Manila Electric Co. · PSE:MER
Manila Electric — Q1 2014 Earnings Presentation
30 slides from Manila Electric's earnings presentation, Apr 28, 2014
Slide 1: Investors and Analysts Briefing
Quarter Ended March 31, 2014 Investors and Analysts Briefing April 28, 2014
Slide 2: Performance as at March 31, 2014
Performance as at March 31, 2014 April 28, 2014
Slide 3: Energy sales and customer base growth
FuelMin 1.7% Growth in Energy Sales y Famer! Customer Base \
Slide 4: Details
ME Ang liwanog ng bukas
Slide 5: Energy Sales, 1Q 2014
Energy Sales, 1Q 2014 Up 1.7% vs. 1Q 2013 (+131 GWh) Details: + 131 GWh 7,908 Total, in GWh Share of Sales: 7,777 1.7% 7,687 1.2% 2,409 5.7% 2,547 Industrial 9.9% 32.2% Commercial 39.4% 3,052 3,119 6,996 0.1% 6,991 2.2% 27.9% 2,284 3.3% 2,208 Residential Sales volume for Flat Streetlights (33 GWh) a
Slide 6: Ave. Temperature (°C) monitoring
Ave. Temperature(°C) monitoring 2013 Ave. Colder temperature Temp. is at higher startthan of 2014 2012 29.90 29.84 2012 29.15 2013 29.33 29.38 2014 28.51 27.99 27.80 28.60 27.61 27.74 27.44 27.42 27.17 27.43 27.77 27.80 26.61 27.22 27.47 27.29 27.36 27.08 26.69 26.00 25.74 24.67 Jan Feb Mar Apr May
Slide 7: Customer Count, 1Q 2014
Customer Count, 1Q 2014 Up 3.5% vs. 1Q 2013 to 5.42 million customers CONSO Details: Share of Count*: Indl 5.23 3.5% 5.42 Total, in Million 0.2% 4.75 4.89 5.07 3.3% 3.0% 3.7% 0.44M 0.46M Commercial 2.5% 8.4% 4.77M 3.7% 4.95M Residential 91.3% *Industrial (9,737) and Flat Streetlights (4,512) account
Slide 8: Clark Electric (CEDC), 1Q 2014
Clark Electric (CEDC), 1Q 2014 Strong growth vs. 2013 Energy Sales, GWh 99.4 CEDC 33.1%* 71.9 3.9% 74.7 64.6 63.9 12.4% 0.1% 1Q 2014 Sales, Share Count, Share Commercial 37.6% 57.2% 2010 2011 2012 2013 2014 Industrial 61.3% 6.3% Residential 0.8% 33.2% Flat Streetlights’ sales and count shares accoun
Slide 9: Net System Input (NSI) & Demand, 1Q 2014
Net System Input (NSI) & Demand, 1Q 2014 NSI slightly declined vs. 1Q 2013 (-16 GWh) Meralco Peak Demand of 5,405 MW CONSOLIDATED NSI, in GWh: Meralco YTD Peak Demand, MW: 8,489 8,473 5,466 1.1% 5,405 0.2% 2013 2014 2013 2014 *2014 NSI data for Parent includes: ● Power purchases of D.U. (for Captive
Slide 10: Power Supply Sourcing, 1Q 2014
Power Supply Sourcing*, 1Q 2014 1Q 2014 Sourcing Volume, SOURCE GWh PSAs-Total 3,550.9 SEM-Calaca 238.3 IPPs MPPC-Masinloc 475.8 35.0% TLI-Pagbilao 482.0 PSAs SMEC-Sual 701.6 41.9% SPPC-Ilijan 1,613.5 TMO-Navotas 31.8 Others-Renewables** 8.0 IPPs-Total 2,961.9 Sta. Rita 1,484.7 San Lorenzo 870.9 RES
Slide 11: Power Plant Fuel Source Mix, 1Q 2014
Power Plant Fuel Source Mix, 1Q 2014 Indigenous Natural Gas and Coal were the main fuels for power generation 1Q 2014 Mix Natural Gas Volume, 46.8% SOURCE GWh Coal Natural Gas 3,969.0 29.6% Coal 2,504.0 Multi-fuel* 2,000.0 NET SYSTEM INPUT 8,472.9 *Coal, Hydro, Geothermal, Biomasss, et. al. Multi-fu
Slide 12: Average Retail Rates, 1Q 2014
Averate Retail Rates, 1Q 2014 Generation Charge, largest component in customer’s bill, 56.8%; Meralco 17.1%; NGCP 10.0% Share of All customers Overall Average BILL COMPONENT P/kWh Transmission 10.0% Generation Charge* 5.43 System Loss 4.8% Distribution Charge** Generation* 1.63 (MERALCO) 56.8% Trans
Slide 13: S-Factor Performance: March 2014 YTD
S-Factor Performance: March 2014 YTD All indicators well within rewards* range; vs. 2013, 6 out of 8 indicators improved SAIFI, Forced and PAI (Times) Ave. Time to Process App. (Days) Deadband: 6.98-8.24 Deadband: 7.91-12.28 2014 0.44 2014 4.35 ** 27.9% improvement vs. 0.5% decline vs. 2013 0.61 201
Slide 14: RY 2014 GSL Performance: Jul 2013 – Mar 2014
RY 2014 GSL Performance: Jul 2013 – Mar 2014 All GSL performances are well within set limits GSL1 Actual RY2014 8,956 customers GSL1 :: Customer Customer experiencing experiencing aa cumulative cumulative duration duration of of sustained sustained service service interruptions interruptions in in a
Slide 15: Other Business Highlights
Other Business Highlights
Slide 16: Business Updates: Interim Power Supply Agreements
Business Updates Interim Power Supply Agreements Further augment power supply and meet higher customer requirements during summer months Subject to contractually-stipulated approval of ERC MERALCO & MERALCO & 1590 Energy Corp. Global Business Power for TPC & PPC MERALCO & PanAsia Energy Inc. POWER P
Slide 17: Business Updates: TMO Cutting-in
Business Updates Termination of the new 115 kV line Cutting-in of Therma Mobile, Inc. at TMO Switching Station (TMO) April 4, 2014 An interim setup to “cut-in” TMO to MERALCO’s subtransmission system Reinforced TMO’s connection to MERALCO with the conversion of its link to Malabon and Grace Park Sub
Slide 18: Business Updates: New Araneta-Cubao-Kamuning 115 kV Line
Business Updates Completed Electric Capital Project: New Araneta-Cubao-Kamuning 115 kV Line • February 28, 2014 • New Araneta-Cubao-Kamuning 115 kV line connecting former Cubao-Kamuning 115 kV line to NGCP-Araneta Substation • Constructed using 2-795 MCM ACSR conductors (1800 Amperes) per phase on 1
Slide 19: Business Updates: Prepaid Retail Electricity Service
Business Updates March Meralco Advisory Prepaid Retail Electricity Service (PRES) • Wala nang monthly bills kaya wala nang gulatan • Abot-kaya ang P100, P200, P300, P500 at P1000 load • No expiry, No service deposit, No installation fee • KLoad top-up centers (Meralco Business Centers, Bayad Center,
Slide 20: Business Updates: Electric Vehicles
Business Updates Electric Vehicle (EV) 3rd Philippine EV Summit at Meralco • February 27-28 DOE-ADB e-Trike Project • Organized by the Electric Vehicle • ADB to announce 1st tranche bid Association of the Phils. (EVAP) winners of 3k units by Q1 • 20k total within 2014 (out of 100k units over 5 years
Slide 21: Business Updates: Partnerships and Awards
Business Updates Partnership Meralco bags 7 Anvil Awards for PR and Communications • One Meralco Foundation's (OMF) "Engaging Stakeholders to Energize Public Schools" bagged Award of Excellence for Public Relations Program directed at Specific Stakeholders-External Communities. • 6 other entries won
Slide 22: 1Q 2014 Financial Results
Mi, MERALCO 1Q 2014 Financial Results 22
Slide 23: Consolidated Net Income and EBITDA
Consolidated Net Income and EBITDA Core and Reported Net Income Core and Reported EBITDA (in P mn) (in P mn) 4,500 8,000 7,503 7,450 4,024 4,024 4,088 4,008 7,083 7,083 4,000 7,000 3,500 6,000 3,000 5,000 2,500 4,000 2,000 3,000 1,500 2,000 1,000 500 1,000 - - 1Q2013 1Q2014 1Q2013 1Q2014 Core Report
Slide 24: Consolidated Revenues and Energy Sales
Consolidated Revenues and Energy Sales Total Consolidated Revenues and Energy Sales Consolidated Distribution Revenues (in P mn and GWh) (in P mn) 70,000 8,500 14,000 64,828 12,839 12,674 8,400 60,000 12,000 55,109 8,300 50,000 8,200 10,000 8,100 40,000 8,000 8,000 30,000 6,000 7,900 1% 7,908 20,000
Slide 25: Costs and Expenses
Costs and Expenses Costs and Expenses Breakdown of Purchased Power (in P mn) (in P mn) 435 1,942 60,000 1% 4% 1,295 51,589 2% 50,000 4,349 7,640 9% 41,315 40,000 8,351 41,315 30,000 84% 43,949 20,000 32,964 10,000 Purchased Power Operating and Maintenance Depreciation and Amortization Interest Expen
Slide 26: Receivables and Payables
Receivables and Payables Revenues vs. Receivables Purchased Power vs. Payables (in P mn) (in P mn) 40,000 70,000 40,000 70,000 65,000 65,000 35,000 64,158 35,000 60,000 60,000 30,000 30,000 54,045 55,000 55,000 8,914 25,000 25,000 51,589 50,000 50,000 20,000 45,000 20,000 45,000 34,189 41,315 40,000
Slide 27: Capital Expenditures
Capital Expenditures New Araneta-Cubao-Kamuning Transmission 115 KV Line Consolidated Capital Expenditures (in P mn) 2,500 2,098 2,000 1,950 1,500 8% Cutting in of Therma Mobile, Inc. 1,000 500 - 1Q2013 1Q2014 27
Slide 28: Credit Profile
Credit Profile Cash*, Total Debt and Net Debt EBIT and Interest Expense (in P mn) (in P mn) 80,000 7,000 60,759 63,942 6,155 60,000 6,000 5,624 40,000 35,122 5,000 24,969 4,000 20,000 3,000 - 1Q2013 1Q2014 2,000 (20,000) 1,000 374 435 (40,000) (28,820) (35,790) - (60,000) 1Q2013 1Q2014 Cash Total De
Slide 29: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on April 28, 2014. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERAL
Slide 30: Thank You
Thank You
Manila Electric Company (Meralco) — Q1 2014 Earnings Presentation on 6ix