REPORT OF THE PRESIDENT, CHIEF OPERATING OFFICER
AND CHIEF FINANCE OFFICER

Good morning, fellow stakeholders:
Since its inception in 1993, your company, Lopez Holdings Corporation, known then as Benpres Holdings Corporation was organized to steward investments that build the nation and uplift the lives of Filipinos wherever they may be.

Practicing patience and discipline over many decades, Lopez Holdings now has investees that are recognized trailblazers in their chosen industries.

Lopez Holdings increased its stake in First Philippine Holdings Corporation in 1998 when First Holdings issued convertible preferred shares to fund its equity commitment to First Gas, builder of country’s first natural gas-fired power plants, the Sta. Rita and San Lorenzo power plants. First Holdings established First Gen Corporation to hold its power generation assets and proceeded to grow its portfolio to include geothermal, wind, and hydro.

In 2007, First Gen won the public auction for the government’s 60% stake in what is now known as Energy Development Corporation, the largest geothermal producer in the Philippines then with 1,100 MW of steam capacity. In 2014, EDC successfully commissioned the 150 MW Burgos Wind Project, then the largest wind farm in Southeast Asia. And in 2023, First Gen’s wholly owned subsidiary Fresh River Lakes Corporation was declared as the winning bidder for the 165 MW Casecnan Hydroelectric Power Plant, a run-of-river type of facility, located in Pantabangan, Nueva Ecija.

Throughout this period of expansion, First Holdings and First Gen paid steady dividends and reduced debt by selling mature assets. The sale of controlling stakes in Manila Electric Company in 2009 and the First Gen gas assets in 2025 were pursued in line with a long-term perspective while aiming  to increase the recurring income of investees.

This year’s new investments by First Gen in pumped storage hydro power projects controlled by Prime Infrastructure Capital, Inc. are meant to demonstrate the compounding value of stewardship as the First Holdings Group supports the country’s shift to renewable energy in the quest for energy security and independence.

Rockwell Land Corporation is another example of how consistently prudent choices and disciplined innovation enhance value over time. Lopez Holdings was among the original proponents of Rockwell Land, which is now housed under the First Holdings Group. After the initial equity contribution of Lopez Holdings in 1995, Rockwell Land operated as a self-sufficient company, relying solely on its cash flow and ability to secure loans against its assets. Successful pre-selling allowed Rockwell Land to stay ahead of the financial crisis that gripped Asia in 1997. It delivered Rizal Tower and Hidalgo Place to buyers in 1999, and Luna Gardens and Amorsolo Square in 2000 just as the Power Plant Mall opened for business, all located in Rockwell Center in Makati.

The sterling reputation of Rockwell Land as a reliable developer and customer-focused property manager foretold well for subsequent projects such as Manansala, delivered in 2005, Joya Towers & Lofts, both delivered in 2008, and One Rockwell, delivered in 2010. From its niche neighborhood development in Makati, Rockwell Land systematically expanded to new geographic areas and now offers vertical and horizontal residences, work and retail spaces, and hotel and leisure properties, in Metro Manila, Luzon and the Visayas.

Its purchase in 2025 of a controlling stake in Alabang Commercial Corporation, which operates the Alabang Town Center, is meant to build on its 30 years of good choices, as it grows recurring revenues and reaps the compounding value of stewardship.

The same holds true for ABS-CBN. Since losing its broadcast franchise in 2020, ABS-CBN has had to quickly leap into the future and transition into a pure content provider. Instead of being distributed solely on broadcast platforms such as free TV and radio, ABS-CBN news and entertainment programs are now accessible to even more audiences via over-the-top platforms, both domestic and international, accelerating its transformation into a digital media powerhouse.

While returns from digital content provision remain quite small compared to the huge margins from its erstwhile broadcasting business, ABS-CBN has stayed the course aspiring to showcase the very best of Filipino talent to the world. The continued rise of its homegrown all-girl P-Pop group BINI, which recently made history as the first Filipino group to perform at Coachella, taking the Mojave Stage on April 10 and 17, tells us that ABS-CBN is on the right track in the development and promotion of Philippine made content. It continues to organize professional teams to produce shows, movies, music, events and other content for streaming and other platforms.

Success in content creation can only come through painstaking labor, steadfast support, and consistently listening to global audiences. ABS-CBN’s institutional knowledge has proven to be valuable and greatly respected by stakeholders, foremost among them, the Filipino public it serves through truthful and inspiring storytelling whether for news, public affairs, entertainment or info tainment.

Good choices, as practiced by investees, have allowed your company, Lopez Holdings, to scale impact through the responsible stewardship of people, planet and progress. Sustainability is built over time through patient and disciplined decision making that considers risks, as well as the interests of all stakeholders.

Stewardship recognizes that institutions and businesses must be cared for and strengthened through systems and processes that adhere to time-tested values and the steady practice of making good choices every step of the way.

For the year 2025, Lopez Holdings reported P12.054 billion in net income attributable to equity holders of the Parent. This is 90% higher than the P6.343 billion in net income attributable to equity holders of the Parent in 2024.

First Holdings reported a 38% increase in net income attributable to equity holders of the Parent to P19.8 billion from P14.3 billion in 2024. Recurring net income attributable to First Holdings was at P15.1 billion. Its year-on-year consolidated revenues were higher by 8% at P84.7 billion from P78.6 billion (as restated). The divestment of First Gen’s 60% stake in the gas business and Rockwell Land’s acquisition of a controlling stake in Alabang Commercial Center resulted in one-off gains totaling P10.3 billion.

Rockwell Land, a subsidiary of First Holdings, reported a net income attributable to shareholders of the Parent of P4.7 billion, 29% higher than P3.7 billion in 2024. Rockwell Land recognized one-off gains from its acquisition of 74.8% stake in Alabang Commercial Center in December 2025. Excluding the effect of non-recurring gains, recurring net income attributable to Rockwell Land grew by 9% year-on-year to P4.1 billion from P3.7 billion.

For ABS-CBN, it reported a 2025 net loss of P4.718 billion, 23% lower than the net loss of P6.092 billion in 2024. Year-on-year revenues were down by 9% to P15.852 billion from P17.329 billion the previous year.

Your company received P567 million in cash dividends from First Holdings last year, and at the same time distributed P452 million in cash dividends to you. This year, your company paid out same cash dividends of P0.10 per share on July 9, 2026.

Lopez Holdings financial position increased by 10% to P581.5 billion as of December 31, 2025 from P527.6 billion as of December 31, 2024. This primarily came from the proceeds on the sale of First Gen’s 60% equity stake in gas business, cash generated from operations and financing activities of the Group as well as increase in the fair market value of the acquired investment properties of Rockwell Land’s stake in Alabang Commercial Center and the remaining 33% interest in the gas business after its sale to Prime Infrastructure.

Consolidated total liabilities stood at P266.3 billion as of December 31, 2025 with debt-to-equity ratio slightly decreased at 0.56x in 2025 from 0.59x in 2024 while the book value per share increased at P24.34 a share at the end of 2025 from a book value of P21.17 a share in 2024. Results of operations increased total equity attributable to Parent by 28% to P118.0 billion as of December 31, 2025 from P92.2 billion as at year-end 2024.

For the unaudited financial results for the first half of 2026, Lopez Holdings reported a consolidated net income attributable to equity holders of the Parent amounting to P5.518 billion for the six months ended June 30, 2026 which is 3% higher than the P5.340 billion net income attributable to equity holders of the Parent for the same period last year.

Likewise, First Holdings posted a 3% increase in net income attributable to equity holders of the parent to P9.218 billion from P8.954 billion, as restated, in first half of 2026. Consolidated revenues grew by 52% to P59.578 billion from P39.178 billion, as restated. Sale of electricity accounted for 69% and 61% of revenues in 1H2026 and 1H2025, respectively.

On the other hand, ABS-CBN’s consolidated net loss amounted to P1.830 billion, a 115% increase from the net loss of P852 million year-on-year. It was due to the presence of election-related advertising in 2025 and Sky Cable’s declining subscriber base, both for cable and broadband. Lopez Holdings ceased the equity pick up on ABS-CBN’s operations, through Lopez PDRs, since end of 2024.

As of June 30, 2026, the financial position of Lopez Holdings grew by P60.6 billion or 10% with consolidated total assets amounting to P642.1 billion as of June 30, 2026 from P581.5 billion audited as of December 31, 2025. The growth reflected First Gen’s 33% equity interest in Prime Infra’s pumped storage hydroelectric portfolio, comprising the 2000MW Pakil and Wawa Hydroelectric Power Projects.

Similarly, consolidated total liabilities rose by P45.1 billion or 17% to P311.36 billion, mostly reflecting the outstanding subscription payable for First Gen’s investment in Prime Infra’s Pakil and Wawa pumped storage hydroelectric portfolio and Rockwell Land’s P10 billion bond issuance in March 2026.

Results of operations increased the Equity attributable to Parent by 4% to P123.2 billion as of June 30, 2026 from P118.0 billion as of December 31, 2025. It was brought about by the consolidated net income attributable to Parent of P5.518 billion for the 1H2026 and equity share from the movements of other comprehensive income of FPH Group, net of dividend declaration on June 19, 2026. Noncontrolling interest pertains to the share of minority interest on the total equity of LHC and FPH, as consolidated.

Lopez Holdings adheres to the compounding value of stewardship. Good choices made consistently over time allow institutions to endure, adapt, and continue serving society for generations to come. Stakeholders benefit as stewardship scales impact. Good choices translate into a legacy of responsible decisions that ripple through businesses, communities, and the environment. Your company aspires to parlay the compounding value of stewardship to help build the nation and uplift the lives of Filipinos wherever they may be.

Before I end my report, please allow me to deliver a personal message. After 26 meaningful years with the Lopez Group of Companies, the time has come for me to move on and say goodbye.

I leave with deep gratitude to the Lopez family for the trust and confidence they have placed in me throughout my career. It has been an honor to work alongside both the second and third generations of the Lopez family and the Lopez group executives, whose leadership, vision and commitment to excellence have been a constant source of inspiration.

Throughout my tenure, I have always sought to uphold fairness, integrity, good governance and professionalism, always seeking outcomes that served the best interest of the Lopez group and its stakeholders. Equally important, I embraced the Lopez values which have guided my professional development and enriched my personal growth.

Looking back on these past 26 years, I do so with deep appreciation – for the friendships built, the lessons learned, the challenges overcome, and the opportunities that helped shape my character and career.

To the Lopez family, my colleagues, mentors, and friends, thank you for your support, guidance and friendship. Your encouragement and partnership have made this experience truly productive and meaningful. I now leave with a grateful heart and pride that I have been part of the Lopez group.

Thank you, and may God continue to bless the Lopez family and the Lopez Group of Companies.

Good morning!