Manila Electric Co. · PSE:MER
Manila Electric — FY2024 Earnings Presentation
46 slides from Manila Electric's earnings presentation, Feb 24, 2025
Slide 1: 2024 Financial and Operating Results
2024 Financialée’ Operating Results FEBRUARY 24, a)
Slide 2: Full Year 2024 Financial Performance
FULL YEAR ENDED DECEMBER 31, 2024 FINANCIAL PERFORMANCE Media, Investors and Analysts Briefing February 24, 2025
Slide 3: 2024 was a year of remarkable achievements
2024 was a year of remarkable achievements, highlighted by key transactions, significant milestones, and exceptional operating results across all three major business segments • Record CCNI of PhP 45.1 billion, exceeding the 2024 profit guidance and 22% higher year-on-year o DU share at 62% vs. 64%
Slide 4: CCNI and key financial metrics
Reported Income Core EBITDA CAPEX CCNI p 45,859 p 74,950 p 44,705 38,023 29,421 p 45,142 37,110 64,368 2023 2024 Cash & Cash Equivalents 2023 2024 2023 2024 p 84,480 82,789 2023 2024 Gross Revenues Costs & Expenses 470,362 425,329 p p 2023 2024 Borrowings 99,446 407,279 q 54,325 p 6% 443,612 15,296
Slide 5: Increase in CCNI backed by steady growth of the Distribution Utility
Increase in CCNI backed by the steady growth of the Distribution Utility, strong performance of Power Generation and significant improvement of the Retail Electricity Supply business Unregulated businesses: Share in total CCNI at 38% as (i) MGEN’s power generation units sustained their strong perfor
Slide 6: Gross Revenues
2024 Up by 6% mainly driven by higher sales Gross volumes of the DU and higher pass- Revenues 2023 through transmission charge Generation, 2024 7% increase due to higher volumes and increase in Transmission transmission charge due to higher NGCP ancillary 2023 service and reserve market charges. and
Slide 7: Total Costs and Expenses
Total Costs Up 4% due to higher purchased power and Expenses cost, OPEX and depreciation Purchased Increased by 6% due to increase in volumes Power Costs purchased as well as higher transmission charge Increased by 9% due to (i) intensified maintenance work OPEX on DU facilities; (ii) higher overhea
Slide 8: Consolidated CAPEX
Consolidated CAPEX driven by distribution network improvement projects, development of solar projects, and facilities for the towers business Mostly Networks CAPEX for new connections (PhP7.9 billion), asset p 52% renewals (PhP 6.6 billion), and load growth (PhP 5.7 billion), while continuing to exe
Slide 9: Power generation subsidiaries core net income and operations
PhP 13.3 Billion PhP 3.2 Billion PhP 3.5 Billion PhP 376 Million* Core Net income q 18% vs. 2023 p 26% vs. 2023 p 411% vs. 2023 p 199% vs. 2023 Meralco Stake 58% 51% 100% 100%** 343 MWac; Solar plants in Net Capacity 800 MW; LNG plant in 455 MW; Coal plant in 838 MW; Coal and Oil plants in Bulacan,
Slide 10: Cash, short-term investments and gross debt
Dec-24 Dec-23 %△ Cash & cash equivalents 84,480 82,789 2.0% 2024 Total Debt and Breakdown Short-term investments 8,826 7,544 17.0% Gross debt 94,776 99,446 (4.7%) Net debt 1,470 9,113 (83.9%) Gross debt/EBITDA 1.3 1.5 (17.6%) 43% Net debt/EBITDA 0.0 0.1 (86.0%) Gearing ratio 0.0 0.1 (86.4%) Free cas
Slide 11: Core EPS and dividend per share
Core EPS at PhP 40.052, up by 22% versus PhP 32.925 in 2023; dividend per share of PhP 24.031 representing 60% of Core EPS 60% 60% 10% 70% 70% 10% 65% 20% 20% 15% 50% 50% 50% 50% 50% Year-end stock price 292.00 295.20 298.8 399.00 488.00 Dividend yield* 4.3% 5.2% 5.6% 5.0% 4.9% * Computed using divi
Slide 12: Upgraded to BBB from BBB- by S&P
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 13: Operational Performance
FULL YEAR ENDED DECEMBER 31, 2024 OPERATIONAL PERFORMANCE Media, Investors and Analysts Briefing February 24, 2025
Slide 14: FY 2024 Operational Highlights
FY 2024 Operational Highlights DISTRIBUTION Business Drivers Service Performance Electricity Rate Energy Sales System Loss (12-MMA) Average Retail Rate 54,325 GWh 5.99% PhP 10.54 per kWh p6.4% vs 51,044 in FY 2023 p0.11 ppt vs 5.88 in FY 2023 q0.1% vs 10.55 in FY 2023 DU Net System Input Total SAIFI
Slide 15: Customer Report
FULL YEAR ENDED DECEMBER 31, 2024 CUSTOMER REPORT Media, Investors and Analysts Briefing February 24, 2025
Slide 16: Consolidated Energy Sales in GWh
Consolidated Energy Sales in GWh All-time high energy sales with all segments posting growth vs. 2023 54,325 51,044 48,916 46,871 46,073 43,572 p DU Sales Drivers: 19,455 17,781 36% 14,589 17,148 35% ◼ Residential 31% 16,913 35% 16,488 37% Posted 9.4% growth driven by warmer 38% temperatures from ex
Slide 17: Network Report
FULL YEAR ENDED DECEMBER 31, 2024 NETWORK REPORT Media, Investors and Analysts Briefing February 24, 2025
Slide 18: FY 2024 Networks Project Updates
FY 2024 Networks Project Updates Interconnection of Maragondon Solar Development of Arcovia 115 kV – 34.5 kV Replacement of Switchgear No. 1 at New Power Plant to Meralco’s 115 kV Grid GIS Substation Teresa Substation ▪ Energized on October 10, 2024 ▪ Energized on October 30, 2024 ▪ Energized on Oct
Slide 19: FY 2024 Networks Project Updates
FY 2024 Networks Project Updates Development of Sampaloc Replacement of 34.5 kV Metal-clad Replacement of 34.5 kV Switchgear No. 115 kV – 34.5 kV GIS Substation Switchgear No. 1 at Novaliches Substation 1 at Urdaneta Substation ▪ Energized on November 14, 2024 ▪ Energized on November 24, 2024 ▪ Ener
Slide 20: FY 2024 Networks Project Updates
FY 2024 Networks Project Updates Replacement of Power Transformer Bank No.1 Replacement of 34.5 kV Metal Clad Switchgear No. 2 at Duhat Substation at Novaliches Substation ▪ Energized on December 1, 2024 ▪ Energized on December 2, 2024 ▪ CAPEX: Php 119.21 million ▪ CAPEX: Php 31.95 million ▪ Replace
Slide 21: Regulatory Report
FULL YEAR ENDED DECEMBER 31, 2024 REGULATORY REPORT Media, Investors and Analysts Briefing February 24, 2025
Slide 22: Actual Weighted Average Tariff (AWAT) Application
Actual Weighted Average Tariff (AWAT) Application ERC Case No. 2025-025RC On December 17, 2024, the ERC issued an Order directing MERALCO to file its application for the true-up of its Maximum Average Price (MAP) of PhP1.3522/kWh versus Actual Weighted Average Tariff (AWAT) covering the period decla
Slide 23: New 5RP Application
New 5RP Application ERC Case No. 2025-035 RC ▪ MERALCO filed its new 5RP Application on February 7, 2025, in accordance with ERC Resolution No. 17, s.2024, entitled, “A Resolution Adopting the Amendments to ERC Resolution No. 10, Series of 2021.” ▪ In an Order dated February 10, 2025, the ERC set a
Slide 24: New 5RP Application: CAPEX Forecast
New 5RP Application ERC Case No. 2025-035 RC 5RP CAPEX Forecast (in Billion Pesos) 10.2 PhP 30.6 billion Carry-over Projects 20.4 PhP 215.4 billion New Projects ▪ Customer Load Growth (50%) 64.6 ▪ Advanced Metering Infrastructure (20%) 58.5 57.9 ▪ Sustained Reliability and Quality (15%) ▪ Automation
Slide 25: Refund of Regulatory Reset Expert Costs
Refund of Regulatory Reset Expert Costs ERC Resolution 18, Series of 2024 On December 17, 2024, the ERC promulgated Resolution No. 18, Series of 2024, entitled “A Resolution Directing Distribution Utilities to Refund all Collected and Unutilized Regulatory Reset Expert Cost and Cease any Future Coll
Slide 26: ERC-Approved Power Supply Agreements 1/2
ERC-Approved Power Supply Agreements 1/2 Energy Resources Inc. (“EERI”) for 1,200 MW dated February 5, 2024 – ERC Final Authority (FA) ▪ ERC, through a Notice of Resolution dated December 10, 2024 (“Notice”), granted FA for the PSA including the Applicable Rate, subject to adjustments in accordance
Slide 27: ERC-Approved Power Supply Agreements 2/2
ERC-Approved Power Supply Agreements 2/2 ERC posted Notices of Commission Action that the following PSAs have been approved. The ERC has yet to issue a Notice of Resolution or ERC Order. Supply ERC Resolution GNPower Dinginin Ltd. Co. (GNPD) APPROVE the Joint Application, subject to final for 300 MW
Slide 28: Emergency Power Supply Agreement for 200 MW
Emergency Power Supply Agreement (”EPSA”) for 200 MW (net) Contract Capacity beginning Jan. 26, 2025 Background: ▪ On Nov. 2, 2024, ACEN ceased supply to MERALCO covering 200 MW (net) baseload capacity under the Power Supply Agreement dated Sept. 13, 2019. ▪ Considering the resulting deficit of base
Slide 29: Franchise Renewal Update
Franchise Renewal Update Senate Approval on Third Reading and House Concurrence ▪ January 28, 2025: Approved on Second Reading. ▪ February 3, 2025: Approved on Third Reading. ▪ February 4, 2025: House concurred with the Senate amendments to House Bill No. 10926. Next Steps ▪ Following the bill's pas
Slide 30: Power Generation Operating Results
POWER GENERATION OPERATING RESULTS Media, Investors and Analysts Briefing February 24, 2025
Slide 31: Safety is our Priority
Safety is our Priority! >39 Million Total Running Safe Manhours for 2024 ZERO ▪ Loss Time Accident ▪ First Aid Case ▪ Fatality ▪ Recordable Case
Slide 32: Energy delivered grows 7% compared to 2023
Energy delivered grows 7% compared to 2023 MThermal Panay Energy Iloilo City, Iloilo 5,878 5,652 q4% 2,360 3,205 p36% 5,719 5,820 p2% 349 619 p77% 14,306 15,296 p7%
Slide 33: MTerra Solar breaks ground
All Systems go as MTerra Solar breaks ground Philippine President Ferdinand R. Marcos Jr. and Meralco Chairman and CEO Manny V. Pangilinan led the groundbreaking ceremony of MTerra Solar in Nueva Ecija on November 21, 2024, marking a significant milestone as groundwork begins. MTerra Solar partnered
Slide 34: MTerra Solar progresses with land acquisition and transmission lines
MTerra Solar progresses with land acquisition and transmission lines development MTerra Solar 500KV line Tower 1 Gapan, Nueva Ecija 22% Over-all Project Completion As of December 2024 100% Land acquisition 50% Land acquisition 83% Tower sites for the for Phase 1 for Phase 2 project’s transmission li
Slide 35: MGreen set to expand with new solar projects
MGreen set to expand with new solar projects entering commercial operations in 2025 MGreen Bongabon Solar Bongabon, Nueva Ecija 85.2 MWac New solar capacity in 2025 MGreen Bongabon Solar 19.8 MWac MGreen Baras Solar (Phase 2) 12.6 MWac* MGreen Cordon Solar 52.8 MWac * This capacity represents only t
Slide 36: PacificLight secures approval for hydrogen-ready CCGT plant
PacificLight secures approval for Singapore’s largest hydrogen-ready CCGT power plant PacificLight Power Pte Ltd. Jurong Island, Singapore PacificLight has secured approval from Singapore’s Energy Market Authority (EMA) to develop a 600 MW hydrogen-ready Combined Cycle Gas Turbine (CCGT) plant in Ju
Slide 37: PCC approves joint acquisition of power assets and LNG terminal
PCC approves joint acquisition of power assets and LNG terminal for energy security The Philippine Competition Commission (PCC) has approved the joint acquisition of power generation Linseed Field Corporation Ilijan, Batangas City facilities and a liquefied natural gas (LNG) terminal in Batangas by
Slide 38: Powering the good life through Sustainability and community impact
Powering the good life through Sustainability and community impact PEOPLE La Paz Plaza Butterfly Garden Over 39 million safe man-hours achieved Iloilo City, Iloilo Committed to ensuring a safe workplace for our team POWER 619 GWh of clean power generated Record-breaking energy delivered from MGreen
Slide 39: One Meralco Sustainability Report
ONE MERALCO SUSTAINABILITY REPORT Media, Investors and Analysts Briefing February 24, 2025
Slide 40: Updates
Updates 1 ESG Performance a. Bloomberg Gender Equality Index 2 Sustainability Recognitions a. Triple P Awards b. United Nations Women Empowerment Principles Awards c. PBSP’s X-Trash Challenge
Slide 41: Bloomberg Gender Equality Index
In 2024, Meralco remained the only Philippine utility in the Bloomberg Gender Equality Index, 1a driven by strong management of key Diversity & Inclusion areas Strong performance cited as a result of: Diversity and inclusion policy The Bloomberg GEI, with data of 11.7K+ companies, is the only ESG as
Slide 42: Meralco secures top honors in first-ever Triple P Awards
2a Meralco secures top honors in first-ever Triple P Awards Excellence in ESG Performance in Energy Distribution Manila Electric Company • Organized by International Association of Business Communicators (IABC), Deloitte, Makati Business Club ESG Thought Leader of the Year • Recognizes businesses fo
Slide 43: United Nations Women Empowerment Principles Awards
Meralco earns landmark win in the 2b United Nations’ Women Empowerment Principles (WEPs) Awards Our #Mbrace Diversity & Inclusion Program was awarded 1st Runner-Up for Gender-Responsive Marketplace Meralco recognized for integrating gender lens across its value chain and for inclusive Led and organi
Slide 44: Meralco finishes strong in X-Trash Challenge
2c Meralco finishes strong anew in X-Trash Challenge (Year 4) ENVIRONMENTAL POINTS SCOREBOARD ▪ Inter-company waste management competition led by Philippine Business for Social Progress (PBSP) and Meralco placed 2nd out of 19 Basic Environmental Systems & Technology (BEST) ▪ Mechanics: Donate recycl
Slide 45: 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 46: 2024 Financial and Operating Results
2024 Financialée’ Operating Results FEBRUARY 24, a)
Manila Electric Company — FY2024 Earnings Presentation on 6ix