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Let’s Move Forward
INVESTOR
PRESENTATIONFebruary 2016
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ABOUT MPIC
Metro Pacific Investments Corporation (PSE:MPI) is a Philippine-based, publicly listed investment and management company, focused in infrastructure,
with holdings in Manila Electric Company, Maynilad Water Services, Inc., Metro Pacific Tollways Corporation, Makati Medical Center, Cardinal SantosMedical Center, Asian Hospital, Davao Doctors Hospital, Riverside Medical Center, Lourdes Hospital, De Los Medical Center, MegaClinic and Central
Luzon Doctors Hospital.
HEADQUARTERS INVESTOR RELATIONS TEAM ([email protected])
10/F MGO Building, Legazpi corner Dela Rosa Streets, VP Investor Relations – Albert WL Pulido ([email protected])
Legazpi Village, Makati 0721 Philippines Group Investor Relations Manager – Maricris C. Aldover ([email protected])
Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 IR Specialist – Diane A. Martinez ([email protected])
Email: [email protected]
Official Website: www.mpic.com.ph
DISCLAIMER
This presentation was prepared solely and exclusively for discussion purposes. This
presentation and/or any part thereof may not be reproduced, disclosed or used without the
prior written consent of Metro Pacific Investments Corporation (the “Company”).
This presentation, as well as discussions arising therefrom, may contain statements relating
to future expectations and/or projections of the Company by its management team, withrespect to the Company and its portfolio companies. These statements are generally identified
by forward-looking words such as “believe,” “plan,” “anticipate,” “continue,””estimate,”
“expect,” “may,” “will,” or other similar words. These statements are: (i) presented on the
basis of current assumptions which the company’s management team believes to be
reasonable and presumed correct based on available data at the time these were made, (ii)
based on assumptions regarding the Company’s present and future business strategies, and
the environment in which it will operate in the future, (iii) a reflection of our current views with
respect to future events and not a guarantee of future performance, and (iv) subject to certain
factors which may cause some or all of the assumptions not to occur or cause actual results
to diverge significantly from those projected. Any and all forward looking statements made by
the Company or any persons acting on its behalf are deemed qualified in their entirety by
these cautionary statements.
This presentation is solely for informational purposes and should in no way be construed as a
solicitation or an offer to buy or sell securities or related financial instruments of the Company
and/ or any of its subsidiaries and/or affiliates.
Ticker: PSE:MPI
American Depositary Receipts
ADR Ticker: MPCIY
CUSIP: US59164L2007
Ratio: 1 ADR : 100 Ordinary Shares
Depositary Bank:
Deutsche Bank Trust Company Americas
ADR Broker Helpline:
+1 212 250 9100 (New York)
+44 207 547 6500 (London)
E-mail: [email protected]
ADR Website: www.adr.db.com
Depositary Bank’s Local Custodian:
Deutsche Bank Manila
http://www.mpic.com.ph/mailto:[email protected]://www.adr.db.com/http://www.adr.db.com/mailto:[email protected]://www.mpic.com.ph/
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CONTENTS
METRO PACIFIC INVESTMENTS CORPORATION
THE PORTFOLIO
GROWTH DRIVERS
NET ASSET VALUE ILLUSTRATIONS
TOLLROADS
POWER
WATER
HOSPITALS
RAIL
FUNDING ILLUSTRATION
PPP PROJECTS
PENDING ISSUES AND OPPORTUNITIES
APPENDICES
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METRO PACIFIC INVESTMENTS CORPORATION
Well-positioned for agreed regulatory returns
Service obligations met or exceeded
Track-record of exercising financial discipline
Existing assets purchased at a discount to Net Asset Value Debts refinanced at parent and portfolio level to achieve optimal tenor and interest rates
Bids for new projects were all for reasonable rates of return
Geared for growth
Significant opportunities within current portfolio
Further outlets in PPP and overseas investments
Infrastructure-focused investment and management company – part of First Pacific Company Ltd.
Toll roads Power Water Hospitals Rail
Previously indicated P8.5 billion in Core Income and 25 Dividend Pay-out ratio by 2015 – exceeded Core Incometarget, on track to meet or exceed dividend pay-out target
3.9
5.1
6.6
7.2
8.5
10.0
3.5
5.5
7.5
9.5
2010 2011 2012 2013 2014 2015*
* Estimates -
Include impact
of inflation
adjustment to
aynilad’s tariff
CORE INCOME
In Billions of Pesos
13 12
13
13 20 25
ividend Pay-Out Ratio
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THE PORTFOLIO
75.60
100.00
NLEX & SCTEX
29.45
DON MUANG
TOLLWAY
34.96
Remaining 50% owned by PLDT
52.80
60.00
METRO PACIFIC HOSPITAL
HOLDINGS, INC.
10 hospitals,
1 mall-based clinic20.00 *
AF PAYMENTS,
INC.
55.00
LIGHT RAIL
MANILA
* MVP Group interest in consortium is a total of 50%
50.00
15.00
direct
45.00
CII BRIDGES
& ROADS
100.00
100.00
CALA
EXPRESSWAY
100.00
CEBU CORDOVA
BRIDGE
4 Bulk Water Supply
Projects
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GROWTH DRIVERS – CURRENT PORTFOLIO (GDP +)
POWER WATERROADS HOSPITALS
water distributionconcession
800 thousand
un-served
customers in
Maynilad
New projects
outside the
concession
power distributionfranchise
Power generation
Open access and
retail competition
Philippines–
NLEX,SCTEX and CAVITEX
Regional – Don Muang
Tollways and CII
Bridges & Roads
Expansion of
current concessions
Building of CALA
Expressway / Cebu
Cordova Bridge
Traffic gains from
connection to new
roads
Bidding / auction
for new roads
Tariff progression
10 hospitals, 1 mall-based clinic,
over 2,500 beds
4,000 total bed
target
Synergies
RAIL
automated farecollection system
project
LRT1 South
Extension Project
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NET ASSET VALUE ILLUSTRATIONS
In PHP BillionsYear of
Entry
Net Invested
Capital*
Analysts'
Consensus
Internal
Valuation
Valuation Method
Toll Roads 2008 22.4 58.3 122.6 DCFPower
2009 67.0 93.2 110.3 DCF + Terminal Value
Water
2007 10.8 47.0 54.9 DCF
Hospitals
2007 (0.8) 17.1 31.4 25x EBITDA
Rail 2015 2.3 5.7 5.8 DCF
Total 101.7 221.3 325.0
Net Debt (14.2) **(31.3)
Holding Company Discount (30.4) ***(23.2)
Total Equity Value 176.7 270.5
Per Share
6.39 9.70
GLOBAL ASSUMPTIONS
• WACC at 8.3%*
• Long-term inflation rate of 4.0%
• Outstanding number of shares – 27,867
WACC – 8.3
• 7% pre-tax cost of debt
• 5.7% risk-free rate based on 20 year
Government Bonds
• Target gearing of 50:50
* Net of sale proceeds and accounting treatment adjustments
** Debt will increase to P57.6 billion over the next few years to fund these projects
*** Holding company discount equivalent to recurring expenses
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COMPARISON OF VALUATION CONSIDERATIONS
Analysts' Consensus Internal Valuation
Toll Roads All Analysts
• NLEX
• CAVITEX
Valued by some analysts:
• SCTEX
• Harbour Link
• DMT / CII
• NLEX
• CAVITEX
• SCTEX• Harbour Link
• DMT / CII / CALAEX (valued at initial investment)
• Traffic gains from Connector Road and CALAEX
• No value attached yet to Cebu Cordova Bridge
project
Power All Analysts
• Distribution Utility
Valued by some analysts:
• Power Generation
• Retail Electricity Sales
• Distribution Utility – WACC at 10.8%
• Power Generationo Quezon Power, Subic (300MW) - DCF / 15% ROEo GBP and Pacific Light Power -Valued at cost
• Retail Electricity Sales – 100% roll-out, 50% market
share, 4% maximum margins
Water Maynilad West Zone Concession • Maynilad West Zone Concession – Arbitration WIN
by September 2016
• MWIC investment in Rio Verde (valued at cost)
Hospitals
Various P/E assumptions • 25x 2016 EBITDA less Net Debt
Rail Based on assumed bid case • Updated assumptions – P47.9 project cost
• Starting fare of P11.00/boarding and P1.0/km
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Metro Pacific Tollways Corporation
9
Philippines66%
Thailand20%
Vietnam14%
of Total Toll Road Investment
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TOLL ROADS MAPS - PHILIPPINES
LUZON
CEBU CORDOVA BRIDGE
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TOLL ROADS KEY PRIORITIES - PHILIPPINES
Resolution of Tariff Implementation Delays
Toll road Projects
NLEX Harbour Link
• First phase – 2.4 kms (P1.6B project cost)
o Began operations in March 2015
• Second phase– 8.2 kms (P10.5B project cost)
o Ongoing construction – target completion in 2017
NLEX Citi Link (8.0 kms, P8.2B investment)
•
Final alignment undergoing evaluation• Target completion in 2020
CAVITEX
(13.8 kms - built in two segments running from
Manila to Cavite)
• C5 Link (P10.0B project cost) – target completion in
2020
Connector Road / Metro Expressway Link (8.2 kms,P17.8B project cost – net of common alignment)
• Approved by the National Economic and Development
Authority
• Awaiting Swiss Challenge
CALA Expressway (47kms connecting Sta Rosa City to
Cavite, P23.3B project cost plus P27.B bid premium)
• Concession agreement signed on 10 July 2015
•
Target completion in 2020• Caters for rapidly increasing development and
population to the South of Metro Manila
SCTEX
(93.8 kms)
• Officially turned-over on 27 October 2015
• Concession until 2043
Cebu-Cordova Bridge Project (8.3 kms, P27.9B projectcost)
• Granted Original Proponent Status
• Swiss Challenge conducted in December 2015
• Received Notice of Award on 05 January 2016
Increase proportion of non-toll revenues
•
Upside to valuation – approximately 3% of revenuesas of 2014
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CEBU CORDOVA BRIDGE
Project Specifications Swiss Challenge Case
Start of Operations 2021
Project Cost P27.9B
Toll Rate
P89.00
Toll Rate/Km P10.70
Equity IRR
12.06%
Total Length - 8.25km
Number of Lanes - 2 x 2 or a total of 4 lanes
Height of Bridge - 50 meters
Concession Period - 35 years (inclusive of construction period)
Design Speed - 80 - 90 kph
Alignment
• Connection to Cebu City side via on- and off-ramps along Cebu South Coastal Road and another set along the
Guadalupe River
• Main bridge spanning the navigation path to Shell Island
• Viaduct that brings the bridge to the level of the causeway
• Causeway which leads to Pilipog in Cordova
• At-grade road connecting to the Mactan Circumferential Road
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DON MUANG TOLLWAYS – THAILAND / 29.5 STAKE
STAND-ALONE
FINANCIAL RESULTS
(In Peso Millions)
9M 2015 9M 2014
Revenues 2,543 2,116
EBITDA
2,066 1,684
Core Income
1,204 928
Reported Income 1,204 928
AVERAGE DAILY
TRAFFIC
9M 2015 9M 2014
Original Tollway 83,236 78,668 6%
Northern Extension
49,352 48,591 2%
21.9 km elevated tollroad from Dindaeng in central
Bangkok, and passes through the Don Muang Airport,
to the National Monument north of the capital
27 year concession until 11 September 2034
In THB Original Tollway Northern Extension
Dec 2014 60 25
2015 70 30
2020 80 35
2025 90 40
2030 100 45
TOLL RATE SCHEDULE
Don Muang Tollways contributed P204 million to MPIC’s earnings as of 9M 2015
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CII BRIDGES & ROADS – VIETNAM / 45.0 STAKE
CURRENT
PROJECTS
EXISTING PROJECTS
Average Daily
Vehicles
Y-O-Y Growth
as of 9M 2015
New Rach Chiec Bridge - 736m / 6 lanes
Operation from Jun 2013 to Jun 201823,348 1%
NH1A (Phan Rang - Thap Cham) - 8.4kms / 6
lanes
Operation from May 2013 to Dec 2023
5,926 9%
Rach Mieu Bridge - 8.3kms / 2 lanes
Operation from Feb 2009 to Aug 20238,836 17%
DT741 - 49.7kms / 4 lanes
Operation from Aug 2006 to Mar 20328,469 16%
Sai Gon 2 Bridge – 987m / 5 lanes
Build – Transfer Project – payments to be
received from Jun 2014 to 2018
Received first
payment of
VND197B
N/A
PROJECTS IN THE PIPELINE Project Cost of Completion
Target
Completion
Hanoi Highway Expansion -
15.7kms/ 8 – 10 lanesUS $170M 48% 4Q 2017
NH1A Expansion – 37 kms US $80M 60% 4Q 2017
Bin Trieu 2 Bridge – 2.2kms
/ 4 lanesUS $65M
BOT contract
under
negotiation
2Q 2017
CII Bridges Roads contributed P36 million to MPIC’s earnings as of 9M 2015
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TOLL ROADS REGULATORY FRAMEWORK - PHILIPPINES
Existing Roads PPP / Greenfield Projects
NLEX – concession until 2037
CAVITEX – first section until 2033 / second section until
2046
SCTEX – concession until 2043
• Tariff set and on-going adjustments based on:
– CPI
– Per agreed schedule (CAVITEX)
• Drivers of growth in revenues will be:
– Number of cars on the road
– Number of miles travelled
– Mix of vehicles on the road
•In order to preserve or improve margins:
– Control operating expenses
– Manage maintenance and heavy CAPEX
• Investment in expansions allowed the original return
given the concession
• Winning bids / proposals based on Tariff or Premium
Payment to Government
• In both cases, the proponent submits a Tariff or
Payment sufficient to meet its return requirements
given its traffic expectations
• Note – where a Premium determines the winning bid,
tariff is fixed and the reverse is true if tariff is the
deciding factor
Maximize traffic on existing roads and accurately forecast traffic on greenfield projects
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TOLL ROADS VALUATION SUMMARY
100% 59.9 8.2 36.4 16.1 14.6 8.9 23.8 7.6 15.2 5.5 4.2 3.5 203.9
MPTC 45.3 6.2 27.5 12.2 5.5 6.8 23.8 5.7 7.0 5.5 4.2 3.5 153.2
Net debt (8.5)
Equity value 144.7
MPIC share 144.5
Discount – regulatory friction, project delays etc. (15%) (21.9)
Attributable value 122.6
NLEX
Citi Link
Incremental
traffic fromConnector
Cavitex
SCTEX
TMC
CALAEx
DMT
CII
NLEX
Road
WideningIn PHP Billions
Harbour
Link 1
Harbour
Link 2
TOTAL NLEX at 100 - P144.1B
TOTAL NLEX at MPTC – P103.5B
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TOLL ROADS VALUATION ASSUMPTIONS
Road
CAPEX
(PhP Bn)
Start of
Operations
End of
Concession
Periodic
Adjustment
Basis of Adjustment
NLEX
Phase 1, Seg. 7 and Seg. 8.1 - 2008 2037 Every 2 years CPI / Minimum base escalation of 1.25%Segment 9
2.0 2015 2037 Every 2 years CPI / Minimum base escalation of 1.25%
Segment 10 + R10 Spur 16.2 2017 2037 Every 2 years CPI / Minimum base escalation of 1.25%
NLEX Road widening
5.5 2017 / 2019 2037
Cit i L ink / S egment 8.2
8.2 2020 2037 Every 2 years CPI / Minimum base escalation of 1.25%
Cavitex
R1 Expressway - 2012 2033 Every 3 years CPI and Forex
R1 Extension - 2012 2046 Every 3 years CPI and Forex
C5 Link (Segment 2 3) 9.7 2017 2050 Every 3 years CPI and Forex
C5 Link (Segment 5)
1.0 2020 2050 Every 3 years CPI and Forex
SCTEX 5.0 2016 2043 Every year Minimum base escalation of 6%
TMC (DDM)
- 2008 N/A N/A N/A
CALAEX (at init ial investment)
23.3 2020 2050 Every 2 years CPI
CII (at cost) - Various Various
DMT (at cost) - 2014 2034 Every 5 years THB 10 for Original Tollway / THB5 for
Northern Extension70.9
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TOLL ROADS VALUATION ASSUMPTIONS
T R A F F I C
2 0 1 4 / B a s e
Tra f f i c
F i r s t
y e a r s
Y e a r 6
o n w a r d s
N L E X
O p e n s y st e m 1 2 7 , 8 4 5 2.2% 1.6%
C l o s e d s y s t e m
k m s )
3 , 5 0 5 , 8 3 3 2.2% 1.7%
Se gm e n t 8 .1 1 6 ,3 6 6 1.7% 1.5%
Se gm e n t 9 4 ,9 1 7 2.8% 1.7%
S e g m e n t 1 0 w i t h
R 1 0 s p u r
6 , 4 0 2 4.8% 2.1%
C i t i L i n k / S e g m e n t
8 .2
2 1 , 4 6 3 5.8% 1.7%
C a v i t e x
R 1 E x p r e s s w a y 8 5 , 9 2 0 6.2% 4.8%
R 1 E x te n s io n 1 7 ,2 0 1 10.5% 3.7%
C 5 L i n k
Se gm e n t 2 3 0 ,2 3 1 3.0% 2.9%
Se gm e n t 3 3 9 ,9 1 3 4.1% 4.1%
Se gm e n t 5 1 0 ,6 8 0 8.3% 6.2%
SC TE X 3 5 ,3 5 6 7.3% 3.5%
C A L A E X 6 8 , 8 8 2 6.0% 3.3%
A v e r a g e T r a f f i c
G r o w t h
CLASS 1 TOLL RATES - In PhP
Exclusive of Value-Added Tax)
2015 2016 2017 2018 2019 2020
NLEX
er entry
Open system, beginning tariff 41.00 41.00 41.00 67.00 67.00 75.00
Periodic adjustment - - 13.11 - 8.00 -
Segment 9 - - - - - -
Segment 10 (with R10 spur) - - 12.89 - - -
Citi Link - Segment 8.2 - - - - - 4.00
Open system, ending tarif f 41 .00 41.00 67.00 67.00 75.00 79.00
er kilometer travel led
Closed system, beginning tariff 2.38 2.38 2.38 3.67 3.67 4.60
Periodic adjustment - - 0.93 - 0.45 -
Road widening - - 0.36 - 0.48 -
Closed system, ending tari f f 2.38 2.38 3.67 3.67 4.60 4.60
CAVITEX Per entry)
R1 Expressway, beginning tariff 22.00 22.00 22.00 27.00 28.00 28.00
Periodic adjustment - - 5.00 1.00 - -
R1 Expressway, ending tarif f 22 .00 22.00 27.00 28.00 28.00 28.00
R1 Extension, beginning tariff 57.00 57.00 57.00 68.00 68.00 68.00
Periodic adjustment - - 11.00 - - -
R1 Ext ension, ending t ar if f 57 .00 57.00 68.00 68.00 68.00 68.00
Beginning Tol l Rate
Segment 2 12.50
Segment 3 40.00
Segment 5 5.65
TOLL R TE MULTIPLIER NLEX SC TEX C VITEX
Class 1 1.00 1.00 1.00
Class 2 2.50 2.00 2.00
Class 3 3.00 3.00 3.00
ILLUSTRATIVE TOLL RATE ADJUSTMENTS
Full coverage of area
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Manila Electric Company
19
Full coverage of area
Partial coverage of area
LUZON
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MERALCO – LARGEST DISTRIBUTOR IN THE COUNTRY
4 year Rate Rebasing
Current rebasing – 1 July 2011 to 30 June 2015 (delayed)
Sets returns
•
Allowable Tariff = ((RAB x WACC) + OPEX + Depreciation + Other Taxes,Levies and Duties)/Projected Volume
• WACC –Equity and Debt cost inputs based on survey of utility firms by
regulator – currently 14.97% effective 1 July 2011
• Inflation protection
– Revalues RAB to replacement cost with adjustments for age and
utilization
– Expenses recovered on 1 for 1 basis with adjustment for inflation
• Volume consumption projected over 4 years – Meralco takes volume risk
• CAPEX spend drives RAB on yearly basis
Yearly Review of Maximum Average Price
Adjusted for change in customer mix
Performance metrics rewards or penalties
Extraordinary adjustments
Returns at the Distribution Utility are capped by a regulator determined
return on assets employed to distribute electricity
RAB (P129B)
Assets used to
distribute electricity
x
WACC
Regulator assumes
D:E of 40:60
=
Maximum
Pre-Tax Return
• Franchise until June 2028 to
distribute to 5.6M customers
• Distributes 55 of the total
electricity consumed in the
Philippines – growing at 3 in 2014
to 35,160gWH
•Growing customer base - 4 in
2014, to 5.6 million customers;
Demand mix : Residential (30 ) ,
Commercial (39 ), and Industrial
(31 )
REGULATORY FRAMEWORK
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2015 RATE REBASING - PROCESS DELAYED
INTERIM TARIFF APPLICATION
MERALCO applies for interim tariff while awaiting the rate rebasing
Impact of fully recovering 2nd regulatory period under-recoveries are as follows:
Calculation: P1.58/kWh => Average of the final determination of the
(0.19)/kWh 3rd regulatory period
Calculatio P1.39/kWh
EXPECTED IMPACT ON CURRENT TARIFF
Lower interest rates => WACC from 14.97% to 10.80% - like for like
Volume sold 11% higher than regulatory forecasts
Seeking to recover previously disallowed maintenance and pension costs
Asset revaluation
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Possible SMART Grid upgrades
=================================================
PROFIT AND LOSS IMPLICATIONS
Meralco has fully provided for legacy issues, hence, tariff reduction does not
translate to reduction in profit
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POWER INDUSTRY IN THE PHILIPPINES
GENERATION
RETAIL ELECTRICITY SUPPLIER
DISTRIBUTION CUSTOMERSTRANSMISSION
PRE OPEN ACCESS AND RETAIL COMPETITION
POST OPEN ACCESS AND RETAIL COMPETITION
* Voluntary basis for those consuming 1MW and above
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MERALCO KEY PRIORITIES
DISTRIBUTION UTILITY
• 2015 Rate Rebasing
• Study acquisition of surrounding
distribution concessions
RETAIL COMPETITION AND OPEN ACCESS
• Potential margins (benchmarked) of 7% at
full roll out but keeping only 50% market
shareTODAY
LONG-TERM OUTLOOK
Distribution – 100 Distribution – 49
Open Access – 36
Generation – 16
POWER GENERATION (Model 50/50 MERALCO / Power Gen Partner)
Target Returns:
15% ROE for new power projects
• Baseload
− 460MW San Buenaventura Power Limited (groundbreaking in December 2015; online by 2019)
− 2 x 300MW (phased) Redondo Peninsula Energy Project – environmental case resolved; EPC contract and
financing to be renegotiated (online by 2019)
− Evaluating 2 x 600MW coal plant in Atimonan, Quezon (online by 2020)• Others - 22% stake in Global Business Power (part of GT Cap) – 709MW Gross Capacity with another 150MW
under construction / P7.3B investment
• Overseas Investment – 800MW combined cycle LNG plant in Singapore / P8.8B investment - 28% effective
ownership
Launched in June 2014
CONTRIBUTION TO PROFITABILITY
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POWER VALUATION SUMMARY AND ASSUMPTIONS
MERALCO - 100
NAV
(In Php Bn)
NAV/sh
Distribution 174.4 154.79
Retail electricity sales 124.5 110.43
Generation 52.8 46.88
Net cash 6.4 5.68
358.1 317.78
MPIC SHARE – 32.48
NAV
(In Php Bn)
NAV/sh
Distribution 56.7 2.03
Retail electricity sales 40.4 1.45Generation 17.1 0.62
Net cash (MER) 2.1 0.07
Net debt at Beacon (6.0) (0.22)
110.3 3.95
Rate Rebasing Assumptions
Regulatory annual growth 3.50%Average annual capex PhP11.8bn
Regulatory WACC 10.80%
Regulatory asset base
PhP138.0bn
POWER GENERATION
RETAIL ELECTRICITY SALES
• Gradual roll-out to 100% of contestable market
• MERALCO market share of 50%
• Maximum margins of 4% - based on discounting
margins of 7% benchmarked around the world for
retail electricity sellers
Power Plant Capacity
Cost
(PhP Bn)
Valuation Method
San Buenaventura
(Quezon)
460MW 41.4 DCF based on
15% ROE
RP Energy (Subic) 300MW* 27.0 DCF based on
15% ROE
Global Business
Power
709MW 7.3 Acquisition Cost
Pacific Light 800MW 8.8 Acquisition Cost* Upside of additional 300MW not included
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Maynilad Water Services, Inc.
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GRE TER
M NIL
RE
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9M2015 Comparison Maynilad
Manila
Water
(East Zone)
Billed Volume (In
MLD)1,336 1,281
NRW (period end) 29.4% 11.7%
Revenue
(in PHP millions)14,243 11,246
EBITDA 10,119 7,930
Core Income 7,160 4,063
Population 9.8M 6.8M
Population Served 92% 99%
Average Daily
Consumption –
population served
136 liters 188 liters
Analysts’ Consensus /
Market CapP47.0B P46.6B
MAYNILAD WATER SERVICES
Metro Manila West Zone Concession to 2037
– As of 9M 2015, 9.8M population, 9.0M served
– Long-term regulatory NRW targets:
2017 – 30%
2022 and beyond – 20%
Opportunity for growth at Maynilad
– 800 thousand un-served
WATER CONCESSION AND DISTRIBUTION RIGHTS
OTHER WATER PROJECTS
PHILHYDRO INC. -
100% ownership by Maynilad
• With current bulk water supply and distribution projects inAlbay, Bulacan, Nueva Vizcaya and Nueva Ecija; total
population approx. 610 thousand; target capacity of
135MLD
• 9M 2015 - Revenues of P129 million and Operating Income
of P26 million
SUBIC WATER – 10% ownership by Maynilad
• Population of approx. 230 thousand with 36 thousand
service connections
• 66.5 MLD capacity
• 9M 2015 - Revenues of P464 million and Net Income of
P136 million
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MAYNILAD REGULATORY FRAMEWORK
Tariff set to realize revenues sufficient to get a regulated return on the excess of cash spent over revenues collected
5 Year Rate Rebasing
Tariff = PV of Future Revenues / Projected Billed Volume• Volume of water sold (biggest factor affecting tariff)
• Projected spend
• Rate of return
Real post-tax returns calculated based on cost of debt and
equity for comparable companies – 9.3% (2008-2012) and
7.89% (2013-2017*)
• Based on 50:50 debt to equity split and cost of 10 year
debt
• Adjusted yearly for inflation and quarterly for Forex
• Applied to Excess of cash spent (Operating Expenses,
Taxes, Concession Fees) versus revenues collected
― Opening Cash Position (OCP) = Prior period balances
brought forward by inflation and rate of return for
relevant period
• Independent of volume of water sold
Key Success Factors – meeting regulatory targets, spread of
rate of return to capital costs, amount of cash spent, point of
free cash flow surplus
Opening Cash Position
Approved 2008 – (P33.7B)
2012 – (P66.0B) *may be challenged in 2018 Rate
Rebasing
|NOMINAL
|-------------------------REAL
----------------------------------|
2007 2012 2017 2022 2027 2032
Opening cash position
Cash revenues
Cash expenses
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MAYNILAD ARBITRATION
TARIFF IMPLICATIONS
Base Case
Status Quo)
Favorable
Outcome
2013 Average basic tariff 31.25 31.25
Less: 2013 CPI - (0.97)
31.25 30.28
2013 Tariff adjustment* - 4.06
Proforma 2013 basic tariff 31.25 34.34
2014 CPI (2.5%) - 0.86
2015 CPI (4.9%) - 1.72
2015 Average basic tariff 31.25 36.92
CERA 1.00 -
Environmental charge (20%) 6.45 7.38
VAT (12%) 4.64 5.32
Total 43 .34 49.62
BASIS OF TARIFF INCREASE:
Recovery of corporate income tax is
allowed
May be challenged in 2018 Rate Rebasing:
Appropriate discount rate: 7.89
Opening cash position: P66 billion
Total capital expenditure commitment
(2013 to 2017): P59 billion
Total operating expenses (2013 to 2017):
P31 billion
TIMELINE OF EVENTS
20 February 2015
Maynilad calls on Government’s (Department of Finance) undertaking to
indemnify concessionaire for losses caused by delays in implementation of tariff
09 March 2015
Maynilad sends a follow-up letter to the DOF
27 March 2015 Maynilad serves Notice of Arbitration to the Philippine Republic
14 May 2015 MWSS board approves Maynilad’s request for CPI increase
22 October 2015
Arbitral Tribunal for Arbitration with Philippine Republic is constituted
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WATER VALUATION SUMMARY
WATER
Enterprise value 119.8
Net debt (17.7)Equity value 102.1
MPIC ownership 52.8%
Attributable share - Maynilad 53.9
MWIC (at initial investment cost) 1.0
Total attributable share 54.9
Rate Rebasing Assumptions (Amounts in PhP Billion)
ADR (2018 onwards) 8.3%
2013 Opening cash position P66.0Long-term inflation rate 4.0%
Concession Fees
2013 to 2017 P6.0
2013 to 2037 P21.5
Capital Expenditure Commitment
2013 to 2017 P59.0
2013 to 2037 P239.0
Operating Expenses
2013 to 2017 P31.0
2013 to 2037 P183.0
• Assumes 2016 and 2017 inflation
adjustments are implemented
• Rate rebasing adjustment to be
implemented in 2018 based on
latest benchmarking
METROPAC WATER INVESTMENTS CORPORATION
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CARMEN BULK WATER SUPPLY – 20% effective ownership
• JV with Manila Water for Bulk Water Supply Project for Metro Cebu Water District; in partnership with Provincial
Government of Cebu
• Population of approx. 2.4 million; target capacity of 35 MLD
• 30 year contract; began operations on 5 January 2015
RIO VERDE WATER CONSORTIUM INC. (Cagayan de Oro) – Operations and Maintenance Contract
• 100 MLD bulk water assets and 27 km transmission lines
• Current billed volume of 40MLD; population of approx. 639 thousand
METRO ILOILO BULK WATER
• 30 year, 170 MLD Bulk Water Joint Venture (JV) with Metro Iloilo Water District
• JV to rehabilitate, expand, maintain, and operate 40 MLD of existing production facilities
• Franchise population of approx. 778,000
EQUIPACIFIC HOLDCO INC.
- 30% effective ownership
•25 year Joint Venture for the rehabilitation, expansion, operation and maintenance of the water supply systemof Laguna Water District
• 2015 Billed Volume approximately 20,000 CMD; 30,000 connections; 45% service coverage
• Franchise population of approx. 300,000
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Hospital Group
HOSPITALS
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Hospitals Description Ownership
No. of
Beds
Annualized
Revenues
METRO MANILA
Makati Medical Center
Services the primary central business district in
Metro Manila33.2% 534 P4.9B
Asian Hospital
Premiere medical facility which caters to the
growing communities South of Metro Manila85.6% 305 P2.2B
Our Lady of Lourdes
Mid-market hospital which services communities in
East Manila
100%
(Lease)190 P0.6B
Cardinal Santos
Leading hospital which targets the affluentcommunities in the middle of Metro Manila
100%(Lease)
217 P2.0B
De Los Santos
Mid-market teaching and training hospital in Quezon
City, the largest city in Metro Manila51.0% 135 P0.5B
Mega Clinic
Mall-based diagnostic center 51.0% N/A P0.1B
Manila Doctors Hospital
Tertiary hospital in the City of Manila 20.0% 300 P2.0B
PROVINCES
Riverside Medical
Preeminent hospital in Bacolod 69.9% 266 P1.2B
Davao Doctors
Leading medical institution in Mindanao 34.8% 316 P1.2B
Central Luzon Doctors Hospital
Largest tertiary hospital in Tarlac 51.0% 171 P0.4B
West Metro Medical Center Second largest tertiary hospital in Zamboanga100%
(Lease)122 P0.2B
Operates the largest private hospital network in the Philippines with over 2,500 beds. Present in all the major island
groups, the majority of which target the A & B market
HOSPITALS / HEALTHCARE KEY PRIORITIES
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2016 EBITDA 3.3
Multiple 25.0
Enterprise value 83.0
Add: Net cash 3.1
Equity value 86.04
MPPHHI share 52.4
MPIC ownership 60.0%
31 4
HOSPITALS VA LUATION SUMMARY
In PhP Billi ons)
Invest in more hospitals to expand the chain – Target of 4,000 beds and better coverage
Harvest synergies across the network - group-wide policies and protocols on equipment and other purchases
Improve existing hospitals through investments in new equipment and renovations / expansions
Integrate into one chain and build centers of excellence across the network
Address changes in healthcare delivery
• Nonhospital-based diagnostic centers
• Non-invasive surgery training center
• Specialist cardiology center
25x 2016 EBITDA
(based on indicative IPO guidelines
from investment bankers)
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AFCS / RAIL
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AUTOMATED FARE COLLECTION SYSTEM (AFCS)
Completed roll-out of Beep Cards for LRT1, LRT2 and MRT3
Ownership Structure:
AF Consortium Structure:
Project Cost: P1.72 billion
Project Description:
• Finance, design, construct and install AFCS for LRT1, LRT 2 andMRT3
• Ensure full system integration and full system acceptance allowing inclusion of other transport modes
• Operate and maintain AFCS for a concession period of ten (10) years – full roll out within 18 months from signing of
Concession Agreement
Benefits:
• Existing magnetic ticketing system will be upgraded to a contactless system which will increase passenger throughputfrom 2 passengers/turnstile/minute to 35
• Payment Cards may be loaded anytime and place through mobile network
• Payment Cards may eventually be used in Malls, Toll Roads and other merchants
Ayala Group First Pacific Group
BPI Card – 20% + 1 share Metro Pacific – 20% - 1 share
Globe – 20% SMART – 20%
AC Infrastructure – 10% FinServe – 10%
RAIL : LRT1 SOUTH EXTENSION PROJECT
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Project Cost:
P48 billion (increase mainly due to higher rehabilitation costs and rolling stock capex) – maximum
equity call on MPIC of P14 billion
Extension Construction Start Date:
1 June 2017
Target Completion Date:
31 Mar 2021
Tariff Assumptions:
• Base tariffs of P11 boarding fare + P1/km distance fare
• 10% increase bi-annually beginning August 2016
Base Case Equity IRR:
11.8%
Initial Ridership (2015):
• Daily ridership – approx. 449,000
• Daily passenger kilometers – approx. 3.3 million
Project Description:
The consortium will operate and maintainLRT1 for 32 years. Upon completion of the
extension, the system will stretch 32.4
kilometers (from its current 20.7
kilometers). The extension will serve future
high growth centers in the South like Cavite.
Existing operations were turned-over to Light Rail Manila Corporation on 12 September 2015
KEY CONSIDERATIONS:
• Existing train system is severely deteriorated
• Only 77 of the existing light rail vehicles were
in running condition - new up to 86
• LRMC will begin works starting with
improvements in the facilities on all the
stations for the safety and security of
customers. Nine of the eleven substations are
also in line for rehabilitation to help ensure
more reliable train services
FUNDING ILLUSTRATION – NO ASSET DILUTION
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PROJECTS NOT YET INCLUDED IN
FUNDING MAP
• Connector Road
• Airport Projects – P116B Total Project
Cost for both packages; pending bid
parameters (capital contribution overa number of years)
DEBT COVENANTS
1.Debt-to-equity ratio not to exceed
70:30
2.Debt-service coverage ratio at a
minimum of 1.3x
EXPANSION REQUIRES FURTHER
INTERNAL EQUITY FUNDING –TO BE
SOURCED FROM CRYSTALLIZATION OF
VALUE IN EXISTING ASSETS
1. Higher dividends from MERALCO
2. Possible partner for CALAExpressway
3. Maynilad sell-down; post
arbitration resolution
4. Possible Hospital Group IPO
5. Dilution of Tollroads ownership
ILLUSTRATIV E CASH FLOW 2015 2016 2017 2018
Dividend income(a) 4.4 6.0 7.5 7.6
Net interest, overhead and fees (2.1) (4.3) (4.1) (5.0)
Net cash for dividend / debt / investment 2.3 1.7 3.4 2.6
Allocation for investments (b) (33.1) (12.0) (7.0) (8.5)
New equity infusion / ESOP exercise 8.8 - - 0.6
Net new borrowings 23.3 11.7 6.7 9.4
Dividend commitment (1.9) (2.5) (2.5) (2.5)
Net movement in cash (0.6) (1.1) 0.6 1.6
Beginning cash balance 4.1 3.5 2.4 3.0
End ing cash balance 3.5 2. 4 3. 0 4. 6
MPIC Paren t Level Debt 29.7 41.3 47.9 57.6
DIVIDEND INCOME
a )
2015 2016 2017 2018
Water 1.1 1.1 1.1 1.1
Power 2.0 2.6 4.6 4.7
Tollroads 1.2 2.3 1.7 1.7
Hospitals 0.1 - 0.1 0.1
4. 4 6. 0 7. 5 7. 6
ALLOCATION FOR INVESTMENTS
b )
2015 2016 2017 2018
Power 23.1 4.4 - -
Tollroads 7.9 2.0 3.9 3.4
Rail 1.6 1.2 2.5 4.7
Water 0.2 4.1 0.5 0.4
Others 0.3 0.3 0.1 -
33.1 12.0 7. 0 8. 5
STAND-ALONE LEVERAGE METRICS
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* Additional debt:
a) Beacon (held 50 )
–
P18.4B
b) Don Muang Tollway – P2.5B
100 STAND ALONE - 9M 2015 PA R E NT TOLL R OA DS POWE R WA TE R HOSPITA LS
L E VE R A G E
Cash P3.8B P7.0B P75.6B P8.5B P4.9B
Gross debt P28.2B* P28.1B P29.9B P24.8B P2.0B Equity P97.6B P14.3B P79.0B P32.9B P11.9B
2014 EBITDA N/A P5.8B P33.2B P12.9B P2.9B
CAPEX
Average - operational
N/A P0.5B P11.0B P12.0B P0.7B
OTHER PROJECTS – PPP & UNSOLICITED PROPOSALS
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Project
Estimated
Cost
Description
ppp.gov.ph
Status MPI View
Connector Road P17.8 billionConstruction, operation and maintenance of an 8.2
km road which will connect NLEX to SLEX
Granted original
proponent status
Award date
uncertain pending
timetable for Swiss
Challenge
MRT 3 P13.5 billion Expansion of operations of existing MRT3 lineFor re-submission
of proposal
Iloilo Airport
Bacolod Airport
P30.4 billion
P20.3 billion
30-year operations and maintenance,
implementation of immediate expansion required
to cater to future demand
For bid submission
on 1Q 2016
Pre-qualified to
participate
Davao Airport
Laguindingan Airport
New Bohol Airport
P40.6 billion
P14.6 billionP4.6 billion
30-year operations and maintenance,
implementation of immediate expansion requiredto cater to future demand
For bid submissionon 1Q 2016
Pre-qualified to
participate
Makati-Pasay-Taguig
Mass Transit System
Loop
P378.3
billion
Financing, design, construction, operation and
maintenance of the mass transit system
For NEDA Board
approval
Interested to
participate
North-South Railway
Project
P179.2
billion
Upgrade of existing railway to provide improved
transport and logistics services to currently
underserved areas and encourage more productive
activities
For NEDA Board
approval
Interested to
participate
PENDING ISSUES
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POWER WATER TOLL ROADS
Maynilad calls on the
Government’s
Undertaking to
indemnify
concessionaire forlosses caused by delays
in tariff implementation
Ongoing arbitration -
Arbitral Tribunal was
constituted on October
22
Memo by Department of
Energy on DU
participation in Open
Access
Joint resolution from DOE
and ERC enjoining all DUs
to conduct Competitive
Selection Process in the
procurement of supply for
their captive market
Delayed rate rebasing
Delayed tariff increases
o NLEX – due January
2013 & 2015
o CAVITEX – due January2012 & 2015 for R1 and
January 2014 for R1
extension
o Issued a Demand Letter
to the Philippine Republic
for the delayed toll
increase implementation
on August 26
Connector Road Swiss
Challenge
RAIL
Filed Claim from Grantors
for various LRT1 costs
(shortfall payments,
compliance with
maintenance, availabilityof LRVs, cycle time,
premature system
degradation etc.) on
October 26
Right of Way acquisition –
ongoing preparation work
APPENDICES
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MANAGEMENT TEAM
FINANCIAL & OPERATIONAL HIGHLIGHTS
MPIC MANAGEMENT TEAM
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MPIC
Manuel V. Pangilinan Jose Ma. K. Lim
David J. Nicol
MAYNILADERALCO MPTC HOSPITALS
Chairman
Concurrently Chairman of PLDT,
Philex and Meralco; and Managing
Director of First Pacific
President
Concurrently President of Beacon Electric
Asset Holdings, Director of MERALCO, Former
CEO of CMMTC Skyway and CFO of FBDC,
Chairman of Davao Doctors Hospital, Riverside
Hospital, ; 20 years with Metro Pacific Group
President & CEO
Former Philippine Country Head
for Shell; Chairman Pepsi-Cola
Products Philippines, Inc.
President & CEO
Formerly the head of International
& Carrier Business PLDT/Smart, 18
years experience in materials
management, industrial marketing
and sales
President & CEO
Long experience in financial
structuring and M&A with First
Pacific (over 30 years) and its
portfolio companies
CFO
Former CFO & CEO in packaging, waste
management and social housing
infrastructure; 10 yrs. with PWC, 15 yrs.
with First Pacific, extensive M&A
experience
Oscar S. Reyes
Augusto P.
Palisoc Jr.
Ramoncito S.
Fernandez
Rodrigo E.
Franco
President & CEO
Over 13 years experience in toll
road business; concurrently serves
as CEO of MNTC; 20 years
commercial and investment
banking experience in JPMorgan
and Chase Manhattan Bank
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FINANCIAL AND OPERATIONAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
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29 growth in MPIC Share driven by:
POWER - 5 ↑ in energy sales, increased
shareholding in MERALCO from 27.5% to 32.5%; and
higher Non-electricity Revenues
WATER - 4 ↑ in billed volume of Maynilad; improved
collection performance; and lower personnel cost
TOLLROADS - 9 ↑ in average daily traffic and 12
↑ in average kilometers travelled in NLEX, 10 ↑ in
average daily traffic in CAVITEX; contribution from
Don Muang Tollways and CII; and increased
shareholding in MNTC from 71.0% to 75.6% in July
2014
HOSPITALS
- Increasing number of patients, offset by
lower effective ownership with entry of GIC as an
investor in July 2014
Increase in interest expense due to new debt drawdownin June 2015 and accretion of interest arising from
payable to Beacon for the acquisition of MERALCO
shares
Reported income growth reflects reduced non-core
expenses from various business development costs
In Millions of Pesos 9M 2015 9M 2014 Change
MPIC share
M ay n i lad 3,563
3,177 12%
M E R A L CO / B eacon 3,905
2,478 58%
M P TC / DM T 2,145
1,588 35%
Hosp i tals 319
400 -20%
Rai l (73)
(15) 387%
Sh are of op erati n g in com e 9,859 7,628 29
Head of f ice exp en ses (804) (810) -1%
In terest exp en se (809)
(356) 127%
Core in com e 8,246 6,462 28
N on -core exp en ses (452) (475) -5%
R ep orted in come 7,794 5,987 30
FULL YEAR 2015
CORE INCOME GUIDANCE
P10.0 billion
METRO PACIFIC INVESTMENTS CORPORATION
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CONSOLIDATED
In Peso Millions 2008 2009 2010 2011 2012* 2013 2014
MPIC share
Maynilad 308 1,540 2,394 3,101 3,548 3,789 4,376
MERALCO / Beacon - 212 1,486 1,686 2,213 2,333 3,027
MPTC 166 1,279 1,434 1,455 1,570 1,874 2,239
Hospitals 110 174 172 248 507 581 465
Others - (15) - - - - 28)
Share of operating income 584 3,190 5,486 6,490 7,838 8,577 10,079
Head of fice expenses (156) (291) (498) (973) (903) (917) 1,025)
Interest expense (81) (852) (1,132) (416) (371) (431) 546)
Core income 347 2,047 3,856 5,101 6,564 7,229 8,508
Non-core expenses 179 253 (985) (42) (657) (20) 568)
Reported income 526 2,300 2,871 5,059 5,907 7,209 7,940
Diluted EPS - Core Income 6.57 16.09 19.10 22.26 26.61 27.80 32.63
*Restated
FINANCIAL AND OPERATIONAL HIGHLIGHTS - ANNUAL
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METRO PACIFIC TOLLWAYS CORP.
FINANCIAL HIGHLIGHTS * Restated
(In Peso Millions) 2010 2011* 2012* 2013 2014
Revenues 5,858 6,465 6,784 8,154 8,641
Core EBITDA 3,692 4,144 4,438 5,540 5,788Core Income 1,465 1,480 1,575 1,963 2,154
Reported Income 996 1,258 1,474 2,001 2,062
Assets 19,329 19,484 27,592 38,736 46,289
Total Debt 9,354 9,051 8,906 17,744 26,676
Equity 8,101 8,179 8,440 15,893 13,842
Contribution to MPIC 1,434 1,456 1,570 1,874 2,239
OPERATIONAL HIGHLIGHTS
NORTH LUZON EXPRESS WAY 2010 2011 2012 2013 2014
Open and Closed System (in vehicle entries)
Class 1 121,583 119,890 121,686 129,484 139,560
Class 2 26,055 26,122 27,550 28,773 29,697
Class 3 12,244 12,330 14,126 14,810 16,040
Total 159,882 158,342 163,362 173,067 185,297
Closed System (in vehicle-kilometers travelled) - in thousands
Class 1 2,246 2,160 2,192 2,305 2,509
Class 2 544 549 582 608 618
Class 3 326 305 351 360 379
Total 3,116 3,014 3,125 3,273 3,506
CAVITEX EXPRES SWAY (in vehicle entr ies) 2010 2011 2012 2013 2014
Class 1 80,579 88,774 96,769
Class 2 9,912 9,859 9,655
Class 3 3,209 3,647 3,970
Total 93,700 102,280 110,394
FINANCIAL AND OPERATIONAL HIGHLIGHTS - ANNUAL
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MERALCO
F IN A N C IA L H IG H L IG H T S * Restated
(In Pe so M illio ns ) 2 01 0 2 0 1 1* 20 1 2 * 20 1 3 2 01 4
Revenues 240,933 256,808 285,270 298,636 266,336
C o re E B IT D A 25,089 26,824 26,846 30,845 33,172 C o re In c o me
12,155 14,887 16,265 17,023 18,128
R e p o r t e d In c o me
9,685 13,260 17,117 17,211 18,053
Assets
178,968 211,088 216,891 264,004 269,913
Tota l Debt
21,221 24,443 24,613 33,591 30,042
Equity
63,196 66,869 68,150 75,335 79,474
Contr ibu t ion to MPIC 1,486 1,711 2,213 2,333 3,027
OPERATION AL H IG H LIG H TS 2 01 0 2 0 11 2 0 1 2 20 1 3 2 01 4
Energy sales ( in gWh)
Residential 9,540 9,344 9,779 10,235 10,364
Commercial 11,830 12,027 12,749 13,302 13,814
Industrial 8,734 9,080 10,111 10,417 10,850
Streetlights 143 141 132 130 1 3 2
Total 30,247 30,592 32,771 34,084 35,160
Number o f cus tomers ( in thousands)
Residential 4,412 4,580 4,735 4,9015,097
Commercial 421 433 440 4534 6 4
Industrial 10 10 10 101 0
Streetlights 4 4 4 44
Total 4,847 5,027 5,189 5,368 5,575
System loss per formance 7.94% 7.35% 7.04% 6.92% 6.49
System ave rage in terrupt ion f requency
index(number o f t imes)
6.52 4.8 3.9 3.4 2 .7
Customer average in terrupt ion
f requency index (number o f m inutes )
141.3 116.7 103.3 97.7 94.0
FINANCIAL AND OPERATIONAL HIGHLIGHTS - ANNUAL
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MAYNILAD
FINANCIAL HIGHLIGHTS
* Restated
(In Peso Millions) 2010 2011* 2012* 2013 2014
Revenues 12,050 13,769 15,883 16,895 18,363 Core EBITDA
7,907 9,361 10,456 11,083 12,857
Core Income
4,835 5,974 6,800 7,530 8,777
Reported Income 4,780 5,833 6,380 6,936 8,255
Assets
42,590 55,366 61,467 68,730 72,542
Total Debt
16,091 22,538 21,655 25,342 26,676
Equity
7,944 12,311 16,718 20,693 27,867
Contr ibution to MPIC
2,394 3,082 3,548 3,789 4,376
OPERATIONAL H IG HLIGH TS 2010 2011 2012 2013 2014
Bil led vo lume ( in MCM)
374 405 428 444463
Bil led customers
903,682 1,005,350 1,073,508 1,129,4971,190,062
Non-revenue water
Average
53.40% 47.80% 43.40% 38.70%33.90
Period end
51.00% 42.20% 41.00% 35.40%32.90
Service levels
24-hour coverage
71.00% 84.00% 96.00% 97.80%100.00
Over 7 psi 86.00% 96.00% 99.80% 99.90% 100.00
Pipes laid ( in kms)
During the period
456 375 234 221152
Total network
6,476 6,851 7,085 7,3067,458
FINANCIAL AND OPERATIONAL HIGHLIGHTS - ANNUAL
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HOSPITALS
FINANCIAL HIGHLIGHTS
* Restated
In Peso Millions) 2010 2011* 2012* 2013 2014
Revenues 6,991 8,485 11,329 12,493 14,096 Core EBITDA
1,274 1,626 2,328 2,656 2,946
Core Income
480 559 720 879 1,007
Reported Income 386 674 713 886 1,011
Assets
10,018 15,633 16,464 18,527 19,469
Total Debt 921 2,569 2,209 2,233 2,331
Equity 5,840 9,200 9,740 10,912 11,804
Contribution to MPIC
172 242 507 581 46 5
OPERATIONAL HIGHLIGHTS 2010 2011 2012 2013 2014
Total beds available
1,599 1,812 1,806 2,021 2,134
Number of patients
Out-patient 905,884 1,198,658 1,500,274 1,626,017 1,849,301
In-patient
78,330 95,056 112,060 115,570 124,467
Number of doctors 2,390 4,333 4,546 5,418 5,367
FINANCIAL AND OPERATIONAL HIGHLIGHTS - QUARTERLY
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M PTC 1 Q 2 Q 3 Q
Ne t R e v e n u e s
2,272 2,398 2,301 - 4 . 0
C o r e E B I T D A
1,597 1,618 1,621 0 . 2
C o r e I n c o m e 628 616 728 1 8 . 2
R e p o r t e d I n c o m e
591 593 614 3 . 5
Average Da i l y Vehic le Ent r ies (Open & C losed)
Class 1 148,845 158,155 149,514 - 5 . 5
Class 2 30,195 30,514 29,675 - 2 . 7
Class 3 17,018 16,964 16,710 - 1 . 5
Tota l 196,058 205,633 195,899 - 4 . 7
Average Da i l y K i lometers Trave l led ( In thousands of kms)
Class 1 2,794 3,121 2,616 - 1 6 . 2
Class 2 637 651 613 - 5 . 8
Class 3 397 404 390 - 3 . 5
Tota l 3,828 4,176 3,619 - 1 3 . 3
Average Da i l y
Vehic le Ent r ies
Class 1 104,367 107,933 105,030 - 2 . 7
Class 2 9,747 9,848 9,658 - 1 . 9
Class 3 4,321 4,410 4,236 - 3 . 9
Tota l 118,435 122,191 118,924 - 2 . 7
K E Y M E T R I C S
NLEX
VITEX
F I NA NC I A L H I G H L I G H T S
MERALCO 1Q 2Q 3Q
Total Revenues
62,589 71,419 63,039 -11.7
Core EBITDA
8,227 11,403 7,476 -34.4
Core Income
4,416 7,224 4,155 -42.5
Reported Income
4,421 7,326 4,402 -39.9
System Loss 6.50% 6.60%6.56 -0.6
Number of customers 5.63M 5.68M5.74M 1.1
Energy Sales
Residential 2,262 3,027 2,951 -2.5
Commercial 3,213 3,784 3,852 1.8
Industrial2,584 2,817 2,907 3.2
Streetlights 33 33 33 0.0
Total (in gWh) 8,092 9,661 9,743 0.8
FINANCIAL HIGHLIGHTS
KEY METRICS
FINANCIAL AND OPERATIONAL HIGHLIGHTS - QUARTERLY
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5151
MAYNILAD 1Q 2Q 3Q
Revenues 4,487 4,849 4,907 1.2%
Core EBITDA 3,171 3,546 3,402 -4.1%
Core Income 2,250 2,574 2,336 -9.2%
Reported Income 2,219 2,538 2,314 -8.8%
Billed volume In MCM) 114.7 123.8 122.2 -1.3%
Billed customers 1,211,954 1,229,198 1,247,204 1.5%
Non-revenue water
Average 34.1% 30.5% 30.7 0.6%
Period end 32.7% 30.0% 29.4 -2.0%
Service levels
24-hour coverage 99.7% 97.4% 62.8 -35.5%
Over 7 psi 100% 99% 56.3 -43.4%
FINANCIAL HIGHLIGHTS
KEY METRICS
H OS PITA LS 1 Q 2 Q 3 Q
Re v e n ue s
3,683 3,713 4 , 0 6 5
9.5%
Co r e E BITDA
801 771 9 2 9
20.5%
Co r e In co me 293 272 3 8 1 40.1%
Re po r t e d In co me 292 275 3 8 6 40.4%
To t a l n umbe r o f be ds 2,135 2,127 2 , 2 5 6 6.1%
Numbe r o f accr e d i t e d do ct o r s 5,477 5,437 5 , 8 4 3 7.5%
Numbe r o f e n r o l le e s 4,972 4,045 4 , 6 4 7
14.9%
F I N A N C I A L H I G H L I G H T S
KE Y M E TRICS
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