C O V E R S H E E T for SEC FORM 17-A SEC Registration Number C S 2 0 0 6 0 4 4 9 4 C O M P A N Y N A M E M E T R O P A C I F I C I N V E S T M E N T S C O R P O R A T I O N A N D S U B S I D I A R I E S PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province ) 1 0 t h F l o o r , M G O B u i l d i n g , L e g a s p i c o r n e r D e l a R o s a S t r e e t s , L e g a s p i V i l l a g e , M a k a t i C i t y Form Type Department requiring the report Secondary License Type, If Applicable A C F S C O M P A N Y I N F O R M A T I O N Company’s Email Address Company’s Telephone Number Mobile Number [email protected] +632-888-0888 – No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day) 1,307 as of 12.31.2019 Last Friday of May December 31 CONTACT PERSON INFORMATION The designated contact person MUST be an Officer of the Corporation Name of Contact Person Email Address Telephone Number/s Mobile Number Mr. David J. Nicol [email protected] +632-8888- – 0888 CONTACT PERSON’s ADDRESS 10/F MGO Building, Legaspi corner Dela Rosa Streets Legaspi Village, Makati 0721 Philippines NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated. 2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies. SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-A ANNUAL REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SECTION 141 OF THE CORPORATION CODE OF THE PHILIPPINES 1. For the fiscal year ended December 31, 2019 2. SEC identification number CS200604494 3. BIR Tax Identification No. 244-520-457-000 4. Exact name of issuer as specified in its charter METRO PACIFIC INVESTMENTS CORPORATION 5. Province, country or other jurisdiction of incorporation or organization Makati City, Philippines 6. Industry Classification Code: (SEC Use Only) 7. Address of issuer's principal office Postal Code 10/F MGO Bldg., Legaspi cor. Dela Rosa Sts., Legazpi Village, 0721 Makati City 8. Issuer's telephone number, including area code (632) 8888 0888 9. Former name, former address and former fiscal year, if changed since last report N/A 10. Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the RSA Title of each Class Number of shares of common stock outstanding and amount of debt outstanding Common Shares 31,568,738,752* *Reported by the stock transfer agent as at February 29, 2020 and excluded the shares held by the Company 11. Are any or all of these securities listed on the Philippine Stock Exchange? Yes [ x ] No [ ] 12. Check whether the registrant: a) has filed all reports to be filed by Section 17 of the SRC and SRC Rule 17 thereunder or Section 11 of the RSA and RSA Rule 11 (1)-1 thereunder and Sections 26 and 141 of the Corporation Code of the Philippines during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); Yes [ x ] No [ ] b) has been subject to such filing requirements for the past 90 days. Yes [ x ] No [ ] 13. State the aggregate market value of the voting stock held by non-affiliates of the registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold; or the average bid and asked price of such stock, as of a specified date within sixty (60) days prior to the date of filing. If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided the assumptions are set forth in the Form. The aggregate market value of voting stocks held by non-affiliates representing 57.75% of outstanding common shares is P=55,972 million, computed on the basis of the closing price as at February 29, 2020 of P=3.07 per share. METRO PACIFIC INVESTMENTS CORPORATION SEC FORM 17-A December 31, 2019 TABLE OF CONTENTS PART I – BUSINESS AND GENERAL INFORMATION ................................................................... 1 Item 1. Description of Business .................................................................................................... 1 Item 2. Description of Properties ................................................................................................ 41 Item 3. Legal Proceedings ........................................................................................................... 43 Item 4. Submission of Matters to a Vote of Security Holders .................................................... 43 PART II – OPERATIONAL AND FINANCIAL INFORMATION .................................................... 44 Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters .................. 44 Item 6. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD & A) ................................................................................................................. 48 Financial Highlights and Key Performance Indicators .................................................. 48 Operational Review ........................................................................................................ 50 I - MPIC Consolidated ................................................................................................... 50 II - Operating Segments of the Group ............................................................................ 54 MPIC Consolidated Statement of Financial Position ..................................................... 61 Liquidity and Capital Resources .................................................................................... 65 Comparison of Other Financial Years ............................................................................ 66 2018 versus 2017 ........................................................................................................... 66 2017 versus 2016 ........................................................................................................... 80 Item 7. Consolidated Financial Statements ................................................................................. 97 Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures .................................................................................................................................. 97 PART III – CONTROL AND COMPENSATION INFORMATION .................................................. 98 Item 9. Directors and Executive Officers of the Issuer ............................................................... 98 Item 10. Executive Compensation ........................................................................................... 120 Item 11. Security Ownership of Certain Record and Beneficial Owners and Management .... 123 Item 12. Certain Relationships and Related Party Transactions ............................................... 125 PART IV – CORPORATE GOVERNANCE ..................................................................................... 125 Item 13. Corporate Governance portion of the Annual Report ................................................. 125 Item 14. Sustainability Report ................................................................................................... 127 PART V – EXHIBITS AND SCHEDULES ....................................................................................... 128 Item 15. Exhibits and Reports on SEC Form 17-C (Current Reports) ...................................... 128 Item 16. Signatures .................................................................................................................... 128 Item 17. Index to Financial Statements and Supplementary Schedules .................................... 130 i. Exhibit I - 2019 Audited Financial Statements ......................................................... 130 ii. Exhibit II - Supplementary Schedules ..................................................................... 130 PART I – BUSINESS AND GENERAL INFORMATION Item 1. Description of Business (A) Business Development Metro Pacific Investments Corporation (the Parent Company or MPIC) was incorporated in the Philippines and registered with the Philippine Securities and Exchange Commission (SEC) on March 20, 2006 as an investment holding company. MPIC’s common shares of stock are listed in and traded through the Philippine Stock Exchange (PSE). On August 6, 2012, MPIC launched Sponsored Level 1 American Depositary Receipt (ADR) Program with Deutsche Bank as the appointed depositary bank in line with the Parent Company’s thrust to widen the availability of its shares to investors in the United States. The principal activities of the Parent Company’s subsidiaries and equity method investees are described in Notes 1, 10 and 40 of the attached 2019 Audited Consolidated Financial Statements. The Parent Company and its subsidiaries are collectively referred to as “the Company”. Metro Pacific Holdings, Inc. (MPHI) owns 41.9% of the total