Let’s Move Forward FIRST QUARTER 2016 FINANCIAL RESULTS ANALYSTS’ BRIEFING 4 May 2016 1
DISCLA CLAIM IMER ER This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of Metro Pacific Investments Corporation (the “Company”). This presentation, as well as discussions arising therefrom, may contain statements relating to future expectations and/or projections of the Company by its management team, with respect to the Company and its portfolio companies. These statements are generally identified Ticker: er: PSE:MP :MPI by forward- looking words such as “believe,” “plan,” “anticipate,” “continue,””estimate,” “expect,” “may,” “will,” or other similar words. These statements are: (i) presented on the Amer eric ican n Depos osit itary Receipts ipts basis of current assumptions which the company’s management team believes to be ADR Ticker: MPCIY reasonable and presumed correct based on available data at the time these were made, (ii) CUSIP: US59164L2007 based on assumptions regarding the Company’s present and future business strategies, and Ratio: 1 ADR : 100 Ordinary Shares the environment in which it will operate in the future, (iii) a reflection of our current views with Depositary Bank: respect to future events and not a guarantee of future performance, and (iv) subject to certain Deutsche Bank Trust Company Americas factors which may cause some or all of the assumptions not to occur or cause actual results ADR Broker Helpline: to diverge significantly from those projected. Any and all forward looking statements made by +1 212 250 9100 (New York) the Company or any persons acting on its behalf are deemed qualified in their entirety by +44 207 547 6500 (London) these cautionary statements. E-mail: adr@db.com This presentation is solely for informational purposes and should in no way be construed as a ADR Website: www.adr.db.com solicitation or an offer to buy or sell securities or related financial instruments of the Company Depositary Bank’s Local Custodian: and/ or any of its subsidiaries and/or affiliates. Deutsche Bank Manila ABOUT OUT MPIC IC Metro o Pacif ific c Inves estmen ments Corpor poration ion (PSE:MPI) is a Philippine-based, publicly listed investment and management company, focused in infrastructure, with holdings in Manila Electric Company, Maynilad Water Services, Inc., Metro Pacific Tollways Corporation, Metro Pacific Hospital Holdings, Inc. and Light Rail Manila Corporation. HEADQU QUARTERS INVESTOR OR RELATIO IONS TEAM (inves estorr orrelations elations@mpic.co mpic.com. m.ph) ph) 10/F MGO Building, Legazpi corner Dela Rosa Streets, VP Investor Relations – Albert WL Pulido (awlpulido@mpic.com.ph) Legazpi Village, Makati 0721 Philippines AVP Investor Relations – Maricris C. Aldover – Ysmael (mdaldover@mpic.com.ph) Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 Investor Relations Specialist – Baby Diane A. Martinez (bamartinez@mpic.com.ph) Email: investorrelations@mpic.com.ph Official Website: www.mpic.com.ph 2
FI FINANC NCIAL IAL HIGHL HLIGHT IGHTS 16 16% % growth in MPIC Share driven by: 1Q 2016 1Q 2015 % Change In Millions of Pesos POWER – 12 12% % ↑ in energy sales; increased shareholding in MPIC share MERALCO from 27.5% to 32.5%; increased dividend income from Power (MERALCO / Beacon) 1,621 1,107 46% Beacon preferred shares; and lower interest expense at Beacon Water (Maynilad) 843 843 1,120 -25% WATER – 5% ↑ in billed volume and average effective tariff offset by higher tax expense due to expiration of Maynilad’s Income Tax Toll Roads (MPTC / DMT) 833 833 683 22% Holiday in December 2015 Hospitals 134 134 105 28% TOLLRO ROADS ADS – 9% ↑ in average daily traffic and 12% ↑ in average Rail 78 78 (5) 1660% kilometers travelled on NLEX; 5% ↑ in average daily traffic on CAVITEX; 16% ↑ in average daily traffic on DMT and contribution Others (28) (7) 300% from CII B&R (Mar 2015) and SCTEX (Oct 2015) Share of operating income 3,481 3,003 16% 16% HOSPITAL ALS – 24% ↑ in in -patient and out-patient treatments Head office expenses (283) (281) 1% across hospitals; lower interest cost in Asian Hospital; contribution from newly-acquired hospitals; and increased Interest expense (459) (156) 194% ownership in Riverside Medical Center from 58% to78% (October Core income 2,739 2,566 7% 7% 2015) Non-core expenses (111) (122) -9% RAIL – LRT1 only started operations in September 2015 Reported income 2,628 2,444 8% 8% Increase in interest expense due to new debt drawdown of P23.5 billion in 2H 2015 and accretion of interest arising from payable to Beacon for the acquisition of MERALCO shares Diluted EPS on Core Income Faster growth in reported income due to foreign exchange In Centavos 9.81 9.47 4% fluctuations 3 3
16% % GROWTH TH IN MPIC SHARE RE OF OP F OPERA RATI TING NG INCOME ME 1Q 2015 1Q 2016 Hospita itals ls / Ra Rail il / Hospitals / Rail / Others* s** Others* 3% 3% 6% 6% Maynilad MPTC / DMT 24% Maynila lad MPTC / DMT MT 23% 23% 37% 37% 24% MERALCO / MERALCO / Beacon Beacon 46% 46% 37% 37% P3,48 481M 1M P3,003M 003M *In Millions 1Q 2016 **In Millions 1Q 2015 Hospitals 134 Hospitals 105 Rail 78 Rail (5) Others (28) Others (7) 184 184 93 93 Total Total 4 4
STAND-AL ALONE ONE CORE INCOME ME VS VS MPIC SHARE RE 16% % Growth wth in in MPIC Share e from om P3.0B .0B to P3.5B .5B POWER HOSPITALS 1Q 2016 1Q 2015 In Millions % In Millions 1Q 2016 1Q 2015 % Stand-alone Core Income 4,590 4,416 4% Stand-alone Core Income 408 408 293 39% MERALCO (32.5% - 27.5%) 1,491 1,214 23% Hospitals 147 147 106 39% Fair Value Adjustments (67) ( 67) (55) 22% MPHHI Parent and Fair value Beacon 197 (52) 197 479% Adjustments (13) (1) 1200% MPIC Share 1,621 1,107 46% MPIC Share 134 134 105 28% WATER RAIL 1Q 2016 1Q 2015 In Millions 1Q 2016 1Q 2015 % In Millions % Stand-alone Core Income 1 144 (16) Stand-alone Core Income 1,708 2,250 -24% 1028% LRMC (55.0%)* 7 79 (9) Maynilad (52.8%) 902 902 1,188 -24% 1028% MWHCI Parent and Fair Value MPLRC / LRMH* (1) ( 4 -134% Adjustments ( (42) 42) (57) -26% MPIC Share 78 (5) 7 1660% MPWIC/ MWCI ( (17) 17) (11) 55% *Take-over of operations starting September 2015 MPIC Share 843 843 1,120 -25% OTHERS TOLL ROADS In Millions 1Q 2016 1Q 2015 % In Millions 1Q 2016 1Q 2015 % AFPI ( (32) (7) 357% Stand-alone Core Income 747 628 7 19% Indra Phil. / Logistics 4 4 - 100% MPTC (99.9%) 746 627 7 19% MPIC Share ( (28) (7) 300% Fair Value Adjustments (12) (7) ( 71% Don Muang Tollways / AIF 9 99 63 57% MPIC Share 833 683 8 22% 5 5
CUR URRE RENT NT PE PENDING DING ISSUE UES S / OP OPPOR PORTUNITI UNITIES ES POWER WATER TOLL ROADS HOSPITALS RAIL Delayed tariff increases Memo by Department Maynilad calls on the Achieve target of Filed Claim from of Energy on DU Government’s 5,000 beds Grantors for various o NLEX – due January participation in Open Undertaking to LRT1 costs (shortfall 2013 and 2015 Evaluate greenfield Access indemnify payments, compliance hospitals and o CAVITEX – due concessionaire for with maintenance, Delayed rate rebasing expansion of January 2012 and losses caused by availability of LRVs, nonhospital-based 2015 for R1; January Execution of power delays in tariff cycle time, premature diagnostic centers generation agenda 2014 for R1 extension implementation system degradation Continue expanding etc.) on October 26 o Issued a Demand Ongoing arbitration – existing hospitals to Letter to the hearings expected to optimize growth Right of Way Philippine Republic for commence in 4Q acquisition – ongoing the delayed toll 2016 preparation work increase Continue to bid and implementation on execute on attractive August 26 bulk water supply o Filed arbitration cases projects for NLEX and CAVITEX in April 2016 Connector Road – ongoing Swiss Challenge 6 6
PO PORTF TFOLIO LIO COMPANY ANY RESUL ULTS TS AND KE KEY PR PRIORITIES ORITIES 7 7
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