Presented by: ROBERTO V. GARCIA - Subic · PDF filePresented by: ROBERTO V. GARCIA ... Signing of IRR with thePastolan Aetas and National Commission for Indigenous Peoples,

Presented by:

ROBERTO V. GARCIA Chairman and Administrator

Subic Bay Metropolitan Authority

HOW DID SBMA PERFORM

IN 2013?

Substantial increase of 800 % in approved investments,

from PHP3 billion in 2012 to PHP27 billion in 2013

3 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

I. Investment Promotion Performance

KPI 2012 2013 Increase

Total

Committed

Investments

PHP3 B PHP27 B

Cumulative

Investments

(1992-2012)

US$8.8 B US$9.4 B

Projected

Employment

from New

Projects

2,597 4,402

800%

7%

70%

Investment Promotion Performance

Top New Investments


Rank Company Committed Investments

(in PHP)

1 Resom Resort 21,370,000,000

2 PTT Philippines Trading Corporation 1,900,000,000

3 FFC Subic Seafoods Corporation 848,924,000

4 Johanna-Subic Seafood Corporation 795,574,432

5 Glowbal Outlets Philippines, Inc. 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 Alpha Primero Services Manufacturing, Inc. 84,680,169

9 Associated Freight Consolidators 83,131,539

10 Platinum Skies Aviation, Inc. 80,000,000

OTHERS 1,274,657,078

GRAND TOTAL PHP27,000,291.494

* Based on BSP average FOREX rate of PHP42.4462 for 2013

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



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





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

II. It’s More Fun~tastic in SUBIC!

TOURISM TRAFFIC

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 8

Year

Via SCTEX

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% 3% 8%

It’s More Fun~tastic in SUBIC!

EVENTS

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 9

MICE & NON-

SPORTS 2012 2013 Variance

No. of Events 230 194 (16%)

No. of Participants 110,015 113,994 4%

SPORTS 2012 2013 Increase

No. of Events 53 56 6%

No. of Participants 19,327 43,215 124%

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)


III. Becoming a Major Logistics Hub for Asia

PORT OPERATIONS



Gross

Registered

Tonnage (GRT)

23,902,552 33,591,875

No. of Ship

Calls 2,003 2,177

Containerized

Cargo (in TEUs) 36,304 37,460

Non-

containerized

Cargo (in MTs)

2,214,704 2,404,649 8.6%

3.2%

8.7%

40.5%

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%

Cargo Charges 24.3%

Lease/Rental 28.6%

Vessel Charges 34.0%

REVENUE SOURCES


EXPORTS


Export FOB

Value (in US$) 2012 2013 Variance

SBF Locator

Exports Port

Users

1.91 B 1.34 B

Non-SBF

Exports Port

Users

0.01 B 0.08 B

TOTAL 1.92 B 1.42 B

998%

30%

26%


AIRPORT REVENUE (in PHP)


Source 2012 2013 Variance

Royalty &

Airport Fees 5,973,909 4,897,712

Lease 30,560,894 49,941,162

TOTAL 36,534,803 54,838,875

63%

18%

50%

IV. Contributing to the National and Local Economy

Tax Cash Collections / Job Generation



BIR P1,278M P1,392M

BOC P6,329M P10,840M

Manpower 89,104 89,584

71%

8.9%

0.5%

Contributing to the National and Local Economy

NATIONAL GOVERNMENT AND LGU SHARES


Allocation from

5% Corp. Tax 2012 2013 Increase

National PHP187 M PHP211 M

LGUs 139 M 156 M

TOTAL 326 M 367 M

SUBIC 23 M

CASTILLEJOS 13 M

SAN MARCELINO 18 M

SAN ANTONIO 14 M

MORONG 14 M

HERMOSA 16 M

DINALUPIHAN 19 M

OLONGAPO CITY 39 M

13%

12%

12%

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

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

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

2013 Financial Performance

ANOTHER RECORD-BREAKING YEAR

27%↑

SBMA GROSS REVENUES

2013 is HIGHEST ever.


0.20

0.42

0.61

0.80

1.18

1.41

1.31

1.40

1.56 1.54

1.34

1.60

1.50 1.57

1.47

1.57

1.67

1.42 1.40

1.65

2.09

-

0.50

1.00

1.50

2.00

2.50

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Billio

ns

SBMA OPEX

Operating costs kept under control for the past 2 years.


0.16

0.24 0.28

0.44

0.59

0.66

0.76 0.75

0.69

0.76

0.54

1.26

1.06 1.09

1.23 1.22

1.27

1.06 1.07

1.00

1.10

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Billio

ns

10%↑

SBMA OPERATING INCOME (EBITDA)


39

183

338 361

589

750

550

653

869

779 795

341

435

475

240

359

406

367

329

652

992

0

200

400

600

800

1,000

1,200

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Millio

ns


52%↑

SBMA NET INCOME



(185) (73) (35) (82)

2 8

(106)

245

33 135 170

(928)

(102) (233)

(138)

(2,540)

(417)

(1,203)

(1,119)

800

1,079

(3,000.00)

(2,500.00)

(2,000.00)

(1,500.00)

(1,000.00)

(500.00)

-

500.00

1,000.00

1,500.00

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Millio

ns

35%↑

SBMA LONG-TERM DEBT

Long-term debt decreased by over 17% in 2 years’ time.


0.00 0.30

0.56 0.72 0.89 0.90 0.81 0.80 0.82

1.23

6.65

7.19 7.20

7.74 7.86

10.81

12.45 12.55

12.44

10.92

10.31

PHP 0.00

PHP 2.00

PHP 4.00

PHP 6.00

PHP 8.00

PHP 10.00

PHP 12.00

PHP 14.00

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Billio

ns

6%↓

SBMA CASH POSITION

Cash position improved by over 92% in 2 years’ time


0.37

0.72

1.03 0.99

1.26

0.88

1.04

1.27 1.25

1.15

1.48

1.36

0.84

0.75

0.47

0.67

0.27

0.58 0.60

0.73

1.15

PHP 0.00

PHP 0.20

PHP 0.40

PHP 0.60

PHP 0.80

PHP 1.00

PHP 1.20

PHP 1.40

PHP 1.60

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Billio

ns

92%↑

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%.

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”.


*The Philippines for the first time placed

second only to China in GDP growth for

the whole Asian region.

Substantially increase capital expenditures from PHP9 million in 2013 to

PHP620 million this year.


2014 Major Programs

CAPEX

Actual

2013

Proposed

2014 % Increase

(in Peso Thousands)

Land and Land

Improvements 1,524 90,004 5,804

Buildings & Structures 480 2,616 445

IT Equipment 13 133,961 1,054,714

Equipment Outlays 7,013 393,418 5,510

TOTAL 9,030 620,000 6,766%

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


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


2014 Major Programs

“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


“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

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.

MEDIA ADVISORY

Documents

Presented by: ROBERTO V. GARCIA - Subic · PDF filePresented by: ROBERTO V. GARCIA ... Signing of IRR with thePastolan Aetas and National Commission for Indigenous Peoples,