Manila Electric Co. · PSE:MER
Manila Electric — 9M 2026 Earnings Presentation
56 slides from Manila Electric's earnings presentation, Oct 28, 2026
Slide 1: Nine Months Ended September 30, 2026 Financial and Operational Highlights
NINE MONTHS ENDED SEPTEMBER 30, 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS Media, Investors and Analysts Briefing October 28, 2026
Slide 2: Financial Performance
Nine Months ended September 30, 2026 Financial Performance Media, Investors and Analysts Briefing
Slide 3: Meralco CCNI grew 12% to PhP44.8 billion
Meralco CCNI grew 12% to PhP44.8 billion as stronger contributions from the MGEN and RES businesses complemented the strength of the DU business Distribution Utility SUSTAINED DISTRIBUTION SALES VOLUME GROWTH, SUPPORTED BY CUSTOMER ENERGIZATIONS AND AN EXPANDING CUSTOMER BASE • CCNI contribution of
Slide 4: 9M 2026 vs. 2025 Financial Highlights
9M 2026 vs. 2025 Financial Highlights Amounts in Million PhP Reported Income Core EBITDA 75,852 p 44,680 67,227 p p 36,822 9M 2025 9M 2026 9M 2025 9M 2026 DU 41,054 p 1% Power Gen 21,419 p 7% Note: System-wide power sales volume at RES 5,914 p 7% 52,017 GWh, up 2% vs. 50,880 GWh in 2025
Slide 5: 9M 2026 vs. 2025 Quarterly CCNI
9M 2026 vs. 2025 Quarterly CCNI Amounts in Million PhP Q3 CCNI was 26% higher at PhP 18.3 billion versus PhP 14.9 billion in 2025, with all segments contributing to the increase p 9M p Q3 Q2 p Q1 p
Slide 6: 9M 2026 System-Wide Power Sales Volume
9M 2026 System-Wide Power Sales Volume Amounts in GWh System-wide power sales volume at 52,017 GWh, up 2% vs. 50,880 GWh in 2025 * Inclusive of sales volume of PELCO II
Slide 7: 9M 2026 vs. 2025 Revenues
9M 2026 vs. 2025 Revenues Amounts in Million PhP Rose 19% with higher revenues from the Gross 2026 443,036 Power Generation and RES businesses, Revenues 2025 371,765 and pass-through charges of the DU Up 21% due to (i) higher fixed charges from the interim Generation, extension of a PPA; (ii) fuel c
Slide 8: 9M 2026 vs. 2025 Costs & Expenses
9M 2026 vs. 2025 Costs & Expenses Amounts in Million PhP Total Costs 2026 397,698 Up 20% mainly due to higher and Expenses 2025 332,260 purchased power cost Increased by 20% reflecting higher generation Purchased 2026 338,690 and transmission costs billed by the Power Costs 2025 281,557 generation c
Slide 9: 9M 2026 Power Generation CCNI Contribution
9M 2026 Power Generation CCNI Contribution Amounts in Billion PhP PowerGen CCNI grew 24% to PhP 18.2 billion from PhP 14.7 billion in 2025, driven by higher energy delivered by thermal and renewable plants, and LNGPH’s full nine-month contribution 9M 2026 9M 2025 PhP 18.2B 14.7 PhP 14.7B p 11.6 LNG
Slide 10: 9M 2026 vs. 2025 Capital Expenditures
9M 2026 vs. 2025 Capital Expenditures Amounts in Million PhP Consolidated CAPEX largely for solar power plants, battery energy storage systems, and distribution network projects 3% 78,764 76,039 • New connections (PhP 7.5 billion) • Asset renewals (PhP 6.1 billion) 21,182 • Load growth (PhP 4.5 bi
Slide 11: 9M 2026 vs. 2025 Credit and Debt Profile
9M 2026 vs. 2025 Credit and Debt Profile Amounts in Million PhP Sep-26 Sep-25 9M 2026 Total Debt and Breakdown Cash, cash equivalents & short-term 107,144 89,718 investments Gross debt 262,344 213,430 Net debt 155,200 123,712 43% Gross debt/EBITDA 2.6 2.5 Net debt/EBITDA 1.5 1.5 Gearing ratio 0.8 0.
Slide 12: 9M 2026 vs. 2025 Core and Reported Earnings per Share
9M 2026 vs. 2025 Core and Reported Earnings per Share Amounts in PhP Core EPS was at PhP 39.774, up 12% year-on-year, while Reported EPS increased by 21% to PhP 39.642 CORE EPS REPORTED EPS 9M 2025 9M 2026 9M 2025 9M 2026
Slide 13: Operational Performance
Nine Months ended September 30, 2026 Operational Performance Media, Investors and Analysts Briefing
Slide 14: 9M 2026 Operational Highlights
9M 2026 Operational Highlights DISTRIBUTION UTILITY Business Drivers Service Performance Electricity Rate per kWh Energy Sales Feeder System Loss (12-MMA) Average Retail Rate 41,054 GWh 4.45% PhP 13.43 p0.8% vs 40,719 in YTD 2025 p0.33 ppt vs 4.12% in YTD 2025 p15% vs 11.63 in YTD 2025 DU Net System
Slide 15: Customer Report
Nine Months ended September 30, 2026 Customer Report Media, Investors and Analysts Briefing
Slide 16: 9M 2026 Consolidated Energy Sales in GWh
9M 2026 Consolidated Energy Sales in GWh Energy sales grew for the fifth consecutive month, resulting in growth of 0.8% as of 3Q 2026. Sustained customer energizations and warmer temperatures continued to drive momentum. 40,872 40,719 41,054 38,164 36,553 Sales Drivers: 34,398 32,539 14,758 14,520 1
Slide 17: Network Report
Nine Months ended September 30, 2026 Network Report Media, Investors and Analysts Briefing
Slide 18: 9M 2026 Major Project Updates
9M 2026 Major Project Updates Energized Projects (July - Sept 2026) 83 MVA 1.45 km ₱344.1 M 1STL 1 Reliability 1 Capacity Additional Capacity New STL Length Total CAPEX (ERC-filed) Supporting load growth and improving service reliability in the following areas: ▪ Quezon City ▪ Paranaque City ▪ Pasay
Slide 19: Regulatory Report
Nine Months ended September 30, 2026 Regulatory Report Media, Investors and Analysts Briefing
Slide 20: Competitive Selection Process for 900 MW Baseload
Competitive Selection Process (CSP) for 600 MW (net), effective February 2031 to increase by 300 MW (net), effect February 2032 (900 MW Baseload CSP) September 18, 2026: DOE issued the Certificate of Conformity (COC) for the 900 MW Baseload CSP. Per DOE, “[it] finds that Meralco’s TOR is consistent
Slide 21: Power Supply Agreements from CSP for 600 MW Baseload
Power Supply Agreements (PSAs) resulting from Competitive Selection Process (CSP) for 600 MW Baseload Requirement BACKGROUND ▪ The CSP commenced on June 23, 2026 and concluded on September 1, 2026 (“Bid Submission Deadline”). ▪ Out of the nine (9) bidders that submitted Expressions of Interest (“EOI
Slide 22: ERC Advisory on Extension of Disconnection Moratorium 1/2
ERC Advisory on Extension of Disconnection Moratorium until December 2026 and Flexible Payment (October 13, 2026) 1/2 1. Suspension of Disconnection ▪ Covered Consumers: Residential Consumers ≤200 kWh monthly consumption for non-payment of November to December 2026 bills [New Covered Billing Period]
Slide 23: ERC Advisory on Extension of Disconnection Moratorium 2/2
ERC Advisory on Extension of Disconnection Moratorium until December 2026 and Flexible Payment (October 13, 2026) 2/2 3. Extended Due Dates for Non-Covered Consumers ▪ Residential consumers with > 200 kWh monthly consumption, and non-residential consumers shall pay the previous Covered Billing Perio
Slide 24: Actual Weighted Average Tariff (AWAT 2 & 3)
Actual Weighted Average Tariff (AWAT 2 & 3) ERC Case No. 2025-178RC and 2026-040 RC (covering the Lapsed Period January 1 to December 31, 2025) July 31, 2026 – ERC released the Decision for the second AWAT Case. MERALCO is to refund a total amount of PhP 9.51B at an average refund rate of PhP 0.3448
Slide 25: ERC Decision on Pass-through (Over)/Under-Recoveries Cases
ERC Decision on various Meralco’s Pass-through (Over)/Under- Recoveries Cases for February 2011 to December 2022 ERC Case Nos. 2014-050 CF, 2017-060 CF, 2020-018 CF, and 2023-046 CF August 2, 2026: Meralco received a copy Estimated of the ERC Decision, promulgated on 31 (Over)/Under- (Refund)/ (refu
Slide 26: Recent Legislative Developments on the System Loss Bill
Recent Legislative Developments on the System Loss Bill There are substantial differences between the House and Senate substitute bills. The House version represents a significant improvement, having incorporated many of MERALCO’s proposed amendments and recommendations. Engagement with the Senate r
Slide 27: Meralco First Regulatory Period (1RP) Approval
Meralco First Regulatory Period (1RP) Approval Media, Investors and Analysts Briefing
Slide 28: 1RP Timeline
1RP Timeline Activity Date 1RP Reset Revenue + PIS Application with RY2027 Rate Translation Filing February 2, 2026 Submission of Complete Capex Justifications February 9, 2026 MERALCO’s Expository Presentation March 3, 2026 MERALCO’s Pre-Trial Briefing March 10, 2026 Presentation of MERALCO’s Witne
Slide 29: Overview of Meralco Proposal versus ERC Approval
Overview of MERALCO Proposal versus ERC Approval Meralco ERC Level of In ₧ Billion Remarks Proposal Approval Approval Removal of 25% contingency, inflation factor, duplicate Opening RAB 358.9 205.5 57% asset records. Reduction in RY 2026 capex. Reduction due to cost benchmarking, scope adjustments,
Slide 30: Approved 1st RP Annual Revenue Requirement, Sales, and SMAP
Approved 1st RP Annual Revenue Requirement (ARR), Sales, and Smoothed Maximum Average Price (SMAP) In ₧ Billion RY 2027 RY 2028 RY 2029 RY 2030 1RP Total Return on Capital 30.22 34.32 39.12 43.37 147.02 @ 13.79% WACC Depreciation 12.53 14.45 17.22 19.39 63.59 Opex 25.57 30.21 35.20 38.45 129.43 Othe
Slide 31: Opening Regulatory Asset Base (RAB)
Opening Regulatory Asset Base (RAB) ▪ From MERALCO proposed RAB of 359B, the ERC removed the 25% contingency and inflation factors Calculation of Opening RAB (in ₧ Billion) equivalent to around 140 to 145B (which represents a gap between the proposed rate of 2.34 and 1.87) ▪ The initial value of the
Slide 32: Sales Forecast
Sales Forecast ▪ ERC adopted MERALCO’s forecast as-is ▪ This includes an 8.4 billion kWh forecast of lost sales due to solarization and minimal contribution of EV sales ▪ Under PBR’s volume-risk principle, any additional volume over the forecast levels result in revenue gains for MERALCO, and vice v
Slide 33: CAPEX Forecast
▪ ERC approved a total of 183.5 B CAPEX (in CAPEX Forecast real 2025 prices, with CWIP) to be included in the RAB Roll-Forward. This is 72% approval level compared to the 249.5 B proposal (in real 2025 prices). ▪ Broken down, approval level for Carry-over CAPEX (in ₧ Billion) CAPEX is 73% (21.0 out
Slide 34: OPEX Forecast
OPEX Forecast ▪ OPEX was determined by ERC by using the actual RY 2025 level of 23.20 B as base year and then determining an efficient RY 2025 OPEX (in ₧ Billion) level of 20.7B by making downward adjustments. ▪ Forecasts are made subjecting the efficient base year to escalation factors. One-off ite
Slide 35: Performance Incentive Scheme (PIS) for 1st RP
Performance Incentive Scheme (PIS) for 1st RP Price-linked scheme ▪ Generally tighter targets for 1RP, based on historical performance of MERALCO ▪ Indices adopted by ERC are substantially the same as those in 3RP, except that: o Distribution Feeder Loss considered (lower weight), not Total SL propo
Slide 36: Performance Incentive Scheme: Guaranteed Service Level
Performance Incentive Scheme (PIS) for 1st RP Guaranteed Service Level (GSL) scheme ERC accepted the GSL indices recommended by MERALCO, but with lower pay-out level
Slide 37: Major changes to Distribution, Supply, and Metering Charges
Major changes to Distribution, Supply, and Metering (DSM) Charges 1. Contestable customers now have higher supply and metering charges compared to captive customer based on cost-to-serve. 2. Distribution charges will not be imposed on FIT-all and GEA-all embedded generators customers. 3. For other e
Slide 38: Bill impact to selected customers in RY 2027
Bill impact to selected customers in RY 2027 (Amounts shown are for total DSM Charges only) Incr Consumption Current Rates Approved Incr (Decr) Customer Class Demand (kW) (Decr) (kWh) (PhP) Rates (PhP) (PhP) (%) 50 - 112.04 113.74 1.70 1.49% Residential and 100 - 202.70 204.47 1.77 0.87% General Ser
Slide 39: PowerGen Highlights
Nine Months ended September 30, 2026 PowerGen Highlights Media, Investors and Analysts Briefing
Slide 40: Operational health and safety results
Operational health and safety results GEN >107 million safe man-hours* 9M 2026 First Aid Cases Recordable Cases Loss Time Accident Fatality *Running total
Slide 41: 9M 2026 Energy delivered up by 7%
9M 2026 Energy delivered up by 7% versus 9M 2025 (GEN Year-to-Date Performance in GWh Business Unit 9M 2025 9M 2026 % change MGEN Thermal 4,082 4,339 A 6% (7? Energy, Inc. Fs MOEN San Buenaventura Powar Lid. Ca. 2,664 2,633 v1% C)GEN Parte ahh omer 4,290 4,329 A 1% w/GEN LNGPH* 8,467 8,484 A 0.2% MG
Slide 42: 9M 2026 Power Generation Results of Operations
9M 2026 Power Generation (Results of Operations) (GEN Plant Availability Energy Delivered 9M 2025 9M 2026 9M 2025 9M 2026 93.6% 92.7% 20,060GWh PARCER ey) Vv 1% vs. 9M 2025 A7% vs. 9M 2025 Boca Nain Me, uum t Ona
Slide 43: PacificLight breaks ground on Singapore hydrogen-ready power plant
MGEN’s Singapore-based subsidiary, PacificLight Power, broke ground on a $$1.2 billion hydrogen- ready power plant on Jurong Island, Singapore. The 670 MW facility will be Singapore’s first gas turbine with large-scale battery storage, as well as its largest and most efficient plant, generating Brea
Slide 44: Philippines' first large-scale onshore LNG storage facility commissioned
Philippines’ 1st large-scale onshore LNG storage facility is commissioned in llijan; Malampaya supply to LNGPH restarts As of September 2026, the 1,200 MW llijan Plant has been using Malampaya gas again. This is after the completion of restoration work at the gas receiving facility and 14.7-km Taban
Slide 45: PEDC Unit returns to service
PEDC Unit 3 returns to service (2/GEN MERALCO Panay Energy Development Corporation (PEDC) Unit 3 has returned to service as of Oct 23, 2026. With PEDC Unit 3 now synchronized, our attention turns to close monitoring, progressive operating validation, and the continuing technical assurance needed to
Slide 46: Meralco, MGEN tap Sargent & Lundy for SMR feasibility study
ralco, MGEN tap Sargent & Lundy for comprehensive (GEN SMR feasibility study MERALCO Meralco and MGEN have selected U.S.-based engineering firm Sargent & Lundy, in partnership with local engineering firm AMH Philippines, Inc. (AMH), to undertake a comprehensive feasibility study for the potential de
Slide 47: MGEN Renewables eyes 2026 profit turnaround
MGEN Renewables, Inc. (formerly known as SP AA Vew Energy Corporation) Eyes 2026 Profit GEN urnaround as MTerra Solar Drives Earnings MGENR Renewable Energy Capacity Portfolio Total Net Saleable, all solarin MWac SP New Energy Corporation (SPNEC), now renamed to +8x MGEN Renewables, _ Inc. poner 7 (
Slide 48: MGEN Renewables share swap agreement
MGEN Renewables Inc. share swap agreement to broaden GEN operating renewable energy portfolio Renewable MGEN Renewable Energy, Inc. will transfer its shareholdings in Greenergy for Global Inc.; Greentech Solar Energy, Inc.; CACI Power Corporation; Nuevo Solar Energy Corporation; and PowerSource — Fi
Slide 49: MTerra Solar Phase 1 Begins Commercial Operations
MTerra Solar Phase 1 Begins (3) TerraSolar (7/GEN 28m" Commercial Operations *eowvans Fe; Af) Terra Solar MTerra Solar Phase 1 has officially declared It confirms that the facility has met the commercial operations for 600MWac mid-merit requirements to safely and reliably connect and capacity under
Slide 50: MTerra Solar Phase 2 construction
Bl ei i | Li ee ad Fetes | oe her Fa t J > i. rm | i a3 Renewables’) Background: M'Terra Solar Phése 2 Construction site Es. aoe ee £ } an MERALCO (3) Terra Solar Solar installed capacity 3,300 MWh BESS energized 623 GWh Energy delivered (PV+BESS) 741 units BESS Installed
Slide 51: MGEN, VITRO explore power-enabled digital infrastructure
MGEN, VITRO Join Forces to Explore Sustainable, Power-Enabled Digital Infrastructure MGEN and VITRO REIT, Inc. (VITRO), a subsidiary of ePLDT within the PLDT Group, have formalized their strategic collaboration through a Memorandum of Understanding (MOU) for the joint feasibility study and developme
Slide 52: MGEN RES positions more businesses for greater electricity choice
AGEN RES Positions Mor ilinpi Retail Electrici GEN RES Positions More Philippine (2,)GEN le ty Businesses for Greater Electricity Choice RES MGEN RES with Toyota Santa Rosa (TSR) executives. With the RCOA threshold now lowered to 100 kilowatts from 500, we want businesses to get from MGEN RES, power
Slide 53: Powering a better tomorrow
Powering a better tomorrow GEN Php 20.3 M Committed to support community programs across Luzon and Visayas Reaching 3,000 individuals Mano Amiga Partnership providing world- class education to less fortunate children Improved learning spaces
Slide 54: One Meralco Sustainability Updates
One Meralco Sustainability Updates Media, Investors and Analysts Briefing
Slide 55: UN Private Sector Forum and Bahaghari Awards
2026 United Nations Private Sector 5th Bahaghari Awards by Philippine Forum on the Energy Transition: Financial & Inter-industry Pride: Meralco brings Philippine Voice to the Global Stage Meralco: First-ever Emerging Changemaker of the Year Meralco’s Long-term Sustainability Strategy (LTSS) recogniz
Slide 56: 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 t
Manila Electric Company (Meralco) — 9M 2026 Earnings Presentation on 6ix