Presented by
ROBERTO V. GARCIA Chairman and Administrator Subic Bay Metropolitan Authority
BUILDING THE NEW SUBIC Key Performance Indicators (2012 vs. 2011)
Major developments affecting 2012
VIP (Vietnam / Indonesia / Philippines) emerging dragon economies on radar screen of foreign investors
Strong Philippine economic performance due to investor confidence arising from good governance practices
United States “Asia Pivot” strategy National government’s decision to utilize SBIA as the Philippine Air Force’s forward operating base as key defensive strategy
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Key Performance Indicators
NEW PROJECTS AND INVESTMENTS KPI
2011
Total Committed US$959 M Investments Cumulative Investments (1992-2012)
No. of New Projects
2012
Variance
US$70 M
93%
US$7.83 B US$7.90 B
127
351
0.9%
176%
New Approved Investments 2011 Top New Approved Investments Committed Investments Rank
Company
(In US$)
Converted to PhP (US$1 = PhP43)
1
Energy Logics Solar Holdings, Inc.
458,500,000
19,715,500,000
2
HydroChina Subic Limited Corp.
450,000,000
19,350,000,000
3
Multifront Marketing Corp.
22,696,323
975,941,897
4
Filhan Hotel Leisure & Dev’t. Corp.
2,222,222
95,555,546
5
Subic Super Yacht Haven, Inc.
1,995,000
85,785,000
6 7 8
Rowena Minoo Samurai, Inc. Bigrid Corp. First Subic Food Ventures Corp.
1,500,000 1,150,855 932,000
64,500,000 49,486,765 40,076,000
9
Others
20,515,258
882,156,086
US$ 959,511,658
PhP 41,259,001,294
GRAND TOTAL
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New Approved Investments 2012 Top New Approved Investments Committed Investments Rank
Company
Converted to PhP (US$1 = PhP42)
(In US$) 1
Malayan Towage and Salvage Corp.
11,627,000
488,334,000
2
Astro Air International, Inc.
5,270,000
221,340,000
3
Raizen Asia Pte. Ltd.
5,200,000
218,400,000
4
Subic Ray Corporation
4,597,500
193,095,000
5
NSStern International, Inc.
3,609,112
151,582,733
6
Elite Delight Investments Ltd.
2,325,581
97,674,419
7
Global Daeil Subic, Inc.
2,047,619
86,000,000
8
Magnum Air (Skyjet), Inc.
1,599,302
67,170,697
9
AIA Planters Aviation Corporation
1,350,000
56,700,000
10
First Subic Food Ventures Corp.
1,218,333
51,170,000
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Others
31,611,834
1,327,696,967
US$70,456,281
PhP2,959,163,816
GRAND TOTAL
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New Approved Foreign and Local Investments New Approved Investments (2011 vs 2012)
Committed Investment
2011
2012
Increase
Total in US$
959 M
70 M
(889 M)
Less Renewable Energy Projects
908 M
Net New Committed Investment
51 M
70 M
19 M
37%
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Key Performance Indicators
EXPORTS 2011
KPI
Export (FOB Value)
2012
Increase
US$0.826 B US$1.927 B
133%
Our Top 3 Exporters in terms of FOB Value Exporter
Rank
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FOB US$
1
HHIC-PHIL
1.189 B
2
SANYO DENKI
0.144 B
3
JUKEN SANGYO
0.083 B
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Key Performance Indicators
EMPLOYMENT GENERATION KPI
2011
2012
No. of Jobs Generated
88,957
89,104
DOMESTIC HELPERS/ CARETAKER 0.61%
Increase
0.17%
MANUFACTURING 17.03%
CONSTRUCTION 9.10%
SHIPBUILDING MARINE RELATED SERVICES 30.61%
2012 Workforce by Business Sector
SERVICES 42.64%
Contributing to the National and Local Economy
BIR & BOC CASH REMITTANCES TO NATIONAL GOVERNMENT Collecting Agency
2011
2012
Increase
BIR
PhP 1.107 B
PhP 1.286 B
16.22%
BOC
PhP 6.117 B
PhP 6.329 B
3.47%
PhP 7.224 B
PhP 7.615 B
5.42%
TOTAL
Contributing to the National and Local Economy
NATIONAL GOVERNMENT AND LGU SHARES Allocation from 5% Corp. Tax
2011
National
2012
Variance
PhP199 M
PhP187 M
6%
145 M
139 M
4%
344 M
326 M
5%
LGUs TOTAL
OLONGAPO CITY 32 M
DINALUPIHAN 16 M HERMOSA 13 M
SUBIC 18 M
MORONG 11 M
SAN ANTONIO 11 M
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CASTILLEJOS 10 M
SAN MARCELINO 15 M
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GAINING GROUND 2012 Major Developments and Accomplishments
Financial Performance HIGHEST PROFIT IN SBMA’S 20-YEAR HISTORY
Net Income After Taxes
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2011
2012
Increase
(PhP 1,118 M)
PhP 811M
170%
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2012 Financial Turnaround Gross Revenues vs. Net Income
Total cumulative loss reduced from PhP 7 to 6.2 Billion O
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2012 Financial Summary 2011
Revenues
Variance
PhP 1,634 M
16%
(1,006)
-7%
328
628
91%
Depreciation
(676)
(742)
10%
EBIT
(342)
(115)
67%
Other Income/Expenses
(766)
926
Operating Expenses EBITDA (Operating Profit)
Net (Loss) Profit
PhP 1,410 M
2012
(1,082)
(PhP 1,113 M)
PhP 811 M
221% 173%
Increased Revenues by 16% Revenue Source
Increase
Land and Buildings
PhP85 M
Regulatory Income
84 M
Seaport Operations
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Total Collected
12 M
AF
Total Collected
3M
Collection of unpaid past due accounts, totalling PhP34 M
Admission Fees of PhP36 M for motor vehicles and heavy equipment
Increase of PhP20 M in SBMA’s Gross Revenue Share from locators
Increased fees (Co-location /
19%
3M
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CUSA
74%
63 M
Airport Operations
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12%
CUSA and Admin Fees (AF)
Visa and accreditation / CRTE/PTO / Vehicle Registration)
7%
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Reduced Expenses by 7% CUT OPERATING EXPENSES WITH AUSTERITY MEASURES Decrease
Expense Item
(In Peso Thousands)
Manpower
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33,323
(17%)
Others (Rentals, meals, reimbursements, etc.)
8,375
(47%)
Power & Water
4,251
(18%)
Supplies & Fuel
2,561
(57%)
Advertising
1,717
(64%)
Communication Services
1,036
(34%)
Repairs & Maintenance
360
(36%)
Travel & Training
290
(71%)
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Low CAPEX CUT CAPITAL EXPENDITURES Decrease
CAPEX
(In Peso Thousands)
Land & Land Improvements
22,233
(84%)
4,534
(27%)
Equipment Outlays
IT Outlays
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Foreign Exchange Gains
FAVORABLE EXCHANGE RATES ON SBMA’S FOREIGN LOANS
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2011
2012
FOREX Gains
(PhP .566 M)
PhP 1.11 M
297%
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Increased Operating Profit by 91%
2011
2012
Increase
PhP 328 M
PhP 628 M
91%
The bottomline is that EBITDA substantially increased.
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2012 Development Highlights SEAPORT Launch of Vale’s Ore Transhipment Hub Start of commercial operations of New Container Terminal 2 Successful holding of First Subic Bay Maritime Conference & Exhibit with
more than 500 foreign and local participants Creation of SBMA-initiated Maritime Technical Working Group to implement stakeholders’ recommendations made during the Conference Approved contract and project along Argonaut Highway for a super yacht
marina facility
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Seaport
NEW MARITIME PROJECTS Malayan Towage and Salvage Corporation
HY Shipbuilders Corporation Asia Pacific Chartering Phil., Inc. Sea-tech Marine Automation Co., Ltd.
Multihullsdirect Corporation
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Seaport
OPERATIONS KPI Gross Registered Tonnage (GRT)
2011
2012
Variance
14,049,553
23,902,552
70%
1,803
2,003
11%
27,671
36,304
47%
2,593,117
2,213,709
15%
No. of Ship Calls Containerized Cargo (in TEUs) Noncontainerized Cargo (in MTs)
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2012 Development Highlights AIRPORT Suspension of development plans for airport conversion to a
world class tourist destination in deference to national security concerns Promotion of SBIA for general aviation, aircraft repair, jet
charters and other allied aviation activities Use of the airport area as staging ground for various events
ranging from car test driving/product launching, movie filming/photo shooting by different TV networks and advertisers, sky diving and triathlon to the VFA or RP-US Mutual Defense Treaty Exercise
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Airport
OPERATIONS Source
2011
Lease
PhP 30.56M
(5.6%)
3.75M
5.80M
54.4%
.12M
.17M
40.1%
Royalty
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Variance
PhP 32.78M
Airport Fees
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2012 DEVELOPMENT HIGHLIGHTS Tourism 513% increase in the number of leisure-related new and expansion projects (319 in 2012 vs. 52 in 2011)
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Opening of Ayala Land Harbor Point Mall
Subic Ray Corporation residential/condotel facility at Moonbay Marina area
American International School at the former Legenda Suites
Resom Resort Philippines development of hotel, casino and golf course in various areas
McDonald’s at Harbor Point and Rizal Highway Subic Bay Peninsular Hotel (Former Grand Seasons Hotel and Casino) Puregold Supermarket at Fortuna Anchor Mall, Harbor Point
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Tourism 2012 DEVELOPMENT HIGHLIGHTS Increase of 130 in the number of new hotel rooms
Increase of 26% in the number of other tourism-related facilities
38 rooms (Terrace Hotel)
Ayala Land’s Harbor Point
60 rooms (Mango Valley III)
274 new merchant stores
20 rooms (Jusco Hotel)
Four (4) state-of-the-art cinemas
12 dormitory rooms (The Cabin)
Average foot traffic of 29,600 on weekdays and 39,713 on weekends
Additional 31 new restaurants/dining facilities, including those at Harbor Point
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Development of Subic Bay as Tourist Destination
Tourism
TOURISM TRAFFIC (Arrivals via SCTEX only) Year
Visitor Arrivals
Tourist Arrivals
Hotel Guests
Hotel Occupancy Rate
2012
5,228,434
1,252,217
1,208,151
69%
2011
4,631,696
1, 150,637
1,106,571
71%
Variance
13%
9%
9%
2%
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Development of Subic Bay as MICE Destination
Tourism MICE Meetings/Incentives/Conventions/ Exhibitions
Classification International Local TOTAL
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2011
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No. of Participants
2012
2011
Increase
Increase
11
20
82%
2,725
8,955
229%
131
273
108%
104,382
119,673
15%
141
293
108%
107,107
128,628
20%
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Tourism SPORTS Sports Events
Classification
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2011
2012
Increase
International
8
15
88%
Local
27
33
22%
TOTAL
35
48
37%
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2012 Development Highlights INDUSTRIAL LEASES
Orica Philippines, Inc., first SBF locator that will use our bunkers in Ilanin Forest East – Sustainable Use Zone as regional logistics hub
Linneman Technologies, Inc.
Global Architectural Fabrications Subic Innovative Fibre Industries, Inc. Vibro Equipment & Parts Far East Co
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2012 Development Highlights
INDUSTRIAL LEASES
Repossession from defaulting or non-paying locators and residents of leased premises, totaling some 257,786 square meters (SQM) of land. Facility
Land Size (SQM)
Paradise Consulting
45,097
Wanbol Area
44,022
Legenda Suites
40, 000
Firing Range
36,261
Edu Palace
25,000
Go-Kart Area
21,020
EOD Area
14,763
“Blue Skeleton”
10,519
Mini-Golf Area
10,000
Aparri Electronic Corporation
8,104
Summit Hotel
3,000
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Continuous business mapping of locators and residents, resulting in billings of PhP5 M and $10 K for SBMA sublease shares
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2012 Good Governance Initiatives ACTIONS TAKEN RELATIVE TO CONGRESSIONAL HEARINGS Rice Smuggling
Waste Dumping
Additional control measure, requiring importers of restricted goods to secure the necessary
Suspension of operations of Glenn Defense Marine and other waste service contractors, involving the collection and disposal of ship
permits from concerned government agencies prior to unloading the goods in the Freeport
sewage using sea vessels Additional preventive measure, requiring that all such sea vessel sewage are to be collected directly from the ship at the pier and
Suspension of concerned SBMA
officers and revamp of Seaport Department
transported by accredited landbased haulers to be treated in accredited waste treatment plants
Suspension of involved trader/locator and subsequent cancellation its CRTE and PTO
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Coordination with DENR and Philippine Coast Guard for imposition of appropriate penalties
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2012 Good Governance Initiatives
Creation of Regulatory Monitoring Unit for easier inspection process for renewal of Business Permit to Operate (BPTO)
Conduct of Social Acceptability Process for RP Energy project and publication of its final report in SBMA’s website
Management reorganization
Launching of “COMMUNITY WATCH PROGRAM”
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Implementation of “NO PLASTIC POLICY” Continuing improvement of Freeport image through “OPERATION FACELIFT”
Set up of “PROJECT UNITY” with LGUs
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TAKING OFF Plans and Prospects for 2013
Asia’s Newest Emerging Dragon
Exchange rate improved by 3.70%
Asia’s best performing stock market
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2013 Plans and Prospects DEVELOPMENT THRUSTS AND ACTION PLANS 1)
Maximize Seaport and Airport capacity utilization
2)
Aggressively promote tourism programs and build new tourism infrastructure
3)
Develop idle properties and lease out remaining available lands
4)
Streamline locator procedures to make them more “customer-friendly”
5)
6)
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Certification by a third party certifying body in ISO 9001:2008 Quality Management System Public bidding of SBMA’s 20% share in Subic Water and Sewerage Company, Inc.
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2013 Plans and Prospects DEVELOPMENT THRUSTS AND ACTION PLANS
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7)
Implement new Rationalization Plan and long overdue salary increases
8)
Complete financial re-structuring plan
9)
Launch new corporate website
10)
Expand SBMA territory through EO 675 to provide land for new industrial locators
11)
Purchase badly needed equipment for security, maintenance and infrastructure
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2013 Plans and Prospects PRIORITY SHOPPING LIST ITEM
COST PhP50 M
RFID Gate Security System CCTV System
50
IT Enterprise Resource Planning System
60
LED and other service vehicles
15
Dump trucks & garbage trucks
13
Harbor patrol boats
9
Others (Supplies, thermoplastic pavement markings, etc.)
5
Traffic light & dump truck repair
3
TOTAL
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PhP205 M
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2013 Plans and Prospects SEAPORT PROJECTS Aggressive marketing by Maritime Technical Working Group for
increased utilization of New Container Terminals 1 and 2 as an alternate port to decongest Manila Second VALE iron ore transshipment operations Opening of feeder lines to Singapore and Japan Redevelopment of NSD portion New ship building projects in Redondo Peninsula
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2013 Plans and Prospects
AIRPORT PROJECTS Aggressive marketing for general aviation,
aircraft repair, jet charters, etc. Astro Air International, Inc.’s Taiwan-Subic-
Taiwan commercial flights twice a week Balikatan exercises at SBIA’s South West
and South East Aprons Department of National Defense
to occupy small portion of SBIA under commercial terms Application of EO 271 to be able to take a
portion of the 16 transit flights of Air Macau to Vietnam, Malaysia and Thailand, and divert these to Subic
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2013 Plans and Prospects SUBIC BAY AS A TOP TOURIST DESTINATION Completion and Operations in 2013
Under Construction Legenda Hotel & Casino
TOTAL
600 rooms
Buma Subic
35 rooms
Rock Crystal Hotel
200 rooms
Freeport Mansions
65 rooms
Subic Bay Peninsular Hotel
1,000 hotel rooms
100 rooms
Freeport Elite
80 condotel units
Segara Residences
120 condotel units
6 condotel units
Mora Moto
34 condotel units A total of 1,120 additional rooms
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2013 Plans and Prospects TOURISM Subic Bay as Theme Park Capital of the Philippines Boardwalk Water Park Subic Aviary and Bird Park
Holy Land Subic Sanctuary &
Theme Park Treetop Adventure Expansion
Moonbay Marina’s River Walk
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2013 Plans and Prospects TOURISM Subic Bay as the country’s top sports tourism site Continuation of current sports events
in sailing, marathon, triathlon, boxing, cycling, beach volleyball and water sports Completion of Binictican golf course Manny Pacquiao’s Sports Complex Minanga Golf Course Muy Thai, UFC, American Football
special events
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2013 Plans and Prospects TOURISM Boardwalk Development Project Resom Resort Hotel and Casino Legenda Hotel and Casino Prospective developers for “blue skeleton”, Boardwalk area, and SBMA offices block
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M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
47
2013 Plans and Prospects TOURISM West Ilanin Redevelopment Project Resom Villas & Spa Resort
Central Business District New Royal Choices shopping center Harbor Point Transport Terminal and Retail Area
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
48
2013 Plans and Prospects INDUSTRIAL LEASES
REGULATORY
Expansion of SBMA territory
Creation of joint SBMA –BOC
Technical Working Group to more effectively combat smuggling Streamlining of business processes to reduce requirements and improve delivery of services Amendments to existing agreements with other agencies or implementation of new agreements Enhancement of safety culture through CommunityWatch campaign and intensified LED security activities
through EO 675 in Redondo and Hermosa area for new ship builders and industrial locators Belgium-based Enfinity
Philippines Renewable Resources, Inc. (Solar power generation facility
to be operated by one of the world’s leading developers of solar photovoltaic [PV] projects)
S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
49
2013 STRATEGIC PLAN SUMMARY Maximize land use potential of the Freeport Aggressively pursue JICA recommendation to use Subic
as alternate port to decongest Manila Develop the airport for general aviation, aircraft repair, jet
charters and other allied aviation activities Fully exploit tourism potential by creating new attractions
and destinations, promoting MICE, sports and theme parks to attract more tourists Invest in new equipment and infrastructure needed to
support SBMA’s strategic initiatives above Improve the Agency’s financial performance further to
provide funds for its Strategic Plan S
U
B
I
C
B
A
Y
M
E
T
R
O
P
O
L
I
T
A
N
A
U
T
H
O
R
I
T
Y
50
GOOD GOVERNANCE MAKES GOOD BUSINESS.
“THE BEST IS YET TO COME…”