is the largest infrastructure investment management and holding company in the Philippines, with investments in the country’s largest electricity distributor, toll road operator, water distributor and hospital group. MPIC also holds substantial investments in major light rail and logistics operations, and in the largest electricity generator in the Visayas region of the Philippines. The company also invested in Philex Mining Corporation (Philex), PXP Energy Corporation (PXP), PacificLight Power Pte. Ltd. (PLP), and Roxas Holdings, Inc. (RHI). Philex is one of the largest metal mining companies in the Philippines, producing gold, copper and silver. PXP is an upstream oil and gas company with a number of service contracts in the Philippines and abroad. PLP is the operator of one of Singapore’s most efficient gas-fired power plants and RHI runs an integrated sugar and ethanol business in the Philippines. Consumer Branded Products The CBP group produces and markets a wide range of consumer branded products, offering everyday solutions to consumers of all ages across different market segments. This business group comprises the Noodles, Dairy, Snack Foods, Food Seasonings, Nutrition & Special Foods, and Beverages divisions. With approximately 50 plants located in key markets across Indonesia, CBP’s products are available across the country and are exported to approximately 60 markets around the world. Indofood’s Noodles division is one of the world’s largest producers of instant noodles and is the market leader in Indonesia. Its annual production capacity is around 19 billion packs, across a broad range of instant noodle varieties. The Dairy division has an annual production capacity of approximately 700,000 tonnes and is one of the largest dairy manufacturers in Indonesia. It produces and markets ultra high temperature processing milk, sterilized bottled milk, sweetened condensed creamer, pasteurized liquid milk, multicereal milk, milk flavored drinks, powdered milk, ice cream and butter. The Snack Foods division comes under a joint venture company with Fritolay Netherlands Holding B.V., which manages the majority of snack foods operations. The division has an annual production capacity of around 60,000 tonnes, producing western and traditional snacks, and extruded snacks. The Food Seasonings division has an annual production capacity of around 150,000 tonnes, manufacturing and marketing a wide range of culinary products, including soy sauces, chili sauces, tomato sauces, recipe mixes, and cooking aids products, as well as cordial syrups. Indofood’s Nutrition & Special Foods division is one of the market leaders in Indonesia’s baby food industry. This division has an annual production capacity of around 25,000 tonnes, producing baby cereals, baby snacks such as rice puffs, crunchies, biscuits and puddings, and noodle soup for infants and toddlers, cereal snacks for children, and cereal powdered drinks for the whole family, as well as milk products for expectant and lactating mothers. The Beverages division produces a wide range of ready-to-drink teas, packaged water and fruit-flavored drinks with a combined annual production capacity of around 3 billion liters. Bogasari Bogasari is the largest integrated flour miller in Indonesia. It operates four flour mills in the country with total combined annual production capacity of approximately 4.1 million tonnes. Bogasari produces a wide range of wheat flour products and pasta for domestic and international markets. Agribusiness The diversified and vertically integrated Agribusiness group is one of Indonesia’s largest producers of palm oil with a leading market share in branded edible oils and fats. It consists of two divisions, such as Plantations and Edible Oils & Fats, which operate through IndoAgri and its main operating subsidiaries, PT Salim Ivomas Pratama Tbk and PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (Lonsum) in Indonesia. In Brazil, Indofood Agri Resources Ltd. (IndoAgri) has equity investments in sugar and ethanol operations in Companhia Mineira de Açúcar e Álcool Participações (CMAA) and Canápolis Holding S.A. It has also invested in RHI in the Philippines. Plantations In Indonesia, the newly built chocolate factory commenced operation in May 2019. The expansion of milling facilities in Kalimantan with a 45 tonnes per hour of fresh fruit bunches (FFB) new mill was completed in September 2019. Approximately 4,000 hectares of older palms in North Sumatra and Riau were replanted with higher yielding seed varieties during the year. Edible Oils & Fats This division manufactures cooking oils, margarines and shortenings. It has an annual crude palm oil (CPO) refinery capacity of 1.7 million tonnes of CPO. Distribution The Distribution group is a strategic component of Indofood’s Total Food Solutions chain of vertically integrated operations as it has one of the most extensive nationwide distribution networks in Indonesia, covering all densely populated areas. It is well connected to both traditional and modern grocery outlets to ensure the ready availability of Indofood products to consumers across the country. The Distribution group continues to strengthen its network, leveraging on over 700,000 registered retail outlets across Indonesia to further increase Indofood’s product penetration and high product availability in retail outlets, especially in rural and newly developed areas. Power As of December 31, 2019, Global Business Power Corporation and Meralco PowerGen Corporation had combined power generating capacity of 1,759 megawatts. They are developing power projects in the Philippines with total planned capacity of approximately 3,133 megawatts through Atimonan One Energy, Inc. (A1E); Redondo Peninsula Energy, Inc.; St. Raphael Power Generation Corporation; and Mariveles Power Generation Corporation. San Buenaventura Power Limited’s 455-megawatt (net) supercritical coal-fired power plant, the first such plant in the Philippines, commenced commercial operations in September 2019. Phase 2 of Alsons Thermal Energy Corporation’s 105-megawatt expansion project began commercial operations in October 2019. A1E’s 1,200-megawatt (net) ultra-supercritical coal-fired power plants will participate in Meralco’s Competitive Selection Process once the final terms of reference are finalized. Toll Roads MPTC operates the North Luzon Expressway, the Manila-Cavitex Toll Expressway, Subic Clark Tarlac Expressway, and the Cavite-Laguna Expressway (CALAX) in the Philippines, and is a shareholder in PT Nusantara Infrastructure Tbk in Indonesia, CII Bridges and Roads Investment Joint Stock Company in Vietnam and Don Muang Tollway Public Company Limited (DMT) in Thailand. Water Maynilad Water Services Inc. (Maynilad) is the biggest water utility in the Philippines. It operates a concession that runs until 2037 for water distribution and sewerage services for the West Zone of Metro Manila. MetroPac Water Investments Corporation (MPW) is MPIC’s investment vehicle for expanding water investments outside the Maynilad concession area. MPW has investments in Metro Pacific Iloilo Water Inc. (MPIWI) and Metro Pacific Dumaguete Water Services Inc. (MPDWSI) in the Philippines, and in BOO Phu Ninh Water Treatment Plant Joint Stock Company (PNW) in Vietnam. Its combined installed capacity reached 647 million liter per day (MLD) while billed volume is 325 MLD. MPIWI and PNW commenced commercial operations in July 2019, while MPDWSI is expected to offer services within 2020. MPW is expected to begin delivering meaningful profit contribution to MPIC with the completion of the new water projects. Hospitals MPIC has the largest network of private hospitals in the Philippines with 3,235 beds as of December 31, 2019. The Hospitals business of MPHHI comprises 15 full-service hospitals across the Philippines, five primary care clinics, and three cancer centers, as well as indirect ownership of two healthcare colleges. Silangan Project The Silangan Project is a large-scale gold and copper mining project located in Surigao del Norte, at the north-eastern tip of Mindanao in the Philippines. The project contains a total of 571 million tonnes of mineral resources comprising the Boyongan, Bayugo-Silangan and Bayugo-Kalayaan ore deposits. The definitive feasibility study for Boyongan, the first phase of the Silangan Project, was completed in July 2019.This phase anticipates mineable reserves of 81 million tonnes with expected high ore grades of 0.63% copper and 1.20 grams of gold per tonne from mineral resources of 279 million tonnes. Peru Block Z-38 Peru Block Z-38 is a joint venture project between Pitkin Petroleum Limited (Pitkin), Karoon Gas Australia Ltd. (Karoon), and Tullow Oil Plc. (UK) (Tullow). Others SC 14C1 Galoc oil field produced a total of 993,761 barrels of oil through three liftings in 2019 and plans to have two liftings in 2020 with up to 300,000 barrels per cargo. Strategy The company’s strategies are to identify undervalued or underperforming assets with strong growth potential and possible synergies; manage investments by setting strategic direction, developing business plans and defining targets; and raise reporting and ESG standards to world-class levels at the company and the investee companies. Dispositions In March 2019, the company completed the sale by Oceanica Developments Limited, an indirect wholly owned subsidiary of the company, of its 50% interest in FPW Singapore Holdings Pte. Ltd. to Wilmar International Limited. In November 2019, RHI sold its entire interest of 45.1% in its associated company, Hawaiian-Philippine Company, Inc. Additional Investments In February 2019, Metro Pacific Tollways Corporation (MPTC) acquired a 100% interest in Southbend Express Services Inc. (SESI). SESI is engaged in providing manpower services to public and private offices, industrial, commercial and other establishments. In September 2019, MPIC, through its wholly-owned subsidiary, MPW, signed an 80/20 joint venture agreement with the Dumaguete City Water District (DCWD) for the rehabilitation, operation, maintenance and expansion of DCWD’s existing water distribution system and the development of wastewater facilities. In September 2019, MPTC increased its effective interest in PT Margautama Nusantara (MUN) to 81.9% from 56.9%. MUN is a private company in Indonesia engaged in the development and operation of toll roads, and manages four toll roads in Indonesia. In December 2019, MPIC completed the divestment of its 40.1% interest in MPHHI to KKR & Co. Inc. History First Pacific Company Limited was founded in 1981. The company was incorporated in 1988 in Bermuda with limited liability.