Manila Electric Co. · PSE:MER
Manila Electric — Q1 2025 Earnings Presentation
40 slides from Manila Electric's earnings presentation, Apr 28, 2025
Slide 1: First Quarter Ended March 31, 2025 Financial and Operational Highlights
FIRST QUARTER ENDED MARCH 31, 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS Media, Investors and Analysts Briefing April 28, 2025
Slide 2: Financial Performance
FIRST QUARTER ENDED MARCH 31, 2025 FINANCIAL PERFORMANCE Media, Investors and Analysts Briefing April 28, 2025
Slide 3: Strong start in 2025 across the business portfolio
Strong start in 2025 across the business portfolio • 11% increase in CCNI o DU share at 60% vs. 58% in 2024; o Power Generation accounted for 31% vs. 27% in 2024 • MGEN achieved new milestones for MTerra Solar as it secured PhP 150 billion project financing and PhP 10 billion equity infusion from Ac
Slide 4: Q1 2025 vs. 2024 Financial Summary
Q1 2025 vs. 2024 Financial Summary Amounts in Million PhP Reported Income Core EBITDA CAPEX p 9% 10,448 p 8% 19,159 p 169% 25,399 9,597 17,791 p 11% 9,435 Q1 2024 Q1 2025 Cash & Cash Equivalents 103,124 p 9% Q1 2024 Q1 2025 Q1 2024 Q1 2025 94,523 Gross Revenues Costs & Expenses 116,000 114,511 103,0
Slide 5: Q1 2025 vs. 2024 Revenues
Q1 2025 vs. 2024 Revenues Amounts in Million PhP Up by 10% with higher sales 2025 volumes of the DU, Power Gen and Gross RES; increase in pass-through Revenues 2024 charges; and higher revenues of MGEN from the Reserve Market Generation, 2025 Up 11% due to higher natural gas prices, Peso Transmissio
Slide 6: Q1 2025 vs. 2024 Costs and Expenses
Q1 2025 vs. 2024 Costs and Expenses Amounts in Million PhP Total Costs 2024 Up 10% due to higher purchased and Expenses 2023 power cost and OPEX Purchased 2024 Increased by 13% due to higher generation and Power Costs 2023 transmission charges Increased by 5%, primarily covering manpower, OPEX contr
Slide 7: Q1 2025 vs. 2024 Capital Expenditures
Q1 2025 vs. 2024 Capital Expenditures Amounts in Million PhP Consolidated CAPEX driven by development of solar projects and distribution network improvement projects p 169% Networks CAPEX for new connections (PhP2.1 billion), asset renewals (PhP 1.4 billion), load growth (PhP 1.9 billion), and pole
Slide 8: Q1 2025 Power Generation Results of Operations
Q1 2025 Power Generation Results of Operations Strong performance from Power Generation driven by higher plant availability of GBP, SBPL and PacificLight, income from Reserve Market and contribution of Chromite Gas PhP 1.1 Billion PhP 1.2 Billion PhP 203 Million* PhP 3.1 Billion PhP 1.7 Billion Core
Slide 9: Q1 2025 vs. 2024 Credit and Debt Profile
Q1 2025 vs. 2024 Credit and Debt Profile Amounts in Million PhP Mar-25 Mar-24 %△ 2025 Total Debt and Breakdown Cash & cash equivalents 103,124 94,523 9% Short-term investments 8,968 5,072 77% Gross debt 188,055 100,160 88% Net debt 75,963 565 13345% 61% Gross debt/EBITDA 2.6 1.5 79% Net debt/EBITDA
Slide 10: Q1 2025 vs. 2024 Earnings per Share
Q1 2025 vs. 2024 Earnings per Share Amounts in PhP Core EPS at PhP 9.912, up by 11% versus 2024; Reported EPS at PhP 9.270 up by 9% Q1 2024 Q1 2025 Q1 2024 Q1 2025 CORE EPS REPORTED EPS 10
Slide 11: Operational Performance
FIRST QUARTER ENDED MARCH 31, 2025 OPERATIONAL PERFORMANCE Media, Investors and Analysts Briefing April 28, 2025
Slide 12: Q1 2025 Operational Highlights
Q1 2025 Operational Highlights DISTRIBUTION Business Drivers Service Performance Electricity Rate Energy Sales System Loss (12-MMA) Average Retail Rate 12,493 GWh 6.04% PhP 11.06 per kWh p1.5% vs 12,307 in YTD 2024 p0.14 ppt vs 5.90 in Mar 2024 p2.6% vs 10.78 in YTD 2024 DU Net System Input Total SA
Slide 13: Customer Report
FIRST QUARTER ENDED MARCH 31, 2025 CUSTOMER REPORT Media, Investors and Analysts Briefing April 28, 2025
Slide 14: Q1 2025 Consolidated Energy Sales in GWh
Q1 2025 Consolidated Energy Sales in GWh Slightly grew 1.5% vs. high base and 1-day difference vs. 2024 leap year 12,307 12,493 11,287 DU Sales Drivers 10,878 11,070 10,473 p 1.5% ◼ Residential 4,144 4,257 Grew 2.8% vs. high base in 2024 mainly driven by 3,701 34% 34% 3,365 3,808 ramp up of newly en
Slide 15: Network Report
FIRST QUARTER ENDED MARCH 31, 2025 NETWORK REPORT Media, Investors and Analysts Briefing April 28, 2025
Slide 16: Q1 2025 Networks Project Updates
Q1 2025 Networks Project Updates Expansion of FBGC-2 115 kV – 34.5 kV Gas- Expansion of Malinta 115 kV-34.5 kV Gas- Development of Mesaland 115 kV – 34.5 kV Insulated Switchgear Substation (2nd Bank) Insulated Switchgear Substation (2nd Bank) Substation ▪ Energized on January 28, 2025 ▪ Energized on
Slide 17: Regulatory Report
FIRST QUARTER ENDED MARCH 31, 2025 REGULATORY REPORT Media, Investors and Analysts Briefing April 28, 2025
Slide 18: ERC Order (PA) on MERALCO's AWAT Application
ERC Order (PA) on MERALCO’s AWAT Application ERC Case No. 2025-025RC On January 28, 2025, Meralco’s New AWAT Application was filed for the true-up of its Maximum Average Price (MAP) of PhP1.3522/kWh versus AWAT covering the period declared as lapsed (July 1, 2022 - June 30, 2025). ▪ Difference in AW
Slide 19: ERC Approval of Additional 290 MW Contract Capacity PSA with SPPC
ERC’s Notice of Resolution Approval of Additional 290 MW Contract Capacity PSA with South Premiere Power Corp. (“SPPC”) ▪ In an Order dated May 9, 2024, the ERC granted Provisional Authority to implement the PSA between MERALCO and SPPC dated February 5, 2024, covering only 910 MW out of the applied
Slide 20: Capacities for Competitive Selection Process
Capacities for Competitive Selection Process On April 16, 2025, MERALCO posted its 2025 Power Supply Procurement Plan (PSPP) which was approved by the DOE in a letter dated April 11, 2025.
Slide 21: First Quezon Biogas Corporation's USP for 1.4 MW
First Quezon Biogas Corporation’s (“FQBC”) USP for 1.4 MW Background ▪ Section 2.3 of DOE DC2023-06-0021 allows exemption from Competitive Selection Process (CSP) “supply from any generating plant embedded in [DU’s] franchise area utilizing renewable energy resources, wherein the contracted capacity
Slide 22: New 5RP Application
New 5RP Application ERC Case No. 2025-035 RC ▪ February 7, 2025: MERALCO filed its new 5RP Application in accordance with ERC Resolution No. 17, Series of 2024, entitled, “A Resolution Adopting the Amendments to ERC Resolution No. 10, Series of 2021.” ▪ February 10, 2025: ERC Order set a series of h
Slide 23: Republic Act No. 12146 MERALCO Franchise Renewal
Republic Act No. 12146 MERALCO Franchise Renewal ▪ April 11, 2025: President Bongbong Marcos Jr. signed Republic Act No. 12146 renewing the franchise granted to MERALCO for another twenty-five (25) years from the expiration of the current franchise granted under RA 9209. ▪ April 16 & 17, 2025: RA 12
Slide 24: Power Generation Operating Results
POWER GENERATION OPERATING RESULTS Media, Investors and Analysts Briefing April 28, 2025
Slide 25: Maintaining strong health and safety performance across all sites
Maintaining strong health and safety performance across all sites >46 million Safe man-hours as of March 2025 ZERO ▪ Loss Time Accident ▪ First Aid Case ▪ Fatality ▪ Recordable Case
Slide 26: Energy delivered in Q1 2025 up by 64% versus Q1 2024
Energy delivered in Q1 2025 up by 64% versus Q1 2024 Year-to-Date Performance in GWh Plant Q1 2024 Q1 2025 % Change LNGPH Complex Batangas City 1,177 1,237 p5% 561 844 p50% 1,327 1,403 p6% 164 174 p6% - 1,636 - 3,229 5,294 p64% Note: Energy delivered is comprised of contracted capacities and partici
Slide 27: Delivery of MTerra Solar's first phase on track for early 2026
Delivery of MTerra Solar’s first phase remains on track for early 2026 35% Overall project completion as of March 31, 2025 100% Land acquisition for Phase 1 50% Land acquisition for Phase 2 83% Tower sites for the project’s transmission line secured
Slide 28: MTerra Solar signs Philippines' largest financing deal at ₱150 billion
MTerra Solar signs Philippines’ largest financing deal at ₱150 billion
Slide 29: Actis' US$600 million investment for 40% equity stake in MTerra Solar
MTerra Solar gains global momentum with Actis’ US$600 million investment for 40% equity stake
Slide 30: MGreen inaugurates three new solar facilities totaling 152.7 MWac
MGreen powers up with the inauguration of three (3) new solar facilities totaling 152.7 MWac MGreen Bongabon Solar MGreen Cordon Solar MGreen Baras Solar Bongabon, Nueva Ecija Cordon, Isabela Baras, Rizal 19.8 MWac 52.8 MWac 80.1 MWac
Slide 31: MGEN now holds 40.2% stake in integrated LNG facility
MGEN now holds 40.2% stake in Philippines’ first and most expansive integrated LNG facility
Slide 32: PacificLight advances expansion of hydrogen-ready CCGT plant
PacificLight advances expansion of the largest hydrogen-ready CCGT plant and existing facility PacificLight Power Pte Ltd. Jurong Island, Singapore PacificLight continues to expand its Combined Cycle Gas Turbine (CCGT) facility with a new 600 MW plant on Jurong Island, scheduled for commercial opera
Slide 33: Powering the good life through inclusive, sustainable community impact
Powering the good life through inclusive, sustainable community impact For its host communities in Nueva Ecija, MTerra Solar installed solar- powered streetlights across seven barangays to enhance road safety, conducted job readiness training for 630 scholars, and set up temporary marketplaces to su
Slide 34: One Meralco Sustainability Report
ONE MERALCO SUSTAINABILITY REPORT Media, Investors and Analysts Briefing April 28, 2025
Slide 35: Updates
Updates 1 ESG Performance a. MSCI ESG Rating b. CDP Climate and Water Scores 2 Sustainability Recognitions a. Asia Sustainability Reporting Awards (ASRA) b. International Tax & Investment Conference Award
Slide 36: Meralco maintained its BBB ESG Rating from MSCI
Meralco maintained its “BBB” ESG Rating from MSCI with strong performance in Greenhouse Gas (GHG) emissions disclosures and corporate behavior • 8,500+ companies rated on general and industry-specific ESG issues • Rating system: 0 / CCC (lowest) to 10 / AAA (highest) ESG Rating Highlights: BBB BBB B
Slide 37: Climate Change and Water Security scores by CDP
Meralco sustained both its Climate Change and Water Security assessment scores by the Carbon Disclosure Project (CDP) • International non-profit organization formerly known as the Carbon Disclosure Project • Rates companies based on their risks, opportunities, and impacts on climate change and water
Slide 38: 2023 Combined Annual and Sustainability Report wins at ASRA
Meralco’s 2023 Combined Annual and Sustainability Report notches major win in Asia Sustainability Reporting Awards (ASRA) SILVER Asia’s Best Sustainability Report (Governance) Asia Sustainability Reporting Awards 2024 • Recognizes best companies GOLD across Asia in sustainability reporting, promotin
Slide 39: Excellence in Sustainable Cities at International Tax and Investment Conference
Meralco recognized for Excellence in Sustainable Cities at the International Tax and Investment Conference 2025 We recognize Meralco for its exceptional efforts and impactful projects, such as MGreen, long-term sustainability strategy, and investments – showcasing your commitment to sustainability a
Slide 40: 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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