Manila Electric Co. · PSE:MER
Manila Electric — Q1 2017 Earnings Presentation
38 slides from Manila Electric's earnings presentation, Apr 24, 2017
Slide 1: Financial and Operating Results
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Slide 2: Operations Report
OPERATIONS REPORT Performance ended March 2017
Slide 3: 1Q 2017 Operating Highlights
1Q 2017 Operating Highlights Energy Customer Peak Net System Sales Count Demand Input (NSI) 2.6%* 4.5%* 6.0%* 2.1%* 9,317 GWh 6.11 million 6,577 MW 9,968 GWh Ave. Retail S-Factor Rates & GSL** 3.4%* Sustained Service Business P7.84/kWh Improvement Updates *vs. same period, previous year **For G
Slide 4: Details
Slide 5: Energy Sales: 1Q 2017
Energy Sales: 1Q 2017 Up 2.6% vs. 2016 (+240 GWh) Share / for 1Q 2017: 2.6% 1.2% RESIDENTIAL 9,317 9,077 29.5% 3.4% Increase in organic sales and other COMMERCIAL 12.2% factors plus new 2.3% sales 40.2% 1.7% 8,092 •Private Services 7,908 INDUSTRIAL •Gov’t. Services 7,777 30.0% •Real Estate •
Slide 6: Customer Count: 1Q 2017
Customer Count: 1Q 2017 Up 4.5% vs. 2016 (+265,217 customers) Share / for 1Q 2017: 4.7% RESIDENTIAL 4.5% 6.107 91.7% 2.7% 3.8% 3.9% 5.842 65,180 new 3.5%\ 5.626 customers COMMERCIAL 5.417 8.0% 5.232 3,361 new INDUSTRIAL customers in Mn 0.2% customers 73 new 2.0% customers 2013 2014 2015 2016
Slide 7: Ave. Temperature (°C): 1Q 2017
Ave. Temperature(°C): 1Q 2017 30.3 30.5 29.7 29.5 29.2 29.9 28.7 28.7 28.4 28.3 28.5 28.5 28.4 28.5 28.3 27.6 28.2 27.8 27.7 27.2 27.0 26.7 26.9 2015 2016 2017 26.2 26.2 Ave 1Q Temp 25.8°C 27.4°C 26.6°C 25.0 25.6 2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017 Ave Max 1
Slide 8: Clark Electric (CEDC): 1Q 2017
Clark Electric (CEDC): 1Q 2017 ENERGY SALES, in GWh CUSTOMER COUNT 126.8 6.4% 134.9 1,967 2.8% 2,023 2016 2017 CEDC’s top 5 sales contributors for March 2017 include Phoenix Semiconductor Philippines 2016 2017 Corp. (PSPC), Advent Energy (Yokohama Tire Phils), SN Aboitiz Power (Taiyo Nippon), Prem
Slide 9: Net System Input (NSI) and Peak Demand: 1Q 2017
Net System Input (NSI): 1Q 2017 Peak Demand: 1Q 2017 Up 8.9% at 6,748 MW. Meralco Peak Demand up 6.0% at 6,577 MW. Meralco YTD, MW: 2.1% 6,748 9,968.0 2016 Peak * 6,577 9,761.3 6,206 6.0% *May 4, 2016 2016 2017 2016 2017 (March 10) (March 24) Luzon YTD Peak Demand, MW: 9,726 2016 Peak** 9,459
Slide 10: Energy Sources and Fuel Mix: 1Q 2017
Energy Sources: 1Q 2017 Fuel Mix: 1Q 2017 SOURCE 1Q 2017 Liquid Fuel, 7.1%* GWh Share Coal PSAs-Total 3,444.1 34.6% 31.2% PSA IPP SEM-Calaca 324.9 3.3% 34.6% 26.7% MPPC-Masinloc 354.6 3.6% Natural Gas Multi-fuel TLI-Pagbilao 433.7 4.3% 31.8% 29.9% SMEC-Sual + CEDC 669.9 6.7% WESM RES 15.7% SPPC-Ilij
Slide 11: Average Retail Rates: 1Q 2017
Average Retail Rates: 1Q 2017 3.4% higher than 2016 average rates (-26¢/kWh); mainly due to Generation and FIT-All charges For 2017, Generation Charge, largest component in customer’s bill, 53.7%; Meralco 17.9%; NGCP 10.9% BILL COMPONENT 1Q 2016 Overall Ave, GenerationP/kWh 1Q 2017 Overall Ave,
Slide 12: System Loss Performance: March 2017, 12-MMA
System Loss Performance: March 2017, 12-MMA 12-MMA ending March 2017 at 6.23% • Improved by 0.30%pt vs. March 2016’s 6.53% • Lower by 2.27% vs. SL cap of 8.5% 8.5% SL CAP, 2010-PRESENT Apr 2015 -Mar 2016 Apr 2016 - Mar 2017 2.27% 6.59 6.65 6.51 6.53 6.55 6.19* 6.21 6.23 Apr May Jun Jul Aug Sept Oc
Slide 13: S-Factor & GSL Performance: 1Q 2017 & RY2017
S-Factor & GSL Performance: 1Q 2017 & RY2017 (for GSL) Sustained service improvements vs. past levels* SAIFI, Forced and PAI (Times) GSL1 : Customer experiencing a cumulative duration of Ave. Time to Process App. (Days) sustained service interruptions in a Regulatory Year that REWARDS DEADBAND PEN
Slide 14: Business Updates
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Slide 15: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business (via CapEx for Enhanced Capacity & Power Quality) Voltage Improvement in Pasay and Makati Area Replacement of Malibay Power Transformer Bank No. 1 March 29, 2017 Old 100 MVA Osaka Transformer New 83 MVA ABB Transformer •The new transformer is equip
Slide 16: Business Updates: Significant Events/Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs Meralco Launches SPECTRUM, its Renewable Energy Subsidiary Meralco Celebrates 25th Listing Anniversary January 13, 2017, the launch signals Meralco’s ERC Visits Meralco’s Meter Laboratory January 10, 2017 at the Philippine Sto
Slide 17: Luminaries 2017
Business Updates: Significant Events/ Customer Initiatives & Programs Luminaries 2017 (Celebrating Customer success) LGU Luminaries: Malabon, Pasay, BIZ Luminaries: Eng Bee Tin, Ever Imus represented by Mayor Len-Len Bilena, RDF Foods, Livestock and Oreta, Mayor Antonino Calixto, Mayor Feeds, Inc. r
Slide 18: Business Updates: Significant Events/Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs DOE invited Meralco to help craft INFO DRIVE ON RATES National Smart Grid Policy (DOE USec. Wimpy Fuentebella visit – Mar 21) 49,825 ACTIVATED 4,386 incremental (all time high) KLoad in Eat Bulaga’s “Juan for All, All for Juan”
Slide 19: Customer Engagements
Business Updates: Significant Events/ Customer Initiatives & Programs Customer Engagements
Slide 20: Meralco Bagged 12 Anvil Awards
Business Updates: Significant Events/ Customer Initiatives & Programs Meralco bagged a total of 12 Anvil Awards including Public Relations (PR) Team of the Year PR Team of the Year GOLD (7) SILVER (4) Meralco & Workplace: Changing the Way We Work Meralco Election 2016 Preparedness Program 7 Da
Slide 21: 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 24 April 2017
Slide 22: San Buenaventura Power Limited Co. (SBPL)
San Buenaventura Power Limited Co. (SBPL) 22 455MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon Construction of the power project is now on its 17th month and on schedule for commercial operations in mid 2019. Pulverizer and Boiler Area Control Building and STG Area
Slide 23: Redondo Peninsula Energy, Inc. (RP Energy)
Redondo Peninsula Energy, Inc. (RP Energy) 23 2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales Power plant site is ready for major construction activities starting off with the first phase (300 MW) which is targeted to be completed in 2020. The second phase (300 MW) shall follow within 12
Slide 24: Redondo Peninsula Energy, Inc. (RP Energy)
Redondo Peninsula Energy, Inc. (RP Energy) 24 2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales Power supply agreements (PSA) for the first 300 MW have been signed with Meralco (225 MW) and Aboitiz Energy Solutions, Inc. (75 MW) in April 2016 The ERC approval of the PSA is expected to be se
Slide 25: Atimonan One Energy, Inc. (A1E)
Atimonan One Energy, Inc. (A1E) 25 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon Environmental Compliance Certificate (ECC) obtained in October 2015 Grid Interconnection approved by the ERC in January 2017; Connection Agreement with NGCP executed in January 2017 Evalu
Slide 26: Atimonan One Energy, Inc. (A1E)
Atimonan One Energy, Inc. (A1E) 26 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon Turnover of resettlement housing for the affected families was completed last March 8. In April 2016, A1E signed a PSA with Meralco for the full output of the plant. The PSA is still subjec
Slide 27: St. Raphael Power Generation Corporation (SRPGC)
St. Raphael Power Generation Corporation (SRPGC) 27 2x350 MW Pulverized Coal-Fired Power Plant in Calaca, Batangas MGen and Semirara Mining and Power Corp. entered a Joint Venture Agreement for a 50-50 stake in the planned 2x350 MW coal power plant in Calaca, Batangas in 2016. A Power Supply Agr
Slide 28: St. Raphael Power Generation Corporation (SRPGC)
St. Raphael Power Generation Corporation (SRPGC) 28 2x350 MW Pulverized Coal-Fired Power Plant in Calaca, Batangas Development activities for the project are ongoing. An Environmental Compliance Certificate (ECC) for the project was issued in September 2015. Grid Impact Study for the proposed
Slide 29: Other Investments
Other Investments 29 PROJECTS IN OPERATION GLOBAL BUSINESS POWER CORPORATION (GBPC) MGen holds 14% equity interest in GBPC, the largest independent power producer in the Visayas with an existing portfolio totaling 854 MW (coal and diesel plants). PACIFICLIGHT POWER PTE LTD (PLP) PLP has been ope
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS Qi 2017
Slide 31: Electricity Revenues
66,576 60,173 1,852 2,322 Electricity Revenues = 64,724 Electricity Revenues = 57,851 51,699 45,050 12,801 13,025 Q1 2016 Q1 2017 Distribution Revenues Generation & Other Pass-through Charges Non-Electricity Revenues
Slide 32: Costs and Expenses and Capital Expenditures
1,737 1,004 6,150 3% 10% 2% Costs and Expenses 51,621 85% Purchased Power Operating Expenses Depreciation & Amortization Other Expenses 2,670 Capital Expenditures 45.4% 1,836 Q1 2016 Q1 2017
Slide 33: EBITDA, Net Income and Margins
8,151 8,151 7,922 7,922 4,817 4,590 4,598 4,547 13.5% 11.9% 13.5% 11.9% Margins 7.6% 7.6% 7.2% 6.9% Core EBITDA Reported EBITDA Core Net Income Reported Net Income Q1 2016 Q1 2017
Slide 34: Earnings Per Share
Earnings Per Share Core Earnings Per Share 4.274 4.034 4.073 4.080 1 Q1 2016 Q1 2017 Q1 2016 Q1 2017
Slide 35: Total Debt and Loan Repayment Schedule
TOTAL DEBT (in Million PhP) 40,071 (in Million PhP, except ratios) Q1 2016 Q1 2017 29,875 24,620 Cash 45,949 49,430 27,004 15,451 Gross Debt 29,875 40,071 2,871 Net Debt (16,074) (9,359) Q1 2016 Q1 2017 Current Portion Non-current Portion Gross Debt/EBITDA 0.92 1.26 LOAN REPAYMENT SCHEDULE (in Milli
Slide 36: Cash and Cash Equivalents
95,073 89,070 9,757 16,683 35,886 26,438 45,949 49,430 Q1 2016 Q1 2017 Cash and Cash Equivalents Held-to-maturity investments Available-for-sale investments
Slide 37: CIS Bayad Center and Densan System Partnership
CIS Bayad Center, Inc. and Densan System Co., Ltd. Partnership BAYAD CENTER A — 7,4|5°7-\ ere) COMPANY TT
Slide 38: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on April 24, 2017. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERAL
Manila Electric Company (Meralco) — Q1 2017 Earnings Presentation on 6ix