first half 2018 financial results analysts’ briefing
TRANSCRIPT
1
FIRST HALF 2018 FINANCIAL RESULTS ANALYSTS’ BRIEFING
02 AUGUST 2018
2
TABLE OF CONTENTS
Consolidated Financial Highlights Page 3
POWER
Financial Highlights 4
Expansion Updates 5
TOLLROADS
Financial Highlights 6
Expansion Updates 7
WATER
Financial Highlights 9
Metropac Water 10
HOSPITALS
Financial Highlights 11
RAIL, LOGISTICS AND OTHERS
Financial Highlights 12
Regulatory Matters 13
Stand-alone Portfolio Company Results and Key
Metrics
Page 14
POWER
MERALCO 1H 2018 Highlights and Key Metrics 15
GBPC 1H 2018 Highlights and Key Metrics 16
TOLLROADS
MPTC 1H 2018 Highlights 17
Key Metrics and Priorities 18
WATER
Maynilad 1H 2018 Highlights and Key Metrics 19
HOSPITALS
MPHHI 1H 2018 Highlights and Key Metrics 20
RAIL
LRMC 1H 2018 Highlights and Key Metrics 21
Quarterly Highlights 22
Balance Sheet 25
Water19%
Power 55%
Toll Roads21%
Hospitals and Others
5%
3
10% increase in Core Income was driven by:
Expanded Power portfolio through increased investment in
Beacon Electric Asset Holdings Inc. in 2017
Robust traffic growth on all domestic roads
Steady volume growth coupled with inflationary tariff increase
in Maynilad
Decline in head office expense is due to the favorable
impact of the Tax Reform for Acceleration and Inclusion on
long term benefits plan
Increase in interest expense is due to a) loan drawdowns
amounting to P9.0 billion in 1H 2018 (proceeds were used
to fund various investments of the group); and b) interest
accretion on payable to PCEV for the additional stake in
Beacon
Non-core income in 1H 2018 consists mainly of foreign
exchange gains in MERALCO, net of project costs.
CONSOLIDATED FINANCIAL HIGHLIGHTS
MPIC Group Aggregated Revenues(1) grew by 9% from
P183.7 billion to P200.3 billion
EARNINGS CONTRIBUTION MIX
In Millions of Pesos 1H 2018 1H 2017 % Change
MPIC share
Power 5,822 5,291 10%
Toll Roads 2,281 2,038 12%
Water 2,115 1,842 15%
Hospitals 338 308 10%
Rail 205 123 67%
Others (145) (19) 663%
Share of operating income 10,616 9,583 11%
Head office expenses (557) (599) -7%
Interest expense (1,459) (1,184) 23%
Core income 8,600 7,800 10%
Non-core income 341 21 1524%
Reported income 8,941 7,821 14%
In Centavos
Diluted EPS on core income 27.25 24.72 10%
Final dividend per share 3.45 3.45 0%
1H 2018 1H 2017
1H 2018 CORE INCOME UP 10% TO P8.6BEarnings driven by strong volume growth across the portfolio and increased investment in the power sector
• Power distributed in Luzon +7%
• Power sold in Visayas +21%
• Domestic toll road traffic +9%
• Volume of water sold in Metro Manila West +3%
• Hospital group census +12%
Water20%
Power 55%
Toll Roads21%
Hospitals and Others
4%
(1) Aggregated revenues include revenues of equity-accounted investees
POWER
4
CONTRIBUTION UP BY 10% TO P5.8BDeepened participation in the Philippine Power sector
*Effective interest in GBPC as of 27 May 2016 was 48%; stepped-up to 62%
beginning 27 June 2017
**Increased economic interest from 50% to 75% in May 2016, increased further to
100% in June 2017
10% increase in contribution from the Power business was
driven by:
MERALCO
Increase in effective ownership from 41.2% to 45.5%
7% growth in energy sales
GLOBAL BUSINESS POWER CORPORATION
Increase in effective ownership from 47.8% to 62.4%
21% growth in energy sales
In Millions of Pesos
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
MERALCO (from 41.2% to 45.5%) 4,933 4,171 18%
GBPC (from 47.8 to 62.4%)* 785 560 40%
Beacon**/FV and accounting adj. 104 560 -81%
5,822 5,291 10%
STAND-ALONE PERFORMANCE 1H 2018 1H 2017 %
Financial Highlights
Revenues 150,544 141,032 7%
Core EBITDA 17,585 17,215 2%
Core income 10,851 10,118 7%
Reported income 11,973 10,501 14%
Capital expenditure 6,601 5,279 25%
Key Performance Indicators
Energy sales (in GWh) 21,665 20,338 7%
Financial Highlights
Revenues 13,288 10,752 24%
Core EBITDA 4,384 4,245 3%
Core income 1,259 1,172 7%
Reported income 1,276 1,152 11%
Capital expenditure 404 780 -48%
Key Performance Indicators
Energy sales (in GWh) 2,460 2,026 21%
MERALCO
GLOBAL BUSINESS POWER CORPORATION (GBPC)
POWER
5
EXPANSION UPDATES
Alsons Thermal Energy Corporation
● 105 MW Expansion Plant, Saranggani – on
track to commence operations in 2019
1x455MW (net) San Buenaventura Power, Quezon
(Target completion in 2019)
● Ongoing construction proceeding as scheduled
● Commercial operation due in third quarter of 2019
● Capacity is contracted under ERC-approved
power supply agreement with MERALCO
2x600MW (net) Atimonan One Energy, Quezon
● Awaiting approval of power supply agreement –
necessary for the issuance of “Notice to Proceed”
for the engineering, procurement and construction
● Entire capacity is contracted by MERALCO
● Registered as Preferred Pioneer Enterprise by the
Board of Investments (BOI)
MERALCO
GLOBAL BUSINESS POWER CORPORATION
TOLL ROADS
6
12% increase in contribution from the Toll Roads
business was driven by:
Strong traffic growth on all domestic roads
11% increase in NLEX Closed System toll rate per
kilometer implemented in November 2017
CONTRIBUTION UP BY 12% TO
P2.3B Robust traffic growth
In Millions of Pesos
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
Metro Pacific Tollways (99.9%) 2,293 2,056 12%
Fair value adjustments (12) (18) -33%
2,281 2,038 12%
STAND-ALONE PERFORMANCE 1H 2018 1H 2017 %
Financial Highlights
Revenues 7,389 6,460 14%
Core EBITDA 5,181 4,218 23%
Core income 2,296 2,058 12%
Reported income 2,245 3,631 -38%
Capital expenditure 3,048 2,237 36%
Key Performance Indicators
Average Daily Vehicle Entries
NLEX 254,754 233,652 9%
CAVITEX 146,084 137,070 7%
SCTEX 63,075 54,991 15%
DMT / CII / NUS 443,653 149,528 197%
METRO PACIFIC TOLLWAYS CORPORATION
o Growth in NLEX and SCTEX was a result of the
integration of these two roads and the opening of
additional lanes in 2017
o Increase in CAVITEX traffic driven by growth in
residential communities in Cavite and tourism in
Batangas
o 57% increase in system-wide average daily vehicles
entries to 924,364 due mainly to the traffic contribution
of PT Nusantara
TOLL ROADS EXPANSION UPDATES
7
PROJECTS UNDER CONSTRUCTION / DEVELOPMENT
PROJECTS Length Construction Cost Target
Completion
Right-of-way
Progress
Status
(In Km) (In P Billions)
EXPANSIONS TO EXISTING ROADS
NLEX Harbour Link
(Segment 10)
5.8 10.5 2018 93% Ongoing construction
NLEX Lane Widening
(Phase 2)
N/A 2.0 2020 N/A Investment recovery plan approved
by TRB; Construction works for
bidding
NLEX Harbour Link
(Radial Road 10)
2.6 6.7 2019 92% Advance works on-going;
Investment recovery plan approved
by TRB
CAVITEX Segment 4 1.2 1.2 2020 85% Ongoing pre-construction activities
CAVITEX - C5 South Link 7.7 12.7 2021 48% Seg. 3A Ph.1 - Ongoing
construction
NLEX Citi Link 7.5 8.0 2023 0% Ongoing ROW acquisition
NEW ROAD PROJECTS AWARDED
NLEX-SLEX Connector Road 8.0 23.3 2020 0%* Ongoing ROW acquisition
Cebu Cordova Link
Expressway
8.5 26.3 2021 92% Ongoing piling works
Cavite Laguna
Expressway
45.4 16.6 2021 21% Laguna segment - Ongoing
construction
TOTAL 86.7 107.3
*Will immediately increase to 60% upon signing of agreement with Philippine National Railways
Unsolicited Proposal - Cavite Tagaytay Batangas Expressway (50.4 km, P25.0 billion project cost)
o Granted Original Proponent Status by DPWH
o Awaiting Swiss Challenge
PHILIPPINES
TOLL ROADS EXPANSION UPDATES
8
REGIONAL INVESTMENTS
INDONESIA – PT NUSANTARA INFRASTRUCTURE
• Increased stake from 48% to 53% on a fully-diluted basis
• Step-up acquisition triggered need for General Offer for balance of shares
o Tender offer price – IDR 211 per share (23% lower than price of initial
investment)
o Target completion in 3Q 2018
THAILAND – DON MUANG TOLLWAYS
• Seeking new operations and maintenance projects from Thailand Department of
Highways
o Bid submission in 4Q 2018
VIETNAM – CII Bridges & Roads
• Hanoi Highway Expansion (15.7 km)
o Target completion in 4Q 2018
o Will add approximately 23,000 average daily vehicles
WATER
9
In Millions of Pesos
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
Maynilad (52.8%) 2,232 1,941 15%
Fair value adjustments (98) (104) -6%
Metropac Water Investments Corp. (19) 5 -480%
2,115 1,842 15%
STAND-ALONE PERFORMANCE 1H 2018 1H 2017 %
Financial Highlights
Revenues 10,961 10,242 7%
Core EBITDA 7,915 7,138 11%
Core income 4,226 3,676 15%
Reported income 3,957 3,197 24%
Capital expenditure 6,298 4,908 28%
Key Performance Indicators
Billed volume (In MCM) 261 252 3%
*Non-revenue water % - average 31.1% 32.2% -3%
*Non-revenue water % - period end 28.9% 31.2% -7%
MAYNILAD WATER SERVICES INC.
15% increase in contribution from the Water
business was driven by:
3% volume growth
Inflationary tariff increase of 1.9% in April 2017
and 2.8% in January 2018
*Measured at the District Metered Area level
CONTRIBUTION UP BY 15% TO P2.1B Volume growth and inflationary increase
WATER
10
Industrial
Water
Municipal Water
In Aggregate Bulk Distribution Total
Max. Potential Volume (mld) 640 305 88 1,033
Installed Capacity (mld) 335 141 38 514
Billed Volume (mld)* 103 117 26 246
Regulated Tariff? No No Yes
Demand Risk? Yes Mixed No
In Aggregate Philippines Vietnam Total
Max. Potential Volume (mld) 393 640 1,033
Installed Capacity (mld) 179 335 514
OVERVIEW OF EXISTING PORTFOLIO
EXPANSION
▪ Organic growth potential – 268 mld
▪ Investment growth potential – 519 mld
*The 103 MLD pertains to Tuan Loc’s 1H 2018 average billed volume. In June 2018, MPW
acquired 49% interest in Tuan Loc.
HOSPITALS
11
In Millions of Pesos
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
Metro Pacific Hospital Holdings (60.1%) 391 349 12%
Hospital admin and fair value adjustments (53) (41) 29%
338 308 10%
STAND-ALONE PERFORMANCE 1H 2018 1H 2017 %
Financial Highlights
Revenues 12,188 10,611 15%
Core EBITDA 2,561 2,287 12%
Core income 1,045 927 13%
Reported income 1,050 933 13%
Capital expenditure 1,658 1,485 12%
Key Performance Indicators
Total beds available 3,197 2,873 11%
Average standard occupancy rate 65.2% 63.6% 3%
No. of in-patients 91,295 79,484 15%
No. of out-patients 1,640,482 1,470,046 12%
HOSPITALS (AGGREGATE)
CONTRIBUTION UP BY 10% TO
P338M Strong growth and continuing expansion
10% increase in contribution from the Hospital
business was a function of:
15% growth in revenues
● 12% is attributable to organic growth driven by
increased patient census across all hospitals
● 3% is attributable to contribution from new
hospital acquisition - St. Elizabeth Hospital
Offset by:
Higher cost of supplies
Higher start-up costs for new service centers
12
RAIL
67% growth contribution from the Rail business was a
function of:
4% growth in average daily ridership
Higher advertising income and lower repairs and
maintenance expenses
Lower provision for income tax due to effectivity of
Income Tax Holiday beginning 01 January 2018
In Millions of Pesos
RAIL
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
Light Rail Manila (55.0%) 205 122 69%
Holding company admin - 1 -100%
205 123 67%
STAND-ALONE PERFORMANCE 1H 2018 1H 2017 %
Financial Highlights
Farebox revenues 1,594 1,528 4%
Core EBITDA 456 346 32%
Core income 373 221 69%
Reported income 389 221 76%
Capital expenditure 3,279 1,617 103%
Key Performance Indicators
Average daily ridership 447,432 430,180 4%
OTHERS
CONTRIBUTION TO MPIC 1H 2018 1H 2017 %
Indra Philippines (25.0%) 10 15 -33%
AF Payments Inc. (20.0%) - (68) -100%
Metropac Movers Inc.* (148) 34 -535%
Others (7) - -100%
(145) (19) 663%
LIGHT RAIL MANILA CORPORATION
*Acquired in May 2016; increased effective interest from 76.0% to 100% in 28 February
2018
RAIL, LOGISTICS AND OTHERS Expansion and rehabilitation to cater to fast growing demand
LOGISTICS
18% growth in Revenues due to expanded
warehousing and freight forwarding business
o 12% rise in average warehouse dispatch to
over 31.6 million cases
Offset by:
Build-up of fixed cost in head office and support
services
Higher depreciation from increased truck fleet
Higher financing charges
REGULATORY MATTERS
13
PENDING INCREASE
(%)
REVENUE LOSS / CLAIMSTOTAL
2012 2013 2014 2015 2016 2017 1H 2018
WATER (10%)
MPIC Share
-
-
1.9
0.7
2.4
0.9
2.9
1.1
2.4
0.9
2.4
0.9
TBA**
TBA**
12.0
4.4
TOLL ROADS*
NLEX (20%)
CAVITEX (25% - 42%)
SCTEX (48%)
MPIC Share
-
0.1
-
0.1
0.8
0.1
-
0.5
0.8
0.2
-
0.6
1.2
0.3
0.1
0.8
1.3
0.3
0.4
1.1
1.9
0.3
0.5
1.5
1.0
0.3
0.2
0.9
7.0
1.6
1.2
5.5
RAIL (20%)
MPIC Share
-
-
-
-
-
-
0.2
0.1
0.3
0.1
0.4
0.2
0.2
0.0
1.1
0.4
TOTAL
MPIC Share
0.1
0.1
2.8
1.2
3.4
1.5
4.7
1.9
4.7
2.1
5.5
2.6
1.7
0.9
22.9
10.3
*Net of government share
**Calculation of the forgone revenues covering 2018 is dependent on the results of the current rate rebasing exercise
Resolution of our various regulatory challenges is necessary for us to remain on track with our investment program
In Billions of Pesos
14
STAND-ALONE PORTFOLIO COMPANY RESULTS
AND KEY METRICS
POWER
15
MERALCO 1H 2018 HIGHLIGHTS
AND KEY METRICS
7% Increase in Electricity Revenues was a function of:
7% growth in total energy sales from 20,338 GWh to 21,665 GWh
(6% ↑ commercial, 6% ↑ residential, and 8% ↑ industrial sector)
6% growth in distribution revenues due to increase in volume sold
7% increase in in pass-through and other electric revenues driven by
the increase in fuel prices in the world market, weakening of the
peso against the U.S. dollar and higher WESM prices
In Millions of Pesos 1H 2018 1H 2017 %
MERALCO (from 41.2% to 45.5%) 4,933 4,171 18%
GBPC (from 47.8% to 62.4%)* 785 560 40%
Beacon**/FV and accounting adj. 104 560 -81%
5,822 5,291 10%
In Millions of Pesos 1H 2018 1H 2017 %
Electricity 146,903 137,409 7%
Non-Electricity 3,641 3,623 0%
Total revenues 150,544 141,032 7%
Purchased power (116,330) (107,683) 8%
Operating expenses (20,531) (19,860) 3%
Other income 383 658 -42%
Provision for income tax (3,191) (3,962) -19%
Non-controlling interests (24) (67) -64%
Core income 10,851 10,118 7%
Non-core income 1,122 383 193%
Reported net income 11,973 10,501 14%
Core EBITDA Computation:
Core income 10,851 10,118 7%
Depreciation and amortization 3,615 3,462 4%
Interest income -net (176) (325) -46%
Provision for income tax 3,191 3,962 -19%
Others 104 (2) -5300%
Core EBITDA 17,585 17,215 2%
KEY METRICS 1H 2018 1H 2017
Number of customer
accounts
6.47M 6.17M
Capital Expenditure 6,601 5,279
Energy Sales
Residential 6,715 6,333
Commercial 8,502 8,045
Industrial 6,379 5,892
Streetlights 69 68
Total (in GWh) 21,665 20,338
*Effective interest of GBPC as of 27 May 2016 was 48%; stepped-up to 62%
beginning 27 June 2017
**Increased economic interest from 50% to 75% in May 2016, increased
further to 100% in June 2017
POWER
16
GBPC 1H 2018 HIGHLIGHTS
AND KEY METRICS
Revenue growth was driven by increased WESM demand and
higher revenue from contestable customers
Slower Core Income growth due to higher operating and interest
expense
In Millions of Pesos 1H 2018 1H 2017 %
Power billings 13,182 10,694 23%
Coal sales 106 58 83%
Total revenues 13,288 10,752 24%
Power plant costs (7,247) (4,907) 48%
Operating expenses (2,875) (2,792) 3%
Interest expense - net (978) (939) 4%
Other income 37 38 -3%
Share in earnings of associates 121 - 100%
Provision for income tax (535) (507) 6%
Non-controlling interests (552) (473) 17%
Core income 1,259 1,172 7%
Non-core income (expense) 17 (20) -185%
Reported net income 1,276 1,152 11%
Core EBITDA Computation:
Core income 1,259 1,172 7%
Depreciation and amortization 1,181 1,154 2%
Interest expense - net 978 939 4%
Provision for income tax 535 507 6%
Non-controlling interests 552 473 17%
Others (121) - 100%
Core EBITDA 4,384 4,245 3%
VOLUME SOLD
(In GWh)
REVENUES
(In Millions of Pesos)
1H 2018 1H 2017 1H 2018 1H 2017
CEDC (Cebu) 930 814 4,816 4,148
TPC (Toledo) 442 348 1,880 1,470
PEDC (Panay) 926 812 5,219 4,315
PPC (Panay) 31 47 318 558
GBH (Mindoro) 13 21 109 138
GESC (RES) 238 158 1,362 865
GTERC (TCITRC) - - 166 85
Others/Elimination (120) (174) (582) (827)
TOTAL 2,460 2,026 13,288 10,752
TOLL ROADS
17
MPTC 1H 2018 HIGHLIGHTS
PHILIPPINES
Net Toll Revenues increased due to:
NLEX - Revenues up by 15% from P4,785 million to P5,499 million
• 9% increase in average daily vehicle entries (open and closed
systems) from 233,652 to 254,754
• 8% increase in average daily kilometers travelled from 4.7 million to
5.1 million
• 11% increase in closed system toll rate per kilometer implemented in
November 2017
CAVITEX - Revenues up by 10% from P738 million to P810 million
• 7% increase in average daily vehicle entries from 137,070 to 146,084
SCTEX - Revenues up by 15% from P937 million to P1,080 million
• 15% increase in average daily vehicle entries from 54,991 to 63,075
Faster growth in Core EBITDA due to cost savings from synergies with
Tollways Management Corp.
Slower growth in Core Income due to consolidation of former associates
(TMC and Easytrip)
REGIONAL
In Millions of Pesos 1H 2018 1H 2017 %
Stand-alone Core Income 2,296 2,058 12%
MPTC (99.9%) 2,293 2,056 12%
Fair Value Adjustments (12) (18) -33%
MPIC Share 2,281 2,038 12%
In Millions of Pesos 1H 2018 1H 2017 %
Net toll revenues 7,389 6,460 14%
Cost of services (2,423) (2,332) 4%
Gross profit 4,966 4,128 20%
Operating expenses (896) (652) 37%
Other income and expense - net 368 154 139%
Share in earnings of associates 347 353 -2%
Interest expense - net (825) (609) 35%
Provision for income tax (946) (720) 31%
Non-controlling interest (718) (596) 20%
Core income 2,296 2,058 12%
Non-core income (expenses) (51) 1,573 -103%
Reported net income 2,245 3,631 -38%
Core EBITDA Computation:
Core income 2,296 2,058 12%
Depreciation and amortization 743 588 26%
Interest expense - net 825 609 35%
Provision for income tax 946 720 31%
Non-controlling interest 718 596 20%
Others (347) (353) -2%
Core EBITDA 5,181 4,218 23%
1H 2018 CII BR DMT NUS
Toll Revenues(a) 447 2,460 783
Core Income 11 1,161 197
Traffic (In ‘000) 33 100 311
Length (In km)(b) 144 21.9 34.47
1H 2017 CII BR (c) DMT NUS
Toll Revenues(a) 337 2,110 728
Core Income 76 974 272
Traffic (In ‘000) 52 97 299
Length (In km)(b) 144.8 21.9 34.47
% Traffic Growth -37% 3% 4%(a) Note that MPTC acquired 48% of PT Nusantara Infrastructure only in November 2017(b) CII BR includes roads under pre- and on-going construction(c) Decrease in traffic with end of concession for the Rach Chiec Bridge
TOLL ROADS KEY METRICS AND
PRIORITIES
18
KEY METRICS 1H 2018 1H 2017
NLEXClass 1 Tariff: Open system - P40.6/entry
/ Closed system - P2.6/km
Average Daily Vehicle Entries (Open & Closed)
Class 1 198,261 180,722
Class 2 34,811 32,970
Class 3 21,682 19,960
Total 254,754 233,652
Average Daily Vehicle Entries (Open)
Class 1 152,196 138,606
Class 2 28,070 26,666
Class 3 16,739 15,694
Total 197,005 180,966
Average Daily Kilometers Travelled (In 000 km)
Class 1 3,851 3,537
Class 2 743 707
Class 3 491 467
Total 5,085 4,711
CAVITEX
Class 1 Tariff/entry: R1 - P21.4 / R1 extension - P57.1)
Average Daily Vehicle Entries
Class 1 130,143 122,083
Class 2 10,253 9,999
Class 3 5,688 4,988
Total 146,084 137,070
SCTEX (Class 1 Tariff: P2.7/km)
Average Daily Vehicle Entries
Class 1 51,700 45,097
Class 2 7,111 6,032
Class 3 4,264 3,862
Total 63,075 54,991
STATUS OF NEW ROADS
Ongoing Construction
● Harbour Link Segment 10 – expected to be completed within 2018
● CAVITEX C5 South Link – target completion in 2021
● Cavite Laguna Expressway (Laguna segment)
o Laguna Boulevard to Mamplasan target completion in 2019
o Silang to Laguna Blvd target completion in 2020
o Kawit to Silang target completion in 2021
Ongoing Right-of-Way Acquisition
● NLEX Harbour Link Radial Road 10 – target completion in 2019
● NLEX-SLEX Connector Road – target completion in 2020
● Cavite Laguna Expressway – target completion in 2021 including the Cavite
segment
● Cebu-Cordova Link Expressway – target completion in 2021
WATER
19
MAYNILAD 1H 2018 HIGHLIGHTS
AND KEY METRICS
MAYNILAD
Revenues increased by 7% due to :
3% growth in billed volume from 252.5 MCM to 261.0 MCM
▪ 4% increase in billed customers from 1,336,566 to
1,386,504
Inflationary increase in tariff (1.9% in April 2017 and 2.8% in
January 2018)
Faster growth in Core Income due to lower interest expense
In Millions of Pesos 1H 2018 1H 2017 %
Stand-alone Core Income 4,226 3,676 15%
Maynilad (52.8%) 2,232 1,941 15%
Fair Value Adjustments (98) (104) -6%
Metropac Water Investments (19) 5 -480%
MPIC Share 2,115 1,842 15%
In Millions of Pesos 1H 2018 1H 2017 %
Revenues 10,961 10,242 7%
Cost of services (3,115) (2,909) 7%
Gross profit 7,846 7,333 7%
Operating expenses (1,412) (1,309) 8%
Other income and expense - net 32 (189) -117%
Interest expense - net (832) (851) -2%
Provision for income tax (1,408) (1,308) 8%
Core income 4,226 3,676 15%
Non-core expenses (269) (479) -44%
Reported net income 3,957 3,197 24%
Core EBITDA Computation:
Core income 4,226 3,676 15%
Depreciation and amortization 1,449 1,303 11%
Interest expense - net 832 851 -2%
Provision for income tax 1,408 1,308 8%
Core EBITDA 7,915 7,138 11%
KEY METRICS 1H 2018 1H 2017
NRW
Average 31.1% 32.2%
Period end 28.9% 31.2%
Coverage
Total population 10.16M 10.06M
Population coverage 9.50M 9.34M
24hr availability 98% 98%
Minimum 16 psi 68% 71%
Customer Mix
Residential 80.8% 81.0%
Commercial 19.2% 19.0%
Capital Expenditure 6,298 4,908
HOSPITALS
20
MPHHI 1H 2018 HIGHLIGHTS
AND KEY METRICS
In Millions of PesosStand-alone Core Income MPIC Share
1H 2018 1H 2017 % 1H 2018 1H 2017
Asian Hospital 223 204 9% 115 105
Cardinal Santos 120 110 9% 72 66
Riverside 86 94 -9% 40 44
Makati Medical 225 180 25% 44 36
Davao Doctors 114 101 13% 24 21
Marikina Valley 60 48 25% 34 27
Manila Doctors 117 90 30% 14 11
Others 100 100 0% 48 39
Total 1,045 927 13% 391 349
Hospital Admin/FV adjustments (53) (41)
MPIC Share 338 308
Growth in Gross Revenues was driven by :
Increase in patient numbers
o Out-patients – 12%
o In-patients – 15%
Contribution from St. Elizabeth Hospital
Stand-alone Core Income and MPIC share breakdown as follows:
In Millions of Pesos 1H 2018 1H 2017 %
Stand-alone Core Income 1,045 927 13%
Metro Pacific Hospital Holdings (60.1%) 391 349 12%
Admin and fair value adjustments (53) (41) 29%
MPIC Share 338 308 10%
In Millions of Pesos 1H 2018 1H 2017 %
Gross revenues 12,188 10,611 15%
Discounts (1,201) (992) 21%
Net revenues 10,987 9,619 14%
Cost of supplies (4,838) (4,063) 19%
Gross profit 6,149 5,556 11%
Operating expenses (4,799) (4,363) 10%
Interest expense (109) (108) 1%
Noncontrolling interest (1) - N/A
Other income 264 239 10%
Provision for income tax (459) (398) 15%
Core income 1,045 927 13%
Non-core income 5 6 -15%
Reported net income 1,050 933 13%
Core EBITDA Computation:
Core income 1,045 927 13%
Depreciation and amortization 948 854 11%
Interest expense 109 108 1%
Provision for income tax 459 398 15%
Core EBITDA 2,561 2,287 12%
KEY METRICS 1H 2018 1H 2017
Total number of beds 3,197 2,873
Number of accredited doctors 8,243 7,710
Number of enrollees 5,416 5,390
Average standard occupancy rate 65.2% 63.6%
Number of patients
In-patient 91,295 79,484
Out-patient 1,640,482 1,470,046
RAIL
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LRMC 1H 2018 HIGHLIGHTS
AND KEY METRICS
Rail Revenues increased due to:
4% growth in average daily ridership from 430,180 to
447,432
8% increase in LRVs from 104 to 112 – successfully
restored 35 LRVs thereby reducing waiting time for
passengers to 3.4 minutes from more than five minutes
when LRMC took over in 2015
Faster growth in Core Income due to lower provision for income
tax due to effectivity of Income Tax Holiday beginning 01
January 2018
In Millions of Pesos 1H2018 1H2017 %
Stand-alone Core Income 373 221 69%
LRMC (55%) 205 122 69%
Holding company admin - 1 -100%
MPIC Share 205 123 67%
In Millions of Pesos 1H2018 1H2017 %
Rail revenue 1,594 1,528 4%
Cost of services (955) (930) 3%
Gross profit 639 598 7%
Operating expenses (312) (313) 0%
Other income and expense - net 84 32 163%
Interest expense - net - (2) -100%
Provision for income tax (38) (94) -60%
Core income 373 221 69%
Non-core income 16 - 100%
Reported net income 389 221 76%
Core EBITDA Computation:
Core income 373 221 69%
Depreciation and amortization 45 29 55%
Interest expense - net - 2 -100%
Provision for income tax 38 94 -60%
Core EBITDA 456 346 32%
22
QUARTERLY HIGHLIGHTS
QUARTERLY HIGHLIGHTS
23
METRO PACIFIC TOLLWAYS 1Q 2018 2Q 2018
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Net Revenues 3,587 3,802
Core EBITDA 2,497 2,684
Core Income 1,108 1,188
Reported Income 1,072 1,173
KEY METRICS
NLEX
Average Daily Vehicle Entries (Open & Closed)
Class 1 195,406 201,085
Class 2 34,259 35,358
Class 3 21,324 22,034
Total 250,989 258,477
Average Daily Kilometers Travelled (In thousands of kms)
Class 1 3,730 3,971
Class 2 733 752
Class 3 485 497
Total 4,948 5,220
CAVITEX
Average Daily Vehicle Entries
Class 1 130,138 130,149
Class 2 10,354 10,154
Class 3 5,667 5,706
Total 146,159 146,009
SCTEX
Average Daily Vehicle Entries
Class 1 49,195 54,178
Class 2 6,721 7,497
Class 3 3,896 4,627
Total 59,812 66,302
MERALCO 1Q 2018 2Q 2018
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Total Revenues 70,807 79,737
Core EBITDA 8,688 8,897
Core Income 4,917 5,934
Reported Income 5,312 6,661
KEY METRICS
Number of customers 6.40M 6.47M
Energy Sales
Residential 2,999 3,716
Commercial 4,036 4,466
Industrial 3,076 3,303
Streetlights 34 35
Total (in gWh) 10,145 11,520
24
MAYNILAD 1Q 2018 2Q 2018
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Revenues 5,246 5,715
Core EBITDA 3,416 4,499
Core Income 1,628 2,598
Reported Income 1,350 2,607
KEY METRICS
Billed volume (In MCM) 126.5 134.5
Billed customers 1,373,564 1,386,504
Non-revenue water
Average 32.4% 29.7%
Period end 30.5% 28.9%
Service levels
24-hour coverage 97.8% 97.6%
Minimum 16 psi 67.5% 68.1%
HOSPITALS - AGGREGATE 1Q 2018 2Q 2018
Revenues 6,143 6,045
Core EBITDA 1,355 1,206
Core Income 583 462
Reported Income 585 465
Total number of beds 3,214 3,197
Number of accredited doctors 8,194 8,243
Number of enrollees 7,731 5,895
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
KEY METRICS
LIGHT RAIL MANILA 1Q 2018 2Q 2018
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Net Revenues 803 791
Core EBITDA 233 223
Core Income 164 209
Reported Income 166 223
KEY METRIC
Average Daily Ridership 459,417 447,432
QUARTERLY HIGHLIGHTS
25
BALANCE SHEET(Tentative)
26
METRO PACIFIC INVESTMENTS
CORPORATION – PARENT
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions June 2018 Dec 2017 In PhP Millions June 2018 Dec 2017
ASSETS LIABILITIES AND EQUITY
CURRENT ASSETS CURRENT LIABILITIES
Cash and short-term investments 3,697 14,545 Accounts payable and other current liabilities 1,903 1,242
Receivables - net 95 102 Due to related parties 3,889 4,165
Other current assets 1,040 378 Current portion of long-term debt 1,507 971
Total Current Assets (1) 4,832 15,025 Total Current Liabilities (1) 7,299 6,378
NONCURRENT ASSETS NONCURRENT LIABILITIES
Investments and advances to subs., associates & JVs 187,050 173,582 Noncurrent portion of long-term debt 54,006 45,850
Other noncurrent assets 513 715 Due to related parties 7,599 11,767
Total Noncurrent Assets 187,563 174,297 Other noncurrent liabilities 734 1,192
Total Noncurrent Liabilities 62,339 58,809
TOTAL ASSETS 192,395 189,322
Total Liabilities 69,638 65,187
EQUITY
Capital stock 31,628 31,626
Additional paid-in capital 68,473 68,465
Treasury shares (167) (167)
Other reserves 259 249
Retained earnings 22,564 23,962
Total Equity 122,757 124,135
TOTAL LIABILITIES AND EQUITY 192,395 189,322
As of As of
(1) Current ratio as of June 30, 2018 is less than 1. However,
MPIC has committed undrawn lines of P12.4 billion.
27
METRO PACIFIC INVESTMENTS
CORPORATION – CONSOLIDATED
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions June 2018 Dec 2017 In PhP Millions June 2018 Dec 2017
ASSETS NONCURRENT LIABILITIES
CURRENT ASSETS Noncurrent portion of concession fees payable
Cash and short-term investments and short term
deposits 39,350 49,317 long-term debt and others 212,455 204,489
Receivables 12,311 10,899 Due to related parties 7,599 11,767
Other current assets 16,135 14,729 Deferred tax liabilities 7,058 6,836
Total Current Assets 67,796 74,945 Other noncurrent liabilities 9,024 10,103
Total Noncurrent Liabilities 236,136 233,195
NONCURRENT ASSETS
Investments and advances 155,151 150,971 Total Liabilities 287,808 288,072
Service concession assets 179,911 168,783
Property and equipment 67,384 67,606 EQUITY
Goodwill 25,361 25,384 Capital stock 31,628 31,626
Other noncurrent assets 18,086 16,062 Additional paid-in capital 68,473 68,465
Total Noncurrent Assets 445,893 428,806 Treasury shares (167) (167)
Other equity adjustments and reserves 7,456 7,426
TOTAL ASSETS 513,689 503,751 Retained earnings 60,435 53,894
Total equity attributable to owners of Parent 167,825 161,244
LIABILITIES AND EQUITY Non-controlling interest 58,056 54,435
CURRENT LIABILITIES Total Equity 225,881 215,679
Accounts payable and other current liabilities 29,490 28,557
Due to related parties 3,965 3,879 TOTAL LIABILITIES AND EQUITY 513,689 503,751
Current portion of concession fees payable
long-term debt and others 18,217 22,441
Total Current Liabilities 51,672 54,877
As of As of
TOLL ROADS
28
METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions June 2018 Dec 2017 In PhP Millions June 2018 Dec 2017
ASSETS LIABILITIES AND EQUITY
Current Assets Current Liabilities
Cash and short-term investments 6,291 6,069 Accounts payable and accrued liabilities 5,184 4,898
Receivables 861 695 Current portion of long-term debt 4,135 5,317
Other current assets 1,688 1,498 Other current liabilities 906 1,706
Total Current Assets (1) 8,840 8,262 Total Current Liabilities (1) 10,225 11,921
Noncurrent Assets Noncurrent Liabilities
Service concession assets 68,914 66,122 Long-term debt - net of current portion 38,555 37,224
Goodwill 8,606 8,597 Service concession obligation 20,198 19,645
Investment in associates 18,128 17,921 Deferred tax liabilities 1,156 1,102
Other noncurrent assets 5,976 3,958 Other noncurrent liabilities 1,266 1,054
Total Noncurrent Assets 101,624 96,598 Total Noncurrent Liabilities 61,175 59,025
TOTAL ASSETS 110,464 104,860 Total Liabilities 71,400 70,946
Equity
Capital stock 12,903 12,786
Additional paid-in capital 21,277 18,945
Other equity adjustments and reserves (9,457) (10,186)
Retained earnings 11,034 9,685
Total Equity Attributable to Equity Holders
of Parent 35,757 31,230
Non-controlling interest 3,307 2,684
Total Equity 39,064 33,914
TOTAL LIABILITIES AND EQUITY 110,464 104,860
As of As of
(1) Current ratio as of June 30, 2018 is less than 1. However,
MPTC has committed undrawn lines of Php11.4 million.
WATER
29
MAYNILAD WATER SERVICES INC. AND SUBSIDIARIES
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions June 2018 Dec 2017 In PhP Millions June 2018 Dec 2017
ASSETS LIABILITIES AND EQUITY
Current Assets Current Liabilities
Cash and short-term investments 5,993 5,019 Accounts payable and other current liabilities 15,075 13,050
Receivables 2,723 2,602 Current portion of interest-bearing loans 100 1,816
Other current assets 3,044 4,075 Current portion of service concession obligation 1,058 1,217
Total Current Assets (1) 11,760 11,696 Total Current Liabilities (1) 16,233 16,083
Non-current Assets Non-current Liabilities
Service concession assets 83,333 78,392 Interest-bearing loans - net of current portion 29,164 25,281
Deferred tax assets 208 462 Service concession obligation - net of current portion 6,459 6,243
Property and equipment 1,370 1,409 Other noncurrent liabilities 2,184 2,089
Other noncurrent assets 2,143 1,557 Total Noncurrent Liabilities 37,807 33,613
Total Noncurrent Assets 87,054 81,820
Total Liabilities 54,040 49,696
TOTAL ASSETS 98,814 93,516
Equity
Capital stock 4,547 4,547
Additional paid-in capital 10,033 10,021
Other equity adjustments and reserves (617) (602)
Retained earnings 30,811 29,854
Total Equity 44,774 43,820
TOTAL LIABILITIES AND EQUITY 98,814 93,516
As of As of
(1) Current ratio as of June 30, 2018 is less than 1. However,
Maynilad has committed undrawn lines of Php12.9 billion.
RAIL
30
LIGHT RAIL MANILA CORPORATION
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions June 2018 Dec 2017 In PhP Millions June 2018 Dec 2017
ASSETS LIABILITIES AND EQUITY
Current Assets Current Liabilities
Cash and cash equivalents 2,959 1,174 Accounts payable and other current liabilities 635 649
Receivables 116 104 Income tax payable 27 94
Other current assets 496 491 Total Current Liabilities 662 743
Total Current Assets 3,571 1,769
Non-current Liabilities
Non-current Assets Service concession obligation 3,294 3,194
Service concession assets 12,401 9,142 Loans payable 6,180 4,566
Property and equipment 277 258 Other noncurrent liabilities 201 188
Other noncurrent assets 2,594 2,649 Total Noncurrent Liabilities 9,675 7,948
Total Noncurrent Assets 15,272 12,049
Total Liabilities 10,337 8,691
TOTAL ASSETS 18,843 13,818
Equity
Capital stock 7,020 4,050
Other equity adjustments and reserves - (20)
Retained earnings 1,486 1,097
Total Equity 8,506 5,127
TOTAL LIABILITIES AND EQUITY 18,843 13,818
As of As of
CAUTIONARY STATEMENTS
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, with respect 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.
ABOUT MPIC
Metro Pacific Investments Corporation (PSE:MPI) is a Philippine-based, publicly listed investment and management company, focused on
infrastructure, with holdings in Manila Electric Company, Maynilad Water Services, Inc., MetroPac Water Investments Corporation, Metro Pacific
Tollways Corporation, Metro Pacific Hospital Holdings Inc., Light Rail Manila Corporation and MetroPac Movers Inc..
HEADQUARTERS INVESTOR RELATIONS ([email protected])
10/F MGO Building, Legazpi corner Dela Rosa Streets, Head, Investor Relations – Maricris C. Aldover - Ysmael ([email protected])
Legazpi Village, Makati 0721 Philippines IR Manager – Owen Kieffer D. Ocampo ([email protected])
Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 IR Specialist – Jana Lyra M. Manlangit ([email protected])
Official Website: www.mpic.com.ph
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
31