Manila Electric Co. · PSE:MER
Manila Electric — H1 2024 Earnings Presentation
29 slides from Manila Electric's earnings presentation, Jul 29, 2024
Slide 1: Half Year Ended June 30, 2024 Financial and Operating Results
Sosa ade Me mcent Oise (2) MERALCO HALF YEAR ENDED JUNE 30, 2024 FINANCIAL AND OPERATING RESULTS Investors and Analysts Briefing July 29, 2024
Slide 2: Financial Results
(Z) MERALCO HALF YEAR ENDED JUNE 30, 2024 FINANCIAL RESULTS Investors and Analysts Briefing July 29, 2024 6 Sosa ade Me mcent Oise
Slide 3: p 25.7% 17,853 p p 69.8% 51,012 p 19.9% 33,161 p 41.2% 14,121 p
p 25.7% 17,853 p p 69.8% 51,012 p 19.9% 33,161 p 41.2% 14,121 p 5.6% 224,820 26,954 p 9% 7,633 p 3% 3,343 q 4% p 2.7% 206,982 3
Slide 4: Increase in CCNI driven by higher sales volumes
Increase in CCNI driven by higher sales volumes of the Distribution Utility and continuing contributions of the unregulated power sector and other non-power businesses Unregulated businesses: Share in total CCNI at 45% as the increase in RES and GBP’s higher WESM margin and revenue from reserves mar
Slide 5: Q2 CCNI up by 29% vs. last year
p 20% 39,750 33,161 p 21% 21,959 p 24% Q2 CCNI up by 29% vs. last year 23,207 17,650 • 8% increase in DU volume 19,205 • Continuing contributions from 13,124 p 29% Power Generation and RES units Q2 10,158 17,791 p 15% 15,511 9,047 10,083 p 11% Q1 2023 2024 2023 2024 Core Net Income Core EBITDA 5
Slide 6: Gross Revenues
Gross 2024 Up by 6% mainly driven by higher sales Revenues 2023 volumes of the DU 7% increase due to higher volume, as lower WESM Generation, 2024 prices, decrease in international coal prices, and lesser Transmission emergency PSA charges offset the impact of Peso 2023 depreciation, higher Malampay
Slide 7: Total Costs and Expenses
Total Costs Up 3% due to higher purchased power and Expenses cost and DU OPEX Purchased Increased by 4% due to higher volume, partly offset Power Costs by lower average cost per kWh Increased by 8% due to (i) rigorous maintenance activities OPEX of DU facilities; (ii) higher cost of software mainten
Slide 8: Consolidated CAPEX
Consolidated CAPEX driven by distribution network improvement projects, development of solar projects, and facilities for the towers business Largely Networks CAPEX that covered new connections, asset renewals, p 41% and load growth projects, among others • Development of three solar power plants: o
Slide 9: Power generation CCNI contribution
CCNI contribution tempered by scheduled outages of several operating companies, and lower margins of PacificLight as the Singapore market stabilizes PhP 6.4 Billion PhP 1.7 Billion PhP 1.5 Billion PhP 131 Million Core Net income q 29% vs. 2023 q 3% vs. 2023 p 78% vs. 2023 p 68% vs. 2023 Meralco Stak
Slide 10: Total Debt and Breakdown
Jun-24 Jun-23 %△ 2024 Total Debt and Breakdown Cash & cash equivalents 86,615 51,012 69.8% Short-term investments 3,224 11,397 (71.7%) Gross debt 99,563 101,476 (1.9%) Net debt 9,724 39,067 (75.1%) Gross debt/EBITDA 1.30 1.62 (19.7%) 41% Net debt/EBITDA 0.13 0.62 (79.6%) Gearing ratio 0.07 0.34 (78.
Slide 11: Core EPS and dividend
Core EPS was at Php 20.590, up 21% versus Php 17.039 in 1H2023; dividend of Php 10.295 representing 50% of Core EPS 60% 70% 10% 75% 70% 65% 20% 25% 20% 50% 15% 50% 50% 50% 50% 50% 50% Year-end stock price 317.00 292.00 295.20 298.8 399.00 352.00* 388.00* Dividend yield 5.1% 5.2% 4.4% 5.4% 4.9% 5.5%
Slide 12: Operating Results
(Z) MERALCO HALF YEAR ENDED JUNE 30, 2024 OPERATING RESULTS Investors and Analysts Briefing July 29, 2024 6 Sosa ade Me mcent Oise
Slide 13: 1H 2024 Operational Highlights
1H 2024 Operational Highlights DISTRIBUTION Business Drivers Service Performance Electricity Rate Energy Sales System Loss (12-MMA) Average Retail Rate 26,954 GWh 6.07% PhP 10.27 per kWh 48.7% vs 24,792 in 1H 2023 40.29 ppt vs 5.78 in Jun 2023 '¥3.8% vs 10.68 in 1H 2023 DU Net System Input Total SAI
Slide 14: Energy Sales Growth
gy Sales incwn Grew 8.7% vs. 2023 driven by sustained growth of Commercial and Residential segments, as well as recovery of Industrial segment 22,823 22,663 23,968 21,139 8.7% 2019 2020 2021 2022 2023 2024 Parent is 99% | CEDC + SCPC is 0.1% | Flat Streetlights account for < 1%, YTD 2024: 73 GWh DU
Slide 15: Network Project Updates
1H 2024 Network Project Updates Development of Pallocan West 69 kV - 13.8 kV Gas-Insulated Switchgear (GIS) Substation Energized on May 16, 2024 CAPEX Filing: RY2023 (PhP 449.97 Million) This is the first smart 69 kV GIS substation in the South area. It has an initial capacity of 50 MVA, with two (2
Slide 16: Network Project Updates
1H 2024 Network Project Updates Expansion of Eton Centris 115 kV-34.5 kV Development of Napindan 115 kV Replacement of 34.5kV Switchgear No. 1 GIS Substation (2nd Bank) Switching Station at Meycauayan Substation = Energized on June 26, 2024 = Energized on June 28, 2024 = Energized on June 28, 2024 =
Slide 17: Update on 5RP Application
Update on 5RP Application September 28, 2023: MERALCO filed an Omnibus Motion to Withdraw and Re-file Application with a new period of RY2025-28 and proposed that RY2023-24 be treated similarly to the Lapsed Period with a PhP 1.3522/kWh rate. May 3, 2024: MERALCO received ERC Order dated May 3, 2024
Slide 18: Update on Actual Weighted Average Tariff (AWAT) Case
Update on Actual Weighted Average Tariff (AWAT) Case * June 16, 2022: To recall, ERC issued Decision approving MERALCO’s AWAT Application o The AWAT Decision resolved to close the Lapsed Period of MERALCO (July 1, 2015 to June 30, 2022) thru a True-Up mechanism wherein the last ERC-approved Final ra
Slide 19: 2024 MERALCO-SPPC 1,200 MW Power Supply Agreement
2024 MERALCO-SPPC 1,200 MW Power Supply Agreement - ERC Provisional Authority issued for 910 MW March 5, 2024: As the winner of the 1,200 MW CSP, SPPC with MERALCO filed the 2024 1,200MW PSA for approval with prayer for provisional authority and/or interim relief (“PA/IR”) with the ERC. June 11, 202
Slide 20: CSP for Procurement of PSA for 350MW
CSP for Procurement of PSA for 350MW (AC, Net) effective March 2025 to increase by 150 MW (AC, net), effective March 2026 Following CSP commenced on 25 May 2024, the Bids and Awards Committee-Power Supply Agreements (BAC- PSA) found the Bids submitted by the following Bidders to be the Best Bids, wh
Slide 21: Franchise Renewal Update
Franchise Renewal Update HOUSE BILL NO. HBN 9793 HBN 9813 HBN 10317 HON. JOEY SARTE HON. RUFUS HON. LORD ALLAN JAY AUTHOR SALCEDA RODRIGUEZ JR. Q. VELASCO (2"4 District, Albay) (29 District, CDO) (Lone District, Marinduque) DATE FILED January 18, 2024 January 22, 2024 May 2, 2024 (REFERRAL TO CTTEE)
Slide 22: Expressions of support for franchise renewal
* Filings of formal expressions of support from business groups, industry associations, and advocacy group on the renewal of MERALCO’s franchise: | . . Date Filed with the House Committee on Legislative Franchises 1.__ Management Association of the Philippines (MAP) May 30, 2024 2. Semiconductor and
Slide 23: Power Generation Operating Results
MERALCO MGEN GOO POWER GENERATION GLOBAL BUSINESS POWER HALF YEAR ENDED JUNE 30, 2024 POWER GENERATION OPERATING RESULTS Investors and Analysts Briefing July 29, 2024
Slide 24: 1H 2024 Power Generation Operating Highlights
1H 2024 Power Generation Operating Highlights Energy Delivered in GWh Year-to-Date Performance Plant 1H 2024 1H 2023 % Change Goo 2,870 3,095 v7% lenis ron 1,544 1,244 424% @ PacificLight 2,875 2,893 v1% wow MGREEN 344 167 4.106% Total 7,633 7,398 3% The Power Generation Group delivered 7,633 GWh fo
Slide 25: Low-Carbon Energy Transition Journey
Low-Carbon Energy Transition Journey 1H 2024 Updates @ PacificLight In May, PacificLight was awarded by the Energy Market Authority (EMA) under the Singapore government's Ministry of Trade and Industry the right to build, own, and operate two power units with fast start generation capacity that will
Slide 26: Low-Carbon Energy Transition Journey
Low-Carbon Energy Transition Journey 1H 2024 Updates nA VENA REEN ENERGY RENEWABLE ENERGY MGreen’s 75MWac solar power project with Mitsui’s Mit- MGreen closed an investment agreement with Vena Energy, Renewables Philippine Corporation in Baras, Rizal is currently for the development, construction, a
Slide 27: Low-Carbon Energy Transition Journey: Terra Solar
ow-Carbon Energy Transition Journey Terra Solar Philippines, Inc. As of July 15, 2024, the project has achieved 54% overall development. Key milestones reached include the following: = Land Control = Permits (Pre-development) = Solar Farm Development = Procurement = Interconnection Development = PV
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) — H1 2024 Earnings Presentation on 6ix