outlook Net income Shareholders Report FIRST QUARTER 2014 Core Net Income 6,849 EPS = P1.24 4,868 EPS = P0.88 5,529 EPS = P1.00 4,398 EPS = P0.

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1 Shareholders Report FIRST QUARTER 2014 outlook Net income Power Core Net Income Power 6,849 EPS = P ,794 3,530 Banking 5,529 EPS = P ,794 4% 3,483 8,364 Banking Food Food 29% 4,868 EPS = P ,212 Real Estate 4,398 EPS = P ,774 Real Estate Parent & Others Parent & Others AEV s consolidated net income for the first three months of 2014 declined by 29% to P4.9 bn. This was largely attributable to the decrease in UBP s income and the one-time gain registered in the same period last year by AEV due to the sale of CSB to UBP The Power unit accounted for the bulk of earnings at 73.0% of total contributions from AEV s business segments, followed by the Banking, Food and Property units with contributions of 16.6%, 7.7% and 2.8% of total, respectively Non-recurring items are as follows: Non-recurring item (in mn Pesos) AEV Parent net unreal FX gain - (1.1) Net unreal FX gain (loss) (162.3) AEV gain on sale of ABOJEB/CICTI AEV/PFC gain on sale of CSB 1,272 - AP Parent/HSI loan preterm costs (71.2) - 1, one-off gains came from the sale of some assets as part of the Company s business rationalization strategy. On the other hand, the FX loss was due to the revaluation of consolidated dollar-denominated loans and placements. one-off gains came from the sale of CitySavings Banks and FX gains due to the revaluation of consolidated dollar loans and placements. On the other hand, the loan prepayment of the Power Group resulted to a one-time write-off of the unamortized borrowing costs. 1

2 Beneficial EBITDA 8,395 8, % 590 Cash generation remained flat as the 1, weaker performance by the Banking unit 5,866 6,618 Power Banking Food Real Estate Parent & Others was offset by stronger performance by the Power Generation and Food units during the period. Beneficial EBITDA is the summation of the proportionate share of AEV in the EBITDA of its subsidiaries and associate companies Result of Operations Power Group Income Contribution 3,530 3, % 3,212 2, AboitizPower s consolidated net income recorded a 9% decrease for the first three months of The Generation segment s net income contribution dropped by 10% due to the increase in steam cost as a result of the shift to the Geothermal Resource Sales Contract ( GRSC ) and the expiration of the income tax holiday of Pagbilao Plant. Meanwhile, the Distribution segment registered an 18% YoY earnings decline. Distribution Generation Parent & Others 2

Result of Operations Power Generation Group Average Selling Price for Spot Market Transactions P/kWh 3.80 4.40 Average selling price was up 8% YoY, from P4.63/kWh to P5.

3 Result of Operations Power Generation Group Average Selling Price for Spot Market Transactions P/kWh Average selling price was up 8% YoY, from P4.63/kWh to P5.02/kW due to the following: Increase in average selling price for bilateral contracts due to the Company s dollar-linked contracts and the entry of the Company s oil-fired barges in Navotas. Increase in the average selling price for transactions in the Wholesale Electricity Spot Market as a result of the higher demand brought about by the entry of the summer season and the outages of several baseload plants towards the latter part of March. Average Selling Price for Contracted Capacity P/kWh

4 Result of Operations Power Generation Group WESM Prices - Luzon Grid (P/MWh) Monthly Time Weighted Average Prices Source: WESM, SNAP 4

5 Result of Operations Power Generation Group Energy Sales In GWh 502 2,450 2,688 1,948 10% 501 2,165 Energy sales increased mostly due to higher contracted and operating levels of Pagbilao with contestable customers through the Open Access regime. Capacity Sales In MW 1, % +23% 59 1,127 25% 1, ,391 Capacity sales stood 25% higher YoY as a result of increase in ancillary volumes +164% as well as higher contracted levels by the generation group. Contracted Contracts Spot Market Contracted Capacity Spot Market Ancillary Services Ancillary Revenues At 100%, 1,306 Accepted/Billed Capacity At 100%, In GW/h 485 Higher ancillary sales volumes offsets lower rates 1,115 17% % Despite the drop in the average selling price brought about by the new ASPA, revenues soared 17% YoY due to higher sales volumes. 5

Result of Operations Power Generation Group Other Developments Generation Greenfield and Brownfield Developments 300 MW Coal-fired Power Plant in Davao - A project of wholly owned subsidiary, Therma

6 Result of Operations Power Generation Group Other Developments Generation Greenfield and Brownfield Developments 300 MW Coal-fired Power Plant in Davao - A project of wholly owned subsidiary, Therma South, Inc. (TSI), which involves the construction and operation of 2x150MW coal-fired power plant in Davao, the biggest load center in the island of Mindanao. - The project broke ground in Commissioning and testing of the first unit is expected to begin during the fourth quarter of The Facility is expected to become fully operational within the first half of MW(net) Coal-fired Project in Toledo City, Cebu - Therma Visayas, Inc. ( TSI ), a wholly owned subsidiary of AboitizPower, is developing a 2x150 MW (net) coalfired power project in Toledo City. - The project site was acquired in December The Environmental clearance was issued in May MW Coal-fired Power Plant in Pagbilao, Quezon - In September 2011, AboitizPower signed a Memorandum of Understanding with Marubeni Corporation to formalize their intention to jointly develop, construct and operate a coal-fired power plant with a capacity of 400 MW (net). - The unit will be located within the premises of the existing 735 MW (net) Pagbilao coal-fired plant. - Commercial operations of the first generating unit are targeted within the year MW Coal-fired Power Plant in Subic - Project by Redondo Peninsula Energy, Inc. (RP Energy), a JV among Meralco PowerGen Corporation (MPGC), Aboitiz subsidiary Therma Power, Inc. (TPI) and Taiwan Cogeneration International Corporation (TCIC). - Commercial operation is estimated to begin in early AboitizPower, through TPI will have an equity interest of 25% in RP Energy. 14 MW Sabangan Hydro Power Plant Project - A project of Hedcor Sabangan, Inc., this Involves the construction of a run-of-river hydropower plant facility to be located in Mt. Province (Northern Luzon) - The project was granted all the permits and licenses in the first quarter of The construction commenced in May 2013 and will take approximately 24 months to finish. 68 MW Manolo Fortich Hydro Power Plant Project - A project of Hedcor Bukidnon, Inc., this Involves the construction of a run-of-river hydropower plant facility to be located in Mt. Province (Northern Luzon) - Currently completing the permits and licenses until end of May 2014, after which a 24-month construction period will follow. Pagbilao coal-fired Power Plant 6

Other Developments Generation Greenfield and Brownfield Developments 12 MW Hedcor Tamugan Hydro Power Plant Project - In 2010, wholly owned subsidiary Hedcor Tamugan, Inc.

7 Other Developments Generation Greenfield and Brownfield Developments 12 MW Hedcor Tamugan Hydro Power Plant Project - In 2010, wholly owned subsidiary Hedcor Tamugan, Inc., has reached an agreement with the Davao City Water District on the use of the Tamugan river. - Originally planned as a 27.5 MW run-of-river facility, Hedcor Tamugan submitted a new proposal, which involves the construction of an 12 MW hydropower facility. - Currently, Hedcor Tamugan is waiting for the approval from the Davao City council. - Once approval and permits are secured, the two-year construction period will commence. Participation in the Government s Privatization Program for its Power Assets - AboitizPower continues to closely evaluate the investment viability of the remaining power generation assets that PSALM intends to auction off. - AboitizPower is also keen on participating in PSALM s public auction for the Independent Power Producer (IPP) Administrator contracts, which involves the transfer of the management and control of total energy output of power plants under contract with NPC to the IPP administrators. Green/Brownfield Developments Moving Forward Other Hydro Power Plant Developments - 100%-owned subsidiary Hedcor, Inc. (Hedcor) is conducting feasibility studies for potential hydropower projects located in Luzon, visayas and Mindanao. Based on current findings, Hedcor sees the potential of building 20 to 60 MW plants in the identified areas. When the projects pass the evaluation stage and once permits are secured, the two-year construction period for the hydropower plant facilities will commence. - The SN Aboitiz Power Group (SNAP Group) is continuing its focus on growth through Greenfield development with new opportunities being sought and 380 MW of projects undergoing feasibility studies. Further, SNAP secured renewable energy service contracts (RESC) from the DOE for a twin mini-hydro facility project along the Maris Canal, one at the Ramon, Isabela while the other at the Alfonso Lista, Ifugao. 7

Result of Operations Power Distribution Group Attributable Electricity Sales In GWh 5% 3,142 3,322 3,606 3,727 3,934 4,076 956 1,000 2008 2009 2010 2011 2012 2013 Electricity Sales, by customer type

8 Result of Operations Power Distribution Group Attributable Electricity Sales In GWh 5% 3,142 3,322 3,606 3,727 3,934 4, , Electricity Sales, by customer type In GWh 5% 1% Residential 7% ,000 Commercial & Industrial Total Power Sales The growth was mainly driven by the resurgence in industrial consumption particularly in Davao Light s franchise area as its customer hit by the Typhoon Pablo in December 2012 has normalized operations. Further, Holcim was added to Davao Lights customer base. 8

9 Result of Operations Power Distribution Group SYSTEMS LOSS Gov t Cap % 8.0% 7.4% 8.7% 8.0% 8.5% 8.2% GROSS MARGIN P/kWh 1% 5% 4% 1% 1% 2% 1% 2% MEZ BEZ SEZ SFELAPCO Davao Light Visayan Electric Cotabato Light * Year-To-Date All distribution units are within the regulator-imposed cap on system loss levels of 8.5%. Other Developments Cotabato Light A reset process should have been initiated 18 months prior to the start of the 3rd Regulatory Period. However, there has been a delay due to the issuance of an Issues Paper on the implementation of PBR. This paper aims to revisit various matters relating to the reset process. Performance-Based Regulation (PBR) Davao Light and Visayan Electric In March 2013, VECO & DLP filed their rate translation application for the Fourth Regulatory Year from July 1, 2013 to June 30, VECO implemented the new rates in the July 2013 billings while Davao Light implemented their new rates in the August 2013 billings. SFELAPCO and Subic Enerzone Entered their Second Regulatory Year from October 1, 2012 to September 30, 2013, SEZC was able to implement the new rate scheduled starting January 2013 while SFELAPCO implemented its tariffs beginning April Consequently, the under-recoveries resulted from the lag were included in its rate filings in the third regulatory year, which is under ERC s review. The group s year-to-date gross margin on a per kwh basis declined from P1.63 of the first quarter of 2013 to P1.53 for the same period this year. The decrease was due to the higher direct costs registered by the distribution group during the quarter brought about by the lag in the recovery of VECO s cost of purchased power as well as the additional costs incurred by Davao Light and Cotabato Light due to the running of their embedded plants to cover for the energy shortfall in the Mindanao grid during the period. 9

10 Result of Operations - Banking Income Contribution 1,794 Income contribution dropped 59% YoY - The decline was mainly due to the drop in total other income largely in view of exceptionally higher trading gains posted during the same period last year. 59% 731 AEV s Ownership UnionBank As of 44.8% As of 47.4% UnionBank *Including CitySavings Bank Total Net Interest Income 2,050 25% 2,561 Total net interest income grew by 25% YoY - UnionBank s increase in net interest income was anchored on the robust expansion in earning assets coupled with the continuous reduction in average costs of interest-bearing liabilities. UnionBank 10

UnionBank Deposit Base In bn Pesos 213 55% 329 55% YoY expansion in total deposit liabilities Total deposit

11 Result of Operations - Banking Total Loans 142,508 Total loan book rose by 45% YoY 98,134 45% The increase was principally as a result of the inclusion of CitySavings loan book to UnionBank s. UnionBank Deposit Base In bn Pesos % % YoY expansion in total deposit liabilities Total deposit liabilities expanded mainly due to the increase in the outstanding levels of demand and time deposit. UnionBank s focus on low cost funds maintained. UnionBank 11

Result of Operations - Food Income Contribution 325 339 56 115 125 4% 286 144 230 The Flour segment registered an improvement in its income contribution due to improved margins.

12 Result of Operations - Food Income Contribution % The Flour segment registered an improvement in its income contribution due to improved margins. The Farms division, on the other hand, also contributed higher earnings on account of higher volumes sales and average selling price. The Feeds segment ended the quarter with lower contribution as a result lower margins due to higher input costs. Flour Feeds Farm Other Developments Feeds Feedmill Expansion Iligan: June 2014 July 2015 Inter-Island Pier 2: July 2014 July 2015 Farms Completion of Farm Expansion 2: Increase in sow level from 6,500 to 8,360 heads completed by Q Grow-fin farm 1 to 5 expansion: March 2014 October 2014 Grow-fin farm 6: January 2014 June 2014 Grow-fin farm 7: September 2015 February 2016 Completion of Farm Expansion 3: Increase in sow level from 8,360 to 13,640 heads completed by Q Breeder Farm 2: November 2014 July 2016 Offsite Nursery Farm 2: February 2015 August 2016 Grow-fin farm 8-11: January 2016 August 2017 Layer Farm: August 2014 October

Result of Operations - Real Estate 121 181% AboitizLand s Income Contribution rose 181% YoY 43 For the first quarter of 2014, AboitizLand posted a net income contribution of P121 mn from P43 mn of

13 Result of Operations - Real Estate % AboitizLand s Income Contribution rose 181% YoY 43 For the first quarter of 2014, AboitizLand posted a net income contribution of P121 mn from P43 mn of the same period last year. The growth was mainly due to the addition of Lima Land s earnings into the AboitizLands earnings stream and strong performance mainly by the residential segment. AboitizLand Outlook AboitizLand has budgeted P5.4 bn CAPEX to support its growth initiatives. 51% of which will be allocated for land acquisition and 40% for project construction. As of, total CAPEX spent amounted to P1.4 bn. This was used for land acquisition and development of existing projects. Moreover, AboitizLand s JVC with Ayala Land Inc, is now set to proceed with the planning of the 15-hectare mixed use development in Mandaue City, Cebu. AboitizLand, together with Ayala s AC Infrastructure Holdings Corporation plans to bid to the Department of Public Works and Highways for the Cavite Laguna Expressway (CALAX) project. The CALAX is a P35.5 billion public-private partnership project that involves the development a four-lane, 47-kilometer closed-system toll expressway connecting the Cavite Expressway and the Southern Luzon Express way. 13

14 Financial Condition Consolidated Figures Total Assets 247, , End March 2014 Total Liabilities Cash & Cash Equivalents 36,118 39, End March 2014 Total Equity Dividends Internal dividend policy is to payout 1/3 of previous year s net earnings On March 11, 2014, AEV declared a dividend of P1.27 per share to all stockholders of record as of March 25, 2014, payable on April 22, which translated to more than 1/3 of 2012 net earnings On the same day, a special cash dividend of P0.53 per share to all stockholders of record as of March 25, 2014, payable on April 22, Paid out over P9.9 billion in dividends on April 22, 2014 Dividend Declared in Pesos , , , , % 4.2% 3.7% 3.3% 3.4% 2.9% End March End March 2014 Dividend per share Special Cash Dividend Dividend yield Note: Dividend yields are based on closing prices as of date of dividend declaration. *Special cash dividend 14

15 Stock Price Performance YTD June 2014 PSEi Growth +9% AEV Growth +3% 15

Aboitiz Equity Ventures, Inc. Shareholders Report YTD September 2014

Aboitiz Equity Ventures, Inc. Shareholders Report YTD September 2014 net income 16,558 EPS = P3.00 1,178 163 932 3,314 10,971 14% 14,256 EPS = P2.58 315 565 942 2,371 10,062 AEV s consolidated net income