Manila Electric Co. · PSE:MER
Manila Electric — H1 2017 Earnings Presentation
35 slides from Manila Electric's earnings presentation, Aug 3, 2017
Slide 1: Results
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Slide 2: Operating Highlights
Operating Highlights Energy Customer Peak Net System Sales Count Demand Input (NSI) 3.1%* 4.5%* 3.3%* 2.5%* 20,338 GWh 6.17 million 6,973 MW 21,761 GWh Ave. Retail S-Factor Rates & GSL** 5.9%* Sustained Service Business P8.10/kWh Improvement Updates *vs. same period, previous year **For GSL, RY
Slide 3: Details
Details
Slide 4: Energy Sales: 1H 2017
Energy Sales: 1H 2017 Up 3.1% vs. 2016 (+621 GWh) Share / for 1H 2017: RESIDENTIAL 3.1% 2.6% 31.1% 3.7% 11.1% 2.6% 2.6% 19,717 20,338 6,333 GWh 17,299 17,753 COMMERCIAL 16,863 Increase in organic sales and other 39.6% Sales volume for factors plus new sales 8,045 GWh Flat Streetlights accoun
Slide 5: Customer Count: 1H 2017
Customer Count: 1H 2017 Up 4.5% vs. 2016 (+264,756 customers) Share / for 1H 2017: 4.5% 4.7% 2.6% 6.17 RESIDENTIAL 4.0% 91.8% 5.91 5,666,657 3.8% Count of Flat customers COMMERCIAL 3.6% 5.68 Streetlight 8.0% 5.48 account for 492,769 0.1%, customers 5.28 in Mn 4672 customers customers INDUSTR
Slide 6: Ave. Temperature(°C): 1H 2017
Ave. Temperature(°C): 1H 2017 30.3 30.5 30.1 29.7 29.3 29.5 29.7 29.9 28.7 28.7 28.4 29.2 28.3 28.5 28.3 28.5 28.4 28.5 27.6 28.2 27.8 27.7 27.2 27.0 26.7 26.9 26.2 26.2 2015 2016 2017 25.0 25.6 Ave Temp (1H) 27.7°C 28.8°C 28.2°C 2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 20
Slide 7: Clark Electric (CEDC): 1H 2017
Clark Electric (CEDC): 1H 2017 ENERGY SALES, in GWh CUSTOMER COUNT 4.7% 282.2 3.4% 2,041 269.4 1,974 2016 2017 2016 2017 CEDC’s top 5 sales contributors for June 2017 include SFA Semicon Phils. - Phoenix Semiconductor Philippines Corp. (PSPC), Advent Energy (Yokohama), SN Aboitiz Power (Taiyo Nipp
Slide 8: Net System Input (NSI) and Peak Demand: 1H 2017
Net System Input (NSI): 1H 2017 Peak Demand: 1H 2017 Up 2.5% at 21,761 GWh Meralco Peak Demand of 6,973 MW (breached 2016 Peak) Meralco YTD, MW: 6,748 MW 2.5% 2016 Peak* 6,973 21,221.5 21,761.4 GWh 6,748 3.3% *May 4, 2016 2016 2017 2016 2017 (May 4) (June 14) Luzon YTD Peak Demand, MW: 9,726 M
Slide 9: Energy Sources and Fuel Mix: 1H 2017
Energy Sources: 1H 2017 Fuel Mix: 1H 2017 Liquid Fuel, 3.3%* SOURCE 1H 2017 GWh Share Coal PSAs-Total 7,480.1 34.4% 33.4% PSA IPP SEM-Calaca 728.0 3.4% 34.4% 28.3% Natural Gas MPPC-Masinloc 873.2 4.0% 35.1% TLI-Pagbilao 756.4 3.5% Multi-fuel 28.2% SMEC-Sual + CEDC 1,425.5 6.6% WESM SPPC-Ilijan 3,145
Slide 10: Average Retail Rates: 1H 2017
Average Retail Rates: 1H 2017 (Reflects Gen Wheeling adjustments) 5.9% higher than 2016 average rates (+45¢/kWh); mainly due to Generation and FIT-All charges • May 18, 2017 – ERC approved a Final FIT-All rate of 18.30¢/kWh (increase of 5.9¢/kWh from the provisionally-approved rate of 12.40¢/kWh (
Slide 11: S-Factor & GSL Performance: 1H 2017 & RY2017
S-Factor & GSL Performance: 1H 2017 & RY2017 (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
Slide 12: Business Updates & Other Events of Interest
Details Business Updates & Other Events of Interest
Slide 13: Business Updates: Significant Events/ Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs S&P upgrades Meralco Credit Rating to Meralco wins back-to-back Company of the Year Investment Grade at BBB- • Rewrites Philippine Quill history • First in Philippine Quill Awards’ 15-year history, a Testament to Meralco’s strengt
Slide 14: Business Updates: Significant Events/ Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs Meralco bests Asian Utilities Power Tech Construction Now In Full Swing • Construction was delayed a few months ago due to permit issues. The project team proceeded with identification and finalization of technologies that will be
Slide 15: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business (via CapEx for Enhanced Capacity & Power Quality) Uprating of San Miguel 20 MVA PXF Bank 1 to 33 MVA May 09, 2017 This project improves the power quality and provides additional capacity in San Miguel, San Ildefonso, and Doña Remedios Trinidad, Bul
Slide 16: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business Status of Pending RP3 Major Projects (via CapEx for Enhanced Capacity & Power Quality) Development of Calamba, 230 kV-115 kV Construction of Parang-Marikina Construction of Paco Delivery Point’s Delivery Point Substation (RY2013) 115 kV Line (RY2014)
Slide 17: Business Updates: Significant Events/ Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs Orange Tag (YTD: 46 tags have been released) Programs to Delight Customers: Communicate Customer Stories Payment Programs 60,560 Jun-17 3,521 57,039 May-17 2,883 54,156 Apr-17 4,331 49,825 Mar-17 4,386 45,439 Feb-17 2,696 Target 4
Slide 18: Business Updates: Significant Events/ Customer Initiatives & Programs
Business Updates: Significant Events/ Customer Initiatives & Programs CBG: POWER UP- TECHNICAL EDITION 6 Jun: Robinsons Land Corp. Residential Division 8 Jun: Vista Land and Lifescapes, Inc. 28 Jun: Meralco Mini-Theater 16 Jun: Toyota Motors Philippines for Industry partners 21 Jun: Megaworld Corpor
Slide 19: Customer eXperience Engine (CXE)
Business Updates: Significant Events/ Customer Initiatives & Programs Customer eXperience Engine (CXE) Launched in May 2017. First of many releases as part of the Customer eXperience Transformation Program (CXTP) to enhance customer experience by automating its back-end processes and Release 1- I-JO
Slide 20: 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 03 August 2017
Slide 21: San Buenaventura Power Limited Co. (SBPL)
San Buenaventura Power Limited Co. (SBPL) 455MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon Construction of the power project is now on its 20th month and on schedule for commercial operations in mid-2019. Pulverizer and Boiler Area Control Building and STG Area
Slide 22: Redondo Peninsula Energy, Inc. (RP Energy)
Redondo Peninsula Energy, Inc. (RP Energy) 2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales Application for approval of the Meralco PSA submitted to the ERC since 29 April 2016. ERC approval still pending. Engineering, Procurement and Construction (EPC) Contract signed in October 2016 with
Slide 23: Redondo Peninsula Energy, Inc. (RP Energy)
Redondo Peninsula Energy, Inc. (RP Energy) 2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales RP Energy received the “Philippines Power Deal of the Year – Highly Commended” from The Asset. The award was given in Hong Kong on June 28, 2017 during The Asset Triple A Infrastructure Awards. The
Slide 24: Atimonan One Energy, Inc. (A1E)
Atimonan One Energy, Inc. (A1E) 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon Environmental Compliance Certificate (ECC) obtained in October 2015 Connection Agreement with NGCP executed in January 2017; 23-km Transmission Line (from Atimonan Power Plant site to New Pagb
Slide 25: Atimonan One Energy, Inc. (A1E)
Atimonan One Energy, Inc. (A1E) 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon In April 2016, A1E signed a PSA with Meralco for the full output of the plant. The PSA is awaiting ERC approval. Turnover of resettlement housing for the affected families was completed last M
Slide 26: St. Raphael Power Generation Corporation (SRPGC)
St. Raphael Power Generation Corporation (SRPGC) 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 by S
Slide 27: Other Investments
Other Investments 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 in June signed an agreement with the Alcantara Group for the acquisit
Slide 28: Financial Highlights
FINANGIAL HIGHLIGHTS AhIZ201 7
Slide 29: Electricity Revenues
141,032 128,804 3,623 4,035 Electricity Revenues = PhP137,409 Electricity Revenues = PhP124,769 108,403 96,578 28,191 29,006 1H 2016 1H 2017 Distribution Revenues Generation & Other Pass-through Charges Non-Electricity Revenues
Slide 30: Capital Expenditures
3,462 4,049 12,349 3% 3% Costs and Expenses 10% 107,683 84% Purchased Power Operating Expenses Depreciation & Amortization Other Expenses 28.9% 5,280 Capital Expenditures 4,095 1H 2016 1H 2017
Slide 31: Margins
17,951 18,044 17,215 17,215 10,388 10,768 10,501 10,118 13.9% 14.0% 12.2% 12.2% Margins 8.1% 8.4% 7.4% 7.2% Core EBITDA Reported EBITDA Core Net Income Reported Net Income 1H 2016 1H 2017
Slide 32: Total Debt
TOTAL DEBT (in Million PhP) 40,046 40,258 (in Million PhP, Except Ratios) 1H 2016 1H 2017 26,998 24,727 Cash 40,999 45,726 15,531 Gross Debt 40,046 40,258 13,048 Net Debt (953) (5,468) 1H 2016 1H 2017 Current Portion Non-current Portion Gross Debt/EBITDA 1.11 1.17 LOAN REPAYMENT SCHEDULE (in Million
Slide 33: Cash and Investments
96,104 91,937 10,696 29,113 35,515 25,992 40,999 45,726 1H 2016 1H 2017 Cash Held-to-Maturity Investments Available-for-Sale Investments
Slide 34: Earnings Per Share and Dividends Declared
REPORTED AND CORE EARNINGS PER SHARE DIVIDENDS DECLARED (in PhP Per Share) (in PhP Per Share) 13.480 9.55 9.32 9.22 8.98 8.925 8.872 4.436 4.608 4.489 Pay-out Ratio 50% 50% Earnings Per Share Core Earnings Per share 1H 2016 1H 2017 1H 2016 1H 2017 Regular (Interim) Special
Slide 35: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on August 3, 2017. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERAL
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