Review of 2009 Goals

Goals for 2010

Review of 2009 Goals

FIRST PACIFIC
	Goal: Enhance the profitability of operating companies, in particular continue to improve the profitability of MPIC and of PLDT Achievement: Achieved. Recurring profit increased 20% to US$286.6 million comprising a significantly improved performance by MPIC, increased contribution from Philex, lower Head Office's option costs and interest expenses, partially offset by a lower contribution from PLDT as its strong local currency performance have been impacted negatively on translation into U.S. dollars by the depreciation of the average peso exchange rate.
	Goal: Manage the projected profitability of Indofood given the downturn in the CPO prices which will impact the profitability of Agribusiness Achievement: Substantially achieved. Indofood's portfolio of business has compensated for the Agribusiness reduction, particularly the Consumer Branded Products division - sales increasing 34% to Rupiah 16,533 billion (US$1,597.6 million) and EBIT margin improving to 10.5% from 4.2%. Indofood's consolidated net sales declined 4% to Rupiah 37.1 trillion (US$3,588.7 million) despite a 20% decline by Agribusiness to Rupiah 12,034 billion (US$1,162.8 million) due to lower CPO prices.
	Goal: Continue to evaluate complementary investment opportunities in telecoms, infrastructure, consumer products and natural resources in the emerging markets of Asia Achievement: Achieved. First Pacific Group invested approximately US$1.3 billion in 2009 in its core business sectors. First Pacific increased investment in Philex to 31.5% from 20.1%. First Pacific's Philippine affiliate Two Rivers acquired 9.2% in Philex. Philex acquired the remaining 50% equity interest in Silangan Project, and increased its stake in Pitkin Petroleum and Forum Energy to 21% and 65%, respectively. MPIC and Piltel acquired a 14.5% and 20% interest in Meralco, respectively.
	Goal: Manage capital within the Group's financial resources and its overall investment plans to enhance shareholder returns Achievement: Achieved. First Pacific raised US$282 million by way of rights issue for funding additional complementary investments. MPIC also raised US$300 million through a new share placement to support expansion. First Pacific Board recommended a final dividend of U.S. 1.03 cents (HK8.00 cents) per share (2008: U.S. 0.77 cent (HK6.00 cents)), bringing total regular dividends (including an interim dividend of U.S. 0.51 cent (HK4.00 cents) per ordinary share) for the full year to U.S. 1.54 cents (HK12.00 cents) per share (2008: U.S. 1.15 cents (HK9.00 cents)), an increase of 33% and representing a payout of approximately 20% of the recurring profit.

PLDT
	Goal: Sustain wireless and broadband growth momentum Achievement: Achieved. Cellular subscriber base of Smart grew 17% year-on-year to 41.3 million. Total broadband subscribers - DSL fixed and wireless - grew 62% to 1.6 million. PLDT Group consolidated service revenues increased 2% to Pesos 145.6 billion (US$3,046.7 million) and consolidated reported net income is up 15% to Pesos 39.8 billion (US$832.5 million) and core net income increased by 8% to Pesos 41.1 billion (US$859.7 million).
	Goal: Manage transformation to next generation network Achievement: Ongoing. The transformation of PLDT's fixed line network to the all-IP next generation network ("NGN") from the traditional circuit-switched network continues, involving both internal and outside plant facilities, as well as alignment of internal processes and human resources-related initiatives. A total of Pesos 4.2 billion (US$87.8 million) of capex was used for NGN and data network which accounted for 15% of PLDT Group's capex for 2009. The full migration to NGN is expected by 2012.
	Goal: Achieve improved operating results from ePLDT Achievement: Achieved. Service revenues increased 5% to Pesos 10.9 billion (US$228.0 million), which accounted for 8% of PLDT's consolidated service revenues. EBITDA margin improved to 12% from 10% with impact from the 7% depreciation of the peso/US$ average exchange rate on ePLDT's dollar revenues which was partly offset by a 1% increase in cash operating expenses.
	Goal: Conclude Piltel's proposed acquisition of a 20% interest in Manila Electric Company ("Meralco") Achievement: Achieved. The acquisition was completed on 14 July 2009 when Piltel paid Pesos 20.1 billion (US$420.4 million) for an approximately 20% stake in Meralco. Three nominees from the group were elected to Meralco's board at the Meralco Annual General Meeting held on 26 May 2009. The PLDT Group nominated Chief Finance Officer of Meralco assumed the position on 1 July 2009. On 1 March 2010, Piltel announced that it has executed an Omnibus Agreement with Metro Pacific Investments Corporation to consolidate their shareholdings in Meralco to Beacon Electric Asset Holdings, Inc. ("Beacon Electric").

METRO PACIFIC INVESTMENTS CORPORATION (MPIC)
	Goal: Conclude the proposed acquisition of a 10.17% interest in Manila Electric Company ("Meralco") and play a key role in improving the financial performance of Meralco Achievement: Achieved. As at the end of 2009, MPIC owns approximately 14.5% interest in Meralco with investment cost of approximately Pesos 24.5 billion (US$520.1 million). Meralco's reported net income for the year ended 31 December 2009 was approximately Pesos 6,005 million (US$125.6 million), a 114% increase over the previous year.
	Goal: Further enhance profitability of Maynilad and Metro Pacific Tollways Corporation ("MPTC") through capital expenditure and marketing initiatives Achievement: Achieved. Maynilad and MPTC's core income increased 37% to Pesos 3,328 million (US$69.6 million) and 24% to Pesos 1,220.6 million (US$25.5 million), respectively. Maynilad's billed water volume increased 11% to 350 million cubic meters. MPTC's average daily traffic volume increased 6% amounting to average vehicle entries per day of 150,395.
	Goal: Expand tollroad portfolio principally through the NLEX expansion options and make further strategic acquisitions as opportunities arise Achievement: Achieved. NLEX's expansion option Segment 8.1 commenced construction (link Mindanao Avenue to NLEX) and is expected to open in May 2010. MPTC has started the detailed engineering studies for Segments 9 and 10 which will connect NLEX to the port area at Western Metro Manila and plans to commence construction in 2011. In February 2009, MPTC signed a memorandum of understanding with the Philippine National Railways to build the Skyway Connector to connect the NLEX and the South Luzon Expressway ("SCTEX"). In September 2009, MPTC submitted an unsolicited bid for the SCTEX concession and was the only qualified technical bidder in an auction held in January 2010. MPTC is in negotiation with the Bases Conversion and Development Authority for the SCTEX concession.
	Goal: Expand healthcare portfolio through organic growth and acquisition Achievement: Achieved. Healthcare group's core income up 56% to Pesos 528 million (US$11.0 million) reflecting higher operational efficiency from new equipment, better services and higher bed occupancy and the positive impact for the first time of the operating contract of the Cardinal Santos Medical Center ("CSMC"). During 2009, MPIC increased its interest in Medical Doctors Inc. ("MDI") to 34.8% from 32.4% and in Davao Doctors Hospital Inc. ("DDH") to 34.9% from 33.6%. In addition, MDI, through a wholly-owned subsidiary Colinas Verdes Hospital Managers Corporation, secured a 20-year contract to operate CSMC.
	Goal: Increase the liquidity/free float to a minimum of 20% of the issued share capital Achievement: Achieved. MPIC successfully increased the free float to 29% through offering Pesos 14.3 billion (US$300 million) new MPIC common shares to international investors. The equity raising strengthened its capital structure and broadened the shareholder base.

INDOFOOD
	Goal: Further improve operational and cost efficiencies Achievement: Achieved. Consolidated net sales decreased 4% to Rupiah 37.1 trillion (US$3,588.7 million) from Rupiah 38.8 trillion (US$3,992.5 million) reflecting lower sales in the Agribusiness and Bogasari groups resulting from lower average CPO and flour prices. Despite these impacts, overall EBIT margin improved to 13.5% from 11.2% resulting from stronger operation and lower input costs.
	Goal: Maintain market leadership position through product innovation and focused advertising and promotion programs, as well as increasing distribution penetration Achievement: Achieved. New products for noodles, pasta, biscuit and snack units were launched during the year and many brands remain "Top of Mind". Product visibility within retail outlets has been improved.
	Goal: Develop key account team to manage all group products Achievement: Substantially achieved. Established a key account team to serve the food channel offering a one-stop service to hotel and food chains.
	Goal: Continue the integration of IndoAgri and Lonsum's operations Achievement: Achieved. Key organizational and operational areas are being addressed, comprising general and administrative expenses reduction, alignment of accounting and corporate policies and IT system, leveraging on joint purchasing, sharing of best agronomy practices and research and development, and developing infrastructure and milling facilities to achieve greater operational efficiency.
	Goal: Preserve cash by tightening cash flow management and prioritizing capital expenditure Achievement: Achieved. Capex was prioritized to critical items only. New planting program for Agribusiness group reduced to preserve cash.
	Goal: Refinance short-term debts to longer term facilities Achievement: Achieved. Short-term debt composition declined to 39% from 61% in the previous year. In June, Indofood issued Rupiah 1.6 trillion (US$171 million) five-year Rupiah bond to refinance Rupiah 1.0 trillion (US$106 million) bond due in July 2009 and other short-term borrowings. In November, IndoAgri's subsidiary, PT Salim Ivomas Pratama ("SIMP"), issued a Rupiah 730 billion (US$78 million) five-year Rupiah bond principally to refinance its short-term borrowings.

PHILEX
	Goal: Maintain production of approximately 9 million tonnes of ore Achievement: Substantially achieved. Total ore milled amounted to 8.2 million tonnes, 8% lower due to difficult ground conditions and ore handling problems.
	Goal: Allocate additional resources to advance the Silangan Project Achievement: Achieved and ongoing. The Silangan Project comprises the Boyongan deposit and Bayugo prospect. The preliminary mineral resource estimates for Bayugo were completed on schedule, with Independent Resources Estimations of South Africa issuing a technical report in November 2009 which indicated mineral resources of 86 million tonnes at 0.88% of copper and 0.73 gram of gold per tonne. The Boyongan deposit located one kilometer southeast of Bayugo deposit has a proven reserve of 65.8 million tonnes at 0.87% of copper and 1.39 grams of gold per tonne. A drilling program continues for further defining of the mineralization limits for the whole project.

Goals for 2010

FIRST PACIFIC
	Promote the continuing growth in profitability across all group companies
	Drive an increase in head office cashflow
	Continue to explore investment opportunities in existing core businesses across the region

PLDT
	Achieve core income for 2010 of over Pesos 41 billion
	Achieve continued growth of the broadband business in terms of subscribers and revenues, as a key driver to overall revenue growth in 2010
	Upgrade the fixed and wireless networks within a capex budget of Pesos 28.6 billion, to support broadband growth and the group's new initiatives in the wireless business, including more aggressive voice offers
	Complete the consolidation and transfer of the voice/customer interaction services and business process outsourcing/knowledge processing solutions business into one entity
	Consolidate Piltel's interest in Meralco in combination with MPIC at Beacon Electric

METRO PACIFIC INVESTMENTS CORPORATION (MPIC)
	Complete the consolidation of MPIC's and Piltel's Meralco stake into Beacon Electric
	Continue to grow billed volumes at Maynilad and minimize the impact of El Niño
	Conclude further investments in the Southern Tollway system, negotiations for SCTEX concession and secure equity at the Metro Pacific Tollways Corporation level in order to fund these expansion projects
	Conclude the acquisition of the largest hospital in the Visayas region, complete the renovation at Makati Medical and plans for the re-development of Cardinal Santos and a 5-storey building for doctors clinics at Davao Doctors
	Complete the take over of Manila North Harbour
	Continue evaluating promising infrastructure projects

INDOFOOD
	Focus on organic growth through product innovations and distribution penetration
	Expand oil palm and sugar plantation area through new planting
	Enhance supply chain through increasing partnerships with farmers
	To strengthen balance sheet and reduce debt
	Continue harmonization of IT system

PHILEX
	Improve the output from the Padcal Mine to approximately 9 million tonnes of ore
	Complete the pre-feasibility study of the Silangan Project
	Start commercial operation of the Zamboanga coal mine of Brixton Energy & Mining Corporation
	Further evaluate the opportunities of petroleum/hydro-carbon assets