OVERVIEW OF

SUBIC BAY FREEPORT ZONEPHILIPPINESPHILIPPINES

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 Y22

The VISIONThe VISION

““The Subic-Clark corridor will be the most The Subic-Clark corridor will be the most

competitive international service and logistics competitive international service and logistics

center in the Southeast Asian Region”center in the Southeast Asian Region”

from the inaugural speech of Her Excellency

President Gloria Macapagal-Arroyo

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PRODUCTION CENTERPRODUCTION CENTER

Subic-Clark CorridorSubic-Clark CorridorHIGHLIGHTS 1,004 sq km* development area bound

by the Clark Special Economic Zone in

the north & Subic Freeport & Special

Economic Zone in the southwest* Combined area of Clark & Subic is

36.5x larger than Macau’s present area

of 27.5 sq-km.

US$14-billion existing infrastructure in

former US military bases of Clark and

Subic

A major component of the Metro

Luzon Urban Beltway development

matrix

Tax and duty-free incentives

Metro Luzon Urban Beltway

PACIFIC GATEWAY PACIFIC GATEWAY METROPOLITAN AREAMETROPOLITAN AREA

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Subic-Clark Area DevelopmentSubic-Clark Area Development

SCAD VisionTo develop the Subic-Clark Corridor into a globally competitive logistics hub for the efficient movement of people, goods, services & data, in partnership with the private sector

Subic Seaport

Clark Airport

North Rail

North LuzonExpressway

Subic-ClarkSubic-ClarkToll RoadToll Road

NLE Extension(Clark-Tarlac Road)

A Seamless Economic CorridorA Seamless Economic Corridor

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Subic – Clark Growth CorridorSubic – Clark Growth Corridor

Commercial Gateway

Entertainment Haven

Software Development / Hi-Tech Manufacturing Hub

Logistics Hub

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SBMA Charter

SBMA Charter (RA 7227)SBMA Charter (RA 7227)

The SBMA shall promote the Subic Special

Economic Zone into a self-sustaining,

industrial, commercial, financial and

investment center to generate employment

opportunities in and around the zone and to

attract and promote productive foreign

investments.

Since its inception in 1992, the Subic Bay Freeport has become one of the country’s premier showcases for economic development, a symbol of pride for every Filipino, and one of the most successful models of military base conversion in the world.

Key Performance Indicators:• 638 approved investments• US$3.3 billion in committed investments• 59,000 jobs created

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SUBIC BAYSUBIC BAY, , 94 YEARS U.S. Naval Base94 YEARS U.S. Naval Base

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Subic’s AdvantagesSubic’s Advantages

Strategic Location

World Class Infrastructure

Highly Qualified Workforce

Competitive Incentives

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The strategic location of the Subic-Clark corridor in the heart of The strategic location of the Subic-Clark corridor in the heart of the growing economies of Asia gives it a most distinct edgethe growing economies of Asia gives it a most distinct edge

Average Flying Hours:

Tokyo 3:35 Hong Kong 1:20 Jakarta 4:25 Kuala Lumpur 3:30 Singapore 3:00 Shanghai 2:20 Seoul 4:00 Taipei 1:20 Bangkok 3:00 Brunei 2:30 Vietnam 2:30

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Subic is a complete port Subic is a complete port There are a total of 15 operational piers and wharves capable of handling all kinds of sea vessels

South China Sea

New Container Terminal Cubi Point

Subic International Airport

Subic Bay Techno-Park

Industrial Park (Phase 2) Industrial Park (Phase 1)

NSD Area

ENRON Power Plant

Central AreaSRF Area

Boton WharfBoton Wharf

POL PierPOL Pier

Marine TerminalMarine Terminal Sattler PierSattler Pier

Rivera WharfRivera Wharf

Bravo WharfBravo Wharf

Yacht ClubYacht Club

Passenger TerminalPassenger Terminal

Leyte PierLeyte Pier

Nabasan WharfNabasan Wharf

Camayan WharfCamayan Wharf

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The New Container Terminal at Subic Bay Freeport The New Container Terminal at Subic Bay Freeport (target completion: 2007)(target completion: 2007)

The container terminal is a 13 m deep, 560 m long, two-berth port which will effectively decongest the port of Manila, and will potentially contribute in filling the capacity shortage (14 million TEUS) projected for Southeast Asia.

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The Subic Bay International Airport (SBIA)The Subic Bay International Airport (SBIA)

The former Naval Air station was transformed into a modern international airport with a 10,000 sq.m. passenger terminal. The airport currently houses FEDEX 1, the Asian distribution hub of Federal Express.

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INDEPENDENT AND RELIABLE SERVICESINDEPENDENT AND RELIABLE SERVICES

Potable Water Supply Efficient Waste Management System

100,000-line Capacity

Telecom Facilities

Stable Power Supply

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Other ServicesOther Services

MEDICAL & HEALTH SERVICES

TRANSPORTATION SERVICES

EUCHARISTIC SERVICES

COURIER SERVICES

BANKS

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24-Hour Security24-Hour Security

Monitored movements at all SBMA gates through 24-hours Close Circuit TV monitor

911 Emergency Hotline for Fire, Medical & Rescue Operations

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SBF Tax and Duty Free IncentivesSBF Tax and Duty Free Incentives

Exemption from all local & national taxes with only a 5% corporate tax on gross income

Duty free importation

Unrestricted entry of foreign investments

No foreign exchange control

Visas available to foreign nationals

Expanded allowable Deduction and Higher Percentage of Income Allowable from Sources within the Customs Territory for Regional Enterprises

Qualified industries may also benefit from a 4-6 year income tax holiday

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INVESTOR PROFILE

Number of Subic Bay Freeport Registered Enterprises, as of May 2006by Industry

Number of Subic Bay Freeport Registered Enterprises, as of May 2006by Nationality

NationalityNationalityInvestments Investments

(in US$)(in US$)Number of CompaniesNumber of Companies

Korean1,005,336,354.4

223

Filipino 630,463,532.12 369

Japanese 224,893,918.56 29

American 451,863,556 21

Taiwanese 177,128,990 44

British 41,830,464 12

Swiss 2,360,000 2

Singaporean 452,000 3

HongKong 260,000 1

Dutch 32,163 1

*Others 663,679,334 79

TOTAL (operational) 584

*Malaysian, Chinese, Australian, French, Danish, Finnish, German, Norwegian, Pakistani, Swedish, Austrian, Mixed

Trading, Warehousing, Trading, Warehousing, TransshipmentTransshipment

ServicesServices

TourismTourism

MfgMfg

Port RelatedPort Related

RetailingRetailing

InstitutionsInstitutions

Estate Dev't & Mgmt.Estate Dev't & Mgmt.

UtilitiesUtilities

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 Y1199

INVESTMENT PERFORMANCEINVESTMENT PERFORMANCENumber of Approved InvestmentsJan 2001 – June 2006 (cumulative)

Committed InvestmentsJan 2001 – June 2006 (cumulative)

318

398

489

571

638

686

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005 Jun-06

2,126 2,208 2,249 2,313 2,341

3,851

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2001 2002 2003 2004 2005 Jun-06

In U

S $

Mil

lio

ns

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HANJIN UPDATES AS OF JUNE 23, 2006• Over all progress development - 3%• Current number of workers - 1, 400• Ongoing Construction: Board Access / Temporary Office / Batching Plant / Crusher Plant

Boarding House / Shelter / Dry-dock / Earthwork

HANJIN HEAVY INDUSTRIES

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HEBEI XINGTAI JINGNIU (Crystal Bull) Company, Ltd.

• 32 ha. Glass Manufacting in Maritan Hill, Subic Bay Freeport Zone• Projected Investment of US$ 312 million• Projected Employment: 2,000 direct and indirect jobs

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Total number of active workforceJan 2001 – June 2006 (cumulative) 勞動力就業人數

By Sector

Year Manufacturing Services Construction

2001 14,244 20,207 11,291

2002 17,912 22,726 8,236

2003 16,956 32,387 4,843

2004 18,636 33,868 3,371

2005 17,246 36,535 5,983

2006 18,444 36,549 6,765

EMPLOYMENT GENERATION

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Central BusinessCentral BusinessDistrictDistrict

Investment Sites in Subic Bay Freeport Zone

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CENTRAL BUSINESS DISTRICT

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COMMERCIAL COMMERCIAL LOTLOT

25,416 SQ.M.25,416 SQ.M.

COMMERCIAL COMMERCIAL LOTLOT

1,100 SQ.M.1,100 SQ.M.

COMMERCIAL COMMERCIAL LOTLOT

1,100 SQ.M.1,100 SQ.M.

COMMERCIAL COMMERCIAL LOTLOT

2,576 SQ.M.2,576 SQ.M.

COMMERCIAL COMMERCIAL LOTLOT

4,000 SQ.M.4,000 SQ.M.

COMMERCIAL COMMERCIAL LOTLOT

1,600 SQ.M.1,600 SQ.M.

Current Central Business District

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

Existing Subic Bay Industrial Parks

STEPSTEP

MARITANMARITAN

SBIP ISBIP I

CompaniesCompanies Total Area Total Area Available Available

AreaArea

SBIP ISBIP I 2828 114 ha114 ha 3 ha3 ha

SBIP IISBIP II 1515 45 ha45 ha 0 ha0 ha

STEPSTEP 1010 60 ha60 ha 13 ha13 ha

TIPOTIPO 00 100 ha100 ha 100 ha100 ha

MARITANMARITAN 00 30 ha30 ha 30 ha30 ha

TotalTotal 324324 134134

SBIP IISBIP II

TIPOTIPO

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Investment Sites in Subic Bay Freeport Zone

Subic Gateway Subic Gateway District: District: The New The New

Commercial AreaCommercial Area

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SBIP PHASE 1

WISTRONSBIP

PROPOSED COMMERCIAL

AREA

SBIP PHASE 2

PROPOSED ROTONDA

TO MANILA

TO AIRPORT

TO CBD

NSD

ROYAL COMMERCIAL AREA

SBIP PHASE 2

SBIP PHASE 2

SBDMC

PROPOSED COMMERCIAL MALL& CONVENTION CENTER

SUBIC GATEWAY DISTRICT

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SBIP 1&2SBIP 1&2

STEPSTEP

Investment Sites in Subic Bay Freeport Zone

INDUSTRIAL AREAS

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Investment Sites in Subic Bay Freeport Zone

FUTURE LIGHT INDUSTRIAL AREA

TIPOTIPO

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Future Software Development Park

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Future Software Development Park

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Investment Sites in Subic Bay Freeport Zone

FUTURE FUTURE LOGISTICS HUBLOGISTICS HUB

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Future Logistics Hub

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Actual ProgressAs of May 2006: 66.49%

AIRPORTAIRPORT

NAVAL SUPPLY NAVAL SUPPLY DEPOTDEPOT

BULK GRAIN TERMINAL

BULK GRAIN TERMINAL

BULK FERTILIZER TERMINAL

BULK FERTILIZER TERMINAL

CRUISE SHIP TERMINAL + ADMINISTRATION BUILDINGCRUISE SHIP TERMINAL +

ADMINISTRATION BUILDING

PIER LOCATIONSPIER LOCATIONSExcluding Camayan Excluding Camayan Pier and Nabasan Pier Pier and Nabasan Pier at Naval magazine Areaat Naval magazine Area

LEYTE PIERLEYTE PIER

BOTON WHARFBOTON WHARF

ALAVA ALAVA PIERPIER

Subic Port Development Project

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THE NEW TOURISM AREA

Investment Sites in Subic Bay Freeport Zone

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Hidden Beach Area

Site Area: 1.32 hectares A Core Ecological Zone of the Subic Bay

Protected Area Contains the most abundant marine life in the

whole Subic Bay Other Areas:

• EOD Site/ Camayan Point – 2.34 hectares

• Firing Range – 2.99 hectares

The two areas are within the Subic Watershed and Forest Reserve.

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GRANDE ISLAND

Site Area: approx. 44 hectares

Facilities: 20 quadruplet chalets

2-hectare Inland Beach Lagoon

Plenary Hall

2-storey hotel (15 rooms)

2-storey restaurant

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The Freeport is a self-contained urban center with world-class services

Major infrastructure & features

Tourist attractions & facilities

Independent & reliable services

Other services

Seaport & airport Business district Round-the-clock

security & emergency facilities

Theme parks Culture & history Natural attractions Entertainment Sports & adventure Sun, sea & sand Wellness outlets MICE venues Shopping & dining

Potable water supply Efficient waste

management system 100,000-line capacity

telecom facilities Stable power supply

Medical & health services

Transportation services Eucharistic services Courier services Banks Educational

institutions

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Tourist Attractions & Activities Tourist Attractions & Activities

Culture and History: Our native Aetas, historical landmarks like the Spanish Gate, US ammunition bunkers, among others

Theme Parks: Ocean Adventure and Zoobic Safari

Natural Attractions: Pamulaklakin Trails, JEST Camp, Apaliin Trails, Triboa Mangrove Park, among others

Entertainment: Cinema, Nightlife, Events and Casinos

Sports and Adventure:Firing Range, Basketball Gym, Tennis Center, Track Oval, Watersports, Go Kart, Horseback Riding, Parasailing, Slide for Life, Golf, Airsoft/Paintball

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Tourist Attractions & Activities Tourist Attractions & Activities

Sun, Sea and Sand: Camayan Beach, All Hands Beach, Grande Island, Nabasan Beach, Dungaree Beach

Wellness Tourism: Ritz Spa, Larossa Spa, Sabay Spa, Slimmers World, Tonton Thai Massage, among others

MICE / Conference Facilities: Subic Bay Arts Center, Legenda’s El Centro, among others

Shopping and Dining: Royal Subic, Pure Gold, Freeport Exchange, Aresi Restaurant, Xtremely Xpresso, Pier One, Gerry’s Grill, among others

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Accommodation Type Rooms Capacity

2020 HotelsHotels 1,2171,217 3,322 pax3,322 pax

224224 Housing unitsHousing units 686686 1,6501,650

2222 Quonset DormitoriesQuonset Dormitories 4444 732732

TotalTotal 1,9471,947 57045704

Tourist Attractions & ActivitiesTourist Attractions & Activities

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Retirement Villages

SUBIC HOLIDAY VILLASSUBIC HOLIDAY VILLAS 124 Rooms124 Rooms

POCO A POCO CONDOMINIUM POCO A POCO CONDOMINIUM HOTELHOTEL

30 Units30 Units

SUBIC HEIGHTSSUBIC HEIGHTS 30 Units30 Units

TROPICAL PARADISE RETIREMENT TROPICAL PARADISE RETIREMENT VILLAGEVILLAGE

22 Units22 Units

SUBIC BAY EDEN’S LIFESTYLE SUBIC BAY EDEN’S LIFESTYLE CENTERCENTER

10 Units10 Units

Retirement FacilitiesRetirement Facilities

Within 10-15 minutes drive from Central Business District, Within 10-15 minutes drive from Central Business District, restaurants, duty-free shops, banks & other community restaurants, duty-free shops, banks & other community amenitiesamenities

Traditional & alternative medical services & facilities, Traditional & alternative medical services & facilities, private gyms/health clubs & spas availableprivate gyms/health clubs & spas available

Adequate ICT facilities to keep residents and visitors wired Adequate ICT facilities to keep residents and visitors wired with the rest of the worldwith the rest of the world

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