Download - SOFA 2013
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
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
Key Performance Indicators
NEW PROJECTS AND INVESTMENTS
KPI 2011 2012 Variance
Total Committed
Investments US$959 M US$70 M
Cumulative
Investments
(1992-2012)
US$7.83 B US$7.90 B
No. of New
Projects 127 351
176%
93%
0.9%
New Approved Investments
2011 Top New Approved Investments
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 5
Rank Company
Committed Investments
(In US$) 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
New Approved Investments
2012 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 6
Rank Company
Committed 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. 5,200,000 218,400,000
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
11 Others 31,611,834 1,327,696,967
GRAND TOTAL US$70,456,281 PhP2,959,163,816
New Approved Foreign and Local Investments
New Approved Investments (2011 vs 2012)
S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 7
Committed
Investment 2011 2012 Increase
Total in US$ 959 M 70 M (889 M)
Less
Renewable
Energy Projects
908 M
Net New
Committed
Investment
51 M 70 M 19 M
37%
Key Performance Indicators
EXPORTS
Our Top 3 Exporters in terms of FOB Value
8 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
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
Key Performance Indicators
EMPLOYMENT GENERATION
KPI 2011 2012 Increase
No. of Jobs
Generated 88,957 89,104
0.17%
2012 Workforce by Business Sector
SERVICES 42.64%
SHIPBUILDING MARINE RELATED
SERVICES 30.61%
CONSTRUCTION 9.10%
DOMESTIC HELPERS/
CARETAKER 0.61%
MANUFACTURING 17.03%
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
BOC PhP 6.117 B PhP 6.329 B
TOTAL PhP 7.224 B PhP 7.615 B 5.42%
16.22%
3.47%
Contributing to the National and Local Economy
NATIONAL GOVERNMENT AND LGU SHARES
11 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
Allocation from
5% Corp. Tax 2011 2012 Variance
National PhP199 M PhP187 M
LGUs 145 M 139 M
TOTAL 344 M 326 M
4%
SUBIC 18 M
CASTILLEJOS 10 M
SAN MARCELINO 15 M
SAN ANTONIO 11 M
MORONG 11 M
HERMOSA 13 M
DINALUPIHAN 16 M
OLONGAPO CITY 32 M
6%
5%
GAINING GROUND
2012 Major Developments and Accomplishments
Financial Performance
HIGHEST PROFIT IN SBMA’S 20-YEAR HISTORY
13 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
Net Income
After Taxes
2011 2012 Increase
(PhP 1,118 M) PhP 811M 170%
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
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%
Increased Revenues by 16%
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 16
Revenue
Source Increase
Land and
Buildings PhP85 M 12%
Regulatory
Income 84 M 74%
Seaport
Operations 63 M 19%
Airport
Operations 3 M 7%
CUSA and Admin Fees (AF)
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 /
Visa and accreditation /
CRTE/PTO / Vehicle Registration)
CUSA Total Collected 12 M
AF Total Collected 3 M
Reduced Expenses by 7%
CUT OPERATING EXPENSES WITH AUSTERITY MEASURES
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 17
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%)
Low CAPEX
CUT CAPITAL EXPENDITURES
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 18
CAPEX Decrease
(In Peso Thousands)
Land & Land
Improvements 22,233 (84%)
Equipment Outlays 4,534 (27%)
IT Outlays 7 (100%)
Foreign Exchange Gains
19 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
FAVORABLE EXCHANGE RATES
ON SBMA’S FOREIGN LOANS
2011 2012 FOREX Gains
(PhP .566 M) PhP 1.11 M 297%
Increased Operating Profit by 91%
20 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
The bottomline is that EBITDA substantially
increased.
2011 2012 Increase
PhP 328 M PhP 628 M 91%
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
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 21
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
OPERATIONS
Seaport
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 23
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-
containerized
Cargo (in MTs)
2,593,117 2,213,709
70%
11%
47%
15%
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
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 24
Airport
OPERATIONS
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 25
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%
2012 DEVELOPMENT HIGHLIGHTS
513% increase in the number of leisure-related new and expansion
projects (319 in 2012 vs. 52 in 2011)
Opening of Ayala Land Harbor Point Mall
Resom Resort Philippines development of hotel, casino and golf course in
various areas
Subic Ray Corporation residential/condotel facility at Moonbay Marina
area
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
26 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
Tourism
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 on
weekdays and 39,713 on
weekends
Additional 31 new restaurants/dining
facilities, including those at Harbor
Point
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 27
2012 DEVELOPMENT HIGHLIGHTS
Development of Subic Bay as Tourist Destination
Tourism
TOURISM TRAFFIC (Arrivals via SCTEX only)
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 29
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%
Development of Subic Bay as MICE Destination
Tourism
MICE
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 31
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%
Tourism
SPORTS
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 32
Sports Events
Classification 2011 2012 Increase
International 8 15 88%
Local 27 33 22%
TOTAL 35 48 37%
2012 Development Highlights
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
33 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
INDUSTRIAL LEASES
2012 Development Highlights
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 in
billings of PhP5 M and $10 K for SBMA
sublease shares
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 34
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
INDUSTRIAL LEASES
2012 Good Governance Initiatives
Rice Smuggling
Additional control measure,
requiring importers of restricted
goods to secure the necessary
permits from concerned
government agencies prior to
unloading the goods in the
Freeport
Suspension of concerned SBMA
officers and revamp of Seaport
Department
Suspension of involved
trader/locator and subsequent
cancellation its CRTE and PTO
Waste Dumping
Suspension of operations of Glenn
Defense Marine and other waste
service contractors, involving the
collection and disposal of ship
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
transported by accredited land-
based haulers to be treated in
accredited waste treatment plants
Coordination with DENR and
Philippine Coast Guard for
imposition of appropriate penalties
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 35
ACTIONS TAKEN RELATIVE TO CONGRESSIONAL HEARINGS
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
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
TAKING OFF
Plans and Prospects for 2013
Asia’s Newest Emerging Dragon
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 38
Exchange rate improved by 3.70%
Asia’s best performing stock market
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 Quality
Management System
6) Public bidding of SBMA’s 20% share in Subic Water and Sewerage
Company, Inc.
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 39
2013 Plans and Prospects
DEVELOPMENT THRUSTS AND ACTION PLANS
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
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 40
2013 Plans and Prospects
PRIORITY SHOPPING LIST
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 41
ITEM COST
RFID Gate Security System PhP50 M
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 PhP205 M
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
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 42
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
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 43
2013 Plans and Prospects
44 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
SUBIC BAY AS A TOP TOURIST DESTINATION
Under Construction
Completion and
Operations
in 2013
TOTAL
Legenda Hotel & Casino 600 rooms
1,000 hotel
rooms
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
units Segara Residences 6 condotel units
Mora Moto 34 condotel units
A total of 1,120 additional rooms
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
2013 Plans and Prospects
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 45
TOURISM
2013 Plans and Prospects
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
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 46
TOURISM
2013 Plans and Prospects
Boardwalk Development Project
Resom Resort Hotel and Casino
Legenda Hotel and Casino
Prospective developers for “blue skeleton”, Boardwalk area, and SBMA
offices block
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 47
TOURISM
2013 Plans and Prospects
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
TOURISM
2013 Plans and Prospects
Expansion of SBMA territory
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
INDUSTRIAL LEASES REGULATORY 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
2013 STRATEGIC PLAN SUMMARY
50 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
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
GOOD
GOVERNANCE
MAKES GOOD
BUSINESS.
“THE BEST IS
YET TO COME…”