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1
NINE MONTHS 2019 FINANCIAL RESULTS ANALYSTS’ BRIEFING
06 NOVEMBER 2019
2
TABLE OF CONTENTS
Consolidated Financial Highlights Page 3
POWER
Financial Highlights 4
Expansion Updates 5
TOLL ROADS
Financial Highlights 6
Expansion Updates 7
WATER
Financial Highlights 8
Metropac Water 9
HOSPITALS
Financial Highlights 10
LIGHT RAIL, LOGISTICS AND OTHERS
Financial Highlights 11
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
3
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%
Financial Highlights
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%
Key Performance Indicators
Energy sales (in GWh) 3,503 3,656 -4%
MERALCO
GLOBAL BUSINESS POWER CORPORATION (GBPC)
TO MERGE
POWER
5
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
6
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
In Millions of Pesos
CONTRIBUTION TO MPIC 9M 2019 9M 2018 %
Metro Pacific Tollways (99.9%) 3,708 3,273 13%
Fair value adjustments (19) (17) 12%
3,689 3,256 13%
STAND-ALONE PERFORMANCE 9M 2019 9M 2018 %
Financial Highlights
Revenues 13,499 11,251 20%
Core EBITDA 9,657 7,778 24%
Core income 3,712 3,277 13%
Reported income 3,420 3,312 3%
Capital expenditure 18,208 6,748 170%
Key Performance Indicators
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
7
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
8
In Millions of Pesos
CONTRIBUTION TO MPIC 9M 2019 9M 2018 %
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%
STAND-ALONE PERFORMANCE 9M 2019 9M 2018 %
Financial Highlights
Revenues 18,035 16,553 9%
Core EBITDA 12,750 11,698 9%
Core income 6,500 6,130 6%
Reported income 6,450 5,856 10%
Capital expenditure 8,729 9,016 -3%
Key Performance Indicators
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
9
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
10
In Millions of Pesos
CONTRIBUTION TO MPIC 9M 2019 9M 2018 %
Metro Pacific Hospital Holdings (60.1%) 792 664 19%
Hospital admin and fair value adjustments (111) (78) 42%
681 586 16%
STAND-ALONE PERFORMANCE 9M 2019 9M 2018 %
Financial Highlights
Revenues 21,459 18,932 13%
Core EBITDA 4,939 4,148 19%
Core income 2,086 1,771 18%
Reported income 2,089 1,778 17%
Capital expenditure 2,796 2,728 2%
Key Performance Indicators
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
11
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
In Millions of Pesos
LIGHT RAIL
CONTRIBUTION TO MPIC 9M 2019 9M 2018 %
Light Rail Manila (55.0%) 224 299 -25%
STAND-ALONE PERFORMANCE 9M 2019 9M 2018 %
Financial Highlights
Farebox revenues 2,390 2,440 -2%
Core EBITDA 480 697 -31%
Core income 408 544 -25%
Reported income 393 560 -30%
Capital expenditure 6,265 5,087 23%
Key Performance Indicators
Average daily ridership 445,373 452,892 -2%
OTHERS
CONTRIBUTION TO MPIC 9M 2019 9M 2018 %
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
12
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
13
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
14
STAND-ALONE PORTFOLIO COMPANY RESULTS
AND KEY METRICS
POWER
15
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
16
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
In Millions of Pesos 9M 2019 9M 2018 %
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%
Operating expenses (4,529) (4,494) 1%
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%
Non-core income (expense) (111) 17 -753%
Reported net income 1,845 1,916 -4%
Core EBITDA Computation:
Core income 1,956 1,899 3%
Depreciation and amortization 2,170 1,873 16%
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
17
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
In Millions of Pesos 9M 2019 9M 2018 %
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%
In Millions of Pesos 9M 2019 9M 2018 %
Net toll revenues 13,499 11,251 20%
Cost of services (5,145) (3,858) 33%
Gross profit 8,354 7,393 13%
Operating expenses (1,611) (1,478) 9%
Other income and expense - net 927 594 56%
Share in earnings of associates 466 606 -23%
Interest expense - net (1,409) (1,308) 8%
Provision for income tax (1,658) (1,377) 20%
Non-controlling interest (1,357) (1,153) 18%
Core income 3,712 3,277 13%
Non-core income (expense) (292) 35 -934%
Reported net income 3,420 3,312 3%
Core EBITDA Computation:
Core income 3,712 3,277 13%
Depreciation and amortization 1,987 1,306 52%
Interest expense - net 1,409 1,308 8%
Provision for income tax 1,658 1,377 20%
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
KEY METRICS 9M 2019 9M 2018
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)
Average Daily Vehicle Entries
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)
Average Daily Vehicle Entries
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
19
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
In Millions of Pesos 9M 2019 9M 2018 %
Stand-alone Core Income 6,500 6,130 6%
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%
In Millions of Pesos 9M 2019 9M 2018 %
Revenues 18,035 16,553 9%
Cost of services (5,028) (4,772) 5%
Gross profit 13,007 11,781 10%
Operating expenses (2,487) (2,165) 15%
Other income and expense - net (425) (119) 257%
Interest expense - net (1,198) (1,260) -5%
Provision for income tax (2,397) (2,107) 14%
Core income 6,500 6,130 6%
Non-core expense (50) (274) -82%
Reported Net Income 6,450 5,856 10%
Core EBITDA Computation:
Core income 6,500 6,130 6%
Depreciation and amortization 2,655 2,201 21%
Interest expense - net 1,198 1,260 -5%
Provision for income tax 2,397 2,107 14%
Core EBITDA 12,750 11,698 9%
KEY METRICS 9M 2019 9M 2018
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
In Millions of Pesos
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:
In Millions of Pesos 9M 2019 9M 2018 %
Stand-alone Core Income 2,086 1,771 18%
Metro Pacific Hospital Holdings (60.1%) 792 664 19%
Admin and fair value adjustments (111) (78) 42%
MPIC Share 681 586 16%
In Millions of Pesos 9M 2019 9M 2018 %
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%
Operating expenses (8,041) (7,289) 10%
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%
Reported net income 2,089 1,778 17%
Core EBITDA Computation:
Core income 2,086 1,771 18%
Depreciation and amortization 1,712 1,442 19%
Interest expense 229 166 38%
Provision for income tax 903 768 18%
Noncontrolling interest 9 1
Core EBITDA 4,939 4,148 19%
KEY METRICS 9M 2019 9M 2018
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
21
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
In Millions of Pesos 9M 2019 9M 2018 %
Stand-alone Core Income 408 544 -25%
LRMC (55%) 224 299 -25%
MPIC Share 224 299 -25%
In Millions of Pesos 9M 2019 9M 2018 %
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%
Core income 408 544 -25%
Non-core income (expense) (15) 16 -194%
Reported net income 393 560 -30%
Core EBITDA Computation:
Core income 408 544 -25%
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
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
Average Daily Vehicle Entries
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
Average Daily Vehicle Entries
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
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Total Revenues 75,378 89,575 76,173
Core EBITDA 8,828 11,051 9,883
Core Income 5,598 6,719 6,136
Reported Income 5,671 6,336 6,314
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
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
Revenues 5,686 6,486 5,863
Core EBITDA 3,797 5,028 3,925
Core Income 1,821 2,778 1,901
Reported Income 1,819 2,738 1,893
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
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
KEY METRICS
LIGHT RAIL MANILA 1Q 2019 2Q 2019 3Q 2019
FINANCIAL HIGHLIGHTS (In Millions of Pesos)
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
QUARTERLY HIGHLIGHTS
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
BALANCE SHEET BALANCE SHEET (continued)
In PhP Millions Sept 2019 Dec 2018 In PhP Millions Sept 2019 Dec 2018
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
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 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
Capital stock 13,150 13,150
Additional paid-in capital 26,217 26,217
Other equity adjustments and reserves (9,933) (10,035)
Retained earnings 13,260 12,165
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
TOTAL LIABILITIES AND EQUITY 151,637 134,645
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
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 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
Total Noncurrent Assets 99,850 92,208 Total Noncurrent Liabilities 44,227 42,040
TOTAL ASSETS 112,688 107,920 Total Liabilities 62,976 59,638
Equity
Capital stock 4,547 4,547
Additional paid-in capital 10,033 10,033
Other equity adjustments and reserves (539) (519)
Retained earnings 35,671 34,221
Total Equity 49,712 48,282
TOTAL LIABILITIES AND EQUITY 112,688 107,920
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
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 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
Total Noncurrent Assets 25,736 18,873 Total Noncurrent Liabilities 13,826 11,515
TOTAL ASSETS 28,126 21,096 Total Liabilities 15,373 12,317
Equity
Capital stock 6,850 5,050
Additional paid-in capital 3,745 1,963
Other equity adjustments and reserves 24 24
Retained earnings 2,134 1,742
Total Equity 12,753 8,779
TOTAL LIABILITIES AND EQUITY 28,126 21,096
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