Shareholders Presentation June 28 2007 JG Summit Holdings - a Leading Philippine Conglomerate
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Shareholders Presentation June 28 2007 JG Summit Holdings - A Leading Philippine Conglomerate JG Summit Holdings, Inc. Foods, Property Development Agro-Industrial & Telecommunications and Hotel Management Commodity Food Products 59.2% 60.0% 32.6% 49.8% Universal Robina Robinsons Land United Industrial Digital Telecommunications Phil. Inc Corporation Corporation Corporation 100% Digitel Mobile Philippines Inc. Air Transportation International Capital & Other Supplementary Petrochemicals Financial Services Businesses 100% 82.3% 100% 20.0% JG Summit Capital Cebu Air, Inc JG Summit First Private Petrochemical Corp. Services Corporation Power Corporation 100% 100% *JG Summit decreased its interest in URC from 86% to 59.2% in February 2006. Robinsons Unicon Insurance **JG Summit decreased its interest in RLC from 85% to 60% in October 2006. Savings Bank Brokers Corp. ***JG Summit increased its indirect interest in UIC to 32% in December 2006, and is at 32.55% as of June 27, 2007. 2 Overview of JG Summit’s Listed Subsidiaries JG Summit Holdings Market Cap: USD 1.8 B Attributable Market Cap in Listed Sub: USD 2.3 BN 59.2% 60.0% 49.8% 32.6% Universal Robina Robinsons Land DIGITEL UIC Group Market Cap: USD 882 MM Market Cap: USD 1.1 B Market Cap: USD 213 MM Market Cap: USD 3.0 BN [USD 522 MM] [USD 681 MM] [USD 106 MM] [USD 991 MM] Listed on the Singapore Listed on the Philippine Stock Exchange Stock Exchange (1) Market capitalization as of 27 June, 2007. Parentheses indicate JG Summit’s attributable market cap (2) Exchange rates as of 27 June 2007: PHP46.58=US$1; SGD1.538=US$1 3 JG Summit Holdings Inc Overview Successful International Offerings US$300MM 7-year put 5 US$ 240MM Primary and US$ 223MM Primary and Reg S Bond Offering Secondary Offering of 730M Secondary Offering of 933M Common Shares Common Shares Issue Date ¾ 18 January 2006 ¾ 14 February 2006 ¾ 04 October 2006 Pricing ¾ 8.00% coupon ¾ Php 17.00 per share ¾ Php 12.00 per share Transaction ¾ First bond offering from a Highlights Philippine corporate in 2006 ¾ Increased free float from ¾ Increased free float from 3.5% to 40.7% 7.2% to 40.0% ¾ Upsized to US$300m from US$200m due to strong ¾ Raised Php 4.8 billion ¾ Raised Php 5.2 billion investor demand from the primary offer from the primary offer ¾ Transaction was 7 times oversubscribed Lead Manager ¾ Credit Suisse First Boston ¾ UBS Investment Bank ¾ UBS Investment Bank 5 Other Major Developments 2006 ¾ Completed re-fleeting program, replacing DC-9 and Boeing 757 aircraft with a more efficient Airbus 319/320 fleet. ¾ Continued roll-out of the mobile network of Digitel Mobile, bringing total capacity to around 6 million subscribers ¾ Wrote down assets of our petrochemicals subsidiary ¾ Discontinued textile manufacturing and printing businesses and wrote down the assets of the same 6 JG Summit Holdings’ Diversified Line of Businesses Consolidated Revenues (PhP mm) Group Net Income (PHP mm) 86,062 6,459 67,871 2,627 4,177 3,881 22,996 4,509 3,207 1,746 20,014 3,832 1,746 675 1Q 06 1Q 07 1Q 06 1Q 07 2005 2006 2005 2006 Food, etc. Telecommunications Investments, etc. Petrochemicals Air Transportation Property / Hotels Non Recurring Income Others Excludes discontinued operations (Textiles, Printing) Source: Company filings, Fiscal Year End 31 December. 7 EBITDA Breakdown Group EBITDA (PHP mm) EBITDA Breakdown (PhP MM) 25,182 YoY BUSINESS UNIT 2005 2006 2,705 Growth 21,008 Food, etc. 6,853 8,095 +18% Telecommunications 2,744 1,847 (-33%) Property/Hotels 2,611 3,553 +36% Air Transportation 651 2,190 +237% 8,916 6,159 Investments and Others 8,621 6,791 (-21%) 3,207 22,476 21,480 TOTAL 21,480 22,476 +5% 5,709 6,159 *Excluding non-recurring items 2005 2006 1Q 06 1Q 07 Non Recurring Items Source: Company filings, Fiscal Year End 31 December 8 Total Assets and Stockholders Equity Total Assets (PHP mm) Stockholders Equity* (PHP mm) 227,952 220,367 71,238 198,517 69,552 63,849 2005 2006 1Q 07 2005 2006 1Q 07 Source: Company filings, Fiscal Year End 31 December * Excludes Minority Interest 2005 2006 1Q 2007 Net Debt to Equity Ratio 0.74 0.49 0.49 Gearing Ratio 1.23 0.96 0.91 Book Value per Share 9.39 10.23 10.48 9 Key Subsidiaries Universal Robina Corporation (“URC”) 2006 Revenue Breakdown by Business Revenues (PHP mm) 35,184 Agro- 31,199 Industrial 14% 9,153 9,199 Commodity 1Q 06 1Q 07 Foods 2005 2006 10% Equitized Net Income (PHP mm) 2,176 1,786 BCF International BCF Domestic 601 22% 54% 419 2005 2006 1Q 06 1Q 07 Source: Company filings, Fiscal Year End 30 September 11 Robinsons Land Corporation (“RLC”) 2006 Revenue Breakdown by Business Revenues (PHP mm) 6,636 Residential 5,112 Condominiums 23% 1,719 2,063 2005 2006 1Q 06 1Q 07 Hotels Group Equitized Net Income (PHP mm) 14% Commercial 1,111 1,032 Housing Centers Division Office 49% 7% Buildings 7% 354 364 Source: Company filings, Fiscal Year End 30 September 2005 2006 1Q 06 1Q 07 12 Digital Telecommunications (“Digitel”) 2006 Revenue Breakdown by Business Revenues (PHP mm) 8,296 7,634 Data & Internet 4% 2,019 1,939 2005 2006 1Q 06 1Q 07 Wireless 38% Equitized Net Income (PHP mm) Fixed Line 58% (748) (480) 22 (219) 2005 2006 1Q 06 1Q 07 Source: Company filings, Fiscal Year End 31 December 13 Cebu Air, Inc. (“Cebu Pacific”) 2006 Revenue Breakdown by Business Revenues (PHP mm) 9,717 Excess 7,811 3,195 Baggage Cargo 1.9% 8.0% 1,963 2005 2006 1Q 06 1Q 07 Equitized Net Income (PHP mm) 560 Passengers and Others 90.1% 134 4 (93) Source: Company filings, Fiscal Year End 31 December 2005 2006 1Q 06 1Q 07 14 Other Interests JG Petrochemicals Int’l Capital and Financial Services* Revenues (PHP mm) Revenues (PHP mm) 5,304 6,720 5,047 13,864 4,885 3,042 1,411 567 2005 2006 1Q 06 1Q 07 2005 2006 1Q 06 1Q 07 Equity Income (PHP mm) Equity Income (PHP mm) 6,867 3,246 (2,766) (355) (14) (136) 2005 2006 1Q 06 1Q 07 1,935 585 1Q 06 1Q 07 2005 2006 * Includes equity income from UIC. Source: Company filings, Fiscal Year End 31 December 15 Leadership in Various Core Markets… Foods, Agro-Industrial & Commodity Foods International Capital & #1 in RTD Tea, Savory Snacks, Financial Services Candies and Chocolates #2 in Instant Noodles and Tomato Sauce Telecommunications Petrochemicals #2 Fixed Line Operator #3 Mobile Operator #1 Polypropylene #1 Polyethylene Property Development and Hotel Management #2 Number of Shopping Malls Other Leading provider of BPO and call Supplementary center space in the country Businesses Air Transportation #1 Domestic Airline 16 Thank You. 17.