Q1 Consolidated Financial and Operational Performance Report

Media, Investors and Analysts Briefing

May 4, 2026

Media, Investors and Analysts Briefing

• 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 billion, up 51%; 45% of CCNI

• Sales volume at 6,626 GWh, up 25% from 5,294 GWh last year mainly driven by LNGPH's full quarter

  volume

• Thermal plants:

  • Generated PhP 1.2 billion revenue from the Reserve Market

  • On January 26, 2026, the ERC granted PEDC's CIC claim representing unrecovered losses from September 26 to December 4, 2022 of PhP 380.6 million

    3

    
    
    Power Generation
    
    

• MGen Renewables:

  • 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 6G million

  • MTerra Solar achieved key milestones in March, beginning with the delivery of an initial 85 MW of clean energy to the Luzon Grid on March 14. This output was progressively ramped up to 250 MW by the end of the month, in line with grid integration parameters of the National Grid Corporation of the Philippines (NGCP). Complementing this, the project successfully energized the first tranche of its battery energy storage system (BESS), enabling the delivery of 450 MWh (equivalent to 112.5 MW) of stored energy to the grid during nighttime hours. Total energy sold for the month reached

    10.6 GWh

  • On March 18, 2026, NGCP issued a Provisional Certificate of Approval to Connect (PCATC) for 3 Barracuda Energy Corp's (Lasso) 450 MWac solar power plant in Bugallon, Pangasinan. Lasso started delivering power to the grid at 50 MW, ramping up to 300 MW by March 31. It generated total energy of 7.7 GWh

    Retail Electricity Supply (RES)
    
    

• Sales volume of 1,827 GWh up by G%, mainly from new customer accounts

4

Reported Income

10,448

▲

10,833

Q1 2025

Q1 2026

▲

Core EBITDA

19,159

▲

19,570

Q1 2025

Q1 2026

Note: System-wide power sales volume at 15,895 GWh, up 2% vs. 15,621 GWh in 2025

5

System-wide power sales volume at 15,8G5 GWh, up 2% vs. 15,621 GWh in 2025

* Inclusive of sales volume of PELCO II

6

▲

Q1 2026

Q1 2025

Q1 2026

Q1 2025

Q1 2026

Q1 2025

978

1,044

3,394

5,123

5,325

6,734

CCNI Contribution

Q1 2026

Q1 2025

Q1 2026

Q1 2025

Q1 2026

Q1 2025

14,029

12,587

7,546

6,740

100,942

96,783

Gross Revenues[a]

Note: System-wide power sales volume at 15,895 GWh, up 2% vs. 15,621 GWh in 2025

Q1 2026

Q1 2025

Q1 2026

Q1 2025

Q1 2026

Q1 2025

1,467

1,754

7,662

6,041

10,441

11,364

Core EBITDA

[a] Gross of eliminations

7

Gross Revenues

Generation, Transmission and others

Distribution

Energy

Fee

Non-electric

202C

2025

202C

2025

Q1 2026 Revenues Breakdown

8

Total Costs and Expenses

Purchased Power Costs

OPEX

202C

2025

202C

2025

Depreciation s Amortization

Coal and Fuel Power Plant OsM

Others

Q1 2026 Costs s Expenses Breakdown

9

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

3.4

▲

Q1 2026 PhP 5.1B

Q1 2025 PhP 3.4B

MGas

MThermal

MGreen, MGEN Parent and others

(0.6)

10

Consolidated CAPEX largely for solar power plants, battery energy storage systems, and distribution network projects

▼ 23%

• New connections (PhP 1.3 billion)

• Asset renewals (PhP 1 billion)

• Load growth (PhP 1 billion)

• Pole relocation works to support government infrastructure projects (PhP 0.03 billion)

• Non-electric projects (PhP 2.3 billion)

2S%

• 3,500 MWdc MTerra Solar with 4,500 MWh BESS

• 49 MW BESS (Toledo, Cebu)

• 31.8 MW SP Tarlac expansion

71%

11

Q1 2026 Total Debt and Breakdown

52%

0%

Interest expense 2,085 2,056

Debt Repayment Schedule

12

Core EPS was at PhP 10.137, up 2% year-on-year, while Reported EPS increased by 4% to PhP G.611

CORE EPS REPORTED EPS

Q1 2025 Q1 2026 Q1 2025 Q1 2026

13

Media, Investors and Analysts Briefing

DISTRIBUTION UTILITY

Business Drivers Service Performance

Electricity Rate per kWh

Energy Sales

12,273 GWh

▼1.8% vs 12,493 in YTD 2025

System Loss (12-MMA)

5.72%

▼0.32 ppt vs 6.04 in YTD 2025

Average Retail Rate

PhP 12.3G

▲12% vs 11.06 in YTD 2025

DU Net System Input

12,640 GWh

▼2.3% vs 12,937 in YTD 2025

Total SAIFI

0.150 times

▼19% vs 0.185 in YTD 2025

Meralco Peak Demand

7.G1 GW

March 6, 2026

▼5.1% vs 8.34 in Mar 2025

Customer Count

8.260 Million

▲2.2% vs 8.083 Million in YTD 2025

Total SAIDI

16.112 minutes

▼23% vs 20.943 in YTD 2025

Time to Connect

2.22 days

▼6% vs 2.36 in YTD 2025

• 12-MMA - 12-Month Moving Average • SAIFI - System Average Interruption Frequency Index • SAIDI - System Average Interruption Duration Index

• Estimated year-to-date incremental losses from solar at 40 GWh (170 GWh vs 130 GWh in 2025; 31% increase)

2026 Q1 OPERATIONAL HIGHLIGHTS

Sales slip by 1.8% in Q1 as all customer classes contract; cooler temperatures and operational disruptions offset gains from new customers

Sales Drivers:

• Residential

  Sales fell by 3.4% as cooler weather softened demand

• Commercial

  Slightly down by 0.8% as cooler temperature, reduced HVAC usage and vacancies offset gains from Restaurants

• Industrial

Slipped by 1.0% as operational disruptions and steel raw material constraints offset gains from Semicon and Cement.

12,307 12,493 12,273

10,879

10,473

11,069

11,287

3,365

31%

3,616

35%

3,808

34%

3,701

33%

4,144

34%

4,257

34%

4,111

33%

▼

4,343

40%

3,560

34%

3,781

34%

4,213

37%

4,67G

38%

4,744

38%

4,704

38%

3,135

29%

3,261

31%

3,443

31%

3,336

30%

3,448

28%

3,455

28%

3,420

28%

Parent is 99% | CEDC + SCPC is 1% |

Flat Streetlights account for < 1% | 1Q 2026: 38 GWh

2026 Q1 OPERATIONAL HIGHLIGHTS

Capac2ity Addition Projects

Reliabilit1y Improvement Project

166 MVA

Additional Capacity

Supporting load growth and improving service reliability in the following areas:

PhP G5G Million

Total Capital Expenditures

(ERC-filed amount)

• Bocaue, Bulacan

• Marilao, Bulacan

• Sta. Maria, Bulacan

• Meycauayan, Bulacan

• Balagtas, Bulacan

• Pandi, Bulacan

• Bulakan, Bulacan

• General Trias, Cavite

  
  
  

  Development of New Bocaue

  115 kV-34.5 kV GIS Substation

  • Energized on February 27, 2026

  • CAPEX: PhP 549.10 million (ERC filed amount)

Replacement of 34.5 kV Switchgear No.1

at Gateway Substation

• Energized on March 01, 2026

• CAPEX: PhP 52.27 Million (ERC filed amount)

  Expansion of Balagtas

  115 kV-34.5 kV Substation (2nd Bank)

• Energized on March 19, 2026

• CAPEX: PhP 357.89 Million (ERC filed amount)

  
  
  
  
  

  2026 Q1 OPERATIONAL HIGHLIGHTS

  REGULATORY REPORT
  
  
  
  

  • 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 April 2025), or until fully refunded.

  • April 22, 2026 - ERC released the Decision for the AWAT Case. MERALCO is to refund the remaining unrefunded amount as of the February 2026 billing month amounting to PhP 14.17B at an average refund rate of PhP 0.2511/kWh, effective on May 2026 billing. Implementation period shall be within 12 months, or until the remaining amount is fully refunded.

    	Existing Refund Rate (PhP/kWh) April 2025 - April 2026 Billing	New Refund Rate (PhP/kWh) May 2026 onwards
    Period of Refund	36 months	12 months
    Residential and General Service A	(0.2024)	(0.4278)
    General Service B	(0.1308)	(0.2778)
    General Power	(0.0587)	(0.1239)
    GHMSCI	(0.0845)	(0.1674)
    Flat Streetlights	(0.2202)	(0.4185)
    Generator Wheeling	(0.0169)	(0.0359)
    Average Refund Rate	(0.118G)	(0.2511)

  • AWAT 2 (January to June 2025) for PhP 4.69B and AWAT 3 (July to December 2025) for PhP 4.32B are both pending with the

    ERC, with initial hearings scheduled for May 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 Taxes) of Distribution Utilities"

  • Rules were published on April 2, 2026 and became effective on April 17, 2026.

    Salient amendments from the previous Rules are the following:

    1. Revised Rules removed the provision of limiting the scope to taxes paid for the year 2021 onwards. Tax arrearages, excluding interests, penalties and other charges, imposed on and paid by DUs for the years prior to the effectivity of the Rules shall be allowed recovery.

       • For PDUs, the proposed recovery shall be filed with the Commission within sixty (60) days from effectivity of these Rules or by June 16, 2026.

       • Initial RPT amount for filing and collection is around PhP3.9B.

    2. Inclusion of RPT paid "on properties covered by usufruct agreements" in the scope of pass-through RPT, upon finalization of the Regulatory Reset Process for the next Regulatory Period of the DU

    3. ERC Post Audit requirement that DUs shall retain relevant documents for at least 10 years from the

       expiration of DUs' franchise.

       
       
       
       
       

  • March 31, 2026: MERALCO filed its Application for pass-through Over/Under-Recoveries (OUR) for the calendar years 2023 to 2025, wherein it incurred net under-recovery of PhP 555.48 Million for generation, transmission, and system loss charges, subsidies, RPT, and LFT.

• TOUR and SLOUR rates are based on average rates. Application proposed rates are per customer class.

• RPT pertains to payments and recoveries for machineries only, in accordance with Pass-through Taxes Resolution

• LFTOUR is computed on a per LGU basis. Amount presented above is total LFTOUR for 39 cities/provinces while rate is an average rate.

• 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, 2026 - Pre-trial hearing

• April 6 to 16, 2026 - Evidentiary hearings. MERALCO presented 13 witnesses.

• April 17, 2026 - Formal Offer of Evidence filed by MERALCO.

• April 30, 2026 - Presentation of witnesses/evidences by intervenors.

• June 2026 - Expected release of ERC Decision

*Terms of Reference/Invitation to Bid awaiting DOE approval

*Pie chart is based on Average 2025 MERALCO

Electricity Bill

Given rates are based on April 202c Typical Residential Bill (200 kWh)

Generation, Transmission, System Loss, Taxes

• Generation - P 8.3864/kWh; cost of electricity generated by power plants, moving monthly as cost is influenced by fuel prices and forex

• Transmission - P 1.4567/kWh; cost of using transmission system and ancillary

  services, adjusted monthly

• System Loss - P 0.7752/kWh; difference between energy generated and received by end-users recovered up to SL cap, moving monthly due to changes in system loss levels and monthly movement of generation and transmission cost

  Taxes

  8%

  System Loss 5%

  Transmission 8%

  Others, 3%

  MERALCO (DSM)

  12%

  Generation

  64%

  32

• Taxes - P 1.4460/kWh; LFT, RPT, VAT, Energy Tax (for residential 650 kWh and above)

  Others

  • FIT-All - P 0.2011/kWh; for RE development; cover the difference between the revenues based on FIT rates and actual revenues of plants from WESM; rate set by the ERC per technology

  • GEA-All - P 0.0371/kWh; for RE development; covers the difference between the contracted price as result of auction and the actual revenues of plants from WESM

  • Universal Charges - P 0.3216/kWh; missionary electrification for far-flung areas, watershed rehabilitation and management, NPC debt servicing (NPC loans prior to EPIRA), admin by PSALM

  • Lifeline Discount/Subsidy - P 0.0100/kWh; discount for marginalized/4Ps shouldered by the rest of end-users nationwide

  • Senior Citizen Discount/Subsidy - P 0.0001/kWh; discount for senior citizen accounts shouldered by rest of end-users of DU

    MERALCO

  • Distribution - P 0.9803/kWh; cost of building, operating and maintaining the distribution system

  • Supply - P 0.4979/kWh + P16.38/cust/mo; cost of billing, collection and customer

    
    
    

    assistance

  • Metering - P 0.3350/kWh + P5.00/cust/mo; cost of meters, reading, operation and maintenance of metering facilities

2026 Q1 OPERATIONAL HIGHLIGHTS

safe man-hours*

Q1 2026

First Aid Cases Recordable Case Loss Time Accident Fatality

*Running total

Cebu Energy Development Corp.

Toledo City, Cebu

Energy delivered is comprised of contracted capacities and participation in the energy and reserve market.

Figures are rounded off

*LNGPH Q1 2025 started January 31, 2025

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

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, improving system reliability and strengthening overall grid resilience.

The first phase with 25 MW (56.44MWh) capacity will be completed this first week of May.

PacificLight Power Pte Ltd Singapore

A

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 its pre-development works.

The First Spark

completed the initial grid

Energized as Generator

synchronization and energization

being delivered to the grid

450 MWh BESS energized

to Meralco

Feb 12, 2026

Mar 14, 2026

Mar 30, 2026

Aug 2026

up to 85 MW of mid-merit power

Increased Generator Capacity

250 MW solar capacity energized

PSA Commitment

600 MW

250 MW

Solar capacity energized

450 MWh

BESS energized

24.8 million

Total Safe Manhours

Figures as of end-March 2026

Photographed: BESS area

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 will conduct a comprehensive

study on the viability for small modular reactor (SMR) deployment in the Philippines.

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 Management), ISO 14001 (Environmental Management), and ISO 45001 (Occupational Health & Safety) - reflecting a fully integrated approach to operational excellence, environmental responsibility, and workforce protection.

This brings to a total of 12 MGEN sites with ISO Certification.

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 conditions.

In response, MGEN is focused on keeping its plants running reliably and efficiently under the updated rules. Our baseload or thermal plants continue to operate at full available capacity.

Last Friday, the ERC has already lifted this suspension. Power generation companies like MGEN are now allowed to make offers at WESM in accordance with existing market conditions.

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 - anchored on firm contracts and supported by flexible supply options.

MGEN is also strengthening its long-term role in the energy landscape through the development of new capacities while continuing to optimize its existing portfolio. Through these initiatives, MGEN remains committed to supporting a more secure, affordable, and sustainable energy future.

2026 Q1 OPERATIONAL HIGHLIGHTS