EDC COMPANY PRESENTATION NDR LONDON, UK - FEBRUARY 2015 DISCLAIMER - PowerPoint PPT Presentation

EDC COMPANY PRESENTATION NDR LONDON, UK - FEBRUARY 2015

DISCLAIMER This presentation contains certain “forward looking statements. ” These forward looking statements include words or phrases such as EDC or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly, statements that describe EDC’s objectives, plans or goals also are forward-looking statements. All such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. EDC does not make expressed or implied representations or warranties as to the accuracy and completeness of the information contained herein and shall not accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice. This presentation does not constitute a prospectus or other offering memorandum in whole or in part. Information contained in this presentation is a summary only and is prepared for discussion purposes and is not a complete record of the discussions. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any security. There shall be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such state or jurisdiction. By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved. Prospective investors should undertake their own assessment with regard to their investment and they should obtain independent advice on any such investment’s suitability, inherent risks and merits and any tax, legal and accounting implications which it may have for them.

EDC MANAGEMENT TEAM RICHARD B. TANTOCO President and Chief Operating Officer NESTOR H. VASAY Chief Financial Officer and Treasurer ERWIN O. AVANTE Vice President for Corporate Finance and Compliance Officer 5

KEY EVENTS AFFECTING THE PHILIPPINE ENERGY SECTOR • SECONDARY OFFER PRICE CAP OF PHP 6.245/KWH WHEN THE 168-HOUR Secondary WESM AVERAGE WESM PRICE EXCEEDS PHP9.000/KWH Price Cap • FIT TARIFF FOR SELECTED RENEWABLE ENERGY SOURCES FIT-ALL Provisional • FIT-ALL PROVISIONAL APPROVAL OF PHP 0.04057 PER KWH Approval 7 Philippine Power Industry

DEPARTMENT OF ENERGY FORECASTS ELECTRICITY SHORTAGE BY SUMMER OF 2015 DOE PROPOSED SEVERAL PLANS TO ADDRESS SHORTAGE DOE SUPPLY-DEMAND FORECAST MAR-JUN 2015 MW 10,500 INTERRUPTIBLE LOAD PROGRAM (ILP) 10,000 • Mandatory operation of end consumer gensets to unload the grid; 9,500 • Additional cost of running gensets will be 9,000 spread across electricity consumers; • Total of 685 MW of intending ILP 8,500 participants as of 1/20/2015. 8,000 300 MW PLANT/CONTRACT 7,500 • Plant purchase/lease of from PHP700 M to PHP2.8 B per 100 MW; 7,000 • CAPEX to be subsidized by Malampaya 6,500 funds. 6,000 W-9 W-10 W-11 W-12 W-13 W-14 W-15 W-16 W-17 W-18 W-19 W-20 W-21 W-22 W-23 W-24 W-25 FIT W-9 W-10 W-11 W-12 W-13 W-14 W-15 W-16 W-17 W-18 W-19 W-20 W-21 W-22 W-23 W-24 W-25 Mar Mar Mar Mar Mar Apr Apr Apr Apr May May May May Jun Jun Jun Jun Mar Mar Mar Mar Mar Apr Apr Apr Apr May May May May Jun Jun Jun Jun Available Capacity less FO Average FO • Increased FIT allocation for easy- to-set- Projeted Demand Regulating Reserve Req't up power plants like solar. NOTE: Data sourced from DOE Presentation 8 Philippine Power Industry

Growth Projects EDC SUCCESSFULLY DELIVERED ON ITS 2014 STRATEGIC OBJECTIVES Price Price 9.00 9.00 5 th Best Performing (PSEi) 8.50 8.50 Bloomberg 2 2014 High : 8.47 2015 EPS (est.) 0.675 8.00 8.00 2014 Low : 5.12 2016 EPS (est.) 0.732 2013 year-end : 5.33 3 7.50 7.50 2014 year-end : 8.20 % Change : 53.85% 7.00 7.00 6.50 6.50 6.00 6.00 1 5.50 5.50 5.00 5.00 4.50 4.50 49.4 MW Nasulo 130.0 MW 150.0 MW Burgos plant starts Bacman plants wind starts commissioning have returned to commissioning OUTPUT 382 GWH OUTPUT 968 GWH OUTPUT 326 GWH runs April 2014 service Nov. 5, 2014 REVENUES Php2.0 B REVENUES Php4.8 B REVENUES Php2.8 B EBITDA CONTRIBUTION OF GROWTH PROJECTS WILL DRIVE ROBUST 2015 FINANCIAL RESULTS 9 Key Investment Highlights

Growth Projects BURGOS WIND FARM WINS GLOBAL AWARD… Asia-Pacific Renewables Deal of the Year Burgos • the first wind farm project A landmark financing in the Philippines to transaction reach financial close being… • the first to be banked under the country’s new feed -in tariff regime Project • Energy Development Corporation Sponsor “Achieving financial close indicates growing confidence and an increasingly sophisticated view of the Philippine market by both international and local lenders” – Yearbook 2015 Project Finance International 10 Key Investment Highlights

Growth Projects EDC’S GROWTH AGENDA 2015 STATUS 2015 STATUS  305 MW Palinpinon- ACQUIRE DEVELOP 1 2  49.37 MW Nasulo Tongonan acquired in 2009 commissioned in Sept.  130 MW Bacman 2014 Win key acquired in 2010 Install 180MW • 6 MW NNGP Plant government • Bid for Unified Leyte of local geothermal development is on-going geothermal • IPPA in 2014 180 MW for capacity to address privatization projects  Bid for Mindanao 1 & 2 commissioning by 2018 new demand IPPA in 2014  Granted 5 concessions & DIVERSIFY CONQUER 3 4 19 pending applications  150 MW Burgos Wind in Chile & Peru Build 200MW commissioned in 4Q’14  Established local offices of wind Establish viable • Wind measurement in LatAm and Indonesia capacity, operations in studies is on-going in 9 • Drill wells in while other concessions Asia, Latin Mariposa, Chile by 2015 expanding • America, and Africa Potential 4MW solar • Continue to prospect RE portfolio prime geo sites 11 Key Investment Highlights

Growth Projects REPLICATING BACMAN’s RETROFIT PROGRAM INTO BOTH TONGONAN I AND PALINPINON I ... LIFE EXTENSION YIELDS ADDITIONAL BENEFITS Bacman Retrofit Program Efficiency Gains Electricity Production 10.00% Steam Consumption 9.75% 1 2 TURBINE Retrofit GENERATOR Retrofit 30 year old design with 30 year old design with associated reliability issues associated reliability issues Jan ‘15 3Q ‘16 2H ‘15 2017 Target COD for Target COD for Palinpinon retrofit Tongonan retrofit Tongonan Palinpinon kit order date kit order date EDC REALIZES EFFICIENCY GAINS WITH NEW TECHNOLOGY AND ACHIEVES LIFE EXTENSION FOR LEGACY POWER GENERATING ASSETS 12 Key Investment Highlights

Growth Projects LOCAL GEOTHERMAL PROJECTS WILL BE THE MAIN SOURCE OF GROWTH IN THE MEDIUM TERM 4 2 1 FRONTIER AREAS Beyond 2 PROJECT CAPACITY 2014 2015 2016 2017 2018 (WIND) 1 Nasulo* 49 MW X 1 Bayog I (Burgos I) 2 2 Burgos Wind 150 MW X Pagali (Burgos II) 1 No. Negros 6 MW X Iloilo 1 Iloilo 2 Burgos Solar 4 MW X 1 Matnog 1 2 Bacman 3** up to 30 MW X 1 1 Matnog 2 Nasuji up to 20 MW X Matnog 3 Botong-Rangas** up to 40 MW X 2 Negros Mindanao 3 50 MW X 3 3 1 Pagudpud Wind X 4 FRONTIER AREAS (GEOTHERMAL) Bacman 10 MW X 1 3 6 Mandalangan, Negros Occidental Tongonan ~12 MW X 2 5 4 Lakewood, Zamboanga del Sur Palinpinon ~12 MW X 4 5 Ampiro, Misamis Occidental 3 Kayabon 50 MW X 7 1 6 Balingasag, Misamis Oriental Dauin 40 MW X 2 7 Mt. Zion, North Cotabato ADVANCED RESOURCE POWER PLANT DONE EXECUTION EXPLORATION CONFIRMATION RETROFIT Note: *20 MW Nasuji Power Plant placed on preservation **Resource sustainability assessment is on-going 13 Key Investment Highlights