First Gen Corporation

FIRST GEN CORPORATION

FY 2018 FINANCIAL AND OPERATING RESULTS
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DISCLAIMER
This presentation contains forward-looking statements. Forward-looking statements include words or phrases such
as First Gen or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or
phrases of similar import. Similarly, statements that describe First Gen’s objectives, plans or goals are also forward-
looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such
forward-looking statements are made based on management’s current expectations or beliefs as well as
assumptions made by, and information currently available to, management. First Gen does not make express or
implied representations or warranties as to the accuracy and completeness of the information contained herein and
shall not accept any responsibility or liability (including any third party liability) for any loss or damage, whether or
not arising from any error or omission in compiling such information or as a result of any party’s reliance on or use
of such information. The information and opinions in this presentation are subject to change without notice.

This presentation does not constitute a prospectus or other offering memorandum in whole or in part. Information
contained in this presentation is a summary only. This presentation shall not constitute an offer to sell or the
solicitation of an offer to buy any security. There shall be no sale of these securities in any country or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such country or
jurisdiction. By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor
and possesses sufficient investment expertise to understand the risks involved in the offering. Investors must rely
solely on their own examinations of the company and the offering in making a determination as to whether to
invest in the securities offered. Prospective investors should undertake their own assessment with regard to their
investment and they should obtain independent advice on any such investment’s suitability, inherent risks and
merits and any tax, legal and accounting implications which it may have for them.

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 2018 WAS A REMARKABLE YEAR AS FIRST GEN ACHIEVED
SEVERAL TRANSFORMATIVE MILESTONES

1 2 3

APPROVAL OF LEYTE RETURN TO SERVICE EDC DELISTING

SAN GABRIEL PSA AFTER TYPHOON URDUJA

4 5

SIGNING OF LNG JOINT DEVELOPMENT DELEVERAGING

AGREEMENT WITH TOKYO GAS ACTIVITIES
3
 1 IN JUNE 2018, SAN GABRIEL WAS GRANTED A PSA
WITH MERALCO FOR THE SALE OF ALL OF ITS
BASELOAD CAPACITY

Six (6) years until February 23,

Term 2024 (can be extended upon
agreement)

(i) competitive dependable

Benefits
baseload capacity;

(ii) immediate replacement

power during outages of other
plants; and

(iii) ability to rapidly ramp up and

down

420 MW SAN GABRIEL

Natural gas-fired plant

*PSA was filed for application with the ERC on 13-Mar-18; interim approval accepted on June 26, 2018 based on certain conditions on
the PSA
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 IN THE 3RD QUARTER OF 2018, EDC HAD FULLY
2
RESTORED ITS LARGEST POWER PLANT, UNIFIED
LEYTE, BACK TO NORMAL OPERATING LEVELS

LEYTE GEOTHERMAL FACILITY

RETURN TO SERVICE MW BUILD UP
544
540 520 521 526
523 533 538
512 521 525
463 499 501 504 498
494 481 489 490
443
459
444 455
427431 433
416
420 EARTHQUAKE 407 408
389 392
370
350
322
318
291
263
243
240

203 TYPHOON URDUJA Mar-18

Jan-18

Mar-18

Mar-18

Mar-18

Apr-18

Apr-18
1H 2017

Jan-18

Jun-18

Jun-18
Dec-17

Dec-17

Feb-18

May-18

Sep-18
Feb-18

Feb-18

Feb-18

Feb-18

Sep-18
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 3 IN NOVEMBER 2018, EDC SUCCESSFULLY CONCLUDED ITS
PHP14.6 BILLION DELISTING TENDER OFFER RESULTING IN THE
REDUCTION OF ITS PUBLIC FLOAT FROM 10.9% TO 0.2%

EDC Tender Offer Result

(In Million Shares)
Current Structure
FIRST GEN 1
Tendered Not Tendered 45.72% economic
64.97% voting

2,009 PREHC
54.10% economic
34.91% voting
99.82%
Private Public
31 0.18% economic
0.12% voting

Energy Development
Corporation

EDC WAS SUCCESSFULLY DELISTED FROM THE PHILIPPINE STOCK EXCHANGE (PSE)
ON NOV 29, 2018
1 6
Represent total common shares held by Red Vulcan Holdings Corporation, First Gen Corporation, and Northern Terracotta Power Corp
 4 IN DECEMBER 2018, FIRST GEN INKED A JOINT DEVELOPMENT
AGREMENT WITH TOKYO GAS - JAPAN’S LARGEST PROVIDER OF
CITY GAS - FOR ITS LNG TERMINAL PROJECT

Tokyo gas is a global gas utility and a leader

in the LNG industry

Dec 5,
JDA between First Gen Number 1
2018
and Tokyo Gas in Japan

Tokyo Gas will provide support PLANNED

in development work, under TERMINAL
a 20% participating interest
(80% for First Gen)
15 MTPA 4 Terminals 50 years
Final Investment LNG procurement for regasification experience with LNG
Decision (FID)

Parties will enter into a

Definitive Agreement
regarding the construction
of the LNG Terminal
11 LNG carriers 35 overseas projects
owned or under construction providing LNG consulting
services

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 FIRST GEN HAS ALSO CONTINUED ITS DELEVERAGING ACTIVITIES
5 BY FULLY PAYING DOWN ITS REMAINING OUTSTANDING US$300
MILLION BOND, ITS OUTSTANDING SERIES F PREFERRED SHARES,
AND ITS FG HYDRO DEBT IN 2018

Consolidated Debt1 Outstanding Parent Debt1 and Preferred Shares

in US$ MM in US$ MM
$2,513 MM
$614 MM
Parent 278 $ 2,223 MM
20 Series F Prefs
167 120
Hydro 2.8
Series G Prefs $382 MM
1,283 2.3
216
Geo,Wind,Solar 1,251
(EDC) Parent Dollar 215
Bond 91
Gas
932 Parent Notes
804 Facility 187 167
Net Debt/EBITDA

2017 2018 2017 2018

THE FIRST GEN GROUP REALIZED LOWER INTEREST EXPENSE AND PREFERRED
DIVIDENDS BY 22% IN 2018 TO US$158 MM FROM US$203 MM 8
1Outstanding debt amounts are net of debt issuance costs
 FINANCIALS
CONSOLIDATED REVENUES IN 2018 WERE HIGHER BY 16%
TO US$2.0 BILLION MAINLY FROM THE STRONG
PERFORMANCE OF OUR NATURAL GAS ASSETS

Consolidated Revenues Revenues Per Platform

2018 vs. 2017 (in millions) 2018 2017 (n millions)

1,240 20%
Natural Gas
US$ 1,979 16% 1,036

1,708
Geo, Wind, 652 9%
Solar 595
 Higher revenues from San Gabriel
 Higher NDC and fuel prices of Sta.
Rita and San Lorenzo 36 8%
Hydro
 Higher EDC from the recovery of its 34
Leyte plants
 Lower Avion due to lower dispatch
50 18%
FGES
43

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 FINANCIALS
FIRST GEN REPORTED A RECORD-HIGH RECURRING NET
INCOME (RNI) OF US$243 MILLION IN 2018, 51% HIGHER
THAN IN 2017
Recurring Net Income Attributable to Parent RNI Contribution Per Platform

2018 2017 (in millions) 2018 2017 (in millions)

186 55%
Natural Gas
US$ 243 51% 120

74 13%
161 Geo, Wind, Solar
85
 Higher earnings from San Gabriel
 Higher NDC of Sta. Rita and San 6 24%
Lorenzo, and lower G&A Hydro
8
 Lower interest expenses of Sta. Rita
and Parent
(19)  57%
 Lower G&A expenses of the Parent Parent expenses
(44)
 Lower 2018 average economic stake
in EDC
(4)  47%
 Lower FG Hydro from lower ASPA Others
revenues (7)

AFTER ADJUSTING FOR PREFERRED SHARE DIVIDENDS, FIRST GEN’S ADJUSTED RNI
GREW BY 66% TO US$221 MILLION IN 2018 FROM US$133 MILLION
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NATURAL GAS

THE 1,500 MW SANTA RITA AND SAN LORENZO PLANTS

GENERATED HIGHER RNI DRIVEN BY THEIR HIGHER NDC AND
LOWER INTEREST EXPENSES IN 2018
1,500MW SANTA RITA AND SAN LORENZO
2018 2017
NET DEPENDABLE CAPACITY
REVENUES (in MW)
2%
(in millions)
11% 1,654

US$ 1,024 1,618

AVE. SELLING PRICE
920 (in PHP/KWH)
11%
RECURRING NET INCOME 4.9
(in millions)
4.5
11%
INTEREST EXPENSE
US$ 145 (in millions)
▼34%
130
US$ 31
47 11
 NATURAL GAS
SAN GABRIEL’S RECURRING NET INCOME MADE A COMPLETE
TURNAROUND AS A RESULT OF ITS STRONG SPOT MARKET SALES IN 1H18
AND THE START OF ITS PSA SALES TO MERALCO IN JUNE 2018
420MW SAN GABRIEL
2018 2017
REVENUES NET CAPACITY FACTOR
(in millions) (in %)
102% 59%
US$ 199 61%
99 38%

RECURRING NET INCOME AVE. SELLING PRICE

(in millions) (in PHP/KWH)

724% 33%
US$ 43 4.8

(7) 3.6

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 NATURAL GAS
AVION BOOKED A LOWER RECURRING NET LOSS BY 32% IN 2018
AS ITS G&A EXPENSE STARTED TO NORMALIZE. ITS BETTER
SELLING PRICE ALSO TEMPERED THE LOWER DISPATCH IN 2018
97MW AVION
2018 2017
NET CAPACITY FACTOR
REVENUES
(in millions) (in %)
▼3% ▼23%
US$ 17 15%
18 19%

RECURRING NET INCOME/(LOSS) AVE. SELLING PRICE

(in millions) (in PHP/KWH)

32% 33%
US$ (3) 7.2

(4) 5.4

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 HYDRO
PANTABANGAN-MASIWAY’S RNI CONTRIBUTION DECREASED BY
24% DUE TO THE ABSENCE OF ANCILLARY REVENUES IN 1Q18
AND THE EXPIRATION OF ITS 30MW CONTRACT IN AUGUST 2018
132MW PANTABANGAN-MASIWAY
2018 2017 VOLUME SOLD
(GWH)
REVENUES
(in millions) Contracts 196
219
9%
WESM 226
US$ 36 101
Ancillary Services 69
33
60

AVE. SELLING PRICE

RECURRING NET INCOME
(in millions) (PHP/KWH)

▼24% Contracts 4.7

4.8

US$ 6 WESM 3.9

3.3
8 Ancillary Services 1.0
4.2
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 GEOTHERMAL
EDC’S RNI INCREASED BY 3% IN 2018. HOWEVER, FIRST GEN’S LOWER
AVERAGE ECONOMIC STAKE IN 2018, AND THE IMPACT OF FOREX
TRANSLATION RESULTED TO A 13% DECLINE IN EDC’S RNI CONTRIBUTION TO
FIRST GEN
ENERGY DEVELOPMENT CORP.
2018 2017 FGEN ECO. STAKE IN EDC
Ave. Eco. Stake
Post-EDC
REVENUES 50.6% delisting TO
FGEN 48.5%
(in millions)
9% tendered 9% 45.7%
42.5%
41.6%

US$
US$…652 Jan-Sep Oct 2017- Nov 2018- 2017 Ave. 2018 Ave.
2017 Oct 2018 Today

595 VOLUME SOLD

(GWH)
RECURRING NET INCOME Geo 8,098
(in millions) ▼13% Wind 376 7,188
373
1
Solar 15
US$…74
US$ 12

71* 85 AVE. SELLING PRICE

(PHP/KWH)
Geo 4.0
*EDC’s 2017 RNI using the 2018 Php52.472:USD1.0 3.9
forex translation and using 2018’s average Wind 8.5 8.5
economic stake of 42.5% (vs. 48.5% in 2017).
Solar 1 8.1
8.7
1 Includes EDC’s solar rooftop projects
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 FGEN PARENT
THE PARENT REDUCED ITS RECURRING EXPENSES BY 57%
IN 2018 MAINLY DUE TO ITS DELEVERAGING AND COST-
SAVINGS INITIATIVES
FIRST GEN PARENT
2018 vs. 2017

PARENT EXPENSES PARENT DEBT (EX-PREFS)

(in millions) (in millions)
▼57% ▼40%
US$ 19 US$ 167

44 278

FIRST GEN UTILIZED PROCEEDS FROM THE PARTIAL SALE OF ITS EDC SHARES AND
THE FGPC REFINANCING IN 2017 TO PAY DOWN ITS EXPENSIVE DEBT
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2019
• EDC transformation initiatives
• FG Hydro improved water level
• San Gabriel full year PSA
• Continued LNG terminal development
 First Gen Corporation

End of presentation

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