nine months 2017 financial results analysts’ briefing · cautionary statements this presentation...

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NINE MONTHS 2017 FINANCIAL RESULTS ANALYSTS’ BRIEFING

08 November 2017

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, AVP 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

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

2

mailto:[email protected]


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


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

9M 2017 CORE INCOME UP 22% TO P11.3B

3

22% increase in Core Income was driven by:

Expanded Power portfolio through increased

investments in MERALCO and Global Business

Power Corporation

Robust traffic growth on all toll roads

Continuing growth in the Hospitals business

Increase in interest expense is due to new debt

drawdowns amounting to P7.5 billion in 2016 and

P10.5 billion in 2017 (proceeds were primarily used to

fund additional investments in Power and Toll Roads);

and interest accretion on payable to PCEV totaling

P16.7 billion for the step up in Beacon in May 2016

and June 2017

Non-core expenses in 9M 2017 are primarily made up

of refinancing expenses, project expenses and a

separation expense resulting from Maynilad’s

redundancy program, largely offset by a realized gain

on sale of shares in MERALCO

CONSOLIDATED FINANCIAL HIGHLIGHTS

MPIC Group Aggregated

Revenues grew by 11% from

P252.4 billion to P280.3 billion

In Millions of Pesos 9M 2017 9M 2016 % Change

MPIC share

Power 7,573 5,685 33%

Toll Roads 2,996 2,618 14%

Water 2,801 2,705 4%

Hospitals 518 443 17%

Rail 210 229 -8%

Others (37) (51) -27%

Share of operating income 14,061 11,629 21%

Head office expenses (860) (803) 7%

Interest expense (1,871) (1,542) 21%

Core income 11,330 9,284 22%

Non-core expenses (202) 196 -203%

Reported income 11,128 9,480 17%

In Centavos

Diluted EPS on Core Income 35.90 31.36 14%

Toll Roads21%

Water20%

Hospitals and Others

5%

Power54%

EARNINGS CONTRIBUTION MIX

9M 2017

Toll Roads22%

Water23% Hospitals and

Others6%

Power49%

9M 2016

POWER

4

CONTRIBUTION UP BY 33% TO P7.6BDeepened participation in the Philippine Power sector

*Acquired 42% effective interest of GBPC under Beacon PowerGen on 27 May 2016

**Increased economic interest from 50% to 75% in May 2016, increased further to

100% in June 2017

33% increase in contribution from the Power

business was driven by:

Increase in effective ownership in Meralco

Full nine months contribution from Global

Business Power Corporation (acquired in May

2016)

Higher share in dividend income from Beacon

Electric preferred shares offset by increase in

interest expense

CONTRIBUTION TO MPIC 9M 2017 9M 2016 %

Meralco (from 32.5% to 45.5%) 6,559 5,471 20%

GBPC (from 42.0 to 62.4%)* 1,058 436 143%

Beacon (from 75.0% to 100.0%)** 917 26 3427%

Fair value / accounting adjustments (961) (248) 288%

7,573 5,685 33%

STAND-ALONE PERFORMANCE 9M 2017 9M 2016 %

Revenues 214,389 195,164 10%

Core EBITDA 26,268 26,216 0%

Core income 15,370 14,966 3%


Capital expenditure 8,075 7,634 6%

Key Performance Indicators

Energy sales (in GWh) 31,401 30,103 4%

System loss 6.05% 6.40% N/A

Revenues 17,227 12,956 33%

Core EBITDA 6,979 6,185 13%

Core income 2,079 1,939 7%


Capital expenditure 1,141 3,545 -68%


Energy sales (in GWh) 3,278 2,691 22%

MERALCO

GLOBAL BUSINESS POWER CORPORATION

POWER

5

EXPANSION UPDATES

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

● Aims to convert approximately 3,000 tons of waste to 42 MW of energy

● Granted original proponent status

● Detailed discussion on concession framework ongoing

GBPC – Acquisition of 50% of Alsons Thermal Energy Corporation

● Cleared by the Philippine Competition Commission on 25 September 2017

● Finalization ongoing

1x455MW San Buenaventura Power, Quezon (Target completion in 2019)

● Ongoing construction proceeding as scheduled

2x300 MW Redondo Peninsula Energy, Subic (Target completion of Phase 1 in 2020)

● Construction contracts and debt-financing agreements are in place

● Limited site works ongoing in preparation for full construction works after ERC PSA

approval

2x600MW Atimonan One Energy, Quezon (Target completion of Unit 1 in 2021)

● Connection Agreement with NGCP executed in January 2017; 23-km Transmission Line

approved by the ERC in February 2017

● Evaluation of the EPC bids received from contractors is in the final stage

● Mandate Letter for up to P107.5B from a group of 7 local banks signed

TOLL ROADS

6

14% increase in contribution from the

Toll Roads business was driven by:

Strong traffic growth on all roads and

favorable vehicle mix

o 8% increase in system-wide

average daily vehicle entries to

589,307

CONTRIBUTION UP BY 14% TO

P3.0B Surging traffic growth

In Millions of Pesos


Metro Pacific Tollways (99.9%) 3,020 2,654 14%

Fair value adjustments (24) (36) -33%

2,996 2,618 14%


Revenues 9,605 8,794 9%

Core EBITDA 6,259 5,292 18%

Core income 3,024 2,365 28%



Average Daily Vehicle Entries

NLEX 233,243 217,191 7%

CAVITEX 137,627 127,632 8%

SCTEX 53,406 43,600 22%

Don Muang / CII Bridges & Roads 150,536 144,436 4%


METRO PACIFIC TOLLWAYS CORPORATION

TOLL ROADS

7

EXPANSION UPDATES

CAVITEX (14 kms)

140,000 average

daily vehicles

Harbour Link(11 kms)

part of NLEX

concession

NLEX-SLEX

Connector Road(8 kms)

Citi Link(8 kms)

part of NLEX

concession

C5 South Link(8 kms)

part of CAVITEX

concession

CALA

Expressway(47 kms)

PHILIPPINES

REGIONAL INVESTMENTS

Ongoing Construction

● Harbour Link Segment 10 – expected to be completed in 2Q 2018

● CAVITEX C5 Link – target completion in 2020

Ongoing Right-of-Way Acquisition

● NLEX-SLEX Connector Road – to begin construction in 2Q 2018;

target completion in 2020

● Cavite Laguna Expressway – ground breaking held in June 2017;

target completion in 2021

● Cebu-Cordova Link Expressway – ground breaking held in March

2017; target completion in 2020

Acquisition of 48.3% of PT Nusantara Infrastructure

● Listed Indonesian infrastructure company with investments in toll

roads and other non-core assets such as telecom towers, water,

ports and energy

➢ Toll roads account for 80% of Core Income

TOLL ROADSACQUISITION OF 48.3% OF PT

NUSANTARA INFRASTRUCTURE TBK

Total Consideration: P7.5 billion to be paid upon completion of closing conditions and deliverables to be

funded by bank debt at the MPTC level

Company Background: PT Nusantara is a listed Indonesian infrastructure company with investments in

tollroads, telecom towers, water, ports and energy.

Existing Toll Roads – accounts for approx. 80% of Core Income

Financial Highlights (IDR 1: PHP 0.0038)

Bintaro -

SerpongPenjaringan Pelabuhan

Seksi

Empat

Makassar

Length (In km) 7.25 9.70 5.95 11.57

Concession expiry 2028 2042 2028 2041

Average daily traffic 79,133 103,309 57,232 42,423

Traffic growth

(5-year CAGR)4.8% 31.6% 8.7% 16.9%

Toll Rate / Class 1

(In IDR)6,000 9,500

2,500 /

3,500

4,500 /

8,500

NON-CORE ASSETS

Ports - Panjang Seaport

▪ Dry and liquid cargo terminal – concession until 2022

▪ Current tank storage capacity - 105,000 MT

Water Treatment Plants

▪ Cikokol Water – concession until 2019

▪ Medan Industrial – concession until 2033

▪ East Serang Regency – concession until 2038

Renewable Energy - Lau Gunung Mini Hydro Power Plant

▪ 15 MW installed capacity

▪ To begin operations in 2H 2018 – concession until 2033

Telecommunications Tower

▪ 1,024 towers – mainly located in Sumatra and Central JAVA

▪ Typical 10 year lease contracts – until 2025

In PHP M 2013 2014 2015 2016

Revenues 1,615 1,966 2,345 3,743

EBITDA 732 1,056 1,325 1,760

Operating

income

487 768 997 1,343

8

WATER

9

CONTRIBUTION UP BY 4% TO P2.8B Slightly higher billed volume



Maynilad (52.8%) 2,943 2,846 3%

Fair value adjustments (144) (120) 20%

Metropac Water Investments Corp. (MWIC) 2 (21) -110%

2,801 2,705 4%


Revenues 15,578 15,220 2%

Core EBITDA 10,764 11,051 -3%

Core income 5,575 5,391 3%



Billed volume (In MCM) 383 374 2%

Non-revenue water % - average* 32.2% 29.7% 8%

Non-revenue water % - period end* 32.5% 30.6% 6%


MAYNILAD WATER SERVICES INC.

4% increase in contribution from the Water


3% increase in Maynilad’s Core Income

▪ 2% growth in billed volume

▪ Tight control of operating expenses

Contribution from MWIC – impact of

earnings from Eco-system Technologies

(acquired in June 2016)

*NRW increased due to abnormality in water production in connection with last year’s

El Niño phenomenon

WATER

10

EXPANSION UPDATES

EXISTING BUSINESSES

Metro Iloilo Bulk Water Supply Corp.

● Commenced operations on 5 July 2016

● Potential capacity of up to 170 million liters per

day

● Ongoing rehabilitation of water facility; target

completion by 2Q 2018

Laguna Water District Aquatech Resources

Corporation

● Commenced operation and management of

the distribution network of the Laguna Water

District on 1 January 2016

Cagayan de Oro Water District

● Supply agreement for 100 MLD of treated bulk

water over a term of 30 years, renewable for

another 20 years, signed in August 2017

BUSINESS DEVELOPMENT EFFORTS

Pampanga Bulk Water Supply Project

● Granted original proponent status in August

2017

● Detailed discussion on concession framework

ongoing

EXPANSION PIPELINE

TARGET# OF

PROJECTS

POP.

(In Millions)

POTENTIAL

VOLUME

(In MLD)

Full

Concession8 4.4 813

Bulk Water 11 7.5 910

Others 7 7.2 1,491

TOTAL 26 19.1 3,214

HOSPITALS

11



Metro Pacific Hospital Holdings (60.0%) 577 485 19%

Hospital admin and fair value adjustments (59) (42) 40%

518 443 17%


Revenues 16,530 14,582 13%

Core EBITDA 3,629 3,243 12%

Core income 1,510 1,333 13%



Total beds available 2,967 2,814 5%

Average standard occupancy rate 66.4% 70.2% -5%

No. of in-patients 124,573 118,141 5%

No. of out-patients 2,293,042 2,017,166 14%


HOSPITALS (AGGREGATED)

CONTRIBUTION UP BY 17% TO

P518M Strong growth and continuing expansion

17% increase in contribution from the Hospital


7% is attributable to contributions from the new

hospital acquisitions – Marikina Valley Medical

Center and Jesus Delgado Memorial Hospital

10% is attributable to organic growth driven by:

▪ Lower interest expense

▪ Cost savings from purchasing synergies

▪ Increasing outpatient revenues across all

hospitals and increasing enrollees in schools

HOSPITALS

12

EXPANSION UPDATES

Dr. Jesus C. Delgado Memorial Hospital

● 69 bed capacity

● Acquired 65% ownership in January 2017

St. Elizabeth Hospital

● 248 bed capacity

● Acquired 54% ownership in October 2017

Top Health Medical Clinic

● Full service, multi-diagnostic medical facility

located in SM San Lazaro

Cancer Center – Batangas

● Joint venture with Lipa Medix

13

RAIL, LOGISTICS AND OTHERS

RAIL

As expected, decrease in contribution from the

Rail business was a function of:

7% growth in average daily ridership

dampened by higher usage of stored value

cards

Higher expenses from increased headcount

and maintenance in line with expanded

operations (increased the number of LRVs

thereby improving service levels)


RAIL


Light Rail Manila (55.0%) 209 233 -10%

Holding company admin 1 (4) -124%

210 229 -8%


Farebox revenues 2,327 2,224 5%

Core EBITDA 590 557 6%

Core income 380 424 -10%

Reported income 372 428 -13%


Average daily ridership 431,281 404,307 7%

Capital expenditure 959 3,666 -74%

OTHERS


AF Payments Inc. (20.0%) (68) (94) -28%

Metropac Movers Inc. (76.0%)* - 19 -100%

Indra Philippines (25.0%) 31 24 29%

(37) (51) -27%

LIGHT RAIL MANILA CORPORATION

*Acquired in May 2016

RAIL

14

EXPANSION UPDATES

LRT 1 South Extension Project

● Issued Notice to Proceed to EPC contractors to begin

construction work in August 2017

● On-going right-of-way acquisition – Basic ROW package 1

acquired

● Groundbreaking held in May 2017

MRT 3 – Unsolicited Proposal

Full Rehabilitation – capex commitment of P12.5 billion

● Replacement of tracks and signaling equipment - Increase

track speed from 40kph to 65kph and reduce headway from

4 minutes to 2.5 minutes

● Station upgrade; depot rehabilitation

30-year Operations and Maintenance Contract – ensure

KPIs are at par with best practices in railway operations

UPDATES ON REGULATORY MATTERS AND2017 OUTLOOK

15

PENDING

INCREASE

(%)

PERIODS

COVERED

CUMULATIVE

REVENUE LOSS /

CLAIMS

STATUS

WATER

Maynilad 10% 2013 to 2017 P10.6 billion Maynilad is now in discussion with Government on settling its

claim. However, the issue of the tariff going forward remains

unresolved.

TOLL ROADS*

NLEX

CAVITEX

SCTEX

20%

25% / 42%

48%

2013 to 2017

2012 to 2017

2015 to 2017

P5.4 billion

P1.2 billion

P0.8 billion

Ongoing discussions with Government on possible two-stage

settlement

Stage 1 - Tariff catch-up

Stage 2 – Compensation for cumulative claims

RAIL 20% 2015 to 2017 P0.9 billion Establishing mechanisms for offset available in the

concession agreement in coordination with the Government

TOTAL P18.9 billion

MPIC SHARE P8.4 billion

Constructive discussions with Government are in progress and there is agreement that contracts will

be honored – resolution of outstanding issues deemed imminent

2017 FULL YEAR CORE INCOME OUTLOOK – P13.8 BILLION

Overall Considerations

Does not take into account any resolution of outstanding tariff claims

Stable volume growth across all businesses

Impact of increased ownership in existing business and new acquisitions

*Net of government share

16

STAND-ALONE PORTFOLIO COMPANY RESULTS

AND KEY PRIORITIES

POWER

17

MERALCO 9M 2017 HIGHLIGHTS

In Millions of Pesos 9M 2017 9M 2016 %

Stand-alone Core Income 15,370 14,966 3%

Meralco (32.5% - 45.5%) 6,559 5,471 20%

Fair Value Adjustments (738) (225) 228%

Beacon Electric (50.0% - 100.0%) 1,332 176 657%

MPIC Share 7,153 5,422 32%

10% increase in Electricity Revenues was a function of:

4% growth in total energy sales from 30,103 GWh to

31,401 GWh (4.4% ↑ commercial, 4.3% ↑

residential, and 4.2% ↑ industrial sector)

5% growth in number of customers from 5.98M to

6.25M

12% increase in pass-through generation charges

driven by the scheduled shutdown of Malampaya gas

facilities; extended maintenance on other plants; and

higher fuel prices and depreciation of the Peso

versus US dollar

8% decline in Non-electricity Revenues was due lower

project completion of MIESCOR and MSERV; and lower

turn-out of insurance renewal coverages in RSIC

Flat EBITDA driven by higher contracted services and

lower contribution from subsidiaries

Faster growth in Core Income than Core EBITDA was a

result of reduced losses from FPM Power

In Millions 9M 2017 9M 2016 %

Electricity 208,848 189,135 10%

Non-Electricity 5,541 6,029 -8%

Total revenues 214,389 195,164 10%

Purchased power (162,777) (144,423) 13%

Operating expenses (31,031) (30,518) 2%

Other income 1,019 964 6%

Provision for income tax (6,140) (6,077) 1%

Non-controlling interests (90) (144) -38%

Core income 15,370 14,966 3%

Non-core income 558 710 -21%

Reported net income 15,928 15,676 2%

Core EBITDA Computation:

Core income 15,370 14,966 3%

Depreciation and amortization 5,231 5,206 0%

Interest income - net (486) (544) -11%

Provision for income tax 6,140 6,077 1%

Others 14 511 -97%

Core EBITDA 26,269 26,216 0%

POWER KEY METRICS AND PRIORITIES

MERALCO POWER GENERATION UPDATES

1x455MW San Buenaventura Power, Mauban, Quezon (Target

completion in mid-2019)

• Ongoing construction proceeding as scheduled

2x300 MW Redondo Peninsula Energy, Subic (Target completion of

Phase 1 in 2020)

• Construction contracts and debt-financing agreements are in place

• Limited site works ongoing in preparation for full construction works after

ERC Power Supply Agreement approval

2x600MW Atimonan One Energy, Quezon (Target completion of Unit 1

in 2021)

• Connection Agreement with NGCP executed in January 2017; 23-km

Transmission Line (from Atimonan Power Plant site to New Pagbilao

Substation) approved by the ERC in February 2017

• Evaluation of the EPC bids received from contractors is in the final stage

• Mandate Letter for up to P107.5B from a group of 7 local banks signed

• Signed MOU with MIESCOR for the construction of the Transmission Line

2x350MW St. Raphael Power Generation Corporation, Calaca, Batangas

• Ongoing development activities

• Grid Impact Study for proposed transmission line interconnection

approved by NGCP in February 2017

18

KEY METRICS 9M 2017 9M 2016

12-MMA System Loss 6.05% 6.40%

System Average Interruption

Frequency Index1.45 times 1.79 times

Customer Average Interruption

Duration Index97.23 min 103.61 min

Number of customer accounts 6.25M 5.98M

Capital Expenditure 8,075 7,634

Energy Sales

Residential 9,815 9,412

Commercial 12,382 11,856

Industrial 9,102 8,735

Streetlights 102 100

Total (in GWh) 31,401 30,103

POWER

19

GLOBAL BUSINESS POWER CORP.

9M 2017 HIGHLIGHTS

Revenue growth was mainly driven by the start of

commercial operations of PEDC3

Slower growth in Core EBITDA than Revenues due to

higher fuel costs

Slower growth in Core Income than EBITDA due to expiry

of the Income Tax Holiday of CEDC and PEDC (1&2) in

November 2016 and March 2017, respectively



GBPC (42%)* 1,058 436 143%


Beacon PowerGen (415) (150) 177%

MPIC Share 420 263 60%

*Acquired 42% effective interest of GBPC under Beacon PowerGen on 27 May 2016


Power billings 17,160 12,923 33%

Coal sales 67 33 103%

Total revenues 17,227 12,956 33%

Power plant costs (7,941) (4,651) 71%


Interest expense - net (1,389) (1,580) -12%

Other income 111 67 66%

Provision for income tax (1,013) (13) 7692%

Non-controlling interests (768) (992) -23%

Core income 2,079 1,939 7%

Non-core expense (45) (89) -49%



Core income 2,079 1,939 7%


Interest expense - net 1,389 1,580 -12%

Provision for income tax 1,013 13 7692%

Non-controlling interests 768 992 -23%

Core EBITDA 6,979 6,185 13%


Volume Sold (in GWh)

Bilateral - Generation 2,765 2,398

Bilateral - WESM 261 199

WESM - Spot Sales 252 93

Total 3,278 2,691

TOLL ROADSIn Millions of Pesos 9M 2017 9M 2016* %


MPTC (99.9%) 3,020 2,654 14%

Fair Value Adjustments (24) (36) -33%

MPIC Share 2,996 2,618 14%

*Includes Don Muang Tollway contribution

20

MPTC 9M 2017 HIGHLIGHTS

Net Toll Revenues increased due to:

NLEX - Revenues up by 7% from P6.6 billion to P7.1 billion

• 7% increase in average daily vehicle entries (open & closed systems) from

217,191 to 233,243

• 8% increase in average daily kilometers travelled from 4.27M to 4.59M

CAVITEX - Revenues up by 11% from P1.0 billion to P1.1 billion

• 8% increase in average daily vehicle entries from 127,632 to 137,627 –

Class 3 grew fastest at 16%

SCTEX - Revenues up by 19% from P1.1 billion to P1.4 billion

• 22% increase in average daily vehicle entries from 43,600 to 53,406 –

Class 3 grew fastest at 30%

Faster growth in Core EBITDA due to lower operators fee driven by

renegotiated O&M contract with TMC from January to March 2017 and savings

from consolidation of TMC starting April 2017

Core Income grew faster due to equity share in DMT (transferred to MPTC in

September 2016)

Reported income was boosted by a non-cash accounting gain on revaluing

TMC in preparation for its merger with NLEX Corp.

Don Muang Tollway

Contribution amounted to P315 million net of financing costs

2% increase in average daily vehicles entries for Original Tollway from

95,476 to 97,838

Slight decline in average daily vehicle entries for North Extension from

56,389 to 55,877

CII Bridges & Roads

Contribution amounted to P49 million

8% increase in average daily vehicle entries from 48,960 to 52,698


Net toll revenues 9,605 8,794 9%

Cost of services (3,420) (3,671) -7%

Gross profit 6,185 5,123 21%

Operating expenses (1,028) (928) 11%

Other income and expense - net 186 275 -32%

Share in earnings of associates 507 319 59%

Interest expense - net (959) (820) 17%

Provision for income tax (998) (900) 11%

Non-controlling interest (869) (704) 23%

Core income 3,024 2,365 28%

Non-core income (expenses) 1,483 (185) -902%



Core income 3,024 2,365 28%

Depreciation and amortization 916 823 11%

Interest expense - net 959 820 17%

Provision for income tax 998 900 11%

Others (507) (320) 58%

Non-controlling interest 869 704 23%

Core EBITDA 6,259 5,292 18%

TOLL ROADS KEY METRICS AND

PRIORITIES


Class 1 180,127 166,914

Class 2 33,073 31,445

Class 3 20,043 18,832

Total 233,243 217,191

Class 1 137,956 129,113

Class 2 26,700 25,379

Class 3 15,724 14,695

Total 180,380 169,187

Class 1 3,425 3,155

Class 2 701 672

Class 3 465 443

Total 4,591 4,270

Class 1 122,599 113,748

Class 2 9,986 9,520

Class 3 5,042 4,364

Total 137,627 127,632

Class 1 43,621 35,420

Class 2 6,013 5,283

Class 3 3,772 2,897

Total 53,406 43,600

SCTEX (Class 1 Tariff: P2.8/km)


NLEX (Class 1 Tariff: Open system - P40.2/entry / Closed system - P2.4/km)

Average Daily Vehicle Entries (Open & Closed)

Average Daily Kilometers Travelled (In thousands of kms)

CAVITEX (Class 1 Tariff/entry: R1 - P21.4 / R1 extension - P57.1)


Average Daily Vehicle Entries (Open)

PROJECTS Length Project CostTarget

CompletionStatus

Philippines (In Kms) (In Billions)

Expansions to existing roads

NLEX Widening (Phase 2) N/A 3.0 2020 Investment proposal for submission in

4Q 2017

San Fernando Interchange

improvement

N/A 0.3 1Q 2018 Substantially complete

NLEX Harbour Link (Segment 10) 5.8 10.5 2Q 2018 Ongoing construction

NLEX Segment 10 - R10 Section 2.6 6.0 2019 Ongoing preconstruction works;

groundbreaking held in August 2017

CAVITEX Segment 4 1.3 1.3 2021 Ongoing ROW acquisition

CAVITEX - C5 South Link 7.7 12.6 1Q 2020 Seg. 3A Ph.1 - Ongoing construction;

Seg. 3A Ph.2 and 3B - Ongoing

discussion on DED for Ph.2

completed; Seg. 2 - Ongoing review

of DED by independent consultant

NLEX Citi Link 7.5 8.0 2021 Ongoing ROW acquisition

New road projects awarded

Cebu Cordova Link Expressway 8.3 26.3 2020 Ongoing finalization of agreement with

Contractor

Cavite Laguna Expressway 44.6 16.9 2021 Laguna segment - Ongoing

construction; Ongoing ROW

acquisition

NLEX-SLEX Connector Road 8.0 23.3 2020 Ongoing ROW acquisition; To begin

construction by 2018; certified DED

submitted to DPWH

TOTAL 85.8 108.2

CII Bridges and Roads ( P 18.4 billion project cost)

38 kilometers under construction – target completion in 2019

23 kilometers under development

PROJECTS UNDER CONSTRUCTION / DEVELOPMENT

Vietnam

21

WATER

22

MAYNILAD 9M 2017 HIGHLIGHTS

MAYNILAD

Revenues increased by 2% due to:

2% growth in volume sales from 374.2 MCM to 383.4 MCM

• 4% increase in billed customers from 1,301,619 to

1,347,747

Decline in Core EBITDA due to higher indirect tax provisions and

utility costs

Growth in Core Income due to lower interest expense and

provision for deferred tax

Reported income grew faster due to lower non-core expenses –

9M 2017 pertains to a one-time separation expense as a result of

redundancy program while 9M 2016 is related to deferred tax

remeasurement from OSD election

Other Businesses – Stand-alone

PhilHydro – Gross Revenues of P171 million and Operating

Income of P50 million; billed volume increased from 34.1 MLD to

43.5 MLD

Subic Water – Gross Revenues of P491 million and Net Income

of P128 million



Maynilad (52.8%) 2,943 2,846 3%


Metropac Water Investments 2 (21) -110%

MPIC Share 2,801 2,705 4%


Revenues 15,578 15,220 2%

Cost of services (4,467) (4,166) 7%

Gross profit 11,111 11,054 1%


Other income and expense - net (306) (52) 488%

Interest expense - net (1,276) (1,453) -12%

Provision for income tax (1,937) (2,367) -18%

Core income 5,575 5,391 3%

Non-core expenses (470) (590) -20%



Core income 5,575 5,391 3%


Interest expense - net 1,276 1,453 -12%

Provision for income tax 1,937 2,367 -18%

Core EBITDA 10,764 11,051 -3%

WATER

23

KEY METRICS AND ARBITRATION

UPDATE

ARBITRATION WITH REPUBLIC OF THE PHILIPPINES

Salient Points of Arbitral Ruling

The Tribunal ordered the Republic to reimburse Maynilad the amount of P3.4 billion for losses

from 11 March 2015 to 31 August 2016

Subsequently, Maynilad agreed with the corrected computation of the Republic’s counsel of

revenue losses from 11 March 2015 to 31 August 2016, in the amount of P3.18 Billion (with

cost of money as of 31 August 2016)

This reimbursement is without prejudice to any rights that Maynilad may have to seek recourse

against MWSS for losses incurred from 1 January 2013 to 10 March 2015

Maynilad is entitled to recover from the Republic its losses from 1 September 2016 onwards.

In case a disagreement on the amount of such losses arises, Maynilad may revert to the

Tribunal for further determination

Status

Maynilad is now in discussion with Government on settling its claim. However, the issue of

the tariff going forward remains unresolved.

TIMELINE OF EVENTS

30 MAR 2012 – 12 SEP 2013 Rate rebasing exercise for Fourth Rebasing Period – MWSS approves a negative 4.8% adjustment

4 OCT 2013 Maynilad files Dispute Notice commencing Rate Rebasing Arbitration before Appeals Panel

29 DEC 2014 Appeals Panel issues Final Award ruling which allows the inclusion of Corporate Income Tax in future cash flows and upholds Maynilad’s proposed rebasing

adjustment of 13.4%

20 FEB 2015 Maynilad calls on Republic’s undertaking to indemnify concessionaire for losses caused by delays in implementation of tariff

27 MAR 2015 Maynilad serves Notice of Arbitration to the Republic

22 OCT 2015 Arbitral Tribunal is constituted

DEC 2016 Completion of arbitration hearings

24 JUL 2017 Arbitral Tribunal upholds Maynilad’s claim on Republic’s Letter of Undertaking

Claim on Republic’s letter of undertaking upheld unanimously by arbitral tribunal


NRW

Average 32.2% 29.7%

Period end 32.5% 30.6%

Coverage

Total population 10.06M 9.89M

Population coverage 9.36M 9.30M

24hr availability 98% 97%

Minimum 16 psi* 70% 73%

Customer Mix

Residential 81% 81%

Commercial 19% 19%

Capital Expenditure 7,662 5,929

HOSPITALS



Metro Pacific Hospital Holdings (60.0%) 577 485 19%

Hospital admin and fair value adjustments (59) (42) 40%


24

MPHHI 9M 2017 HIGHLIGHTS

Hospitals Stand-alone Core Income MPIC Share

(In Millions of Pesos)9M

2017

9M

2016%

9M

2017

9M

2016%

Asian Hospital 347 288 20% 179 148 21%

Cardinal Santos 178 155 15% 107 93 15%

Riverside Medical 147 146 1% 69 68 1%

Makati Med 287 256 12% 57 51 12%

Davao Doctors 160 189 -15% 34 40 -15%

Marikina Valley 78 26 200% 43 14 207%

Manila Doctors 144 139 4% 17 17 –

Others 169 134 26% 71 54 31%

Total 1,510 1,333 13% 577 485 19%

Hospital Admin/FV adjustments (59) (42) 40%


Core Income grew 13% due to increased number of patients

served across all hospitals. 9% of Core Income growth came from

existing hospitals while 4% came from the newly-acquired

hospitals (Marikina Valley Medical Center and Jesus Delgado

Memorial Hospital)

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


Gross revenues 16,530 14,582 13%

Discounts (1,536) (1,386) 11%

Net revenues 14,994 13,196 14%

Cost of supplies (6,348) (5,469) 16%

Gross profit 8,646 7,727 12%


Interest expense (159) (183) -13%

Other income 345 299 15%


Core income 1,510 1,333 13%

Non-core income 8 2 300%



Core income 1,510 1,333 13%


Interest expense 159 183 -13%


Core EBITDA 3,629 3,243 12%

HOSPITALSKEY METRICS AND

PRIORITIES

Continue to expand current chain of 14 hospitals and achieve 5,000 bed group capacity

Expand services and capacities of hospitals through investments in new equipment and facilities

Expand synergy projects across the network

▪ Group-wide policies and protocols on medicine, equipment, and other purchases

▪ Establishing core laboratories –new

▪ Setting up standardized and integrated IT systems

Invest in specialized facilities and link to the hospital network

▪ Primary care centers

▪ Oncology Centers

▪ Greenfield specialist hospitals

KEY PRIORITIES


Total number of beds 2,967 2,814

Number of accredited doctors 7,781 7,347

Number of enrollees 6,236 5,543

Average standard occupancy rate 66% 70%

Number of patients

In patient 124,573 118,141

Out patient 2,293,042 2,017,166

25

RAIL

26

LRMC 9M 2017 HIGHLIGHTS

Rail Revenues increased due to:

7% growth in average daily ridership from 404,307 to

431,281, dampened by higher usage of stored value cards

15% increase in LRVs from 92 to 106 – number of LRVs

started at 77 from handover in September 2015

Core Income declined due to higher operating expenses

driven by increased headcount and regular maintenance

expenses

Key Priorities

Improvements on existing LRT1 line

Ongoing rail replacement – 94% accomplished; target

completion by 4Q 2017

Station improvement plan ongoing – target completion by 2H

2018

LRT1 Structural Restoration Project – notice to proceed

issued in March 2017; target completion by 2019

Station partnership programs and retail space improvement

plans

South extension project

Issued Notice to Proceed to EPC contractors to begin

construction work in August 2017

On-going right-of-way acquisition – Basic ROW package 1

acquired

Groundbreaking held in May 2017


Stand-alone Core Income 372 428 -13%

LRMC (55%) 209 233 -10%

Holding company admin 1 (4) -124%

MPIC Share 210 229 -8%


Rail revenue 2,327 2,224 5%

Cost of services (1,378) (1,360) 1%

Gross profit 949 864 10%

Operating expenses (464) (362) 28%

Other income and expense - net 59 30 97%

Interest income (3) 8 -138%



Non-core income (expenses) (8) 4 -300%

Reported net income 372 428 -13%



Depreciation and amortization 46 25 84%

Interest income 3 (8) -138%


Core EBITDA 590 557 6%

27

QUARTERLY ANALYSIS

QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

28

MERALCO 1Q 2017 2Q 2017 3Q 2017

FINANCIAL HIGHLIGHTS

Total Revenues 66,576 74,456 73,357

Core EBITDA 7,922 9,293 9,053

Core Income 4,598 5,520 5,252

Reported Income 4,817 5,684 5,427

KEY METRICS

System Loss 6.23% 6.11% 6.05%

Number of customers 6.11M 6.17M 6.25M

Energy Sales

Residential 2,746 3,587 3,482

Commercial 3,742 4,303 4,337

Industrial 2,795 3,097 3,210

Streetlights 34 34 34

Total (in gWh) 9,317 11,021 11,063

METRO PACIFIC TOLLWAYS 1Q 2017 2Q 2017 3Q 2017


Net Revenues 3,102 3,358 3,145

Core EBITDA 2,126 2,092 2,041

Core Income 958 1,100 966

Reported Income 940 2,691 876

KEY METRICS

NLEX

Average Daily Vehicle Entries (Open & Closed)

Class 1 176,848 184,553 178,958

Class 2 32,813 33,125 33,276

Class 3 19,973 19,948 20,205

Total 229,633 237,626 232,440

Average Daily Kilometers Travelled (In thousands of kms)

Class 1 3,338 3,734 3,205

Class 2 700 714 689

Class 3 465 469 461

Total 4,503 4,917 4,354

CAVITEX


Class 1 120,273 123,874 123,613

Class 2 10,025 9,973 9,962

Class 3 4,749 5,224 5,146

Total 135,047 139,071 138,721

SCTEX


Class 1 41,564 48,590 40,716

Class 2 5,846 6,215 5,978

Class 3 3,717 4,006 3,595

Total 51,128 58,811 50,289

QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

29

MAYNILAD 1Q 2017 2Q 2017 3Q 2017


Revenues 4,788 5,454 5,336

Core EBITDA 3,156 3,982 3,626

Core Income 1,477 2,199 1,899

Reported Income 1,208 1,989 1,908

KEY METRICS

Billed volume (In MCM) 120.7 131.8 131.0

Billed customers 1,323,063 1,336,566 1,347,747

Non-revenue water

Average 33.2% 31.2% 32.2%

Period end 32.9% 31.2% 32.5%

Service levels

24-hour coverage 98.2% 98.0% 98.2%

Minimum 16 psi 70.1% 70.6% 70.1%

HOSPITALS - AGGREGATE 1Q 2017 2Q 2017 3Q 2017

Revenues 5,358 5,253 5,919

Core EBITDA 1,242 1,045 1,342

Core Income 544 383 583

Reported Income 547 386 585

Total number of beds 2,893 2,873 2,967

Number of accredited doctors 7,667 7,710 7,781

Number of enrollees 6,671 5,390 6,236


KEY METRICS

LIGHT RAIL MANILA 1Q 2017 2Q 2017 3Q 2017


Net Revenues 799 729 799

Core EBITDA 192 154 244

Core Income 124 97 159

Reported Income 124 97 151

KEY METRIC

LRMC - Average Daily Ridership 443,337 416,031 431,281

30

BALANCE SHEET AND CASH FLOW STATEMENTS(Tentative)

31

METRO PACIFIC INVESTMENTS

CORPORATION – PARENT

BALANCE SHEET BALANCE SHEET (continued)

In PhP Millions Sept 2017 Dec 2016 In PhP Millions Sept 2017 Dec 2016

ASSETS LIABILITIES AND EQUITY

CURRENT ASSETS CURRENT LIABILITIES

Cash and short-term investments 16,949 4,162 Accounts payable and other current liabilities 1,259 877

Receivables - net 89 76 Due to related parties 4,117 2,004

Other current assets 223 401 Current portion of long-term debt 877 357

Total Current Assets 17,261 4,639 Total Current Liabilities 6,253 3,238

NONCURRENT ASSETS NONCURRENT LIABILITIES

Investments and advances to subs., associates & JVs 173,153 165,311 Noncurrent portion of long-term debt 46,063 36,382

Other noncurrent assets 673 523 Due to related parties 11,622 6,726

Total Noncurrent Assets 173,826 165,834 Other noncurrent liabilities 996 862

Total Noncurrent Liabilities 58,681 43,970

TOTAL ASSETS 191,087 170,473

Total Liabilities 64,934 47,208

EQUITY

Capital stock 31,624 31,619

Additional paid-in capital 68,463 68,438

Treasury shares (167) (167)

Other reserves 201 152

Retained earnings 26,032 23,223

Total Equity 126,153 123,265

TOTAL LIABILITIES AND EQUITY 191,087 170,473

As of As of

32

METRO PACIFIC INVESTMENTS

CORPORATION – CONSOLIDATED



ASSETS NONCURRENT LIABILITIES

CURRENT ASSETS Noncurrent portion of concession fees payable

Cash and short-term investments 53,144 21,901 long-term debt and others 189,848 121,458

Receivables 10,802 5,171 Due to related parties 11,622 6,726

Other current assets 10,241 4,728 Deferred tax liabilities 7,902 3,925

Total Current Assets 74,187 31,800 Other noncurrent liabilities 9,096 4,368

Total Noncurrent Liabilities 218,468 136,477

NONCURRENT ASSETS

Investments and advances 126,427 126,556 Total Liabilities 269,290 163,521

Goodwill 35,536 21,004

Service concession assets 164,077 152,693 EQUITY

Property and equipment 64,319 10,480 Capital stock 31,625 31,619

Other noncurrent assets 23,620 9,069 Additional paid-in capital 68,463 68,438

Total Noncurrent Assets 413,979 319,802 Treasury shares (167) (167)

Other equity adjustments and reserves 8,190 8,253

TOTAL ASSETS 488,166 351,602 Retained earnings 51,871 43,889

Total equity attributable to owners of Parent 159,982 152,032

LIABILITIES AND EQUITY Non-controlling interest 58,894 36,049

CURRENT LIABILITIES Total Equity 218,876 188,081

Accounts payable and other current liabilities 25,808 15,431

Due to related parties 3,825 1,713 TOTAL LIABILITIES AND EQUITY 488,166 351,602

Current portion of concession fees payable

long-term debt and others 21,189 9,900

Total Current Liabilities 50,822 27,044

As of As of

WATER

33

MAYNILAD WATER SERVICES INC. AND SUBSIDIARIES




Current Assets Current Liabilities

Cash and short-term investments 5,291 8,066 Accounts payable and other current liabilities 11,788 10,893

Receivables 2,502 2,493 Current portion of interest-bearing loans 1,824 1,808

Other current assets 3,699 3,470 Current portion of service concession obligation 1,280 1,329


Non-current Assets Non-current Liabilities

Service concession assets 74,907 69,297 Interest-bearing loans - net of current portion 25,031 24,880

Deferred tax assets 526 1,032 Service concession obligation - net of current portion 6,298 6,500

Property and equipment 1,365 1,254 Other noncurrent liabilities 684 1,507

Other noncurrent assets 812 1,567 Total Noncurrent Liabilities 32,013 32,887

Total Noncurrent Assets 77,610 73,150


TOTAL ASSETS 89,102 87,179

Equity



Other equity adjustments and reserves (477) (307)


Total Equity 42,197 40,262


As of As of

WATER

34

MAYNILAD WATER SERVICES INC. AND SUBSIDIARIES

CASH FLOW STATEMENT CASH FLOW STATEMENT (continued)

In PhP Millions Sept 2017 Sept 2016 In PhP Millions Sept 2017 Sept 2016

Cash Flows from Operating Activities Cash Flows from Investing Activities

Income before income tax 7,205 7,630 Additions to service concession assets (7,329) (5,592)

Adjustments for: Acquisitions of property and equipment (371) (511)

Interest expense 1,363 1,564 Decrease (increase) in other noncurrent assets (10) 81

Amortization of service concession assets 1,720 1,624 Dividends received 10 10

Interest income (68) (85)

Depreciation and amortization 260 216

Others 79 44 Net cash used in investing activities (7,700) (6,012)

Operating income before working capital changes 10,559 10,993

Decrease (increase) Cash Flows from Financing Activities

Short-term investments 1,792 3,744 Proceeds from availment of interest-bearing loans 1,702 825

Receivables (9) (66) Payments of:

Other current assets (228) (149) Dividends (3,000) (2,000)

Increase in other current liabilities 1,130 36 Loans (1,750) (1,692)

Cash generated from operations 13,244 14,558 Service concession obligation payable (997) (1,167)

Interest received 68 85 Interest (757) (1,326)

Income taxes paid (1,622) (1,634) Increase in other noncurrent liabilities 129 101

Net cash provided by operating activities 11,690 13,009 Others (299) (64)

Net cash provided used in financing activities (4,972) (5,323)

Net increase (decrease) in cash and cash equivalents (982) 1,673

Cash and cash equivalents at beginning of period 5,025 3,093

Cash and cash equivalents at end of period 4,043 4,766

TOLL ROADS

35

METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES





Cash and short-term investments 3,552 2,733 Accounts payable and accrued liabilities 3,719 3,801

Receivables 689 689 Current portion of long-term debt 5,081 1,047

Other current assets 1,683 1,301 Other current liabilities 1,808 882


Noncurrent Assets Noncurrent Liabilities

Service concession assets 65,761 61,828 Long-term debt - net of current portion 27,969 31,309

Goodwill 8,089 4,979 Service concession obligation 19,367 18,551

Investment in associates 10,701 11,318 Deferred tax liabilities 1,087 1,072

Other noncurrent assets 2,633 3,268 Other noncurrent liabilities 586 739

Total Noncurrent Assets 87,184 81,393 Total Noncurrent Liabilities 49,009 51,671

TOTAL ASSETS 93,108 86,116 Total Liabilities 59,617 57,401

Equity



Other equity adjustments and reserves (9,808) (9,822)

Retained earnings 8,769 5,859 Total Equity Attributable to Equity Holders

of Parent 30,692 26,338

Non-controlling interest 2,799 2,377



As of As of

TOLL ROADS

36

METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES



Cash Flows from Operating Activities Additions/Acquistions:

Income before income tax 6,402 3,852 Service concession assets (3,807) (3,820)

Adjustments for: Investments in bonds/UTIF (8,731) (4,830)

Interest expense 1,089 890 Investment in subsidiary (288) (3,357)

Amortization of service concession assets 695 658 Investment property (84) (39)

Interest income (49) (71) Property and equipment (205) (74)

Equity in net earning of associate (507) (173) Intangible assets (6) (7)

Depreciation and amortization 92 46 Proceeds from:

Gain on remeasurement of previously held interest (1,801) - Disposal/Maturity of AFS/investment 8,129 4,908

Others 183 (151) Sale of property and equipment 2 11

Operating income before working capital changes 6,104 5,051

Restricted cash (430) (86) Net cash used in investing activities (3,617) (6,638)

Receivables 557 98

Other current assets 70 (159) Cash Flows from Financing Activities

Increase (decrease) accounts payable and other current liabilities(623) 555 Proceeds from availment of loans 4,379 1,000

Cash generated from operations 5,678 5,459 Issuance of new shares 1,430 3,707

Income tax paid (1,130) (864)

Net cash provided by operating activities 4,548 4,595 Payments of:

Loan (3,988) (1,259)

Cash Flows from Investing Activities Dividends (2,025) (3,000)

Increase in restricted cash Interest (1,040) (898)

Dividends received 824 471 Transaction costs and others (19) (6)

Interest received 48 206 Acquisition for non-controlling interests - (23)

Decrease (Increase) in other noncurrent assets 501 (107) Net cash used in financing activities (1,263) (479)

Effect of exchange rate changes on cash (3) 4

Net decrease in cash and cash equivalents (335) (2,518)

Cash and cash equivalents at beginning of period 1,491 3,989

Cash and cash equivalents at end of period 1,156 1,471

HOSPITALS MEDICAL DOCTORS INC. AND SUBSIDIARIES

37



ASSETS Noncurrent Liabilities

Current Assets Deferred income tax liabilities 890 919

Cash and cash equivalents 533 729 Retirement benefit obligation 126 106

Receivables - net 963 573 Loans payable 857 1,018

Inventories - net 174 251 Provisions 103 103

Other current assets 89 57 Total Noncurrent Liabilities 1,976 2,146

Total Current Assets 1,759 1,610


Noncurrent Assets

Property and Equipment - net 8,070 7,915 Equity

Other noncurrent assets 134 132 Capital stock 338 336

Total Noncurrent Assets 8,204 8,047 Capital in excess of par value 1,608 1,572

Other equity adjustments 2,438 2,445

TOTAL ASSETS 9,963 9,657 Retained earnings 2,122 1,902

Treasury Stock (15) (15)

LIABILITIES AND EQUITY Total Equity Attributable to Equity Holders of Parent 6,491 6,240

Current Liabilities Non-controlling interest 20 23

Accounts payable and accrued expenses 1,212 1,021 Total Equity 6,511 6,263

Current portion of long-term liabilities 214 214

Other current liabilities 50 12 TOTAL LIABILITIES AND EQUITY 9,963 9,656

Total Current Liabilities 1,476 1,247

As of As of

HOSPITALS MEDICAL DOCTORS INC. AND SUBSIDIARIES

38




Income before income tax 413 376 Acquisitions of property and equipment (523) (350)

Adjustments for: Increase in other noncurrent assets - (88)

Provisions 56 57 Net cash used in investing activities (523) (438)


Retirement benefit expense 37 28 Cash Flows from Financing Activities

Interest expense 45 45 Proceeds from:

Interest income (2) (2) Loans - 300

Others (3) 0 Issuance of capital stock 38 27

Operating income before working capital changes 915 846 Payment of loan (161) (96)

Decrease (increase): Interest paid (46) (43)

Receivables (447) (241) Dividends paid (149) (125)

Inventories 77 43 Net cash used in financing activities (318) 63

Prepayments (32) (94)

Increase (decrease) in:

Accounts payable and accrued expenses 234 116 Net increase (decrease) in cash and cash equivalents (196) 211

Refundable deposits and other liabilities 38 -

Cash generated from operations 786 670 Cash and cash equivalents at beginning of period 729 531

Contributions to the retirement fund (18) (14)

Income taxes paid (124) (72)

Interest received 2 2 Cash and cash equivalents at end of period 533 742

Net cash provided by operating activities 645 586

HOSPITALS COLINAS VERDES (CARDINAL SANTOS MEDICAL CENTER)

39





Cash and cash equivalents 247 211 Accounts payable and accrued expenses 713 591

Receivables - net 217 200 Due to related parties 7 13

Inventories - net 64 73 Loans payable, current 45 -

Other current assets 34 33 Other current liabilities 20 20

Total Current Assets 562 517 Total Current Liabilities 785 624


Property and Equipment - net 1,330 1,085 Retirement plan 34 22

Deferred income tax assets 145 121 Lease payable - 620

Other noncurrent assets 22 6 Other noncurrent liabilities 634 -

Total Noncurrent Assets 1,497 1,212 Total Current Liabilities 668 642

TOTAL ASSETS 2,059 1,729 Total Liabilities 1,453 1,266

Equity

Capital stock 50 50

Other comprehensive income 3 3

Retained earnings 553 410

Total Equity 606 463


As of As of

HOSPITALS COLINAS VERDES (CARDINAL SANTOS MEDICAL CENTER)

40





Adjustments for: Increase in other noncurrent assets 11 -



Interest expense 77 76

Interest income (1) (1) Cash Flows from Financing Activities

Operating income before working capital changes 507 452 Availment of loans payable 45 -

Decrease (increase): Payment of loans payable (63) (86)

Receivables (86) (20) Dividend payments (100) (60)

Inventories 35 3 Net cash provided by (used in) financing activities (118) (146)

Prepayments 42 1

Increase (decrease) in: Net increase (decrease) in cash and cash equivalents 36 68

Accounts payable and accrued expenses (79) 31

Refundable deposits and other liabilities (3) 5 Cash and cash equivalents at beginning of period 211 222

Cash generated from operations 416 472

Interest received 1 1 Cash and cash equivalents at end of period 247 290


HOSPITALS DAVAO DOCTORS HOSPITAL, INC. AND SUBSIDIARIES

41




Current Assets Retirement benefit obligations 54 47

Cash and cash equivalents 118 228 Other noncurrent liabilities 11 11

Receivables, net 427 274 Total Noncurrent Liabilities 65 58

Inventory, net 130 114

Prepaid expenses 37 25 Total Liabilities 483 410

Total Current Assets 712 641

Equity

Noncurrent Assets Capital stock 91 91

Property and Equipment - net 1,294 1,172 Capital in excess of par value 49 49

Deferred income tax assets 23 19 Treasury shares (6) (7)

Other noncurrent assets 65 68 Other equity adjustments 32 32

Total Noncurrent Assets 1,382 1,259 Retained earnings 1,445 1,325


TOTAL ASSETS 2,094 1,900 Non-controlling interest 0 0


LIABILITIES AND EQUITY

Current Liabilities TOTAL LIABILITIES AND EQUITY 2,094 1,900

Accounts payable and accrued expenses 418 352

Total Current Liabilities 418 352

As of As of

HOSPITALS DAVAO DOCTORS HOSPITAL, INC. AND SUBSIDIARIES

42





Adjustments for: Increase in noncurrent assets (0) (18)

Depreciation 145 120 Net cash used in investing activities (265) (181)

Provision for bad debts - 1

Operating income before working capital changes 370 387 Cash Flows from Financing Activities

Decrease (increase): Dividends paid (41) (50)

Receivables (153) (137) Decrease in other noncurrent liabilities - -

Inventories (16) (5) Net cash used in financing activities (41) (50)

Prepayments and others (13) (9)

Increase (decrease) in: Net decrease in cash and cash equivalents (110) (12)

Accounts payable and accrued expenses 8 (17)

Net cash provided by operating activities 197 219 Cash and cash equivalents at beginning of period 228 272

Cash and cash equivalents at end of period 118 260

HOSPITALS RIVERSIDE MEDICAL CENTER GROUP

43




Current Assets Long-term debt - net of current 33 4

Cash and cash equivalents 299 355 Deferred income tax liabilities 75 76

Receivables - net 311 270 Accrued retirement costs 7 7

Inventories - net 85 106 Other noncurrent liabilities 17 15

Other current assets 1 7 Total Noncurrent Liabilities 132 102


Total Liabilities 579 572

Noncurrent Assets

Property and Equipment - net 1,214 1,093 Equity

Investment in associate 43 Capital stock 62 62

Pension Asset 22 23 Additional paid-in capital stock 377 377

Other noncurrent assets 26 28 Other equity adjustments 167 167

Total Noncurrent Assets 1,305 1,144 Retained earnings 820 708

Treasury Stock (4) (4)

TOTAL ASSETS 2,001 1,882 Total Equity 1,422 1,310

LIABILITIES AND EQUITY TOTAL LIABILITIES AND EQUITY 2,001 1,882

Current Liabilities


Current portion of long-term debt 2 2

Unearned tuition and other school fees 50 64

Income tax payable 20 9

Other current liabilities 39 33


As of As of

HOSPITALS RIVERSIDE MEDICAL CENTER GROUP

44





Adjustments for: Investments in associates (43) -

Depreciation 66 56 Proceed from sale of property and equipment (1) (5)

Interest expense - 3 Increase in investments/other noncurrent assets (1) (5)

Interest income (3) (5) Net cash used in investing activities (231) (206)

Others 11 9


Decrease (increase) : Availment of loans 31

Receivables (41) (4) Payment of long-term debt (2) (19)

Inventories 21 43 Dividend payments (36) (34)

Other assets 7 4 Net cash used in investing activities (7) (53)


Accounts payable and accrued expenses (33) (60) Net decrease in cash and cash equivalents (56) (67)


Cash generated from operations 231 243 Cash and cash equivalents as of beginning of period 355 566

Interest received 3 5

Income taxes paid (43) (45) Cash and cash equivalents at end of the period 299 499

Interest paid - (3)

Retirement payment (9) (8)


HOSPITALS EAST MANILA HOSPITAL MANAGERS CORP. (LOURDES)

45




Current Assets Accrued retirement 33 27

Cash and cash equivalents 67 65 Other noncurrent liabilities 310 316

Receivables - net 85 70 Total Noncurrent Liabilities 343 343

Inventories - net 38 43

Prepaid expenses 2 4 Total Liabilities 553 570


Equity

Noncurrent Assets Capital stock 50 50

Property and Equipment - net 315 295 Reserves 5 5

Deferred income tax 113 111 Retained earnings 159 118

Other noncurrent assets 147 155 Total Equity 214 173

Total NonCurrent Assets 575 561

TOTAL LIABILITIES AND EQUITY 767 743

TOTAL ASSETS 767 743

LIABILITIES AND EQUITY

Current Liabilities


Current portion of long-term debt 40 70

Due to related parties 23 12



As of As of

HOSPITALS EAST MANILA HOSPITAL MANAGERS CORP. (LOURDES)

46





Adjustments for: Decrease (Increase) in other noncurrent assets (4) (5)

Depreciation 47 52 Net cash used in investing activities (63) (22)

Provision for doubtful accounts 6 5

Interest expense 1 1 Cash Flows from Financing Activity

Operating income before working capital changes 114 109 Loan payment (30) -

Increase: Increase (decrease) in:

Receivables (20) (15) Due to related parties 11 4

Inventories 6 - Other noncurrent liabilities (5) (3)

Other current assets 2 (1) Net cash provided by investing activities (24) 1

Increase in:

Accounts payable and accrued expenses - (5) Net increase in cash and cash equivalents 2 53

Retirement fund obligation 6 3

Other current liabilities - - Cash and cash equivalents as of beginning of period 65 46


Income taxes paid (19) (17) Cash and cash equivalents at end of the period 67 99


HOSPITALS ASIAN HOSPITAL INC.

47






Receivables - net 401 291 Accrued interest 3 22

Inventories - net 103 127 Long-term debts, currently due 88 309

Other current assets 26 18 Refundable deposits and other current 40 47

Prepaid expenses 21 18 Total Current Liabilities 792 1,016


Noncurrent Liabilities

Noncurrent Assets Other non-current liabilities 66 58

Property and equipment, net 3,673 3,655

Deferred income tax 120 122 Total Liabilities 858 1,074

Computer software - net 2 3

Other non-current assets 16 15 Equity

Total Noncurrent Assets 3,811 3,795 Capital stock 1,937 1,937

Capital stock in excess of par value 185 185

TOTAL ASSETS 4,662 4,596 Subscription receivable (4) (4)

Other equity adjustments (2) (3)




As of As of

HOSPITALS ASIAN HOSPITAL INC.

48





Adjustments for: Increase in noncurrent assets


Depreciation 218 218

Amortization of capitalized borrowing cost 1 1 Cash Flows from Financing Activities

Interest expense 13 44 Payment of long-term debt (221) (172)

Gain (loss) on disposal of property and equipment (1) 1 Dividends paid (72) (39)

Others (10) (3) Interest paid (32) (47)

Operating income before working capital changes 738 695 Net cash used in investing activities (325) (258)

Decrease (increase) :

Receivables (113) (74) Net increase in cash and cash equivalents 18 120

Inventories 24 19

Other current assets (10) (7) Cash and cash equivalents as of beginning of period 347 410


Accounts payable and accrued expenses (71) (30) Cash and cash equivalents at end of the period 365 530



HOSPITALS DELOS SANTOS MEDICAL CENTER

49






Receivables - net 97 69 Due to related parties 4 4

Inventories - net 47 42 Long-term debts, currently due 200 200

Prepaid expenses 25 17 Refundable deposits and other current 83 51

Total Current Assets 225 182 Total Current Liabilities 376 329


Property and equipment, net 636 596 Retirement Liability 31 29

Deferred income tax 25 24

Other non-current assets 14 14 Total Liabilities 407 358

Total Noncurrent Assets 675 634

Equity

TOTAL ASSETS 900 816 Capital stock 114 114


Other equity adjustments 2 2




As of As of

HOSPITALS DELOS SANTOS MEDICAL CENTER

50





Adjustments for:

Provisions 7 10 Cash Flows from Financing Activities

Depreciation 65 57 Proceeds from long term debt - 85

Interest expense-net 5 4 Payment of long term debt

Operating income before working capital changes 147 136 Interest paid (5) (4)

Decrease (increase) : Dividends (14) (16)

Receivables (35) (16) Net cash used in investing activities (19) 65

Inventories (5) 6

Other current assets (7) (9) Net increase in cash and cash equivalents 2 27


Accounts payable and accrued expenses 14 (79) Cash and cash equivalents as of beginning of period 54 21

Other liabilities 35 16

Cash generated from operations 149 54 Cash and cash equivalents at end of the period 56 48

Income tax paid (23)


HOSPITALS CENTRAL LUZON DOCTORS’ HOSPITAL

51






Receivables - net 71 74 Loans payable 50

Inventories - net 35 31 Dividends payable 11 11

Prepaid expenses 48 - Total Noncurrent Liabilities 183 116



Noncurrent Assets Retirement Liability 9 7

Property and equipment, net 371 328 Deferred Income Tax 27 27

Other non-current assets 35 21 Total Noncurrent Liabilities 36 34


Total Liabilities 219 150

TOTAL ASSETS 601 503

Equity

Capital stock 106 106

Additional Paid-in Capital 82 82

Treasury stock (3) (3)

Other equity adjustments 81 81




As of As of

HOSPITALS CENTRAL LUZON DOCTORS’ HOSPITAL

52





Adjustments for: Increase in noncurrent assets (13)

Provisions (87) (67)

Depreciation 31 25

Interest expense Cash Flows from Financing Activities

Operating income before working capital changes 77 65 Proceeds from loans 50 -

Decrease (increase) : Dividends payment (3) (5)

Receivables 3 (8) Subscription receivable - -

Inventories (4) 6 47 (5)

Other current assets (48) (3)


Accounts payable and accrued expenses - 3

Other current liabilities 4 2 Cash and cash equivalents as of beginning of period 49 87


Cash and cash equivalents at end of the period 41 80

HOSPITALS WEST METRO MEDICAL CENTER

53






Receivables - net 33 14 Other non-current assets 8 1

Inventories - net 34 54 Total Current Liabilities 43 58

Prepaid expenses 3 2

Total Current Assets 74 105 Noncurrent Liabilities

Retirement Liability 1 1

Noncurrent Assets Deferred Income Tax - -

Property and equipment, net 114 87 Total Noncurrent Liabilities 1 1

Other non-current assets 139 112 Total Liabilities 44 59


Equity

TOTAL ASSETS 327 304 Capital stock 75 75

Deposit for future stock subscriptions 182 166

Other equity 3 3




As of As of

HOSPITALS WEST METRO MEDICAL CENTER

54





Adjustments for: Increase in noncurrent assets (29) (26)

Provisions 1 (54) (78)

Depreciation 11 3


Decrease (increase) : Equity Infusion 16 91

Receivables (19) (12) Increase in Non-Current Assets

Inventories 4 (25) 16 91

Other current assets (1) -



Other current liabilities 6 2 Cash and cash equivalents as of beginning of period 35 4

Net cash provided by operating activities 7 (14)


HOSPITALS MANILA DOCTORS, INC.

55






Receivables - net 10 295 Long-term debts, currently due 150 150

Inventories - net 246 112 Other current liabilities - 13

Other current assets 36 1 Total Current Liabilities 628 585



Long-term debt - net of current 350 250

Noncurrent Assets Other non-current liabilities 92 75

Property and equipment, net 1,803 1,516 Total Noncurrent Liabilities 442 325


Other non-current assets 35 13 Total Liabilities 1,070 910


Equity

TOTAL ASSETS 2,418 2,114 Capital stock 206 198


Other equity adjustments (7) (7)

Retained earnings 1,101 957



As of As of

HOSPITALS MANILA DOCTORS, INC.

56





Adjustments for:


Depreciation 114 118 Availment of loan 100 300

Operating income before working capital changes 329 325

Decrease (increase) : Net increase in cash and cash equivalents 4 101

Receivables (10) (6)

Inventories (8) 5 Cash and cash equivalents as of beginning of period 136 57

Other current assets 5 (1)

Increase (decrease) in: Cash and cash equivalents at end of the period 140 158


Other current liabilities 6 (38)


HOSPITALS SACRED HEART HOSPITAL

57






Receivables - net 30 26 Other current liabilities 22 22

Inventories - net 13 13 Total Noncurrent Liabilities 59 65




Noncurrent Assets

Property and equipment, net 172 166 Total Liabilities 62 68

Other non-current assets 6 4

Total Noncurrent Assets 178 170 Equity

Capital stock 225 225

TOTAL ASSETS 365 352 Retained earnings 78 59



As of As of

HOSPITALS SACRED HEART HOSPITAL

58





Adjustments for: Increase in noncurrent assets

Provisions (26) (18)

Depreciation 19 11

Interest expense Cash Flows from Financing Activities

Operating income before working capital changes 53 28 Equity Infusion - 149

Decrease (increase) : Dividend payments (5) -

Receivables (5) (2) (5) 149

Inventories - (6)

Other current assets (2) (7) Net increase (decrease) in cash and cash equivalents 1 125


Accounts payable and accrued expenses (14) (19) Cash and cash equivalents as of beginning of period 142 30

Net cash provided by operating activities 32 (6)


HOSPITALS MARIKINA VALLEY MEDICAL CENTER

59






Receivables - net 61 38 Other current liabilities 25 29

Inventories - net 26 16 Total Noncurrent Liabilities 291 295




Noncurrent Assets

Property and equipment, net 304 279 Total Liabilities 300 303


Other non-current assets 1 2 Equity

Total Noncurrent Assets 311 287 Capital stock 126 126

Additional paid in capital 96 96

TOTAL ASSETS 650 575 Other equity adjustments (2) (2)




As of As of

HOSPITALS MARIKINA VALLEY MEDICAL CENTER

60





Adjustments for: Increase in noncurrent assets 1

Provisions 3 (49) (3)

Depreciation 25 5

Interest expense Net increase in cash and cash equivalents 26 126


Decrease (increase) : Cash and cash equivalents as of beginning of period 218 35

Receivables (25) 82

Inventories (10) 2 Cash and cash equivalents at end of the period 244 161

Other current assets 8 (2)



Other current liabilities (3) -


HOSPITALS JESUS DELGADO MEMORIAL HOSPITAL

61

BALANCE SHEET As of BALANCE SHEET (continued) As of

In PhP Millions Sept 2017 In PhP Millions Sept 2017



Cash and cash equivalents 107 Accounts payable and accrued expenses 31

Receivables - net 34 Other current liabilities 2

Inventories - net 6 Total Noncurrent Liabilities 33

Prepaid expenses 12

Total Current Assets 159 Noncurrent Liabilities

Retirement Liability 8

Noncurrent Assets Other noncurrent liabilities 18

Property and equipment, net 85 Total Noncurrent Liabilities 26

Other non-current assets 12

Total Noncurrent Assets 97 Total Liabilities 59

TOTAL ASSETS 256 Equity

Capital stock 149

Retained earnings 48

Total Equity 197

TOTAL LIABILITIES AND EQUITY 256

HOSPITALS JESUS DELGADO MEMORIAL HOSPITAL

62


In PhP Millions Sept 2017 In PhP Millions Sept 2017


Income before income tax 4 Acquisitions of property and equipment 2

Adjustments for: Increase in noncurrent assets (3)

Depreciation 4 (1)

Operating income before working capital changes 8

Decrease (increase) : Cash Flows from Financing Activities

Receivables (19) Loan payments (6)

Inventories (1) Equity infusion 133

Other current assets (3) Interest paid

Increase (decrease) in: Net cash used in financing activities 127

Accounts payable and accrued expenses (21)

Other current liabilities 1 Net increase in cash and cash equivalents 91

Net cash provided by operating activities (35)

Cash and cash equivalents as of beginning of period 16

Cash and cash equivalents at end of the period 107

HOSPITALS MEGA CLINIC

63






Receivables - net 66 60 Loans payable 5 5

Inventories - net 6 2 Due to related parties 14 14

Prepaid expenses 18 22 Total Noncurrent Assets 89 82



Noncurrent Assets Retirement Liability 1 1

Property and equipment, net 30 33

Deferred income tax 7 7 Total Liabilities 90 83

Other non-current assets 21 11

Total Noncurrent Assets 58 51 Equity

Capital stock 66 66

TOTAL ASSETS 167 148 Other equity adjustments - -

Retained earnings 11 (1)

Total Equity 77 65


As of As of

HOSPITALS MEGA CLINIC

64





Adjustments for:


Depreciation 7 7 Payment of loans (5) (10)


Decrease (increase) : Net increase (decrease) in cash and cash equivalents 6 (7)

Receivables (8) (11)

Inventories (2) (4) Cash and cash equivalents as of beginning of period 13 18

Prepayments (8) (1)

Increase (decrease) in: Cash and cash equivalents at end of the period 19 11



RAIL

65

LIGHT RAIL MANILA CORPORATION





Cash and cash equivalents 1,212 1,143 Accounts payable and other current liabilities 1,578 509

Receivables 88 88 Income tax payable 75 25

Other current assets 427 239 Total Current Liabilities 1,653 534

Total Current Assets 1,727 1,470

Non-current Liabilities

Non-current Assets Service concession obligation 3,146 3,005

Service concession assets 8,301 6,362 Loans payable 3,004 645

Property and equipment 194 179 Other noncurrent liabilities 61 33

Other noncurrent assets 2,633 825 Total Noncurrent Liabilities 6,211 3,683



TOTAL ASSETS 12,855 8,836

Equity


Other equity adjustments and reserves (21) (21)




As of As of

nine months 2017 financial results analysts’ briefing · cautionary statements this presentation...

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