Analyst Briefing August 15, 2018

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Analyst Briefing August 15, 2018 First Gen Corporation www.firstgen.com.

1 Analyst Briefing August 15, 2018 First Gen Corporation 6 / F Rockwell Business Center Tower 3, Ortigas Avenue, Pasig City, Philippines 1604

2 DISCLAIMER This presentation contains forward-looking statements. Forward-looking statements include words or phrases such as First Gen or its management believes, expects, anticipates, intends, plans, foresees, or other words or phrases of similar import. Similarly, statements that describe First Gen s objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward-looking statements are made based on management s current expectations or beliefs as well as assumptions made by, and information currently available to, management. First Gen does not make express or implied representations or warranties as to the accuracy and completeness of the information contained herein and shall not accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party s reliance on or use of such information. The information and opinions in this presentation are subject to change without notice. This presentation does not constitute a prospectus or other offering memorandum in whole or in part. Information contained in this presentation is a summary only. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any security. There shall be no sale of these securities in any country or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such country or jurisdiction. By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved in the offering. Investors must rely solely on their own examinations of the company and the offering in making a determination as to whether to invest in the securities offered. Prospective investors should undertake their own assessment with regard to their investment and they should obtain independent advice on any such investment s suitability, inherent risks and merits and any tax, legal and accounting implications which it may have for them. 2

3 EDC DELISTING TENDER OFFER RECALL THAT IN SEPTEMBER 2017, PHILIPPINES RENEWABLE ENERGY HOLDINGS CORPORATION (PREHC) COMPLETED A TENDER OFFER TO ACQUIRE 47.5% OF EDC S COMMON SHARES* Bidder: Philippines Renewable Energy Holdings Corporation Date of Announcement: 03 August 2017 Settlement Date: 29 September 2017 Tender Offer Price: Shares Tendered and Accepted: Php7.25/share 8.9 billion common shares (47.5% of outstanding) AT THAT TIME, PREHC AND FIRST GEN CORPORATION (FIRST GEN) ADVISED THE MARKET OF THEIR INTENTIONS TO EVENTUALLY DELIST EDC *equivalent to to a 31.7% voting stake 3

4 EDC DELISTING TENDER OFFER AS OF TODAY, FIRST GEN DIRECTLY AND INDIRECTLY OWNS 41.6% OF EDC S OUTSTANDING COMMON SHARES Public, 10.9% PREHC, 47.5% FGEN, 41.6%* EDC Economic Ownership as of July 30, 2018 FIRST GEN* 41.6% economic PREHC 47.5% economic Public 10.9% economic Energy Development Corporation O/S common shares: 18,737 million 10.9% OF EDC S COMMON SHARES ARE STILL HELD BY THE PUBLIC *First Gen continues to hold a 61.1% voting stake in EDC 4

EDC DELISTING TENDER OFFER ON 08 AUGUST 2018, EDC ANNOUNCED ITS INTENTION TO CONDUCT A VOLUNTARY DELISTING TENDER OFFER 1 FOR ALL ITS OUTSTANDING COMMON SHARES DELISTING TENDER OFFER

9% of total outstanding common shares. EDC is offering a price of 7.25 per share to EDC shareholders. This price is a premium of 46% over the closing share price of 4.

3 Subject to the filing of the Tender Offer Report with the SEC, the tender offer is expected to commence at 9:00am on 25 September 2018 and end at 12:00pm on 22 October 2018 4 The Tender

the public from 10.9% to less than 5.0%, and in turn, allow a voluntary delisting of the company (subject to PSE approval).

The terms and conditions of the tender offer are subject to the approval of the Securities and Exchange Commission (SEC). 2.

5 EDC DELISTING TENDER OFFER ON 08 AUGUST 2018, EDC ANNOUNCED ITS INTENTION TO CONDUCT A VOLUNTARY DELISTING TENDER OFFER 1 FOR ALL ITS OUTSTANDING COMMON SHARES DELISTING TENDER OFFER TENDER OFFER PRICE TENDER OFFER PERIOD CONDITION Tender offer of up to 2.04 billion common shares of EDC 2 (all remaining common shares held by the public) representing approximately 10.9% of total outstanding common shares. EDC is offering a price of 7.25 per share to EDC shareholders. This price is a premium of 46% over the closing share price of 4.95per share on 07 August 2018 and a 40% premium over the three month VWAP. 3 Subject to the filing of the Tender Offer Report with the SEC, the tender offer is expected to commence at 9:00am on 25 September 2018 and end at 12:00pm on 22 October The Tender Offer is subject to (among other conditions) a minimum of 1,162,000,000 common shares being tendered and eligible for acceptance by EDC, which will reduce the percentage of shares held by the public from 10.9% to less than 5.0%, and in turn, allow a voluntary delisting of the company (subject to PSE approval). 5 DELISTING OF EDC EDC expects to be delisted after the conclusion of a successful Tender Offer 1. The terms and conditions of the tender offer are subject to the approval of the Securities and Exchange Commission (SEC). 2. Up to 2,040,006,713 common shares representing total common shares held by all shareholders other than Red Vulcan Holdings Corporation, First Gen, Northern Terracotta Power Corp. and PREHC; Red Vulcan Holdings Corporation and Northern Terracotta Power Corp. are wholly-owned subsidiaries of First Gen Corporation. 3. Volume Weighted Average Price 4. EDC can extend the Tender Offer Period with prior approval from SEC, which may result in a delay in the delisting of EDC. 5. EDC reserves the right to waive or otherwise dispense with the condition. 5

6 EDC DELISTING TENDER OFFER EDC S OFFER PRICE MATCHES PREHC S TENDER OFFER PRICE IN 2017, AND WILL ALLOW MINORITY SHAREHOLDERS TO EXIT AND REALIZE THEIR INVESTMENT AT A 46% PREMIUM TO THE MARKET PRICE LAST 07 AUGUST % 40% 33% % - 30% Delisting Offer Price (08 Aug 2018) PREHC Offer Price (03 Aug 2017) Last close (07 Aug 2018) 3-month VWAP 6-month VWAP Value from fairness opinion report 1. Source: Bloomberg as of 07 August 2018; IFA Fairness opinion report. The Bidder has engaged KPMG, an independent financial advisor, to give a fairness opinion on EDC. The IFA was of the opinion that the range of fair value of the listed EDC common shares is from 5.58 per share to 7.18 per share 6

7 EDC DELISTING TENDER OFFER THE TENDER OFFER STRUCTURE ENABLES FIRST GEN TO INCREASE ITS STAKE IN EDC. UPON COMPLETION OF THE DELISTING TENDER OFFER, FIRST GEN WILL EFFECTIVELY OWN BETWEEN 44.4% TO 46.7% OF EDC S COMMON SHARES 95% Private 100% Private FIRST GEN % economic FIRST GEN % economic PREHC 50.6% economic PREHC 53.3% economic Public 5.0% economic Public 0.0% economic Energy Development Corporation FIRST GEN WILL RETAIN MAJORITY VOTING AND MANAGEMENT CONTROL OF EDC POST-DELISTING 1 Represent total common shares held by Red Vulcan Holdings Corporation, First Gen Corporation, and Northern Terracotta Power Corp. 7

8 FIRST GEN AIMS TO GENERATE VALUE FROM THE DELISTING OF EDC Potential re-rating of FGEN after EDC delisting Reduce/eliminate FGEN share price discount from having two listed entities (FGEN and EDC) Reflect fair value of EDC s long-term business Greater flexibility around dividend policy and leverage Ability to reinvest a greater portion of earnings into the business Ability to increase leverage to optimize capital structure and fund future growth Ability to pursue longgestation growth strategy Leverage EDC s geothermal capabilities to expand and diversify the existing portfolio Invest capital in new technologies to improve efficiency and reliability 9.00 PAST INCIDENTS AFFECTING EDC DAMPENED ITS MARKET PRICE DESPITE POSITIVE DEVELOPMENTS Burgos Wind/Solar COD Nasulo COD Bacman retrofit completion Contracted Bacman capacity PREHC Tender Offer TO Price Tongonan retrofit completion Super Typhoon Yolanda Expenses for typhoon-proofing activities Tongonan & Bacman outages Leyte earthquake Typhoon Urduja 8

9 FIRST GEN CORPORATION FINANCIAL RESULTS 1 st Half 2018

10 10 FIRST GEN POSTED HIGHER RECURRING NET INCOME IN BY 35% AT US$115.5 MM DUE TO THE STRONG PERFORMANCE OF THE GAS PLATFORM AND SAVINGS FROM INTEREST EXPENSES RECURRING NET INCOME ATTRIBUTABLE TO PARENT (US$ MM) 1H H % Higher revenues from San Gabriel and Avion Lower interest expenses from deleveraging initiatives Lower earnings from EDC due to typhoon Urduja Lower earnings from Pantabangan-Masiway RNI Contribution per Platform (12) (2) (23) (10) (3) (2) Sta Rita - San Lorenzo San Gabriel Avion EDC Pan-Mas Parent Others 1H H 2018

11 NATURAL GAS SANTA RITA AND SAN LORENZO PLANTS GENERATED HIGHER EBITDA ON THE BACK OF HIGHER NET DEPENDABLE CAPACITIES (NDC) OF THE PLANTS AND LOWER G&A EXPENSES 1,500MW

11 11 NATURAL GAS SANTA RITA AND SAN LORENZO PLANTS GENERATED HIGHER EBITDA ON THE BACK OF HIGHER NET DEPENDABLE CAPACITIES (NDC) OF THE PLANTS AND LOWER G&A EXPENSES 1,500MW SANTA RITA AND SAN LORENZO REVENUES (US$MM) EBITDA (US$MM) % % NET DEPENDABLE CAPACITY (MW) AVE. GAS PRICE (US$/MMBTU) 1,661 +3% % 1,

12 12 NATURAL GAS SAN GABRIEL S REVENUES JUMPED BY 148% AS A RESULT OF HIGHER DISPATCH AND WESM PRICES IN THE FIRST HALF OF THIS YEAR 420MW SAN GABRIEL REVENUES (US$MM) EBITDA (US$MM) % AVE. WESM SELLING PRICE (P/KWH) NET CAPACITY FACTOR (%) % 64% +121% %

13 NATURAL GAS SAN GABRIEL S CONTRACT WITH MERALCO WAS GRANTED INTERIM RELIEF BY THE ENERGY REGULATORY COMMISSSION (ERC) LAST JUNE, WHICH WILL TRANSLATE TO MORE STABLE EARNINGS FOR SG SAN GABRIEL PSA Capacity 414 MW Off-taker Term All-in tariff Benefits Manila Electric Company (Meralco) 6 years until 23 February 2024 (can be extended upon agreement) Php 3.77/kWh** at 87.67% capacity factor (i) competitive dependable baseload capacity; (ii) immediate replacement power during outages of other plants; and (iii) ability to rapidly ramp up and down *Filed for application with the ERC on 13-Mar-18; interim approval accepted on 26 June 2018 based on certain conditions on the PSA **based on a set of assumptions, fuel is a pass-through cost 13

14 14 NATURAL GAS AVION ALMOST DOUBLED ITS REVENUES AS A RESULT OF HIGHER DISPATCH AND WESM PRICES 97MW AVION REVENUES (US$MM) EBITDA (US$MM) % AVE. AVERAGE WESM SELLING PRICE PRICE (PHP/KWH) (P/KWH) NET CAPACITY FACTOR (%) % 24% +46% %

15 HYDRO REVENUES FROM PANTABANGAN-MASIWAY DECREASED BY 7% AS A RESULT OF THE ABSENCE OF ANCILLARY SERVICE SALES IN THE FIRST THREE MONTHS OF 2018 132MW PANTABANGAN-MASIWAY REVENUES EBITDA (US$MM) 22.

15 15 HYDRO REVENUES FROM PANTABANGAN-MASIWAY DECREASED BY 7% AS A RESULT OF THE ABSENCE OF ANCILLARY SERVICE SALES IN THE FIRST THREE MONTHS OF MW PANTABANGAN-MASIWAY REVENUES EBITDA (US$MM) % % VOLUME SOLD (GWH) AVERAGE SELLING PRICE (PHP/KWH) TOTAL : 286 : WTD AVE: : 4.12 : Contracts WESM Ancillary Contracts WESM Ancillary STARTING APRIL 2018, PANTABANGAN RESUMED SELLING ANCILLARY SERVICES AS IT OBTAINED A NEW ANCILLARY SERVICE CONTRACT WITH NGCP

GEOTHERMAL, WIND, SOLAR TYPHOON URDUJA LED TO LOWER REVENUES FROM EDC S LEYTE PLANTS, OFFSETTING HIGHER REVENUES FROM NASULO, BURGOS WIND/SOLAR, BACMAN, AND MINDANAO PLANTS ENERGY DEVELOPMENT CORP.

16 GEOTHERMAL, WIND, SOLAR TYPHOON URDUJA LED TO LOWER REVENUES FROM EDC S LEYTE PLANTS, OFFSETTING HIGHER REVENUES FROM NASULO, BURGOS WIND/SOLAR, BACMAN, AND MINDANAO PLANTS ENERGY DEVELOPMENT CORP. REVENUES EBITDA (US$MM) % % SALES GWh VOLUME Sold (GWH) AVERAGE PRICE (PHP/KWH) 1,688 1, Unified Leyte Pal-Tong Bacman Nasulo Mindanao ULGEI Burgos Wind Solar 1 1 Unified Leyte Pal-Tong Bacman Nasulo Mindanao ULGEI Burgos Wind Solar 1 Represents average generation and price of EDC s Burgos Solar and EDC Siklab Power Corp. (rooftop solar business) 16

17 17 FIRST GEN RECOGNIZED LOWER INTEREST EXPENSE THIS YEAR AS A RESULT OF THE COMPANY S INITIATIVES TO REFINANCE OR PREPAY DEBT CONSO INTEREST EXPENSE (US$MM) CONSOLIDATED DEBT (US$MM) % 2, % ,842.3 INT. EXPENSE BREAKDOWN (US$MM) DEBT BREAKDOWN (US$MM) 1,320 1, SR-SL SG Parent & RV FG Hydro EDC SR-SL SG Parent & RV FG Hydro EDC

18 18 INCLUDING NON-RECURRING ITEMS, NET INCOME ATTRIBUTABLE TO PARENT IN WAS AT US$84.9 MILLION, OR 46% HIGHER THAN LAST YEAR S NET INCOME ATTRIBUTABLE TO PARENT 1H % RNI EDC Insurance Proceeds Forex lossesmovements in DIT Others Net Income 1H RNI SR loan refi costs EDC loan refi cost Forex losses Others Net Income

19 Q&A 19

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