NINE MONTHS 2019 FINANCIAL RESULTS ANALYSTS ......2019/11/09 · POWER Financial Highlights 4...

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NINE MONTHS 2019 FINANCIAL RESULTS ANALYSTS’ BRIEFING

06 NOVEMBER 2019

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TABLE OF CONTENTS

Consolidated Financial Highlights Page 3

POWER

Financial Highlights 4

Expansion Updates 5

TOLL ROADS


Expansion Updates 7

WATER


Metropac Water 9

HOSPITALS


LIGHT RAIL, LOGISTICS AND OTHERS


Regulatory Matters 12

Stand-alone Portfolio Company Results and Key

Metrics

Page 15

POWER

MERALCO 9M 2019 Highlights and Key Metrics 16

GBPC 9M 2019 Highlights and Key Metrics 17

TOLL ROADS

MPTC 9M 2019 Highlights 18

Key Metrics and Priorities 19

WATER

Maynilad 9M 2019 Highlights and Key Metrics 20

HOSPITALS

MPHHI 9M 2019 Highlights and Key Metrics 21

LIGHT RAIL

LRMC 9M 2019 Highlights and Key Metrics 22

Quarterly Highlights 23

Statements of Financial Position 26

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6% increase in Operating Income was driven by:

Substantial Core Income growth from Manila Electric

Company (MERALCO)

Continued traffic growth and tariff adjustments on

domestic toll roads of Metro Pacific Tollways (MPTC)

Higher volumes and tariffs at Maynilad Water

Services Inc. (Maynilad)

Strong in/out patient numbers at Metro Pacific

Hospitals (MPHHI)

Increase in interest expense is due to loan drawdowns

amounting to ₱20.0 billion (proceeds were used to

fund various investments of the group). Weighted

average interest rate as at 30 September 2019 is

6.35% and weighted average debt maturity is 7.9

years

The swing from Non-core Income in 2018 to an

Expense of ₱695 million is largely due to foreign

exchange translation losses

CONSOLIDATED FINANCIAL HIGHLIGHTS

EARNINGS CONTRIBUTION MIX

In Millions of Pesos 9M 2019 9M 2018 % Change

MPIC share

Power 8,950 8,503 5%

Toll Roads 3,689 3,256 13%

Water 3,179 3,047 4%

Hospitals 681 586 16%

Light Rail 224 299 -25%

Others (316) (273) 16%

Share of operating income 16,407 15,418 6%

Head office expenses (884) (839) 5%

Interest expense (3,024) (2,388) 27%

Core income 12,499 12,191 3%

Non-core income (expense) (695) 297 -334%

Reported income 11,804 12,488 -5%

In Centavos

Diluted EPS on core income 39.62 38.62 3%

9M 2019 9M 2018

9M 2019 CORE INCOME UP 3% TO P12.5B Strong growth in operating income more than offsets rising finance costs from expanded investments; Q3 Core Income up 6% vs Q3 2018

Water19%

Power 55%

Toll Roads22%

Hospitals and Others

4%Water20%

Power 55%

Toll Roads21%

Hospitals and Others

4%

POWER

4

CONTRIBUTION UP BY 5% TO P9.0BDriven by strong results at MERALCO

5% increase in contribution from the Power business was

driven by:

MERALCO

6% growth in energy sales

Lower borrowing costs on lower outstanding debt and higher

investment returns

GLOBAL BUSINESS POWER CORPORATION

4% decrease in energy sales due to the end of various short-

term power supply agreements

Rising depreciation and interest costs from Panay Energy

Development Corporation’s 150 MW plant from 1 June 2018

Offset by:

Higher margins on increased WESM prices and ancillary

service agreements with NGCP

43% increase in contribution from Alsons Thermal Energy

Corporation to P292 million

In Millions of Pesos

CONTRIBUTION TO MPIC 9M 2019 9M 2018 %

MERALCO (45.5%) 8,390 7,586 11%

GBPC (62.4%) 1,220 1,184 3%

Beacon/FV and accounting adj. (660) (267) 147%

8,950 8,503 5%

STAND-ALONE PERFORMANCE 9M 2019 9M 2018 %

Financial Highlights

Revenues 241,126 227,411 6%

Core EBITDA 29,762 26,564 12%

Core income 18,453 16,686 11%

Reported income 18,321 18,212 1%

Capital expenditure 15,701 10,048 56%

Key Performance Indicators

Energy sales (in GWh) 35,005 32,921 6%


Revenues 18,141 20,172 -10%

Core EBITDA 7,113 6,779 5%

Core income 1,956 1,899 3%

Reported income 1,845 1,916 -4%

Capital expenditure 632 452 40%


Energy sales (in GWh) 3,503 3,656 -4%

MERALCO

GLOBAL BUSINESS POWER CORPORATION (GBPC)

TO MERGE

POWER

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EXPANSION UPDATES

Alsons Thermal Energy Corporation

● 105 MW Expansion Plant, Saranggani – began commercial

operations on 10 October 2019

1x455MW (net) San Buenaventura Power, Quezon

● Started commercial operations on 26 September 2019

● First operational supercritical coal power plant in the Philippines

● EPC contract with the Consortium of Daelim Industrial Co., Ltd. and

Mitsubishi Corporation

● Joint venture of MGen with New Growth, B.V., a wholly owned

subsidiary of Electricity Generating Public Company Limited

(EGCO) of Thailand

2x600MW (net) Atimonan One Energy, Quezon

● Committed Project and Certified Energy Project of National

Significance with DOE

● All Environmental Clearances and Permits secure; Interconnection

agreement in place

● Will participate in MERALCO’s competitive selection process

MERALCO GLOBAL BUSINESS POWER CORPORATION

ENERGY FROM WASTE

Quezon City Waste to Energy Project (P15.3 billion project cost for Phase 1)

● Aims to convert approximately 3,000 tons of waste to 36 MW net of energy

● Granted original proponent status – no comparable proposals were submitted during Swiss Challenge

● Awaiting issuance of Notice of Award from the Quezon City local government units

Biogas – Dole Project (P1.0 billion project cost)

● Aims to derive biogas from the anaerobic digestion of fruit waste from Dole’s canneries in South Cotabato

● Target to generate 5.7 MW of clean energy for Dole and contribute to reduction of CO2 emission by

100,000 tons/year

● Target completion of facilities by 3Q 2020

● Approved as a Joint Crediting Mechanism Model Project for carbon reduction and subsidy by the Ministry

of Environment, Japan

TOLL ROADS

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13% increase in contribution from the Toll Roads

business was driven by:

Strong traffic growth on all domestic roads

Toll rate increases for NLEX (Open System: 20%;

Closed System: 7%) in March 2019 and SCTEX

(19%) in June 2019

Offset by:

Decline in regional roads traffic

Higher interest costs from borrowings used to partially

finance increased investment in PT Nusantara in 2018

CONTRIBUTION UP BY 13% TO P3.7B Continuing traffic growth in Philippine toll roads and toll rate increases



Metro Pacific Tollways (99.9%) 3,708 3,273 13%

Fair value adjustments (19) (17) 12%

3,689 3,256 13%



Revenues 13,499 11,251 20%

Core EBITDA 9,657 7,778 24%

Core income 3,712 3,277 13%




Average Daily Vehicle Entries

NLEX 266,908 250,992 6%

CAVITEX 163,143 143,907 13%

SCTEX 68,780 61,078 13%

DMT / CII / NUS 408,584 445,237 -8%

METRO PACIFIC TOLLWAYS CORPORATION

TOLL ROADS EXPANSION UPDATES

PHILIPPINES

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PROJECTS UNDER CONSTRUCTION / DEVELOPMENT

PROJECTS Length Construction Cost Target

Completion

Right-of-way

Progress

Status

(In Km) (In P Billions)

EXPANSIONS TO EXISTING ROADS

NLEX Harbour Link

(Radial Road 10)

2.60 6.70 2020 94% Ongoing construction

NLEX Lane Widening

(Phase 2)

N/A 1.57 2020 N/A Ongoing construction of Segment 7 (part of

NLEX Lane Widening)

CAVITEX Segment 4 Extension 1.23 1.52 2022 85% Ongoing ROW acquisition

CAVITEX - C5 South Link 7.72 12.65 2022 69% Seg. 3A-1 – Completed; Seg. 3A-2 and Seg.

2 – ongoing procurement of contractor; Seg.

3B – ongoing ROW acquisition

NLEX Citi Link 11.50 18.80 2024 0% Ongoing ROW acquisition

NEW ROAD PROJECTS AWARDED

NLEX-SLEX Connector Road 8.00 23.30 2021 Section 1

(Caloocan) - 73%;

(Manila) - 58%;

Section 2 - 74%

Civil works contract awarded to DMCI in

October 2019

Cebu Cordova Link Expressway 8.50 26.60 2021 100% Ongoing construction

Cavite Laguna Expressway 44.67 16.99 2023 Total - 49%;

Laguna – 77%;

Cavite – 32%

Laguna segment – Ongoing construction;

Cavite segment – Ongoing ROW acquisition;

Subsections 6, 7 & 8 opened on 30 October

2019

TOTAL 84.22 108.13

C5 South Link Segment 3A-1 (2.2 km)

o Began operations on 23 July 2019

Cavite Laguna Expressway (8.9 km)

o Mamplasan Road to Sta. Rosa-Tagaytay road (subsections 6 –

8) opened on 30 October 2019

COMPLETED PROJECTS

WATER

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Maynilad (52.8%) 3,432 3,237 6%

Fair value adjustments (154) (148) 4%

Metropac Water Investments Corp. (99) (42) 136%

3,179 3,047 4%



Revenues 18,035 16,553 9%

Core EBITDA 12,750 11,698 9%

Core income 6,500 6,130 6%


Capital expenditure 8,729 9,016 -3%


Billed volume (In MCM) 402 394 2%

*Non-revenue water % - average 26.8% 30.5% -12%

*Non-revenue water % - period end 27.1% 29.1% -7%

MAYNILAD WATER SERVICES INC.

4% increase in contribution from the Water business

was driven by:

MAYNILAD WATER SERVICES, INC.

2% volume growth

Tariff increases

● Inflation-linked: 5.7% in January 2019

● Basic: 2.7% in October 2018

*Measured at the District Metered Area level

CONTRIBUTION UP BY 4% TO P3.2B Volume growth and tariff increases

WATER

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Industrial

Water

Municipal Water

In Aggregate Bulk Distribution Total

Max. Potential Volume (mld) 660 305 328 1,293

Installed Capacity (mld) 335 169 143 647

Billed Volume (mld) 91 158 63 312

Regulated Tariff? No No Yes

Demand Risk? Yes Mixed No

In Aggregate Philippines Vietnam Total

Max. Potential Volume (mld) 633 660 1,293

Installed Capacity (mld) 312 335 647

OVERVIEW OF EXISTING PORTFOLIO

EXPANSION

▪ Organic growth potential – 335 mld

▪ Investment growth potential – 646 mld

UPDATES

Dumaguete City Water District (Project Cost of ₱1.6 billion over 25 years)

• Joint venture agreement for the rehabilitation, operation, maintenance, and

expansion of the existing water distribution system and the development of

wastewater facilities signed on 3 September 2019

• Operations are expected to commence in 1Q2020

Phu Ninh Water

• Started supplying water in July 2019

• Increased ownership in Phu Ninh to 52.5% on 5 September 2019

HOSPITALS

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Metro Pacific Hospital Holdings (60.1%) 792 664 19%

Hospital admin and fair value adjustments (111) (78) 42%

681 586 16%



Revenues 21,459 18,932 13%

Core EBITDA 4,939 4,148 19%

Core income 2,086 1,771 18%




Total beds available 3,241 3,205 1%

Average standard occupancy rate 72.0% 67.4% 7%

No. of in-patients 152 144 6%

No. of out-patients 2,786 2,535 10%

HOSPITALS (AGGREGATE)

CONTRIBUTION UP BY 16% TO P681M Robust growth in patient census

16% increase in contribution from the Hospital

business was a function of:

18% growth in stand-alone Core Income

● Higher patient census across hospitals driven by

high impact cases and new services offered

● Price adjustments in some hospitals

Transaction with KKR expected to close within 2019

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LIGHT RAIL

25% decline in contribution from the Light Rail

business was a function of:

Slight decline in ridership due to more class

suspensions in 2019 and shortened operating hours

Higher repairs and maintenance costs due to

scheduled preventive maintenance


LIGHT RAIL


Light Rail Manila (55.0%) 224 299 -25%



Farebox revenues 2,390 2,440 -2%

Core EBITDA 480 697 -31%

Core income 408 544 -25%

Reported income 393 560 -30%



Average daily ridership 445,373 452,892 -2%

OTHERS


Indra Philippines (25.0%) 35 27 30%

Metropac Movers Inc. (99.9%) (334) (296) 13%

Others (17) (4) 325%

(316) (273) 16%

LIGHT RAIL MANILA CORPORATION

LIGHT RAIL, LOGISTICS AND OTHERS Expansion and rehabilitation to cater to fast growing demand

LOGISTICS

33% growth in Revenues due to short-term election-

related contracts and higher trucking trips

Offset by:

Lower utilization of trucks

Higher depreciation and financing costs

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TOLL ROADS

Increase in toll rates for NLEX, SCTEX, CAVITEX implemented in March, June, and October 2019, respectively

APPROVED INCREASES – CLASS 1 TOTAL 2019 2020 2021 2023

NLEX

Periodic adjustment – 2012 and 2014

Open system (per entry) 6.25 3.57 0.89 0.89 0.89

Closed system (per km) 0.36 0.18 0.06 0.06 0.06

New extension

Harbour Link Segment 10 (add-on per entry) 5.36 4.49 0.87 - -

SCTEX (per km) 0.51 0.51 - - -

CAVITEX (per entry)

R1 Enhancement 0.89 0.89 - - -

New extension

C5 South Link Segment 3A-1 (stand alone) 19.64 19.64 - - -

IMPACT ON REVENUES – net of Government share

(In P Million) 2,357 1,130 1,890 2,123 2,357

REGULATORY MATTERS

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TOLL ROADS

Awaiting approval of the following adjustments:

➢ NLEX: 2016 cycle (one-time increase in 2020) and 2018 cycle (staggered increases starting 2021)

➢ CAVITEX: 2013, 2014 and 2017 cycles (staggered implementation)

Impact on Revenues based on 2018 actual traffic for existing roads and projected traffic for new extensions

Foregone revenues to be settled through concession extensions

PENDING INCREASES – CLASS 1 TOTAL 2019 2020 2021 2022 2023

NLEX

Periodic adjustment – 2016 and 2018

Open system (per entry) 8.93 - 2.68 2.68 1.79 1.79

Closed system (per km) 0.50 - 0.14 0.12 0.12 0.12

CAVITEX (per entry)

Periodic adjustment - 2013, 2014, and 2017

R1 6.25 6.25 - - - -

R1 Extension 27.68 8.93 6.25 6.25 - 6.25

IMPACT ON REVENUES – net of Government share

(In P Million) 2,706 183 1,053 1,690 2,157 2,706

REGULATORY MATTERS

WATER

Rate rebasing:

➢ ADR 7.39%

➢ All Corporate Income Tax excluded (cash collection from DOF of P6.7 billion would theoretically reduce tariff)

*Impact on revenues includes 20% environmental charge on the annual adjustments

LIGHT RAIL

LRTA endorsed application for 16% fare increase to DOTR

REGULATORY MATTERS

% adjustment TOTAL 2018 2019 2020 2021 2022

Basic tariff 2.70% - 5.69% 5.38% 2.44%

CPI - 5.70% - - -

IMPACT ON REVENUES (In P Million)* 4,857 142 1,802 3,036 4,269 4,857

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STAND-ALONE PORTFOLIO COMPANY RESULTS

AND KEY METRICS

POWER

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MERALCO 9M 2019 HIGHLIGHTS

AND KEY METRICS

6% Increase in Electricity Revenues was a function of:

❑ 6% growth in total energy sales from 32,921 GWh to 35,005 GWh

(6.0% ↑ commercial, 8.0% ↑ residential, and 5.1% ↑ industrial sector)

❑ 7% growth in distribution revenues due to increase in volume sold

❑ 6% increase in pass-through revenues driven by higher WESM

prices due to supply constraint in the Luzon gridIn Millions of Pesos 9M 2019 9M 2018 %

MERALCO (45.5%) 8,390 7,586 11%

GBPC (62.4%) 1,220 1,184 3%

Beacon/FV and accounting adj. (660) (267) 147%

8,950 8,503 5%

In Millions of Pesos 9M 2019 9M 2018 %

Electricity 235,376 221,266 6%

Non-Electricity 5,750 6,145 -6%

Total revenues 241,126 227,411 6%

Purchased power (183,355) (174,461) 5%

Operating expenses (34,838) (32,499) 7%

Other income 1,470 885 66%

Provision for income tax (5,848) (4,597) 27%

Non-controlling interests (102) (53) 92%

Core income 18,453 16,686 11%

Non-core income (expense) (132) 1,526 -109%

Reported net income 18,321 18,212 1%

Core EBITDA Computation:

Core income 18,453 16,686 11%

Depreciation and amortization 6,400 5,472 17%

Interest income -net (1,300) (545) 139%

Provision for income tax 5,848 4,597 27%

Others 361 354 2%

Core EBITDA 29,762 26,564 12%

KEY METRICS 9M 2019 9M 2018

Number of customer accounts 6.82M 6.54M

Capital Expenditure (in Millions of Pesos) 15,701 10,048

Energy Sales

Residential 10,920 10,111

Commercial 13,712 12,938

Industrial 10,268 9,768

Streetlights 105 104

Total (in GWh) 35,005 32,921

POWER

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GBPC 9M 2019 HIGHLIGHTS

AND KEY METRICS

Revenues declined due to end of various short-term power supply

agreements

Non-core expense in 9M 2019 largely relates to tax payments for a

liquidated entity

Contribution from Alsons Thermal Energy Corporation increased by

43% to ₱292 million


Power billings 18,044 20,066 -10%

Coal sales 97 106 -8%

Total revenues 18,141 20,172 -10%

Power plant costs (8,752) (10,892) -20%


Interest expense - net (1,629) (1,602) 2%

Other income 83 120 -31%

Share in earnings of associates 292 204 43%

Provision for income tax (805) (812) -1%

Non-controlling interests (845) (797) 6%

Core income 1,956 1,899 3%


Reported net income 1,845 1,916 -4%


Core income 1,956 1,899 3%


Interest expense - net 1,629 1,602 2%

Provision for income tax 805 812 -1%

Non-controlling interests 845 797 6%

Others (292) (204) 43%

Core EBITDA 7,113 6,779 5%

VOLUME SOLD

(In GWh)

REVENUES

(In Millions of Pesos)

9M 2019 9M 2018 9M 2019 9M 2018

CEDC (Cebu) 1,301 1,398 6,345 7,306

TPC (Toledo) 627 651 2,591 2,897

PEDC (Panay) 1,438 1,336 7,754 7,982

PPC (Panay) 68 44 660 463

GBH (Mindoro) 31 24 223 189

GESC (RES) 220 364 1,239 2,099

GTERC (TCITRC) - - 137 171

Others/Elimination (182) (191) (808) (935)

TOTAL 3,503 3,656 18,141 20,172

TOLL ROADS

(a) CII BR includes roads under pre- and on-going construction(b) Traffic affected by opening of alternative roads in DMT and integration works in PT Nusantara

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MPTC 9M 2019 HIGHLIGHTS

PHILIPPINES

Net Toll Revenues increased due to:

❑ NLEX - Revenues up by 13% from P8.1 billion to P9.2 billion

• 6% increase in average daily vehicle entries (open and closed

systems) from 250,992 to 266,908

• 6% increase in average daily kilometers travelled from 4.9 million to

5.2 million

❑ CAVITEX - Revenues up by 14% from P1.2 billion to P1.4 billion

• 13% increase in average daily vehicle entries from 143,907 to 163,143

❑ SCTEX - Revenues up by 18% from P1.6 billion to P1.8 billion

• 13% increase in average daily vehicle entries from 61,078 to 68,780

Growth in Core EBITDA driven by consolidation of PT Nusantara

Slower growth in Core Income due to higher financing costs, heavy repairs

provision and lower contribution of Don Muang Tollways and CII Bridges &

Roads

REGIONAL


Stand-alone Core Income 3,712 3,277 13%

MPTC (99.9%) 3,708 3,273 13%

Fair Value Adjustments (19) (17) 12%

MPIC Share 3,689 3,256 13%


Net toll revenues 13,499 11,251 20%

Cost of services (5,145) (3,858) 33%

Gross profit 8,354 7,393 13%


Other income and expense - net 927 594 56%

Share in earnings of associates 466 606 -23%

Interest expense - net (1,409) (1,308) 8%


Non-controlling interest (1,357) (1,153) 18%

Core income 3,712 3,277 13%




Core income 3,712 3,277 13%


Interest expense - net 1,409 1,308 8%


Non-controlling interest 1,357 1,153 18%

Others (466) (643) -28%

Core EBITDA 9,657 7,778 24%

9M 2019 CII BR(a) DMT(b) NUS(b)

Toll Revenues 825 3,518 1,122

Core Income 88 1,442 529

Traffic (In ‘000) 41 94 274

Length (In km)(a) 145.1 21.9 34.5

9M 2018 CII BR (a) DMT(b) NUS(b)

Toll Revenues 665 3,707 1,188

Core Income 27 1,765 286

Traffic (In ‘000) 33 100 313

Length (In km)(a) 146.1 21.9 34.5

TOLL ROADS KEY METRICS AND

PRIORITIES

18


NLEX

Class 1 Tariff: Open system - P48.2/entry (2019); P40.6/entry

(2018) / Closed system - P2.8/km (2019); P2.6/km (2018)

Average Daily Vehicle Entries (Open & Closed)

Class 1 206,996 194,663

Class 2 36,224 34,701

Class 3 23,688 21,628

Total 266,908 250,992

Average Daily Vehicle Entries (Open)

Class 1 155,163 148,366

Class 2 29,421 27,981

Class 3 18,062 16,756

Total 202,646 193,103

Average Daily Kilometers Travelled (In 000 km)

Class 1 3,918 3,675

Class 2 759 729

Class 3 523 485

Total 5,200 4,889

CAVITEX

Class 1 Tariff/entry: R1 - P22.7 (2019); P21.8 (2018) / R1

extension - P58.5 / C5 South Link: Tariff/entry: P19.6 (2019)


Class 1 146,593 128,129

Class 2 10,341 10,173

Class 3 6,209 5,605

Total 163,143 143,907

SCTEX

Class 1 Tariff: P3.2/km (2019); P2.7/km (2018)


Class 1 56,199 49,542

Class 2 7,465 7,069

Class 3 5,116 4,467

Total 68,780 61,078

STATUS OF NEW ROADS

Completed Projects

● NLEX Harbor Link Segment 10 – began operations on 28 February

2019

● C5 South Link Segment 3A-1 – began operations on 23 July 2019

● Cavite Laguna Expressway Sub-sections 6-8 – began operations on

30 October 2019

Ongoing Construction

● CAVITEX C5 South Link – target completion in 2022

● Cebu-Cordova Link Expressway – target completion in 2021

● Cavite Laguna Expressway – target completion in 2023

● NLEX-SLEX Connector Road – target completion in 2021

● NLEX Harbour Link Radial Road 10 – target completion in 2020

WATER

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MAYNILAD 9M 2019 HIGHLIGHTS

AND KEY METRICS

MAYNILAD

Revenues increased by 9% due to :

❑ 2% growth in billed volume from 394.4 MCM to 402.3

MCM

● 4% increase in billed customers from 1,395,958 to

1,446,438

❑ Tariff increases

● Inflation-linked: 5.7% in January 2019

● Basic: 2.7% in October 2018

Slower growth in Core Income due to higher concession

amortization costs



Maynilad (52.8%) 3,432 3,237 6%

Fair Value Adjustments (154) (148) 4%

Metropac Water Investments (99) (42) 136%

MPIC Share 3,179 3,047 4%


Revenues 18,035 16,553 9%

Cost of services (5,028) (4,772) 5%

Gross profit 13,007 11,781 10%


Other income and expense - net (425) (119) 257%

Interest expense - net (1,198) (1,260) -5%


Core income 6,500 6,130 6%

Non-core expense (50) (274) -82%

Reported Net Income 6,450 5,856 10%


Core income 6,500 6,130 6%


Interest expense - net 1,198 1,260 -5%


Core EBITDA 12,750 11,698 9%


NRW

Average 26.8% 30.5%

Period end 27.1% 29.1%

Coverage

Total population 10.27M 10.16M

Population coverage 9.66M 9.52M

24hr availability 99% 98%

Minimum 16 psi 67% 69%

Customer Mix

Domestic 80.1% 80.7%

Non-Domestic 19.6% 19.3%

Cross border 0.3% -

Capital Expenditure 8,729 9,016

HOSPITALS

20

MPHHI 9M 2019 HIGHLIGHTS

AND KEY METRICS


Stand-alone Core

IncomeMPIC Share

9M 2019 9M 2018 9M 2019 9M 2018

Asian Hospital 381 365 196 188

Cardinal Santos 294 223 177 134

Makati Medical 439 377 87 75

Riverside 174 152 82 71

Davao Doctors 235 187 71 42

Marikina Valley 106 98 59 55

Manila Doctors 255 187 31 22

Others 202 182 89 77

Total 2,086 1,771 792 664

Hospital Admin/FV adjustments (111) (78)

MPIC Share 681 586

Growth in Gross Revenues was driven by :

❑ Increase in patient numbers

● Out-patients – 10%

● In-patients – 6%

Stand-alone Core Income and MPIC share breakdown as follows:



Metro Pacific Hospital Holdings (60.1%) 792 664 19%

Admin and fair value adjustments (111) (78) 42%

MPIC Share 681 586 16%


Gross revenues 21,459 18,932 13%

Discounts (2,177) (1,858) 17%

Net revenues 19,282 17,074 13%

Cost of supplies (8,482) (7,484) 13%

Gross profit 10,800 9,590 13%


Interest expense (229) (166) 38%

Noncontrolling interest (9) (1) 800%

Other income 468 405 16%

Provision for income tax (903) (768) 18%

Core income 2,086 1,771 18%

Non-core income 3 7 -57%



Core income 2,086 1,771 18%


Interest expense 229 166 38%

Provision for income tax 903 768 18%

Noncontrolling interest 9 1

Core EBITDA 4,939 4,148 19%


Total number of beds 3,241 3,205

Number of accredited doctors 8,425 8,309

Number of enrollees 7,831 6,844

Average standard occupancy rate 72.0% 67.4%

Number of patients (in thousands)

In-patient 152 144

Out-patient 2,786 2,535

RAIL

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LRMC 9M 2019 HIGHLIGHTS

AND KEY METRICS

Rail Revenues decreased due to:

❑ Slight decline in average daily ridership from 452,892 to

445,373 due to more class suspensions and shortened

operating hours

Core EBITDA declined due to higher repairs and maintenance

costs

Non-Core Expense relates to foreign exchange losses


Stand-alone Core Income 408 544 -25%

LRMC (55%) 224 299 -25%

MPIC Share 224 299 -25%


Rail revenues 2,390 2,440 -2%

Cost of services (1,542) (1,435) 7%

Gross profit 848 1,005 -16%

Operating expenses (565) (490) 15%

Other income and expense - net 112 112 0%

Interest income (expense) - net 105 (15) 100%

Provision for income tax (92) (68) 35%



Reported net income 393 560 -30%



Depreciation and amortization 85 70 21%

Interest expense (income) - net (105) 15 -100%

Provision for income tax 92 68 35%

Core EBITDA 480 697 -31%

22

QUARTERLY HIGHLIGHTS


23

METRO PACIFIC TOLLWAYS 1Q 2019 2Q 2019 3Q 2019

FINANCIAL HIGHLIGHTS (In Millions of Pesos)

Net Revenues 4,243 4,680 4,576

Core EBITDA 2,866 3,392 3,399

Core Income 1,121 1,319 1,272

Reported Income 1,028 1,167 1,225

KEY METRICS

NLEX

Average Daily Vehicle Entries (Open & Closed)

Class 1 204,859 211,983 204,152

Class 2 36,328 36,239 36,107

Class 3 24,038 23,070 23,957

Total 265,225 271,292 264,216

Average Daily Kilometers Travelled (In thousands of kms)

Class 1 3,880 4,195 3,681

Class 2 764 769 744

Class 3 531 498 540

Total 5,175 5,462 4,965

CAVITEX


Class 1 143,366 147,838 148,519

Class 2 10,145 10,220 10,650

Class 3 6,422 6,172 6,038

Total 159,933 164,230 165,207

SCTEX


Class 1 56,088 60,210 52,339

Class 2 7,523 7,695 7,182

Class 3 5,194 4,920 5,233

Total 68,805 72,825 64,754

MERALCO 1Q 2019 2Q 2019 3Q 2019


Total Revenues 75,378 89,575 76,173

Core EBITDA 8,828 11,051 9,883

Core Income 5,598 6,719 6,136


KEY METRICS

Number of customers 6.40M 6.75M 6.82M

Energy Sales

Residential 3,010 4,136 3,774

Commercial 4,124 4,827 4,761

Industrial 3,212 3,444 3,612

Streetlights 35 35 35

Total (in gWh) 10,381 12,442 12,182

24

MAYNILAD 1Q 2019 2Q 2019 3Q 2019


Revenues 5,686 6,486 5,863

Core EBITDA 3,797 5,028 3,925

Core Income 1,821 2,778 1,901


KEY METRICS

Billed volume (In MCM) 128.5 139.2 134.6

Billed customers 1,420,580 1,434,544 1,446,438

Non-revenue water

Average 27.9% 25.6% 26.8%

Period end 26.3% 24.6% 27.1%

Service levels

24-hour coverage 98.1% 74.7% 98.8%

Minimum 16 psi 66.4% 26.3% 67.4%

HOSPITALS - AGGREGATE 1Q 2019 2Q 2019 3Q 2019

Revenues 7,166 6,673 7,620

Core EBITDA 1,688 1,388 1,863

Core Income 744 522 820

Reported Income 745 521 823

Total number of beds 3,204 3,218 3,241

Number of accredited doctors 8,344 8,441 8,425

Number of enrollees 9,056 6,815 7,831


KEY METRICS

LIGHT RAIL MANILA 1Q 2019 2Q 2019 3Q 2019


Net Revenues 832 747 811

Core EBITDA 239 105 136

Core Income 223 83 102

Reported Income 218 78 97

KEY METRIC

Average Daily Ridership 463,758 428,791 443,070


25

STATEMENTS OF FINANCIAL POSITION(Tentative)

26

METRO PACIFIC INVESTMENTS

CORPORATION – PARENT

BALANCE SHEET BALANCE SHEET (continued)

In PhP Millions Sept 2019 Dec 2018 In PhP Millions Sept 2019 Dec 2018

ASSETS LIABILITIES AND EQUITY

CURRENT ASSETS CURRENT LIABILITIES

Cash and short-term investments 19,082 9,048 Accounts payable and other current liabilities 2,503 2,252

Receivables - net 54 1,480 Due to related parties 5,499 4,385

Other current assets 411 1,262 Current portion of long-term debt 2,048 1,707

Total Current Assets 19,547 11,790 Total Current Liabilities 10,050 8,344

NONCURRENT ASSETS NONCURRENT LIABILITIES

Investments and advances to subs., associates & JVs 199,393 193,193 Noncurrent portion of long-term debt 83,173 65,294

Other noncurrent assets 509 536 Due to related parties 2,205 7,392

Total Noncurrent Assets 199,902 193,729 Other noncurrent liabilities 780 733

Total Noncurrent Liabilities 86,158 73,419

TOTAL ASSETS 219,449 205,519

Total Liabilities 96,208 81,763

EQUITY

Capital stock 31,638 31,633

Additional paid-in capital 68,531 68,494

Treasury shares (4) (178)

Other reserves 98 289

Retained earnings 22,978 23,518

Total Equity 123,241 123,756

TOTAL LIABILITIES AND EQUITY 219,449 205,519

As of As of

27

METRO PACIFIC INVESTMENTS

CORPORATION – CONSOLIDATED



ASSETS NONCURRENT LIABILITIES

CURRENT ASSETS Noncurrent portion of concession fees payable

Cash and cash equivalents and short term deposits 55,429 47,521 long-term debt and others 263,923 235,948

Receivables 12,825 12,495 Due to related parties 2,205 7,392

Other current assets 15,906 19,563 Deferred tax liabilities 10,979 9,930

Total Current Assets 84,160 79,579 Other noncurrent liabilities 11,130 9,411

Total Noncurrent Liabilities 288,237 262,681

NONCURRENT ASSETS

Investments and advances 155,124 152,993 Total Liabilities 351,971 318,943

Service concession assets 238,361 205,992

Property and equipment 74,007 71,926 EQUITY

Goodwill 27,471 27,856 Capital stock 31,638 31,633

Other noncurrent assets 23,524 19,600 Additional paid-in capital 68,531 68,494

Total Noncurrent Assets 518,487 478,367 Treasury shares (4) (178)

Other equity adjustments and reserves 72,844 8,829

TOTAL ASSETS 602,647 557,946 Retained earnings 7,597 64,533

Total equity attributable to owners of Parent 180,606 173,311

LIABILITIES AND EQUITY Non-controlling interest 70,070 65,692

CURRENT LIABILITIES Total Equity 250,676 239,003

Accounts payable and other current liabilities 36,593 33,484

Due to related parties 5,577 4,462 TOTAL LIABILITIES AND EQUITY 602,647 557,946

Current portion of concession fees payable

long-term debt and others 21,564 18,316

Total Current Liabilities 63,734 56,262

As of As of

TOLL ROADS

28

METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES




Current Assets Current Liabilities

Cash and short-term investments 4,680 7,162 Accounts payable and accrued liabilities 10,356 7,173

Receivables 1,158 1,120 Current portion of long-term debt 5,073 3,299

Other current assets 6,534 5,399 Other current liabilities 786 772

Total Current Assets 12,372 13,681 Total Current Liabilities 16,215 11,244

Noncurrent Assets Noncurrent Liabilities

Service concession assets 103,064 85,557 Long-term debt - net of current portion 54,154 46,026

Goodwill 9,754 10,417 Service concession obligation 21,679 20,784

Investment in associates 16,155 14,214 Deferred tax liabilities 3,938 3,440

Other noncurrent assets 10,292 10,776 Other noncurrent liabilities 4,698 1,637

Total Noncurrent Assets 139,265 120,964 Total Noncurrent Liabilities 84,469 71,887

TOTAL ASSETS 151,637 134,645 Total Liabilities 100,684 83,131

Equity



Other equity adjustments and reserves (9,933) (10,035)


Total Equity Attributable to Equity Holders

of Parent

42,694 41,497

Non-controlling interest 8,259 10,017

Total Equity 50,953 51,514


As of As of

(1) Current ratio as of September 30, 2019 is less than 1. However,

MPTC has committed undrawn lines of Php69 billion.

WATER

29

MAYNILAD WATER SERVICES INC. AND SUBSIDIARIES





Cash and short-term investments 8,369 11,549 Accounts payable and other current liabilities 16,892 16,205

Receivables 3,076 1,674 Current portion of interest-bearing loans 948 354

Other current assets 1,393 2,489 Current portion of service concession obligation 909 1,039

Total Current Assets (1) 12,838 15,712 Total Current Liabilities (1) 18,749 17,598

Non-current Assets Non-current Liabilities

Service concession assets 95,419 88,108 Interest-bearing loans - net of current portion 35,105 34,051

Property and equipment 1,609 1,401 Service concession obligation - net of current portion 6,322 6,012

Other noncurrent assets 2,822 2,699 Other noncurrent liabilities 2,800 1,977



Equity



Other equity adjustments and reserves (539) (519)




As of As of

(1) Current ratio as of September 30, 2019 is less than 1. However,

Maynilad has committed undrawn lines of Php6 billion.

RAIL

30

LIGHT RAIL MANILA CORPORATION





Cash and cash equivalents 1,754 1,561 Accounts payable and other current liabilities 1,269 715

Receivables 150 132 Income tax payable 21 24

Other current assets 486 530 Current portion of service concession obligation 257 63

Total Current Assets 2,390 2,223 Total Current Liabilities 1,547 802

Non-current Assets Non-current Liabilities

Service concession assets 21,904 15,971 Service concession obligation 3,298 3,333

Property and equipment 269 259 Loans payable 10,231 7,930

Other noncurrent assets 3,563 2,643 Other noncurrent liabilities 297 252



Equity



Other equity adjustments and reserves 24 24




As of As of

CAUTIONARY STATEMENTS

This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part

thereof may not be reproduced, disclosed or used without the prior written consent of Metro Pacific Investments

Corporation (the “Company”).

This presentation, as well as discussions arising therefrom, may contain statements relating to future

expectations and/or projections of the Company by its management team, with respect to the Company and its

portfolio companies. These statements are generally identified by forward-looking words such as “believe,”

“plan,” “anticipate,” “continue,””estimate,” “expect,” “may,” “will,” or other similar words. These statements are: (i)

presented on the basis of current assumptions which the company’s management team believes to be

reasonable and presumed correct based on available data at the time these were made, (ii) based on

assumptions regarding the Company’s present and future business strategies, and the environment in which it

will operate in the future, (iii) a reflection of our current views with respect to future events and not a guarantee of

future performance, and (iv) subject to certain factors which may cause some or all of the assumptions not to

occur or cause actual results to diverge significantly from those projected. Any and all forward looking

statements made by the Company or any persons acting on its behalf are deemed qualified in their entirety by

these cautionary statements.

This presentation is solely for informational purposes and should in no way be construed as a solicitation or an

offer to buy or sell securities or related financial instruments of the Company and/ or any of its subsidiaries

and/or affiliates.

ABOUT MPIC

Metro Pacific Investments Corporation (PSE:MPI) is a Philippine-based, publicly listed investment and management company, focused on

infrastructure, with holdings in Manila Electric Company, Maynilad Water Services, Inc., MetroPac Water Investments Corporation, Metro Pacific

Tollways Corporation, Metro Pacific Hospital Holdings Inc., Light Rail Manila Corporation and MetroPac Movers Inc..

HEADQUARTERS INVESTOR RELATIONS ([email protected])

10/F MGO Building, Legazpi corner Dela Rosa Streets, Head, Investor Relations – Maricris C. Aldover - Ysmael ([email protected])

Legazpi Village, Makati 0721 Philippines IR Manager – Owen Kieffer D. Ocampo ([email protected])

Phone: (+632) 888-0888 / Facsimile: (+632) 888-0813 IR Specialist – Jana Lyra M. Manlangit ([email protected])

Official Website: www.mpic.com.ph

Ticker: PSE:MPI

American Depositary Receipts

ADR Ticker: MPCIY

CUSIP: US59164L2007

Ratio: 1 ADR : 100 Ordinary

Shares

Depositary Bank:

Deutsche Bank Trust Company

Americas

ADR Broker Helpline:

+1 212 250 9100 (New York)

+44 207 547 6500 (London)

E-mail: [email protected]

ADR Website: www.adr.db.com

Depositary Bank’s Local

Custodian: Deutsche Bank Manila

31

mailto:[email protected]



http://www.mpic.com.ph/


http://www.adr.db.com/

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