More with Less. First Gen Corpora.on Annual Stockholders Mee.ng. 12 May 2010

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1 More with Less First Gen Corpora.on Annual Stockholders Mee.ng 12 May

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3 WE ARE AT THE FOREFRONT OF DEVELOPING MORE INDIGENOUS ENERGY GEOTHERMAL HYDRO WIND Our business model will not only be benign but protec5ve of the environment. 3

4 NOT JUST A BLIND FRENZY OF SIMPLY ADDING MORE MEGAWATTS 4

THE EPIRA CAPS OUR DOMESTIC GROWTH AT 25 PERCENT OF THE NATIONAL INSTALLED CAPACITY 14,713

Installed GeneraLng Capacity 515 356 543 2 NATIONAL LUZON VISAYAS MINDANAO 0 Installed Genera.

5 THE EPIRA CAPS OUR DOMESTIC GROWTH AT 25 PERCENT OF THE NATIONAL INSTALLED CAPACITY 14, % NaLonal Grid Cap 3,678 2,068 11,189 3,357 1,711 1,715 1, Installed GeneraLng Capacity NATIONAL LUZON VISAYAS MINDANAO 0 Installed Genera.ng Capacity Prescribed Cap First Gen Source: ERC Resolu5on No. 4 series of 2010 dated March 11,

6 COMPARISON OF LARGE GLOBAL POWER COMPANIES IPP Coal Diesel Gas Geothermal Hydro Others TOTAL AES 13, ,652 6,041 4,497 37,200 IP 9,863 30,605 2,174 2,769 45,411 Suez 4,478 16, ,463 1,194 29,851 J. Power 15,724 3, , ,451 Marubeni 26, , ,625 3,481 72,589 TEPCO 1,600 25,701 8,993 25,538 61,835 KEPCO 15,765 6,135 5,328 27,228 FIRST GEN 235 1,500 1, ,058 IF FIRST GEN WANTS TO GET INTO THE GLOBAL ARENA, HOW DOES IT COMPETE AGAINST BIG PLAYERS WITH DEEP RESOURCES AND CAPABILITIES? 6

7 PRIVATIZATION OF MANY OF THE GOVERNMENT S ENERGY ASSETS 2004 TALOMO HYDRO 1.8 MW AGUSAN HYDRO 1.6 MW BARIT HYDRO 3.5 MW CAWAYAN HYDRO 0.4 MW LOBOC HYDRO 1.2 MW 2006 PANTABANGAN MASIWAY HYDRO 112 MW MAGAT HYDRO 360 MW 2008 TIWI MAKBAN GEOTHERMAL MW PANAY BOHOL DIESEL MW 2007 MASINLOC COAL 600 MW AMBUKLAO BINGA HYDRO 175 MW PNOC EDC STEAM FIELD 1,199 MW 2010 BACMAN GEOTHERMAL 150 MW ANGAT HYDRO 218 MW 2009 PALINPINON TONGONAN GEO 305 MW CALACA COAL 600 MW AMLAN HYDRO 0.8 MW POWER BARGE 117/118 HYDRO 200 MW LIMAY DIESEL 620 MW NAGA LAND BASED GT COAL 55 MW 7

TODAY, WE HAVE BUILT A UNIQUE PORTFOLIO OF POWER AND ENERGY ASSETS THAT POSITIONS FIRST GEN FOR EVENTUAL GLOBAL EXPANSION BAUANG DIESEL 225 MW PANTABANGAN MASIWAY HYDRO AGUSAN HYDRO 1.

8 TODAY, WE HAVE BUILT A UNIQUE PORTFOLIO OF POWER AND ENERGY ASSETS THAT POSITIONS FIRST GEN FOR EVENTUAL GLOBAL EXPANSION BAUANG DIESEL 225 MW PANTABANGAN MASIWAY HYDRO AGUSAN HYDRO 1.6 MW 112 MW SANTA RITA SAN LORENZO 1,500 MW BACMAN GEOTHERMAL 150 MW PNOC EDC STEAM FIELD 1,199 MW UNIFIED LEYTE GEOTHERMAL 600 MW NORTHERN NEGROS GEO 49 MW PALINPINON TONGONAN GEO 305 MW MINDANAO 1&2 GEO 104 MW 8

9 SINCE THE ACQUISITION OF EDC IN NOV. 2007, WE WERE INTENTLY FOCUSED ON NORMALIZING OUR FINANCES EDC Acquisi.on Debt REFINANCING INITIATIVES (US$ MM) Approximately US$1.1 B 53 PhP 2.5 B from various investors Red Vulcan Loan PhP 29.2 B (approx. US$ 679 MM) Issued March 2009 Three year note facility at 9.4% May 2009 Loan maturity extended to 2014 Peso Bridge PhP B (approx. US$ 40 MM) Completed in November 2008 Net Proceeds of US$ 205 MM Completed in November 2008 Net Proceeds of US$ 215 MM First Gas Power may borrow add l. US$ 80 MM US Dollar Bridge US$ MM % Conver.ble Bond due 2013 Issued February 2008 US$260 MM Conver.ble Bond US$ 540 MM Santa Rita Refinancing Sale of 60% stake in FG Hydro PhP 5.4 B Unified Corporate Notes Term out of PhP 13.9 B of RV debt facili.es Note: (1)! The balance of the purchase price for the 40% economic interest in EDC was funded by the Company s internally generated funds and proceeds from its IPO in 2006 (2)! Exchange rate of Php43.00=US$1.00 used to approximate the exchange rate at the time of acquisition (3)! US dollar equivalents of amounts in Philippine pesos are approximations Prime Terracota loans 9

6 B facility Termed out the PhP 14 B loan at Red Vulcan to 5 years Issued PhP

10 WE CONTINUED WITH THESE SUCCESSFUL FINANCING INITIATIVES IN 2009/2010 MARCH 2009 MAY 2009 JANUARY 2010 Issued 3 year PhP 5.6 B facility Termed out the PhP 14 B loan at Red Vulcan to 5 years Issued PhP 15 B Rights Offering WITH OUR FINANCES NORMALIZED, OUR FOCUS NOW IS ON REVVING UP AND OPTIMIZING OUR ASSETS 10

11 EDC IS SETTING NEW INTERNAL RECORDS FOR DRILLING PERFORMANCE, RAISING STEAM USE AND EXTRACTION EFFICIENCY AND PROTECTING THE GEOTHERMAL RESERVOIRS 11

12 EDC HAS ASSUMED OWNERSHIP OF ALL THE POWER PLANTS WITHIN ITS GEOTHERMAL PRODUCTION FIELDS FULL INTEGRATION OF ALL OF EDC S STEAM FIELDS AND THE POWER PLANTS THEY SERVE 12

PANTABANGAN MASIWAY REMAINED RELIABLE; REHABILITATION OF UNIT 1 ALSO COMPLETED RELIABILITY 100% 97% 93% 99 99.

13 PANTABANGAN MASIWAY REMAINED RELIABLE; REHABILITATION OF UNIT 1 ALSO COMPLETED RELIABILITY 100% 97% 93% % CAPACITY FACTOR AVAILABILITY 40% 85% 37% 82% % 30% % 75%

SANTA RITA PERFORMED ABOVE CONTRACTUAL REQUIREMENTS... 100% RELIABILITY 97% 97.

14 SANTA RITA PERFORMED ABOVE CONTRACTUAL REQUIREMENTS % RELIABILITY 97% % 94 90% CAPACITY FACTOR AVAILABILITY 85% 100% 83% 82% 80% % 90% 85%

15 ...AS DID OUR SAN LORENZO PLANT RELIABILITY 100% 97% % 94 90% CAPACITY FACTOR AVAILABILITY 85% 100% 82% 78% 75% % 90% 85%

FG Bukidnon 0% EACH OF THE FIRST GEN ASSETS CONTRIBUTED POSITIVELY TO NET INCOME EDC 30% FG Hydro 1% BPPC 5% FGP 31% FGPC 33% FGPC FGP EDC BPPC FG Hydro FG Bukidnon

674.1 334.9 437.0 26.1 0.8 20.4 3.8 0.0 0.0 0.0 EBITDA 167.4 94.6 190.1 19.9 0.4 11.0 (1.9) (0.5) (0.1) (1.5) Net Income 71.2 52.3 76.0 2.4 0.3 12.6 (47.2) (23.5) (13.

16 FG Bukidnon 0% EACH OF THE FIRST GEN ASSETS CONTRIBUTED POSITIVELY TO NET INCOME EDC 30% FG Hydro 1% BPPC 5% FGP 31% FGPC 33% FGPC FGP EDC BPPC FG Hydro FG Bukidnon 2009 FINANCIAL HIGHLIGHTS (in US$ Millions) OPERATING COMPANIES HOLDING COMPANIES FGPC FGP EDC FG Hydro FG Bukidnon Bauang Parent Red Vulcan Unified FGHC Gross Revenue EBITDA (1.9) (0.5) (0.1) (1.5) Net Income (47.2) (23.5) (13.6) (1.5) % Ownership of First Gen Net Income Akributable to First Gen 60% 60% 40% 64% 100% 37% 100% 100% 100% 100% (47.2) (23.5) (13.6) (1.5) 16

to: 1,220 1,080 940 1217 1015 Lower fuel charges resul.

17 REVENUES DECREASED TO US$1.0 BILLION DUE TO LOWER FUEL CHARGES AND THE DE CONSOLIDATION OF PRIME TERRACOTA REVENUES Decrease is mainly due to: 1,220 1, Lower fuel charges resul.ng from lower average gas prices and lower dispatch Net loss from Prime Terracota group from May to December 2009 recognized as equity in net earnings ader the de consolida.on (199) (4) Higher earnings from Bauang In US$ millions TOTAL (202) 17

NET INCOME WAS UP 21% RESULTING FROM HIGHER INCOME FROM EDC AND LOWER INTEREST EXPENSE AT THE PARENT 18 15 13 10 NET INCOME ATTRIBUTABLE TO PARENT 17 14

on from Prime Terracota group due to lower interest expense and higher income tax Lower provision for income taxes due to benefit from deferred income

18 NET INCOME WAS UP 21% RESULTING FROM HIGHER INCOME FROM EDC AND LOWER INTEREST EXPENSE AT THE PARENT NET INCOME ATTRIBUTABLE TO PARENT in US$ millions Increase is mainly due to: Higher contribu.on from Prime Terracota group due to lower interest expense and higher income tax Lower provision for income taxes due to benefit from deferred income tax Lower interest expense at the Parent Foreign exchange loss at Unified and Parent company on its Pesodenominated loans MTM loss on deriva.ves from change in the fair value of Conver.ible Bonds (33) (13) Others (5) TOTAL 3 18

19 CONSOLIDATED REVENUES FOR THE FIRST QUARTER OF 2010 IS UP BY 22% AT US$ 351 MILLION WHILE NET INCOME INCREASED BY 166% TO US$ 36 MILLION CONSOLIDATED REVENUES NET INCOME ATTRIBUTABLE TO PARENT +$64 MM (+22%) $22 MM (+166%) 90 0 Q Q Q Q In US$ millions In US$ millions Higher revenues due to higher fuel charges resullng from the use of liquid fuel during the Malapaya outage and higher equity in net earnings from EDC and FG Hydro Higher net income due to increase in the net income of EDC, beker WESM prices for FG Hydro, and lower interest expenses at Red Vulcan and Parent 19

20 DESPITE ADDING MORE MEGAWATTS, WE HAVE LOWERED OUR CARBON INTENSITY CO₂ tons/ MWh 0.25 CO₂ tons/ MWh 1,725 MW 2,583 MW 20

21 OUR CARBON INTENSITY IS NOTABLY LOWER THAN THAT OF THE PHILIPPINE GRID FIRST GEN CARBON INTENSITY LUZON 0.35 CO₂ tons/ MWh VISAYAS 0.03 CO₂ tons/ MWh MINDANAO 0.02 CO₂ tons/ MWh PHILIPPINE CARBON INTENSITY LUZON 0.47 CO₂ tons/ MWh VISAYAS 0.27 CO₂ tons/ MWh MINDANAO 0.28 CO₂ tons/ MWh 21

22 OUR ASSETS EXISTS SIDE BY SIDE WITH A THRIVING AND FLOURISHING NATURAL ENVIRONMENT 22

5 MILLION TREES!"#$%&'()*+%',-'.&%%/'0*)1.

'+/*+012(3+ 4('"11/'"+56%&"%3+/*+7'8+09$+

23 EDC NOT ONLY PROTECTS ITS CONCESSION AREAS BUT HAS REFORESTED 9.9 has. WITH 7.5 MILLION TREES!"#$%&'()*+%',-'.&%%/'0*)1.%23'456'789:;'!"#$%"&'()$*+,%$-".'+/*+012(3+ 4('"11/'"+56%&"%3+/*+7'8+09$+ F$*&/A"%"A+(+9%/G"+%"#$%"&'()$*+"H$%'++ /*+'D"+.$6*'%3++ WITH THE BINHI PROGRAM, EDC IS REFORESTING 10,000 has. OVER 10 YEARS WITH MORE THAN 6.5 MILLION TREES 23

24 FIRST GAS AND THE PROVINCIAL GOVERNMENT OF BATANGAS HAS PARTNERED WITH THE ARCHDIOCESE OF LIPA FOR THEIR CENTENNIAL REFORESTATION PROGRAM 24

25 FIRST GAS CONTINUES TO PROTECT THE VERDE ISLAND PASSAGE THROUGH ITS SUPPORT FOR BANTAY DAGAT 25

26 OVER THE LAST 10 YEARS, WE HAVE REHABILITATED THE 9.9 HECTARE MANGROVE WITHIN OUR FIRST GAS PLANT SITE MANGROVE AREA THEN Mangrove Area Then Mangrove Area Now 26

27 OUR MANGROVE IS SANCTUARY TO MORE THAN 79 BIRD SPECIES Moorhen Pacific Swallow Chinese Egret White-collared Kingfisher White-browed Crake Yellow-vented Bulbul Bats Yellow Bittern Oriental Reed-Warbler Common Kingfisher Zebra Dove Brown Shrike 27

28 OLIVE RIDLEY TURTLES NEST IN THE SHORES OF OUR FIRST GAS JETTY 28

29 BUSINESS AS USUAL AND THE PURSUIT OF GROWTH FOR ITS OWN SAKE ARE NO LONGER SUSTAINABLE. What maiers more is the quality of growth and the ability to respect, protect and sustain life as we know it. Image credit: Danilo Rizzu5/FreeDigitalPhotos.net 29

30 AS WE GROW, WE WILL SHOW THAT IT IS POSSIBLE TO TRANSFORM AND BECOME MORE THAN WHAT WE ARE TODAY WITH LESS Image credits: Simon Howden/FreeDigitalPhotos.net JSCrea5onzs/FreeDigitalPhotos.net 30

31 Thank You 31

FIRST GEN CORPORATION Financial and Operating Results

FIRST GEN CORPORATION Financial and Operating Results 1 DISCLAIMER This presentation contains certain forward looking statements. These forward looking statements that include words or phrases such as