Manila Electric Co. · PSE:MER

Manila Electric — Q1 2016 Earnings Presentation

38 slides from Manila Electric's earnings presentation, Apr 25, 2016

  1. Slide 1: Financial and Operating Results

    FINANCIAL AND OPERATING RESULTS Investors and Analysts Briefing Quarter Ended March 31, 2016 April 25, 2016

  2. Slide 2: Operations Report

    OPERATIONS REPORT Performance ended March 2016 Investors Briefing April 25, 2016

  3. Slide 3: 2016 Operating Highlights

    2016 Operating Highlights 12.2* 3.8%* 12.4%* +215,530 +684 MW +985 GWh customers Customer Meralco Energy Sales Count Peak Demand 12.2%* 14.7%** Within Regulatory +1,060 GWh P7.58/kWh Limits Net System Ave. Retail S-Factor Input Rates & GSL*** Business Updates *vs. same period, previous year **v

  4. Slide 4: Details

    By MERALCO SAFETY SCOREBOARD

  5. Slide 5: Energy Sales: 1Q 2016

    Energy Sales: 1Q 2016  Up 12.2% vs. 2015 (+985 GWh) Movers* for 1Q 2016: 9,077 39.9% 4.9% 12.2% 12.7% COMMERCIAL Private Services 29.9% Real Estate INDUSTRIAL 2.3% Trade 1.7% Non-metallic Mineral 1.2% 8,092 Food & Beverage 7,908 29.9% Misc. Manufactures 7,687 7,777 RESIDENTIAL Higher organic sa

  6. Slide 6: Ave. Temperature (°C) monitoring

    Ave. Temperature(°C) monitoring  Warmer temperature vs. same period in 2015/ 2014 2014 2015 2016 30.19 * 30.3 Ave Temp (1Q) 25.7°C 25.7°C 27.3°C 29.7 Ave. Max Temp (1Q) 30.7°C 30.5°C 31.9°C 29.2 29.9 29.4 28.7 28.43 29.1 28.5 28.5 28.3 28.2 28.2 27.16 27.2 27.9 28.0 27.8 27.0 26.70 27.5 26.9 26.5 2

  7. Slide 7: Customer Count: Mar. 2016

    Customer Count: Mar. 2016  Up 3.8% vs. 2015 (+215,530 Customers) Segment share for 1Q 2016: 3.8% 5.842 2.3% 4.0% 91.6% 3.9% RESIDENTIAL 5.626 5.35 million 3.5% Customers 8.2% 5.417 COMMERCIAL 3.3% 0.477 million 5.232 0.2% Customers INDUSTRIAL 5.067 10,008 1.6% Customers in million customers 4,6

  8. Slide 8: Clark Electric (CEDC): 1Q 2016

    Clark Electric (CEDC): 1Q 2016 Customer Count Energy Sales, GWh 126.8 115.0 10.3% 7.3% 1,967 1,834 2015 2016 2015 2016 CEDC’s top 5 sales contributors for Mar. 2016 include Phoenix Semiconductor Philippines Corp. (PSPC), Yokohama, SN Aboitiz Power, Premier Central (SM Clark), and Nanox Phils. II N

  9. Slide 9: NSI and Peak Demand: 1Q 2016

    NSI: 1Q 2016 Peak Demand: 1Q 2016  NSI up by 12.2% vs. Mar. 2015 (+1,059.8 GWh)  Meralco Peak Demand of 6,206 MW, 12.4% Up vs. 2015 Meralco YTD Peak Demand, MW: 6,619 *** March 2016 YTD, GWh: 2015 Peak 6,298 6,206 * 12.2% 9,761.3 12.4% 8,701.5 5,522 2015 2016 2015 2016 *Mar. 10. 2016 ***Apr. 14,

  10. Slide 10: Power Sources and Fuel Mix: 1Q 2016

    Power Sources: 1Q 2016 Fuel Mix: 1Q 2016 Mar. 2016 Liquid Fuel, 0.001% SOURCE GWh Share PSA PSAs-Total 3,823.0 39.2% 39.2% SEM-Calaca 182.0 1.9% IPP Coal MPPC-Masinloc 550.3 5.6% 36.0% Natural Gas 49.1% 36.0% TLI-Pagbilao 504.4 5.2% RES SMEC-Sual 794.2 8.1% 18.8% WESM Multi-fuel SPPC-Ilijan 1,727.6

  11. Slide 11: Average Retail Rate: 1Q 2016

    Average Retail Rate: 1Q 2016  14.7% lower (-P1.31/kWh) than 1Q 2015 average rates  Except FIT-All, all components decreased  Generation Charge, largest component in customer’s bill, 52.0%; Meralco 18.7%; NGCP 12.0% BILL COMPONENT 1Q 2015 Overall Ave, 1Q 2016 Overall Ave,  P/kWh P/kWh P/kWh Trans

  12. Slide 12: System Loss Performance: Mar. 2016, 12-MMA

    System Loss Performance: Mar. 2016, 12-MMA  12-MMA ending Mar. 2016 at 6.53%  Higher (declined) by 0.03%pt vs. March 2015’s 6.50%  Lower by 1.97% vs. SL cap of 8.5% 8.5% SL CAP, 2010-PRESENT Apr 2014 - Mar 2015 Apr 2015 - Mar 2016 1.97% 6.59 6.52 6.50 6.46 6.51 6.53 Apr May Jun Jul Aug Sep Oct No

  13. Slide 13: S-Factor & GSL Performance: 1Q 2016 & RY2016

    S-Factor & GSL Performance: 1Q 2016 & RY2016 (for GSL)  Except for Ave. Time to Connect (Deadband), all S-Factor indicators well within rewards range; All GSL performances are well within set limits GSL1 : Customer experiencing a cumulative duration of SAIFI, Forced and PAI (Times) Ave. Time to Pro

  14. Slide 14: Business Updates & Other Events of Interest

    Business Updates & Other Events of Interest

  15. Slide 15: 2016 National Election Meralco Preparation Update

    2016 National Election Meralco Preparation Update 92% completed Pre-Election: November 1, 2015 – May 8, 2016 DISTRIBUTION AND SUPPLY National Election: May 9, 2016 General Alert: May 8 (2200H)–May 10 (0600H) Post Election: May 10, 2016 – onwards Count of Election Centers Count of Circuits with Deliv

  16. Slide 16: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business CAPITAL PROJECTS  INTERCONNECTION OF BULACAN SOLAR POWER PLANT (BSPP) 15 MW Commissioned March 10, 2016 BSPP 69 kV Substation Solar Panels of BSPP

  17. Slide 17: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business CAPITAL PROJECTS  COMMISSIONED EMBEDDED SOLAR GENERATION Solar Powered Agri-Rural Communities Corporation Bulacan Solar Power Plant (BSPP) – (15 MW) (SPARC)– (3.82 MW) Location: San Ildefonso, Bulacan Location: San Rafael, Bulacan Date Commissioned:

  18. Slide 18: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business CAPITAL PROJECTS  EXPANSION OF BAGBAGUIN SUBSTATION (2nd Bank) April 13, 2016 Phase out test for new feeder 422YZ New 7.2 MVAR capacitor bank no.2 New Takaoka 83 MVA PXF (2nd bank) • Will address forecasted critical loading (85%) of Bagbaguin Bank N

  19. Slide 19: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS March 3: Conducted prepaid welcome presentation for Greatwin owners Mr & Mrs. Chuabio (BIZ customer) Greatwin property, mixed use (resi/commercial building) P. Sanchez, Tondo Manila March 21: ERC

  20. Slide 20: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS The LUMINARIES 2016 SUSTAINING PROGRAMS BIZ * 9 Mar ; Pasig Room, Meralco March 8 Cold Chain Association of the Philippines MERALCO THEATER CBG*: RCOA forum 29 Mar ; Multi Purpose Hall, Meralco •

  21. Slide 21: Business Updates: Strengthening the Core Business

    Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS Energizing Partnership ERC Visit MOU with Dasmarinas, Cavite Customer Engagements DTI – MERALCO MOA signing

  22. Slide 22: ILP Activation

    ILP Activation (APRIL 15, 2016) Source: http://www.doe.gov.ph/news-events/news/press-releases/2949-doe-statement-ngcp-meralco-ilp HIGHLIGHTS 124 119 332 customers MW MWh Actual customers Total committed Total compensable de-loaded* de-loaded kWh kWh*** *Out of the total 153 participants *** inclusiv

  23. Slide 23: Thank You

    THANK YOU Performance ended March 2016

  24. Slide 24: Project Updates

    The information as contained herein may neither be reproduced nor used, in whole or in part, for any other purpose nor furnished to any person(s) without express written permission from MERALCO PowerGen Corporation PROJECT UPDATES As of April 2016

  25. Slide 25: San Buenaventura Power Limited Co. (SBPL)

    San Buenaventura Power Limited Co. (SBPL) 455-MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon  Construction of the project is already ongoing, with commercial operations targeted in 2019.  The consortium of South Korea’s Daelim Industrial Co. Ltd. And Japan’s Mitsubishi Corporation

  26. Slide 26: San Buenaventura Power Limited Co. (SBPL)

    San Buenaventura Power Limited Co. (SBPL) 455-MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon  Recognition  The Company on 03 February 2016 was awarded the “Asia Pacific Power Deal of the Year” for 2015 by Thomson Reuters Project Finance International.  SBPL was recognized after i

  27. Slide 27: Redondo Peninsula Energy, Inc. (RP Energy)

    Redondo Peninsula Energy, Inc. (RP Energy) 2x300-MW CFB Coal-Fired Power Plant in Subic, Zambales  Engineering, Procurement and Construction (EPC) Contract  Currently negotiating the EPC Contract for Phase 1 (300 MW Project)  Will also include an option for a second 300 MW unit, which is targeted

  28. Slide 28: Redondo Peninsula Energy, Inc. (RP Energy)

    Redondo Peninsula Energy, Inc. (RP Energy) 2x300-MW CFB Coal-Fired Power Plant in Subic, Zambales  Interconnection  The Energy Regulatory Commission (ERC) approved on 22 May 2015 the transmission line interconnection from the RPE Site to Hermosa Substation.  Rights-of-way for the transmission lin

  29. Slide 29: Atimonan One Energy, Inc. (A1E)

    Atimonan One Energy, Inc. (A1E) 2 x 600-MW Supercritical Coal-Fired Power Plant in Atimonan, Quezon  Permits  The Environmental Compliance Certificate (ECC) was issued by the Department of Environment and Natural Resources (DENR) on 13 October 2015.  Certificate of Land Use Conversion for the pro

  30. Slide 30: Global Business Power Corporation (GBPC)

    Global Business Power Corporation (GBPC)  MGen holds a 22% equity interest in GBPC, the largest independent power producer in the Visayas.  GBPC owns a power generation portfolio totaling 854 MW.  702 MW coal plants in the Visayas (552 MW in operations and 150 MW under construction)  144.5 MW di

  31. Slide 31: PacificLight Power Pte. Ltd. (PLP)

    PacificLight Power Pte. Ltd. (PLP) 2x400MW LNG Combined Cycle Facility in Jurong Island, Singapore  PLP has been operating the 800MW natural gas facility since February 2014.  Through PacificLight Energy Ptd Ltd (PLE), the Company supplies electricity to industrial and retail customers in Singapor

  32. Slide 32: 1Q 2016 Financial Highlights

    1Q 2016 FINANCIAL HIGHLIGHTS

  33. Slide 33: Consolidated Revenues

    Consolidated Revenues (in Million PhP) 62,590 60,173 1,517 Electricity Revenues = 61,073 2,322 Electricity Revenues = 57,851 48,572 45,050 12,501 12,801 1Q 2015 1Q 2016 Distribution Revenues Generation & Other Pass-through Charges Non-Electricity Revenues

  34. Slide 34: Consolidated EBITDA and Net Income

    Consolidated EBITDA and Net Income (in Million PhP) 8,227 8,151 8,227 8,151 4,416 4,590 4,547 4,421 0.9% 0.9% 4% 3% 13.1% 13.5% 13.1% 13.5%  Margins  7.1% 7.6% 7.1% 7.6% Core EBITDA Reported EBITDA Core Net Income Reported Net Income 1Q 2015 1Q 2016

  35. Slide 35: Costs and Expenses/Capital Expenditures

    Costs and Expenses/Capital Expenditures (P mn) 1,661 997 6,350 3% 2% Costs and Expenses 12% 44,929 83% Purchased Power Operating Expenses Depreciation & Amortization Other Expenses Capital Expenditures 1Q 2015 3,438 65.5% 1Q 2016 1,187

  36. Slide 36: Credit and Debt Profile

    Credit and Debt Profile (in P mn TOTAL DEBT (in P mn) 1Q 2015 1Q 2016 except ratios) 29,800 29,875 Cash 64,437 45,949 27,375 27,004 Gross Debt 29,800 29,875 2,425 2,871 Net Debt (34,637) (16,074) 1Q 2015 1Q 2016 Current Portion Non-current Portion Gross Debt/EBITDA 0.91 0.92 LT LOAN REPAYMENT SCHEDU

  37. Slide 37: Earnings per Share and Cash Dividends

    Earnings per Share and Cash Dividends REPORTED AND CORE EARNINGS PER SHARE (in P) 16.02 16.08 16.94 16.76 15.19 15.27 15.10 14.43 13.21 10.78 11.76 8.59 2010 2011 2012 2013 2014 2015 Earnings Per Share Core Earnings Per Share DIVIDENDS DECLARED OUT OF CORE EARNINGS FOR THE YEAR (in P/share) AND PAYO

  38. Slide 38: Cautionary Statements

    Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on April 25, 2016. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERAL

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