In 2015, AboitizPower’s core net income                                               
increased by 9% to P18.4 billion from P16.8
billion in 2014. The increase in volumes across
the generation and distribution businesses,
coupled with lower expenses drove healthy
growth in 2015.

We experienced the full-year effect of Hedcor
Sabangan and the addition of Therma South’s
Unit 1 in the fourth quarter of the year. Capacity
sold from our generation business grew by 6%.
Contracted out of capacity sales went up to 93%
from 90% of the prior year.

Our thrust as a generator-retailer continues
to be a cornerstone of our strategy. We were
able to contract 14% of total attributable net
sellable capacity of 2,402 MW with contestable
customers amounting to 332 MW. We expect
to further grow this share in the coming years;
more so with the expansion of the Open Access
market to the 750 kW contestable customers in
2016. With our continuous push in this space, we
are able to further diversify our customer base
and stabilize cash flows.

Our distribution business expanded volume
by 6% to 4,759 GWh from 4,480 GWh of the
previous year driven by strong growth across
all customer segments as well as the full-year
contribution from LiMA EnerZone, which was
acquired in 2014. Gross margin on a per kWh
basis decreased from P1.71 to P1.61 due to the
continued operation of Davao Light's embedded
plant to meet the shortfall in the Mindanao grid.
Strong demand growth from our lower-margin
industrial customers also contributed to the
decline in per kWh margins.

In 2015, AboitizPower together with its partners
spent P34.4 billion for capital expenditure (capex)
as part of the company’s ongoing efforts to
increase total capacity. To continue its trajectory
to hit 4,000 MW by 2020, capex spend in 2016
will go up to P51.5 billion. We believe that being
able to provide our committed power capacity
at the right time is the key to our meeting
the country’s needs and growth initiatives.
Our sustained level of capex commitments
demonstrates this belief.

As Therma South was about to go online in 2015,
we had already closed the P32-billion syndicated
loan for Therma Visayas. This is the first transaction
that carries a back-ended equity feature, which is
a testament to the trust that our partner financial
institutions have bestowed upon us.

Our growing P&L and strong balance sheet
tell the story of grit and prudence combined.
This healthy balance allows us to have access
to innovative financing, which is vital for us to
sustain our growth story. Our consolidated net
debt-to-equity ratio is maintained at 0.6x for the
second year in a row while Equity Attributable
to Equity Holders of the Parent rose from P92.0
billion to P97.6 billion.

In 2015, our Return on Equity was maintained
at 21% for the second year in a row. This is
testament to the stable returns from the existing
legal entities as we continue to invest in our new
projects. We have maintained a healthy balance                                        
between strong dividend payments and funding
for growth.

In March 2015, your Board approved a total cash
dividend of P1.66 per share. Total dividends paid
amounted to P12.2 billion or 73% of the previous
year’s earnings. This translates to a dividend yield
of 3.7%.

We entered 2016 with a strong balance sheet and
healthy cash flows, coupled with our resolve to
grow our portfolio by sustaining investments in
greenfield and brownfield projects, both domestic
and overseas.

More importantly, we entered the year with an
organization that is fired up on all cylinders, ready
to drive growth and to deliver shared value in
every community, sector and society that we serve.

Sustaining leadership is crucial in a constantly
changing environment. As such, we continue
to develop leaders who are able to deliver with


deliberate intent while able to react to emergent          
realities. As your CFO, I am passionately committed
to deliver agile leadership as we continue to
traverse on the path of growth and better ways.

We wish to thank you, our shareholders, as well
as our customers, partners, lenders and suppliers
for the continued support. We look forward to
more years of partnership with all of you in our
AboitizPower journey.


Earnings and Dividends
(in Php billions)

Dividend Per Share (DPS) and Dividend Yield

Share Price (Peso/Share)

Share Price Performance