Dear Shareholders

I am pleased to report to you that 2010 marked our sixth consecutive year of improved earnings with continued strong results expected in 2011 and going forward. First Pacific reported its highest-ever recurring profit in 2010 and paid shareholders its highest-ever dividend payout.

This was accomplished thanks to strong performances by all our businesses as our more mature businesses continued to generate strong dividends and newer investments began delivering on their own promised returns.

Indofood delivered extremely strong results even as pressures from new and expanding competition as well as from higher input prices continued to test the strength and abilities of its management. All four business groups within Indofood reported stronger margins in 2010 with the company as a whole reporting an EBIT margin of 17.5%, a remarkable accomplishment in a very competitive industry.

PLDT reported stronger earnings in 2010 than a year earlier as a transition from traditional sources of revenues like voice and SMS to new revenue streams like broadband continued to expand. PLDT has reiterated its commitment to its dividend policy that has resulted in a 100% payout ratio for four years in a row.

MPIC delivered a transformational performance in 2010, paying to shareholders its first-ever dividend. The water business continued to grow strongly as a result of steady investment in the water delivery network. The toll roads business continued to show steady expansion with completion of Segment 8.1, longer journey times and a rising number of vehicles on the road. Meralco paid shareholders 60% of recurring profit as it recorded strong growth in earnings. We keenly look forward to its investment in electricity generation as Meralco continues to grow. MPIC's healthcare arm expanded to a total of five hospitals in 2010 and we look forward to more growth there in 2011 and going forward.

At Philex, the Padcal Mine delivered some of its highest-ever results thanks to an increase in production and higher prices for its gold and copper.

In 2010, First Pacific has delivered very well on its promise to shareholders: to manage and enhance the value of their investments. As the premier investment management and holding company for the emerging markets of Asia, First Pacific sees continuing excellent prospects and strong opportunities in its markets.

Sincerely

Anthoni Salim
Chairman

21 March 2011