FIR FIRST QU ST QUAR ARTER TER 2020 2020 FINANCIA FIN ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING 06 6 Ma May 2020 2020 1 1
TABLE OF CONTENTS Consolidated Financial Highlights Page 3 MPIC Group Operating Performance 4 Regulatory Updates 7 Outlook 8 Stand-alone Portfolio Company Results and Key Metrics 9 POWER MERALCO 1Q 2020 Highlights and Key Metrics 10 GBPC 1Q 2020 Highlights and Key Metrics 11 Expansion Updates 12 TOLL ROADS MPTC 1Q 2020 Highlights 13 Key Metrics and Priorities 14 WATER Maynilad 1Q 2020 Highlights and Key Metrics 15 MetroPac Water Investments 16 LIGHT RAIL LRMC 1Q 2020 Highlights and Key Metrics 17 Quarterly Highlights 18 Statements of Financial Position 21 2 2
1Q Q 2020 CORE CORE INCO INCOME ME DECLIN DECLINE E OF OF 6% T % TO O P3.4B .4B Growth hampered by impact of Enhanced Community Quarantine CONSOLIDATED FINANCIAL HIGHLIGHTS 5% decrease in Operating Income was driven by: In Millions of Pesos 1Q 2020 1Q 2019 % Change Reduced traffic on toll roads of Metro Pacific Tollways MPIC share (MPTC) Power 2,870 2,690 7% Toll Roads 918 1,113 -18% Suspended light rail services beginning 17 March Water 859 902 -5% 2020 Light Rail -50% 62 123 Decreased commercial and industrial demand for Hospitals -78% 54 242 Manila Electric Company (MERALCO) and Maynilad Others -37% (73) (116) Lower share in the earnings of the hospital business Share of operating income 4,690 4,954 -5% Head office expenses (284) (311) -9% Interest expense (976) (983) -1% Lower head office expenses driven by reduced corporate overhead Core income 3,430 3,660 -6% Non-core expenses (1,540) (118) 1205% Interest was held flat because part of the proceeds Reported income 1,890 3,542 -47% from the hospital sell-down were used to pay-off debt In Centavos (interest cost savings of P64 million) and some were Diluted EPS on core income 10.87 11.60 -6% placed in short-term investments (interest income up by P114 million) EARNINGS CONTRIBUTION MIX Non- core expenses of ₱1.5 billion in 2020 primarily Others Others Toll 1% Toll 5% Roads due to the provisioning in full of the carrying value of Roads 20% 23% MERALCO’s investment in Pacific Light Power. Non - Water Water 18% 18% core expenses of just ₱118 million a year earlier Power Power primarily due to refinancing and share issuance costs 61% 54% 1Q 2020 1Q 2019 plus various project expenses 3 3
MP MPIC IC GR GROUP OUP OPE OPERA RATIN TING G PE PERFORMA RFORMANC NCE YEAR TO DATE 1Q 2020 1Q 2019 % FOR THE MONTH OF MARCH 2020 POWER DISTRIBUTION (MERALCO) Approximately 33% of energy sales was based on Volume sold (In GWh) 10,879 10,381 5% immediately preceding 3 months average consumption; initial estimates on the impact to energy sales pre- and during ECQ showed a reduction of approximately 27% based on net system input for April POWER GENERATION (Global Business Power) Minimal impact with Visayas ECQ implemented on Volume sold (In GWh) 1,236 1,061 16% latter part of March; electricity demand ↓ 20 -30% TOLL ROADS (Average Daily Vehicles) Pre-ECQ: 530,000 vs. during ECQ: 57,000; daily Philippines -6% 479,860 508,051 traffic recovered to around 115,000 at the end of April Implementation dates of national emergency: Regional 364,987 406,181 -10% • Thailand – March 26 (traffic ↓ 79%) • Indonesia – March 31 (traffic ↓ 55%) • Vietnam – April 1 (traffic ↓ 21%) 4 4
MP MPIC IC GR GROUP OUP OPE OPERA RATIN TING G PE PERFORMA RFORMANC NCE YEAR TO DATE 1Q 2020 1Q 2019 % FOR THE MONTH OF MARCH 2020 WATER (Maynilad) Billed volume based on previous 6 months average Billed Volume (In MCM) 131 129 2% consumption. ECQ volume (Residential ↑ 5%, Commercial & Industrial ↓ 45%) LIGHT RAIL (LRT-1) Daily ridership prior to suspension of operation at Average Daily Ridership 422,703 463,758 -9% 358,000. HOSPITALS Bed occupancy ↓ 65% to 44%, ↓ 38% admissions Occupancy rate 60% 71% -17% vs. January and February 5 5
MP MPIC IC GR GROUP OUP CO COVID VID-19 19 RES RESPONS PONSE 6 6
REGULA REGULATOR ORY UPD UPDATE TES Asian Development Bank to present recommendations to Department of Finance Awaiting official notice from Government on changes to the Concession Agreement Expected toll rate hikes likely to be deferred to latter part of 2020 7 7
OUTL OUTLOOK OOK CASH PRESERVATION As of March 2020 GROSS GROSS (In P Bn) DEBT CASH Capital expenditure for projects under construction deferred due to the ECQ MPIC Parent 80 25 Previously announced Share Buy-back Program suspended MERALCO 41 57 indefinitely GBPC 31 11 Other discretionary projects to be deferred MPTC (Parent) 21 4 MPIC Parent has sufficient cash on balance sheet due to sell- Maynilad 41 12 down of hospitals LRMC 14 2 At the moment, none of MPIC portfolio companies have indicated need for capital from MPIC to sustain operations in 2020 - this is dependent on how long the ECQ will last DIVIDEND INCOME EXPECTATIONS Maynilad – assumed to be unable to pay dividends pending the outcome of the Concession Agreement review MERALCO and Metro Pacific Tollways – likely to pay lower dividends as a result of the ECQ and other consequences of the COVID-19 outbreak DIVIDEND PAY-OUT Strong position to maintain dividend per share at the same level as for 2019 8 8
ST STAND AND-AL ALON ONE E POR PORTFOLIO TFOLIO COMP COMPAN ANY Y RES RESUL ULTS TS AND AND KEY KEY ME METRI TRICS CS 9 9
ME MERAL RALCO CO 1Q 1Q 20 2020 20 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY MET METRICS RICS 8% decrease in Electricity Revenues due to lower generation and transmission pass-through charges, offset by higher energy sales volumes: 5% growth in total energy sales from 10,381 GWh to 10,879 GWh ( 11.8% ↑ residential, 5.3% ↑ commercial and 2.4% ↓ industrial sector) In Millions of Pesos % 1Q 2020 1Q 2019 9% growth in distribution revenues due to increase in volume MERALCO (45.5%) 2,602 2,545 2% sold GBPC (62.4%) 274 248 10% Beacon/FV and accounting adj. (6) (103) -94% 21% increase in Non-Electricity Revenues was driven by 2,870 2,690 7% MIESCOR’s NGCP projects and increase in number of circuits served by Radius In Millions of Pesos 1Q 2020 1Q 2019 % Electricity 67,911 73,632 -8% 54% decline in Net Income largely from the reduction in the Non-Electricity 2,118 1,746 21% Total revenues 70,029 75,378 -7% carrying value of the investment in PLP of P2.7 billion. Purchased power (51,823) (58,743) -12% Operating expenses (12,069) (9,777) 23% KEY METRICS 1Q 2020 1Q 2019 Other income 910 578 57% Number of customer accounts 6.93M 6.68M (1,289) Provision for income tax (1,805) -29% 4,152 4,339 Capital expenditure (in Millions of Pesos) Non-controlling interests (34) (33) 3% Energy sales Core income 5,724 5,598 2% Non-core income (expense) (3,105) 73 -4353% Residential 3,366 3,010 Reported net income 2,619 5,671 -54% Commercial 4,343 4,124 Industrial 3,135 3,212 Core EBITDA Computation: 35 35 Streetlights Core income 5,724 5,598 2% Total (in GWh) 10,879 10,381 Depreciation and amortization 2,080 1,878 11% Interest income -net (374) (550) -32% Provision for income tax 1,289 1,805 -29% Others (311) 97 -421% Core EBITDA 8,408 8,828 -5% 10 10 10
GBPC GBPC 1Q 1Q 20 2020 20 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY ME METRI TRICS CS In Millions of Pesos 1Q 2020 1Q 2019 % Lower revenues mainly due to decline in Pass-through Revenue Power billings 5,535 5,740 -4% due to lower price of coal 18 Coal sales & others 34 -47% Total revenues 5,553 5,774 -4% 10% Growth in Core Income as a result of volume recovery from Power plant costs (2,516) (2,931) -14% maintenance shutdowns in 2019 and a higher contribution from (1,725) Operating expenses (1,521) 13% Alsons Thermal Energy Corporation newly operational 118.5 MW (551) Interest expense - net (545) 1% expansion plant Other income 8 14 -43% 130 Share in earnings of associates 62 110% Higher Net Income growth as 1Q2019 included tax settlement for a (246) Provision for income tax (253) -3% Non-controlling interests (214) (202) 6% liquidated entity. Core income 439 398 10% Non-core income (expense) 1 (106) -101% VOLUME SOLD REVENUES Reported net income 440 292 51% (In GWh) (In Millions of Pesos) 1Q 2020 1Q 2019 1Q 2020 1Q 2019 Core EBITDA Computation: CEDC (Cebu) 480 439 2,137 2,223 Core income 439 398 10% Depreciation and amortization 741 707 5% TPC (Toledo) 256 195 877 858 Interest expense - net 551 545 1% PEDC (Panay) 465 375 2,175 2,222 Provision for income tax 246 253 -3% PPC (Panay) 36 16 204 144 Non-controlling interests 214 202 6% GBH (Mindoro) 8 10 59 74 Others (130) (62) 110% GESC (RES) 58 89 332 517 Core EBITDA 2,061 2,043 1% GTERC (TCITRC) - - 19 37 Others/Elimination (67) (63) (250) (301) TOTAL 1,236 1,061 5,553 5,774 11 11 11
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