ANALYSTS BRIEFING 26 6 Febr brua uary 2020 2020 1 1 TABLE OF - - PowerPoint PPT Presentation

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FULL FULL YEAR YEAR 2019 2019 FIN FINANCIA ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING

26 6 Febr brua uary 2020 2020

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TABLE OF CONTENTS

Consolidated Financial Highlights Page 3 POWER Financial Highlights 4 TOLL ROADS Financial Highlights 5 Expansion Updates 6 WATER Financial Highlights 7 HOSPITALS Financial Highlights 8 LIGHT RAIL, LOGISTICS AND OTHERS Financial Highlights 9 Stand-alone Portfolio Company Results and Key Metrics Page 10 POWER MERALCO FY 2019 Highlights and Key Metrics 11 GBPC FY 2019 Highlights and Key Metrics 12 Expansion Updates 13 TOLL ROADS MPTC FY 2019 Highlights 14 Key Metrics and Priorities 15 Regulatory Matters 16 WATER Maynilad FY 2019 Highlights and Key Metrics 18 MetroPac Water Investments 19 Regulatory Matters 20 HOSPITALS MPHHI FY 2019 Highlights and Key Metrics 21 LIGHT RAIL LRMC FY 2019 Highlights and Key Metrics 22 Quarterly Highlights 23 Statements of Financial Position 26

3 3

Water 19% Power 55% Toll Roads 23% Hospitals and Others 3%

7% increase in Operating Income was driven by:  Substantial Core Income growth from Manila Electric Company (MERALCO)  Continued traffic growth and tariff adjustments on domestic toll roads of Metro Pacific Tollways (MPTC)  Strong patient numbers at Metro Pacific Hospitals (MPHHI) Increase in interest expense is due to loan drawdowns amounting to ₱20.0 billion (proceeds were used to fund various investments of the group). Weighted average interest rate as at 31 December 2019 is 6.35% and weighted average debt maturity is 7.6 years Increase in Non-Core Income is a result of the ₱30.1 billion Hospital deal with KKR & Co. which was completed in December 2019 CONSOLIDATED FINANCIAL HIGHLIGHTS EARNINGS CONTRIBUTION MIX In Millions of Pesos 2019 2018 % Change MPIC share Power 11,571 10,823 7% Toll Roads 5,236 4,423 18% Water 3,569 3,794

• 6%

Hospitals 867 771 12% Light Rail 319 394

• 19%

Others (671) (642) 5% Share of operating income 20,891 19,563 7% Head office expenses (1,164) (1,133) 3% Interest expense (4,125) (3,370) 22% Core income 15,602 15,060 4% Non-core income (expense) 8,254 (930)

• 988%

Reported income 23,856 14,130 69% In Centavos Diluted EPS on core income 49.44 47.71 4% Dividend per share 7.60 7.60 0%

2019 2018

FY2 FY201 019 9 CORE CORE INCOME INCOME UP UP 4% T 4% TO O P15 15.6B .6B

Core Net Income Caps Decade of Uninterrupted Earnings Growth

Water 17% Power 55% Toll Roads 25% Hospitals and Others 3%

4 4

PO POWER WER CONTRIB CONTRIBUT UTION ION UP BY UP BY 7% % TO O P11 11.6B .6B

Driv riven en by by str trong r

• ng res

esults ults at M t MERAL RALCO CO

7% increase in contribution from the Power business was driven by: MERALCO  6% growth in energy sales  Lower borrowing costs on lower outstanding debt and higher investment returns GLOBAL BUSINESS POWER CORPORATION  Higher margins on increased WESM prices and ancillary service agreements  Increase in contribution from Alsons Thermal Energy Corporation Offset by:  Decline in Revenues due to the end of various power supply agreements  Rising depreciation and interest expenses from Panay Energy Development Corporation’s 150 MW plant from 1 June 2018

In Millions of Pesos CONTRIBUTION TO MPIC 2019 2018 % MERALCO (45.5%) 10,835 10,188 6% GBPC (62.4%) 1,699 1,533 11% Beacon/FV and accounting adj. (963) (898) 7% 11,571 10,823 7% STAND-ALONE PERFORMANCE 2019 2018 % Financial Highlights Revenues 318,315 304,454 5% Core EBITDA 38,026 37,165 2% Core income 23,832 22,408 6% Reported income 23,285 23,017 1% Capital expenditure 20,233 13,669 48% Key Performance Indicators Energy sales (in GWh) 46,871 44,313 6% Financial Highlights Revenues 24,223 26,822

• 10%

Core EBITDA 9,871 9,159 8% Core income 2,725 2,458 11% Reported income 2,628 2,431 8% Capital expenditure 708 514 38% Key Performance Indicators Energy sales (in GWh) 4,818 4,822 0% MERALCO GLOBAL BUSINESS POWER CORPORATION (GBPC)

GE

5 5

18% increase in contribution from the Toll Roads business was driven by:  Strong traffic growth on all domestic roads

• Exceptional traffic growth from CAVITEX at 24% due to

the opening of C5 South link in July 2019 and CAVITEX R1 Enhancement  Implemented toll rate increases

• NLEX (Open System: 20%; Closed System: 7%) - March

2019

• SCTEX (19%) - June 2019
• CAVITEX (4%) - October 2019

 Consolidation of Nusantara (starting July 2018)

TOL OLL R ROADS ADS CON CONTRIB TRIBUT UTION ION UP UP BY BY 18% T % TO O P5.2 .2B B

Continued tr Continued traf affic ic growth in th in Philippine hilippine toll toll roads

• ads and toll

and toll rate incr te increas eases es

In Millions of Pesos CONTRIBUTION TO MPIC

2019 2018 %

Metro Pacific Tollways (99.9%)

5,258 4,443 18%

Fair value adjustments

(22) (20) 10%

5,236 4,423

18%

STAND-ALONE PERFORMANCE

2019 2018 %

Financial Highlights Revenues

18,503 15,486 19%

Core EBITDA

13,267 10,474 27%

Core income

5,265 4,450 18%

Reported income

4,926 4,274 15%

Capital expenditure

26,172 11,795 122%

Key Performance Indicators Average Daily Vehicle Entries NLEX

283,296 265,530 7%

CAVITEX

181,656 146,315 24%

SCTEX

70,551 62,684 13%

DMT / CII / NUS

412,205 438,572

• 6%

METRO PACIFIC TOLLWAYS CORPORATION

6 6

TOLL OLL R ROADS ADS EXP EXPANSION ANSION UPD UPDATE TES S PHILIPP PHILIPPINES INES

PROJECTS UNDER CONSTRUCTION / DEVELOPMENT PROJECTS Length Construction Cost Target Completion Right-of-way Progress Status (In Km) (In P Billions) EXPANSIONS TO EXISTING ROADS NLEX Harbour Link (Radial Road 10) 2.60 6.70 2020 94% Partially opened; Ongoing construction NLEX Lane Widening (Phase 2) N/A 1.60 2020 N/A Ongoing construction of Segment 7 (part of NLEX Lane Widening) CAVITEX Segment 4 Extension 1.23 1.52 2022 85% Ongoing ROW acquisition CAVITEX - C5 South Link 7.70 12.65 2022 73%

• Seg. 3A-1 - Opened in July 2019

NLEX Citi Link 11.50 18.80 2024 0% Ongoing ROW acquisition NEW ROAD PROJECTS NLEX-SLEX Connector Road 8.00 23.30 2021 Section 1 (Caloocan) - 78%; (Manila) - 58%; Section 2 - 74% Ongoing pre-construction works and ROW acquisition Cebu Cordova Link Expressway 8.50 26.60 2021 100% Ongoing construction Cavite Laguna Expressway 44.67 14.10 2022 54% Partially opened; Ongoing construction and ROW acquisition TOTAL 84.20 105.27 NLEX Harbour Link (Radial Road 10)

• Partially opened in February 2020; full completion by March 2020

C5 South Link Segment 3A-1 (2.2 km)

• Began operations in July 2019

Cavite Laguna Expressway (10.7 km)

• Mamplasan Road to Sta. Rosa-Tagaytay road (subsections 6 – 8) began operations in

February 2020 COMPLETED PROJECTS

7 7

In Millions of Pesos CONTRIBUTION TO MPIC 2019 2018 % Maynilad (52.8%) 4,078 4,082

0%

Fair value adjustments (219) (198)

11%

Metropac Water Investments Corp. (290) (90)

222%

3,569 3,794

• 6%

STAND-ALONE PERFORMANCE 2019 2018 % Financial Highlights Revenues 23,992

22,024

9% Core EBITDA 16,294

15,454

5% Core income 7,723

7,731

0% Reported income 7,316

7,368

• 1%

Capital expenditure 12,380

11,944

4% Key Performance Indicators Billed volume (In MCM) 535 527 2% *Non-revenue water % - average 26.4% 29.8%

• 11%

*Non-revenue water % - period end 25.3% 27.1%

• 6%

MAYNILAD WATER SERVICES INC.

6% decline in contribution from the Water business was due to: METRO PACIFIC WATER  Higher financing costs  Higher concession asset amortization expense from regional projects MAYNILAD WATER SERVICES, INC.  2% volume growth  Implemented tariff increases

• Inflation-linked: 5.7% in January 2019
• Basic: 2.7% in October 2018

Offset by:  Higher amortization and depreciation expense driven by investments in Non-Revenue Water Reduction Program and continuing facilities upgrades

*Measured at the District Metered Area level

WA WATE TER R CONTRIB CONTRIBUT UTION ION DO DOWN WN BY BY 6% T % TO O P3.6B 3.6B

Volume

• lume growth and tarif

th and tariff incr increas eases es at M t May aynilad nilad of

• ffset by

et by cos costs ts a at t Metr etroP

• Pac

ac Water ter

8 8

In Millions of Pesos CONTRIBUTION TO MPIC 2019 2018 % Metro Pacific Hospital Holdings 999 893 12% Hospital admin and fair value adjustments (132) (122) 8% 867 771 12% STAND-ALONE PERFORMANCE 2019 2018 % Financial Highlights Revenues 28,802 25,655 12% Core EBITDA 6,506 5,559 17% Core income 2,685 2,357 14% Reported income 2,683 2,363 14% Capital expenditure 4,040 3,755 8% Key Performance Indicators Total beds available 3,235 3,200 1% Average standard occupancy rate 71.5% 67.9% 5%

• No. of in-patients

201 194 4%

• No. of out-patients

3,687 3,323 11%

HOSPITALS (AGGREGATE)

HO HOSP SPIT ITAL ALS S CON CONTRI TRIBUTI UTION ON UP UP BY BY 12% % TO O P867M M

Robus

• bust

t growth th in in pa patient number tient numbers

12% increase in contribution from the Hospital business was a function of:  Higher patient census across hospitals driven by high impact cases and new services offered  Price adjustments in some hospitals

9 9

LIGHT RAIL 19% decline in contribution from the Light Rail business was a function of:  Slight decline in ridership due to shortened

• perating hours

 Higher repairs and maintenance costs due to scheduled preventive maintenance

In Millions of Pesos LIGHT RAIL CONTRIBUTION TO MPIC 2019 2018 % Light Rail Manila (55.0%) 355 394

• 10%

Holding company admin (36)

• 100%

319 394

• 19%

STAND-ALONE PERFORMANCE 2019 2018 % Financial Highlights Farebox revenues 3,287 3,310

• 1%

Core EBITDA 744 988

• 25%

Core income 645 716

• 10%

Reported income 629 645

• 2%

Capital expenditure 8,434 6,639 27% Key Performance Indicators Average daily ridership 446,943 458,021

• 2%

OTHERS CONTRIBUTION TO MPIC 2019 2018 % Indra Philippines (25.0%) 53 51 4% Metropac Movers Inc. (99.9%) (670) (627) 7% Others (54) (66)

• 18%

(671) (642) 5% LIGHT RAIL MANILA CORPORATION

LIGH LIGHT T RAIL, RAIL, LOGIST OGISTICS ICS AND AND OTHE THERS RS

Expans xpansion and r ion and reha ehabilita bilitation tion to ca to cater to ter to growing demand ing demand

LOGISTICS  17% growth in Revenues due to short-term election-related contracts Offset by:  Lower utilization of trucks  Higher depreciation and financing costs

10 10

ST STAND AND-AL ALON ONE E POR PORTFOLIO TFOLIO COMP COMPAN ANY Y RES RESUL ULTS TS AND AND KEY KEY ME METRI TRICS CS

11 11 11

ME MERAL RALCO CO FY2 FY201 019 9 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY MET METRICS RICS

5% Increase in Electricity Revenues was a function of:  6% growth in total energy sales from 44,313 GWh to 46,871 GWh (6.0% ↑ commercial, 8.0% ↑ residential, and 4% ↑ industrial sector)  6% growth in distribution revenues due to increase in volume sold

In Millions of Pesos 2019 2018 % MERALCO (45.5%) 10,835 10,188 6% GBPC (62.4%) 1,699 1,533 11% Beacon/FV and accounting adj. (963) (898) 7% 11,571 10,823 7% In Millions of Pesos 2019 2018 % Electricity 310,098 295,389 5% Non-Electricity 8,217 9,065

• 9%

Total revenues 318,315 304,454 5% Purchased power (241,032) (232,102) 4% Operating expenses (46,044) (43,772) 5% Other income 1,457 1,233 18% Provision for income tax (8,777) (7,320) 20% Non-controlling interests (87) (85) 2% Core income 23,832 22,408 6% Non-core income (expense) (547) 609

• 190%

Reported net income 23,285 23,017 1% Core EBITDA Computation: Core income 23,832 22,408 6% Depreciation and amortization 8,730 7,827 12% Interest income -net (1,598) (798) 100% Provision for income tax 7,024 7,193

• 2%

Others 38 535

• 93%

Core EBITDA 38,026 37,165 2%

KEY METRICS 2019 2018 Number of customer accounts 6.88M 6.62M Capital Expenditure (in Millions of Pesos) 20,233 13,669 Energy Sales Residential 14,589 13,555 Commercial 18,483 17,463 Industrial 13,659 13,156 Streetlights 140 139 Total (in GWh) 46,871 44,313

12 12 12

GBPC GBPC FY2 FY201 019 9 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY ME METRI TRICS CS

Revenues declined due to end of various short-term power supply agreements Non-core expense in FY2019 largely relates to tax payments for a liquidated entity Contribution from Alsons Thermal Energy Corporation increased by 47% to ₱366 million

In Millions of Pesos 2019 2018 % Power billings 24,116 26,535

• 9%

Coal sales 107 287

• 63%

Total revenues 24,223 26,822

• 10%

Power plant costs (11,388) (14,359)

• 21%

Operating expenses (6,180) (6,239)

• 1%

Interest expense - net (2,172) (2,162) 0% Other income 292 376

• 22%

Share in earnings of associates 366 249 47% Provision for income tax (1,202) (1,192) 1% Non-controlling interests (1,214) (1,037) 17% Core income 2,725 2,458 11% Non-core expense (97) (27) 259% Reported net income 2,628 2,431 8% Core EBITDA Computation: Core income 2,725 2,458 11% Depreciation and amortization 2,924 2,559 14% Interest expense - net 2,172 2,162 0% Provision for income tax 1,202 1,192 1% Non-controlling interests 1,214 1,037 17% Others (366) (249) 47% Core EBITDA 9,871 9,159 8%

VOLUME SOLD (In GWh) REVENUES (In Millions of Pesos) 2019 2018 2019 2018 CEDC (Cebu) 1,777 1,861 8,581 9,728 TPC (Toledo) 884 834 3,390 3,668 PEDC (Panay) 1,978 1,803 10,345 10,634 PPC (Panay) 114 58 1,066 609 GBH (Mindoro) 40 34 337 302 GESC (RES) 279 476 1,596 2,751 GTERC (TCITRC)

• 184

458 Others/Elimination (254) (244) (1,276) (1,328) TOTAL 4,818 4,822 24,223 26,822

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PO POWER WER EXP EXPANSION ANSION UPD UPDATES ES

Alsons Thermal Energy Corporation

• 105 MW Expansion Plant, Saranggani – began commercial
• perations on 10 October 2019

1x455MW (net) San Buenaventura Power, Quezon

• Started commercial operations on 26 September 2019
• First operational supercritical coal power plant in the Philippines
• EPC contract with the Consortium of Daelim Industrial Co., Ltd. and

Mitsubishi Corporation

• Joint venture of MGen with New Growth, B.V., a wholly owned subsidiary
• f Electricity Generating Public Company Limited (EGCO) of Thailand

2x600MW (net) Atimonan One Energy, Quezon

• Awaiting final terms of reference and will participate in Meralco’s

Competitive Selection Process

• Selected EPC contractor is awaiting issuance of Notice to Proceed; site

preparation activities are ongoing

MERALCO GLOBAL BUSINESS POWER CORPORATION 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
• The LGU has requested to undertake a waste study to validate its minimum delivery commitment under the

concession agreement 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 5.7 MW of clean energy for Dole and contribute to reduction of CO2 emission by 100,000

tons/year

• Target completion of facilities by 2H2020
• Approved as a Joint Crediting Mechanism Model Project for carbon reduction and subsidy by the Ministry of

Environment, Japan

14 14 14

(a) CII BR includes roads under pre- and on-going construction (b) Traffic affected by opening of alternative roads in DMT and integration works in PT Nusantara

MP MPTC C FY FY20 2019 19 HIGHLIGHTS HIGHLIGHTS

PHILIPPINES Net Toll Revenues increased due to:  NLEX - Revenues up by 14% from P10.9 billion to P12.5 billion

• 7% increase in average daily vehicle entries (open and closed

systems) from 265,530 to 283,296

• 7% increase in average daily kilometers travelled from 5.0 million to

5.3 million  CAVITEX - Revenues up by 17% from P1.6 billion to P1.9 billion

• 24% increase in average daily vehicle entries from 146,315 to

181,656  SCTEX - Revenues up by 21% from P2.1 billion to P2.6 billion

• 13% increase in average daily vehicle entries from 62,684 to 70,551

Growth in Core EBITDA driven by consolidation of PT Nusantara Slower growth in Core Income due to higher financing costs, heavy repairs provision and lower contribution of Don Muang Tollways and CII Bridges & Roads REGIONAL

In Millions of Pesos 2019 2018 % Stand-alone Core Income 5,265 4,450 18% MPTC (99.9%) 5,258 4,443 18% Fair Value Adjustments (22) (20) 10% MPIC Share 5,236 4,423 18% In Millions of Pesos 2019 2018 % Net toll revenues 18,503 15,486 19% Cost of services (6,854) (5,449) 26% Gross profit 11,649 10,037 16% Operating expenses (2,207) (2,197) 0% Other income and expense - net 1,469 956 54% Share in earnings of associates 623 825

• 24%

Interest expense - net (2,100) (1,745) 20% Provision for income tax (2,284) (1,849) 24% Non-controlling interest (1,885) (1,577) 20% Core income 5,265 4,450 18% Non-core expense (339) (176) 93% Reported net income 4,926 4,274 15% Core EBITDA Computation: Core income 5,265 4,450 18% Depreciation and amortization 2,362 1,715 38% Interest expense - net 2,100 1,745 20% Provision for income tax 2,284 1,849 24% Non-controlling interest 1,885 1,577 20% Others (629) (862)

• 27%

Core EBITDA 13,267 10,474 27%

2019 CII BR(a) DMT(b) NUS(b) Toll Revenues 1,109 4,667 1,529 Core Income 5 1,888 650 Traffic (In ‘000) 41 93 278 Length (In km)(a) 145.1 21.9 34.5 2018 CII BR (a) DMT(b) NUS(b) Toll Revenues 868 4,933 1,575 Core Income 66 2,364 479 Traffic (In ‘000) 33 99 306 Length (In km)(a) 146.1 21.9 34.5

15 15 15

KEY KEY ME METRI TRICS CS AND AND PRI PRIORIT ORITIES IES

KEY METRICS 2019 2018 NLEX Class 1 Tariff: Open system - P48.2/entry (2019); P40.6/entry (2018) / Closed system - P2.8/km (2019); P2.6/km (2018) Average Daily Vehicle Entries (Open & Closed) Class 1 220,594 206,574 Class 2 37,112 35,628 Class 3 25,590 23,328 Total 283,296 265,530 Average Daily Vehicle Entries (Open) Class 1 157,123 149,244 Class 2 29,654 28,334 Class 3 18,045 16,865 Total 204,822 194,443 Average Daily Kilometers Travelled (In 000 km) Class 1 3,997 3,723 Class 2 770 738 Class 3 531 490 Total 5,298 4,951 CAVITEX Class 1 Tariff/entry: R1 - P22.7 (2019); P21.8 (2018) / R1 extension - P58.5 / C5 South Link: Tariff/entry: P19.6 (2019) Average Daily Vehicle Entries Class 1 162,854 130,441 Class 2 12,145 10,193 Class 3 6,657 5,681 Total 181,656 146,315 SCTEX Class 1 Tariff: P3.2/km (2019); P2.7/km (2018) Average Daily Vehicle Entries Class 1 57,644 50,888 Class 2 7,604 7,170 Class 3 5,303 4,626 Total 70,551 62,684

STATUS OF NEW ROADS Completed Projects

• NLEX Harbor Link Segment 10 – began operations on 28

February 2019

• C5 South Link Segment 3A-1 – began operations on 23 July

2019

• Cavite Laguna Expressway Sub-sections 6-8 – began
• perations on 30 October 2019

Ongoing Construction

• CAVITEX C5 South Link – target completion in 2022
• Cavite Laguna Expressway – target completion in 2022
• Cebu-Cordova Link Expressway – target completion in 2021
• NLEX-SLEX Connector Road – target completion in 2021
• NLEX Harbour Link Radial Road 10 – target completion in 2020

16 16 16

TOLL ROADS  Increase in toll rates for NLEX, SCTEX, CAVITEX implemented in March, June, and October 2019, respectively  Initial toll rate for CALAX sub-sections 6-8 implemented in February 2020

TOLL R OLL ROAD ADS RE REGULA GULATOR ORY MATTERS

APPROVED INCREASES – CLASS 1 (VAT-EX) TOTAL 2019 2020 2021 2023 NLEX Periodic adjustment – 2012 and 2014 Open system (per entry) 6.25 3.57 0.89 0.89 0.89 Closed system (per km) 0.36 0.18 0.06 0.06 0.06 New extension Harbour Link Segment 10 (add-on per entry) 5.38 4.49 0.89

• SCTEX (per km)

0.51 0.51

• CAVITEX (per entry)

R1 Enhancement Ph. 1 0.89 0.89

• New extension

C5 South Link Segment 3A-1 (stand alone) 19.64 19.64

• Cavite Laguna Expressway (per km)

New opened sub-section Sub-sections 6-8 4.50

• 4.50
• IMPACT ON REVENUES – net of gov’t share (In P Million)

2,821 1,173 2,205 2,573 2,821

17 17 17

TOLL ROADS  Awaiting approval of the following adjustments:

• NLEX: 2016 cycle (one-time increase in 2020) and 2018 cycle (staggered increases starting 2021); Radial

Road10 additional tariff (one-time increase in 2020)

• CAVITEX: 2013, 2014, and 2017 cycles (staggered implementation); R1 Enhancements Ph. 2 additional tariff

(one-time increase in 2020)  Impact on Revenues based on 2019 actual traffic for existing roads and projected traffic for new extensions  Foregone revenues to be settled through concession extensions

TOLL OLL R ROADS ADS REGULA REGULATOR ORY MA MATT TTERS ERS

PENDING INCREASES – CLASS 1 (VAT-EX) TOTAL 2020 2021 2023 2024 NLEX Periodic adjustment – 2016 and 2018 Open system (per entry) 8.20 1.18 2.64 2.92 1.46 Closed system (per km) 0.50 0.07 0.16 0.18 0.09 New extension Radial Road 10 2.00 2.00

• CAVITEX (per entry)

Periodic adjustment – 2013, 2014, and 2017 R1 6.25 5.36 0.89

• R1 Extension

27.68 8.93 6.25 6.25 6.25 R1 Enhancement Ph. 2 1.78 1.78

• IMPACT ON REVENUES – net of gov’t share (In P Million)

3,155 615 1,801 2,671 3,155

18 18 18

MA MAYNILA YNILAD FY FY 20 2019 19 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY MET METRICS RICS

MAYNILAD Revenues increased by 9% due to :  2% growth in billed volume from 527.2 MCM to 535.3 MCM

• 3% increase in billed customers from 1,407,503 to

1,453,979  Tariff increases

• Inflation-linked: 5.7% in January 2019
• Basic: 2.7% in October 2018

Flat growth in Core Income due to higher concession amortization costs

In Millions of Pesos 2019 2018 % Stand-alone Core Income 7,723 7,731 0% Maynilad (52.8%) 4,078 4,082 0% Fair Value Adjustments (219) (198) 11% Metropac Water Investments (290) (90) 222% MPIC Share 3,569 3,794

• 6%

In Millions of Pesos 2019 2018 % Revenues 23,992 22,024 9% Cost of services (7,037) (6,537) 8% Gross profit 16,955 15,487 9% Operating expenses (3,578) (3,069) 17% Other income and expense - net (920) (89) 934% Interest expense - net (1,644) (1,611) 2% Provision for income tax (3,090) (2,987) 3% Core income 7,723 7,731 0% Non-core expense (407) (363) 12% Reported Net Income 7,316 7,368

• 1%

Core EBITDA Computation: Core income 7,723 7,731 0% Depreciation and amortization 3,837 3,125 23% Interest expense - net 1,644 1,611 2% Provision for income tax 3,090 2,987 3% Core EBITDA 16,294 15,454 5%

KEY METRICS 2019 2018 NRW Average 26.4% 29.8% Period end 25.3% 27.1% Coverage Total population 10.27M 10.16M Population coverage 9.68M 9.54M 24hr availability 59% 98% Minimum 16 psi 23% 67% Customer Mix Domestic 80.0% 80.5% Non-Domestic 19.7% 19.5% Cross border 0.3%

• Capital Expenditure

12,380 11,944

19 19 19

Industrial Water Municipal Water In Aggregate Bulk Distribution Total

• Max. Potential Volume (mld)

660 305 328 1,293 Installed Capacity (mld) 335 170 142 647 Billed Volume (mld) 101 161 63 325 Regulated Tariff? No No Yes Demand Risk? Yes Mixed No In Aggregate Philippines Vietnam Total

• Max. Potential Volume (mld)

633 660 1,293 Installed Capacity (mld) 312 335 647 OVERVIEW OF EXISTING PORTFOLIO

EXPANSION

• Organic growth potential – 335 mld
• Investment growth potential – 646 mld

UPDATES Metro 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 3 September 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 5 September 2019

20 20 20

WATER  Rate rebasing:

• ADR 7.39%
• Excludes Corporate Income Tax recovery

*Impact on revenues includes 20% environmental charge on the annual adjustments

WA WATE TER R REGUL REGULATOR ORY Y MA MATT TTER ERS

% adjustment TOTAL 2018 2019 2020 2021 2022 Basic tariff 2.70%

• 5.69%

5.38% 2.44% CPI

• 5.70%
• IMPACT ON REVENUES (In P Million)*

4,933 142 1,831 2,457 4,336 4,933

21 21

MP MPHHI HHI FY FY2019 2019 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY ME METRI TRICS CS

In Millions of Pesos Stand-alone Core Income MPIC Share 2019 2018 2019 2018 Asian Hospital 516 480 253 247 Cardinal Santos 395 316 228 190 Makati Medical 243 223 107 105 Riverside 563 541 109 107 Davao Doctors 312 256 90 62 Marikina Valley 142 130 76 73 Manila Doctors 322 228 38 27 Others 191 183 98 82 Total 2,685 2,357 999 893 Hospital Admin/FV adjustments (132) (122) MPIC Share 867 771

Growth in Gross Revenues was driven by :  Increase in patient numbers

• Out-patients – 11%
• In-patients – 4%

Stand-alone Core Income and MPIC share breakdown as follows:

KEY METRICS 2019 2018 Total number of beds 3,235 3,200 Number of accredited doctors 8,561 8,373 Number of enrollees 8,288 7,506 Average standard occupancy rate 71.5% 67.9% Number of patients (in thousands) In-patient 201 194 Out-patient 3,687 3,323

In Millions of Pesos 2019 2018 % Stand-alone Core Income 2,685 2,357 14% Metro Pacific Hospital Holdings 999 893 12% Admin and fair value adjustments (132) (122) 8% MPIC Share 867 771 12% In Millions of Pesos 2019 2018 % Gross revenues 28,802 25,655 12% Discounts (2,971) (2,527) 18% Net revenues 25,831 23,128 12% Cost of supplies (10,637) (10,165) 5% Gross profit 15,194 12,963 17% Operating expenses (11,586) (9,885) 17% Interest expense (300) (217) 38% Noncontrolling interest (11) (5) 120% Other income 591 532 11% Provision for income tax (1,203) (1,031) 17% Core income 2,685 2,357 14% Non-core income (2) 6

• 133%

Reported net income 2,683 2,363 14% Core EBITDA Computation: Core income 2,685 2,357 14% Depreciation and amortization 2,307 1,949 18% Interest expense 300 217 38% Provision for income tax 1,203 1,031 17% Non-controlling interest 11 5 120% Core EBITDA 6,506 5,559 17%

22 22

LRMC LRMC FY2 FY201 019 9 HIGHL HIGHLIGHTS IGHTS AND AND KEY KEY ME METRI TRICS CS

Rail Revenues decreased due to:  Slight decline in average daily ridership from 458,021 to 446,943 due to shortened operating hours Core EBITDA declined due to higher repairs and maintenance costs Non-Core Expense relates to foreign exchange losses

In Millions of Pesos 2019 2018 % Stand-alone Core Income 645 716

• 10%

LRMC (55%) 355 394

• 10%

Holding company admin (36)

• 100%

MPIC Share 319 394

• 19%

In Millions of Pesos 2019 2018 % Rail revenues 3,287 3,310

• 1%

Cost of services (2,042) (1,900) 7% Gross profit 1,245 1,410

• 12%

Operating expenses (767) (668) 15% Other income and expense - net 153 154

• 1%

Interest income (expense) - net 111 (11) 100% Provision for income tax (97) (169)

• 43%

Core income 645 716

• 10%

Non-core expense (16) (71)

• 77%

Reported net income 629 645

• 2%

Core EBITDA Computation: Core income 645 716

• 10%

Depreciation and amortization 113 92 23% Interest expense (income) - net (111) 11

• 100%

Provision for income tax 97 169

• 43%

Core EBITDA 744 988

• 25%

23 23

QU QUAR ARTE TERLY Y HIGHL HIGHLIGHTS IGHTS

24 24

QU QUAR ARTE TERLY Y HIG HIGHL HLIGH IGHTS TS

METRO PACIFIC TOLLWAYS 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Net Revenues 4,243 4,680 4,576 5,004 Core EBITDA 2,866 3,392 3,399 3,610 Core Income 1,121 1,319 1,272 1,553 Reported Income 1,028 1,167 1,225 1,507 KEY METRICS NLEX Average Daily Vehicle Entries (Open & Closed) Class 1 204,859 211,983 204,152 230,733 Class 2 36,328 36,239 36,107 38,008 Class 3 24,038 23,070 23,957 25,771 Total 265,225 271,292 264,216 294,512 Average Daily Kilometers Travelled (In thousands of kms) Class 1 3,880 4,195 3,681 4,195 Class 2 764 769 744 794 Class 3 531 498 540 551 Total 5,175 5,462 4,965 5,540 CAVITEX Average Daily Vehicle Entries Class 1 143,366 147,838 148,519 174,481 Class 2 10,145 10,220 10,650 13,026 Class 3 6,422 6,172 6,038 6,760 Total 159,933 164,230 165,207 194,267 SCTEX Average Daily Vehicle Entries Class 1 56,088 60,210 52,339 61,932 Class 2 7,523 7,695 7,182 8,017 Class 3 5,194 4,920 5,233 5,857 Total 68,805 72,825 64,754 75,806 MERALCO 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Total Revenues 75,378 89,575 76,173 77,189 Core EBITDA 8,828 11,051 9,883 8,264 Core Income 5,598 6,719 6,136 5,379 Reported Income 5,671 6,336 6,314 4,964 KEY METRICS Number of customers 6.68M 6.75M 6.82M 6.88M Energy Sales Residential 3,010 4,136 3,774 3,669 Commercial 4,124 4,827 4,761 4,771 Industrial 3,212 3,444 3,612 3,391 Streetlights 35 35 35 35 Total (in gWh) 10,381 12,442 12,182 11,866

25 25

MAYNILAD 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Revenues 5,686 6,486 5,863 5,957 Core EBITDA 3,797 5,028 3,925 3,544 Core Income 1,821 2,778 1,901 1,223 Reported Income 1,819 2,738 1,893 866 KEY METRICS Billed volume (In MCM) 128.5 139.2 134.6 133.0 Billed customers 1,420,580 1,434,544 1,446,438 1,453,979 Non-revenue water Average 27.9% 25.6% 26.8% 25.1% Period end 26.3% 24.6% 27.1% 25.3% Service levels 24-hour coverage 98.1% 74.7% 98.8% 58.8% Minimum 16 psi 66.4% 26.3% 67.4% 23.5% HOSPITALS - AGGREGATE 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Revenues 7,166 6,673 7,621 7,212 Core EBITDA 1,688 1,388 1,864 1,563 Core Income 744 522 819 597 Reported Income 745 521 823 592 Total number of beds 3,204 3,218 3,241 3,235 Number of accredited doctors 8,344 8,441 8,425 8,561 Number of enrollees 9,056 6,815 7,831 8,288 FINANCIAL HIGHLIGHTS (In Millions of Pesos) KEY METRICS LIGHT RAIL MANILA 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FINANCIAL HIGHLIGHTS (In Millions of Pesos) Net Revenues 832 747 811 897 Core EBITDA 239 105 136 264 Core Income 223 83 102 237 Reported Income 218 78 97 236 KEY METRIC Average Daily Ridership 463,758 428,791 443,070 304,445

QU QUAR ARTE TERLY Y HIGHL HIGHLIGHTS IGHTS

26 26

ST STATE TEME MENTS TS OF FIN OF FINANCIA ANCIAL L POS POSITION ITION

(T (Ten enta tati tive) e)

27 27

ME METRO TRO PAC PACIFIC IFIC INVES INVESTM TMENTS ENTS CORPOR CORPORATIO ATION – PAR PARENT ENT

BALANCE SHEET BALANCE SHEET (continued) In PhP Millions Dec 2019 Dec 2018 In PhP Millions Dec 2019 Dec 2018 ASSETS LIABILITIES AND EQUITY CURRENT ASSETS CURRENT LIABILITIES Cash and short-term investments 38,155 9,048 Accounts payable and other current liabilities

3,133 2,252

Receivables - net 4,154 1,480 Due to related parties

5,561 4,385

Other current assets 1,015 1,262 Current portion of long-term debt

7,534 1,707

Total Current Assets 43,324 11,790 Total Current Liabilities 16,228 8,344 NONCURRENT ASSETS NONCURRENT LIABILITIES Investments and advances to subs., associates & JVs 202,235 193,193 Noncurrent portion of long-term debt 78,531 65,294 Other noncurrent assets 511 536 Due to related parties 2,240 7,392 Total Noncurrent Assets 202,746 193,729 Other noncurrent liabilities 9,998 733 Total Noncurrent Liabilities 90,769 73,419 TOTAL ASSETS 246,070 205,519 Total Liabilities 106,997 81,763 EQUITY Capital stock 31,661 31,633 Additional paid-in capital 68,638 68,494 Treasury shares (4) (178) Other reserves 19 289 Retained earnings 38,759 23,518 Total Equity 139,073 123,756 TOTAL LIABILITIES AND EQUITY 246,070 205,519 As of As of

28 28

MET ETRO RO PA PACIFIC CIFIC INVE INVEST STMEN ENTS S COR CORPO PORATION ATION – CONSOLIDA CONSOLIDATE TED

BALANCE SHEET BALANCE SHEET (continued) In PhP Millions Dec 2019 Dec 2018 In PhP Millions Dec 2019 Dec 2018 ASSETS NONCURRENT LIABILITIES CURRENT ASSETS Noncurrent portion of concession fees payable Cash and cash equivalents and short term deposits 74,697 47,521 long-term debt and others 263,068 235,948 Receivables 14,624 12,495 Due to related parties 2,240 7,392 Other current assets 15,916 19,563 Deferred tax liabilities 14,170 9,930 Total Current Assets 105,237 79,579 Other noncurrent liabilities 11,137 9,411 Total Noncurrent Liabilities 290,615 262,681 NONCURRENT ASSETS Investments and advances 169,092 152,993 Total Liabilities 365,733 318,943 Service concession assets 240,489 205,992 Property and equipment 58,591 71,926 EQUITY Goodwill 15,676 27,856 Capital stock 31,661 31,633 Other noncurrent assets 22,693 19,600 Additional paid-in capital 68,638 68,494 Total Noncurrent Assets 506,541 478,367 Treasury shares (4) (178) Other equity adjustments and reserves 17 8,829 TOTAL ASSETS 611,778 557,946 Retained earnings 90,650 64,533 Total equity attributable to owners of Parent 190,962 173,311 LIABILITIES AND EQUITY Non-controlling interest 55,083 65,692 CURRENT LIABILITIES Total Equity 246,045 239,003 Accounts payable and other current liabilities 38,002 33,484 Due to related parties 5,638 4,462 TOTAL LIABILITIES AND EQUITY 611,778 557,946 Current portion of concession fees payable long-term debt and others 31,478 18,316 Total Current Liabilities 75,118 56,262 As of As of

29 29 29

ME METR TRO O PACIFIC CIFIC TOLL OLLWA WAYS S CORPOR CORPORATION ION AND AND SUBSIDIA SUBSIDIARIES IES

BALANCE SHEET BALANCE SHEET (continued) In PhP Millions Dec 2019 Dec 2018 In PhP Millions Dec 2019 Dec 2018 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and short-term investments 8,652 7,162 Accounts payable and accrued liabilities 15,160 7,173 Receivables 979 1,120 Current portion of long-term debt 5,964 3,299 Other current assets 6,231 5,399 Other current liabilities 478 772 Total Current Assets 15,862 13,681 Total Current Liabilities 21,602 11,244 Noncurrent Assets Noncurrent Liabilities Service concession assets 111,275 85,557 Long-term debt - net of current portion 61,847 46,026 Goodwill 9,765 10,417 Service concession obligation 17,623 20,784 Investment in associates 16,159 14,214 Deferred tax liabilities 3,962 3,440 Other noncurrent assets 9,360 10,776 Other noncurrent liabilities 2,655 1,637 Total Noncurrent Assets 146,559 120,964 Total Noncurrent Liabilities 86,087 71,887 TOTAL ASSETS 162,421 134,645 Total Liabilities 107,689 83,131 Equity Capital stock 13,282 13,150 Additional paid-in capital 28,865 26,217 Other equity adjustments and reserves (10,066) (10,035) Retained earnings 14,766 12,165 Total Equity Attributable to Equity Holders

• f Parent

46,847 41,497 Non-controlling interest 7,885 10,017 Total Equity 54,732 51,514 TOTAL LIABILITIES AND EQUITY 162,421 134,645 As of As of

30 30 30

MAYNILA YNILAD WA WATE TER R SE SERVIC VICES ES INC INC. . AND AND SU SUBS BSIDIAR IDIARIE IES

BALANCE SHEET BALANCE SHEET (continued) In PhP Millions Dec 2019 Dec 2018 In PhP Millions Dec 2019 Dec 2018 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and short-term investments 11,410 11,549 Accounts payable and other current liabilities 17,985 16,205 Receivables 3,197 1,674 Current portion of interest-bearing loans 1,217 354 Other current assets 1,551 2,489 Current portion of service concession obligation 1,172 1,039 Total Current Assets (1) 16,158 15,712 Total Current Liabilities (1) 20,374 17,598 Non-current Assets Non-current Liabilities Service concession assets 97,818 88,108 Interest-bearing loans - net of current portion 39,865 34,051 Property and equipment 1,827 1,401 Service concession obligation - net of current portion 5,716 6,012 Other noncurrent assets 4,036 2,699 Other noncurrent liabilities 3,401 1,977 Total Noncurrent Assets 103,681 92,208 Total Noncurrent Liabilities 48,982 42,040 TOTAL ASSETS 119,839 107,920 Total Liabilities 69,356 59,638 Equity Capital stock 4,547 4,547 Additional paid-in capital 10,033 10,033 Other equity adjustments and reserves (634) (519) Retained earnings 36,537 34,221 Total Equity 50,483 48,282 TOTAL LIABILITIES AND EQUITY 119,839 107,920 As of As of

31 31

LIGH LIGHT T RAIL RAIL MANILA MANILA CORPOR CORPORATIO TION

BALANCE SHEET BALANCE SHEET (continued) In PhP Millions Dec 2019 Dec 2018 In PhP Millions Dec 2019 Dec 2018 ASSETS LIABILITIES AND EQUITY Current Assets Current Liabilities Cash and cash equivalents 1,628 1,561 Accounts payable and other current liabilities 1,735 715 Receivables 193 132 Income tax payable 26 24 Other current assets 495 530 Current portion of service concession obligation 257 63 Total Current Assets 2,316 2,223 Total Current Liabilities 2,018 802 Non-current Assets Non-current Liabilities Service concession assets 24,482 15,971 Service concession obligation 3,286 3,333 Property and equipment 255 259 Loans payable 11,779 7,930 Other noncurrent assets 3,329 2,643 Other noncurrent liabilities 326 252 Total Noncurrent Assets 28,066 18,873 Total Noncurrent Liabilities 15,391 11,515 TOTAL ASSETS 30,382 21,096 Total Liabilities 17,409 12,317 Equity Capital stock 6,850 5,050 Additional paid-in capital 3,745 1,963 Other equity adjustments and reserves 7 24 Retained earnings 2,371 1,742 Total Equity 12,973 8,779 TOTAL LIABILITIES AND EQUITY 30,382 21,096 As of As of

32 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

• ccur 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

• ffer 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 (investorrelations@mpic.com.ph) 10/F MGO Building, Legazpi corner Dela Rosa Streets, VP Investor Relations – Maricris C. Aldover - Ysmael (mdaldover@mpic.com.ph) Legazpi Village, Makati 0721 Philippines IR Manager – Owen Kieffer D. Ocampo (odocampo@mpic.com.ph) Phone: (+632) 8`888-0888 / Facsimile: (+632) 8888-0813 IR Senior Specialist – Jana Lyra M. Manlangit (jmmanlangit@mpic.com.ph) Official Website: www.mpic.com.ph Ticker: PSE:MPI American Depositary Receipts ADR Ticker: MPCIY CUSIP: US59164L2007 Ratio: 1 ADR : 100 Ordinary Shares Depositary Bank: Deutsche Bank Trust Company Americas ADR Broker Helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) E-mail: adr@db.com ADR Website: www.adr.db.com Depositary Bank’s Local Custodian: Deutsche Bank Manila