Maybank Invest ASEAN Philippines 2015 Makati Shangri-La Hotel, - - PowerPoint PPT Presentation

Maybank Invest ASEAN Philippines 2015 Makati Shangri-La Hotel, Manila August 25, 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

Tongonan Retrofit Project

Started in January 2014, the Tongonan retrofit project is expected to improve plant’s overall reliability, output and efficiency.

Burgos Project Update

EDC still guides for a 4Q 2015 completion, even as

• n-going developments for the Laoag-San Esteban

TL Project is encouraging.

International Expansion

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

Company Updates Review 1H 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 1H 2015 Significant Events, 19 Revenues, 20 Operating Expenses, 21 Recurring Net Income, 22 Financial Ratios, 24 Tongonan Retrofit, 25 EDC’s Growth Agenda, 26 Bacman 3 NTP, 27 Burgos Project Update, 29 Latin America Expansion Update

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

70.6 % 74.4 % 75.8%

CAPACITY FACTOR AVAILABILITY RELIABILITY

112.5 MW TONGONAN 32 YEARS OLD

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

Feed-in-Tariff (FIT)

 Php0.0406/kWh

promulgated  Registered RE project developers now being paid at FIT rate

Geothermal is

11%

• f Installed

capacity 1H 15 Highlights Revenues Php16.8 billon RNIA Php4.7 billion EBITDA Php9.7 billion Revenue derived from contract tenors

• f greater than

6 years

69%

88%

Revenue derived from long-term contract agreements

Concessions acquired in Chile & Peru

Managing Financial Risks  Interest rate on 90% of loans

are fixed

 5.3 yrs. loan life  5.4% Interest

cost

 30% of

revenues are US$ indexed

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

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

% 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: 50.56 % V: 50.84% E: 1.69 % V: 1.12 % V: 3.33 % E: 4.99 % V: 44.71 % E: 42.76 %

EDC Burgos Wind Power

• Corp. (EBWPC)

150.0 MW Burgos

International Expansion

• Chile
• Peru
• Indonesia

100% 95/100%

included as part of EDC Parent

subsidiaries

16,775

EBITDA (2) as of June 2015

9,692

Net Income (2) as of June 2015

4,801

Revenues (2) as of June 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 As of June 30, 2015

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 35% 73%

Sovereign off-take

Electricity 59% 0%

Commercial off-take

Electricity 6% 60%

Feed-in-Tariff

(1) As of June 30, 2015

12 Key Investment Highlights

LIMITED EXPOSURE TO VOLATILE SPOT MARKET

LONG-TERM CONTRACTUAL AGREEMENTS

(1) Consolidated revenues as of June 30, 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

12%

• NGCP
• 3%
• DU
• 13%

3% 11% 5% 12%

NPC

• 35%
• TRANSCO
• 6%

2031

year concession agreements start expiring

88%

revenue from long-term contracts

69%

revenue from contract tenors

• f >6 yrs

44%

expanded revenue base from non-NPC clients

13 Key Investment Highlights

SIGNIFICANT PORTFOLIO EXPANSION SINCE PRIVATIZATION

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

Customer Base

5.9 Bn NPC 7.3 Bn DUs 2.1 Bn WESM 0.5 Bn NGCP 0.9 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 1H 2015)

2007-2014 (CAGR)

Revenues 7.2% EBITDA 8.2% RNIA 5.7%

14 Key Investment Highlights

2014 POWER STATISTICS OF THE PHILIPPINES

Source: DOE Website

11%

Geothermal

as a % of Installed Capacity

13%

Geothermal

as a % of Electricity Production

Fuel Type Installed Capacity (MW) Coal 5,708 Hydro 3,543 Oil 3,476 Geothermal 1,918 Natural Gas 2,862 New RE 437

Total 17,944

GEOTHERMAL ENERGY IS A STRATEGIC ENERGY RESOURCE FOR THE PHILIPPINES

Renewable 26% Conventional 74%

15 Key Investment Highlights

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)

5.3 yrs

Average Interest Cost

5.4%

LOANS

USD1,494 USD1,494

Type Currency Outstanding (MM) Repayment Interest Tenor (Years) Maturity 175MM Club2 USD 114.0 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 150.0 Amortizing LIBOR+0.90% 15 2029 PF – USD Com USD 38.0 Amortizing LIBOR+0.90% 15 2029 IFC Loan 1 PHP 2,732.0 Amortizing 6.07%3 15 2023 IFC Loan 2 PHP 2,634.0 Amortizing 6.66% 15 2025 PHP FXCN PHP 6,790.0 Amortizing 5.25%5 10 2022 PHP Bonds PHP 3,500.0 Bullet 9.33% 7.0 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 5,610.0 Amortizing PDST – R1 +Margin4 15 2029

(1) In USD Millions as of June 30, 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

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. 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 1H 2015 FINANCIAL RESULTS

18 Review of 1H 2015 Financial Results

SIGNIFICANT EVENTS THAT TRANSPIRED IN 1H 2015

Plant Outage & OPEX

 Tongonan Unit 2 and Bacman Unit 3 goes on unplanned outage

(Php0.8Bn foregone revenue).

 OPEX related expenses, mainly typhoon proofing and O&M new projects.

Debt Refinancing

 Refinanced Php8.5Bn EDC retail bond through GCGI (3.3% lower interest

rate).

Burgos Wind

 Although EDC has started collecting FiT Allowance from Transco, the

project remains grid constrained (1H opportunity loss Php0.4Bn).

Burgos Solar

 Project commissioned last March 2015

19 Review of 1H 2015 Financial Results

DESPITE A 10% INCREASE IN REVENUES, EDC STILL FELL SHORT OF TARGET DUE TO BURGOS CURTAILMENT AND UNSCHEDULED OUTAGES IN LGBU AND BGBU

In PHP Billions

+10.0%

16.1 16.8 17.2 17.2 17.1 16.7

Notes: LGBU includes UL strips of energy and WINBU includes Burgos Solar

OUT OF A POTENTIAL 18% REVENUE INCREASE, EDC REALIZED ONLY 10%

20 Review of 1H 2015 Financial Results

Operating Expenses, in PhP Mn

1H 15 1H 14 Y/Y  Remarks Total EDC 9,575 7,323 31% LGBU 2,705 2,206 23%

Increase in civil works (Typhoon Yolanda and Seniang rehab costs), power plant O&M and maintenance and repair of pumps and pipelines

WINBU 515 17 2,929%

Increase in depreciation of PPE, real property tax and power plant O&M,

ULGEI 323

• Cost of energy strips with NPC

NIGBU 547 303 81%

Increase in Nasulo’s depreciation of PPE and O&M and higher civil works

BGBU 450 321 40%

Increase in power plant O&M, depreciation of PPE and Typhoon Glenda rehab costs

Others 2,676 2,118 26%

Increase in Mindanao’s depreciation of PPE; increase in personnel costs; interest settlement to DOE on prior year’s govt share amortization payment

OPERATING EXPENSES INCREASED BY 31% DUE TO HIGHER DEPRECIATION, POWER PLANT O&M AND TYPHOON PROOFING RELATED EXPENSES

GOING FORWARD, WE EXPECT THE TREND TO CONTINUE FOR 2015 AND THE KEY BENEFITS TO MANIFEST ONLY STARTING 2016

21 Review of 1H 2015 Financial Results

AS A RESULT OF INCREASED OPEX AND THE END OF FG HYDRO INCOME TAX HOLIDAY, RNI DECREASED BY 13%

In PHP Billions

• 13.0%

6.07 6.19 6.24 5.36 5.16 5.05

* Others mainly pertained to the unallocated interest expense of the Php7 B bonds issued by EDC for Burgos Wind Project which, last year, was capitalized until Nov. 11, 2014.

5.00 4.85 4.56

22 Review of 1H 2015 Financial Results

CURRENT RATIO IMPROVED WHILE THE LEVERAGE RATIOS REMAINED AT MANAGEABLE LEVELS

Increased because of lower current liabilities resulting from Php8.5B Peso Bonds maturing last June 4, 2015. Increased mainly due to higher debt with EBWPC’s project financing availed in October 2014. Increased mainly due to higher net debt due to EBWPC’s project financing partly reduced by higher annualized EBITDA. *Trailing 12 months

COMPANY UPDATES

24 Company Updates

Costs Benefits TONGONAN REHAB PHASE II: Php4.3Bn

TONGONAN’S RETROFIT TO IMPROVE RELIABILITY, OUTPUT AND EFFICIENCY COMMENCED JANUARY 2014 WITH INSTALLATION TO START 2H 2016

112.5 MW TONGONAN 32 YEARS OLD

70.6 % 74.4 % 75.8%

CAPACITY FACTOR AVAILABILITY RELIABILITY

RETROFIT

Php968Mn

UPRATE

Php789Mn

RELIABILITY

Php2,581Mn

MHPS Turbine Retrofit* Transformer, Busbar, Cooling Tower (P 196M) MELCO Generator Rehabilitation* (P 593M) CSI – Tongonan* (P 258M) Balance-of-Plant Reliability Enhancements (P 2,323M) *Projects with Notice to Proceed

• Turbine repair (U1)
• Turbine retrofit (x3)
• Gen. rehab (x3)
• CSI project
• Turbine retrofit (x3)
• Gen. rehab (x3)
• CSI project
• Minor PMS (x1)

2015 Php435Mn 2016 Php2,852Mn 2017 Php1,031Mn 2018 Php20Mn

CAPACITY (MW) FORCED OUTAGE RATES REVENUES (EST.) YTD 2015 1% Δ

3 x 37.5 24.2% Php 46.8 Mn Php 1,085.8 Mn 3 x 3.5*

• 433.0 Mn

*incremental capacity from improved engineering design

2.8 Years

Payback Period (est.)

EQUIPMENT ROADMAP OBJECTIVE

≤ 1%

FORCED OUTAGE RATE

25 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

26 Company Updates

BACMAN 3 IS EDC’S FIRST GEOTHERMAL GREENFIELD POST-PRIVATIZATION; ADDITIONAL 31MW READY BY 4Q 2017

• TW3D Drilling

Completed (Aug)

• TW4D Drilling

Completed (Feb)

• Dual Porosity

Model Completed (Dec)

• COD (4Q)

2011 2012 2013 2014 2015 2016 2017

• Final PP Capacity

Agreed (Mar)

• NTP (4Q)

27 Company Updates

Payment Collection

₱ 0.0406/kWh

FIT All

RE Developer

CUSTOMERS ₱?.??/kWh ₱ 8.53/kWh

FIT (Rate) Market Clearing Price

Administered by FIT All Fund (GFI) WESM

BURGOS WIND ALREADY STARTED RECEIVING FIT

Php0.913Bn

1H 2015 Revenues inclusive of FIT All APRIL 13, 2015 – ERC COC NO. 15-04-M-00005L ENTITLES 150MW BURGOS WIND POWER PROJECT PHASE I & II TO FIT RATE OF PHP8.53/kWh FROM 11-NOV-2014 to 10-NOV-2034

28 Company Updates

THE CURTAILMENT IS EXPECTED TO BE RESOLVED ONCE THE LAOAG-SAN ESTEBAN LINE GETS COMPLETED IN 4Q 2015

Status of Construction (as of 11 August 2015) Foundations Erection Stringing Not Started 0.0% 13 4.2% 75 24.0% Ongoing 9 2.9% 12 3.9% 85 27.2% Done 302 97.1% 286 92.0% 152 48.7% TOTAL 311 100% 311 100% 312 100%

DEVELOPMENTS ON-GOING

• Progress on NGCP’s testing and commissioning at the “End Point” substations is

encouraging

• 2 x 30 MVA Transformers, Control and Protection System at Laoag Substation already

commissioned and ready to be energized

• NGCP’s Systems Operations, Telecommunication and Protection, etc. already

mobilizing teams to complete functional tests and pre-energization activities

29 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

COMPETITIVE LANDSCAPE MARKET SITUATION

30 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

31 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

32 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

34 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

88% 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

KEY TAKEAWAYS

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

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

 EDC’s 1H 2015 results fall short of target due to Burgos curtailment and unscheduled

Leyte and Bacman Plant outages

Guidance remains for a 4Q 2015 completion, even as on- going developments for the Laoag-San Esteban TL Project is encouraging. Started in January 2014, the Tongonan retrofit project is expected to improve plant’s overall reliability, output and efficiency.

END OF PRESENTATION

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