FIRST QUARTER 2013 FINANCIAL RESULTS ANALYSTS’ BRIEFING 08 May 2013 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:MPI 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 an Deposit itar ary Receipts ts 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 : 200 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 Metro o Pacif ific c Investmen ments Corporation oration (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, Makati Medical Center, Cardinal Santos Medical Center, Asian Hospital, Davao Doctors Hospital, Riverside Medical Center, and Lourdes Hospital. 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 Investor Relations Manager – Maricris C. Aldover (mdaldover@mpic.com.ph) Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 Associate IR Manager – Kristine A. Pineda (kapineda@mpic.com.ph) Email: investorrelations@mpic.com.ph Official Website: www.mpic.com.ph 2
CONSOLID OLIDATED ED FI FINANCIAL IAL HIGHLIGHT IGHTS 26% growth in MPIC Share driven by: 1Q 2013 1Q 2012 % Change In Millions of Pesos Maynil ilad ad - 2% increase in billed volume and 7% 7% MPIC share effective tariff increase Maynilad 1,015 862 18% MERALCO - 9% increase in average distribution rate, 1% growth in energy sales and growth in MERALCO / Beacon 779 779 534 46% preferred dividends from Beacon MPTC 438 438 367 19% MPTC - 5% 5% increase in average daily traffic and Hospitals 141 141 124 14% average kilometers travelled for NLEX; and inclusion of CAVITEX earnings Share of operating income 2,373 1,887 26% 26% Hospit itals als – Growth in most hospitals and Head office expenses (284) (229) 24% recovery of Senior Citizen discount Interest expense (141) (71) 99% Core Income grew slower due to: Core income 1,948 1,587 23% 23% 24% increase in head office expenses driven by Non-core expenses (175) (19) 821% investments in personnel , including bid teams; Reported income 1,773 1,568 13% 13% and increased public relations expenses 99% increase in interest expense primarily due to Diluted EPS on Core income additional P4.7 billion loan for CAVITEX acquisition In Centavos 7.57 6.44 18% 18% Slower growth in Reported Income of 13 13% due to refinancing costs at Maynilad and Beacon 3 3
PORTF TFOLIO LIO COMPANY ANY RESULTS TS AND KE KEY PRIORITIE RITIES 4 4
MAYNILAD NILAD 1Q 2013 3 HIGHLIGHT IGHTS In Millions 1Q 2013 1Q 2012 % Stand-alone Core Income 1,965 1,9 65 1,663 18% Maynilad (56.8% - 52.8%) 1,074 1,0 74 945 14% DMWC Parent and Fair Value Adjustments ( (59 59) (83) -29% MPIC Share 1,015 1,0 15 862 18% Revenues increased due to: In Millions 1Q 2013 1Q 2012 % – 2% 2% increase in billed volume from 104 MCM Revenues 4,064 3,749 8% to 106 MCM Cost of services (1,072) (1,049) 2% Gross profit 2,992 2,699 11% 11% • 6% 6% increase in billed customers from Operating expenses (509) (524) -3% 1,023,49 ,494 to 1,088,26 ,264 Other income and expense - net (144) (116) 24% – 7% 7% effective tariff increase Interest expense (491) (483) 1% Benefit from income tax 116 116 87 33% Core EBITDA grew in line with Revenues Core income 1,965 1,663 18% 18% Double-digit growth in Core Income driven by no Non-core expenses (200) 1 -20100% additional provisions for doubtful accounts and Reported net income 1,765 1,664 6% 6% lower depreciation and amortization Core EBITDA Computation: Slower growth in Reported net income due to Core income 1,965 1,663 18% refinancing costs Depreciation and amortization 419 419 463 -10% Interest expense 491 491 483 1% PhilHydr Hydro - P28.4M in Revenues and net Benefit from income tax (116) (87) 33% contribution to Maynilad of P6M Core EBITDA 2,759 2,522 9% 9% 5
KE KEY METRICS S AND KE KEY PRIORIT RITIES IES BULK LK WATER TER SUPPLY Y AND DISTR TRIBUT IBUTION ION PROJECT ECTS KEY METRICS CS 1Q 2013 1Q 2013 NRW RW UNDER R MAYNILA LAD Average 41.3 .3% 45.4% PHILHYDR YDRO INC. Period end 39.9 .9% 44.9% – 100% ownership by Maynilad Coverage verage – With current bulk water supply and distribution projects in Albay, Bulacan, Nueva Vizcaya and Nueva Ecija; total Total population 9.69M 9.58M population approx. 610 thousand; total capacity of 53MLD Population coverage 8.32M 8.05M – Albay & Bulacan – 25 year water rights (20 years remaining; 24hr availability 97% 84% renewable for another 20 years) Over 7 psi 100% 96% SUBIC WATER Custome tomer r Mix – Maynilad acquired Olongapo City’s 10% stake Residential 79% 79% 79% – Population of approx. 230 thousand with 36 thousand service Commercial 21% 21% connections – 2012 Data: Billed volume – 40MLD; Revenues of P519M; Net Capit ital al Expendit diture re P1,186M P1,566M Income of P192M RATE TE REBAS ASING ING UPDATES TES UNDER R METROPAC WATER CARMEN EN BULK WATER SUPPLY All Regulatory Office deputy administrators have been appointed (MWSS Board member Atty. Emanuel – 39% of JV with Manila Water for 35-MLD Bulk Water Supply Caparas acting as Chief Regulator) Project for Metro Cebu Water District; partnering with Provincial Government of Cebu on a 51:49 basis Revised business plan submitted in September 2012 – Population of approx. 2.4 million; projected to deliver 35 MLD On-going review focused on capital expenditure plan – 30 year contract audit and review of opening cash position – Operational by 4Q 2013 Completion scheduled for 2H 2013 6
MERAL ALCO O 1Q 2013 3 HIGHLIGHT IGHTS In Millions 1Q 2013 1Q 2012 % Stand-alone Core Income 4,0 4,024 24 3,418 18% MERALCO (23.6% - 24.2%) 972 97 2 807 20% Fair Value Adjustments ( (49 49) (50) -2% Beacon ( (14 144) 4) (223) -35% MPIC Share 77 779 9 534 46% In Millions 1Q 2013 1Q 2012 % Distribution and other revenues 13,270 11,930 11% Distribution & other revenues grew due to: Pass-through revenues 51,550 53,696 -4% Total revenues 64,820 65,626 -1% – 9% increase in average distribution rate per Purchased power (51,589) (53,445) -3% kWh from P1.49 to approved maximum Operating expenses (7,670) (7,665) 0% average price of P1.63 Other income 112 112 102 10% Provision for income tax (1,636) (1,276) 28% – 1.2% growth in total energy sales from Non-controlling interests (13) (82) -84% 7,687gWh to 7,777gWh – 2.1% industrial Income from discontinued operations - 158 -100% sector, 1.6% commercial sector and 0.3% Core income 4,024 3,418 18% 18% residential sector Non-core expenses - (45) -100% Reported net income 4,024 3,373 19% 19% Faster growth in Core Income due to strict control of operating expenses and lower financing costs Core EBITDA Computation: Core income 4,024 3,418 18% Reported Income benefitted from decrease in Depreciation and amortization 1,459 1,398 4% non-core expenses Interest income (38) 3 -1367% Provision for income tax 1,636 1,276 28% Others 9 199 -95% Core EBITDA 7,090 6,294 13% 13% 7
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