EDC COMPANY PRESENTATION MARCH 2015 2 DISCLAIMER This presentation - - PowerPoint PPT Presentation

EDC COMPANY PRESENTATION

MARCH 2015

2

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

TABLE OF CONTENTS

Company Updates Review of FY 2014 Financial Results Introduction Appendices

INTRODUCTION

8 Introduction

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

FY14 Highlights Revenues Php30.9 billon RNI Php9.3 billion EBITDA Php17.9 billion Revenue derived from contract tenors

• f greater than

6 years

64%

90%

Revenue derived from long-term contract agreements

Concessions acquired in Chile & Peru

Managing Financial Risks 

Interest rate on

81% of loans

are fixed

 32% of

revenues are US$ indexed

 5.2 yrs. loan life  5.6% Interest

cost

Geothermal provides

13%

• f electricity production

in the Philippines

Robust Growth

Domestic Expansion

 Install ~180MW of geothermal capacity

Overseas Expansion

 Drill wells in Mariposa, Chile by 2015

10

9 Introduction Plant Type Manufacturer

150.0MW Burgos Wind Vestas 4.0MW Burgos* Solar Juwi 120.0MW Pantabangan Hydro Andritz 12.0MW Masiway Hydro Toshiba 120.0MW Bacman I Geothermal Toshiba/Alstom 20.0MW Bacman II Geothermal Mitsubishi 112.5MW Tongonan Geothermal Mitsubishi 112.5MW Palinpinon I Geothermal Fuji 60.0MW Palinpinon II** Geothermal Fuji 125.0MW Upper Mahiao Geothermal GE/Ormat/Kato 232.5MW Malitbog Geothermal Fuji 180.0MW Mahanagdong Geothermal Toshiba 50.9MW Optimization Geothermal Various 49.4MW Nasulo Geothermal Fuji 52.0MW Mindanao I Geothermal Mitsubishi 54.0MW Mindanao II Geothermal Mitsubishi 1 1 1 2 3 3 Note: * under development **20 MW Nasuji Power Plant placed on preservation

1,451 MW

1,169MWGeothermal 150MWWind 132MWHydro 4MWSolar (under development)

% share

7% of Installed Capacity 9% of Electricity Produced

EDC

AT A GLANCE

2

COMPANY

CAPACITY (in MW) STEAM PLANT

1 EDC

1,164 1,164

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 Introduction

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)

• 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

International Expansion

• Chile
• Peru
• Indonesia

100% 95/100%

EDC Parent(3) 4,830 41% EGC 6,448 54% FGHPC 540 5% EDC Parent (3) 6,920 39% EGC 9,724 54% FGHPC 1,127 6% EBWPC 151 1% EDC Parent (3) 13,447 44% EGC 15,618 51% FGHPC 1,624 5% EBWPC 188 1%

(2) All figures in PHP millions as of Dec. 31, 2014. EBWPC’s Net Income Loss

(Php81MN) included as part of EDC Parent

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

30,867

EBITDA (2) as of Dec. 2014

17,922

Net Income (2) as of Dec. 2014

11,818

Revenues (2) as of Dec. 2014

11 Introduction

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

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 43% 73%

Sovereign off-take

Electricity 56% 0%

Commercial off-take

(1) As of Dec.30, 2014

Electricity 1% 60%

Feed-in-Tariff

12 Introduction WESM, 3,105 NGCP, 720 DU, 13,417 NPC, 13,437 Transco, 188 SPOT 10% 1-2 YRS 20% 3-5 YRS 7% >6 YRS 63%

30,867

LIMITED EXPOSURE TO VOLATILE SPOT MARKET

LONG-TERM CONTRACTUAL AGREEMENTS

(1) Consolidated revenues as of Dec. 31, 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 2040

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

10%

• NGCP
• 2%
• DU
• 17%

7% 20%

TRANSCO

1%

NPC

• 43%

2031

year concession agreements start expiring

90%

revenue from long-term contracts

64%

revenue from contract tenors

• f >6 yrs

44%

expanded revenue base from non-NPC clients

13 Introduction

• Limited to steam field operations

19,007 30,867 10,324 17,922 8,768 11,818

(+) 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) 125 513 132 411 150 (69) 184

• cum. (MW)

125 638 770 1,181 1,331 1,262 1,262 1,262 1,446

2007-2014 (CAGR)

Revenues 7.2% EBITDA 8.2% Net Income 4.4% 2013 2014

(+) 49.4 MW

Nasulo

(-)

20.0 MW Nasuji

(+) 150.0 MW

Burgos

(+) 5.0 MW

Bacman Unit 2

14 Introduction

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

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 Introduction USD 586 40% PHP 882 60% 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)

5.2 yrs

Average Interest Cost

5.6%

LOANS

USD1,468 USD1,468

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 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 December 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 1,182 81% Floating 286 19%

• 50

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

16 Introduction

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 FY 2014 FINANCIAL RESULTS

18 Review of FY 2014 Financial Results

24,153 24,540 28,369 25,656

30,867

13,748 13,238 17,330 15,641

17,922

6,638 4,459 8,522 6,568

9,197

2010 2011 2012 2013 2014

REVENUES EBITDA RNIA FINANCIAL HIGHLIGHTS

Technology

1,164 MW Geothermal 150 MW Wind 132 MW Hydro 4 MW Solar (under development)

Customer Base Geography

• Philippines Chile
• Indonesia Peru

13.4 Bn NPC 13.4 Bn Distribution Utilities 3.1 Bn WESM 0.7 Bn NGCP 0.2 Bn TransCo

EDC

TODAY

19 Review of FY 2014 Financial Results

Bacman Nasulo Burgos

OUTPUT 968 GWH REVENUES Php4.8 B

 135.0 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

EDC SUCCESSFULLY DELIVERED ON ITS 2014 STRATEGIC OBJECTIVES

20 Review of FY 2014 Financial Results

REVENUES INCREASED BY 34% YEAR-ON-YEAR (QUARTERLY) Revenues, in PhP Mn FY14 FY13 Y/Y  4Q14 4Q13 Q/Q  Total EDC 30,867 25,656 20% 7,884 5,873 34% Leyte 11,068 10,411 6% 2,694 2,1661 24% Mindanao 1 & 2 2,369 1,877 26% 632 504 25% Nasulo 745

• 243
• Pal-Tong

11,836 10,677 11% 3,078 2,3391 32% Bacman 3,036 190 1,498% 890 190 368% FG Hydro 1,624 2,501

• 35%

1592 675

• 76%

Burgos 188

• 188
• Key takeaways:

1 Lower revenue from Leyte and Tongonan due to Typhoon Yolanda 2 Lower revenue from low water in reservoir

21 Review of FY 2014 Financial Results

RNI INCREASED BY 28% QUARTER-ON-QUARTER

2,368 3,235 2,377 1,355 1Q'14 2Q'14 3Q'14 4Q'14

Year-on-Year Annual Year-on-Year Quarterly Quarterly 2014

7,458 9,335 2013 2014 1,058 1,355 4Q'13 4Q'14

22 Review of FY 2014 Financial Results

In Php Billions

16.0 14.0

16.6 6.6 12.6 (12.3) (6.6) (8.7) ( 5.8) (4.4)

Cash Balance,

• Dec. 2013

Cash from

• perations

Bridge loan proceeds Burgos $315M PF Burgos Capex Bridge loan payment Drilling, Nasulo & Others Debt Servicing Cash Dividend Cash Balance,

• Dec. 2014

CASH GENERATED FROM OPERATIONS OF PHP16.6B WAS MAINLY USED FOR CAPEX AND DEBT SERVICING

• 12.5%

CASH BALANCE

32.6 39.2 39.5 24.2 18.4 51.8 32.9 14.0

23 Review of FY 2014 Financial Results

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

• Dec. 2013
• Dec. 2014

2.73 1.37

Current Ratio

• Dec. 2013
• Dec. 2014

1.61 1.59

Debt-to-Equity

• Dec. 2013
• Dec. 2014

2.72 3.09

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

COMPANY UPDATES

26 Company Updates

BURGOS SOLAR WAS CONNECTED TO A LOCAL DISTRIBUTION UTILITY LAST MARCH 2

50 MW

Installation Target

18 MW remaining

 4.1 MW Burgos Solar

• 13.9 MW Others (??)

32 MW is already taken

 22MW San Carlos Solar  10MW Angeles Electric

Status to date:

Php 9.68

Feed-in-Tariff

27 Company Updates

WE ARE CURRENTLY INSTALLING SURFACE CASING TO GAIN TIME AND REDUCE RISK FOR THE DEEP WELL CAMPAIGN

SURFACE CASINGS FOR WELLS PLE-1 AND PLA-1 TO BE COMPLETED BY END APRIL 2015

Prospect Resource Probability Area (km2) MWe Mariposa Project (Chile) P90 10 105 P50 15 155 P10 21 210

• Complete top hole for 3 Wells
• Complete installation of water line

Active snow clearing

April ‘15 June-Sept. ‘15

• Jan. ‘15

Target spud-in date

• Oct. 15 ‘15

28 Company Updates

Contract Tenors Before 1 (MW) After 2 (MW) 0 to 2 3 to 6 7 to 9 10+ Total 0-2 years 104.0 42.5 0.0 60.0 5.0 107.5 3-6 years 118.5 0.0 20.0 0.0 103.5 123.5 7-9 years 30.5 0.0 0.0 2.0 33.0 35.0 Total 253.0 42.5 20.0 62.0 141.5 266.0 GCGI’S CONTRACT REPRICING IS IMPERATIVE GIVEN ADVERSE MARKET CONDITIONS

1 As of November 30, 2014 2 As of January 31, 2015

~PHP0.40 PER KWH HAIRCUT RESULTS TO ~PHP 800 MILLION ANNUAL REVENUE LOSS

Re-pricing occurs at a time when…

• 1. Coal prices are at

historic lows

• 2. Excess capacity from

coal plants exists

1

VAT advantage has been eliminated with competing coal plants constructed close to load centers, thereby, incurring

• nly minimal line rental

charges

2

Contracting cycle implies that losing current contracts will be detrimental to its revenue position for the next 5 to 10 years

3

29 Company Updates

NGCP’S DELAY CURTAILED THE OUTPUT FROM WIND ENERGY PROJECTS

THE 120 KM SAN ESTEBAN-LAOAG 230 KV TRANSMISSION LINE PROJECT WAS IMPLEMENTED TO ACCOMMODATE THE WIND FARM PROJECTS IN ILOCOS NORTE

Dispatch Caps

Projects January February Upon completion of San Esteban Line

EDC (150MW) 56 MW 66 MW 150 MW Others (133MW) 49 MW 59 MW 133 MW Total: 283 MW 105 MW 125 MW 283 MW

VS

Grid Capacity: 105 MW 125 MW 400 MW

END OF PRESENTATION

www.energy.com.ph

APPENDICES

32 Appendices

KEY EVENTS AFFECTING THE PHILIPPINE ENERGY SECTOR

Secondary WESM Price Cap

• SECONDARY OFFER PRICE CAP OF PHP 6.245/KWH WHEN THE 168-HOUR

AVERAGE WESM PRICE EXCEEDS PHP9.000/KWH

FIT-ALL Provisional Approval

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

33 Appendices

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 685 MW of intending ILP

participants as of 1/20/2015.

• 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

34 Appendices

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

35 Appendices

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

36 Appendices

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

• ther concessions
• Potential 4MW solar

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 180MW

• 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

• 180 MW for

commissioning by 2018 2015 STATUS 2015 STATUS

37 Appendices

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

EXECUTION ADVANCED EXPLORATION RESOURCE CONFIRMATION POWER PLANT RETROFIT

PROJECT CAPACITY

2014 2015 2016 2017

Beyond

2018

• 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 Pagudpud Wind X Bacman 10 MW X Tongonan ~12 MW X Palinpinon ~12 MW X Kayabon 50 MW X Dauin 40 MW X

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: *Resource sustainability assessment is on-going 2 1 1 1 2 3 4

FRONTIER AREAS

(WIND)

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

1 2

1 1 3 1 2 5 4 6 7 3 2 4 2 1

38 Appendices

REPLICATING BACMAN’s RETROFIT PROGRAM INTO BOTH TONGONAN I AND PALINPINON I ... LIFE EXTENSION YIELDS ADDITIONAL BENEFITS

TURBINE Retrofit

30 year old design with associated reliability issues

GENERATOR Retrofit

30 year old design with associated reliability issues

1 2

3Q ‘16 Jan ‘15 Tongonan retrofit kit order date Target COD for Tongonan 2017 Palinpinon retrofit kit order date 2H ‘15 Target COD for Palinpinon

Efficiency Gains Electricity Production 10.00% Steam Consumption 9.75%

EDC REALIZES EFFICIENCY GAINS WITH NEW TECHNOLOGY AND ACHIEVES LIFE EXTENSION FOR LEGACY POWER GENERATING ASSETS

BACMAN RETROFIT PROGRAM

39 Appendices

EDC SEIZED THE OPPORTUNITY AND NOW HOLDS STAKES IN UP TO 5 CONCESSIONS AND 19 APPLICATIONS

Exploration Drilling Estimate: USD 30 MM Target COD Q4 ‘15 Q2 ‘20 Site Development Budget: USD 15 MM Q1 ‘14

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

* 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)

LATIN AMERICA

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

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) INDONESIA

Prospectcc 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 P90

• P50

27 270 P10 40 400 Mariposa Project (Chile) 250-290 P90 10 105 P50 15 155 P10 21 210

~760

to

1,800

40 Appendices

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 INSTALL OFF – THE – SHELF PROVEN OEM MARLEY SOLUTION FOR 233 KPH SURVIVABILITY  TO TAKE PHASE 2 SOLUTION UP TO 300 KPH USING OUTER ANCHORAGE RING AND STRUTS

• 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

• SPX Marley RTM stack

First 15 RTM Fanstacks shipped from US, Dec 2014 Balance (39) due for delivery by Q3 2015

• SS316 anchorage ring

Inner Anchorage rings due for delivery Q1 2015

• Oct 15, 2014 - Finalized Concept and

Preliminary Design

• Dec 10, 2014 - Detailed Design

Completed and Marley Proposal Submitted

• Jan 30, 2015 - Order Issued:
• Mar 15, 2015 - First delivery of Phase 3

components

• May 2015 - First installation for

300kph fan stack

* Ranking an issue in order of importance

FOCUS IS ON TOWERS WHICH HAVE BEEN HISTORICALLY DAMAGED

41 Appendices

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 Bacman 2 Research Cottrell 6 x 28’ 12 1 ICS 2 X 30’ 2 PRIORITY 1 Sub-total 68 Total Cost, Priority 1 @ USD 100,000 PER CELL USD 6,800,000 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 Malitbog Bottoming 1 SPX Marley 3 x 28’ 3 Upper Mahiao 1 SPX Marley 4 x 22’ 4 Nasulo 1 SPX Marley 6 x 26’ 6 PRIORITY 2 Sub-total 40 TOTAL 108

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

42 Appendices

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.
• 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

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

SPX Marley Reflex RTM Fan Cylinder SS 316 Anchorage Ring Spider Support System

• 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.
• 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

RTM SEGMENTS ARE BOLTED TO THE ANCHORAGE RING WHICH IN TURN IS DIRECTLY BOLTED ONTO THE COOLING TOWER’S PURLINS & JOISTS CONCEPT AGREED; INSTALLATION OF RTM FANSTACKS WILL COMMENCE ONCE MATERIALS FOR AT LEAST 1 COOLING TOWER IS COMPLETE