FIRST HALF 2017 FINANCIAL RESULTS ANALYSTS’ …...FINANCIAL RESULTS ANALYSTS’ BRIEFING 04 August 2017 CAUTIONARY STATEMENTS This presentation was prepared solely and exclusively

1

FIRST HALF 2017 FINANCIAL RESULTS ANALYSTS’ BRIEFING

04 August 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 IR Specialist – Diane A. Martinez ([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

2

mailto:[email protected]



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


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

1H 2017 CORE INCOME UP 17% TO P7.8B

3

17% increase in Core Income was driven by:

Expanded Power portfolio through increased

investments in MERALCO and Global Business

Power Corporation

Robust traffic growth for toll roads

Continuing growth in the Hospitals business

In Millions of Pesos 1H 2017 1H 2016 %

MPIC share

Power 5,291 4,193 26%

Toll Roads 2,038 1,792 14%

Water 1,842 1,799 2%

Hospitals 308 249 24%

Rail 123 159 -23%

Others (19) (43) 56%

Share in operating income 9,583 8,149 18%

Head office expenses - net (599) (539) 11%

Interest expense - net (1,184) (966) 23%

Core income 7,800 6,644 17%

Non-core income - net 21 336 -94%

Reported income 7,821 6,980 12%

In Centavos

Ordinary dividends per share 3.45 3.20 8%

Diluted EPS on Core Income 24.72 23.23 6%

Increase in interest expense is due to new debt

drawdowns amounting to P7.5 billion in 2016 and

P2.0 billion in June 2017 (proceeds were primarily

used to fund additional investments in Power); and

interest accretion on payable to PCEV totaling P19.0

billion for the step up in Beacon in May 2016 and

June 2017

Non-core income for 1H 2017 was mainly realized

gains on sale of MERALCO shares, offset by

refinancing costs, project expenses and separation

expense as a result of Maynilad’s redundancy

program

CONSOLIDATED FINANCIAL HIGHLIGHTS

MPIC Group Aggregated Revenues grew by 10% from P166.3 billion to P186.6 billion

POWER

4

CONTRIBUTION UP BY 26% TO P5.3BDeepened 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

26% increase in contribution from the Power

business was driven by:

Increase in effective ownership in Meralco

Full first half contribution from Global Business

Power Corporation (acquired in May 2016)

o Tax holidays of CEDC and PEDC (1&2) expired

in November 2016 and March 2017, respectively

Higher share in dividend income from Beacon

preferred shares offset by increase in interest

expense

In Millions of Pesos

CONTRIBUTION TO MPIC 1H 2017 1H 2016 %

Meralco (from 32.5% to 45.5%) 4,171 3,584 16%

GBPC (from 42.0 to 62.4%)* 388 170 128%

Beacon (from 50.0% to 100.0%)** 1,281 593 116%

Fair value adjustments (549) (154) 256%

5,291 4,193 26%

STAND-ALONE PERFORMANCE 1H 2017 1H 2016 %

Revenues 141,032 128,804 9%

Core EBITDA 17,215 17,951 -4%

Core income 10,118 10,388 -3%

Reported income 10,501 10,768 -2%

Capital expenditure 5,280 4,095 29%

Key Performance Indicators

Energy sales (in GWh) 20,338 19,717 3%

System loss 6.11% 6.46% N/A

Revenues 10,752 8,518 26%

Core EBITDA 4,245 4,120 3%

Core income 922 1,311 -30%

Reported income 901 1,250 -28%

Capital expenditure 780 2,387 -67%


Energy sales (in GWh) 2,027 1,787 13%

MERALCO

GLOBAL BUSINESS POWER CORPORATION

TOLL ROADS

5

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

590,432

CONTRIBUTION UP BY 14% TO

P2.0B Surging traffic growth



Metro Pacific Tollways (99.9%) 2,056 1,816 13%

Fair value adjustments (18) (24) -25%

2,038 1,792 14%


Revenues 6,460 5,946 9%

Core EBITDA 4,218 3,578 18%

Core income 2,058 1,625 27%



Average Daily Vehicle Entries

NLEX 233,652 219,322 7%

CAVITEX 137,070 127,326 8%

SCTEX 54,991 44,282 24%

Don Muang / CII Bridges & Roads 149,528 143,150 4%

Capital expenditure 2,237 2,399 -7%

METRO PACIFIC TOLLWAYS CORPORATION

WATER

6

CONTRIBUTION UP BY 2% TO P1.8B Slightly higher billed volume



Maynilad (52.8%) 1,941 1,903 2%

Fair value adjustments (104) (70) 49%

Metropac Water Investments Corp. (MWIC) 5 (34) 115%

1,842 1,799 2%


Revenues 10,242 10,120 1%

Core EBITDA 7,138 7,546 -5%

Core income 3,676 3,603 2%



Billed volume (In MCM) 253 248 2%

Non-revenue water % - average* 32.2% 29.3% 10%

Non-revenue water % - period end* 31.2% 27.8% 12%


MAYNILAD WATER SERVICES INC.

2% increase in contribution from the Water


2% increase in Maynilad’s Core Income

▪ 2% growth in billed volume offset by a lower

average tariff due to reduced consumption

per connection reflecting lower

temperatures and billing cycle

rationalization

Contribution from MWIC – impact of earnings

from Eco-system Technologies (acquired in

June 2016)

Cost-out programs and an inflationary tariff

increase (effective April 2017) improve full year

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

El Niño phenomenon

HOSPITALS

7



Metro Pacific Hospital Holdings (60.0%) 349 274 27%

Hospital admin and fair value adjustments (41) (25) -64%

308 249 24%


Revenues 10,611 9,264 15%

Core EBITDA 2,287 1,966 16%

Core income 927 766 21%

Reported income 933 767 22%


Total beds available 2,873 2,602 10%

Average standard occupancy rate 63.7% 66.7% -4%

No. of in-patients 79,484 73,416 8%

No. of out-patients 1,470,046 1,291,085 14%


HOSPITALS (AGGREGATED)

CONTRIBUTION UP BY 24% TO

P308M Strong growth and continuing expansion

24% increase in contribution from the Hospital


15% is attributable to organic growth driven by

increasing outpatient revenues across all

hospitals and increasing enrollees in schools

9% is attributable to contributions from the new

hospital acquisitions – Marikina Valley Medical

Center and Jesus Delgado Memorial Hospital

8

RAIL, LOGISTICS AND OTHERS

RAIL

As expected, decrease in contribution from the

Rail business was a function of:

6% 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%) 122 164 -26%

Holding company admin 1 (5) 120%

123 159 -23%


Revenues 1,528 1,478 3%

Core EBITDA 346 362 -4%

Core income 221 298 -26%

Reported income 221 302 -27%


Average daily ridership 429,915 405,568 6%

Capital expenditure 760 763 0%

OTHERS


AF Payments Inc. (20.0%) (68) (64) -6%

Metropac Movers Inc. (76.0%)* 34 6 467%

Indra Philippines (25.0%) 15 15 0%

(19) (43) 56%

LIGHT RAIL MANILA CORPORATION

*Acquired in May 2016

1H 2017 PROJECT UPDATES

9

POWER

MERALCO – Over 2,500MW of power

projects under development

GBPC to acquire 50% of Alsons Thermal

Energy

TOLL ROADS

Groundbreaking for New Projects

CCLEX – March 2017CALAEX – June 2017

New proposals – C5 Expressway, NLEX Port Expressway, Cavite-Tagaytay-

BatangasExpressway

WATER

MWIC – received Notice of Award for 100MLD CDO Bulk

Water Project in March 2017

HOSPITALS

Acquisition of 65% of Delgado Hospital

Ongoing execution on plans for oncology

centers and primary care clinics

RAIL

Groundbreaking for LRT1 Extension

Project in May 2017

UNSOLICITED PROPOSALS

Waste-to Energy Project – received Original Proponent

Status

New proposals –Clark Expansion,

Cargo Rail System, MRT3

UPDATES ON REGULATORY MATTERS AND2017 OUTLOOK

10

PENDING

INCREASE

(%)

PERIODS

COVERED

CUMULATIVE

REVENUE

LOSS / CLAIMS

STATUS

WATER

Maynilad 10% 2013 to 2017 P9.8 billion Maynilad’s claim on Republic of the Philippines’ letter of undertaking

unanimously upheld by arbitral tribunal on 24 July 2017 (see page

20 for details of ruling) – ongoing discussion on manner of

implementation

TOLL ROADS*

NLEX

CAVITEX

SCTEX

20%

25% / 42%

48%

2013 to 2017

2012 to 2017

2015 to 2017

P5.4 billion

P1.3 billion

P0.7 billion

Ongoing discussions with Government on possible two-stage

settlement

Stage 1 - Tariff catch-up (within 90 days)

Stage 2 – Compensation for cumulative claims (within 180 days)

RAIL 20% 2015 to 2017 P0.8 billion Establishing mechanisms for offset available in the concession

agreement in coordination with the Government

TOTAL P17.9 billion

MPIC SHARE P8.0 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 – P13.3 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

11

STAND-ALONE PORTFOLIO COMPANY RESULTS

AND KEY PRIORITIES

POWER

12

MERALCO 1H 2017 HIGHLIGHTS


Electricity 137,409 124,769 10%

Non-Electricity 3,623 4,035 -10%

Total revenues 141,032 128,804 9%

Purchased power (107,683) (95,438) 13%

Operating expenses (19,860) (19,401) 2%

Other income 659 650 1%

Provision for income tax (3,963) (4,120) -4%

Non-controlling interests (67) (107) -37%

Core income 10,118 10,388 -3%

Non-core income 383 380 1%

Reported net income 10,501 10,768 -2%

Core EBITDA Computation:

Core income 10,118 10,388 -3%

Depreciation and amortization 3,462 3,466 0%

Interest income - net (325) (355) -8%

Provision for income tax 3,963 4,120 -4%

Others (3) 332 -101%

Core EBITDA 17,215 17,951 -4%


Stand-alone Core Income 10,118 10,388 -3%

Meralco (32.5% - 45.5%) 4,171 3,584 16%

Fair Value Adjustments (566) (141) 301%

Beacon Electric (50.0% - 100.0%) 1,533 630 143%

MPIC Share 5,138 4,073 26%

10% increase in Electricity Revenues was a function of:

3% growth in total energy sales from 19,717 GWh to 20,338

GWh (3% ↑ residential, 4% ↑ commercial and 3% ↑

industrial sector)

4% growth in number of customers from 5.9M to 6.2M

12% increase in pass-through generation charges driven by

the scheduled shutdown of Malampaya gas facilities and

higher prices in the Wholesale Electricity Spot Market

10% decline in Non-electricity Revenues was due to lesser

projects of MIESCOR and MSERV and lower turn out of

insurance renewal coverages in RSIC

Decline in Core EBITDA was due to higher contracted services

and provisions

Slower decline in Core income was driven by lower taxes, higher

interest income and higher equity earnings in associates and

joint ventures

POWER KEY METRICS AND PRIORITIES

MERALCO POWER GENERATION UPDATESKEY METRICS 1H 2017 1H 2016

12-MMA System Loss 6.11% 6.46%

System Average Interruption

Frequency Index0.81 times 1.12 times

Customer Average Interruption

Duration Index104.78 min 107.31 min

Number of customers 6.17M 5.91M

Capital Expenditure (excluding

Singapore Plant)P5,280M P4,095M

Energy Sales

Residential 6,333 6,173

Commercial 8,045 7,758

Industrial 5,892 5,719

Streetlights 68 67

Total (in GWh) 20,338 19,717

1x455MW San Buenaventura Power, Mauban, Quezon (Target

completion in 2019)

• Awarded the EPC contract to a Korean and Japanese consortium

• Construction progress is at 49% and is proceeding as scheduled

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

Phase 1 in 2020)

• Executed EPC contracts with Doosan Heavy Industries & Construction

Co. Ltd. and Azul Torre Construction Inc.

• Issued limited Notice to Proceed for work activities

• ROW for Phase 1 transmission line secured; site ready for construction

activities

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

in 2021)

• Ongoing discussion with local banks on entire debt requirements

• Grid Interconnection approved by the ERC in January 2017; Connection

Agreement with NGCP executed in January 2017

• Ongoing discussion with preferred EPC contractor; negotiations largely

complete

4x132 MW Mariveles Power Generation Corporation, Mariveles, Bataan

(Target completion of Unit 1 in 2020

• Equipment supply and erection contract awarded to FHI of Taiwan

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

• Ongoing development activities

• Grid Impact Study for proposed transmission line interconnection

approved by NGCP in March 2017

13

POWER

14

GLOBAL BUSINESS POWER CORP.

1H 2017 HIGHLIGHTS

Revenue growth was driven mainly by the start of

commercial operations of PEDC3

Slower growth in Core EBITDA due to higher fuel

costs

Decline in Core Income due to expiry of the Income

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

2016 and March 2017, respectively


Stand-alone Core Income 922 1,311 -30%

GBPC (42%)* 388 170 128%

Fair Value Adjustments 17 (13) -231%

Beacon PowerGen (252) (37) 581%

MPIC Share 153 120 28%


Power billings 10,694 8,488 26%

Coal sales 58 30 93%

Total revenues 10,752 8,518 26%

Power plant costs (4,907) (3,029) 62%


Interest expense - net (1,189) (1,053) 13%

Other income 38 50 -24%

Provision for income tax (507) (25) 1928%

Non-controlling interests (473) (643) -26%

Core income 922 1,311 -30%

Non-core expense (21) (61) -66%

Reported net income 901 1,250 -28%


Core income 922 1,311 -30%


Interest expense - net 1,189 1,053 13%

Provision for income tax 507 25 1928%

Non-controlling interests 473 643 -26%

Core EBITDA 4,245 4,120 3%

KEY METRICS 1H 2017 1H 2016

Volume Sold (in GWh)

Bilateral - Generation 1,702 1,604

Bilateral - WESM 211 119

WESM - Spot Sales 114 64

Total 2,027 1,787

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

POWER

15

POWER GENERATION UPDATES

150 MW CFB Plant, Iloilo - Project Cost: US$330 million

• Final acceptance due until 1Q 2018; 100% equivalent availability factor as of June 2017

• Supported by a 70MW EPPA contract from Meralco

135-180 MW Pump Storage Project - Project Cost: US$250 million

• Feasibility study for completion in 2017

670 MW Super Critical Coal Plant, La Union (Target completion in December 2021) - Project Cost: US$1.4 billion

• Pending ERC approval of 600MW EPPA contract from Meralco

• Obtained local government endorsements and Land Conversion Certificates

• Ongoing EPC selection, transmission route survey and system impact and facility studies

• ECC targeted to be secured by 3Q 2017

36.35 MW Biomass Co-Gen Project, La Carlota, Negros Occidental (Target completion in 1Q 2020) - Project Cost: US$138 million

• Project deferred due to possible non-extension of FIT, ending in December 2017

Acquisition of 50% interest in Alsons Thermal Energy Corp. who owns a 105 MW net CFB plant in Maasim, Sarangani

• Acquisition subject to approval of the Philippine Competition Commission

• 105 MW net CFB plant (Unit 2) - target completion by 2019

KEY PRIORITIES

TOLL ROADS


Stand-alone Core Income 2,058 1,625 27%

MPTC (99.9%) 2,056 1,816* 13%

Fair Value Adjustments (18) (24) -25%

MPIC Share 2,038 1,792 14%

*Includes Don Muang Tollway contribution

16

MPTC 1H 2017 HIGHLIGHTS

Net Toll Revenues increased due to:

NLEX - Revenues up by 7% from P4,488 million to P4,785 million

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

219,322 to 233,652

• 7% increase in average daily kilometers travelled from 4.40M to 4.71M

CAVITEX - Revenues up by 11% from P667 million to P738 million

• 8% increase in average daily vehicle entries from 127,326 to 137,070 – R1

extension traffic grew fastest at 18%

SCTEX - Revenues up by 18% from P791 million to P937 million

• 24% increase in average daily vehicle entries from 44,282 to 54,991 –

Class 3 grew fastest at 39%

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 P189 million net of financing costs

3% increase in average daily vehicles entries for Original Tollway from

94,199 to 97,249

Slight decline in average daily vehicle entries for North Extension from

55,898 to 55,724

CII Bridges & Roads

Contribution amounted to P42 million

7% increase in average daily vehicle entries from 48,950 to 52,279


Net toll revenues 6,460 5,946 9%

Cost of services (2,332) (2,481) -6%

Gross profit 4,128 3,465 19%

Operating expenses (641) (544) 18%

Other income - net 154 115 34%

Share in earnings of associates 354 216 64%

Interest expense - net (617) (536) 15%


Non-controlling interest (596) (473) 26%

Core income 2,058 1,625 27%

Non-core income (expense) 1,573 (75) 2197%

Reported net income 3,631 1,550 134%


Core income 2,058 1,625 27%

Depreciation and amortization 577 542 6%

Interest expense - net 617 536 15%


Share in earnings of associates (354) (216) 64%

Non-controlling interest 596 473 26%

Core EBITDA 4,218 3,578 18%

TOLL ROADS KEY METRICS AND

PRIORITIES


Class 1 180,722 169,082

Class 2 32,970 31,452

Class 3 19,960 18,788

Total 233,652 219,322

Class 1 138,606 131,595

Class 2 26,666 25,462

Class 3 15,694 14,700

Total 180,966 171,757

Class 1 3,537 3,279

Class 2 707 678

Class 3 467 444

Total 4,711 4,401

Class 1 122,083 113,535

Class 2 9,999 9,462

Class 3 4,988 4,329

Total 137,070 127,326

Class 1 45,097 36,227

Class 2 6,032 5,286

Class 3 3,862 2,769

Total 54,991 44,282

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

Cost

Target

CompletionStatus

Philippines (In Kms) (In Billions)

Expansions to existing roads

SFEX widening N/A 1.6 1Q 2018 Awaiting Notice to Proceed

San Fernando Interchange

aaaimprovement

N/A 0.3 3Q 2017Ongoing construction

NLEX Harbour Link (Segment 10) 5.8 10.5 4Q 2017 Ongoing construction

NLEX R10 Section 2.6 6.0 3Q 2018 Pending Toll Regulatory Board

approval

CAVITEX Segment 4 1.3 1.2 2Q 2019 Ongoing ROW acquisition

CAVITEX - C5 South Link 7.7 11.7 1Q 2020 Ongoing construction of Ph. 1;

DED for Ph.2 completed; Ongoing

review of DED for Ph.3 by

independent consultant

NLEX Citi Link 7.5 8.0 2021 Ongoing ROW acquisition

New road projects awarded

Cebu Cordova Link Expressway 8.3 27.9 2020Groundbreaking held in March

2017; Ongoing DED; Ongoing

negotiations w/ potential contractor;

To begin construction by 2H 2017

Cavite Laguna Expressway 44.6 19.0 2020 Groundbreaking held in June 2017;

Ongoing ROW acquisition

NLEX-SLEX Connector Road 8.0 21.8 2021 Ongoing ROW acquisition; To

begin construction by end of 2017

TOTAL 85.8 108.0

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

17

WATER

18

MAYNILAD 1H 2017 HIGHLIGHTS

MAYNILAD

Revenues increased by 1% due to:

2% growth in volume sales from 247.6 MCM to 252.5 MCM

• 4% increase in billed customers from 1,289,223 to 1,336,566

Offset by:

• 1% decrease in average effective tariff due to reduced consumption

per connection reflecting lower temperatures

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 – 1H 2017

pertains to a one-time separation expense as a result of redundancy program

while 1H 2016 is related to deferred tax remeasure ement from OSD election

Other Businesses – Stand-alone

PhilHydro – Gross Revenues of P111 million and Operating Income of P34

million; billed volume increased from 33.3 MLD to 42.2 MLD

Subic Water – Gross Revenues of P330 million and Net Income of P86

million


Revenues 10,242 10,120 1%

Cost of services (2,909) (2,721) 7%

Gross profit 7,333 7,399 -1%


Other income (expense) - net (189) 138 -237%

Interest expense - net (865) (967) -11%

Provision for income tax (1,294) (1,770) -27%

Core income 3,676 3,603 2%

Non-core expenses (479) (593) 19%

Reported net income 3,197 3,010 6%


Core income 3,676 3,603 2%


Interest expense - net 865 967 -11%

Provision for income tax 1,294 1,770 -27%

Core EBITDA 7,138 7,546 -5%


Stand-alone Core Income 3,676 3,603 2%

Maynilad (52.8%) 1,941 1,903 2%

Fair Value Adjustments (104) (70) 49%

Metropac Water Investments 5 (34) 115%

MPIC Share 1,842 1,799 2%

WATER

19

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 P3,424,690,000 for

losses from 11 March 2015 to 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

Implications and Next Steps

▪ Maynilad will need to coordinate and cooperate with the Government in finding the most

efficient way to implement the judgment.

▪ In principle, this establishes Maynilad’s ability to claim against the Republic, but DOES NOT

constitute, and IS NOT in relation to, any tariff adjustment.

▪ Implementation of mechanism for further claims allows Maynilad to be continuously “kept

whole”.


NRW

Average 32.2% 29.3%

Period end 31.2% 27.8%

Coverage

Total population 10.06M 9.89M

Population coverage 9.34M 9.27M

24hr availability 98% 92%

Minimum 16 psi 71% 68%

Customer Mix

Residential 81% 81%

Commercial 19% 19%

Capital Expenditure P4,883M P3,625M

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

HOSPITALS


Stand-alone Core Income 927 766 21%

Metro Pacific Hospital Holdings (60.0%) 349 274 27%

Hospital admin and fair value adjustments (41) (25) -64%


20

MPHHI 1H 2017 HIGHLIGHTS


Gross revenues 10,611 9,264 15%

Discounts (992) (881) 13%

Net revenues 9,619 8,383 15%

Cost of supplies (4,062) (3,498) 16%

Gross profit 5,557 4,885 14%


Interest expense (108) (122) -12%

Other income 233 193 21%



Non-core income 6 1 500%

Reported net income 933 767 22%




Interest expense 108 122 -12%


Core EBITDA 2,287 1,966 16%

Hospitals Stand-alone Core Income MPIC Share

(In Millions of Pesos)1H

2017

1H

2016%

1H

2017

1H

2016%

Asian Hospital 204 176 16% 105 90 17%

Cardinal Santos 110 84 31% 66 50 32%

Riverside 94 91 3% 44 43 2%

Makati Med 181 155 17% 36 31 16%

Marikina Valley 48 - N/A 27 - N/A

Davao Doctors 101 108 -6% 21 23 -9%

East Manila Hospital 22 18 22% 13 10 30%

Manila Doctors 89 81 10% 11 10 10%

Others 78 53 47% 26 17 53%

Total 927 766 21% 349 274 27%

Hospital Admin/FV adjustments (41) (25) -64%


Core Income grew 21% due to increased number of patients served across

all hospitals. 15% of Core Income growth came from existing hospitals while

6% 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:

HOSPITALSKEY METRICS AND

PRIORITIES

Invest in more hospitals to expand the chain – Target of 5,000 beds and better coverage

Improve existing hospitals through investments in new equipment and renovations / expansions

Harvest synergies across the network

Group-wide policies and protocols on equipment and other purchases

Centralized laboratory

Integrate into one chain and build centers of excellence across the network

Oncology Centers

Greenfield specialist hospitals

Address changes in healthcare delivery

Nonhospital-based primary care centers – in partnership with Sanitas International

KEY PRIORITIES


Total number of beds 2,873 2,602

Number of accredited doctors 7,710 7,125

Number of enrollees 5,390 4,912

Average standard occupancy rate 64% 67%

Number of patients

In patient 79,484 73,416

Out patient 1,470,046 1,291,085

21

RAIL

22

LRMC 1H 2017 HIGHLIGHTS

Rail Revenues increased due to:

6% growth in average daily ridership from 405,568 to 429,915,

dampened by higher usage of stored value cards

14% increase in LRVs from 91 to 104 – 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 – 87% accomplished; target completion

by 4Q 2017

Station improvement plan ongoing – target completion by 2Q 2018

LRT1 Structural Restoration Project – notice to proceed issued on

30 June 2017; target completion by 2021

Station partnership programs and retail space improvement plans

South extension project

Secured financing and EPC contract

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

acquired; Notice to proceed targeted to be issued by 31 August

2017

Groundbreaking held in May 2017


Rail revenue 1,528 1,478 3%

Cost of services (930) (913) 2%

Gross profit 598 565 6%

Operating expenses (313) (234) 34%

Other income - net 32 18 78%

Interest income (expense) - net (2) 8 -125%



Non-core income - net - 4 -100%

Reported net income 221 302 -27%




Interest income (expense) - net 2 (8) 125%




Stand-alone Core Income 221 298 -26%

LRMC (55%) 122 164 -26%

Holding company admin 1 (5) 120%

MPIC Share 123 159 -23%

23

QUARTERLY ANALYSIS

POWER MERALCO QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

1Q 2017 2Q 2017 %

Total Revenues 66,576 74,456 11.8%

Core EBITDA 7,922 9,293 17.3%

Core Income 4,598 5,520 20.1%

Reported Income 4,817 5,684 18.0%

System Loss (12 mo. moving average) 6.23% 6.11% N/A

Number of customers 6.11M 6.17M 1.0%

Energy Sales

Residential 2,746 3,587 30.6%

Commercial 3,742 4,303 15.0%

Industrial 2,795 3,097 10.8%

Streetlights 34 34 0.0%

Total (in gWh) 9,317 11,021 18.3%

FINANCIAL HIGHLIGHTS

KEY METRICS

24

TOLL ROADS MPTC QUARTERLY

HIGHLIGHTS (IN MILLIONS OF PESOS)

1Q 2017 2Q 2017 %

Net Revenues 3,102 3,358 8.3%

Core EBITDA 2,126 2,092 -1.6%

Core Income 958 1,100 14.8%

Reported Income 940 2,691 186.3%

NLEX

Average Daily Vehicle Entries (Open & Closed)

Class 1 176,847 184,553 4.4%

Class 2 32,813 33,125 1.0%

Class 3 19,973 19,948 -0.1%

Total 229,633 237,626 3.5%

Average Daily Kilometers Travelled (In thousands of kms)

Class 1 3,338 3,734 11.9%

Class 2 700 714 2.0%

Class 3 465 469 0.9%

Total 4,503 4,917 9.2%

CAVITEX


Class 1 120,273 123,874 3.0%

Class 2 10,025 9,973 -0.5%

Class 3 4,749 5,224 10.0%

Total 135,047 139,071 3.0%

SCTEX


Class 1 41,565 48,590 16.9%

Class 2 5,846 6,215 6.3%

Class 3 3,717 4,006 7.8%

Total 51,128 58,811 15.0%


KEY METRICS

25

WATER

26

MAYNILAD QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

1Q 2017 2Q 2017 %

Revenues 4,788 5,454 13.9%

Core EBITDA 3,156 3,982 26.2%

Core Income 1,477 2,199 48.9%

Reported Income 1,208 1,989 64.7%

Billed volume (In MCM) 120.7 131.8 9.2%

Billed customers 1,323,063 1,336,566 1.0%

Non-revenue water

Average 33.2% 31.2% -6.0%

Period end 32.9% 31.2% -5.2%

Service levels

24-hour coverage 98.0% 98.0% 0.0%

Minimum 16 psi 71.5% 70.6% -1.3%


KEY METRICS

HOSPITALS HOSPITAL GROUP

QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

1Q 2017 2Q 2017 %

Revenues 5,358 5,253 -2.0%

Core EBITDA 1,242 1,045 -15.9%

Core Income 544 383 -29.6%

Reported Income 547 386 -29.4%

Total number of beds 2,893 2,873 -0.7%

Number of accredited doctors 7,667 7,710 0.6%

Number of enrollees 6,671 5,390 -19.2%


KEY METRICS

27

RAIL

28

LRMC QUARTERLY HIGHLIGHTS (IN MILLIONS OF PESOS)

1Q 2017 2Q 2017 %

Net Revenues 799 729 -9%


Core Income 124 97 -22%

Reported Income 124 97 -22%

LRMC - Average Daily Ridership 443,337 416,031 -6%


KEY METRICS

29

BALANCE SHEET AND CASH FLOW STATEMENTS(Tentative)

30

METRO PACIFIC INVESTMENTS CORPORATION – PARENT

BALANCE SHEET BALANCE SHEET (continued)

In PhP Mill ions June 2017 Dec 2016 In PhP Mill ions June 2017 Dec 2016

ASSETS LIABILITIES AND EQUITY

Current Assets Current Liabilities

Cash and short-term investments 7 ,008 4,162 Accounts payable and other current liabilities 995 877

Receivables - net 1 ,031 76 Due to related parties 4 ,071 2,004

Other current assets 377 401 Current portion of long-term debt 372 357

Total Current Assets 8 ,416 4,639 Total Current Liabilities 5 ,438 3,238

Noncurrent Assets Noncurrent Liabilities

Investments and advances to subs., associates & JVs 173,382 165,311 Noncurrent portion of long-term debt 38,178 36,382

Other noncurrent assets 650 533 Due to related parties 11,478 6,726

Total Noncurrent Assets 174,032 165,844 Other noncurrent liabilities 949 861

Total Noncurrent Liabilities 50,605 43,969

TOTAL ASSETS 182,448 170,483

Total Liabilities 56,043 47,207

Equity

Capital stock 31,624 31,619

Additional paid-in capital 68,456 68,438

Treasury shares (167) (167)

Other reserves 184 149

Retained earnings 26,308 23,237

Total Equity 126,405 123,276

TOTAL LIABILITIES AND EQUITY 182,448 170,483

As of As of

31

METRO PACIFIC INVESTMENTS CORPORATION –

CONSOLIDATED



ASSETS Noncurrent Liabilities

Current Assets Noncurrent portion of concession fees payable

Cash and short-term investments 42,620 21,901 long-term debt and others 186,985 121,458

Receivables 11,324 5,171 Due to related parties 11,478 6,726

Other current assets 9 ,767 4,728 Deferred tax liabilities 7 ,761 3,925

Total Current Assets 63,711 31,800 Other noncurrent liabilities 5 ,732 4,368

Total Noncurrent Liabilities 211,956 136,477

Noncurrent Assets

Investments and advances 128,416 126,556 Total Liabilities 257,221 163,521

Goodwill 35,401 21,004

Service concession assets 158,992 152,693 Equity

Property and equipment 64,550 10,480 Capital stock 31,624 31,619

Other noncurrent assets 21,597 9,069 Additional paid-in capital 68,457 68,438

Total Noncurrent Assets 408,956 319,802 Treasury shares (167) (167)

Other equity adjustments and reserves 8 ,417 8,253

TOTAL ASSETS 472,667 351,602 Retained earnings 49,656 43,889

Total equity attributable to owners of Parent 157,987 152,032

LIABILITIES AND EQUITY Non-controlling interest 57,459 36,049

Current Liabilities Total Equity 215,446 188,081

Accounts payable and other current liabilities 22,195 15,431

Due to related parties 3 ,779 1,713 TOTAL LIABILITIES AND EQUITY 472,667 351,602

Current portion of concession fees payable

long-term debt and others 19,291 9,900 - -

Total Current Liabilities 45,265 27,044

As of As of

WATER

32

MAYNILAD WATER SERVICES INC. & SUBSIDIARIES





Cash and short-term investments 4 ,916 8,066 Accounts payable and other current liabilities 11,607 10,893

Receivables 2 ,606 2,493 Current portion of interest-bearing loans 1,808 1,808

Other current assets 3 ,660 3,470 Current portion of service concession obligation 1 ,138 1,329

Total Current Assets 11,182 14,029 Total Current Liabilities 14,553 14,030


Service concession assets 72,897 69,297 Interest-bearing loans - net of current portion 24,627 24,880

Deferred tax assets 573 1,032 Service concession obligation - net of current portion 6 ,559 6,500

Property and equipment 1 ,270 1,254 Other noncurrent liabilities 698 1,507

Other noncurrent assets 806 1,567 Total Noncurrent Liabilities 31,884 32,887

Total Noncurrent Assets 75,546 73,150

Total Liabilities 46,437 46,917

TOTAL ASSETS 86,728 87,179

Equity

Capital stock 4 ,547 4,547


Other equity adjustments and reserves (474) (307)

Retained earnings 26,197 26,001

Total Equity 40,291 40,262


As of As of

WATER

33

MAYNILAD WATER SERVICES INC. & SUBSIDIARIES

CASH FLOW STATEMENT CASH FLOW STATEMENT (continued)

In PhP Mill ions June 2017 June 2016 In PhP Mill ions June 2017 June 2016

Cash F lows from Operating Activities Cash F lows from Investing Activities

Income before income tax 4,672 5,250 Additions to service concession assets (4,728) (3,429)

Adjustments for: Acquisitions of property and equipment (186) (345)

Interest expense 909 1,039 Decrease (increase) in other noncurrent assets (4) 86

Amortization of service concession assets 1,128 1,066 Dividends received 10 10

Interest income (44) (55) Net cash used in investing activities (4,908) (3 ,678)

Depreciation and amortization 171 140

Others 54 77 Cash F lows from Financing Activities

Operating income before working capital changes 6,890 7,517 Proceeds from availment of interest-bearing loans 585 626

Decrease (increase) in: Payments of:

Short-term investments 2,199 4,429 Dividends (3,000) (2,000)

Receivables (114) (125) Loans (896) (846)

Other current assets (188) (225) Service concession obligation payable (701) (871)

Increase (decrease) in other current liabilities 1,096 (743) Interest (740) (707)

Cash generated from operations 9,883 10,853 Increase (decrease) in other noncurrent liabilities 83 (26)

Interest received 44 55 Others (256) (16)

Income taxes paid (1,044) (1,109) Net cash used in financing activities (4,925) (3,840)

Net cash provided by operating activities 8,883 9,799

Net Increase (decrease) in cash and cash equivalents (950) 2,281

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

Cash and cash equivalents at end of period 4,075 5,374

TOLL ROADS

34

METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES





Cash and short-term investments 5 ,177 2,733 Accounts payable and accrued liabilities 3 ,817 3,801

Receivables 943 689 Current portion of long-term debt 5 ,379 1,047

Other current assets 1 ,983 1,301 Other current liabilities 1 ,119 882

Total Current Assets 8 ,103 4,723 Total Current Liabilities 10,315 5,730


Service concession assets 64,026 61,828 Long-term debt - net of current portion 28,272 31,309

Goodwill 8 ,089 4,979 Service concession obligation 19,090 18,551

Investment in associates 10,534 11,318 Deferred tax liabilities 1 ,094 1,072

Other noncurrent assets 2 ,465 3,268 Other noncurrent liabilities 553 739

Total Noncurrent Assets 85,114 81,393 Total Noncurrent Liabilities 49,009 51,671

TOTAL ASSETS 93,217 86,116 Total Liabilities 59,324 57,401

Equity

Capital stock 12,786 12,718


Other equity adjustments and reserves (9 ,519) (9,822)

Retained earnings 8 ,719 5,859

Total Equity Attributable to Equity Holders of Parent 30,931 26,338

Non-controlling interest 2 ,962 2,377

Total Equity 33,893 28,715


As of As of

TOLL ROADS

35

METRO PACIFIC TOLLWAYS CORPORATION AND SUBSIDIARIES


In PhP Mill ions June 2017 June 2016 In PhP Mill ions June 2017 June 2016

Cash F lows from Operating Activities Additions/Acquistions:

Income before income tax 4,979 2,693 Service concession assets (2,112) (2,344)

Adjustments for: Investments in bonds/UTIF (6,123) (3,761)

Interest expense 707 598 Investment in subsidiary (288) -

Amortization of service concession assets 458 447 Investment property (4) (38)

Interest income (32) (53) Property and equipment (135) (53)

Equity in net earning of associate (353) (70) Intangible assets (4) (3)

Depreciation and amortization 50 27 Proceeds from:

Gain on remeasurement of previously held interest (1,801) - Disposal/Maturity of AFS/investment 3,806 3,430

Others 197 (142) Sale of property and equipment 1 3

Operating income before working capital changes 4,205 3,500 Net cash used in investing activities (3,349) (2,441)

Restricted cash (193) (32)

Receivables 220 (290) Cash F lows from Financing Activities

Other current assets (318) (238) Proceeds from availment of loans 3,780 1,000

Increase (decrease) in accounts payable and other current liabilities (859) 280 Issuance of new shares 1,430 -

Cash generated from operations 3,055 3,220 Payments of:

Income tax paid (741) (557) Loan (2,710) (1,163)

Net cash provided by operating activities 2,314 2,663 Dividends (765) (1,510)

Interest (610) (626)

Cash F lows from Investing Activities Transaction costs and others (21) (75)

Dividends received 610 235 Acquisition for non-controlling interests - 319

Interest received 31 168 Net cash used in financing activities 1,104 (2,055)

Decrease (Increase) in other noncurrent assets 869 (78)

Effect of exchange rate changes on cash (1) -

Net increase (decrease) in cash and cash equivalents 68 (1,833)

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

Cash and cash equivalents at end of period 1,559 2,156

HOSPITALS MEDICAL DOCTORS INC. AND SUBSIDIARIES


In PhP Mill ions Jun 2017 Dec 2016 In PhP Mill ions Jun 2017 Dec 2016


Current Assets Deferred income tax liabilities 903 920

Cash and cash equivalents 420 706 Retirement benefit obligation 118 106

Receivables - net 918 563 Loans payable 911 1,018

Inventories - net 198 251 Provisions 103 103

Other current assets 122 72 Total Noncurrent Liabilities 2 ,035 2,147

Total Current Assets 1 ,658 1,592

Total Liabilities 3 ,388 3,376

Noncurrent Assets

Property and Equipment - net 8,068 7,915 Equity

Other noncurrent assets 132 132 Capital stock 337 336

Total Noncurrent Assets 8 ,200 8,047 Capital in excess of par value 1 ,597 1,572

Other equity adjustments 2 ,440 2,445

TOTAL ASSETS 9 ,858 9,639 Retained earnings 2 ,090 1,902

Treasury Stock (15) (15)

LIABILITIES AND EQUITY Total Equity Attributable to Equity Holders of Parent 6 ,449 6,240

Current Liabilities Non-controlling interest 21 23

Accounts payable and accrued expenses 1,089 1,011 Total Equity 6 ,470 6,263

Current portion of long-term liabilities 214 214

Other current liabilities 50 4 TOTAL LIABILITIES AND EQUITY 9 ,858 9,639

Total Current Liabilities 1 ,353 1,229

As of As of

36

HOSPITALS MEDICAL DOCTORS INC. AND SUBSIDIARIES


In PhP Mill ions Jun 2017 Jun 2016 In PhP Mill ions Jun 2017 Jun 2016

Cash Flows from Operating Activit ies Cash Flows from Investing Activit ies

Income before income tax 262 225 Acquisitions of property and equipment (393) (214)

Adjustments for:

Provisions 35 36 Cash Flows from Financing Activit ies

Depreciation and amortization 238 228 Proceeds from issuance of capital stock: 27 12

Retirement benefit expense 24 19 Payment of loan (107) (50)

Interest expense 31 28 Interest paid (32) (29)

Interest income (1) (1) Dividends paid (71) (55)

Others - 0 Net cash used in financing activities (183) (122)

Operating income before working capital changes 589 535

Decrease (increase) in: Net decrease in cash and cash equivalents (286) (94)

Receivables (384) (269)

Inventories 54 37 Cash and cash equivalents at beginning of period 706 531

Prepayments (63) (66)

Increase in: Cash and cash equivalents at end of period 420 437

Accounts payable and accrued expenses 152 12

Refundable deposits and other liabilities 38 -

Cash generated from operations 386 249

Contributions to the retirement fund (12) (8)

Income taxes paid (85) -

Interest received 1 1

Net cash provided by operating activities 290 242

37

HOSPITALS COLINAS VERDES (CARDINAL SANTOS MEDICAL CENTER)





Cash and cash equivalents 273 211 Accounts payable and accrued expenses 729 591

Receivables - net 216 200 Due to related parties 2 13

Inventories - net 70 73 Loans payable, current 150 -

Other current assets 42 33 Other current liabilities 21 20

Total Current Assets 601 517 Total Current Liabilities 902 624


Property and Equipment - net 1 ,333 1,085 Retirement plan 22 22

Deferred income tax assets 140 121 Lease payable 619 620

Other noncurrent assets 7 6 Other noncurrent liabilities - -

Total Noncurrent Assets 1 ,480 1,212 Total Noncurrent Liabilities 641 642

TOTAL ASSETS 2 ,081 1,729 Total Liabilities 1 ,543 1,266

Equity

Capital stock 50 50

Other comprehensive income 3 3

Retained earnings 485 410

Total Equity 538 463

TOTAL LIABILITIES AND EQUITY 2 ,081 1,729

As of As of

38

HOSPITALS COLINAS VERDES (CARDINAL SANTOS MEDICAL CENTER)





Adjustments for: Increase in other noncurrent assets (1) -

Provisions 2 3 Net cash used in investing activities (195) (130)

Depreciation and amortization 104 69

Interest expense 34 51 Cash Flows from Financing Activit ies

Interest income (1) (1) Availment of loans payable 150 -

Operating income before working capital changes 297 241 Payment of loans payable (73) (79)

Decrease (increase) in: Dividend payments (100) (60)

Receivables (25) (30) Net cash used in financing activities (23) (139)

Inventories 30 4

Prepayments (13) 2 Net increase (decrease) in cash and cash equivalents 62 (11)

Increase (decrease) in:

Accounts payable and accrued expenses (11) 37 Cash and cash equivalents at beginning of period 211 222

Refundable deposits and other liabilities 1 3

Cash generated from operations 279 257 Cash and cash equivalents at end of period 273 211

Interest received 1 1


39

HOSPITALS DAVAO DOCTORS HOSPITAL, INC. AND SUBSIDIARIES




Current Assets Retirement benefit obligations 51 47

Cash and cash equivalents 168 228 Other noncurrent liabilities 12 11

Receivables, net 360 274 Total Noncurrent Liabilities 63 58

Inventory, net 116 114

Prepaid expenses 36 25 Total Liabilities 462 410

Total Current Assets 680 641

Equity

Noncurrent Assets Capital stock 91 91

Property and Equipment - net 1 ,244 1,172 Capital in excess of par value 49 49

Deferred income tax assets 22 19 Treasury shares (7) (7)

Other noncurrent assets 67 68 Other equity adjustments 32 32

Total Noncurrent Assets 1 ,333 1,259 Retained earnings 1 ,386 1,325

Total Equity Attributable to Equity Holders of Parent 1 ,551 1,490

TOTAL ASSETS 2 ,013 1,900 Non-controlling interest 0 0

Total Equity 1 ,551 1,490

LIABILITIES AND EQUITY

Current Liability TOTAL LIABILITIES AND EQUITY 2 ,013 1,900


As of As of

40

HOSPITALS DAVAO DOCTORS HOSPITAL, INC. AND SUBSIDIARIES





Adjustments for Depreciation 93 76 Increase in noncurrent assets (1) (4)

Operating income before working capital changes 236 229 Net cash used in investing activities (165) (134)

Decrease (increase) in:

Receivables (85) (126) Cash Flows from Financing Activit ies

Inventories (2) 12 Dividends paid (41) (50)

Prepayments and others (11) (7) Decrease in other noncurrent liabilities 1 -

Increase in: Net cash used in financing activities (40) (50)


Net cash provided by operating activities 144 131 Net decrease in cash and cash equivalents (60) (53)

Cash and cash equivalents at beginning of period 228 272

Cash and cash equivalents at end of period 168 219

(0)

41

HOSPITALS RIVERSIDE MEDICAL CENTER GROUP




Current Assets Long-term debt - net of current 3 4

Cash and cash equivalents 301 355 Deferred income tax liabilities 76 76

Receivables - net 339 270 Accrued retirement costs 6 7

Inventories - net 93 106 Other noncurrent liabilities 14 15

Other current assets 10 7 Total Noncurrent Liabilities 99 102


Total Liabilities 609 572

Noncurrent Assets

Property and Equipment - net 1 ,140 1,093 Equity

Investment in associate 43 - Capital stock 62 62

Pension Asset 25 23 Additional paid-in capital stock 377 377

Other noncurrent assets 27 28 Other equity adjustments 167 167

Total Noncurrent Assets 1 ,235 1,144 Retained earnings 767 708

Treasury Stock (4) (4)

TOTAL ASSETS 1 ,978 1,882 Total Equity 1 ,369 1,310

LIABILITIES AND EQUITY TOTAL LIABILITIES AND EQUITY 1 ,978 1,882

Current Liabilities


Current portion of long-term debt 2 2

Unearned tuition and other school fees 126 64 -

Income tax payable 14 9

Other current liabilities 36 33

Total Current Liabilities 510 470

As of As of

42

HOSPITALS RIVERSIDE MEDICAL CENTER GROUP





Adjustments for: Investments in associates (43) -

Depreciation 43 37 Proceed from sale of property and equipment (1) (4)

Interest expense - 2 Increase in investments/other noncurrent assets (1) (4)

Interest income (2) (3) Net cash used in investing activities (109) (183)

Others 7 6

Operating income before working capital changes 176 163 Cash F lows from Financing Activities

Decrease (increase) in: Payment of long-term debt (1) (14)

Receivables (69) (29) Dividend payments (36) (34)

Inventories 13 15 Net cash used in financing activities (37) (48)

Other assets (3) (1)

Increase in: Net decrease in cash and cash equivalents (54) (109)


Other current liabilities 4 4 Cash and cash equivalents as of beginning of period 355 566


Interest received 2 3 Cash and cash equivalents at end of the period 301 457

Income taxes paid (30) (32)

Interest paid - (2)

Retirement payment (9) (3) -


43

HOSPITALS EAST MANILA HOSPITAL MANAGERS CORP. (LOURDES)




Current Assets Accrued retirement 31 27

Cash and cash equivalents 41 65 Other noncurrent liabilities 308 316

Receivables - net 73 70 Total Noncurrent Liabilities 339 343

Inventories - net 42 43

Prepaid expenses 2 4 Total Liabilities 534 570


Equity

Noncurrent Assets Capital stock 50 50

Property and Equipment - net 309 295 Reserves 5 5

Deferred income tax 112 111 Retained earnings 140 118

Other noncurrent assets 150 155 Total Equity 195 173

Total Noncurrent Assets 571 561

TOTAL LIABILITIES AND EQUITY 729 743

TOTAL ASSETS 729 743 -

LIABILITIES AND EQUITY

Current Liabilities


Current portion of long-term debt 45 70

Due to related parties 23 12

Other current liabilities 1 1

Total Current Liabilities 195 227

As of As of

44

HOSPITALS EAST MANILA HOSPITAL MANAGERS CORP. (LOURDES)





Adjustments for: Increase in other noncurrent assets (3) (4)

Depreciation 31 35 Net cash used in investing activities (43) (17)

Provision for doubtful accounts 4 3

Interest expense 1 1 Cash Flows from Financing Activit ies

Operating income before working capital changes 70 66 Loan payment (25) -

Decrease (increase) in: Increase (decrease) in:

Receivables (6) 10 Due to related parties 11 4

Inventories 1 1 Other noncurrent liabilities (7) (6)

Other current assets 2 (1) Net cash used in financing activities (21) (2)

Increase (decrease) in:

Accounts payable and accrued expenses (20) (17) Net increase (decrease) in cash and cash equivalents (24) 33

Retirement fund obligation 4 2

Cash generated from operations 51 61 Cash and cash equivalents as of beginning of period 65 46

Income taxes paid (11) (9)

Net cash provided by operating activities 40 52 Cash and cash equivalents at end of the period 41 79

45

HOSPITALS ASIAN HOSPITAL INC.






Receivables - net 356 291 Accrued interest 2 22

Inventories - net 103 127 Long-term debts, currently due 130 309

Other current assets 36 18 Refundable deposits and other current liabilities 38 47

Prepaid expenses 21 18 Total Current Liabilities 778 1,016


Noncurrent Liability

Noncurrent Assets Other noncurrent liabilities 65 58

Property and equipment, net 3 ,653 3,655

Deferred income tax 120 122 Total Liabilities 843 1,074

Computer software - net 3 3

Other non-current assets 15 15 Equity

Total Noncurrent Assets 3 ,791 3,795 Capital stock 1 ,937 1,937

Capital stock in excess of par value 185 185

TOTAL ASSETS 4 ,501 4,596 Subscription receivable (4) (4)

Other equity adjustments (3) (3)

Retained earnings 1 ,543 1,407


TOTAL LIABILITIES AND EQUITY 4 ,501 4,596

1000000

As of As of

46

HOSPITALS ASIAN HOSPITAL INC.



Cash F lows from Operating Activities Cash F low from an Investing Activity


Adjustments for:

Provisions 5 11 Cash F lows from Financing Activities

Depreciation 146 145 Payment of long-term debt (180) (130)

Amortization of capitalized borrowing cost - 1 Dividends paid (72) (39)

Interest expense 10 30 Interest paid (29) (41)

Others (7) (3) Net cash used in financing activities (281) (210)


Decrease (increase) in: Net decrease in cash and cash equivalents (153) (5)


Inventories 24 29 Cash and cash equivalents as of beginning of period 347 410

Other current assets (21) 1

Increase (decrease) in: Cash and cash equivalents at end of the period 194 405

Accounts payable and accrued expenses (111) (76)

Other current liabilities 7 (6)

Net cash provided by operating activities 285 353 -

-

47

HOSPITALS DELOS SANTOS MEDICAL CENTER






Receivables - net 89 69 Due to related parties 4 4

Inventories - net 41 42 Long-term debts, currently due 200 200

Prepaid expenses 20 17 Refundable deposits and other current liabilities 73 51

Total Current Assets 212 182 Total Current Liabilities 359 329

Noncurrent Assets Noncurrent Liability

Property and equipment, net 614 596 Retirement Liability 31 29

Deferred income tax 25 24

Other non-current assets 14 14 Total Liabilities 390 358

Total Noncurrent Assets 653 634

Equity

TOTAL ASSETS 865 816 Capital stock 114 114


Other equity adjustments 2 2




As of As of

48

HOSPITALS DELOS SANTOS MEDICAL CENTER





Adjustments for:

Provisions 5 6 Cash F lows from Financing Activities

Depreciation 44 37 Proceeds from long term debt - 85

Interest expense-net 3 3 Interest paid (3) (3)

Operating income before working capital changes 97 83 Dividends (14) (6)

Decrease (increase) in: Net cash provided by (used in) financing activities (17) 76


Inventories 2 8 Net increase in cash and cash equivalents 8 6

Other current assets (2) (13)

Increase (decrease) in: Cash and cash equivalents as of beginning of period 54 21

Accounts payable and accrued expenses 5 (67)

Other liabilities 28 14 Cash and cash equivalents at end of the period 62 27


Income tax paid (18) (11)


-

49

HOSPITALS CENTRAL LUZON DOCTORS’ HOSPITAL






Receivables - net 109 74 Dividends payable 10 11

Inventories - net 35 31 Total Current Liabilities 176 116

Prepaid expenses 7 -

Total Current Assets 191 154 Noncurrent Liabilities

Retirement Liability 8 7

Noncurrent Assets Deferred Income Tax 27 27

Property and equipment, net 357 328 Total Noncurrent Liabilities 35 34

Other non-current assets 35 21

Total Noncurrent Assets 392 349 Total Liabilities 211 150

TOTAL ASSETS 583 503 Equity

Capital stock 106 106

Additional Paid-in Capital 82 82

Treasury stock (3) (3)

Other equity adjustments 81 81




As of As of

50

HOSPITALS CENTRAL LUZON DOCTORS’ HOSPITAL





Adjustments for Depreciation 20 17 Increase in noncurrent assets (13) -

Operating income before working capital changes 47 37 Net cash used in investing activities (62) (24)

Decrease (increase) in:

Receivables (34) (13) Cash F low from a F inancing Activity

Inventories (3) 5 Dividends payment - (1)


Increase (decrease) in: Net decrease in cash and cash equivalents (9) (10)

Accounts payable and accrued expenses 45 (12)

Other current liabilities 4 1 Cash and cash equivalents as of beginning of period 49 87


Cash and cash equivalents at end of the period 40 77

-

51

HOSPITALS MEGA CLINIC






Receivables - net 74 60 Loans payable 5 5

Inventories - net 5 2 Due to related parties 15 14

Prepaid expenses 15 22 Total Current Liabilities 86 79


Noncurrent Liability

Noncurrent Assets Retirement Liability 1 1

Property and equipment, net 32 33

Deferred income tax 7 7 Total Liabilities 87 80


Total Noncurrent Assets 60 51 Equity

Capital stock 66 66

TOTAL ASSETS 160 148 Other equity adjustments - -

Retained earnings 7 (1)

####### Total Equity 73 65


As of As of

52

HOSPITALS MEGA CLINIC





Adjustments for:

Provisions 1 3 Cash F low from a F inancing Activity

Depreciation 5 3 Payment of loans (5) -


Increase in: Net decrease in cash and cash equivalents (7) -


Inventories (1) (2) Cash and cash equivalents as of beginning of period 13 18

Prepayments (6) (3)

Increase in Accounts payable and accrued expenses 6 15 Cash and cash equivalents at end of the period 6 14

Net cash provided by operating activities 1 -

53

HOSPITALS WEST METRO MEDICAL CENTER





Cash and cash equivalents - 35 Accounts payable and accrued expenses 39 57

Receivables - net 22 14 Other non-current assets 16 1


Prepaid expenses 3 2

Total Current Assets 62 105 Noncurrent Liability


Noncurrent Assets

Property and equipment, net 126 87 Total Liabilities 56 59



Capital stock 75 75

TOTAL ASSETS 318 304 Deposit for future stock subscriptions 175 166

Other equity 3 3




As of As of

54

HOSPITALS WEST METRO MEDICAL CENTER





Adjustments for: Increase in noncurrent assets (18) -

Provisions 1 - Net cash used in investing activities (64) (24)

Depreciation 7 1


Decrease (increase) in: Equity Infusion 9 85

Receivables (8) (2) Increase in Noncurrent Assets - (12)

Inventories 52 (25) Net cash provided by financing activities 9 73

Other current assets (2) -

Increase (decrease) in: Net increase (decrease) in cash and cash equivalents (35) 38

Accounts payable and accrued expenses (29) 4

Other current liabilities (12) 3 Cash and cash equivalents as of beginning of period 35 4

Net cash provided by (used in) operating activities 20 (11)

Cash and cash equivalents at end of the period - 42

-

55

HOSPITALS MANILA DOCTORS, INC.






Receivables - net 5 295 Long-term debts, currently due 150 150

Inventories - net 249 112 Other current liabilities - 13

Other current assets 59 1 Total Current Liabilities 518 585


Total Current Assets 518 557 Noncurrent Liabilities

Long-term debt - net of current 350 250

Noncurrent Assets Other noncurrent liabilities 86 75

Property and equipment, net 1 ,638 1,516 Total Noncurrent Liabilities 436 325


Other non-current assets 64 13 Total Liabilities 954 910

Total Noncurrent Assets 1 ,730 1,557

Equity

TOTAL ASSETS 2 ,248 2,114 Capital stock 206 198


Other equity adjustments (7) (7)

Retained earnings 1 ,047 957


1000000 TOTAL LIABILITIES AND EQUITY 2 ,248 2,114

As of As of

56

HOSPITALS MANILA DOCTORS, INC.





Adjustments for: Increase in noncurrent assets - (3)

Provisions 6 1 Net cash used in investing activities (184) (84)

Depreciation 73 9

Operating income before working capital changes 207 126 Cash F low from a F inancing Activity

Decrease (increase) in: Availment of loan 100 101


Inventories (6) (1) Net increase (decrease) in cash and cash equivalents (49) 48

Other current assets (43) 1

Increase (decrease) in: Cash and cash equivalents as of beginning of period 136 57

Accounts payable and accrued expenses (114) (33)

Other current liabilities 3 (53) Cash and cash equivalents at end of the period 87 105


57

HOSPITALS SACRED HEART HOSPITAL






Receivables - net 30 26 Other current liabilities 22 22





Noncurrent Assets




Capital stock 225 225

TOTAL ASSETS 357 352 Other equity adjustments - 0




As of As of

58

HOSPITALS SACRED HEART HOSPITAL





Adjustments for Depreciation 12 9


Decrease (increase) in: Equity Infusion - 150

Receivables (4) (1) Dividend payments (5) -

Inventories - 1 Net cash provided by (used in) financing activities (5) 150


Decrease in Accounts payable and accrued expenses (11) (35) Net increase (decrease) in cash and cash equivalents (8) 127

Net cash provided by (used in) operating activities 18 (22)

Cash and cash equivalents as of beginning of period 142 30

Cash and cash equivalents at end of the period 134 157

59

HOSPITALS MARIKINA VALLEY MEDICAL CENTER






Receivables - net 59 38 Other current liabilities 12 29





Noncurrent Assets



Other non-current assets 1 2 Equity

Total Noncurrent Assets 314 287 Capital stock 126 126

Additional paid in capital 96 96

TOTAL ASSETS 604 575 Other equity adjustments (2) (2)




As of As of

60

HOSPITALS MARIKINA VALLEY MEDICAL CENTER


In PhP Millions Jun 2017 In PhP Millions Jun 2017


Income before income tax 68 Acquisitions of property and equipment (45)

Adjustments for Depreciation 16 Increase in noncurrent assets 1

Operating income before working capital changes 84 Net cash used in investing activities (44)

Increase in Receivables (8)

Increase (decrease) in: Net decrease in cash and cash equivalents (4)

Accounts payable and accrued expenses 1

Other current liabilities (37) Cash and cash equivalents as of beginning of period 218

Net cash provided by operating activities 40

Cash and cash equivalents at end of the period 214

-

61

HOSPITALS JESUS DELGADO MEMORIAL HOSPITAL


In PhP Mill ions Jun 2017 In PhP Mill ions Jun 2017



Cash and cash equivalents 99 Accounts payable and accrued expenses 21

Receivables - net 35 Other current liabilities 2

Inventories - net 6 Total Current Liabilities 23

Prepaid expenses 10

Total Current Assets 150 Noncurrent Liabilities

Retirement Liability 8

Noncurrent Assets Other noncurrent liabilities 23

Property and equipment, net 83 Total Noncurrent Liabilities 31

Other non-current assets 12

Total Noncurrent Assets 95 Total Liabilities 54

TOTAL ASSETS 245 Equity

Capital stock 149

Retained earnings 42

Total Equity 191

TOTAL LIABILITIES AND EQUITY 245

As of As of

62

HOSPITALS JESUS DELGADO MEMORIAL HOSPITAL


In PhP Mill ions Jun 2017 In PhP Mill ions Jun 2017


Income before income tax (1) Acquisitions of property and equipment 2

Increase in: Increase in noncurrent assets (3)

Receivables (19) Net cash used in investing activities (1)

Inventories (1)

Other current assets (3) Cash F lows from Financing Activities

Increase (decrease) in: Loan payments (6)

Accounts payable and accrued expenses (20) Equity infusion 133

Other current liabilities 1 Net cash provided by financing activities 127

Net cash used in operating activities (43)

Net increase in cash and cash equivalents 83

Cash and cash equivalents as of beginning of period 16

Cash and cash equivalents at end of the period 99

63

Documents

FIRST HALF 2017 FINANCIAL RESULTS ANALYSTS’ …...FINANCIAL RESULTS ANALYSTS’ BRIEFING 04 August 2017 CAUTIONARY STATEMENTS This presentation was prepared solely and exclusively