June 2006 First Holdings at 45 Coming full circle AT 45 years, First Philippine Holdings Test case law in 1972 cut short MSC and Meralco’s Corporation (FPHC), formerly the Meral- The $62-million buyout of Meralco high-flying years. With his eldest son Eu- co Securities Corporation (MSC), has in- crafted by Don Eñing’s right hand man genio Jr. (“Geny”) held hostage by the deed come full circle. Bert Villanueva was a landmark under- dictator, Don Eñing agreed to surrender First Holdings began in 1961 as the taking not only in monetary terms, but es- control of Meralco for a paltry sum in MSC, a company created by Lopez Group pecially because it served as a de facto 1973; this, in turn, prompted OML and founder Don Eugenio “Eñing” Lopez pri- test case for Filipino managerial ability. other executives to resign practically en marily to consummate the transfer of own- With a team of topnotch young profes- masse. First Holdings subsequently em- ership of Meralco from General Public Util- sionals that included Don Eñing’s son barked on an ambitious diversification ities. GPU, as required by the 1954 Laurel- Oscar M. Lopez (OML), MSC—and lat- program that eventually contributed to Langley agreement signed by the United er as First Holdings—in the next decade the depletion of the firm’s coffers. States and the Philippines, was under pres- expanded and diversified into construc- Thirteen years would pass and the fall sure to divest its interest in Meralco by July tion, manufacturing, oil exploration, of the dictator come about before the 4, 1974; after the 20-year grace period, all power generation, trading and even Lopezes regained Meralco and their other companies operating in the Philippines had banking. assets. to be at least 60% owned by Filipinos. However, the declaration of martial Turn to page 6 Sta. Rita and San Lorenzo power plants in Batangas City. 2 LOPEZLINK June 2006 January to March 2006 Financial Results (Unaudited) Listed companies Total Revenues Net Income/(loss) ng Lopez Group 2005 2006 % change 2005 2006 % change ABS-CBN P3.458 B P3.954 B +14 (P132 M) P121 M +192 bumabawi na Benpres P3.457 B P3.954 B +14 P281* M P2.081 B** +640 BUMUTI ang financial performance ng lahat ng publicly listed compa- First Gen US$188 M US$217 M +15 US$21.6 M US$25 M** +18 nies ng Lopez Group noong first quarter ng 2006kumpara sa 2005. Lumaki ang kita ng holding companies, lumiit ang pagkalugi ng Meralco FPHC P11.7 B P13.4 B +15 P622 M P3.7 B** +501 at may net profit na ang ABS-CBN mula sa net loss noong 2004. Meralco P36.449 B P41.614 B +14 (P2.2 B) (P748 M)** +66 Hindi maikakailang patuloy ang pakikibaka ng Lopez Group sa iba’t ibang pagsubok sa ekonomiya. Patuloy na kaya ang pagsikat ng *As restated araw para sa mga premyadong kumpanyang ito? **Attributable to Equity Holders of the Parent Company First Holdings kumita ng P3.7 bilyon, nagbigay din ng dibidendo KUMITA ng P3.7 bilyon ang First P11.7 bilyon noong first quarter ng sa mas maliit na pagkalugi ng Meral- lumiit ang net loss ng Meralco sa P748 lyon. Nasa ilalim ng FPIDC ang inter- Philippine Holdings Corporation 2005. co. milyon sa 2006kumpara sa P2.2 bilyon est ng First Holdings sa Manila North noong first quarter ng 2006, mula Bumuti ang performance ng First Nagkaroon ng “gain on dilution” na noong Enero hanggang Marso 2004. Tollways Corporation na nagpapatakbo P622 milyon noong unang tatlong Holdings dahil sa IPO (initial public P2.7 bilyon ang First Holdings mula sa Maganda rin ang performance ng ng bagong North Luzon Expressway. buwan ng nakaraang taon. Tumaas ng offering) ng First Generation at sa IPO ng First Gen noong Pebrero at First Philippine Infrastructure Devel- Nagbigay ng P1 bawat share na 15% ang consolidated revenues ng pagbenta ng shares nito sa SiRF, sa P199 milyon naman sa pagbenta ng opment Corporation (FPIDC), na cash dividend ang First Holdings kumpanya sa P13.4 bilyon mula pagtaas ng kita ng subsidiaries nito at SiRF shares noong Marso. Samantala, nagkaroon ng net income ng P486mi- noong Mayo 5. Cost cutting nakatulong sa ABS-CBN FPHC ililipat NAKATULONG sa ABS-CBN more judicious production cost Tumaas ang gross revenues ng primetime ratings in Metro Manila Broadcasting Corp. ang pagpapatu- spending,” pahayag ng kumpanya 14% year-on-year sa P4.0 billion, specifically in the 6p.m. to 10 p.m. ang shares pad ng special separation package sa isang statement. bunsod ng license fees mula sa Di- block,” dagdag pa ng kumpanya. (SSP) noong 2005 at aggressive Ayon kay acting CFO Geronimo recTV at airtime revenues, ayon sa Ang total expenses ay lumaki ng cost cutting upang magtala ng prof- Estacio, ang first-quarter perfor- statement ng kumpanya. Umabot na- 4% sa P3.7 billion dala ng higher sa units nito it na P121 million sa unang quarter mance ng kumpanya ay hindi pala- man sa P2.3 billion ang gross airtime cash operating expenses. Kung ng 2006, isang turnaround sa net tandaan ng performance nito sa revenues, mas mataas ng 4% mula sa wala ang nonrecurring charge na ILILIPAT na ng First Philippine Hold- loss na P132 million na iniulat nito nalalabing bahagi ng taon. P2.2 billion sa first quarter ng 2005. P208 million para sa marketing ex- ings Corp. (FPHC) ang shares ng mga sa parehong period noong 2005. “Even during the good old days “Although ratings were almost penses na may kinalaman sa migra- manufacturing subsidiaries nito sa ilalim “It is attributable to a lower cost of ABS-CBN, the first quarter was flat year-on-year at 14% in the first tion sa DirecTV, ang total expenses ng First Philippine Electric Corp. (First base brought about by last year’s never indicative of full-year perfor- quarter, parent airtime revenues ay mas mababa ng 2% year-on- Philec), tulad ng ginawa sa First Gen headcount optimization as well as mance,” paliwanag ni Estacio. grew 3% due to a recovery in the year sa P3.5 billion. Corp. kung saan pinagsama ang lahat ng mga power generation companies. Ayon kay assistant information officer Rodolfo Waga Jr., ang pag-aari na shares BayanTel chief consultant speaks at employers confab ng FPHC, partikular na sa Philippine BAYANTEL chief executive “I can say that opportunities better alternatives,” he said. Electric Corp. (Philec), First Electro Dy- consultant Tunde Fafunwa are abundant and this beautiful Fafunwa also touched on namics Corp. (Fedcor), First Sumiden was a guest speaker during the country, with its hardworking BayanTel’s efforts to involve Circuits (FSCI) at First Sumiden Realty 27th National Conference of people, presents a lot of poten- itself in Corporate and Social Inc., ay ililipat sa First Philec. Employers (NCE) of the Em- tials,” said Fafunwa during his Responsibility (CSR) pro- Sa ngayon ay wala pang major invest- ployers Confederation of the address, in which he show- grams in order to further im- ments na ibinuhos sa manufacturing Philippines (ECOP) at the cased BayanTel’s and the prove the lives of the people business nito ang FPHC pero balak ng Manila Hotel on May 22. Lopez Group’s various posi- that it serves. kumpanya na magsagawa ng karagda- Part of the objective of the tive contributions to society. “Business cannot do it all,” gang investments, pahayag naman ni El- conference was to get a view “In BayanTel, we pushed Fafunwa said, “but when ev- pidio Ibañez, chief operating officer ng from established business the envelope further. We took eryone works together we can FPHC. groups on how big companies a hard look, go through a rigid be a formidable force towards Ang Philec ay manufacturer ng single can make a difference in the exercise to determine what the making a difference. Making a at three-phased distribution at power society, and this was tackled BayanTel brand really stands difference is the responsibility transformers na hanggang 15 MV at naghahanda sa pag-export ng dry-type BayanTel’s Tunde Fafunwa (right) during the open by Fafunwa through his pre- for. At the end of the day, this of everyone-business, the gov- sentation entitled “How Big is what came out to be what ernment, nongovernment or- transformers sa pamamagitan ng Ameri- forum at the ECOP conference. With Fafunwa is HSBC can Power Conversion Co. Samantala, CEO Warner Manning, who also shared his expertise Business Can Make a Differ- our brand and company really ganizations and even the con- through a talk during the event. ence in Society.” stands for: people’s rights to sumer.” (Dimpy Jazmines) ang Fedcor ay service at product provider sa distribution, control at efficient uti- lization ng electric energy para sa domes- tic at global markets. Nag-diversify na rin ito sa pagkumpuni ng substations, pad Meralco mas maliit na ang net loss mounted transformers, pagpapanatili ng electric distribution systems ng high-rise LUMIIT ng 66% ang net loss ng nito sa Korte Suprema. Noong first gy sales noong first quarter at 12.6%) at depreciation and amorti- buildings at pag-ayos ng automatic volt- Meralco (parent company) noong quarter ng 2005, umabot sa P1.411 ang sales noong Marso ang zation (-6.4%). age regulators. first quarter ng 2006. Mula sa net bilyon ang provision for probable pinakamataas sa isang buwan Sa kabuuan, tumaas lamang ng Ang FSCI, isang joint venture kasama loss na P2.2 bilyon, naging P748 losses ng Meralco. sa loob ng nakaraang limang 8.5% ang total expenses ng parent ang Sumitomo Electric Industries at milyon na lamang ang net loss ng Lumaki naman ng 14% ang taon.