Manila Electric : 1H 2016 Financial and Operating Results

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COVER SHEET

I p lw l - I 1 I O I 2 I I I I

S.E.C Registration Number

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c j o M p A N y

(Company's Full Name)

J L J o J P J E j z j j s j uj 1 J L j o j 1 J N J G J , j o j R j r j 1 J G J A j s j J A J v J E J N J u J E J , l

js J R J G J v j j u j G j o j N J G! , J P J A j s j I J G! J c ! 1 j r j v j l l I l l I l l I l

(Business Address: No. Street City I Town I Province)

ATTY. WILLIAM S. PAMINTUAN 632-8014

Contact Person Company Telephone Number

j 1 j 2 J - l 3 J 1 l

Month Day Fiscal Year

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J1 J 1 I - I c I

FORM TYPE Month Day

Annual Meeting

Secondary License Type, if Applicable

Dept. Requiring this Doc. Amended Articles Number/Section

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Total Amo-u.n!t of.Borrowi-ng-s---

Total No. of Stockholders Domestic Foreign

To be accomplished by SEC Personnel concerned

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File Number LCU

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Document I.D. Cashier

S T A M P S

Remarks = pis. use black ink for scanning purposes

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SECURITIES AND EXCHANGE COMMISSION SEC F RM11-C CURRENT REPORT UNDER SECTION 11 IFTHE SECURITIES REIUIATI NCODE INDSRC RILE 11.21clTHEREUNDER

1. Date of Report: July 25, 2016

2. SEC dentification Number: PW-102

3. BIR Tax dentification Code: 000-101-528-000

4. Name of ssuer as specified in its Charter: Manila Electric Company

s. Country of ncorporation: Philippines

1. ndustry Classification: (SEC use only)

2. Address of principal office: Lopez Building, Ortigas Avenue, Barangay Ugong, Pasig City

3. ssuer's telephone numbers: 6328014 Area Code: 1605

4. Former name or former address: Not Applicable

5. Securities registered pursuant to Sections 18 and 12 of the SRC or Sections 4 and 8 of the RSA:

Number of Shares of

common Stock outstanding

1,127,098,705

(As of June 30, 2016)

Debt Securities: Php 18.5 Billion Bonds

1. Item Number reported: Item 9 (Other Events)

   The Company's Board of Directors (BOD), in its regular meeting held today, July 25, 2016, approved the following matters:

2. The Company's 1H 2016 Financial and Operating Results (refer to the attached Press release).

3. The declaration of cash dividend amounting to Pesos 13.480 per share to all shareholders of record as at August 24, 2016, payable on September 19, 2016 consisting of: (i) interim regular cash dividends of Pesos 4.608 per share or 50% of first half 2016 Consolidated Core Net Income, in line with the Company's dividend policy; and (ii) Pesos 8.872 per share representing special dividends out of retained earnings previously appropriated, which was approved for reclassification by the BOD today.

SIIUTURE

Pursuant to the requirements of the Securities Regulation Code, the issuer has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MANILA ELECTRIC COMPANY

Issuer

First Vice P sident

Assistant Corporate Secretary &

Information Disclosure Officer

Date: July 25, 2016

Cc: Disclosure Department Listings and Disclosure Group Philippine Stock Exchange

Issuer Compliance and Disclosure Department Philippine Dealing & Exchange Corp.

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MERALCO

PRESS RELEASE MANILA ELECTRIC COMPANY

1H2016 FINANCIAL AND OPERATING RESULTS WITH COMPARATIVES vs. 2015

HIGHLIGHTS

• Consolidated Core Net Income for the first half of 2016 at Pesos 10.4 billion, 11% lower than in the first half of 2015

• Consolidated Repo1ied Net Income for the first semester of 2016 at Pesos 10.8 billion, 8% lower than Pesos 11.7 billion in 1H2015

• Consolidated revenues at Pesos 128.8 billion for the first six (6) months of 2016, 4% lower year-on-year with lower cost of purchased power

• Consolidated volume of energy sold for the first half of 2016 was 19,717 GWh, 11% higher than the 17,753 GWh sold in the same period in 2015

• Total number of billed customers rose to 5.9 million as at June 30, 2016, reflecting a year-on­ year growth of 4%

• Consolidated costs and expenses at Pesos 114.8 billion for the six (6) months ended June 30, 2016, 3% lower compared with that in 2015

• Consolidated EBITDA amounted to Pesos 18.0 billion, down 8% year-on-year with EBITDA margin at 14% of consolidated revenues

• Core earnings per share at Pesos 9.217, Pesos 1.111 lower than the first half of 2015

• Reported earnings per share at Pesos 9.554 compared with Pesos 10.422 in 2015

• Interim regular cash dividend of Pesos 4.608 per share and a special dividend of Pesos 8.872 per share, for a total of Pesos 13.480 payable on September 19, 2016

MANILA, PHILIPPINES, 25111 JULY 2016 - Manila Electric Company ("Meralco" or the "Company") (PSE: MER) today announced its unaudited financial and operating results for the six months ended June 30, 2016. Consolidated Core Net Income, which excludes one-time, exceptional gains and charges, amounted to Pesos 10.4 billion. Meralco had reduced its average interim distribution tariff beginning July 1, 2015 following the completion of its 3rd Regulatory Period on June 30, 2015, resulting in a lower average distribution rate of Pesos 1.44 per kWh for January to June 2016 compared with Pesos 1.59 per kWh for the same period in 2015. Income for the first half of 2016 amounted to Pesos 10.8 billion, 8% lower than 2015. Core earnings per share ("EPS") was Pesos 9.217 while Reported EPS was Pesos 9.554.