Resilience in the Face of Adversity LAST Year, Lopez Holdings Corporation Underwent a Couple of Major Changes
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MAY 2011 www.lopezlink.ph Happy birthday, Amb. Manuel M. Lopez! May 20 www.facebook.com/pages/lopezlink www.twitter.com/lopezlinkph Lopez Holdings: Resilience in the face of adversity LAST year, Lopez Holdings Corporation underwent a couple of major changes. Previously known as Benpres Holdings Corporation, it now proudly shares the name of the family that founded it, and bears a new logo that at once recalls its rich history, expresses it forward-looking char- acter and evokes its vision of a brighter, better future. Its financial restructuring also neared its successful conclusion. Turn to page 6 2010 financial May 9 pilot for Mom treats performance ‘100 Days to from Power …page 2 Heaven’…page 4 Plant Mall…page 12 Lopezlink May 2011 BIZ NEWS 2010 financial results Lopez Holdings attributable TOTAL REVENUES Net income* income up 10.7% 2009 2010 % change 2009 2010 % change +30 P1.702B P3.179B +87 LOPEZ Holdings Corporation attributable to equity holders of said Lopez Holdings president ABS-CBN P24.849B P32.185B +11 posted P13.175 billion in net in- the parent of P24.850B. FPHC Salvador G. Tirona. Lopez Holdings P24.849B P32.185B +30 P11.901B P13.175B come attributable to equity hold- completed the sale of a 6.6% In 2010, Lopez Holdings re- EDC P22.07B P24.90B +13 P3.31B P4.12B +24 ers of the parent in 2010. The stake in Meralco in March 2010. ported a gain on extinguishment First Gen $1.022B US$1.2B +22 $16.7M $70.2M +319 amount is 10.7% higher than the FPHC’s consolidated revenues of debt of P446 million compared FPHC P59.1B P64.3B +9 P8.7B P24.9 +186 P11.901B reported in 2009. reached P64.3B in 2010, with sale to the gain of P7.522B in 2009. ABS-CBN Corporation, of electricity accounting for 82%. The gain on extinguishment of *Net income attributable to equity holders of the parent which is consolidated in Lopez “FPHC investees in power gen- debt is due to the debt buyback Holdings financial statements, eration and even in manufacturing made by the company for 2010 had a record performance in are expected to provide stable in- and 2009. As part of its efforts 2010. It registered a net income come streams in the medium term. to restructure its existing finan- EDC reports 31% of P3.178B, up 87% year-on- ABS-CBN is adapting well to the cial obligations, Lopez Holdings, year as total revenues grew 30% competitive environment in its subject to availability of cash, has from 2009 to P32.185B. industry and is continuously inno- an offer to buy back its debt at a Equity in net earnings in- vating to achieve further growth. discount to principal. gain in net income creased by 164.8% to P11.118B Lopez Holdings will continue to As of December 31, 2010, from P4.198B, as affiliate First support its associated companies Lopez Holdings held a 57.3% ENERGY Development Cor- compared to 2009, gross reve- loan portfolio mix with the Philippine Holdings Corporation to enhance value and provide bal- economic interest in ABS-CBN poration (EDC) posted a net in- nue from the sale of steam and settlement of the Miyazawa II (FPHC) reported a net income anced returns to all stakeholders,” and 44.3% in FPHC. (CPS) come of P4.4 billion, up by 31% electricity increased by P5.1B, loan. This further reduced our from the P3.4B reported in 2009. or 26.9%, from P19B even as exposure to the movements of The increase is primarily attrib- sales volume decreased slightly the Japanese yen.” utable to the full year electricity by 665.6 GWh, or 8.1%, from EDC’s hydroelectric power revenues from its power genera- 8,214.2 GWh. plants in Pantabangan, Nueva FPH’s net income tion subsidiary Green Core “The consistent upward trend Ecija contributed P2.1 billion Geothermal Inc. which operates in our income results is the prod- in electricity revenues from the the Tongonan and Palinpinon uct of our two-pronged strategy 348.5 GWh sold. This is 71.5% geothermal power plants. of driving growth and manag- better than the P1.2B revenues surges to P24.9B Electricity sales from the ing risks,” EDC president and from the previous year due to 6,883 GWh sold amounted to COO Richard Tantoco said. “As the completion of refurbish- FIRST Philippine Holdings total purchase price of P22.4B. It FPH’s manufacturing arm, P22.9B accounting for 94.6% we completed our acquisition ment and upgrade of Unit 1 of (FPH) posted a significant retains a 6.6% stake in Meralco First Philippine Electric Cor- of EDC’s P24.2B total gross targets and aggressively pursued the hydroelectric power plant growth in net income attribut- and is entitled to nominate one poration (First Philec), grew its revenues from the consolidat- growth opportunities both in that also increased the power able to parent of P24.9 billion in director, among other rights. net income attributable to par- ed steam and electricity sales the domestic and international generation capacity by 10 MW. 2010 from P8.7B in 2009. Net First Gen Corporation re- ent threefold from P55.3M to volume of 7,548.6 GWh. As fronts, we also improved our (Toni Nieva) income increased due to gain ported a net income attribut- P159.9M. In December 2010, from sale of Meralco shares cou- able to parent of $70.2M for its subsidiary First Philec So- pled with strong performance of 2010, up by 318% from $16.8M lar Corporation inaugurated its its subsidiaries and affiliates and posted last year. The substantial second production facility, and lower debt level. increase was due to higher earn- First Philec Nexolon Corpora- ABS-CBN net income On March 30, 2010, FPH ings posted by Energy Devel- tion, a joint venture with Nexo- completed the sale of an ad- opment Corporation, First Gas lon Corporation of Korea, was ditional 74.7 million shares in Power Corporation and First incorporated. Meralco to Beacon Electric As- Gas Hydro complemented by jumps to P3.2B First Philippine Industrial set Holdings Inc. FPH received the positive effects of the com- Park Inc. (FPIP) posted a net THE consolidated net income took effect in February 2010, time expenses for performance- payment of P300 per share or a pany’s deleveraging program. income of P312.3M compared of ABS-CBN Corporation and political advertisements. based pay and nonrecurring to P726.5M the previous year. jumped by P1.5 billion or 87% Consumer sales in 2010 corporate initiatives. Net in- FPIP generated revenues of to P3.2B in 2010. amounted to P10.4B, post- come attributable to sharehold- P873M in 2010 versus P1.2B ABS-CBN delivered consol- ing a slight 1% increase or ers for 2010 is P3.2B, a P1.5B in 2009. The recorded revenues idated revenues of P32.2B from P60 million from a year ago, or 87% improvement over last were the company’s second advertising and consumer sales, mainly from SKYCable. SKY- year’s net income. highest ever. posting an increase of P7.3B or Cable contribution share to Earnings before interest, Rockwell Land reported a 30% year-on-year. total consumer sales increased taxes, depreciation and amor- high net income of P801.2M, Advertising revenues rose to 38% with it its subscription tization (EBITDA) reached representing a 26% year-on- 50% or P7.3 in 2010, reach- and service revenue contribut- P8.6B, yielding an EBITDA year growth. Revenues for 2010 ing P21.7B. This increase is ing P3.9B, or P348M more margin of 27% for 2009, and reached P4.9B, a 20% increase attributable to the surge in to- than 2009. ABS-CBN Global’s 33% or P2.1B better than 2009 from the previous year. (Hazel tal advertising minutes sold, contribution share amounted to EBITDA of P6.5B. Capital Velasco) programmed rate increase that 49%, while that of ABS-CBN expenditure and film and pro- First Gen has an effective 40% economic interest in EDC Film Production Inc. or Star gram rights acquisition in 2010 Cinema amounted to 13%. amounted to P3.7B, P738M or First Gen consolidated revenues hit $1.2B Total expenses grew by P3.8B 25% higher than the level of or 20% year-on-year to P23.4B, spending from previous year. FIRST Gen Corporation re- Hydro Power Corporation and in revenues from the sale of elec- that directly owns 40% of EDC. driven mostly by higher produc- (Paul Michael Villanueva) ported higher attributable net Energy Development Corpora- tricity by $222.1M or 22% to In 2010, Red Vulcan reduced tion costs and general and ad- income to parent of $70.2 mil- tion (EDC). These developments $1.2B in 2010 from $1B in 2009. its debt by 40% or P5.5B, from ministrative expenses (GAEX). SAVE THE DATE lion for 2010, up by 319% from were complemented by the posi- For 2010, First Gas plants deliv- P13.8B to P8.3B. Total production costs in 2010 $16.7M posted last year. Consol- tive effects of the company’s de- ered stable earnings of $130.1M. First Gen’s consolidated net in- rose by P1.6B or 25% to P7.9B, May 11: First Gen Corp. idated revenues also jumped by leveraging program,” First Gen There was a notable increase come in 2010 increased by $26.0M as ABS-CBN strategically in- annual meeting, PSE $222.1M or 22% to $1.2 billion president Giles Puno said. in equity in net earnings from or 27% to $121.0M, compared to creased programming hours of Auditorium, 9 am in 2010 from last year’s $1.0B.