Filinvest Development CorporationFDC

Clarification of News Report

We reply to your directive to clarify and/or confirm the information posted in Inquirer.net. wherein it was reported in part that:

“Gotianun-led Filinvest Development Corp. (FDC) plans to earmark up to P25 billion in capital outlays this year as it pursues expansion across all its businesses, but particularly real estate, energy and hospitality.

Brian Lim, FDC chief financial officer, told reporters last week that they would fill this up mostly through internally generated funds and debt.

Bulk of the total—60 percent, or around P15 billion—will go to the development of more real estate projects under Filinvest Land Inc. and Filinvest Alabang Inc.

Around P3.75 billion, or 15 percent, will be set aside for power arm FDC Utilities Inc. as the parent company pursues renewable energy projects.

According to Lim, they are currently constructing a 20-megawatt (MW) solar project in Misamis Oriental province—their first in Mindanao—and another 12 MW in Cebu province. Both are expected to start commercial operations within a year.

They are also venturing into hydropower development in Pangasinan province, but this is still in the planning stage, Lim said.

Meanwhile, Filinvest Hospitality Corp. (FHC) will also get P3.75 billion for expansion, including its first Grafik Hotel up north in Baguio City that is set to open by the first quarter of 2025.

FHC, which is also behind hotel brands Crimson and Quest, previously said they would develop the 200-room hotel within a 5,700-square-meter area in Camp John Hay after clinching a 25-year lease.

FDC’s hospitality arm is also developing a Crimson hotel in Clark, Pampanga, while expanding its inaugural branch in Mactan, Cebu.

The remaining 10 percent, or P2.5 billion, will be used for developments in other businesses, as well as digitalization, according to chief operating officer Ysmael Baysa.

Digitalization ‘is a very big project that will affect practically all or most legal entities. That’s the biggest investment there,’ he said.

Baysa explained that they wanted to create a unified system for their purchasing, project management, and management report, analysis and planning systems.

The company’s push for digitalization began in 2021, Baysa said, with the ‘biggest implementation’ slated for this year.

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We would like to clarify the following regarding capital expenditure:

a. Php15 billion will be allocated to Filinvest Land Inc. only;
b. Php2.50 billion will be allocated to developments in other businesses, including Filinvest Alabang Inc., as well as digitalization.

We confirm the veracity of the rest of the information contained in the news article.

FDC will make the required disclosures to the public as and when there are material concrete developments to the Company’s projects.

Forward-looking statements: This clarification contains forward-looking statements that are, by their nature subject to risks and uncertainties. When used herein, the words “aims”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought to”, “plan”, “project”, “seek”, “should”, “will”, “would” and similar expressions, are intended to identify forward-looking statements.

Such forward-looking statements are based on numerous assumptions and known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. These forward-looking statements speak only as the date of this release and nothing contained herein is or should be relied upon as a promise, warranty, or representation in the future. FDC expressly disclaims any obligation or undertaking to release, public or otherwise, any updates or revisions to any forward-looking statement contained herein to reflect any change in FDC’s expectations with regard thereto or any change in events, conditions, assumptions or circumstances on which any statement is based.