First Pacific : MPIC 9M 2017 core net income up 22% to record ₱11.3 bln; Earnings fueled by increased investment growth

第一太平有限公司

(Incorporated with limited liability under the laws of Bermuda)

Press Release

Wednesday, 8 November 2017

The attached press release was released today in Manila by Metro Pacific Investments Corporation ("MPIC"), in which First Pacific Group holds an economic interest of approximately 42.0%.

MPIC is a Philippine-listed investment management and holding company focused on infrastructure development.

Further information on MPIC can be found at www.mpic.com.ph

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For further information, please contact:

John Ryan Tel: +852 2842 4355

Head of Investor Relations Mobile: +852 6336 1411 Executive Vice President

Group Corporate Communications

Sara Cheung Tel: +852 2842 4336 Vice President

Group Corporate Communications

PRESSRELEASE

Earnings fueled by increased investment growth

• 9M 2017 Core Net Income up 22% to ₱11.3 Bln from ₱9.3 Bln in 9M 2016

• Reported Net Income attributable to shareholders up 17% to ₱11.1 Bln

• System wide revenues including MERALCO up 11% to ₱280.3 Bln

• Fully Diluted Core Net Income per share up 14% to 35.90 centavos

• MPIC Parent gearing ratio of 23.8% vs. 26.4% at year end

• MERALCO Core Net Income ₱15.4 Bln, Core EBITDA ₱26.3 Bln

• Global Power Core Net Income ₱2.1 Bln, Core EBITDA ₱7.0 Bln

• Tollways Core Net Income ₱3.0 Bln, Core EBITDA ₱6.3 Bln

• Maynilad Water Core Net Income ₱5.6 Bln, Core EBITDA ₱10.8 Bln

• Hospital Group Core Net Income ₱1.5 Bln, Core EBITDA ₱3.6 Bln

• Light Rail, Logistics and Other businesses contributed ₱173 Mln

• MPIC Group wide CAPEX for 9M2017 amounted to ₱49.6 Bln including

₱25.3 Bln invested in acquisitions

MANILA, Philippines, 8th November 2017 - Metro Pacific Investments Corporation ("MPIC" or the "Company") (PSE: MPI) today reported a 22% rise in consolidated Core Net Income to ₱11.3 billion for the nine (9) months ended 30th September 2017 from

₱9.3 billion in the same period last year on the strength of its expanded presence in the power industry.

Core Net Income was lifted by: (i) an expanded power portfolio through increased investment in Beacon Electric Asset Holdings Inc. ("Beacon Electric"); (ii) robust traffic growth on all roads held by Metro Pacific Tollways Corporation ("MPTC"); and (iii) continuing growth in the Hospital Group.

In terms of contribution to the Company's net operating income: Power (distribution and generation) accounted for ₱7.6 billion or 54% of the aggregate contribution; Tollroads contributed ₱3.0 billion or 21% of the total; Water (distribution, production and sewerage treatment) contributed ₱2.8 billion or 20% of the total; the Hospital Group provided ₱518 million or 4% of the total; and the Rail, Logistics and Systems Group delivered ₱173 million or 1% of the total.

Consolidated Reported Net Income attributable to owners of the parent company rose 17% to ₱11.1 billion in the first nine months of 2017 from ₱9.5 billion in the year-earlier period. Non-recurring expense amounted to ₱202 million and was largely made up of refinancing expenses, project expenses and a separation expense as a result of Maynilad's redundancy program, largely offset by a realized gain on sale of shares in MERALCO.

Jose Ma. K. Lim, MPIC President and CEO said, "Our earnings growth reflects our increased investment in the power sector together with strong volume growth at our tollroads and hospitals businesses."

The good news continued: "I believe we are getting close to resolution with the Government of at least some of the tariff issues that have held back growth in earnings in recent years," he said.

"The government recognizes and values the extensive capital expenditures and service improvements we have made over many years and it respects the validity of our contracts," Lim said. "We are working through the practicalities of long-delayed but achievable price increases while being fair to tax payers. We are jointly determined to prevent a repetition of these issues building up again in the future."

Operational Review

POWER:

In June 2017, MPIC further deepened its participation in the Philippine power sector as it acquired the remaining 25% ownership in Beacon Electric at an aggregate purchase price of ₱21.8 billion. Following this and related transactions, MPIC's economic interest in MERALCO is 45.5% and in Global Business Power Corporation ("Global Power") is 62.4%.

MPIC's power business contributed ₱7.6 billion in the first nine months of 2017, an increase of 33% driven by the various step-up investments in MERALCO and Global Power.

MPIC is continuing its development of power-related services and investments in the Philippines with its combination of distribution, generation and retail electricity sales across Luzon, the Visayas and soon in Mindanao.

On 27th March 2017, an MPIC led consortium including Covanta Energy, LLC and Macquarie Group, Ltd. was granted Original Proponent Status by the Quezon City Government for a 42 MW energy from waste project. Work is now ongoing toward concession framing which we hope to formalize by the end of the year.

In June 2017, MPIC and Global Power announced that Global Power had entered into an agreement with Alsons Consolidated Resources, Inc. ("ACR") to acquire 50% of ACR's coal-generation portfolio holding company in Mindanao, subject to fulfilment of certain conditions. This investment was cleared by the Philippine Competition Commission on 25th September 2017 and is now in the final stages of closing.

Through its portfolio companies MPIC is committed to the provision of long-term and effective power generation throughout the Philippines. Coal, even with the clean coal technologies we are committed to, may not be popular with certain segments of society but remains for the time being the most efficient way to supply the essential base load to provide stable power to homes and business throughout the country. MPIC is also committed to seeking increased investment in renewable energy compatible with the demand profile of the Philippines.

MERALCO

MERALCO's Core Net Income for the first nine months of 2017 grew by 3% to ₱15.4 billion. Distribution revenues rose by 4% in line with volume growth on flat tariffs which combined with an improved result from associated companies to increase Core Income by 3% to ₱15.4 billion for the period

The 4% increase in energy sales was noted across all customer classes which all grew by 4%. Residential growth was driven by the increasing number of condominiums, apartments and government housing. Commercial sector grew on continued expansion of the Business Process Outsourcing and Gaming Operators while the Industrial sector was anchored on the robust performance of the semiconductor, food and beverage, and basic metal industries.

Total revenues rose 10% to ₱214.4 billion due to increased energy sales and higher pass-through generation charges driven by sharply higher fuel prices caused by a scheduled maintenance shutdown of the Malampaya gas facilities, increased price of coal and oil and the depreciation of the Philippine Peso against the U.S. dollar.

MERALCO spent ₱8.1 billion on capital expenditures in the first nine months of 2017 to address critical loading of existing facilities and to accommodate growth in demand and customer connections. MERALCO surpassed the previous year's operating performance for system loss, achieving a record best of 6.1% at the end of September 2017, 2.4 percentage points lower than the regulatory cap of 8.5% set by the Energy