Presented by:

ROBERTO V. GARCIAChairman and Administrator

Subic Bay Metropolitan Authority

HOW DID SBMA PERFORMIN 2013?

Substantial increase of 800 % in approved investments, from PHP3 billion in 2012 to PHP27 billion in 2013

3SUBIC BAY METROPOLITAN AUTHORITY

I. Investment Promotion Performance

KPI 2012 2013 Increase

Total Committed

InvestmentsPHP3 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

4SUBIC BAY METROPOLITAN AUTHORITY

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

5SUBIC BAY METROPOLITAN AUTHORITY

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

6SUBIC BAY METROPOLITAN AUTHORITY

Investment Promotion Performance

Investment Promotion Performance

7SUBIC BAY METROPOLITAN AUTHORITY

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

SUBIC BAY METROPOLITAN AUTHORITY 8

Year

Via SCTEXTourist 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

SUBIC BAY METROPOLITAN AUTHORITY 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 EVENTS1) 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)

10SUBIC BAY METROPOLITAN AUTHORITY

III. Becoming a Major Logistics Hub for Asia

PORT OPERATIONS

11SUBIC BAY METROPOLITAN AUTHORITY

KPI 2012 2013 Increase

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 2,404,6498.6%

3.2%

8.7%

40.5%

Becoming a Major Logistics Hub for Asia

SEAPORT REVENUE (in PHP)

12SUBIC BAY METROPOLITAN AUTHORITY

Actual 2012

Actual 2013 Increase Target

2013%

Achieved

402,444,994 626,544,703 56% 483,756,478 130%

Processing Fees & Other Charges1.5%

SBMA Shares11.5%

Cargo Charges24.3%

Lease/Rental28.6%

Vessel Charges34.0%

REVENUE SOURCES

Becoming a Major Logistics Hub for Asia

EXPORTS

13SUBIC BAY METROPOLITAN AUTHORITY

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%

Becoming a Major Logistics Hub for Asia

AIRPORT REVENUE (in PHP)

14SUBIC BAY METROPOLITAN AUTHORITY

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

15SUBIC BAY METROPOLITAN AUTHORITY

KPI 2012 2013 Increase

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

16SUBIC BAY METROPOLITAN AUTHORITY

 Allocation from 5% Corp. Tax 2012 2013 Increase

National PHP187 M PHP211 M

LGUs 139 M 156 M

TOTAL 326 M 367 M

SUBIC23 M

CASTILLEJOS13 M

SAN MARCELINO 18 M

SAN ANTONIO14 M

MORONG 14 M

HERMOSA 16 M

DINALUPIHAN 19 M OLONGAPO CITY

39 M

13%

12%

12%

V. Making the Freeport More Safe & Secure

17SUBIC BAY METROPOLITAN AUTHORITY

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

18SUBIC BAY METROPOLITAN AUTHORITY

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

19SUBIC BAY METROPOLITAN AUTHORITY

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 PerformanceANOTHER RECORD-BREAKING YEAR

27%↑

SBMA GROSS REVENUES2013 is HIGHEST ever.

21SUBIC BAY METROPOLITAN AUTHORITY

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

500,000,000.00

1,000,000,000.00

1,500,000,000.00

2,000,000,000.00

2,500,000,000.00

195,836,049.15

422,213,378.00

613,422,424.00

803,155,348.00

1,180,476,811.00

1,413,258,245.00

1,305,297,125.00

1,402,655,000.00

1,556,000,000.00 1,538,000,000.00

1,338,009,288.35

1,603,583,000.00

1,497,966,000.00 1,566,724,000.00

1,469,007,000.00

1,574,168,000.00

1,672,771,000.00

1,424,799,000.00 1,398,772,000.00

1,651,877,000.00

2,092,193,000.00

SBMA OPEXOperating costs kept under control for the past 2 years.

22SUBIC BAY METROPOLITAN AUTHORITY

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

200,000,000.00

400,000,000.00

600,000,000.00

800,000,000.00

1,000,000,000.00

1,200,000,000.00

1,400,000,000.00

156,551,513.15

239,541,381.15 275,143,399.67

441,993,370.82

591,953,929.54

663,576,289.97

755,582,111.00 749,497,285.00

687,314,135.00

758,598,000.00

543,484,407.48

1,263,009,000.00

1,063,204,000.00 1,092,200,000.00

1,229,078,000.00 1,215,417,000.00

1,266,638,000.00

1,058,075,000.00 1,070,183,000.00

999,863,000.00

1,100,120,000.00 10%↑

SBMA OPERATING INCOME (EBITDA)2013 is HIGHEST ever.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

200

400

600

800

1,000

1,200

39

183

338361

589

750

550

653

869

779 795

341

435475

240

359

406367

329

652

992

Mil

lio

ns

23SUBIC BAY METROPOLITAN AUTHORITY

52%↑

SBMA NET INCOME2013 is HIGHEST ever.

24SUBIC BAY METROPOLITAN AUTHORITY

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

(3,000,000,000.00)

(2,500,000,000.00)

(2,000,000,000.00)

(1,500,000,000.00)

(1,000,000,000.00)

(500,000,000.00)

-

500,000,000.00

1,000,000,000.00

1,500,000,000.00

(184,743,864)

(73,231,831)(34,790,983)(81,931,954)

2,128,520 7,904,093

(105,616,115)

244,915,326

32,683,000 135,026,000 169,857,000

(927,787,000)

(102,476,000)(233,036,000)

(138,000,000)

(2,539,947,000)

(417,380,000)

(1,203,230,000)(1,118,685,000)

799,614,000

1,078,866,000 35%↑

SBMA LONG-TERM DEBTLong-term debt decreased by over 17% in 2 years’ time.

25SUBIC BAY METROPOLITAN AUTHORITY

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013PHP 0.00

PHP 2,000,000,000.00

PHP 4,000,000,000.00

PHP 6,000,000,000.00

PHP 8,000,000,000.00

PHP 10,000,000,000.00

PHP 12,000,000,000.00

PHP 14,000,000,000.00

0.00301,390,680.00

563,759,821.00722,990,058.00889,861,248.00899,614,280.00807,519,341.00795,041,231.00816,353,000.001,230,656,000.00

6,648,371,000.00

7,190,548,000.007,197,563,000.00

7,740,677,000.007,861,139,000.00

10,809,002,000.00

12,446,664,338.0612,551,204,139.9112,442,719,513.04

10,923,196,522.30

10,313,683,272.15 6%↓

SBMA CASH POSITIONCash position improved by over 92% in 2 years’ time

26SUBIC BAY METROPOLITAN AUTHORITY

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013PHP 0.00

PHP 200,000,000.00

PHP 400,000,000.00

PHP 600,000,000.00

PHP 800,000,000.00

PHP 1,000,000,000.00

PHP 1,200,000,000.00

PHP 1,400,000,000.00

PHP 1,600,000,000.00

365,217,414.72

720,144,370.00

1,033,110,916.00994,868,214.00

1,264,815,490.00

880,827,621.00

1,042,959,710.00

1,270,017,619.001,247,359,000.00

1,145,944,000.00

1,478,423,000.00

1,356,938,000.00

842,432,000.00

750,868,000.00

472,767,000.00

667,034,000.00

271,928,000.00

584,881,000.00595,219,000.00

730,872,000.00

1,152,799,000.0092%↑

2014 Development Plansand 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”.

28SUBIC BAY METROPOLITAN AUTHORITY

*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.

29SUBIC BAY METROPOLITAN AUTHORITY

2014 Major Programs

CAPEXActual

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

30SUBIC BAY METROPOLITAN AUTHORITY

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

31SUBIC BAY METROPOLITAN AUTHORITY

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

32SUBIC BAY METROPOLITAN AUTHORITY

“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