Company Presentation April 2017 DISCLAIMER This presentation - - PowerPoint PPT Presentation

Company Presentation April 2017

This presentation contains certain “forward looking statements.” These forward looking statements include words or phrases such as EDC or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly, statements that describe EDC’s objectives, plans or goals also are 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. EDC does not make expressed 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 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 and is prepared for discussion purposes and is not a complete record of the discussions. 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 state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such state 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. 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.

DISCLAIMER

In the context of a challenging competitive environment, we are focused in reducing our spot market exposure, investing to improve our equipment’s reliability and resiliency, and in managing our FX exposure EDC currently focusing on solar. Company also see breaking into the contestable markets as key to further reducing WESM exposure

8 Brief Overview - FPH, 9 Summary of Operating Assets, 10 Business Model, 11 Contract Tenor, 12 Portfolio Expansion, 13 Risk Factors & Initiatives

Com

• mpany Intr

Introductio ion

26 Solar business expansion, 27 Contestable Customers

Bre reaking into New Mark rkets

15 25

Hig ighlights of

• f th

the Pre resentation

7

Key Takeaways

29

Add ddressin ing Risk Fa Factors rs

16 Reduce Spot Market Exposure, 18 Improve Equipment Reliability and Resiliency, 20 Manage Debt and FX Exposure

EDC is part of the Lopez group of companies … the world’s largest vertically-integrated geothermal company, delivering clean and renewable energy EDC to continue with initiatives to promote earnings predictability, to explore new prospects opportunistically, and to keep its dividend policy.

COMPANY INTRODUCTION

8 Company Introduction

Php101.04B

USD2.13B

FPH’s consolidated revenues for 2015

Php12.17B

USD0.26B

FPH’s consolidated net income for 2015

Php340.89B

USD7.19B

Total assets in 2015

POWER GENERATION PROPERTY MANUFACTURING CONSTRUCTION & ENERGY SERVICES

EDC IS PART OF THE LOPEZ GROUP’S FIRST PHILIPPINE HOLDINGS (FPH) –A DIVERSIFIED HOLDING COMPANY WITH PRINCIPAL INTERESTS IN ENERGY, REAL ESTATE, AND MANUFACTURING

Leading power producer with distinct assets that utilize indigenous, clean and/or renewable fuels supplying 17% of Philippine requirements. Leading residential, commercial, and office building developer as well as the largest contiguous industrial park in the Philippines. Pioneer and leader in electrical manufacturing in the Philippines One of the leaders in power and energy facilities construction

9 Company Introduction

TODAY EDC IS A DIVERSIFIED RENEWABLE ENERGY COMPANY

150.0 MW Burgos 6.82 MW Burgos 120.0 MW Pantabangan 12.0 MW Masiway 120.0 MW Bacman I 20.0 MW Bacman II 112.5 MW Tongonan 112.5 MW Palinpinon I 60.0 MW Palinpinon II* 125.0 MW Upper Mahiao 232.5 MW Malitbog 180.0 MW Mahanagdong 50.9 MW Optimization 49.4 MW Nasulo 52.0 MW Mindanao I 54.0 MW Mindanao II

Note: *20 MW Nasuji Power Plant placed on preservation

1 1 1 2 3 1 3 2

Wind Hydro Solar Geothermal (EDC Subsidiary) Geothermal (Integrated)

1

1 1 1 2 3 3 2 1 1

EDC IS THE LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY

COMPANY

CAPACITY (in MW) STEAM PLANT

1 EDC

1,169 1,169

2 Comision Federal de Electricidad 958 958 3 Enel Green Power 915 915 4 Chevron ~800* ~400 * 5 Ormat 689 749

Source: Bertani, Ruggero, 2010: Geothermal Power Generation in the World 2005-2010 Update Report Note: * net attributable MW

TOP 5 GEOTHERMAL COMPANIES

10 Company Introduction

EDC’S BUSINESS MODEL POSSESSES STABLE AND PREDICTABLE CASH FLOWS

Transco Electric Cooperatives/ Third party customers/ NGCP/ WESM

Subsidiaries

• f EDC

National Power Corporation

Power Supply Agreements (PSAs) Ancillary Services Provider Agreement (ASPA)

Power Purchase Agreements

Steam Sales Agreements (SSA)

Bac-Man Geothermal

Geothermal Resources Sales Contracts (GRSC)

Green Core Geothermal FG Hydro

Electricity Cashflow Electricity Cashflow

Electricity & Ancillary Svcs.

Cashflow Steam

Cashflow or Dividends

Steam

Cashflow or Dividends

Dividends

Burgos Wind

Electricity Cashflow Dividends

Power Supply Agreements

Power Purchase Agreements (PPAs)

Electricity Cashflow

Solar

Electricity Cashflow

Geothermal

% of Consolidated Revenues (1) USD Linkage

Electricity 38% 73%

Sovereign off-take

Electricity 54% 0%

Commercial off-take

Electricity 8% 60%

Feed-in-Tariff

(1) As of Dec. 31, 2016

Customers

Cashflow Energy Flow

11 Company Introduction

EDC’S EXPOSURE TO THE SPOT MARKET PRICES IS ONLY 10%

WESM, 3,258 NGCP, 773 DU, 4,580 NPC, 12,897 DU, 4,179 Transco, 2,822 DU, 5,725 SPOT 10% 1-2 YRS 12% 3-5 YRS 3% 6-10 YRS 48% 11-20 YRS 10% >21 YRS 17%

34,236

(1) Consolidated revenues as of December 31, 2016

TERM STRUCTURE OF CONTRACTS(1) In PHP Millions

SPOT 1-2 YRS 3-5 YRS 6-10 YRS 11-20 YRS >21 YRS WESM

10%

• NGCP
• 2%
• DU
• 10%

3% 11% 2% 17%

NPC

• 37%
• TRANSCO
• 8%
• 90%

revenue from long-term contracts

75%

revenue from contract tenors

• f >6 yrs

43%

expanded revenue base from contracted commercial clients

12 Company Introduction

HOWEVER, REPORTED EARNINGS HAVE BEEN VOLATILE

19,007 20,527 20,678 24,153 24,540 28,369 25,656 30,867 34,360 34,236 10,324 11,859 10,712 13,748 13,238 17,330 15,641 17,922 18,680 20,736 6,243 5,690 7,276 6,638 4,459 8,522 6,568 9,197 8,798 9,155

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

RE REVENUES EB EBITDA RN RNIA

638 770 1,181 1,331 1,262 1,262 1,262 1,446 1,455 1,458

513 132 411 150 (69) 184 9 2.66

+ 49.4 MW N.Negros + 463.4 MW Mahanagdong, Malitbog & Optimization + 132.0 MW Pantabangan- Masiway + 106.0MW Mindanao I & II + 305.0 MW Palinpinon & Tongonan + 150 MW BacMan I & II

• 49.4 MW
• N. Negros
• 20.0 MW

Botong

• Acquired geothermal concessions
• verseas

+ 49.4 MW Nasulo

• 20.0 MW Nasuji

+ 150.0 MW Burgos + 5.0 MW Bacman Unit 1 + 5.0 MW Bacman Unit 2 + 4.16 MW Burgos Solar + 2.66 MW Burgos Solar Cumulative MW Current MW

Customer Base

14.5 Bn DUs 12.9 Bn NPC 3.2 Bn WESM 2.8 Bn TransCo 0.8 Bn NGCP

Technology

1,169 MW Geothermal 150 MW Wind 132 MW Hydro 6.82 MW Solar

Geography

• Philippines  Chile
• Indonesia
• Peru

EDC TODAY

(AS AS OF OF FY FY 2016) 6)

2007-2016 (CAGR)

MWcum 9.6% Revenues 6.8% EBITDA 8.1% RNIA 4.4%

13 Company Introduction

WE HAVE CLEAR ACTION PLANS TO REDUCE/ELIMINATE VOLATILITY

Power plants: “Midlife” stage br brings abou bout t reliability iss ssue ues Ma Market: t: Ma Margin sq sque ueeze due due to

• low
• w

com commodity ty pr prices Ge Geography: Project t si sites are si situ tuated along the “typhoon” belt Ge Geoth thermal Re Reso sour urce: Na Natu tural dec decline of

• f reser

servoir pr pressure Ge Geoth thermal Gr Grow

• wth

th CAPEX: : Si Sign gnificant amou mounts ts requ quired upfr upfron

• nt

FCRS: : Moun Mounta taino nous locat

• cation
• n

expos

• ses inf

nfrastructu ture to

• pote

potenti tial landslide risk sk Re Retr trofit aging pl plants ts to

• enha

nhance ove

• verall

reliability ty Re Re-negoti tiate exp xpiring ng cont contracts to

• pr

preserve revenu nue ba base Typ Typhoon n pr proo

• of cr

critical pow power pl plant t com components Ad Advanced techn hnologies drive company’s replacement well dr drilling st strategy Ex Expand to

• FiT-suppor
• rted tech

chnolog

• gies

and nd acc ccess mul multi ti-late teral fina nancing to

• mi

miti tigate te exp xploration

• n risk

sk In Insti stitute te a proa

• active land

ndslide mi miti tigation st strategy

RISK FACTORS INITIATIVES

 Power plant lant reh rehab CAP CAPEX  Mi Mitig igate mar argin in sq squeeze  Ty Typhoon proo roofin ing CA CAPEX/OPEX  Ma Main intenance CA CAPEX  Dom Domest stic ic grow growth  Typ yphoon pro roofin ing CA CAPEX/OPEX

IMPACT

ADDRESSING RISK FACTORS

16 Addressing Risk Factors

WEAK COMMODITY PRICES EXPOSE OUR UNCONTRACTED CAPACITY TO LOWER MARGINS WHICH PROMPTED EDC TO FOCUS ON ASSET RELIABILITY PROGRAMS AND SELECTIVELY POSTPONE GROWTH

5.2 .20 6.4 .48 4.9 .98 3.68 2.78

1.00 3.00 5.00 7. 7.00 9.00 11.00 13.00 15.00 17. 7.00 19.00

2012 2013 2014 2015 2016

Monthly Annual Ave.

WESM PRICES

128.08 8 71.34 34 98.97 97 121.55 5 96.53 53 85.12 12 70.88 88 59.38 38 66.35 35 49.27 27 52.15 15 52.42 42 50.73 73 51.27 27 53.40 40 61.71 71 67.38 38 72.06 06 90.82 82 105.96 6 89.00 00 40 60 60 80 80 100 120 140

2008 2009 2010 10 2011 11 2012 12 2013 13 2014 14 2015 15 2016 16 Jan Jan-16 16 Feb-16 16 Ma Mar-16 16 Apr pr-16 16 Ma May-16 16 Jun-16 16 Jul-16 16 Aug-16 16 Sept-16 16 Oc Oct-16 16 Nov

• v-16

16 Dec Dec-16 16

COAL PRICES

Php/kWh $/MT

17 Addressing Risk Factors

EDC HAS SINCE ENTERED INTO A NUMBER OF CONTRACTS TO ADDRESS AND MANAGE THE DOWNSIDE FROM POTENTIALLY LOW SPOT MARKET PRICES

133 MW

Net Capacity

38.2 38.2

• 24.8

70.0 94.8 August 2016 December 2016

Bacman

47 MW

Net Capacity

8.1 8.1

• 15.1

14.0 38.5 9.8 August 2016 December 2016

Nasulo

29%  100%

75% 79% 87% 88% 85%

2020 2019 2018 2017 2016

25% 21% 13% 12% 15% CONTRACTED VS. WESM/EXPIRING CONTRACT(2)

(2) Expressed as percentage of capacity as of December 31, 2016

CONTRACTED WESM/ EXPIRING

17%  79%

(1) (1)

(1) Represents target for the year

18 Addressing Risk Factors

EDC REMAINS COMMITTED TO BRING UNPLANNED OUTAGE FACTOR (UOF) TO BELOW 5% BY ADDRESSING FLEET WIDE LIFE CYCLE RELIABILITY ISSUES

RELIABILITY IMPROVEMENT STRATEGIES:

• 1. New Steam Path/Reset Life Cycle
• 2. Uprated Steam Path/Reset Life Cycle
• 3. Upgrade Metallurgy to High Chrome

27.66% 17.19% 14.66% 12.77% 8.17%

Leyte Optimization Upper Mahiao Tongonan Bacman II Mindanao 1

41.34% 21.88% 7.45% 2.27% 0.17%

Unpla lanned Outa tage Fac Factor (UOF)

FY FY 2015 015 FY FY 2016 016  Unit 1 – retrofitting and Control System Integration (CSI) works completed, undergoing Reliability Run  Unit 2 – re-scheduled for April to June 2017  Unit 3 – re-scheduled for June to August 2017

112.5MW TONGONAN 125MW UPPER MAHIAO

 Unit 3 – completed the installation of new rotor and diaphragm and its 72 hr. reliability run on Sept 20, 2016.  Unit 1 – 2nd new rotor is available ex-works US Nov 2016; installation scheduled by Mar 2017.  Unit 4 – 3rd new rotor on order and for installation Oct 2017  Unit 2 – 4th new rotor on order and for installation 1Q 2018

20MW BACMAN UNIT 3

 Unit 3 (Cawayan) is operating normally following the warranty inspection completed last Feb 2016.

52MW MINDANAO I

 New OEM stator has already arrived in Davao  Installation ongoing since Feb 1, 2017 together with steam turbine major outage.  New already in normal operation and currently undergoing the usual 30 day reliability run

50MW LEYTE OPTIMIZATION

 Mahanagdong A Topping Cycle – new turbine rotor discs budgeted for 2017  Tongonan Topping Cycle – new turbine rotor discs budgeted for 2017  Malitbog Bottoming Cycle – new rotor procured

19 Addressing Risk Factors

TONGONAN 1 PLANT STEAM RATE IMPROVES BY ~10% AS UNIT 1 COMMENCES 30-DAY RELIABILITY RUN

Retrofit/Control System Integration (CSI) Project Timeline

2.00 2.40 2.80 3.20 3.60 4.00

1/15 15 1/16 16 1/17 17 1/18 18 1/19 19 1/20 1/21 1/22 1/23 1/24 1/25 1/26 1/27 1/28 1/29 1/30 1/31 2/1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 10 2/11 11 2/12 12 2/13 13 2/14 14 2/15 15

Unit 1 Unit 2 Unit 3 Plant Steam Rate

Plant Steam Rate

AVERAGE PLANT STEAM RATE = 3.31 kg/kW s

UNIT 1 OPERATING

3.05 kg/kW s

kg/kW s

Retrofitting Unit 1

2016 2017 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Unit 1 Unit 2 Unit 3

Legend: Original Schedule Revised Schedule Reliability Run

20 Addressing Risk Factors

VARIOUS INITIATIVES HAVE BEEN UNDERTAKEN TO INSULATE EDC FROM SWINGS IN NET INCOME

LOANS % BY CURRENCY

Eliminated JPY exposure starting 2011

USD EXPOSURE**

Significant portion of USD obligation remain exposed to currency fluctuations Cash flow exposure is evident in year 2021

CASH FLOW EXPOSURE*

12 66 56 63 62 60 62 62 11 21 44 37 38 40 38 38 77 13 0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 2013 2014 2015 2016

PESO USD JPY

Uncovered Portion 178

* 2021 Parent exposure reduced by ~USD 70MN of dollar bond buyback and assumed current cash to be held until dollar bond maturity exclusive of USD41Mn accumulation ** 2017 Consolidated Year-End Projected figures as of December 31, 2016

1 Remaining Debt Service payments for the year 2 Remaining Opex and Capex unspent for the year 3 Cross Currency Swaps

USD Cash 41 Debt Service 112 CCS 63 Opex & Capex 14 Call Spread 46 80MN Club Loan 73 USD-linked Revenues 94 Dollar Bonds 230 Burgos PHP Exposure 95 USD Uncovered 91

• 50

100 150 200 250 300 350 400 450 USD Cover USD Debt

82 60 26 27 316 79 54 20 22 244

50 100 150 200 250 300 350 2017 2018 2019 2020 2021

USD Expenses (New) USD Expenses (Old)

94

USD Linked Revenues

21 Addressing Risk Factors

DELIBERATELY MANAGING FINANCIAL RISKS …

69% 69% 71% 71% 67% 68% 68% 69% 69% 70% 70% 71% 71% 72% 72%

20 40 60 80 100 120 2014 2015 2016 2017E Hedged Unhedged US$ Mn

52% 66% 68% 64% 20% 30% 40% 50% 60% 70% 80%

20 40 60 80 2014 2015 2016 2017E* Amortizing Bullet

5.9% 6.3% 6.2% 5.8% 4% 5% 5% 6% 6% 7% 7%

50 55 60 65 70 75 2014 2015 2016 2017E Total Debt

ANNUAL DEBT SERVICE REQUIREMENT INTEREST RATE LOANS BY REPAYMENT SCHEDULE

71% hedged Interest rate (wtd ave.) reduced to 6.1% Amortizing loans smoothen lumpy principal payments PhP Bn PhP Bn E = estimated % assuming no new financing

22 Addressing Risk Factors

... BRINGS ABOUT A ROBUST BALANCE SHEET

Notes: Ratios are computed based on Parent Company financial statements for DSCR (1) Debt Service Coverage Ratio = Net Cash flow from Operating Activities / (Short Term Debt + Long Term Debt + Projected Interest Service for the next 12 months) (2) EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization

COMFORTABLY OPERATING WITHIN COVENANTED FINANCIAL RATIOS

Total Equities Total Liabilities

94.30 135. 35.81 81

Dec-12 Dec-16

Tota

• tal As

Asset sets

PhP Bn 58.87 87 83.00 00 35.43 43 52.81 81

Dec-12 Dec-16

Tota

• tal Liabiliti

ties and nd Eq Equi uiti ties

PhP Bn

Dec-16 Dec-15 Dec-14 Dec-13 Dec-12 5.8 7.4 5.4 2.1 3.2 Dec-16 Dec-15 Dec-14 Dec-13 Dec-12 2.9 3.1 3.1 3.3 3.2 Dec-16 Dec-15 Dec-14 Dec-13 Dec-12 1.5 1.7 1.4 3.9 2.5

CURRENT RATIO NET DEBT TO EBITDA(2) DEBT SERVICE COVERAGE RATIO(1)

3.6 times 1.0 times

High liquidity to meet short-term obligations Well within our targeted 3.6 times Strong ability to produce cash to cover debt payments

1.2 times

23 Addressing Risk Factors

DIVIDEND POLICY IS TO DECLARE 30% OF PRIOR YEAR’S RNI

1,485 1,875 1,863 2,250 3,000 1,875 1,500 1,875 1,875 2,624 2,175 750 1,500 1,875 2,062 2,248 6,243 5,690 7,276 6,638 4,459 8,522 6,568 9,197 8,798 9,155 30% 65% 33% 31% 45% 58% 36% 58% 42% 55%

20% 30% 40% 50% 60% 70% 80% 90% 100% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cash Divi vidends on

• n Com
• mmon Sha

Shares

Special Regular RNIA Payout Ratio

PHP/share 0.099 0.270 0.125 0.120 0.160 0.140 0.160 0.200 0.210 0.260 Yield 1.7% 4.4% 3.3% 2.4% 2.7% 2.4% 2.4% 3.6% 3.5% 4.5%

Payout Ratio PhP Mn

At or about 30% of previous year’s Recurring Net Income subject to i) Debt service requirements and loan covenants, and ii) Implementation of business plans, operating expenses, budgets, funding for new investments and acquisitions, appropriate reserves and working capital.

DIVIDEND POLICY STATEMENT

BREAKING INTO NEW MARKETS

26 Breaking into New Markets

EDC COMMISSIONED ITS FIRST SOLAR ROOFTOP PROJECT IN THE PHILIPPINES, AND CURRENTLY LOOKING AT FURTHER EXPANSION

Capacity: 1.03 MW Location: Gaisano Capital Iloilo EDC to provide up to 50% of the mall’s daytime load through clean solar energy.

ROOFTOP PROJECT WITH GAISANO CAPITAL

27 Breaking into New Markets

EDC IS ALSO NOW ACTIVE IN SEVEN (7) MARKETS FOLLOWING THE ENACTMENT OF EPIRA (2001) AND RE-LAW (2009)

ST STRATEGIC FOC OCUS PRE EP EPIRA POST EP EPIRA POST RE RE-LAW

CUSTOMERS Na Nati tional Power Co Corp rporation (NPC NPC)

  

Distri ribution Ut Utilities/Electr tric Co Coop

• peratives (DUs/ECs)

  

Wh Whol

• lesale Elec

ectri ricity Spot pot Ma Market (WESM)

  

NG NGCP

  

Tr Transco

  

Distri ributed Gene Generation

  

Co Contestable Cus Custo tomers

  

BUSINESS MO MODEL Pow

• wer Purc

urchase Agr greements/ Power Supp upply Agre reements (PP PPAs/PSAs)

  

Spot

• t Ma

Mark rket t (WESM)

  

Anc ncillary Serv ervices Pro rovider Agre reement t (AS ASPA PA)

  

Fee eed-in in-Tarrif (FiT FiT)

  

DOE Dep epartment Orde der No No.: .: DC20 C2016-04 04-0004 0004 Providing timeliness for compliance with the full implementation of retail competition and open access in the Philippine Electric Power Industry

April 21, 2016

ER ERC Re Resolution No No. . 10, 0, Se Series of 2016 016 A Resolution adopting the revised rules for contestability

May 26, 2016

ER ERC Re Resolution No No. . 11, 1, Se Series of 2016 016 A Resolution imposing restrictions on the operations of distributed utilities and retail electricity suppliers in the competitive retail electricity market

May 26, 2016

Regulations governing retail competition and

• pen access (RCOA)

28 Breaking into New Markets

WHERE THE CONTESTABLE CUSTOMERS ARE …

Based on Nov 2016 List published in www.buyyourelectricity.com.ph

Contracted with RES vs. Still being Served By DU

Definition of Terms…

• "Contestable Customers" defined as an electricity end-

user that has a choice of a supplier of electricity, as may be determined by the ERC. They are presently the following:

• Jun. 26, 2016 – Voluntary compliance for those below

1 MW to greater than 750 KW

• Dec. 26, 2016 -- Mandatory compliance for those w/

1MW and greater

• Jun. 26, 2017 – Mandatory compliance for those

below 1 MW to greater than 750 KW

• “Retail Competition” means that eligible electricity

customers (or retail customers) may themselves contract for the supply of electricity with authorized suppliers, rather than through the franchised distribution utility.

• “Open Access”, on the other hand, means that retail

electricity customers and suppliers of electricity may also contract with the transmission company and the distribution company for the “wheeling” or delivery of energy/electricity through the transmission

• r

distribution wires.

OPEN ACCESS IS THUS THE MEANS BY WHICH RETAIL COMPETITION IS ACHIEVED.

Contracted with RES Remains with DU

~2,345 MW 1,104 Customers ~1,524 MW 491 Customers Total Qualified Co Contestable Cu Customers 1,5 ,595 1 MW 1,213 With Retail Supply Contract 489 Who have not switched (Luzon) 587 Who have not switched (Visayas) 137 750 kW 382 With Retail Supply Contract 2 Who have not switched (Luzon) 339 Who have not switched (Visayas) 41

KEY TAKEAWAYS

30 Key Takeaways

KEY TAKEAWAYS

TURBINE RETROFIT REINFORCED COOLING TOWER



EDC commissioned its first solar rooftop project in the Philippines and continues to seek further opportunities to expand its solar utility space



EDC competes in the new market segments [FiT based, Retail Competition and Open Access (RCOA) and Ancillary Services] created with EPIRA and RE Law’s passage

Bre Breaking into nto New ew Mar arkets

EDC REMAINS COMMITTED TO GROW ITS GEOTHERMAL BUSINESS OVERSEAS AND PAY CASH DIVIDENDS TO ITS SHAREHOLDERS



EDC proactively invests in both typhoon resiliency and equipment reliability uprating initiatives to deter operational upsets, in the process lowering unit costs and delivering on ‘financial predictability’.



EDC commits to contract its WESM exposure and to implement cost management initiatives given that a low margin environment is expected to persist.

 EDC deliberately manages financial risks by entering into project financing for new investments, hedging of US Dollar debt, and

refinancing bullet maturities to amortizing type loan

 EDC comfortably remains within covenanted debt ratios despite the increase in leverage

Add ddressin ing Risk Risk Fa Fact ctors

SOLAR ROOFTOP

END OF PRESENTATION

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