COMPANY PRESENTATION Non-Deal Road Show in Hong Kong BofA/ML June - - PowerPoint PPT Presentation

COMPANY PRESENTATION

Non-Deal Road Show in Hong Kong – BofA/ML June 1, 2015

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

Geothermal Potential

Mexico: 2,500 MW Online: 950 MW

+ 30 MW

Bacman 3 NTP in 2015

Domestic Growth

Notice to proceed to an EPC contractor is targeted by 3Q 2015 for Bacman 3. Also, construction of Bacman 4 and 5 for ~60MW in aggregate has been programmed for 2016 and 2017, respectively.

Wind and Solar Energy

Centerpiece to the growth story is a strategy for technology diversification. EDC is looking to develop more wind energy projects, together with pioneering efforts for solar energy.

International Expansion

EDC is targeting 400 to 500 MW over the next 10 years in the resource rich Latin America, with its attractive portfolio of early stage geothermal assets.

Company Updates Review 1Q 2015 Financial Results Key Investment Highlights

CONTENTS

8 Investment Summary, 9 Domaine Expertise, 10 Cornerstone Investors, 11 EDC’s Business Model, 12 Contract-based Cash Flows, 13 Track Record for Growth, 14 Favorable Industry Dynamics, 15 Managing Financial Risks, 16 Dividend Policy 18 1Q 2015 Significant Events, 19 Recurring Net Income, 20 Financial Ratios 22 EDC’s Growth Agenda, 23 Bacman Growth Projects, 24 Mindanao 3, 25 Wind and Solar Energy, 26 Update on Latin America Expansion

Key Takeaways

Costa Rica: El Salvador: Guatemala: Nicaragua: 200 MW 150 MW 200 MW 300 MW Online: 475 MW Peru: 3,000 MW Chile: 1,400 MW Online: 0 MW

KEY INVESTMENT HIGHLIGHTS

8 Key Investment Highlights

Wind concessions acquired with ~543 MW capacity

TOP REASONS FOR INVESTING IN EDC -- A GLOBAL DIVERSIFIED RENEWABLE POWER COMPANY

100%

Successfully acquired power plants inside its geothermal concessions

1 of 11 light bulbs

EDC accounts for 9%

• f the Philippine’s

electricity production

Largest vertically integrated geothermal company globally

Domaine Expertise Contract-based Cash Flows Track Record of Growth Favorable Industry Dynamics Strong Credit & Investment Profile

Into geothermal, hydro & wind and now diversifying into solar energy

YEAR

2031

Concession agreements start expiring

5

RE Act of 2008

Provides regulatory support  10% Income Tax  7-year ITH  Feed-in-Tariff (FIT)

Geothermal is

11%

• f Installed

capacity 1Q 15 Highlights Revenues Php8.5 billon RNI Php2.7 billion EBITDA Php5.4 billion Revenue derived from contract tenors

• f greater than

6 years

65%

84%

Revenue derived from long-term contract agreements

Concessions acquired in Chile & Peru

Managing Financial Risks 

Interest rate on

81% of loans

are fixed

 30% of

revenues are US$ indexed

 5.1 yrs. loan life  5.7% Interest

cost

Geothermal provides

13%

• f electricity production

in the Philippines

Robust Growth

Domestic Expansion

 Install 137MW of geothermal capacity

Overseas Expansion

 Drill wells in Mariposa, Chile by 2015

10

9 Key Investment Highlights Plant Type Manufacturer

150.0 MW Burgos Wind Vestas 4.16 MW Burgos Solar Juwi 120.0 MW Pantabangan Hydro Andritz 12.0 MW Masiway Hydro Toshiba 120.0 MW Bacman I Geothermal Toshiba/Alstom 20.0 MW Bacman II Geothermal Mitsubishi 112.5 MW Tongonan Geothermal Mitsubishi 112.5 MW Palinpinon I Geothermal Fuji 60.0 MW Palinpinon II* Geothermal Fuji 125.0 MW Upper Mahiao Geothermal GE/Ormat/Kato 232.5 MW Malitbog Geothermal Fuji 180.0 MW Mahanagdong Geothermal Toshiba 50.9 MW Optimization Geothermal Various 49.4 MW Nasulo Geothermal Fuji 52.0 MW Mindanao I Geothermal Mitsubishi 54.0 MW Mindanao II Geothermal Mitsubishi 1 1 1 2 3 3 Note: *20 MW Nasuji Power Plant placed on preservation

1,455 MW

1,169MWGeothermal 150MWWind 132MWHydro 4.16MWSolar

% share

7% of Installed Capacity 9% of Electricity Produced

EDC

AT A GLANCE

2

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 1,329 887 * 5 Ormat 689 749

Source: Bertani, Ruggero, 2010: Geothermal Power Generation in the World 2005-2010 Update Report Note: * Not included is the 442 MW operated by the Indonesian Government through PLN

TOP 5 GEOTHERMAL COMPANIES

EDC IS THE LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY

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

Offices

• Philippines Chile
• Indonesia
• Peru

1 1 1 2 3 1 3 2

1

1

1

10 Key Investment Highlights

EDC GENERATES STRONG AND ROBUST CASHFLOWS AT BOTH PARENT AND SUBSIDIARY LEVELS

First Gen Hydro Power Corporation (FGHPC)

120.0 MW Pantabangan 12.0 MW Masiway

60% EDC Wind Energy Holdings Inc. 100%

EDC Hong Kong Limited

100% EDC Geothermal Corporation (EGC) 100%

172.5 MW Palinpinon (2) 112.5 MW Tongonan

Green Core Geothermal

• Inc. (GCGI)

100%

115.0 MW Bac-Man I 20.0 MW Bac-Man II

Bac-Man Geothermal

• Inc. (BGI)

100%

(1)

(1) Formerly First Luzon Geothermal Energy Corporation (FLGEC) (2) 20 MW Nasuji Power Plant to be placed in preservation

Lopez Group

IFC GIC Public

E: 50.18 % V: 50.59% E: 1.69 % V: 1.12 % V: 3.33 % E: 4.99 % V: 44.96 % E: 43.14 %

EDC Burgos Wind Power

• Corp. (EBWPC)

150.0 MW Burgos

International Expansion

• Chile
• Peru
• Indonesia

100% 95/100%

EDC Parent(3) 439 41% EGC 1,693 62% FGHPC 602 22% EDC Parent (3) 1,807 39% EGC 2,544 47% FGHPC 914 17% EBWPC 164 3% EDC Parent 3,285 (3) 39% EGC 3,916 46% FGHPC 1,044 12% EBWPC 253 3%

(2) All figures in PHP millions as of Mar. 31, 2015. EBWPC’s Net Income Loss (Php175MN)

included as part of EDC Parent

(3) EDC Parent figures include the Company’s other subsidiaries

8,498

EBITDA (2) as of Mar. 2015

5,428

Net Income (2) as of Mar. 2015

2,734

Revenues (2) as of Mar. 2015

• 747.96 MW Power Plants

 588.4 MW Unified Leyte Power Project  106.0 MW Mindanao Power Project  49.4 MW Nasulo Power Project  4.16 MW Burgos Solar Project

11 Key Investment Highlights

Transco Electric Cooperatives/ Third party customers

POSSESSES STABLE AND PREDICTABLE CASH FLOWS

Subsidiaries of EDC

National Power Corporation

Power Supply Agreements (PSAs) 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

Percentage of Consolidated Revenues (1)

USD Linkage

Electricity 34% 73%

Sovereign off-take

Electricity 63% 0%

Commercial off-take

Electricity 3% 60%

Feed-in-Tariff

(1) As of March 31, 2015

12 Key Investment Highlights WESM, 1,326 NGCP, 382 DU, 1,267 NPC, 2,926 DU, 2,344 Transco, 253 SPOT 16% 1-2 YRS 16% 3-5 YRS 3% 6-10 YRS 45% 11-20 YRS 5% >21 YRS 15%

8,498

LIMITED EXPOSURE TO VOLATILE SPOT MARKET

LONG-TERM CONTRACTUAL AGREEMENTS

(1) Consolidated revenues as of Mar. 31, 2015

TERM STRUCTURE OF CONTRACTS(1) In PHP Millions

2031 Geothermal Renewable Energy Service Contract CONCESSION Power Purchase Agreements (sovereign) Power Supply Agreements (commercial) ELECTRICITY 2022/24 2040

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

16%

• NGCP
• 4%
• DU
• 12%

3% 11% 5% 12%

NPC

• 34%
• TRANSCO
• 3%

2031

year concession agreements start expiring

84%

revenue from long-term contracts

65%

revenue from contract tenors

• f >6 yrs

43%

expanded revenue base from non-NPC clients

13 Key Investment Highlights

SIGNIFICANT PORTFOLIO EXPANSION SINCE PRIVATIZATION

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

2007 2008 2009 2010 2011 2012 2013 2014 2015

REVENUES EBITDA RNIA

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

513 132 411 150 (69) 184 9

+ 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 2 + 5.0 MW Bacman Unit 2 + 4.16 MW Burgos Solar Cumulative MW Current MW

Customer Base

2.9 Bn NPC 3.6 Bn DUs 1.3 Bn WESM 0.4 Bn NGCP 0.3 Bn TransCo

Technology

1,169 MW Geothermal 150 MW Wind 132 MW Hydro 4.16 MW Solar

Geography

• Philippines  Chile
• Indonesia
• Peru

EDC TODAY

(AS OF 1Q 2015)

2007-2014 (CAGR)

Revenues 7.2% EBITDA 8.2% RNIA 5.7%

14 Key Investment Highlights

Geothermal 13% Hydro 13% New Re 0% Coal 43% Natural Gas 25% Oil 6%

2013 POWER STATISTICS OF THE PHILIPPINES

Source: DOE

11%

Geothermal

as a % of Installed Capacity

13%

Geothermal

as a % of Electricity Production

Fuel Type Installed Capacity (MW) Coal 5,568 Hydro 3,521 Oil 3,353 Geothermal 1,868 Natural Gas 2,862 New RE 153

Total 17,325

GEOTHERMAL ENERGY IS A STRATEGIC ENERGY RESOURCE FOR THE PHILIPPINES

Renewable 26% Conventional 74%

• 2,000

4,000 6,000 8,000 10,000 12,000

Geothermal Coal Natural Gas Hydro Oil Based/Gas Turbine

5.60–7.60 P/kWh 4.22 P/kWh 3.68 P/kWh 4.80–5.00 P/kWh 1.87 Php/kWh(2) 5.16 Php/kWh 14.14Php/kWh

2013 Peak Demand: 8,283 MW 2013 Required Reserve: 10,105 MW

• Ave. dependable capacity (MW)

LUZON DISPATCH AT FULL COST (1) WITH VAT

NOTES: 1) Quoted production costs were derived from estimated weekly cost of Luzon grid power plants at 83% capacity factor as of August 29 2013, VAT inclusive 2) Despite P 1.87/kWh production cost, hydro capacity is still used for peaking because these are not run-

• f-river types used for base load. Only Casecnan is run-of-river

15 Key Investment Highlights

RECENT INITIATIVES WILL RESULT IN PHP0.4B SAVINGS FOR INTEREST EXPENSE

LOANS BY CURRENCY US$ indexed revenues provide natural hedge DEBT MATURITY PROFILE1 Sculpted to support EDC’s growth trajectory LOANS BY STRUCTURE Predominantly fixed debt matches nature of energy projects

Average Loan Life (Years)

5.1 yrs

Average Interest Cost

5.7%

LOANS

USD1,659 USD1,659

Type Currency Outstanding (MM) Repayment Interest Tenor (Years) Maturity 175MM Club2 USD 123.0 Amortizing LIBOR+1.75% 6 2017 80MM Club USD 77.0 Amortizing LIBOR+1.80% 5.25 2018 Reg S Bonds USD 300.0 Bullet 6.50% 10 2021 PF – ECA USD 139.0 Amortizing LIBOR+0.90% 15 2029 PF – USD Com USD 36.0 Amortizing LIBOR+0.90% 15 2029 IFC Loan 1 PHP 2,903.0 Amortizing 6.07%3 15 2023 IFC Loan 2 PHP 2,760.0 Amortizing 6.66% 15 2025 PHP FXCN PHP 6,825.0 Amortizing 5.25%5 10 2022 PHP Bonds PHP 12,000.0 Bullet 8.64%, 9.33% 5.5, 7.0 2015, 2016 PHP Bonds PHP 7,000.0 Bullet 4.16%, 4.73% 7.0, 10.0 2020, 2023 GCGI Loan PHP 8,500.0 Amortizing 5.25% 7 2022 PF - PHP Com PHP 4,050.0 Amortizing PDST – R1 +Margin4 15 2029

(1) In USD Millions as of March 31, 2015 (4) Margin: 200 bps + (PDST-F minus RDST-R1). Re-pricing on the 10th year (2) USD65 MM converted to PHP via Cross Currency Swap (5) Amended interest rate (3) Subject to re-pricing

50 100 150 200 250 300 350 400 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 USD Debt PHP Debt

Fixed 1,373 83% Floating 286 17% USD 586 35% PHP 1,073 65% USD Linked Revenues 213 30% PHP Revenues 508 70%

16 Key Investment Highlights

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

Dividend Policy Statement

At or about 30% of previous year’s Recurring Net Income subject to i) debt service requirements and loan covenants, and ii) the implementation of business plans, operating expenses, budgets, funding for new investments and acquisitions, appropriate reserves and working capital. 1,485 1,875 1,863 2,250 3,000 1,875 1,500 1,875 1,875 2,175 750 1,500 1,875

30% 65% 33% 31% 45% 58% 36% 58% 20%

0% 10% 20% 30% 40% 50% 60% 70% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2007 2008 2009 2010 2011 2012 2013 2014 2015

PHP Million

Dividends on Common Shares

Special Regular Payout Ratio PHP/share 0.099 0.27 0.125 0.120 0.160 0.140 0.160 0.200 0.10 Yield 1.7% 4.4% 3.3% 2.4% 2.7% 2.4% 2.6% 3.1% 1.1%

* Based on closing price as of March 6, 2015

REVIEW OF 1Q 2015 FINANCIAL RESULTS

18 Review of 1Q 2015 Financial Results

SIGNIFICANT EVENTS THAT AFFECTED YTD 1Q 2015 FINANCIAL RESULTS

Burgos Wind

 Reported net loss mainly due to depreciation & interest on loan

(P175M) Nasulo

 Reported revenue from commercial operation (P374M)

Bacman

 Higher revenue contribution mainly from Unit 2’s operation

(P499M)

19 Review of 1Q 2015 Financial Results

RNI INCREASED BY 14% MAINLY DUE TO HIGHER REVENUES

In PHP Billions

+14.0%

*Includes UL strips of energy

2.37 2.71 2.46

0.52 0.25 0.05 (0.11) (0.20) (0.18) 0.01 (0.25)

RNI,

• Mar. 2014

BGI Nasulo FG Hydro Others Pal-Tong Burgos Wind Unified Leyte* RNI,

• Mar. 2015

NCI RNI Attributable to EDC

2.89 3.14 3.19 3.20 3.00 2.82 2.71

20 Review of 1Q 2015 Financial Results

Decreased because of higher current liabilities due to the reclass of the P8.5B Peso Bonds which will mature on June 2015. Increased mainly due to higher debt from EBWPC and GCGI loans availed in October 2014 and March 2015, respectively. Improved because of higher annualized EBITDA.

1Q 2014 1Q 2015

2.41 1.60

Current Ratio

1Q 2014 1Q 2015

1.60 1.76

Debt-to-Equity

1Q 2014 1Q 2015

2.91 2.86

Net Debt-to-EBITDA*

NET DEBT-TO-EBITDA IMPROVED WHILE BOTH CURRENT RATIO AND NET DEBT-TO-EQUITY WEAKENED

*Trailing 12 months

COMPANY UPDATES

22 Company Updates

EDC’S GROWTH AGENDA

 305 MW Palinpinon-

Tongonan acquired in 2009

 130 MW Bacman

acquired in 2010

• Bid for Unified Leyte IPPA

in 2014

 Bid for Mindanao 1 & 2

IPPA in 2014

 150 MW Burgos Wind

commissioned in 4Q’14

 4.16MW Burgos Solar

commissioned in 1Q’15

• Wind measurement

studies is on-going in 9

• ther concessions

 Granted 5 concessions &

19 pending applications in Chile & Peru

 Established local offices

in LatAm and Indonesia

• Drill wells in

Mariposa, Chile by 2015

• Continue to prospect

prime geo sites

1 2 3 4

ACQUIRE DEVELOP CONQUER DIVERSIFY

Win key government geothermal privatization projects Install 137MW

• f local geothermal

capacity to address new demand Establish viable

• perations in

Asia, Latin America, and Africa Build 200MW

• f wind

capacity, while expanding RE portfolio

 49.37 MW Nasulo

commissioned in Sept. 2014

• 6 MW NNGP Plant

development is on-going

• 137 MW for

commissioning by 2018

2015 STATUS 2015 STATUS

23 Company Updates

EDC IS GEARING UP TO AWARD THE NOTICE TO PROCEED FOR THE 30MW BACMAN 3 PROJECT

*Capacities are indicative and subject to confirmation

BACMAN 1 120 MW BACMAN 2 20 MW BACMAN 5 BACMAN 3 BACMAN 4

Project Capacity COD

Bacman 3 30 MW 2017 Bacman 4 17 MW* 2018 Bacman 5 40 MW* 2019

24 Company Updates

STUDIES FOR A THIRD PLANT IN THE MT. APO CONCESSION AREA ARE ON-GOING; CONSTRUCTION IS EXPECTED TO START IN 2016

M3 M1 48MW M2 49MW

Site Location

• 1. NNGP

Negros Island

• 2. Dauin

Negros Island

• 3. Mandalagan

Negros Island

• 4. Ampiro

Mindanao

• 5. Balingasag

Mindanao

• 6. Lakewood

Mindanao

• 7. Zion

Mindanao EDC is applying for permits and checking the resource in other concession areas:

Project Capacity COD

M3 40MW* 2018

*indicative capacity and subject to confirmation

25 Company Updates

50 MW

Initial Installation Target  Fully Allocated 22 MW* is already taken

 22 MW San Carlos Solar  10 MW Pampanga Solar  4.16 MW Burgos Solar  41.3 MW Cavite Economic Zone Solar

Php9.68/kWh

Feed-in-Tariff

450 MW

Additional

Php8.69/kWh

Feed-in-Tariff

Installation Target (2nd round):

423 MW

Available for award

* At Php9.68/kWh FiT

Installation Target (2nd round):

200 MW

Initial Installation Target  Fully Allocated

Php8.53/kWh

Feed-in-Tariff

200 MW

Endorsed by DOE to ERC Feed-in-Tariff still to be determined

150 MW

Available for award

NEW ROUND OF WIND AND SOLAR ENERGY INSTALLATION TARGETS OPEN-UP NEW AVENUES FOR GROWTH

50 MW* is already taken  150 MW Burgos Wind  81 MW Caparispisan Wind (UPC-Ayala)  18.9MW Bangui Bay Wind (Northwind) Projects Completed or Near Completion

• 50 MW Nabas
• 54 MW San Lorenzo
• 54 MW Pililla

* At Php8.53/kWh FiT

26 Company Updates

EDC IS INITIALLY TARGETING 400-500 MW IN LATAM OVER THE NEXT 10 YEARS

*Sources: Gov’t figures, Consejo Geotérmico, EDC

• Priority and strong geothermal focus for Chile and

Peru

• Opportunistic M&A and greenfield development

for other countries

• Opportunistic approach for other RE technologies
• Active search for multi-lateral programs to help

mitigate risks and bridge financing requirements

Geothermal Potential*

EDC AND ENEL ARE THE ONLY ACTIVE PLAYERS IN THE REGION; WE SEE CFE, ORMAT AND LA GEO AS POTENTIAL PARTNERS COMPANY CAPACITY FOOTPRINT EXPANSION INTEREST ACTIVE

EDC 1,169 MW Chile, Peru Nicaragua, Mexico YES CFE 958 MW Mexico Domestic YES Enel 915 MW Chile, Peru Mexico YES Ormat 749 MW Guatemala, Honduras, Chile Mexico, etc. YES La Geo 199 MW El Salvador Chile, Peru YES MRP 467 MW Chile Pulling out NO

EDC HAS A CLEAR AND FOCUSED STRATEGIC APPROACH TO ACHIEVE TARGETS

Mexico: 2,500 MW Online: 950 MW Costa Rica: El Salvador: Guatemala: Nicaragua: 200 MW 150 MW 200 MW 300 MW Online: 475 MW Peru: 3,000 MW Chile: 1,400 MW Online: 0 MW

COMPETITION LANDSCAPE

27 Company Updates

KEY EARLY STAGE PROSPECTS IN CHILE AND PERU HOLD GEOTHERMAL POTENTIAL OF > 800MW

Prospect Temp (deg C) Resource Probability Area (km2) MWe Achumani Project (Peru) 250-320 P90 7 70 P50 26 260 P10 70 700 Quello Apacheta Project (Peru) 220-240 P90 6 55 P50 17 168 P10 49 487 Tutupaca Project (Peru)*

*Under EDC application

220-290 P10

• P50

27 270 P10 40 400 Mariposa Project (Chile) 250-290 P90 10 35 P50 15 105 P10 21 280

Achumani

(10,800has)

Pinchollo Libre

(10,800has)

Quello Apacheta

(12,600has)

PLANNED DRILLING PROGRAMS ARE TO TEST AND PROVE RESOURCE ESTIMATES

* Peru: Achumani and Quello Apacheta (from HRL acquisition) and Pinchollo Libre (From Alterra JVA) Chile: Laguna del Maule and Pellado (both comprise the Mariposa project from Alterra JVA)

Company (Entry into LatAm) Granted Sites* Applications Peru Chile Peru Chile JV with Alterra Power Corp 1 2 8 Acquisition of Hot Rock Ltd 2 3 EDC Applied/Bid Sites 4 4 TOTAL 3 2 15 4

Pellado

(16,000has)

Laguna del Maule

(4,000has)

Peru

28 Company Updates

EDC WILL TAP VARIOUS MULTILATERAL FINANCING PROGRAMS THAT PROMOTE GEOTHERMAL DEVELOPMENT

• Pilot program for Chile with intention to roll out to other countries
• USD 50-75 MM available to finance up to 3 projects
• Loan to grant in case of failure
• To be launched in late 2015
• EUR 60 MM so far
• Loan to grant in case of failure

MARIPOSA SHORT-LISTED FOR UP TO US$ 17.7M

Geothermal Development Fund (GDF) for Latam

• US$ 1 billion facility for Latam geothermal projects
• Launched during COP20 in Lima last Dec 2014
• Multi-donor initiative: KFW, IDB, European Commission, Development Bank
• f Latin America (CAF), European Investment Bank (EIB), Agence Francaise

de Developpement (AfD), Japan International Cooperation Agency (JICA),

• ther MLIs
• To provide grants for surface studies, contingency grants for exploratory

drilling, bridge/ investment financing lines

29 Company Updates

FROM ITS FIRST EXPLORATORY ACTIVITIES IN 2009, EDC IS NOW ON TRACK TO DRILL ITS FIRST GEOTHERMAL WELL IN LATAM...

2009 2011 2012 2013 2014  1st trip to Chile  1st trip to Peru  Chile office  3 Sites Awarded  HRL JV  1st 3G Surveys  HRL Purchase  Peru office  Alterra JV

 Pre-drilling activities in Mariposa

30 Company Updates

Roads for MUB, PLA & PLE

... PRE-DRILLING WORKS IN MARIPOSA (CHILE) ARE ALMOST COMPLETE, AND DRILLING IS TARGETED AT THE START OF SUMMER IN OCTOBER 2015

30 sq. Km. EDC MT Water Supply Lines Well pads Mariposa Lake El Zorro Lake Water Reservoir Expanded Base Camp 26 km road network Alterra Slim Holes 6 km new road

PLC PLE PLA MUB

Legend:

Platforms MUB, PLA, PLE Surface Casing (3 pads)

TARGET COMMERCIAL OPERATIONS DATE (COD) FOR THE FIRST 50 MW IS 2019, AND FOR NEXT 50 MW BY 2021

COMPLETED WORKS

31 Company Updates

IN PERU, EDC HAS COMPLETED ITS SURFACE STUDIES AND IS IN THE EIA AND PRE-DRILLING STAGES

ACHUMANI PINCHOLLO LIBRE

32 Company Updates

EDC HAS CONTINUED TO BUILD ITS LEADERSHIP AND LOCAL SUPPORT TEAMS TO ENSURE SUCCESSFUL PROJECT EXECUTION

Carlos Niño-Neira Country Manager - Peru Tim Smith Drilling Manager – Chile Andrew Whittome Chief Drilling Advisor EDC Philippines Agnes de Jesus Chief Sustainability Officer, FPH Dominic Camu Senior Vice President Power Generation Joeffrey Caranto Exploration and Resource Manager - LatAm Ernesto Rivas Drilling Superintendent- Chile Arman V. Lapus Managing Director-LatAm Manuel Ogena Senior Vice President GREG – EDC Philippines Erwin Avante Vice President, Finance – EDC Philippines Lian de Castro Business Development Director - LatAm David Sussman Exploration and Resource Consultant-LatAm Tony Gray Project Manager- Chile Ivan Hidalgo Drilling Director- Chile

33 Company Updates

EDC IS WELL-POSITIONED TO REPLICATE ITS PHILIPPINE GEOTHERMAL SUCCESS IN LATIN AMERICA

 Clear and focused strategy for growth  Attractive portfolio of early-stage geothermal assets  Increasing support from multi-lateral agencies to promote, finance and risk-

mitigate geothermal development in the region

 Pioneer EDC project set for drilling in October 2015, other EDC projects to follow

same “template”

 Strong team with extensive experience in geothermal development, community

and regulatory engagement, M&A and financing

KEY TAKEAWAYS

36 Key Takeaways

 EDC’s portfolio of clean energy power generating assets is the largest in the

Philippines today, making EDC the largest integrated geothermal company globally

 EDC’s predominantly contract based revenues provides stable and predictable cash

flows

84% of revenues are derived from long term contract agreements 65% of revenues are derived from contract tenors greater than 6 years ~137 MW of geothermal energy projects for commissioning by 2018 Burgos Wind is country’s largest and EDC is intent in developing additional wind energy projects EDC has embarked on pioneering efforts for

• ther RE technologies,

as in solar energy EDC is initially targeting 400-500 MW in Latin America over the next 10 years

 EDC’s growth story levers of a combined strategy of technology and global

diversification, even as geothermal energy remains to be the company’s core business

KEY TAKEAWAYS

END OF PRESENTATION

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