Manila Electric Co. · PSE:MER
Manila Electric — Q1 2015 Earnings Presentation
35 slides from Manila Electric's earnings presentation, Apr 27, 2015
Slide 1: Financial and Operating Results Investors and Analysts Briefing
Financial and Operating Results Investors and Analysts Briefing Quarter Ended March 31, 2015 April 27, 2015
Slide 2: Operations Report
Operations Report 1Q 20153
Slide 3: 2015 Operating Highlights
2015 Operating Highlights 2.3%* 3.9%* 2.2%* 2.7%* +117 MW +229 GWh +184 GWh +208,821 customers Meralco Energy Sales Customer Count Peak Demand NSI 1Q 2015 1Q 2015 1Q 2015 1Q 2015 Within P8.89/kWh Regulatory Business Limits Updates Gen.Ch. 55.4% Dist. Ch. 17.5% Ave. Retail Rates S-Factor & GSL** 1Q 2
Slide 4: Details
Slide 5: Energy Sales, 1Q 2015
Energy Sales, 1Q 2015 MONTHLY GROWTH Energy sales Up 2.3% vs. 2014 (+184 GWh) Movers* for 2015: 2.3% 1.7% 8,092 1.5% 31.9% 3.0% 1.2% 7,908 INDUSTRIAL 7,777 Food & Beverages 7,687 Electrical Machinery 39.7% Misc. Manufactures COMMERCIAL 9.9% Private Services 28.0% Real Estate Trade RESIDENTIAL 6,991
Slide 6: Customer Count, 1Q 2015
Customer Count, 1Q 2015 Up 3.9% vs. 2014 (+208,821 new customers) Segment share for 2015: 3.9% 5.63 4.0% 91.5% 2.4% 3.5% RESIDENTIAL 5.42 5.15 million 3.3% 5.23 Customers 8.3% 3.7% 5.07 COMMERCIAL 0.466 million 4.89 0.2% Customers INDUSTRIAL 9,854 1.2% Customers in million customers 4,492 Flat Strt
Slide 7: Clark Electric (CEDC), 1Q 2015
Clark Electric (CEDC), 1Q 2015 Strong growth in Energy Sales and NSI vs. 2015 Energy Sales, GWh Customer Count 0.1% 15.7% 1,836 1,834 115.0 99.4 2014 2015 2014 2015 NSI, GWh 2015 Sales, Share Count, Share 15.5% Commercial 36.4% 56.5% 121.5 105.2 Industrial 62.6% 7.0% Residential 0.7% 33.3% Flat Stre
Slide 8: NSI, 1Q 2015 Peak Demand, 1Q 2015
NSI, 1Q 2015 Peak Demand, 1Q 2015 Up 2.7% vs. 2014 (+228.6 GWh) 5,522 MW, 2.2% Up vs. 2014 Meralco YTD Peak Demand, MW: 2014 Peak, May 21 6,121 Mar 2015 YTD, GWh: 5,405 5,522 * 2.2% 8,472.9 8,701.5 2.7% 2014 2015 Luzon YTD Peak Demand, MW: 2014 2015 2014 Peak, May 21 8,717 7,655 7,878 * 2.9% NSI inc
Slide 9: Power Sources & Fuel Mix, 1Q 2015
Power Sources & Fuel Mix, 1Q 2015 SOURCE GWh Share Natural Gas PSAs-Total 3,537.4 40.7% PSA 47.9% SEM-Calaca 448.4 5.2% 40.7% MPPC-Masinloc 450.6 5.2% IPP 1.5% TLI-Pagbilao 459.0 5.3% 34.0% Multi-fuel Coal SMEC-Sual + CEDC 673.1 7.7% RES 15.8% 36.3% 20.1% WESM SPPC-Ilijan 1,379.9 15.9% 3.2% Others*
Slide 10: Average Retail Rate, 1Q 2015
Average Retail Rate, 1Q 2015 7.0% lower vs. 2014 (-67¢/kWh) Generation Charge, largest component in customer’s bill, 55.4%; Meralco 17.5%; NGCP 10.6% 1Q 2014 1Q 2015 BILL COMPONENT Overall Ave, P/kWh Overall Ave, P/kWh ∆ Generation Charge* 5.43 4.93 Generation -0.50 Distribution Charge** Transmissio
Slide 11: System Loss Performance, Mar. 2015, 12-MMA
System Loss Performance, Mar. 2015, 12-MMA Monthly 12-MMA ending March 2015 at 6.50% Improved by 0.09%pts vs. March 2014’s 6.59% Lower by 2.00% vs. SL cap of 8.5% 8.5% SL CAP, 2010-PRESENT YEAR AGO 12-MMA (Apr '13 - Mar '14) LATEST 12-MMA (Apr '14 - Mar '15) 2.00% 7.08 6.66 6.59 6.46 6.52 6.50 Apr M
Slide 12: S-Factor & GSL Performance, Mar 2015 & RY2015
S-Factor & GSL Performance, Mar 2015 & RY2015 (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 interrupti
Slide 13: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business Electric Capital Projects NGCP Batangas (Mahabang Parang) - Expansion of FBGC-4 GIS Substation Meralco Batangas 69 kV Lines Details • Completion: Feb 24, 2015 • Construction of 2- 69 kV lines from NGCP’s Batangas Details Substation to Meralco’s Batan
Slide 14: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business Electric Capital Projects (Generator Interconnection Projects) Botocan HEPP Millennium Gas Turbine Alternergy Wind One Corp Interconnection Power Plant (MGTPP) (AWOC) Interconnection Interconnection Meralco Metering Yard Details Details • March 20 –
Slide 15: Confronting Thinning Power Supply during Summer 2015
Confronting Thinning Power Supply during Summer 2015 3 Pillars of Meralco’s Support DETAILS (~820 MW) *819.96 MW signed out of the committed 923.14 MW, as of April 21, 2015
Slide 16: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business PRES e-Vehicle Comms ERC TOUR CUSTOMER ENGAGEMENTS ENERGY EFFICIENCY & SAVINGS PROGRAMS WITH GOVT AGENCIES ATENEO EV SHUTTLE LEASING WITH LGU COMET eJEEP DEPLOYMENT WITH NHA
Slide 17: Business Updates: Strengthening the Core Business
Business Updates: Strengthening the Core Business OTHER EVENTS SHELL ECO-MARATHON INAUGURATION LUMINARIES 2015 SHARING BEST PRACTICES IN POWER AND ENERGY TEPCO PARTNERSHIP GLOBAL LINEMAN TRAINING CENTER
Slide 18: Regulatory Updates
Regulatory Updates 1Q 20153
Slide 19: Amended Rules to Govern the ILP
Amended Rules to Govern the ILP ERC Resolution No. 5, Series of 2015 • Highlights of amendments • Scope • Administrators: DUs & NGCP • Participants: Captive customers, contestable customers, locators in • Approved by the ERC economic & freeport zones, directly- on 6 Apr 2015, released connected cust
Slide 20: Interruptible Load Program (ILP) Participation
Interruptible Load Program (ILP) Participation (As of 21 April 2015) Total Signed-Up Deloading Deloading Count of Count of Customer Type Potential Capacity Capacity Services Services (MW) (MW) Captive (Private) 412.39 402.37 227 10.02 10 Captive (Gov’t) 1.70 1.70 1 CAPTIVE Total 414.09 404.07 228 10
Slide 21: ERC directs Generating Companies to report outages
ERC directs Generating Companies to report occurrence of and resumption of operations from outage • ERC Res. No. 4, Series of 2015: released 23 Apr 2015 • Unplanned outage, from Occurrence • Within 3 hours (via SMS to ERC): Type of outage, name of generation facility/unit, total capacity on outage,
Slide 22: Unplanned outage, from Resumption
ERC directs Generating Companies to report occurrence of and resumption of operations from outage • Unplanned outage, from Resumption • Within 3 hours (via SMS to ERC): Type of unplanned outage, name of generation facility/unit, total capacity on outage, date & time of occurrence, date & time of res
Slide 23: ERC directs Generating Companies to report occurrence of and resumption of operations from outage
ERC directs Generating Companies to report occurrence of and resumption of operations from outage • Planned outage • At least 10 days prior to implementation (via email or fax): Type of outage, name of generation facility/unit, total capacity on outage, date & time of occurrence, expected date & tim
Slide 24: ERC directs DUs and Generation Companies to jointly file Power Supply Agreements
ERC directs DUs and Generation Companies to jointly file Power Supply Agreements ERC promulgated ERC Resolution No. 2, Series of 2015 entitled “A Resolution Directing Distribution Utilities and Generation Companies to Jointly File with the Commission their Respective Applications for the Approval of
Slide 25: MGen Updates
MGen Updates 1Q 20153
Slide 26: San Buenaventura Power Limited
San Buenaventura Power Limited (455 MW (net) Coal-Fired Power Plant, Quezon) Power Supply Agreement with MERALCO Signed on 30 May 2014 and submitted to the ERC for approval on 2 June 2014. All hearings concluded last year. ERC decision is expected in April 2015. Financing Final stages of evaluation
Slide 27: Redondo Peninsula Energy
Redondo Peninsula Energy (600 MW CFB Coal-Fired Power Plant, Subic) Supreme Court resolution on 03 Feb 2015 by a unanimous 13-0 vote: The 30 Jan 2013 Decision and 22 May 2013 Resolution of the Court of Appeals are reversed and set aside. The Petition for Writ of Kalikasan is denied for insufficiency
Slide 28: Atimonan One Energy
Atimonan One Energy (2 x 600 MW PC Coal-Fired Power Plant, Quezon) Engineering, Procurement and Construction (EPC) prequalification process completed. Request for Proposal (RfP) to be issued in April 2015. Environmental Impact Statement submitted to and being reviewed by DENR- EMB. Interconnection a
Slide 29: Global Business Power Corporation (GBPC)
Global Business Power Corporation (GBPC) GBPC’s Toledo Power Corporation completed construction of its 1 x 82-MW CFB coal-fired power plant expansion. Achieved commercial operation in Dec 2014. GBPC’s Panay Energy Development Corporation has completed 40.1% as of March 19, 2015 of the 150-MW coal-fi
Slide 30: Financial Highlights
Financial Highlights 1Q 20153
Slide 31: Revenues, EBITDA and Net Income
Revenues, EBITDA and Net Income CONSOLIDATED REVENUES (in P mn) EBITDA (in P mn) AND MARGINS & ENERGY SALES (in GWh) 10,000 CORE REPORTED 8,227 8,227 8,000 7,450 7,450 6,000 70,000 8,200 62,589 14% 13% 14% 13% 8,150 4,000 60,000 55,109 8,100 2,000 50,000 8,092 8,050 0 4.0% 40,000 Q1 2014 Q1 2015 Q1
Slide 32: Costs and Expenses
Costs and Expenses TOTAL COSTS AND EXPENSES (in P mn) 2,558 39,759 48,124 5,444 8,365 Purchased Power - Generation Purchased Power - Transmission Operating Expenses Depreciation and Others CAPITAL EXPENDITURES (in P mn) MAJOR ELECTRIC CAPITAL PROJECTS IN Q1 2015: 3,041 • NGCP Batangas (Mahabang Para
Slide 33: Credit and Debt Profile
Credit and Debt Profile TOTAL DEBT (in P mn) 35,122 29,800 (in P mn except ratios) Q1 2014 Q1 2015 27,922 Cash 63,942 64,437 15% 27,375 Total Debt 35,122 29,800 7,200 2,425 Q1 2014 Q1 2015 Net Debt (28,820) (34,638) Current Maturities Non-current Maturities DEBT REPAYMENT SCHEDULE (in P mn) Total De
Slide 34: Thank You
Slide 35: Cautionary Statements
Cautionary Statements This presentation is prepared for the participants of the MERALCO Investors and Analysts Briefing & Teleconference held on April 27, 2015. This presentation has consequential limitations and is not a comprehensive discussion about Manila Electric Company and Subsidiaries (MERAL
Manila Electric Company (Meralco) — Q1 2015 Earnings Presentation on 6ix