first half 2020 financial...2020/05/08 · water 21% power 54% toll roads 22% others 3% water power...

FIRST HALF 2020 FINANCIAL

RESULTS ANALYSTS’ BRIEFING05 AUGUST 2020

2

1H 2020 CORE INCOME DECLINED BY 38% TO P5.3 BILLIONImpact of economic contraction from quarantine measures

Decrease in Share of Operating Income was driven by

❑ Reduced traffic on toll roads of Metro Pacific Tollways

(MPTC)

❑ Mandated suspension of light rail services from

March 17 to May 31, 2020

❑ Decreased commercial and industrial demand for

Manila Electric Company (MERALCO) and Maynilad

Water Services (Maynilad)

Lower head office expenses driven by reduced

corporate overhead

Interest was held flat because part of the proceeds from

the hospital sell-down were used to pay-off debt.

Weighted average interest rate as at June 30, 2020 is

6.3% and weighted average debt maturity is 7.3 years

Non-core expenses of ₱2.3 billion in 2020 was primarily

due to the provisioning in full of the carrying value of

MERALCO’s investment in Pacific Light Power

CONSOLIDATED FINANCIAL HIGHLIGHTS

In Millions of Pesos 1H 2020 1H 2019 % Change

MPIC share

Power 5,221 6,062 -14%

Toll Roads 915 2,425 -62%

Water 1,809 2,300 -21%

Light Rail (108) 169 -164%

Others (128) 218 -159%

Share of operating income 7,709 11,174 -31%

Head office expenses (432) (539) -20%

Interest expense (1,940) (1,967) -1%

Core income 5,337 8,668 -38%

Non-core expenses (2,310) (560) 313%

Reported income 3,027 8,108 -63%

In Centavos

Diluted EPS on core income 17 27.48 -38%

Dividend per share 3 3.45 -

Water21%

Power 54%

Toll Roads22%

Others3%

Water23%Power

68%

Toll Roads12%

Others-3%

3

EARNINGS CONTRIBUTION MIX

1H 2020 1H 2019

POWER remains to be the largest contributor to earnings. Movement restrictions reduced volumes on our

TOLL ROADS and consequently reduced its contribution.

4

POWER CONTRIBUTION DOWN BY 14% TO P5.2 BILLION

MERALCO – Core Income 14%

❑ 7% decline in energy sales

❑ Higher provisions for doubtful accounts – extended

payment terms increased days sales receivable from

22 days pre-quarantine to 47 as of June 30, bringing

trade receivables to ₱60.3 billion, three times the pre-

quarantine level

In Millions of Pesos

CONTRIBUTION TO MPIC 1H 2020 1H 2019 %

MERALCO (45.5%) 4,814 5,600 -14%

GBPC (62.4%) 709 775 -9%

Beacon/FV and accounting adj. (302) (313) -4%

5,221 6,062 -14%

STAND-ALONE PERFORMANCE 1H 2020 1H 2019 %

Financial Highlights

Revenues 142,254 164,953 -14%

Core EBITDA 15,368 19,879 -23%

Core income 10,588 12,317 -14%


Capital expenditure 6,860 10,708 -36%

Key Performance Indicators

Energy sales (in GWh)

Residential 8,115 7,146 14%

Commercial 7,430 8,951 -17%

Industrial 5,523 6,656 -17%

Streetlights 71 70 1%

Total 21,139 22,823 -7%

MERALCO

3,625 3,803

3,451

2,977 3,330

3,953*

Jan Feb Mar Apr May Jun

MERALCO 2020 ENERGY SALES (In GWh)

* Includes catch-up adjustment on previously estimated volumes

5

GLOBAL BUSINESS POWER CORPORATION – Core

Income 9%



MERALCO (45.5%) 4,814 5,600 -14%

GBPC (62.4%) 709 775 -9%

Beacon/FV and accounting adj. (302) (313) -4%

5,221 6,062 -14%



Revenues 10,768 12,520 -14%

Core EBITDA 4,077 4,592 -11%

Core income 1,136 1,242 -9%

Reported income 1,129 1,130 0%

Capital expenditure 76 557 -86%


Energy sales (in GWh) 2,436 2,306 6%

GLOBAL BUSINESS POWER CORPORATION (GBPC)

GBPC 2020 ENERGY SALES (In GWh)

381

439 417 393 386

420


❑ Revenues declined by 14% despite the 6% increase

in energy sales due to lower pass through fuel

charges reflecting use of lower calorie coal

POWER CONTRIBUTION DOWN BY 14% TO P5.2 BILLION

6

TOLL ROADS CONTRIBUTION DOWN BY 62% TO P915 MILLION

METRO PACIFIC TOLLWAYS CORPORATION –

Core Income 62%

❑ Implementation of various measures (from curfews

to regional lockdowns) to limit movement of people

and vehicles in response to the threat of COVID-19

• Domestic daily vehicle entries averaged

574,100 for the first two months of 2020, an

increase of 14% over the same period last year

but declined to 86,000 a day during ECQ

• Regional average daily vehicle entries declined

29% to 282,145 from 397,258

• 32% decline in average system-wide vehicle

entries to 623,386 from 912,907

❑ Higher interest costs on increased borrowings



Metro Pacific Tollways (99.9%) 921 2,438 -62%

Fair value adjustments (6) (13) -54%

915 2,425 -62%



Revenues 6,146 8,923 -31%

Core EBITDA 3,784 6,258 -40%

Core income 922 2,440 -62%

Reported income 727 2,195 -67%

Capital expenditure 13,714 10,858 26%


Average Daily Vehicle Entries

NLEX 182,928 281,465 -35%

CAVITEX 111,762 163,358 -32%

SCTEX 42,232 70,826 -40%

CALAX 4,319 - 100%

DMT / CII / NUS 282,145 397,258 -29%

METRO PACIFIC TOLLWAYS CORPORATION

7

294 298

155

47

99

210

194 195

105

26

45

109

76 73

37

19

40


NLEX CAVITEX

CALAX SCTEX564 575

301

83

364

165

397 396

302

162 188

249


2020 AVERAGE DAILY TRAFFIC (In Thousands)

REGIONALPHILIPPINES

TOLL ROADS CONTRIBUTION DOWN BY 62% TO P915 MILLION

8

WATER CONTRIBUTION DOWN BY 21% TO P1.8 BILLION

MAYNILAD WATER SERVICES, INC. – Core Income 22%

❑ Slight increase in billed volumes offset by:

• Lower average tariff - Increase in residential demand at

a lower average tariff offset declines in commercial and

industrial segments with the implementation of the

Luzon-wide quarantine

• Higher amortization and depreciation expenses driven

by Maynilad’s heavy investments in Non-Revenue

Water reduction and continuing facilities upgrades

45 45 43 45 45 47


2020 BILLED VOLUMES (In MCM)



Maynilad (52.8%) 1,884 2,428 -22%

Fair value adjustments 1 (102) -101%

Metropac Water Investments Corp. (76) (26) 192%

1,809 2,300 -21%



Revenues 11,416 12,172 -6%

Core EBITDA 8,270 8,825 -6%

Core income 3,569 4,599 -22%




Billed volume (In MCM) 269 268 0%

*Non-revenue water % - average 25.1% 26.7% -6%

*Non-revenue water % - period end 24.9% 24.6% 1%

MAYNILAD WATER SERVICES INC.

*measured at the district metered area level

9

LIGHT RAIL CONTRIBUTION DOWN BY 164% TO A LOSS

OF P108 MILLION



Light Rail Manila (35.8%) (73) 168 -143%

Holding company admin (35) 1 -3600%

(108) 169 -164%

STAND-ALONE 1H 2020 1H 2019 %


Farebox revenues 817 1,579 -48%

Core EBITDA (65) 343 -119%

Core income (loss) (175) 306 -157%

Reported income (loss) (173) 296 -158%



Average daily ridership 325,200 446,571 -27%

LIGHT RAIL MANILA CORPORATION

LIGHT RAIL MANILA CORP. – Core Income 157%

❑ Suspension of operations from March 17 to May 31

❑ Operations resumed on June 1 at a reduced capacity of 13% in

compliance with DOTr guidelines

❑ 27% decline in average daily ridership

Recent Development

❑ On May 28, 2020, Sumitomo Corporation of Japan acquired a

34.9% stake in Metro Pacific Light Rail Corporation, MPIC’s

subsidiary that holds an effective 55% stake in LRMC

444 436

358

78


NO

OPERATIONS

DUE TO

QUARANTINE

2020 AVERAGE DAILY RIDERSHIP (In Thousands)

10

LOGISTICS, HEALTHCARE AND OTHERS



Indra Philippines (25.0%) 22 24 -8%

Metropac Movers Inc. (99.1%) (91) (196) 54%

Metro Pacific Hospitals (20.0%) 9 401 -98%

Others (68) (11) -518%

(128) 218 -159%

METROPAC MOVERS – Lower Core Loss in 1H 2020 driven

by:

❑ Various business rationalization activities (e.g. wind-down of

trucking business)

❑ Major warehouses continued to operate during quarantine

METRO PACIFIC HOSPITALS – 98% reduction in contribution

due to:

❑ Sharp drop in the number of patient admissions and

outpatient census

• 30% decrease in outpatient visits to 1,329,451

• 35% decline in inpatient admissions to 61,293

❑ Significant increases in personnel costs & medical

supplies such as personal protective equipment which are

heavily used to ensure stringent health and safety

protocols for employees, healthcare practitioners and

patients

11

BOOSTING PHILIPPINE INFRASTRUCTURE

COMPLETED TOLL ROAD PROJECTS

❑ First sub-section of the Cavite Laguna Expressway

❑ NLEX Harbor Link Malabon Exit and the section

between new Caloocan Interchange, C3 Road/5th

Avenue and the new Navotas Interchange

❑ NLEX Tambobong Interchange in Bocaue, Bulacan

TOLL ROAD PROJECTS UNDER CONSTRUCTION / DEVELOPMENT

Length

Construction

CostTarget

Completion**

Right-of-way

Progress(In Km) (In P Billions)*

EXPANSIONS TO EXISTING ROADS

NLEX Lane Widening

(Phase 2)

N/A 2.4 2020 N/A

CAVITEX Segment 4

Extension

1.2 1.5 2023 85%

CAVITEX - C5 South Link 7.8 12.6 2022 75%

NLEX Citi Link 11.5 18.8 2024 0%

STAND-ALONE ROAD PROJECTS

NLEX-SLEX Connector

Road

8.0 17.7 2022 Section 1

Caloocan - 81%

Manila - 58%

Section 2

Manila - 74%

Cebu Cordova Link

Expressway

8.5 27.3 2021 100%

Cavite Laguna Expressway 47.2 21.2 2023 Laguna – 90%

Cavite – 40%

TOTAL 84.2 101.5

*Construction Cost (inclusive of FOE, Security and Other Costs)

**Subject to change arising from the Company’s response to Government measures in addressing the

COVID-19 crisis

OTHER PROJECTS UNDER CONSTRUCTION

❑ Maynilad La Mesa Plant Upgrade

❑ LRT-1 South Extension Project

12

MPIC GROUP VOLUME DASHBOARD

3,625 3,803

3,451

2,977

3,330

3,953 **

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MERALCO ENERGY SALES

2019 2020

381

439

417

393 386

420


GLOBAL BUSINESS POWER ENERGY SALESIn GWh

In GWh

45 45

43 45 45

47 46 *


MAYNILAD BILLED VOLUMESIn MCM

444 436 358

78 92 *


LIGHT RAIL MANILAAVERAGE DAILY RIDERSHIP

In Thousands

294 298

155

47 99 210

268 *


North Luzon Expressway

76 73

37 9

19 40 33 *


Subic-Clark-Tarlac Expressway

194 195

105 26 45 109

134 *


Cavite Expressway

AVERAGE DAILY TRAFFICIn Thousands

* Latest available data for July

** Includes catch-up adjustment on previously estimated volumes

13

OUTLOOK

ABLE TO SUSTAIN OPERATIONS AMIDST PANDEMIC

❑ MPIC has sufficient cash at the parent level to sustain operations even in a slow economic recovery

• Proceeds of P30.1 billion from hospital deal with KKR in December 2019 and P3.0 billion from sale of stake

in Light Rail business to Sumitomo in May 2020

❑ Maynilad – assumed to be unable to pay dividends pending the outcome of the Concession Agreement

review

❑ MERALCO and Metro Pacific Tollways – likely to pay lower dividends as a result of quarantine measures

and other consequences of the pandemic

CONSERVATIVE DIVIDEND INCOME EXPECTATIONS

❑ Welfare of our people

❑ Service to our customers

❑ Cash preservation while supporting constructions already in progress

❑ Profitability

CLEAR NEAR-TERM PRIORITIES

14

APPENDIX

Condensed Statements of Income

Statements of Financial Position

Other Business Updates

15

MERALCOCONDENSED STATEMENTS OF INCOME

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019 2Q % 1H%

MERALCO (45.5%) 2,602 2,212 4,814 2,545 3,055 5,600 -28% -14%

GBPC (62.4%) 274 435 709 248 527 775 -17% -9%

Beacon/FV and accounting adj. (6) (296) (302) (103) (210) (313) 41% -4%

CONTRIBUTION TO MPIC 2,870 2,351 5,221 2,690 3,372 6,062 -30% -14%

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019 2Q % 1H%

Electricity 67,911 70,720 138,631 73,632 87,635 161,267 -19% -14%

Non-Electricity 2,118 1,505 3,623 1,746 1,940 3,686 -22% -2%

Total revenues 70,029 72,225 142,254 75,378 89,575 164,953 -19% -14%

Purchased power (51,823) (52,324) (104,147) (58,743) (67,922) (126,665) -23% -18%

Operating expenses (12,069) (15,046) (27,115) (9,777) (13,171) (22,948) 14% 18%

Other income 910 730 1,640 578 284 862 157% 90%

Provision for income tax (1,289) (698) (1,987) (1,805) (2,011) (3,816) -65% -48%

Non-controlling interests (34) (23) (57) (33) (36) (69) -36% -17%

Core income 5,724 4,864 10,588 5,598 6,719 12,317 -28% -14%

Non-core income (expense) (3,105) (639) (3,744) 73 (383) (310) 67% 1108%

Reported net income 2,619 4,225 6,844 5,671 6,336 12,007 -33% -43%

Core EBITDA Computation:

Core income 5,724 4,864 10,588 5,598 6,719 12,317 -28% -14%

Depreciation and amortization 2,080 1,965 4,045 1,878 2,479 4,357 -21% -7%

Interest income -net (374) (193) (567) (550) (375) (925) -49% -39%

Provision for income tax 1,289 698 1,987 1,805 2,011 3,816 -65% -48%

Others (311) (374) (685) 97 217 314 -272% -318%

Core EBITDA 8,408 6,960 15,368 8,828 11,051 19,879 -37% -23%

16

MERALCOKEY PERFORMANCE INDICATORS

1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019

Number of customer accounts 6.93M 6.94M 6.94M 6.68M 6.74M 6.74M

Capital expenditure (in P MM) 4,152 2,708 6,860 4,339 6,369 10,708

Energy sales

Residential 3,336 4,749 8,115 3,010 4,136 7,146

Commercial 4,343 3,087 7,430 4,124 4,827 8,951

Industrial 3,135 2,388 5,523 3,212 3,444 6,656

Streetlights 35 36 71 35 35 70

Total (in GWh) 10,879 10,260 21,139 10,381 12,442 22,823

17

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019 2Q% 1H%

Power billings 5,535 5,205 10,740 5,740 6,704 12,444 -22% -14%

Coal sales & others 18 10 28 34 42 76 -76% -63%

Total revenues 5,553 5,215 10,768 5,774 6,746 12,520 -23% -14%

Power plant costs (2,516) (2,187) (4,703) (2,931) (3,266) (6,197) -33% -24%

Operating expenses (1,725) (2,040) (3,765) (1,521) (1,660) (3,181) 23% 18%

Interest expense - net (551) (535) (1,086) (545) (533) (1,078) 0% 1%

Other income 8 288 296 14 22 36 1209% 722%

Share in earnings of associates 130 358 488 62 94 156 281% 213%

Provision for income tax (246) (211) (457) (253) (269) (522) -22% -12%

Non-controlling interests (214) (191) (405) (202) (290) (492) -34% -18%

Core income 439 697 1,136 398 844 1,242 -17% -9%

Non-core income (expense) 1 (8) (7) (106) (6) (112) 33% -94%

Reported net income 440 689 1,129 292 838 1,130 -18% 0%


Core income 439 697 1,136 398 844 1,242 -17% -9%

Depreciation and amortization 741 740 1,481 707 707 1,414 5% 5%

Interest expense - net 551 535 1,086 545 533 1,078 0% 1%

Provision for income tax 246 211 457 253 269 522 -22% -12%

Non-controlling interests 214 191 405 202 290 492 -34% -18%

Others (130) (358) (488) (62) (94) (156) 281% 213%

Core EBITDA 2,061 2,016 4,077 2,043 2,549 4,592 -21% -11%

GLOBAL BUSINESS POWER CORPORATIONCONDENSED STATEMENTS OF INCOME

18

1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019

Capital expenditure (in P MM) 47 29 76 71 486 557

Energy sales

Bilateral 948 900 1,848 854 939 1,793

WESM 78 94 172 105 193 298

NGCP 210 206 416 102 113 215

Total (in GWh) 1,236 1,200 2,436 1,061 1,245 2,306

GLOBAL BUSINESS POWER CORPORATIONKEY PERFORMANCE INDICATORS

19

POWER EXPANSION UPDATES

1x500MW (gross) San Buenaventura Power, Quezon

❑ Started commercial operations on September 26, 2019

❑ First operational supercritical coal power plant in the Philippines

❑ Joint venture of MGen with New Growth, B.V., a wholly owned subsidiary of Electricity Generating Public Company Limited of

Thailand

2x600MW (net) Atimonan One Energy, Quezon

❑ Awaiting final terms of reference and will participate in MERALCO’s Competitive Selection Process

❑ Site operation activities gradually resumed early June 2020. More stringent health and safety protocols were put in place to

protect construction workers from COVID-19

50MWac PowerSource First Bulacan Solar San Miguel, Bulacan

❑ Signed EPC contract with SUMEC Complete Equipment & Engineering Co. Ltd. in October 2019

❑ Target commercial operations still within 2020 despite expected delays due to quarantine-driven suspension of construction

activities

❑ Overall progress as of July 13, 2020 stands at 52.73%

20

POWER EXPANSION UPDATES

ENERGY FROM WASTE

Quezon City Waste to Energy Project (P15.3 billion project cost for Phase 1)

❑ Aims to convert approximately 3,000 tons of waste of 36MW (net) of energy

❑ Awaiting issuance of Notice of Award from the Quezon City local government units (LGU)

❑ Waste study completed and expected to be presented to the LGU once the quarantine is lifted

❑ Secured Environmental Compliance Certificate from the DENR-EMB in April 2020

Biogas – Dole Project (P1.0 billion project cost)

❑ Aims to derive biogas from the anaerobic digestion of fruit waste from Dole’s canneries in

South Cotabato

❑ Target to generate 5.7MW of clean energy for Dole and contribute to reduction of CO2

emission by 100,000 tons/year

❑ Approved as a Joint Crediting Mechanism Model Project for carbon reduction and subsidy

by the Ministry of Environment, Japan

❑ Target completion of facilities in 2021

21


Stand-alone Core Income 924 (2) 922 1,121 1,319 2,440 -100% -62%

MPTC (99.9%) 923 (2) 921 1,120 1,318 2,438 -100% -62%

Fair Value Adjustments (5) (1) (6) (7) (6) (13) -83% -54%

Contribution to MPIC 918 (3) 915 1,113 1,312 2,425 -100% -62%


Net toll revenues 4,222 1,924 6,146 4,243 4,680 8,923 -59% -31%

Cost of services (1,614) (1,053) (2,667) (1,602) (1,744) (3,346) -40% -20%

Gross profit 2,608 871 3,479 2,641 2,936 5,577 -70% -38%

Operating expenses (618) (437) (1,055) (660) (533) (1,193) -18% -12%

Other income and expense - net 250 384 634 305 356 661 8% -4%

Share in earnings of associates 129 (7) 122 130 202 332 -103% -63%

Interest expense - net (593) (595) (1,188) (438) (542) (980) 10% 21%

Provision for income tax (503) (129) (632) (418) (643) (1,061) -80% -40%

Non-controlling interest (349) (89) (438) (439) (457) (896) -81% -51%

Core income 924 (2) 922 1,121 1,319 2,440 -100% -62%

Non-core expense (70) (125) (195) (93) (152) (245) -18% -20%

Reported net income 854 (127) 727 1,028 1,167 2,195 -111% -67%


Core income 924 (2) 922 1,121 1,319 2,440 -100% -62%

Depreciation, amortization & others 490 236 726 580 633 1,213 -63% -40%

Interest expense - net 593 595 1,188 438 542 980 10% 21%

Provision for income tax 503 129 632 418 643 1,061 -80% -40%

Non-controlling interest 349 89 438 439 457 896 -81% -51%

Others (129) 7 (122) (130) (202) (332) -103% -63%

Core EBITDA 2,730 1,054 3,784 2,866 3,392 6,258 -69% -40%

METRO PACIFIC TOLLWAYS CORPORATIONCONDENSED STATEMENTS OF INCOME

1Q 2020 2Q 2020 1H 2020

Average Daily Vehicle Entries (Open & Closed)

Class 1 192,007 85,071 138,539

Class 2 32,334 16,543 24,439

Class 3 23,339 16,561 19,950

Total 247,680 118,176 182,928

Average Daily Vehicle Entries (Open)

Class 1 136,241 60,088 98,165

Class 2 25,831 13,290 19,561

Class 3 16,348 11,704 14,026

Total 178,420 85,083 131,751

Average Daily Kilometers Travelled (In 000 km)

Class 1 3,408 1,312 2,360

Class 2 654 300 477

Class 3 488 338 413

Total 4,550 1,951 3,250

22

1Q 2019 2Q 2019 1H 2019

215,174 223,061 219,139

36,919 36,878 36,899

25,880 24,979 25,427

277,973 284,918 281,465

153,503 159,803 156,670

29,521 29,380 29,450

18,564 17,760 18,160

201,588 206,943 204,280

3,901 4,209 4,056

769 774 771

534 500 517

5,205 5,483 5,345

METRO PACIFIC TOLLWAYS CORPORATIONKEY PERFORMANCE INDICATORS

NORTH LUZON EXPRESSWAY

Class 1 Tariff: Open system - P48.2/entry / Closed system - P2.8/km

23


CAVITE EXPRESSWAY

Class 1 Tariff/entry: R1 - P22.7 (2020) / P21.8 (2019); R1 extension - P58.5;C5 South Link: Tariff/entry: P19.6

1Q 2020 2Q 2020 1H 2020


Class 1 146,320 52,169 99,244

Class 2 11,190 3,870 7,530

Class 3 6,288 3,688 4,988

Total 163,798 59,727 111,762

1Q 2019 2Q 2019 1H 2019

144,563 148,939 146,763

10,239 10,283 10,261

6,471 6,199 6,334

161,272 165,421 163,358

SUBIC CLARK TARLAC EXPRESSWAY

Class 1 Tariff: P3.2/km (2020) / P2.7/km (2019)

1Q 2020 2Q 2020 1H 2020


Class 1 49,961 16,340 33,150

Class 2 6,602 2,723 4,663

Class 3 5,239 3,600 4,419

Total 61,802 22,662 42,232

1Q 2019 2Q 2019 1H 2019

56,087 60,210 58,160

7,523 7,694 7,609

5,194 4,920 5,056

68,805 72,825 70,826

24


CAVITE LAGUNA EXPRESSWAY

Class 1 Tariff: P4.5/km

1Q 2020 2Q 2020 1H 2020


Class 1 6,419 2,949 4,180

Class 2 104 68 81

Class 3 57 58 58

Total 6,580 3,076 4,319

1Q 2019 2Q 2019 1H 2019

- - -

- - -

- - -

- - -

1Q 2020 2Q 2020 1H 2020

Capital Expenditure (in P MM) 8,812 4,902 13,714

1Q 2019 2Q 2019 1H 2019

4,176 6,682 10,858

25

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H2019 2Q% 1H%

Stand-alone Core Income 1,607 1,962 3,569 1,821 2,778 4,599 -29% -22%

Maynilad (52.8%) 849 1,035 1,884 961 1,467 2,428 -29% -22%

Fair Value Adjustments - 1 1 (49) (53) (102) -102% -101%

Metropac Water Investments 10 (86) (76) (10) (16) (26) 438% 192%

Contribution to MPIC 859 950 1,809 902 1,398 2,300 -32% -21%

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H2019 2Q% 1H%

Revenues 5,712 5,704 11,416 5,686 6,486 12,172 -12% -6%

Cost of services (1,734) (1,761) (3,495) (1,587) (1,726) (3,313) 2% 5%

Gross profit 3,978 3,943 7,921 4,099 4,760 8,859 -17% -11%

Operating expenses (1,038) (740) (1,778) (1,024) (701) (1,725) 6% 3%

Other income and expense - net (176) 112 (64) (147) 69 (78) 62% -18%

Interest expense - net (488) (664) (1,152) (357) (416) (773) 60% 49%

Provision for income tax (669) (689) (1,358) (750) (934) (1,684) -26% -19%

Core income 1,607 1,962 3,569 1,821 2,778 4,599 -29% -22%

Non-core income (expense) 10 (69) (59) (2) (40) (42) 73% 40%

Reported Net Income 1,617 1,893 3,510 1,819 2,738 4,557 -31% -23%

-


Core income 1,607 1,962 3,569 1,821 2,778 4,599 -29% -22%

Depreciation and amortization 1,024 1,167 2,191 869 900 1,769 30% 24%

Interest expense - net 488 664 1,152 357 416 773 60% 49%

Provision for income tax 669 689 1,358 750 934 1,684 -26% -19%

Core EBITDA 3,788 4,482 8,270 3,797 5,028 8,825 -11% -6%

MAYNILAD WATER SERVICESCONDENSED STATEMENTS OF INCOME

26

1Q 2020 2Q 2020 1H 2020

NRW*

Average 24.7% 25.6% 25.1%

Service Levels**

24hr availability 63.1% 85.8% 86%

Minimum 16 psi 21.4% 32.5% 32%

Customer Mix (Billed Volume)

Domestic 80.7% 86.3% 83.6%

Non-Domestic / Cross Border 19.3% 13.7% 16.4%

Capital Expenditure (in P MM) 2,408 2,870 5,278

1Q 2019 2Q 2019 1H 2019

27.9% 25.6% 26.7%

98.1% 74.7% 75%

66.4% 26.3% 26%

80.0% 79.8% 79.9%

20.0% 20.2% 20.1%

2,401 3,004 5,405

*Measured at the district metered area level

**Indicative KPIs for 1H2020. KPIs are still being finalized

MAYNILAD WATER SERVICESKEY PERFORMANCE INDICATORS

27

Industrial

Water

Municipal Water

In Aggregate Bulk Distribution Total

Max. Potential Volume (mld) 660 305 297 1,262

Installed Capacity (mld) 335 174 142 651

Billed Volume (mld) 124 169 67 360

Regulated Tariff? No No Yes

Demand Risk? Yes Mixed No

In Aggregate Philippines Vietnam Total

Max. Potential Volume (mld) 602 660 1,262

Installed Capacity (mld) 316 335 651

OVERVIEW OF EXISTING PORTFOLIOMetro Pacific Iloilo Water Inc. (Project Cost of ₱12.3 billion

over 30 years)

• Joint venture agreement for the rehabilitation, operation,

maintenance, and expansion of the existing water distribution

system and the development of water and wastewater facilities in

Iloilo City

• Operations commenced last July 2019

Metro Pacific Dumaguete Water Services Inc. (Project Cost of

₱1.6 billion over 25 years)

• Joint venture agreement for the rehabilitation, operation,

maintenance, and expansion of the existing water distribution

system and the development of water and wastewater facilities

signed on September 3, 2019

• Operations are expected to commence within 2020

Phu Ninh Water

• Started supplying water in July 2019

• Increased ownership in Phu Ninh to 52.5% on September 5, 2019

and to 56.1% on April 6, 2020 EXPANSION

▪ Organic growth potential – 291 mld

▪ Investment growth potential – 611 mld

METRO PACIFIC WATER UPDATES

28

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019 2Q % 1H %

Stand-alone Core Income 180 (355) (175) 223 83 306 -528% -157%

LRMC (35.8%) 99 (172) (73) 123 45 168 -482% -143%

Holding company admin (37) 2 (35) - 1 1 100% 100%

MPIC Share 62 (170) (108) 123 46 169 -470% -164%

In Millions of Pesos 1Q 2020 2Q 2020 1H 2020 1Q 2019 2Q 2019 1H 2019 2Q % 1H %

Rail revenues 708 109 817 832 747 1,579 -85% -48%

Cost of services (359) (303) (662) (477) (527) (1,004) -43% -34%

Gross profit 349 (194) 155 355 220 575 -188% -73%

Operating expenses (163) (167) (330) (175) (189) (364) -12% -9%

Other income and expense - net 33 16 49 34 40 74 -60% -34%

Interest income (expense) - net 6 (7) (1) 47 40 87 -118% -101%

Provision for income tax (45) (3) (48) (38) (28) (66) -89% -27%

Core income (loss) 180 (355) (175) 223 83 306 -528% -157%

Non-core income (expense) 5 (3) 2 (5) (5) (10) -40% -120%

Reported net income (loss) 185 (358) (173) 218 78 296 -559% -158%


Core income (loss) 180 (355) (175) 223 83 306 -528% -157%

Depreciation and amortization 30 31 61 25 33 58 -6% 5%

Interest (income) expense - net (6) 7 1 (47) (40) (87) -118% -101%

Provision for income tax 45 3 48 38 28 66 -89% -27%

Core EBITDA 249 (314) (65) 239 104 343 -402% -119%

LIGHT RAIL MANILA CORPORATIONCONDENSED STATEMENTS OF INCOME

29

1Q 2020 2Q 2020 1H 2020

Average Daily Ridership 422,703 78,190 325,200

Capital Expenditure (in P MM) 2,171 529 2,700

1Q 2019 2Q 2019 1H 2019

463,758 428,791 446,571

1,192 2,787 3,979

LIGHT RAIL MANILA CORPORATIONKEY PERFORMANCE INDICATORS

30

STATEMENTS OF FINANCIAL POSITION – CONSOLIDATED (Unaudited)

BALANCE SHEET BALANCE SHEET (continued)

In PhP Millions June 2020 Dec 2019 In PhP Millions June 2020 Dec 2019

ASSETS NONCURRENT LIABILITIES

CURRENT ASSETS Noncurrent portion of concession fees payable

Cash and cash equivalents and short term

deposits 65,935 74,697

long-term debt and others

258,929 263,068

Receivables 18,236 14,624 Due to related parties - 2,240

Other current assets 15,008 15,916 Deferred tax liabilities 14,231 14,170

Total Current Assets 99,179 105,237 Other noncurrent liabilities 12,011 11,137

Total Noncurrent Liabilities 285,171 290,615

NONCURRENT ASSETS

Investments and advances 166,280 169,092 Total Liabilities 371,553 365,733

Service concession assets 260,383 240,489

Property and equipment 57,559 58,591 EQUITY

Goodwill 15,624 15,676 Capital stock 31,661 31,661

Other noncurrent assets 21,779 22,693 Additional paid-in capital 68,638 68,638

Total Noncurrent Assets 521,625 506,541 Treasury shares (708) (4)

Other equity adjustments and reserves (1,521) 17

TOTAL ASSETS 620,804 611,778 Retained earnings 91,276 90,650

Total equity attributable to owners of Parent 189,346 190,962

LIABILITIES AND EQUITY Non-controlling interest 59,905 55,083

CURRENT LIABILITIES Total Equity 249,251 246,045

Accounts payable and other current liabilities 40,621 38,002

Due to related parties 2,416 5,638 TOTAL LIABILITIES AND EQUITY 620,804 611,778

Current portion of concession fees payable,

long-term debt and others 43,345 31,478

Total Current Liabilities 86,382 75,118

As of As of

31

FINANCIAL POSITION HIGHLIGHTSSTAND-ALONE COMPANIES (Unaudited)

In PhP Millions

GROSS

DEBT

GROSS

CASH

TOTAL

ASSETS

TOTAL

EQUITY

GROSS

DEBT

GROSS

CASH

TOTAL

ASSETS

TOTAL

EQUITY

MPIC PARENT(a) 79,980 27,458 234,958 140,427 85,197 38,155 246,011 139,049

MANILA ELECTRIC COMPANY 40,900 27,580 378,720 79,621 41,253 38,262 357,019 85,241

METRO PACIFIC TOLLWAYS CORPORATION 78,744 15,078 176,646 57,591 67,813 11,248 162,427 54,732

MAYNILAD WATER SERVICES 40,474 9,866 126,125 53,975 41,082 11,410 119,803 50,483

LIGHT RAIL MANILA CORPORATION 15,733 2,038 34,209 13,546 11,779 1,628 30,382 12,973

AS OF JUNE 2020 AS OF DECEMBER 2019

Note:

(a) Gross debt excludes payable to PCEV

32

CAUTIONARY STATEMENTS

This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or

used without the prior written consent of Metro Pacific Investments Corporation (the “Company”).

This presentation, as well as discussions arising therefrom, may contain statements relating to future expectations and/or projections of the Company by its

management team, with respect to the Company and its portfolio companies. These statements are generally identified by forward-looking words such as

“believe,” “plan,” “anticipate,” “continue,””estimate,” “expect,” “may,” “will,” or other similar words. These statements are: (i) presented on the basis of current

assumptions which the company’s management team believes to be reasonable and presumed correct based on available data at the time these were made, (ii)

based on assumptions regarding the Company’s present and future business strategies, and the environment in which it will operate in the future, (iii) a reflection

of our current views with respect to future events and not a guarantee of future performance, and (iv) subject to certain factors which may cause some or all of

the assumptions not to occur or cause actual results to diverge significantly from those projected. Any and all forward looking statements made by the Company

or any persons acting on its behalf are deemed qualified in their entirety by these cautionary statements.

This presentation is solely for informational purposes and should in no way be construed as a solicitation or an offer to buy or sell securities or related financial

instruments of the Company and/ or any of its subsidiaries and/or affiliates.

ABOUT MPIC

Metro Pacific Investments Corporation (PSE:MPI) is a Philippine-based, publicly listed investment and management company, focused on infrastructure, with holdings in

Manila Electric Company, Maynilad Water Services, Inc., MetroPac Water Investments Corporation, Metro Pacific Tollways Corporation, Metro Pacific Hospital Holdings Inc.,

Light Rail Manila Corporation, and MetroPac Movers Inc..

HEADQUARTERS INVESTOR RELATIONS ([email protected])

10/F MGO Building, Legazpi corner Dela Rosa Streets, Head, Investor Relations – Maricris C. Aldover - Ysmael ([email protected])

Legazpi Village, Makati 0721 Philippines IR Manager – Owen Kieffer D. Ocampo ([email protected])

Phone: (+632) 8888-0888 / Facsimile: (+632) 8888-0813 IR Senior Specialist – Jana Lyra M. Manlangit ([email protected])

Official Website: www.mpic.com.ph

mailto:[email protected]



http://www.mpic.com.ph/

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