Manila Electric Co. · PSE:MER
Manila Electric — Q1 2024 Earnings Presentation
29 slides from Manila Electric's earnings presentation, Apr 29, 2024
Slide 1: First Quarter 2024 Financial and Operating Results
Osa aN lp, ML coment Of see (2) MERALCO FIRST QUARTER ENDED MARCH 31, 2024 FINANCIAL AND OPERATING RESULTS Investors and Analysts Briefing April 29, 2024
Slide 2: Financial Results
(Z) MERALCO FIRST QUARTER ENDED MARCH 31, 2024 FINANCIAL RESULTS Investors and Analysts Briefing April 29, 2024 6 Sosa ade Me mcent Oise
Slide 3: p 11.5% 9,047 q 1.0% 105,642 p 84.7% 5,107
p 11.5% 9,047 q 1.0% 105,642 p 84.7% 5,107 p 18.9% 8,071 q 5.0% 98,384 p 63.1% 57,946 p 14.7% 15,511 3 q 1.4% 102,200
Slide 4: Higher CCNI share of the Distribution Utility, augmented by unregulated business
Higher CCNI share of the Distribution Utility, augmented by significant contributions from unregulated business units Unregulated businesses share decreased to 42% from 51% a year ago as Power Generation contribution was tempered by scheduled outages of PH plants and, upgrade of Unit 10 plus lower p
Slide 5: Gross Revenues
Gross 2024 Down by 1% due to lower pass-through Revenues 2023 charges and energy fees Generation, Almost flat versus last year as the increase due to the 9% DU 2024 volume growth was offset by lower generation charge Transmission 2023 because of the decrease in WESM, international coal and and other
Slide 6: Total Costs and Expenses
Total Costs 5% lower due to the decline in Purchased Power Cost, which and Expenses accounted for 82% of the total Purchased Decreased by 3% due to decrease in WESM, Power Costs international coal and Malampaya natural gas prices Increased by 3% due to intensified maintenance of line OPEX distributi
Slide 7: Consolidated CAPEX driven by distribution network improvement and renewable investments
Consolidated CAPEX driven by distribution network improvement projects, renewable energy investments, and facilities for the towers business Largely Networks CAPEX that covered new connections, asset renewals, p 85% and load growth projects, among others On-going construction of three solar power pl
Slide 8: CCNI contribution tempered by scheduled outages and lower margins
CCNI contribution tempered by scheduled outages of several operating companies, and lower margins of PacificLight as the Singapore market stabilizes PhP 2.3 Billion PhP 465 Million PhP 273 Million PhP 46 Million Core Net income q 57% vs. 2023 q 49% vs. 2023 q 7% vs. 2023 p 64% vs. 2023 Meralco Stake
Slide 9: Cash, Short-term Investments and Gross Debt
Mar-24 Mar-23 %△ 2023 Total Debt and Breakdown Cash & cash equivalents 94,523 57,946 63.1% Short-term investments 5,072 14,215 (64.3%) Gross debt 100,794 102,200 (1.4%) Net debt 1,199 30,039 (96.0%) Gross debt/EBITDA 1.47 1.76 (16.1%) 45% Net debt/EBITDA 0.02 0.52 (96.6%) Gearing ratio 0.01 0.28 (96
Slide 10: Core EPS up 11%, reported EPS up 19%
Core EPS amounted to PhP 8.946, up by 11% versus last year, while reported EPS increased by 19% to PhP 8.199 p 11% p 19% 2023 2024 2023 2024 10 Core EPS Reported EPS
Slide 11: Operating Results
Sosa ade Me mcent Oise (Z) MERALCO FIRST QUARTER ENDED MARCH 31, 2024 OPERATING RESULTS Investors and Analysts Briefing April 29, 2024
Slide 12: Q1 2024 Operational Highlights
Q1 2024 Operational Highlights DISTRIBUTION Business Drivers Service Performance Electricity Rate Energy Sales System Loss (12-MMA) Average Retail Rate 12,307 GWh 5.90% PhP 10.78 per kWh 49.0% vs 11,287 in Q1 2023 40.28 ppt vs 5.62 in Mar 2023 43.5% vs 10.41 in Q12023 7.879 Million 0.208 times 42.7%
Slide 13: Energy Sales Growth
gy Sales incwn Grew 9.0% vs. 2023 driven by double-digit growth of Commercial and Residential segments, as well as recovery of Industrial segment 12,307 11,068 11,287 10.878 19,473 : 10,380 DU Sales Drivers: Residential Grew 11.9% as usage of cooling appliances increased with continued effect of El
Slide 14: Network Project Updates
Q1 2024 Network Project Updates Replacement of Taguig Bank No.1 = Energized on January 14, 2024 = CAPEX Filing: RY2023 (PhP 79.37 Million) = Anew 100 MVA power transformer was energized to replace the 40- year-old 100 MVA Taguig Bank 1. = This project will ensure service reliability for the customer
Slide 15: Updates on Pole Relocation Works
Q1 2024 dates on Pole Relocation Works r Build Better More Program NAIAx-EDSA Tramo Connecting Ramp Project = An additional ramp of the Ninoy Aquino International Airport Expressway (NAIAx) along Tramo Boulevard in Pasay City opened on March 1, 2024. = Meralco completed the relocation of 51 distribu
Slide 16: Comparison of 2024 MERALCO-LPI PSA vs Previous PSA/EPSAs
▪ Comparison of 2024 MERALCO - LPI PSA vs Previous PSA/EPSAs 2024 MERALCO - 2018 MERALCO - 2023 MERALCO - 2023 MERALCO - 2023 MERALCO - WESM Forecast [f] LPI 400 MW PSA [a] FNPC 414 MW PSA [b] TLI 370 MW EPSA [c] SPPC 330 MW EPSA [d] SPPC 480 MW EPSA [e] Plant Gate PhP/kWh 5.4650 5.5810 6.9327 7.860
Slide 17: Comparison Against WESM and Natural Gas PSAs
▪ ▪ ▪ Comparison Against WESM and Natural Gas PSAs at 100.00% PCF WESM MERALCO - FGPC 2024 MERALCO - MERALCO - FGPC Forecast PPA Using SPPC EPSA [b] PPA Using LNG [d] (Apr-Mar) [a] Malampaya Gas [c] Total Headline Rate (inclusive of Line Rental, PhP/kWh 7.6386 6.6128 6.8901 9.0505 exclusive of VAT)
Slide 18: Contract for Sale of Electric Energy with PSALM
Contract for Sale of Electric Energy (CSEE) with PSALM for Contract Capacity of up to 100 MW (net) Peaking beginning May 26, 2024 = On top of the 1200 MW EPSA, MERALCO foresees need to procure additional supply of up to 100 MW to cover its peaking requirements for a period of six (6) months. = MERAL
Slide 19: Power Generation Operating Results
MERALCO MGEN GOO POWER GENERATION GLOBAL BUSINESS POWER FIRST QUARTER ENDED MARCH 31, 2024 POWER GENERATION OPERATING RESULTS Investors and Analysts Briefing April 29, 2024
Slide 20: 2024 Q1 Power Generation Operating Highlights
2024 Q1 Power Generation Operating Highlights Energy Delivered in GWh Year-to-Date Performance = The Power Generation Group delivered 3,229 GWh for Plant the first three months of the year, lower than the 3,613 2024 Q1 2023 Q1 % Change GWh posted in the comparable period a year ago. Of the 2,368 MW
Slide 21: Low-Carbon Energy Transition Journey
Low-Carbon Energy Transition Journey 2024 Updates GEN ¢ MGREEN 7, 50hKR MGreen acquired an additional 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. in January 2024. This acquisition, along with its redeemable preferred voting shares, hikes MGreen’s stake to SPNEC to
Slide 22: Low-Carbon Energy Transition Journey
Low-Carbon Energy Transition Journey 12024 Updates Greentech Solar Energy, Inc., (GSEI), a wholly-owned Greenergy for Global, Inc. (GGI), a subsidiary of MGreen, subsidiary of MGreen, broke ground for its 18.75 MWac solar celebrated the ceremonial kickoff of its 49 MWac solar power power plant in Bo
Slide 23: Low-Carbon Energy Transition Journey
Low-Carbon Energy Transition Journey Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation (AP) and San Miguel Global Power Holdings Corp. (SMGP) are launching the Country's first and one of the most expansive integrated liquefied natural gas (LNG) facility in Batangas. MGen and AP to inves
Slide 24: One Meralco Sustainability Report
Sosa ade Me mcent Oise LIFE FIRST QUARTER ENDED MARCH 31, 2024 ONE MERALCO SUSTAINABILITY REPORT Investors and Analysts Briefing April 29, 2024
Slide 25: Meralco maintained its score in CDP Assessments
Meralco maintained its score in CDP’s Climate Change and Water Security Assessments “N | q = International non-profit organization formerly known as the Carbon Disclosure Project >> by DP = Rates companies based on their risks, opportunities, and impacts on climate change and water security = Global
Slide 26: 2023 Sustainability Achievements and Awards
#PoweringTheGoodLife 2023 Sustainability Achievements and Awards Corporate Reports 2022 Meralco Combined Annual and Sustainability Report (Sikat) recognized for reflecting all elements of active employee engagement and responsible workplace reporting. GOLD Asia Sustainability Reporting Awards 2023 A
Slide 27: 2023 Sustainability Achievements and Awards
#PoweringTheGoodLife 2023 Sustainability Achievements and Awards Programs, Campaigns, and Leadership 11% ASIA-PACIFIC STEVIE AWARDS = Regarded as the world’s premier business awards = — Recognizes innovation in the workplace in 29 markets of the Asia- Pacific region = Over 1,000 nominations and winn
Slide 28: Cautionary Statements
Cautionary Statements This presentation is prepared for the parties presently invited for the purpose of discussion. This presentation has consequential limitations and is not a comprehensive discussion about MANILA ELECTRIC COMPANY AND_ ITS SUBSIDIARIES (Meralco). These materials are restricted to
Slide 29: Thank You!
THANK YOU!
Manila Electric Company (Meralco) — Q1 2024 Earnings Presentation on 6ix