2017 Annual Report

2017 Annual Report TABLE OF CONTENTS METRO PACIFIC INVESTMENTS CORPORATION is a Philippine-based, publicly-listed investment and 1 Our Business management company registered with the Philippine 2 Five-Year Consolidated Performance Securities and Exchange Commission on 20 March 2006. 3 Share in Operating Core Income We are a leading infrastructure holding company in the Philippines with a diverse set of infrastructure assets through 4 2017 Key Highlights our investments in power, toll roads, water utilities, hospital 6 Corporate Structure operations, light rail, and logistics. We are committed to investing through acquisitions and strategic partnerships 9 Significant Events in prime infrastructure assets with the potential to provide 12 Message from the Chairman synergies with our existing operations. 16 Message from the President and Chief Executive Officer 22 Message from the Chief Financial Officer OUR MISSION We are the leading infrastructure investment firm. We 26 Power manage, transform and grow our companies while 32 Toll Roads continuously seeking investment opportunities to create 38 Water long-term value for our shareholders. 44 Hospitals OUR 48 Light Rail VISION We have a stellar portfolio of infrastructure assets, each being 53 Summary of Major Expansion Projects the dominant player in its field. We are admired globally for excellence in investing and transforming infrastructure. We 54 Corporate Social Responsibility attract, retain and develop world-class talent. Through our 68 Milestones companies and foundation, we significantly contribute to the 76 Board of Directors economic development of the Philippines and thereby uplift the quality of life of every Filipino. 84 Senior Executives 90 Management Teams OUR VALUE 92 Corporate Governance 96 Whistle-Blowing Policy TEAMWORK AND EMPOWERMENT • We recognize the diverse strengths and abilities within 100 MPIC Awards and Recognitions the team. 102 Risk Management • We enable and inspire people to achieve superior results. 106 Risk Management Committee Report INTEGRITY AND TRANSPARENCY • We adhere to the highest ethical and corporate 107 Financial Statements governance standards. ENTREPRENEURSHIP • We innovate, take risks, act quickly and decisively, and are customer focused. FINANCIAL DISCIPLINE AND ACCOUNTABILITY • We employ rigorous financial analysis to arrive at sound business decision. *Digital document file of detailed Financial Statements are attached • We are results-driven and meet our commitments. OUR BUSINESS Powering commerce and households. Connecting people and places. Ensuring clean and safe water. Making excellent hospitals available for everyone. Managing a reliable light rail system. Increasing efficiencies in the movement of goods. As we continue to invest in critical infrastructure, we also anchor our efforts on all-encompassing growth: that our investments benefit all stakeholders—from consumers with basic services, employees in an inclusive and merit-based organization, to shareholders with reasonable returns. 2017 GROUP WIDE FINANCIAL HIGHLIGHTS (Aggregate including Associates and Joint Ventures) REVENUES CORE EBITDA P373.1 billion P72.5 billion CORE INCOME REPORTED INCOME P36.9 billion P37.7 billion 2017 CONTRIBUTION TO MPIC POWER 52% LIGHT RAIL AND OTHERS 1% P17.8 HOSPITALS 4% billion TOLL ROADS 22% WATER 21% 2017 Annual Report 1 Five-Year Consolidated Performance REVENUES CORE INCOME REPORTED INCOME (In P Millions) (In P Millions) (In P Millions) 13,151 14,104 62,512 11,456 12,106 9,546 10,346 44,820 7,940 8,508 37,239 7,229 7,209 33,832 30,877 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 DILUTED EARNINGS DIVIDEND PER SHARE TOTAL CONSOLIDATED PER SHARE (In Centavo) (In Centavo) ASSETS (In P Millions) 41.67 11.05 10.00 38.06 503,751 9.30 34.45 30.44 27.72 351,602 6.30 302,180 234,012 3.70 200,584 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2 Metro Pacific Investments Corporation TOTAL CONSOLIDATED SHARE IN OPERATING CORE INCOME EQUITY (In P Millions) (In P Millions) POWER TOLL ROADS 215,679 3,901 9,378 188,081 3,517 7,229 150,777 2,828 129,572 113,280 2,239 1,874 4,543 3,027 2,333 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 MARKET CAPITALIZATION (In P Millions) WATER HOSPITAL / LIGHT RAIL / OTHERS 835 823 4,819 215,847 4,376 209,815 3,789 3,733 581 3,564 145,004 454 437 119,808 112,428 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2017 Annual Report 3 2017 Key Highlights POWER MANILA ELECTRIC COMPANY (MERALCO) GLOBAL BUSINESS POWER CORPORATION* P8,951MN 6.33 million P427MN Contribution to MPIC Number of customers Contribution to MPIC 42,102GWH 8.39 4,465GWH Energy Sales Customer Satisfaction Index Energy Sales (All-time High) REVENUES CORE INCOME REVENUES CORE INCOME (In P Millions) (In P Millions) (In P Millions) (In P Millions) 2,883 23,794 2,843 282,556 20,213 257,181 19,583 18,887 258,399 17,637 2015 2016 2017 2015 2016 2017 2016 2017 2016 2017 *Acquired in 2016 TOLL ROADS – METRO PACIFIC TOLLWAYS CORPORATION P3,901MN 237,046 Contribution to MPIC Average Daily Vehicle REVENUES CORE INCOME Entries - NLEX (In P Millions) (In P Millions) 139,208 13,107 Average Daily Vehicle 458,175 3,935 11,902 Entries - CAVITEX Average Daily Vehicle 3,276 9,691 Entries - DMT / CII / 2,571 NUSANTARA 54,566 2015 2016 2017 2015 2016 2017 Average Daily Vehicle Entries - SCTEX 4 Metro Pacific Investments Corporation WATER - MAYNILAD WATER SERVICES, INC. REVENUES CORE INCOME P3,733MN 31.7% (In P Millions) (In P Millions) Contribution to MPIC Non-Revenue Water (period-end at District Metered Area level) 20,774 20,224 19,098 9,683 7,171 512MCM 1,358,758 7,379 Billed Volume Billed Customers 2015 2016 2017 2015 2016 2017 HOSPITALS - METRO PACIFIC HOSPITAL HOLDINGS, INC. MN REVENUES CORE INCOME P685 8,057 (In P Millions) (In P Millions) Contribution to MPIC Number of Accredited Doctors 3,211 3,085,638 22,464 2,046 19,641 Number of Beds Number of Out-Patients 1,756 15,272 68.3% 173,939 1,309 Average Occupancy Rate Number of In-Patients 2015 2016 2017 2015 2016 2017 LIGHT RAIL - LIGHT RAIL MANILA CORPORATION** REVENUES CORE INCOME P283MN 435,199 (In P Millions) (In P Millions) Contribution to MPIC Average Daily Ridership 514 505 3,155 3,016 109 897 Number of Light Rail 80 Vehicles 2015 2016 2017 2015 2016 2017 **Acquired in September 2015 2017 Annual Report 5 Corporate Structure (As of April 2018) POWER 45.5% 62.4% Manila Electric Company (MERALCO) is the largest Global Business Power Corporation is a electric distribution company in the Philippines, leading power producer in the Visayas Region distributing 55% of Philippine energy sales. It holds a and Mindoro Island, with a combined gross 25-year franchise to construct, operate, and maintain dependable capacity of 854 MW. the electric distribution system of 36 cities and 75 municipalities, including Metro Manila. TOLL ROADS 75.2% 99.9% NLEX Corporation, formerly Manila North Tollways CAVITEX Infrastructure Corporation holds Corporation, holds the concession rights to construct, the concession rights for the operation and operate and maintain the North Luzon Expressway maintenance of the Cavite Expressway. (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), and the NLEX-SLEX Connector Road. 99.9% MPCALA Holdings, Inc. holds the concession to 72.5% design, finance, construct, operate and maintain the Tollways Management Corporation is engaged in the Cavite-Laguna Expressway. operations and maintenance of toll roads, its facilities, interchanges and all related works. It currently operates and maintains the NLEX and SCTEX. 99.9% Cebu Cordova Link Expressway Corporation holds the 44.9% concession rights to construct, operate and maintain CII Bridges and Roads is engaged in the construction, the Cebu Cordova Link Expressway. development and operation of the urban infrastructure sector in Vietnam. 29.5% Don Muang Tollway Public Company Limited holds 48.3% the concession rights to operate toll road services PT Nusantara is a listed Indonesian infrastructure from Din Daeng to National Memorial Monument in company with investments in tollroads, telecom towers, Thailand. water, ports, and energy. WATER 52.8% 100.0% Maynilad Water Services, Inc. is the largest water MetroPac Water Investments Corporation is an concessionaire in terms of customer base in the investment holding company which operates, Philippines, providing water and sewerage services to manages, maintains and rehabilitates waterworks, 9.9 million customers across cities and municipalities in sewerage and sanitation systems and services for the West Service Area of Metro Manila. water districts outside Metro Manila. 6 Metro Pacific Investments Corporation HOSPITALS 51.4% Asian Hospital and Medical Center is the first major 19.7% private hospital with tertiary care facilities in the Makati Medical Center is a leading hospital that Southern Luzon corridor of metropolitan Manila. services the primary central business district in Metro Manila. 30.7% Central Luzon Doctors’ Hospital is a tertiary, Level 4 46.9% private hospital with teaching and training facilities in Bacolod City’s premier medical institution, Family Medicine and Pediatrics. Riverside Medical Center is a level 3 tertiary teaching hospital providing quality patient care for the Negrense since 1954. 60.1% Cardinal Santos Medical Center is one of the 48.1% Philippines’ leading hospitals specializing in the St. Elizabeth Hospital is a tertiary hospital in General fields of Brain, Spine, Heart, Cancer and Minimally Santos City with 249-bed capacity. Invasive Surgery. 30.7% 21.2% Sacred Heart Hospital of Malolos, Inc. is a 72-bed Davao Doctors Hospital is a privately-owned, tertiary capacity, Level 2 Hospital located in Malolos City, level and multi-specialty hospital located in the heart province of Bulacan.

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