Presented by:
ROBERTO V. GARCIA Chairman and Administrator
Subic Bay Metropolitan Authority
HOW DID SBMA PERFORM IN 2013?
I. Investment Promotion Performance Substantial increase of 800 % in approved investments, from PHP3 billion in 2012 to PHP27 billion in 2013
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KPI
2012
2013
Increase
Total Committed Investments
PHP3 B
PHP27 B
800%
Cumulative Investments (1992-2012)
US$8.8 B
US$9.4 B
7%
Projected Employment from New Projects
2,597
4,402
70%
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Investment Promotion Performance Top New Investments Rank
Committed Investments (in PHP)
Company
1 2 3
Resom Resort PTT Philippines Trading Corporation FFC Subic Seafoods Corporation
21,370,000,000 1,900,000,000 848,924,000
4 5
Johanna-Subic Seafood Corporation Glowbal Outlets Philippines, Inc.
795,574,432 212,231,000
6
Simon & Stanley Int’l. Trading & Dev’t. Co., Inc.
215,626,696
7
APG Int’l. Aviation Academy, Inc
135,466,580
8 9 10
Alpha Primero Services Manufacturing, Inc. Associated Freight Consolidators Platinum Skies Aviation, Inc. OTHERS
84,680,169 83,131,539 80,000,000 1,274,657,078
GRAND TOTAL
PHP27,000,291.494
* Based on BSP average FOREX rate of PHP42.4462 for 2013 S
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Investment Promotion Performance Full implementation of CUSA policy, allowing for cost recovery and sustained maintenance of quality municipal services Full implementation of increased admission fees for second-hand trucks and heavy equipment, allowing for cost recovery and sustained maintenance of quality port services Two (2) MOAs with the DOST – Information Communication Technology Office for the development of National Government Data Center 3 in Subic Bay, which will vastly improve the attractiveness of the Freeport to IT and BPO oriented businesses “Use it or lose it” land use policy. Repossession of 60 hectares from defaulting/non-paying locators and residents for offering to other capable parties
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Investment Promotion Performance Issuance of Board Resolution, fully supporting the construction and development of Redondo Peninsula Energy, Inc.’s 600 MW coal-fired power plant project to provide reliable and affordable power in the Freeport and the rest of Luzon Final arrangements with PEZA and DBM for continued subsidy of Hanjin power rates, as committed by the national government; and SBMA Board approval and execution of addendum to Hanjin lease agreement
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Investment Promotion Performance ADDITIONAL AREAS FOR DEVELOPMENT Territorial expansion by 10,000 hectares in San Antonio, Zambales, ideal for tourism and resort development, in cooperation with the Municipality Territorial expansion by 650 hectares of various properties of coastal land in Subic, Zambales, ideal for shipbuilding and ship repair, in cooperation with the Municipality
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II. It’s More Fun~tastic in SUBIC! TOURISM TRAFFIC Via SCTEX Year
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Tourist Arrivals
Vehicle Count
Estimated Visitor Arrivals
2012
1,201,289
4,805,156
1,252,217
2013
1,300,562
5,202,248
1,283,804
Increase
8%
8%
3%
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It’s More Fun~tastic in SUBIC! EVENTS SPORTS
2012
2013
Increase
53
56
6%
19,327
43,215
124%
2012
2013
Variance
230
194
(16%)
110,015
113,994
4%
No. of Events No. of Participants
MICE & NONSPORTS No. of Events No. of Participants
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It’s More Fun~tastic in SUBIC! TOP 10 MAJOR TOURISM EVENTS 1)
8th Edition Subic International Marathon (January)
2)
Subic Bay to Boracay Race (February)
3)
TRAP - Tri United Leg 1 (March)
4)
TRAP - International Triathlon (April)
5)
Philippine Councilors’ League National Convention (May)
6)
Century Tuna 5i50 Triathlon / Philippine Institute of Civil Engineers National Convention (June)
7)
Couples for Christ (CFC) Singles Congress (July)
8)
CFC-ANCOP Global Walk (August)
9)
Arrival of MS Hanseatic Cruise Liner (October)
10)
TRAP- 2013 National Duathlon Championships (December)
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III. Becoming a Major Logistics Hub for Asia PORT OPERATIONS KPI
2012
2013
Increase
Gross Registered Tonnage (GRT)
23,902,552
33,591,875
40.5%
No. of Ship Calls
2,003
2,177
8.7%
Containerized Cargo (in TEUs)
36,304
37,460
3.2%
2,214,704
2,404,649
8.6%
Noncontainerized Cargo (in MTs)
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Becoming a Major Logistics Hub for Asia SEAPORT REVENUE (in PHP) Actual 2012
Actual 2013
Increase
Target 2013
% Achieved
402,444,994
626,544,703
56%
483,756,478
130%
Processing Fees & Other Charges 1.5%
SBMA Shares 11.5%
Vessel Charges 34.0% Cargo Charges 24.3%
REVENUE SOURCES
Lease/Rental 28.6%
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Becoming a Major Logistics Hub for Asia EXPORTS Export FOB Value (in US$)
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2012
2013
Variance
SBF Locator Exports Port Users
1.91 B
1.34 B
30%
Non-SBF Exports Port Users
0.01 B
0.08 B
TOTAL
1.92 B
1.42 B
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998%
26%
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Becoming a Major Logistics Hub for Asia AIRPORT REVENUE (in PHP) Source
2012
2013
Variance
5,973,909
4,897,712
18%
Lease
30,560,894
49,941,162
63%
TOTAL
36,534,803
54,838,875
50%
Royalty & Airport Fees
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IV. Contributing to the National and Local Economy Tax Cash Collections / Job Generation KPI
2012
2013
Increase
BIR
P1,278M
P1,392M
8.9%
BOC
P6,329M
P10,840M
71%
89,104
89,584
0.5%
Manpower
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Contributing to the National and Local Economy NATIONAL GOVERNMENT AND LGU SHARES Allocation from 5% Corp. Tax
2012
2013
Increase
PHP187 M
PHP211 M
13%
LGUs
139 M
156 M
12%
TOTAL
326 M
367 M
12%
National
DINALUPIHAN 19 M
OLONGAPO CITY 39 M
HERMOSA 16 M SUBIC 23 M
MORONG 14 M
SAN ANTONIO 14 M
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CASTILLEJOS 13 M
SAN MARCELINO 18 M
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V. Making the Freeport More Safe & Secure No further incidents of rice smuggling Refurbishing of two (2) harbor police boats for increased patrols to combat illegal fishing and shipwreck looting in Subic Bay / Completed and turned over to Agency in October 2013 Procurement and purchase through DBM Procurement Service of eight (8) brand new service vehicles for the Law Enforcement Department to augment security efforts in the Freeport Considerable decrease in crime rates from 47 incidents in 2012 to 38 incidents in 2013, or a 19% drop in crime rate, including zero Bukas Kotse incident
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VI. Protecting Our Environment Full implementation of “No Plastic Policy� 90% completion of final Programmatic ECC Study No further incidents of waste dumping Holding of Water Summit to assure adequate clean water in the medium term Coordination with City of Olongapo in making studies and representations with the DPWH to dredge the Kalaklan river to minimize the disastrous flood that now regularly plague the city Co-sponsorship of Annual Earth beach cleanup and Kalaklan River cleanup together with the City of Olongapo
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VII. Enhancing Good Governance Awarding of ISO 9001:2008 certification for the development of quality management systems Signing of Integrity Pledge for the commitment to ethical business practices and good corporate governance Over P10M in donations raised in SBFZ for victims of Typhoon Yolanda / Dispatch of rescue teams to Tacloban to assist in search and rescue efforts Awarding of 2013 Gawad Kalasag Best Government Emergency Response Management Team to SBMA rescue teams, making the Agency a two-time winner of such award NBI investigation of the failed 2008 RFID project / Results expected in the first quarter of 2014 Signing of IRR with the Pastolan Aetas and the National Commission for Indigenous Peoples, thus paving the way for the full implementation of the Joint Management Agreement
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2013 Financial Performance
ANOTHER RECORD-BREAKING YEAR
SBMA GROSS REVENUES Billions
2013 is HIGHEST ever. 2.50
2.09
↑
27%
2.00
1.67 1.60
1.56 1.54 1.50
1.41
1.57 1.50
1.47
1.42 1.40
1.40 1.34
1.31
1.65
1.57
1.18
1.00 0.80 0.61 0.50
0.42
0.20
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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SBMA OPEX Billions
Operating costs kept under control for the past 2 years. 1.40 1.27
1.26
1.23 1.22
1.20 1.06
1.09
1.10
1.06 1.07
↑
10%
1.00 1.00
0.80
0.76
0.76 0.75 0.69
0.66 0.59
0.60
0.54 0.44
0.40 0.28 0.24 0.20
0.16
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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Millions
SBMA OPERATING INCOME (EBITDA) 2013 is HIGHEST ever. 1,200
↑
992
1,000
52%
869 779
800
795
750 653
652
589
600
550 475 435 406
400 338
361
367
359
341
329 240
183
200
39 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 S
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SBMA NET INCOME 2013 is HIGHEST ever. Millions
1,500.00
1,079 1,000.00
↑
35%
800
500.00 245 2
135 170
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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(102)
(106)
(185) (73) (35) (82)
(233)
(138)
(500.00)
(417)
(1,000.00)
(928) (1,119) (1,203)
(1,500.00)
(2,000.00)
(2,500.00) (2,540) (3,000.00)
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SBMA LONG-TERM DEBT Billions
Long-term debt decreased by over 17% in 2 years’ time. PHP 14.00 12.45 12.55 12.44 PHP 12.00 10.92
10.81
10.31
↓
6%
PHP 10.00
7.74 7.86
PHP 8.00 7.19 7.20 6.65 PHP 6.00
PHP 4.00
PHP 2.00 1.23
PHP 0.00
0.00
0.30
0.89 0.90 0.81 0.80 0.82 0.56 0.72
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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SBMA CASH POSITION Billions
Cash position improved by over 92% in 2 years’ time PHP 1.60 1.48 PHP 1.40
1.36 1.27
1.26
1.25
1.15
PHP 1.20
↑
1.15 1.03
PHP 1.00
92%
1.04 0.99 0.88 0.84
PHP 0.80
0.75
0.72
0.73 0.67 0.58 0.60
PHP 0.60 0.47 0.37
PHP 0.40
0.27 PHP 0.20
PHP 0.00 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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2014 Development Plans and Projects
What will be the business environment in 2014? The world economy is showing signs of recovery, especially in U.S., Europe and Japan. The Philippine economy is expected to maintain its robust GDP growth at around 7%.
*The Philippines for the first time placed second only to China in GDP growth for the whole Asian region.
Subic Bay Freeport and other investment areas expect to see continued investor interest in putting up new projects. More U.S. military forces will visit the Freeport as part of the implementation of Obama’s Asia “pivot”. S
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2014 Major Programs Substantially increase capital expenditures from PHP9 million in 2013 to PHP620 million this year. Actual 2013
CAPEX
Proposed 2014
% Increase
(in Peso Thousands) Land and Land Improvements
1,524
90,004
5,804
480
2,616
445
13
133,961
1,054,714
7,013
393,418
5,510
9,030
620,000
6,766%
Buildings & Structures IT Equipment Equipment Outlays TOTAL
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2014 Major Programs Target PhP23 billion in new investments Focus on creating new jobs to achieve “inclusive growth� Aggressively pursue utilization of new container port to decongest Manila ports and vehicular traffic Attract more tourists and visitors to the Freeport by launching a creative tourism campaign and hosting more events
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2014 Major Programs Implement major reorganization that can more effectively achieve the
Agency’s strategic initiatives Deliver better service to locators and residents by simplifying business
processes such as the new CRTE automatic renewal Improve the status of the Agency’s employees by implementing the
long delayed salary increases Intensify the Agency’s Good Governance Program
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“LET US GET BACK TO WORK, AND, BY FULLFILLING OUR INDIVIDUAL TASKS, LIKEWISE FULFILL OUR SHARED ASPIRATIONS AS ONE COUNTRY.” _______________________________ H.E. BENIGNO S. AQUINO III
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“ASK NOT WHAT SBMA CAN DO FOR YOU BUT WHAT YOU CAN DO TO MAKE THIS FREEPORT A BETTER PLACE FOR ALL.” Adapted from John F. Kennedy
MEDIA ADVISORY TO SECURE A SOFT COPY OF SBMA CHAIRMAN ROBERTO V. GARCIA'S 2013 STATE OF THE FREEPORT ADDRESS, PLEASE BRING YOUR FLASH DRIVE TO THE PUBLIC RELATIONS OFFICE, BLDG. 255, BARRYMAN ROAD OR CALL (047) 252.4368 / 252.4338. YOU MAY ALSO DOWNLOAD IT FROM www.mysubicbay.com.ph THANK YOU.