Manila Electric Co. · PSE:MER
Manila Electric — 9M 2024 Earnings Presentation
40 slides from Manila Electric's earnings presentation, Oct 28, 2024
Slide 1: Nine Months Ended September 30, 2024 Financial and Operating Results
Osa aN lp, ML coment Of see (2) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 FINANCIAL AND OPERATING RESULTS Investors and Analysts’ Briefing October 28, 2024
Slide 2: Financial Results
Sosa ade Me mcent Oise (Z) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 FINANCIAL RESULTS Investors and Analysts’ Briefing October 28, 2024
Slide 3: 3Q 2024 and 9M 2024 Highlights
3Q 2024 9M 2024 ➢ Highest 3Q results with the continued ➢ Record CCNI of PhP 35.1 billion, 17% higher momentum across all business segments year-on-year: • 3Q CCNI at PhP 11.9 billion from • 17% broad-based growth • 4% increase in sales volume • DU share at 59%; • Higher contribution from Global Bus
Slide 4: Core Net Income and Core EBITDA
p 16% 58,971 50,805 Q3 CCNI up by 10% vs. last year 19,221 p 9% • 4% increase in DU volume p 17% • Continuing contributions from PacificLight, 17,644 GBP and SBPL 35,095 • Higher RES contribution from trading gains, 30,023 better negotiated retail rates and contribution 11,888 p 10% 21,959 p 24% 10,
Slide 5: p 19% 28,399 p p 23% 21,105 p 16% 50,805 q 10% 73,045 p
p 19% 28,399 p p 23% 21,105 p 16% 50,805 q 10% 73,045 p 6% 335,231 40,872 p 7% 11,556 p 3% q 13% 102,075 5,098 q 3% p 4% 307,519
Slide 6: Increase in CCNI driven by higher sales volumes and continuing contributions
Increase in CCNI driven by higher sales volumes of the Distribution Utility and continuing contributions of the unregulated power and non-power businesses Unregulated businesses: Share in total CCNI at 41% with increased contribution from RES business, GBP’s higher WESM margin and revenue from reser
Slide 7: Gross Revenues
Gross 2024 Up by 6% mainly driven by higher sales Revenues 2023 volumes of the DU Generation, 2024 7% increase due to higher volumes and increase in Transmission transmission charge due to higher NGCP ancillary service 2023 and reserve market charges. and others Distribution revenue increased by 7%,
Slide 8: Total Costs and Expenses
Total Costs Up 4% due to higher purchased power and Expenses cost, OPEX of the DU and power plant maintenance cost Increased by 5% due to higher volume and Purchased transmission charges, partly offset by lower average Power Costs generation cost Increased by 8% due to (i) intensified maintenance wo
Slide 9: Consolidated CAPEX
Consolidated CAPEX driven by distribution network improvement projects, development of solar projects, and facilities for the towers business p 23% Mostly Networks CAPEX for new connections, asset renewals, and load growth projects, among others • Development of three (3) solar power plants: o 12.6
Slide 10: Contributions of Power Generation Companies
CCNI contribution tempered by scheduled outages of several operating companies, and lower margins of PacificLight as the Singapore market stabilizes PhP 9.5 Billion PhP 2.8 Billion PhP 2.2 Billion PhP 51 Million Core Net income q 29% vs. 2023 q 2% vs. 2023 p 62% vs. 2023 q 48% vs. 2023 Meralco Stake
Slide 11: Cash, Short-term Investments and Debt
Sep-24 Sep-23 %△ 2024 Total Debt and Breakdown Cash & cash equivalents 65,537 73,045 (10.3%) Short-term investments 9,075 7,194 26.1% Gross debt 89,148 102,075 (12.7%) Net debt 14,536 21,836 (33.4%) Gross debt/EBITDA 1.2 1.6 (26.2%) 46% Net debt/EBITDA 0.2 0.3 (43.8%) Gearing ratio 0.1 0.2 (41.6%) 5
Slide 12: Core EPS and Reported EPS
Core EPS at PhP 31.137, up by 17% while Reported EPS amounted to PhP 29.948, higher by 19% versus the same period last year 2023 2024 2023 2024 CORE EPS REPORTED EPS
Slide 13: S&P Upgrade to BBB, Outlook Stable
Manila Electric Company Upgraded To 'BBB' From 'BBB-' On Robust Financials; Outlook Stable BBB stable BBB- positive BBB- BBB- BBB- BB+ stable stable stable BB+ positive BB+ stable BB BB BB- stable B+ B+ stable B+ B stable stable B- B- positive B- negative stable CCC CC Aug Oct Nov Mar May Jul Feb De
Slide 14: Operating Results
Sosa ade Me mcent Oise (Z) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 OPERATING RESULTS Investors and Analysts’ Briefing October 28, 2024
Slide 15: 9M 2024 Operational Highlights
9M 2024 Operational Highlights DISTRIBUTION Business Drivers Service Performance Electricity Rate Energy Sales System Loss (12-MMA) Average Retail Rate 40,872 GWh 6.04% PhP 10.44 per kWh 7.1% vs 38,164 in 9M 2023 40.23 ppt vs 5.81 in Sep 2023 'V0.6% vs 10.51 in 9M 2023 DU Net System Input Total SAIF
Slide 16: Customer Report
Sosa ade Me mcent Oise (Z) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 CUSTOMER REPORT Investors and Analysts’ Briefing October 28, 2024
Slide 17: Energy Sales
gy Sales incwn Grew 7.1% vs. 2023 driven by continued growth of Commercial and Residential segments, as well as sustained recovery of Industrial segment 35,005 34,398 32,539 a DU Sales Drivers: Residential Increased 10.4% with new energizations, upswing in organic per capita consumption, and warmer
Slide 18: Network Report
Sosa ade Me mcent Oise (Z) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 NETWORK REPORT Investors and Analysts’ Briefing October 28, 2024
Slide 19: Network Project Updates
9M 2024 Network Project Updates Installation of 3rd 300 MVA PXF at Duhat 230 kV-115 kV Delivery Point Substation = Energized on July 28, 2024 * This project will address the expected overloading of the power transformers in the said substation during N-1 contingency and will ensure sufficient interr
Slide 20: Regulatory Report
Sosa ade Me mcent Oise (Z) MERALCO NINE MONTHS ENDED SEPTEMBER 30, 2024 REGULATORY REPORT Media, Investors and Analysts’ Briefing October 28, 2024
Slide 21: Prime, et al. vs. Meralco Civil Case
Prime, et al. vs. MERALCO, Civil Case No. 1039, RTC Br. 267 Taguig City * July 30, 2024: Prime Energy Resources Development B.V., Prime Oil and Gas, UC38 LLC and PNOC Exploration Corp. (“Prime, et al.”) filed a Complaint for TRO/Writ of Preliminary Injunction and Permanent Injunction seeking to enjo
Slide 22: Competitive Selection Process for Baseload Requirement
Competitive Selection Process (CSP) for Procurement of (00 MW Baseload Requirement, effective September 2025 August 30, 2024: The Bids and Awards Committee for Power Supply Agreement (BAC-PSA) found the Bids submitted by the following Bidders to be the Best Bids, whose total offered contract capacit
Slide 23: Competitive Selection Process for Mid-Merit Requirement
Competitive Selection Process (CSP) for Procurement of 400 MW Mid-Merit Requirement, effective September 2025 October 11, 2024: BAC-PSA found the Bid submitted by GNPower Dinginin Ltd. Co. (GNPD) to be the Best Bid, with Total Headline Rate of PhP7.5413/kWh. GNPD’s offered contract capacity (400 MW)
Slide 24: First Gas PPAs Incremental Costs
First Gas PPAs [First Gas Power Corporation-Sta Rita (FGPC-SR) and FGP Corp.-San Lorenzo (FGP-SL) Incremental Costs due to New Gas Sale and Purchase Agreements (GSPA)] = On August 13, 2024, ERC issued a Notice of Resolution stating that MERALCO is authorized to reflect the adjusted rates from the Fi
Slide 25: Franchise Renewal Update
Franchise Renewal Update On September 24, 2024, the House of Representatives approved on Second Reading House Bill No. 10926 which seeks to renew the franchise granted to MERALCO for another 25 years. = Rep. Joey Salceda delivered a sponsorship speech for HB No. 10926, stating that MERALCO had clear
Slide 26: Power Generation Operating Results
Osa aN lp, ML coment Of see NINE MONTHS ENDED SEPTEMBER 30, 2024 POWER GENERATION OPERATING RESULTS Investors and Analysts’ Briefing October 28, 2024
Slide 27: Power Generation Updates: Safety
Power Generation Updates Safety is our Priority! 38 Million Total Running Safe Manhours as of September 25, 2024 Loss Time Accident First Aid Case Recordable Case for the month of September 2024 Fatality
Slide 28: Growth in Energy Delivered
Power Generation Updates 3% Growth in Energy Delivered Year-to-Date Performance in GWh Plant 9M 2024 9M 2023 % Change 4,281 4,619 v7% 2,493 1,962 A27% 4,299 4,337 V0.9% (2) Steen 483 254 490% (7 MERALCO i) GEN 11,556 11,171 43% Note: Energy delivered is comprised of contracted capacities and partici
Slide 29: Terra Solar is On Track
Power Generation Updates Terra Solar is On Track! —\ * Certified by the Department of Energy as Energy Project of National Significance LY e boi Secured Green Lane Certification hoagp or | from the Board of Investment INVESTMENTS MERALCO (3) Terra Solar Ca Partnered with MIESCOR IESCOR for design an
Slide 30: Largest Foreign Greenfield Investment
Power Generation Updates PH Largest Foreign Greenfield Investment ) N & = MERALCO and SPNEC sealed the largest foreign direct investment for a greenfield infrastructure project in the Philippines with Actis - a leading global investor in sustainable infrastructures The strategic partnership with Act
Slide 31: Increasing our Renewable Energy Source
Power Generation Updates Increasing our Renewable Energy Source! "GA-ENERGY CORR ae): Nts sie VENA ENERGY MGreen signed an investment agreement with Vena Energy to jointly develop the 450 MWac Bugallon Solar Power Project in Bugallon, Pangasinan.
Slide 32: Chromite Gas Holdings LNG Facility
Power Generation Updates Increasing our Renewable Energy Source! Chromite Gas Holdings, Inc. is poised to be the country's first and most expansive integrated liquefied natural gas (LNG) facility in Batangas. Requirements for clearance submitted to the Philippine Competition Commission. Currently aw
Slide 33: Powering the Good Life
Power Generation Updates Powering the Good Life LE People 150 households powered by home solar kit = MGEN with OMF distributed solar kits to host communities Power 483 GWh of Clean Power Generated Record high of delivered energy of MGREEN | — | Planet More than 1.5 million trees planted MGEN’s initi
Slide 34: One Meralco Sustainability Report
Osa aN lp, ML coment Of see LIFE NINE MONTHS ENDED SEPTEMBER 30, 2024 ONE MERALCO SUSTAINABILITY REPORT Investors and Analysts’ Briefing October 28, 2024
Slide 35: Inclusion in FTSE4Good indices
Meralco maintained its inclusion in the FTSE4Good indices through distinctive performance across ESG standards ww (2) MERALCO FTSE4Good Index Series Meralco FTSE Russell ESG Score Set of global sustainability indices that q 2—eo FTSE4Good measure performance in key ESG areas: rte ate ac) 22) || lene
Slide 36: Improved Sustainalytics ESG Risk Rating
Meralco improved its Sustainalytics ESG Risk Rating with strong management of material ESG risk areas mi Covers 16,000+ companies, rating them on & SUSTAINALY TICS exposure to and management of material, ESG Risk Ratings industry-specific ESG risks (2) MERALCO ¢ Meralco included in top 39% of Electr
Slide 37: Greening the MOC
Launched ‘Greening the MOC, helping transform our headquarters into the ‘lungs of Ortigas’ To be Planted by end-2024: 1,001 Trees Greening the MOC Kickoff: September 16, 2024* Area 2 376 trees ae x Bowerplenis Sample Trees OneforTrees 2.3M+ trees planted 6 urban farms in Meralco ae ae ee] across the
Slide 38: Winning Stevies in the International Business Awards
nes on the global stage, winning 8 Stevies in the ational Business Awards THE INTERNATIONAL : Raymond B Ravelo _ BUSINESS AWARDS fi | r j Meralco Chief Sustainability Officer, Movem CEO : Qg Back-to-back Winner * Known as “the Olympics for the workplace ~ 5 Leaded = jeralco Powering the Good Life ES
Slide 39: 2024 International Business Awards
° Meralco once again shines on the global stage, winning 8 § 2024 International Business Aw Achievement in Diversity and Inclusion #Mbrace: Meralco’s Diversity and Inclusion Program @ Back-to-back Winner Achievement in Human Resources * Known as “the Olympics for the workplace PEOPLE : ay Nurturing
Slide 40: 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
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