Manila Electric Co. · PSE:MER
Manila Electric — H1 2015 Earnings Presentation
32 slides from Manila Electric's earnings presentation, Jul 27, 2015
Slide 1: Financial and Operating Results
San Marcelino, 1936 MERALCO HEAD OFFICE Ortigas, 2015 Financial and www.ivanhenanres.com Operating Results Investors and Analysts Briefing Half Year Ended June 30, 2015 July 27, 2015
Slide 2: Operations Report 1H 2015
Operations Report 1H 2015
Slide 3: 2015 Operating Highlights
2015 Operating Highlights 2.6%* 3.8%* 2.2%* 3.2%* 17,753 GWh 5.683 million 6,257 MW 19,154 GWh HIGHEST EVER SALES ALL-TIME HIGH ALL-TIME HIGH Energy Sales Customer Count Peak Demand NSI 1H 2015 1H 2015 1H 2015 1H 2015 9.1%* Within Business Regulatory Limits Updates P8.89/kWh Gen.Ch. 54.5% Dist. Ch.
Slide 4: Details
Slide 5: Energy Sales, 1H 2015
Energy Sales, 1H 2015 Up 2.6% vs. 2014 (+454.0 GWh) Movers* for 2015: 2.6% 2.6% 4.0% 17,753 1.3% 30.4% 3.6% 9.7% 16,863 17,299 INDUSTRIAL 39.4% 16,215 Food & Beverages 14,781 Misc. Manufactures COMMERCIAL Rubber & Plastics Private Services Real Estate 29.8% Trade RESIDENTIAL ∆ organic sales + new cu
Slide 6: Customer Count, 1H 2015
Customer Count, 1H 2015 Up 3.8% vs. 2014 (+207,107 new customers) Segment share for 2015: 3.8% 5.68 3.9% 91.5% 2.3% 3.6% 5.48 RESIDENTIAL 5.20 million Customers 3.3% 5.28 8.3% COMMERCIAL 3.7% 5.11 0.469 million 0.2% Customers 4.93 INDUSTRIAL 9,885 1.1% Customers in million customers 4,505 Flat Stree
Slide 7: Clark Electric (CEDC), 1H 2015
Clark Electric (CEDC), 1H 2015 Energy Sales, GWh Customer Count 17.7% 249.8 212.2 1.2% 1,849 1,872 2014 2015 CEDC’s top 5 sales contributors for June 2015 include Phoenix Semiconductor Philippines Corp. (PSPC), Yokohama, SN Aboitiz Power, Premier Central (SM Clark), 2014 2015 and Nanox Phils NSI, GW
Slide 8: NSI, 1H 2015 Peak Demand, 1H 2015
NSI, 1H 2015 Peak Demand, 1H 2015 Up 3.2% vs. 2014 (+594.4 GWh) Meralco Peak Demand 6,257 MW, 2.2% Up vs. 2014 Meralco YTD Peak Demand, MW: 2014 Peak 6,257 * ALL-TIME HIGH 6,121 June 2015 YTD, GWh: 2.2% 18,559.7 19,154.1 3.2% 2014 2015 *June 3, 2015 Luzon YTD Peak Demand, MW: 2014 2015 2014 Peak 8,7
Slide 9: Power Sources & Fuel Mix, 1H 2015
Power Sources & Fuel Mix, 1H 2015 SOURCE GWh Share Liquid Fuel 7.5% PSAs-Total 7,512.9 39.2% PSA Natural Gas 39.2% 38.4% SEM-Calaca 976.5 5.1% IPP MPPC-Masinloc 952.1 5.0% Coal 35.0% TLI-Pagbilao 806.6 4.2% Multi-fuel 37.3% SMEC-Sual + CEDC 1,494.7 7.8% RES 16.9% 19.0% WESM SPPC-Ilijan 2,975.0 15.5%
Slide 10: Average Retail Rate, 1H 2015
Average Retail Rate, 1H 2015 9.1% lower vs. 2014 (-89¢/kWh) Generation Charge, largest component in customer’s bill, 54.5%; Meralco 18.0%; NGCP 10.6% 1H 2014 1H 2015 BILL COMPONENT Overall Ave, P/kWh Overall Ave, P/kWh ∆ Generation Charge* 5.54 4.83 Generation -0.71 Transmission Distribution Charge*
Slide 11: System Loss Performance, as of June 2015 (12-MMA)
System Loss Performance, as of June 2015 (12-MMA) 12-MMA ending June 2015 at 6.60% Improved by 0.08%pts vs. June 2014’s 6.68% Lower by 1.90% vs. SL cap of 8.5% 8.5% SL CAP, 2010-PRESENT YEAR AGO 12-MMA (Jul '13 - Jun '14) LATEST 12-MMA (Jul '14 - Jun '15) 1.90% 6.90 6.71 6.68 6.47 6.54 6.60 Jul Aug
Slide 12: S-Factor & GSL Performance, 1H 2015 & RY2015
S-Factor & GSL Performance, 1H 2015 & RY2015 (for GSL) 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 Process App. (Days) sustained service interruptio
Slide 13: Other Business Highlights
Omner Business IHiGHLIGHTs C3
Slide 14: Business Updates: Modernization of System Control Center
Business Updates: Strengthening the Core Business Capital Projects Modernization of System Control Center Completion: April 15, 2015; Inauguration: May 11, 2015 Before After Inauguration After Renovation “Envisioning the Nerve Center of the Future”
Slide 15: Commissioning of Dasmariñas-Imus 115 kV Line
Business Updates: Strengthening the Core Business Capital Projects Commissioning of Dasmariñas-Imus 115 kV Line (Dasma Leg) April 19, 2015 Zapote Del. Pt. Substation Pamplona Bacoor Substation Substation Meeting w/ Cong. Barzaga and his Brgy. Captains Imus Details Substation Imus Leg (3.8 km) • Inst
Slide 16: Tutuban Substation Expansion and Meycauayan-Bagbaguin Uprating
Business Updates: Strengthening the Core Business Capital Projects Expansion of Tutuban Substation (3rd Bank) Uprating of Meycauayan-Bagbaguin 115 kV Line June 26, 2015 June 30, 2015 Reconductored from 1-336.4 MCM ACSR to 2-795 MCM ACSR New 34.5 kV GIS Switchgear Uprated Line New 83 MVA Power Transf
Slide 17: PAGCOR-1 Substation and Batangas City-Bolbok-Simlong Line
Business Updates: Strengthening the Core Business Capital Projects Development of PAGCOR-1 GIS Substation Construction of Batangas City-Bolbok- Target Commissioning: September 2015 PAGCOR-1 Substation Building Ongoing Cable Pulling for Simlong 69 kV Line 34.5kV UG Feeders JG Summit’s Ongoing Splicin
Slide 18: Relocation of Facilities Affected by NAIA Expressway Project
Business Updates: Strengthening the Core Business Capital Projects Relocation of MERALCO Facilities Affected by NAIA Expressway Project Electrical cor. Airport Rd. Andrews Ave. near Tramo Andrews Ave. near PAL Andrews Ave. infront Beside Tambo River Express PAL Express AUKH Staging area Relocated 20
Slide 19: Significant Events / Initiatives
Business Updates: Strengthening the Core Business Significant Events / Initiatives SOLUTIONS / PRES Preparatory Activities/ with ERC Kuryente Load Caravan NHA goes for Prepaid Electricity Preparatory Activities/ with Media 7,273 Caravan at BASECO ACTIVATED Exceeded 7,000 target!!!
Slide 20: Significant Events: Customer Engagements
Business Updates: Strengthening the Core Business Significant Events COMMS/ CUSTOMER ENGAGEMENTS/ PROGRAMS 85,320 VISITS 10% vs. May
Slide 21: Successfully hurdled Summer 2015 Power Supply Crisis
Successfully hurdled Summer 2015 Power Supply Crisis 3 Pillars of Meralco’s Support DETAILS (~820 MW) *819.96 MW signed out of the committed 923.14 MW, as of April 21, 2015
Slide 22: MGen Updates
MGen Updates 1H 2015
Slide 23: San Buenaventura Power Limited
San Buenaventura Power Limited 455-MW (net) Coal-Fired Power Plant, Quezon • Power Supply Agreement with Meralco o SBPL accepted on 30 May 2015 the Energy Regulatory Commission approval for the Power Sales Agreement (“PSA”) between Meralco and SBPL. • Financing o The Company is targeting Financial C
Slide 24: Redondo Peninsula Energy
Redondo Peninsula Energy Up to 600-MW Coal-Fired Power Plant, Subic • RP Energy is actively pursuing the completion of all remaining development activities to allow the Project to achieve financial close and commence construction of the power plant. • Evaluating 300MW vs. 600MW transmission options
Slide 25: Atimonan One Energy
Atimonan One Energy 2 x 600-MW PC Coal-Fired Power Plant, Quezon • Regulatory o Public Consultation held in May 2015 with strong show of support from LGU and local stakeholders as, as part of the ECC process. o ECC expected to be released in the 3rd quarter of 2015. o Certificate of Non-Overlap (CNO
Slide 26: Global Business Power Corporation (GBPC)
Global Business Power Corporation (GBPC) • GBPC’s Toledo Power Corporation completed construction of its 1 x 82-MW CFB coal-fired power plant expansion. Achieved commercial operation in Dec 2014. o The capacity services the Visayas grid through power supply agreements (PSA) with electric cooperative
Slide 27: Financial Highlights
Financial Highlights 1H 2015
Slide 28: Revenues, EBITDA and Net Income
Revenues, EBITDA and Net Income CONSOLIDATED REVENUES (in P mn) EBITDA (in P mn) AND MARGINS & ENERGY SALES (in GWh) CORE REPORTED 22,000 19,630 19,693 20,000 18,000 17,397 17,344 16,000 18,500 14,000 140,000 132,168 134,008 12,000 15% 15% 10,000 13% 13% 8,000 120,000 6,000 4,000 17,753 2,000 100,00
Slide 29: Costs and Expenses
Costs and Expenses TOTAL COSTS & EXPENSES (in P mn) 3,243 2,430 100,565 82,749 11,551 17,816 Purchased Power - Generation Purchased Power - Transmission Operating Expenses Depreciation and Amoritization Other Expenses CAPITAL EXPENDITURES (in P mn) MAJOR CAPITAL PROJECTS IN 1H 2015: 7,000 6,000 5,76
Slide 30: Credit and Debt Profile
Credit and Debt Profile TOTAL DEBT (in P mn) 30,174 29,961 1% (in P mn except ratios) 1H 2014 1H 2015 27,579 27,380 Cash 67,053 53,637 Total Debt 30,174 29,961 2,595 2,581 1H 2014 1H 2015 Net Debt (36,880) (23,676) Current Maturities Non-current Maturities DEBT REPAYMENT SCHEDULE (in P mn) Total Deb
Slide 31: Dividend History
Dividend History CASH DIVIDENDS PER SHARE 14.00 12.36 12.00 10.20 10.00 8.10 8.00 7.80 6.95 6.76 6.00 4.00 2.00 - 2010 2011 2012 2013 2014 1H 2015
Slide 32: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on July 27, 2015. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERALC
Manila Electric Company (Meralco) — H1 2015 Earnings Presentation on 6ix