Managing Director and CEO's Letter

DEAR SHAREHOLDERS

Against a backdrop of relatively benign economic conditions, with our major markets delivering growth of more than 5% in 2024, First Pacific managed to deliver a fourth year in a row of record high earnings led by our core investments in consumer foods, infrastructure, telecommunications and natural resources.

Contribution from operations was led by MPIC in its first full year as a privately held company. Its power, water, and roads businesses all delivered record highs in revenues and profitability. In fact, all three of our biggest holdings – Meralco, Maynilad, and MPTC – have delivered a doubling in core profit within four years or less.

Indofood, our largest contributor for the past decade, delivered a double-digit increase in contribution to First Pacific with its instant noodles business again leading the way with strong sales growth both domestically and in foreign markets.

PLDT ended 2024 with record high revenues and EBITDA, led by its Individual business with sharply higher ARPUs in its mobile businesses driven by the seemingly insatiable demand for data services, of which PLDT is a paramount provider. Like the Individual business, the Home and Enterprise businesses promise continuing growth while PLDT’s fintech investment, Maya, reached profitability in the last month of the year with its marketdominating offerings leading to a surge in bank depositors, balances and loans disbursed. This may be PLDT’s most exciting business.

Breaking the trend of record highs, our Singapore power provider PacificLight Power saw its earnings decline as blended non-fuel margins declined year on year in line with the rest of the domestic industry. Looking to the future, PLP was awarded the right to build a 670 megawatt hydrogen-ready Combined Cycle Gas Turbine facility scheduled to begin operations in January 2029, becoming the largest single H-class CCGT plant in Singapore, and the most efficient of its kind.

The continued development of its new gold and copper Silangan Project by Philex Mining will result in production commencing towards late 1st quarter 2026. At the same time, Philex’s half-century old Padcal mine saw its mine life extended through 2028, ensuring an overlap of revenues once the Silangan operations starts.

Looking ahead, prospects for continuing earnings growth look encouraging. The markets where we operate are moving in strength but with some potential headwinds. But the managers in our companies have planned well to ensure we remain well placed to continue delivering broad-based earnings growth. I remain confident in the outlook for the Company in the years ahead.

Yours sincerely
Manuel V Pangilinan
Managing Director and Chief Executive Officer
28 March 2025