Manila Electric Co. · PSE:MER
Manila Electric — Q1 2026 Earnings Presentation
48 slides from Manila Electric's earnings presentation, May 4, 2026
Slide 1: Financial and Operational Highlights
FIRST QUARTER ENDED MARCH 31, 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS Media, Investors and Analysts Briefing May 4, 2026
Slide 2: Financial Performance Report
FIRST QUARTER ENDED MARCH 31, 2026 FINANCIAL PERFORMANCE REPORT Media, Investors and Analysts Briefing
Slide 3: CCNI Grew 2% from Distribution Utility and Power Generation
CCNI grew 2% from the combined contribution of a stable Distribution Utility and the growing Power Generation portfolio Distribution Utility • CCNI contribution of PhP 5.3B; 46% of CCNI • Sales volume slightly lower at 12,273 GWh vs. 12,493 GWh in 2025 Power Generation • CCNI contribution at PhP 5.1
Slide 4: Power Generation Retail Electricity Supply
Power Generation • MGen Renewables: o On February 27, 2026, the ERC issued an advisory on clarifications and revisions of the Feed-In- Tariff Allowance (FIT-All) adjustment for 2021 to 2025. The total FIT-All positive rate adjustment applicable to SP Calatagan was PhP 69 million o MTerra Solar achie
Slide 5: Q1 2026 vs. 2025 Financial Highlights
Q1 2026 vs. 2025 Financial Highlights Amounts in Million PhP Reported Income Core EBITDA 10,833 19,159 19,570 10,448 Q1 2025 Q1 2026 Q1 2025 Q1 2026 DU 12,273 q 2% Power Gen 6,626 25% Note: System-wide power sales volume at RES 1,827 9% 15,895 GWh, up 2% vs. 15,621 GWh in 2025 5
Slide 6: Q1 2026 System-Wide Power Sales Volume
Q1 2026 System-Wide Power Sales Volume Amounts in GWh System-wide power sales volume at 15,895 GWh, up 2% vs. 15,621 GWh in 2025 * Inclusive of sales volume of PELCO II 6
Slide 7: Q1 2026 vs. 2025 Segment Highlights
Q1 2026 vs. 2025 Segment Highlights Amounts in Million PhP Distribution Utility Power Generation RES & Service Subsidiaries CCNI Contribution 6,734 5,325 5,123 3,394 1,044 978 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Gross Revenues [a] 96,783 100,942 6,740 7,546 12,587 14,029 Q1 2025 Q1 202
Slide 8: Q1 2026 vs. 2025 Revenues
Q1 2026 vs. 2025 Revenues Amounts in Million PhP Rose 5% driven by higher pass-through Gross 2026 generation and transmission charges of Revenues 2025 the DU and higher Power Generation revenues Up 7% due to (i) purchased power contract price Generation, 2026 adjustments; (ii) higher fuel cost of ga
Slide 9: Q1 2026 vs. 2025 Costs & Expenses
Q1 2026 vs. 2025 Costs & Expenses Amounts in Million PhP Total Costs 2026 Up 7% due to higher purchased and Expenses 2025 power cost and OPEX Purchased Increased by 7% reflecting higher generation and 2026 transmission costs billed by the generation Power Costs 2025 companies and NGCP Increased by 1
Slide 10: Q1 2026 Power Generation CCNI Contribution
Q1 2026 Power Generation CCNI Contribution Amounts in Billion PhP PowerGen’s CCNI contribution 51% higher at PhP 5.1 billion vs. PhP 3.4 billion in 2025, driven by full-capacity operations and full 3 months contribution of LNGPH Q1 2026 PhP 5.1B Q1 2025 PhP 3.4B 3.9 MGas 2.5 3.4 MThermal 1.5 1.6 M
Slide 11: Q1 2026 vs. 2025 Capital Expenditures
Q1 2026 vs. 2025 Capital Expenditures Amounts in Million PhP Consolidated CAPEX largely for solar power plants, battery energy storage systems, and distribution network projects q 23% • New connections (PhP 1.3 billion) • Asset renewals (PhP 1 billion) • Load growth (PhP 1 billion) • Pole relocation
Slide 12: Q1 2026 vs. 2025 Credit and Debt Profile
Q1 2026 vs. 2025 Credit and Debt Profile Amounts in Million PhP Mar-26 Mar-25 Q1 2026 Total Debt and Breakdown Cash, cash equivalents & short-term 113,068 112,092 investments Gross debt 238,139 188,055 Net debt 125,071 75,963 Gross debt/EBITDA 3.2 2.6 47% Net debt/EBITDA 1.7 1.1 Gearing ratio 0.8 0.
Slide 13: Q1 2026 vs. 2025 Core and Reported EPS
Q1 2026 vs. 2025 Core and Reported EPS Amounts in PhP Core EPS was at PhP 10.137, up 2% year-on-year, while Reported EPS increased by 4% to PhP 9.611 CORE EPS REPORTED EPS Q1 2025 Q1 2026 Q1 2025 Q1 2026 13
Slide 14: Operational Performance Report
FIRST QUARTER ENDED MARCH 31, 2026 OPERATIONAL PERFORMANCE REPORT Media, Investors and Analysts Briefing
Slide 15: Q1 2026 Operational Highlights
Q1 2026 Operational Highlights DISTRIBUTION UTILITY Business Drivers Service Performance Electricity Rate per kWh Energy Sales System Loss (12-MMA) Average Retail Rate 12,273 GWh 5.72% PhP 12.39 q1.8% vs 12,493 in YTD 2025 q0.32 ppt vs 6.04 in YTD 2025 12% vs 11.06 in YTD 2025 DU Net System Input T
Slide 16: Customer Report
2026 Q1 OPERATIONAL HIGHLIGHTS CUSTOMER REPORT
Slide 17: Q1 2026 Consolidated Energy Sales
Q1 2026 Consolidated Energy Sales in GWh Sales slip by 1.8% in Q1 as all customer classes contract; cooler temperatures and operational disruptions offset gains from new customers 12,307 12,493 12,273 11,069 11,287 Sales Drivers: 10,879 10,473 4,144 4,257 4,111 34% 34% ◼ Residential 3,701 33% 3,365
Slide 18: Network Report
2026 Q1 OPERATIONAL HIGHLIGHTS NETWORK REPORT
Slide 19: Q1 2026 Networks Project Updates
Q1 2026 Networks Project Updates Energized Projects (January - March 2026) 166 MVA Supporting load growth and improving 2 1 service reliability in the following areas: Additional Capacity • Bocaue, Bulacan • Pandi, Bulacan PhP 959 Million • • Marilao, Bulacan Sta. Maria, Bulacan • Bulakan, Bulacan •
Slide 20: Regulatory Report
2026 Q1 OPERATIONAL HIGHLIGHTS REGULATORY REPORT
Slide 21: Actual Weighted Average Tariff Decision
Actual Weighted Average Tariff (AWAT 1) Decision ERC Case No. 2025-025RC (covering the period July 1, 2023 to December 31, 2024) ▪ March 14, 2025 – MERALCO received ERC Provisional Authority (PA) and was directed to refund PhP 19.96B at an average rate of PhP0.1189/kWh within 36 months (starting Apr
Slide 22: Revised Pass-through Taxes Resolution
Revised Pass-through Taxes (RPT, LFT, BT) Resolution ERC Resolution No. 9, Series of 2026 ▪ March 26, 2026: ERC promulgated ERC Resolution No. 09, Series of 2026 entitled “A Resolution Governing the Revised Rules on the Recovery of Pass-Through Taxes (Real Property, Local Franchise, and Business Tax
Slide 23: Pass-through Over/Under-Recoveries
Pass-through (Over)/Under-Recoveries (OUR) (Generation, Transmission, System Loss, Subsidies, Real Property Tax, and Local Franchise Tax for CY 2023-2025) ▪ March 31, 2026: MERALCO filed its Application for pass-through Over/Under-Recoveries (OUR) for the calendar years 2023 to 2025, wherein it incu
Slide 24: First Regulatory Period Application
Meralco’s First Regulatory Period (1RP) application Under PBR is currently underway ▪ February 2, 2026 – MERALCO filed its new 1RP Application under the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR) ▪ March 3, 2026 – Jurisdictional hearing and Expository presentation ▪ March 10,
Slide 25: Planned Competitive Selection Process
MERALCO’s Planned Competitive Selection Process (“CSP”) *Terms of Reference/Invitation to Bid awaiting DOE approval Supply Label Type Min MW PSA Start PSA End Publication 300.00 26 Feb. 2028 25 Feb. 2043 Baseload (600 MW) Base Apr. 2026* 300.00 26 Feb. 2029 25 Feb. 2044 600.00 26 Feb. 2031 25 Feb. 2
Slide 26: Unbundled Charges
Generation, Transmission, System Loss, Taxes UNBUNDLED CHARGES • Generation – P 8.3864/kWh; cost of electricity generated by power plants, moving monthly as cost is influenced by fuel prices and forex *Pie chart is based on Average 2025 MERALCO • Transmission – P 1.4567/kWh; cost of using transmissi
Slide 27: PowerGen Report
2026 Q1 OPERATIONAL HIGHLIGHTS POWERGEN REPORT
Slide 28: Operational Discipline Anchored on Health and Safety
Operational discipline anchored on health and safety >91 million safe man-hours* Q1 2026 33 First Aid Cases 7 Recordable Case 0 Loss Time Accident 0 Fatality *Running total
Slide 29: Energy Delivered Up by 25% Versus Q1 2025
Q1 2026 Energy delivered up by 25% versus Q1 2025 Year-to-Date Performance in GWh Business Unit Q1 2025 Q1 2026 % change Global Business Power 1,237 1,345 ▲ 9% San Buenaventura Power Ltd. Co. 844 870 ▲ 3% PacificLight Power 1,403 1,464 ▲ 4% LNGPH 1,636 * 2,712 ▲ 66% MGEN Renewable Energy Inc. 174 23
Slide 30: Power Generation Results of Operations
Q1 2026 Power Generation Results of Operations MGEN CCNI grew by 51% vs same period last year driven by stronger contribution from LNGPH, MGEN Thermal’s higher WESM sales, and higher volumes from PacificLight Consolidated Core Net Income Revenue Q1 2025 Q1 2026 Q1 2025 Q1 2026 PhP 3.4 B PhP 5.1 B Ph
Slide 31: Toledo BESS to Deliver First 25 MW in May
Toledo BESS to deliver first 25 MW (56.44MWh) in May Toledo BESS Toledo City, Cebu The Toledo Battery Energy Storage System (BESS) was successfully energized as load in March 2026. It is designed to enhance grid stability by providing fast-response power support that helps balance supply and demand,
Slide 32: PacificLight 670MW Hydrogen-Ready CCGT on Track
PacificLight 670MW Hydrogen-Ready CCGT on track with continued pre-execution works PacificLight Power Pte Ltd A Singapore Following the completion of PacificLight’s green transition financing for its planned 670MW hydrogen-ready Combined Cycle Gas Turbine (CCGT) plant last December, it is continuing
Slide 33: MTerra Solar Remains on Track by August 2026
MTerra Solar remains on track in fulfilling its 600 MW commitment by August 2026 The First Spark Energized as Generator Increased Generator Capacity PSA Commitment completed the initial grid up to 85 MW of mid-merit power 250 MW solar capacity energized 600 MW synchronization and energization being
Slide 34: MTerra Solar Energizes the Country's Largest Operational BESS
83% Phase 1 Progress 250 MW Solar capacity energized 450 MWh BESS energized MTerra Solar energizes the 24.8 million country’s largest Total Safe Manhours operational BESS. Figures as of end-March 2026 Photographed: BESS area
Slide 35: MGEN Signed a US Grant for Nuclear Study
MGEN signed a $2.8M US grant for nuclear study MGEN has signed a grant from the U.S. Trade and Development Agency (USTDA) to support its efforts for a safe and responsible adoption of nuclear energy for long-term security. Through the $2.8 million (P158 million) technical financial assistance, MGEN
Slide 36: MGEN Renewables-Operated Sites Achieves IMS Certification
MGEN Renewables-operated sites achieves Integrated Management System (IMS) Certification MGEN Renewables has been awarded IMS Certification by TÜV SÜD – Philippines, reinforcing its commitment to upholding global standards across its operations. The IMS certification covers ISO 9001 (Quality Managem
Slide 37: Managing Market Suspension While Ensuring Stable Power Supply
Managing market suspension while ensuring stable power supply The recent suspension of the Wholesale Electricity Spot Market (WESM) by the Energy Regulatory Commission (ERC), and the implementation of an administered pricing mechanism, reflects a necessary regulatory response to extraordinary market
Slide 38: MGEN Strengthens Its Portfolio
MGEN strengthens its portfolio amid a shifting global energy landscape Amid geopolitical tensions and global market volatility, MGEN actively manages its exposure to internationally traded fuels through a diversified 5,069.7 MW net sellable capacity portfolio and disciplined sourcing strategies – an
Slide 39: MGEN Supports the Government's Energy Efficiency Efforts
MGEN supports the government’s efforts on energy efficiency through SMART Aircon thermostat set at 24°C Segregated waste bins Development of carpool system Lights off during lunch Maximizing use of natural light for employees
Slide 40: Sustainability Report
2026 Q1 OPERATIONAL HIGHLIGHTS SUSTAINABILITY REPORT
Slide 41: Agenda Updates on Sustainability Programs
Agenda 1 Updates on Sustainability Programs a. Resource Conservation & Efficiency b. #Mbrace Diversity & Inclusion: Women’s Month 2 Sustainability Recognitions: 2026 Asia-Pacific Stevie Awards
Slide 42: Resource Conservation and Efficiency
1a Resource Conservation & Efficiency: Amid the energy crisis, we have intensified our longstanding commitment to stewarding efficient energy use… DU Q1 2026 Electricity Consumption Total Consumption 8.4 GWh Launched in 2020 to reduce energy and water 5.3% Reduction vs Q1 2025 consumption across DU
Slide 43: Extended Our Drive to Our Customers
1a … and extended our drive to our customers, inviting them to take part in Earth Hour and in One Meralco’s Solarization Program Earth Hour 2026 Advocacy via Social Media One Meralco Solarization Program
Slide 44: Mbrace Diversity and Inclusion
1b #Mbrace Diversity & Inclusion: In March, we honored Women’s Month with a series of events that celebrated unity and empowerment 2026 Meralco Women’s Month Forum Objectives • Increase women representation • Empower all employees (with a focus on women, LGBTQIA+ individuals, and PWDs) by providing
Slide 45: One Meralco Wins Big at the 2026 Asia-Pacific Stevies (1 of 2)
2 Bannered by a first-ever Grand Stevie Award, One Meralco wins big at the 2026 Asia-Pacific Stevies, with 12 distinctions (1 of 2) • Recognizes innovation in the • Winners determined by panel of workplace across 29 markets 100+ executives worldwide CAGBALETE GRAND STEVIE AWARD The Stevies’ highest
Slide 46: One Meralco Wins Big at the 2026 Asia-Pacific Stevies (2 of 2)
2 Bannered by a first-ever Grand Stevie Award, One Meralco wins big at the 2026 Asia-Pacific Stevies, with 12 distinctions (2 of 2) ESG-related One Meralco Melanie Oteyza Raymond Ravelo Meralco’s 2024 Integrated Report Chief Audit Executive Chief Sustainability Officer Greening the Network GOLD GOLD
Slide 47: Meralco
MERALCO #PoweringTheGoodLife X m7 é N Z, Z Z Z Z g Z LL 4a ne aS ZG Z Z) Z A Z) us! Na LLL
Slide 48: 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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