NINE MONTHS 2018 FINANCIAL RESULTS ANALYSTS BRIEFING 07 NOVEMBER 2018

Transcription

1 NINE MONTHS 2018 FINANCIAL RESULTS ANALYSTS BRIEFING 07 NOVEMBER

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 POWER Page 14 MERALCO 9M 2018 Highlights and Key Metrics 15 GBPC 9M 2018 Highlights and Key Metrics 16 TOLLROADS MPTC 9M 2018 Highlights 17 Key Metrics and Priorities 18 WATER Maynilad 9M 2018 Highlights and Key Metrics 19 HOSPITALS RAIL MPHHI 9M 2018 Highlights and Key Metrics 20 LRMC 9M 2018 Highlights and Key Metrics 21 Quarterly Highlights 22 Balance Sheet 25 2

3 9M 2018 CORE INCOME UP 8% TO P12.2B Earnings driven by strong volume growth across the portfolio and increased investment in the power sector CONSOLIDATED FINANCIAL HIGHLIGHTS In Millions of Pesos 9M M 2017 % Change MPIC share Power 8,503 7,573 12% Toll Roads 3,256 2,996 9% Water 3,047 2,801 9% Hospitals % Rail % Others (273) (37) 638% Share of operating income 15,418 14,061 10% Head office expenses (839) (860) -2% Interest expense (2,388) (1,871) 28% Core income 12,191 11,330 8% Non-core income (expense) 297 (202) -247% Reported income 12,488 11,128 12% In Centavos Diluted EPS on core income % EARNINGS CONTRIBUTION MIX 9M M 2017 Hospitals and Others Toll Roads 21% Hospitals and Others 5% 4% Water Water Toll Roads 20% 20% 21% MPIC Group Aggregated Revenues (1) grew by 8% from P280.3 billion to P302.9 billion 8% increase in Core Income was driven by: YTD Power distribution in Luzon 5% 2% Power sold in Visayas 12% 5% Domestic toll road traffic 7% 4% Water sold in West Metro Manila 3% 2% Hospital group census 11% 9% 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 inflation-linked tariff increase in Maynilad Increase in interest expense is due to a) loan drawdowns amounting to P15.4 billion in 9M 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 9M 2018 driven mainly by foreign exchange gains at MERALCO 3Q Power 55% Power 54% 3Q18 vs 3Q17 flat on slower volumes and rising finance cost on new investments (1) Aggregated revenues include revenues of equity-accounted investees 3

4 POWER CONTRIBUTION UP BY 12% TO P8.5B Deepened participation in the Philippine Power sector In Millions of Pesos CONTRIBUTION TO MPIC 9M M 2017 % MERALCO (from 41.2% to 45.5%) 7,586 6,559 16% GBPC (from 47.8% to 62.4%)* 1,184 1,126 5% Beacon**/FV and accounting adj. (267) (112) 138% 8,503 7,573 12% STAND-ALONE PERFORMANCE 9M M 2017 % MERALCO Financial Highlights Revenues 227, ,389 6% Core EBITDA 26,565 26,268 1% Core income 16,686 15,370 9% Reported income 18,212 15,928 14% Capital expenditure 10,111 8,076 25% Key Performance Indicators Energy sales (in GWh) 32,921 31,401 5% GLOBAL BUSINESS POWER CORPORATION (GBPC) Financial Highlights Revenues 20,172 17,227 17% Core EBITDA 6,779 6,979-3% Core income 1,899 2,079-9% Reported income 1,916 2,034-6% Capital expenditure 452 1,141-60% Key Performance Indicators Energy sales (in GWh) 3,656 3,278 12% 12% increase in contribution from the Power business was driven by: MERALCO Increase in effective ownership from 41.2% to 45.5% 5% growth in energy sales GLOBAL BUSINESS POWER CORPORATION Increase in effective ownership from 47.8% to 62.4% 12% growth in energy sales Offset by: o Lower margins o Planned maintenance shutdown of Unit 2 of PEDC and Unit 3 of CEDC o Higher interest and depreciation following full Commercial Acceptance of PEDC3 on 31 May 2018 *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

5 POWER EXPANSION UPDATES MERALCO 1x455MW (net) San Buenaventura Power, Quezon (Target completion in 2019) Ongoing construction proceeding as scheduled 94% EPC overall work progress as of September 2018 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 Committed project with DOE, with Certificate of Energy Project of National Significance 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) Examining feasibility of 600MW on a merchant basis if no PSA GLOBAL BUSINESS POWER CORPORATION Alsons Thermal Energy Corporation 105 MW Expansion Plant, Saranggani on track to commence operations in 2019 METROPAC CLEAN ENERGY Quezon City Waste to Energy Project (P15.3 billion project cost for Phase 1) Aims to convert approximately 2,300 tons of waste to 35 MW of energy Granted original proponent status Ongoing Swiss Challenge; target bid deadline January

6 TOLL ROADS CONTRIBUTION UP BY 9% TO P3.3B Robust traffic growth In Millions of Pesos CONTRIBUTION TO MPIC 9M M 2017 % Metro Pacific Tollways (99.9%) 3,273 3,020 8% Fair value adjustments (17) (24) -29% 3,256 2,996 9% 9% increase in contribution from the Toll Roads business was driven by: Strong traffic growth on all domestic roads STAND-ALONE PERFORMANCE 9M M 2017 % METRO PACIFIC TOLLWAYS CORPORATION Financial Highlights Revenues 11,251 9,605 17% Core EBITDA 7,778 6,259 24% Core income 3,277 3,024 8% Reported income 3,312 4,507-27% Capital expenditure 6,748 3,988 69% Key Performance Indicators Average Daily Vehicle Entries NLEX 250, ,332 8% CAVITEX 143, ,627 5% SCTEX 61,071 53,407 14% DMT / CII / NUS 444, , % o o o Growth in NLEX and SCTEX was a result of the integration of these two roads and the opening of additional lanes in 2017 Increase in CAVITEX traffic driven by growth in residential communities in Cavite and tourism in Batangas 55% increase in system-wide average daily vehicles entries to 916,169 due mainly to the traffic contribution of PT Nusantara 11% increase in NLEX Closed System toll rate per kilometer implemented in November

7 TOLL ROADS EXPANSION UPDATES PROJECTS UNDER CONSTRUCTION / DEVELOPMENT PROJECTS Length Construction Cost Target Right-of-way Status (In Km) (In P Billions) Completion Progress EXPANSIONS TO EXISTING ROADS NLEX Harbour Link (Segment 10) % Ongoing construction NLEX Lane Widening (Phase 2) NLEX Harbour Link (Radial Road 10) N/A N/A Ongoing procurement of contractor % Ongoing construction CAVITEX Segment 4 Extension % Ongoing pre-construction activities CAVITEX - C5 South Link % Seg. 3A Ph.1 - Ongoing construction NEW ROAD PROJECTS AWARDED NLEX-SLEX Connector Road % Ongoing ROW acquisition Cebu Cordova Link Expressway % Ongoing construction Cavite Laguna Expressway PHILIPPINES TOTAL % Laguna segment - Ongoing construction Unsolicited Proposal - Cavite Tagaytay Batangas Expressway (50.4 km, P25.0 billion project cost) o Granted Original Proponent Status by DPWH 7

8 TOLL ROADS EXPANSION UPDATES REGIONAL INVESTMENTS INDONESIA PT NUSANTARA INFRASTRUCTURE Increased stake to 77.94% on a fully-diluted basis as a result of General Offer Pettarani Toll Road Project (4.4 km) o Project Cost: P8.4 Billion o Target completion in 2020 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 Project Cost: P5.4 Billion o Phase 1 began operations in 4Q 2018 o Phase 2 target completion in 2021 Rach Mieu 2 (22.4 km) o Project Cost: P3.7 Billion o Target completion in

9 WATER CONTRIBUTION UP BY 9% TO P3.0B Volume growth and inflationary increase In Millions of Pesos CONTRIBUTION TO MPIC 9M M 2017 % Maynilad (52.8%) 3,237 2,943 10% Fair value adjustments (148) (144) 3% Metropac Water Investments Corp. (42) % 3,047 2,801 9% STAND-ALONE PERFORMANCE 9M M 2017 % MAYNILAD WATER SERVICES INC. Financial Highlights Revenues 16,553 15,578 6% Core EBITDA 11,698 10,764 9% Core income 6,130 5,575 10% Reported income 5,856 5,105 15% Capital expenditure 9,016 7,693 17% Key Performance Indicators Billed volume (In MCM) % *Non-revenue water % - average 30.5% 32.2% -5% *Non-revenue water % - period end 29.1% 32.5% -10% *Measured at the District Metered Area level 9% increase in contribution from the Water business was driven by: MAYNILAD WATER SERVICES, INC. 3% volume growth Inflationary tariff increase of 1.9% in April 2017 and 2.8% in January 2018 METROPAC WATER INVESTMENTS CORP. Lower contracting volume at Ecosystems Higher interest expense from loan drawdown 9

10 WATER OVERVIEW OF EXISTING PORTFOLIO Industrial Municipal Water In Aggregate Water Bulk Distribution Total Max. Potential Volume (mld) ,053 Installed Capacity (mld) Billed Volume (mld)* Regulated Tariff? No No Yes Demand Risk? Yes Mixed No In Aggregate Philippines Vietnam Total Max. Potential Volume (mld) ,053 Installed Capacity (mld) acquisitions include Phu Ninh (45% in May) and Tuan Loc (49% in June). Phu Ninh to supply water starting January 2019 Signing of the Joint Venture Agreement for the Metro Iloilo Distribution project in November 2018 EXPANSION Organic growth potential 264 mld Investment growth potential 539 mld 10

11 HOSPITALS CONTRIBUTION UP BY 13% TO P586M Strong growth and continuing expansion In Millions of Pesos CONTRIBUTION TO MPIC 9M M 2017 % Metro Pacific Hospital Holdings (60.1%) % Hospital admin and fair value adjustments (95) (60) 58% % STAND-ALONE PERFORMANCE 9M M 2017 % HOSPITALS (AGGREGATE) Financial Highlights Revenues 18,932 16,522 15% Core EBITDA 4,148 3,629 14% Core income 1,771 1,510 17% Reported income 1,778 1,518 17% Capital expenditure 2,728 2,478 10% Key Performance Indicators Total beds available 3,187 2,967 7% Average standard occupancy rate 67.4% 66.2% 2% No. of in-patients 143, ,573 15% No. of out-patients 2,534,985 2,293,042 11% 13% increase in contribution from the Hospital business was a function of: 15% growth in revenues Offset by: 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 Higher head office expenses Higher start-up costs for new service centers 11

12 RAIL, LOGISTICS AND OTHERS Expansion and rehabilitation to cater to fast growing demand In Millions of Pesos RAIL CONTRIBUTION TO MPIC 9M M 2017 % Light Rail Manila (55.0%) % Holding company admin % % STAND-ALONE PERFORMANCE 9M M 2017 % LIGHT RAIL MANILA CORPORATION Financial Highlights Farebox revenues 2,440 2,327 5% Core EBITDA % Core income % Reported income % Capital expenditure 5,087 3,666 39% Key Performance Indicators Average daily ridership 452, ,464 5% OTHERS CONTRIBUTION TO MPIC 9M M 2017 % Indra Philippines (25.0%) % AF Payments Inc. (20.0%) - (68) -100% Metropac Movers Inc.* (296) % Others (4) % (273) (37) 638% *Acquired in May 2016; increased effective interest from 76.0% to 100% in 28 February 2018 RAIL 42% growth contribution from the Rail business was a function of: 5% 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 LOGISTICS 19% growth in Revenues due to expanded warehousing and freight forwarding business o Offset by: 7% rise in average warehouse dispatch to over 46.3 million cases Build-up of operating costs and support services to sustain future business wins Losses in the trucking division due to insufficient drivers and low fleet utilization 12

13 REGULATORY MATTERS Resolution of our various regulatory challenges is necessary for us to remain on track with our investment program Accumulated Revenue Losses as of September 30, 2018 at P23.9 billion WATER 16.2% tariff increase awarded following constructive rate rebasing Oct 2018 P P P P0.93 Singapore High Court upholds Arbitral Award in favor of Maynilad; dismisses Philippine Republic s Setting Aside application TOLLROADS Awaiting official notice to publish new toll rates (staggered basis) RAIL LRTA endorsed application for fare increase to DOTR 13

14 STAND-ALONE PORTFOLIO COMPANY RESULTS AND KEY METRICS 14

15 POWER MERALCO 9M 2018 HIGHLIGHTS AND KEY METRICS 6% Increase in Electricity Revenues was a function of: 5% growth in total energy sales from 31,401 GWh to 32,921 GWh (4% commercial, 3% residential, and 7% industrial sector) 3% growth in distribution revenues due to increase in volume sold In Millions of Pesos 9M M 2017 % MERALCO (from 41.2% to 45.5%) 7,586 6,559 16% GBPC (from 47.8% to 62.4%)* 1,184 1,126 5% Beacon**/FV and accounting adj. (267) (112) 138% 8,503 7,573 12% In Millions of Pesos 9M M 2017 % Electricity 221, ,848 6% Non-Electricity 6,145 5,541 11% Total revenues 227, ,389 6% Purchased power (174,461) (162,777) 7% Operating expenses (32,499) (31,031) 5% Other income 885 1,019-13% Provision for income tax (4,597) (6,140) -25% Non-controlling interests (53) (90) -41% Core income 16,686 15,370 9% Non-core income 1, % Reported net income 18,212 15,928 14% Core EBITDA Computation: Core income 16,686 15,370 9% Depreciation and amortization 5,473 5,231 5% Interest income -net (545) (486) 12% Provision for income tax 4,597 6,140-25% Others % Core EBITDA 26,565 26,268 1% 7% increase in pass-through 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 11% increase in non-electricity revenues was due to growth in Radius enterprise sales and increased bills payment in Bayad Center KEY METRICS 9M M 2017 Number of customer 6.54M 6.25M accounts Capital Expenditure 10,111 8,076 Energy Sales Residential 10,111 9,815 Commercial 12,938 12,382 Industrial 9,768 9,102 Streetlights Total (in GWh) 32,921 31,401 *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

16 POWER GBPC 9M 2018 HIGHLIGHTS AND KEY METRICS In Millions of Pesos 9M M 2017 % Power billings 20,066 17,160 17% Coal sales % Total revenues 20,172 17,227 17% Power plant costs (10,892) (7,941) 37% Operating expenses (4,494) (4,148) 8% Interest expense - net (1,602) (1,363) 18% Other income % Share in earnings of associates % Provision for income tax (812) (1,039) -22% Non-controlling interests (797) (768) 4% Core income 1,899 2,079-9% Non-core income (expense) 17 (45) -138% Reported net income 1,916 2,034-6% Core EBITDA Computation: Core income 1,899 2,079-9% Depreciation and amortization 1,873 1,730 8% Interest expense - net 1,602 1,363 18% Provision for income tax 812 1,039-22% Non-controlling interests % Others (204) % Core EBITDA 6,779 6,979-3% Revenue growth was driven by higher coal prices and increased WESM demand Core Income slowed further due to PEDC3 recognition of interest and depreciation starting June 2018 VOLUME SOLD (In GWh) REVENUES (In Millions of Pesos) 9M M M M 2017 CEDC (Cebu) 1,398 1,281 7,306 6,518 TPC (Toledo) ,897 2,584 PEDC (Panay) 1,366 1,292 7,982 6,884 PPC (Panay) GBH (Mindoro) GESC (RES) ,099 1,563 GTERC (TCITRC) Others/Elimination (191) (311) (935) (1,454) TOTAL 3,656 3,278 20,172 17,227 16

17 TOLL ROADS MPTC 9M 2018 HIGHLIGHTS In Millions of Pesos 9M M 2017 % Stand-alone Core Income 3,277 3,024 8% MPTC (99.9%) 3,273 3,020 8% Fair Value Adjustments (17) (24) -29% MPIC Share 3,256 2,996 9% In Millions of Pesos 9M M 2017 % Net toll revenues 11,251 9,605 17% Cost of services (3,858) (3,420) 13% Gross profit 7,393 6,185 20% Operating expenses (1,478) (1,034) 43% Other income and expense - net % Share in earnings of associates % Interest expense - net (1,308) (953) 37% Provision for income tax (1,377) (998) 38% Non-controlling interest (1,153) (869) 33% Core income 3,277 3,024 8% Non-core income 35 1,483-98% Reported net income 3,312 4,507-27% Core EBITDA Computation: Core income 3,277 3,024 8% Depreciation and amortization 1, % Interest expense - net 1, % Provision for income tax 1, % Non-controlling interest 1, % Others (643) (507) 27% Core EBITDA 7,778 6,259 24% PHILIPPINES Net Toll Revenues increased due to: NLEX - Revenues up by 13% from P7,116 million to P8,069 million 8% increase in average daily vehicle entries (open and closed systems) from 233,332 to 250,992 6% increase in average daily kilometers travelled from 4.6 million to 4.9 million 11% increase in closed system toll rate per kilometer implemented in November 2017 CAVITEX - Revenues up by 8% from P1,121 million to P1,209 million 5% increase in average daily vehicle entries from 137,627 to 143,907 SCTEX - Revenues up by 15% from P1,368 million to P1,568 million 14% increase in average daily vehicle entries from 53,407 to 61,071 Faster growth in Core EBITDA due to cost savings from synergies with Tollways Management Corp. Slower growth in Core Income due to reduced contribution from foreign investments (net of financing costs) REGIONAL 9M 2018 CII BR (b) DMT NUS Toll Revenues 665 3,707 1,188 Core Income (15) 1, Traffic (In 000) Length (In km) (a) M 2017 CII BR (b) DMT NUS Toll Revenues 544 3,266 1,117 Core Income 89 1, Traffic (In 000) Length (In km) (a) % Traffic Growth -38% 2% 2% (a) CII BR includes roads under pre- and on-going construction (b) Decrease in traffic with end of concession for the Rach Chiec Bridge; Hanoi Highway expected to start operations in 4Q

18 TOLL ROADS KEY METRICS AND PRIORITIES KEY METRICS 9M M 2017 NLEX Class 1 Tariff: Open system - P40.6/entry / Closed system - P2.6/km Average Daily Vehicle Entries (Open & Closed) Class 1 194, ,209 Class 2 34,700 33,078 Class 3 21,624 20,045 Total 250, ,332 Average Daily Vehicle Entries (Open) Class 1 148, ,958 Class 2 27,980 26,700 Class 3 16,751 15,724 Total 193, ,383 Average Daily Kilometers Travelled (In 000 km) Class 1 3,675 3,431 Class Class Total 4,889 4,598 CAVITEX Class 1 Tariff/entry: R1 - P21.4 / R1 extension - P57.1) Average Daily Vehicle Entries Class 1 128, ,599 Class 2 10,182 9,986 Class 3 5,607 5,042 Total 143, ,627 SCTEX (Class 1 Tariff: P2.7/km) Average Daily Vehicle Entries Class 1 49,537 43,621 Class 2 7,068 6,014 Class 3 4,466 3,772 Total 61,071 53,407 Ongoing Construction STATUS OF NEW ROADS 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 2021 Cavite Laguna Expressway target completion in 2021 including the Cavite segment Cebu-Cordova Link Expressway target completion in

19 WATER MAYNILAD 9M 2018 HIGHLIGHTS AND KEY METRICS MAYNILAD Revenues increased by 6% due to : 3% growth in billed volume from MCM to MCM 4% increase in billed customers from 1,347,747 to 1,395,958 In Millions of Pesos 9M M 2017 % Stand-alone Core Income 6,130 5,575 10% Maynilad (52.8%) 3,237 2,943 10% Fair Value Adjustments (148) (144) 3% Metropac Water Investments (42) % MPIC Share 3,047 2,801 9% In Millions of Pesos 9M M 2017 % Revenues 16,553 15,578 6% Cost of services (4,772) (4,467) 7% Gross profit 11,781 11,111 6% Operating expenses (2,165) (2,017) 7% Other income and expense - net (119) (306) -61% Interest expense - net (1,260) (1,276) -1% Provision for income tax (2,107) (1,937) 9% Core income 6,130 5,575 10% Non-core expenses (274) (470) -42% Reported net income 5,856 5,105 15% Core EBITDA Computation: Core income 6,130 5,575 10% Depreciation and amortization 2,201 1,976 11% Interest expense - net 1,260 1,276-1% Provision for income tax 2,107 1,937 9% Core EBITDA 11,698 10,764 9% 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 Non-Core Expense comprises of refinancing costs lower than last year s one-time separation pay KEY METRICS 9M M 2017 NRW Average 30.5% 32.2% Period end 29.1% 32.5% Coverage Total population 10.16M 10.06M Population coverage 9.52M 9.36M 24hr availability 98% 98% Minimum 16 psi 69% 70% Customer Mix Residential 80.7% 81.0% Commercial 19.3% 19.0% Capital Expenditure 9,016 7,693 19

20 HOSPITALS MPHHI 9M 2018 HIGHLIGHTS AND KEY METRICS In Millions of Pesos 9M M 2017 % Stand-alone Core Income 1,771 1,510 17% Metro Pacific Hospital Holdings (60.1%) % Admin and fair value adjustments (95) (60) 58% MPIC Share % In Millions of Pesos 9M M 2017 % Gross revenues 18,932 16,522 15% Discounts (1,858) (1,536) 21% Net revenues 17,074 14,986 14% Cost of supplies (7,484) (6,348) 18% Gross profit 9,590 8,638 11% Operating expenses (7,287) (6,663) 9% Interest expense (167) (159) 5% Noncontrolling interest (2) (2) 0% Other income % Provision for income tax (768) (649) 18% Core income 1,771 1,510 17% Non-core income % Reported net income 1,778 1,518 17% Core EBITDA Computation: Core income 1,771 1,510 17% Depreciation and amortization 1,442 1,310 10% Interest expense % Provision for income tax % Core EBITDA 4,148 3,629 14% Growth in Gross Revenues was driven by : Increase in patient numbers o Out-patients 11% o In-patients 15% Contribution from St. Elizabeth Hospital Stand-alone Core Income and MPIC share breakdown as follows: In Millions of Pesos Stand-alone Core Income MPIC Share 9M M 2017 % 9M M 2017 Asian Hospital % Cardinal Santos % Riverside % Makati Medical % Davao Doctors % Marikina Valley % Manila Doctors % Others % Total 1,771 1,510 17% Hospital Admin/FV adjustments (95) (60) MPIC Share KEY METRICS 9M M 2017 Total number of beds 3,187 2,967 Number of accredited doctors 8,613 7,781 Number of enrollees 6,738 6,236 Average standard occupancy rate 67.4% 66.2% Number of patients In-patient 143, ,573 Out-patient 2,534,985 2,293,042 20

21 RAIL LRMC 9M 2018 HIGHLIGHTS AND KEY METRICS In Millions of Pesos 9M M 2017 % Stand-alone Core Income % LRMC (55%) % Holding company admin % MPIC Share % In Millions of Pesos 9M M 2017 % Rail revenue 2,440 2,327 5% Cost of services (1,435) (1,378) 4% Gross profit 1, % Operating expenses (490) (464) 6% Other income and expense - net % Interest expense - net (15) (3) 400% Provision for income tax (68) (161) -58% Core income % Non-core income (expenses) 16 (8) -300% Reported net income % Rail Revenues increased due to: 5% growth in average daily ridership from 431,464 to 452,892 7% increase in LRVs from 105 to 112 successfully restored 35 LRVs thereby reducing waiting time for passengers to 3.5 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 Core EBITDA Computation: Core income % Depreciation and amortization % Interest expense - net % Provision for income tax % Core EBITDA % 21

22 QUARTERLY HIGHLIGHTS 22

23 QUARTERLY HIGHLIGHTS MERALCO 1Q Q Q 2018 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Total Revenues 70,807 79,737 76,867 Core EBITDA 8,688 8,897 8,980 Core Income 4,917 5,934 5,835 Reported Income 5,312 6,661 6,239 KEY METRICS Number of customers 6.40M 6.47M 6.54M Energy Sales Residential 2,999 3,716 3,396 Commercial 4,036 4,466 4,436 Industrial 3,076 3,303 3,389 Streetlights Total (in gwh) 10,145 11,520 11,256 METRO PACIFIC TOLLWAYS 1Q Q Q 2018 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Net Revenues 3,587 3,802 3,862 Core EBITDA 2,497 2,684 2,597 Core Income 1,108 1, Reported Income 1,072 1,173 1,067 KEY METRICS NLEX Average Daily Vehicle Entries (Open & Closed) Class 1 195, , ,528 Class 2 34,259 35,358 34,479 Class 3 21,324 22,034 21,511 Total 250, , ,518 Average Daily Kilometers Travelled (In thousands of kms) Class 1 3,730 3,971 3,326 Class Class Total 4,948 5,220 4,501 CAVITEX Average Daily Vehicle Entries Class 1 130, , ,133 Class 2 10,354 10,154 10,042 Class 3 5,667 5,706 5,448 Total 146, , ,623 SCTEX Average Daily Vehicle Entries Class 1 49,195 54,178 45,173 Class 2 6,721 7,497 6,961 Class 3 3,896 4,627 4,909 Total 59,812 66,302 57,043 23

24 QUARTERLY HIGHLIGHTS MAYNILAD 1Q Q Q 2018 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Revenues 5,246 5,715 5,592 Core EBITDA 3,416 4,499 3,783 Core Income 1,628 2,598 1,904 Reported Income 1,350 2,607 1,899 KEY METRICS Billed volume (In MCM) Billed customers 1,373,564 1,386,504 1,395,958 Non-revenue water Average 32.4% 29.7% 29.4% Period end 30.5% 28.9% 29.1% Service levels 24-hour coverage 97.8% 97.6% 97.7% Minimum 16 psi 67.5% 68.1% 68.7% HOSPITALS - AGGREGATE 1Q Q Q 2018 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Revenues 6,143 6,045 6,744 Core EBITDA 1,355 1,206 1,591 Core Income Reported Income KEY METRICS Total number of beds 3,214 3,197 3,187 Number of accredited doctors 8,194 8,243 8,613 Number of enrollees 7,731 5,895 6,738 LIGHT RAIL MANILA 1Q Q Q 2018 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Net Revenues Core EBITDA Core Income Reported Income KEY METRIC Average Daily Ridership 459, , ,892 24

25 BALANCE SHEET (Tentative) 25

26 METRO PACIFIC INVESTMENTS CORPORATION PARENT BALANCE SHEET As of BALANCE SHEET (continued) As of In PhP Millions Sept 2018 Dec 2017 In PhP Millions Sept 2018 Dec 2017 ASSETS LIABILITIES AND EQUITY CURRENT ASSETS CURRENT LIABILITIES Cash and short-term investments 5,687 14,545 Accounts payable and other current liabilities 2,439 1,242 Receivables - net Due to related parties 4,336 4,165 Other current assets Current portion of long-term debt 1, Total Current Assets (1) 6,454 15,025 Total Current Liabilities (1) 8,486 6,378 NONCURRENT ASSETS NONCURRENT LIABILITIES Investments and advances to subs., associates & JVs 190, ,582 Noncurrent portion of long-term debt 59,608 45,850 Other noncurrent assets Due to related parties 7,296 11,767 Total Noncurrent Assets 191, ,297 Other noncurrent liabilities 734 1,192 Total Noncurrent Liabilities 67,638 58,809 TOTAL ASSETS 197, ,322 Total Liabilities 76,124 65,187 EQUITY Capital stock 31,631 31,626 Additional paid-in capital 68,487 68,465 Treasury shares (167) (167) Other reserves Retained earnings 21,543 23,962 Total Equity 121, ,135 TOTAL LIABILITIES AND EQUITY 197, ,322 (1) Current ratio as of September 30, 2018 is less than 1. However, MPIC has committed undrawn lines of Php6.0 billion. 26

27 METRO PACIFIC INVESTMENTS CORPORATION CONSOLIDATED BALANCE SHEET As of BALANCE SHEET (continued) As of In PhP Millions Sept 2018 Dec 2017 In PhP Millions Sept 2018 Dec 2017 ASSETS NONCURRENT LIABILITIES CURRENT ASSETS Noncurrent portion of concession fees payable Cash and short-term investments and short term deposits 45,509 49,317 long-term debt and others 229, ,489 Receivables 13,073 10,899 Due to related parties 7,296 11,767 Other current assets 18,177 14,729 Deferred tax liabilities 8,481 6,836 Total Current Assets 76,759 74,945 Other noncurrent liabilities 9,482 10,103 Total Noncurrent Liabilities 254, ,195 NONCURRENT ASSETS Investments and advances 149, ,971 Total Liabilities 308, ,072 Service concession assets 195, ,783 Property and equipment 72,048 67,606 EQUITY Goodwill 30,160 25,384 Capital stock 31,631 31,626 Other noncurrent assets 20,282 16,062 Additional paid-in capital 68,487 68,465 Total Noncurrent Assets 466, ,806 Treasury shares (167) (167) Other equity adjustments and reserves 7,246 7,426 TOTAL ASSETS 543, ,751 Retained earnings 62,891 53,894 Total equity attributable to owners of Parent 170, ,244 LIABILITIES AND EQUITY Non-controlling interest 65,037 54,435 CURRENT LIABILITIES Total Equity 235, ,679 Accounts payable and other current liabilities 31,765 28,557 Due to related parties 4,412 3,879 TOTAL LIABILITIES AND EQUITY 543, ,751 Current portion of concession fees payable long-term debt and others 17,879 22,441 Total Current Liabilities 54,056 54,877 27

28 TOLL ROADS METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES BALANCE SHEET As of BALANCE SHEET (continued) As of In PhP Millions Sept 2018 Dec 2017 In PhP Millions Sept 2018 Dec 2017 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and short-term investments 9,865 6,069 Accounts payable and accrued liabilities 6,142 4,898 Receivables 1, Current portion of long-term debt 2,478 5,317 Other current assets 2,290 1,498 Other current liabilities 1,780 1,706 Total Current Assets 13,351 8,262 Total Current Liabilities 10,400 11,921 Noncurrent Assets Noncurrent Liabilities Service concession assets 80,219 66,122 Long-term debt - net of current portion 47,257 37,224 Goodwill 12,631 8,597 Service concession obligation 20,490 19,645 Investment in associates 12,865 17,921 Deferred tax liabilities 2,217 1,102 Other noncurrent assets 9,563 3,958 Other noncurrent liabilities 1,379 1,054 Total Noncurrent Assets 115,278 96,598 Total Noncurrent Liabilities 71,343 59,025 TOTAL ASSETS 128, ,860 Total Liabilities 81,743 70,946 Equity Capital stock 13,012 12,786 Additional paid-in capital 23,457 18,945 Deposit for future stock subscription 1,489 - Other equity adjustments and reserves (9,692) (10,186) Retained earnings 11,203 9,685 Total Equity Attributable to Equity Holders 39,469 31,230 of Parent Non-controlling interest 7,417 2,684 Total Equity 46,886 33,914 TOTAL LIABILITIES AND EQUITY 128, ,860 28

29 WATER MAYNILAD WATER SERVICES INC. AND SUBSIDIARIES BALANCE SHEET As of BALANCE SHEET (continued) As of In PhP Millions Sept 2018 Dec 2017 In PhP Millions Sept 2018 Dec 2017 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and short-term investments 9,465 5,019 Accounts payable and other current liabilities 15,584 13,050 Receivables 2,727 2,602 Current portion of interest-bearing loans 176 1,816 Other current assets 2,953 4,075 Current portion of service concession obligation 916 1,217 Total Current Assets (1) 15,145 11,696 Total Current Liabilities (1) 16,676 16,083 Non-current Assets Non-current Liabilities Service concession assets 85,408 78,392 Interest-bearing loans - net of current portion 32,115 25,281 Deferred tax assets Service concession obligation - net of current portion 6,596 6,243 Property and equipment 1,359 1,409 Other noncurrent liabilities 2,253 2,089 Other noncurrent assets 2,276 1,557 Total Noncurrent Liabilities 40,964 33,613 Total Noncurrent Assets 89,165 81,820 Total Liabilities 57,640 49,696 TOTAL ASSETS 104,310 93,516 Equity Capital stock 4,547 4,547 Additional paid-in capital 10,033 10,021 Other equity adjustments and reserves (620) (602) Retained earnings 32,710 29,854 Total Equity 46,670 43,820 TOTAL LIABILITIES AND EQUITY 104,310 93,516 (1) Current ratio as of September 30, 2018 is less than 1. However, Maynilad has committed undrawn lines of Php9.8 billion. 29

30 RAIL LIGHT RAIL MANILA CORPORATION BALANCE SHEET As of BALANCE SHEET (continued) As of In PhP Millions Sept 2018 Dec 2017 In PhP Millions Sept 2018 Dec 2017 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and cash equivalents 1,535 1,174 Accounts payable and other current liabilities Receivables Income tax payable Other current assets Total Current Liabilities Total Current Assets 2,097 1,769 Non-current Liabilities Non-current Assets Service concession obligation 3,344 3,194 Service concession assets 14,389 9,142 Loans payable 6,337 4,566 Property and equipment Other noncurrent liabilities Other noncurrent assets 2,559 2,649 Total Noncurrent Liabilities 9,894 7,948 Total Noncurrent Assets 17,224 12,049 Total Liabilities 10,644 8,691 TOTAL ASSETS 19,321 13,818 Equity Capital stock 4,200 4,050 Additional paid-in capital Deposit for future stock subscription 2,550 - Other equity adjustments and reserves - (20) Retained earnings 1,657 1,097 Total Equity 8,677 5,127 TOTAL LIABILITIES AND EQUITY 19,321 13,818 30

31 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. 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: (New York) (London) adr@db.com ADR Website: Depositary Bank s Local Custodian: Deutsche Bank Manila 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 (investorrelations@mpic.com.ph) 10/F MGO Building, Legazpi corner Dela Rosa Streets, Head, Investor Relations Maricris C. Aldover - Ysmael (mdaldover@mpic.com.ph) Legazpi Village, Makati 0721 Philippines IR Manager Owen Kieffer D. Ocampo (odocampo@mpic.com.ph) Phone: (+632) / Facsimile: (+632) IR Specialist Jana Lyra M. Manlangit (jmmanlangit@mpic.com.ph) Official Website: 31

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