Manila Electric Co. · PSE:MER

Manila Electric — Q1 2018 Earnings Presentation

36 slides from Manila Electric's earnings presentation, Apr 30, 2018

  1. Slide 1: Financial and Operating Results

    FINANCIAL AND OPERATING RESULTS =e CRESTS? ee a Ye tbls i

  2. Slide 2: Financial Highlights Q1 2018

    FINANCIAL RIGHLIGHTS Qi 2018

  3. Slide 3: Electricity Revenues

    70,807 66,576 14,081 13,025 Electricity Revenues = 69,009 Electricity Revenues = 64,724 54,928 51,699 1,798 1,852 Q1 2018 Q1 2017

  4. Slide 4: Costs and Expenses; Capital Expenditures

    1,763 1,294 6,168 3% 2% Costs and Expenses 10% 54,848 85% Purchased Power Operating Expenses Depreciation & Amortization Other Expenses 2,999 Capital Expenditures 2,714 Q1 2018 Q1 2017

  5. Slide 5: EBITDA and Net Income

    8,688 8,688 7,922 7,922 5,312 4,917 4,817 4,598 12.3% 11.9% 12.3% 11.9%  Margins  6.9% 6.9% 7.5% 7.2% Core EBITDA Reported EBITDA Core Net Income Reported Net Income Q1 2018 Q1 2017

  6. Slide 6: Core and Reported Earnings Per Share

    Core and Reported Earnings Per Share (in PhP) 4.71 4.27 4.36 4.08 Earnings Per Share Core Earnings Per share Q1 2018 Q1 2017

  7. Slide 7: Total Debt

    TOTAL DEBT (in Million PhP) 39,888 40,071 (in Million PhP, Except Ratios) Q1 2018 Q1 2017 24,433 24,620 Cash 51,905 49,430 15,455 15,451 Gross Debt 39,888 40,071 Net Debt (12,017) (9,359) Q1 2018 Q1 2017 Current Portion Non-current Portion Gross Debt/EBITDA 1.15 1.26 LONG-TERM DEBT REPAYMENT SCHEDUL

  8. Slide 8: Operations Report

    OPERATIONS REPORT Performance ended March 2018

  9. Slide 9: Operating Highlights

    Operating Highlights Energy Customer Peak Net System Sales Count Demand Input (NSI) 8.9%* 4.8%* 4.0%* 8.0%* 10,145 GWh 6.40 million 6,838 MW 10,767 GWh Ave. Retail S-Factor Rates & GSL** 7.9%* Sustained Service Business P8.46/kWh Improvement Updates *vs. same period, previous year **For GSL, RY

  10. Slide 10: Details

    Details

  11. Slide 11: Energy Sales: 1Q 2018

    Energy Sales: 1Q 2018  Up 8.9% vs. 2017 (+828 GWh) Share /  for 1Q 2018: RESIDENTIAL 7.9% 8.9% 9.2% 29.6% 2.6% 2.3% 12.2% 2,999 GWh COMMERCIAL • Increase from new Total sales volume and organic sales 39.8% 9,077 9,317 10,145 for Flat Streetlights account for 0.3%, plus other factors 4,036 GWh

  12. Slide 12: Customer Count: 1Q 2018

    Customer Count: 1Q 2018  Up 4.8% vs. 2017 (+290,210 customers) Share /  for 1Q 2018: 4.9% 2.7% 4.8% RESIDENTIAL 4.5% 91.9% 3.8% 5,879,141 COMMERCIAL customers 3.9% 6.40 7.9% 6.11 Total customer count 502,985 5.84 for Flat Streetlights 5.42 5.63 in Mn account for 0.1%, 4,762 INDUSTRIAL* custome

  13. Slide 13: Ave. Temperature (°C): 1Q 2018

    Ave. Temperature(°C): 1Q 2018  Ave. Temp for same period in 2018 continues to be higher vs. 2017 30.3 30.5 29.7 30.1 28.9 28.8 29.5 28.7 28.4 29.3 28.4 28.3 28.6 27.9 28.5 27.7 28.1 27.2 27.6 27.8 27.1 27.6 26.6 27.0 26.7 2016 2017 2018 26.2 26.2 Ave Temp (1Q) 27.4°C 26.6°C 27.1°C 2016 2017 2018 Ja

  14. Slide 14: NSI: 1Q 2018 Peak Demand: 1Q 2018

    NSI*: 1Q 2018 Peak Demand: 1Q 2018  Up 8.0% at 10,767 GWh  Meralco Peak Demand of 6,838 MW , 4.0% up Meralco YTD, 6,973 MW 8.0% 10,766.8 GWh MW: 2017 Peak* 6,838 9,968.0 6,577 4.0% *Jun 14, 2017 2017 2018 2017 2018 (Mar. 24) (Mar. 6) Luzon YTD Peak Demand, MW: 10,054 MW 2017 Peak** 9,936 9,459 5

  15. Slide 15: Energy Sources and Fuel Mix: 1Q 2018

    Energy Sources: 1Q 2018 Fuel Mix: 1Q 2018 SOURCE 1Q 2018 Liquid Fuel, 0.5%* GWh Share Coal PSAs-Total 3,444.7 32.0% 28.8% PSA IPP SEM-Calaca 248.0 2.3% Natural Gas 32.0% 26.9% MPPC-Masinloc 392.7 3.6% 39.4% Multi-fuel TLI-Pagbilao 488.2 4.5% WESM 31.4% SMEC-Sual + CEDC 698.4 6.5% 12.4% SPPC-Ilijan 1

  16. Slide 16: Average Retail Rates: 1Q 2018

    Average Retail Rates: 1Q 2018 (Reflects Generator Wheeling adjustments)  7.9% higher than 2017 average rates (+62¢/kWh); mainly due to Generation, Taxes, SL and FIT-All charges • For 2018, Generation Charge is largest component in customer’s bill at 55.3%; Meralco 16.4%; NGCP 10.0% BILL COMPONENT 1

  17. Slide 17: System Loss Performance: March 2018, 12-MMA

    System Loss Performance: March 2018, 12-MMA  12-MMA ending March 2018 returned to all-time low of 5.91%  Improved by 5.1% vs. March 2017’s 6.23%  Lower by 2.59% pts. vs. SL cap of 8.50% 8.5% SL CAP, 2010-PRESENT Apr 2016 - Mar 2017 Apr 2017 - Mar 2018 2.59% 6.55 6.35 6.19 6.21 6.23 6.13 6.00 6.08

  18. Slide 18: S-Factor & GSL Performance: 1Q 2018 & RY2018

    S-Factor & GSL Performance: 1Q 2018 & RY2018 (for GSL)  Sustained service improvements vs. past levels* SAIFI, Forced and PAI (Times) GSL1 : Customer experiencing a cumulative duration of Ave. Time to Process App. (Days) sustained service interruptions in a Regulatory Year that REWARDS DEADBAND PEN

  19. Slide 19: Business Updates & Other Events of Interest

    Details Business Updates & Other Events of Interest

  20. Slide 20: Strengthening the Core Business: CapEx Projects

    Business Updates: Strengthening the Core Business: CapEx Projects (for Enhanced Capacity & Power Quality) Expansion of Balibago 115 kV-34.5 kV Inst’n of 34.5 kV Metalclad Switchgear Expansion of Sta. Maria 115 kV-34.5 kV Substation (2nd Bank) (RY2018) at NGCP-San Jose Substation (RY2016) Substation

  21. Slide 21: Support to Govt. Priority Projects

    Business Updates: Support to Govt. Priority Projs. (Reloc, Reloc, Reloc) (Update on “BUILD, BUILD, BUILD!”)

  22. Slide 22: Status of DOE Sitio Electrification Projects

    Business Updates: Support to Govt. Priority Projs. (Reloc, Reloc, Reloc) (STATUS OF 46 DOE- SITIO ELECTRIFICATION PROJECTS (DOE E.R. 1-94 )) as of March 31, 2018 No. of Sitio No. of No. MOA No. Area / Province Duration of Project Construction (Days) Status Update Projects Household 1 2017EF-005 Bula

  23. Slide 23: Significant Events / Customer Initiatives & Programs

    Business Updates: Significant Events/ Customer Initiatives & Programs WELCOMING OUR BRIGHTEST FUTURE, T O D AY MARCH 8, 2018 GRAND BALLROOM, SHANGRI-LA AT THE FORT BGC ATTENDED BY 433 GUESTS On-site survey showed 96% positive feedback from customers

  24. Slide 24: Significant Events / Customer Initiatives & Programs

    Business Updates: Significant Events/ Customer Initiatives & Programs Philippine National Police Cold Chain Association of the Philippines (CCAP) 12 February 2018 22 March 2018 Highlights: Highlights:  Implement energy efficiency measures in police stations, i.e., preventive Meralco’s UED discussed

  25. Slide 25: Significant Events / Customer Initiatives & Programs

    Business Updates: Significant Events/ Customer Initiatives & Programs ENERGIZING PARTNERSHIP STRATEGIC PLANNING STRATEGIC PLANNING PROGRAMS (EPP) Bay, Laguna March 12 • Community Electrification • Upgrade of electrical facilities • Power Up forums • EMC Conversion Luisiana, Sta. Cruz, and Victoria,

  26. Slide 26: Bright Ideas for Residential Customers

    Business Updates: Significant Events/ Customer Initiatives & Programs BRIGHT IDEAS FOR RESIDENTIAL CUSTOMERS Educate customers on appliances / gadgets and technologies; Tie up with manufacturers to encourage customers to use WHIRLPOOL Intellifresh Ref: 7 day guaranteed freshness, fast ice making, lo

  27. Slide 27: Rates Info Campaign and Customer Programs

    Business Updates: Significant Events/ Customer Initiatives & Programs RATES INFO CAMPAIGN SUSTAINED LOW KEY AND CUSTOMER PROGRAMS TARGETED INFO CAMPAIGN EV-olutionto a cleaner future 93,522 Activated 6,121 5,805 5,676 4,386 4,331 4,284 3,521 3,730 3,541 2,697 2,883 2,324 1,761 632 849 For typical Re

  28. Slide 28: Project Updates

    The information as contained herein may neither be reproduced nor used, in whole or in part, for any other purpose nor furnished to any person(s) without express written permission from MERALCO PowerGen Corporation PROJECT UPDATES 30 April 2018

  29. Slide 29: San Buenaventura Power Limited Co. (SBPL)

    San Buenaventura Power Limited Co. (SBPL) 29 455MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon  Construction of the country’s first super-critical coal-fired power project is now on its 28th month and is expected to be completed in mid-2019. SWFGD Aeration, Intake Structure, Water

  30. Slide 30: Atimonan One Energy, Inc. (A1E)

    Atimonan One Energy, Inc. (A1E) 30 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon  The PSA with Meralco was submitted to the ERC in April 2016. Public hearings, Technical Working Group (TWG) review and assessment of the tariff already completed.  A1E is focused on securing

  31. Slide 31: Atimonan One Energy, Inc. (A1E)

    Atimonan One Energy, Inc. (A1E) 31 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon  A1E has an executed Connection Agreement with the NGCP and an ERC-approved transmission line (from Atimonan Power Plant site to the New Pagbilao Substation).  A Memorandum of Understanding w

  32. Slide 32: Atimonan One Energy, Inc. (A1E)

    Atimonan One Energy, Inc. (A1E) 32 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon  MGen established a Joint Venture with the Electricity Supply Board of Ireland (ESBI), a leading third party service provider in O&M services worldwide, that will allow for a transfer of skill

  33. Slide 33: Redondo Peninsula Energy, Inc. (RP Energy)

    Redondo Peninsula Energy, Inc. (RP Energy) 33 2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales  225-MW Power Supply Agreement (PSA) with Meralco submitted to ERC for approval in April 2016. Public hearings, Technical Working Group (TWG) review and assessment of the PSA and the tariff, and oth

  34. Slide 34: St. Raphael Power Generation Corporation (SRPGC)

    St. Raphael Power Generation Corporation (SRPGC) 34 2x350 MW Pulverized Coal-Fired Power Plant in Calaca, Batangas  MGen and Semirara Mining and Power Corp. entered a Joint Venture Agreement for a 50-50 stake in the planned 2x350 MW coal power plant in Calaca, Batangas in 2016.  A PSA was signed b

  35. Slide 35: Other Investments

    Other Investments 35 GLOBAL BUSINESS POWER CORPORATION (GBPC)  MGen holds 14% equity interest in GBPC, the largest independent power producer in the Visayas with an existing portfolio totaling 854 MW (coal and diesel plants).  GBPC has a 50% interest in Alsons Thermal Energy Corporation (ATEC). 

  36. Slide 36: competitive uncertainties and contingencies which are beyond MERALCO’s control.

    This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on April 30, 2018. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERALCO). The same material

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