NINE NINE MONTH MONTHS S 20 2017 17 FINANCIA FIN ANCIAL L RESUL RESULTS TS ANALYSTS’ BRIEFING 08 08 No Novemb ember er 2017 1
CAUTIONARY STATEMENTS Ticker: PSE:MPI This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part American Depositary Receipts thereof may not be reproduced, disclosed or used without the prior written consent of Metro Pacific Investments ADR Ticker: MPCIY Corporation (the “Company”). CUSIP: US59164L2007 Ratio: 1 ADR : 100 Ordinary This presentation, as well as discussions arising therefrom, may contain statements relating to future Shares 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,” Depositary Bank: “plan,” “anticipate,” “continue,””estimate,” “expect,” “may,” “will,” or other similar words. These statements are: ( i) Deutsche Bank Trust Company presented on the basis of current assumptions which the company’s management team believes to be Americas reasonable and presumed correct based on available data at the time these were made, (ii) based on ADR Broker Helpline: assumptions regarding the Company’s present and future business strategies, and the environment in which it +1 212 250 9100 (New York) will operate in the future, (iii) a reflection of our current views with respect to future events and not a guarantee of +44 207 547 6500 (London) 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 E-mail: adr@db.com statements made by the Company or any persons acting on its behalf are deemed qualified in their entirety by ADR Website: www.adr.db.com these cautionary statements. Depositary Bank’s Local Custodian: Deutsche Bank Manila 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 (investorrelations@mpic.com.ph) 10/F MGO Building, Legazpi corner Dela Rosa Streets, AVP Investor Relations – Maricris C. Aldover - Ysmael (mdaldover@mpic.com.ph) IR Manager – Owen Kieffer D. Ocampo (odocampo@mpic.com.ph) Legazpi Village, Makati 0721 Philippines Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 Official Website: www.mpic.com.ph 2
9M 2017 CORE INCOME UP 22% TO P11.3B CONSOLIDATED FINANCIAL HIGHLIGHTS In Millions of Pesos 9M 2017 9M 2016 % Change 22% increase in Core Income was driven by: MPIC share Expanded Power portfolio through increased Power 7,573 5,685 33% investments in MERALCO and Global Business Toll Roads 2,996 2,618 14% Power Corporation Water 2,801 2,705 4% Hospitals 518 443 17% Robust traffic growth on all toll roads Rail 210 229 -8% Others (37) (51) -27% Continuing growth in the Hospitals business Share of operating income 14,061 11,629 21% Head office expenses (860) (803) 7% Increase in interest expense is due to new debt Interest expense (1,871) (1,542) 21% drawdowns amounting to P7.5 billion in 2016 and Core income 11,330 9,284 22% P10.5 billion in 2017 (proceeds were primarily used to Non-core expenses (202) 196 -203% fund additional investments in Power and Toll Roads); Reported income 11,128 9,480 17% and interest accretion on payable to PCEV totaling P16.7 billion for the step up in Beacon in May 2016 In Centavos and June 2017 Diluted EPS on Core Income 35.90 31.36 14% Non-core expenses in 9M 2017 are primarily made up of refinancing expenses, project expenses and a EARNINGS CONTRIBUTION MIX separation expense resulting from Maynilad’s redundancy program, largely offset by a realized gain 9M 2017 9M 2016 on sale of shares in MERALCO Toll Roads Toll Roads 21% 22% MPIC Group Aggregated Power Power 49% 54% Water Revenues grew by 11% from Water 20% 23% P252.4 billion to P280.3 billion Hospitals and Hospitals and Others Others 6% 5% 3
CON CONTRIB RIBUTIO UTION UP UP BY 3 BY 33% % TO O P7.6 7.6B POWER Dee Deepe pene ned d pa participa ticipation tion in in th the e Phil Philippine ippine Power er sec secto tor CONTRIBUTION TO MPIC 9M 2017 9M 2016 % 33% increase in contribution from the Power Meralco (from 32.5% to 45.5%) 6,559 5,471 20% business was driven by: GBPC (from 42.0 to 62.4%)* 436 1,058 143% Beacon (from 75.0% to 100.0%)** 26 Increase in effective ownership in Meralco 917 3427% Fair value / accounting adjustments (961) (248) 288% Full nine months contribution from Global 7,573 5,685 33% Business Power Corporation (acquired in May STAND-ALONE PERFORMANCE 9M 2017 9M 2016 % 2016) MERALCO Higher share in dividend income from Beacon Revenues 214,389 195,164 10% Core EBITDA 26,268 26,216 Electric preferred shares offset by increase in 0% Core income 15,370 14,966 3% interest expense Reported income 15,928 15,676 2% Capital expenditure 8,075 7,634 6% Key Performance Indicators Energy sales (in GWh) 30,103 31,401 4% System loss 6.40% 6.05% N/A GLOBAL BUSINESS POWER CORPORATION Revenues 17,227 12,956 33% Core EBITDA 6,979 6,185 13% Core income 2,079 1,939 7% Reported income 2,034 1,850 10% Capital expenditure 1,141 3,545 -68% Key Performance Indicators Energy sales (in GWh) 2,691 3,278 22% *Acquired 42% effective interest of GBPC under Beacon PowerGen on 27 May 2016 **Increased economic interest from 50% to 75% in May 2016, increased further to 100% in June 2017 4
POWER EXP EXPAN ANSION SION UPD UPDATE TES Quezon City Waste to Energy Project (P15.1 billion project cost for Phase 1) ● Aims to convert approximately 3,000 tons of waste to 42 MW of energy ● Granted original proponent status ● Detailed discussion on concession framework ongoing GBPC – Acquisition of 50% of Alsons Thermal Energy Corporation ● Cleared by the Philippine Competition Commission on 25 September 2017 ● Finalization ongoing 1x455MW San Buenaventura Power, Quezon (Target completion in 2019) ● Ongoing construction proceeding as scheduled 2x300 MW Redondo Peninsula Energy, Subic (Target completion of Phase 1 in 2020) ● Construction contracts and debt-financing agreements are in place ● Limited site works ongoing in preparation for full construction works after ERC PSA approval 2x600MW Atimonan One Energy, Quezon (Target completion of Unit 1 in 2021) ● Connection Agreement with NGCP executed in January 2017; 23-km Transmission Line approved by the ERC in February 2017 ● Evaluation of the EPC bids received from contractors is in the final stage ● Mandate Letter for up to P107.5B from a group of 7 local banks signed 5
CONTRI CO NTRIBUTION UTION UP UP BY BY 14% 4% TO TOLL ROADS P3.0B 3.0B Sur Surging ging tr traf affic fic growth wth In Millions of Pesos CONTRIBUTION TO MPIC 9M 2017 9M 2016 % 14% increase in contribution from the Metro Pacific Tollways (99.9%) 3,020 2,654 14% Toll Roads business was driven by: Fair value adjustments (24) (36) -33% Strong traffic growth on all roads and 2,996 2,618 14% favorable vehicle mix STAND-ALONE PERFORMANCE 9M 2017 9M 2016 % o 8% increase in system-wide METRO PACIFIC TOLLWAYS CORPORATION Revenues 9,605 8,794 9% average daily vehicle entries to Core EBITDA 6,259 5,292 18% 589,307 Core income 2,365 3,024 28% Reported income 2,180 4,507 107% Key Performance Indicators Average Daily Vehicle Entries NLEX 233,243 217,191 7% CAVITEX 137,627 127,632 8% SCTEX 53,406 43,600 22% Don Muang / CII Bridges & Roads 150,536 144,436 4% Capital expenditure 3,988 3,949 1% 6
TOLL ROADS EXP EXPAN ANSION SION UPD UPDATE TES PHILIPPINES Citi Link Ongoing Construction (8 kms) ● Harbour Link Segment 10 – expected to be completed in 2Q 2018 part of NLEX Harbour Link concession (11 kms) ● CAVITEX C5 Link – target completion in 2020 part of NLEX C5 South Link concession (8 kms) part of CAVITEX NLEX-SLEX concession Ongoing Right-of-Way Acquisition Connector Road (8 kms) CAVITEX (14 kms) ● NLEX-SLEX Connector Road – to begin construction in 2Q 2018; 140,000 average daily vehicles target completion in 2020 ● Cavite Laguna Expressway – ground breaking held in June 2017; CALA Expressway target completion in 2021 (47 kms) ● Cebu-Cordova Link Expressway – ground breaking held in March 2017; target completion in 2020 REGIONAL INVESTMENTS Acquisition of 48.3% of PT Nusantara Infrastructure ● Listed Indonesian infrastructure company with investments in toll roads and other non-core assets such as telecom towers, water, ports and energy ➢ Toll roads account for 80% of Core Income 7
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