Company Presentation April 2017 DISCLAIMER This presentation - PowerPoint PPT Presentation

Company Presentation April 2017

DISCLAIMER 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.

7 Com ompany Intr Introductio ion EDC is part of the Lopez group of companies … the world’s largest vertically -integrated geothermal company, delivering clean and renewable energy 8 Brief Overview - FPH, 9 Summary of Operating Assets, 10 Business Model, 11 Contract Tenor, 12 Portfolio Expansion, 13 Risk Factors & Initiatives Hig ighlights of of th the Pre resentation 15 Add ddressin ing Risk Fa Factors rs 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 16 Reduce Spot Market Exposure, 18 Improve Equipment Reliability and Resiliency, 20 Manage Debt and FX Exposure 25 Bre reaking into New Mark rkets EDC currently focusing on solar. Company also see breaking into the contestable markets as key to further reducing WESM exposure 26 Solar business expansion, 27 Contestable Customers 29 Key Takeaways EDC to continue with initiatives to promote earnings predictability, to explore new prospects opportunistically, and to keep its dividend policy.

COMPANY INTRODUCTION

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 POWER GENERATION Php101.04B Leading power producer with distinct assets that utilize indigenous, clean and/or renewable fuels USD2.13B supplying 17% of Philippine requirements. FPH’s consolidated revenues for 2015 PROPERTY Php12.17B Leading residential, commercial, and office building USD0.26B developer as well as the largest contiguous industrial FPH’s consolidated net park in the Philippines. income for 2015 MANUFACTURING Php340.89B Pioneer and leader in electrical manufacturing in the USD7.19B Philippines Total assets in 2015 CONSTRUCTION & ENERGY SERVICES One of the leaders in power and energy facilities construction 8 Company Introduction

TODAY EDC IS A DIVERSIFIED RENEWABLE ENERGY COMPANY TOP 5 GEOTHERMAL COMPANIES 150.0 MW Burgos CAPACITY (in MW) 1 1 1 COMPANY STEAM PLANT 6.82 MW Burgos 1 1 EDC 1 120.0 MW Pantabangan 1,169 1,169 12.0 MW Masiway 2 Comision Federal de Electricidad 958 958 1 120.0 MW Bacman I 20.0 MW Bacman II 3 Enel Green Power 915 915 112.5 MW Tongonan 2 1 4 Chevron ~800* ~400 * 3 112.5 MW Palinpinon I 60.0 MW Palinpinon II* 5 Ormat 689 749 1 125.0 MW Upper Mahiao 1 232.5 MW Malitbog Source: Bertani, Ruggero, 2010: Geothermal Power Generation in the World 2005-2010 Update Report 180.0 MW Mahanagdong Note: * net attributable MW 50.9 MW Optimization 1 2 49.4 MW Nasulo 2 52.0 MW Mindanao I 3 54.0 MW Mindanao II 3 2 Note: *20 MW Nasuji Power Plant placed on preservation 3 Wind Geothermal (EDC Subsidiary) Hydro Geothermal (Integrated) Solar EDC IS THE LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY 9 Company Introduction

EDC’S BUSINESS MODEL POSSESSES STABLE AND PREDICTABLE CASH FLOWS % of Consolidated USD Customers Revenues (1 ) Linkage Cashflow 38% Electricity 73% National Power Geothermal Electricity Corporation Power Purchase Agreements Sovereign off-take Power Purchase Agreements (PPAs) Cashflow or Cashflow Bac-Man Dividends Steam Geothermal Electricity Steam Sales Agreements (SSA) Cashflow or Electric Cooperatives/ 54% Electricity 0% Cashflow Green Core Dividends Third party customers/ Geothermal Steam Electricity NGCP/ WESM Commercial off-take Geothermal Resources Sales Contracts (GRSC) Cashflow FG Hydro Dividends Electricity & Ancillary Svcs. Power Supply Agreements Power Supply Agreements (PSAs) Ancillary Services Provider Agreement (ASPA) Cashflow 8% Electricity 60% Burgos Wind Dividends Electricity Feed-in-Tariff Transco Cashflow Solar Electricity Subsidiaries Cashflow Energy Flow (1) As of Dec. 31, 2016 of EDC 10 Company Introduction

EDC’S EXPOSURE TO THE SPOT MARKET PRICES IS ONLY 10% TERM STRUCTURE OF CONTRACTS (1) In PHP Millions SPOT 90% revenue from >21 YRS 10% long-term 17% contracts 1-2 YRS WESM, 3,258 12% DU, 5,725 NGCP, 773 75% revenue from DU, 4,580 contract tenors 11-20 YRS 3-5 YRS Transco, 2,822 of >6 yrs 10% 3% 34,236 DU, 4,179 43% expanded revenue base from contracted NPC, 12,897 commercial clients 6-10 YRS SPOT 1-2 YRS 3-5 YRS 6-10 YRS 11-20 YRS >21 YRS 48% 10% - - - - - WESM NGCP - 2% - - - - - 10% 3% 11% 2% 17% DU NPC - - - 37% - - (1) Consolidated revenues as of December 31, 2016 TRANSCO - - - - 8% - 11 Company Introduction

HOWEVER, REPORTED EARNINGS HAVE BEEN VOLATILE 638 770 1,181 1,331 1,262 1,262 1,262 1,446 1,455 1,458 513 132 411 150 (69) 0 0 184 9 2.66 - 49.4 MW + 49.4 MW + 132.0 MW + 106.0MW + 150 MW + 49.4 MW + 5.0 MW + 2.66 MW • Acquired geothermal concessions N.Negros Pantabangan- Mindanao BacMan I & II N. Negros overseas Nasulo Bacman Burgos Solar - 20.0 MW - 20.0 MW Nasuji + 463.4 MW Masiway I & II Unit 2 + 305.0 MW + 150.0 MW + 4.16 MW Mahanagdong, Botong Malitbog & Palinpinon & Burgos Burgos Solar + 5.0 MW Optimization Tongonan Bacman EDC TODAY Unit 1 Cumulative MW Current MW (AS AS OF OF FY FY 2016) 6) 2007-2016 ( CAGR ) RE REVENUES 34,360 34,236 Customer Base MW cum 9.6% Revenues 6.8% 30,867 14.5 Bn DUs EBITDA 8.1% 12.9 Bn NPC 28,369 RNIA 4.4% 3.2 Bn WESM 25,656 24,540 2.8 Bn TransCo 24,153 EB EBITDA 0.8 Bn NGCP 20,678 20,736 20,527 19,007 18,680 17,922 17,330 Technology 15,641 13,748 13,238 1,169 MW Geothermal 11,859 10,712 10,324 150 MW Wind RN RNIA 132 MW Hydro 6.82 MW Solar 9,197 9,155 8,798 8,522 7,276 6,638 6,568 Geography 6,243 5,690 4,459  Philippines  Chile  Indonesia  Peru 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 12 Company Introduction