2013 SOFA 03182013 FINAL

7/28/2019 2013 SOFA 03182013 FINAL

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Presented by

ROBERTO V. GARCIAChairman and Administrator

Subic Bay Metropolitan Authority

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BUILDING THE NEW SUBICKey Performance Indicators (2012 vs. 2011)

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Major developments affecting 2012

VIP (Vietnam / Indonesia / Philippines) emerging dragon economieson radar screen of foreign investors

Strong Philippine economic performance due to investor confidencearising 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

3S 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

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Key Performance Indicators

NEW PROJECTS AND INVESTMENTS

KPI 2011 2012 Variance

Total CommittedInvestments

US$959 M US$70 M

CumulativeInvestments(1992-2012)

US$7.83 B US$7.90 B

No. of NewProjects

127 351176%

93%

0.9%

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New Approved Investments

2011 Top New Approved Investments

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 5

Rank CompanyCommitted Investments

(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 Rowena Minoo Samurai, Inc. 1,500,000 64,500,000

7 Bigrid Corp. 1,150,855 49,486,765

8 First Subic Food Ventures Corp. 932,000 40,076,000

9 Others 20,515,258 882,156,086

GRAND TOTAL US$ 959,511,658 PhP 41,259,001,294

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New Approved Investments

2012 Top New Approved Investments


Rank CompanyCommitted Investments

(In US$)Converted to PhP(US$1 = PhP42)

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. 5,200,000 218,400,0004 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

11 Others 31,611,834 1,327,696,967

GRAND TOTAL US$70,456,281 PhP2,959,163,816

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New Approved Foreign and Local Investments

New Approved Investments (2011 vs 2012)


CommittedInvestment 2011 2012 Increase

Total in US$ 959 M 70 M (889 M)

LessRenewableEnergy Projects

908 M

Net NewCommittedInvestment

51 M 70 M 19 M

37%

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EXPORTS

Our Top 3 Exporters in terms of FOB Value


KPI 2011 2012 Increase

Export(FOB Value)

US$0.826 B US$1.927 B 133%

Rank Exporter FOB US$

1 HHIC-PHIL 1.189 B

2 SANYO DENKI 0.144 B

3 JUKEN SANGYO 0.083 B

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EMPLOYMENT GENERATION

KPI 2011 2012 Increase

No. of JobsGenerated

88,957 89,104 0.17%

2012 Workforce by Business Sector

SERVICES42.64%

SHIPBUILDINGMARINE RELATED

SERVICES30.61%

CONSTRUCTION9.10%

DOMESTICHELPERS/

CARETAKER0.61%

MANUFACTURING17.03%

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Contributing to the National and Local Economy

BIR & BOC CASH REMITTANCES

TO NATIONAL GOVERNMENTCollecting

Agency 2011 2012 Increase

BIR PhP 1.107 B PhP 1.286 B

BOC PhP 6.117 B PhP 6.329 B

TOTAL PhP 7.224 B PhP 7.615 B 5.42%

16.22%

3.47%

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Contributing to the National and Local Economy

NATIONAL GOVERNMENT AND LGU SHARES


Allocation from5% Corp. Tax 2011 2012 Variance

National PhP199 M PhP187 M

LGUs 145 M 139 M

TOTAL 344 M 326 M

4%

SUBIC18 M

CASTILLEJOS10 M

SAN MARCELINO15 M

SAN ANTONIO11 M

MORONG11 M

HERMOSA

13 M

DINALUPIHAN16 M

OLONGAPO CITY32 M

6%

5%

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GAINING GROUND2012 Major Developments and Accomplishments

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Financial Performance

HIGHEST PROFIT IN SBMA’S 20-YEAR HISTORY


Net IncomeAfter Taxes

2011 2012 Increase

(PhP 1,118 M) PhP 811M 170%

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2012 Financial Turnaround

O F F I C E O F T H E A N D A D M I N I S T R A T O R

Gross Revenues vs. Net Income

Total cumulative loss reduced from PhP 7 to 6.2 Billion

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2012 Financial Summary

2011 2012 Variance

Revenues PhP 1,410 M PhP 1,634 M 16%

Operating Expenses (1,082) (1,006) -7%

EBITDA

(Operating Profit) 328 628 91%

Depreciation (676) (742) 10%

EBIT (342) (115) 67%

Other

Income/Expenses(766) 926 221%

Net (Loss) Profit (PhP 1,113 M) PhP 811 M 173%

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Increased Revenues by 16%


RevenueSource

Increase

Land andBuildings

PhP85 M 12%

RegulatoryIncome

84 M 74%

Seaport

Operations

63 M 19%

AirportOperations

3 M 7%

CUSA and Admin Fees (AF)

Collection of unpaid past dueaccounts, totalling PhP34 M

Admission Fees of PhP36 Mfor motor vehicles and heavyequipment

Increase of PhP20 M inSBMA’s Gross Revenue Share

from locators

Increased fees (Co-location /Visa and accreditation /CRTE/PTO / Vehicle Registration)

CUSA Total Collected 12 MAF Total Collected 3 M

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Reduced Expenses by 7%

CUT OPERATING EXPENSES WITH AUSTERITY MEASURES


Expense Item Decrease(In Peso Thousands)

Manpower 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


CAPEX Decrease(In Peso Thousands)

Land & LandImprovements 22,233 (84%)

Equipment Outlays 4,534 (27%)

IT Outlays 7 (100%)

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Foreign Exchange Gains


FAVORABLE EXCHANGE RATES

ON SBMA’S FOREIGN LOANS

2011 2012 FOREX Gains

(PhP .566 M) PhP 1.11 M 297%

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Increased Operating Profit by 91%


The bottomline is that EBITDA substantiallyincreased.

2011 2012 Increase

PhP 328 M PhP 628 M 91%

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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 withmore than 500 foreign and local participants

Creation of SBMA-initiated Maritime Technical Working Group to implementstakeholders’ recommendations made during the Conference

Approved contract and project along Argonaut Highway for a super yachtmarina facility


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2 0 1 1 S t a t e o f t h e F r e e p o r t A d d r e s s

NEW MARITIME

PROJECTS Malayan Towage and Salvage

Corporation

HY Shipbuilders Corporation

Asia Pacific Chartering Phil., Inc.

Sea-tech Marine Automation Co.,Ltd.

Multihullsdirect Corporation

Seaport

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OPERATIONS

Seaport


KPI 2011 2012 Variance

Gross

Registered

Tonnage (GRT)

14,049,553 23,902,552

No. of Ship

Calls 1,803 2,003

Containerized

Cargo (in TEUs)27,671 36,304

Non-

containerizedCargo (in MTs)

2,593,117 2,213,709

70%

11%

47%

15%

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AIRPORT

Suspension of development plans for airport conversion to aworld class tourist destination in deference to national securityconcerns

Promotion of SBIA for general aviation, aircraft repair, jetcharters and other allied aviation activities

Use of the airport area as staging ground for various eventsranging from car test driving/product launching, moviefilming/photo shooting by different TV networks and advertisers,sky diving and triathlon to the VFA or RP-US Mutual DefenseTreaty Exercise


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Airport

OPERATIONS


Source 2011 2012 Variance

Lease PhP 32.78M PhP 30.56M (5.6%)

Airport Fees 3.75M 5.80M 54.4%

Royalty .12M .17M 40.1%

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2012 DEVELOPMENT HIGHLIGHTS

513% increase in the number of leisure-related new and expansionprojects (319 in 2012 vs. 52 in 2011)

Opening of Ayala Land Harbor Point Mall

Resom Resort Philippines development of hotel, casino and golf course invarious areas

Subic Ray Corporation residential/condotel facility at Moonbay Marinaarea

American International School at the former Legenda Suites

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


Tourism

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Tourism

Increase of 130 in the number of

new hotel rooms

38 rooms (Terrace Hotel)

60 rooms (Mango Valley III)

20 rooms (Jusco Hotel)

12 dormitory rooms (The Cabin)

Increase of 26% in the number of

other tourism-related facilities

Ayala Land’s Harbor Point

274 new merchant stores

Four (4) state-of-the-art cinemas

Average foot traffic of 29,600 onweekdays and 39,713 onweekends

Additional 31 new restaurants/diningfacilities, including those at Harbor Point


2012 DEVELOPMENT HIGHLIGHTS

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Development of Subic Bay as Tourist Destination

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Tourism

TOURISM TRAFFIC (Arrivals via SCTEX only)


YearVisitorArrivals

TouristArrivals

HotelGuests

HotelOccupancy

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

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Tourism

MICE


Meetings/Incentives/Conventions/Exhibitions

No. of Participants

Classification 2011 2012 Increase 2011 2012 Increase

International 11 20 82% 2,725 8,955 229%

Local 131 273 108% 104,382 119,673 15%

TOTAL 141 293 108% 107,107 128,628 20%

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Tourism

SPORTS


Sports Events

Classification 2011 2012 Increase

International 8 15 88%

Local 27 33 22%

TOTAL 35 48 37%

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Orica Philippines, Inc., first SBF locator that will use our bunkers in Ilanin ForestEast – Sustainable Use Zone asregional logistics hub

Linneman Technologies, Inc.

Global Architectural Fabrications Subic

Innovative Fibre Industries, Inc.

Vibro Equipment & Parts Far East Co


INDUSTRIAL LEASES

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Repossession from defaulting or non-paying locators and residents of leased

premises, totaling some 257,786 square meters (SQM) of land.

Continuous business mapping of locators and residents, resulting inbillings of PhP5 M and $10 K for SBMAsublease shares


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 ElectronicCorporation

8,104

Summit Hotel 3,000

INDUSTRIAL LEASES

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2012 Good Governance Initiatives

Rice Smuggling

Additional control measure,requiring importers of restrictedgoods to secure the necessarypermits from concernedgovernment agencies prior to

unloading the goods in theFreeport

Suspension of concerned SBMAofficers and revamp of SeaportDepartment

Suspension of involvedtrader/locator and subsequentcancellation its CRTE and PTO

Waste Dumping

Suspension of operations of GlennDefense Marine and other wasteservice contractors, involving thecollection and disposal of shipsewage using sea vessels

Additional preventive measure,requiring that all such sea vesselsewage are to be collected directlyfrom the ship at the pier andtransported by accredited land-

based haulers to be treated inaccredited waste treatment plants

Coordination with DENR andPhilippine Coast Guard for imposition of appropriate penalties


ACTIONS TAKEN RELATIVE TO CONGRESSIONAL HEARINGS

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2012 Good Governance Initiatives

Creation of Regulatory Monitoring Unit for easier

inspection process for renewal of Business Permitto Operate (BPTO)

Conduct of Social Acceptability Process for RP Energyproject and publication of its final report in SBMA’s website

Management reorganization

Implementation of “NO PLASTIC POLICY”

Continuing improvement of Freeport image through“OPERATION FACELIFT”

Launching of “COMMUNITY WATCH PROGRAM”

Set up of “PROJECT UNITY” with LGUs

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

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TAKING OFFPlans and Prospects for 2013

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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) Certification by a third party certifying body in ISO 9001:2008 QualityManagement System

6) Public bidding of SBMA’s 20% share in Subic Water and Sewerage

Company, Inc.


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DEVELOPMENT THRUSTS AND ACTION PLANS

7) Implement new Rationalization Plan and long overdue salaryincreases

8) Complete financial re-structuring plan

9) Launch new corporate website

10) Expand SBMA territory through EO 675 to provide land for newindustrial locators

11) Purchase badly needed equipment for security, maintenance andinfrastructure


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PRIORITY SHOPPING LIST


ITEM COST

RFID Gate Security System PhP50 M

CCTV System 50

IT Enterprise Resource Planning System 60

LED and other service vehicles 15Dump trucks & garbage trucks 13

Harbor patrol boats 9

Others (Supplies, thermoplastic pavement markings, etc.) 5

Traffic light & dump truck repair 3

TOTAL PhP205 M

2013

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SEAPORT PROJECTS

Aggressive marketing by Maritime Technical Working Group for increased utilization of New Container Terminals 1 and 2 as analternate 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


2013 Pl d P t

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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 Westand South East Aprons

Department of National Defenseto occupy small portion of SBIA under commercial terms

Application of EO 271 to be able to take aportion of the 16 transit flights of Air Macau toVietnam, Malaysia and Thailand, and divertthese to Subic


2013 Pl d P t

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SUBIC BAY AS A TOP TOURIST DESTINATION

Under ConstructionCompletion and

Operationsin 2013

TOTAL

Legenda Hotel & Casino 600 rooms

1,000 hotelrooms

Buma Subic 35 rooms Rock Crystal Hotel 200 rooms

Freeport Mansions 65 rooms

Subic Bay Peninsular Hotel 100 rooms

Freeport Elite 80 condotel units 120 condotel

unitsSegara Residences 6 condotel units

Mora Moto 34 condotel units

A total of 1,120 additional rooms

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Subic Bay as Theme ParkCapital 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



TOURISM

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Subic Bay as the country’s topsports tourism site

Continuation of current sports eventsin 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 Footballspecial events


TOURISM

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Boardwalk Development Project Resom Resort Hotel and Casino

Legenda Hotel and Casino

Prospective developers for “blue skeleton”, Boardwalk area, and SBMA

offices block


TOURISM

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West Ilanin Redevelopment Project Resom Villas & Spa Resort

Central Business District

New Royal Choices shopping center

Harbor Point Transport Terminal and Retail Area


TOURISM


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Expansion of SBMA territorythrough 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)


INDUSTRIAL LEASES REGULATORY

Creation of joint SBMA –BOCTechnical 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 CommunityWatchcampaign and intensified LED

security activities

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2013 STRATEGIC PLAN SUMMARY


Maximize land use potential of the Freeport

Aggressively pursue JICA recommendation to use Subicas alternate port to decongest Manila

Develop the airport for general aviation, aircraft repair, jetcharters and other allied aviation activities

Fully exploit tourism potential by creating new attractionsand destinations, promoting MICE, sports and theme parksto attract more tourists

Invest in new equipment and infrastructure needed tosupport SBMA’s strategic initiatives above

Improve the Agency’s financial performance further toprovide funds for its Strategic Plan

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GOODGOVERNANCE

MAKES GOODBUSINESS.

“THE BEST IS

YET TO COME…”

Documents

2013 SOFA 03182013 FINAL