FULL FULL YEAR YEAR 20 2018 18 FIN FINANCIA ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING 05 05 Mar arch h 20 2019 19 1
TABLE OF CONTENTS Consolidated Financial Highlights Page Stand-alone Portfolio Company Results and Page 3 Key Metrics 15 POWER POWER Financial Highlights 4 MERALCO FY 2018 Highlights and Key 16 Metrics Expansion Updates 5 GBPC FY 2018 Highlights and Key Metrics 17 TOLL ROADS TOLL ROADS Financial Highlights 6 MPTC FY 2018 Highlights 18 Expansion Updates 7 Key Metrics and Priorities 19 WATER WATER Financial Highlights 9 Maynilad FY 2018 Highlights and Key 20 Metropac Water 10 Metrics HOSPITALS HOSPITALS Financial Highlights 11 MPHHI FY 2018 Highlights and Key Metrics 21 RAIL, LOGISTICS AND OTHERS RAIL Financial Highlights 12 LRMC FY 2018 Highlights and Key Metrics 22 Regulatory Matters 13 Quarterly Highlights 23 Statements of Financial Position 26 2
FY 2018 CORE INCOME UP 7% TO P15.1B Earnings driven by strong volume growth across the portfolio and increased investment in the power sector CONSOLIDATED FINANCIAL HIGHLIGHTS In Millions of Pesos 2018 2017 % Change YTD 4Q MPIC share • Power distribution in Luzon ↑ ↑ 5% 6% Power 10,823 9,378 15% • Power sold in Visayas ↑ ↓ 8% 2% Toll Roads 4,423 3,901 13% • Domestic toll road traffic ↑ ↑ 7% 7% Water 3,794 3,733 2% Hospitals 771 685 13% • Water sold in West Metro Manila ↑ ↑ 3% 4% Rail 394 283 39% • Hospital group census ↑ 8% 0% Others (642) (133) 383% 7% increase in Core Income was driven by: Share of operating income 19,563 17,847 10% Head office expenses (1,133) (1,074) 5% Expanded Power portfolio through increased Interest expense (3,370) (2,669) 26% investment in Beacon Electric Asset Holdings Inc. Core income 15,060 14,104 7% in 2017 Non-core expense (930) (953) -2% Continuing traffic growth on all domestic roads Reported income 14,130 13,151 7% Steady volume growth coupled with inflation- In Centavos linked tariff increase in Maynilad Diluted EPS on core income 47.71 44.69 7% Increase in interest expense is due to a) loan drawdowns Final dividend per share* 7.60 7.60 0% amounting to P21.4 billion in FY 2018 (proceeds were used to fund various investments of the group); and b) EARNINGS CONTRIBUTION MIX interest accretion on payable to PCEV for the additional Hospitals and Hospitals and stake in Beacon Others Others 3% 5% Non- core expense amounted to ₱930 million primarily due Water Water 19% 21% Toll Roads Toll Roads to the net effect of a weaker peso, project write-downs, 23% 22% loan refinancing and provisions for asset impairment Power Power * Final dividend per share kept fixed given current level of 55% 52% 2018 2017 CAPEX funding requirements 3
CONTRIB CONTRIBUTIO TION N UP BY UP BY 15 15% T % TO O P10 10.8B .8B POWER De Deepened participa icipation ion in t in the Phil Philipp ippine ine Power sec sector In Millions of Pesos CONTRIBUTION TO MPIC 2018 2017 % 15% increase in contribution from the Power business was driven by: MERALCO (45.5%) 8,761 10,188 16% GBPC (from 47.8% to 62.4%)* 1,627 1,533 -6% MERALCO Beacon**/FV and accounting adj. (1,010) (898) -11% 5% growth in energy sales 10,823 9,378 15% Full year impact of increased ownership in MERALCO to STAND-ALONE PERFORMANCE 2018 2017 % 45.5% MERALCO Financial Highlights Revenues 304,454 282,556 8% GLOBAL BUSINESS POWER CORPORATION Core EBITDA 37,351 34,638 8% Increase in effective ownership from 47.8% to 62.4% Core income 22,408 20,213 11% Reported income 23,017 20,384 13% 8% growth in energy sales Capital expenditure 13,669 12,127 13% Key Performance Indicators Energy sales (in GWh) 42,102 44,313 5% Offset by: Higher depreciation and interest costs for PEDC3 starting GLOBAL BUSINESS POWER CORPORATION (GBPC) June 2018 Financial Highlights Revenues 26,822 23,794 13% Lower margins from WESM sales due to higher coal and fuel Core EBITDA 9,159 9,184 0% costs Core income 2,458 2,883 -15% Reported income 2,431 2,808 -13% Capital expenditure 514 1,374 -63% Key Performance Indicators Energy sales (in GWh) 4,822 4,466 8% *Effective interest in GBPC stepped-up to 62% beginning 27 June 2017 **Increased economic interest in Beacon to 75% in May 2016, increased further to 100% in June 2017 4
POWER EXP EXPANSIO ANSION N UPD UPDATE TES MERALCO GLOBAL BUSINESS POWER CORPORATION 1x455MW (net) San Buenaventura Power, Quezon Alsons Thermal Energy Corporation ● Ongoing construction proceeding as scheduled – 97.38% EPC ● 105 MW Expansion Plant, Saranggani – on track to overall work progress as of December 2018 commence operations in 2019 ● Target completion by third quarter of 2019 ● Capacity is contracted under ERC-approved power supply agreement with MERALCO 2x600MW (net) Atimonan One Energy, Quezon ● Committed project with DOE, with Certificate of Energy Project of National Significance ● Awaiting approval of power supply agreement – necessary for the issuance of “Notice to Proceed” for the engineering, procurement and construction ● Entire capacity is contracted by MERALCO ENERGY FROM WASTE Quezon City Waste to Energy Project (P15.3 billion project cost for Phase 1) ● Aims to convert approximately 3,000 tons of waste to 36 MW of energy ● Granted original proponent status ● Notice of Award expected to be received within 1H2019 Biogas – Dole Project (P1.0 billion project cost) ● Aims to derive biogas from the anerobic digestion of fruit waste to supply a portion of the diesel and power requirements of Dole’s canneries located in South Cotabato ● Target to generate 5.7 MW of clean energy for Dole and reduce its CO 2 emission by 100,000/year ● Facilities will be completed by first quarter of 2020 5
CONTRIB CONTRIBUTIO TION N UP BY UP BY 13 13% T % TO O TOLL ROADS P4.4B 4.4B Co Continu inuing ing t traffic fic growth In Millions of Pesos 2018 2017 13% increase in contribution from the Toll Roads CONTRIBUTION TO MPIC % Metro Pacific Tollways (99.9%) business was driven by: 4,445 3,931 13% Fair value adjustments (22) (30) -27% Strong traffic growth on all domestic roads 4,423 3,901 13% ● Growth in NLEX and SCTEX was a result of the STAND-ALONE PERFORMANCE 2018 2017 % integration of these two roads and the opening of METRO PACIFIC TOLLWAYS CORPORATION additional lanes in 2017 Financial Highlights ● Revenues 15,486 13,107 18% Increase in CAVITEX traffic driven by growth in Core EBITDA residential communities in Cavite and tourism in 10,474 8,607 22% Core income Batangas 4,450 3,935 13% Reported income 4,274 5,423 -21% ● System-wide average daily vehicles entries to 916,886 Capital expenditure 11,795 4,425 167% a day which includes road networks in the Philippines, Key Performance Indicators Indonesia, Thailand and Vietnam Average Daily Vehicle Entries NLEX 253,577 237,046 7% 11% increase in NLEX Closed System toll rate per CAVITEX 146,315 139,208 5% kilometer implemented in November 2017 SCTEX 62,684 54,566 15% DMT / CII / NUS 438,572 458,175 -4% 6
TOLL ROADS EXP EXPANSIO ANSION N UPD UPDATE TES PHILIPPINES PROJECTS UNDER CONSTRUCTION / DEVELOPMENT PROJECTS Length Construction Cost Target Right-of-way Status Completion Progress (In Km) (In P Billions) EXPANSIONS TO EXISTING ROADS 100% NLEX Harbour Link 5.8 10.5 2019 Completed. Began operations on 28 (Segment 10) February 2019 92% NLEX Harbour Link 2.6 6.7 2019 Ongoing construction (Radial Road 10) N/A NLEX Lane Widening N/A 2.1 2020 Ongoing procurement of contractor (Phase 2) CAVITEX Segment 4 Extension 1.2 1.2 2021 85% Ongoing pre-construction activities 97% CAVITEX - C5 South Link 7.7 12.7 2021 Seg. 3A Ph.1 - Ongoing construction NLEX Citi Link 11.5 15.0 2024 0% Ongoing ROW acquisition NEW ROAD PROJECTS AWARDED 63% NLEX-SLEX Connector Road 8.0 23.3 2021 Ongoing pre-construction activities Cebu Cordova Link 8.5 26.6 2021 100% Ongoing construction Expressway Cavite Laguna 45.4 16.5 2022 40% Laguna segment - Ongoing Expressway construction TOTAL 90.7 114.6 Unsolicited Proposal - Cavite Tagaytay Batangas Expressway (50.4 km, P25.0 billion project cost) o DPWH endorsed the Unsolicited Proposal to NEDA in January 2019 o Ongoing review with NEDA 7
TOLL ROADS EXP EXPANSIO ANSION N UPD UPDATE TES REGIONAL INVESTMENTS INDONESIA – PT NUSANTARA INFRASTRUCTURE • Increased stake to 74.24% based on issued capital stock of PT Nusantara on a fully- diluted basis as a result of General Offer and participation in Rights Issue • Pettarani Toll Road Project (4.4 km) o Project Cost: P8.4 Billion o Target completion in 2020 THAILAND – DON MUANG TOLLWAYS • Seeking new operations and maintenance projects from Thailand Department of Highways VIETNAM – CII Bridges & Roads • Hanoi Highway Expansion (15.7 km) o Project Cost: P5.4 Billion o Phase 1 – began operations in 4Q 2018; toll collection to start 3Q 2019 o Phase 2 – target completion in 2020 • Rach Mieu 2 (22.4 km) o Project Cost: P3.7 Billion o Target completion in 2019 8
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