May 13, Dear Ms. Salonga:

Transcription

1 Energy Development Corporation 38 th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue Ortigas Center, Pasig 1605, Philippines Trunklines: +63 (2) (PLDT) / +63 (2) (Globe) May 13, 2016 VINA VANESSA S. SALONGA Head Issuer Compliance and Disclosure Department (ICDD) Philippine Dealing & Exchange Corp. 37/F, Tower 1, The Enterprise Center 6766 Ayala Ave. cor. Paseo de Roxas Makati City Dear Ms. Salonga: In compliance with PDEx disclosure requirements, we submit the attached Energy Development Corporation (Consolidated) Quarterly Report for the period ended March 31, 2016 (SEC Form 17-Q).

2 SEC Number File Number ENERGY DEVELOPMENT CORPORATION (Company s full Name) One Corporate Centre Julia Vargas cor. Meralco Ave., Ortigas Center, Pasig City (Company s Address) (632) (Telephone Number) March 31, 2016 (Quarter Ending) SEC FORM 17-Q (Form Type)

3 COVER SHEET SEC Registration Number E N E R G Y D E V E L O P M E N T C O R P O R A T I O N ( A S u b s i d i a r y o f R e d V u l c a n H o l d i n g s C o r p o r a t i o n ) A N D S U B S I D I A R I E S (Company s Full Name) J u l i a V a r g a s C o r n e r M e r a l c o A v e n u e, O r t i g a s C e n t e r, P a s i g C i t y (Business Address: No. Street City/Town/Province) Maribel A. Manlapaz (Contact Person) (Company Telephone Number) S E C Month Day (Form Type) Month Day (Fiscal Year) (Annual Meeting) (Secondary License Type, If Applicable) Dept. Requiring this Doc. Article I Amended Articles Number/Section Total Amount of Borrowings 675 P=5,399,622,093 P=8,139,958,894 Total No. of Stockholders Domestic Foreign To be accomplished by SEC Personnel concerned File Number LCU Document ID Cashier S T A M P S Remarks: Please use BLACK ink for scanning purposes.

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5 PART 1: FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Our unaudited consolidated financial statements for the three-month period ended March 31, 2016 have been prepared in accordance with Philippine Accounting Standards (PAS) 34, Interim Financial Reporting, and are filed as Annex I of this report. ITEM 2. MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ( MD & A ) The following is a discussion and analysis of the Company s consolidated financial performance for the three-month period ended March 31, The prime objective of this MD&A is to help the readers understand the dynamics of our Company s business and the key factors underlying our financial results. Hence, our MD&A is comprised of a discussion of our core business and an analysis of the results of operations. This section also focuses on key statistics from the unaudited financial statements and pertains to risks and uncertainties relating to the geothermal and other renewable power industry in the Philippines where we operate up to the stated reporting period. However, our MD&A should not be considered all inclusive, as it excludes unknown risks, uncertainties and changes that may occur in the general economic, political and environment condition after the stated reporting date. Our MD&A should be read in conjunction with our unaudited consolidated financial statements and the accompanying notes. All financial information is reported in Philippine Pesos (PhP) unless otherwise stated. Any references in this MD&A to we, us, our, or Company pertains to the Energy Development Corporation and its subsidiaries. "EDC" pertains to the Parent Company Energy Development Corporation. Additional information about the Company can be found on our corporate website SEC Form 17Q 1Q 2016

6 The following is a summary of the key sections of this MD&A: OVERVIEW OF OUR BUSINESS...4 Principal Products or Services... 4 Distribution methods of products or services... 4 Competition... 5 Dependence on one or a few major customers and identity of any such major customers... 5 New Products or Services... 7 FINANCIAL HIGHLIGHTS...7 RESULTS OF OPERATIONS...8 FINANCIAL CONDITION...12 CAPITAL AND LIQUIDITY RESOURCES...16 CASH FLOW...16 DISCUSSION ON THE SUBSIDIARIES...17 Green Core Geothermal Inc. (GCGI) Bac-Man Geothermal Inc. (BGI) EDC Burgos Wind Power Corporation (EBWPC) Unified Leyte Geothermal Energy Inc. (ULGEI) FG Hydro Power Corporation (FG Hydro) KEY PERFORMANCE INDICATORS...24 Commitments that will have an impact on the issuer s liquidity...25 Foreign Exchange Rate Volatility...25 Any events that will trigger direct or contingent financial obligation that is material to the company, including any default or acceleration of an obligation...25 CASH DIVIDENDS...25 MAJOR STOCKHOLDERS...26 BOARD OF DIRECTORS...27 OFFICERS...27 SEC Form 17Q 1Q 2016

7 OVERVIEW OF OUR BUSINESS Principal Products or Services The Company operates in the four geothermal service contract areas where it is principally involved in the generation and sale of electricity through Company-owned geothermal power plants to NPC, electric cooperatives, privately-owned distribution utilities (DUs), large industrial clients, and National Grid Corporation of the Philippines (NGCP), pursuant to Power Purchase Agreements (PPAs), Wholesale Electricity Spot Market (WESM), Ancilliary Services Provider (ASP), and Feed-in Tariff (FIT), respectively. EDC s subsidiaries, Green Core Geothermal, Inc. (GCGI) and Bac-Man Geothermal, Inc. (BGI), also hold offtake agreements in the form of Transition Supply Contracts (TSCs), Power Supply Contracts (PSCs) and Power Supply Agreements (PSAs) with various customers, particularly electric cooperatives. Through its 60% equity interest in First Gen Hydro Power Corporation (FG Hydro), the Company indirectly operates the 120 MW Pantabangan and 12 MW Masiway Hydroelectric Power Plants, located in Pantabangan, Nueva Ecija Province, Central Luzon. The power plants supply electricity into the Luzon grid to service the consumption of its distribution utilities clients covered by bilateral contract quantities. The Company has evolved into being the country s premier pure renewable energy player, possessing interests in geothermal, hydro, wind and solar power. For geothermal energy, its expertise spans the entire geothermal value chain, i.e., from geothermal energy exploration and development, reservoir engineering and management, engineering design and construction, environmental management and energy research and development. Its wind energy expertise covers project research & development and wind data assessment. With FG Hydro, the Company has not only acquired expertise in hydropower operation and maintenance, but also the capability to sell power on a merchant basis. The Company also operates the Burgos Solar Project (Phases 1 and 2), which is inside the same concession area as EDC Burgos Wind Power Corporation (EBWPC) wind farm. Distribution methods of products or services About 41.8% or GWh of the 2,318.3 GWh sales volume from its electricity business was sold to NPC by Unified Leyte and Mindanao 1 and 2 Power Plants. About 26.8% or GWh sales volume was sold to electric cooperatives, industrial customers and WESM in the Visayas region by the Palinpinon, Tongonan and Nasulo geothermal plants. About 11.8% or GWh sales volume was sold to electric cooperatives, industrial customers and WESM in the Luzon region by the Bac-Man geothermal power plants. FG Hydro's electricity generation of GWh was sold to WESM in the Luzon region and distribution utility clients in Nueva Ecija. Ancillary services of 98.3 GWh was sold to NGCP. Burgos wind and solar power plants generated GWh and 2.4 GWh of electricity, respectively, which were sold under the Feed-In-Tariff (FIT) regime. ULGEI s 94.0 GWh strips of energy were sold mainly to WESM. SEC Form 17Q 1Q

8 Competition The Government, in implementing the thrust of the EPIRA, has paved the way for a more independent and market-driven Philippine power industry. As such, selling power and consequently the dispatch of power plants depend on the ability to offer competitively priced power supply to the market. The Company has multiple power projects in Luzon, Visayas, and Mindanao. The successful privatization of NPC assets and NPC-IPP contracts in Luzon and Visayas, coupled with the integration of the two Grids under the WESM, introduced new players and opened competition in the power industry. Multinationals that currently operate in the Philippines and could potentially compete against the Company include KEPCO Power Corporation, CalEnergy International Services, Inc., Marubeni Energy Corporation, and AES Corporation. Aboitiz group and San Miguel group are the Company s two closest competitors. For wind power, its closest competitor is North Luzon Renewable Energy Corporation, which operates the Caparispisan Wind Farm in Pagudpud, Ilocos Norte in addition to the following: Altenergy Philippines Holdings Corporation, Petrowind Energy, Inc., Trans-Asia Renewable Energy Corp., and Northwind Power Development Corporation. The Company will face competition in both the development of new power generation facilities and the acquisition of existing power plants, as well as in the financing for these activities. The performance of the Philippine economy and the historical high returns of power projects in the country have attracted many potential competitors, including multinational development groups and equipment suppliers, to explore opportunities in the development of electric power generation projects in the Philippines. Accordingly, competition for and from new power projects may increase in line with the long-term economic growth in the Philippines. The Company believes that it will be able to compete because of its competitively-priced power, the reliability of its power plants, its use of clean and renewable fuels, and its expertise and experience in power supply contracting and trading. Dependence on one or a few major customers and identity of any such major customers Close to 34.8% of the Company s electricity revenue are derived from existing long-term Power Purchase Agreements (PPAs) with NPC. Concessions As of March 31, 2016, the Company holds the following service contracts. Geothermal Resource The Company holds five (5) Geothermal Renewable Energy Service Contracts (GRESC) with the DOE for the following geothermal projects: Tongonan Geothermal Project (expiring in 2031) Southern Negros Geothermal Project (expiring in 2031) Bacon-Manito Geothermal Project (expiring in 2031) Mt. Apo Geothermal Project (expiring in 2042) Northern Negros Geothermal Project (expiring in 2044) SEC Form 17Q 1Q

9 The Company, through its subsidiaries Green Core Geothermal Inc. and Bac-Man Geothermal Inc. secured three (3) Geothermal Operating Contracts covering power plant operations: Tongonan Geothermal Power Plant (with a twenty-five (25) year contract period expiring in 2037, renewable for another twenty-five (25) years) Palinpinon Geothermal Power Plants (with a twenty-five (25) year contract period expiring in 2037, renewable for another twenty-five (25) years) Bacon-Manito Geothermal Power Plants (with a twenty-five (25) year contract period expiring in 2037, renewable for another twenty-five (25) years) The Company also holds Geothermal Renewable Energy Service Contracts (GRESC) for the following prospect areas: Ampiro Geothermal Project (with a five-year pre-development period expiring in 2017, 25-year contract period expiring in 2037, renewable for another twenty-five (25) years) Mandalagan Geothermal Project (with a five-year pre-development period expiring in 2017, 25- year contract period expiring in 2037, renewable for another twenty-five (25) years) Mt. Zion Geothermal Project (with a five-year pre-development period expiring in 2017, 25-year contract period expiring in 2037, renewable for another twenty-five (25) years) Lakewood Geothermal Project (with a five-year pre-development period expiring in 2017, 25- year contract period expiring in 2037, renewable for another twenty-five (25) years) Balingasag Geothermal Project (with a five-year pre-development period expiring in 2017, 25- year contract period expiring in 2037, renewable for another twenty-five (25) years) Mt. Zion 2 Geothermal Project (with a five-year pre-development period expiring in 2020, 25- year contract period expiring in 2040, renewable for another twenty-five (25) years) Wind Resource The Company holds eleven (11) Wind Energy Service Contracts (WESC) with the DOE. The WESCs cover the following: 150 MW Wind Project in Burgos, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2034; renewable for another twenty-five (25) years) 84 MW Wind Project in Pagudpud, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2035; renewable for another twenty-five (25) years) Burgos 1 Wind Project in Burgos, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2038; renewable for another twenty-five (25) years) Burgos 2 Wind Project in Burgos, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2038; renewable for another twenty-five (25) years) Matnog 1 Wind Project in Matnog & Magdalena, Sorsogon; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) Matnog 2 Wind project in Matnog, Sorsogon; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) Matnog 3 Wind Project in Matnog, Sorsogon; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) SEC Form 17Q 1Q

10 Iloilo 1 Wind Project in Batad & San Dionisio, Iloilo; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) Negros Wind Project in Manapla & Cadiz City, Negros Occidental; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) Burgos 3 Wind Project in Burgos and Pasuquin, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2040; renewable for another twenty-five (25) years) Burgos 4 Wind Project in Burgos, Ilocos Norte; under DOE Certificate of Registration No. WESC (25-year contract period expiring in 2040; renewable for another twenty-five (25) years) Solar Resource The Company holds five (3) Solar Energy Service Contracts (SESC) with the DOE. The SESCs cover areas in the following: 4.16 MW Phase 1 & 2.66 MW Phase 2 Burgos Solar Project, Ilocos Norte; under DOE Certificate of Registration No. SESC (25-year contract period expiring in 2039; renewable for another twenty-five (25) years) Murcia Solar Project in Murcia, Negros Occidental; under SESC No (25-year contract period expiring in 2040; renewable for another twenty-five (25) years) Bogo Solar Project in Bogo, Cebu; under SESC No (25-year contract period expiring in 2040; renewable for another twenty-five (25) years) President Roxas Solar Project in President Roxas, North Cotabato; under SESC No (25-year contract period expiring in 2040; renewable for another twenty-five (25) years)* Kilada-Matalam Solar Project in Matalam, North Cotabato; under SESC No (25- year contract period expiring in 2040; renewable for another twenty-five (25) years)* *Cancellation letter has been submitted with Department of Energy (DOE) dated March 2016, awaiting confirmation reply New Products or Services On January 17, 2016, the Company has successfully commissioned its 2.66 MW Burgos Solar Project Phase 2, which is inside the same concession area as EBWPC s wind farm. The project is geographically situated in Barangay Saoit, Burgos Ilocos Norte. On March 1, 2016, the Energy Regulatory Commission (ERC) issued to EDC the Certificate of Compliance (COC) for the Burgos Solar Power Plant Phase 2. The COC specifies that the project, having a total capacity of 2.66 MW is entitled to the Feed-In Tariff (FIT) rate of P8.69, subject to adjustments as may be approved by the ERC, from January 19, 2016 to January 18, FINANCIAL HIGHLIGHTS March 2016 vs. March 2015 Results During the first quarter of 2016, the recurring net income generated increased by 6.2% or P166.4 million to P2,871.5 million from the P2,705.1 million posted during the same period in The increase is mainly attributable to the P598.6 million increase in revenues primarily due to Palinpinon and Burgos SEC Form 17Q 1Q

11 Wind's operations offset by the P401.1 million combined increase in cost of sales of electricity, general & administrative expenses, financial expenses, and provision for income tax. Recurring net income attributable to equity holders of the Parent Company was posted at P2,631.2 million, up by 6.8% as compared to the P2,464.3 million for the same period in The Company posted a net income of P3,494.5 million in the first quarter of 2016, an 27.8% or P760.6 million increase from the P2,733.8 million in the three-month period ended March 31, The movement was driven by the P598.6 million increase in revenues primarily due to Palinpinon and Burgos Wind's operations offset by the P401.1 million combined increase in cost of sales of electricity, general & administrative expenses, financial expenses, and provision for income tax. Net income is equivalent to 38.4% of total revenues for the quarter ended March 31, 2016 as compared to the 32.2% for the same period in Net income attributable to equity holders of the Parent Company at P3,254.0 million for the first quarter of 2016 is a P761.1 million increase from P2,492.9 million during the same period in RESULTS OF OPERATIONS The following table details the results of operations of the Company for the first three quarters of 2016 and STATEMENTS OF INCOME Horizontal and Vertical Analysis of Material Changes as of March 31, 2016 and 2015 HORIZONTAL ANALYSIS VERTICAL ANALYSIS Favorable (Unfavorable) Variance (Amounts in PHP millions) March 2016 March 2015 Amount % REVENUE Sale of electricity 9, , % 100.1% 100.0% COSTS OF SALE OF ELECTRICITY Costs of sale of electricity (3,216.0) (3,024.5) (191.5) -6.3% -35.4% -35.6% GENERAL AND ADMINISTRATIVE EXPENSES (1,365.0) (1,322.7) (42.3) -3.2% -15.0% -15.6% FINANCIAL INCOME (EXPENSE) Interest income % 0.8% 0.8% Interest expense (1,200.2) (1,131.7) (68.5) -6.1% -13.2% -13.3% (1,129.1) (1,063.6) (65.5) -6.2% -12.4% -12.5% OTHER INCOME (CHARGES) Foreign exchange losses net ,512.0% 5.5% 0.2% Proceeds from insurance claims (31.2) 40.5% 0.5% 0.9% Miscellaneous, net 63.7 (45.3) % 0.7% -0.5% ,098.2% 6.7% 0.6% INCOME BEFORE INCOME TAX 3, , % 43.9% 36.9% BENEFIT FROM (PROVISION FOR) INCOME TAX Current (432.1) (400.3) (31.8) -7.9% -4.8% -4.7% Deferred (70.8) (3.8) (67.0) -1,763.2% -0.8% 0.0% (502.9) (404.1) (98.8) -24.4% -5.6% -4.8% NET INCOME 3, , % 38.4% 32.2% Net income attributable to: Equity holders of the Parent Company 3, , % 35.8% 29.3% Non-controlling interest (0.5) -0.2% 2.6% 2.8% EBITDA 5, , % 64.5% 63.9% RECURRING NET INCOME 2, , % 31.6% 31.8% Recurring net income attributable to: Equity holders of the Parent Company 2, , % 28.9% 29.0% Non-controlling interest (0.5) -0.2% 2.6% 2.8% SEC Form 17Q 1Q

12 YTD March 31, 2015 vs. YTD March 31, 2014 Revenue Total revenue from sale of electricity for the quarter ended March 31, 2016 increased by 7.0% or P598.6 million to P9,096.3 million from P8,497.7 million during the same period in The improvement was principally driven by the P1,126.0 million increase in combined revenue contribution of Palinpinon (P153.4 million) and Burgos Wind (P667.6 million) power generating units, offset by Bac-Man s decrease in revenue contribution amounting to P259.6 million. Costs of Sale of Electricity Costs of sale of electricity increased by 6.3% or P191.5 million to P3,216.0 million for the period ended March 31, 2016 from P3,024.5 million during the same period in 2015 mainly due to the following: P130.9 million rental, insurance and taxes, due to reclassification of business tax from general and administrative expenses in 2015 and higher premium on insurance coverage of Company s assets; P109.4 million depreciation and amortization, primarily due to hook-up of new wells in LGBU, NIGBU, MAGBU, and BGBU; P12.0 million in repairs and maintenance, i.e., higher maintenance costs for Leyte and Nasulo field facilities. The aforementioned were mainly offset by P114.5 million decrease in purchased services and utilities. General and Administrative Expenses General and administrative expenses increased by 3.2% or P42.3 million to P1,365.0 million in the first quarter of 2016 from P1,322.7 million during the same period in 2015 mainly due to the hike of the following: P22.3 million for purchased services & utilities mainly on account of various administrative activities for Burgos Wind and Leyte, and exploration activities for international projects; and P7.5 million provision for doubtful accounts. Financial Income (Expense) Financial expenses - net increased by 6.2% or P65.5 million to P1,129.1 million for the period ended March 31, 2016 from P1,063.5 million during the same period in Interest Income Interest income increased by 4.4% or P3.0 million to P71.1 million for the quarter ended March 31, 2016 from P68.1 million during the same period in 2015 mainly due to higher investible partly offset by lower weighted average interest rates. Interest Expense Interest expense increased by 6.1% or P68.5 million to P1,200.2 million for the quarter ended March 31, 2016 from P1,131.7 million during the same period in The unfavorable variance is mainly due to the GCGI loan that was drawn last March 2015 partially offset by the applicable interest expense on the lower principal of outstanding loans following amortization payments made since second quarter of last year. SEC Form 17Q 1Q

13 Other Income (Charges) Other income for the first quarter of 2016 amounted to P611.1 million, 1,098.2% or a P560.1 million increase from P51.0 million during the same period in Foreign exchange gains (losses) - net Foreign exchange gains - net for the three-month period ended March 31, 2016 amounted to P501.5 million, a P482.3 million increase from P19.2 million foreign exchange losses - net during the same period in The variance was mainly brought about by the appreciation of PHP against US$ for the quarter ended March 31, 2016 as compared to a PHP depreciation during the same period in The comparative foreign exchange rates were as follows: PHP:US$ December 31, March 31, December 31, March 31, Proceeds from insurance claims Proceeds amounting to P45.9 million were received during the first quarter of 2016 due to machinery breakdown claims. Proceeds from insurance claims amounting to P77.1 million due to typhoons Glenda and Sendong were received during the first quarter in Miscellaneous, net Miscellaneous charges - net for the quarter ended March 31, 2016 amounted to P63.7 million, or a P109.0 million turnaround from the miscellaneous income - net of P45.3 million during the same period in The movement was mainly due to the higher dividend income received this period and lower disallowed input VAT claims from BIR. Provision for Income Tax Current The Company s current tax expense increased by 7.9% or P31.8 million to P432.1 million for the quarter ended March 31, 2016 from P400.3 million during the same period in 2015 mainly on account of higher taxable income. Deferred Deferred tax expense for the first quarter of 2016 amounted to P70.8 million, a 1,763.2% or a P67.0 million increase from the P3.8 million during the same period in 2015, mainly due to the reversal of deferred tax liabilities on unrealized foreign exchange gains in SEC Form 17Q 1Q

14 Net Income As a result of the foregoing, the Company s net income increased by 27.8% or P760.6 million to P3,494.5 million for the first quarter of 2016 from P2,733.9 million net income during the same period in Net income is equivalent to 38.4% of total revenue for the period ended March 31, 2016 as compared to 32.2% for the same period in SEC Form 17Q 1Q

15 FINANCIAL CONDITION The following table details the financial condition of the Company as of March 31, 2016 and December 31, STATEMENT OF FINANCIAL POSITION Horizontal and Vertical Analysis of Material Changes as of March 31, 2016 and December 31, 2015 HORIZONTAL ANALYSIS VERTICAL ANALYSIS Favorable (Unfavorable) Variance (Amounts in PHP millions) March 2016 December 2015 Amount % ASSETS Current Assets Cash and cash equivalents 17, , % 12.9% 12.9% Financial asset at fair value through profit or loss 1, , % 0.8% 0.7% Trade and other receivables 6, , , % 4.8% 3.9% Parts and supplies inventories 3, , % 2.5% 2.4% Due from related parties % 0.1% 0.0% Current portion of: Derivative assets (18.1) -30.9% 0.0% 0.0% Available-for-sale (AFS) investments (129.6) % 0.0% 0.1% Other current assets 2, , % 1.7% 1.7% Total Current Assets 31, , , % 22.8% 21.8% Noncurrent Assets Property, plant and equipment 88, ,567.7 (119.7) -0.1% 64.2% 65.1% Exploration and evaluation assets 3, , % 2.2% 2.3% Goodwill and intangible assets 4, ,289.3 (42.3) -1.0% 3.1% 3.2% Deferred tax assets net 1, ,120.1 (49.7) -4.4% 0.8% 0.8% Available-for-sale (AFS) investments (1.1) -0.3% 0.3% 0.3% Derivative assets (72.3) -24.7% 0.2% 0.2% Other noncurrent assets 8, , % 6.5% 6.3% Total Noncurrent Assets 106, , % 77.2% 78.2% TOTAL ASSETS 137, , , % 100.0% 100.0% LIABILITIES AND EQUITY LIABILITIES Current Liabilities Trade and other payables 11, , , % 8.6% 7.3% Due to related parties % 0.1% 0.1% Income tax payable ,434.9% 0.3% 0.0% Current portion of: Long-term debts 7, ,860.9 (24.7) -0.3% 5.7% 5.8% Derivative liabilities % 0.0% 0.0% Total Current Liabilities 20, , , % 14.7% 13.2% Noncurrent Liabilities Long-term debts - net of current portion 65, ,650.7 (1,102.3) -1.7% 47.5% 49.0% Derivative liabilities - net of current portion % 0.4% 0.1% Net retirement and other post-employment benefits 1, , % 1.4% 1.4% Provisions and other long-term liabilities 1, ,061.5 (87.7) -4.3% 1.4% 1.5% Total Noncurrent Liabilities 70, ,824.6 (815.7) -1.2% 50.8% 52.1% EQUITY Equity Attributable to Equity Holders of the Parent Preferred stock % 0.1% 0.1% Common stock 18, , % 13.6% 13.8% Treasury Stock (54.3) (28.4) (25.9) 91.2% 0.0% 0.0% Common shares in employee trust account (350.2) (350.2) - 0.0% -0.3% -0.3% Additional paid-in capital 6, , % 4.6% 4.6% Equity reserve (3,706.4) (3,706.4) - 0.0% -2.7% -2.7% Net accumulated unrealized gain on AFS investments (1.1) -1.1% 0.1% 0.1% Fair value adjustments on hedging transactions - (177.5) % 0.0% -0.1% Cumulative translation adjustment arising from foreign subsidiaries (567.6) (97.3) (470.3) 483.4% -0.4% -0.1% Retained earnings 25, , % 18.4% 18.2% 45, , % 33.3% 33.6% Non-controlling interests 1, , % 1.2% 1.2% Total Equity 47, , % 34.6% 34.7% TOTAL LIABILITIES AND EQUITY 137, , , % 100.% 100.0% SEC Form 17Q 1Q

16 Cash and cash equivalents Cash and cash equivalents increased by 1.3% or P222.6 million to P17,836.5 million as of March 31, 2016 from the P17,613.9 million in December 31, The increase was primarily attributable to the P3,315.5 million net cash generated from operating activities. The aforementioned were offset by the following: P1,480.8 million acquisition of property, plant and equipment, mainly on account of drilling activities in Leyte and Palinpinon; P902.5 million payments of interest and financing charges; P510.0 million principal re-payments of long-term debts; and P142.8 million regular cash dividend payments to non-controlling interest in FG Hydro. Financial asset at fair value thru profit or loss This account increased by 2.1% or P21.8 million to P1,036.1 million as of March 31, 2016 from the P1,014.3 million in December 31, 2015 balance due to additional investments acquired in Trade and other receivables Trade and other receivables increased by 22.8% or P1,220.7 million to P6,566.9 million as of March 31, 2016 from P5,346.2 million balance as of December 31, 2015 mainly due to increase in NPC receivables. Parts and supplies inventories This account increased by 4.0% or P130.2 million to P3,382.1 million as of March 31, 2016 from the P3,251.9 million as of December 31, The increase was due to purchase of various materials and supplies for plants maintenance and rehabilitation activities. Due from related parties This account increased by 100.0% or P180.2 million to P180.2 million as of March 31, 2016 mainly due to interest free advance for ULGEI P million. Other current assets This account increased by 4.8% or P108.2 million to P2,371.6 million as of March 31, 2016 from the P2,263.4 million balance in December 31, 2015 was primarily due to increase in withholding tax certificate. Property and equipment net This account decreased by 0.1% or P119.7 million to P88,448.0 million as of March 31, 2016 from P88,567.7 million as of December 31, The decrease resulted primarily from receipt of proceeds from Weir Engineering Services for Bac-Man rehabilitation arising from settlement of the arbitration case. SEC Form 17Q 1Q

17 Exploration and evaluation assets This account increased by 0.4% or P12.0 million to P3,085.6 million as of March 31, 2016 from the balance of P3,073.6 million as of December 31, 2015 mainly due to the expenditures for local explorations projects. Deferred tax assets net This account decreased by 4.4% or P49.7 million to P1,070.4 million as of March 31, 2016 from the P1,120.1 million balance as of December 31, 2015 due to recognized deferred tax income. Available-for-sale (AFS) investments The decrease of 100.0% or P129.6 million to nil as of March 31, 2016 from the P129.6 million in December 31, 2015 in current available for sale investments is mainly due to the redemption of the matured placement last January 15, 2016 while, the decrease of 0.3% or P1.1 million to P434.0 million as of March 31, 2016 from P435.1 million in December 31, 2015 in non-current available for sale investment is due to realignment, amortization and MTM adjustment.. Derivative asset This account decreased by 30.9% or P18.1 million to P40.5 million as of March 31, 2016 from P58.6 million balance as of December 31, 2015 due to the outstanding hedging of foreign loans of the company. Other noncurrent assets This account increased by 4.3% or P366.0 million to P8,950.2 million as of March 31, 2016 from the P8,584.3 million balance as of December 31, 2015 primarily due to capital funding of international projects. Trade and other payables This account increased by 18.2% or P1,820.2 million to P11,810.1 million as of March 31, 2016 from the P9,989.9 million balance as of December 31, 2015 due to dividend payable accrued for common and preferred stockholders. Due to related parties This account increased by 10.8% or P11.0 million to P112.8 million as of March 31, 2016 from P101.8 million as of December 31, 2015 was mainly due to outstanding consultancy fees with First Gen Corporation. Income tax payable The increase in Income tax payable is due to the higher income tax expense for the period. Derivative liability (current portion) The increase of 153.1% or P7.5 million to P12.4 million from P4.9 million as interest rate swap agreements resulted in loss. SEC Form 17Q 1Q

18 Long-term debt net of current portion The decrease in long-term debt of 1.7% or P1,102.3 million to P65,548.4 million from P66,650.7 million pertains mainly to the exchange rate realignment of loan balances. Net retirement and other post-retirement benefit The 4.1% increase or P78.0 million to P1,992.9 million as of March 31, 2016 from P1,914.9 million as of December 31, 2015 mainly due to retirement expense provision recognized during the period. Provisions and other long-term liabilities This account decreased by 51.7% or P1,065.0 million to P996.5 million as of March 31, 2016 from P2,061.5 million balance as of December 31, 2015 mainly due to provision for rehabilitation costs recognized under Provisions and other long-term liabilities. Cumulative translation adjustments arising from foreign subsidiaries The increase of P470.3 million is mainly due to the outstanding hedging of foreign loans of the company. Net accumulated unrealized gain on AFS investments This account decreased by 1.1% or P1.1 million to P102.9 million as of March 31, 2016 and P104.0 million as of December 31, The decrease is mainly due to fair value of AFS investments for the period. Retained earnings The increase of 2.5% or P629.3 million to P25,407.7 million as of March 31, 2016 from P24,778.4 million as of December 31, 2015 was mainly due to the P3,254.0 million net income attributable to the equity holders of the Parent, partly reduced by P2,774.0 million cash dividend declared. Non-controlling interests Non-controlling interest increased by 6.5% or P101.9 million to P1,681.3 million as of March 31, 2016 from the P1,579.4 million balance as of December 31, 2015 due to the net income attributable to noncontrolling interests of P240.5 million offset by thep142.8 million total cash dividend paid to noncontrolling interests during the period. SEC Form 17Q 1Q

19 CAPITAL AND LIQUIDITY RESOURCES As of the nine-month period ended (in millions of pesos) YTD March 2016 YTD March 2015 YoY change Statement of Financial Position Data Total Assets 137, , Total Liabilities 90, ,005.7 (2,777.1) Total Stockholder s Equity 47, , ,455.8 The Company s assets as of March 31, 2016 amounted to P137,869.7 million, 0.5% higher as compared to the P137,191.1 million level as of March 31, CASH FLOW YTD March 31, 2016 vs. YTD March 31, 2015 Net cash flows from operating activities decreased by P2,468.2 million to P3,315.5 million for the period ended March 31, 2016 from P5,783.7 million during the same period in 2015 mainly due to lower operating revenue offset by higher operating expenses. Net cash flows used in investing activities decreased by 58.5% or P2,054.2 million to P1,460.5 million for the quarter ended March 31, 2016 as compared to the P3,515.4 million during the same quarter in 2015 primarily due to lower capital expenditures. Net cash flows from financing activities for the three-month period ended March 31, 2016 amounted to P1,581.2 million, an P9,288.3 million turnaround from the P7,707.1 million net cash flows used during the same period in 2015 primarily due to lower loan proceeds, partly offset by higher payments of longterm debts and dividends. SEC Form 17Q 1Q

20 DISCUSSION ON THE SUBSIDIARIES Green Core Geothermal Inc. (GCGI) (Amounts in PHP millions) For the periods ended March Revenue 2, ,589.2 Cost of sale of electricity (2,016.2) (2,234.7) General and administrative expenses (103.0) (128.7) Other income (charges) - net (104.5) (2.8) Income before income tax Provision for income tax (91.8) (52.7) Net income As of March 31, 2016 December 31, 2015 Total current assets 3, ,776.7 Total noncurrent assets 9, ,675.2 Total current liabilities 2, ,017.2 Total noncurrent liabilities 6, ,976.0 Total equity 3, ,458.7 GCGI s revenue increased by P108.7 million, to P2,697.9 million as of March 31, 2016 from P2,589.2 million for the same period in The increase was primarily due to higher sales volume by 17.4 GWh. Cost of sale of electricity decreased by 9.8% or P218.5 million, to P2,016.2 million in 2016 from P2,234.7 million in The decrease was due to lower cost of steam (P274.8 million) offset by higher repairs and maintenance (P35.8 million) and rental, insurance and taxes (P12.8 million). Other charges net increased by P101.7 million, to P104.5 million in 2016 from P2.8 million in The unfavorable variance was mainly due to higher interest expense on long-term loan (P94.3 million). The long-term loan was drawn last March 8, With the foregoing, net income increased by 124.5% or P212.1 million, to P382.4 million in 2016 from P170.3 million in Total current assets decreased by P181.5 million, to P3,595.2 million as of March 31, 2016 from P3,776.7 million balance as of December 31, The decrease was traced to lower other current assets (P314.3 million) and trade and other receivables (P59.0 million) offset by higher cash & cash equivalents (P179.1 million). Total current liabilities decreased by P94.5 million, to P2,922.7 million as of March 31, 2016 from P3,017.2 million as of December 31, The decrease was attributed to lower trade & other payables (P184.9 million) offset by this period s income tax payable, none in 2015, (P87.0 million). Total noncurrent liabilities decreased by 7.2% or P502.3 million, to P6,473.7 million as of March 31, 2016 from P6,976.0 million as of December 31, 2015 due to this period s repayment of loan (P510.0 million). SEC Form 17Q 1Q

21 Total equity increased by 11.1% or P384.2 million, to P3,842.9 million as of March 31, 2016 from P3,458.7 million as of December 31, 2015 due to this period s net income (P382.4 million). SEC Form 17Q 1Q

22 Bac-Man Geothermal Inc. (BGI) For the periods ended (Amounts in PHP millions) March 31, 2016 March 31, 2015 Revenues Cost of sales (703.8) (568.1) General and administrative expenses (13.2) (45.0) Other income Income before income tax Provision for income tax Net income As of March 31, 2016 Audited December 31, 2015 Total Current Assets 3, ,307.1 Total Non-Current Assets 5, ,724.3 Total Current Liabilities 1, ,756.6 Total Non-Current Liabilities 4, ,383.3 Total Equity 3, ,891.5 Revenues decreased by 25.7% or P=245.2 million, to P=707.7 million as of March 31, 2016 from P=952.9 million for the same period in The decrease was primarily due to decrease in WESM prices and expiration of some bilateral contracts. Cost of sales increased by 23.9% or P=135.7 million, to P=703.8 million as of March 31, 2016 from P=568.1 million for the same period in The increase was primarily due to higher steam costs, depreciation and amortization, and rental, insurance and taxes. General and administrative expenses decreased by 70.7% or P=31.8 million, to P=13.2 million as of March 31, 2016 from P=45.0 million for the same period in The decrease was due to lower purchased services and utilities, rental, insurance and taxes, and personnel costs. This year s other income was higher by 280.6% or P=10.1 million, to P=13.7 million as of March 31, 2016 from P=3.6 million for the same period in The increase was primarily due to the P=81.9 million insurance proceeds for machinery breakdown claims, partly offset by higher interest expense, foreign exchange losses and VAT refund disallowance amounting to P=61.5 million, P=5.0 million and P=4.0 million, respectively. This year s provision for income tax of P=0.2 million is attributable to deferred tax impact of temporary differences on retirement and other post employments benefits. Total current assets decreased by 31.8% or P=1,689.1 million, to P=3,618.0 million as of March 31, 2016 from P=5,307.1 million as of December 31, The decrease was primarily due to the decrease of cash and cash equivalents by P=1,905.1 million and trade receivables and other receivables by P=45.4 million, partly offset by the decrease of other current assets by P=262.6 million. Total non-current assets decreased by 4.5% or P=259.8 million, to P=5,464.5 million as of March 31, 2016 from P=5,724.3 million as of December 31, The decrease was mainly due to decrease of property, SEC Form 17Q 1Q

23 plant and equipment by P=271.4 primarily due to the collection from Weir Engineering Services arising from settlement of the arbitration case, partly offset by increase in other non-current assets by P=11.8 million. Total current liabilities decreased by 17.6% or P=308.3 million, to P=1,448.3 million as of March 31, 2016 from P=1,756.6 million as of December 31, The decrease was mainly due to decrease of trade and other payables by P=308.1 million. Total non-current liabilities increased by 0.1% or P=4.8 million, to P=4,388.1 million as of March 31, 2016 from P=4,383.3 million as of December 31, The increase was primarily due to increase in long-term debts from amortization of deferred financing costs and increase in net retirement and other postemployment liability. Total equity decreased by 33.6% or P=1,645.4 million, to P=3,246.1 million as of March 31, 2016 from P=4,891.5 million as of December 31, The decrease was primarily due to dividend declaration of P=1,650.0 million, partially offset by net income earned during the period of P=4.6 million. SEC Form 17Q 1Q

24 EDC Burgos Wind Power Corporation (EBWPC) For the years ended (Amounts in PHP millions) March 31, 2016 March 31, 2015 Revenue Costs of sale of electricity (316.0) (266.5) General and administrative expenses (34.4) (28.7) Other charges net (41.0) (133.0) Loss before income tax (175.1) Provision for income tax (35.2) - Net Income (Loss) (175.1) As of March 31, 2016 December 31, 2015 Total current assets 2, ,551.2 Total noncurrent assets 18, ,198.2 Total current liabilities 1, ,786.4 Total noncurrent liabilities 13, ,365.1 Total equity 5, ,598.0 EBWPC reported P=920.7 million revenue from sale of electricity for the quarter ended March 31, 2016 from P=253.1 million for the same period in This is a P=667.6 million or 263.8% increase mainly due to higher actual generated sales volume and implementation of Feed-in-tariff. Costs of sale of electricity increased by 18.6% or P=49.5 million, to P=316.0 million as of March 31, 2016 from P=266.5 million for the same period in The unfavorable variance was mainly due to rental, insurance and taxes (P=35.5 million) and purchased services and utilities (P=28.1 million). These were partly offset by lower depreciation and amortization (P=20.6 million) General and administrative expenses increased by 19.9% or P=5.7 million, to P=34.4 million as of March 31, 2016 from P=28.7 million for the same period in This was mainly due to higher materials and supplies (P=7.3 million) and personnel costs (P=3.5 million). These were partly offset by lower rental, insurance and taxes (P=3.0 million) and provision for impairment of Input VAT (P=2.0 million). Other charges - net decreased by 69.2% or P=92 million, to P=41.0 million as of March 31, 2016 from P=133.0 million for the same period in This was mainly due to favorable appreciation of the peso against the dollar (P=150.4 million), partly offset by the increase in interest expense incurred (P=150.4 million) on the US$315 million debt facility. Balance sheet accounts have minimal movements during the quarter. SEC Form 17Q 1Q

25 Unified Leyte Geothermal Energy Inc. (ULGEI) (Amounts in PHP millions) For the period ended March 31, 2016 March 31, 2015 Revenue Costs of sale of electricity (517.0) (450.0) General and administrative expenses (3.0) (0.7) Other income (charges) - net - - Loss before income tax (179.7) (91.7) Provision for income tax - - Net Loss (179.7) (91.7) As of March 31, 2016 December 31, 2015 Total current assets Total noncurrent assets - - Total current liabilities Total noncurrent liabilities - - Total equity (capital deficiency) (573.3) (393.6) ULGEI s revenue decreased by 5.2% or P=18.7 million, to P=340.3 million as of March 31, 2016 from P=359.0 million for the same period in The unfavorable variance was due to lower WESM prices. Cost of sale of electricity increased by 14.9% or P=67.0 million, to P=517.0 million as of March 31, 2016 from P=450.0 million for the same period in The unfavorable variance was due to higher purchased price of electricity. General and administrative expenses increased by 328.6% or P=2.3 million, to P=3.0 million mainly due to increase in purchased services and utilities (P=1.8 million) and business and related expenses (P=0.5 million). With the foregoing, net loss increased by 96.0% or P=88.0 million to P=179.7 million as of March 31, 2016 from P=91.7 million for the same period in Total currents assets increased by 23.7% or P=46.1 million, to P=240.4 million as of March 31, 2016 from P=194.3 million balance as of December 31, The increase was mainly due to the higher trade receivable (P=37.8 million ) and cash (P=5.0 million). Total current liabilities increased by 38.4% or P=225.8 million, to P=813.7 million as of March 31, 2016 from P=587.9 million balance as of December 31, The increase was caused by higher due to related parties (P=210.6 million) and trade payables (P=15.2 million). Total capital deficiency increased by 45.7% or P=179.7 million to P=573.3 million as of March 31, 2016 from P=393.6 million balance as of December 31, The increase was due to net loss on operation. SEC Form 17Q 1Q

26 FG Hydro Power Corporation (FG Hydro) As of and for the periods ended March 31 (Amounts in PHP millions) Operating revenues 1, ,043.5 Cost of sales (162.1) (165.8) General and administrative expenses (81.4) (71.3) Operating profit Other expenses net (30.2) (46.0) Income before tax Provision for income tax (153.1) (158.0) Net income Mar. 31, 2016 Dec. 31, 2015 Total current assets 1, ,734.2 Total noncurrent assets 6, ,670.1 Total current liabilities Total noncurrent liabilities 2, ,831.2 Total equity 4, ,976.7 FG Hydro generated revenues of P1,012.0 million for the period ended March 31, 2016, 3.0% or P31.5 million lower than the revenues of P1,043.5 million for the same period in The unfavorable variance was mainly on account of lower average WESM prices and lower electricity sales during the period partly offset by higher ancillary service revenues. Cost of sales for the period ended March 31, 2016 is slightly lower at P162.1 million as compared to the P165.8 million level for the same period in The favorable variance was mainly due to lower water service fees paid to NIA during the period. General and administrative expenses was higher at P81.4 million, P10.1 million or 14.2% higher compared to the P71.3 million expense for the same period in The unfavorable variance was mainly due to increased amount of IAR insurance premium. Interest expense for the period ended March 31, 2016 of P32.6 million, however, is P15.1 million or 31.7% lower as compared to P47.7 million for the same period in 2015 due to reduced long-term debt balance. Provision for current income tax for the period ended March 31, 2016 is slightly lower at P153.1 million as compared to P158.0 million for the same period in Overall, FG Hydro posted a net income of P585.2 million for the period ended March 31, 2016, P17.2 million or 2.9% lower than the P602.4 million reported income for the same period in Total assets as of March 31, 2016 stood at P7, million, P380.7 million or 5.1% higher than the December 31, 2015 level of P7,404.3 million. The favorable variance was mainly due to higher accounts receivable balance in As of March 31, 2016, total liabilities stood at P3,580.1 million, P152.5 million or 4.4% higher than the December 31, 2015 level of P3,427.6 million. The unfavorable variance is mainly on account of higher balance of income tax liability as of end of March 31, Total equity as of March 31, 2016 of P4,204.9 million rose slightly by 5.7% or P228.2 million as compared to the December 31, 2015 level of P3,976.7 million. SEC Form 17Q 1Q

27 KEY PERFORMANCE INDICATORS The top eight (8) key performance indicators are set forth below: Ratio March 2016 March 2015 Current Ratio 1.55:1 1.60:1 Debt-to-Equity Ratio 1.54:1 1.76:1 Net Debt-to-Equity Ratio 1.17:1 1.22:1 Return on Assets (%) Return on Equity (%) Solvency Ratio Interest Rate Coverage Ratio Asset-to-Equity Ratio Current Ratio Total current assets divided by total current liabilities. This ratio is a rough indication of a company s ability to pay its short-term obligations. Generally, a current ratio above 1.00 is indicative of a company s greater capability to settle its current obligations. Debt-to-Equity Ratio Total interest-bearing debts divided by stockholders equity. This ratio expresses the relationship between capital contributed by the creditors and the owners. The higher the ratio, the greater the risk being assumed by the creditors. A lower ratio generally indicates greater long-term financial safety. Net-Debt-to-Equity Ratio Total interest-bearing debts less cash & cash equivalents divided by stockholders equity. This ratio measures the company s financial leverage and stability. A negative net debt-to-equity ratio means that the total of cash and cash equivalents exceeds interest-bearing liabilities. Return on Assets Net income (annual basis) divided by total assets (average). This ratio indicates how profitable a company is relative to its total assets. This also gives an idea as to how efficient management is at using its assets to generate earnings. Return on Equity Net income (annual basis) divided by total stockholders equity (average). This ratio reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. A business that has a high return on equity is more likely to be one that is capable of internally generating cash. For the most part, the company s return on equity is compared with an industry average. The company is considered superior if its return on equity is greater than the industry average. Solvency Ratio Net income excluding depreciation and non-cash provisions divided by total debt obligations. This ratio gauges a company s ability to meet its long-term obligations. Interest Rate Coverage Ratio Earnings before interest and taxes of one period divided by interest expense of the same period. This ratio determines how easily a company can pay interest on outstanding debt. Asset-to-Equity Ratio Total assets divided by total stockholders equity. company s leverage, the amount of debt used to finance the firm. This ratio shows a SEC Form 17Q 1Q

28 Commitments that will have an impact on the issuer s liquidity As of March 31, 2016, the Company has unserved purchase orders and awarded contracts for the purchase of various capital goods in the total amount of P927.9 million. Other than these, we are not aware of any other material commitments that should impact the Company s liquidity. Foreign Exchange Rate Volatility The Company has P=8,140.0 million in long-term US dollar denominated loans as of March 31, 2016 which is 60.1% of the total Company s long-term loans. Any events that will trigger direct or contingent financial obligation that is material to the company, including any default or acceleration of an obligation There are no material changes in the contingent financial obligations since the last annual balance sheet date. CASH DIVIDENDS Parent Company On March 9, 2016, EDC declared cash dividend amounting to P=2,600.0 million to its common shareholders and P=7.5 million to its preferred shareholder of record as of March 23, 2016 payable on or before April 12, First Gen Hydro On January 20, 2016, FG Hydro paid cash dividend amounting to P=142.8 million to its non-controlling common stockholder. SEC Form 17Q 1Q

29 MAJOR STOCKHOLDERS As of March 31, 2016, the total number of stockholders was 680 and the stock price was P5.88. Public float level was at 49.25% (or 9,228,916,239 common shares). List of Top 20 Stockholders as of March 31, 2016 Rank Name Nationality Number of Shares Preferred Common Total 1 Red Vulcan Holdings Corporation Filipino 9,375,000,000 7,500,000,000 16,875,000, PCD Nominee Corporation Foreign - 5,451,442,656 5,451,442, PCD Nominee Corporation Filipino - 3,772,468,195 3,772,468, First Gen Corporation Filipino - 991,782, ,782, Northern Terracotta Power Corporation Filipino - 986,337, ,337, Peter D. Garrucho, Jr. Filipino - 5,670,000 5,670, F. Yap Securities, Inc. Filipino - 4,000,000 4,000, Peace Equity Access for Community Empowerment Foundation, Inc. Filipino - 3,030,000 3,030, Benjamin K. Liboro &/or Luisa Liboro Filipino - 2,525,500 2,525, Croslo Holdings Corporation Filipino - 2,200,000 2,200, Manuel Moreno or Maria Terasa Lopez Filipino - 1,310,000 1,310, Anthony M. Mabasa Filipino - 1,000,000 1,000, Arthur A. de Guia Filipino - 950, , ALG Holdings Corporation Filipino - 875, , First Life Financial Co., Inc. Filipino - 800, , Peter Mar &/or Annabelle C. Mar Filipino - 700, , Rosalind Camara Filipino - 663, , Ma. Consuelo R. Lopez Filipino - 500, , Nicolas, Virginia Maria D. Filipino - 393, , Puno,Francis Giles B. &/or Ma. Patricia Puno Filipino - 367, , % SEC Form 17Q 1Q

30 BOARD OF DIRECTORS As of March 31, 2016, the members of the Board of Directors of EDC are as follows: Oscar M. Lopez Federico R. Lopez Peter D. Garrucho, Jr. Joaquin E. Quintos IV Ernesto B. Pantangco Francis Giles B. Puno Richard B. Tantoco Jonathan C. Russell Edgar O. Chua Francis Ed. Lim Arturo T. Valdez Chairman Emeritus Chairman and Chief Executive Officer Director Director Director and Executive Vice President Director Director, President and Chief Operating Officer Director Independent Director Independent Director Independent Director OFFICERS As of March 31, 2016, the Officers of EDC are as follows: Name Federico R. Lopez Richard B. Tantoco Ernesto B. Pantangco Nestor H. Vasay Manuel S. Ogena Dominic M. Camu Ma. Elizabeth D. Nasol Erwin O. Avante Ferdinand B. Poblete Ariel Arman V. Lapus Ellsworth R. Lucero Manuel C. Paete Liberato S. Virata Reman A. Chua Position Chief Executive Officer President and Chief Operating Officer Executive Vice President Senior Vice President for the Finance Group/CFO/Treasurer/Head of Finance & Shared Services Group Senior Vice President, Geosciences and Reservoir Engineering Group Senior Vice President, Operations and Engineering Group and Concurrent Head of Leyte Geothermal Business Unit (LGBU) Vice President, Human Resource Management Group Vice President, Corporate Finance, Compliance Officer (SEC & PSE) Vice President, Information Technology Group/Chief Information Officer Vice President, Business Development, and Managing Director for Latin America Vice President, Head of LGBU Facilities Operations Management Vice President, Head of LGBU Projects & Resource Management Vice President, Head of BGBU Projects & Resource Exploration Management Vice President, Head of Wind Ilocos Norte Business Unit SEC Form 17Q 1Q

31 Name Raymundo N. Jarque Rassen M. Lopez Bernardito M. Lapuz Ramon A. Carandang Maribel A. Manlapaz Teodorico Jose R. Delfin Ana Maria A. Katigbak Glenn L. Tee Erudito S. Recio Position Vice President for International and Frontier/Business Development Group Vice President, Head of Legal and Regulatory Group Chief Risk Officer / Vice President for Strategy and Risk Management Group Vice President / Head of Corporate Affairs Group Assistant Vice President, Comptroller Corporate Secretary Assistant Corporate Secretary Chief Audit Executive Investor Relations and Corporate Information Officer SEC Form 17Q 1Q

32

33 ENERGY DEVELOPMENT CORPORATION AND SUBSIDIARIES FINANCIAL SOUNDNESS INDICATORS Ratio March 2016 March 2015 Current Ratio 1.55:1 1.60:1 Debt-to-Equity Ratio 1.54:1 1.76:1 Net Debt-to-Equity Ratio 1.17:1 1.22:1 Return on Assets (%) Return on Equity (%) Solvency Ratio Interest Rate Coverage Ratio Asset-to-Equity Ratio

34 Prime Terracotta Holdings Corporation E: 100% V: 100% Red Vulcan Holdings Corporation E: 40% V: 60% D: 100% D: 60% D: 100% D: 100% D: 100% D: 100% EDC Geothermal Corporation (EGC) First Gen Hydro Power Corporation (FGHPC) EDC Wind Energy Holdings Inc. (EWEHI) EDC Drillco Corporation (EDC Drillco) EDC Bright Solar Energy Holdings Inc. (EBSEHI) EDC Holdings International Limited (EHIL) ID: 100% Green Core Geothermal Inc. (GCGI) Bac-Man Geothermal Inc. (BGI) Unified Leyte Geothermal Energy Inc. (ULGEI) Southern Negros Geothermal, Inc. (SNGI) EDC Mindanao Geothermal Inc. (EMGI) Bac-Man Energy Development Corporation (BEDC) Kayabon Geothermal, Inc. (KGI) Mount Apo Renewable Energy Inc. (MAREI) Legend: D Direct Ownership ID Indirect Ownership E Economic Interest V Voting Interest ID: 0.01% D: 99.99% Energy Development (EDC) Corporation Chile Limitada EDC Soluciones Sostenibles Ltd ID: 95% ID: 95% ID: 100% ID: 100% ID: 100% EDC Energia Verde Chile SpA ID: 100% EDC Energia de la Tierra SpA EDC Pagali Burgos Wind Power Corporation (EPBWPC) EDC Burgos Wind Power Corporation (EBWPC) EDC Pagudpod Wind Power Corporation (EPWPC) EDC Chile Holdings SPA ID: 100% EDC Geotermica Chile SPA ID: 100% EDC Bayog Burgos Wind Power Corporation (EBBWPC) Matnog 1 Renewable Energy Corporation (M1REC) Matnog 2 Renewable Energy Corporation (M2REC) PT EDC Indonesia Geotermica Crucero Peru S.A.C. Geotermica Tutupaca Norte Peru S.A.C. Geotermica Loriscota Peru S.A.C. ID: 70% ID: 70% ID: 70% Matnog 3 Renewable Energy Corporation (M3REC) Iloilo 1 Renewable Energy Corporation (I1REC) Negros 1 Renewable Energy Corporation (N1REC) PT EDC Panas Bumi Indonesia EDC Geotermica Del Sur S.A.C. EDC Energia Azul S.A.C. EDC Energia Peru S.A.C. EDC Energia Geotermica S.A.C. EDC Progreso Geotermico S.A.C. ID: 0.01% ID: 99.99% ID: 100% EDC Bago Solar Power Corporation (EBSPC) ID: 100% EDC Desarollo Sostenible Ltd ID: 99.96% EDC Energia Verde Peru S.A.C. ID: 30% Geotermica Quello Apacheta Peru S.A.C. ID: 100% EDC Burgos Solar Corporation (EBSC) ID: 0.01% ID: 70% ID: 100% Energy Development Corporation Hong Kong Limited (EDC HKL) ID: 99.99% EDC Peru Holdings S.A.C. ID: 99.99% EDC Geotermica Peru S.A.C. ID: 0.01% ID: 0.01% EDC Energia Renovable S.A.C.

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36 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES SCHEDULE K CORPORATE STRUCTURE MARCH 31, 2016 Companies within the Lopez Group

37 FPH Group FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES SCHEDULE K CORPORATE STRUCTURE MARCH 31, 2016