Manila Electric Co. · PSE:MER

Manila Electric — H1 2026 Earnings Presentation

32 slides from Manila Electric's earnings presentation, Jul 29, 2026

  1. Slide 1: First Half Ended June 30, 2026 Financial and Operational Highlights

    FIRST HALF ENDED JUNE 30, 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS Media, Investors and Analysts Briefing July 29, 2026

  2. Slide 2: Financial Performance Report

    FIRST HALF ENDED JUNE 30, 2026 FINANCIAL PERFORMANCE REPORT Media, Investors and Analysts Briefing

  3. Slide 3: Distribution Utility and Power Generation highlights

    Distribution Utility • CCNI contribution of PhP 12.7 billion; 48% of CCNI • Sales volume slightly lower at 26,967 GWh vs. 27,091 GWh in 2025 Power Generation • CCNI contribution at PhP 10.5 billion, up 11%; 39% of CCNI • Sales volume at 14,178 GWh, up 12% from 12,644 GWh last year driven mainly by t

  4. Slide 4: Power Generation and Retail Electricity Supply

    Power Generation • MGen Renewables o MTerra Solar Phase 1 began delivering commissioning power in March 2026. It generated 151.1 GWh from its combined PV and BESS facilities Retail Electricity Supply (RES) • Sales volume of 3,864 GWh up by 9%, driven by continuing customer acquisitions and synergies

  5. Slide 5: Reported Income, Core EBITDA and Sales Volumes

    Reported Income Core EBITDA 43,187 44,833 45,000  11% 26,296 23,635 40,000  4%  3.8% 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 1H 2025 1H 2026 1H 2025 1H 2026 Sales Volumes (in GWh) vs. last year DU 26,967  0% Power Gen 14,178  12% Note: System-wide power sales volume at RES 3,864  9%

  6. Slide 6: System-wide power sales volume at 34,328 GWh

    System-wide power sales volume at 34,328 GWh, up 2% vs. 33,778 GWh in 2025 Distribution Utility 27,425 GWh* * Inclusive of sales volume of PELCO II 7,409 16,852 GWh MGEN GWh 14,178 GWh Third Parties 11,295 GWh within PH 6,203 GWh 260 (3,320 GWh within PH; 2,883 GWh PacificLight) GWh 2,904 GWh 306 wi

  7. Slide 7: Gross Revenues

    Rose 16% driven by higher pass-through Gross 2026 generation and transmission charges of the DU, and higher Power Generation and Revenues 2025 RES revenues Up 19% due to (i) higher fixed charges from the interim Generation, extension of a PPA; (ii) fuel cost recovery adjustments 2026 for 4 generatio

  8. Slide 8: Total Costs and Expenses

    Total Costs 2026 Up 17% due to higher purchased and Expenses 2025 power cost Purchased Increased by 19% reflecting higher generation 2026 and transmission costs billed by the Power Costs 2025 generation companies and NGCP 1% decrease driven by continued cost OPEX management and operational efficienc

  9. Slide 9: PowerGen CCNI grew 11% to PhP 10.5 billion

    PowerGen CCNI grew 11% to PhP 10.5 billion from PhP 9.4 billion in 2025, driven by LNGPH’s full six-month contribution, and higher energy delivered by thermal and renewable plants 1H 2026 1H 2025 PhP 10.5B PhP 9.4B  11% 9.4 7.4 6.6 MGas MThermal 3.6 3.9 MGreen, (0.9) (0.8) MGEN Parent and others 10

  10. Slide 10: Consolidated CAPEX

    Consolidated CAPEX largely for solar power plants, battery energy storage systems, and distribution network projects  18% • New connections (PhP 4.9 billion) • Asset renewals (PhP 3.8 billion) • Load growth (PhP 2.9 billion) • Pole relocation works to support government infrastructure projects (PhP

  11. Slide 11: Cash, Debt and Debt Repayment Schedule

    Jun-26 Jun-25 1H 2026 Total Debt and Breakdown Cash, cash equivalents & short-term 120,053 101,101 investments Gross debt 247,316 204,811 Net debt 127,263 103,710 Gross debt/EBITDA 2.8 2.5 46% Net debt/EBITDA 1.4 1.3 Gearing ratio 0.7 0.7 Interest expense 4,293 4,395 54% Interest income 1,714 1,689

  12. Slide 12: 1H2026 Core EPS and dividend

    1H2026 Core EPS was at Php 23.516, up 4% versus Php 22.655 in 1H2025; dividend of Php 11.758 per share representing 50% of Core EPS 62.5% 60% 10% 60% 10% 70% 70% 20% 20% 50% 50% 20% 50% 50% 50% 50% 50% Period-end stock price 295.20 298.8 399.00 488.00 574.00 538.50 570.00 Dividend yield* 5.2% 5.6% 5

  13. Slide 13: Operational Performance Report

    FIRST HALF ENDED JUNE 30, 2026 OPERATIONAL PERFORMANCE REPORT Media, Investors and Analysts Briefing

  14. Slide 14: Distribution Utility

    DISTRIBUTION UTILITY Business Drivers Service Performance Electricity Rate per kWh Energy Sales System Loss (12-MMA) Average Retail Rate 26,967 GWh 6.07% PhP 13.09 0.5% vs 27,091 in YTD 2025 0.19 ppt vs 5.88 in YTD 2025 15% vs 11.41 in 1H 2025 DU Net System Input Total SAIFI 28,165 GWh 0.426 time

  15. Slide 15: 1H sales decline narrowed to 0.5%

    1H sales decline narrowed to 0.5%, with June surpassing the 5,000 GWh mark and reaching an all-time monthly high across all customer segments, driven by recovering demand and sustained customer energizations. 26,953 27,091 26,967 24,792 Sales Drivers: 23,968 22,663 21,140 9,716 9,779 9,712  Residen

  16. Slide 16: Energized Projects (April-June 2026)

    Energized Projects (April- June 2026) 2 Capacity 2 Reliability 1STL Addition Improvement Construction 133 MVA 7 km Additional New STL Development of Bustos 69 kV-13.8 KV Substation Development of Osorio 115 kV-34.5 kV Substation Capacity Length  Energized on June 29, 2026  Energized on April 30, 2

  17. Slide 17: Regulatory Report

    FIRST HALF ENDED JUNE 30, 2026 REGULATORY REPORT Media, Investors and Analysts Briefing

  18. Slide 18: Santa Rita PPA Third Interim Extension

     June 10, 2026: DOE letter directed Parties to “immediately execute the extension of the PPA for a period up to 25 December 2026 [(“Third Interim Extension”)], on terms consistent with the existing PPA and its prior extensions, or on such other mutually agreed terms as are not less favorable to the

  19. Slide 19: 600 MW Baseload CSP milestones

    • June 18, 2026: The DOE sent MERALCO an updated letter, noting revision of the 600 MW Baseload CSP into “two phases with a contract duration of fifteen (15) years from the Operations Effective Date, while maintaining the total contract capacity at 600 MW…” and affirming that MERALCO may proceed wit

  20. Slide 20: Power Generation Highlights

    FIRST HALF ENDED JUNE 30, 2026 POWER GENERATION HIGHLIGHTS Media, Investors and Analysts Briefing

  21. Slide 21: Safe man-hours

    safe man-hours* 1H 2026 64 First Aid Cases 12 Recordable Case 0 Loss Time Accident 0 Fatality *Running total

  22. Slide 22: Business Unit Year-to-Date Performance in GWh

    Year-to-Date Performance in GWh Business Unit 1H 2025 1H 2026 % change MGEN Thermal Energy, Inc. 2,788 2,918 ▲ 5% San Buenaventura Power Ltd. Co. 1,803 1,784 ▼ 1% PacificLight Power 2,865 2,883 ▲ 1% LNGPH 4,800 * 5,767 ▲ 20% MGEN Renewable Energy, Inc. 387 825 ▲ 113% & SPNEC 12,644 14,178 ▲ 12% MGEN

  23. Slide 23: Plant Availability and Energy Delivered

    Plant Availability Energy Delivered 1H 2025 1H 2026 1H 2025 1H 2026 95.9% 92.9% 12,644 GWh 14,178 GWh ▼ 3% vs. 1H 2025 ▲ 12% vs. 1H 2025

  24. Slide 24: Toledo BESS

    Toledo BESS Toledo City, Cebu Developed through Toledo Energy Development Corporation, a thermal subsidiary of MGEN, the Toledo BESS 56.44 MWh in its Phase 1 operations. Energized last 08 May 2026, the facility utilizes advanced lithium-ion technology to store electricity from both renewable and con

  25. Slide 25: Corporate name change to MGEN Thermal Energy, Inc.

    The Securities and Exchange Commission (SEC) has approved the corporate name change of Global Business Power Corporation (GBP) to MGEN Thermal Energy, Inc. – strengthening its alignment within the MGEN portfolio.

  26. Slide 26: MTerra Solar Phase 1 inaugurated

    On 14 July 2026, MTerra Solar Phase 1 was officially inaugurated – marking the completion of the first phase of what is set to become the world’s largest integrated solar photovoltaic (PV) and battery energy storage system (BESS).

  27. Slide 27: MTerra Solar capacity and energy delivered

    1,373 MW Solar capacity energized 3,300 MWh BESS energized 151 GWh Energy delivered >30 million Total Safe Manhours Figures as of end-June 2026

  28. Slide 28: Sarangani and Panay coal plants restored

    Sarangani Energy Corporation (SEC) successfully Panay Energy Development Corporation (PEDC) has brought 2 units of its 237-megawatt coal-fired successfully synchronized Unit 3 of its 278.4- power plant back online less than a week after megawatt coal-fired power plant in Iloilo City to the the earth

  29. Slide 29: MOU with VinEnergo

    Meralco, MGEN, and Vietnam- based VinEnergo Energy Joint Stock Company (VinEnergo) have signed a Memorandum of Understanding (MOU) to explore potential collaboration in advancing energy security, system reliability, and the transition to cleaner energy in the Philippines. As part of the collaboratio

  30. Slide 30: Customer Choice and RCOA threshold

    With RCOA threshold down to 100 kW, Customer Choice is becoming more important.

  31. Slide 31: Community assistance and support

    Php 800,000 Mobilized in relief assistance in Sarangani post-earthquake Reaching 3,000 individuals 51 schools Supported through Brigada Eskwela Reaching 29,130 beneficiaries

  32. Slide 32: 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

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