NINE NINE MONTH MONTHS S 20 2018 18 FIN FINANCIA ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING 07 07 NO NOVEMBER EMBER 20 2018 18 1
TABLE OF CONTENTS Consolidated Financial Highlights Page 3 Stand-alone Portfolio Company Results and Key Page Metrics 14 POWER POWER Financial Highlights 4 MERALCO 9M 2018 Highlights and Key Metrics 15 Expansion Updates 5 GBPC 9M 2018 Highlights and Key Metrics 16 TOLLROADS TOLLROADS Financial Highlights 6 MPTC 9M 2018 Highlights 17 Expansion Updates 7 Key Metrics and Priorities 18 WATER WATER 9 Financial Highlights Maynilad 9M 2018 Highlights and Key Metrics 19 Metropac Water 10 HOSPITALS HOSPITALS MPHHI 9M 2018 Highlights and Key Metrics 20 Financial Highlights 11 RAIL RAIL, LOGISTICS AND OTHERS LRMC 9M 2018 Highlights and Key Metrics 21 Financial Highlights 12 Quarterly Highlights 22 Regulatory Matters 13 Balance Sheet 25 2
9M 2018 CORE INCOME UP 8% TO P12.2B Earnings driven by strong volume growth across the portfolio and increased investment in the power sector CONSOLIDATED FINANCIAL HIGHLIGHTS 9M 2018 9M 2017 % Change In Millions of Pesos YTD 3Q MPIC share • Power distribution in Luzon ↑ ↑ 5% 2% Power 8,503 7,573 12% • Power sold in Visayas ↑ ↓ 12% 5% Toll Roads 3,256 2,996 9% • Domestic toll road traffic ↑ ↑ 7% 4% Water 3,047 2,801 9% Hospitals • Water sold in West Metro Manila ↑ ↑ 586 518 13% 3% 2% Rail 299 210 42% • Hospital group census ↑ ↑ 11% 9% Others (273) (37) 638% MPIC Group Aggregated Revenues (1) grew by 8% from Share of operating income 15,418 14,061 10% P280.3 billion to P302.9 billion Head office expenses (839) (860) -2% 8% increase in Core Income was driven by: Interest expense (2,388) (1,871) 28% Core income 12,191 11,330 8% Expanded Power portfolio through increased investment in Beacon Electric Asset Holdings Inc. in 2017 Non-core income (expense) 297 (202) -247% Reported income 12,488 11,128 12% Robust traffic growth on all domestic roads In Centavos Steady volume growth coupled with inflation-linked tariff Diluted EPS on core income 38.62 35.90 8% increase in Maynilad Increase in interest expense is due to a) loan drawdowns EARNINGS CONTRIBUTION MIX amounting to P15.4 billion in 9M 2018 (proceeds were used to fund various investments of the group); and b) interest accretion Hospitals and 9M 2018 9M 2017 Hospitals Others on payable to PCEV for the additional stake in Beacon and Others 5% 4% Water Water Non-core income in 9M 2018 driven mainly by foreign exchange Toll Roads 20% Toll Roads 20% 21% gains at MERALCO 21% 3Q18 vs 3Q17 flat on slower volumes and rising finance cost on Power new investments Power 54% 55% (1) Aggregated revenues include revenues of equity-accounted investees 3
CONTRIB CONTRIBUTIO TION N UP BY UP BY 12 12% T % TO O P8.5B 8.5B POWER De Deepened participa icipation ion in t in the Phil Philipp ippine ine Power sec sector In Millions of Pesos 12% increase in contribution from the Power business was CONTRIBUTION TO MPIC 9M 2018 9M 2017 % driven by: MERALCO (from 41.2% to 45.5%) 6,559 7,586 16% MERALCO GBPC (from 47.8% to 62.4%)* 1,126 1,184 5% Beacon**/FV and accounting adj. (112) (267) 138% Increase in effective ownership from 41.2% to 45.5% 8,503 7,573 12% 5% growth in energy sales STAND-ALONE PERFORMANCE 9M 2018 9M 2017 % MERALCO GLOBAL BUSINESS POWER CORPORATION Financial Highlights Revenues 227,411 214,389 6% Increase in effective ownership from 47.8% to 62.4% Core EBITDA 26,565 26,268 1% 12% growth in energy sales Core income 16,686 15,370 9% Reported income 18,212 15,928 14% Offset by: Capital expenditure 10,111 8,076 25% o Lower margins Key Performance Indicators Energy sales (in GWh) 31,401 32,921 5% o Planned maintenance shutdown of Unit 2 of PEDC and Unit 3 of CEDC GLOBAL BUSINESS POWER CORPORATION (GBPC) o Higher interest and depreciation following full Financial Highlights Commercial Acceptance of PEDC3 on 31 May 2018 Revenues 20,172 17,227 17% Core EBITDA 6,779 6,979 -3% Core income 1,899 2,079 -9% Reported income 1,916 2,034 -6% Capital expenditure 452 1,141 -60% Key Performance Indicators Energy sales (in GWh) 3,656 3,278 12% *Effective interest in GBPC as of 27 May 2016 was 48%; stepped-up to 62% beginning 27 June 2017 **Increased economic interest from 50% to 75% in May 2016, increased further to 100% in June 2017 4
POWER EXP EXPANSIO ANSION N UPD UPDATE TES MERALCO 1x455MW (net) San Buenaventura Power, Quezon (Target completion in 2019) ● Ongoing construction proceeding as scheduled – 94% EPC overall work progress as of September 2018 ● Commercial operation due in 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 ● Registered as Preferred Pioneer Enterprise by the Board of Investments (BOI) ● Examining feasibility of 600MW on a merchant basis if no PSA GLOBAL BUSINESS POWER CORPORATION Alsons Thermal Energy Corporation ● 105 MW Expansion Plant, Saranggani – on track to commence operations in 2019 METROPAC CLEAN ENERGY Quezon City Waste to Energy Project (P15.3 billion project cost for Phase 1) ● Aims to convert approximately 2,300 tons of waste to 35 MW of energy ● Granted original proponent status ● Ongoing Swiss Challenge; target bid deadline January 2019 5
CONTRIBUTIO CONTRIB TION N UP BY UP BY 9% % TO O P3.3B 3.3B TOLL ROADS Robust st traffic fic growth In Millions of Pesos 9M 2018 9M 2017 CONTRIBUTION TO MPIC % 9% increase in contribution from the Toll Roads Metro Pacific Tollways (99.9%) 3,273 3,020 8% business was driven by: Fair value adjustments (17) (24) -29% 3,256 2,996 9% Strong traffic growth on all domestic roads o Growth in NLEX and SCTEX was a result of the STAND-ALONE PERFORMANCE 9M 2018 9M 2017 % integration of these two roads and the opening of METRO PACIFIC TOLLWAYS CORPORATION additional lanes in 2017 Financial Highlights Revenues 11,251 9,605 17% o Increase in CAVITEX traffic driven by growth in Core EBITDA 7,778 6,259 24% residential communities in Cavite and tourism in Core income 3,277 3,024 8% Batangas Reported income 3,312 4,507 -27% Capital expenditure 6,748 3,988 69% o 55% increase in system-wide average daily vehicles Key Performance Indicators entries to 916,169 due mainly to the traffic contribution Average Daily Vehicle Entries of PT Nusantara NLEX 250,992 233,332 8% CAVITEX 143,907 137,627 5% 11% increase in NLEX Closed System toll rate per SCTEX 61,071 53,407 14% kilometer implemented in November 2017 DMT / CII / NUS 444,535 150,536 195% 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 99% NLEX Harbour Link 5.8 10.5 2018 Ongoing construction (Segment 10) N/A NLEX Lane Widening N/A 2.1 2020 Ongoing procurement of contractor (Phase 2) 92% NLEX Harbour Link 2.6 6.7 2019 Ongoing construction (Radial Road 10) CAVITEX Segment 4 Extension 1.2 1.2 2021 85% Ongoing pre-construction activities 75% CAVITEX - C5 South Link 7.7 12.7 2021 Seg. 3A Ph.1 - Ongoing construction NEW ROAD PROJECTS AWARDED NLEX-SLEX Connector Road 8.0 23.3 2021 59% Ongoing ROW acquisition Cebu Cordova Link 8.5 26.6 2021 100% Ongoing construction Expressway Cavite Laguna 45.4 16.6 2021 40% Laguna segment - Ongoing Expressway construction TOTAL 79.2 99.7 Unsolicited Proposal - Cavite Tagaytay Batangas Expressway (50.4 km, P25.0 billion project cost) o Granted Original Proponent Status by DPWH 7
TOLL ROADS EXP EXPANSIO ANSION N UPD UPDATE TES REGIONAL INVESTMENTS INDONESIA – PT NUSANTARA INFRASTRUCTURE • Increased stake to 77.94% on a fully-diluted basis as a result of General Offer • 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 o Bid submission in 4Q 2018 VIETNAM – CII Bridges & Roads • Hanoi Highway Expansion (15.7 km) o Project Cost: P5.4 Billion o Phase 1 – began operations in 4Q 2018 o Phase 2 – target completion in 2021 • Rach Mieu 2 (22.4 km) o Project Cost: P3.7 Billion o Target completion in 2019 8
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