[PPT] - EDC COMPANY PRESENTATION JANUARY 2015 DISCLAIMER This presentation PowerPoint Presentation

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EDC COMPANY PRESENTATION JANUARY 2015

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This presentation contains certain “forward looking statements.” These forward looking statements include words or phrases such as EDC

r 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

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POWER INDUSTRY OVERVIEW

SLIDE 8

8 Power Industry Overview

INDUSTRY RESTRUCTURING USHERED IN COMPETITION, AS IT ALSO MOBILIZED PRIVATE SECTOR INVESTMENTS

Customers

NPC Distributors

Pre-EPIRA

Customers

GENCO TRANSCO DUs Suppliers

Post-EPIRA

Prior to the EPIRA, the industry was composed of NPC and the

distribution utilities, e.g., Meralco, VECO, Davao Light and Power Company.

NPC, at that time, controlled approximately 90% of the country‘s

installed generating capacity and performed generation and transmission functions.

Today, the industry has transitioned into four sectors — the

deregulated generation and supply sectors and the regulated transmission and distribution sectors.

SLIDE 9

9 Power Industry Overview

Luzon 54,820 73% Visayas 11,100 15% Mindanao 9,347 12% Geothermal 9,605 13% Coal 32,081 43% Natural Gas 18,791 25% Hydro 10,019 13% Oil Based 4,491 6% New Re 279 0%

2013 GROSS POWER GENERATION, BY PLANT TYPE

EDC IS STRATEGICALLY POSITIONED WITH 64% OF ITS CAPACITY SITUATED IN THE VISAYAS

In Luzon

Bulk of generation sources are located in the northern and southern parts of

the Island while the load center is in the Metro Manila area.

Posted an AACGR of 3.29% for the period 2001-2013.
Grid is divided into five island sub-grids: Panay, Negros, Cebu, Bohol

and Leyte-Samar.

The island sub-grids are interconnected by submarine cables: Leyte-

Cebu (2x185 MW), Cebu-Negros (2x90 MW), Negros-Panay (1x85 MW) and Leyte-Bohol (1x90 MW). These cables also provide the capability

f

sharing excess generation between islands to accommodate the Visayas’ growing demand.

Posted an AACGR of 5.90% for 2001-2013, the highest among the

three Grids. The fastest demand expansion has been recorded in DUs in Panay, Cebu and Bohol.

In 2010, Visayas registered its highest single year increase in demand

levels equivalent to 15.3% growth).

In Visayas

Grid is composed of six districts with bulk of power generated in

the northern part of the island and the load centers situated in the southeast (Davao provinces) and southwest (SOCKSARGEN) regions. Power demand from these areas account for ~50% of island’s total.

Posted an AACGR of 3.28% for 2001-2013.

2013 GROSS POWER GENERATION, BY GRID

In Mindanao VISAYAS GRID REGISTERED THE HIGHEST GROWTH RATE IN DEMAND FOLLOWED BY LUZON AND MINDANAO

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SLIDE 11

KEY INVESTMENT HIGHLIGHTS

SLIDE 12

12 Key Investment Highlights

TOP REASONS FOR BUYING INTO EDC -- A DIVERSIFIED RENEWABLE ENERGY POWER COMPANY, NOW GOING GLOBAL

100%

Successfully acquired power plants inside its geothermal concessions

1 of 11 light bulbs

EDC accounts for 9%

f country’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

13

RE Act of 2008

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

Geothermal is

11%

f Installed

capacity YTD 3Q’14 Highlights Revenues Php23.0 billon RNI Php8.0 billion EBITDA (TTM) Php17.2 billion Revenue derived from contract tenors

f greater than

6 years

64%

92%

Revenue derived from long-term contract agreements

Concessions acquired in Chile & Peru

Managing Financial Risks  Interest rate on 81% of loans are

fixed

 44% of revenues

are US$ indexed

 4.9 yrs. loan life  6.6% Interest cost

Geothermal provides

13%

f electricity production

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13 Key Investment Highlights Domaine Expertise

1 1 1 1 2 3 3

TECHNOLOGY & GEOGRAPHICALLY DIVERSE

125.0MW 232.5MW 180.0MW 50.9MW Upper Mahiao Malitbog Mahanagdong Optimization

2 3

112.5MW 60.0MW Palinpinon I Palinpinon II* 112.5MW Tongonan 52.0MW 54.0MW Mindanao I Mindanao II 110.0MW 20.0MW Bacman I Bacman II 120.0MW 12.0MW Pantabangan Masiway 150.0MW Burgos

1 1 1 1 3

Note: *20 MW Nasuji Power Plant placed on preservation

1,441 MW

1,159MWGeothermal 150MWWind 132MWHydro

% share

7% of Installed Capacity 9% of Electricity Produced

EDC

AT A GLANCE

49.4MW Nasulo

2

COMPANY

CAPACITY (in MW) STEAM PLANT

1 EDC

1,159 1,159

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

LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY

Wind Hydro Geothermal (EDC Subsidiary) Geothermal (Integrated)

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14 Key Investment Highlights Contract-based Cash Flows

GENERATES 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%

110.0 MW Bac-Man I 20.0 MW Bac-Man II

Bac-Man Geothermal

Inc. (BGI)

100%

(1)

743.8 MW Power Plants

 588.4 MW Unified Leyte Power Project  106.0 MW Mindanao Power Project  49.4 MW Nasulo Power Project (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 (Under Development)

International Expansion

Chile
Peru
Indonesia

100% 95/100%

EDC Parent(3) 3,290 31% EGC 6,640 63% FGHPC 614 6% EDC Parent (3) 5,801 59% EGC 7,391 75% FGHPC 1,084 11% EDC Parent (3) 6,646 44% EGC 7,294 48% FGHPC 1,465 6%

(2) All figures in PHP millions as of Sept. 30, 2014 (3) EDC Parent figures include the Company’s other subsidiaries

22,982

EBITDA (2) as of Sept. 2014

14,275

Net Income (2) as of Sept. 2014

10,544

Revenues (2) as of Sept. 2014

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15 Key Investment Highlights Contract-based Cash Flows WESM, 1,909 NGCP, 593 DU, 10,370 NPC, 10,111 SPOT 8% 1-2 YRS 21% 3-5 YRS 7% >6 YRS 64%

22,983

LIMITED EXPOSURE TO VOLATILE SPOT MARKET

LONG-TERM CONTRACTUAL AGREEMENTS

(1) Consolidated revenues as of Sept. 30, 2014

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 2022

SPOT 1-2 YRS 3-5 YRS >6 YRS WESM

8%

NGCP
3%
DU
18%

7% 20%

NPC

44%

2031

year concession agreements start expiring

92%

revenue from long-term contracts

64%

revenue from contract tenors

f >6 yrs

45%

expanded revenue base from non-NPC clients

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16 Key Investment Highlights Track Record of Growth

Limited to steam field operations

19,007

25,656

10,324

15,641

8,768

5,633

(+) 125.0 MW

Upper Mahiao

(+) 49.4 MW

N. Negros

(+) 463.4 MW

Mahanagdong, Malitbog, and Optimization

(+) 132.0 MW

Pantabangan – Masiway

Acquired geothermal

concessions overseas

(-) 49.4 MW

N. Negros

(-) 20.0 MW

Botong

(+) 150.0 MW

Bac-Man I & II

(+) 106.0 MW

Mindanao I & II

(+) 305.0 MW

Palinpinon & Tongonan

SIGNIFICANT PORTFOLIO EXPANSION SINCE PRIVATIZATION

STEAMFIELD OPERATOR STEAMFIELD AND POWER PLANT OPERATOR

2007 2008 2009 2010 2011 2012 2006 1976 - 2005

current (MW) 125 512.8 132 411 150 (69.4) 20

cum. (MW)

125 637.8 769.8 1,180.8 1,330.8 1,261.4 1,261.4 1,261.4 1,281.4

2007-2013 (CAGR)

Revenues 5.1% EBITDA 7.2% Net Income 7.1% 2013 2014

(+) 49.4 MW

Nasulo

(-)

20.0 MW Nasuji

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17 Key Investment Highlights Favorable Industry Dynamics

2013 POWER STATISTICS OF THE PHILIPPINES

Source: DOE Geothermal 11% Coal 32% Natural Gas 17% Hydro 20% Oil Based 19% New Re 1% Geothermal 9,605 13% Coal 32,081 43% Natural Gas 18,791 25% Hydro 10,019 13% Oil Based 4,491 6% New Re 279 0%

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-based 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

PRINCIPAL TAX BENEFITS PRIMARY REVENUE & COST INCENTIVES

Income Tax Holiday

(“ITH”) ─ 7-year ITH from start of commercial

peration
10% - Corporate

income tax rate

Note: Subject to guidelines

n pass-on savings for

existing operations

Carbon credits tax

exemption

Income Tax Holiday

(“ITH”) ─ 6 years under Pioneer Status ─ Plus one year bonus

30% - Corporate

income tax rate

Tax on carbon credits

─ 30% income tax and 0% VAT

PREVIOUS NOW

Royalties

─ Steam: Government share is 1.5% of gross margins

0% duties for

Imported materials & equipment

Net operating loss

carryover (“NOLCO”): 3 years

Royalties

─ Steam: Government share is 60% of net proceeds

0% duties for Imported

materials & equipment

Net operating loss

carryover (“NOLCO”): 3 years

OTHER KEY INCENTIVES

Feed-in tariff(1)
Renewable Portfolio

Standard(2)

Green Energy

Option(3)

(1) Feed-in Tariff - A policy designed to accelerate investment in renewable energy technologies by

ffering long-term contracts to renewable energy producers.

(2) Renewable Portfolio Standard - A market-based policy which requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. (3) Green Energy Option - A mechanism that empowers end-users to choose renewable energy in meeting their energy requirements.

RENEWABLE ENERGY ACT OF 2008

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18 Key Investment Highlights Strong Credit & Investment Profile

DELIVERING SUPERIOR FINANCIAL AND OPERATING RESULTS TO STAKEHOLDERS

3,000

6,000 9,000 12,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 9M'14

7,276 7,238 5,245(1) 9,895 7,458(2) 6,400 7,980

RECURRING NET INCOME

6,000

12,000 18,000 24,000 30,000 36,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 9M'14

20,678 24,153 24,551 28,369 25,656 19,783 22,982

CONSOLIDATED REVENUES

1) P1.2 B forgone steam revenues resulting from EDC’s acquisition of the Bacman power plants 2) P2.7 B lower revenues mainly from ancillary services

90% of FY 2013 107% of FY 2013

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19 Key Investment Highlights Strong Credit & Investment Profile

MAINTAINING A ROBUST CREDIT PROFILE (1)

9M '14 9M '13 Dec-13 Dec-12 Dec-11 Dec-10

2.95x 2.26x 2.72x 2.17x 2.95x 2.56x

9M' 14 9M' 13 Dec-13 Dec-12 Dec-11 Dec-10

2.20x 1.58x 2.06x 3.24x 2.14x 2.51x

9M' 14 9M' 13 Dec-13 Dec-12 Dec-11 Dec-10

PHP 34.57 PHP 29.82 PHP 33.71 PHP 29.84 PHP 29.30 PHP 26.47

9M' 14 9M' 13 Dec-13 Dec-12 Dec-11 Dec-10

0.98x 1.03x 1.17x 1.06x 1.32x 1.09x

9M' 14 9M' 13 Dec-13 Dec-12 Dec-11 Dec-10

0.29x 0.37x 0.43x 0.30x 0.33x 0.32x

Notes: (1) Figures computed on a consolidated basis ending Sept. 30, 2014 (2) EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization, Trailing 12 months (3) Debt Service Coverage Ratio = Net Cashflow from Operating Activities / (Short Term Debt + Long Term Debt + Projected Interest Service for the next 12 months) (4) PHP Million per MW

NET DEBT TO MARKET CAPITALIZATION Deteriorated with increase in price per share NET DEBT TO EQUITY Allows for additional fund raising NET DEBT TO EBITDA (2) Well within our targeted 3.6x NET DEBT PER MW POWER (4) Increased with the pre-funding of Burgos Project DEBT SERVICE COVERAGE RATIO (3) Higher than the minimum covenanted 1.2x

1.2x 3.6x

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GROWTH PROJECTS

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22 Growth Projects

Bacman

EDC SUCCESSFULLY DELIVERED ON ITS 2014 STRATEGIC OBJECTIVES

Nasulo Burgos

OUTPUT 968 GWH REVENUES Php4.8 B

 130.0 MW Bacman

geothermal plants have returned to service

OUTPUT 382 GWH REVENUES Php2.0 B OUTPUT 326 GWH REVENUES Php2.8 B

 49.4 MW Nasulo geothermal

plant declares commercial

perations on July 2014

 150.0 MW Burgos wind obtains

DOE’s Certificate of Endorsement (COE) for FIT Eligibility

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23 Growth Projects

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

Wind measurement

studies is on-going in 9 other concessions

Potential 4MW solar

 Granted 13 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 261MW

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

100 MW for

commissioning by 2018 2014 STATUS

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24 Growth Projects

LOCAL GEOTHERMAL PROJECTS WILL BE THE MAIN SOURCE OF GROWTH IN THE MEDIUM TERM

DONE EXECUTION ADVANCED EXPLORATION RESOURCE CONFIRMATION POWER PLANT RETROFIT

1 1 3 1 1 2 5 4 6 7 3

PROJECT CAPACITY

2014 2015 2016 2017

Beyond

2018

Nasulo* 49 MW X Burgos Wind 150 MW X

No. Negros

6 MW X Burgos Solar 4 MW X Bacman 3**

up to 30 MW

X Nasuji

up to 20 MW

X Botong-Rangas** up to 40 MW X Mindanao 3 50 MW X Pagudpod Wind X Bacman 10 MW X Tongonan ~12 MW X Palinpinon ~12 MW X Kayabon 50 MW X Dauin 40 MW X

2

3 4 5 6 7

FRONTIER AREAS

(GEOTHERMAL)

Mandalangan, Negros Occidental Lakewood, Zamboanga del Sur Ampiro, Misamis Occidental Balingasag, Misamis Oriental

Mt. Zion, North Cotabato

Note: *20 MW Nasuji Power Plant placed on preservation **Resource sustainability assessment is on-going

2

2 2 1 1 1 2 3 1 4

4

FRONTIER AREAS

(WIND)

Bayog I (Burgos I) Pagali (Burgos II) Iloilo 1 Iloilo 2 Matnog 1 Matnog 2 Matnog 3 Negros

1 2

2 1

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25 Growth Projects

OVERSEAS EXPANSION - INDONESIA

GRAHO NYABU GEOTHERMAL PROSPECT

Results from EDC’s completed survey activities for Graho Nyabu in Sumatra shall be used by Indonesian Ministry of Energy and Mineral Resources for its upcoming tender of the Graho Nyabu concession Currently, in partnership discussions with a geothermal concession holder for a JV in one of their geothermal sites (~ 220 MW at an ~ US 1.0 billion development cost)

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26 Growth Projects

Company (Entry into LatAm) Granted Sites Applications Peru Chile Peru Chile Alterra Power Corp (2008) 2 2 16 Hot Rock Ltd (2008) 5 1 3 12 EDC Applied/Bid Sites (2009) 3 4 4 TOTAL 7 6 23 16

EDC SEIZED THE OPPORTUNITY AND NOW HOLDS STAKES IN UP TO 13 CONCESSIONS AND 39 APPLICATIONS

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27 Growth Projects

WE ARE NOW EXECUTING AN EXPLORATION DRILLING PROGRAM IN MARIPOSA, ONE OF THE MOST ADVANCED GEOTHERMAL PROJECTS IN CHILE

Exploration Drilling Estimate: USD 30 MM Target COD MAP OF THE REGION GEOTHERMAL RESERVOIR AND DRILLING TARGETS CIVIL WORKS Q4 ‘15 Q2 ‘20 Site Development Budget: USD 15 MM Q1 ‘14

Base Camp 9 Road Rehab Drilling Materials

Santiago Mariposa

ESTIMATES FOR MARIPOSA PUT THE POTENTIAL SIZE OF THE RESERVOIR BETWEEN 50 TO 300 MW

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REVIEW OF YTD 9M 2014 FINANCIAL RESULTS

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30 Review of YTD 9M 2014 Financial Results

FG Hydro

 Adjusted FG Hydro revenues using the ERC mandated re-computation of

Nov. and Dec. 2013 billings (P250M)

UL and Palinpinon

 Received insurance proceeds for property damage due to Typhoon Yolanda

(P379 M) and Typhoon Sendong (P150 M)

NNGP

 NNGP’s impairment recovery, net of 10% tax (P1,847 million)

Bacman

 Reported revenues generated by Units 1, 2 &3 (P2,146 million)

Nasulo

 Reported revenues following declaration of commerciality (P502 M)

Palinpinon

 Nasuji’s foregone NI due to Nasulo’s operation (P263M)

SIGNIFICANT EVENTS THAT AFFECTED YTD 9M 2014 FINANCIAL RESULTS

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31 Review of YTD 9M 2014 Financial Results

6.40 1.49 0.41 0.24 0.10 (0.47) (0.20) (0.17)

RNI,

Sept. 2013

BGBU revenues partly offset by higher opex NIGBU Nasulo's commercial

peration

LGBU higher revenues MAGBU higher revenues partly offset by higher opex FG hydro lower sales, 2013 revenue adj. & higher opex Others int'l subs & Burgos' opex RNI,

Sept. 2014

NCI RNI Attributable to EDC

CONSOLIDATED RECURRING NET INCOME ATTRIBUTABLE TO EDC UP BY PHP1.6 BILLION

6.4B

2013

8.0B

2014

In PHP Billions

Consolidated Recurring Net Income (RNI) increased mainly due

to Bacman and Nasulo revenues, partially offset by higher

perating expenses
BGBU’s revenues increased by P2.1 B, with the commercial operations of

Bacman Units 1, 2 and 3 which was partially offset by higher power plant expenses (previously capitalized).

NIGBU’s (Palinpinon and Nasulo) higher revenues by P0.5 B due to

commercial operations of Nasulo.

MAGBU’s revenues increased due to higher recorded energy sales and the

absence of short fall adjustments partially offset by higher expenses related to steamfield workover drilling.

Partially off-setting the increase are lower revenues from FG Hydro due to

the 2013 WESM adjustment and higher operating expenses.

RNI COMPUTATION 9M 2014 9M 2013 NET INCOME (LOSS) 10,544 5,925 ADD (DEDUCT) NON-RECURRING ITEMS: Foreign Exchange (gain)/loss 180 901 Reversal of impairment loss (2,053) Capitalized borrowing cost (192) Capitalized BGI’s cost of testing (401) Insurance proceeds on property damage due to typhoon Yolanda (529) Gain on sale of PPE (362) Gain on sale of inventory items (120) Write-off of 2006 input VAT claims denied by the Court 219 Income tax provision for (benefits from) non-recurring items 254 (70) Others 66 19 RECURRING NET INCOME 7,980 6,401

RNI

+25.0%

7.89 8.30 8.54 8.64 8.17 7.98 7.98 7.81

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END OF PRESENTATION

www.energy.com.ph

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BACK-UP SLIDES

SLIDE 34

SLIDE 35

TABLE OF CONTENTS (Back-up)

Macroeconomics Philippine Power Industry Key Investment Highlights Typhoon Proofing Cooling Tower Units Growth Projects Review of YTD 9M 2014 Financial Results

36 Philippines Macro Section, 37 Asean Macro Section 38 Government Issued Regulations, 39 DOE Energy Forecast (Mar-Jun 2015), 40 Luzon-Visayas

Supply-Demand Forecast (2013-2014), 41 Mindanao Supply-Demand Forecast (2013-2014)

42 Ranking of Geothermal Companies, 43 Business Model, 44 Operational Statistics, 45 Manpower

and Management Team, 46 CSR, 47 Loans Profile, 48 Financial Highlights, 49 Dividend Policy

50 Phases of Implementation, 51 Engineering Solutions, 52 Install Hurricane Grade CTs, 53 Design & Implement 300 kph Solution 54 Burgos Wind Project, 55 Latin America Expansion 56 Revenues, 57 Cash Balance, 58 Financial Ratios

SLIDE 36

36 Macroeconomics

PHILIPPINES MACRO SECTION

Capital

Manila

Population (2Q’14)

99.7 Million

GDP per capita (2013)

USD 1,581

GDP Growth (2Q’14)

6.4%

Inflation Rate, Headline (Oct. 2014)

4.3%

Unemployment Rate (July 2014)

6.7%

Credit Ratings

BBB - S&P Baa3 - Moody’s

SLIDE 37

37 Macroeconomics

ASEAN MACRO SECTION

55,182 39,659 10,457 5,676 3,510 2,791 1,902 1,594 1,113 1,028

20,000

40,000 60,000 Singapore Brunei Malaysia Thailand Indonesia Philippines Vietnam Laos Myanmar Cambodia

GDP per Capita

(in USD)

Source: IMF World Economic Outlook Database

Countries S&P Moody’s Singapore AAA AAA Brunei No Rating No Rating Malaysia A- A- Thailand BBB+ BBB+ Indonesia BB+ BBB- Philippines BBB Baa3 Vietnam BB- BB- Laos No Rating No Rating Myanmar No Rating No Rating Cambodia B B2 Countries 2010 Population (in ‘000s) Ave Growth Rate 2000-2005 Singapore 5,086 1.7% Brunei 399 2.09% Malaysia 28,401 2.17% Thailand 69,122 1.09% Indonesia 239,871 1.26% Philippines 93,261 2.03% Vietnam 87,848 1.09% Laos 6,201 1.58% Myanmar 47,963 0.06% Cambodia 14,138 1.41%

Source: United Nations Population Division 2010 Source: Trading Economics

SLIDE 38

38 Philippine Power Industry

SINCE NOVEMBER 2013, THE GOVERNMENT ISSUED NEW REGULATIONS THAT AFFECT EDC PROJECTS

Secondary WESM Price Cap

SECONDARY OFFER PRICE CAP OF PHP 6.245/KWH WHEN THE 72-HOUR

AVERAGE WESM PRICE EXCEEDS PHP8.186/KWH

Revised RCOA1 Rules

LIMITS BUY-SELL OF ELECTRICITY BETWEEN AFFLIATED GENERATIO

COMPANIES, RETAIL ELECTRICITY SUPPLIERS AND END-USER CUSTOMERS AT 50%;

RESTRICTED ISSUANCE OF RES LICENSE

FIT-ALL Provisional Approval

FIT TARIFFS FOR SELECTED RENEWABLE ENERGY SOURCES
FIT-ALL PROVISIONAL APPROVAL OF PHP 0.04057 PER KWH

(1) Retail Competition and Open Access (RCOA)

SLIDE 39

39 Philippine Power Industry

DEPARTMENT OF ENERGY FORECASTS ELECTRICITY SHORTAGE BY SUMMER OF 2015

6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 W-9 Mar W-10 Mar W-11 Mar W-12 Mar W-13 Mar W-14 Apr W-15 Apr W-16 Apr W-17 Apr W-18 May W-19 May W-20 May W-21 May W-22 Jun W-23 Jun W-24 Jun W-25 Jun

DOE SUPPLY-DEMAND FORECAST MAR-JUN 2015

Available Capacity less FO Average FO Projeted Demand Regulating Reserve Req't

MW

NOTE: Data sourced from DOE Presentation

W-9 Mar W-10 Mar W-11 Mar W-12 Mar W-13 Mar W-14 Apr W-15 Apr W-16 Apr W-17 Apr W-18 May W-19 May W-20 May W-21 May W-22 Jun W-23 Jun W-24 Jun W-25 Jun

INTERRUPTIBLE LOAD PROGRAM (ILP) 300 MW PLANT/CONTRACT FIT

Mandatory operation of end consumer

gensets to unload the grid;

Additional cost of running gensets will be

spread across electricity consumers;

Total of 438 MW of intending ILP

participants as of 9/25/2014.

Plant purchase/lease of from PHP700 M

to PHP2.8 B per 100 MW;

CAPEX to be subsidized by Malampaya

funds.

Increased FIT allocation for easy- to-set-

up power plants like solar.

DOE PROPOSED SEVERAL PLANS TO ADDRESS SHORTAGE

SLIDE 40

40 Key Investment Highlights

2013 - actual 2014 2015 2016 2017 2018 2019 2020 Reqd Additional Capacity

236

328 585 1,207 453 1,081 1,177 Committed Capacity 854 1,004 1,834 2,643 2,643 4,047 4,461 4,711 Existing Capacity 11,244 11,244 10,881 10,594 10,594 10,594 10,231 10,594 Peak Demand 9,853 10,216 10,674 11,311 11,820 12,351 12,907 13,488 Peak Demand + Req'd Reserve Margin 12,040 12,484 13,044 13,822 14,444 15,093 15,772 16,482

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000

COMMITTED CAPACITIES WILL NOT BE SUFFICIENT TO MEET THE REQUIRED RESERVE MARGIN FOR THE COMBINED LUZON-VISAYAS GRID

Oil-fired plants…  2,691MW, or 18%, of country’s capacity  Php12.52/kwh(est’d ave tariff)

Sources:

1. First Gen’s internal estimates based on

actual data submitted to DOE

2. DOE’s list of Existing Power Plants 2013

MW

62% OF THE COUNTRY’S POWER GENERATION CAPACITY IS 15 YEARS OR OLDER. UNEXPECTED OUTAGES IN THE AGING PLANTS COULD LEAD TO HIGH ELECTRICITY PRICES2

Luzon-Visayas Supply-Demand Forecast (2013-2020)1

Peak Demand growth: ~4.8% 110MW Bacman 49MW Nasulo 150MW Burgos 194MW Avion 196 MW 300 MW 5MW 135MW RE Calaca NNGP Ayala 414MW 135MW 76MW San Gabriel Ayala Pasuquin 135MW 41MW 8MW PCPC Aklan Villasiga 40MW 364MW 400MW 300MW 300MW Bacman Pagbilao QPPL GN Power Toledo 414MW San Gabriel 80 250MW Green Mountain

SLIDE 41

41 Key Investment Highlights

2013 - actual 2014 2015 2016 2017 2018 2019 2020 Reqd Additional Capacity 346 365 79

Committed Capacity
43

393 823 886 886 935 935 Existing Capacity 1,282 1,282 1,282 1,282 1,282 1,282 1,282 1,282 Peak Demand 1,332 1,383 1,435 1,490 1,546 1,605 1,666 1,729 Peak Demand + Req'd Reserve Margin 1,628 1,690 1,754 1,821 1,889 1,961 2,036 2,113

700 1,000 1,300 1,600 1,900 2,200 2,500 2,800 3,100 3,400

WITH UNRELIABLE HYDRO CAPACITY, THE MINDANAO GRID IS EXPECTED TO EXPERIENCE TIGHT SUPPLY UNTIL THE COAL CAPACITIES COME IN

Mindanao Supply-Demand Forecast (2013-2020)1

Source: 1. First Gen’s internal estimates based on actual data submitted to DOE

Peak Demand growth: 3.8% MW 35MW Green Power 8MW Minery Cabuhog 300MW 50MW Therma South Mindanao 3 225MW Lanao Hydro 200MW Conal Coal 5MW Camiguin Wind 30MW Puyo 23MW Bubunauan 9.75MW Cabadbaran 40.5MW 9MW Tagoloan Tumalaong

SLIDE 42

42 Key Investment Highlights Domaine Expertise

LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY COMPANY COUNTRY

STEAM CAPACITY

(in MW)

PLANT CAPACITY

(in MW)

1 EDC

Philippines 1,159 1,159 2

Comision Federal de Electricidad Mexico 958 958

3

Enel Green Power Italy 915 915

4

Chevron USA 1,329 887*

5

Ormat Israel 689 749

6

Calpine USA 725** 725**

7

Mighty River Power New Zealand 385 385

8

Terra Gen USA 337 337

9

Contact Energy New Zealand 335 335

10

Orkuveita Reykjavikur Iceland 333 333

11

CalEnergy Generation USA 329 329

12

Star Energy Ltd. Indonesia 227 227

13

Northern California Power Agency USA 220 220

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 ** Calpine Operating Power Plants 1Q 2014 Investor Update Conference Call May 2014

SLIDE 43

43 Key Investment Highlights Contract-based Cash Flows

NGCP Electric Cooperatives/ Third party customers

POSSESSES STABLE AND PREDICTABLE CASH FLOWS

Subsidiaries of EDC

National Power Corporation

Power Supply Agreements (PSAs) Power Purchase Agreements

Electricity Cashflow

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) Percentage of Consolidated Revenues (1)

USD Linkage

Electricity 44% 73%

Sovereign off-take

Electricity 56% 0%

Commercial off-take

(1) As of Sept.30, 2014

Electricity 0% 0%

Feed-in-Tariff

SLIDE 44

44 Key Investment Highlights Track Record of Growth

MAINTAINS A TRACK RECORD OF OPERATIONAL EXCELLENCE

Availability Factor (1) (%) Reliability Factor(2) (%)

Unified Leyte Palinpinon I Palinpinon II Tongonan

Visayas

Mindanao I Mindanao II

Mindanao

YTD 9M 2013 YTD 9M 2013 YTD 9M 2014

0% 20% 40% 60% 80% 100% 85% 93% 99% 83% 99% 96% 47% 82%

YTD 9M 2014

0% 20% 40% 60% 80% 100% 90% 99% 99% 99% 99% 99% 71% 98% Source: Company data as of the end of September 30, 2014 (1) Availability Factor - Fraction of time a unit is capable of providing service, considering both planned and unplanned outages. (2) Reliability Factor - Measure of ability of generating units to perform their intended function, considering unplanned outages only.

Bacman I Bacman II

Luzon

0% 20% 40% 60% 80% 100% 98% 96% 83% 99% 99% 99% 35% 43% 0% 20% 40% 60% 80% 100% 98% 99% 99% 99% 99% 94% 41% 44%

SLIDE 45

45 Key Investment Highlights Favorable Industry Dynamics

BOARD OF DIRECTORS

LED BY AN EXPERIENCED BOARD OF DIRECTORS AND MANAGEMENT TEAM THAT IS COMMITTED TO BEST IN CLASS CORPORATE GOVERNANCE PRACTICES

Key authorities in the power industry
Long-standing relationships with key industry

stakeholders

Advocates of good corporate governance
Sustainability Business Award, organized by Global Initiatives Singapore, PBE, Eco-Business, and Price Waterhouse Coopers
Platinum Award for Corporate Governance from the Institute of Corporate Directors and Securities and Exchange Commission.
8th Placer in Finance Asia’s Best in Corporate Social Responsibility
Four Philippine Quill Awards for HELEN, CAREERS & BINHI from the International Association of Business Communicators
Three Seals of Approval for MGPF, LGPF & GCGI under DENR’s Philippine Environment Partnership Program for voluntary self-regulation &

improved environmental performance

Five Anvil Awards for Corporate Sustainability Communications Program, annual report, BINHI and calendar & planner from Public Relations

Society of the Philippines TECHNICAL EXPERTISE (1) CORPORATE GOVERNANCE RECENT AWARDS

Board works directly with President to determine

strategy

EDC’s independent directors are active members of

committees.

Board Strategic Planning sessions are regularly

conducted

Operations & Maintenance Others(2) Geosciences & Reservoir Engineering Engineering & Construction Drilling

56% 25% 14% 4% 1%

Average Years of Management Experience

14+

Average Years

f Engineering

Experience

13+

(1) As of July 31, 2014 (2) Includes Office of the President, Finance, HR, Business Development, Supply Chain, Corporate

Affairs, Business Development, Health, Environment & Safety, Information Technology, Legal & Regulatory, Marketing & Sales

SLIDE 46

46 Key Investment Highlights Favorable Industry Dynamics

EDC HAS VARIOUS CORPORATE SOCIAL RESPONSIBILITY PARTNERSHIPS AND PROGRAMS

Health Education Livelihood ENvironment

OUR SOCIAL AND ENVIRONMENTAL COMMITMENTS

We believe that education is the most dependable way out of poverty
140 new trainees admitted to Kananga – EDC institute of Technology

(KEITECH), with 95% employed

741 students enrolled at the Leyte Schools for Excellence (SFE) project
Scholarships program: 21,875 (elementary), 1,154 (high school), 69

(college, with 41 in University of the Phils.)

We believe in being a partner in progress of the communities in which we
perate
12,353 individuals served during medical, dental, surgical outreach

activities across 5 project sites

Assisted in 16 major livelihood projects earning a total gross income of

PHP14M

Numerous small scale contracts worth PHP224M awarded to local

farmer cooperatives benefitting 3,565 members

We believe in protecting and nurturing our environment because failing

this - our resources will suffer

BINHI Project – 833,799 trees planted for specific modules (Tree for the

Future, Tree for Life and Tree for Food)

P342M

Total CSR investment in 2013

SLIDE 47

47 Key Investment Highlights Strong Credit & Investment Profile USD 596 41% PHP 841 59% USD Revenues 164 32% PHP Revenues 349 68%

DELIBERATELY MANAGING FINANCIAL RISKS

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)

5.4 yrs

Average Interest Cost

6.0%

LOANS

USD1,437 USD1,437

Type Currency Outstanding (MM) Repayment Interest Tenor (Years) Maturity 175MM Club2 USD 131.0 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 109.0 Amortizing LIBOR+0.90% 15 2029 PF – USD Com USD 28.0 Amortizing LIBOR+0.90% 15 2029 IFC Loan 1 PHP 3,074.0 Amortizing 6.07%3 15 2023 IFC Loan 2 PHP 2,886.0 Amortizing 6.66% 15 2025 PHP FXCN PHP 6,880.0 Amortizing 6.62% 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 PF - PHP Com PHP 4,050.0 Amortizing PDST – R1 +Margin4 15 2029

(1) In USD Millions as of October 31, 2014 (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 (3) Subject to re-pricing

Fixed 1,141 79% Floating 296 21%

50

100 150 200 250 300 350

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

USD Debt PHP Debt

SLIDE 48

48 Key Investment Highlights Strong Credit & Investment Profile

DELIVERING SUPERIOR FINANCIAL AND OPERATING RESULTS TO STAKEHOLDERS

10,712 13,748 13,238 17,330 15,641 16,532 17,248

50% 57% 54% 61% 61% 62% 60% 0% 20% 40% 60% 80% 100% 3,000 6,000 9,000 12,000 15,000 18,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 (12 mos) 9M'14 (12 mos)

3,000

6,000 9,000 12,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 9M'14

7,276 7,238 5,245(1) 9,895 7,458(2) 6,400 7,980

400 2,400 4,400 6,400 8,400 10,400 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 9M'14

3,357 4,395 615(1) 10,376 5,633 5,925 10,544

CONSOLIDATED NET INCOME RECURRING NET INCOME

6,000

12,000 18,000 24,000 30,000 36,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 9M'13 9M'14

20,678 24,153 24,551 28,369 25,656 19,783 22,982

EBITDA MARGIN CONSOLIDATED REVENUES

1) Full provisioning for NNGP write-off amounting to P 5B in 2011 1) P1.2 B forgone steam revenues resulting from EDC’s acquisition of the Bacman

power plants

2) P2.7 B lower revenues mainly from ancillary services

SLIDE 49

49 Key Investment Highlights Strong Credit & Investment Profile

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 2,175 750 1,500 1,875 30% 65% 33% 31% 45% 58% 36% 58%

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

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 Yield 1.7% 4.4% 3.3% 2.4% 2.7% 2.4% 2.6% 3.1%

SLIDE 50

50 Typhoon Proofing Cooling Tower Units

RETROFITTING OF COOLING TOWERS TO BE IMPLEMENTED IN 3 PHASES ON PRIORITY 1 AND 2 COOLING TOWERS

TRIAGE THE SITUATION*

PHASE 1

PROCURE & INSTALL HURRICANE GRADE CTs AVAILABLE IN THE MARKET

PHASE 2

DESIGN & IMPLEMENT A 300 KPH SOLUTION

PHASE 3

OBJECTIVE  TO RESTORE AFFECTED CTs AS QUICKLY AS POSSIBLE  TO TYPHOON PROOF CTs UP TO 232 KPH USING SPX MARLEY RTM STACKS AND SS316 ANCHORAGE RING  TO DESIGN AND IMPLEMENT AN EXTERNAL STRUCTURE TO RAISE CT TYPHOON SURVIVABILITY TO 300 KPH

Repair Bacman Units 1 and 2 cooling

towers using in-country strategic spares, i.e., parts stocked precisely for contingencies of this nature

Fan Stacks
Replacement of wooden

decks with FRP decks

Replacement of 12 oz casings

with 16 oz casings

TASKS

First 7-30’ RTM Fan Stacks available

@ Houston Gateway for transport to Manila by mid-November 2014 ;

2nd 6-28’ Fan Stacks available @

Houston Gateway mid-December 2014

Fleet wide progressive replacement
f Priority 1 Cooling Tower fan stacks

using either the flexibility of N+1 feature or as opportunity shutdown works for units on scheduled major

utage
EDC and Marley are collaborating on
ptions to increase to 300 kph or

more a CT’s design wind speed through an external structure

Initial designs have been put forward

by EDC for Marley’s comments

* Ranking an issue in order of importance

AT LEAST ONE COOLING TOWER WILL BE FITTED WITH RTM FAN STACK BY END-2014

SLIDE 51

51 Typhoon Proofing Cooling Tower Units

1 2 3 4 5 6

ENGINEERING SOLUTIONS WILL PROGRESSIVELY BE IMPLEMENTED TO TYPHOON PROOF OUR COOLING TOWERS

PHILIPPINE WIND ZONE MAP

2 1 4 3 5 6

ZONE I B (V=250 KPH)

Bacman Geothermal

ZONE II (V=200 KPH)

Burgos Wind Leyte Geothermal

ZONE III A (V=150 KPH)

Mindanao Geothermal

No. Negros Geothermal
So. Negros Geothermal

PRIORITY Location # of Units OEM Cell x Fan Stack Dia. # of Cells

1 Malitbog 3 SPX Marley 8 x 28’ 24 Mahanagdong 3 SPX Marley 7 x 30’ 21 Tongonan 3 SPX Marley 3 x 28’ 9 Malitbog Bottoming 1 SPX Marley 3 x 28’ 3 Upper Mahiao 1 SPX Marley 4 x 22’ 4 Bacman 2 Research Cottrell 6 x 28’ 12 1 ICS 2 X 30’ 2 PRIORITY 1 Sub-total 73 Total Cost, Priority 1 @ USD 100,00 PER CELL USD 7,300,000 2 Mt Apo 2 GEA 5 x 32.8’ 10 Palinpinon 1 2 Hamon 3 x 28’ 6 Palinpinon 1 1 ICS 3 X 28’ 3 Palinpinon 2 4 Shinko 2 x 28’ 8 Nasulo 1 SPX Marley 6 x 26’ 6 PRIORITY 2 Sub-total 33 TOTAL 106

PRIORITY 1: ALL BACMAN AND LEYTE COOLING TOWERS . PRIORITY 2: ALL PALINPINON & MINDANAO COOLING TOWERS .

SLIDE 52

52 Typhoon Proofing Cooling Tower Units

68 HURRICANE TOWER SETS ON ORDER TO RETROFIT EXISTING FLEET OF COOLING TOWERS

Fan stack is the nozzle through which the fan blade draws air

through the cooling tower.

SPX Marley USA is OEM for 76/108 or 70%
The RTM (Resin Transfer Moulding ) cold molding process

increases durability, ensures laminate thickness & weight consistency, allows no porosity for delamination or structural fracture, thereby enhancing the cylinder load capacity

RTM fan stack is designed for 233 kph winds
Anchorage ring is cold-rolled for increased tensile

strength/stiffness and is made of SS 316 to be compatible with corrosive environment

Marley has confirmed that the incremental weight of the RTM

fan stack and anchorage ring is within the existing cooling tower’s design weight limit

To go beyond the 233 kph design of an additional structure is

under evaluation.

KNOWN AS “HURRICANE TOWER” THAT WAS DEVELOPED BY SPX MARLEY FOR CHEVRON’S USE IN US GULF COAST

SPX Marley Reflex RTM Fan Cylinder Anchorage Ring

RTM SEGMENTS ARE BOLTED TO THE ANCHORAGE RING WHICH IN TURN IS DIRECTLY BOLTED ONTO THE COOLING TOWER’S PURLINS & JOISTS

PHASE 2: Install Hurricane Grade CTs

SLIDE 53

53 Typhoon Proofing Cooling Tower Units

SPX MARLEY AND EDC ENGINEERING DESIGN GROUP ARE COLLABORATING ON OPTIONS THAT WILL RAISE CT TYPHOON SURVIVABILITY TO 300 KPH

PHASE 3: Design & Implement 300 KPH Solution

Concept 2 (“Spider Support System”)

The structure will include an SS support

ring at the top of the fan stack & a lower ring spread out from the base of the fan cylinder

Intermediate tubes (2x2 FRP square

tubes) will connect the 2 rings

SS pins to attach tubes to belly band and

anchorage rings

RTM fanstacks and spider support system

to be installed one by one using N+1 flexibility

Priority is 1. Malitbog, 2. Bacman, 3.

Mahanagdong, 4. Tongonan

Design review meeting completed at

Marley in Missouri & Kansas October 2- 3, 2014 CONCEPT AGREED; MARLEY PLANS TO COMPLETE DETAILED STRUCTURAL DESIGN BY END OF OCTOBER AND SUBMIT DETAILED PROPOSAL TO EDC BY NOVEMBER 5

SLIDE 54

54 Growth Projects

FiT Eligibility = Achievement of “Successful Commissioning”
“Successful Commissioning” = RE Plant is physically connected to the grid

FiT Rules:

RE Project informs DOE of date of successful commissioning (100%) DOE to validate commissioning results DOE to issue Certification of Endorsement (COE), if MW(cum) is still within installation target ERC to issue FiT COC to RE Developer

 Nov. 5  Nov. 7-8  Nov. 12 Pending DOE ISSUES CERTIFICATE OF ENDORSEMENT (COE) FOR FIT EIGIBILITY TO THE BURGOS WIND PROJECT

Expected End-Nov. 2014 Scenario:

200 MW Cutoff NW: 18 MW EDC: 150 MW UPC: 32 MW

UPC: 49 MW TA: 54 MW

SLIDE 55

55 Growth Projects

LATIN AMERICA WILL BE A DRIVER OF LONG-TERM GROWTH FOR EDC

Large portfolio of early-stage assets
Development team with significant experience in

both geothermal and Latin America

Long-term commitment to bring projects to

completion

Presence in Latin America provides window to other

RE opportunities

SLIDE 56

56 Review of YTD 9M 2014 Financial Results

REVENUES INCREASED BY PHP3.1 B DUE TO HIGHER CONTRIBUTIONS FROM THE COMMISSIONING OF BACMAN AND NASULO PLANTS

In PHP Billions

Bacman’s revenues increased by P2.1 B, due to the commercial operations of Bacman Units 1, 2

and 3 starting January 2014, June 2014 and October 2013, respectively.

Fresh revenue contribution by P0.5 B from Nasulo power plant
Higher revenue contribution by P0.4 M each from Mindanao and Palinpinon-Tongonan due to

higher energy sales and the absence of adjustments covering prior year’s shortfall in Mindanao.

Revenues from FG Hydro decreased by P0.4 B, due to lower sales volume and the re-

computation of electricity spot prices for Nov. and Dec. 2013 billings as ordered by the ERC (P250).

Leyte 8,245 Mindanao 1,373 Tongonan I 3,112 Palinpinon 5,227 Bacman 19* Pantabangan

Masiway

1,826

YTD 9M 2013 REVENUES

(P millions)

Leyte 8,374 Mindanao 1,737 Tongonan I 3,431 Palinpinon 5,327 Bacman 2,146* Nasulo 502 Pantabangan- Masiway 1,465

YTD 9M 2014 REVENUES

(P millions) Notes: * - Includes trading revenues amounting to P81 Million

REVENUES

+15.6%

19.8B

2013

22.9B

2014

2.1 0.5 0.4 0.4 0.1 (0.4)

Revenues, YTD Sept. 2013 BGI Nasulo Mindanao Pal-Tong Leyte FG Hydro Revenues, YTD Sept. 2014

19.8 22.4 21.9 22.8 23.2 23.3 22.9 22.9

SLIDE 57

57 Review of YTD 9M 2014 Financial Results

PROJECT FINANCING WILL PRETERMINATE THE BRIDGE LOAN AND REPLENISH CASH RESOURCES ADVANCED FOR BURGOS WIND PROJECT

In PHP Billions

For the first nine months of 2014, cash generated from operations reached P12.3 B and was used to service the

following:

P15.3 B property, plant and equipment acquisition, of which:

P9.1 B was spent to Burgos Wind
P2.5 B on capitalized cost of wells
P1.0 B for Nasulo Project (N2N)
P0.9 B for Bacman power plants rehab
P0.7 B rehab due to typhoon Yolanda

P3.6 B interest, financing charges paid and payment of long term debts P2.5 B payment for cash dividend

CASH BALANCE

15.6%

16.0B

2013

13.5B

2014

16.0 13.5

12.3 6.6 ( 3.6) (2.5) (15.3)

Cash Balance,

Dec. 2013

Cash generated from

perations

Proceeds from bridge loans Debt Servicing Cash Dividends PPE Acquisition, Input VAT and Others Cash Balance,

Sept. 2014

28.3 34.9 31.3 28.8 13.5

SLIDE 58

58 Review of YTD 9M 2014 Financial Results

Decreased due to lower cash balance coupled with higher current liabilities due to the reclass of the P8.5B Peso Bonds which will mature on June 2015. Improved mainly due to equity from higher net income for the period. Increased mainly due to higher net debt.

Sept. 2013
Sept. 2014

2.48 1.40

Current Ratio

Sept. 2013
Sept. 2014

1.53 1.45

Debt-to-Equity

Sept. 2013
Sept. 2014

2.26 2.95

Net Debt-to-EBITDA*

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

*Trailing 12 months