FIR FIRST QU ST QUAR ARTER TER 20 2019 19 FINANCIA FIN ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING 02 02 MAY 20 2019 19 1
TABLE OF CONTENTS Consolidated Financial Highlights Page 3 Stand-alone Portfolio Company Results and Key Page 14 Metrics POWER POWER Financial Highlights 4 MERALCO 1Q 2019 Highlights and Key Metrics 15 Expansion Updates 5 GBPC 1Q 2019 Highlights and Key Metrics 16 TOLL ROADS TOLL ROADS Financial Highlights 6 MPTC 1Q 2019 Highlights 17 Expansion Updates 7 Key Metrics and Priorities 18 WATER WATER Financial Highlights 8 Maynilad 1Q 2019 Highlights and Key Metrics 19 Metropac Water 9 HOSPITALS HOSPITALS MPHHI 1Q 2019 Highlights and Key Metrics 20 Financial Highlights 10 RAIL RAIL, LOGISTICS AND OTHERS LRMC 1Q 2019 Highlights and Key Metrics 21 Financial Highlights 11 Quarterly Highlights 22 Regulatory Matters 12 Statements of Financial Position 25 2
1Q 2019 CORE INCOME AT PAR WITH 1Q 2018 Strong growth in operating income absorbs rising finance costs from increased investment CONSOLIDATED FINANCIAL HIGHLIGHTS 1Q 2019 1Q 2018 % Change In Millions of Pesos YTD MPIC share • Power distribution in Luzon ↑ 2% Power 2,690 2,448 10% • Power sold in Visayas ↑ 8% Toll Roads 1,113 1,099 1% • Domestic toll road traffic ↑ 8% Water 902 802 12% Hospitals • Water sold in West Metro Manila ↑ 242 190 27% 2% Light Rail 123 91 35% • Hospital group census ↑ 10% Others (116) (56) 107% 8% increase in Operating Income was driven by: Share of operating income 4,954 4,574 8% Head office expenses (311) (238) 31% Substantial Core Income growth from Interest expense (983) (690) 42% MERALCO Core income 3,660 3,646 0% Continuing volume growth coupled with Non-core income (expense) (118) 172 -169% inflation-linked and basic tariff increases in Reported income 3,542 3,818 -7% Maynilad In Centavos Strong patient census from hospitals Diluted EPS on core income 11.60 11.56 0% 1Q 2018 Head Office Expenses benefitted from the Train Law. Full-year 2019 outlook should be no more EARNINGS CONTRIBUTION MIX than 10% vs 2018 actual head office expense. Hospitals and Others Increase in interest expense is due to loan drawdowns Hospitals and Others 5% 5% amounting to P21.4 billion in FY 2018 (proceeds were Water Water used to fund various investments of the group). 18% Toll Roads 18% Toll Roads Weighted average interest rate as at 31 March 2019 is 23% 24% 6.6% and weighted average debt maturity is 7.5 years Power Power Non- Core Expense amounted to ₱118 million and is 54% 53% largely related to refinancing costs, share issuance 1Q 2019 1Q 2018 costs, various project expenses and the net effect of a 3 weaker peso
CONTRIB CONTRIBUTIO TION N UP BY UP BY 10 10% T % TO O P2.7B 2.7B POWER Driv iven by y st strong result sults s at MERAL ERALCO CO In Millions of Pesos 10% increase in contribution from the Power business was CONTRIBUTION TO MPIC 1Q 2019 1Q 2018 % driven by: MERALCO (45.5%) 2,545 2,236 14% MERALCO GBPC (62.4%) 443 248 -44% Beacon/FV and accounting adj. (231) (103) -55% 2% growth in energy sales on slightly lower tariffs 2,690 2,448 10% Lower interest expense from lower debt balance and a higher yield from cash placements STAND-ALONE PERFORMANCE 1Q 2019 1Q 2018 % MERALCO Financial Highlights Offset by: Revenues 75,378 70,807 6% Core EBITDA 8,828 8,688 2% GLOBAL BUSINESS POWER CORPORATION Core income 5,598 4,917 14% 8% decrease in energy sales due to scheduled plant Reported income 5,671 5,312 7% maintenance in 1Q 2019 Capital expenditure 4,339 3,034 43% Key Performance Indicators Start of depreciation and interest costs from Panay Energy Development Corporation’s 150 MW plant from 1 June 2018 Energy sales (in GWh) 10,145 10,381 2% GLOBAL BUSINESS POWER CORPORATION (GBPC) Financial Highlights Revenues 5,774 6,335 -9% Core EBITDA 2,043 2,304 -11% Core income 398 710 -44% Reported income 292 729 -60% Capital expenditure 71 230 -69% Key Performance Indicators Energy sales (in GWh) 1,061 1,149 -8% 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 ● 105 MW Expansion Plant, Saranggani – expected to ● Target completion by 3Q 2019 commence operations in 2H 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 net of energy ● Granted original proponent status – no comparable proposals were submitted during Swiss Challenge ● Notice of Award expected to be received in 2H 2019 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 equivalent of clean energy for Dole and reduce its CO 2 emission by 100,000 tons/year 5 ● Target completion of facilities by 2Q 2020
CON CONTRIB TRIBUTIO TION N UP UP BY BY 1% % TO O P1.1B .1B TOLL ROADS Co Continu inuing ing t traffic fic growth in P in Phil ilipp ippine ine t toll ll roads In Millions of Pesos 1% increase in contribution from the Toll Roads 1Q 2019 1Q 2018 CONTRIBUTION TO MPIC % business was driven by: Metro Pacific Tollways (99.9%) 1,120 1,106 1% Fair value adjustments (7) (7) 0% Revenue growth from strong traffic growth on all 1,113 1,099 1% domestic roads STAND-ALONE PERFORMANCE 1Q 2019 1Q 2018 % ● Additional traffic from NLEX Harbor Link METRO PACIFIC TOLLWAYS CORPORATION Segment 10 which was opened on 28 February Financial Highlights 2019 – has since served over 100,000 vehicles; Revenues 4,243 3,587 18% average of 7,000 daily vehicles Core EBITDA 2,866 2,497 15% Core income 1,121 1,108 1% ● Increase in CAVITEX traffic driven by growth in Reported income 1,028 1,072 -4% residential communities in Cavite and increasing Capital expenditure 4,176 831 402% tourism in Batangas Key Performance Indicators Average Daily Vehicle Entries Offset by: NLEX 265,225 250,989 6% CAVITEX 159,933 146,159 9% Higher interest costs from funding for new projects SCTEX 68,805 59,812 15% DMT / CII / NUS 418,507 445,530 -6% 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 92% NLEX Harbour Link 2.60 6.7 2019 Ongoing construction (Radial Road 10) N/A NLEX Lane Widening N/A 2.1 2020 Ongoing finalization on the (Phase 2) procurement of contractor CAVITEX Segment 4 Extension 1.23 1.52 2021 85% Ongoing pre-construction activities 70% CAVITEX - C5 South Link 7.70 12.65 2021 Seg. 3A Ph.1 - Ongoing construction NLEX Citi Link 11.50 15.00 2024 0% Ongoing ROW acquisition NEW ROAD PROJECTS AWARDED 2021 Section 1: 51%; NLEX-SLEX Connector Road 8.00 23.30 Ongoing pre-construction activities Section 2: 74% and ROW acquisition Cebu Cordova Link 8.50 26.60 2021 100% Ongoing construction Expressway Cavite Laguna 44.67 16.54 2022 47% Laguna segment - Ongoing Expressway construction TOTAL 84.20 104.41 Unsolicited Proposal - Cavite Tagaytay Batangas Expressway (50.4 km, P25.0 billion project cost) o Granted Original Proponent Status o Awaiting clearance from NEDA to proceed with Swiss challenge 7
WATER CONTRIB CONTRIBUTIO TION N UP UP BY BY 12 12% T % TO O P90 902M 2M Volume lume g growth and tarif iff inc increases ses In Millions of Pesos CONTRIBUTION TO MPIC 1Q 2019 1Q 2018 % 12% increase in contribution from the Water Maynilad (52.8%) 961 859 12% business was driven by: Fair value adjustments (49) (49) 0% MAYNILAD WATER SERVICES, INC. Metropac Water Investments Corp. (10) (8) 25% 902 802 12% 2% volume growth STAND-ALONE PERFORMANCE 1Q 2019 1Q 2018 % Tariff increases MAYNILAD WATER SERVICES INC. ● Inflation-linked: 5.7% in January 2019 Financial Highlights ● Basic: 2.7% in October 2018 Revenues 5,686 5,246 8% Core EBITDA 3,797 3,416 11% Core income 1,821 1,628 12% Reported income 1,819 35% 1,350 Capital expenditure 2,401 -19% 2,948 Key Performance Indicators Billed volume (In MCM) 127 129 2% *Non-revenue water % - average 32.5% 28.0% -14% *Non-revenue water % - period end 30.5% 26.3% -14% *Measured at the District Metered Area level 8
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