Manila Electric Co. · PSE:MER
Manila Electric — 9M 2015 Earnings Presentation
40 slides from Manila Electric's earnings presentation, Oct 26, 2015
Slide 1: Financial and Operating Results
Financial and Operating Results Investors and Analysts Briefing Nine months ended September 30, 2015 October 26, 2015
Slide 2: Operations Report 9M 2015
Operations Report 9M 2015
Slide 3: Details
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Slide 4: 9Months 2015 Highlights
9Months 2015 Highlights 3.8%* 4.7%* 2.9%* 5.1%* +177 MW +1,422 GWh +209,401 customers +1,243 GWh Meralco Customer Count Energy Sales Peak Demand NSI 9Mos. 2015 9Mos. 2015 9Mos. 2015 9Mos. 2015 P1.08/kWh Within Business Regulatory Limits Updates Gen.Ch. 54.7% Dist. Ch. 17.9% Ave. Retail Rates S-Facto
Slide 5: Details
Details 0 SAFETY REBOARD
Slide 6: Customer Count, 9Months 2015
Customer Count, 9Months 2015 Up 3.8% vs. 2014 (+209,401 new customers) 5.74 3.8% Segment share for 2015: 5.53 2.3% 5.33 3.9% 3.9% 91.5% 5.16 3.3% RESIDENTIAL 8.2% 5.26 million Customers COMMERCIAL 4.98 3.5% 0.472 million Customers 0.2% in million INDUSTRIAL customers 9,930 Customers 1.2% 2011 2012 2
Slide 7: Energy Sales, 9Months 2015
Energy Sales, 9Months 2015 Up 4.7% vs. 2014 (+1,242.8 GWh) Movers* for 2015: 4.7% 27,496 30.2% 5.6% 2.5% 24,4484.8% 25,616 26,253 2.8% 22,725 7.6% INDUSTRIAL • Food & Beverages 39.5% • Rubber & Plastics COMMERCIAL • Misc. Manufactures • Private Services • Real Estate 30.0% • Trade RESIDENTIAL ∆ orga
Slide 8: Clark Electric (CEDC), 9Months 2015
Clark Electric (CEDC), 9Months 2015 Energy Sales, GWh Customer Count 382.5 18.4% 323.2 1.1% 1,849 1,870 2014 2015 CEDC’s top 5 sales contributors for Sept 2015 include Phoenix Semiconductor Philippines Corp. (PSPC), Yokohama, SN Aboitiz Power, Premier Central (SM Clark), 2014 2015 and Nanox Phils NS
Slide 9: NSI and Peak Demand, 9Months 2015
NSI, 9Months 2015 Peak Demand, 9Mos 2015 Up 5.1% vs. 2014 (+1,421.6 GWh) Meralco Peak Demand of 6,298 MW, 2.9% Up vs. 2014 • First time Peak occurred beyond summer months Meralco YTD Peak Demand, MW: 2014 Peak Sept. 2015 YTD, GWh: 6,298 * ALL-TIME HIGH 6,121 2.9% 29,533.2 28,111.5 5.1% 2014 2015 *Au
Slide 10: Power Sources & Fuel Mix, 9Months 2015
Power Sources & Fuel Mix, 9Months 2015 SOURCE GWh Share Liquid Fuel Natural Gas 5.2% PSAs-Total 11,352.1 38.4% PSAs 40.3% SEM-Calaca 1,452.5 4.9% 38.4% IPPs Coal MPPC-Masinloc 1,458.5 4.9% 35.4% Multi-fuel 37.4% TLI-Pagbilao 1,333.3 4.5% 2,113.6 7.2% RES 17.1% SMEC-Sual + CEDC WESM 18.9% SPPC-Ilijan
Slide 11: Average Retail Rate, 9Months 2015
Average Retail Rate, 9Months 2015 11.2% lower vs. 2014 (-P1.08/kWh) Generation Charge, largest component in customer’s bill, 54.7%; Meralco 17.9%; NGCP 10.4% 9Mos. 2014 9Mos. 2015 BILL COMPONENT Overall Ave, P/kWh Overall Ave, P/kWh ∆ Generation Charge* 5.45 4.67 -0.78 Distribution Charge** (MERALCO
Slide 12: Typical Residential Rate per kWh (200 kWh)
Typical Residential Rate per kWh (200 kWh) For 6th consecutive month, customers have experienced reduction in their electricity bills BILLING MONTH Oct '15 vs. COMPONENT TREND Apr '15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Generation 5.41 4.81 4.46 4.74 4.55 4.13 4.00 -26.1% Transmission 0
Slide 13: System Loss, as of Sept. 2015 (12-MMA)
System Loss , as of Sept. 2015 (12-MMA) Monthly 12-MMA ending Sept. 2015 at 6.56% Improved by 0.11%pts vs. Sept. 2014’s 6.67% Lower by 1.94% vs. SL cap of 8.5% 8.5% SL CAP, 2010-PRESENT YEAR AGO 12-MMA (Oct '13 - Sept '14) LATEST 12-MMA (Oct '14 - Sept '15) 1.94% 6.86 6.77 6.67 6.62 6.48 6.56 Oct No
Slide 14: S-Factor & GSL, 9Months 2015 & RY2016
S-Factor & GSL, 9Months 2015 & RY2016 (for GSL) All S-Factor indicators well within rewards range; all GSL performances are well within set limits GSL1 : Customer experiencing a cumulative duration of SAIFI, Forced and PAI (Times) Ave. Time to Process App. (Days) sustained service interruptions in a
Slide 15: Other Business Highlights
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Slide 16: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS PowerLab feature for ANC Green Living with Alfred Iporac 14,295 ACTIVATED in Sept. Exceeded 13,000 target!!! Caravans: Sep 19 - Caloocan Sep 26 - Bella Vista, Cavite 143 SKUs tested in the Powerl
Slide 17: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS TYPHOON WATCH BIZ POWER IDEAS ACCREDITED MERALCO CONTRACTORS CBG POWER IDEAS BIZ CBG BIZ AWARENESS CAMPAIGN
Slide 18: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS Pateros MOU Signing QC MOU Signing Energizing Partnership with Manila Pasay MOU Signing Energizing Partnership with Pasig
Slide 19: Business Updates: Operational Impact of Typhoons
Business Updates: Operational Impact of Typhoons “Ineng” (Goni) in August & “Lando” (Koppu) to Meralco “LANDO” “INENG” COMPARISON Oct. 18 – 21 Aug. 18 - 22 12th Tropical Cyclone to enter PAR 9th Tropical Cyclone to enter PAR and 2nd weather Nature and 2nd weather disturbance for Oct. disturbance for
Slide 20: Business Updates: Operational Impact of Typhoons
Business Updates: Operational Impact of Typhoons “Ineng” (Goni) in August & “Lando” (Koppu) to Meralco Snapshots of Damage Est. Replacement Cost Damaged Distribution Count in PhP Mn Pct of Total in PhP Mn Pct of Total Facility Ineng Lando 'Ineng' 'Lando' Poles 5 10 0.2 16.1% 0.7 19.0% Wires 11 29 0.
Slide 21: Business Updates: Typhoon Lando (Koppu) to Meralco
Business Updates:Typhoon “Lando” (Koppu) to Meralco Affected customers: Estimated Unserved Energy: Estimated Unserved Energy: Oct. 18 = 12.75 Gwh Note: Count based on circuit, segment, LCO and TX level outages only Reliability performance: If Impact of Typhoon Lando is not exempted: As of OCTOBER 18
Slide 22: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business UPDATES / ACCOMPLISHMENTS PPPs and Government Initiated Relocation Projects
Slide 23: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business UPDATES / ACCOMPLISHMENTS Relocation of Meralco Facilities Affected by NAIAx Project Completed: September 17, 2015
Slide 24: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business UPDATES / ACCOMPLISHMENTS Development of PAGCOR-1 GIS Substation Banks were commissioned on September 30, 2015 115 kV Line Terminations at Roxas Blvd Pagcor-1 Substation Building • Commissioned last September 30 thru the cutting-in of Zapote-Malibay
Slide 25: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business UPDATES / ACCOMPLISHMENTS BOLBOK S/S Construction of Batangas City-Bolbok-Simlong 69 kV Line Line was energized on October 2, 2015 JOB 1 JOB 2 JOB 3 JOB 4 • All line works were completed by Meralco on March 20, 2015 (248 poles and 14.1 km of lines) •
Slide 26: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business UPDATES / ACCOMPLISHMENTS Relocation of MERALCO Facilities Affected by Skyway Stage 3 Project Section 4 From Quezon Ave. to Balintawak 3 1 Section 3 Along Araneta Ave., from SM Sta. Mesa to Quezon Ave. Sept. 20, 2015 – Relocation and conversion to XL
Slide 27: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS Meralco hosts 9th ASEAN Residential School for Electric Power Engineering (ARSEPE) Meralco Orange Fit Wellness Initiative named Meralco/ Power Academy, hosted the two-week 9th ASEAN Residential P
Slide 28: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business SIGNIFICANT EVENTS/ INITIATIVES / SOLUTIONS & PROGRAMS MTECH 2015: Meralco launched a three-day technology and innovation summit Marked company’s continued push to create innovative solutions in power Meralco Energized 100 Off-Grid Schools, And Count
Slide 29: MGen Updates 9M 2015
MGen Updates 9M 2015
Slide 30: San Buenaventura Power Limited
San Buenaventura Power Limited (500 MW Coal-Fired Power Plant, Quezon) • Power Supply Agreement with Meralco SBPL accepted on 30 May 2015 the Energy Regulatory Commission approval for the Power Sales Agreement (“PSA”) between Meralco and SBPL. • Financing The Company is targeting Financial Close and
Slide 31: Redondo Peninsula Energy
Redondo Peninsula Energy (600 MW CFB Coal-Fired Power Plant, Subic) • RP Energy is pursuing the completion of all remaining development activities to allow the Project to achieve financial close and commence construction of the power plant. • Evaluating 300MW vs. 600MW transmission options and risks
Slide 32: Atimonan One Energy
Atimonan One Energy (2 x 600 MW PC Coal-Fired Power Plant, Quezon) • Regulatory Environmental Compliance Certificate issued in October 2015. • Engineering, Procurement and Construction (EPC) EPC tender process has now commenced. Tender responses expected later this year, with selection of preferred
Slide 33: Global Business Power Corporation (GBPC)
Global Business Power Corporation (GBPC) • GBPC’s Toledo Power Corporation (TPC) completed construction of its 1 x 82- MW CFB coal-fired power plant expansion. Achieved commercial operation in Dec 2014. The capacity services the Visayas grid through power supply agreements (PSA) with electric cooper
Slide 34: Financial Highlights 9M 2015
Financial Highlights 9M 2015
Slide 35: Consolidated Revenues
Consolidated Revenues (P mn) 202,890 197,047 3,848 5,551 Electricity Revenues = 191,496 Electricity Revenues = 199,042 156,372 149,836 42,670 41,660 9M 2014 9M 2015 Distribution Revenues Other Electricity Revenues Non-Electricity Revenues
Slide 36: Consolidated EBITDA and Net Income
Consolidated EBITDA and Net Income (P mn) 27,106 27,169 26,600 26,547 15,795 16,149 2% 2% 14,286 14,308 11% 13% Margins 13% 14% 13% 14% 7% 8% 7% 8% Core EBITDA Reported EBITDA Core Net Income Reported Net Income 9M 2014 9M 2015
Slide 37: Costs and Expenses/Capital Expenditures
Costs and Expenses/Capital Expenditures (P mn) 5,035 5,561 17,210 3% 3% 10% Costs and Expenses 147,537 84% Purchased Power Operating Expenses Depreciation & Amortization Other Expenses Capital Expenditures 9M 2015 7,784 4% 9M 2014 7,456
Slide 38: Credit and Debt Profile
Credit and Debt Profile GROSS DEBT (in P mn) 30,159 29,907 (in P mn except ratios) 9M 2014 9M 2015 Cash 64,757 44,921 27,714 27,387 1% Gross Debt 30,159 29,907 2,445 2,520 9M 2014 9M 2015 Net Debt (34,598) (15,014) Current Portion Non-current Portion LT LOAN REPAYMENT SCHEDULE (in P mn) Gross Debt/E
Slide 39: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on October 26, 2015. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MER
Slide 40: Thank You
THANK YOU
Manila Electric Company — 9M 2015 Earnings Presentation on 6ix